Simmons First National Corporation (NASDAQ: SFNC) (the “Company” or
“Simmons”) today announced net income of $58.8 million for the
quarter ended June 30, 2020, compared to $55.6 million for the same
period in 2019, an increase of $3.2 million, or 5.7%. Diluted
earnings per share were $0.54, a decrease of $0.04, or 6.9%,
compared to the same period in the prior year. Included in second
quarter 2020 results were $3.0 million in net after-tax
merger-related, early retirement program and branch right-sizing
costs as well as a $1.6 million after-tax gain associated with the
sale of branches.
Excluding the impact of these items, core
earnings were $60.1 million for the quarter ended June 30, 2020,
compared to $65.5 million for the quarter ended June 30, 2019, a
decrease of $5.3 million, or 8.1%. Core diluted earnings per share
were $0.55, a decrease of $0.13, or 19.1%, from the same period in
2019.
Year-to-date net income for the first half of
2020 was $136.0 million, or $1.22 diluted earnings per share,
compared to $103.3 million, or $1.09 diluted earnings per share,
for the same period in 2019. Excluding $2.0 million in net
after-tax merger-related, early retirement program and branch
right-sizing costs and the gains on the sales of branches in south
Texas and Colorado, year-to-date core earnings for 2020 were $134.0
million, an increase of $19.5 million compared to the same period
last year. Core diluted earnings per share for the first half of
2020 were $1.21, equal to the same period in 2019.
“Our associates at Simmons Bank have done an
amazing job of adapting to the changes that have occurred over the
past four months,” said George A. Makris, Jr., chairman and CEO of
Simmons First National Corporation. “We continue to operate in an
uncertain environment, and we will continue to adjust as necessary.
We have consolidated various operations to provide capacity for
continued service to our customers and communities. Our digital
banking options have been very well received by our customers, and
we expect to continue to see the trend toward more self-service. We
need a sustainable plan for the opening of the economy, including
public education across the country. We remain optimistic we will
get one soon.”
Selected Highlights: |
|
2nd Qtr 2020 |
|
|
1st Qtr 2020 |
|
|
2nd Qtr 2019 |
|
Net income |
$ |
58.8 million |
|
$ |
77.2 million |
|
$ |
55.6 million |
|
Diluted earnings per share |
$ |
0.54 |
|
$ |
0.68 |
|
$ |
0.58 |
|
Return on avg assets |
|
1.08 |
% |
|
1.48 |
% |
|
1.28 |
% |
Return on avg common equity |
|
8.21 |
% |
|
10.83 |
% |
|
9.48 |
% |
Return on tangible common equity (1) |
|
14.55 |
% |
|
19.00 |
% |
|
17.40 |
% |
|
|
|
|
Core earnings (2) |
$ |
60.1 million |
|
$ |
73.8 million |
|
$ |
65.5 million |
|
Core diluted earnings per share (2) |
$ |
0.55 |
|
$ |
0.65 |
|
$ |
0.68 |
|
Core return on avg assets (2) |
|
1.11 |
% |
|
1.42 |
% |
|
1.51 |
% |
Core return on avg common equity (2) |
|
8.40 |
% |
|
10.35 |
% |
|
11.16 |
% |
Core return on tangible common equity (1)(2) |
|
14.87 |
% |
|
18.19 |
% |
|
20.36 |
% |
Efficiency ratio (3) |
|
49.12 |
% |
|
56.38 |
% |
|
49.88 |
% |
Pre-tax, pre-provision (PTPP) earnings (2) |
$ |
97.7 million |
|
$ |
84.4 million |
|
$ |
88.8 million |
|
|
|
|
|
|
|
|
|
|
|
- Return on tangible common equity excludes goodwill and other
intangible assets and is a non-GAAP measurement. Please see
“Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP
Financial Measures” below.
- 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.
- Efficiency ratio is noninterest expense before foreclosed
property expense, 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, and is a non-GAAP measurement. Please see
“Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP
Financial Measures” below.
Loans
($ in billions) |
2nd Qtr 2020 |
1st Qtr 2020 |
2nd Qtr 2019 |
Total loans |
$ |
14.61 |
$ |
14.37 |
$ |
13.13 |
|
|
|
|
|
|
|
Total loans were $14.6 billion at June 30, 2020,
an increase of $1.5 billion, or 11.3%, compared to June 30, 2019,
primarily due to The Landrum Company (“Landrum”) merger completed
during the fourth quarter 2019. On a linked-quarter basis (June 30,
2020 compared to March 31, 2020), total loans increased $232.6
million, or 1.6%. During the second quarter of 2020, the Company
had $963.7 million in loan originations under the Paycheck
Protection Program (“PPP”) of the Coronavirus Aid, Relief, and
Economic Security (“CARES”) Act and an increase in agricultural
loans of $26.2 million. These increases were partially offset by
decreases in energy loan lending, commercial real estate and
single-family real estate loan categories of $64.8 million, $149.7
million and $136.5 million, respectively.
Deposits
($ in billions) |
2nd Qtr 2020 |
1st Qtr 2020 |
2nd Qtr 2019 |
Total deposits |
$ |
16.6 |
$ |
15.6 |
$ |
13.5 |
Non-interest bearing deposits |
$ |
4.6 |
$ |
3.6 |
$ |
2.9 |
Interest bearing deposits |
$ |
9.0 |
$ |
8.8 |
$ |
7.3 |
Time deposits |
$ |
3.0 |
$ |
3.2 |
$ |
3.3 |
|
|
|
|
|
|
|
Total deposits were $16.6 billion at June 30,
2020, an increase of $3.1 billion, or 22.9%, since June 30, 2019,
primarily due to the Landrum merger. On a linked-quarter basis,
total deposits increased $1.1 billion, or 6.8%, primarily due to
the $1.0 billion increase in non-interest bearing deposits. This
increase was partially offset by a decrease in brokered funds of
$308.9 million during the second quarter.
Net Interest Income
|
2nd Qtr 2020 |
|
1st Qtr 2020 |
|
4th Qtr 2019 |
|
3rd Qtr 2019 |
|
2nd Qtr 2019 |
|
Loan yield (1) |
4.84 |
% |
5.19 |
% |
5.43 |
% |
5.47 |
% |
5.58 |
% |
Core loan yield (1) (2) |
4.52 |
% |
4.86 |
% |
5.00 |
% |
5.19 |
% |
5.26 |
% |
Security yield (1) |
2.50 |
% |
2.63 |
% |
2.73 |
% |
2.87 |
% |
3.06 |
% |
Cost of interest bearing deposits |
0.59 |
% |
1.03 |
% |
1.22 |
% |
1.40 |
% |
1.37 |
% |
Cost of deposits (3) |
0.44 |
% |
0.80 |
% |
0.94 |
% |
1.09 |
% |
1.07 |
% |
Cost of borrowed funds |
1.84 |
% |
2.06 |
% |
2.30 |
% |
2.52 |
% |
2.50 |
% |
Net interest margin (1) |
3.42 |
% |
3.68 |
% |
3.78 |
% |
3.82 |
% |
3.94 |
% |
Core net interest margin (1) (2) |
3.18 |
% |
3.42 |
% |
3.44 |
% |
3.59 |
% |
3.67 |
% |
|
|
|
|
|
|
|
|
|
|
|
- Fully tax equivalent using an effective tax rate of
26.135%.
- Core loan yield and core net interest margin exclude accretion
and are non-GAAP measurements. Please see “Non-GAAP Financial
Measures” and “Reconciliation of Non-GAAP Financial Measures”
below.
- Includes non-interest bearing deposits.
The Company’s net interest income for the second
quarter of 2020 was $163.7 million, an increase of
$14.3 million, or 9.5%, from the same period of 2019,
primarily due to the 78 basis point decline in the cost of interest
bearing deposits year over year. Included in interest income was
the yield accretion recognized on loans acquired of $11.7 million
and $10.2 million for the second quarters of 2020 and 2019,
respectively.
The loan yield was 4.84% for the quarter ended
June 30, 2020, while the core loan yield, which excludes the
accretion, was 4.52% for the same period. The decrease in the loan
yield during the second quarter of 2020 was primarily driven by the
lower yielding PPP loans originated during the quarter. The PPP
loan yield was approximately 2.33% (including accretion of net
fees), which decreased the loan yield by approximately 10 basis
points.
Net interest margin (FTE) was 3.42% for the
quarter ended June 30, 2020, while the core net interest margin,
which excludes the accretion, was 3.18% for the same period. The
decrease in the net interest margin during the second quarter of
2020 was primarily driven by the additional liquidity and the lower
yielding PPP loans, which decreased the net interest margin by
approximately 25 basis points.
Non-Interest Income
Non-interest income for the second quarter of
2020 was $50.2 million, an increase of $10.3 million compared to
the same period in the previous year. During the second quarter
2020, the Company recognized a $2.2 million gain associated with
the sale of the branches recorded in other income, which the
Company considers a non-core item.
The increase in non-interest income was
primarily due to the increase in mortgage lending income driven by
the current low mortgage interest rate environment. The decrease in
service charges on deposit accounts was primarily attributable to a
lower number of customer transactions, related to the impact of the
COVID-19 pandemic.
Selected Non-Interest Income Items($ in
millions) |
2nd Qtr 2020 |
1st Qtr 2020 |
4th Qtr 2019 |
3rd Qtr 2019 |
2nd Qtr 2019 |
Service charges on deposit accounts |
$ |
8.6 |
$ |
13.3 |
$ |
13.3 |
$ |
10.8 |
$ |
10.6 |
Mortgage lending income |
$ |
12.5 |
$ |
5.0 |
$ |
4.0 |
$ |
4.5 |
$ |
3.7 |
SBA lending income |
$ |
0.2 |
$ |
0.3 |
$ |
0.3 |
$ |
1.0 |
$ |
0.9 |
Debit and credit card fees |
$ |
8.0 |
$ |
7.9 |
$ |
8.9 |
$ |
7.1 |
$ |
7.2 |
Gain on sale of securities |
$ |
0.4 |
$ |
32.1 |
$ |
0.4 |
$ |
7.4 |
$ |
2.8 |
Other income |
$ |
9.8 |
$ |
12.8 |
$ |
7.1 |
$ |
44.7 |
$ |
6.1 |
|
|
|
|
|
|
Core other income(1) |
$ |
7.6 |
$ |
6.9 |
$ |
7.1 |
$ |
44.7 |
$ |
6.1 |
|
|
|
|
|
|
|
|
|
|
|
- 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.
Non-Interest Expense
Non-interest expense for the second quarter of
2020 was $112.6 million, an increase of $1.9 million compared to
the second quarter of 2019. Included in this quarter were $4.0
million of pre-tax non-core items for merger-related, early
retirement program and branch right-sizing costs. Excluding these
expenses, core non-interest expense was $108.6 million for the
second quarter of 2020, an increase of $11.2 million compared to
the same period in 2019, primarily the result of the Landrum merger
and additional software and technology costs related to the
Company’s Next Generation Banking (“NGB”) initiative.
The efficiency ratio for the second quarter of
2020 was 49.12%, compared to 49.88% for the same period in
2019.
Selected Non-Interest Expense Items($ in
millions) |
2nd Qtr 2020 |
1st Qtr 2020 |
4th Qtr 2019 |
3rd Qtr 2019 |
2nd Qtr 2019 |
Salaries and employee benefits |
$ |
57.6 |
$ |
67.9 |
$ |
63.2 |
$ |
52.1 |
$ |
56.1 |
Merger related costs |
$ |
1.8 |
$ |
1.1 |
$ |
24.8 |
$ |
2.6 |
$ |
7.5 |
Other operating expenses |
$ |
34.7 |
$ |
38.8 |
$ |
38.0 |
$ |
37.9 |
$ |
32.9 |
|
|
|
|
|
|
Core salaries and employee benefits(1) |
$ |
57.2 |
$ |
67.9 |
$ |
63.2 |
$ |
51.9 |
$ |
53.2 |
Core merger related costs(1) |
|
- |
|
- |
|
- |
|
- |
|
- |
Core other operating expenses(1) |
$ |
33.0 |
$ |
38.6 |
$ |
38.0 |
$ |
37.8 |
$ |
30.0 |
|
|
|
|
|
|
|
|
|
|
|
- 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.
On a linked-quarter basis, salaries and employee
benefits decreased by $10.3 million, which included the impact of
cost savings from the Landrum merger. The decrease was
primarily driven by the following categories:
- Employee benefits - $3.1 million decrease (payroll taxes,
insurance utilization, and other employee benefits)
- Salaries - $2.3 million decrease
- Incentive based plans - $4.9 million decrease (executive,
lender and retail incentive plans)
On a linked-quarter basis, other operating
expenses decreased $4.1 million. The remaining decrease was
primarily related to cost savings from the Landrum merger and lower
operating expenses due to the impact of COVID-19.
Early in 2020, the Company offered qualifying
associates an early retirement option resulting in $493,000 of
non-core expense during the second quarter. The Company expects
ongoing net annualized savings of approximately $2.9 million.
Management continuously evaluates the Company’s
branch network as part of its analysis of the profitability of the
Company’s operations and the efficiency with which it delivers
banking services to its markets. As a result of this ongoing
evaluation, the Company closed 11 branch locations during June
2020, with estimated net annual cost savings of approximately $2.4
million related to these locations. In addition, the Company
expects to close an additional 23 branch locations and one loan
production office during the fourth quarter of 2020, with an
expected net annual cost savings of approximately $6.8 million.
Asset Quality
|
2nd Qtr 2020 |
1st Qtr 2020 |
4th Qtr 2019 |
3rd Qtr 2019 |
2nd Qtr 2019 |
Allowance for credit losses to total loans |
1.59 |
% |
1.69 |
% |
0.47 |
% |
0.51 |
% |
0.49 |
% |
Allowance for credit losses to non-performing loans |
175 |
% |
154 |
% |
74 |
% |
78 |
% |
60 |
% |
Non-performing loans to total loans |
0.91 |
% |
1.10 |
% |
0.64 |
% |
0.65 |
% |
0.81 |
% |
Net charge-off ratio (annualized) |
1.04 |
% |
0.07 |
% |
0.09 |
% |
0.59 |
% |
0.11 |
% |
Net charge-off ratio YTD (annualized) |
0.56 |
% |
0.07 |
% |
0.24 |
% |
0.30 |
% |
0.15 |
% |
At June 30, 2020, the allowance for credit
losses was $231.6 million. Provision for credit losses for the
second quarter of 2020 was $26.9 million. Included in total loans
was $963.7 million of government guaranteed PPP loans.
Excluding the PPP loans, the allowance for credit losses to total
loans was 1.70%.
Net charge-offs for the second quarter of 2020
were $38.2 million, of which $32.6 million were from loans included
in the energy lending portfolios acquired from Bank SNB and
Southwest Bank in 2017. Of the second quarter charge-offs,
$27.8 million was specifically reserved for and included in the
March 31, 2020 allowance for credit loss. Therefore,
additional provision related to these charges was not required.
Foreclosed Assets and Other Real Estate
Owned
At June 30, 2020, foreclosed assets and other
real estate owned were $14.1 million, decreases of $10.7 million,
or 43.0%, compared to the same period in 2019 and $6.7 million, or
32.2% from March 31, 2020. The composition of these assets is
divided into three types:
($ in millions) |
2nd Qtr 2020 |
1st Qtr 2020 |
4th Qtr 2019 |
3rd Qtr 2019 |
2nd Qtr 2019 |
Closed bank branches and branch sites |
$ |
2.7 |
$ |
8.8 |
$ |
5.7 |
$ |
5.9 |
$ |
6.5 |
Foreclosed assets – acquired |
$ |
9.2 |
$ |
9.2 |
$ |
10.3 |
$ |
10.1 |
$ |
13.3 |
Foreclosed assets – legacy |
$ |
2.2 |
$ |
2.8 |
$ |
3.1 |
$ |
3.6 |
$ |
5.0 |
|
|
|
|
|
|
|
|
|
|
|
Capital
|
2nd Qtr 2020 |
1st Qtr 2020 |
4th Qtr 2019 |
3rd Qtr 2019 |
2nd Qtr 2019 |
Stockholders’ equity to total assets |
13.3 |
% |
13.7 |
% |
14.1 |
% |
14.3 |
% |
13.8 |
% |
Tangible common equity to tangible assets(1) |
8.3 |
% |
8.4 |
% |
9.0 |
% |
9.1 |
% |
8.5 |
% |
Regulatory common equity tier 1 ratio |
11.9 |
% |
11.1 |
% |
10.9 |
% |
10.3 |
% |
9.8 |
% |
Regulatory tier 1 leverage ratio |
8.8 |
% |
9.0 |
% |
9.6 |
% |
9.1 |
% |
8.9 |
% |
Regulatory tier 1 risk-based capital ratio |
11.9 |
% |
11.1 |
% |
10.9 |
% |
10.3 |
% |
9.8 |
% |
Regulatory total risk-based capital ratio |
14.9 |
% |
14.1 |
% |
13.7 |
% |
13.2 |
% |
12.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
- 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.
At June 30, 2020, common stockholders' equity
was $2.9 billion. Book value per share was $26.64 and tangible book
value per share was $15.79 at June 30, 2020. The ratio of
stockholders’ equity to total assets was 13.3% at June 30, 2020
while the tangible common equity to tangible assets was 8.3% at
June 30, 2020. As of June 30, 2020, PPP loans totaled $963.7
million, which are 100% federally guaranteed and have a zero
percent risk-weight for regulatory capital ratios. Excluding
PPP loans from total assets, equity to total assets was 13.9%,
tangible common equity to tangible assets was 8.7% and the
regulatory tier 1 leverage ratio was 9.1%.
No shares have been repurchased under the
Company’s stock repurchase program since March 31, 2020. Market
conditions and the Company’s capital needs will drive the decisions
regarding additional, future stock repurchases.
Digital Banking
Since the end of February 2020, the Company has
added over 38,000 new digital banking users, a 23% increase.
More than 78% of deposit transaction accounts are now enrolled in
digital banking. For the first time, in March, the Company
processed more weekly transactions using the digital channels than
at the branches. During May 2020, the Company completed the
conversion of all consumer customers to the new online
platform. All consumer customers are now on the same online
and mobile platforms, including acquired institutions.
COVID-19 Impact
Through June 30, 2020, the Company originated
over 7,800 PPP loans with an average balance of $123,000 per loan.
Approximately 93% of the PPP loans had a balance less than
$350,000.
PPP Loansas of June 30, 2020 |
# ofLoans |
|
Balance($ in millions) |
|
Loan balance less than $350,000 |
7,286 |
93 |
% |
$ |
392.3 |
41 |
% |
Loan balance $350,000 or less than $2 million |
478 |
6 |
% |
$ |
355.4 |
37 |
% |
Loan balance $2 million to $10 million |
62 |
1 |
% |
$ |
216.0 |
22 |
% |
Total |
7,826 |
100 |
% |
$ |
963.7 |
100 |
% |
|
|
|
|
|
|
|
|
In March and in response to the pandemic, the
Company announced temporary closure of 52 branches and has been
focusing on the enhanced digital banking experience. While
the majority of these branches have been reopened, the Company has
continued to review its branch network.
Simmons First National
Corporation
Simmons First National Corporation is a
financial holding company headquartered in Pine Bluff, Arkansas,
with total consolidated assets of approximately $21.9 billion as of
June 30, 2020, conducting financial operations in Arkansas,
Illinois, Kansas, Missouri, Oklahoma, Tennessee and Texas. The
Company, through its subsidiaries, offers comprehensive financial
solutions delivered with a client-centric approach. The Company’s
common stock is listed on the NASDAQ Global Select Market under the
symbol “SFNC.”
Conference Call
Management will conduct a live conference call
to review this information beginning at 9:00 a.m. CDT today,
Tuesday, July 21, 2020. 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 9275743. In addition, the call
will be available live or in recorded version on the Company’s
website at www.simmonsbank.com.
Non-GAAP Financial Measures
This press release contains financial
information determined by methods other than in accordance with
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 certain
expenses related to significant non-core activities, including
merger-related expenses, gain on sale of branches, early retirement
program expenses and branch right-sizing expenses. In addition, the
Company also presents certain figures based on tangible common
stockholders’ equity and tangible book value, which exclude
goodwill and other intangible assets. The Company further presents
certain figures that are exclusive of PPP loans. The
Company’s management believes that these non-GAAP financial
measures are useful to investors because they 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 normalizing 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. 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
Some of the 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, revenue,
assets, asset quality, profitability, net interest margin,
non-interest revenue, share repurchase program, acquisition
strategy, NGB and other digital banking initiatives, the Company’s
ability to recruit and retain key employees, the benefits
associated with the Company’s early retirement program and
completed and future branch closures, the adequacy of the allowance
for credit losses, and the ability of the Company to manage the
impact of the COVID-19 pandemic. 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 in response to COVID-19, the severity and
duration of the pandemic, including whether there is a “second
wave” as a result of the loosening of governmental restrictions,
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; potential 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
(including, among other things, the CARES Act); changes in
accounting principles relating to loan loss recognition (current
expected credit losses, or CECL); 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; and other factors, many of which are beyond the control
of the Company, could cause actual results to differ materially
from those contemplated by the forward-looking statements.
Additional information on factors that might affect the Company’s
financial results is included in its Form 10-K for the year ended
December 31, 2019, which has been filed with, and is available
from, the U.S. Securities and Exchange Commission.
FOR MORE INFORMATION CONTACT:Stephen C. MassanelliEVP, Chief
Administrative Officer and Investor Relations OfficerSimmons First
National Corporationsteve.massanelli@simmonsbank.com
Simmons First National Corporation |
|
|
|
|
SFNC |
Consolidated End of Period Balance Sheets |
|
|
|
|
|
For the Quarters Ended |
|
Jun 30 |
|
|
Mar 31 |
|
|
Dec 31 |
|
|
Sep 30 |
|
|
Jun 30 |
|
(Unaudited) |
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
($
in thousands) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
Cash and non-interest bearing balances due from banks |
$ |
234,998 |
|
$ |
244,123 |
|
$ |
277,208 |
|
$ |
161,440 |
|
$ |
145,491 |
|
Interest
bearing balances due from banks and federal funds sold |
|
2,310,162 |
|
|
1,493,076 |
|
|
719,415 |
|
|
368,530 |
|
|
509,765 |
|
Cash and cash equivalents |
|
2,545,160 |
|
|
1,737,199 |
|
|
996,623 |
|
|
529,970 |
|
|
655,256 |
|
Interest
bearing balances due from banks - time |
|
4,561 |
|
|
4,309 |
|
|
4,554 |
|
|
5,041 |
|
|
5,041 |
|
Investment
securities - held-to-maturity |
|
51,720 |
|
|
53,968 |
|
|
40,927 |
|
|
42,237 |
|
|
47,455 |
|
Investment
securities - available-for-sale |
|
2,496,896 |
|
|
2,466,640 |
|
|
3,288,343 |
|
|
2,210,931 |
|
|
2,191,573 |
|
Mortgage
loans held for sale |
|
120,034 |
|
|
49,984 |
|
|
58,102 |
|
|
50,099 |
|
|
34,999 |
|
Other assets
held for sale |
|
399 |
|
|
115,315 |
|
|
260,332 |
|
|
383 |
|
|
397 |
|
Loans: |
|
|
|
|
|
Loans |
|
14,606,900 |
|
|
14,374,277 |
|
|
14,425,704 |
|
|
13,003,549 |
|
|
13,128,125 |
|
Allowance for credit losses on loans |
|
(231,643 |
) |
|
(243,195 |
) |
|
(68,244 |
) |
|
(66,590 |
) |
|
(64,179 |
) |
Net loans |
|
14,375,257 |
|
|
14,131,082 |
|
|
14,357,460 |
|
|
12,936,959 |
|
|
13,063,946 |
|
Premises and
equipment |
|
478,896 |
|
|
484,990 |
|
|
492,384 |
|
|
378,678 |
|
|
370,551 |
|
Premises
held for sale |
|
4,576 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Foreclosed
assets and other real estate owned |
|
14,111 |
|
|
20,805 |
|
|
19,121 |
|
|
19,576 |
|
|
24,761 |
|
Interest
receivable |
|
79,772 |
|
|
57,039 |
|
|
62,707 |
|
|
53,966 |
|
|
54,781 |
|
Bank owned
life insurance |
|
256,643 |
|
|
255,197 |
|
|
254,152 |
|
|
234,655 |
|
|
233,345 |
|
Goodwill |
|
1,064,765 |
|
|
1,064,978 |
|
|
1,055,520 |
|
|
926,648 |
|
|
926,450 |
|
Other
intangible assets |
|
117,823 |
|
|
121,673 |
|
|
127,340 |
|
|
101,149 |
|
|
104,096 |
|
Other
assets |
|
293,071 |
|
|
278,173 |
|
|
241,578 |
|
|
268,219 |
|
|
224,784 |
|
Total assets |
$ |
21,903,684 |
|
$ |
20,841,352 |
|
$ |
21,259,143 |
|
$ |
17,758,511 |
|
$ |
17,937,435 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Non-interest bearing transaction accounts |
$ |
4,608,098 |
|
$ |
3,572,244 |
|
$ |
3,741,093 |
|
$ |
3,044,330 |
|
$ |
2,954,032 |
|
Interest bearing transaction accounts and savings deposits |
|
8,978,045 |
|
|
8,840,678 |
|
|
9,090,878 |
|
|
7,337,571 |
|
|
7,258,005 |
|
Time deposits |
|
3,029,975 |
|
|
3,146,811 |
|
|
3,276,969 |
|
|
3,086,108 |
|
|
3,304,176 |
|
Total
deposits |
|
16,616,118 |
|
|
15,559,733 |
|
|
16,108,940 |
|
|
13,468,009 |
|
|
13,516,213 |
|
Federal funds purchased and securities sold under agreements to
repurchase |
|
387,025 |
|
|
377,859 |
|
|
150,145 |
|
|
116,536 |
|
|
130,470 |
|
Other
borrowings |
|
1,393,689 |
|
|
1,396,829 |
|
|
1,297,599 |
|
|
1,098,395 |
|
|
1,324,094 |
|
Subordinated
notes and debentures |
|
382,604 |
|
|
388,396 |
|
|
388,260 |
|
|
354,223 |
|
|
354,132 |
|
Other
liabilities held for sale |
|
- |
|
|
58,405 |
|
|
159,853 |
|
|
- |
|
|
162 |
|
Accrued
interest and other liabilities |
|
219,545 |
|
|
214,730 |
|
|
165,422 |
|
|
174,277 |
|
|
142,851 |
|
Total liabilities |
|
18,998,981 |
|
|
17,995,952 |
|
|
18,270,219 |
|
|
15,211,440 |
|
|
15,467,922 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
767 |
|
|
767 |
|
|
767 |
|
|
- |
|
|
- |
|
Common stock |
|
1,090 |
|
|
1,090 |
|
|
1,136 |
|
|
966 |
|
|
966 |
|
Surplus |
|
2,029,383 |
|
|
2,026,420 |
|
|
2,117,282 |
|
|
1,708,058 |
|
|
1,705,262 |
|
Undivided profits |
|
819,153 |
|
|
778,893 |
|
|
848,848 |
|
|
814,338 |
|
|
747,969 |
|
Accumulated other comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized accretion (depreciation) on AFS securities |
|
54,310 |
|
|
38,230 |
|
|
20,891 |
|
|
23,709 |
|
|
15,316 |
|
Total stockholders' equity |
|
2,904,703 |
|
|
2,845,400 |
|
|
2,988,924 |
|
|
2,547,071 |
|
|
2,469,513 |
|
Total liabilities and stockholders' equity |
$ |
21,903,684 |
|
$ |
20,841,352 |
|
$ |
21,259,143 |
|
$ |
17,758,511 |
|
$ |
17,937,435 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Simmons First National Corporation |
|
|
|
|
SFNC |
Consolidated Statements of Income -
Quarter-to-Date |
|
|
|
|
For the Quarters Ended |
|
Jun 30 |
|
Mar 31 |
|
Dec 31 |
|
|
Sep 30 |
|
Jun 30 |
(Unaudited) |
|
2020 |
|
2020 |
|
2019 |
|
|
2019 |
|
2019 |
($
in thousands, except per share data) |
|
|
|
|
|
INTEREST INCOME |
|
|
|
|
|
Loans |
$ |
176,910 |
$ |
187,566 |
$ |
193,402 |
|
$ |
179,971 |
$ |
178,122 |
Interest bearing balances due from banks and federal funds
sold |
|
603 |
|
2,441 |
|
2,625 |
|
|
1,586 |
|
1,121 |
Investment securities |
|
13,473 |
|
18,943 |
|
16,962 |
|
|
14,467 |
|
15,666 |
Mortgage loans held for sale |
|
668 |
|
281 |
|
402 |
|
|
382 |
|
332 |
TOTAL INTEREST INCOME |
|
191,654 |
|
209,231 |
|
213,391 |
|
|
196,406 |
|
195,241 |
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
Time deposits |
|
10,803 |
|
13,323 |
|
16,198 |
|
|
15,573 |
|
14,606 |
Other deposits |
|
7,203 |
|
17,954 |
|
20,331 |
|
|
21,363 |
|
20,190 |
Federal funds purchased and securities sold under agreements to
repurchase |
|
337 |
|
759 |
|
368 |
|
|
249 |
|
257 |
Other borrowings |
|
4,963 |
|
4,877 |
|
4,615 |
|
|
5,381 |
|
6,219 |
Subordinated notes and debentures |
|
4,667 |
|
4,835 |
|
4,813 |
|
|
4,576 |
|
4,541 |
TOTAL INTEREST EXPENSE |
|
27,973 |
|
41,748 |
|
46,325 |
|
|
47,142 |
|
45,813 |
NET
INTEREST INCOME |
|
163,681 |
|
167,483 |
|
167,066 |
|
|
149,264 |
|
149,428 |
Provision for credit losses |
|
26,915 |
|
26,134 |
|
4,903 |
|
|
21,973 |
|
7,079 |
NET
INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES |
|
136,766 |
|
141,349 |
|
162,163 |
|
|
127,291 |
|
142,349 |
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
Trust income |
|
7,253 |
|
7,151 |
|
7,430 |
|
|
6,108 |
|
5,794 |
Service charges on deposit accounts |
|
8,570 |
|
13,328 |
|
13,332 |
|
|
10,825 |
|
10,557 |
Other service charges and fees |
|
1,489 |
|
1,588 |
|
1,915 |
|
|
1,308 |
|
1,312 |
Mortgage lending income |
|
12,459 |
|
5,046 |
|
4,029 |
|
|
4,509 |
|
3,656 |
SBA lending income |
|
245 |
|
296 |
|
321 |
|
|
956 |
|
895 |
Investment banking income |
|
571 |
|
877 |
|
822 |
|
|
513 |
|
360 |
Debit and credit card fees |
|
7,996 |
|
7,914 |
|
8,920 |
|
|
7,059 |
|
7,212 |
Bank owned life insurance income |
|
1,445 |
|
1,298 |
|
1,411 |
|
|
1,302 |
|
1,260 |
Gain on sale of securities, net |
|
390 |
|
32,095 |
|
377 |
|
|
7,374 |
|
2,823 |
Other income |
|
9,809 |
|
12,801 |
|
7,073 |
|
|
44,721 |
|
6,065 |
TOTAL NON-INTEREST INCOME |
|
50,227 |
|
82,394 |
|
45,630 |
|
|
84,675 |
|
39,934 |
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
57,644 |
|
67,924 |
|
63,235 |
|
|
52,065 |
|
56,128 |
Occupancy expense, net |
|
9,217 |
|
9,510 |
|
9,272 |
|
|
8,342 |
|
6,919 |
Furniture and equipment expense |
|
6,144 |
|
5,723 |
|
5,758 |
|
|
4,898 |
|
4,206 |
Other real estate and foreclosure expense |
|
274 |
|
325 |
|
1,089 |
|
|
1,125 |
|
591 |
Deposit insurance |
|
2,838 |
|
2,475 |
|
(134 |
) |
|
- |
|
2,510 |
Merger-related costs |
|
1,830 |
|
1,068 |
|
24,831 |
|
|
2,556 |
|
7,522 |
Other operating expenses |
|
34,651 |
|
38,788 |
|
38,044 |
|
|
37,879 |
|
32,867 |
TOTAL NON-INTEREST EXPENSE |
|
112,598 |
|
125,813 |
|
142,095 |
|
|
106,865 |
|
110,743 |
NET
INCOME BEFORE INCOME TAXES |
|
74,395 |
|
97,930 |
|
65,698 |
|
|
105,101 |
|
71,540 |
Provision for income taxes |
|
15,593 |
|
20,694 |
|
12,976 |
|
|
23,275 |
|
15,616 |
NET
INCOME |
|
58,802 |
|
77,236 |
|
52,722 |
|
|
81,826 |
|
55,924 |
Preferred stock dividends |
|
13 |
|
13 |
|
13 |
|
|
- |
|
326 |
NET
INCOME AVAILABLE TO COMMON STOCKHOLDERS |
$ |
58,789 |
$ |
77,223 |
$ |
52,709 |
|
$ |
81,826 |
$ |
55,598 |
BASIC EARNINGS PER SHARE |
$ |
0.54 |
$ |
0.68 |
$ |
0.49 |
|
$ |
0.85 |
$ |
0.58 |
DILUTED EARNINGS PER SHARE |
$ |
0.54 |
$ |
0.68 |
$ |
0.49 |
|
$ |
0.84 |
$ |
0.58 |
|
|
|
|
|
|
|
|
|
|
|
|
Simmons First National Corporation |
|
|
|
SFNC |
Consolidated Risk-Based Capital |
|
|
|
|
|
For
the Quarters Ended |
Jun
30 |
Mar
31 |
Dec
31 |
Sep
30 |
Jun
30 |
(Unaudited) |
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
($
in thousands) |
|
|
|
|
|
Tier
1 capital |
|
|
|
|
|
Stockholders' equity |
$ |
2,904,703 |
|
$ |
2,845,400 |
|
$ |
2,988,924 |
|
$ |
2,547,071 |
|
$ |
2,469,513 |
|
CECL transition provision (1) |
|
130,480 |
|
|
134,558 |
|
|
- |
|
|
- |
|
|
- |
|
Disallowed intangible assets, net of deferred tax |
|
(1,160,385 |
) |
|
(1,164,038 |
) |
|
(1,160,079 |
) |
|
(1,013,309 |
) |
|
(1,001,676 |
) |
Unrealized (gain) loss on AFS securities |
|
(54,310 |
) |
|
(38,230 |
) |
|
(20,891 |
) |
|
(23,709 |
) |
|
(15,316 |
) |
Total Tier 1 capital |
|
1,820,488 |
|
|
1,777,690 |
|
|
1,807,954 |
|
|
1,510,053 |
|
|
1,452,521 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier
2 capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust preferred securities and subordinated debt |
|
382,604 |
|
|
388,396 |
|
|
388,260 |
|
|
354,223 |
|
|
354,132 |
|
Qualifying allowance for loan losses and reserve for unfunded
commitments |
|
83,780 |
|
|
96,015 |
|
|
76,644 |
|
|
74,455 |
|
|
72,044 |
|
Total Tier 2 capital |
|
466,384 |
|
|
484,411 |
|
|
464,904 |
|
|
428,678 |
|
|
426,176 |
|
Total risk-based capital |
$ |
2,286,872 |
|
$ |
2,262,101 |
|
$ |
2,272,858 |
|
$ |
1,938,731 |
|
$ |
1,878,697 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk
weighted assets |
$ |
15,362,175 |
|
$ |
16,012,233 |
|
$ |
16,554,081 |
|
$ |
14,725,571 |
|
$ |
14,825,253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
average assets for leverage ratio |
$ |
20,742,824 |
|
$ |
19,832,219 |
|
$ |
18,852,798 |
|
$ |
16,681,527 |
|
$ |
16,382,520 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios at end of quarter |
|
|
|
|
|
Equity to assets |
|
13.26 |
% |
|
13.65 |
% |
|
14.06 |
% |
|
14.34 |
% |
|
13.77 |
% |
Tangible common equity to tangible assets (2) |
|
8.31 |
% |
|
8.44 |
% |
|
8.99 |
% |
|
9.08 |
% |
|
8.51 |
% |
Common equity Tier 1 ratio (CET1) |
|
11.85 |
% |
|
11.10 |
% |
|
10.92 |
% |
|
10.25 |
% |
|
9.80 |
% |
Tier 1 leverage ratio |
|
8.78 |
% |
|
8.96 |
% |
|
9.59 |
% |
|
9.05 |
% |
|
8.87 |
% |
Tier 1 risk-based capital ratio |
|
11.85 |
% |
|
11.10 |
% |
|
10.92 |
% |
|
10.25 |
% |
|
9.80 |
% |
Total risk-based capital ratio |
|
14.89 |
% |
|
14.13 |
% |
|
13.73 |
% |
|
13.17 |
% |
|
12.67 |
% |
|
|
|
|
|
|
(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. |
|
|
|
|
|
|
Simmons First National Corporation |
|
|
|
SFNC |
Consolidated Investment Securities |
|
|
|
|
|
For
the Quarters Ended |
Jun
30 |
Mar
31 |
Dec
31 |
Sep
30 |
Jun
30 |
(Unaudited) |
2020 |
2020 |
2019 |
2019 |
2019 |
($
in thousands) |
|
|
|
|
|
Investment Securities - End of Period |
|
|
|
|
|
Held-to-Maturity |
|
|
|
|
|
U.S. Government agencies |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
999 |
Mortgage-backed securities |
|
25,980 |
|
27,121 |
|
10,796 |
|
11,549 |
|
12,225 |
State and political subdivisions |
|
24,777 |
|
25,985 |
|
27,082 |
|
28,692 |
|
32,236 |
Other securities |
|
963 |
|
862 |
|
3,049 |
|
1,996 |
|
1,995 |
Total held-to-maturity (net of credit losses) |
|
51,720 |
|
53,968 |
|
40,927 |
|
42,237 |
|
47,455 |
Available-for-Sale |
|
|
|
|
|
|
|
|
|
|
U.S. Treasury |
$ |
- |
$ |
424,989 |
$ |
449,729 |
$ |
- |
$ |
- |
U.S. Government agencies |
|
210,921 |
|
161,289 |
|
194,249 |
|
178,139 |
|
197,656 |
Mortgage-backed securities |
|
1,154,086 |
|
1,179,837 |
|
1,742,945 |
|
1,337,794 |
|
1,345,760 |
State and political subdivisions |
|
1,054,068 |
|
678,243 |
|
880,524 |
|
681,202 |
|
636,558 |
Other securities |
|
77,821 |
|
22,282 |
|
20,896 |
|
13,796 |
|
11,599 |
Total available-for-sale (net of credit losses) |
|
2,496,896 |
|
2,466,640 |
|
3,288,343 |
|
2,210,931 |
|
2,191,573 |
Total investment securities (net of credit losses) |
$ |
2,548,616 |
$ |
2,520,608 |
$ |
3,329,270 |
$ |
2,253,168 |
$ |
2,239,028 |
Fair value - HTM investment securities |
$ |
53,751 |
$ |
55,714 |
$ |
41,855 |
$ |
43,302 |
$ |
48,640 |
|
|
|
|
|
|
|
|
|
|
|
Investment Securities - QTD Average |
|
|
|
|
|
|
|
|
|
|
Taxable securities |
$ |
1,642,083 |
$ |
2,324,188 |
$ |
1,940,755 |
$ |
1,561,308 |
$ |
1,641,986 |
Tax exempt securities |
|
866,944 |
|
900,223 |
|
825,000 |
|
681,505 |
|
624,898 |
Total investment securities - QTD average |
$ |
2,509,027 |
$ |
3,224,411 |
$ |
2,765,755 |
$ |
2,242,813 |
$ |
2,266,884 |
|
|
|
|
|
|
Simmons First National Corporation |
|
|
|
SFNC |
Consolidated Loans |
|
|
|
|
|
For
the Quarters Ended |
Jun
30 |
Mar
31 |
Dec
31 |
Sep
30 |
Jun
30 |
(Unaudited) |
2020 |
2020 |
2019 |
2019 |
2019 |
($
in thousands) |
|
|
|
|
|
Loan
Portfolio - End of Period |
|
|
|
|
|
Consumer |
|
|
|
|
|
Credit cards |
$ |
184,348 |
$ |
188,596 |
$ |
204,802 |
$ |
195,083 |
$ |
187,919 |
Other consumer |
|
214,024 |
|
267,870 |
|
249,195 |
|
215,283 |
|
216,144 |
Total consumer |
|
398,372 |
|
456,466 |
|
453,997 |
|
410,366 |
|
404,063 |
Real
Estate |
|
|
|
|
|
Construction |
|
2,010,256 |
|
2,024,118 |
|
2,248,673 |
|
2,081,595 |
|
1,975,179 |
Single-family residential |
|
2,207,087 |
|
2,343,543 |
|
2,414,753 |
|
1,951,842 |
|
1,998,655 |
Other commercial real estate |
|
6,316,444 |
|
6,466,104 |
|
6,358,514 |
|
5,758,511 |
|
5,983,488 |
Total real estate |
|
10,533,787 |
|
10,833,765 |
|
11,021,940 |
|
9,791,948 |
|
9,957,322 |
Commercial |
|
|
|
|
|
Commercial |
|
3,038,216 |
|
2,314,472 |
|
2,451,119 |
|
2,215,539 |
|
2,249,078 |
Agricultural |
|
217,715 |
|
191,535 |
|
191,525 |
|
214,610 |
|
192,988 |
Total commercial |
|
3,255,931 |
|
2,506,007 |
|
2,642,644 |
|
2,430,149 |
|
2,442,066 |
Other |
|
418,810 |
|
578,039 |
|
307,123 |
|
371,086 |
|
324,674 |
Total Loans |
$ |
14,606,900 |
$ |
14,374,277 |
$ |
14,425,704 |
$ |
13,003,549 |
$ |
13,128,125 |
|
|
|
|
|
|
Simmons First National Corporation |
|
|
|
SFNC |
Consolidated Allowance and Asset Quality |
|
|
|
|
|
For
the Quarters Ended |
Jun
30 |
Mar
31 |
Dec
31 |
Sep
30 |
Jun
30 |
(Unaudited) |
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
($
in thousands) |
|
|
|
|
|
Allowance for Credit Losses on Loans |
|
|
|
|
|
Beginning
balance, prior to adoption of ASC 326 |
|
$ |
68,244 |
|
$ |
66,590 |
|
$ |
64,179 |
|
$ |
60,555 |
|
Impact of adopting ASC 326 (1) |
|
|
151,377 |
|
|
|
|
|
|
|
|
|
|
Beginning balance, after adoption of ASC 326 |
$ |
243,195 |
|
$ |
219,621 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
charged off |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
1,053 |
|
|
1,441 |
|
|
1,287 |
|
|
1,117 |
|
|
1,039 |
|
Other consumer |
|
592 |
|
|
1,379 |
|
|
1,425 |
|
|
1,065 |
|
|
964 |
|
Real estate |
|
1,824 |
|
|
396 |
|
|
892 |
|
|
1,367 |
|
|
1,216 |
|
Commercial |
|
35,687 |
|
|
523 |
|
|
459 |
|
|
17,778 |
|
|
1,963 |
|
Total loans charged off |
|
39,156 |
|
|
3,739 |
|
|
4,063 |
|
|
21,327 |
|
|
5,182 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recoveries
of loans previously charged off |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
272 |
|
|
225 |
|
|
287 |
|
|
223 |
|
|
271 |
|
Other consumer |
|
301 |
|
|
443 |
|
|
304 |
|
|
1,422 |
|
|
331 |
|
Real estate |
|
253 |
|
|
101 |
|
|
146 |
|
|
55 |
|
|
158 |
|
Commercial |
|
98 |
|
|
347 |
|
|
77 |
|
|
65 |
|
|
967 |
|
Total recoveries |
|
924 |
|
|
1,116 |
|
|
814 |
|
|
1,765 |
|
|
1,727 |
|
Net loans charged off |
|
38,232 |
|
|
2,623 |
|
|
3,249 |
|
|
19,562 |
|
|
3,455 |
|
Provision
for credit losses on loans |
|
26,678 |
|
|
26,197 |
|
|
4,903 |
|
|
21,973 |
|
|
7,079 |
|
Balance, end
of quarter |
$ |
231,641 |
|
$ |
243,195 |
|
$ |
68,244 |
|
$ |
66,590 |
|
$ |
64,179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets |
|
|
|
|
|
Non-performing loans |
|
|
|
|
|
Nonaccrual loans |
$ |
131,888 |
|
$ |
156,746 |
|
$ |
91,723 |
|
$ |
84,660 |
|
$ |
106,670 |
|
Loans past due 90 days or more |
|
537 |
|
|
1,305 |
|
|
855 |
|
|
177 |
|
|
277 |
|
Total non-performing loans |
|
132,425 |
|
|
158,051 |
|
|
92,578 |
|
|
84,837 |
|
|
106,947 |
|
Other
non-performing assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreclosed assets and other real estate owned |
|
14,111 |
|
|
20,805 |
|
|
19,121 |
|
|
19,576 |
|
|
24,761 |
|
Other non-performing assets |
|
2,008 |
|
|
2,169 |
|
|
1,964 |
|
|
540 |
|
|
613 |
|
Total other non-performing assets |
|
16,119 |
|
|
22,974 |
|
|
21,085 |
|
|
20,116 |
|
|
25,374 |
|
Total non-performing assets |
$ |
148,544 |
|
$ |
181,025 |
|
$ |
113,663 |
|
$ |
104,953 |
|
$ |
132,321 |
|
Performing
TDRs (troubled debt restructurings) |
$ |
3,960 |
|
$ |
4,110 |
|
$ |
4,411 |
|
$ |
6,519 |
|
$ |
6,246 |
|
|
|
|
|
|
|
Ratios |
|
|
|
|
|
Allowance
for credit losses to total loans |
|
1.59 |
% |
|
1.69 |
% |
|
0.47 |
% |
|
0.51 |
% |
|
0.49 |
% |
Allowance
for credit losses to non-performing loans |
|
175 |
% |
|
154 |
% |
|
74 |
% |
|
78 |
% |
|
60 |
% |
Non-performing loans to total loans |
|
0.91 |
% |
|
1.10 |
% |
|
0.64 |
% |
|
0.65 |
% |
|
0.81 |
% |
Non-performing assets (including performing TDRs) to total
assets |
|
0.70 |
% |
|
0.89 |
% |
|
0.56 |
% |
|
0.63 |
% |
|
0.77 |
% |
Non-performing assets to total assets |
|
0.68 |
% |
|
0.87 |
% |
|
0.53 |
% |
|
0.59 |
% |
|
0.74 |
% |
Annualized
net charge offs to total loans |
|
1.04 |
% |
|
0.07 |
% |
|
0.09 |
% |
|
0.59 |
% |
|
0.11 |
% |
Annualized
net credit card charge offs to total credit card loans |
|
1.67 |
% |
|
2.29 |
% |
|
1.99 |
% |
|
1.82 |
% |
|
1.63 |
% |
|
|
|
|
|
|
(1) The Company adopted ASC 326.effective January 1, 2020. |
|
|
|
|
. |
|
|
|
|
|
Simmons First National Corporation |
|
|
|
|
|
|
|
|
|
SFNC |
Consolidated -
Average Balance Sheet and Net Interest Income
Analysis |
|
|
|
|
|
|
For
the Quarters Ended |
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended Jun 2020 |
|
Three Months Ended Mar 2020 |
|
Three Months Ended Jun 2019 |
($ in thousands) |
Average Balance |
Income/ Expense |
Yield/ Rate |
|
Average Balance |
Income/ Expense |
Yield/ Rate |
|
Average Balance |
Income/ Expense |
Yield/ Rate |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
Interest bearing balances due from banks and federal funds
sold |
$ |
2,190,878 |
$ |
603 |
0.11 |
% |
|
$ |
764,639 |
$ |
2,441 |
1.28 |
% |
|
$ |
276,370 |
$ |
1,121 |
1.63 |
% |
Investment securities - taxable |
|
1,642,083 |
|
7,131 |
1.75 |
% |
|
|
2,324,188 |
|
12,752 |
2.21 |
% |
|
|
1,641,986 |
|
11,066 |
2.70 |
% |
Investment securities - non-taxable (FTE) |
|
866,944 |
|
8,434 |
3.91 |
% |
|
|
900,223 |
|
8,315 |
3.71 |
% |
|
|
624,898 |
|
6,209 |
3.99 |
% |
Mortgage loans held for sale |
|
86,264 |
|
668 |
3.11 |
% |
|
|
43,588 |
|
281 |
2.59 |
% |
|
|
32,030 |
|
332 |
4.16 |
% |
Loans (FTE) |
|
14,731,306 |
|
177,168 |
4.84 |
% |
|
|
14,548,853 |
|
187,747 |
5.19 |
% |
|
|
12,814,386 |
|
178,219 |
5.58 |
% |
Total interest earning assets (FTE) |
|
19,517,475 |
|
194,004 |
4.00 |
% |
|
|
18,581,491 |
|
211,536 |
4.58 |
% |
|
|
15,389,670 |
|
196,947 |
5.13 |
% |
Non-earning assets |
|
2,304,798 |
|
|
|
|
|
|
2,338,732 |
|
|
|
|
|
|
1,993,202 |
|
|
|
|
Total assets |
$ |
21,822,273 |
|
|
|
|
|
$ |
20,920,223 |
|
|
|
|
|
$ |
17,382,872 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
Interest
bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest bearing transaction and savings accounts |
$ |
9,138,563 |
$ |
7,203 |
0.32 |
% |
|
$ |
9,005,701 |
$ |
17,954 |
0.80 |
% |
|
$ |
7,139,356 |
$ |
20,190 |
1.13 |
% |
Time deposits |
|
3,057,153 |
|
10,803 |
1.42 |
% |
|
|
3,150,909 |
|
13,323 |
1.70 |
% |
|
|
3,072,246 |
|
14,606 |
1.91 |
% |
Total interest bearing deposits |
|
12,195,716 |
|
18,006 |
0.59 |
% |
|
|
12,156,610 |
|
31,277 |
1.03 |
% |
|
|
10,211,602 |
|
34,796 |
1.37 |
% |
Federal funds purchased and securities sold under agreement to
repurchase |
|
392,633 |
|
337 |
0.35 |
% |
|
|
330,902 |
|
759 |
0.92 |
% |
|
|
133,242 |
|
257 |
0.77 |
% |
Other borrowings |
|
1,395,109 |
|
4,963 |
1.43 |
% |
|
|
1,320,245 |
|
4,877 |
1.49 |
% |
|
|
1,277,450 |
|
6,219 |
1.95 |
% |
Subordinated notes and debentures |
|
387,422 |
|
4,667 |
4.84 |
% |
|
|
388,330 |
|
4,835 |
5.01 |
% |
|
|
354,088 |
|
4,541 |
5.14 |
% |
Total interest bearing liabilities |
|
14,370,880 |
|
27,973 |
0.78 |
% |
|
|
14,196,087 |
|
41,748 |
1.18 |
% |
|
|
11,976,382 |
|
45,813 |
1.53 |
% |
Non-interest
bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
|
4,354,781 |
|
|
|
|
3,602,678 |
|
|
|
|
2,834,452 |
|
|
Other liabilities |
|
216,508 |
|
|
|
|
251,514 |
|
|
|
|
207,500 |
|
|
Total liabilities |
|
18,942,169 |
|
|
|
|
18,050,279 |
|
|
|
|
15,018,334 |
|
|
Stockholders' equity |
|
2,880,104 |
|
|
|
|
2,869,944 |
|
|
|
|
2,364,538 |
|
|
Total liabilities and stockholders' equity |
$ |
21,822,273 |
|
|
|
|
|
$ |
20,920,223 |
|
|
|
|
|
$ |
17,382,872 |
|
|
|
|
Net interest
income (FTE) |
|
|
$ |
166,031 |
|
|
|
|
$ |
169,788 |
|
|
|
|
$ |
151,134 |
|
Net interest
spread (FTE) |
|
|
|
3.22 |
% |
|
|
|
|
3.40 |
% |
|
|
|
|
3.60 |
% |
Net interest
margin (FTE) - quarter-to-date |
|
|
3.42 |
% |
|
|
|
3.68 |
% |
|
|
|
3.94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin (FTE) - year-to-date |
|
|
3.55 |
% |
|
|
|
3.68 |
% |
|
|
|
3.90 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Core net interest margin (FTE) - quarter-to-date (1) |
|
3.18 |
% |
|
|
|
3.42 |
% |
|
|
|
3.67 |
% |
Core loan
yield (FTE) - quarter-to-date (1) |
|
|
4.52 |
% |
|
|
|
4.86 |
% |
|
|
|
5.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Core net
interest margin (FTE) - year-to-date (1) |
|
|
3.30 |
% |
|
|
|
3.42 |
% |
|
|
|
3.68 |
% |
Core loan
yield (FTE) - year-to-date (1) |
|
|
4.69 |
% |
|
|
|
4.86 |
% |
|
|
|
5.27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Calculations of
core net interest margin and core loan yield and the
reconciliations to GAAP are included in the schedules accompanying
this release. |
|
|
|
|
|
|
|
|
|
|
|
|
Simmons First National Corporation |
|
|
|
SFNC |
Consolidated - Selected Financial Data |
|
|
|
|
|
For
the Quarters Ended |
Jun
30 |
Mar
31 |
Dec
31 |
Sep
30 |
Jun
30 |
(Unaudited) |
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
($
in thousands, except share data) |
|
|
|
|
|
QUARTER-TO-DATE |
|
|
|
|
|
Financial Highlights - GAAP |
|
|
|
|
|
Net Income |
$ |
58,789 |
|
$ |
77,223 |
|
$ |
52,709 |
|
$ |
81,826 |
|
$ |
55,598 |
|
Diluted earnings per share |
|
0.54 |
|
|
0.68 |
|
|
0.49 |
|
|
0.84 |
|
|
0.58 |
|
Return on average assets |
|
1.08 |
% |
|
1.48 |
% |
|
1.04 |
% |
|
1.83 |
% |
|
1.28 |
% |
Return on average common equity |
|
8.21 |
% |
|
10.83 |
% |
|
8.01 |
% |
|
13.70 |
% |
|
9.48 |
% |
Return on tangible common equity |
|
14.55 |
% |
|
19.00 |
% |
|
14.62 |
% |
|
24.89 |
% |
|
17.40 |
% |
Net interest margin (FTE) |
|
3.42 |
% |
|
3.68 |
% |
|
3.78 |
% |
|
3.82 |
% |
|
3.94 |
% |
FTE adjustment |
|
2,350 |
|
|
2,305 |
|
|
2,172 |
|
|
1,843 |
|
|
1,706 |
|
Amortization of intangibles |
|
3,369 |
|
|
3,413 |
|
|
3,270 |
|
|
2,947 |
|
|
2,947 |
|
Amortization of intangibles, net of taxes |
|
2,489 |
|
|
2,521 |
|
|
2,416 |
|
|
2,176 |
|
|
2,177 |
|
Average diluted shares outstanding |
|
109,130,866 |
|
|
113,137,223 |
|
|
108,472,559 |
|
|
96,968,775 |
|
|
96,367,857 |
|
Shares repurchased under plan |
|
- |
|
|
4,922,336 |
|
|
390,000 |
|
|
- |
|
|
- |
|
Average price of shares repurchased |
|
- |
|
|
18.96 |
|
|
25.95 |
|
|
- |
|
|
- |
|
Cash dividends declared per common share |
|
0.17 |
|
|
0.17 |
|
|
0.16 |
|
|
0.16 |
|
|
0.16 |
|
Financial Highlights - Core (non-GAAP) |
|
|
|
|
|
Core earnings (excludes non-core items) (1) |
$ |
60,147 |
|
$ |
73,838 |
|
$ |
71,074 |
|
$ |
83,963 |
|
$ |
65,453 |
|
Core diluted earnings per share (1) |
|
0.55 |
|
|
0.65 |
|
|
0.66 |
|
|
0.87 |
|
|
0.68 |
|
Core net interest margin (FTE) (2) |
|
3.18 |
% |
|
3.42 |
% |
|
3.44 |
% |
|
3.59 |
% |
|
3.67 |
% |
Accretable yield on acquired loans |
|
11,723 |
|
|
11,837 |
|
|
15,100 |
|
|
9,322 |
|
|
10,162 |
|
Efficiency ratio (1) |
|
49.12 |
% |
|
56.38 |
% |
|
52.63 |
% |
|
43.77 |
% |
|
49.88 |
% |
Core return on average assets (1) |
|
1.11 |
% |
|
1.42 |
% |
|
1.41 |
% |
|
1.88 |
% |
|
1.51 |
% |
Core return on average common equity (1) |
|
8.40 |
% |
|
10.35 |
% |
|
10.80 |
% |
|
14.06 |
% |
|
11.16 |
% |
Core return on tangible common equity (1) |
|
14.87 |
% |
|
18.19 |
% |
|
19.49 |
% |
|
25.52 |
% |
|
20.36 |
% |
YEAR-TO-DATE |
|
|
|
|
|
Financial Highlights - GAAP |
|
|
|
|
|
Net Income |
$ |
136,012 |
|
$ |
77,223 |
|
$ |
237,828 |
|
$ |
185,119 |
|
$ |
103,293 |
|
Diluted earnings per share |
|
1.22 |
|
|
0.68 |
|
|
2.41 |
|
|
1.94 |
|
|
1.09 |
|
Return on average assets |
|
1.28 |
% |
|
1.48 |
% |
|
1.33 |
% |
|
1.44 |
% |
|
1.24 |
% |
Return on average common equity |
|
9.45 |
% |
|
10.83 |
% |
|
9.93 |
% |
|
10.65 |
% |
|
9.05 |
% |
Return on tangible common equity |
|
16.57 |
% |
|
19.00 |
% |
|
17.99 |
% |
|
19.27 |
% |
|
16.38 |
% |
Net interest margin (FTE) |
|
3.55 |
% |
|
3.68 |
% |
|
3.85 |
% |
|
3.88 |
% |
|
3.90 |
% |
FTE adjustment |
|
4,655 |
|
|
2,305 |
|
|
7,322 |
|
|
5,150 |
|
|
3,307 |
|
Amortization of intangibles |
|
6,782 |
|
|
3,413 |
|
|
11,805 |
|
|
8,535 |
|
|
5,588 |
|
Amortization of intangibles, net of taxes |
|
5,010 |
|
|
2,521 |
|
|
8,720 |
|
|
6,304 |
|
|
4,128 |
|
Average diluted shares outstanding |
|
111,083,999 |
|
|
113,137,223 |
|
|
98,796,628 |
|
|
95,450,732 |
|
|
94,588,739 |
|
Cash dividends declared per common share |
|
0.34 |
|
|
0.17 |
|
|
0.64 |
|
|
0.48 |
|
|
0.32 |
|
Financial Highlights - Core (non-GAAP) |
|
|
|
|
|
Core earnings (excludes non-core items) (1) |
$ |
133,985 |
|
$ |
73,838 |
|
$ |
269,566 |
|
$ |
198,492 |
|
$ |
114,529 |
|
Core diluted earnings per share (1) |
|
1.21 |
|
|
0.65 |
|
|
2.73 |
|
|
2.08 |
|
|
1.21 |
|
Core net interest margin (FTE) (2) |
|
3.30 |
% |
|
3.42 |
% |
|
3.59 |
% |
|
3.64 |
% |
|
3.68 |
% |
Accretable yield on acquired loans |
|
23,560 |
|
|
11,837 |
|
|
41,244 |
|
|
26,144 |
|
|
16,822 |
|
Efficiency ratio (1) |
|
52.75 |
% |
|
56.38 |
% |
|
50.33 |
% |
|
49.49 |
% |
|
53.14 |
% |
Core return on average assets (1) |
|
1.26 |
% |
|
1.42 |
% |
|
1.51 |
% |
|
1.55 |
% |
|
1.37 |
% |
Core return on average common equity (1) |
|
9.31 |
% |
|
10.35 |
% |
|
11.25 |
% |
|
11.42 |
% |
|
10.04 |
% |
Core return on tangible common equity (1) |
|
16.33 |
% |
|
18.19 |
% |
|
20.31 |
% |
|
20.62 |
% |
|
18.09 |
% |
END
OF PERIOD |
|
|
|
|
|
Book value per share |
$ |
26.64 |
|
$ |
26.11 |
|
$ |
26.30 |
|
$ |
26.36 |
|
$ |
25.57 |
|
Tangible book value per share |
|
15.79 |
|
|
15.22 |
|
|
15.89 |
|
|
15.73 |
|
|
14.90 |
|
Shares outstanding |
|
108,994,389 |
|
|
108,966,331 |
|
|
113,628,601 |
|
|
96,613,855 |
|
|
96,590,656 |
|
Full-time equivalent employees |
|
2,939 |
|
|
3,079 |
|
|
3,270 |
|
|
2,701 |
|
|
2,700 |
|
Total number of financial centers |
|
226 |
|
|
240 |
|
|
251 |
|
|
212 |
|
|
212 |
|
|
|
|
|
|
|
(1) Core earnings
exclude non-core items, which is a non-GAAP measurement.
Reconciliations to GAAP are included in the schedules
accompanying this release. |
(2) Excludes
accretable yield adjustment on loans, which is a non-GAAP
measurement. Reconciliations to GAAP are included in the
schedules accompanying this release. |
|
|
|
|
|
|
Simmons First National Corporation |
|
|
|
SFNC |
Consolidated - Reconciliation of Core Earnings
(non-GAAP) |
|
|
|
For
the Quarters Ended |
Jun
30 |
Mar
31 |
Dec
31 |
Sep
30 |
Jun
30 |
(Unaudited) |
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
($
in thousands, except per share data) |
|
|
|
|
|
|
|
QUARTER-TO-DATE |
|
|
|
|
|
Net
Income |
$ |
58,789 |
|
$ |
77,223 |
|
$ |
52,709 |
|
$ |
81,826 |
|
$ |
55,598 |
|
Non-core items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of branches |
|
(2,204 |
) |
|
(5,889 |
) |
|
- |
|
|
- |
|
|
- |
|
Merger-related costs |
|
1,830 |
|
|
1,068 |
|
|
24,831 |
|
|
2,556 |
|
|
7,522 |
|
Early retirement program |
|
493 |
|
|
- |
|
|
- |
|
|
177 |
|
|
2,932 |
|
Branch right-sizing |
|
1,721 |
|
|
238 |
|
|
37 |
|
|
160 |
|
|
2,887 |
|
Tax effect (1) |
|
(482 |
) |
|
1,198 |
|
|
(6,503 |
) |
|
(756 |
) |
|
(3,486 |
) |
Net non-core items |
|
1,358 |
|
|
(3,385 |
) |
|
18,365 |
|
|
2,137 |
|
|
9,855 |
|
Core
earnings (non-GAAP) |
$ |
60,147 |
|
$ |
73,838 |
|
$ |
71,074 |
|
$ |
83,963 |
|
$ |
65,453 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share |
$ |
0.54 |
|
$ |
0.68 |
|
$ |
0.49 |
|
$ |
0.84 |
|
$ |
0.58 |
|
Non-core items |
|
|
|
|
|
Gain on sale of branches |
|
(0.02 |
) |
|
(0.05 |
) |
|
- |
|
|
- |
|
|
- |
|
Merger-related costs |
|
0.02 |
|
|
0.01 |
|
|
0.23 |
|
|
0.04 |
|
|
0.08 |
|
Early retirement program |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
0.03 |
|
Branch right-sizing |
|
0.02 |
|
|
- |
|
|
- |
|
|
- |
|
|
0.03 |
|
Tax effect (1) |
|
(0.01 |
) |
|
0.01 |
|
|
(0.06 |
) |
|
(0.01 |
) |
|
(0.04 |
) |
Net non-core items |
|
0.01 |
|
|
(0.03 |
) |
|
0.17 |
|
|
0.03 |
|
|
0.10 |
|
Core diluted
earnings per share (non-GAAP) |
$ |
0.55 |
|
$ |
0.65 |
|
$ |
0.66 |
|
$ |
0.87 |
|
$ |
0.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR-TO-DATE |
|
|
|
|
|
Net
Income |
$ |
136,012 |
|
$ |
77,223 |
|
$ |
237,828 |
|
$ |
185,119 |
|
$ |
103,293 |
|
Non-core items |
|
|
|
|
|
Gain on sale of branches |
|
(8,093 |
) |
|
(5,889 |
) |
|
- |
|
|
- |
|
|
- |
|
Merger-related costs |
|
2,898 |
|
|
1,068 |
|
|
36,379 |
|
|
11,548 |
|
|
8,992 |
|
Early retirement program |
|
493 |
|
|
- |
|
|
3,464 |
|
|
3,464 |
|
|
3,287 |
|
Branch right-sizing |
|
1,959 |
|
|
238 |
|
|
3,129 |
|
|
3,092 |
|
|
2,932 |
|
Tax effect (1) |
|
716 |
|
|
1,198 |
|
|
(11,234 |
) |
|
(4,731 |
) |
|
(3,975 |
) |
Net non-core items |
|
(2,027 |
) |
|
(3,385 |
) |
|
31,738 |
|
|
13,373 |
|
|
11,236 |
|
Core
earnings (non-GAAP) |
$ |
133,985 |
|
$ |
73,838 |
|
$ |
269,566 |
|
$ |
198,492 |
|
$ |
114,529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share |
$ |
1.22 |
|
$ |
0.68 |
|
$ |
2.41 |
|
$ |
1.94 |
|
$ |
1.09 |
|
Non-core items |
|
|
|
|
|
Gain on sale of branches |
|
(0.07 |
) |
|
(0.05 |
) |
|
- |
|
|
- |
|
|
- |
|
Merger-related costs |
|
0.03 |
|
|
0.01 |
|
|
0.37 |
|
|
0.12 |
|
|
0.10 |
|
Early retirement program |
|
- |
|
|
- |
|
|
0.03 |
|
|
0.04 |
|
|
0.03 |
|
Branch right-sizing |
|
0.02 |
|
|
- |
|
|
0.03 |
|
|
0.03 |
|
|
0.03 |
|
Tax effect (1) |
|
0.01 |
|
|
0.01 |
|
|
(0.11 |
) |
|
(0.05 |
) |
|
(0.04 |
) |
Net non-core items |
|
(0.01 |
) |
|
(0.03 |
) |
|
0.32 |
|
|
0.14 |
|
|
0.12 |
|
Core diluted
earnings per share (non-GAAP) |
$ |
1.21 |
|
$ |
0.65 |
|
$ |
2.73 |
|
$ |
2.08 |
|
$ |
1.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
$ |
9,809 |
|
$ |
12,801 |
|
$ |
7,073 |
|
$ |
44,721 |
|
$ |
6,065 |
|
Non-core items (1) |
|
(2,204 |
) |
|
(5,889 |
) |
|
- |
|
|
- |
|
|
- |
|
Core other income (non-GAAP) |
$ |
7,605 |
|
$ |
6,912 |
|
$ |
7,073 |
|
$ |
44,721 |
|
$ |
6,065 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense |
$ |
112,598 |
|
$ |
125,813 |
|
$ |
142,095 |
|
$ |
106,865 |
|
$ |
110,743 |
|
Non-core items (1) |
|
(4,044 |
) |
|
(1,306 |
) |
|
(24,868 |
) |
|
(2,893 |
) |
|
(13,341 |
) |
Core non-interest expense (non-GAAP) |
$ |
108,554 |
|
$ |
124,507 |
|
$ |
117,227 |
|
$ |
103,972 |
|
$ |
97,402 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
$ |
57,644 |
|
$ |
67,924 |
|
$ |
63,235 |
|
$ |
52,065 |
|
$ |
56,128 |
|
Non-core items (1) |
|
(493 |
) |
|
- |
|
|
- |
|
|
(176 |
) |
|
(2,937 |
) |
Core salaries and employee benefits (non-GAAP) |
$ |
57,151 |
|
$ |
67,924 |
|
$ |
63,235 |
|
$ |
51,889 |
|
$ |
53,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger related costs |
$ |
1,830 |
|
$ |
1,068 |
|
$ |
24,831 |
|
$ |
2,556 |
|
$ |
7,522 |
|
Non-core items (1) |
|
(1,830 |
) |
|
(1,068 |
) |
|
(24,831 |
) |
|
(2,556 |
) |
|
(7,522 |
) |
Core merger related costs (non-GAAP) |
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
operating expenses |
$ |
34,651 |
|
$ |
38,788 |
|
$ |
38,044 |
|
$ |
37,881 |
|
$ |
32,867 |
|
Non-core items (1) |
|
(1,662 |
) |
|
(212 |
) |
|
(4 |
) |
|
(90 |
) |
|
(2,834 |
) |
Core other operating expenses (non-GAAP) |
$ |
32,989 |
|
$ |
38,576 |
|
$ |
38,040 |
|
$ |
37,791 |
|
$ |
30,033 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-core items
include gain on sale of branches, merger related costs, early
retirement program expenses and branch right sizing
costs. |
|
|
|
|
|
|
Simmons First National Corporation |
|
|
|
|
SFNC |
Reconciliation Of Non-GAAP Financial Measures - End of
Period |
|
|
|
For
the Quarters Ended |
Jun
30 |
Mar
31 |
Dec
31 |
Sept
30 |
Jun
30 |
(Unaudited) |
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
($
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 |
$ |
2,903,936 |
|
$ |
2,844,633 |
|
$ |
2,988,157 |
|
$ |
2,547,071 |
|
$ |
2,469,513 |
|
Intangible
assets: |
|
|
|
|
|
Goodwill |
|
(1,064,765 |
) |
|
(1,064,978 |
) |
|
(1,055,520 |
) |
|
(926,648 |
) |
|
(926,450 |
) |
Other intangible assets |
|
(117,823 |
) |
|
(121,673 |
) |
|
(127,340 |
) |
|
(101,149 |
) |
|
(104,096 |
) |
Total
intangibles |
|
(1,182,588 |
) |
|
(1,186,651 |
) |
|
(1,182,860 |
) |
|
(1,027,797 |
) |
|
(1,030,546 |
) |
Tangible
common stockholders' equity |
$ |
1,721,348 |
|
$ |
1,657,982 |
|
$ |
1,805,297 |
|
$ |
1,519,274 |
|
$ |
1,438,967 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
21,903,684 |
|
$ |
20,841,352 |
|
$ |
21,259,143 |
|
$ |
17,758,511 |
|
$ |
17,937,435 |
|
Intangible
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
(1,064,765 |
) |
|
(1,064,978 |
) |
|
(1,055,520 |
) |
|
(926,648 |
) |
|
(926,450 |
) |
Other intangible assets |
|
(117,823 |
) |
|
(121,673 |
) |
|
(127,340 |
) |
|
(101,149 |
) |
|
(104,096 |
) |
Total
intangibles |
|
(1,182,588 |
) |
|
(1,186,651 |
) |
|
(1,182,860 |
) |
|
(1,027,797 |
) |
|
(1,030,546 |
) |
Tangible
assets |
$ |
20,721,096 |
|
$ |
19,654,701 |
|
$ |
20,076,283 |
|
$ |
16,730,714 |
|
$ |
16,906,889 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paycheck
protection program ("PPP") loans |
|
(963,712 |
) |
|
|
|
|
Total assets
less PPP loans |
$ |
20,939,972 |
|
|
|
|
|
|
|
Tangible
assets less PPP loans |
$ |
19,757,384 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
equity to assets |
|
13.26 |
% |
|
13.65 |
% |
|
14.06 |
% |
|
14.34 |
% |
|
13.77 |
% |
Ratio of
equity to assets less PPP loans |
|
13.87 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
tangible common equity to tangible assets |
|
8.31 |
% |
|
8.44 |
% |
|
8.99 |
% |
|
9.08 |
% |
|
8.51 |
% |
Ratio of
tangible common equity to tangible assets less PPP loans |
|
8.71 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Tangible Book Value per Share |
|
|
|
|
|
|
|
|
|
|
|
Total common
stockholders' equity |
$ |
2,903,936 |
|
$ |
2,844,633 |
|
$ |
2,988,157 |
|
$ |
2,547,071 |
|
$ |
2,469,513 |
|
Intangible
assets: |
|
|
|
|
|
Goodwill |
|
(1,064,765 |
) |
|
(1,064,978 |
) |
|
(1,055,520 |
) |
|
(926,648 |
) |
|
(926,450 |
) |
Other intangible assets |
|
(117,823 |
) |
|
(121,673 |
) |
|
(127,340 |
) |
|
(101,149 |
) |
|
(104,096 |
) |
Total
intangibles |
|
(1,182,588 |
) |
|
(1,186,651 |
) |
|
(1,182,860 |
) |
|
(1,027,797 |
) |
|
(1,030,546 |
) |
Tangible
common stockholders' equity |
$ |
1,721,348 |
|
$ |
1,657,982 |
|
$ |
1,805,297 |
|
$ |
1,519,274 |
|
$ |
1,438,967 |
|
Shares of
common stock outstanding |
|
108,994,389 |
|
|
108,966,331 |
|
|
113,628,601 |
|
|
96,613,855 |
|
|
96,590,656 |
|
Book value
per common share |
$ |
26.64 |
|
$ |
26.11 |
|
$ |
26.30 |
|
$ |
26.36 |
|
$ |
25.57 |
|
Tangible
book value per common share |
$ |
15.79 |
|
$ |
15.22 |
|
$ |
15.89 |
|
$ |
15.73 |
|
$ |
14.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Regulatory Tier 1 Leverage Ratio Less
Average PPP Loans |
|
|
|
|
|
|
|
|
|
Total Tier 1
capital |
$ |
1,820,488 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
average assets for leverage ratio |
$ |
20,742,824 |
|
|
|
|
|
Average PPP
loans |
|
(645,172 |
) |
|
|
|
|
Adjusted
average assets less average PPP loans |
$ |
20,097,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1
leverage ratio |
|
8.78 |
% |
|
|
|
|
Tier 1
leverage ratio less average PPP loans |
|
9.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Simmons First National Corporation |
|
|
|
|
SFNC |
Reconciliation Of Non-GAAP Financial Measures -
Quarter-to-Date |
|
|
|
For
the Quarters Ended |
Jun
30 |
Mar
31 |
Dec
31 |
Sept
30 |
Jun
30 |
(Unaudited) |
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
($
in thousands) |
|
|
|
|
|
Calculation of Core Return on Average Assets |
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
58,789 |
|
$ |
77,223 |
|
$ |
52,709 |
|
$ |
81,826 |
|
$ |
55,598 |
|
Net non-core
items, net of taxes, adjustment |
|
1,358 |
|
|
(3,385 |
) |
|
18,365 |
|
|
2,137 |
|
|
9,855 |
|
Core
earnings |
$ |
60,147 |
|
$ |
73,838 |
|
$ |
71,074 |
|
$ |
83,963 |
|
$ |
65,453 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
total assets |
$ |
21,822,273 |
|
$ |
20,920,223 |
|
$ |
20,041,890 |
|
$ |
17,720,598 |
|
$ |
17,382,872 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets |
|
1.08 |
% |
|
1.48 |
% |
|
1.04 |
% |
|
1.83 |
% |
|
1.28 |
% |
Core return
on average assets |
|
1.11 |
% |
|
1.42 |
% |
|
1.41 |
% |
|
1.88 |
% |
|
1.51 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Return on Tangible Common
Equity |
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
58,789 |
|
$ |
77,223 |
|
$ |
52,709 |
|
$ |
81,826 |
|
$ |
55,598 |
|
Amortization
of intangibles, net of taxes |
|
2,489 |
|
|
2,521 |
|
|
2,416 |
|
|
2,176 |
|
|
2,177 |
|
Total income
available to common stockholders |
$ |
61,278 |
|
$ |
79,744 |
|
$ |
55,125 |
|
$ |
84,002 |
|
$ |
57,775 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net non-core
items, net of taxes |
|
1,358 |
|
|
(3,385 |
) |
|
18,365 |
|
|
2,137 |
|
|
9,855 |
|
Core
earnings |
|
60,147 |
|
|
73,838 |
|
|
71,074 |
|
|
83,963 |
|
|
65,453 |
|
Amortization
of intangibles, net of taxes |
|
2,489 |
|
|
2,521 |
|
|
2,416 |
|
|
2,176 |
|
|
2,177 |
|
Total core
income available to common stockholders |
$ |
62,636 |
|
$ |
76,359 |
|
$ |
73,490 |
|
$ |
86,139 |
|
$ |
67,630 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
common stockholders' equity |
$ |
2,879,337 |
|
$ |
2,869,177 |
|
$ |
2,611,143 |
|
$ |
2,368,773 |
|
$ |
2,351,603 |
|
Average
intangible assets: |
|
|
|
|
|
Goodwill |
|
(1,064,955 |
) |
|
(1,055,498 |
) |
|
(997,004 |
) |
|
(926,687 |
) |
|
(915,445 |
) |
Other
intangibles |
|
(120,111 |
) |
|
(125,746 |
) |
|
(118,311 |
) |
|
(103,028 |
) |
|
(104,050 |
) |
Total
average intangibles |
|
(1,185,066 |
) |
|
(1,181,244 |
) |
|
(1,115,315 |
) |
|
(1,029,715 |
) |
|
(1,019,495 |
) |
Average
tangible common stockholders' equity |
$ |
1,694,271 |
|
$ |
1,687,933 |
|
$ |
1,495,828 |
|
$ |
1,339,058 |
|
$ |
1,332,108 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average common equity |
|
8.21 |
% |
|
10.83 |
% |
|
8.01 |
% |
|
13.70 |
% |
|
9.48 |
% |
Return on
tangible common equity |
|
14.55 |
% |
|
19.00 |
% |
|
14.62 |
% |
|
24.89 |
% |
|
17.40 |
% |
Core return
on average common equity |
|
8.40 |
% |
|
10.35 |
% |
|
10.80 |
% |
|
14.06 |
% |
|
11.16 |
% |
Core return
on tangible common equity |
|
14.87 |
% |
|
18.19 |
% |
|
19.49 |
% |
|
25.52 |
% |
|
20.36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Efficiency Ratio
(1) |
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense |
$ |
112,598 |
|
$ |
125,813 |
|
$ |
142,095 |
|
$ |
106,865 |
|
$ |
110,743 |
|
Non-core
non-interest expense adjustment |
|
(4,044 |
) |
|
(1,306 |
) |
|
(24,868 |
) |
|
(2,893 |
) |
|
(13,341 |
) |
Other real
estate and foreclosure expense adjustment |
|
(242 |
) |
|
(319 |
) |
|
(1,063 |
) |
|
(1,057 |
) |
|
(563 |
) |
Amortization
of intangibles adjustment |
|
(3,369 |
) |
|
(3,413 |
) |
|
(3,270 |
) |
|
(2,947 |
) |
|
(2,947 |
) |
Efficiency
ratio numerator |
$ |
104,943 |
|
$ |
120,775 |
|
$ |
112,894 |
|
$ |
99,968 |
|
$ |
93,892 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net-interest
income |
$ |
163,681 |
|
$ |
167,483 |
|
$ |
167,066 |
|
$ |
149,264 |
|
$ |
149,428 |
|
Non-interest
income |
|
50,227 |
|
|
82,394 |
|
|
45,630 |
|
|
84,675 |
|
|
39,934 |
|
Fully
tax-equivalent adjustment |
|
2,350 |
|
|
2,305 |
|
|
2,172 |
|
|
1,843 |
|
|
1,706 |
|
Gain on sale
of securities |
|
(390 |
) |
|
(32,095 |
) |
|
(377 |
) |
|
(7,374 |
) |
|
(2,823 |
) |
Efficiency
ratio denominator |
$ |
213,664 |
|
$ |
214,198 |
|
$ |
214,491 |
|
$ |
228,408 |
|
$ |
188,245 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio (1) |
|
49.12 |
% |
|
56.38 |
% |
|
52.63 |
% |
|
43.77 |
% |
|
49.88 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Efficiency ratio
is 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. |
|
|
Simmons First National Corporation |
|
|
|
|
SFNC |
Reconciliation
Of Non-GAAP Financial Measures - Quarter-to-Date
(continued) |
|
|
For
the Quarters Ended |
Jun
30 |
Mar
31 |
Dec
31 |
Sept
30 |
Jun
30 |
(Unaudited) |
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
($
in thousands) |
|
|
|
|
|
Calculation of Core Net Interest Margin |
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
$ |
163,681 |
|
$ |
167,483 |
|
$ |
167,066 |
|
$ |
149,264 |
|
$ |
149,428 |
|
Fully
tax-equivalent adjustment |
|
2,350 |
|
|
2,305 |
|
|
2,172 |
|
|
1,843 |
|
|
1,706 |
|
Fully
tax-equivalent net interest income |
|
166,031 |
|
|
169,788 |
|
|
169,238 |
|
|
151,107 |
|
|
151,134 |
|
|
|
|
|
|
|
Total
accretable yield |
|
(11,723 |
) |
|
(11,837 |
) |
|
(15,100 |
) |
|
(9,322 |
) |
|
(10,162 |
) |
Core net
interest income |
$ |
154,308 |
|
$ |
157,951 |
|
$ |
154,138 |
|
$ |
141,785 |
|
$ |
140,972 |
|
PPP loan and
excess liquidity interest income |
|
(5,623 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Core net
interest adjusted for PPP loans and liquidity |
$ |
148,685 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
earning assets |
$ |
19,517,475 |
|
$ |
18,581,491 |
|
$ |
17,753,004 |
|
$ |
15,680,665 |
|
$ |
15,389,670 |
|
Average PPP
loan balance and excess liquidity |
|
(2,071,411 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Average
earning assets adjusted for PPL loans and liquidity |
$ |
17,446,064 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin |
|
3.42 |
% |
|
3.68 |
% |
|
3.78 |
% |
|
3.82 |
% |
|
3.94 |
% |
Core net
interest margin |
|
3.18 |
% |
|
3.42 |
% |
|
3.44 |
% |
|
3.59 |
% |
|
3.67 |
% |
Core net
interest margin adjusted for PPP loans and liquidity |
|
3.43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Core Loan Yield |
|
|
|
|
|
|
|
|
|
|
|
Loan
interest income |
$ |
177,168 |
|
$ |
187,566 |
|
$ |
193,402 |
|
$ |
179,971 |
|
$ |
178,122 |
|
Total
accretable yield |
|
(11,723 |
) |
|
(11,837 |
) |
|
(15,100 |
) |
|
(9,322 |
) |
|
(10,162 |
) |
Core loan
interest income |
$ |
165,445 |
|
$ |
175,729 |
|
$ |
178,302 |
|
$ |
170,649 |
|
$ |
167,960 |
|
PPP loan
interest income |
|
(3,733 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Core loan
interest income without PPP loans |
$ |
161,712 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loan
balance |
$ |
14,731,306 |
|
$ |
14,548,853 |
|
$ |
14,144,703 |
|
$ |
13,053,540 |
|
$ |
12,814,386 |
|
Average PPP
loan balance |
|
(645,172 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Core loan
interest income without PPP loans |
$ |
14,086,134 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Core loan
yield |
|
4.52 |
% |
|
4.86 |
% |
|
5.00 |
% |
|
5.19 |
% |
|
5.26 |
% |
Core loan
yield without PPP loans |
|
4.62 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Pre-Tax, Pre-Provision (PTPP)
Earnings |
|
|
|
|
|
|
|
|
|
|
|
Net income
available to common stockholders |
$ |
58,789 |
|
$ |
77,223 |
|
$ |
52,709 |
|
$ |
81,826 |
|
$ |
55,598 |
|
Provision
for income taxes |
|
15,593 |
|
|
20,694 |
|
|
12,976 |
|
|
23,275 |
|
|
15,616 |
|
Provision
for credit losses |
|
26,915 |
|
|
26,134 |
|
|
4,903 |
|
|
21,973 |
|
|
7,079 |
|
Provision
for unfunded commitments |
|
(5,000 |
) |
|
(3,000 |
) |
|
- |
|
|
- |
|
|
- |
|
(Gain) loss
on sale of securities |
|
(390 |
) |
|
(32,095 |
) |
|
(377 |
) |
|
(7,374 |
) |
|
(2,823 |
) |
Net pre-tax
non-core items |
|
1,840 |
|
|
(4,583 |
) |
|
24,868 |
|
|
2,893 |
|
|
13,341 |
|
Pre-tax,
pre-provision (PTPP) earnings |
$ |
97,747 |
|
$ |
84,373 |
|
$ |
95,079 |
|
$ |
122,593 |
|
$ |
88,811 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Simmons First National Corporation |
|
|
|
|
SFNC |
Reconciliation Of Non-GAAP Financial Measures -
Year-to-Date |
|
|
|
For
the Quarters Ended |
|
|
|
|
|
(Unaudited) |
Jun
30 |
Mar
31 |
Dec
31 |
Sept
30 |
Jun
30 |
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
($
in thousands) |
|
|
|
|
|
Calculation of Core Return on Average Assets |
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
136,012 |
|
$ |
77,223 |
|
$ |
237,828 |
|
$ |
185,119 |
|
$ |
103,293 |
|
Net non-core
items, net of taxes, adjustment |
|
(2,027 |
) |
|
(3,385 |
) |
|
31,738 |
|
|
13,373 |
|
|
11,236 |
|
Core
earnings |
$ |
133,985 |
|
$ |
73,838 |
|
$ |
269,566 |
|
$ |
198,492 |
|
$ |
114,529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
total assets |
$ |
21,371,248 |
|
$ |
20,920,223 |
|
$ |
17,871,748 |
|
$ |
17,140,419 |
|
$ |
16,845,528 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets |
|
1.28 |
% |
|
1.48 |
% |
|
1.33 |
% |
|
1.44 |
% |
|
1.24 |
% |
Core return
on average assets |
|
1.26 |
% |
|
1.42 |
% |
|
1.51 |
% |
|
1.55 |
% |
|
1.37 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Return on Tangible Common
Equity |
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
136,012 |
|
$ |
77,223 |
|
$ |
237,828 |
|
$ |
185,119 |
|
$ |
103,293 |
|
Amortization
of intangibles, net of taxes |
|
5,010 |
|
|
2,521 |
|
|
8,720 |
|
|
6,304 |
|
|
4,128 |
|
Total income
available to common stockholders |
$ |
141,022 |
|
$ |
79,744 |
|
$ |
246,548 |
|
$ |
191,423 |
|
$ |
107,421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net non-core
items, net of taxes |
|
(2,027 |
) |
|
(3,385 |
) |
|
31,738 |
|
|
13,373 |
|
|
11,236 |
|
Core
earnings |
|
133,985 |
|
|
73,838 |
|
|
269,566 |
|
|
198,492 |
|
|
114,529 |
|
Amortization
of intangibles, net of taxes |
|
5,010 |
|
|
2,521 |
|
|
8,720 |
|
|
6,304 |
|
|
4,128 |
|
Total core
income available to common stockholders |
$ |
138,995 |
|
$ |
76,359 |
|
$ |
278,286 |
|
$ |
204,796 |
|
$ |
118,657 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
common stockholders' equity |
$ |
2,894,351 |
|
$ |
2,869,177 |
|
$ |
2,396,024 |
|
$ |
2,323,530 |
|
$ |
2,300,535 |
|
Average
intangible assets: |
|
|
|
|
|
Goodwill |
|
(1,060,226 |
) |
|
(1,055,498 |
) |
|
(921,635 |
) |
|
(896,236 |
) |
|
(880,759 |
) |
Other
intangibles |
|
(122,928 |
) |
|
(125,746 |
) |
|
(104,000 |
) |
|
(99,178 |
) |
|
(97,221 |
) |
Total
average intangibles |
|
(1,183,154 |
) |
|
(1,181,244 |
) |
|
(1,025,635 |
) |
|
(995,414 |
) |
|
(977,980 |
) |
Average
tangible common stockholders' equity |
$ |
1,711,197 |
|
$ |
1,687,933 |
|
$ |
1,370,389 |
|
$ |
1,328,116 |
|
$ |
1,322,555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average common equity |
|
9.45 |
% |
|
10.83 |
% |
|
9.93 |
% |
|
10.65 |
% |
|
9.05 |
% |
Return on
tangible common equity |
|
16.57 |
% |
|
19.00 |
% |
|
17.99 |
% |
|
19.27 |
% |
|
16.38 |
% |
Core return
on average common equity |
|
9.31 |
% |
|
10.35 |
% |
|
11.25 |
% |
|
11.42 |
% |
|
10.04 |
% |
Core return
on tangible common equity |
|
16.33 |
% |
|
18.19 |
% |
|
20.31 |
% |
|
20.62 |
% |
|
18.09 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Efficiency Ratio
(1) |
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense |
$ |
238,411 |
|
$ |
125,813 |
|
$ |
461,112 |
|
$ |
319,017 |
|
$ |
212,152 |
|
Non-core
non-interest expense adjustment |
|
(5,350 |
) |
|
(1,306 |
) |
|
(42,972 |
) |
|
(18,104 |
) |
|
(15,211 |
) |
Other real
estate and foreclosure expense adjustment |
|
(561 |
) |
|
(319 |
) |
|
(3,282 |
) |
|
(2,219 |
) |
|
(1,162 |
) |
Amortization
of intangibles adjustment |
|
(6,782 |
) |
|
(3,413 |
) |
|
(11,805 |
) |
|
(8,535 |
) |
|
(5,588 |
) |
Efficiency
ratio numerator |
$ |
225,718 |
|
$ |
120,775 |
|
$ |
403,053 |
|
$ |
290,159 |
|
$ |
190,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net-interest
income |
$ |
331,164 |
|
$ |
167,483 |
|
$ |
601,753 |
|
$ |
434,687 |
|
$ |
285,423 |
|
Non-interest
income |
|
132,621 |
|
|
82,394 |
|
|
205,031 |
|
|
159,401 |
|
|
74,726 |
|
Fully
tax-equivalent adjustment |
|
4,655 |
|
|
2,305 |
|
|
7,322 |
|
|
5,150 |
|
|
3,307 |
|
Gain on sale
of securities |
|
(32,485 |
) |
|
(32,095 |
) |
|
(13,314 |
) |
|
(12,937 |
) |
|
(5,563 |
) |
Efficiency
ratio denominator |
$ |
427,862 |
|
$ |
214,198 |
|
$ |
800,792 |
|
$ |
586,301 |
|
$ |
357,893 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio (1) |
|
52.75 |
% |
|
56.38 |
% |
|
50.33 |
% |
|
49.49 |
% |
|
53.14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Core Net Interest Margin |
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
$ |
331,164 |
|
$ |
167,483 |
|
$ |
601,753 |
|
$ |
434,687 |
|
$ |
285,423 |
|
Fully
tax-equivalent adjustment |
|
4,655 |
|
|
2,305 |
|
|
7,322 |
|
|
5,150 |
|
|
3,307 |
|
Fully
tax-equivalent net interest income |
|
335,819 |
|
|
169,788 |
|
|
609,075 |
|
|
439,837 |
|
|
288,730 |
|
|
|
|
|
|
|
Total
accretable yield |
|
(23,560 |
) |
|
(11,837 |
) |
|
(41,244 |
) |
|
(26,144 |
) |
|
(16,822 |
) |
Core net
interest income |
$ |
312,259 |
|
$ |
157,951 |
|
$ |
567,831 |
|
$ |
413,693 |
|
$ |
271,908 |
|
Average
earning assets |
$ |
19,049,487 |
|
$ |
18,581,491 |
|
$ |
15,824,571 |
|
$ |
15,174,671 |
|
$ |
14,917,493 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin |
|
3.55 |
% |
|
3.68 |
% |
|
3.85 |
% |
|
3.88 |
% |
|
3.90 |
% |
Core net
interest margin |
|
3.30 |
% |
|
3.42 |
% |
|
3.59 |
% |
|
3.64 |
% |
|
3.68 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Core Loan Yield |
|
|
|
|
|
|
|
|
|
|
|
Loan
interest income |
$ |
364,476 |
|
$ |
187,566 |
|
$ |
710,935 |
|
$ |
517,533 |
|
$ |
337,562 |
|
Total
accretable yield |
|
(23,560 |
) |
|
(11,837 |
) |
|
(41,244 |
) |
|
(26,144 |
) |
|
(16,822 |
) |
Core loan
interest income |
$ |
340,916 |
|
$ |
175,729 |
|
$ |
669,691 |
|
$ |
491,389 |
|
$ |
320,740 |
|
Average loan
balance |
$ |
14,640,082 |
|
$ |
14,548,853 |
|
$ |
12,938,013 |
|
$ |
12,531,355 |
|
$ |
12,265,936 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core loan
yield |
|
4.68 |
% |
|
4.86 |
% |
|
5.18 |
% |
|
5.24 |
% |
|
5.27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Efficiency ratio
is 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. |
|
|
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