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24.01.2023 14:00:00
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Simmons First National Corporation Reports Record Quarterly Earnings of $83.3 million for the Fourth Quarter of 2022 and Earnings Per Diluted Share of $0.65
PINE BLUFF, Ark., Jan. 24, 2023 /PRNewswire/ --
George A. Makris, Jr., Simmons' Executive Chairman, commented on financial results
During 2022, we completed a number of strategic initiatives, including the successful merger and integration of Spirit of Texas Bancshares, Inc., and delivered solid financial results while also navigating a challenging interest rate environment. First, and foremost, we were able to meet the needs of our customers and the markets we serve as total loans increased $4.1 billion and total deposits increased $3.2 billion during the year. Solid balance sheet growth helped us achieve the highest level of revenue in Simmons' history. That growth did not come at the expense of maintaining our conservative underwriting standards as credit quality metrics remain at historically low levels.
Equally important, Simmons continued to maintain a strong capital position with all of our regulatory capital ratios significantly exceeding "well capitalized" levels. As a result, our Board of Directors approved a 5 percent increase in the cash dividend for the first quarter of 2023. This marks the 114th consecutive year that Simmons has paid cash dividends to its shareholders, a record that less than 25 other U.S. publicly traded companies can match.
We have developed an outstanding management team – one that is deep on talent and experience, but also has a long runway ahead of them. Our foundation is strong and our team is prepared to capitalize on the opportunity to grow organically within our footprint and deliver on our "Better Bank" initiative focused on people, processes and systems.
Financial Highlights | 4Q22 | 3Q22 | 4Q21 | Q4/Full Year 2022 Highlights | |
Financial Results (in millions) | • Q4 22 Diluted EPS of $0.65 and
• ROA of 1.22%, ROE of 10.27%
• Record revenue of $887.4 million
• Positive operating leverage driven
• Solid balance sheet growth in
• Key credit quality metrics remain
• Maintained a strong capital
• Announced 5% increase in the | ||||
Revenue | $237.7 | $236.6 | $199.7 | ||
Noninterest expense | 142.6 | 138.9 | 141.6 | ||
Pre-provision net revenue (1) | 95.2 | 97.7 | 58.4 | ||
Provision for credit losses | — | 0.1 | (1.3) | ||
Net income | 83.3 | 80.6 | 48.2 | ||
Per Share Data | |||||
Diluted earnings | $ 0.65 | $ 0.63 | $ 0.42 | ||
Adjusted diluted earnings (1) | 0.64 | 0.64 | 0.67 | ||
Book value | 25.73 | 24.87 | 28.82 | ||
Tangible book value (1) | 14.33 | 13.51 | 17.71 | ||
Balance Sheet (in millions) | |||||
Total loans | $16,142 | $15,607 | $12,013 | ||
Total deposits | 22,548 | 22,149 | 19,367 | ||
Total shareholders' equity | 3,269 | 3,157 | 3,249 | ||
Asset Quality | |||||
Net charge-off ratio | 0.13 % | — % | 0.31 % | ||
Nonperforming loan ratio | 0.37 | 0.37 | 0.57 | ||
Nonperforming assets to total assets | 0.23 | 0.23 | 0.31 | ||
Allowance for credit losses to total loans | 1.22 | 1.27 | 1.71 | ||
Nonperforming loan coverage ratio | 334 | 342 | 300 | ||
Select Ratios | |||||
Return on average assets | 1.22 % | 1.19 % | 0.77 % | ||
Return on average common equity | 10.27 | 9.71 | 5.87 | ||
Return on avg. tangible common equity (1) | 19.29 | 17.99 | 9.98 | ||
Net interest margin (FTE) (2) | 3.31 | 3.34 | 2.86 | ||
Efficiency ratio | 58.33 | 57.22 | 68.98 | ||
Adjusted efficiency ratio (1) | 56.97 | 54.41 | 59.48 | ||
Common equity tier 1 (CET1) ratio | 11.90 | 11.73 | 13.82 | ||
Total risk-based capital ratio | 14.22 | 14.08 | 16.75 |
Simmons First National Corporation (NASDAQ: SFNC) (Simmons or Company) today reported record quarterly net income of $83.3 million for the fourth quarter of 2022, compared to $80.6 million in the third quarter of 2022 and $48.2 million in the fourth quarter of 2021. Diluted earnings per share were $0.65 for the fourth quarter of 2022, compared to $0.63 per share in the third quarter of 2022 and $0.42 in the fourth quarter of 2021. Return on average assets was 1.22 percent, return on average common equity was 10.27 percent and return on average tangible common equity was 19.29 percent for the fourth quarter of 2022.
For the full year of 2022, earnings were $256.4 million, compared to $271.1 million earned during 2021. Results in 2021 were positively impacted by the recapture of provision for credit losses, gain on sales of securities and lower merger and integration expenses associated with acquisitions. Return on average assets was 0.97 percent, return on average common equity was 7.87 percent and return on average tangible common equity was 14.33 percent for the full year of 2022.
Adjusted earnings for the fourth quarter of 2022 were $81.1 million, compared to $82.3 million for the third quarter of 2022 and $76.2 million in the fourth quarter of 2021. Adjusted earnings for the full year of 2022 were a record $298.6 million, compared to $295.1 million for the full year of 2021. The table below provides a summary of certain items, consisting primarily of merger related costs, branch right-sizing costs, Day 2 accounting provision in connection with acquisitions and other items, and their corresponding impact on quarterly and annual results.
Total revenue for the fourth quarter of 2022 was $237.7 million, compared to $236.6 million in the third quarter for 2022 and $199.7 million in the fourth quarter of 2021. Pre-provision net revenue totaled $95.2 million, compared to $97.7 million in the third quarter of 2022 and $58.4 million in the fourth quarter of 2021. Total revenue for 2022 was a record $887.4 million and pre-provision net revenue was $320.9 million, up 13 percent compared to $284.3 million recorded in 2021.
Impact of Certain Items on Earnings and Diluted EPS
| ||||||
$ in millions, except per share data | Q4 22 | Q3 22 | Q4 21 | FY 22 | FY 21 | |
Net income | $83.3 | $80.6 | $48.2 | $256.4 | $271.2 | |
Merger related costs | - | 1.4 | 13.6 | 22.5 | 15.9 | |
Day 2 CECL provision | - | - | 22.7 | 33.8 | 22.7 | |
Branch right sizing costs, net | 1.1 | 1.3 | 1.6 | 3.6 | (0.9) | |
Gain on insurance settlement | (4.1) | - | - | (4.1) | - | |
Loss from early retirement of TruPS | - | 0.4 | - | 0.4 | - | |
Gain on sale of intellectual property | - | (0.8) | - | (0.8) | - | |
Gain on sale of branches | - | - | - | - | (5.3) | |
Donation to Simmons First Foundation | - | - | - | 1.7 | - | |
Tax effect (3) | 0.8 | (0.6) | (9.9) | (14.9) | (8.5) | |
Total impact on earnings | (2.2) | 1.7 | 28.0 | 42.2 | 23.9 | |
Adjusted earnings (1) | $81.1 | $82.3 | $76.2 | $298.6 | $295.1 | |
Diluted EPS | $ 0.65 | $ 0.63 | $ 0.42 | $2.06 | $2.46 | |
Merger related costs | - | 0.01 | 0.12 | 0.18 | 0.15 | |
Day 2 CECL provision | - | - | 0.20 | 0.28 | 0.21 | |
Branch right sizing costs, net | 0.01 | 0.01 | 0.01 | 0.03 | (0.01) | |
Gain on insurance settlement | (0.03) | - | - | (0.03) | - | |
Loss from early retirement of TruPS | - | - | - | - | - | |
Gain on sale of intellectual property | - | (0.1) | - | (0.1) | - | |
Gain on sale of branches | - | - | - | - | (0.5) | |
Donation to Simmons First Foundation | - | - | - | 0.01 | - | |
Tax effect (3) | 0.01 | - | (0.08) | (0.12) | (0.08) | |
Total impact on earnings | (0.01) | 0.01 | 0.25 | 0.34 | 0.22 | |
Adjusted diluted EPS(1) | $0.64 | $0.64 | $0.67 | $2.40 | $2.68 | |
Average diluted shares outstanding (in thousands) |
127,506 |
128,336 |
114,491 |
124,470 |
110,198 | |
Net Interest Income
Net interest income for the fourth quarter of 2022 totaled $193.0 million, relatively unchanged from third quarter 2022 levels and up 26 percent compared to the fourth quarter of 2021. Included in net interest income is accretion recognized on assets acquired, which totaled $4.5 million in the fourth quarter of 2022 and $5.8 million in both the third quarter of 2022 and fourth quarter of 2021. Also included is net interest income from Paycheck Protection Program (PPP) loans totaling $0.1 million in the fourth quarter of 2022, $0.2 million in the third quarter of 2022 and $5.1 million in the fourth quarter of 2021. On a linked quarter basis, interest income increased $34.0 million, or 15 percent, while interest expense increased $34.5 million. The increase in interest expense reflected the continued impact of higher interest rates, as well as a strategic decision to extend the duration of certain wholesale deposit maturities to reduce funding cost rate sensitivity.
The yield on loans for the fourth quarter of 2022 was 5.40 percent, compared to 4.86 percent in the third quarter of 2022 and 4.58 percent in the fourth quarter of 2021. The yield on investment securities for the fourth quarter of 2022 was 2.68 percent, compared to 2.29 percent in the third quarter of 2022 and 1.74 percent in the fourth quarter of 2021. Cost of deposits for the fourth quarter of 2022 was 102 basis points, reflecting the higher interest rate environment, an increase in higher-rate time deposits and the strategic decision to extend the duration of certain wholesale deposit maturities that required prefunding cost to carry for a portion of the quarter. The net interest margin on a fully taxable equivalent basis for the fourth quarter of 2022 was 3.31 percent, compared to 3.34 percent for the third quarter of 2022 and 2.86 percent for the fourth quarter of 2021.
Q4 22 | Q3 22 | Q2 22 | Q1 22 | Q4 21 | |
Loan yield (FTE) (2) | 5.40 % | 4.86 % | 4.54 % | 4.34 % | 4.58 % |
Investment securities yield (FTE) (2) | 2.68 | 2.29 | 2.08 | 1.86 | 1.74 |
Cost of interest bearing deposits | 1.41 | 0.65 | 0.25 | 0.19 | 0.23 |
Cost of deposits | 1.02 | 0.47 | 0.18 | 0.14 | 0.17 |
Cost of borrowed funds | 3.92 | 2.66 | 2.13 | 1.94 | 1.95 |
Net interest spread (FTE) (2) | 2.87 | 3.11 | 3.11 | 2.66 | 2.74 |
Net interest margin (FTE) (2) | 3.31 | 3.34 | 3.24 | 2.76 | 2.86 |
Net interest margin (FTE) excluding PPP (1) (2) |
3.31 |
3.34 |
3.21 |
2.74 |
2.79 |
Noninterest Income
Noninterest income for the fourth quarter of 2022 was $44.6 million, compared to $43.0 million in the third quarter of 2022 and $46.6 million in the fourth quarter of 2021. Included in fourth quarter 2022 results is a $4.1 million gain on an insurance settlement related to a weather event that caused severe damage to one of our branch locations. The fourth quarter of 2021 included a $3.1 million gain in connection with a legal settlement. Adjusted noninterest income for the fourth quarter of 2022 was $40.6 million, compared to $42.7 million for the third quarter of 2022 and $46.6 million for the fourth quarter of 2021. The decrease in adjusted noninterest income on both a linked quarter basis and a year-over-year basis was primarily attributable to a decline in mortgage lending income, resulting from reduced activity throughout the housing industry given the dramatic increase in interest rates.
Noninterest Income $ in millions | Q4 22 | Q3 22 | Q2 22 | Q1 22 | Q4 21 |
Service charges on deposit accounts | $ 11.9 | $ 12.6 | $ 11.4 | $ 10.7 | $ 11.9 |
Wealth management fees | 8.2 | 8.6 | 7.2 | 8.0 | 8.0 |
Debit and credit card fees | 7.8 | 7.7 | 8.2 | 7.4 | 7.5 |
Mortgage lending income | 1.1 | 2.6 | 2.2 | 4.6 | 5.0 |
Other service charges and fees | 2.0 | 2.1 | 1.9 | 1.6 | 1.8 |
Bank owned life insurance | 3.0 | 2.9 | 2.6 | 2.7 | 2.8 |
Gain (loss) on sale of securities | (0.1) | - | (0.2) | (0.1) | (0.3) |
Gain on insurance settlement | 4.1 | - | - | - | - |
Other income | 6.6 | 6.7 | 6.8 | 7.3 | 10.0 |
Adjusted other income (1) | 6.6 | 6.3 | 6.9 | 7.3 | 10.0 |
Noninterest Expense
Noninterest expense for the fourth quarter of 2022 was $142.6 million, compared to $138.9 million in the third quarter of 2022 and $141.6 million in the fourth quarter of 2021. Included in noninterest expense are certain items, primarily consisting of merger related and branch right sizing costs, totaling $1.1 million in the fourth quarter of 2022, $2.6 million in the third quarter of 2022 and $15.2 million in the fourth quarter of 2021. Excluding these items (which are described in the "Reconciliation of Non-GAAP Financial Measures" tables below), adjusted noninterest expense was $141.4 million in the fourth quarter of 2022, $136.4 million in the third quarter of 2022 and $126.4 million in the fourth quarter of 2021. The increase in adjusted noninterest expense on a linked quarter basis was primarily due to an increase in FDIC deposit assessment, state banking assessment and salaries and employee benefits which reflected certain incentive compensation accrual adjustments recorded in the third quarter of 2022. Expenses in the fourth quarter also included the amortization of certain tax credits, the offset of which is recorded in provision for income taxes. The increase in adjusted noninterest expense compared to the fourth quarter of 2021 primarily reflects the addition of Spirit of Texas Bancshares, Inc. (Spirit).
Noninterest Expense $ in millions | Q4 22 | Q3 22 | Q2 22 | Q1 22 | Q4 21 |
Salaries and employee benefits | $73.0 | $71.9 | $74.1 | $67.9 | $63.8 |
Occupancy expense, net | 11.6 | 11.7 | 11.0 | 10.0 | 11.0 |
Furniture and equipment | 5.4 | 5.4 | 5.1 | 4.8 | 4.7 |
Deposit insurance | 3.7 | 3.3 | 2.8 | 1.8 | 2.1 |
Other real estate and foreclosure expense | 0.4 | 0.2 | 0.1 | 0.3 | 0.6 |
Merger related costs | - | 1.4 | 19.1 | 1.9 | 13.6 |
Other operating expenses | 48.5 | 45.1 | 44.5 | 41.6 | 45.7 |
Adjusted salaries and employee benefits (1) | 73.0 | 71.9 | 74.1 | 67.9 | 63.8 |
Adjusted other operating expenses (1) | 47.5 | 44.1 | 42.7 | 40.9 | 45.8 |
Efficiency ratio | 58.33 % | 57.22 % | 67.77 % | 66.39 % | 68.98 % |
Adjusted efficiency ratio (1) | 56.97 % | 54.41 % | 56.74 % | 62.95 % | 59.48 % |
Loans and Unfunded Loan Commitments
Total loans at the end of the fourth quarter of 2022 were $16.1 billion, up $535 million, or 3 percent, compared to $15.6 billion at the end of the third quarter of 2022. On a year-over-year basis, total loans were up $4.1 billion, or 34 percent, reflecting widespread loan growth throughout our geographic markets and in each of our core banking units, coupled with the acquisition of Spirit that was completed early in the second quarter of 2022. The increase in total loans more than offset declines in PPP loans, mortgage warehouse lending and planned declines in our energy portfolio. Loan growth in the fourth quarter of 2022 was weighted toward the latter half of the quarter as period-end loans exceeded average total loans of $15.9 billion for the fourth quarter of 2022.
Unfunded commitments at the end of the fourth quarter of 2022 were $5.0 billion, compared to $5.1 billion at the end of the third quarter of 2022 and $2.9 billion at the end of the fourth quarter of 2021. While unfunded commitments are considered a key indicator of future loan growth, softening prospects of economic growth given current market conditions and increased concerns of a potential recession in the U.S. have resulted in lower activity in our commercial loan pipeline. As such, our emphasis remains on maintaining prudent underwriting standards and disciplined pricing strategies. Commercial loans approved and ready to close at the end of the fourth quarter of 2022 totaled $270 million and the rate on ready to close commercial loans was 6.85 percent, up 101 basis points from the rate on ready to close commercial loans at the end of the third quarter of 2022.
$ in millions | Q4 22 | Q3 22 | Q2 22 | Q1 22 | Q4 21 |
Total loans | $16,142 | $15,607 | $15,110 | $12,029 | $12,013 |
PPP loans | $ 9 | $ 12 | $ 19 | $ 62 | $117 |
Mortgage warehouse loans | 95 | 129 | 168 | 166 | 230 |
Energy loans | 53 | 55 | 55 | 48 | 105 |
Unfunded loan commitments | $5,000 | $5,138 | $4,473 | $3,428 | $2,943 |
Deposits
Total deposits at the end of the fourth quarter of 2022 were $22.5 billion, compared to $22.1 billion at the end of the third quarter of 2022 and $19.4 billion at the end of the fourth quarter of 2021. Noninterest bearing deposits totaled $6.0 billion at the end of the fourth quarter of 2022, compared to $6.2 billion at the end of the third quarter of 2022 and $5.3 billion at the end of the fourth quarter of 2021. Noninterest bearing deposits represent 27 percent of total deposits at the end of the fourth quarter of 2022, compared to 28 percent at the end of the third quarter of 2022 and 27 percent at the end of the fourth quarter of 2021. Interest bearing transaction accounts (checking, savings and money market accounts) totaled $11.8 billion at the end of the fourth quarter of 2022, compared to $12.1 billion at the end of the third quarter of 2022 and $11.6 billion at the end of the fourth quarter of 2021. Time deposits totaled $4.8 billion at the end of the fourth quarter of 2022, compared to $3.8 billion at the end of the third quarter of 2022 and $2.5 billion at the end of the fourth quarter of 2021. The change in mix of deposits on a linked quarter basis was primarily attributable to a strategic decision to extend the duration of certain wholesale deposit maturities to reduce funding cost rate sensitivity. The loan to deposit ratio ended the fourth quarter of 2022 at 72 percent, compared to 70 percent at the end of the third quarter of 2022 and 62 percent at the end of the fourth quarter of 2021.
$ in millions | Q4 22 | Q3 22 | Q2 22 | Q1 22 | Q4 21 |
Noninterest bearing deposits | $ 6,017 | $ 6,218 | $ 6,057 | $ 5,224 | $ 5,325 |
Interest bearing transaction accounts | 11,763 | 12,104 | 12,816 | 12,106 | 11,589 |
Time deposits | 4,768 | 3,827 | 3,163 | 2,062 | 2,453 |
Total deposits | $22,548 | $22,149 | $22,036 | $19,392 | $19,367 |
Noninterest bearing deposits to total deposits | 27 % | 28 % | 27 % | 27 % | 27 % |
Total loans to total deposits | 72 | 70 | 69 | 62 | 62 |
Asset Quality
During 2022, we experienced continuous improvement in a number of our key credit quality metrics, while also adding more than $4.1 billion in total loans. Total nonperforming loans at the end of the fourth quarter of 2022 were $58.9 million, compared to $57.8 million at the end of the third quarter of 2022 and $68.6 million at the end of the fourth quarter of 2021. Total nonperforming assets as a percentage of total assets were 0.23 percent at the end of the fourth quarter of 2022, compared to 0.23 percent at the end of the third quarter of 2022 and 0.31 percent at the end of the fourth quarter of 2021. Net charge-offs as a percentage of average loans for the fourth quarter of 2022 were 13 basis points, compared to 31 basis points for the fourth quarter of 2021. Loans acquired through acquisitions accounted for 6 of the 13 basis points of net charge-offs recorded in the fourth quarter of 2022. For the full year of 2022, net charge-offs were 9 basis points, compared to 13 basis points in 2021.
During 2022, provision for credit losses totaled $14.1 million, compared to provision recapture of $32.7 million in 2021. The allowance for credit losses on loans at the end of the fourth quarter of 2022 was $197.0 million, compared to $197.6 million at the end of the third quarter of 2022 and $205.3 million at the end of the fourth quarter of 2021. The nonperforming loan coverage ratio ended the quarter at 334 percent, compared to 342 percent at the end of the third quarter of 2022 and 300 percent at the end of the fourth quarter of 2021. The reserve for unfunded commitments totaled $41.9 million at the end of the fourth quarter of 2022, unchanged from third quarter 2022 levels and up from $22.4 million at the end of the fourth quarter of 2021.
$ in millions | Q4 22 | Q3 22 | Q2 22 | Q1 22 | Q4 21 |
Allowance for credit losses on loans to total loans |
1.22 % |
1.27 % |
1.41 % |
1.49 % |
1.71 % |
Allowance for credit losses on loans to nonperforming loans |
334 |
342 |
334 |
278 |
300 |
Nonperforming loans to total loans | 0.37 | 0.37 | 0.42 | 0.53 | 0.57 |
Net charge-off ratio (annualized) | 0.13 | - | 0.02 | 0.22 | 0.31 |
Net charge-off ratio YTD (annualized) | 0.09 | 0.07 | 0.11 | 0.22 | 0.13 |
Total nonperforming loans | $58.9 | $57.8 | $63.6 | $64.3 | $68.6 |
Total other nonperforming assets | 3.6 | 4.7 | 6.4 | 6.6 | 7.7 |
Total nonperforming assets | $62.5 | $62.5 | $70.0 | $70.9 | $76.3 |
Reserve for unfunded commitments | $41.9 | $41.9 | $25.9 | $22.4 | $22.4 |
Capital
Total common stockholders' equity at the end of the fourth quarter of 2022 was $3.3 billion, compared to $3.2 billion at the end of both the third quarter of 2022 and the fourth quarter of 2021. The increase in common stockholders' equity on a linked quarter basis reflected an increase in retained earnings and a decrease in the unrealized losses associated with investment securities classified as available-for-sale. Book value per share at the end of the fourth quarter of 2022 was $25.73, compared to $24.87 at the end of the third quarter of 2022 and $28.82 at the end of the fourth quarter of 2021. Tangible book value per share was $14.33 at the end of the fourth quarter of 2022, compared to $13.51 at the end of the third quarter of 2022 and $17.71 at the end of the fourth quarter of 2021. Stockholders' equity to total assets at December 31, 2022, was 11.9 percent, compared to 11.7 percent at September 30, 2022 and 13.1 percent at December 31, 2021. Tangible common equity to tangible assets was 7.0 percent at December 31, 2022, compared to 6.7 percent at September 30, 2022 and 8.5 percent at December 31, 2021. All of Simmons' regulatory capital ratios continue to significantly exceed "well-capitalized" guidelines.
Q4 22 | Q3 22 | Q2 22 | Q1 22 | Q4 21 | |
Stockholders' equity to total assets | 11.9 % | 11.7 % | 12.0 % | 12.1 % | 13.1 % |
Tangible common equity to tangible assets (1) |
7.0 |
6.7 |
7.0 |
7.4 |
8.5 |
Common equity tier 1 (CET1) ratio | 11.9 | 11.7 | 12.1 | 13.5 | 13.8 |
Tier 1 leverage ratio | 9.3 | 9.2 | 9.2 | 9.0 | 9.1 |
Tier 1 risk-based capital ratio | 11.9 | 11.7 | 12.1 | 13.5 | 13.8 |
Total risk-based capital ratio | 14.2 | 14.1 | 14.8 | 16.4 | 16.8 |
Share Repurchase Program and Cash Dividend
Simmons has a strong track record of returning capital to its shareholders through a strategic combination of cash dividends and share repurchases. During 2022, Simmons returned $205.1 million of capital to shareholders, including $94.1 million through the payment of cash dividends and $111.0 million through share repurchases. As a result of Simmons' solid capital position and its ability to organically generate capital, the board of directors declared a cash dividend on Simmons' Class A common stock for the first quarter of 2023 of $0.20 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 April 3, 2023, to shareholders of record as of March 15, 2023. The indicated annualized cash dividend rate of $0.80 for 2023 represents a ten-year compound annual growth rate of 7 percent and represents the 114th consecutive year that Simmons has paid cash dividends. According to research by Dividend Power, Simmons is one of only 24 U.S. publicly traded companies that have paid dividends for 100+ uninterrupted years. This marks the 12th consecutive year that Simmons has increased its dividend, earning it Dividend Power's designation as a "Dividend Contender," a title exclusively for companies that have increased their dividend for 10 to 24 consecutive years. As of December 16, 2022, Dividend Power research noted that Simmons is one of only 347 companies out of nearly 6,000 companies listed on the New York Stock Exchange (NYSE) and NASDAQ in 2022 to achieve this distinction.
During the fourth quarter of 2022, Simmons did not repurchase shares under its 2022 stock repurchase program (2022 Program). Remaining authorization under the 2022 Program as of December 31, 2022, was approximately $80 million. Market conditions and our capital needs will drive the decision regarding future stock repurchases; the timing, pricing and amount of any repurchases under the 2022 Program will be determined by Simmons' management at its discretion; and the 2022 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 using an effective tax rate of 26.135% |
(3) | 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, Tuesday, January 24, 2023. 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 10174103. 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 CorporationSimmons First National Corporation (NASDAQ: SFNC) is a Mid-South based financial holding company that has paid cash dividends to its shareholders for 114 consecutive years. Its principal subsidiary, Simmons Bank, operates 230 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 2022, Simmons Bank was named to Forbes' list of "America's Best Banks" for the second consecutive year and was named to Forbes' list of "World's Best Banks" for the third consecutive year. Additional information about Simmons Bank can be found on our website at simmonsbank.com, by following @Simmons_Bank on Twitter or by visiting our newsroom.
Non-GAAP Financial MeasuresThis 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 merger activity (primarily including merger-related expenses and Day 2 CECL provisions), gains and/or losses on sale of branches, net branch right-sizing initiatives, loss on redemption of trust preferred securities and gain on sale of intellectual property. In addition, the Company also presents certain figures based on tangible common stockholders' equity, tangible assets and tangible book value, which exclude goodwill and other intangible assets. The Company further presents certain figures that are exclusive of the impact of PPP loans, 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, the effects of the PPP, 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 StatementsCertain 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 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 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 and related governmental policies, loan demand, deposit flows, real estate values, the assumptions used in making the forward-looking statements, the securities markets generally or the price of Simmons' common stock specifically, and information technology affecting the financial industry; the effect of steps the Company takes and has taken in response to the COVID-19 pandemic; the severity and duration of the COVID-19 pandemic 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; 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 conflict between Russia and Ukraine) or other major events, or the prospect of these events; increased inflation; the loss of key employees; increased competition in the markets in which the Company operates; 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 those transactions; 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, 2021, 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 of Simmons will approve a quarterly dividend in future quarters, and the timing, payment, and amount of future dividends (if any) may differ significantly from past dividends.
Simmons First National Corporation | SFNC | ||||
Consolidated End of Period Balance Sheets | |||||
For the Quarters Ended | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 |
(Unaudited) | 2022 | 2022 | 2022 | 2022 | 2021 |
($ in thousands) | |||||
ASSETS | |||||
Cash and noninterest bearing balances due from banks | $ 200,616 | $ 175,547 | $ 193,473 | $ 195,510 | $ 209,190 |
Interest bearing balances due from banks and federal funds sold | 481,506 | 503,863 | 771,374 | 1,491,507 | 1,441,463 |
Cash and cash equivalents | 682,122 | 679,410 | 964,847 | 1,687,017 | 1,650,653 |
Interest bearing balances due from banks - time | 795 | 1,290 | 1,535 | 1,857 | 1,882 |
Investment securities - held-to-maturity | 3,759,706 | 3,787,076 | 3,819,682 | 1,556,825 | 1,529,221 |
Investment securities - available-for-sale | 3,852,854 | 3,937,543 | 4,341,647 | 6,640,069 | 7,113,545 |
Mortgage loans held for sale | 3,486 | 12,759 | 14,437 | 18,206 | 36,356 |
Other loans held for sale | - | 2,292 | 16,375 | - | 100 |
Loans: | |||||
Loans | 16,142,124 | 15,607,135 | 15,110,344 | 12,028,593 | 12,012,503 |
Allowance for credit losses on loans | (196,955) | (197,589) | (212,611) | (178,924) | (205,332) |
Net loans | 15,945,169 | 15,409,546 | 14,897,733 | 11,849,669 | 11,807,171 |
Premises and equipment | 548,741 | 549,932 | 553,062 | 486,531 | 483,469 |
Foreclosed assets and other real estate owned | 2,887 | 3,612 | 4,084 | 5,118 | 6,032 |
Interest receivable | 102,892 | 86,637 | 82,332 | 69,357 | 72,990 |
Bank owned life insurance | 491,340 | 488,364 | 486,355 | 448,011 | 445,305 |
Goodwill | 1,319,598 | 1,309,000 | 1,310,528 | 1,147,007 | 1,146,007 |
Other intangible assets | 128,951 | 133,059 | 137,285 | 102,748 | 106,235 |
Other assets | 622,520 | 675,554 | 588,707 | 469,853 | 325,793 |
Total assets | $ 27,461,061 | $ 27,076,074 | $ 27,218,609 | $ 24,482,268 | $ 24,724,759 |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Deposits: | |||||
Noninterest bearing transaction accounts | $ 6,016,651 | $ 6,218,283 | $ 6,057,186 | $ 5,223,862 | $ 5,325,318 |
Interest bearing transaction accounts and savings deposits | 11,762,885 | 12,103,994 | 12,816,198 | 12,105,948 | 11,588,770 |
Time deposits | 4,768,558 | 3,826,415 | 3,162,479 | 2,062,612 | 2,452,460 |
Total deposits | 22,548,094 | 22,148,692 | 22,035,863 | 19,392,422 | 19,366,548 |
Federal funds purchased and securities sold | |||||
under agreements to repurchase | 160,403 | 168,513 | 155,101 | 196,828 | 185,403 |
Other borrowings | 859,296 | 964,772 | 1,060,244 | 1,337,243 | 1,337,973 |
Subordinated notes and debentures | 365,989 | 365,951 | 421,693 | 384,242 | 384,131 |
Accrued interest and other liabilities | 257,917 | 270,995 | 285,813 | 209,926 | 201,863 |
Total liabilities | 24,191,699 | 23,918,923 | 23,958,714 | 21,520,661 | 21,475,918 |
Stockholders' equity: | |||||
Preferred stock | - | - | - | - | - |
Common stock | 1,270 | 1,269 | 1,288 | 1,125 | 1,127 |
Surplus | 2,530,066 | 2,527,153 | 2,569,060 | 2,150,453 | 2,164,989 |
Undivided profits | 1,255,586 | 1,196,459 | 1,139,975 | 1,136,990 | 1,093,270 |
Accumulated other comprehensive (loss) income: | |||||
Unrealized (depreciation) appreciation on AFS securities | (517,560) | (567,730) | (450,428) | (326,961) | (10,545) |
Total stockholders' equity | 3,269,362 | 3,157,151 | 3,259,895 | 2,961,607 | 3,248,841 |
Total liabilities and stockholders' equity | $ 27,461,061 | $ 27,076,074 | $ 27,218,609 | $ 24,482,268 | $ 24,724,759 |
Simmons First National Corporation | SFNC | ||||
Consolidated Statements of Income - Quarter-to-Date | |||||
For the Quarters Ended | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 |
(Unaudited) | 2022 | 2022 | 2022 | 2022 | 2021 |
($ in thousands, except per share data) | |||||
INTEREST INCOME | |||||
Loans (including fees) | $ 216,091 | $ 187,347 | $ 163,578 | $ 127,176 | $ 137,564 |
Interest bearing balances due from banks and federal funds sold | 2,593 | 1,141 | 1,117 | 649 | 583 |
Investment securities | 45,689 | 40,954 | 37,848 | 33,712 | 32,275 |
Mortgage loans held for sale | 152 | 178 | 200 | 190 | 310 |
Other loans held for sale | 59 | 998 | 2,063 | - | - |
TOTAL INTEREST INCOME | 264,584 | 230,618 | 204,806 | 161,727 | 170,732 |
INTEREST EXPENSE | |||||
Time deposits | 22,434 | 8,204 | 2,875 | 2,503 | 3,705 |
Other deposits | 34,615 | 17,225 | 6,879 | 4,314 | 4,390 |
Federal funds purchased and securities | |||||
sold under agreements to repurchase | 449 | 305 | 119 | 68 | 72 |
Other borrowings | 9,263 | 6,048 | 4,844 | 4,779 | 4,903 |
Subordinated notes and debentures | 4,797 | 5,251 | 4,990 | 4,457 | 4,581 |
TOTAL INTEREST EXPENSE | 71,558 | 37,033 | 19,707 | 16,121 | 17,651 |
NET INTEREST INCOME | 193,026 | 193,585 | 185,099 | 145,606 | 153,081 |
Provision for credit losses | 26 | 103 | 33,859 | (19,914) | (1,308) |
NET INTEREST INCOME AFTER PROVISION | |||||
FOR CREDIT LOSSES | 193,000 | 193,482 | 151,240 | 165,520 | 154,389 |
NONINTEREST INCOME | |||||
Service charges on deposit accounts | 11,892 | 12,560 | 11,379 | 10,696 | 11,909 |
Debit and credit card fees | 7,845 | 7,685 | 8,224 | 7,449 | 7,460 |
Wealth management fees | 8,151 | 8,562 | 7,214 | 7,968 | 8,042 |
Mortgage lending income | 1,139 | 2,593 | 2,240 | 4,550 | 5,043 |
Bank owned life insurance income | 2,975 | 2,902 | 2,563 | 2,706 | 2,768 |
Other service charges and fees (includes insurance income) | 2,023 | 2,085 | 1,871 | 1,637 | 1,762 |
Gain (loss) on sale of securities | (52) | (22) | (150) | (54) | (348) |
Gain on insurance settlement | 4,074 | - | - | - | - |
Other income | 6,600 | 6,658 | 6,837 | 7,266 | 9,965 |
TOTAL NONINTEREST INCOME | 44,647 | 43,023 | 40,178 | 42,218 | 46,601 |
NONINTEREST EXPENSE | |||||
Salaries and employee benefits | 73,018 | 71,923 | 74,135 | 67,906 | 63,832 |
Occupancy expense, net | 11,620 | 11,674 | 11,004 | 10,023 | 11,033 |
Furniture and equipment expense | 5,392 | 5,394 | 5,104 | 4,775 | 4,721 |
Other real estate and foreclosure expense | 350 | 168 | 142 | 343 | 576 |
Deposit insurance | 3,680 | 3,278 | 2,812 | 1,838 | 2,108 |
Merger-related costs | 35 | 1,422 | 19,133 | 1,886 | 13,591 |
Other operating expenses | 48,480 | 45,084 | 44,483 | 41,646 | 45,736 |
TOTAL NONINTEREST EXPENSE | 142,575 | 138,943 | 156,813 | 128,417 | 141,597 |
NET INCOME BEFORE INCOME TAXES | 95,072 | 97,562 | 34,605 | 79,321 | 59,393 |
Provision for income taxes | 11,812 | 16,959 | 7,151 | 14,226 | 11,155 |
NET INCOME | 83,260 | 80,603 | 27,454 | 65,095 | 48,238 |
Preferred stock dividends | - | - | - | - | 8 |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ 83,260 | $ 80,603 | $ 27,454 | $ 65,095 | $ 48,230 |
BASIC EARNINGS PER SHARE | $ 0.66 | $ 0.63 | $ 0.21 | $ 0.58 | $ 0.42 |
DILUTED EARNINGS PER SHARE | $ 0.65 | $ 0.63 | $ 0.21 | $ 0.58 | $ 0.42 |
Simmons First National Corporation | SFNC | ||||
Consolidated Risk-Based Capital | |||||
For the Quarters Ended | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 |
(Unaudited) | 2022 | 2022 | 2022 | 2022 | 2021 |
($ in thousands) | |||||
Tier 1 capital | |||||
Stockholders' equity | $ 3,269,362 | $ 3,157,151 | $ 3,259,895 | $ 2,961,607 | $ 3,248,841 |
CECL transition provision (1) | 92,619 | 92,619 | 92,619 | 92,619 | 114,458 |
Disallowed intangible assets, net of deferred tax | (1,412,667) | (1,416,453) | (1,423,323) | (1,224,691) | (1,226,686) |
Unrealized loss (gain) on AFS securities | 517,560 | 567,730 | 450,428 | 326,961 | 10,545 |
Total Tier 1 capital | 2,466,874 | 2,401,047 | 2,379,619 | 2,156,496 | 2,147,158 |
Tier 2 capital | |||||
Subordinated notes and debentures | 365,989 | 365,951 | 421,693 | 384,242 | 384,131 |
Qualifying allowance for loan losses and | |||||
reserve for unfunded commitments | 115,627 | 116,257 | 114,733 | 78,057 | 71,853 |
Total Tier 2 capital | 481,616 | 482,208 | 536,426 | 462,299 | 455,984 |
Total risk-based capital | $ 2,948,490 | $ 2,883,255 | $ 2,916,045 | $ 2,618,795 | $ 2,603,142 |
Risk weighted assets | $ 20,738,727 | $ 20,470,918 | $ 19,669,149 | $ 15,953,622 | $ 15,538,967 |
Adjusted average assets for leverage ratio | $ 26,407,061 | $ 25,986,938 | $ 25,807,113 | $ 23,966,206 | $ 23,647,901 |
Ratios at end of quarter | |||||
Equity to assets | 11.91 % | 11.66 % | 11.98 % | 12.10 % | 13.14 % |
Tangible common equity to tangible assets (2) | 7.00 % | 6.69 % | 7.03 % | 7.37 % | 8.51 % |
Common equity Tier 1 ratio (CET1) | 11.90 % | 11.73 % | 12.10 % | 13.52 % | 13.82 % |
Tier 1 leverage ratio | 9.34 % | 9.24 % | 9.22 % | 9.00 % | 9.08 % |
Tier 1 risk-based capital ratio | 11.90 % | 11.73 % | 12.10 % | 13.52 % | 13.82 % |
Total risk-based capital ratio | 14.22 % | 14.08 % | 14.83 % | 16.42 % | 16.75 % |
(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 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 |
(Unaudited) | 2022 | 2022 | 2022 | 2022 | 2021 |
($ in thousands) | |||||
Investment Securities - End of Period | |||||
Held-to-Maturity | |||||
U.S. Government agencies | $ 448,012 | $ 447,400 | $ 446,789 | $ 232,670 | $ 232,609 |
Mortgage-backed securities | 1,190,781 | 1,214,882 | 1,244,713 | 112,496 | 70,342 |
State and political subdivisions | 1,860,992 | 1,865,203 | 1,868,924 | 1,194,459 | 1,209,051 |
Other securities | 259,921 | 259,591 | 259,256 | 17,200 | 17,219 |
Total held-to-maturity (net of credit losses) | 3,759,706 | 3,787,076 | 3,819,682 | 1,556,825 | 1,529,221 |
Available-for-Sale | |||||
U.S. Treasury | $ 2,197 | $ 2,191 | $ 1,441 | $ - | $ 300 |
U.S. Government agencies | 184,279 | 188,060 | 198,333 | 333,231 | 364,641 |
Mortgage-backed securities | 2,542,902 | 2,670,348 | 2,963,934 | 4,166,108 | 4,448,616 |
State and political subdivisions | 871,074 | 822,509 | 915,255 | 1,653,694 | 1,819,658 |
Other securities | 252,402 | 254,435 | 262,684 | 487,036 | 480,330 |
Total available-for-sale (net of credit losses) | 3,852,854 | 3,937,543 | 4,341,647 | 6,640,069 | 7,113,545 |
Total investment securities (net of credit losses) | $ 7,612,560 | $ 7,724,619 | $ 8,161,329 | $ 8,196,894 | $ 8,642,766 |
Fair value - HTM investment securities | $ 3,063,233 | $ 2,984,040 | $ 3,278,962 | $ 1,307,058 | $ 1,517,378 |
Simmons First National Corporation | SFNC | ||||
Consolidated Loans | |||||
For the Quarters Ended | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 |
(Unaudited) | 2022 | 2022 | 2022 | 2022 | 2021 |
($ in thousands) | |||||
Loan Portfolio - End of Period | |||||
Consumer: | |||||
Credit cards | $ 196,928 | $ 192,559 | $ 189,684 | $ 184,372 | $ 187,052 |
Other consumer | 152,882 | 180,604 | 204,692 | 180,602 | 168,318 |
Total consumer | 349,810 | 373,163 | 394,376 | 364,974 | 355,370 |
Real Estate: | |||||
Construction | 2,566,649 | 2,372,294 | 2,082,688 | 1,423,445 | 1,326,371 |
Single-family residential | 2,546,115 | 2,467,008 | 2,357,942 | 2,042,978 | 2,101,975 |
Other commercial real estate | 7,468,498 | 7,249,891 | 7,082,055 | 5,762,567 | 5,738,904 |
Total real estate | 12,581,262 | 12,089,193 | 11,522,685 | 9,228,990 | 9,167,250 |
Commercial: | |||||
Commercial | 2,632,290 | 2,525,218 | 2,612,256 | 2,016,405 | 1,992,043 |
Agricultural | 205,623 | 263,539 | 218,743 | 150,465 | 168,717 |
Total commercial | 2,837,913 | 2,788,757 | 2,830,999 | 2,166,870 | 2,160,760 |
Other | 373,139 | 356,022 | 362,284 | 267,759 | 329,123 |
Total loans | $ 16,142,124 | $ 15,607,135 | $ 15,110,344 | $ 12,028,593 | $ 12,012,503 |
Simmons First National Corporation | SFNC | ||||
Consolidated Allowance and Asset Quality | |||||
For the Quarters Ended | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 |
(Unaudited) | 2022 | 2022 | 2022 | 2022 | 2021 |
($ in thousands) | |||||
Allowance for Credit Losses on Loans | |||||
Beginning balance | $ 197,589 | $ 212,611 | $ 178,924 | $ 205,332 | $ 202,508 |
Day 1 PCD allowance from acquisitions: | |||||
Landmark (10/08/2021) | - | - | - | - | 2,359 |
Triumph (10/08/2021) | - | - | - | - | 11,092 |
Spirit of Texas (04/08/2022) | 4,523 | 1,057 | 4,043 | - | - |
Total Day 1 PCD allowance | 4,523 | 1,057 | 4,043 | - | 13,451 |
Loans charged off: | |||||
Credit cards | 1,035 | 903 | 1,004 | 920 | 865 |
Other consumer | 439 | 505 | 518 | 414 | 477 |
Real estate | 3,392 | 130 | 115 | 485 | 2,624 |
Commercial | 5,389 | 1,874 | 688 | 6,319 | 8,513 |
Total loans charged off | 10,255 | 3,412 | 2,325 | 8,138 | 12,479 |
Recoveries of loans previously charged off: | |||||
Credit cards | 251 | 250 | 249 | 274 | 247 |
Other consumer | 230 | 278 | 302 | 387 | 267 |
Real estate | 4,117 | 1,982 | 391 | 426 | 916 |
Commercial | 475 | 720 | 621 | 557 | 1,730 |
Total recoveries | 5,073 | 3,230 | 1,563 | 1,644 | 3,160 |
Net loans charged off | 5,182 | 182 | 762 | 6,494 | 9,319 |
Provision for credit losses on loans | 25 | (15,897) | 30,406 | (19,914) | (1,308) |
Balance, end of quarter | $ 196,955 | $ 197,589 | $ 212,611 | $ 178,924 | $ 205,332 |
Nonperforming assets | |||||
Nonperforming loans: | |||||
Nonaccrual loans | $ 58,434 | $ 57,534 | $ 62,670 | $ 64,096 | $ 68,204 |
Loans past due 90 days or more | 507 | 242 | 904 | 240 | 349 |
Total nonperforming loans | 58,941 | 57,776 | 63,574 | 64,336 | 68,553 |
Other nonperforming assets: | |||||
Foreclosed assets and other real estate owned | 2,887 | 3,612 | 4,084 | 5,118 | 6,032 |
Other nonperforming assets | 644 | 1,146 | 2,314 | 1,479 | 1,667 |
Total other nonperforming assets | 3,531 | 4,758 | 6,398 | 6,597 | 7,699 |
Total nonperforming assets | $ 62,472 | $ 62,534 | $ 69,972 | $ 70,933 | $ 76,252 |
Performing TDRs (troubled debt restructurings) | $ 1,849 | $ 1,869 | $ 2,655 | $ 3,424 | $ 4,289 |
Ratios | |||||
Allowance for credit losses on loans to total loans | 1.22 % | 1.27 % | 1.41 % | 1.49 % | 1.71 % |
Allowance for credit losses to nonperforming loans | 334 % | 342 % | 334 % | 278 % | 300 % |
Nonperforming loans to total loans | 0.37 % | 0.37 % | 0.42 % | 0.53 % | 0.57 % |
Nonperforming assets (including performing TDRs) | |||||
to total assets | 0.23 % | 0.24 % | 0.27 % | 0.30 % | 0.33 % |
Nonperforming assets to total assets | 0.23 % | 0.23 % | 0.26 % | 0.29 % | 0.31 % |
Annualized net charge offs to average loans (QTD) | 0.13 % | 0.00 % | 0.02 % | 0.22 % | 0.31 % |
Annualized net charge offs to average loans (YTD) | 0.09 % | 0.07 % | 0.11 % | 0.22 % | 0.13 % |
Annualized net credit card charge offs to | |||||
average credit card loans | 1.52 % | 1.30 % | 1.55 % | 1.39 % | 1.29 % |
Simmons First National Corporation | SFNC | ||||||||||
Consolidated - Average Balance Sheet and Net Interest Income Analysis | |||||||||||
For the Quarters Ended | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | |||||||||
($ in thousands) | Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||
ASSETS | |||||||||||
Earning assets: | |||||||||||
Interest bearing balances due from banks | |||||||||||
and federal funds sold | $ 361,856 | $ 2,593 | 2.84 % | $ 327,841 | $ 1,141 | 1.38 % | $ 1,484,752 | $ 583 | 0.16 % | ||
Investment securities - taxable | 5,085,960 | 29,645 | 2.31 % | 5,408,189 | 24,848 | 1.82 % | 5,790,429 | 17,186 | 1.18 % | ||
Investment securities - non-taxable (FTE) | 2,582,050 | 22,123 | 3.40 % | 2,665,515 | 21,805 | 3.25 % | 2,787,301 | 20,470 | 2.91 % | ||
Mortgage loans held for sale | 8,601 | 152 | 7.01 % | 13,280 | 178 | 5.32 % | 42,866 | 310 | 2.87 % | ||
Other loans held for sale | 1,704 | 59 | 13.74 % | 9,439 | 998 | 41.95 % | - | - | 0.00 % | ||
Loans - including fees (FTE) | 15,929,957 | 216,782 | 5.40 % | 15,320,833 | 187,851 | 4.86 % | 11,924,444 | 137,762 | 4.58 % | ||
Total interest earning assets (FTE) | 23,970,128 | 271,354 | 4.49 % | 23,745,097 | 236,821 | 3.96 % | 22,029,792 | 176,311 | 3.18 % | ||
Non-earning assets | 3,210,447 | 3,123,634 | 2,668,230 | ||||||||
Total assets | $ 27,180,575 | $ 26,868,731 | $ 24,698,022 | ||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Interest bearing liabilities: | |||||||||||
Interest bearing transaction and | |||||||||||
savings accounts | $ 11,859,322 | $ 34,615 | 1.16 % | $ 12,264,655 | $ 17,225 | 0.56 % | $ 11,413,325 | $ 4,390 | 0.15 % | ||
Time deposits | 4,212,271 | 22,434 | 2.11 % | 3,314,948 | 8,204 | 0.98 % | 2,607,011 | 3,705 | 0.56 % | ||
Total interest bearing deposits | 16,071,593 | 57,049 | 1.41 % | 15,579,603 | 25,429 | 0.65 % | 14,020,336 | 8,095 | 0.23 % | ||
Federal funds purchased and securities | |||||||||||
sold under agreement to repurchase | 178,948 | 449 | 1.00 % | 196,047 | 305 | 0.62 % | 223,008 | 72 | 0.13 % | ||
Other borrowings | 923,189 | 9,263 | 3.98 % | 1,123,797 | 6,048 | 2.14 % | 1,340,825 | 4,903 | 1.45 % | ||
Subordinated notes and debentures | 365,971 | 4,797 | 5.20 % | 411,018 | 5,251 | 5.07 % | 383,489 | 4,581 | 4.74 % | ||
Total interest bearing liabilities | 17,539,701 | 71,558 | 1.62 % | 17,310,465 | 37,033 | 0.85 % | 15,967,658 | 17,651 | 0.44 % | ||
Noninterest bearing liabilities: | |||||||||||
Noninterest bearing deposits | 6,161,732 | 6,022,899 | 5,288,933 | ||||||||
Other liabilities | 264,230 | 243,296 | 179,362 | ||||||||
Total liabilities | 23,965,663 | 23,576,660 | 21,435,953 | ||||||||
Stockholders' equity | 3,214,912 | 3,292,071 | 3,262,069 | ||||||||
Total liabilities and stockholders' equity | $ 27,180,575 | $ 26,868,731 | $ 24,698,022 | ||||||||
Net interest income (FTE) | $ 199,796 | $ 199,788 | $ 158,660 | ||||||||
Net interest spread (FTE) | 2.87 % | 3.11 % | 2.74 % | ||||||||
Net interest margin (FTE) | 3.31 % | 3.34 % | 2.86 % | ||||||||
Simmons First National Corporation | SFNC | ||||
Consolidated - Selected Financial Data | |||||
For the Quarters Ended | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 |
(Unaudited) | 2022 | 2022 | 2022 | 2022 | 2021 |
($ in thousands, except share data) | |||||
QUARTER-TO-DATE | |||||
Financial Highlights - As Reported | |||||
Net Income | $ 83,260 | $ 80,603 | $ 27,454 | $ 65,095 | $ 48,230 |
Diluted earnings per share | 0.65 | 0.63 | 0.21 | 0.58 | 0.42 |
Return on average assets | 1.22 % | 1.19 % | 0.41 % | 1.06 % | 0.77 % |
Return on average common equity | 10.27 % | 9.71 % | 3.28 % | 8.33 % | 5.87 % |
Return on tangible common equity (non-GAAP) (1) | 19.29 % | 17.99 % | 6.28 % | 14.31 % | 9.98 % |
Net interest margin (FTE) | 3.31 % | 3.34 % | 3.24 % | 2.76 % | 2.86 % |
Efficiency ratio (2) | 58.33 % | 57.22 % | 67.77 % | 66.39 % | 68.98 % |
FTE adjustment | 6,770 | 6,203 | 6,096 | 5,602 | 5,579 |
Average diluted shares outstanding | 127,505,996 | 128,336,422 | 128,720,078 | 113,026,911 | 114,491,119 |
Shares repurchased under plan | - | 1,883,713 | 2,035,324 | 513,725 | 2,625,348 |
Average price of shares repurchased | - | 23.91 | 24.59 | 31.25 | 29.69 |
Cash dividends declared per common share | 0.190 | 0.190 | 0.190 | 0.190 | 0.180 |
Accretable yield on acquired loans | 4,473 | 5,834 | 9,898 | 3,703 | 5,758 |
Financial Highlights - Adjusted (non-GAAP) (1) | |||||
Adjusted earnings | $ 81,093 | $ 82,281 | $ 68,102 | $ 67,159 | $ 76,244 |
Adjusted diluted earnings per share | 0.64 | 0.64 | 0.53 | 0.59 | 0.67 |
Adjusted return on average assets | 1.18 % | 1.21 % | 1.02 % | 1.10 % | 1.22 % |
Adjusted return on average common equity | 10.01 % | 9.92 % | 8.13 % | 8.59 % | 9.27 % |
Adjusted return on tangible common equity | 18.81 % | 18.35 % | 14.65 % | 14.74 % | 15.49 % |
Adjusted efficiency ratio (2) | 56.97 % | 54.41 % | 56.74 % | 62.95 % | 59.48 % |
YEAR-TO-DATE | |||||
Financial Highlights - GAAP | |||||
Net Income | $ 256,412 | $ 173,152 | $ 92,549 | $ 65,095 | $ 271,109 |
Diluted earnings per share | 2.06 | 1.40 | 0.77 | 0.58 | 2.46 |
Return on average assets | 0.97 % | 0.88 % | 0.72 % | 1.06 % | 1.15 % |
Return on average common equity | 7.87 % | 7.07 % | 5.71 % | 8.33 % | 8.83 % |
Return on tangible common equity (non-GAAP) (1) | 14.33 % | 12.77 % | 10.24 % | 14.31 % | 14.99 % |
Net interest margin (FTE) | 3.17 % | 3.12 % | 3.01 % | 2.76 % | 2.89 % |
Efficiency ratio (2) | 62.14 % | 63.54 % | 67.14 % | 66.39 % | 60.25 % |
FTE adjustment | 24,671 | 17,901 | 11,698 | 5,602 | 19,231 |
Average diluted shares outstanding | 124,470,184 | 123,387,503 | 120,826,798 | 113,026,911 | 110,198,094 |
Cash dividends declared per common share | 0.760 | 0.570 | 0.380 | 0.190 | 0.720 |
Financial Highlights - Adjusted (non-GAAP) (1) | |||||
Adjusted earnings | $ 298,635 | $ 217,542 | $ 135,261 | $ 67,159 | $ 295,024 |
Adjusted diluted earnings per share | 2.40 | 1.76 | 1.12 | 0.59 | 2.68 |
Adjusted return on average assets | 1.13 % | 1.11 % | 1.06 % | 1.10 % | 1.26 % |
Adjusted return on average common equity | 9.16 % | 8.88 % | 8.35 % | 8.59 % | 9.61 % |
Adjusted return on tangible common equity | 16.59 % | 15.89 % | 14.70 % | 14.74 % | 16.27 % |
Adjusted efficiency ratio (2) | 57.50 % | 57.69 % | 59.56 % | 62.95 % | 57.92 % |
END OF PERIOD | |||||
Book value per share | $ 25.73 | $ 24.87 | $ 25.31 | $ 26.32 | $ 28.82 |
Tangible book value per share | 14.33 | 13.51 | 14.07 | 15.22 | 17.71 |
Shares outstanding | 127,046,654 | 126,943,467 | 128,787,764 | 112,505,555 | 112,715,444 |
Full-time equivalent employees | 3,236 | 3,206 | 3,233 | 2,893 | 2,877 |
Total number of financial centers | 230 | 230 | 233 | 197 | 199 |
(1) Non-GAAP measurement that management believes aids in the understanding and discussion of results. Reconciliations to GAAP are | |||||
included in the schedules accompanying this release. | |||||
(2) Efficiency ratio is noninterest expense as a percent of net interest income (fully taxable equivalent) and noninterest revenues. | |||||
Adjusted efficiency ratio is noninterest expense before foreclosed property expense, amortization of intangibles and certain adjusting | |||||
items as a percent of net interest income (fully taxable equivalent) and noninterest revenues, excluding gains and losses from | |||||
securities transactions and certain adjusting items, and is a non-GAAP measurement. | |||||
Simmons First National Corporation | SFNC | ||||
Reconciliation Of Non-GAAP Financial Measures - Adjusted Earnings - Quarter-to-Date | |||||
For the Quarters Ended | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 |
(Unaudited) | 2022 | 2022 | 2022 | 2022 | 2021 |
(in thousands, except per share data) | |||||
QUARTER-TO-DATE | |||||
Net income available to common stockholders | $ 83,260 | $ 80,603 | $ 27,454 | $ 65,095 | $ 48,230 |
Certain items: | |||||
(Gain) loss from early retirement of TruPS | - | 365 | - | - | - |
Gain on sale of intellectual property | - | (750) | - | - | - |
Gain on insurance settlement | (4,074) | - | - | - | - |
Donation to Simmons First Foundation | - | - | 1,738 | - | - |
Merger related costs | 35 | 1,422 | 19,133 | 1,886 | 13,591 |
Branch right sizing (net) | 1,104 | 1,235 | 380 | 909 | 1,648 |
Day 2 CECL provision | - | - | 33,779 | - | 22,688 |
Tax effect (1) | 768 | (594) | (14,382) | (731) | (9,913) |
Certain items, net of tax | (2,167) | 1,678 | 40,648 | 2,064 | 28,014 |
Adjusted earnings (non-GAAP) | $ 81,093 | $ 82,281 | $ 68,102 | $ 67,159 | $ 76,244 |
Diluted earnings per share | $ 0.65 | $ 0.63 | $ 0.21 | $ 0.58 | $ 0.42 |
Certain items: | |||||
(Gain) loss from early retirement of TruPS | - | - | - | - | - |
Gain on sale of intellectual property | - | (0.01) | - | - | - |
Gain on insurance settlement | (0.03) | ||||
Donation to Simmons First Foundation | - | - | 0.01 | - | - |
Merger related costs | - | 0.01 | 0.15 | 0.01 | 0.12 |
Branch right sizing (net) | 0.01 | 0.01 | - | 0.01 | 0.01 |
Day 2 CECL provision | - | - | 0.27 | 0.20 | |
Tax effect (1) | 0.01 | - | (0.11) | (0.01) | (0.08) |
Certain items, net of tax | (0.01) | 0.01 | 0.32 | 0.01 | 0.25 |
Adjusted diluted earnings per share (non-GAAP) | $ 0.64 | $ 0.64 | $ 0.53 | $ 0.59 | $ 0.67 |
(1) Effective tax rate of 26.135%. | |||||
Reconciliation of Certain Noninterest Income and Expense Items (non-GAAP) | |||||
QUARTER-TO-DATE | |||||
Noninterest income | $ 44,647 | $ 43,023 | $ 40,178 | $ 42,218 | $ 46,601 |
Certain noninterest income items (1) | |||||
Gain on insurance settlement | (4,074) | - | - | - | - |
(Gain) loss from early retirement of TruPS | - | 365 | - | - | - |
Gain on sale of intellectual property | - | (750) | - | - | - |
Gain on sale of branches | - | - | - | - | - |
Branch right sizing income | - | 65 | 88 | - | (2) |
Adjusted noninterest income (non-GAAP) | $ 40,573 | $ 42,703 | $ 40,266 | $ 42,218 | $ 46,599 |
Other income | $ 6,600 | $ 6,658 | $ 6,837 | $ 7,266 | $ 9,965 |
Certain other income items (1) | |||||
(Gain) loss from early retirement of TruPS | - | 365 | - | - | - |
Gain on sale of intellectual property | - | (750) | - | - | - |
Gain on sale of branches | - | - | - | - | - |
Branch right sizing income | - | 65 | 88 | - | (2) |
Adjusted other income (non-GAAP) | $ 6,600 | $ 6,338 | $ 6,925 | $ 7,266 | $ 9,963 |
Noninterest expense | $ 142,575 | $ 138,943 | $ 156,813 | $ 128,417 | $ 141,597 |
Certain noninterest expense items (1) | |||||
Merger related costs | (35) | (1,422) | (19,133) | (1,886) | (13,591) |
Donation to Simmons First Foundation | - | - | (1,738) | - | - |
Branch right sizing expense | (1,104) | (1,170) | (292) | (909) | (1,650) |
Adjusted noninterest expense (non-GAAP) | $ 141,436 | $ 136,351 | $ 135,650 | $ 125,622 | $ 126,356 |
Salaries and employee benefits | $ 73,018 | $ 71,923 | $ 74,135 | $ 67,906 | $ 63,832 |
Certain salaries and employee benefits items (1) | |||||
Early retirement program | - | - | - | - | - |
Change-in-control payments | - | - | - | - | - |
Adjusted salaries and employee benefits (non-GAAP) | $ 73,018 | $ 71,923 | $ 74,135 | $ 67,906 | $ 63,832 |
Other operating expenses | $ 48,480 | $ 45,084 | $ 44,483 | $ 41,646 | $ 45,736 |
Certain other operating expenses items (1) | |||||
Donation to Simmons First Foundation | - | - | (1,738) | - | - |
Branch right sizing expense | (953) | (973) | (7) | (717) | 96 |
Adjusted other operating expenses (non-GAAP) | $ 47,527 | $ 44,111 | $ 42,738 | $ 40,929 | $ 45,832 |
(1) Certain items include gain from early retirement of trust preferred securities, gain on sale of intellectual property, gain on | |||||
sale of branches, gain on insurance settlement, merger related costs, branch right sizing costs and Day 2 CECL provision. |
Simmons First National Corporation | SFNC | ||||
Reconciliation Of Non-GAAP Financial Measures - Adjusted Earnings - Year-to-Date | |||||
For the Quarters Ended | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 |
(Unaudited) | 2022 | 2022 | 2022 | 2022 | 2021 |
(in thousands, except per share data) | |||||
YEAR-TO-DATE | |||||
Net income available to common stockholders | $ 256,412 | $ 173,152 | $ 92,549 | $ 65,095 | $ 271,109 |
Certain items: | |||||
Gain on sale of branches | - | - | - | - | (5,316) |
(Gain) loss from early retirement of TruPS | 365 | 365 | - | - | - |
Gain on sale of intellectual property | (750) | (750) | - | - | - |
Gain on insurance settlement | (4,074) | - | - | - | - |
Donation to Simmons First Foundation | 1,738 | 1,738 | 1,738 | - | - |
Merger related costs | 22,476 | 22,441 | 21,019 | 1,886 | 15,911 |
Branch right sizing (net) | 3,628 | 2,524 | 1,289 | 909 | (906) |
Day 2 CECL provision | 33,779 | 33,779 | 33,779 | - | 22,688 |
Tax effect (1) | (14,939) | (15,707) | (15,113) | (731) | (8,462) |
Certain items, net of tax | 42,223 | 44,390 | 42,712 | 2,064 | 23,915 |
Adjusted earnings (non-GAAP) | $ 298,635 | $ 217,542 | $ 135,261 | $ 67,159 | $ 295,024 |
Diluted earnings per share | $ 2.06 | $ 1.40 | $ 0.77 | $ 0.58 | $ 2.46 |
Certain items: | |||||
Gain on sale of branches | - | - | - | - | (0.05) |
(Gain) loss from early retirement of TruPS | - | - | - | - | - |
Gain on sale of intellectual property | (0.01) | (0.01) | - | - | - |
Gain on insurance settlement | (0.03) | - | - | - | - |
Donation to Simmons First Foundation | 0.01 | 0.01 | 0.01 | - | - |
Merger related costs | 0.18 | 0.18 | 0.17 | 0.01 | 0.15 |
Branch right sizing (net) | 0.03 | 0.02 | 0.01 | 0.01 | (0.01) |
Day 2 CECL provision | 0.28 | 0.28 | 0.28 | 0.21 | |
Tax effect (1) | (0.12) | (0.12) | (0.12) | (0.01) | (0.08) |
Certain items, net of tax | 0.34 | 0.36 | 0.35 | 0.01 | 0.22 |
Adjusted diluted earnings per share (non-GAAP) | $ 2.40 | $ 1.76 | $ 1.12 | $ 0.59 | $ 2.68 |
(1) Effective tax rate of 26.135%. | |||||
Reconciliation of Certain Noninterest Income and Expense Items (non-GAAP) | |||||
YEAR-TO-DATE | |||||
Noninterest income | $ 170,066 | $ 125,419 | $ 82,396 | $ 42,218 | $ 191,815 |
Certain noninterest income items (1) | |||||
Gain on insurance settlement | (4,074) | - | - | - | - |
(Gain) loss from early retirement of TruPS | 365 | 365 | - | - | - |
Gain on sale of intellectual property | (750) | (750) | - | - | - |
Gain on sale of branches | - | - | - | - | (5,316) |
Branch right sizing income | 153 | 153 | 88 | - | (369) |
Adjusted noninterest income (non-GAAP) | $ 165,760 | $ 125,187 | $ 82,484 | $ 42,218 | $ 186,130 |
Other income | $ 27,361 | $ 20,761 | $ 14,103 | $ 7,266 | $ 35,273 |
Certain other income items (1) | |||||
(Gain) loss from early retirement of TruPS | 365 | 365 | - | - | - |
Gain on sale of intellectual property | (750) | (750) | - | - | - |
Gain on sale of branches | - | - | - | - | (5,316) |
Branch right sizing income | 153 | 153 | 88 | - | (369) |
Adjusted other income (non-GAAP) | $ 27,129 | $ 20,529 | $ 14,191 | $ 7,266 | $ 29,588 |
Noninterest expense | $ 566,748 | $ 424,173 | $ 285,230 | $ 128,417 | $ 483,589 |
Certain noninterest expense items (1) | |||||
Merger related costs | (22,476) | (22,441) | (21,019) | (1,886) | (15,911) |
Donation to Simmons First Foundation | (1,738) | (1,738) | (1,738) | - | - |
Branch right sizing expense | (3,475) | (2,371) | (1,201) | (909) | 537 |
Adjusted noninterest expense (non-GAAP) | $ 539,059 | $ 397,623 | $ 261,272 | $ 125,622 | $ 468,215 |
Salaries and employee benefits | $ 286,982 | $ 213,964 | $ 142,041 | $ 67,906 | $ 246,335 |
Certain salaries and employee benefits items (1) | |||||
Early retirement program | - | - | - | - | - |
Change-in-control payments | - | - | - | - | - |
Adjusted salaries and employee benefits (non-GAAP) | $ 286,982 | $ 213,964 | $ 142,041 | $ 67,906 | $ 246,269 |
Other operating expenses | $ 179,693 | $ 131,213 | $ 86,129 | $ 41,646 | $ 153,562 |
Certain other operating expenses items (1) | |||||
Donation to Simmons First Foundation | (1,738) | (1,738) | (1,738) | - | - |
Branch right sizing expense | (2,650) | (1,697) | (724) | (717) | 3,558 |
Adjusted other operating expenses (non-GAAP) | $ 175,305 | $ 127,778 | $ 83,667 | $ 40,929 | $ 157,120 |
(1) Certain items include gain from early retirement of trust preferred securities, gain on sale of intellectual property, gain on | |||||
sale of branches, gain on insurance settlement, merger related costs, branch right sizing costs and Day 2 CECL provision. | |||||
Simmons First National Corporation | SFNC | ||||
Reconciliation Of Non-GAAP Financial Measures - End of Period | |||||
For the Quarters Ended | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 |
(Unaudited) | 2022 | 2022 | 2022 | 2022 | 2021 |
($ in thousands, except per share data) | |||||
Calculation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets | |||||
Total common stockholders' equity | $ 3,269,362 | $ 3,157,151 | $ 3,259,895 | $ 2,961,607 | $ 3,248,841 |
Intangible assets: | |||||
Goodwill | (1,319,598) | (1,309,000) | (1,310,528) | (1,147,007) | (1,146,007) |
Other intangible assets | (128,951) | (133,059) | (137,285) | (102,748) | (106,235) |
Total intangibles | (1,448,549) | (1,442,059) | (1,447,813) | (1,249,755) | (1,252,242) |
Tangible common stockholders' equity | $ 1,820,813 | $ 1,715,092 | $ 1,812,082 | $ 1,711,852 | $ 1,996,599 |
Total assets | $ 27,461,061 | $ 27,076,074 | $ 27,218,609 | $ 24,482,268 | $ 24,724,759 |
Intangible assets: | |||||
Goodwill | (1,319,598) | (1,309,000) | (1,310,528) | (1,147,007) | (1,146,007) |
Other intangible assets | (128,951) | (133,059) | (137,285) | (102,748) | (106,235) |
Total intangibles | (1,448,549) | (1,442,059) | (1,447,813) | (1,249,755) | (1,252,242) |
Tangible assets | $ 26,012,512 | $ 25,634,015 | $ 25,770,796 | $ 23,232,513 | $ 23,472,517 |
Ratio of common equity to assets | 11.91 % | 11.66 % | 11.98 % | 12.10 % | 13.14 % |
Ratio of tangible common equity to tangible assets | 7.00 % | 6.69 % | 7.03 % | 7.37 % | 8.51 % |
Calculation of Tangible Book Value per Share | |||||
Total common stockholders' equity | $ 3,269,362 | $ 3,157,151 | $ 3,259,895 | $ 2,961,607 | $ 3,248,841 |
Intangible assets: | |||||
Goodwill | (1,319,598) | (1,309,000) | (1,310,528) | (1,147,007) | (1,146,007) |
Other intangible assets | (128,951) | (133,059) | (137,285) | (102,748) | (106,235) |
Total intangibles | (1,448,549) | (1,442,059) | (1,447,813) | (1,249,755) | (1,252,242) |
Tangible common stockholders' equity | $ 1,820,813 | $ 1,715,092 | $ 1,812,082 | $ 1,711,852 | $ 1,996,599 |
Shares of common stock outstanding | 127,046,654 | 126,943,467 | 128,787,764 | 112,505,555 | 112,715,444 |
Book value per common share | $ 25.73 | $ 24.87 | $ 25.31 | $ 26.32 | $ 28.82 |
Tangible book value per common share | $ 14.33 | $ 13.51 | $ 14.07 | $ 15.22 | $ 17.71 |
Simmons First National Corporation | SFNC | ||||
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date | |||||
For the Quarters Ended | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 |
(Unaudited) | 2022 | 2022 | 2022 | 2022 | 2021 |
($ in thousands) | |||||
Calculation of Adjusted Return on Average Assets | |||||
Net income available to common stockholders | $ 83,260 | $ 80,603 | $ 27,454 | $ 65,095 | $ 48,230 |
Certain items (non-GAAP) | |||||
(Gain) loss from early retirement of TruPS | - | 365 | - | - | - |
Gain on sale of intellectual property | - | (750) | - | - | - |
Gain on insurance settlement | (4,074) | - | - | - | - |
Donation to Simmons First Foundation | - | - | 1,738 | - | - |
Merger related costs | 35 | 1,422 | 19,133 | 1,886 | 13,591 |
Branch right sizing (net) | 1,104 | 1,235 | 380 | 909 | 1,648 |
Day 2 CECL provision | - | - | 33,779 | - | 22,688 |
Tax effect of certain items (2) | 768 | (594) | (14,382) | (731) | (9,913) |
Adjusted earnings (non-GAAP) | $ 81,093 | $ 82,281 | $ 68,102 | $ 67,159 | $ 76,244 |
Average total assets | $ 27,180,575 | $ 26,868,731 | $ 26,769,032 | $ 24,826,199 | $ 24,698,022 |
Return on average assets | 1.22 % | 1.19 % | 0.41 % | 1.06 % | 0.77 % |
Adjusted return on average assets (non-GAAP) | 1.18 % | 1.21 % | 1.02 % | 1.10 % | 1.22 % |
Calculation of Return on Tangible Common Equity | |||||
Net income available to common stockholders | $ 83,260 | $ 80,603 | $ 27,454 | $ 65,095 | $ 48,230 |
Amortization of intangibles, net of taxes | 3,035 | 3,121 | 3,025 | 2,575 | 2,575 |
Total income available to common stockholders | $ 86,295 | $ 83,724 | $ 30,479 | $ 67,670 | $ 50,805 |
Certain items (non-GAAP) | |||||
(Gain) loss from early retirement of TruPS | - | 365 | - | - | - |
Gain on sale of intellectual property | - | (750) | - | - | - |
Gain on insurance settlement | (4,074) | - | - | - | - |
Donation to Simmons First Foundation | - | - | 1,738 | - | - |
Merger related costs | 35 | 1,422 | 19,133 | 1,886 | 13,591 |
Branch right sizing (net) | 1,104 | 1,235 | 380 | 909 | 1,648 |
Day 2 CECL provision | - | - | 33,779 | - | 22,688 |
Tax effect of certain items (2) | 768 | (594) | (14,382) | (731) | (9,913) |
Adjusted earnings (non-GAAP) | 81,093 | 82,281 | 68,102 | 67,159 | 76,244 |
Amortization of intangibles, net of taxes | 3,035 | 3,121 | 3,025 | 2,575 | 2,575 |
Total adjusted earnings available to common stockholders (non-GAAP) | $ 84,128 | $ 85,402 | $ 71,127 | $ 69,734 | $ 78,819 |
Average common stockholders' equity | $ 3,214,912 | $ 3,292,071 | $ 3,361,703 | $ 3,169,108 | $ 3,261,627 |
Average intangible assets: | |||||
Goodwill | (1,309,124) | (1,309,804) | (1,299,821) | (1,146,034) | (1,137,441) |
Other intangibles | (131,229) | (135,718) | (114,195) | (104,905) | (105,155) |
Total average intangibles | (1,440,353) | (1,445,522) | (1,414,016) | (1,250,939) | (1,242,596) |
Average tangible common stockholders' equity (non-GAAP) | $ 1,774,559 | $ 1,846,549 | $ 1,947,687 | $ 1,918,169 | $ 2,019,031 |
Return on average common equity | 10.27 % | 9.71 % | 3.28 % | 8.33 % | 5.87 % |
Return on tangible common equity | 19.29 % | 17.99 % | 6.28 % | 14.31 % | 9.98 % |
Adjusted return on average common equity (non-GAAP) | 10.01 % | 9.92 % | 8.13 % | 8.59 % | 9.27 % |
Adjusted return on tangible common equity (non-GAAP) | 18.81 % | 18.35 % | 14.65 % | 14.74 % | 15.49 % |
Calculation of Efficiency Ratio and Adjusted Efficiency Ratio(1) | |||||
Noninterest expense (efficiency ratio numerator) | $ 142,575 | $ 138,943 | $ 156,813 | $ 128,417 | $ 141,597 |
Certain noninterest expense items (non-GAAP) | |||||
Merger related costs | (35) | (1,422) | (19,133) | (1,886) | (13,591) |
Donation to Simmons First Foundation | - | - | (1,738) | - | - |
Branch right sizing expense | (1,104) | (1,170) | (292) | (909) | (1,650) |
Other real estate and foreclosure expense adjustment | (350) | (168) | (142) | (343) | (576) |
Amortization of intangibles adjustment | (4,108) | (4,225) | (4,096) | (3,486) | (3,486) |
Adjusted efficiency ratio numerator | $ 136,978 | $ 131,958 | $ 131,412 | $ 121,793 | $ 122,294 |
Net interest income | $ 193,026 | $ 193,585 | $ 185,099 | $ 145,606 | $ 153,081 |
Noninterest income | 44,647 | 43,023 | 40,178 | 42,218 | 46,601 |
Fully tax-equivalent adjustment (effective tax rate of 26.135%) | 6,770 | 6,203 | 6,096 | 5,602 | 5,579 |
Efficiency ratio denominator | 244,443 | 242,811 | 231,373 | 193,426 | 205,261 |
Certain noninterest income items (non-GAAP) | |||||
Gain on insurance settlement | (4,074) | - | - | - | - |
(Gain) loss from early retirement of TruPS | - | 365 | - | - | - |
Gain on sale of intellectual property | - | (750) | - | - | - |
Branch right sizing income | - | 65 | 88 | - | (2) |
(Gain) loss on sale of securities | 52 | 22 | 150 | 54 | 348 |
Adjusted efficiency ratio denominator | $ 240,421 | $ 242,513 | $ 231,611 | $ 193,480 | $ 205,607 |
Efficiency ratio (1) | 58.33 % | 57.22 % | 67.77 % | 66.39 % | 68.98 % |
Adjusted efficiency ratio (non-GAAP) (1) | 56.97 % | 54.41 % | 56.74 % | 62.95 % | 59.48 % |
(1) Efficiency ratio is noninterest expense as a percent of net interest income (fully taxable equivalent) and noninterest revenues. Adjusted efficiency | |||||
ratio is noninterest expense before foreclosed property expense, amortization of intangibles and certain adjusting items as a percent of net interest | |||||
income (fully taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and certain adjusting items, and is | |||||
a non-GAAP measurement. | |||||
(2) Effective tax rate of 26.135%. | |||||
Simmons First National Corporation | SFNC | ||||
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date (continued) | |||||
For the Quarters Ended | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 |
(Unaudited) | 2022 | 2022 | 2022 | 2022 | 2021 |
($ in thousands) | |||||
Calculation of Adjusted Net Interest Margin | |||||
Net interest income | $ 193,026 | $ 193,585 | $ 185,099 | $ 145,606 | $ 153,081 |
Fully tax-equivalent adjustment (effective tax rate of 26.135%) | 6,770 | 6,203 | 6,096 | 5,602 | 5,579 |
Fully tax-equivalent net interest income | 199,796 | 199,788 | 191,195 | 151,208 | 158,660 |
Total accretable yield | (4,473) | (5,834) | (9,898) | (3,703) | (5,758) |
Adjusted net interest income | $ 195,323 | $ 193,954 | $ 181,297 | $ 147,505 | $ 152,902 |
PPP loan interest income | (103) | (191) | (1,648) | (2,113) | (5,107) |
Net interest income adjusted for PPP loans | $ 199,693 | $ 199,597 | $ 189,547 | $ 149,095 | $ 153,553 |
Average earning assets | $ 23,970,128 | $ 23,745,097 | $ 23,694,648 | $ 22,185,215 | $ 22,029,792 |
Average PPP loan balance | (11,325) | (18,179) | (43,329) | (89,757) | (172,130) |
Average earning assets adjusted for PPP loans | $ 23,958,803 | $ 23,726,918 | $ 23,651,319 | $ 22,095,458 | $ 21,857,662 |
Net interest margin | 3.31 % | 3.34 % | 3.24 % | 2.76 % | 2.86 % |
Net interest margin adjusted for PPP loans | 3.31 % | 3.34 % | 3.21 % | 2.74 % | 2.79 % |
Calculation of Pre-Provision Net Revenue (PPNR) | |||||
Net interest income | $ 193,026 | $ 193,585 | $ 185,099 | $ 145,606 | $ 153,081 |
Noninterest income | 44,647 | 43,023 | 40,178 | 42,218 | 46,601 |
Revenue | 237,673 | 236,608 | 225,277 | 187,824 | 199,682 |
Less: Gain (loss) on sale of securities | (52) | (22) | (150) | (54) | (348) |
Less: Noninterest expense | 142,575 | 138,943 | 156,813 | 128,417 | 141,597 |
Pre-Provision Net Revenue (PPNR) | $ 95,150 | $ 97,687 | $ 68,614 | $ 59,461 | $ 58,433 |
Calculation of Adjusted Pre-Provision Net Revenue | |||||
Pre-Provision Net Revenue (PPNR) | $ 95,150 | $ 97,687 | $ 68,614 | $ 59,461 | $ 58,433 |
Plus: Loss from early retirement of TruPS | - | 365 | - | - | - |
Less: Gain on sale of intellectual property | - | (750) | - | - | - |
Less: Gain on insurance settlement | (4,074) | - | - | - | - |
Plus: Donation to Simmons First Foundation | - | - | 1,738 | - | - |
Plus: Merger related costs | 35 | 1,422 | 19,133 | 1,886 | 13,591 |
Plus: Branch right sizing costs | 1,104 | 1,235 | 380 | 909 | 1,648 |
Adjusted Pre-Provision Net Revenue | $ 92,215 | $ 99,959 | $ 89,865 | $ 62,256 | $ 73,672 |
Simmons First National Corporation | SFNC | ||||
Reconciliation Of Non-GAAP Financial Measures - Year-to-Date | |||||
For the Quarters Ended | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 |
(Unaudited) | 2022 | 2022 | 2022 | 2022 | 2021 |
($ in thousands) | |||||
Calculation of Adjusted Return on Average Assets | |||||
Net income available to common stockholders | $ 256,412 | $ 173,152 | $ 92,549 | $ 65,095 | $ 271,109 |
Certain items (non-GAAP) | |||||
Gain on sale of branches | - | - | - | - | (5,316) |
(Gain) loss from early retirement of TruPS | 365 | 365 | - | - | - |
Gain on sale of intellectual property | (750) | (750) | - | - | - |
Gain on insurance settlement | (4,074) | - | - | - | - |
Donation to Simmons First Foundation | 1,738 | 1,738 | 1,738 | - | - |
Merger related costs | 22,476 | 22,441 | 21,019 | 1,886 | 15,911 |
Branch right sizing (net) | 3,628 | 2,524 | 1,289 | 909 | (906) |
Day 2 CECL provision | 33,779 | 33,779 | 33,779 | - | 22,688 |
Tax effect of certain items (2) | (14,939) | (15,707) | (15,113) | (731) | (8,462) |
Adjusted earnings (non-GAAP) | $ 298,635 | $ 217,542 | $ 135,261 | $ 67,159 | $ 295,024 |
Average total assets | $ 26,418,838 | $ 26,162,136 | $ 25,802,982 | $ 24,826,199 | $ 23,492,308 |
Return on average assets | 0.97 % | 0.88 % | 0.72 % | 1.06 % | 1.15 % |
Adjusted return on average assets (non-GAAP) | 1.13 % | 1.11 % | 1.06 % | 1.10 % | 1.26 % |
Calculation of Return on Tangible Common Equity | |||||
Net income available to common stockholders | $ 256,412 | $ 173,152 | $ 92,549 | $ 65,095 | $ 271,109 |
Amortization of intangibles, net of taxes | 11,756 | 8,721 | 5,600 | 2,575 | 9,967 |
Total income available to common stockholders | $ 268,168 | $ 181,873 | $ 98,149 | $ 67,670 | $ 281,076 |
Certain items (non-GAAP) | |||||
Gain on sale of branches | - | - | - | - | (5,316) |
(Gain) loss from early retirement of TruPS | 365 | 365 | - | - | - |
Gain on sale of intellectual property | (750) | (750) | - | - | - |
Gain on insurance settlement | (4,074) | - | - | - | - |
Donation to Simmons First Foundation | 1,738 | 1,738 | 1,738 | - | - |
Merger related costs | 22,476 | 22,441 | 21,019 | 1,886 | 15,911 |
Branch right sizing (net) | 3,628 | 2,524 | 1,289 | 909 | (906) |
Day 2 CECL provision | 33,779 | 33,779 | 33,779 | - | 22,688 |
Tax effect of certain items (2) | (14,939) | (15,707) | (15,113) | (731) | (8,462) |
Adjusted earnings (non-GAAP) | 298,635 | 217,542 | 135,261 | 67,159 | 295,024 |
Amortization of intangibles, net of taxes | 11,756 | 8,721 | 5,600 | 2,575 | 9,967 |
Total adjusted earnings available to common stockholders (non-GAAP) | $ 310,391 | $ 226,263 | $ 140,861 | $ 69,734 | $ 288,233 |
Average common stockholders' equity | $ 3,259,664 | $ 3,274,743 | $ 3,265,935 | $ 3,169,108 | $ 3,071,313 |
Average intangible assets: | |||||
Goodwill | (1,266,762) | (1,252,486) | (1,223,352) | (1,146,034) | (1,090,967) |
Other intangibles | (121,622) | (118,385) | (109,575) | (104,905) | (105,820) |
Total average intangibles | (1,388,384) | (1,370,871) | (1,332,927) | (1,250,939) | (1,196,787) |
Average tangible common stockholders' equity (non-GAAP) | $ 1,871,280 | $ 1,903,872 | $ 1,933,008 | $ 1,918,169 | $ 1,874,526 |
Return on average common equity | 7.87 % | 7.07 % | 5.71 % | 8.33 % | 8.83 % |
Return on tangible common equity | 14.33 % | 12.77 % | 10.24 % | 14.31 % | 14.99 % |
Adjusted return on average common equity (non-GAAP) | 9.16 % | 8.88 % | 8.35 % | 8.59 % | 9.61 % |
Adjusted return on tangible common equity (non-GAAP) | 16.59 % | 15.89 % | 14.70 % | 14.74 % | 16.27 % |
Calculation of Efficiency Ratio and Adjusted Efficiency Ratio(1) | |||||
Noninterest expense (efficiency ratio numerator) | $ 566,748 | $ 424,173 | $ 285,230 | $ 128,417 | $ 483,589 |
Certain noninterest expense items (non-GAAP) | |||||
Merger related costs | (22,476) | (22,441) | (21,019) | (1,886) | (15,911) |
Donation to Simmons First Foundation | (1,738) | (1,738) | (1,738) | - | - |
Branch right sizing expense | (3,475) | (2,371) | (1,201) | (909) | 537 |
Other real estate and foreclosure expense adjustment | (1,003) | (653) | (485) | (343) | (2,121) |
Amortization of intangibles adjustment | (15,915) | (11,807) | (7,582) | (3,486) | (13,494) |
Adjusted efficiency ratio numerator | $ 522,141 | $ 385,163 | $ 253,205 | $ 121,793 | $ 452,600 |
Net interest income | $ 717,316 | $ 524,290 | $ 330,705 | $ 145,606 | $ 591,532 |
Noninterest income | 170,066 | 125,419 | 82,396 | 42,218 | 191,815 |
Fully tax-equivalent adjustment (effective tax rate of 26.135%) | 24,671 | 17,901 | 11,698 | 5,602 | 19,231 |
Efficiency ratio denominator | 912,053 | 667,610 | 424,799 | 193,426 | 802,578 |
Certain noninterest income items (non-GAAP) | |||||
Gain on insurance settlement | (4,074) | - | - | - | - |
(Gain) loss from early retirement of TruPS | 365 | 365 | - | - | - |
Gain on sale of intellectual property | (750) | (750) | - | - | - |
Gain on sale of branches | - | - | - | - | (5,316) |
Branch right sizing income | 153 | 153 | 88 | - | (369) |
(Gain) loss on sale of securities | 278 | 226 | 204 | 54 | (15,498) |
Adjusted efficiency ratio denominator | $ 908,025 | $ 667,604 | $ 425,091 | $ 193,480 | $ 781,395 |
Efficiency ratio (1) | 62.14 % | 63.54 % | 67.14 % | 66.39 % | 60.25 % |
Adjusted efficiency ratio (non-GAAP) (1) | 57.50 % | 57.69 % | 59.56 % | 62.95 % | 57.92 % |
Calculation of Pre-Provision Net Revenue (PPNR) | |||||
Net interest income | $ 717,316 | $ 524,290 | $ 330,705 | $ 145,606 | $ 591,532 |
Noninterest income | 170,066 | 125,419 | 82,396 | 42,218 | 191,815 |
Revenue | 887,382 | 649,709 | 413,101 | 187,824 | 783,347 |
Less: Gain (loss) on sale of securities | (278) | (226) | (204) | (54) | 15,498 |
Less: Noninterest expense | 566,748 | 424,173 | 285,230 | 128,417 | 483,589 |
Pre-Provision Net Revenue (PPNR) | $ 320,912 | $ 225,762 | $ 128,075 | $ 59,461 | $ 284,260 |
(1) Efficiency ratio is noninterest expense as a percent of net interest income (fully taxable equivalent) and noninterest revenues. Adjusted efficiency | |||||
ratio is noninterest expense before foreclosed property expense, amortization of intangibles and certain adjusting items as a percent of net interest | |||||
income (fully taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and certain adjusting items, and is | |||||
a non-GAAP measurement. | |||||
(2) Effective tax rate of 26.135%. | |||||
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SOURCE Simmons First National Corporation
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