Exhibit 99.1

 

July 24, 2024

Simmons First National Corporation Reports Second Quarter 2024 Results

Bob Fehlman, Simmons’ Chief Executive Officer, commented on second quarter 2024 results:

Overall, we were very pleased with our results for the quarter as key profitability metrics – net income, total revenue and pre-provision net revenue – all showed positive progression on a linked quarter basis.

Total loans increased 4 percent on a linked quarter annualized basis, while our focus on maintaining prudent pricing discipline resulted in a 15 basis point increase in the yield on our loan portfolio from the first quarter. At the same time, the pace of increase in deposit costs slowed, rising just 4 basis points compared to first quarter levels, and noninterest bearing deposit migration also eased. As a result, our net interest margin rose 3 basis points on a linked quarter basis.

Credit quality trends in the quarter were also positive, with nonperforming loans and past due loans decreasing from first quarter levels. While we continue to operate against a backdrop of uncertainty concerning slower economic growth and the timing of lower interest rates, we are comforted by our strong capital and liquidity positions. And given the liability sensitivity of our balance sheet, we believe we are well-positioned for profitable growth in a lower interest rate environment.

 

FINANCIAL HIGHLIGHTS		2Q24				1Q24				2Q23				2Q24 Highlights
BALANCE SHEET (in millions)														Comparisons reflect 2Q24 vs 1Q24   •  Net income of $40.8 million and diluted EPS of $0.32   •  Adjusted earnings1 of $41.9 million and adjusted diluted EPS1 of $0.33   •  Total revenue of $197.2 million. PPNR1 of $57.9 million; Adjusted PPNR1 of $59.4 million   •  Net interest margin at 2.69%, up 3 bps   •  Pace of increase in deposit costs slowed significantly (4 bps) and noninterest bearing migration eased   •  Positive operating leverage driven by revenue growth and decline in noninterest expense   •  Provision for credit losses on loans exceeded net charge-offs in the quarter by $3.0 million   •  NCO ratio 19 bps in 2Q24; 16 bps of NCO ratio associated with run-off portfolio •  ACL ratio ends the quarter at 1.34%; NPL coverage ratio at 223%   •  EA ratio 12.64%; TCE ratio1 up 9 bps to 7.84%
Total loans		$	17,192			$	17,002			$	16,834
Total investment securities			6,571				6,735				7,337
Total deposits			21,841				22,353				22,489
Total assets			27,369				27,372				27,959
Total shareholders’ equity			3,459				3,439				3,356
ASSET QUALITY
Net charge-off ratio (NCO ratio)			0.19	%			0.19	%			0.04	%
Nonperforming loan ratio			0.60				0.63				0.43
Nonperforming assets to total assets			0.39				0.41				0.28
Allowance for credit losses to total loans			1.34				1.34				1.25
Nonperforming loan coverage ratio			223				212				292
PERFORMANCE MEASURES (in millions)
Total revenue		$	197.2			$	195.1			$	208.2
Adjusted total revenue1			197.2				195.1				208.6
Pre-provision net revenue1 (PPNR)			57.9				55.2				68.5
Adjusted pre-provision net revenue1			59.4				57.2				72.6
Provision for credit losses			11.1				10.2				0.1
PER SHARE DATA
Diluted earnings		$	0.32			$	0.31			$	0.46
Adjusted diluted earnings1			0.33				0.32				0.48
Book value			27.56				27.42				26.59
Tangible book value1			16.20				16.02				15.17
CAPITAL RATIOS
Equity to assets (EA ratio)			12.64	%			12.56	%			12.00	%
Tangible common equity (TCE) ratio1			7.84				7.75				7.22
Common equity tier 1 (CET1) ratio			12.00				11.95				11.92
Total risk-based capital ratio			14.17				14.43				14.17
LIQUIDITY ($ in millions)
Loan to deposit ratio			78.72	%			76.06	%			74.85	%
Borrowed funds to total liabilities			7.38				5.42				7.49
Uninsured, non-collateralized deposits (UCD)		$	4,408			$	4,643			$	4,802
Additional liquidity sources			11,120				11,457				11,096
Coverage ratio of UCD			2.5x				2.5x				2.3x

Simmons First National Corporation (NASDAQ: SFNC) (Simmons or Company) today reported net income of $40.8 million for the second quarter of 2024, compared to $38.9 million in the first quarter of 2024 and $58.3 million in the second quarter of 2023. Diluted earnings per share were $0.32 for the second quarter of 2024, compared to $0.31 in the first quarter of 2024 and $0.46 in the second quarter of 2023. Adjusted earnings¹ for the second quarter of 2024 were $41.9 million, compared to $40.4 million for the first quarter of 2024 and $61.4 million for the second quarter of 2023. Adjusted diluted earnings per share¹ for the second quarter of 2024 were $0.33, compared to $0.32 for the first quarter of 2024 and $0.48 for the second quarter of 2023.

During the second quarter of 2024, we recorded $0.3 million of noninterest expense related to an FDIC special assessment levied to support the Deposit Insurance Fund. This expense was in addition to the $1.6 million and $10.5 million FDIC special assessment we recorded in the first quarter of 2024 and fourth quarter of 2023, respectively. The table below summarizes the impact of these items, along with the impact of certain other items, consisting primarily of branch right sizing, early retirement, and termination of vendor and software services. They are also described in further detail in the “Reconciliation of Non-GAAP Financial Measures” tables contained in this press release.

Impact of Certain Items on Earnings and Diluted EPS

 

$ in millions, except per share data		2Q24				1Q24				2Q23
Net income		$	40.8			$	38.9			$	58.3
FDIC special assessment			0.3				1.6				—
Branch right sizing, net			0.5				0.2				0.1
Early retirement program			0.1				0.2				3.6
Termination of vendor and software services			0.6				—				—
Loss on sale of AFS investment securities			—				—				0.4
Total pre-tax impact			1.5				2.0				4.1
Tax effect2			(0.4	)			(0.5	)			(1.0	)
Total impact on earnings			1.1				1.5				3.1
Adjusted earnings1		$	41.9			$	40.4			$	61.4
Diluted EPS		$	0.32			$	0.31			$	0.46
FDIC special assessment			—				0.01				—
Branch right sizing, net			—				—				—
Early retirement program			—				—				0.03
Termination of vendor and software contracts			0.01				—				—
Loss on sale of AFS investment securities			—				—				—
Total pre-tax impact			0.01				0.01				0.03
Tax effect2			—				—				(0.01	)
Total impact on earnings			0.01				0.01				0.02
Adjusted Diluted EPS1		$	0.33			$	0.32			$	0.48

Net Interest Income

Net interest income for the second quarter of 2024 totaled $153.9 million, compared to $151.9 million for the first quarter of 2024 and $163.2 million for the second quarter of 2023. Interest income totaled $329.1 million for the second quarter of 2024, compared to $322.6 million for the first quarter of 2024 and $297.2 million for the second quarter of 2023. The increase in interest income was primarily driven by an increase in loan production coupled with the rate earned on loans. Interest expense totaled $175.2 million for the second quarter of 2024, up $4.5 million on a linked quarter basis primarily due to an increase in other borrowings costs. Included in net interest income is accretion recognized on loans, which totaled $1.6 million for the second quarter of 2024, $1.1 million for the first quarter of 2024 and $2.3 million for the second quarter of 2023.

The yield on loans on a fully taxable equivalent (FTE) basis for the second quarter of 2024 was 6.39 percent, up 15 basis points from 6.24 percent for the first quarter of 2024 and up 50 basis points from 5.89 percent for the second quarter of 2023. Cost of deposits for the second quarter of 2024 was 2.79 percent, compared to 2.75 percent for the first quarter of 2024 and 1.96 percent for the second quarter of 2023. The net interest margin on an FTE basis for the second quarter of 2024 was 2.69 percent, compared to 2.66 percent for the first quarter of 2024 and 2.76 percent for the second quarter of 2023.

Select Yield/Rates

 

		2Q24				1Q24				4Q23				3Q23				2Q23
Loan yield (FTE)2			6.39	%			6.24	%			6.20	%			6.08	%			5.89	%
Investment securities yield (FTE)2			3.68				3.76				3.67				3.08				2.91
Cost of interest bearing deposits			3.53				3.48				3.31				3.06				2.57
Cost of deposits			2.79				2.75				2.58				2.37				1.96
Cost of borrowed funds			5.84				5.85				5.79				5.60				5.31
Net interest spread (FTE)2			1.92				1.89				1.93				1.87				2.10
Net interest margin (FTE)2			2.69				2.66				2.68				2.61				2.76

Noninterest Income

Noninterest income for the second quarter of 2024 was $43.3 million, compared to $43.2 million in the first quarter of 2024 and $45.0 million in the second quarter of 2023. Adjusted noninterest income¹ was $43.3 million in the second quarter of 2024, compared to $43.2 million in the first quarter of 2024 and $45.4 million in the second quarter of 2023. The increase in noninterest income and adjusted noninterest income on a linked quarter basis was primarily due to an increase in wealth management fees and service charges on deposit accounts, offset in part by a decline in mortgage lending income.

Noninterest Income

 

$ in millions		2Q24				1Q24				4Q23				3Q23				2Q23
Service charges on deposit accounts		$	12.3			$	12.0			$	12.8			$	12.4			$	12.9
Wealth management fees			8.3				7.5				7.7				7.7				7.4
Debit and credit card fees			8.2				8.2				7.8				7.7				8.0
Mortgage lending income			2.0				2.3				1.6				2.2				2.4
Other service charges and fees			2.4				2.2				2.3				2.2				2.3
Bank owned life insurance			3.9				3.8				3.1				3.1				2.6
Gain (loss) on sale of securities			—				—				(20.2	)			—				(0.4	)
Other income			6.4				7.2				6.9				7.4				9.8
Total noninterest income		$	43.3			$	43.2			$	22.0			$	42.8			$	45.0
Adjusted noninterest income1		$	43.3			$	43.2			$	42.2			$	42.8			$	45.4

Noninterest Expense

Noninterest expense for the second quarter of 2024 was $139.4 million, compared to $139.9 million in the first quarter of 2024 and $139.7 million in the second quarter of 2023. During the second quarter and first quarter of 2024, noninterest expense included an FDIC special assessment of $0.3 million and $1.6 million, respectively. Also included in noninterest expense are certain items consisting of branch right sizing, early retirement, and termination of vendor and software services. Collectively, these items totaled $1.5 million in the second quarter of 2024, $2.0 million in the first quarter of 2024 and $3.7 million in the second quarter of 2023. Excluding these items (which are described in the “Reconciliation of Non-GAAP Financial Measures” tables below), adjusted noninterest expense¹ was $137.8 million in the second quarter of 2024, $137.9 million in the first quarter of 2024 and $136.0 million in the second quarter of 2023. The decrease in noninterest expense and adjusted noninterest expense on a linked quarter basis was primarily due to a decline in salaries and employee benefits.

Noninterest Expense

 

$ in millions		2Q24				1Q24				4Q23				3Q23				2Q23
Salaries and employee benefits		$	70.7			$	72.7			$	67.0			$	67.4			$	74.7
Occupancy expense, net			11.9				12.3				11.7				12.0				11.4
Furniture and equipment			5.6				5.1				5.4				5.1				5.1
Deposit insurance			5.4				5.5				4.7				4.7				5.2
Other real estate and foreclosure expense			0.1				0.2				0.2				0.2				0.3
FDIC special assessment			0.3				1.6				10.5				—				—
Other operating expenses			45.4				42.5				48.6				42.6				42.9
Total noninterest expense		$	139.4			$	139.9			$	148.1			$	132.0			$	139.7
Adjusted salaries and employee benefits1		$	70.6			$	72.4			$	66.0			$	65.8			$	71.1
Adjusted other operating expenses1			44.3				42.4				44.9				42.1				43.0
Adjusted noninterest expense1			137.8				137.9				132.7				129.9				136.0
Efficiency ratio			68.38	%			69.41	%			80.46	%			65.11	%			65.18	%
Adjusted efficiency ratio1			65.68				66.42				62.91				61.94				61.29
Full-time equivalent employees			2,961				2,989				3,007				3,005				3,066

Loans and Unfunded Loan Commitments

Total loans at the end of the second quarter of 2024 were $17.2 billion, up $359 million, or 2 percent, compared to $16.8 billion at the end of the second quarter of 2023. Total loans on a linked quarter basis increased $191 million or 1 percent, reflecting continued focus on maintaining disciplined pricing strategies and prudent underwriting standards given market uncertainty regarding near-term economic activity and conditions. Unfunded loan commitments at the end of the second quarter of 2024 were $3.8 billion, compared to $3.9 billion at the end of the first quarter of 2024 and $4.4 billion at the end of the second quarter of 2023. The commercial loan pipeline ended the second quarter of 2024 at $1.0 billion, relatively unchanged from levels at the end of the first quarter 2024. The rate on ready to close commercial loans at the end of the second quarter of 2024 was 8.68 percent, up 30 basis points from the end of the first quarter of 2024.

Loans and Unfunded Loan Commitments

 

$ in millions		2Q24				1Q24				4Q23				3Q23				2Q23
Total loans		$	17,192			$	17,002			$	16,846			$	16,772			$	16,834
Unfunded loan commitments			3,746				3,875				3,880				4,049				4,443

Deposits

Total deposits at the end of the second quarter of 2024 were $21.8 billion, compared to $22.4 billion at the end of the first quarter of 2024 and $22.5 billion at the end of the second quarter of 2023. The decrease in total deposits on a linked quarter basis was primarily attributable to activity related to public funds deposits. Noninterest bearing deposits totaled $4.6 billion at the end of the second quarter of 2024, relatively unchanged from first quarter 2024 levels as deposit migration eased in the second quarter. The loan-to-deposit ratio at the end of the second quarter of 2024 was 79 percent, compared to 76 percent at the end of the first quarter of 2024 and 75 percent at the end of the second quarter of 2023.

Deposits

 

$ in millions		2Q24				1Q24				4Q23				3Q23				2Q23
Noninterest bearing deposits		$	4,624			$	4,698			$	4,801			$	4,991			$	5,265
Interest bearing transaction accounts			10,092				10,316				10,277				9,875				10,203
Time deposits			4,185				4,314				4,266				4,103				3,784
Brokered deposits			2,940				3,025				2,901				3,262				3,237
Total deposits		$	21,841			$	22,353			$	22,245			$	22,231			$	22,489
Noninterest bearing deposits to total deposits			21	%			21	%			22	%			22	%			23	%
Total loans to total deposits			79				76				76				75				75

Asset Quality

Provision for credit losses totaled $11.1 million for the second quarter of 2024, compared to $10.2 million for the first quarter of 2024 and $0.1 million for the second quarter of 2023. Provision for credit losses on loans exceeded net charge-offs by $3.0 million during the second quarter of 2024. The allowance for credit losses on loans at the end of the second quarter of 2024 was $230.4 million, compared to $227.4 million at the end of the first quarter of 2024 and $210.0 million at the end of the second quarter of 2023. The increase in allowance for credit losses on loans on a linked quarter and year-over-year basis reflected continued normalization of the credit environment from historical lows, as well as changes in the macroeconomic conditions and increased activity in the loan portfolio. The allowance for credit losses on loans as a percentage of total loans was 1.34 percent at the end of the second quarter of 2024, unchanged from first quarter 2024 levels and up from 1.25 percent at the end of the second quarter of 2023.

Net charge-offs as a percentage of average loans for the second quarter of 2024 were 19 basis points, unchanged from first quarter 2024 levels and up from the 4 basis points recorded in the second quarter of 2023. Net charge-offs in the second quarter of 2024 included $6.7 million of charge-offs related to the previously identified run-off portfolio, which consists of an acquired asset-based lending portfolio and a small ticket equipment finance portfolio. Net charge-offs from the run-off portfolio accounted for 16 basis points of total net charge-offs recorded during the second quarter of 2024.

Total nonperforming loans at the end of the second quarter of 2024 were $103.4 million, compared to $107.3 million at the end of the first quarter of 2024 and $72.0 million at the end of the second quarter of 2023. The decrease in nonperforming loans on a linked quarter basis was primarily due to the run-off portfolio, which included a $5 million charge-off on a single, previously identified nonperforming asset-based lending credit. The nonperforming loan coverage ratio ended the second quarter of 2024 at 223 percent, compared to 212 percent at the end of the first quarter of 2024 and 292 percent at the end of the second quarter of 2023. Total nonperforming assets as a percentage of total assets were 0.39 percent at the end of the second quarter of 2024, compared to 0.41 percent at the end of the first quarter of 2024 and 0.28 percent at the end of the second quarter of 2023.

Asset Quality

 

$ in millions		2Q24				1Q24				4Q23				3Q23				2Q23
Allowance for credit losses on loans to total loans			1.34	%			1.34	%			1.34	%			1.30	%			1.25	%
Allowance for credit losses on loans to nonperforming loans			223				212				267				267				292
Nonperforming loans to total loans			0.60				0.63				0.50				0.49				0.43
Net charge-off ratio (annualized)			0.19				0.19				0.11				0.28				0.04
Net charge-off ratio YTD (annualized)			0.19				0.19				0.12				0.12				0.04
Total nonperforming loans		$	103.4			$	107.3			$	84.5			$	81.9			$	72.0
Total other nonperforming assets			3.4				5.0				5.8				5.2				4.9
Total nonperforming assets		$	106.8			$	112.3			$	90.3			$	87.1			$	76.9
Reserve for unfunded commitments		$	25.6			$	25.6			$	25.6			$	25.6			$	36.9

Capital

Total stockholders’ equity at the end of the second quarter of 2024 was $3.5 billion, compared to $3.4 billion at the end of the second quarter of 2023. On a linked quarter basis, total stockholders’ equity increased $19.7 million, primarily as a result of a $14.4 million increase in retained earnings. Book value per share at the end of the second quarter of 2024 was $27.56, compared to $27.42 at the end of the first quarter of 2024 and $26.59 at the end of the second quarter of 2023. Tangible book value per share¹ at the end of the second quarter of 2024 was $16.20, compared to $16.02 at the end of the first quarter of 2024 and $15.17 at the end of the second quarter of 2023.

Stockholders’ equity as a percentage of total assets at June 30, 2024, was 12.6 percent, relatively unchanged from first quarter of 2024 levels and up from 12.0 percent reported at the end of the second quarter of 2023. Tangible common equity as a percentage of tangible assets¹ was 7.8 percent, relatively unchanged from first quarter of 2024 levels and up from 7.2 percent reported at the end of the second quarter of 2023. Each of the regulatory capital ratios for Simmons and its lead subsidiary, Simmons Bank, continue to significantly exceed “well-capitalized” guidelines.

Select Capital Ratios

 

		2Q24				1Q24				4Q23				3Q23				2Q23
Stockholders’ equity to total assets			12.6	%			12.6	%			12.5	%			11.9	%			12.0	%
Tangible common equity to tangible assets1			7.8				7.8				7.7				7.1				7.2
Common equity tier 1 (CET1) ratio			12.0				12.0				12.1				12.0				11.9
Tier 1 leverage ratio			9.5				9.4				9.4				9.3				9.2
Tier 1 risk-based capital ratio			12.0				12.0				12.1				12.0				11.9
Total risk-based capital ratio			14.2				14.4				14.4				14.3				14.2

Cash Dividend and Share Repurchase Program

As a result of Simmons’ solid capital position and its ability to organically generate capital, the board of directors declared a quarterly cash dividend on Simmons’ Class A common stock of $0.21 per share, which represents a 5 percent increase from the cash dividend paid for the same time period last year. The cash dividend is payable on October 1, 2024, to shareholders of record as of September 13, 2024. Simmons has paid cash dividends for 115 consecutive years, and 2024 represents the 13th consecutive year that Simmons has increased its dividend. According to research by Dividend Power, Simmons is one of only 26 U.S. publicly traded companies that have paid dividends for 100+ uninterrupted years. Simmons also earned Dividend Power’s designation as a “Dividend Contender,” a title reserved exclusively for companies that have increased their dividend for 10 to 24 consecutive years. As of July 1, 2024, Dividend Power research noted that Simmons is one of only 370 companies out of nearly 6,000 companies listed on the New York Stock Exchange and NASDAQ to achieve this distinction.

During the second quarter of 2024, Simmons did not repurchase shares under its stock repurchase program that was authorized in January 2024 (2024 Program), which replaced its former repurchase program that was authorized in January 2022. Remaining authorization under the 2024 Program as of June 30, 2024, was approximately $175 million. The timing, pricing and amount of any repurchases under the 2024 Program will be determined by Simmons’ management at its discretion based on a variety of factors including, but not limited to, market conditions, trading volume and market price of Simmons’ common stock, Simmons’ capital needs, Simmons’ working capital and investment requirements, other corporate considerations, economic conditions, and legal requirements. The 2024 Program does not obligate Simmons to repurchase any common stock and may be modified, discontinued or suspended at any time without prior notice.

 

(1)	Non-GAAP measurement. See “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below

(2)	FTE – fully taxable equivalent basis using an effective tax rate of 26.135%

Conference Call

Management will conduct a live conference call to review this information beginning at 9:00 a.m. Central Time today, Wednesday, July 24, 2024. Interested persons can listen to this call by dialing toll-free 1-844-481-2779 (North America only) and asking for the Simmons First National Corporation conference call, conference ID 10190204. In addition, the call will be available live or in recorded version on Simmons’ website at simmonsbank.com for at least 60 days following the date of the call.

Simmons First National Corporation

Simmons First National Corporation (NASDAQ: SFNC) is a Mid-South based financial holding company that has paid cash dividends to its shareholders for 115 consecutive years. Its principal subsidiary, Simmons Bank, operates 234 branches in Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas. Founded in 1903, Simmons Bank offers comprehensive financial solutions delivered with a client-centric approach. In 2024, Simmons Bank was recognized by U.S. News & World Report as one of the 2024-2025 Best Companies to Work For in the South and by Forbes as one of America’s Best-In-State Banks 2024 in Tennessee. In 2023, Simmons Bank was recognized by Forbes as one of America’s Best Midsize Employers and among the World’s Best Banks for the fourth consecutive year. Additional information about Simmons Bank can be found on our website at simmonsbank.com, by following @Simmons_Bank on X (formerly Twitter) or by visiting our newsroom.

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 net income (including on a per share diluted basis), pre-tax, pre-provision earnings, net charge-offs, income available to common shareholders, non-interest income, and non-interest expense certain income and expense items attributable to, for example, merger activity (primarily including merger-related expenses), gains and/or losses on sale of branches, net branch right-sizing initiatives, FDIC special assessment charges and gain/loss on the sale of AFS investment securities. The Company has updated its calculation of certain non-GAAP financial measures to exclude the impact of gains or losses on the sale of AFS investment securities in light of the impact of the Company’s strategic AFS investment securities transactions during the fourth quarter of 2023 and has presented past periods on a comparable basis.

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 deposits and/or loans acquired through acquisitions, mortgage warehouse loans, and/or energy loans, or gains and/or losses on the sale of securities. 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 and certain other 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 ongoing businesses, and management uses these non-GAAP financial measures to assess the performance of the Company’s ongoing 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 press 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. Fehlman’s quote, 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, business strategies, lending capacity and lending activity, loan demand, revenue, assets, asset quality, profitability, dividends, net interest margin, non-interest revenue, share repurchase program, acquisition strategy, digital banking initiatives, the Company’s ability to recruit and retain key employees, the adequacy of the allowance for credit losses, and future economic conditions and interest rates. Any forward-looking statement speaks only as of the date of this press release, and Simmons undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this press 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, changes in credit quality, changes in interest rates and related governmental policies, changes in loan demand, changes in deposit flows, changes in real estate values, changes in the assumptions used in making the forward- looking statements, changes in the securities markets generally or the price of Simmons’ common stock specifically, changes in information technology affecting the financial industry, and changes in customer behaviors, including consumer spending, borrowing, and saving habits; general economic and market conditions; market disruptions including pandemics or significant health hazards, severe weather conditions, natural disasters, terrorist activities, financial crises, political crises, war and other military conflicts (including the ongoing military conflicts between Russia and Ukraine and between Israel and Hamas) or other major events, or the prospect of these events; the soundness of other financial institutions and any indirect exposure related to the closings of other financial institutions and their impact on the broader market through other customers, suppliers and partners, or that the conditions which resulted in the liquidity concerns experienced by closed financial institutions may also adversely impact, directly or indirectly, other financial institutions and market participants with which the Company has commercial or deposit relationships; increased inflation; the loss of key employees; increased competition in the markets in which the Company operates and from non-bank financial institutions; increased unemployment; labor shortages; claims, damages, and fines related to litigation or government actions; changes in accounting principles relating to loan loss recognition (current expected credit losses); the Company’s ability to manage and successfully integrate its mergers and acquisitions and to fully realize cost savings and other benefits associated with acquisitions; increased delinquency and foreclosure rates on commercial real estate loans; 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, 2023, 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 on its website, www.sec.gov. In addition, there can be no guarantee that the board of directors (Board) of Simmons will approve a quarterly dividend in future quarters, and the timing, payment, and amount of future dividends (if any) is subject to, among other things, the discretion of the Board and may differ significantly from past dividends.

FOR MORE INFORMATION CONTACT:

Ed Bilek, EVP, Director of Investor and Media Relations

[email protected] or 205.612.3378 (cell)

SFNC

Simmons First National Corporation

Consolidated End of Period Balance Sheets

 

For the Quarters Ended (Unaudited)		Jun 30 2024				Mar 31 2024				Dec 31 2023				Sep 30 2023				Jun 30 2023
($ in thousands)
ASSETS
Cash and noninterest bearing balances due from banks		$	320,021			$	380,324			$	345,258			$	181,822			$	181,268
Interest bearing balances due from banks and federal funds sold			254,312				222,979				268,834				423,826				564,644
Cash and cash equivalents			574,333				603,303				614,092				605,648				745,912
Interest bearing balances due from banks - time			100				100				100				100				545
Investment securities - held-to-maturity			3,685,450				3,707,258				3,726,288				3,742,292				3,756,754
Investment securities - available-for-sale			2,885,904				3,027,558				3,152,153				3,358,421				3,579,758
Mortgage loans held for sale			13,053				11,899				9,373				11,690				10,342
Loans:
Loans			17,192,437				17,001,760				16,845,670				16,771,888				16,833,653
Allowance for credit losses on loans			(230,389	)			(227,367	)			(225,231	)			(218,547	)			(209,966	)
Net loans			16,962,048				16,774,393				16,620,439				16,553,341				16,623,687
Premises and equipment			581,893				576,466				570,678				567,167				562,025
Foreclosed assets and other real estate owned			2,209				3,511				4,073				3,809				3,909
Interest receivable			126,625				122,781				122,430				110,361				103,431
Bank owned life insurance			505,023				503,348				500,559				497,465				494,370
Goodwill			1,320,799				1,320,799				1,320,799				1,320,799				1,320,799
Other intangible assets			104,943				108,795				112,645				116,660				120,758
Other assets			606,692				611,964				592,045				676,572				636,833
Total assets		$	27,369,072			$	27,372,175			$	27,345,674			$	27,564,325			$	27,959,123
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Noninterest bearing transaction accounts		$	4,624,186			$	4,697,539			$	4,800,880			$	4,991,034			$	5,264,962
Interest bearing transaction accounts and savings deposits			10,925,179				11,071,762				10,997,425				10,571,807				10,866,078
Time deposits			6,291,518				6,583,703				6,446,673				6,668,370				6,357,682
Total deposits			21,840,883				22,353,004				22,244,978				22,231,211				22,488,722
Federal funds purchased and securities sold under agreements to repurchase			52,705				58,760				67,969				74,482				102,586
Other borrowings			1,346,378				871,874				972,366				1,347,855				1,373,339
Subordinated notes and debentures			366,217				366,179				366,141				366,103				366,065
Accrued interest and other liabilities			304,020				283,232				267,732				259,119				272,085
Total liabilities			23,910,203				23,933,049				23,919,186				24,278,770				24,602,797
Stockholders’ equity:
Common stock			1,255				1,254				1,252				1,251				1,262
Surplus			2,506,469				2,503,673				2,499,930				2,497,874				2,516,398
Undivided profits			1,356,626				1,342,215				1,329,681				1,330,810				1,308,654
Accumulated other comprehensive (loss) income			(405,481	)			(408,016	)			(404,375	)			(544,380	)			(469,988	)
Total stockholders’ equity			3,458,869				3,439,126				3,426,488				3,285,555				3,356,326
Total liabilities and stockholders’ equity		$	27,369,072			$	27,372,175			$	27,345,674			$	27,564,325			$	27,959,123

 

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SFNC

Simmons First National Corporation

Consolidated Statements of Income - Quarter-to-Date

 

For the Quarters Ended		Jun 30				Mar 31				Dec 31				Sep 30				Jun 30
(Unaudited)		2024				2024				2023				2023				2023
($ in thousands, except per share data)
INTEREST INCOME
Loans (including fees)		$	270,937			$	261,490			$	261,505			$	255,901			$	244,292
Interest bearing balances due from banks and federal funds sold			2,964				3,010				3,115				3,569				4,023
Investment securities			55,050				58,001				58,755				50,638				48,751
Mortgage loans held for sale			194				148				143				178				154
TOTAL INTEREST INCOME			329,145				322,649				323,518				310,286				297,220
INTEREST EXPENSE
Time deposits			73,946				73,241				72,458				68,062				53,879
Other deposits			79,087				78,692				71,412				65,095				54,485
Federal funds purchased and securities
sold under agreements to repurchase			156				189				232				277				318
Other borrowings			15,025				11,649				16,607				16,450				18,612
Subordinated notes and debentures			7,026				6,972				7,181				6,969				6,696
TOTAL INTEREST EXPENSE			175,240				170,743				167,890				156,853				133,990
NET INTEREST INCOME			153,905				151,906				155,628				153,433				163,230
PROVISION FOR CREDIT LOSSES
Provision for credit losses on loans			11,099				10,206				11,225				20,222				5,061
Provision for credit losses on unfunded commitments			—				—				—				(11,300	)			(5,000	)
Provision for credit losses on investment securities - AFS			—				—				(1,196	)			(1,200	)			(1,326	)
Provision for credit losses on investment securities - HTM			—				—				—				—				1,326
TOTAL PROVISION FOR CREDIT LOSSES			11,099				10,206				10,029				7,722				61
NET INTEREST INCOME AFTER PROVISION
FOR CREDIT LOSSES			142,806				141,700				145,599				145,711				163,169
NONINTEREST INCOME
Service charges on deposit accounts			12,252				11,955				12,782				12,429				12,882
Debit and credit card fees			8,162				8,246				7,822				7,712				7,986
Wealth management fees			8,274				7,478				7,679				7,719				7,440
Mortgage lending income			1,973				2,320				1,603				2,157				2,403
Bank owned life insurance income			3,876				3,814				3,094				3,095				2,555
Other service charges and fees (includes insurance income)			2,352				2,199				2,346				2,232				2,262
Gain (loss) on sale of securities			—				—				(20,218	)			—				(391	)
Other income			6,410				7,172				6,866				7,433				9,843
TOTAL NONINTEREST INCOME			43,299				43,184				21,974				42,777				44,980
NONINTEREST EXPENSE
Salaries and employee benefits			70,716				72,653				66,982				67,374				74,723
Occupancy expense, net			11,864				12,258				11,733				12,020				11,410
Furniture and equipment expense			5,623				5,141				5,445				5,117				5,128
Other real estate and foreclosure expense			117				179				189				228				289
Deposit insurance			5,682				7,135				15,220				4,672				5,201
Merger-related costs			—				—				—				5				19
Other operating expenses			45,352				42,513				48,570				42,582				42,926
TOTAL NONINTEREST EXPENSE			139,354				139,879				148,139				131,998				139,696
NET INCOME BEFORE INCOME TAXES			46,751				45,005				19,434				56,490				68,453
Provision for income taxes			5,988				6,134				(4,473	)			9,243				10,139
NET INCOME		$	40,763			$	38,871			$	23,907			$	47,247			$	58,314
BASIC EARNINGS PER SHARE		$	0.32			$	0.31			$	0.19			$	0.38			$	0.46
DILUTED EARNINGS PER SHARE		$	0.32			$	0.31			$	0.19			$	0.37			$	0.46

 

Page 2

SFNC

Simmons First National Corporation

Consolidated Risk-Based Capital

 

For the Quarters Ended		Jun 30				Mar 31				Dec 31				Sep 30				Jun 30
(Unaudited)		2024				2024				2023				2023				2023
($ in thousands)
Tier 1 capital
Stockholders’ equity		$	3,458,869			$	3,439,126			$	3,426,488			$	3,285,555			$	3,356,326
CECL transition provision (1)			30,873				30,873				61,746				61,746				61,746
Disallowed intangible assets, net of deferred tax			(1,391,969	)			(1,394,672	)			(1,398,810	)			(1,402,682	)			(1,406,500	)
Unrealized loss (gain) on AFS securities			405,481				408,016				404,375				544,380				469,988
Total Tier 1 capital			2,503,254				2,483,343				2,493,799				2,488,999				2,481,560
Tier 2 capital
Subordinated notes and debentures			366,217				366,179				366,141				366,103				366,065
Subordinated debt phase out			(132,000	)			(66,000	)			(66,000	)			(66,000	)			(66,000	)
Qualifying allowance for loan losses and reserve for unfunded commitments			217,684				214,660				170,977				165,490				169,409
Total Tier 2 capital			451,901				514,839				471,118				465,593				469,474
Total risk-based capital		$	2,955,155			$	2,998,182			$	2,964,917			$	2,954,592			$	2,951,034
Risk weighted assets		$	20,856,194			$	20,782,094			$	20,599,238			$	20,703,669			$	20,821,075
Adjusted average assets for leverage ratio		$	26,371,545			$	26,312,873			$	26,552,988			$	26,733,658			$	26,896,289
Ratios at end of quarter
Equity to assets			12.64	%			12.56	%			12.53	%			11.92	%			12.00	%
Tangible common equity to tangible assets (2)			7.84	%			7.75	%			7.69	%			7.07	%			7.22	%
Common equity Tier 1 ratio (CET1)			12.00	%			11.95	%			12.11	%			12.02	%			11.92	%
Tier 1 leverage ratio			9.49	%			9.44	%			9.39	%			9.31	%			9.23	%
Tier 1 risk-based capital ratio			12.00	%			11.95	%			12.11	%			12.02	%			11.92	%
Total risk-based capital ratio			14.17	%			14.43	%			14.39	%			14.27	%			14.17	%

 

(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

SFNC

Simmons First National Corporation

Consolidated Investment Securities

 

For the Quarters Ended		Jun 30				Mar 31				Dec 31				Sep 30				Jun 30
(Unaudited)		2024				2024				2023				2023				2023
($ in thousands)
Investment Securities - End of Period
Held-to-Maturity
U.S. Government agencies		$	454,488			$	453,805			$	453,121			$	452,428			$	451,737
Mortgage-backed securities			1,119,741				1,142,352				1,161,694				1,178,324				1,193,118
State and political subdivisions			1,857,409				1,855,642				1,856,674				1,857,652				1,859,022
Other securities			253,812				255,459				254,799				253,888				252,877
Total held-to-maturity (net of credit losses)			3,685,450				3,707,258				3,726,288				3,742,292				3,756,754
Available-for-Sale
U.S. Treasury		$	1,275			$	1,964			$	2,254			$	2,224			$	2,209
U.S. Government agencies			66,563				69,801				72,502				172,759				176,564
Mortgage-backed securities			1,730,842				1,845,364				1,940,307				2,157,092				2,282,328
State and political subdivisions			864,190				874,849				902,793				790,344				885,505
Other securities			223,034				235,580				234,297				236,002				233,152
Total available-for-sale (net of credit losses)			2,885,904				3,027,558				3,152,153				3,358,421				3,579,758
Total investment securities (net of credit losses)		$	6,571,354			$	6,734,816			$	6,878,441			$	7,100,713			$	7,336,512
Fair value - HTM investment securities		$	3,005,524			$	3,049,281			$	3,135,370			$	2,848,211			$	3,094,958

 

Page 4

SFNC

Simmons First National Corporation

Consolidated Loans

 

For the Quarters Ended		Jun 30				Mar 31				Dec 31				Sep 30				Jun 30
(Unaudited)		2024				2024				2023				2023				2023
($ in thousands)
Loan Portfolio - End of Period
Consumer:
Credit cards		$	178,354			$	182,742			$	191,204			$	191,550			$	209,452
Other consumer			130,278				124,531				127,462				112,832				148,333
Total consumer			308,632				307,273				318,666				304,382				357,785
Real Estate:
Construction			3,056,703				3,331,739				3,144,220				3,022,321				2,930,586
Single-family residential			2,666,201				2,624,738				2,641,556				2,657,879				2,633,365
Other commercial real estate			7,760,266				7,508,049				7,552,410				7,565,008				7,546,130
Total real estate			13,483,170				13,464,526				13,338,186				13,245,208				13,110,081
Commercial:
Commercial			2,484,474				2,499,311				2,490,176				2,477,077				2,569,330
Agricultural			285,181				226,642				232,710				296,912				280,541
Total commercial			2,769,655				2,725,953				2,722,886				2,773,989				2,849,871
Other			630,980				504,008				465,932				448,309				515,916
Total loans		$	17,192,437			$	17,001,760			$	16,845,670			$	16,771,888			$	16,833,653

 

Page 5