Simmons First National Corporation · NASDAQ:SFNC
Simmons First National — Q1 2022 Earnings Presentation
33 slides from Simmons First National's earnings presentation, Apr 28, 2022
Slide 1: 1st Quarter 2022 Earnings Presentation
Nasdaq: SFNC 1 st Quarter 2022 Earnings Presentation Contents 3 Q1 Highlights 4 Q1 Results Overview 11 Loans 14 Deposits, Liquidity, Securities, Interest Rate Sensitivity & Capital 20 Credit Quality 23 Key Takeaways 25 Appendix
Slide 2: Forward-Looking Statements
2 Forward - Looking Statements . Certain statements by Simmons First National Corporation (the “Company”, which where appropriate includes the Company’s wholly - owned banking subsidiary, Simmons Bank) contained in this presentation may not be based on historical facts and should be considered "forw
Slide 3: Q1 22 Highlights
3 Q1 22 Highlights Q 1 22 net income $65.1M Core earnings (1) of $67.2M 1 Q 1 22 EPS of $0.58 Core EPS (1) of $0.59 1 Solid start to 2022 while navigating a challenging interest rate and economic environment Newly funded loans of $2.5B in Q1 22 outpaces paydown/payoffs 2 Net loan growth in the quart
Slide 4: Q1 Results Overview
PAL simmons First National Corporation Q1 22 Results Overview
Slide 5: M&A: Spirit of Texas approvals, acquisition and conversion
5 M&A: In less than 5 months since the announcement date … … we received approvals, acquired and converted Spirit of Texas Bank Oklahoma City Dallas Austin Wichita Jefferson City Kansas City Topeka St. Louis Knoxville Chattanooga OK AR TX TN MO KS Nashville Memphis Tulsa Little Rock San Antonio Hous
Slide 6: Q1 Financial Highlights
6 Q1 22 Financial Highlights Note: Numbers may not add due to rounding NM – not meaningful (1) During 2021, certain debit and credit card transaction fees were reclassified from noninterest expense to noninterest i nco me under the caption debit and credit card fees. Prior periods have been adjusted
Slide 7: Net Interest Income and Margin
7 Net Interest Income and Margin PPP – Paycheck Protection Program FTE – Fully taxable equivalent (1) Non - GAAP measures that management believes aids in the discussion of results. See appendix for Non - GAAP reconciliation $150.8 $151.1 $150.2 $158.7 $151.2 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Net Intere
Slide 8: Noninterest Income
8 Noninterest Income Note: Numbers may not add due to rounding NM – not meaningful FTE – Full - time equivalent (1) During 2021, certain debit and credit card transaction fees were reclassified from noninterest expense to noninterest i nco me under the caption debit and credit card fees. Prior perio
Slide 9: Noninterest Expense
$ in millions Q1 22 Q4 21 Q1 21 Q4 21 Q1 21 Salaries and employee benefits $67.9 $63.8 $60.3 6 % 13 % Occupancy expense, net 10.0 11.0 9.3 (9) 8 Furniture and equipment 4.8 4.7 5.4 1 (12) Deposit insurance 1.8 2.1 1.3 (13) 41 OREO and foreclosure expense 0.3 0.6 0.3 (40) - Contribution to Simmons Fi
Slide 10: Digital: enhancing the customer experience
10 Digital: Continually exploring new and innovative ways to enhance the customer experience Zelle and Zelle related marks are wholly owned by Early Warning Services, LLC and are used herein under license (1) 1 U.S. checking or savings account required to use Zelle ®. Transactions between enrolled c
Slide 11: Loans
Simmons First National Corporation
Slide 12: Loan portfolio: annualized core loan growth of 7%
Unfunded Commitments $ in millions PPP, Energy and Mortgage Warehouse RE – Single Family 12 Loan portfolio: Annualized core loan growth of 7% in the quarter (1) PPP – Paycheck Protection Program (1) Annualized core loan growth of 7% is calculated on a linked quarter basis and excludes PPP, energy an
Slide 13: Loan pipelines: commercial loan pipeline increases
$192 $247 $487 $340 $503 $766 $750 $112 $250 $408 $484 $484 $929 $838 $70 $177 $285 $467 $493 $619 $776 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Opportunity Proposal Ready to Close $1,180 $1,291 $1,480 $2,314 $2,364 13 Loan pipelines: Commercial loan pipeline increases for the 6 th consecutive quar
Slide 14: Deposits, Liquidity, Securities, Interest Rate Sensitivity and Capital
Deposits, Liquidity, Securities, Interest Rate Sensitivity and Capital
Slide 15: Deposits: changing mix and lowering deposit costs
0.80% 0.44% 0.39% 0.34% 0.30% 0.24% 0.20% 0.17% 0.14% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% $0.0 $2.5 $5.0 $7.5 $10.0 $12.5 $15.0 $17.5 $20.0 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Noninterest Bearing Interest Bearing Transactions Time Deposits Cost of Deposits $
Slide 16: Liquidity: strong liquidity position
16 Liquidity: Strong liquidity position to fund future loan growth Cash and Cash Equivalents $ in millions Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Cash & Cash Equivalents Short-Term Variable Rate Securities $1,052 $1,792 $585 $2,600 $2,577 $3,527 $4,103 $3,606 $3,286 $3,150
Slide 17: Interest Rate Sensitivity
17 Interest Rate Sensitivity Balance Sheet Interest Rate Sensitivity Over the next 12 months (estimated) 3.04% 5.63% 8.08% +100 bps +200 bps +300 bps Net interest income sensitivity given immediate, parallel shift in interest rates across the yield curve with a static balance sheet Immediate increas
Slide 18: Strong Regulatory Capital Position
18 Strong Regulatory Capital Position: significantly above “well capitalized” guidelines (1) As of December 31, for each respective year shown above; Q1 22 data as of March 31, 2022 9.8% 10.2% 10.9% 13.4% 13.8% 13.5% 2017 2018 2019 2020 2021 Q1 22 W ELL C APITALIZED 8.0% 9.8% 10.2% 10.9% 13.4% 13.8%
Slide 19: Focused on creating long-term shareholder value
Focused on creating long - term shareholder value (1) As of December 31, for each respective year shown above and quarter end for each respective quarter shown above (2) Non - GAAP measure that management believes aids in the discussion of results. See Appendix for Non - GAAP reconciliation (3) Base
Slide 20: Credit Quality
PAL simmons First National Corporation Credit Quality
Slide 21: Credit Quality: conservative credit culture
21 Credit Quality: Conservative credit culture and a commitment to… Source: S&P Global Market Intelligence 2017 – 2021 (1) As of December 31, for each respective year shown above; Q1 22 data as of March 31, 2022 (2) ALLL for 2017 – 2019 and ACL 2020 - 2022 (3) Net charge - offs for the respective qu
Slide 22: Allowance for Credit Losses (ACL)
22 Allowance for Credit Losses (ACL): reflective of loan portfolio risk profile … ACL – Allowance for Credit Losses on Loans (1) Non - GAAP measure that management believes aids in the discussion of results. See Appendix for Non - GAAP reconciliation … and expectation of continued improvement in Moo
Slide 23: Key Takeaways
PAL simmons First National Corporation Key Takeaways
Slide 24: Key Takeaways
24 Key Takeaways 1 Encouraged by core loan growth in the quarter and that continued increase in loan pipeline and unfunded commitments will translate into future net loan growth 2 Credit quality metrics at historical lows - committed to maintaining strong underwriting standards supported by a strong
Slide 25: Appendix
Simmons First National Corporation Appendix
Slide 26: Spirit of Texas Bancshares, Inc. Period End Balance Sheet
26 Spirit of Texas Bancshares, Inc. Note : Figures above represent preliminary closing balance sheet of Spirit of Texas Bancshares, Inc . as of the acquisition date, which may be subject to further adjustments . Figures do not include purchase accounting adjustments, including mark - to - market adj
Slide 27: Breakout: Loan portfolio by Category
27 Breakout: Loan portfolio by Category as of December 31, 2021 as of March 31, 2022 $ in millions Balance $ % of Total Loans Balance $ % of Total Loans Classified $ Nonperforming $ ACL % Unfunded Commitment $ Unfunded Commitment Reserve Total Loan Portfolio Consumer - Credit Card 187 2% 184 2% 1 1
Slide 28: Non-GAAP Reconciliations
28 Non - GAAP Reconciliations Q1 Q2 Q3 Q4 Q1 $ in thousands 2021 2021 2021 2021 2022 Calculation of Core Earnings Net Income $ 67,420 $ 74,924 $ 80,574 $ 48,238 $ 65,095 Non - core items Gain on sale of branches (5,300) (16) - - - Merger related costs 233 686 1,401 13,591 1,886 Branch right sizing 4
Slide 29: Non-GAAP Reconciliations
29 Non - GAAP Reconciliations $ in thousands, except per share and share count 2017 2018 2019 2020 Calculation of Book Value and Tangible Book Value per Share Total common stockholders' equity $ 2,084,564 $ 2,246,434 $ 2,988,157 $ 2,975,889 Intangible assets: Goodwill (842,651) (845,687) (1,055,520)
Slide 30: Non-GAAP Reconciliations
30 Non - GAAP Reconciliations Q1 Q2 Q3 Q4 Q1 $ in thousands 2021 2021 2021 2021 2022 Calculation of Core Noninterest Income Noninterest Income (GAAP) $ 49,549 $ 47,115 $ 48,550 $ 46,601 $ 42,218 Non - core Items (non - GAAP) ___ (5,477) _(445) 239 (2) ____ - Core Noninterest Income (non - GAAP) $ 44
Slide 31: Non-GAAP Reconciliations
31 Non - GAAP Reconciliations FTE – full time equivalent Q1 Q2 Q3 Q4 Q1 $ in thousands 2021 2021 2021 2021 2022 Calculation of Noninterest Income to Total Revenue Total Noninterest Income $ 49,549 $ 47,115 $ 48,550 $ 46,601 $ 42,218 Less: gain (loss) on sales of securities 5,471 5,127 5,248 (348) (5
Slide 32: Non-GAAP Reconciliations
32 Non - GAAP Reconciliations Q4 Q1 $ in millions 2021 2022 Calculation of Core Loans Total Loans $ 12,013 $ 12,029 Less: PPP loans 117 62 Less: Mortgage warehouse loans 230 166 Less: Energy loans 105 48 Core Loans $ 11,561 $ 11,753
Slide 33: 1st Quarter 2022 Contents
Nasdaq: SFNC 1 st Quarter 2022 Earnings Presentation Contents 3 Q1 Highlights 4 Q1 Results Overview 11 Loans 14 Deposits, Liquidity, Securities, Interest Rate Sensitivity & Capital 20 Credit Quality 23 Key Takeaways 25 Appendix
Simmons First National — Q1 2022 Earnings Presentation on 6ix