EX-99.1 2 exh_991.htm EXHIBIT 99.1

Exhibit 99.1

July 21, 2022

Simmons First National Corporation Reports Second Quarter 2022 Earnings

George A. Makris, Jr., Simmons’ Chairman and CEO, commented on the quarter

Although second quarter results were significantly impacted by accounting adjustments and one-time merger expenses related to our acquisition of Spirit of Texas Bancshares during the quarter, Simmons’ operating results excluding these items were extremely strong. Highlights for the quarter include a significant increase in revenue, well contained operating expense growth, improved asset quality, annualized organic loan growth in excess of 25 percent, marked improvement in the efficiency ratio, substantial expansion of the net interest margin, and excellent capital ratios.

Our strategy of restructuring our loan portfolio over the past two years not only diversified the risk profile but also established capacity which should provide the foundation for additional loan and revenue growth, which is evident in our loan pipeline and unfunded commitments. Our liquidity is solid, and our capital is strong. We are growing in all markets as demonstrated by the addition of nearly 2,000 new business deposit accounts in the quarter.

Thanks to our continuing investment in technology associated with our NGB project, our digital products continue to be expanded and our Chief Digital Officer, Alex Carriles, was recently recognized as a “Digital Banker of the Year” by American Banker. Other initiatives, such as the engagement of Disney Institute to help us focus on our customer service standards, will continue to headline our “Better Bank” objective.

I am very proud of the members of our Simmons team who truly exemplify our Better Together cultural cornerstone.

Financial Highlights | 2Q22 | 1Q22 | 2Q21 |  | Second Quarter Highlights
Financial Results (in millions) |  |  |  |  | · Diluted EPS was $0.21 and adjusted diluted EPS was $0.52 · Revenue increased 20% on a linked quarter basis driven by the acquisition of Spirit, solid legacy SFNC net interest income growth and net interest margin expansion · Noninterest expenses increased 22% on a linked quarter basis. Excluding merger related costs and certain other items, adjusted noninterest expense increased 9% · Provision for credit losses totaled $33.9 million, reflecting Day 2 accounting provision for acquired loans and unfunded commitments · Total loans up 26% and total deposits up 14% on a linked quarter basis. Legacy SFNC loans up 7% and deposits relatively unchanged · Credit quality metrics reflect conservative risk profile and strategic decision in 2019 to de-risk acquired loan portfolios · Common equity to assets ratio at 11.98%; TCE ratio at 7.03%
Revenue | $ 225.4 | $ 187.9 | $ 188.5 |
Noninterest expense | 156.8 | 128.4 | 114.7 |
Pre-provision net revenue(1) | 68.6 | 59.5 | 73.9 |
Merger related costs | 19.1 | 1.9 | 0.7 |
Adjusted pre-provision net revenue(1) | 88.1 | 62.3 | 74.6 |
Provision for credit losses | 33.9 | (19.9) | (13.0) |
Net income | 27.5 | 65.1 | 74.9 |
Per Share Data |  |  |  |
Diluted earnings | $ 0.21 | $ 0.58 | $ 0.69 |
Adjusted diluted earnings(1) | 0.52 | 0.59 | 0.69 |
Book value | 25.31 | 26.32 | 28.03 |
Tangible book value(1) | 14.07 | 15.22 | 17.16 |
Avg diluted shares outstanding (000s) | 128,720 | 113,027 | 108,822 |
Balance Sheet (in millions) |  |  |  |
Total loans | $ 15,110 | $ 12,029 | $ 11,386 |
Total deposits | 22,036 | 19,392 | 18,305 |
Total shareholders’ equity | 3,260 | 2,962 | 3,039 |
Asset Quality |  |  |  |
Net charge-off ratio | 0.02% | 0.22% | (0.07)% |
Nonperforming loan ratio | 0.42 | 0.53 | 0.71 |
Nonperforming assets to total assets | 0.26 | 0.29 | 0.42 |
Allowance for credit losses to total loans | 1.41 | 1.49 | 2.00 |
Nonperforming loan coverage ratio | 334 | 278 | 281 |
Select Ratios |  |  |  |
Net interest margin (FTE) | 3.24 | 2.76 | 2.89 |
Efficiency ratio(1) | 57.49 | 62.95 | 56.75 |
Loan to deposit ratio | 68.57 | 62.03 | 62.20 |
Common equity tier 1 (CET1) ratio | 12.10 | 13.52 | 14.20 |
Total risk-based capital ratio | 14.83 | 16.42 | 17.49 |

Revenue is defined as net interest income plus noninterest income excluding gain (loss) on sale of securities

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

FTE – fully taxable equivalent using a tax rate of 26.135%

Simmons First National Corporation (NASDAQ: SFNC) (Simmons or Company) today reported net income of $27.5 million for the second quarter of 2022, compared to $65.1 million in the first quarter of 2022 and $74.9 million in the second quarter of 2021. Diluted earnings per share were $0.21 for the second quarter of 2022, compared to $0.58 for the first quarter of 2022 and $0.69 for the second quarter of 2021. Included in second quarter 2022 results were $14.4 million (after-tax) of certain items, primarily merger-related expenses associated with our acquisition of Spirit of Texas Bancshares, Inc. (Spirit) that was completed on April 8, 2022. Certain items, consisting primarily of merger-related expenses and branch right-sizing costs, totaled $2.1 million (after-tax) in the first quarter of 2022 and $0.5 million (after-tax) in the second quarter of 2021.

Additionally, second quarter 2022 results included a $33.8 million Day 2 accounting provision required for loans and unfunded commitments acquired in connection with our second quarter acquisition. Excluding these items, adjusted diluted earnings per share were $0.52 for the second quarter of 2022, $0.59 for the first quarter of 2022 and $0.69 for the second quarter of 2021.

Impact of Certain Items on Earnings and Diluted EPS

$ in millions, except per share data |  |  | Q2 22 |  |  |  | Q1 22 |  |  |  | Q2 21 |
Net income |  | $ | 27.5 |  |  | $ | 65.1 |  |  | $ | 74.9 |
Day 2 accounting provision |  |  | 33.8 |  |  |  | - |  |  |  | - |
Merger related expenses |  |  | 19.1 |  |  |  | 1.9 |  |  |  | 0.7 |
Branch right sizing costs, net |  |  | 0.4 |  |  |  | 0.9 |  |  |  | - |
Total pre-tax impact |  |  | 53.3 |  |  |  | 2.8 |  |  |  | 0.7 |
Tax effect(1) |  |  | (14.0 | ) |  |  | (0.7 | ) |  |  | (0.2 | )
Total impact on earnings |  |  | 39.3 |  |  |  | 2.1 |  |  |  | 0.5 |
Adjusted earnings(2) |  | $ | 66.8 |  |  | $ | 67.2 |  |  | $ | 75.4 |
Diluted EPS |  | $ | 0.21 |  |  | $ | 0.58 |  |  | $ | 0.69 |
Day 2 accounting provision |  |  | 0.26 |  |  |  | - |  |  |  | - |
Merger related expenses |  |  | 0.15 |  |  |  | 0.01 |  |  |  | 0.01 |
Branch right sizing costs |  |  | - |  |  |  | 0.01 |  |  |  | - |
Total pre-tax impact |  |  | 0.41 |  |  |  | 0.02 |  |  |  | 0.01 |
Tax effect(1) |  |  | (0.10 | ) |  |  | (0.01 | ) |  |  | (0.01 | )
Total impact on earnings |  |  | 0.31 |  |  |  | 0.01 |  |  |  | - |
Adjusted Diluted EPS(2) |  | $ | 0.52 |  |  | $ | 0.59 |  |  | $ | 0.69 |
Average diluted shares outstanding |  |  | 128,720,078 |  |  |  | 113,026,911 |  |  |  | 108,822,175 |

(1) Effective tax rate of 26.135%

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

Net Interest Income

Net interest income for the second quarter of 2022 totaled $185.1 million, compared to $145.6 million in the first quarter of 2022 and $146.5 million for the second quarter of 2021. Included in net interest income is accretion recognized on loans acquired, which totaled $9.9 million in the second quarter of 2022, $3.7 million in the first quarter of 2022 and $5.6 million in the second quarter of 2021. Also included in net interest income is interest income from Paycheck Protection Program (PPP) loans totaling $1.6 million in the second quarter of 2022, $2.1 million in the first quarter of 2022 and $9.0 million in the second quarter of 2021. The increase in net interest income on a linked quarter basis was driven by a $43.1 million increase in interest income, that was fueled by SFNC legacy net loan growth, the added contribution from loans acquired in the Spirit acquisition and higher yields on loans and investment securities. The increase in net interest income was also positively impacted by a significant decrease in the level of variable rate loans at or below their interest rate floors during the quarter. These items more than offset the $3.6 million increase in interest expense on a linked quarter basis, which was partially attributable to the addition of deposits acquired in the Spirit acquisition.

The yield on loans for the second quarter of 2022 was 4.54 percent, compared to 4.34 percent in the first quarter of 2022 and 4.73 percent in the second quarter of 2021. The yield on investments securities for the second quarter of 2022 was 2.08 percent, compared to 1.86 percent in the first quarter of 2022 and 1.97 percent in the second quarter of 2021. Cost of deposits for the second quarter of 2022 were relatively stable at 18 basis points, compared to 14 basis points in the first quarter of 2022 and below the 24 basis points incurred during the second quarter of 2021. Net interest margin on a fully taxable equivalent basis for the second quarter of 2022 was 3.24 percent, compared to 2.76 percent for the first quarter of 2022 and 2.89 percent for the second quarter of 2021. Excluding the impact of PPP loan interest income, the net interest margin was 3.22 percent for the second quarter of 2022, 2.74 percent for the first quarter of 2022 and 2.81 percent for the second quarter of 2021.

|  |  | Q2 22 |  |  |  | Q1 22 |  |  |  | Q4 21 |  |  |  | Q3 21 |  |  |  | Q2 21 |
Loan yield (FTE) (1) |  |  | 4.54 | % |  |  | 4.34 | % |  |  | 4.58 | % |  |  | 4.76 | % |  |  | 4.73 | %
Security yield (FTE) (1) |  |  | 2.08 |  |  |  | 1.86 |  |  |  | 1.74 |  |  |  | 1.77 |  |  |  | 1.97 |
Cost of interest bearing deposits |  |  | 0.25 |  |  |  | 0.19 |  |  |  | 0.23 |  |  |  | 0.27 |  |  |  | 0.32 |
Cost of deposits |  |  | 0.18 |  |  |  | 0.14 |  |  |  | 0.17 |  |  |  | 0.20 |  |  |  | 0.24 |
Cost of borrowed funds |  |  | 2.13 |  |  |  | 1.94 |  |  |  | 1.95 |  |  |  | 1.96 |  |  |  | 1.97 |
Net interest spread (FTE) (1) |  |  | 3.11 |  |  |  | 2.66 |  |  |  | 2.74 |  |  |  | 2.72 |  |  |  | 2.74 |
Net interest margin (FTE) (1) |  |  | 3.24 |  |  |  | 2.76 |  |  |  | 2.86 |  |  |  | 2.85 |  |  |  | 2.89 |

(1) Fully tax equivalent using an effective tax rate of 26.135%.

Noninterest Income

Noninterest income for the second quarter of 2022 was $40.2 million, compared to $42.2 million in the first quarter of 2022 and $47.1 million in the second quarter of 2021. Included in noninterest income in the first quarter of 2022 was a settlement award totaling $1.4 million. Gains (losses) on sales of investment securities totaled $(150) thousand in the second quarter of 2022, $(54) thousand in the first quarter of 2022 and $5.1 million in the second quarter of 2021. The decrease in noninterest income on a linked quarter basis was primarily attributable to an expected decline in mortgage lending income given the higher interest rate environment and softening market conditions, and the previously mentioned settlement award. These declines were offset, in part, by an increase in debit and credit card fees, and an increase in service charges on deposit accounts that was aided by the addition of Spirit.

Select Noninterest Income Items $ in millions |  |  | Q2 22 |  |  |  | Q1 22 |  |  |  | Q4 21 |  |  |  | Q3 21 |  |  |  | Q2 21 |
Service charges on deposit accounts |  | $ | 11.4 |  |  | $ | 10.7 |  |  | $ | 11.9 |  |  | $ | 11.6 |  |  | $ | 10.1 |
Wealth management fees |  |  | 7.2 |  |  |  | 8.0 |  |  |  | 8.0 |  |  |  | 7.9 |  |  |  | 7.9 |
Debit and credit card fees (1) |  |  | 8.2 |  |  |  | 7.4 |  |  |  | 7.5 |  |  |  | 7.1 |  |  |  | 7.1 |
Mortgage lending income |  |  | 2.2 |  |  |  | 4.6 |  |  |  | 5.0 |  |  |  | 5.8 |  |  |  | 4.5 |
Bank owned life insurance |  |  | 2.6 |  |  |  | 2.7 |  |  |  | 2.8 |  |  |  | 2.6 |  |  |  | 2.0 |
Gain (loss) on sale of securities |  |  | (0.2 | ) |  |  | (0.1 | ) |  |  | (0.3 | ) |  |  | 5.2 |  |  |  | 5.1 |
Other income |  |  | 6.8 |  |  |  | 7.3 |  |  |  | 10.0 |  |  |  | 6.4 |  |  |  | 8.4 |
Adjusted other income (2) |  |  | 6.9 |  |  |  | 7.3 |  |  |  | 10.0 |  |  |  | 6.7 |  |  |  | 8.0 |

(1) During the second quarter of 2021, certain debit and credit card transaction fees were reclassified from noninterest expense to noninterest income. Prior periods have been adjusted to reflect this reclassification.

(2) Adjusted figures exclude certain items and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

Noninterest Expense

Noninterest expense for the second quarter of 2022 was $156.8 million, compared to $128.4 million in the first quarter of 2022 and $114.7 in the second quarter of 2021. Included in noninterest expense in the second quarter of 2022 is a $1.6 million contribution to the Simmons First Foundation Conservation Fund, reflecting a portion of paper statement fees collected as part of a promotion to encourage customers to enroll in eStatements. Also included in noninterest expense are certain non-core items, primarily associated with merger related and branch right-sizing costs, totaling $19.4 million in the second quarter of 2022, $2.8 million in the first quarter of 2022 and $1.2 million in the second quarter of 2021. Excluding these items, adjusted noninterest expense for the second quarter of 2022 was $137.4 million, compared to $125.6 million in the first quarter of 2022 and $113.5 million in the second quarter of 2021. The increase in adjusted noninterest expense on a linked quarter basis was primarily attributable to operating expenses associated with Spirit. The increase in adjusted noninterest expense on a year-over-year basis primarily reflects increased operating expenses associated with the acquisition of Spirit, and the acquisitions of Landmark Community Bank and Triumph Bancshares, Inc. in the fourth quarter of 2021.

Select Noninterest Expense Items $ in millions |  |  | Q2 22 |  |  |  | Q1 22 |  |  |  | Q4 21 |  |  |  | Q3 21 |  |  |  | Q2 21 |
Salaries and employee benefits |  | $ | 74.1 |  |  | $ | 67.9 |  |  | $ | 63.9 |  |  | $ | 61.9 |  |  | $ | 60.3 |
Occupancy expense, net |  |  | 11.0 |  |  |  | 10.0 |  |  |  | 11.0 |  |  |  | 9.4 |  |  |  | 9.1 |
Furniture and equipment |  |  | 5.1 |  |  |  | 4.8 |  |  |  | 4.7 |  |  |  | 4.9 |  |  |  | 4.9 |
Merger related costs |  |  | 19.1 |  |  |  | 1.9 |  |  |  | 13.6 |  |  |  | 1.4 |  |  |  | 0.7 |
Other operating expenses (1) |  |  | 44.5 |  |  |  | 41.6 |  |  |  | 45.7 |  |  |  | 34.6 |  |  |  | 37.2 |
Adjusted salaries and employee benefits (2) |  |  | 74.1 |  |  |  | 67.9 |  |  |  | 63.8 |  |  |  | 61.8 |  |  |  | 60.3 |
Adjusted other operating expenses (2) |  |  | 44.5 |  |  |  | 40.9 |  |  |  | 45.8 |  |  |  | 38.3 |  |  |  | 37.1 |

(1) During the second quarter of 2021, certain debit and credit card transaction fees were reclassified from noninterest expense to noninterest income. Prior periods have been adjusted to reflect this reclassification.

(2) Adjusted figures exclude certain items and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

Loans and Unfunded Loan Commitments

Total loans at the end of the second quarter of 2022 were $15.1 billion, compared to $12.0 billion at the end of the first quarter of 2022 and $11.4 billion at the end of the second quarter of 2021. The increase in total loans on a linked quarter basis reflected the addition of $2.3 billion of loans (net of fair value adjustments) associated with the acquisition of Spirit. Excluding Spirit loans acquired at closing, net loan growth on a linked quarter basis was $822 million, or 7 percent. Net loan growth in the quarter was also driven by increased activity throughout our geographic footprint, which more than offset an anticipated decline in mortgage warehouse lending given current market conditions, as well as the continued forgiveness of PPP loans. Additionally, loan growth was weighted toward the latter half of the quarter as average total loans for the second quarter of 2022 were $14.5 billion. The higher level of period end loan balances compared to average balances should provide a platform for interest income growth going forward.

Unfunded commitments increased for the fifth consecutive quarter to $4.5 billion, up 30 percent on a linked quarter basis. Continued growth in this measure was aided by the addition of Spirit, and we believe reflects the Company’s ability to organically attract new customers throughout its franchise while also deepening relationships with existing customers. At the same time, momentum in our commercial loan pipeline continued to strengthen with all loan opportunities, including the addition of Spirit, totaling $3.0 billion at the end of the second quarter of 2022, up 28 percent on a linked quarter basis. This marked the seventh consecutive quarter of increased activity in our commercial loan pipeline. Commercial loans approved and ready to close at the end of the second quarter totaled $1.1 billion and the rate on ready to close commercial loans was 4.45 percent, up 102 basis points from the rate on ready to close commercial loans at the end of the first quarter of 2022.

$ in millions |  |  | Q2 22 |  |  |  | Q1 22 |  |  |  | Q4 21 |  |  |  | Q3 21 |  |  |  | Q2 21 |
Total loans |  | $ | 15,110 |  |  | $ | 12,029 |  |  | $ | 12,013 |  |  | $ | 10,825 |  |  | $ | 11,386 |
Spirit loans, net of fair value adjustments |  |  | 2,259 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total loans (excluding Spirit)(1) (2) |  | $ | 12,851 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Linked quarter change in loans |  |  | 26 | % |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Linked quarter change in loans (excluding Spirit)(1) (2) |  |  | 7 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
PPP loans |  | $ | 19 |  |  | $ | 62 |  |  | $ | 117 |  |  | $ | 212 |  |  | $ | 441 |
Mortgage warehouse loans |  |  | 168 |  |  |  | 166 |  |  |  | 230 |  |  |  | 275 |  |  |  | 307 |
Energy loans |  |  | 55 |  |  |  | 48 |  |  |  | 105 |  |  |  | 128 |  |  |  | 174 |
Unfunded loan commitments |  | $ | 4,473 |  |  | $ | 3,428 |  |  | $ | 2,943 |  |  | $ | 2,254 |  |  | $ | 2,130 |

(1) Adjusted figures exclude certain items and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” below

(2) Loans excluding Spirit loans are also referred to as “Legacy SFNC loans” in this earnings release.

Deposits

Total deposits at the end of the second quarter of 2022 were $22.0 billion, compared to $19.4 billion at the end of the first quarter of 2022 and $18.3 billion at the end of the second quarter of 2021. The increase in total deposits on a linked quarter basis reflected the addition of $2.7 billion of deposits (net of fair value adjustments) associated with the acquisition of Spirit. Excluding Spirit deposits acquired at closing, total deposits were relatively unchanged on a linked quarter basis, decreasing less than 1 percent. Noninterest bearing deposits totaled $6.1 billion at the end of the second quarter of 2022 and represented 27 percent of total deposits, unchanged from first quarter of 2022 levels. Interest bearing deposits (checking, savings and money market accounts) totaled $12.8 billion at the end of the second quarter of 2022 and represented 58 percent of total deposits, compared to 62 percent of total deposits at the end of the first quarter of 2022. Conversely, time deposits totaled $3.2 billion at the end of the second quarter of 2022 and represented 14 percent of total deposits, up from 11 percent at the end of the first quarter of 2022. The change in mix of deposits on a linked quarter basis is partially attributable to the attractiveness of higher rate deposits given the rapid increase in interest rates that has occurred during 2022, coupled with the mix of deposits acquired from Spirit. The loan to deposit ratio ended the second quarter of 2022 at 69 percent, up from 62 percent at the end of both the first quarter of 2022 and the second quarter of 2021.

$ in millions |  |  | Q2 22 |  |  |  | Q1 22 |  |  |  | Q4 21 |  |  |  | Q3 21 |  |  |  | Q2 21 |
Noninterest bearing deposits |  | $ | 6,057 |  |  | $ | 5,224 |  |  | $ | 5,325 |  |  | $ | 4,919 |  |  | $ | 4,894 |
Interest bearing deposits |  |  | 12,816 |  |  |  | 12,106 |  |  |  | 11,589 |  |  |  | 10,697 |  |  |  | 10,570 |
Time deposits |  |  | 3,163 |  |  |  | 2,062 |  |  |  | 2,453 |  |  |  | 2,456 |  |  |  | 2,841 |
Total deposits |  | $ | 22,036 |  |  | $ | 19,392 |  |  | $ | 19,367 |  |  | $ | 18,072 |  |  | $ | 18,305 |
Spirit deposits, net of fair value adjustments |  |  | 2,719 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total deposits (excluding Spirit)(1) (2) |  | $ | 19,317 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Linked quarter change in deposits |  |  | 14 | % |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Linked quarter change in deposits (excluding Spirit) (1) (2) |  |  | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

(1) Adjusted figures exclude certain items and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” below.

(2) Deposits excluding Spirit deposits are also referred to as “Legacy SFNC deposits” in this earnings release.

Asset Quality

Total nonperforming loans at the end of the second quarter of 2022 were $63.6 million, down $0.7 million compared to $64.3 million at the end of the first quarter of 2022 and down $17.3 million compared to $80.9 million at the end of the second quarter of 2021. Total nonperforming assets as a percentage of total assets were 0.26 at the end of the second quarter of 2022, compared to 0.29 percent at the end of the first quarter of 2022 and 0.42 percent at the end of the second quarter of 2021. Net charge-offs as a percentage of average loans were 2 basis points in the second quarter of 2022, compared to 22 basis points in the first quarter of 2022 and net recoveries of 7 basis points in the second quarter of 2021.

Improving asset quality metrics reflect both economic conditions in the markets we serve, as well as the impact of the Company’s strategic decision in 2019 designed to de-risk loan portfolios that were acquired in connection with its geographic diversification and expansion. As a result of this strategic decision, over the past two years the Company has prudently and systematically exited certain non-relationship credits and non-core industries while also significantly reducing its exposure to commercial real estate to more acceptable levels.

During the second quarter of 2022, the Company recorded a provision for credit losses totaling $33.9 million, compared to provision recaptures of $19.9 million in the first quarter of 2022 and $13.0 million in the second quarter of 2021. The provision for credit losses in the second quarter of 2022 includes $33.8 million associated with Day 2 accounting provision required for loans and unfunded commitments acquired during the quarter in connection with the acquisition of Spirit.

The allowance for credit losses on loans at the end of the second quarter of 2022 was $212.6 million, compared to $178.9 million at the end of the first quarter of 2022 and $227.2 million at the end of the second quarter of 2021. Included in the allowance for credit losses in the second quarter of 2022 is the impact of the Day 2 accounting provision related to Spirit, as well as fair value purchase accounting credit marks of $4.1 million. The allowance for credit losses on loans to total loans ratio ended the quarter at 1.41 percent, compared to 1.49 percent at the end of the first quarter of 2022 and 2.00 percent at the end of the second quarter of 2021. The nonperforming loan coverage ratio ended the quarter at 334 percent, compared to 278 percent at the end of the first quarter of 2022 and 281 percent at the end of the second quarter of 2021.

$ in millions |  |  | Q2 22 |  |  |  | Q1 22 |  |  |  | Q4 21 |  |  |  | Q3 21 |  |  |  | Q2 21 |
Allowance for credit losses on loans to total loans |  |  | 1.41 | % |  |  | 1.49 | % |  |  | 1.71 | % |  |  | 1.87 | % |  |  | 2.00 | %
Allowance for credit losses on loans to nonperforming loans |  |  | 334 |  |  |  | 278 |  |  |  | 300 |  |  |  | 341 |  |  |  | 281 |
Nonperforming loans to total loans |  |  | 0.42 |  |  |  | 0.53 |  |  |  | 0.57 |  |  |  | 0.55 |  |  |  | 0.71 |
Net charge-off ratio (annualized) |  |  | 0.02 |  |  |  | 0.22 |  |  |  | 0.31 |  |  |  | 0.17 |  |  |  | (0.07 | )
Net charge-off ratio YTD (annualized) |  |  | 0.11 |  |  |  | 0.22 |  |  |  | 0.13 |  |  |  | 0.06 |  |  |  | 0.01 |
Total nonperforming loans |  | $ | 63.6 |  |  | $ | 64.3 |  |  | $ | 68.6 |  |  | $ | 59.4 |  |  | $ | 80.9 |
Total other nonperforming assets |  |  | 6.4 |  |  |  | 6.6 |  |  |  | 7.7 |  |  |  | 13.5 |  |  |  | 16.3 |
Total nonperforming assets |  | $ | 70.0 |  |  | $ | 70.9 |  |  | $ | 76.3 |  |  | $ | 72.9 |  |  | $ | 97.2 |

Capital

Total common stockholders’ equity at the end of the second quarter of 2022 was $3.3 billion, compared to $3.0 billion at the end of both the first quarter of 2022 and second quarter of 2021. The increase in common stockholders’ equity on a linked quarter basis reflects the issuance of shares in connection with the acquisition of Spirit and earnings for the quarter, partially offset by the return of capital to shareholders through share repurchases and the payment of a cash dividend, and an increase in unrealized losses associated with investment securities classified as available-for-sale. Book value per share at the end of the second quarter of 2022 was $25.31, compared to $26.32 at the end of the first quarter of 2022 and $28.03 and the end of the second quarter of 2021. Tangible book value per share was $14.07 at the end of the second quarter of 2022, compared to $15.22 at the end of the first quarter of 2022 and $17.16 at the end of the second quarter of 2021. The ratio of stockholders’ equity to total assets at June 30, 2022, was 12.0 percent and the ratio of tangible common equity to tangible assets was 7.0 percent. All of Simmons’ regulatory capital ratios continue to significantly exceed “well-capitalized” guidelines.

|  |  | Q2 22 |  |  |  | Q1 22 |  |  |  | Q4 21 |  |  |  | Q3 21 |  |  |  | Q2 21 |
Stockholders’ equity to total assets |  |  | 12.0 | % |  |  | 12.1 | % |  |  | 13.1 | % |  |  | 13.1 | % |  |  | 13.0 | %
Tangible common equity to tangible assets (1) |  |  | 7.0 |  |  |  | 7.4 |  |  |  | 8.5 |  |  |  | 8.4 |  |  |  | 8.4 |
Regulatory common equity tier 1 ratio |  |  | 12.1 |  |  |  | 13.5 |  |  |  | 13.8 |  |  |  | 14.3 |  |  |  | 14.2 |
Regulatory tier 1 leverage ratio |  |  | 9.2 |  |  |  | 9.0 |  |  |  | 9.1 |  |  |  | 9.1 |  |  |  | 9.0 |
Regulatory tier 1 risk-based capital ratio |  |  | 12.1 |  |  |  | 13.5 |  |  |  | 13.8 |  |  |  | 14.3 |  |  |  | 14.2 |
Regulatory total risk-based capital ratio |  |  | 14.8 |  |  |  | 16.4 |  |  |  | 16.8 |  |  |  | 17.4 |  |  |  | 17.5 |

(1) Tangible common equity to tangible assets is a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

Share Repurchase Program and Cash Dividend

As previously announced, as a result of the Simmons’ strong capital position and ability to organically generate capital, the board of directors declared a quarterly cash dividend on Simmons’ Class A common stock of $0.19 per share, which is payable on October 3, 2022, to shareholders of record as of September 15, 2022. The cash dividend rate represents an increase of $0.01 per share, or 6 percent, from the dividend paid for the same time period last year. The current quarterly cash dividend rate further represents an annualized cash dividend rate of $0.76 per share and a ten-year compound annual growth rate of 7 percent. With the payment of dividends in 2022, Simmons has paid cash dividends for 113 consecutive years. According to research performed by Dividend Power, Simmons is one of only 23 U.S. publicly traded companies that have paid dividends for 100+ uninterrupted years. Simmons was one of only two banks to be named to the list and tied for second among Nasdaq listed companies for the longest active streak.

During the second quarter of 2022, Simmons repurchased approximately 2.0 million shares of its Class A common stock at an average price of $24.57 under its 2022 stock repurchase program that was announced in January 2022 (2022 Program). Under the 2022 Program, Simmons is authorized to repurchase up to $175,000,000 of its issued and outstanding Class A common stock. Market conditions and our capital needs will drive the decisions 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.

Simmons First National Corporation

Simmons First National Corporation (NASDAQ: SFNC) is a Mid-South based financial holding company that has paid cash dividends to its shareholders for 113 consecutive years. Its principal subsidiary, Simmons Bank, operates more than 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. Simmons Bank was named to Forbes list of “America’s Best Banks” for the second consecutive year and was recently 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.

Conference Call

Management will conduct a live conference call to review this information beginning at 9:00 a.m. Central Time today, Thursday, July 21, 2022. Interested persons can listen to this call by dialing toll-free 1-877-270-2148 (North America only) and asking for the Simmons First National Corporation conference call, conference ID 10168365. In addition, the call will be available live or in recorded version on the Company’s website at simmonsbank.com for at least 60 days.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance. These measures adjust GAAP performance measures to, among other things, include the tax benefit associated with revenue items that are tax-exempt, as well as exclude from net income (including on a per share diluted basis), pre-tax, pre-provision earnings, net charge-offs, income available to common shareholders, non-interest income, and non-interest expense certain income and expense items attributable to merger activity (primarily including merger-related expenses), gains and/or losses on sale of branches, early retirement programs and net branch right-sizing initiatives. 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 the Spirit acquisition, mortgage warehouse loans, and/or energy loans. The Company’s management believes that these non-GAAP financial measures are useful to investors because they, among other things, present the results of the Company’s ongoing operations without the effect of mergers or other items not central to the Company’s ongoing business, as well as normalize for tax effects and the effects of the PPP. Management, therefore, believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s ongoing businesses, and management uses these non-GAAP financial measures to assess the performance of the Company’s ongoing businesses as related to prior financial periods. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

Forward-Looking Statements

Certain statements in this news release may not be based on historical facts and should be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including, without limitation, statements made in Mr. Makris’s quotes, may be identified by reference to future periods or by the use of forward-looking terminology, such as “believe,” “budget,” “expect,” “foresee,” “anticipate,” “intend,” “indicate,” “target,” “estimate,” “plan,” “project,” “continue,” “contemplate,” “positions,” “prospects,” “predict,” or “potential,” by future conditional verbs such as “will,” “would,” “should,” “could,” “might” or “may,” or by variations of such words or by similar expressions. These forward-looking statements include, without limitation, statements relating to Simmons’ future growth, 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, the ability of the Company to manage the impacts of the COVID-19 pandemic, and the impacts of the Company’s and its customers’ participation in the PPP. Any forward-looking statement speaks only as of the date of this news release, and Simmons undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release. By nature, forward-looking statements are based on various assumptions and involve inherent risk and uncertainties. Various factors, including, but not limited to, changes in economic conditions, credit quality, interest rates, loan demand, deposit flows, real estate values, the assumptions used in making the forward-looking statements, the securities markets generally or the price of Simmons’ common stock specifically, and information technology affecting the financial industry; the effect of steps the Company takes 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 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.

FOR MORE INFORMATION CONTACT:

Ed Bilek

EVP, Director of Investor and Media Relations

Simmons First National Corporation

ed.bilek@simmonsbank.com

205.612.3378 (cell)

Simmons First National Corporation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | SFNC |
Consolidated End of Period Balance Sheets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
For the Quarters Ended |  |  | Jun 30 |  |  |  | Mar 31 |  |  |  | Dec 31 |  |  |  | Sep 30 |  |  |  | Jun 30 |
(Unaudited) |  |  | 2022 |  |  |  | 2022 |  |  |  | 2021 |  |  |  | 2021 |  |  |  | 2021 |
($ in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and non-interest bearing balances due from banks |  | $ | 193,473 |  |  | $ | 195,510 |  |  | $ | 209,190 |  |  | $ | 225,500 |  |  | $ | 215,381 |
Interest bearing balances due from banks and federal funds sold |  |  | 771,374 |  |  |  | 1,491,507 |  |  |  | 1,441,463 |  |  |  | 1,555,913 |  |  |  | 2,123,743 |
Cash and cash equivalents |  |  | 964,847 |  |  |  | 1,687,017 |  |  |  | 1,650,653 |  |  |  | 1,781,413 |  |  |  | 2,339,124 |
Interest bearing balances due from banks - time |  |  | 1,535 |  |  |  | 1,857 |  |  |  | 1,882 |  |  |  | 1,780 |  |  |  | 1,335 |
Investment securities - held-to-maturity |  |  | 3,819,682 |  |  |  | 1,556,825 |  |  |  | 1,529,221 |  |  |  | 1,516,797 |  |  |  | 931,352 |
Investment securities - available-for-sale |  |  | 4,341,647 |  |  |  | 6,640,069 |  |  |  | 7,113,545 |  |  |  | 6,822,203 |  |  |  | 6,556,581 |
Mortgage loans held for sale |  |  | 14,437 |  |  |  | 18,206 |  |  |  | 36,356 |  |  |  | 34,628 |  |  |  | 36,011 |
Other loans held for sale |  |  | 16,375 |  |  |  | - |  |  |  | 100 |  |  |  | 100 |  |  |  | 100 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans |  |  | 15,110,344 |  |  |  | 12,028,593 |  |  |  | 12,012,503 |  |  |  | 10,825,227 |  |  |  | 11,386,352 |
Allowance for credit losses on loans |  |  | (212,611 | ) |  |  | (178,924 | ) |  |  | (205,332 | ) |  |  | (202,508 | ) |  |  | (227,239 | )
Net loans |  |  | 14,897,733 |  |  |  | 11,849,669 |  |  |  | 11,807,171 |  |  |  | 10,622,719 |  |  |  | 11,159,113 |
Premises and equipment |  |  | 553,062 |  |  |  | 486,531 |  |  |  | 483,469 |  |  |  | 463,924 |  |  |  | 429,587 |
Premises held for sale |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 6,090 |
Foreclosed assets and other real estate owned |  |  | 4,084 |  |  |  | 5,118 |  |  |  | 6,032 |  |  |  | 11,759 |  |  |  | 15,239 |
Interest receivable |  |  | 82,332 |  |  |  | 69,357 |  |  |  | 72,990 |  |  |  | 68,405 |  |  |  | 67,916 |
Bank owned life insurance |  |  | 486,355 |  |  |  | 448,011 |  |  |  | 445,305 |  |  |  | 421,762 |  |  |  | 419,198 |
Goodwill |  |  | 1,310,528 |  |  |  | 1,147,007 |  |  |  | 1,146,007 |  |  |  | 1,075,305 |  |  |  | 1,075,305 |
Other intangible assets |  |  | 137,285 |  |  |  | 102,748 |  |  |  | 106,235 |  |  |  | 100,428 |  |  |  | 103,759 |
Other assets |  |  | 588,707 |  |  |  | 469,853 |  |  |  | 325,793 |  |  |  | 304,707 |  |  |  | 282,449 |
Total assets |  | $ | 27,218,609 |  |  | $ | 24,482,268 |  |  | $ | 24,724,759 |  |  | $ | 23,225,930 |  |  | $ | 23,423,159 |
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-interest bearing transaction accounts |  | $ | 6,057,186 |  |  | $ | 5,223,862 |  |  | $ | 5,325,318 |  |  | $ | 4,918,845 |  |  | $ | 4,893,959 |
Interest bearing transaction accounts and savings deposits |  |  | 12,816,198 |  |  |  | 12,105,948 |  |  |  | 11,588,770 |  |  |  | 10,697,451 |  |  |  | 10,569,602 |
Time deposits |  |  | 3,162,479 |  |  |  | 2,062,612 |  |  |  | 2,452,460 |  |  |  | 2,455,774 |  |  |  | 2,841,052 |
Total deposits |  |  | 22,035,863 |  |  |  | 19,392,422 |  |  |  | 19,366,548 |  |  |  | 18,072,070 |  |  |  | 18,304,613 |
Federal funds purchased and securities sold under agreements to repurchase |  |  | 155,101 |  |  |  | 196,828 |  |  |  | 185,403 |  |  |  | 217,276 |  |  |  | 187,215 |
Other borrowings |  |  | 1,060,244 |  |  |  | 1,337,243 |  |  |  | 1,337,973 |  |  |  | 1,338,585 |  |  |  | 1,339,193 |
Subordinated notes and debentures |  |  | 421,693 |  |  |  | 384,242 |  |  |  | 384,131 |  |  |  | 383,278 |  |  |  | 383,143 |
Other liabilities held for sale |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Accrued interest and other liabilities |  |  | 285,813 |  |  |  | 209,926 |  |  |  | 201,863 |  |  |  | 184,190 |  |  |  | 169,629 |
Total liabilities |  |  | 23,958,714 |  |  |  | 21,520,661 |  |  |  | 21,475,918 |  |  |  | 20,195,399 |  |  |  | 20,383,793 |
Stockholders' equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 767 |  |  |  | 767 |
Common stock |  |  | 1,288 |  |  |  | 1,125 |  |  |  | 1,127 |  |  |  | 1,066 |  |  |  | 1,084 |
Surplus |  |  | 2,569,060 |  |  |  | 2,150,453 |  |  |  | 2,164,989 |  |  |  | 1,974,561 |  |  |  | 2,021,128 |
Undivided profits |  |  | 1,139,975 |  |  |  | 1,136,990 |  |  |  | 1,093,270 |  |  |  | 1,065,566 |  |  |  | 1,004,314 |
Accumulated other comprehensive (loss) income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unrealized (depreciation) appreciation on AFS securities |  |  | (450,428 | ) |  |  | (326,961 | ) |  |  | (10,545 | ) |  |  | (11,429 | ) |  |  | 12,073 |
Total stockholders' equity |  |  | 3,259,895 |  |  |  | 2,961,607 |  |  |  | 3,248,841 |  |  |  | 3,030,531 |  |  |  | 3,039,366 |
Total liabilities and stockholders' equity |  | $ | 27,218,609 |  |  | $ | 24,482,268 |  |  | $ | 24,724,759 |  |  | $ | 23,225,930 |  |  | $ | 23,423,159 |

Simmons First National Corporation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | SFNC |
Consolidated Statements of Income - Quarter-to-Date |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
For the Quarters Ended |  |  | Jun 30 |  |  |  | Mar 31 |  |  |  | Dec 31 |  |  |  | Sep 30 |  |  |  | Jun 30 |
(Unaudited) |  |  | 2022 |  |  |  | 2022 |  |  |  | 2021 |  |  |  | 2021 |  |  |  | 2021 |
($ in thousands, except per share data) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
INTEREST INCOME |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans (including fees) |  | $ | 163,578 |  |  | $ | 127,176 |  |  | $ | 137,564 |  |  | $ | 132,216 |  |  | $ | 138,804 |
Interest bearing balances due from banks and federal funds sold |  |  | 1,117 |  |  |  | 649 |  |  |  | 583 |  |  |  | 763 |  |  |  | 651 |
Investment securities |  |  | 37,848 |  |  |  | 33,712 |  |  |  | 32,275 |  |  |  | 30,717 |  |  |  | 27,128 |
Mortgage loans held for sale |  |  | 200 |  |  |  | 190 |  |  |  | 310 |  |  |  | 230 |  |  |  | 386 |
Other loans held for sale |  |  | 2,063 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
TOTAL INTEREST INCOME |  |  | 204,806 |  |  |  | 161,727 |  |  |  | 170,732 |  |  |  | 163,926 |  |  |  | 166,969 |
INTEREST EXPENSE |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Time deposits |  |  | 2,875 |  |  |  | 2,503 |  |  |  | 3,705 |  |  |  | 4,747 |  |  |  | 6,061 |
Other deposits |  |  | 6,879 |  |  |  | 4,314 |  |  |  | 4,390 |  |  |  | 4,369 |  |  |  | 4,721 |
Federal funds purchased and securities sold under agreements to repurchase |  |  | 119 |  |  |  | 68 |  |  |  | 72 |  |  |  | 70 |  |  |  | 192 |
Other borrowings |  |  | 4,844 |  |  |  | 4,779 |  |  |  | 4,903 |  |  |  | 4,893 |  |  |  | 4,897 |
Subordinated notes and debentures |  |  | 4,990 |  |  |  | 4,457 |  |  |  | 4,581 |  |  |  | 4,610 |  |  |  | 4,565 |
TOTAL INTEREST EXPENSE |  |  | 19,707 |  |  |  | 16,121 |  |  |  | 17,651 |  |  |  | 18,689 |  |  |  | 20,436 |
NET INTEREST INCOME |  |  | 185,099 |  |  |  | 145,606 |  |  |  | 153,081 |  |  |  | 145,237 |  |  |  | 146,533 |
Provision for credit losses |  |  | 33,859 |  |  |  | (19,914 | ) |  |  | (1,308 | ) |  |  | (19,890 | ) |  |  | (12,951 | )
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES |  |  | 151,240 |  |  |  | 165,520 |  |  |  | 154,389 |  |  |  | 165,127 |  |  |  | 159,484 |
NON-INTEREST INCOME |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Wealth management fees |  |  | 7,214 |  |  |  | 7,968 |  |  |  | 8,042 |  |  |  | 7,877 |  |  |  | 7,892 |
Service charges on deposit accounts |  |  | 11,379 |  |  |  | 10,696 |  |  |  | 11,909 |  |  |  | 11,557 |  |  |  | 10,050 |
Other service charges and fees |  |  | 1,871 |  |  |  | 1,637 |  |  |  | 1,762 |  |  |  | 1,964 |  |  |  | 2,048 |
Mortgage lending income |  |  | 2,240 |  |  |  | 4,550 |  |  |  | 5,043 |  |  |  | 5,818 |  |  |  | 4,490 |
Debit and credit card fees |  |  | 8,224 |  |  |  | 7,449 |  |  |  | 7,460 |  |  |  | 7,102 |  |  |  | 7,073 |
Bank owned life insurance income |  |  | 2,563 |  |  |  | 2,706 |  |  |  | 2,768 |  |  |  | 2,573 |  |  |  | 2,038 |
(Loss) gain on sale of securities, net |  |  | (150 | ) |  |  | (54 | ) |  |  | (348 | ) |  |  | 5,248 |  |  |  | 5,127 |
Other income |  |  | 6,837 |  |  |  | 7,266 |  |  |  | 9,965 |  |  |  | 6,411 |  |  |  | 8,397 |
TOTAL NON-INTEREST INCOME |  |  | 40,178 |  |  |  | 42,218 |  |  |  | 46,601 |  |  |  | 48,550 |  |  |  | 47,115 |
NON-INTEREST EXPENSE |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and employee benefits |  |  | 74,135 |  |  |  | 67,906 |  |  |  | 63,832 |  |  |  | 61,902 |  |  |  | 60,261 |
Occupancy expense, net |  |  | 11,004 |  |  |  | 10,023 |  |  |  | 11,033 |  |  |  | 9,361 |  |  |  | 9,103 |
Furniture and equipment expense |  |  | 5,104 |  |  |  | 4,775 |  |  |  | 4,721 |  |  |  | 4,895 |  |  |  | 4,859 |
Other real estate and foreclosure expense |  |  | 142 |  |  |  | 343 |  |  |  | 576 |  |  |  | 339 |  |  |  | 863 |
Deposit insurance |  |  | 2,812 |  |  |  | 1,838 |  |  |  | 2,108 |  |  |  | 1,870 |  |  |  | 1,687 |
Merger-related costs |  |  | 19,133 |  |  |  | 1,886 |  |  |  | 13,591 |  |  |  | 1,401 |  |  |  | 686 |
Other operating expenses |  |  | 44,483 |  |  |  | 41,646 |  |  |  | 45,736 |  |  |  | 34,565 |  |  |  | 37,198 |
TOTAL NON-INTEREST EXPENSE |  |  | 156,813 |  |  |  | 128,417 |  |  |  | 141,597 |  |  |  | 114,333 |  |  |  | 114,657 |
NET INCOME BEFORE INCOME TAXES |  |  | 34,605 |  |  |  | 79,321 |  |  |  | 59,393 |  |  |  | 99,344 |  |  |  | 91,942 |
Provision for income taxes |  |  | 7,151 |  |  |  | 14,226 |  |  |  | 11,155 |  |  |  | 18,770 |  |  |  | 17,018 |
NET INCOME |  |  | 27,454 |  |  |  | 65,095 |  |  |  | 48,238 |  |  |  | 80,574 |  |  |  | 74,924 |
Preferred stock dividends |  |  | - |  |  |  | - |  |  |  | 8 |  |  |  | 13 |  |  |  | 13 |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS |  | $ | 27,454 |  |  | $ | 65,095 |  |  | $ | 48,230 |  |  | $ | 80,561 |  |  | $ | 74,911 |
BASIC EARNINGS PER SHARE |  | $ | 0.21 |  |  | $ | 0.58 |  |  | $ | 0.42 |  |  | $ | 0.75 |  |  | $ | 0.69 |
DILUTED EARNINGS PER SHARE |  | $ | 0.21 |  |  | $ | 0.58 |  |  | $ | 0.42 |  |  | $ | 0.74 |  |  | $ | 0.69 |

Simmons First National Corporation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | SFNC |
Consolidated Risk-Based Capital |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
For the Quarters Ended |  |  | Jun 30 |  |  |  | Mar 31 |  |  |  | Dec 31 |  |  |  | Sep 30 |  |  |  | Jun 30 |
(Unaudited) |  |  | 2022 |  |  |  | 2022 |  |  |  | 2021 |  |  |  | 2021 |  |  |  | 2021 |
($ in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tier 1 capital |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Stockholders' equity |  | $ | 3,259,895 |  |  | $ | 2,961,607 |  |  | $ | 3,248,841 |  |  | $ | 3,030,531 |  |  | $ | 3,039,366 |
CECL transition provision (1) |  |  | 92,619 |  |  |  | 92,619 |  |  |  | 114,458 |  |  |  | 122,787 |  |  |  | 128,933 |
Disallowed intangible assets, net of deferred tax |  |  | (1,423,323 | ) |  |  | (1,224,691 | ) |  |  | (1,226,686 | ) |  |  | (1,152,688 | ) |  |  | (1,156,203 | )
Unrealized loss (gain) on AFS securities |  |  | 450,428 |  |  |  | 326,961 |  |  |  | 10,545 |  |  |  | 11,429 |  |  |  | (12,073 | )
Total Tier 1 capital |  |  | 2,379,619 |  |  |  | 2,156,496 |  |  |  | 2,147,158 |  |  |  | 2,012,059 |  |  |  | 2,000,023 |
Tier 2 capital |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Subordinated notes and debentures |  |  | 421,693 |  |  |  | 384,242 |  |  |  | 384,131 |  |  |  | 383,278 |  |  |  | 383,143 |
Qualifying allowance for loan losses and reserve for unfunded commitments |  |  | 114,733 |  |  |  | 78,057 |  |  |  | 71,853 |  |  |  | 60,700 |  |  |  | 79,138 |
Total Tier 2 capital |  |  | 536,426 |  |  |  | 462,299 |  |  |  | 455,984 |  |  |  | 443,978 |  |  |  | 462,281 |
Total risk-based capital |  | $ | 2,916,045 |  |  | $ | 2,618,795 |  |  | $ | 2,603,142 |  |  | $ | 2,456,037 |  |  | $ | 2,462,304 |
Risk weighted assets |  | $ | 19,669,149 |  |  | $ | 15,953,622 |  |  | $ | 15,538,967 |  |  | $ | 14,098,320 |  |  | $ | 14,076,975 |
Adjusted average assets for leverage ratio |  | $ | 25,807,113 |  |  | $ | 23,966,206 |  |  | $ | 23,647,901 |  |  | $ | 22,189,921 |  |  | $ | 22,244,118 |
Ratios at end of quarter |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity to assets |  |  | 11.98 | % |  |  | 12.10 | % |  |  | 13.14 | % |  |  | 13.05 | % |  |  | 12.98 | %
Tangible common equity to tangible assets (2) |  |  | 7.03 | % |  |  | 7.37 | % |  |  | 8.51 | % |  |  | 8.41 | % |  |  | 8.36 | %
Common equity Tier 1 ratio (CET1) |  |  | 12.10 | % |  |  | 13.52 | % |  |  | 13.82 | % |  |  | 14.27 | % |  |  | 14.20 | %
Tier 1 leverage ratio |  |  | 9.22 | % |  |  | 9.00 | % |  |  | 9.08 | % |  |  | 9.07 | % |  |  | 8.99 | %
Tier 1 risk-based capital ratio |  |  | 12.10 | % |  |  | 13.52 | % |  |  | 13.82 | % |  |  | 14.27 | % |  |  | 14.21 | %
Total risk-based capital ratio |  |  | 14.83 | % |  |  | 16.42 | % |  |  | 16.75 | % |  |  | 17.42 | % |  |  | 17.49 | %

(1) The Company has elected to use the CECL transition provision allowed for in the year of adopting ASC 326.

(2) Calculations of tangible common equity to tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release.

Simmons First National Corporation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | SFNC |
Consolidated Investment Securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
For the Quarters Ended |  |  | Jun 30 |  |  |  | Mar 31 |  |  |  | Dec 31 |  |  |  | Sep 30 |  |  |  | Jun 30 |
(Unaudited) |  |  | 2022 |  |  |  | 2022 |  |  |  | 2021 |  |  |  | 2021 |  |  |  | 2021 |
($ in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment Securities - End of Period |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Held-to-Maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government agencies |  | $ | 446,789 |  |  | $ | 232,670 |  |  | $ | 232,609 |  |  | $ | 232,549 |  |  | $ | 77,396 |
Mortgage-backed securities |  |  | 1,244,713 |  |  |  | 112,496 |  |  |  | 70,342 |  |  |  | 57,930 |  |  |  | 60,649 |
State and political subdivisions |  |  | 1,868,924 |  |  |  | 1,194,459 |  |  |  | 1,209,051 |  |  |  | 1,209,091 |  |  |  | 793,307 |
Other securities |  |  | 259,256 |  |  |  | 17,200 |  |  |  | 17,219 |  |  |  | 17,227 |  |  |  | - |
Total held-to-maturity (net of credit losses) |  |  | 3,819,682 |  |  |  | 1,556,825 |  |  |  | 1,529,221 |  |  |  | 1,516,797 |  |  |  | 931,352 |
Available-for-Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury |  | $ | 1,441 |  |  | $ | - |  |  | $ | 300 |  |  | $ | 300 |  |  | $ | 600 |
U.S. Government agencies |  |  | 198,333 |  |  |  | 333,231 |  |  |  | 364,641 |  |  |  | 354,382 |  |  |  | 554,937 |
Mortgage-backed securities |  |  | 2,963,934 |  |  |  | 4,166,108 |  |  |  | 4,448,616 |  |  |  | 4,421,620 |  |  |  | 3,987,209 |
State and political subdivisions |  |  | 915,255 |  |  |  | 1,653,694 |  |  |  | 1,819,658 |  |  |  | 1,575,208 |  |  |  | 1,557,497 |
Other securities |  |  | 262,684 |  |  |  | 487,036 |  |  |  | 480,330 |  |  |  | 470,693 |  |  |  | 456,338 |
Total available-for-sale (net of credit losses) |  |  | 4,341,647 |  |  |  | 6,640,069 |  |  |  | 7,113,545 |  |  |  | 6,822,203 |  |  |  | 6,556,581 |
Total investment securities (net of credit losses) |  | $ | 8,161,329 |  |  | $ | 8,196,894 |  |  | $ | 8,642,766 |  |  | $ | 8,339,000 |  |  | $ | 7,487,933 |
Fair value - HTM investment securities |  | $ | 3,278,982 |  |  | $ | 1,307,058 |  |  | $ | 1,517,378 |  |  | $ | 1,487,916 |  |  | $ | 935,596 |
Investment Securities - QTD Average |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Taxable securities |  | $ | 5,674,470 |  |  | $ | 5,688,306 |  |  | $ | 5,790,429 |  |  | $ | 5,475,932 |  |  | $ | 4,265,545 |
Tax exempt securities |  |  | 2,725,610 |  |  |  | 2,844,777 |  |  |  | 2,787,301 |  |  |  | 2,496,958 |  |  |  | 2,157,076 |
Total investment securities - QTD average |  | $ | 8,400,080 |  |  | $ | 8,533,083 |  |  | $ | 8,577,730 |  |  | $ | 7,972,890 |  |  | $ | 6,422,621 |

Simmons First National Corporation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | SFNC |
Consolidated Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
For the Quarters Ended |  |  | Jun 30 |  |  |  | Mar 31 |  |  |  | Dec 31 |  |  |  | Sep 30 |  |  |  | Jun 30 |
(Unaudited) |  |  | 2022 |  |  |  | 2022 |  |  |  | 2021 |  |  |  | 2021 |  |  |  | 2021 |
($ in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loan Portfolio - End of Period |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  | $ | 189,684 |  |  | $ | 184,372 |  |  | $ | 187,052 |  |  | $ | 175,884 |  |  | $ | 177,634 |
Other consumer |  |  | 204,692 |  |  |  | 180,602 |  |  |  | 168,318 |  |  |  | 182,492 |  |  |  | 181,712 |
Total consumer |  |  | 394,376 |  |  |  | 364,974 |  |  |  | 355,370 |  |  |  | 358,376 |  |  |  | 359,346 |
Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  | 2,082,688 |  |  |  | 1,423,445 |  |  |  | 1,326,371 |  |  |  | 1,229,740 |  |  |  | 1,428,165 |
Single-family residential |  |  | 2,357,942 |  |  |  | 2,042,978 |  |  |  | 2,101,975 |  |  |  | 1,540,701 |  |  |  | 1,608,028 |
Other commercial real estate |  |  | 7,082,055 |  |  |  | 5,762,567 |  |  |  | 5,738,904 |  |  |  | 5,308,902 |  |  |  | 5,332,655 |
Total real estate |  |  | 11,522,685 |  |  |  | 9,228,990 |  |  |  | 9,167,250 |  |  |  | 8,079,343 |  |  |  | 8,368,848 |
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | 2,612,256 |  |  |  | 2,016,405 |  |  |  | 1,992,043 |  |  |  | 1,821,905 |  |  |  | 2,074,729 |
Agricultural |  |  | 218,743 |  |  |  | 150,465 |  |  |  | 168,717 |  |  |  | 216,735 |  |  |  | 193,462 |
Total commercial |  |  | 2,830,999 |  |  |  | 2,166,870 |  |  |  | 2,160,760 |  |  |  | 2,038,640 |  |  |  | 2,268,191 |
Other |  |  | 362,284 |  |  |  | 267,759 |  |  |  | 329,123 |  |  |  | 348,868 |  |  |  | 389,967 |
Total loans |  | $ | 15,110,344 |  |  | $ | 12,028,593 |  |  | $ | 12,012,503 |  |  | $ | 10,825,227 |  |  | $ | 11,386,352 |

Simmons First National Corporation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | SFNC |
Consolidated Allowance and Asset Quality |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
For the Quarters Ended |  |  | Jun 30 |  |  |  | Mar 31 |  |  |  | Dec 31 |  |  |  | Sep 30 |  |  |  | Jun 30 |
(Unaudited) |  |  | 2022 |  |  |  | 2022 |  |  |  | 2021 |  |  |  | 2021 |  |  |  | 2021 |
($ in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for Credit Losses on Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 178,924 |  |  | $ | 205,332 |  |  | $ | 202,508 |  |  | $ | 227,239 |  |  | $ | 235,116 |
Day 1 PCD allowance from acquisitions |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Landmark (10/08/2021) |  |  | - |  |  |  |  |  |  |  | 2,359 |  |  |  |  |  |  |  |  |
Triumph (10/08/2021) |  |  | - |  |  |  |  |  |  |  | 11,092 |  |  |  |  |  |  |  |  |
Spirit of Texas (01/08/2022) |  |  | 4,043 |  |  |  |  |  |  |  | - |  |  |  |  |  |  |  |  |
Total Day 1 PCD allowance |  |  | 4,043 |  |  |  |  |  |  |  | 13,451 |  |  |  |  |  |  |  |  |
Loans charged off |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  |  | 1,004 |  |  |  | 920 |  |  |  | 865 |  |  |  | 711 |  |  |  | 1,046 |
Other consumer |  |  | 518 |  |  |  | 414 |  |  |  | 477 |  |  |  | 463 |  |  |  | 411 |
Real estate |  |  | 115 |  |  |  | 485 |  |  |  | 2,624 |  |  |  | 5,941 |  |  |  | 439 |
Commercial |  |  | 688 |  |  |  | 6,319 |  |  |  | 8,513 |  |  |  | 932 |  |  |  | 309 |
Total loans charged off |  |  | 2,325 |  |  |  | 8,138 |  |  |  | 12,479 |  |  |  | 8,047 |  |  |  | 2,205 |
Recoveries of loans previously charged off |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  |  | 249 |  |  |  | 274 |  |  |  | 247 |  |  |  | 267 |  |  |  | 244 |
Other consumer |  |  | 302 |  |  |  | 387 |  |  |  | 267 |  |  |  | 408 |  |  |  | 425 |
Real estate |  |  | 391 |  |  |  | 426 |  |  |  | 916 |  |  |  | 2,068 |  |  |  | 1,523 |
Commercial |  |  | 621 |  |  |  | 557 |  |  |  | 1,730 |  |  |  | 463 |  |  |  | 2,147 |
Total recoveries |  |  | 1,563 |  |  |  | 1,644 |  |  |  | 3,160 |  |  |  | 3,206 |  |  |  | 4,339 |
Net loans charged off |  |  | 762 |  |  |  | 6,494 |  |  |  | 9,319 |  |  |  | 4,841 |  |  |  | (2,134 | )
Provision for credit losses on loans |  |  | 30,406 |  |  |  | (19,914 | ) |  |  | (1,308 | ) |  |  | (19,890 | ) |  |  | (10,011 | )
Balance, end of quarter |  | $ | 212,611 |  |  | $ | 178,924 |  |  | $ | 205,332 |  |  | $ | 202,508 |  |  | $ | 227,239 |
Non-performing assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-performing loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Nonaccrual loans |  | $ | 62,670 |  |  | $ | 64,096 |  |  | $ | 68,204 |  |  | $ | 59,054 |  |  | $ | 80,282 |
Loans past due 90 days or more |  |  | 904 |  |  |  | 240 |  |  |  | 349 |  |  |  | 334 |  |  |  | 653 |
Total non-performing loans |  |  | 63,574 |  |  |  | 64,336 |  |  |  | 68,553 |  |  |  | 59,388 |  |  |  | 80,935 |
Other non-performing assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreclosed assets and other real estate owned |  |  | 4,084 |  |  |  | 5,118 |  |  |  | 6,032 |  |  |  | 11,759 |  |  |  | 15,239 |
Other non-performing assets |  |  | 2,314 |  |  |  | 1,479 |  |  |  | 1,667 |  |  |  | 1,724 |  |  |  | 1,062 |
Total other non-performing assets |  |  | 6,398 |  |  |  | 6,597 |  |  |  | 7,699 |  |  |  | 13,483 |  |  |  | 16,301 |
Total non-performing assets |  | $ | 69,972 |  |  | $ | 70,933 |  |  | $ | 76,252 |  |  | $ | 72,871 |  |  | $ | 97,236 |
Performing TDRs (troubled debt restructurings) |  | $ | 2,655 |  |  | $ | 3,424 |  |  | $ | 4,289 |  |  | $ | 4,251 |  |  | $ | 4,436 |
Ratios |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses on loans to total loans |  |  | 1.41 | % |  |  | 1.49 | % |  |  | 1.71 | % |  |  | 1.87 | % |  |  | 2.00 | %
Allowance for credit losses to non-performing loans |  |  | 334 | % |  |  | 278 | % |  |  | 300 | % |  |  | 341 | % |  |  | 281 | %
Non-performing loans to total loans |  |  | 0.42 | % |  |  | 0.53 | % |  |  | 0.57 | % |  |  | 0.55 | % |  |  | 0.71 | %
Non-performing assets (including performing TDRs) to total assets |  |  | 0.27 | % |  |  | 0.30 | % |  |  | 0.33 | % |  |  | 0.33 | % |  |  | 0.43 | %
Non-performing assets to total assets |  |  | 0.26 | % |  |  | 0.29 | % |  |  | 0.31 | % |  |  | 0.31 | % |  |  | 0.42 | %
Annualized net charge offs to total loans |  |  | 0.02 | % |  |  | 0.22 | % |  |  | 0.31 | % |  |  | 0.17 | % |  |  | -0.07 | %
Annualized net credit card charge offs to total credit card loans |  |  | 1.55 | % |  |  | 1.39 | % |  |  | 1.29 | % |  |  | 0.96 | % |  |  | 1.78 | %

Simmons First National Corporation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | SFNC |
Consolidated - Average Balance Sheet and Net Interest Income Analysis |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
For the Quarters Ended |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(Unaudited) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Three Months Ended Jun 2022 |  |  |  | Three Months Ended Mar 2022 |  |  |  | Three Months Ended Jun 2021 |
($ in thousands) |  |  | Average Balance |  |  |  | Income/ Expense |  |  |  | Yield/ Rate |  |  |  | Average Balance |  |  |  | Income/ Expense |  |  |  | Yield/ Rate |  |  |  | Average Balance |  |  |  | Income/ Expense |  |  |  | Yield/ Rate |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest bearing balances due from banks and federal funds sold |  | $ | 777,098 |  |  | $ | 1,117 |  |  |  | 0.58 | % |  | $ | 1,728,694 |  |  | $ | 649 |  |  |  | 0.15 | % |  | $ | 2,703,920 |  |  | $ | 651 |  |  |  | 0.10 | %
Investment securities - taxable |  |  | 5,674,470 |  |  |  | 21,794 |  |  |  | 1.54 | % |  |  | 5,688,306 |  |  |  | 18,148 |  |  |  | 1.29 | % |  |  | 4,265,545 |  |  |  | 14,594 |  |  |  | 1.37 | %
Investment securities - non-taxable (FTE) |  |  | 2,725,610 |  |  |  | 21,733 |  |  |  | 3.20 | % |  |  | 2,844,777 |  |  |  | 20,937 |  |  |  | 2.98 | % |  |  | 2,157,076 |  |  |  | 16,899 |  |  |  | 3.14 | %
Mortgage loans held for sale |  |  | 17,173 |  |  |  | 200 |  |  |  | 4.67 | % |  |  | 27,633 |  |  |  | 190 |  |  |  | 2.79 | % |  |  | 49,262 |  |  |  | 386 |  |  |  | 3.14 | %
Other loans held for sale |  |  | 22,114 |  |  |  | 2,063 |  |  |  | 37.42 | % |  |  | - |  |  |  | - |  |  |  | 0.00 | % |  |  | - |  |  |  | - |  |  |  | 0.00 | %
Loans - including fees (FTE) |  |  | 14,478,183 |  |  |  | 163,995 |  |  |  | 4.54 | % |  |  | 11,895,805 |  |  |  | 127,405 |  |  |  | 4.34 | % |  |  | 11,783,839 |  |  |  | 138,987 |  |  |  | 4.73 | %
Total interest earning assets (FTE) |  |  | 23,694,648 |  |  |  | 210,902 |  |  |  | 3.57 | % |  |  | 22,185,215 |  |  |  | 167,329 |  |  |  | 3.06 | % |  |  | 20,959,642 |  |  |  | 171,517 |  |  |  | 3.28 | %
Non-earning assets |  |  | 3,074,384 |  |  |  |  |  |  |  |  |  |  |  | 2,640,984 |  |  |  |  |  |  |  |  |  |  |  | 2,298,279 |  |  |  |  |  |  |  |  |
Total assets |  | $ | 26,769,032 |  |  |  |  |  |  |  |  |  |  | $ | 24,826,199 |  |  |  |  |  |  |  |  |  |  | $ | 23,257,921 |  |  |  |  |  |  |  |  |
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest bearing transaction and savings accounts |  | $ | 12,807,502 |  |  | $ | 6,879 |  |  |  | 0.22 | % |  | $ | 12,083,516 |  |  | $ | 4,314 |  |  |  | 0.14 | % |  | $ | 10,403,932 |  |  | $ | 4,721 |  |  |  | 0.18 | %
Time deposits |  |  | 2,586,567 |  |  |  | 2,875 |  |  |  | 0.45 | % |  |  | 2,241,123 |  |  |  | 2,503 |  |  |  | 0.45 | % |  |  | 2,930,025 |  |  |  | 6,061 |  |  |  | 0.83 | %
Total interest bearing deposits |  |  | 15,394,069 |  |  |  | 9,754 |  |  |  | 0.25 | % |  |  | 14,324,639 |  |  |  | 6,817 |  |  |  | 0.19 | % |  |  | 13,333,957 |  |  |  | 10,782 |  |  |  | 0.32 | %
Federal funds purchased and securities sold under agreement to repurchase |  |  | 210,280 |  |  |  | 119 |  |  |  | 0.23 | % |  |  | 218,186 |  |  |  | 68 |  |  |  | 0.13 | % |  |  | 240,876 |  |  |  | 192 |  |  |  | 0.32 | %
Other borrowings |  |  | 1,241,501 |  |  |  | 4,844 |  |  |  | 1.56 | % |  |  | 1,337,654 |  |  |  | 4,779 |  |  |  | 1.45 | % |  |  | 1,340,008 |  |  |  | 4,897 |  |  |  | 1.47 | %
Subordinated notes and debentures |  |  | 418,327 |  |  |  | 4,990 |  |  |  | 4.78 | % |  |  | 384,187 |  |  |  | 4,457 |  |  |  | 4.70 | % |  |  | 383,078 |  |  |  | 4,565 |  |  |  | 4.78 | %
Total interest bearing liabilities |  |  | 17,264,177 |  |  |  | 19,707 |  |  |  | 0.46 | % |  |  | 16,264,666 |  |  |  | 16,121 |  |  |  | 0.40 | % |  |  | 15,297,919 |  |  |  | 20,436 |  |  |  | 0.54 | %
Non-interest bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-interest bearing deposits |  |  | 5,926,304 |  |  |  |  |  |  |  |  |  |  |  | 5,184,828 |  |  |  |  |  |  |  |  |  |  |  | 4,826,927 |  |  |  |  |  |  |  |  |
Other liabilities |  |  | 216,848 |  |  |  |  |  |  |  |  |  |  |  | 207,597 |  |  |  |  |  |  |  |  |  |  |  | 151,699 |  |  |  |  |  |  |  |  |
Total liabilities |  |  | 23,407,329 |  |  |  |  |  |  |  |  |  |  |  | 21,657,091 |  |  |  |  |  |  |  |  |  |  |  | 20,276,545 |  |  |  |  |  |  |  |  |
Stockholders' equity |  |  | 3,361,703 |  |  |  |  |  |  |  |  |  |  |  | 3,169,108 |  |  |  |  |  |  |  |  |  |  |  | 2,981,376 |  |  |  |  |  |  |  |  |
Total liabilities and stockholders' equity |  | $ | 26,769,032 |  |  |  |  |  |  |  |  |  |  | $ | 24,826,199 |  |  |  |  |  |  |  |  |  |  | $ | 23,257,921 |  |  |  |  |  |  |  |  |
Net interest income (FTE) |  |  |  |  |  | $ | 191,195 |  |  |  |  |  |  |  |  |  |  | $ | 151,208 |  |  |  |  |  |  |  |  |  |  | $ | 151,081 |  |  |  |  |
Net interest spread (FTE) |  |  |  |  |  |  |  |  |  |  | 3.11 | % |  |  |  |  |  |  |  |  |  |  | 2.66 | % |  |  |  |  |  |  |  |  |  |  | 2.74 | %
Net interest margin (FTE) - quarter-to-date |  |  |  |  |  |  |  |  |  |  | 3.24 | % |  |  |  |  |  |  |  |  |  |  | 2.76 | % |  |  |  |  |  |  |  |  |  |  | 2.89 | %
Net interest margin (FTE) - year-to-date |  |  |  |  |  |  |  |  |  |  | 3.01 | % |  |  |  |  |  |  |  |  |  |  | 2.76 | % |  |  |  |  |  |  |  |  |  |  | 2.94 | %

Simmons First National Corporation |  |  |  |  |  |  |  |  |  |  |  | SFNC |
Consolidated - Selected Financial Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
For the Quarters Ended |  |  | Jun 30 |  |  |  | Mar 31 |  |  |  | Dec 31 |  |  |  | Sep 30 |  |  |  | Jun 30 |
(Unaudited) |  |  | 2022 |  |  |  | 2022 |  |  |  | 2021 |  |  |  | 2021 |  |  |  | 2021 |
($ in thousands, except share data) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
QUARTER-TO-DATE |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial Highlights - GAAP |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net Income |  | $ | 27,454 |  |  | $ | 65,095 |  |  | $ | 48,230 |  |  | $ | 80,561 |  |  | $ | 74,911 |
Diluted earnings per share |  |  | 0.21 |  |  |  | 0.58 |  |  |  | 0.42 |  |  |  | 0.74 |  |  |  | 0.69 |
Return on average assets |  |  | 0.41 | % |  |  | 1.06 | % |  |  | 0.77 | % |  |  | 1.37 | % |  |  | 1.29 | %
Return on average common equity |  |  | 3.28 | % |  |  | 8.33 | % |  |  | 5.87 | % |  |  | 10.42 | % |  |  | 10.08 | %
Return on tangible common equity |  |  | 6.28 | % |  |  | 14.31 | % |  |  | 9.98 | % |  |  | 17.43 | % |  |  | 17.25 | %
Net interest margin (FTE) |  |  | 3.24 | % |  |  | 2.76 | % |  |  | 2.86 | % |  |  | 2.85 | % |  |  | 2.89 | %
FTE adjustment |  |  | 6,096 |  |  |  | 5,602 |  |  |  | 5,579 |  |  |  | 4,941 |  |  |  | 4,548 |
Average diluted shares outstanding |  |  | 128,720,078 |  |  |  | 113,026,911 |  |  |  | 114,491,119 |  |  |  | 108,359,890 |  |  |  | 108,822,175 |
Shares repurchased under plan |  |  | 2,035,324 |  |  |  | 513,725 |  |  |  | 2,625,348 |  |  |  | 1,806,205 |  |  |  | - |
Average price of shares repurchased |  |  | 24.57 |  |  |  | 31.25 |  |  |  | 29.69 |  |  |  | 28.48 |  |  |  | - |
Cash dividends declared per common share |  |  | 0.19 |  |  |  | 0.19 |  |  |  | 0.18 |  |  |  | 0.18 |  |  |  | 0.18 |
Accretable yield on acquired loans |  |  | 9,898 |  |  |  | 3,703 |  |  |  | 5,758 |  |  |  | 4,122 |  |  |  | 5,619 |
Efficiency ratio (non-GAAP) (1) |  |  | 57.49 | % |  |  | 62.95 | % |  |  | 59.48 | % |  |  | 58.10 | % |  |  | 56.75 | %
END OF PERIOD |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Book value per share |  | $ | 25.31 |  |  | $ | 26.32 |  |  | $ | 28.82 |  |  | $ | 28.42 |  |  | $ | 28.03 |
Tangible book value per share |  |  | 14.07 |  |  |  | 15.22 |  |  |  | 17.71 |  |  |  | 17.39 |  |  |  | 17.16 |
Shares outstanding |  |  | 128,787,764 |  |  |  | 112,505,555 |  |  |  | 112,715,444 |  |  |  | 106,603,231 |  |  |  | 108,386,669 |
Full-time equivalent employees |  |  | 3,233 |  |  |  | 2,893 |  |  |  | 2,877 |  |  |  | 2,740 |  |  |  | 2,783 |
Total number of financial centers |  |  | 233 |  |  |  | 197 |  |  |  | 199 |  |  |  | 185 |  |  |  | 198 |

(1) Efficiency ratio is adjusted non-interest expense before foreclosed property expense and amortization of intangibles as a percent of net interest income (fully taxable equivalent) and non-interest revenues, excluding gains and losses from securities transactions and 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 |  |  | Jun 30 |  |  |  | Mar 31 |  |  |  | Dec 31 |  |  |  | Sep 30 |  |  |  | Jun 30 |
(Unaudited) |  |  | 2022 |  |  |  | 2022 |  |  |  | 2021 |  |  |  | 2021 |  |  |  | 2021 |
($ in thousands, except per share data) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
QUARTER-TO-DATE |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net Income |  | $ | 27,454 |  |  | $ | 65,095 |  |  | $ | 48,230 |  |  | $ | 80,561 |  |  | $ | 74,911 |
Certain items |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gain on sale of branches |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (16 | )
Merger-related costs |  |  | 19,133 |  |  |  | 1,886 |  |  |  | 13,591 |  |  |  | 1,401 |  |  |  | 686 |
Branch right-sizing (net) |  |  | 380 |  |  |  | 909 |  |  |  | 1,648 |  |  |  | (3,041 | ) |  |  | 39 |
Day 2 CECL provision |  |  | 33,779 |  |  |  | - |  |  |  | 22,688 |  |  |  | - |  |  |  |  |
Tax effect (1) |  |  | (13,928 | ) |  |  | (731 | ) |  |  | (9,912 | ) |  |  | 429 |  |  |  | (185 | )
Certain items, net of tax |  |  | 39,364 |  |  |  | 2,064 |  |  |  | 28,015 |  |  |  | (1,211 | ) |  |  | 524 |
Adjusted earnings (non-GAAP) |  | $ | 66,818 |  |  | $ | 67,159 |  |  | $ | 76,245 |  |  | $ | 79,350 |  |  | $ | 75,435 |
Diluted earnings per share |  | $ | 0.21 |  |  | $ | 0.58 |  |  | $ | 0.42 |  |  | $ | 0.74 |  |  | $ | 0.69 |
Certain items |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gain on sale of branches |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Merger-related costs |  |  | 0.15 |  |  |  | 0.01 |  |  |  | 0.12 |  |  |  | 0.01 |  |  |  | 0.01 |
Branch right-sizing (net) |  |  | - |  |  |  | 0.01 |  |  |  | 0.01 |  |  |  | (0.03 | ) |  |  | - |
Day 2 CECL provision |  |  | 0.27 |  |  |  |  |  |  |  | 0.20 |  |  |  |  |  |  |  |  |
Tax effect (1) |  |  | (0.11 | ) |  |  | (0.01 | ) |  |  | (0.09 | ) |  |  | 0.01 |  |  |  | (0.01 | )
Certain items, net of tax |  |  | 0.31 |  |  |  | 0.01 |  |  |  | 0.24 |  |  |  | (0.01 | ) |  |  | - |
Adjusted diluted earnings per share (non-GAAP) |  | $ | 0.52 |  |  | $ | 0.59 |  |  | $ | 0.66 |  |  | $ | 0.73 |  |  | $ | 0.69 |

(1) Effective tax rate of 26.135%.

Reconciliation of Certain Adjusting Non-Interest Income and Expense Items (non-GAAP)

QUARTER-TO-DATE |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other income |  | $ | 6,837 |  |  | $ | 7,266 |  |  | $ | 9,965 |  |  | $ | 6,411 |  |  | $ | 8,397 |
Adjusting items (1) |  |  | 88 |  |  |  | - |  |  |  | (2 | ) |  |  | 239 |  |  |  | (445 | )
Adjusted other income (non-GAAP) |  | $ | 6,925 |  |  | $ | 7,266 |  |  | $ | 9,963 |  |  | $ | 6,650 |  |  | $ | 7,952 |
Non-interest expense |  | $ | 156,813 |  |  | $ | 128,417 |  |  | $ | 141,597 |  |  | $ | 114,333 |  |  | $ | 114,657 |
Adjusting items (1) |  |  | (19,425 | ) |  |  | (2,795 | ) |  |  | (15,241 | ) |  |  | 1,879 |  |  |  | (1,154 | )
Adjusted non-interest expense (non-GAAP) |  | $ | 137,388 |  |  | $ | 125,622 |  |  | $ | 126,356 |  |  | $ | 116,212 |  |  | $ | 113,503 |
Salaries and employee benefits |  | $ | 74,135 |  |  | $ | 67,906 |  |  | $ | 63,832 |  |  | $ | 61,902 |  |  | $ | 60,261 |
Adjusting items (1) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (66 | ) |  |  | - |
Adjusted salaries and employee benefits (non-GAAP) |  | $ | 74,135 |  |  | $ | 67,906 |  |  | $ | 63,832 |  |  | $ | 61,836 |  |  | $ | 60,261 |
Other operating expenses |  | $ | 44,483 |  |  | $ | 41,646 |  |  | $ | 45,736 |  |  | $ | 34,565 |  |  | $ | 37,198 |
Adjusting items (1) |  |  | (7 | ) |  |  | (717 | ) |  |  | 96 |  |  |  | 3,759 |  |  |  | (89 | )
Adjusted other operating expenses (non-GAAP) |  | $ | 44,476 |  |  | $ | 40,929 |  |  | $ | 45,832 |  |  | $ | 38,324 |  |  | $ | 37,109 |

(1) Adjusting items include gain on sale of branches, merger related costs and branch right-sizing costs.

Simmons First National Corporation |  |  |  |  |  |  |  |  |  |  | SFNC |
Reconciliation Of Non-GAAP Financial Measures - End of Period |  |  |  |  |  |  |  |  |
For the Quarters Ended |  |  | Jun 30 |  |  |  | Mar 31 |  |  |  | Dec 31 |  |  |  | Sep 30 |  |  |  | Jun 30 |
(Unaudited) |  |  | 2022 |  |  |  | 2022 |  |  |  | 2021 |  |  |  | 2021 |  |  |  | 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 |  | $ | 3,259,895 |  |  | $ | 2,961,607 |  |  | $ | 3,248,841 |  |  | $ | 3,029,764 |  |  | $ | 3,038,599 |
Intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | (1,310,528 | ) |  |  | (1,147,007 | ) |  |  | (1,146,007 | ) |  |  | (1,075,305 | ) |  |  | (1,075,305 | )
Other intangible assets |  |  | (137,285 | ) |  |  | (102,748 | ) |  |  | (106,235 | ) |  |  | (100,428 | ) |  |  | (103,759 | )
Total intangibles |  |  | (1,447,813 | ) |  |  | (1,249,755 | ) |  |  | (1,252,242 | ) |  |  | (1,175,733 | ) |  |  | (1,179,064 | )
Tangible common stockholders' equity |  | $ | 1,812,082 |  |  | $ | 1,711,852 |  |  | $ | 1,996,599 |  |  | $ | 1,854,031 |  |  | $ | 1,859,535 |
Total assets |  | $ | 27,218,609 |  |  | $ | 24,482,268 |  |  | $ | 24,724,759 |  |  | $ | 23,225,930 |  |  | $ | 23,423,159 |
Intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | (1,310,528 | ) |  |  | (1,147,007 | ) |  |  | (1,146,007 | ) |  |  | (1,075,305 | ) |  |  | (1,075,305 | )
Other intangible assets |  |  | (137,285 | ) |  |  | (102,748 | ) |  |  | (106,235 | ) |  |  | (100,428 | ) |  |  | (103,759 | )
Total intangibles |  |  | (1,447,813 | ) |  |  | (1,249,755 | ) |  |  | (1,252,242 | ) |  |  | (1,175,733 | ) |  |  | (1,179,064 | )
Tangible assets |  | $ | 25,770,796 |  |  | $ | 23,232,513 |  |  | $ | 23,472,517 |  |  | $ | 22,050,197 |  |  | $ | 22,244,095 |
Paycheck protection program ("PPP") loans |  |  | (19,476 | ) |  |  | (61,887 | ) |  |  | (116,659 | ) |  |  | (212,087 | ) |  |  | (441,353 | )
Total assets excluding PPP loans |  | $ | 27,199,133 |  |  | $ | 24,420,381 |  |  | $ | 24,608,100 |  |  | $ | 23,013,843 |  |  | $ | 22,981,806 |
Tangible assets excluding PPP loans |  | $ | 25,751,320 |  |  | $ | 23,170,626 |  |  | $ | 23,355,858 |  |  | $ | 21,838,110 |  |  | $ | 21,802,742 |
Ratio of common equity to assets |  |  | 11.98 | % |  |  | 12.10 | % |  |  | 13.14 | % |  |  | 13.04 | % |  |  | 12.97 | %
Ratio of common equity to assets excluding PPP loans |  |  | 11.99 | % |  |  | 12.13 | % |  |  | 13.20 | % |  |  | 13.16 | % |  |  | 13.22 | %
Ratio of tangible common equity to tangible assets |  |  | 7.03 | % |  |  | 7.37 | % |  |  | 8.51 | % |  |  | 8.41 | % |  |  | 8.36 | %
Ratio of tangible common equity to tangible assets excluding PPP loans |  |  | 7.04 | % |  |  | 7.39 | % |  |  | 8.55 | % |  |  | 8.49 | % |  |  | 8.53 | %
Calculation of Tangible Book Value per Share |  |  |  |  |  |  |  |  |
Total common stockholders' equity |  | $ | 3,259,895 |  |  | $ | 2,961,607 |  |  | $ | 3,248,841 |  |  | $ | 3,029,764 |  |  | $ | 3,038,599 |
Intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | (1,310,528 | ) |  |  | (1,147,007 | ) |  |  | (1,146,007 | ) |  |  | (1,075,305 | ) |  |  | (1,075,305 | )
Other intangible assets |  |  | (137,285 | ) |  |  | (102,748 | ) |  |  | (106,235 | ) |  |  | (100,428 | ) |  |  | (103,759 | )
Total intangibles |  |  | (1,447,813 | ) |  |  | (1,249,755 | ) |  |  | (1,252,242 | ) |  |  | (1,175,733 | ) |  |  | (1,179,064 | )
Tangible common stockholders' equity |  | $ | 1,812,082 |  |  | $ | 1,711,852 |  |  | $ | 1,996,599 |  |  | $ | 1,854,031 |  |  | $ | 1,859,535 |
Shares of common stock outstanding |  |  | 128,787,764 |  |  |  | 112,505,555 |  |  |  | 112,715,444 |  |  |  | 106,603,231 |  |  |  | 108,386,669 |
Book value per common share |  | $ | 25.31 |  |  | $ | 26.32 |  |  | $ | 28.82 |  |  | $ | 28.42 |  |  | $ | 28.03 |
Tangible book value per common share |  | $ | 14.07 |  |  | $ | 15.22 |  |  | $ | 17.71 |  |  | $ | 17.39 |  |  | $ | 17.16 |

Simmons First National Corporation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | SFNC |
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
For the Quarters Ended |  |  | Jun 30 |  |  |  | Mar 31 |  |  |  | Dec 31 |  |  |  | Sep 30 |  |  |  | Jun 30 |
(Unaudited) |  |  | 2022 |  |  |  | 2022 |  |  |  | 2021 |  |  |  | 2021 |  |  |  | 2021 |
($ in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Calculation of Efficiency Ratio (1) |  |  |  |  |  |  |  |  |  |  |  |  |
Non-interest expense |  | $ | 156,813 |  |  | $ | 128,417 |  |  | $ | 141,597 |  |  | $ | 114,333 |  |  | $ | 114,657 |
Non-interest expense adjustment |  |  | (19,425 | ) |  |  | (2,795 | ) |  |  | (15,241 | ) |  |  | 1,879 |  |  |  | (1,154 | )
Other real estate and foreclosure expense adjustment |  |  | (142 | ) |  |  | (343 | ) |  |  | (576 | ) |  |  | (339 | ) |  |  | (863 | )
Amortization of intangibles adjustment |  |  | (4,096 | ) |  |  | (3,486 | ) |  |  | (3,486 | ) |  |  | (3,331 | ) |  |  | (3,333 | )
Efficiency ratio numerator |  | $ | 133,150 |  |  | $ | 121,793 |  |  | $ | 122,294 |  |  | $ | 112,542 |  |  | $ | 109,307 |
Net-interest income |  | $ | 185,099 |  |  | $ | 145,606 |  |  | $ | 153,081 |  |  | $ | 145,237 |  |  | $ | 146,533 |
Non-interest income |  |  | 40,178 |  |  |  | 42,218 |  |  |  | 46,601 |  |  |  | 48,550 |  |  |  | 47,115 |
Non-interest income adjustment |  |  | 88 |  |  |  | - |  |  |  | (2 | ) |  |  | 239 |  |  |  | (445 | )
Fully tax-equivalent adjustment (effective tax rate of 26.135%) |  |  | 6,096 |  |  |  | 5,602 |  |  |  | 5,579 |  |  |  | 4,941 |  |  |  | 4,548 |
Loss (gain) on sale of securities |  |  | 150 |  |  |  | 54 |  |  |  | 348 |  |  |  | (5,248 | ) |  |  | (5,127 | )
Efficiency ratio denominator |  | $ | 231,611 |  |  | $ | 193,480 |  |  | $ | 205,607 |  |  | $ | 193,719 |  |  | $ | 192,624 |
Efficiency ratio (1) |  |  | 57.49 | % |  |  | 62.95 | % |  |  | 59.48 | % |  |  | 58.10 | % |  |  | 56.75 | %

(1) Efficiency ratio is adjusted non-interest expense before foreclosed property expense and amortization of intangibles as a percent of net interest income (fully taxable equivalent) and non-interest revenues, excluding gains and losses from securities transactions and certain adjusting items, and is a non-GAAP measurement.

Simmons First National Corporation |  |  |  |  |  |  |  |  |  |  |  | SFNC |
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date (continued) |  |  |  |  |  |  |  |  |
For the Quarters Ended |  |  | Jun 30 |  |  |  | Mar 31 |  |  |  | Dec 31 |  |  |  | Sep 30 |  |  |  | Jun 30 |
(Unaudited) |  |  | 2022 |  |  |  | 2022 |  |  |  | 2021 |  |  |  | 2021 |  |  |  | 2021 |
($ in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Calculation of Adjusted Net Interest Margin |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income |  | $ | 185,099 |  |  | $ | 145,606 |  |  | $ | 153,081 |  |  | $ | 145,237 |  |  | $ | 146,533 |
Fully tax-equivalent adjustment (effective tax rate of 26.135%) |  |  | 6,096 |  |  |  | 5,602 |  |  |  | 5,579 |  |  |  | 4,941 |  |  |  | 4,548 |
Fully tax-equivalent net interest income |  |  | 191,195 |  |  |  | 151,208 |  |  |  | 158,660 |  |  |  | 150,178 |  |  |  | 151,081 |
PPP loan interest income |  |  | (1,648 | ) |  | $ | (2,113 | ) |  | $ | (5,107 | ) |  | $ | (9,614 | ) |  | $ | (8,958 | )
Net interest income adjusted for PPP loans |  | $ | 189,547 |  |  | $ | 149,095 |  |  | $ | 153,553 |  |  | $ | 140,564 |  |  | $ | 142,123 |
Average earning assets |  | $ | 23,694,648 |  |  | $ | 22,185,215 |  |  | $ | 22,029,792 |  |  | $ | 20,901,992 |  |  | $ | 20,959,642 |
Average PPP loan balance |  |  | (43,329 | ) |  |  | (89,757 | ) |  |  | (172,130 | ) |  |  | (359,828 | ) |  |  | (707,296 | )
Average earning assets adjusted for PPP loans |  | $ | 23,651,319 |  |  | $ | 22,095,458 |  |  | $ | 21,857,662 |  |  | $ | 20,542,164 |  |  | $ | 20,252,346 |
Net interest margin |  |  | 3.24 | % |  |  | 2.76 | % |  |  | 2.86 | % |  |  | 2.85 | % |  |  | 2.89 | %
Net interest margin adjusted for PPP loans |  |  | 3.21 | % |  |  | 2.74 | % |  |  | 2.79 | % |  |  | 2.71 | % |  |  | 2.81 | %
Calculation of Pre-Provision Net Revenue (PPNR) |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income |  | $ | 185,099 |  |  | $ | 145,606 |  |  | $ | 153,081 |  |  | $ | 145,237 |  |  | $ | 146,533 |
Non-interest income |  |  | 40,178 |  |  |  | 42,218 |  |  |  | 46,601 |  |  |  | 48,550 |  |  |  | 47,115 |
Less: Gain (loss) on sale of securities |  |  | (150 | ) |  |  | (54 | ) |  |  | (348 | ) |  |  | 5,248 |  |  |  | 5,127 |
Less: Non-interest expense |  |  | 156,813 |  |  |  | 128,417 |  |  |  | 141,597 |  |  |  | 114,333 |  |  |  | 114,657 |
Pre-Provision Net Revenue (PPNR) |  | $ | 68,614 |  |  | $ | 59,461 |  |  | $ | 58,433 |  |  | $ | 74,206 |  |  | $ | 73,864 |
Calculation of Adjusted Pre-Provision Net Revenue |  |  |  |  |  |  |  |  |  |  |  |  |
Pre-Provision Net Revenue (PPNR) |  | $ | 68,614 |  |  | $ | 59,461 |  |  | $ | 58,433 |  |  | $ | 74,206 |  |  | $ | 73,864 |
Less: Gain on sale of branches |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (16 | )
Plus: Merger related costs |  |  | 19,133 |  |  |  | 1,886 |  |  |  | 13,591 |  |  |  | 1,401 |  |  |  | 686 |
Plus: Branch right sizing costs |  |  | 380 |  |  |  | 909 |  |  |  | 1,648 |  |  |  | (3,041 | ) |  |  | 39 |
Adjusted Pre-Provision Net Revenue |  | $ | 88,127 |  |  | $ | 62,256 |  |  | $ | 73,672 |  |  | $ | 72,566 |  |  | $ | 74,573 |