Simmons First National Corporation · NASDAQ:SFNC
Simmons First National — Q1 2025 Earnings Presentation
39 slides from Simmons First National's earnings presentation, Apr 17, 2025
Slide 1: 1st Quarter 2025 Earnings Presentation
Nasdaq SFNC 1st Quarter 2025 Earnings Presentation April 16, 2025
Slide 2: Company Overview
Company Overview Simmons First National Corporation A Mid-South based financial holding company serving our $26.8 $21.7 customers and the communities where we work and live since 1903 BILLION BILLION TOTAL ASSETS TOTAL DEPOSITS $8.5 $17.1 BILLION ASSETS UNDER BILLION 116 CONSECUTIVE YEARS PAYING DIV
Slide 3: 1Q25 Financial Highlights
1Q25 Financial Highlights 3
Slide 4: 1Q25 Highlights
1Q25 Highlights ❑ Strengthening core performance ─ Adjusted PPNR, excluding Fraud Event (see page 10), totaled $70.3 million1 Reported Adjusted1 ─ Net interest margin up 8 bps linked quarter, 29 basis points year-over-year and represents 4th consecutive quarterly increase Net income $32.4M $33.1M •
Slide 5: 2025 Outlook
2025 Outlook $ in millions 2025 Outlook (as of January 21, 2025) 2 Updated Commentary in Response to Rapidly Evolving Macro Environment Total Loans (period end growth) Low Single • Original outlook contemplated uncertain environment • Maintain cautious optimism given 1Q25 growth coupled with size an
Slide 6: Balance Sheet Highlights
Balance Sheet Highlights Average Loans Average Investment Securities Average Deposits $ in billions $ in billions $ in billions $22.2 $22.0 $21.7 $21.9 $21.7 $6.8 $17.2 $17.2 $6.6 $17.1 $17.6 $17.4 $17.2 $17.4 $17.3 $16.9 $16.9 $6.4 $6.3 $6.1 $4.7 $4.6 $4.5 $4.5 $4.3 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q
Slide 7: Income Statement Highlights
Income Statement Highlights Net Interest Income Total Revenue and Adjusted Revenue2 PPNR2 and Adjusted PPNR2 $ in millions $ in millions $ in millions $209.6 $209.6 $164.9 $208.5 $208.5 $66.4 $67.4 $69.2 $163.4 $203.2 $65.0 $66.0 $197.2 $197.2 $59.4 $57.9 $157.7 $153.9 $174.8 $37.6 2Q24 3Q24 4Q24 1Q
Slide 8: Net Interest Margin (FTE)
Net Interest Margin (FTE) Net Interest Margin Net Interest Margin Evolution FTE (%) FTE 3 bps 17 bps (2) bps 2.95% (4) bps 2.95% 2.87% (6) bps 2.74% 2.87% 2.66% 2.69% +8 bps +13 bps +5 bps +3 bps Commentary (1Q25 vs 4Q24) ❑ NIM at 2.95 percent, up 8 bps Funding Funding Swap EA EA 4Q24 Impact Volume
Slide 9: Noninterest Income
Noninterest Income 1Q25 Adjusted 1Q25 vs Adjusted $ in millions Reported Adjusted1 4Q24 1Q24 Commentary Service charges on deposit accounts $ 12.6 $ 12.6 $(0.3) (3) % $ 0.7 6 % ❑ Adjusted noninterest income up $2.6 million, or 6 Wealth management fees 9.6 9.6 - - 1.2 15 percent, on a linked quarter
Slide 10: Noninterest Expense
Noninterest Expense 1Q25 Adjusted 1Q25 vs Adjusted $ in millions Reported Adjusted1 4Q24 1Q24 Commentary Salaries and employee benefits $ 74.8 $ 74.8 $ 3.4 5 % $ 2.4 3 % ❑ Increase in salary and employee benefits on a linked quarter basis primarily reflects seasonality Occupancy expense, net 12.7 11
Slide 11: Deposits, Securities, Liquidity, Interest Rate Sensitivity and Capital
Deposits, Securities, Liquidity, Interest Rate Sensitivity and Capital 11
Slide 12: Deposits
Deposits Deposit Mix $ in billions; Period End Balances Linked Quarter Deposit Change1 $ in millions; Period End Balances $22.4 $21.8 $21.9 $21.9 $21.7 Total Deposits $(201) $3.0 $2.9 $3.4 $3.3 $2.9 Customer $3.0 $2.8 $2.7 $2.8 $3.0 Noninterest Bearing Transaction Accounts $(5) Deposits $3.5 $3.4 $3
Slide 13: Securities: Targeted mix of securities to earning assets in mid-teens
Securities: Targeted mix of securities to earning assets in mid-teens Securities Portfolio by Type Securities Portfolio Summary Securities Portfolio Bond Ratings2 $ in millions 8% 8% Yield (FTE)1 Effective Duration At March 31, 2025 At March 31, 2025 HTM AFS HTM AFS HTM AFS Fixed Rate U.S. Guarantee
Slide 14: Liquidity: Solid liquidity position and reduced use of wholesale funding
Liquidity: Solid liquidity position and reduced use of wholesale funding Cash and Cash Equivalents + Wholesale Funding Additional Liquidity Sources Variable Rate Securities $ in millions $ in millions $ in millions March 31, Change vs FHLB borrowing availability $ 4,432 $1,301 $1,245 2025 4Q24 $1,14
Slide 15: Interest Rate Sensitivity
Interest Rate Sensitivity Loan Portfolio – Repricing and Maturity (contractual) CD Maturities (over the next 12 months) At March 31, 2025 $ in millions In millions Repricing Term Rate Structure Weighted Average Rates 3 mo 3-12 1-3 3-5 Over 5 Total Variable Fixed 4.02% 4.54% 3.73% 4.44% 3.48% 4.37% 3
Slide 16: Capital: Focused on maintaining a strong capital position
Capital: Focused on maintaining a strong capital position Tier 1 Leverage Ratio1 CET 1 Capital Ratio1 Tier 1 Risk-Based Capital Ratio1 Total Risk-Based Capital Ratio1 11.95% 12.38% 12.21% 11.95% 12.38% 12.21% 14.43% 14.61% 14.59% 9.44% 9.74% 9.83% 1Q24 4Q24 1Q25 1Q24 4Q24 1Q25 1Q24 4Q24 1Q25 1Q24 4Q
Slide 17: Loan Portfolio
Loan Portfolio 17
Slide 18: Loans: Well-diversified, granular portfolio and conservative credit culture
Loans: Well-diversified, granular portfolio and conservative credit culture Loan Portfolio Waterfall Linked Quarter Change by Loan Type $ in millions $ in millions Total Loans $88 $2,144 RE – Commercial $139 $17,006 $91 $17,094 $(2,147) RE – Construction $(11) Funded loans Paydowns/ Other1 Commercia
Slide 19: Pipelines: Represent opportunities that meet pricing and disciplined credit appetite
Pipelines: Represent opportunities that meet pricing and disciplined credit appetite Commercial Loan Pipeline by Category $ in millions 43% Opportunity Proposal Ready to Close $1,815 Commentary $1,244 $1,265 ❑ Continued focus on maintaining prudent underwriting $757 standards and pricing discipline
Slide 20: Loans: Conservative LTVs underpin prudent underwriting standards in key sectors
Loans: Conservative LTVs underpin prudent underwriting standards in key sectors Loan Portfolio – Geographic diversification Office (non-owner occupied permanent) Key Statistics At 3/31/25 By State By State NPL Ratio 0.00% 15% 2% Past Due 30+ Days 0.00% 19% 2% Average Loan Size $2.2M 44% 34% 11% $0.8
Slide 21: CLD: Quick recycling of capital given short duration of portfolio
CLD: Quick recycling of capital given short duration of portfolio Construction and Land Development (CLD) By State % of Total % of Total Key Statistics At 3/31/25 Top 10 MSAs Loans Commitments NPL Ratio 0.48% Dallas-Plano-Irving 15.8% 15.1% 26% Past Due 30+ Days 0.00% Houston-Sugarland-Baytown 12.5%
Slide 22: Loans: Loan portfolio by type and key credit metrics
Loans: Loan portfolio by type and key credit metrics as of December 31, 2024 as of March 31, 2025 % of % of Past Due 30+ Unfunded Unfunded Balance Total Balance Total Days Classified Nonperforming Commitment ACL Commitment $ in millions $ Loans $ Loans $ $ $ $ % Reserve Total Loan Portfolio Credit C
Slide 23: Credit Quality
Credit Quality 23
Slide 24: Credit Quality: Underlying credit metrics remain healthy
Credit Quality: Underlying credit metrics remain healthy Key Credit Quality Metrics Commentary 1Q24 2Q24 3Q24 4Q24 1Q25 ❑ Underlying credit metrics remain healthy ▪ 21 bps of loans past due 30-89 days, down 1 bp from 4Q24 levels Loans past due 30-89 days 0.19% 0.15% 0.20% 0.22% 0.21% ▪ 23 bps of net
Slide 25: Credit Quality: Nonperforming and past due loans
Credit Quality: Nonperforming and past due loans Top 10 Nonperforming Loans Nonperforming Loans Evolution Industry Outstanding ACL Reserve Reserve % $ in millions 1 CRE - Hotel $26.9M $16.9M 63% 58% 2 CRE - Restaurant/C&I* $22.9M $13.9M 61% of Top 10 $49.8 $152.4 NPLs 3 CLD – Office $8.6M $2.1M 24%
Slide 26: ACL: Loan loss provision and net charge-offs
ACL: Loan loss provision and net charge-offs Loan Loss Provision and Net Charge-Off Ratio $ in millions Commentary $40.0 0.40% ❑ NCO ratio of 23 bps in 1Q25 0.27% $35.0 0.22% 0.23% 0.30% 0.19% 0.19% ▪ 4 bps associated with run-off portfolio1 0.20% $30.0 $26.8 ▪ 3 bps associated with credit card port
Slide 27: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures 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 base
Slide 28: Appendix
Appendix 28
Slide 29: Select Balance Sheet and Other Data
Select Balance Sheet and Other Data 1Q25 vs 4Q24 1Q25 vs 1Q24 $ in millions, except per share data 1Q25 4Q24 1Q24 $ Change % Change $ Change % Change Period End Balances Total loans $17,094.1 $17,005.9 $17,001.8 $88.1 1 % $92.3 1 % Investment securities 6,107.4 6,166.1 6,734.8 (58.7) (1) (627.4) (9)
Slide 30: Income Summary
Income Summary 1Q25 Adjusted 1Q25 vs Adjusted $ in millions, except per share data Reported Adjusted1 4Q24 1Q24 Net interest income $163.4 $163.4 $ (1.5) (1) % $ 11.5 8 % Noninterest income 46.2 46.2 2.6 6 3.0 7 Total revenue 209.6 209.6 1.1 1 14.5 7 Noninterest expense 144.6 143.6 4.3 3 5.7 4 Pre-p
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations 1Q 2Q 3Q 4Q 1Q $ in thousands, except per share data 2024 2024 2024 2024 2025 Calculation of Adjusted Earnings Net Income $ 38,871 $ 40,763 $ 24,740 $ 48,319 $ 32,388 Certain items Branch right sizing, net 236 519 410 1,581 994 Loss (gain) on sale of securities - - 28,393 -
Slide 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations 1Q 2Q 3Q 4Q 1Q $ in thousands 2024 2024 2024 2024 2025 Calculation of Pre-Provision Net Revenue (PPNR) Net interest income $ 151,906 $ 153,905 $ 157,712 $ 164,942 $ 163,422 Noninterest income 43,184 43,299 17,130 43,558 46,155 Less: Noninterest expense 139,879 139,354 137,19
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations 1Q 2Q 3Q 4Q 1Q $ in thousands, except number of employees (FTE) 2024 2024 2024 2024 2025 Calculation of Total Revenue and Adjusted Total Revenue Net Interest Income (GAAP) $ 151,906 $ 153,905 $ 157,712 $ 164,942 $ 163,422 Noninterest Income (GAAP) 43,184 43,299 17,130 43,558
Slide 34: Non-GAAP Reconciliations
Non-GAAP Reconciliations 1Q 2Q 3Q 4Q 1Q $ in thousands 2024 2024 2024 2024 2025 Calculation of Adjusted Noninterest Expense Noninterest Expense (GAAP) $ 139,879 $ 139,354 $ 137,193 $ 141,117 $ 144,580 Less: Branch right sizing expense 236 519 410 1,581 994 Less: Early retirement program 219 118 (1)
Slide 35: Non-GAAP Reconciliations
Non-GAAP Reconciliations 1Q 4Q 1Q $ in thousands 2024 2024 2025 Calculation of Adjusted Salaries and Employee Benefits Salaries and employee benefits (GAAP) $ 72,653 $ 71,588 $ 74,824 Less: Early retirement program 219 200 - Total Adjusted Salaries and Employee Benefits (non-GAAP) $ 72,434 $ 71,388
Slide 36: Non-GAAP Reconciliations
Non-GAAP Reconciliations 1Q 4Q 1Q $ in thousands 2024 2024 2025 Calculation of Tangible Common Equity (TCE) Total common stockholders’ equity $ 3,439,126 $ 3,528,872 $ 3,531,485 Less: Intangible assets (1,429,594) (1,418,041) (1,414,513) Total tangible common stockholders’ equity (non-GAAP) $ 2,009,
Slide 37: Non-GAAP Reconciliations
Non-GAAP Reconciliations 1Q 4Q 1Q $ in thousands 2024 2024 2025 Calculation of Uninsured, Non-Collateralized Deposit Coverage Ratio Uninsured deposits at Simmons Bank $ 8,413,514 $ 8,467,291 $ 8,614,833 Less: Collateralized deposits (excluding portion that is FDIC insured) 2,995,241 2,790,339 3,005,
Slide 38: Non-GAAP Reconciliations
Non-GAAP Reconciliations 1Q 1Q $ in thousands 2025 $ in thousands 2025 Calculation of Adjusted Pre-Provision Net Revenue, excluding Fraud Event Calculation of NPL ratio, excluding Two Specific Credit Relationships Adjusted Pre-Provision Net Revenue (PPNR) (non-GAAP) (reconciliation shown on page 32)
Slide 39: 1st Quarter 2025 Earnings Presentation
Nasdaq SFNC 1st Quarter 2025 Earnings Presentation April 16, 2025
Simmons First National — Q1 2025 Earnings Presentation on 6ix