Simmons First National Corporation Reports Record Earnings for 2021

1/27, 2:00 PM (Source: GlobeNewswire)

Board of Directors authorizes new $175 million share repurchase program after substantially exhausting prior program in January 2022 and approves a 6 percent increase in the quarterly cash dividend

  • Net income of $271.2 million for the full year of 2021, up 6 percent from the full year of 2020

  • Diluted EPS of $2.46 for the full year of 2021, up 6 percent compared to $2.31 for the full year of 2020

  • Diluted EPS of $0.42 for the fourth quarter of 2021; core diluted EPS of $0.52 in the quarter

  • Newly funded loans and advances top $2.6 billion in the quarter; commercial loan pipeline increases for 5th consecutive quarter, up 56 percent on a linked quarter basis, and unfunded commitments rise 31 percent linked quarter

  • Total deposits rise to $19.4 billion at year-end 2021, up $2.4 billion since year-end 2020, reflecting continued growth and acquisition-related activity; change in mix coupled with ability to effectively manage rates results in 17 bps year-over-year decline in deposit costs

  • Asset quality metrics remain sound; nonperforming assets as a percentage of total assets at the end of 2021 were 0.31 percent, compared to 0.64 percent at the end of 2020, while net charge-offs totaled 13 basis points in 2021, compared to 45 basis points in 2020. Continued improvement in metrics and macroeconomic scenario models results in $1.3 million provision expense recapture in the fourth quarter

  • Strong capital position and ability to organically generate capital results in $211.3 million of capital returned to shareholders in 2021 through a combination of cash dividends and share repurchases. Approximately 2.6 million shares of common stock repurchased during the fourth quarter of 2021. Remaining capacity under the share repurchase program substantially exhausted in January 2022

  • Book value per share ends the year at $28.82, representing a 5 percent increase year-over-year. Tangible book value per share at $17.71, a 7 percent increase year-over-year

PINE BLUFF, Ark., Jan. 27, 2022 (GLOBE NEWSWIRE) -- Simmons First National Corporation (NASDAQ: SFNC) (the “Company” or “Simmons”) today reported record net income of $271.2 million for the year ended December 31, 2021, up $16.3 million, or 6 percent, compared to $254.9 million earned during the full year 2020. Diluted earnings per share for 2021 were $2.46, up $0.15, or 6 percent, compared to $2.31 earned in 2020. Included in 2021 results were $7.2 million in net after-tax merger related costs, gains on sale of branches and net branch right-sizing costs. Excluding the impact of these items, core earnings were $278.3 million for the year ended December 31, 2021, compared to $264.3 million for the full year of 2020. Core diluted earnings per share were $2.53 for 2021, compared to $2.40 for 2020.

Net income for the fourth quarter of 2021 was $48.2 million, compared to $53.0 million in the fourth quarter of 2020. Diluted earnings per share for the fourth quarter of 2021 were $0.42, compared to $0.49 for the fourth quarter of 2020. Included in fourth quarter 2021 results were $13.6 million (pre-tax) of merger related costs, primarily associated with the acquisitions of Landmark Community Bank (“Landmark”) and Triumph Bancshares, Inc. (“Triumph”), which were completed and integrated in early October 2021. Excluding the impact of merger related and net branch rightsizing costs, core earnings were $59.5 million in the fourth quarter of 2021, compared to $62.0 million in the fourth quarter of 2020.

“Simmons delivered record earnings in 2021 while continuing to navigate the headwinds brought about by the pandemic and the resulting impact on economic and business conditions,” said George A. Makris, Jr, Simmons’ chairman and CEO. “In addition to our strong financial performance, the year also brought our return to M&A activity with our acquisitions of Landmark Community Bank and Triumph Bancshares, Inc., which have significantly enhanced our size and scale in Tennessee where we now rank as the 8th largest bank based on deposit market share. Shortly after the acquisition and integration of these two banks in October, we announced a definitive agreement to acquire Spirit of Texas Bancshares, Inc., which will further strengthen our Texas franchise and establish a platform for growth in Houston, Austin, San Antonio and College Station. We look forward to welcoming our new customers, associates and shareholders to the Simmons family later this year.”

“While overall loan growth was muted for much of the year given the high levels of liquidity throughout the system, we are beginning to see positive signs that indicate an increase in business activity and a return to more normalized loan demand. Newly funded loans and advances topped $2.6 billion in the fourth quarter while unfunded commitments, considered a leading indicator of future loan growth, rose 31 percent during the quarter. Equally important, our commercial loan pipeline rose for the fifth consecutive quarter and is more than double that of a year ago. We are encouraged by this positive momentum and believe that our strong capital position and outstanding deposit base well position us for another strong year in 2022.”

  

Selected Highlights:FY 2021FY 2020Q4 21Q4 20
Net income$271.2 million$254.9 million$48.2 million$53.0 million
Diluted earnings per share$2.46 $2.31 $0.42 $0.49 
Return on avg assets1.15% 1.18% 0.77% 0.96% 
Return on avg common equity8.83% 8.72% 5.87% 7.13% 
Return on tangible common equity (1)14.99% 15.25% 9.98% 12.48% 
     
Core earnings (2)$278.3 million$264.3 million$59.5 million$62.0 million
Core diluted earnings per share (2)$2.53 $2.40 $0.52 $0.57 
Core return on avg assets (2)1.18% 1.22% 0.96% 1.13% 
Core return on avg common equity (2)9.06% 9.05% 7.24% 8.34% 
Core return on tangible common equity (1)(2)15.38% 15.79% 12.19% 14.51% 
Efficiency ratio (3)57.92% 54.18% 59.48% 54.75% 
Adjusted pre-tax, pre-provision earnings (2)$293.9 million$352.7 million$73.7 million$83.1 million

(1)   Return on tangible common equity excludes goodwill and other intangible assets and is a non-GAAP measurement. See “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
(2)   Core and adjusted figures exclude non-core items and are non-GAAP measurements. See “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
(3)   Efficiency is a non-GAAP measurement. See “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

Loans

($ in billions)Q4 21Q3 21Q2 21Q1 21Q4 20
Total loans$12.0$10.8$11.4$12.2$12.9
Total loans excluding PPP$11.9$10.6$10.9$11.4$12.0


Total loans at the end of the fourth quarter of 2021 were $12.0 billion, compared to $10.8 billion at the end of the third quarter of 2021 and $12.9 billion at the end of the fourth quarter of 2020. The decrease in total loans from a year ago reflects planned run-off in certain targeted portfolios, Paycheck Protection Program (“PPP”) loan forgiveness, and increased paydowns and payoffs that were exacerbated by higher than normal levels of liquidity made available during the pandemic. The increase in total loans on a linked quarter basis primarily reflects loans acquired in connection with the Landmark and Triumph acquisitions, and an increase in loan production, which offset paydowns and payoffs during the quarter.

At the same time, evidence suggests that loan demand is beginning to return to more normalized levels. During the fourth quarter of 2021, newly funded loans and advances totaled $2.6 billion, up from $1.5 billion during the third quarter of 2021. Unfunded commitments rose for the third consecutive quarter, including a 31 percent increase on a linked quarter basis. Momentum in our commercial pipeline continued during the quarter with all loan opportunities totaling $2.3 billion, an increase of 56 percent on a linked quarter basis and more than double the levels of a year ago. This marked the fifth consecutive quarter of increased activity in the commercial pipeline as each respective category showed double-digit increases from third quarter 2021 levels. Equally important, the increases were broad-based across most of our markets and across our business units.

Deposits

($ in billions)Q4 21Q3 21Q2 21Q1 21Q4 20
Total deposits$19.4$18.1$18.3$18.2$17.0
Noninterest bearing deposits$5.3$4.9$4.9$4.9$4.5
Interest bearing deposits$11.6$10.7$10.6$10.3$9.7
Time deposits$2.5$2.5$2.8$3.0$2.8


Total deposits at the end of the fourth quarter of 2021 were $19.4 billion, an increase of $2.4 billion, or 14 percent, from $17.0 billion at the end of the fourth quarter of 2020. Total noninterest bearing deposits accounts totaled $5.3 billion, up $843 million, or 19 percent, from $4.5 billion at the end of the fourth quarter a year ago. Interest bearing deposits (checking, savings and money market accounts) totaled $11.6 billion, up $1.9 billion, or 20 percent, compared to $9.7 billion at the end of 2020. The year-over-year increases in each of these categories reflects an increase in customers as well as acquired deposits from the Landmark and Triumph acquisitions. Time deposits totaled $2.5 billion at the end of the fourth quarter of 2021, down 13 percent compared to $2.8 billion at the end of 2020.

Net Interest Income

 Q4 21Q3 21Q2 21Q1 21Q4 20
Loan yield (1)4.58%4.76%4.73%4.75%4.74%
Security yield (1)1.74%1.77%1.97%2.36%2.48%
Cost of interest bearing deposits0.23%0.27%0.32%0.41%0.47%
Cost of deposits (2)0.17%0.20%0.24%0.30%0.34%
Cost of borrowed funds1.95%1.96%1.97%1.91%1.88%
Net interest spread (1)2.74%2.72%2.74%2.83%3.04%
Net interest margin (1)2.86%2.85%2.89%2.99%3.22%

(1)   Fully tax equivalent using an effective tax rate of 26.135%.
(2)   Includes noninterest bearing deposits.

Net interest income for the fourth quarter of 2021 totaled $153.1 million, compared to $155.0 million in the fourth quarter of 2020, a decrease of 1 percent. Included in net interest income is accretion recognized on loans acquired, which totaled $5.8 million in the fourth quarter of 2021 and $9.0 million in the fourth quarter of 2020. Also included in net interest income is interest income on PPP loans, which totaled $5.1 million in the fourth quarter of 2021 and $6.5 million in the fourth quarter of 2020. The decrease in net interest income from a year ago reflects lower average loan balances, a decrease in loan yields and lower contributions from accretion and PPP loans, offset in part by our ability to successfully reduce deposit costs.

The yield on loans for the fourth quarter of 2021 was 4.58 percent, compared to 4.76 percent in the third quarter of 2021 and 4.74 percent in the fourth quarter of 2020. Cost of deposits for the fourth quarter of 2021 was 17 basis points, down 3 basis points on a linked quarter basis and down 17 basis points compared to the fourth quarter of 2020. Net interest margin on a fully taxable equivalent basis was 2.86 percent for the fourth quarter of 2021, compared to 2.85 percent in the third quarter of 2021 and 3.22 percent in the fourth quarter of 2020. Throughout 2021, the Company strategically redeployed excess liquidity through the purchase of investment securities, including short-term variable rate securities. At December 31, 2021, short-term, variable securities totaled approximately $1.5 billion.

Noninterest Income
Noninterest income for 2021 was $191.8 million, compared to $239.8 million recorded in 2020. The decrease in noninterest income was primarily due to a $39.3 million decrease in gains on sales of investment securities and a $12.7 million decrease in mortgage lending income, offset in part by a $3.5 million increase in debit and credit card fees as a result of an increased usage and a higher number of customers.

Noninterest income for the fourth quarter of 2021 was $46.6 million, compared to $41.8 million in the fourth quarter of 2020. The increase in noninterest income compared to a year ago was broad based as most of our fee-based businesses posted gains, including mortgage lending income up $2.1 million, service charges on deposit accounts up $1.1 million, debit and credit card fee up $1.0 million and wealth management fees up $0.8 million.

Select Noninterest Income Items
($ in millions)
FY 2021FY 2020Q4 21Q4 20
Service charges on deposit accounts$43.2$43.1$11.9 $10.8
Wealth management fees$31.2$30.4$8.0 $7.2
Debit and credit card fees (1)$28.2$24.7$7.5 $6.4
Mortgage lending income$21.8$34.5$5.0 $3.0
Bank owned life insurance$8.9$5.8$2.8 $1.5
Gain on sale of securities$15.5$54.8$(0.4)  -
Other income$35.3$39.9$10.0 $11.0
     
Core other income (2)$29.6$31.1$10.0 $10.8

(1)   During the second quarter of 2021, certain debit and credit card transaction fees were reclassified from noninterest expense to noninterest income. Prior periods have been adjusted to reflect this reclassification.
(2)   Core figures exclude non-core items and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

Noninterest Expense
Noninterest expense for 2021 was $483.6 million, down $1.1 million, or less than 1 percent, compared to $484.7 million recorded in 2020. Included in 2021 noninterest expense are pre-tax, non-core items totaling $15.3 million that primarily consist of merger-related expenses ($15.9 million, pre-tax). Excluding these items, core noninterest expense for 2021 was $468.2 million, compared to core noninterest expense of $463.2 million for 2020. The increase was primarily attributable to an increase in salaries and benefits (+$6.9 million), offset in part by a decline in furniture and equipment expense (-$4.0 million).

Noninterest expense for the fourth quarter of 2021 totaled $141.6 million, compared to $125.8 million in the fourth quarter of 2020. Included in noninterest expense are pre-tax, non-core items totaling $15.2 million that primarily consisted of merger-related expenses ($13.6 million, pre-tax). Excluding these items, core noninterest expense for the fourth quarter of 2021 was $126.4 million, compared to $113.4 million in the fourth quarter of 2020. The increase in noninterest expense was primarily due to the addition of operating expenses associated with the acquired banks at the beginning of the quarter. Expected costs saves from the acquisitions are expected to be achieved, in their entirety, in 2022. During the fourth quarter of 2021, the Company also donated $2.5 million to the Simmons First Foundation.

Select Noninterest Expense Items
($ in millions)
FY 2021FY 2020Q4 21Q4 20
Salaries and employee benefits$246.3$242.5$63.9$55.8
Occupancy expense, net$38.8$37.6$11.0$9.2
Furniture and equipment expense$19.9$24.0$4.7$5.9
Merger related costs$15.9$4.5$13.6$0.7
Other operating expenses (1)$153.6$165.2$45.7$52.0
     
Core salaries and employee benefits (2)$246.2$239.4$63.8$55.6
Core other operating expenses (2)$157.1$153.0$45.8$41.8

(1)   During the second quarter of 2021, certain debit and credit card transaction fees were reclassified from noninterest expense to noninterest income. Prior periods have been adjusted to reflect this reclassification.
(2)   Core figures exclude non-core items and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

Asset Quality

($ in millions)Q4 21Q3 21Q2 21Q1 21Q4 20
Allowance for credit losses on loans to total loans1.71%1.87%2.00%1.93%1.85%
Allowance for credit losses on loans to nonperforming loans300%341%281%204%193%
Nonperforming loans to total loans0.57%0.55%0.71%0.95%0.96%
Net charge-off ratio (annualized)0.31%0.17%(0.07%)0.10%0.52%
Net charge-off ratio YTD (annualized)0.13%0.06%0.01%0.10%0.45%
      
Total nonperforming loans$68.6$59.4$80.9$115.5$123.5
Total other nonperforming assets$7.7$13.5$16.3$12.4$20.4

Credit quality metrics showed marked improvement throughout the year. Total nonperforming assets as a percentage of total assets were 0.31 percent at the end of 2021, compared to 0.64 percent at the end of 2020. Total nonperforming loans at the end of the fourth quarter of 2021 totaled $68.6 million, down $54.9 million compared to $123.5 million at the end of the fourth quarter a year ago. Net charge-offs as a percentage of average loans for the full year of 2021 were 13 basis points, down from 45 basis points reported for the full year of 2020. Net charge-offs for the fourth quarter of 2021 were 31 basis points, compared to 52 basis points for the fourth quarter of 2020. Provision for credit losses for the full year of 2021 was a credit of $32.7 million compared to expense of $75.0 million for the full year of 2020, reflecting positive trends in asset quality metrics throughout the year and improved economic modeling scenarios that in the prior year were negatively impacted by the corresponding impact of the pandemic on the macroeconomic environment. Provision for credit losses on loans during the fourth quarter of 2021 was a credit of $1.3 million, compared to expense of $6.9 million during the fourth quarter of 2020.

The allowance for credit losses on loans at the end of 2021 was $205.3 million, compared to $238.1 million at the end of 2020. During the fourth quarter of 2021, the Company recorded allowance of $13.4 million in connection with Purchase Credit Deteriorated loans acquired in the Landmark and Triumph acquisitions. The allowance to loan ratio ended 2021 at 1.71 percent, compared to 1.85 percent at the end of 2020, and the nonperforming loan coverage ratio was 300 percent at the end of 2021, compared to 193 percent at the end of 2020.

Capital

 Q4 21Q3 21Q2 21Q1 21Q4 20
Stockholders’ equity to total assets13.1%13.1%13.0%12.6%13.3%
Tangible common equity to tangible assets (1)8.5%8.4%8.4%7.9%8.5%
Regulatory common equity tier 1 ratio13.8%14.3%14.2%14.1%13.4%
Regulatory tier 1 leverage ratio9.1%9.1%9.0%9.0%9.1%
Regulatory tier 1 risk-based capital ratio13.8%14.3%14.2%14.1%13.4%
Regulatory total risk-based capital ratio16.8%17.4%17.5%17.5%16.8%

(1)   Tangible common equity to tangible assets is a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

Total common stockholders’ equity at the end of 2021 was $3.2 billion, compared to $3.0 billion at the end of 2020. During the fourth quarter of 2021, the Company redeemed its outstanding preferred stock totaling approximately $767 thousand. Book value per share at the end of the fourth quarter of 2021 was $28.82, compared to $27.53 at the end of the fourth quarter of 2020. Tangible book value per share was $17.71 at the end of the fourth quarter of 2021, compared to $16.56 at the end of the fourth quarter of 2020. The ratio of stockholders’ equity to total assets at December 31, 2021 was 13.1 percent, while tangible common equity to tangible total assets was 8.5 percent. All of the Company’s regulatory capital ratios continue to significantly exceed “well-capitalized” guidelines, and it is noteworthy that the increase in book value per share and tangible book value per share was accomplished while also completing the acquisitions of Landmark and Triumph, paying cash dividends and actively utilizing the Company’s stock repurchase program.

Share Repurchase Program and Cash Dividend
As a result of the Company’s strong capital position and ability to organically generate capital, the Company’s board of directors has declared a quarterly cash dividend on the Company’s Class A common stock of $0.19 per share, which is payable on April 4, 2022, to shareholders of record as of March 15, 2022. The cash dividend rate represents an increase of $0.01 per share, or 6 percent, from the dividend paid for the same time period last year.

During the fourth quarter of 2021, the Company repurchased approximately 2.6 million shares of its Class A common stock at an average price of $29.69 pursuant to the Company’s stock repurchase program, which was originally approved in October 2019 (the “2019 Program”). Remaining capacity under the 2019 Program at the end of 2021 totaled approximately $20.6 million. During January 2022, the Company substantially exhausted the remaining capacity under the 2019 Program.

Therefore, the Company also announced today that its board of directors has authorized a new stock repurchase program (the “New Program”) under which the Company may repurchase up to $175,000,000 of its Class A common stock currently issued and outstanding. The New Program replaces the 2019 Program.

Under the New Program, the Company may repurchase shares of its common stock through open market and privately negotiated transactions or otherwise. The timing, pricing, and amount of any repurchases under the New Program will be determined by the Company’s management at its discretion based on a variety of factors, including, but not limited to, trading volume and market price of the Company’s common stock, corporate considerations, the Company’s working capital and investment requirements, general market and economic conditions, and legal requirements. The New Program does not obligate the Company to repurchase any common stock and may be modified, discontinued, or suspended at any time without prior notice. The Company anticipates funding for the New Program to come from available sources of liquidity, including cash on hand and future cash flow. The New Program will terminate on January 31, 2024 (unless terminated sooner).

Simmons First National Corporation
Simmons First National Corporation (NASDAQ: SFNC) is a Mid-South based financial holding company whose principal subsidiary, Simmons Bank, operates 199 financial centers in Arkansas, Missouri, Tennessee, Texas, Oklahoma and Kansas. Founded in 1903, Simmons Bank offers comprehensive financial solutions delivered with a client-centric approach. Simmons Bank was named to Forbes’ list of “World’s Best Banks” for the second consecutive year and ranked among the top 30 banks in Forbes’ list of “America’s Best Banks” for 2021. Additional information about Simmons and Simmons Bank can be found on our website at simmonsbank.com, by following @Simmons_Bank on Twitter or by visiting our newsroom.

Conference Call
Management will conduct a live conference call to review this information beginning at 9:00 a.m. Central Time today, Thursday, January 27, 2022. Interested persons can listen to this call by dialing toll-free 1-866-298-7926 (United States and Canada only) and asking for the Simmons First National Corporation conference call, conference ID 7373369. In addition, the call will be available live or in recorded version on the Company’s website at simmonsbank.com for at least 60 days.

Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance. These measures adjust GAAP performance measures to, among other things, include the tax benefit associated with revenue items that are tax-exempt, as well as exclude from income available to common shareholders, non-interest income, and non-interest expense certain income and expenses related to significant non-core activities, including merger-related expenses, gain on sale of branches, early retirement program expenses and net branch right-sizing expenses. In addition, the Company also presents certain figures based on tangible common stockholders’ equity, tangible assets and tangible book value, which exclude goodwill and other intangible assets. The Company further presents certain figures that are exclusive of the impact of PPP loans. The Company’s management believes that these non-GAAP financial measures are useful to investors because they, among other things, present the results of the Company’s ongoing operations without the effect of mergers or other items not central to the Company’s ongoing business, as well as normalize for tax effects. Management, therefore, believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core businesses, and management uses these non-GAAP financial measures to assess the performance of the Company’s core businesses as related to prior financial periods. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

Forward-Looking Statements
Certain statements in this news release may not be based on historical facts and should be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including, without limitation, statements made in Mr. Makris’s quotes, may be identified by reference to future periods or by the use of forward-looking terminology, such as “believe,” “budget,” “expect,” “foresee,” “anticipate,” “intend,” “indicate,” “target,” “estimate,” “plan,” “project,” “continue,” “contemplate,” “positions,” “prospects,” “predict,” or “potential,” by future conditional verbs such as “will,” “would,” “should,” “could,” “might” or “may,” or by variations of such words or by similar expressions. These forward-looking statements include, without limitation, statements relating to Simmons’ future growth, lending capacity and lending activity, loan demand, revenue, assets, asset quality, profitability, net interest margin, non-interest revenue, share repurchase program, acquisition strategy, digital banking initiatives, the Company’s ability to recruit and retain key employees, branch closures and branch sales, the adequacy of the allowance for credit losses, the ability of the Company to manage the impacts of the COVID-19 pandemic, and the impacts of the Company’s and its customers’ participation in the PPP. Any forward-looking statement speaks only as of the date of this news release, and Simmons undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release. By nature, forward-looking statements are based on various assumptions and involve inherent risk and uncertainties. Various factors, including, but not limited to, changes in economic conditions, credit quality, interest rates, loan demand, deposit flows, real estate values, the assumptions used in making the forward-looking statements, the securities markets generally or the price of Simmons’ common stock specifically, and information technology affecting the financial industry; the effect of steps the Company takes and has taken in response to the COVID-19 pandemic; the severity and duration of the pandemic, including the effectiveness of “booster” vaccination efforts and developments with respect to COVID-19 variants; the pace of recovery when the pandemic subsides and the heightened impact it has on many of the risks described herein; the effects of the COVID-19 pandemic on, among other things, the Company’s operations, liquidity, and credit quality; general economic and market conditions; unemployment; claims, damages, and fines related to litigation or government actions, including litigation or actions arising from the Company’s participation in and administration of programs related to the COVID-19 pandemic; changes in accounting principles relating to loan loss recognition (current expected credit losses, or CECL); the ability to obtain regulatory approvals and meet other closing conditions to the proposed merger of Spirit of Texas Bancshares, Inc. (“Spirit”) with and into the Company (“Proposed Transaction”); delay in closing the Proposed Transaction; difficulties and delays in integrating the acquired business or fully realizing cost savings and other benefits of the Proposed Transaction; the Company’s ability to manage and successfully integrate its mergers and acquisitions; cyber threats, attacks or events; reliance on third parties for key services; government legislation; and other factors, many of which are beyond the control of the Company, could cause actual results to differ materially from those projected in or contemplated by the forward-looking statements. Additional information on factors that might affect the Company’s financial results is included in the Company’s Form 10-K for the year ended December 31, 2020, and other reports that the Company has filed with or furnished to the U.S. Securities and Exchange Commission (the “SEC”), all of which are available from the SEC.

Important Additional Information and Where to Find It
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval with respect to the Proposed Transaction. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended, and no offer to sell or solicitation of an offer to buy shall be made in any jurisdiction in which such offer, solicitation or sale would be unlawful.

In connection with the Proposed Transaction, the Company has filed with the SEC a registration statement on Form S-4 (the “Registration Statement”) to register the shares of Company common stock that will be issued to Spirit shareholders in the Proposed Transaction. The Registration Statement includes a proxy statement of Spirit and a prospectus of the Company (the “Proxy Statement/Prospectus”), and the Company and/or Spirit may file with the SEC other relevant documents concerning the Proposed Transaction. The definitive Proxy Statement/Prospectus is being mailed to shareholders of Spirit. SHAREHOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION CAREFULLY AND IN ITS ENTIRETY WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC BY THE COMPANY AND/OR SPIRIT, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.

Free copies of the Proxy Statement/Prospectus, as well as other filings containing information about the Company and Spirit, may be obtained at the SEC’s Internet site (http://www.sec.gov), when they are filed by the Company or Spirit. You will also be able to obtain these documents, when they are filed, free of charge, from the Company at simmonsbank.com under the heading “Investor Relations” or from Spirit at www.sotb.com under the “Investor Relations” link. Copies of the Proxy Statement/Prospectus can also be obtained, free of charge, by directing a request to the Company at Simmons First National Corporation, 501 Main Street, Pine Bluff, Arkansas 71601, Attention: Ed Bilek, Director of Investor Relations, Email: ed.bilek@simmonsbank.com or ir@simmonsbank.com, Telephone: (870) 541-1000; or by directing a request to Spirit at Spirit of Texas Bancshares, Inc., 1836 Spirit of Texas Way, Conroe, Texas 77301, Attention: Corporate Secretary, Email: jgoleman@sotb.com, Telephone: (936) 521-1836.

Participants in the Solicitation
The Company, Spirit, and certain of their respective directors, executive officers and employees may be deemed to be participants in the solicitation of proxies from the shareholders of Spirit in connection with the Proposed Transaction. Information about the Company’s directors and executive officers is available in its proxy statement for its 2021 annual meeting of shareholders, which was filed with the SEC on April 15, 2021. Information about Spirit’s directors and executive officers is available in its proxy statement for its 2021 annual meeting of shareholders, which was filed with the SEC on April 9, 2021. Information regarding all of the persons who may, under the rules of the SEC, be deemed participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the Proxy Statement/Prospectus regarding the Proposed Transaction and other relevant materials to be filed with the SEC when they become available. Free copies of these documents may be obtained as described in the preceding paragraph.

FOR MORE INFORMATION CONTACT:
Ed Bilek
EVP, Director of Investor Relations
Simmons First National Corporation
ed.bilek@simmonsbank.com



Simmons First National Corporation    SFNC
Consolidated End of Period Balance Sheets     
For the Quarters EndedDec 31Sep 30Jun 30Mar 31Dec 31
(Unaudited) 2021  2021  2021  2021  2020 
($ in thousands)     
ASSETS     
Cash and non-interest bearing balances due from banks$209,190 $225,500 $215,381 $227,713 $217,499 
Interest bearing balances due from banks and federal funds sold 1,441,463  1,555,913  2,123,743  3,677,750  3,254,653 
    Cash and cash equivalents 1,650,653  1,781,413  2,339,124  3,905,463  3,472,152 
Interest bearing balances due from banks - time 1,882  1,780  1,335  1,334  1,579 
Investment securities - held-to-maturity 1,529,221  1,516,797  931,352  609,500  333,031 
Investment securities - available-for-sale 7,113,545  6,822,203  6,556,581  4,528,348  3,473,598 
Mortgage loans held for sale 36,356  34,628  36,011  63,655  137,378 
Other assets held for sale 100  100  100  100  100 
Loans:     
Loans 12,012,503  10,825,227  11,386,352  12,195,873  12,900,897 
Allowance for credit losses on loans (205,332) (202,508) (227,239) (235,116) (238,050)
Net loans 11,807,171  10,622,719  11,159,113  11,960,757  12,662,847 
Premises and equipment 483,469  463,924  429,587  427,540  441,692 
Premises held for sale -  -  6,090  13,613  15,008 
Foreclosed assets and other real estate owned 6,032  11,759  15,239  11,168  18,393 
Interest receivable 72,990  68,405  67,916  71,359  72,597 
Bank owned life insurance 445,305  421,762  419,198  257,152  255,630 
Goodwill 1,146,007  1,075,305  1,075,305  1,075,305  1,075,305 
Other intangible assets 106,235  100,428  103,759  107,091  111,110 
Other assets 325,793  304,707  282,449  315,732  289,332 
Total assets$ 24,724,759 $ 23,225,930 $ 23,423,159 $ 23,348,117 $ 22,359,752 
      
LIABILITIES AND STOCKHOLDERS' EQUITY     
Deposits:     
Non-interest bearing transaction accounts$5,325,318 $4,918,845 $4,893,959 $4,884,667 $4,482,091 
Interest bearing transaction accounts and savings deposits 11,588,770  10,697,451  10,569,602  10,279,997  9,672,608 
Time deposits 2,452,460  2,455,774  2,841,052  3,024,724  2,832,327 
        Total deposits 19,366,548  18,072,070  18,304,613  18,189,388  16,987,026 
Federal funds purchased and securities sold     
under agreements to repurchase 185,403  217,276  187,215  323,053  299,111 
Other borrowings 1,337,973  1,338,585  1,339,193  1,340,467  1,342,067 
Subordinated notes and debentures 384,131  383,278  383,143  383,008  382,874 
Other liabilities held for sale -  -  -  -  154,620 
Accrued interest and other liabilities 201,863  184,190  169,629  181,426  217,398 
Total liabilities 21,475,918  20,195,399  20,383,793  20,417,342  19,383,096 
      
Stockholders' equity:     
Preferred stock -  767  767  767  767 
Common stock 1,127  1,066  1,084  1,083  1,081 
Surplus 2,164,989  1,974,561  2,021,128  2,017,188  2,014,076 
Undivided profits 1,093,270  1,065,566  1,004,314  948,913  901,006 
Accumulated other comprehensive (loss) income:     
Unrealized (depreciation) appreciation on AFS securities (10,545) (11,429) 12,073  (37,176) 59,726 
Total stockholders' equity 3,248,841  3,030,531  3,039,366  2,930,775  2,976,656 
Total liabilities and stockholders' equity$ 24,724,759 $ 23,225,930 $ 23,423,159 $ 23,348,117 $ 22,359,752 
      
Page 1
      



Simmons First National Corporation    SFNC 
Consolidated Statements of Income - Quarter-to-Date     
For the Quarters EndedDec 31Sep 30Jun 30Mar 31Dec 31 
(Unaudited) 2021  2021  2021  2021 2020 
($ in thousands, except per share data)      
INTEREST INCOME      
   Loans (including fees)$137,564 $132,216 $138,804 $146,424$160,115 
   Interest bearing balances due from banks and federal funds sold 583  763  651  798 716 
   Investment securities 32,275  30,717  27,128  21,573 17,207 
   Mortgage loans held for sale 310  230  386  639 1,070 
           TOTAL INTEREST INCOME 170,732  163,926  166,969  169,434 179,108 
INTEREST EXPENSE      
   Time deposits 3,705  4,747  6,061  7,091 7,835 
   Other deposits 4,390  4,369  4,721  6,088 6,536 
   Federal funds purchased and securities      
     sold under agreements to repurchase 72  70  192  245 284 
   Other borrowings 4,903  4,893  4,897  4,802 4,869 
   Subordinated notes and debentures 4,581  4,610  4,565  4,527 4,624 
           TOTAL INTEREST EXPENSE 17,651  18,689  20,436  22,753 24,148 
NET INTEREST INCOME 153,081  145,237  146,533  146,681 154,960 
   Provision for credit losses (1,308) (19,890) (12,951) 1,445 6,943 
NET INTEREST INCOME AFTER PROVISION      
   FOR CREDIT LOSSES 154,389  165,127  159,484  145,236 148,017 
NON-INTEREST INCOME      
   Wealth management fees 8,042  7,877  7,892  7,361 7,233 
   Service charges on deposit accounts 11,909  11,557  10,050  9,715 10,799 
   Other service charges and fees 1,762  1,964  2,048  1,922 1,783 
   Mortgage lending income 5,043  5,818  4,490  6,447 2,993 
   Debit and credit card fees 7,460  7,102  7,073  6,610 6,415 
   Bank owned life insurance income 2,768  2,573  2,038  1,523 1,481 
   (Loss) gain on sale of securities, net (348) 5,248  5,127  5,471 16 
   Other income 9,965  6,411  8,397  10,500 11,041 
           TOTAL NON-INTEREST INCOME 46,601  48,550  47,115  49,549 41,761 
NON-INTEREST EXPENSE      
   Salaries and employee benefits 63,832  61,902  60,261  60,340 55,762 
   Occupancy expense, net 11,033  9,361  9,103  9,300 9,182 
   Furniture and equipment expense 4,721  4,895  4,859  5,415 5,940 
   Other real estate and foreclosure expense 576  339  863  343 551 
   Deposit insurance 2,108  1,870  1,687  1,308 1,627 
   Merger-related costs 13,591  1,401  686  233 731 
   Other operating expenses 45,736  34,565  37,198  36,063 52,047 
           TOTAL NON-INTEREST EXPENSE 141,597  114,333  114,657  113,002 125,840 
NET INCOME BEFORE INCOME TAXES 59,393  99,344  91,942  81,783 63,938 
   Provision for income taxes 11,155  18,770  17,018  14,363 10,970 
NET INCOME 48,238  80,574  74,924  67,420 52,968 
   Preferred stock dividends 8  13  13  13 13 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$ 48,230 $ 80,561 $ 74,911 $ 67,407$ 52,955 
BASIC EARNINGS PER SHARE$ 0.42 $ 0.75 $ 0.69 $ 0.62$ 0.49 
DILUTED EARNINGS PER SHARE$ 0.42 $ 0.74 $ 0.69 $ 0.62$ 0.49 
       
Page 2 
       



Simmons First National Corporation   SFNC
Consolidated Risk-Based Capital     
For the Quarters EndedDec 31Sep 30Jun 30Mar 31Dec 31
(Unaudited) 2021  2021  2021  2021  2020 
($ in thousands)     
Tier 1 capital     
   Stockholders' equity$3,248,841 $3,030,531 $3,039,366 $2,930,775 $2,976,656 
CECL transition provision (1) 114,458  122,787  128,933  131,637  131,430 
   Disallowed intangible assets, net of deferred tax (1,226,686) (1,152,688) (1,156,203) (1,159,720) (1,163,797)
   Unrealized loss (gain) on AFS securities 10,545  11,429  (12,073) 37,176  (59,726)
      Total Tier 1 capital 2,147,158  2,012,059  2,000,023  1,939,868  1,884,563 
      
Tier 2 capital     
   Trust preferred securities and subordinated debt 384,131  383,278  383,143  383,008  382,874 
   Qualifying allowance for loan losses and     
      reserve for unfunded commitments 71,853  60,700  79,138  87,251  89,546 
      Total Tier 2 capital 455,984  443,978  462,281  470,259  472,420 
      Total risk-based capital$ 2,603,142 $ 2,456,037 $ 2,462,304 $ 2,410,127 $ 2,356,983 
      
Risk weighted assets$ 15,538,967 $ 14,098,320 $ 14,076,975 $ 13,771,244 $ 14,048,608 
      
Adjusted average assets for leverage ratio$ 23,647,901 $ 22,189,921 $ 22,244,118 $ 21,668,406 $ 20,765,127 
      
Ratios at end of quarter     
   Equity to assets 13.14% 13.05% 12.98% 12.55% 13.31%
Tangible common equity to tangible assets (2) 8.51% 8.41% 8.36% 7.88% 8.45%
   Common equity Tier 1 ratio (CET1) 13.82% 14.27% 14.20% 14.08% 13.41%
   Tier 1 leverage ratio 9.08% 9.07% 8.99% 8.95% 9.08%
   Tier 1 risk-based capital ratio 13.82% 14.27% 14.21% 14.09% 13.41%
   Total risk-based capital ratio 16.75% 17.42% 17.49% 17.50% 16.78%
      
(1) The Company has elected to use the CECL transition provision allowed for in the year of adopting ASC 326.
(2) Calculations of tangible common equity to tangible assets and the reconciliations to GAAP are included in the
schedules accompanying this release.     
      
      
Page 3
      



Simmons First National Corporation   SFNC 
Consolidated Investment Securities      
For the Quarters EndedDec 31Sep 30Jun 30Mar 31Dec 31 
(Unaudited) 2021 2021 2021 2021 2020 
($ in thousands)      
Investment Securities - End of Period      
Held-to-Maturity      
   U.S. Government agencies$232,609$232,549$77,396$77,396$- 
   Mortgage-backed securities 70,342 57,930 60,649 47,988 22,354 
   State and political subdivisions 1,209,051 1,209,091 793,307 484,116 310,109 
   Other securities 17,219 17,227 - - 568 
      Total held-to-maturity (net of credit losses) 1,529,221 1,516,797 931,352 609,500 333,031 
Available-for-Sale      
   U.S. Treasury$300$300$600$600$- 
   U.S. Government agencies 364,641 354,382 554,937 487,679 477,237 
   Mortgage-backed securities 4,448,616 4,421,620 3,987,209 2,133,086 1,394,936 
   State and political subdivisions 1,819,658 1,575,208 1,557,497 1,571,910 1,470,723 
   Other securities 480,330 470,693 456,338 335,073 130,702 
      Total available-for-sale (net of credit losses) 7,113,545 6,822,203 6,556,581 4,528,348 3,473,598 
      Total investment securities (net of credit losses)$ 8,642,766$ 8,339,000$ 7,487,933$ 5,137,848$ 3,806,629 
      Fair value - HTM investment securities$ 1,517,378$ 1,487,916$ 935,596$ 597,694$ 341,925 
       
Investment Securities - QTD Average      
Taxable securities$5,790,429$5,475,932$4,265,545$2,471,291$1,757,234 
Tax exempt securities 2,787,301 2,496,958 2,157,076 1,919,919 1,528,127 
   Total investment securities - QTD average$ 8,577,730$ 7,972,890$ 6,422,621$ 4,391,210$ 3,285,361 
       
       
Page 4 
       



Simmons First National Corporation   SFNC 
Consolidated Loans      
For the Quarters EndedDec 31Sep 30Jun 30Mar 31Dec 31 
(Unaudited) 2021 2021 2021 2021 2020 
($ in thousands)      
Loan Portfolio - End of Period      
Consumer      
   Credit cards$187,052$175,884$177,634$175,458$188,845 
   Other consumer 168,318 182,492 181,712 172,965 202,379 
Total consumer 355,370 358,376 359,346 348,423 391,224 
Real Estate      
   Construction 1,327,210 1,229,740 1,428,165 1,451,841 1,596,255 
   Single-family residential 2,101,136 1,540,701 1,608,028 1,730,056 1,880,673 
   Other commercial real estate 5,738,904 5,308,902 5,332,655 5,638,010 5,746,863 
Total real estate 9,167,250 8,079,343 8,368,848 8,819,907 9,223,791 
Commercial      
   Commercial 1,992,043 1,821,905 2,074,729 2,444,700 2,574,386 
   Agricultural 168,717 216,735 193,462 155,921 175,905 
Total commercial 2,160,760 2,038,640 2,268,191 2,600,621 2,750,291 
Other 329,123 348,868 389,967 426,922 535,591 
      Total loans$ 12,012,503$ 10,825,227$ 11,386,352$ 12,195,873$ 12,900,897 
       
       
Page 5 
       



Simmons First National Corporation   SFNC
Consolidated Allowance and Asset Quality     
For the Quarters EndedDec 31Sep 30Jun 30Mar 31Dec 31
(Unaudited) 2021  2021  2021  2021  2020 
($ in thousands)     
Allowance for Credit Losses on Loans     
Beginning balance, after adoption of ASC 326$ 202,508 $ 227,239 $ 235,116 $ 238,050 $ 248,251 
      
Day 1 PCD allowance from acquisitions     
   Landmark (10/08/2021) 2,359     
   Triumph (10/08/2021) 11,092     
      Total Day 1 PCD allowance 13,451     
      
Loans charged off     
   Credit cards 865  711  1,046  1,003  787 
   Other consumer 477  463  411  702  960 
   Real estate 2,624  5,941  439  1,687  10,415 
   Commercial 8,513  932  309  859  8,199 
      Total loans charged off 12,479  8,047  2,205  4,251  20,361 
      
Recoveries of loans previously charged off     
   Credit cards 247  267  244  290  241 
   Other consumer 267  408  425  304  355 
   Real estate 916  2,068  1,523  403  431 
   Commercial 1,730  463  2,147  320  1,835 
      Total recoveries 3,160  3,206  4,339  1,317  2,862 
   Net loans charged off 9,319  4,841  (2,134) 2,934  17,499 
Provision for credit losses on loans (1,308) (19,890) (10,011) -  7,298 
Balance, end of quarter$ 205,332 $ 202,508 $ 227,239 $ 235,116 $ 238,050 
      
Non-performing assets     
Non-performing loans     
   Nonaccrual loans$68,204 $59,054 $80,282 $114,856 $122,879 
   Loans past due 90 days or more 349  334  653  635  578 
      Total non-performing loans 68,553  59,388  80,935  115,491  123,457 
Other non-performing assets     
   Foreclosed assets and other real estate owned 6,032  11,759  15,239  11,168  18,393 
   Other non-performing assets 1,667  1,724  1,062  1,229  2,016 
      Total other non-performing assets 7,699  13,483  16,301  12,397  20,409 
         Total non-performing assets$ 76,252 $ 72,871 $ 97,236 $ 127,888 $ 143,866 
Performing TDRs (troubled debt restructurings)$4,289 $4,251 $4,436 $3,805 $3,138 
      
Ratios     
Allowance for credit losses on loans to total loans 1.71% 1.87% 2.00% 1.93% 1.85%
Allowance for credit losses to non-performing loans 300% 341% 281% 204% 193%
Non-performing loans to total loans 0.57% 0.55% 0.71% 0.95% 0.96%
Non-performing assets (including performing TDRs)     
  to total assets 0.33% 0.33% 0.43% 0.56% 0.66%
Non-performing assets to total assets 0.31% 0.31% 0.42% 0.55% 0.64%
Annualized net charge offs to total loans 0.31% 0.17% -0.07% 0.10% 0.52%
Annualized net credit card charge offs to     
  total credit card loans 1.29% 0.96% 1.78% 1.58% 1.15%
      
      
Page 6
      



Simmons First National Corporation         SFNC
Consolidated - Average Balance Sheet and Net Interest Income Analysis      
For the Quarters Ended           
(Unaudited)           
 Three Months Ended Dec 2021 Three Months Ended Sep 2021 Three Months Ended Dec 2020
($ in thousands)Average BalanceIncome/ ExpenseYield/ Rate Average BalanceIncome/ ExpenseYield/ Rate Average BalanceIncome/ ExpenseYield/ Rate
ASSETS           
Earning assets:           
   Interest bearing balances due from banks           
     and federal funds sold$1,484,752$5830.16%$1,866,530$7630.16%$2,651,938$7160.11%
   Investment securities - taxable 5,790,429 17,1861.18% 5,475,932 17,0761.24% 1,757,234 7,7201.75%
   Investment securities - non-taxable (FTE) 2,787,301 20,4702.91% 2,496,958 18,3992.92% 1,528,127 12,7783.33%
   Mortgage loans held for sale 42,866 3102.87% 32,134 2302.84% 179,275 1,0702.37%
   Loans - including fees (FTE) 11,924,444 137,7624.58% 11,030,438 132,3994.76% 13,457,077 160,3064.74%
      Total interest earning assets (FTE) 22,029,792 176,3113.18% 20,901,992 168,8673.21% 19,573,651 182,5903.71%
   Non-earning assets 2,668,230    2,353,549    2,278,443  
     Total assets$ 24,698,022   $ 23,255,541   $ 21,852,094  
            
LIABILITIES AND STOCKHOLDERS' EQUITY          
Interest bearing liabilities:           
   Interest bearing transaction and           
     savings accounts$11,413,325$4,3900.15%$10,629,142$4,3690.16%$9,389,570$6,5360.28%
   Time deposits 2,607,011 3,7050.56% 2,645,896 4,7470.71% 2,823,166 7,8351.10%
      Total interest bearing deposits 14,020,336 8,0950.23% 13,275,038 9,1160.27% 12,212,736 14,3710.47%
   Federal funds purchased and securities           
     sold under agreement to repurchase 223,008 720.13% 219,604 700.13% 340,333 2840.33%
   Other borrowings 1,340,825 4,9031.45% 1,338,866 4,8931.45% 1,342,403 4,8691.44%
   Subordinated notes and debentures 383,489 4,5814.74% 383,213 4,6104.77% 382,808 4,6244.81%
      Total interest bearing liabilities 15,967,658 17,6510.44% 15,216,721 18,6890.49% 14,278,280 24,1480.67%
Non-interest bearing liabilities:           
   Non-interest bearing deposits 5,288,933    4,803,171    4,413,168  
   Other liabilities 179,362    167,677    204,014  
      Total liabilities 21,435,953    20,187,569    18,895,462  
Stockholders' equity 3,262,069    3,067,972    2,956,632  
      Total liabilities and stockholders' equity$ 24,698,022   $ 23,255,541   $ 21,852,094  
Net interest income (FTE) $ 158,660   $ 150,178   $ 158,442 
Net interest spread (FTE)  2.74%  2.72%  3.04%
Net interest margin (FTE) - quarter-to-date  2.86%  2.85%  3.22%
            
Net interest margin (FTE) - year-to-date  2.89%  2.91%  3.38%
            

Page 7
            



Simmons First National Corporation   SFNC 
Consolidated - Selected Financial Data      
For the Quarters EndedDec 31Sep 30Jun 30Mar 31Dec 31 
(Unaudited) 2021  2021  2021  2021  2020  
($ in thousands, except share data)      
QUARTER-TO-DATE      
Financial Highlights - GAAP      
Net Income$48,230 $80,561 $74,911 $67,407 $52,955  
Diluted earnings per share 0.42  0.74  0.69  0.62  0.49  
Return on average assets 0.77% 1.37% 1.29% 1.20% 0.96% 
Return on average common equity 5.87% 10.42% 10.08% 9.20% 7.13% 
Return on tangible common equity 9.98% 17.43% 17.25% 15.85% 12.48% 
Net interest margin (FTE) 2.86% 2.85% 2.89% 2.99% 3.22% 
FTE adjustment 5,579  4,941  4,548  4,163  3,482  
Average diluted shares outstanding 114,491,119  108,359,890  108,822,175  108,655,293  108,888,264  
Shares repurchased under plan 2,625,348  1,806,205  -  130,916  1,034,364  
Average price of shares repurchased 29.69  28.48  -  23.53  19.36  
Cash dividends declared per common share 0.18  0.18  0.18  0.18  0.17  
Financial Highlights - Core (non-GAAP)      
Core earnings (excludes non-core items) (1)$59,486 $79,350 $75,435 $63,995 $61,977  
Core diluted earnings per share (1) 0.52  0.73  0.69  0.59  0.57  
Accretable yield on acquired loans 5,758  4,122  5,619  6,630  8,999  
Efficiency ratio (1) 59.48% 58.10% 56.75% 57.25% 54.75% 
Core return on average assets (1) 0.96% 1.35% 1.30% 1.14% 1.13% 
Core return on average common equity (1) 7.24% 10.26% 10.15% 8.73% 8.34% 
Core return on tangible common equity (1) 12.19% 17.18% 17.36% 15.08% 14.51% 
YEAR-TO-DATE      
Financial Highlights - GAAP      
Net Income$271,109 $222,879 $142,318 $67,407 $254,852  
Diluted earnings per share 2.46  2.05  1.31  0.62  2.31  
Return on average assets 1.15% 1.29% 1.25% 1.20% 1.18% 
Return on average common equity 8.83% 9.91% 9.64% 9.20% 8.72% 
Return on tangible common equity 14.99% 16.86% 16.56% 15.85% 15.25% 
Net interest margin (FTE) 2.89% 2.91% 2.94% 2.99% 3.38% 
FTE adjustment 19,231  13,652  8,711  4,163  11,001  
Average diluted shares outstanding 110,198,094  108,667,928  108,746,439  108,655,293  110,173,661  
Cash dividends declared per common share 0.72  0.54  0.36  0.18  0.68  
Financial Highlights - Core (non-GAAP)      
Core earnings (excludes non-core items) (1)$278,266 $218,780 $139,430 $63,995 $264,300  
Core diluted earnings per share (1) 2.53  2.01  1.28  0.59  2.40  
Accretable yield on acquired loans 22,129  16,371  12,249  6,630  41,507  
Efficiency ratio (1) 57.92% 57.37% 57.00% 57.25% 54.18% 
Core return on average assets (1) 1.18% 1.27% 1.22% 1.14% 1.22% 
Core return on average common equity (1) 9.06% 9.73% 9.45% 8.73% 9.05% 
Core return on tangible common equity (1) 15.38% 16.56% 16.23% 15.08% 15.79% 
END OF PERIOD      
Book value per share$28.82 $28.42 $28.03 $27.04 $27.53  
Tangible book value per share 17.71  17.39  17.16  16.13  16.56  
Shares outstanding 112,715,444  106,603,231  108,386,669  108,345,732  108,077,662  
Full-time equivalent employees 2,877  2,740  2,783  2,817  2,827  
Total number of financial centers 199  185  198  198  204  
       
(1) Core earnings exclude non-core items, which is a non-GAAP measurement. Reconciliations to GAAP are included in the 
schedules accompanying this release.      
       
Page 8 
       



Simmons First National Corporation   SFNC
Reconciliation Of Non-GAAP Financial Measures - Core Earnings - Quarter-to-Date 
For the Quarters EndedDec 31Sep 30Jun 30Mar 31Dec 31
(Unaudited) 2021  2021  2021  2021  2020 
($ in thousands, except per share data)     
QUARTER-TO-DATE     
Net Income$48,230 $80,561 $74,911 $67,407 $52,955 
Non-core items     
Gain on sale of branches -  -  (16) (5,300) (275)
Merger-related costs 13,591  1,401  686  233  731 
Early retirement program -  -  -  -  62 
Branch right-sizing (net) 1,648  (3,041) 39  448  11,696 
Tax effect (1) (3,983) 429  (185) 1,207  (3,192)
Net non-core items 11,256  (1,211) 524  (3,412) 9,022 
Core earnings (non-GAAP)$ 59,486 $ 79,350 $ 75,435 $ 63,995 $ 61,977 
      
Diluted earnings per share$0.42 $0.74 $0.69 $0.62 $0.49 
Non-core items     
Gain on sale of branches -  -  -  (0.05) - 
Merger-related costs 0.12  0.01  0.01  -  - 
Early retirement program -  -  -  -  - 
Branch right-sizing (net) 0.01  (0.03) -  0.01  0.11 
Tax effect (1) (0.03) 0.01  (0.01) 0.01  (0.03)
Net non-core items 0.10  (0.01) -  (0.03) 0.08 
Core diluted earnings per share (non-GAAP)$ 0.52 $ 0.73 $ 0.69 $ 0.59 $ 0.57 
      
(1) Effective tax rate of 26.135%.     
      
Reconciliation of Selected Non-Core Non-Interest Income and Expense Items (non-GAAP) 
      
QUARTER-TO-DATE     
   Other income$9,965 $6,411 $8,397 $10,500 $11,041 
Non-core items (1) (2) 239  (445) (5,477) (275)
   Core other income (non-GAAP)$ 9,963 $ 6,650 $ 7,952 $ 5,023 $ 10,766 
      
   Non-interest expense$141,597 $114,333 $114,657 $113,002 $125,840 
Non-core items (1) (15,241) 1,879  (1,154) (858) (12,489)
   Core non-interest expense (non-GAAP)$ 126,356 $ 116,212 $ 113,503 $ 112,144 $ 113,351 
      
   Salaries and employee benefits$63,832 $61,902 $60,261 $60,340 $55,762 
Non-core items (1) -  (66) -  -  (144)
   Core salaries and employee benefits (non-GAAP)$ 63,832 $ 61,836 $ 60,261 $ 60,340 $ 55,618 
      
   Merger related costs$13,591 $1,401 $686 $233 $731 
Non-core items (1) (13,591) (1,401) (686) (233) (731)
   Core merger related costs (non-GAAP)$ - $ - $ - $ - $ - 
      
   Other operating expenses$45,736 $34,565 $37,198 $36,063 $52,047 
Non-core items (1) 96  3,759  (89) (208) (10,270)
   Core other operating expenses (non-GAAP)$ 45,832 $ 38,324 $ 37,109 $ 35,855 $ 41,777 
      
(1) Non-core items include gain on sale of branches, merger related costs, early retirement program expenses and
branch right-sizing costs.     
      
Page 9



Simmons First National Corporation   SFNC
Reconciliation Of Non-GAAP Financial Measures - Core Earnings - Year-to-Date 
For the Quarters EndedDec 31Sep 30Jun 30Mar 31Dec 31
(Unaudited) 2021  2021  2021  2021  2020 
($ in thousands, except per share data)     
YEAR-TO-DATE     
Net Income$271,109 $222,879 $142,318 $67,407 $254,852 
Non-core items     
Gain on sale of branches (5,316) (5,316) (5,316) (5,300) (8,368)
Merger-related costs 15,911  2,320  919  233  4,531 
Early retirement program -  -  -  -  2,901 
Branch right-sizing (net) (906) (2,554) 487  448  13,727 
Tax effect (1) (2,532) 1,451  1,022  1,207  (3,343)
Net non-core items 7,157  (4,099) (2,888) (3,412) 9,448 
Core earnings (non-GAAP)$ 278,266 $ 218,780 $ 139,430 $ 63,995 $ 264,300 
      
Diluted earnings per share$2.46 $2.05 $1.31 $0.62 $2.31 
Non-core items     
Gain on sale of branches (0.05) (0.05) (0.05) (0.05) (0.07)
Merger-related costs 0.15  0.02  0.01  -  0.04 
Early retirement program -  -  -  -  0.03 
Branch right-sizing (net) (0.01) (0.02) -  0.01  0.12 
Tax effect (1) (0.02) 0.01  0.01  0.01  (0.03)
Net non-core items 0.07  (0.04) (0.03) (0.03) 0.09 
Core diluted earnings per share (non-GAAP)$ 2.53 $ 2.01 $ 1.28 $ 0.59 $ 2.40 
      
(1) Effective tax rate of 26.135%.     
      
Reconciliation of Selected Non-Core Non-Interest Income and Expense Items (non-GAAP) 
      
YEAR-TO-DATE     
   Other income$35,273 $25,308 $18,897 $10,500 $39,876 
Non-core items (1) (5,685) (5,683) (5,922) (5,477) (8,738)
   Core other income (non-GAAP)$ 29,588 $ 19,625 $ 12,975 $ 5,023 $ 31,138 
      
   Non-interest expense$483,589 $341,992 $227,659 $113,002 $484,736 
Non-core items (1) (15,374) (133) (2,012) (858) (21,529)
   Core non-interest expense (non-GAAP)$ 468,215 $ 341,859 $ 225,647 $ 112,144 $ 463,207 
      
   Salaries and employee benefits$246,335 $182,503 $120,601 $60,340 $242,474 
Non-core items (1) (66) (66) -  -  (3,085)
   Core salaries and employee benefits (non-GAAP)$ 246,269 $ 182,437 $ 120,601 $ 60,340 $ 239,389 
      
   Merger related costs$15,911 $2,320 $919 $233 $4,531 
Non-core items (1) (15,911) (2,320) (919) (233) (4,531)
   Core merger related costs (non-GAAP)$ - $ - $ - $ - $ - 
      
   Other operating expenses$153,562 $107,826 $73,261 $36,063 $165,201 
Non-core items (1) 3,558  3,462  (297) (208) (12,155)
   Core other operating expenses (non-GAAP)$ 157,120 $ 111,288 $ 72,964 $ 35,855 $ 153,046 
      
(1) Non-core items include gain on sale of branches, merger related costs, early retirement program expenses and
branch right-sizing costs.     
      
Page 10



Simmons First National Corporation    SFNC 
Reconciliation Of Non-GAAP Financial Measures - End of Period    
For the Quarters EndedDec 31Sep 30Jun 30Mar 31Dec 31 
(Unaudited) 2021  2021  2021  2021  2020  
($ in thousands, except per share data)      
       
Calculation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets   
       
Total common stockholders' equity$3,248,841 $3,029,764 $3,038,599 $2,930,008 $2,975,889  
Intangible assets:      
   Goodwill (1,146,007) (1,075,305) (1,075,305) (1,075,305) (1,075,305) 
   Other intangible assets (106,235) (100,428) (103,759) (107,091) (111,110) 
Total intangibles (1,252,242) (1,175,733) (1,179,064) (1,182,396) (1,186,415) 
Tangible common stockholders' equity$ 1,996,599 $ 1,854,031 $ 1,859,535 $ 1,747,612 $ 1,789,474  
       
Total assets$24,724,759 $23,225,930 $23,423,159 $23,348,117 $22,359,752  
Intangible assets:      
   Goodwill (1,146,007) (1,075,305) (1,075,305) (1,075,305) (1,075,305) 
   Other intangible assets (106,235) (100,428) (103,759) (107,091) (111,110) 
Total intangibles (1,252,242) (1,175,733) (1,179,064) (1,182,396) (1,186,415) 
Tangible assets$ 23,472,517 $ 22,050,197 $ 22,244,095 $ 22,165,721 $ 21,173,337  
       
Paycheck protection program ("PPP") loans (116,659) (212,087) (441,353) (797,629) (904,673) 
Total assets excluding PPP loans$ 24,608,100 $ 23,013,843 $ 22,981,806 $ 22,550,488 $ 21,455,079  
Tangible assets excluding PPP loans$ 23,355,858 $ 21,838,110 $ 21,802,742 $ 21,368,092 $ 20,268,664  
       
Ratio of common equity to assets 13.14% 13.04% 12.97% 12.55% 13.31% 
Ratio of common equity to assets excluding PPP loans 13.20% 13.16% 13.22% 12.99% 13.87% 
Ratio of tangible common equity to tangible assets 8.51% 8.41% 8.36% 7.88% 8.45% 
Ratio of tangible common equity to tangible assets excluding PPP loans 8.55% 8.49% 8.53% 8.18% 8.83% 
       
Calculation of Tangible Book Value per Share      
       
Total common stockholders' equity$3,248,841 $3,029,764 $3,038,599 $2,930,008 $2,975,889  
Intangible assets:      
   Goodwill (1,146,007) (1,075,305) (1,075,305) (1,075,305) (1,075,305) 
   Other intangible assets (106,235) (100,428) (103,759) (107,091) (111,110) 
Total intangibles (1,252,242) (1,175,733) (1,179,064) (1,182,396) (1,186,415) 
Tangible common stockholders' equity$ 1,996,599 $ 1,854,031 $ 1,859,535 $ 1,747,612 $ 1,789,474  
Shares of common stock outstanding 112,715,444  106,603,231  108,386,669  108,345,732  108,077,662  
Book value per common share$ 28.82 $ 28.42 $ 28.03 $ 27.04 $ 27.53  
Tangible book value per common share$ 17.71 $ 17.39 $ 17.16 $ 16.13 $ 16.56  
       
Page 11 



Simmons First National Corporation    SFNC 
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date    
For the Quarters EndedDec 31Sep 30Jun 30Mar 31Dec 31 
(Unaudited) 2021  2021  2021  2021  2020  
($ in thousands)      
Calculation of Core Return on Average Assets      
       
Net income$48,230 $80,561 $74,911 $67,407 $52,955  
Net non-core items, net of taxes, adjustment 11,256  (1,211) 524  (3,412) 9,022  
Core earnings$ 59,486 $ 79,350 $ 75,435 $ 63,995 $ 61,977  
       
Average total assets$ 24,698,022 $ 23,255,541 $ 23,257,921 $ 22,738,821 $ 21,852,094  
       
Return on average assets 0.77% 1.37% 1.29% 1.20% 0.96% 
Core return on average assets 0.96% 1.35% 1.30% 1.14% 1.13% 
       
Calculation of Return on Tangible Common Equity      
       
Net income$48,230 $80,561 $74,911 $67,407 $52,955  
Amortization of intangibles, net of taxes 2,575  2,460  2,462  2,470  2,475  
Total income available to common stockholders$ 50,805 $ 83,021 $ 77,373 $ 69,877 $ 55,430  
       
Net non-core items, net of taxes 11,256  (1,211) 524  (3,412) 9,022  
Core earnings 59,486  79,350  75,435  63,995  61,977  
Amortization of intangibles, net of taxes 2,575  2,460  2,462  2,470  2,475  
Total core income available to common stockholders$ 62,061 $ 81,810 $ 77,897 $ 66,465 $ 64,452  
       
Average common stockholders' equity$3,261,627 $3,067,205 $2,980,609 $2,972,689 $2,955,865  
Average intangible assets:      
   Goodwill (1,137,441) (1,075,305) (1,075,305) (1,075,305) (1,075,305) 
   Other intangibles (105,155) (102,576) (105,785) (109,850) (113,098) 
Total average intangibles (1,242,596) (1,177,881) (1,181,090) (1,185,155) (1,188,403) 
Average tangible common stockholders' equity$ 2,019,031 $ 1,889,324 $ 1,799,519 $ 1,787,534 $ 1,767,462  
       
Return on average common equity 5.87% 10.42% 10.08% 9.20% 7.13% 
Return on tangible common equity 9.98% 17.43% 17.25% 15.85% 12.48% 
Core return on average common equity 7.24% 10.26% 10.15% 8.73% 8.34% 
Core return on tangible common equity 12.19% 17.18% 17.36% 15.08% 14.51% 
       
Calculation of Efficiency Ratio (1)      
       
Non-interest expense$141,597 $114,333 $114,657 $113,002 $125,840  
Non-core non-interest expense adjustment (15,241) 1,879  (1,154) (858) (12,489) 
Other real estate and foreclosure expense adjustment (576) (339) (863) (343) (545) 
Amortization of intangibles adjustment (3,486) (3,331) (3,333) (3,344) (3,351) 
Efficiency ratio numerator$ 122,294 $ 112,542 $ 109,307 $ 108,457 $ 109,455  
       
Net-interest income$153,081 $145,237 $146,533 $146,681 $154,960  
Non-interest income 46,601  48,550  47,115  49,549  41,761  
Non-core non-interest income adjustment (2) 239  (445) (5,477) (275) 
Fully tax-equivalent adjustment (effective tax rate of 26.135%) 5,579  4,941  4,548  4,163  3,482  
Loss (gain) on sale of securities 348  (5,248) (5,127) (5,471) (16) 
Efficiency ratio denominator$ 205,607 $ 193,719 $ 192,624 $ 189,445 $ 199,912  
       
Efficiency ratio (1) 59.48% 58.10% 56.75% 57.25% 54.75% 
       
(1) Efficiency ratio is core non-interest expense before foreclosed property expense and amortization of intangibles as a percent of net interest income (fully
taxable equivalent) and non-interest revenues, excluding gains and losses from securities transactions and non-core items.  
       
Page 12 



Simmons First National Corporation    SFNC 
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date (continued)   
For the Quarters EndedDec 31Sep 30Jun 30Mar 31Dec 31 
(Unaudited) 2021  2021  2021  2021  2020  
($ in thousands)      
Calculation of Adjusted Pre-Tax, Pre-Provision (PTPP) Earnings     
       
Net income available to common stockholders$48,230 $80,561 $74,911 $67,407 $52,955  
Provision for income taxes 11,155  18,770  17,018  14,363  10,970  
Provision for credit losses (including provision for unfunded commitments) (1,308) (19,890) (12,951) 1,445  6,943  
Loss (gain) on sale of securities 348  (5,248) (5,127) (5,471) (16) 
Net pre-tax non-core items 15,239  (1,640) 709  (4,619) 12,214  
Adjusted Pre-tax, pre-provision (PTPP) earnings$ 73,664 $ 72,553 $ 74,560 $ 73,125 $ 83,066  
       
       
Page 13 



Simmons First National Corporation    SFNC
Reconciliation Of Non-GAAP Financial Measures - Year-to-Date   
For the Quarters EndedDec 31Sep 30Jun 30Mar 31Dec 31
(Unaudited) 2021  2021  2021  2021  2020 
($ in thousands)     
Calculation of Core Return on Average Assets     
      
Net income$271,109 $222,879 $142,318 $67,407 $254,852 
Net non-core items, net of taxes, adjustment 7,157  (4,099) (2,888) (3,412) 9,448 
Core earnings$ 278,266 $ 218,780 $ 139,430 $ 63,995 $ 264,300 
      
Average total assets$ 23,492,308 $ 23,085,987 $ 22,999,805 $ 22,738,821 $ 21,590,745 
      
Return on average assets 1.15% 1.29% 1.25% 1.20% 1.18%
Core return on average assets 1.18% 1.27% 1.22% 1.14% 1.22%
      
Calculation of Return on Tangible Common Equity     
      
Net income$271,109 $222,879 $142,318 $67,407 $254,852 
Amortization of intangibles, net of taxes 9,967  7,392  4,932  2,470  9,968 
Total income available to common stockholders$ 281,076 $ 230,271 $ 147,250 $ 69,877 $ 264,820 
      
Net non-core items, net of taxes 7,157  (4,099) (2,888) (3,412) 9,448 
Core earnings 278,266  218,780  139,430  63,995  264,300 
Amortization of intangibles, net of taxes 9,967  7,392  4,932  2,470  9,968 
Total core income available to common stockholders$ 288,233 $ 226,172 $ 144,362 $ 66,465 $ 274,268 
      
Average common stockholders' equity$3,071,313 $3,007,181 $2,976,671 $2,972,689 $2,921,039 
Average intangible assets:     
   Goodwill (1,090,967) (1,075,305) (1,075,305) (1,075,305) (1,065,190)
   Other intangibles (105,820) (106,043) (107,806) (109,850) (118,812)
Total average intangibles (1,196,787) (1,181,348) (1,183,111) (1,185,155) (1,184,002)
Average tangible common stockholders' equity$ 1,874,526 $ 1,825,833 $ 1,793,560 $ 1,787,534 $ 1,737,037 
      
Return on average common equity 8.83% 9.91% 9.64% 9.20% 8.72%
Return on tangible common equity 14.99% 16.86% 16.56% 15.85% 15.25%
Core return on average common equity 9.06% 9.73% 9.45% 8.73% 9.05%
Core return on tangible common equity 15.38% 16.56% 16.23% 15.08% 15.79%
      
Calculation of Efficiency Ratio (1)     
      
Non-interest expense$483,589 $341,992 $227,659 $113,002 $484,736 
Non-core non-interest expense adjustment (15,374) (133) (2,012) (858) (21,529)
Other real estate and foreclosure expense adjustment (2,121) (1,545) (1,206) (343) (1,706)
Amortization of intangibles adjustment (13,494) (10,008) (6,677) (3,344) (13,495)
Efficiency ratio numerator$ 452,600 $ 330,306 $ 217,764 $ 108,457 $ 448,006 
      
Net-interest income$591,532 $438,451 $293,214 $146,681 $639,734 
Non-interest income 191,815  145,214  96,664  49,549  239,769 
Non-core non-interest income adjustment (5,685) (5,683) (5,922) (5,477) (8,738)
Fully tax-equivalent adjustment (effective tax rate of 26.135%) 19,231  13,652  8,711  4,163  11,001 
Gain on sale of securities (15,498) (15,846) (10,598) (5,471) (54,806)
Efficiency ratio denominator$ 781,395 $ 575,788 $ 382,069 $ 189,445 $ 826,960 
      
Efficiency ratio (1) 57.92% 57.37% 57.00% 57.25% 54.18%
      
(1) Efficiency ratio is core non-interest expense before foreclosed property expense and amortization of intangibles as a percent of net interest income (fully
taxable equivalent) and non-interest revenues, excluding gains and losses from securities transactions and non-core items. 
      
Page 14
      



Simmons First National Corporation    SFNC 
Reconciliation Of Non-GAAP Financial Measures - Year-to-Date (continued)    
For the Quarters EndedDec 31Sep 30Jun 30Mar 31Dec 31 
(Unaudited) 2021  2021  2021  2021  2020  
($ in thousands)      
Calculation of Adjusted Pre-Tax, Pre-Provision (PTPP) Earnings     
       
Net income available to common stockholders$271,109 $222,879 $142,318 $67,407 $254,852  
Provision for income taxes 61,306  50,151  31,381  14,363  64,890  
Provision for credit losses (including provision for unfunded commitments) (32,704) (31,396) (11,506) 1,445  74,973  
Gain on sale of securities (15,498) (15,846) (10,598) (5,471) (54,806) 
Net pre-tax non-core items 9,689  (5,550) (3,910) (4,619) 12,791  
Adjusted Pre-tax, pre-provision (PTPP) earnings$ 293,902 $ 220,238 $ 147,685 $ 73,125 $ 352,700  
       
       
Page 15 
       

 



 

 


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