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Simmons Reports First Quarter 2021 Earnings

/EIN News/ -- PINE BLUFF, Ark., April 20, 2021 (GLOBE NEWSWIRE) -- Simmons First National Corporation (NASDAQ: SFNC) (the “Company” or “Simmons”) today announced net income of $67.4 million for the quarter ended March 31, 2021, compared to $77.2 million for the same period in 2020, a decrease of $9.8 million, or 12.7%, due in significant part to the difference in the gains on sale of securities recognized during the periods. Diluted earnings per share were $0.62, a decrease of $0.06, or 8.8%, compared to the same period in the prior year. Included in first quarter 2021 results were $634,000 in net after-tax merger-related and net branch right-sizing costs as well as a $4.0 million after-tax gain primarily associated with the sale of branches in Illinois.

Excluding the impact of these items, core earnings were $64.0 million for the quarter ended March 31, 2021, compared to $73.8 million for the quarter ended March 31, 2020, a decrease of $9.8 million, or 13.3%. Core diluted earnings per share were $0.59, a decrease of $0.06, or 9.2%, from the same period in 2020.

“We are very pleased with our solid performance in the first quarter. It reflects the benefit of our diverse operating model,” said George A. Makris, Jr., chairman and CEO of Simmons First National Corporation. “We are still feeling the effects of COVID in the economy. Some industries are still struggling to return to pre-COVID levels of performance and the government’s economic stimulus packages have created a rapid rise in liquidity. Loan demand has been well below historical levels, but we are encouraged by the rebuilding of the pipeline during the first quarter. Asset quality has improved as compared to 2020 and we are optimistic that trend will continue. Based on our current levels of capital and liquidity, we have lending capacity that we have not seen in several years, so Simmons is poised to do our part as the economy continues to return to normal.”

Selected Highlights:	1^st Qtr 2021	4^th Qtr 2020	1^st Qtr 2020
Net income	$67.4 million	$53.0 million	$77.2 million
Diluted earnings per share	$0.62	$0.49	$0.68
Return on avg assets	1.20%	0.96%	1.48%
Return on avg common equity	9.20%	7.13%	10.83%
Return on tangible common equity ⁽¹⁾	15.85%	12.48%	19.00%

Core earnings ⁽²⁾	$64.0 million	$62.0 million	$73.8 million
Core diluted earnings per share ⁽²⁾	$0.59	$0.57	$0.65
Core return on avg assets ⁽²⁾	1.14%	1.13%	1.42%
Core return on avg common equity ⁽²⁾	8.73%	8.34%	10.35%
Core return on tangible common equity ⁽¹⁾⁽²⁾	15.08%	14.51%	18.19%
Efficiency ratio ⁽³⁾	57.77%	55.27%	57.79%
Adjusted pre-tax, pre-provision earnings ⁽²⁾	$73.1 million	$83.1 million	$84.4 million

(1)		Return on tangible common equity excludes goodwill and other intangible assets and is a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
(2)		Core figures exclude non-core items and are non-GAAP measurements. Adjusted pre-tax, pre-provision earnings excludes provision for income taxes, provisions for credit losses and unfunded commitments, gains on sales of securities, and other pre-tax, non-core items, and is also a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
(3)		Efficiency ratio is core non-interest expense before foreclosed property expense and amortization of intangibles, as a percent of net interest income (fully taxable equivalent) and non-interest revenues, excluding gains and losses from securities transactions and non-core items, and is a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

Loans

($ in billions)	1^st Qtr 2021		4^th Qtr 2020		1^st Qtr 2020
Total loans	$12.20		$12.90		$14.37

Total loans were $12.2 billion at March 31, 2021, a decrease of $705.0 million on a linked-quarter basis. Of this decrease, $228.7 million was related to declines in seasonal credit card and agricultural portfolios ($33.4 million), Paycheck Protection Program (“PPP”) loans ($107.1 million) and mortgage warehouse line of credit ($88.2 million). The remaining decrease was related in significant part to planned loan payoffs, normal paydowns and weakened loan demand as a result of the economic uncertainty stemming from the COVID-19 pandemic.

Loan demand appears to be recovering going into the second quarter of 2021. The Company’s total loan pipeline consisting of all loan opportunities was $1.2 billion at March 31, 2021 compared to $674 million at December 31, 2020. Loans approved and ready to close were $284 million as of March 31, 2021.

As of March 31, 2021, the Company had $797.6 million in loans outstanding under the PPP. The change in the total PPP loan balance during the first quarter of 2021 was as follows:

($ in millions)	PPP Round 1	PPP Round 2	Total PPP Loans
Beginning balance, January 1, 2021	$904.7	$ -	$904.7
PPP loan originations	-	227.9	227.9
PPP loan forgiveness and repayments	(335.0)	-	(335.0)
Ending balance, March 31, 2021	$569.7	$227.9	$797.6

Deposits

($ in billions)	1^st Qtr 2021	4^th Qtr 2020	1^st Qtr 2020
Total deposits	$18.2	$17.0	$15.6
Non-interest bearing deposits	$4.9	$4.5	$3.6
Interest bearing deposits	$10.3	$9.7	$8.8
Time deposits	$3.0	$2.8	$3.2

Total deposits were $18.2 billion at March 31, 2021, representing increases of $2.6 billion, or 16.9%, since March 31, 2020 and $1.2 billion, or 7.1% since last quarter. The increase in deposit balances was driven in significant part by multiple rounds of economic stimulus legislation and changes in customer spending as a result of the ongoing COVID-19 pandemic. Trends affected by the increasing customer cash balances are paydowns on loans, decreased loan demand, reduced credit card balances and fewer overdraft activities.

Net Interest Income

	1^st Qtr 2021	4^th Qtr 2020	3^rd Qtr 2020	2^nd Qtr 2020	1^st Qtr 2020
Loan yield ⁽¹⁾	4.75%	4.74%	4.54%	4.84%	5.19%
Core loan yield ^{(1) (2)}	4.53%	4.47%	4.29%	4.52%	4.86%
Security yield ⁽¹⁾	2.36%	2.48%	2.60%	2.50%	2.63%
Cost of interest bearing deposits	0.41%	0.47%	0.54%	0.59%	1.03%
Cost of deposits ⁽³⁾	0.30%	0.34%	0.39%	0.44%	0.80%
Cost of borrowed funds	1.91%	1.88%	1.85%	1.84%	2.06%
Net interest margin ⁽¹⁾	2.99%	3.22%	3.21%	3.42%	3.68%
Core net interest margin ^{(1) (2)}	2.86%	3.04%	3.02%	3.18%	3.42%

(1)		Fully tax equivalent using an effective tax rate of 26.135%.
(2)		Core loan yield and core net interest margin exclude accretion and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
(3)		Includes non-interest bearing deposits.

The Company’s net interest income for the first quarter of 2021 was $146.7 million, a decrease of $20.8 million, or 12.4%, from the same period in 2020. The decrease in net interest income was primarily due to the decline in the loan yield of 44 basis points and the lower average loan balance during the current period. This decrease was partially offset by the 50 basis point decline in the cost of deposits. Loan and deposits yields were impacted by the continuing low interest rate environment during the first quarter of 2021. Included in interest income was the yield accretion recognized on loans acquired of $6.6 million and $11.8 million for the first quarters of 2021 and 2020, respectively.

The loan yield essentially remained flat for the quarter ended March 31, 2021, compared to the fourth quarter of 2020 at 4.75%. The core loan yield, which excludes accretion on acquired loans, was 4.53%, an increase of 6 basis points for the same period. The yield on PPP loans was approximately 5.26% during the first quarter of 2021 (including accretion of net fees), which increased the Company’s overall loan yield by approximately 4 basis points.

Net interest margin (FTE) was 2.99% for the quarter ended March 31, 2021, while core net interest margin, which excludes the accretion, was 2.86% for the same period. The decline in the net interest margin during the first quarter of 2021 was primarily due to an $804 million increase in average cash and cash equivalents. The Company added $1.1 billion to its average investment security portfolio balance during the quarter. The net interest margin during the first quarter of 2021 was affected by additional liquidity and the PPP loans, which decreased the net interest margin by approximately 35 basis points.

Non-Interest Income

Non-interest income for the first quarter of 2021 was $51.9 million, a decrease of $30.5 million compared to the same period in the previous year. The decline in non-interest income was primarily related to the incremental gains on the sale of securities recognized during the first quarter of last year. During the first quarter of 2020, the Company sold approximately $1.0 billion in securities resulting in a gain of $30.1 million, to begin creating additional liquidity in response to the unfolding COVID-19 pandemic. During the first quarter of 2021, the Company generated a gain of $5.5 million on sales of securities.

Debit and credit card fees for the first quarter of 2021 were $9.0 million, an increase of $1.1 million, or 13.3%, compared to the first quarter of 2020. Makris stated, “This increase appears to highlight new consumer habits and the effects of the government economic impact payments.”

Selected Non-Interest Income Items ($ in millions)	1^st Qtr 2021	4^th Qtr 2020	3^rd Qtr 2020	2^nd Qtr 2020	1^st Qtr 2020
Service charges on deposit accounts	$9.7	$10.8	$10.4	$8.6	$13.3
Mortgage lending income	$6.4	$3.0	$14.0	$12.5	$5.0
SBA lending income	$0.2	$0.5	$0.3	$0.2	$0.3
Debit and credit card fees	$9.0	$8.7	$8.9	$8.0	$7.9
Gain on sale of securities	$5.5	-	$22.3	$0.4	$32.1
Other income	$10.3	$10.6	$5.4	$9.8	$12.8

Core other income ⁽¹⁾	$4.8	$10.3	$5.0	$7.6	$6.9

(1)		Core figures exclude non-core items and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

Non-Interest Expense

Non-interest expense for the first quarter of 2021 was $115.4 million, a decrease of $13.5 million compared to the first quarter of 2020. Included in this quarter were $858,000 of pre-tax non-core items for merger-related expenses and branch right-sizing costs. Excluding these expenses, core non-interest expense was $114.5 million for the first quarter of 2021, a decrease of $13.0 million compared to the same period in 2020. The decrease in other operating expenses is related to the realization of expected synergies from the continuous evaluation of the Company’s branch network and the branch sales and closures that began in 2020 and have continued in 2021.

The efficiency ratio for the first quarter of 2021 was 57.77% compared to 57.79% for the same period in 2020.

Selected Non-Interest Expense Items ($ in millions)	1^st Qtr 2021	4^th Qtr 2020	3^rd Qtr 2020	2^nd Qtr 2020	1^st Qtr 2020
Salaries and employee benefits	$60.3	$55.8	$61.1	$57.6	$67.9
Merger related costs	$0.2	$0.7	$0.9	$1.8	$1.1
Other operating expenses	$38.4	$54.3	$38.2	$39.7	$41.8

Core salaries and employee benefits⁽¹⁾	$60.3	$55.6	$58.7	$57.2	$67.9
Core merger related costs⁽¹⁾	-	-	-	-	-
Core other operating expenses⁽¹⁾	$38.2	$44.1	$38.2	$38.0	$41.6

(1)		Core figures exclude non-core items and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

Asset Quality

($ in millions)	1^st Qtr 2021	4^th Qtr 2020	3^rd Qtr 2020	2^nd Qtr 2020	1^st Qtr 2020
Allowance for credit losses on loans to total loans	1.93%	1.85%	1.77%	1.59%	1.69%
Allowance for credit losses on loans to non-performing loans	204%	193%	148%	176%	155%
Non-performing loans to total loans	0.95%	0.96%	1.20%	0.90%	1.09%
Net charge-off ratio (annualized)	0.10%	0.52%	0.16%	1.04%	0.07%
Net charge-off ratio YTD (annualized)	0.10%	0.45%	0.43%	0.56%	0.07%

Total non-performing loans	$115.5	$123.5	$167.9	$131.9	$157.0
Total other non-performing assets	$12.4	$20.4	$14.6	$16.1	$23.0

At March 31, 2021, the allowance for credit losses was $235.1 million. Total non-performing assets at March 31, 2021 decreased $52.1 million from the first quarter of 2020 and decreased $16.0 million from year end. Provision for credit losses for the first quarter of 2021 was $1.4 million, a decrease of $5.5 million, or 79.2%, from the previous quarter.

Foreclosed Assets and Other Real Estate Owned

At March 31, 2021, foreclosed assets and other real estate owned were $11.2 million, a decrease of $9.6 million, or 46.3%, compared to the same period in 2020 and a decrease of $7.2 million, or 39.3% from December 31, 2020. The composition of these assets is divided into three types:

($ in millions)	1^st Qtr 2021	4^th Qtr 2020	3^rd Qtr 2020	2^nd Qtr 2020	1^st Qtr 2020
Closed bank branches and branch sites	$0.5	$0.6	$0.6	$2.7	$8.8
Foreclosed assets – acquired	$7.7	$15.3	$9.3	$9.2	$9.2
Foreclosed assets – legacy	$3.0	$2.5	$2.7	$2.2	$2.8

Capital

	1^st Qtr 2021	4^th Qtr 2020	3^rd Qtr 2020	2^nd Qtr 2020	1^st Qtr 2020
Stockholders’ equity to total assets	12.6%	13.3%	13.7%	13.3%	13.7%
Tangible common equity to tangible assets ⁽¹⁾	7.9%	8.5%	8.7%	8.3%	8.4%
Regulatory common equity tier 1 ratio	14.1%	13.4%	12.6%	11.9%	11.1%
Regulatory tier 1 leverage ratio	9.0%	9.1%	9.1%	8.8%	9.0%
Regulatory tier 1 risk-based capital ratio	14.1%	13.4%	12.6%	11.9%	11.1%
Regulatory total risk-based capital ratio	17.5%	16.8%	15.8%	14.9%	14.1%

(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.

At March 31, 2021, common stockholders' equity was $2.9 billion. Book value per share was $27.04 and tangible book value per share was $16.13 at March 31, 2021, compared to $27.53 and $16.56, respectively, at December 31, 2020. The ratio of stockholders’ equity to total assets was 12.6% at March 31, 2021, compared to 13.3% at December 31, 2020, while tangible common equity to tangible assets was 7.9% at March 31, 2021, compared to 8.5% at the previous year-end.

During the first quarter of 2021, the Company repurchased approximately 131,000 shares of its common stock at an average price per share of $23.53. Market conditions and capital needs will drive the decisions regarding additional, future stock repurchases.

Simmons First National Corporation

Simmons First National Corporation is a financial holding company headquartered in Pine Bluff, Arkansas, with total consolidated assets of approximately $23.3 billion as of March 31, 2021. The Company, through its subsidiaries, conducts financial operations in Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas and offers comprehensive financial solutions delivered with a client-centric approach. The Company’s common stock is listed on the NASDAQ Global Select Market under the symbol “SFNC.”

Conference Call

Management will conduct a live conference call to review this information beginning at 9:00 a.m. CDT today, Tuesday, April 20, 2021. Interested persons can listen to this call by dialing toll-free 1-866-298-7926 (United States and Canada only) and asking for the Simmons First National Corporation conference call, conference ID 1443639. In addition, the call will be available live or in recorded version on the Company’s website at www.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 income available to common shareholders, non-interest income, and non-interest expense certain income and expenses related to significant non-core activities, including merger-related expenses, gain on sale of branches, early retirement program expenses and net branch right-sizing expenses. 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. 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. Management, therefore, believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core businesses, and management uses these non-GAAP financial measures to assess the performance of the Company’s core 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

Some of the statements in this news release may not be based on historical facts and should be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including, without limitation, statements made in Mr. Makris’s quotes, may be identified by reference to future periods or by the use of forward-looking terminology, such as “believe,” “budget,” “expect,” “foresee,” “anticipate,” “intend,” “indicate,” “target,” “estimate,” “plan,” “project,” “continue,” “contemplate,” “positions,” “prospects,” “predict,” or “potential,” by future conditional verbs such as “will,” “would,” “should,” “could,” “might” or “may,” or by variations of such words or by similar expressions. These forward-looking statements include, without limitation, statements relating to Simmons’ future growth, lending capacity and lending activity, revenue, assets, asset quality, profitability, 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 benefits associated with the Company’s early retirement program, branch closures and branch sales, the adequacy of the allowance for credit losses, the ability of the Company to manage the impact 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 pandemic, including the effectiveness of vaccination efforts; the pace of recovery when the pandemic subsides and the heightened impact it has on many of the risks described herein; the effects of the COVID-19 pandemic on, among other things, the Company’s operations, liquidity, and credit quality; general economic and market conditions; unemployment; claims, damages, and fines related to litigation or government actions, including litigation or actions arising from the Company’s participation in and administration of programs related to the COVID-19 pandemic (including, among other things, the PPP loan program authorized by the Coronavirus Aid, Relief and Economic Security Act); changes in accounting principles relating to loan loss recognition (current expected credit losses, or CECL); the Company’s ability to manage and successfully integrate its mergers and acquisitions; cyber threats, attacks or events; reliance on third parties for key services; government legislation; and other factors, many of which are beyond the control of the Company, could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect the Company’s financial results is included in the Company’s Form 10-K for the year ended December 31, 2020, which has been filed with, and is available from, the U.S. Securities and Exchange Commission.

FOR MORE INFORMATION CONTACT:
Stephen C. Massanelli
EVP, Chief Administrative Officer
Simmons First National Corporation
steve.massanelli@simmonsbank.com


Simmons First National Corporation													SFNC
Consolidated End of Period Balance Sheets
For the Quarters Ended		Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
(Unaudited)		2021			2020			2020			2020			2020
($ in thousands)
ASSETS
Cash and non-interest bearing balances due from banks	$	227,713		$	217,499		$	382,691		$	234,998		$	244,123
Interest bearing balances due from banks and federal funds sold		3,677,750			3,254,653			2,139,440			2,310,162			1,493,076
Cash and cash equivalents		3,905,463			3,472,152			2,522,131			2,545,160			1,737,199
Interest bearing balances due from banks - time		1,334			1,579			4,061			4,561			4,309
Investment securities - held-to-maturity		609,500			333,031			47,102			51,720			53,968
Investment securities - available-for-sale		4,528,348			3,473,598			2,607,288			2,496,896			2,466,640
Mortgage loans held for sale		63,655			137,378			192,729			120,034			49,984
Other assets held for sale		100			100			389			399			115,315
Loans:
Loans		12,195,873			12,900,897			14,017,442			14,606,900			14,374,277
Allowance for credit losses on loans		(235,116	)		(238,050	)		(248,251	)		(231,643	)		(243,195	)
Net loans		11,960,757			12,662,847			13,769,191			14,375,257			14,131,082
Premises and equipment		427,540			441,692			470,491			478,896			484,990
Premises held for sale		13,613			15,008			4,486			4,576			-
Foreclosed assets and other real estate owned		11,168			18,393			12,590			14,111			20,805
Interest receivable		71,359			72,597			77,352			79,772			57,039
Bank owned life insurance		257,152			255,630			257,718			256,643			255,197
Goodwill		1,075,305			1,075,305			1,075,305			1,064,765			1,064,978
Other intangible assets		107,091			111,110			114,460			117,823			121,673
Other assets		315,732			289,332			282,102			293,071			278,173
Total assets	$	23,348,117		$	22,359,752		$	21,437,395		$	21,903,684		$	20,841,352

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts	$	4,884,667		$	4,482,091		$	4,451,385		$	4,608,098		$	3,572,244
Interest bearing transaction accounts and savings deposits		10,279,997			9,672,608			8,993,255			8,978,045			8,840,678
Time deposits		3,024,724			2,832,327			2,802,007			3,029,975			3,146,811
Total deposits		18,189,388			16,987,026			16,246,647			16,616,118			15,559,733
Federal funds purchased and securities sold
under agreements to repurchase		323,053			299,111			313,694			387,025			377,859
Other borrowings		1,340,467			1,342,067			1,342,769			1,393,689			1,396,829
Subordinated notes and debentures		383,008			382,874			382,739			382,604			388,396
Other liabilities held for sale		-			154,620			-			-			58,405
Accrued interest and other liabilities		181,426			217,398			209,305			219,545			214,730
Total liabilities		20,417,342			19,383,096			18,495,154			18,998,981			17,995,952

Stockholders' equity:
Preferred stock		767			767			767			767			767
Common stock		1,083			1,081			1,090			1,090			1,090
Surplus		2,017,188			2,014,076			2,032,372			2,029,383			2,026,420
Undivided profits		948,913			901,006			866,503			819,153			778,893
Accumulated other comprehensive income (loss):
Unrealized (depreciation) accretion on AFS securities		(37,176	)		59,726			41,509			54,310			38,230
Total stockholders' equity		2,930,775			2,976,656			2,942,241			2,904,703			2,845,400
Total liabilities and stockholders' equity	$	23,348,117		$	22,359,752		$	21,437,395		$	21,903,684		$	20,841,352

Simmons First National Corporation									SFNC
Consolidated Statements of Income - Quarter-to-Date
For the Quarters Ended		Mar 31		Dec 31		Sep 30		Jun 30			Mar 31
(Unaudited)		2021		2020		2020		2020			2020
($ in thousands, except per share data)
INTEREST INCOME
Loans (including fees)	$	146,424	$	160,115	$	163,180	$	176,910		$	187,566
Interest bearing balances due from banks and federal funds sold		798		716		623		603			2,441
Investment securities		21,573		17,207		14,910		13,473			18,943
Mortgage loans held for sale		639		1,070		1,012		668			281
TOTAL INTEREST INCOME		169,434		179,108		179,725		191,654			209,231
INTEREST EXPENSE
Time deposits		7,091		7,835		9,437		10,803			13,323
Other deposits		6,088		6,536		6,769		7,203			17,954
Federal funds purchased and securities
sold under agreements to repurchase		245		284		335		337			759
Other borrowings		4,802		4,869		4,943		4,963			4,877
Subordinated notes and debentures		4,527		4,624		4,631		4,667			4,835
TOTAL INTEREST EXPENSE		22,753		24,148		26,115		27,973			41,748
NET INTEREST INCOME		146,681		154,960		153,610		163,681			167,483
Provision for credit losses		1,445		6,943		22,981		21,915			23,134
NET INTEREST INCOME AFTER PROVISION
FOR CREDIT LOSSES		145,236		148,017		130,629		141,766			144,349
NON-INTEREST INCOME
Trust income		6,666		6,557		6,744		7,253			7,151
Service charges on deposit accounts		9,715		10,799		10,385		8,570			13,328
Other service charges and fees		1,922		1,783		1,764		1,489			1,588
Mortgage lending income		6,447		2,993		13,971		12,459			5,046
SBA lending income		240		484		304		245			296
Investment banking income		695		676		557		571			877
Debit and credit card fees		8,964		8,710		8,850		7,996			7,914
Bank owned life insurance income		1,523		1,481		1,591		1,445			1,298
Gain on sale of securities, net		5,471		16		22,305		390			32,095
Other income		10,260		10,557		5,380		9,809			12,801
TOTAL NON-INTEREST INCOME		51,903		44,056		71,851		50,227			82,394
NON-INTEREST EXPENSE
Salaries and employee benefits		60,340		55,762		61,144		57,644			67,924
Occupancy expense, net		9,300		9,182		9,647		9,217			9,510
Furniture and equipment expense		5,415		5,940		6,231		6,144			5,723
Other real estate and foreclosure expense		343		551		602		274			325
Deposit insurance		1,308		1,627		2,244		2,838			2,475
Merger-related costs		233		731		902		1,830			1,068
Other operating expenses		38,417		54,342		38,179		39,651			41,788
TOTAL NON-INTEREST EXPENSE		115,356		128,135		118,949		117,598			128,813
NET INCOME BEFORE INCOME TAXES		81,783		63,938		83,531		74,395			97,930
Provision for income taxes		14,363		10,970		17,633		15,593			20,694
NET INCOME		67,420		52,968		65,898		58,802			77,236
Preferred stock dividends		13		13		13		13			13
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	67,407	$	52,955	$	65,885	$	58,789		$	77,223
BASIC EARNINGS PER SHARE	$	0.62	$	0.49	$	0.60	$	0.54		$	0.68
DILUTED EARNINGS PER SHARE	$	0.62	$	0.49	$	0.60	$	0.54		$	0.68

Simmons First National Corporation														SFNC
Consolidated Risk-Based Capital
For the Quarters Ended		Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
(Unaudited)		2021			2020			2020			2020			2020
($ in thousands)
Tier 1 capital
Stockholders' equity	$	2,930,775		$	2,976,656		$	2,942,241		$	2,904,703		$	2,845,400
CECL transition provision ⁽¹⁾		131,637			131,430			134,798			130,480			134,558
Disallowed intangible assets, net of deferred tax		(1,159,720	)		(1,163,797	)		(1,167,357	)		(1,160,385	)		(1,164,038	)
Unrealized loss (gain) on AFS securities		37,176			(59,726	)		(41,509	)		(54,310	)		(38,230	)
Total Tier 1 capital		1,939,868			1,884,563			1,868,173			1,820,488			1,777,690

Tier 2 capital
Trust preferred securities and subordinated debt		383,008			382,874			382,739			382,604			388,396
Qualifying allowance for loan losses and
reserve for unfunded commitments		87,251			89,546			96,734			83,780			96,015
Total Tier 2 capital		470,259			472,420			479,473			466,384			484,411
Total risk-based capital	$	2,410,127		$	2,356,983		$	2,347,646		$	2,286,872		$	2,262,101

Risk weighted assets	$	13,771,244		$	14,048,608		$	14,878,932		$	15,362,175		$	16,012,233

Adjusted average assets for leverage ratio	$	21,668,406		$	20,765,127		$	20,652,454		$	20,742,824		$	19,832,219

Ratios at end of quarter
Equity to assets		12.55	%		13.31	%		13.72	%		13.26	%		13.65	%
Tangible common equity to tangible assets ⁽²⁾		7.88	%		8.45	%		8.65	%		8.31	%		8.44	%
Common equity Tier 1 ratio (CET1)		14.08	%		13.41	%		12.55	%		11.85	%		11.10	%
Tier 1 leverage ratio		8.95	%		9.08	%		9.05	%		8.78	%		8.96	%
Tier 1 risk-based capital ratio		14.09	%		13.41	%		12.56	%		11.85	%		11.10	%
Total risk-based capital ratio		17.50	%		16.78	%		15.78	%		14.89	%		14.13	%

(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		Mar 31		Dec 31		Sep 30		Jun 30		Mar 31
(Unaudited)		2021		2020		2020		2020		2020
($ in thousands)
Investment Securities - End of Period
Held-to-Maturity
U.S. Government agencies	$	77,396	$	-	$	-	$	-	$	-
Mortgage-backed securities		47,988		22,354		24,297		25,980		27,121
State and political subdivisions		484,116		310,109		21,930		24,777		25,985
Other securities		-		568		875		963		862
Total held-to-maturity (net of credit losses)		609,500		333,031		47,102		51,720		53,968
Available-for-Sale
U.S. Treasury	$	600	$	-	$	-	$	-	$	424,989
U.S. Government agencies		487,679		477,237		471,973		210,921		161,289
Mortgage-backed securities		2,133,086		1,394,936		903,687		1,154,086		1,179,837
State and political subdivisions		1,571,910		1,470,723		1,133,006		1,054,068		678,243
Other securities		335,073		130,702		98,622		77,821		22,282
Total available-for-sale (net of credit losses)		4,528,348		3,473,598		2,607,288		2,496,896		2,466,640
Total investment securities (net of credit losses)	$	5,137,848	$	3,806,629	$	2,654,390	$	2,548,616	$	2,520,608
Fair value - HTM investment securities	$	597,694	$	341,925	$	49,064	$	53,751	$	55,714

Investment Securities - QTD Average
Taxable securities	$	2,471,291	$	1,757,234	$	1,534,742	$	1,642,083	$	2,324,188
Tax exempt securities		1,919,919		1,528,127		1,155,099		866,944		900,223
Total investment securities - QTD average	$	4,391,210	$	3,285,361	$	2,689,841	$	2,509,027	$	3,224,411

Simmons First National Corporation									SFNC
Consolidated Loans
For the Quarters Ended		Mar 31		Dec 31		Sep 30		Jun 30		Mar 31
(Unaudited)		2021		2020		2020		2020		2020
($ in thousands)
Loan Portfolio - End of Period
Consumer
Credit cards	$	175,458	$	188,845	$	180,848	$	184,348	$	188,596
Other consumer		172,965		202,379		182,768		214,024		267,870
Total consumer		348,423		391,224		363,616		398,372		456,466
Real Estate
Construction		1,451,841		1,596,255		1,853,360		2,010,256		2,024,118
Single-family residential		1,730,056		1,880,673		1,997,070		2,207,087		2,343,543
Other commercial real estate		5,638,010		5,746,863		6,132,823		6,316,444		6,466,104
Total real estate		8,819,907		9,223,791		9,983,253		10,533,787		10,833,765
Commercial
Commercial		2,444,700		2,574,386		2,907,798		3,038,216		2,314,472
Agricultural		155,921		175,905		241,687		217,715		191,535
Total commercial		2,600,621		2,750,291		3,149,485		3,255,931		2,506,007
Other		426,922		535,591		521,088		418,810		578,039
Total Loans	$	12,195,873	$	12,900,897	$	14,017,442	$	14,606,900	$	14,374,277

Simmons First National Corporation														SFNC
Consolidated Allowance and Asset Quality
For the Quarters Ended		Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
(Unaudited)		2021			2020			2020			2020			2020
($ in thousands)
Allowance for Credit Losses on Loans
Beginning balance, prior to adoption of ASC 326													$	68,244
Impact of adopting ASC 326 ⁽¹⁾													$	151,377
Beginning balance, after adoption of ASC 326	$	238,050		$	248,251		$	231,641		$	243,195		$	219,621

Loans charged off
Credit cards		1,003			787			832			1,053			1,441
Other consumer		731			960			1,091			592			1,379
Real estate		1,687			10,415			1,153			1,824			396
Commercial		830			8,199			4,327			35,687			523
Total loans charged off		4,251			20,361			7,403			39,156			3,739

Recoveries of loans previously charged off
Credit cards		290			241			276			272			225
Other consumer		314			355			366			301			443
Real estate		403			431			120			253			101
Commercial		310			1,835			936			98			347
Total recoveries		1,317			2,862			1,698			924			1,116
Net loans charged off		2,934			17,499			5,705			38,232			2,623
Provision for credit losses on loans		-			7,298			22,315			26,678			26,197
Balance, end of quarter	$	235,116		$	238,050		$	248,251		$	231,641		$	243,195

Non-performing assets
Non-performing loans
Nonaccrual loans	$	114,856		$	122,879		$	167,713		$	131,383		$	155,863
Loans past due 90 days or more		635			578			174			494			1,160
Total non-performing loans		115,491			123,457			167,887			131,877			157,023
Other non-performing assets
Foreclosed assets and other real estate owned		11,168			18,393			12,590			14,111			20,805
Other non-performing assets		1,229			2,016			1,983			2,008			2,169
Total other non-performing assets		12,397			20,409			14,573			16,119			22,974
Total non-performing assets	$	127,888		$	143,866		$	182,460		$	147,996		$	179,997
Performing TDRs (troubled debt restructurings)	$	3,804		$	3,138		$	3,379		$	3,960		$	4,110

Ratios
Allowance for credit losses on loans to total loans		1.93	%		1.85	%		1.77	%		1.59	%		1.69	%
Allowance for credit losses to non-performing loans		204	%		193	%		148	%		176	%		155	%
Non-performing loans to total loans		0.95	%		0.96	%		1.20	%		0.90	%		1.09	%
Non-performing assets (including performing TDRs)
to total assets		0.56	%		0.66	%		0.87	%		0.69	%		0.88	%
Non-performing assets to total assets		0.55	%		0.64	%		0.85	%		0.68	%		0.86	%
Annualized net charge offs to total loans		0.10	%		0.52	%		0.16	%		1.04	%		0.07	%
Annualized net credit card charge offs to
total credit card loans		1.39	%		1.15	%		1.20	%		1.67	%		2.29	%

(1) The Company adopted ASC 326.effective January 1, 2020.

Simmons First National Corporation																	SFNC
Consolidated - Average Balance Sheet and Net Interest Income Analysis
For the Quarters Ended
(Unaudited)
	Three Months Ended Mar 2021						Three Months Ended Dec 2020						Three Months Ended Mar 2020
($ 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	$	3,477,989	$	798	0.09	%	$	2,651,938	$	716	0.11	%	$	764,639	$	2,441	1.28	%
Investment securities - taxable		2,471,291		10,120	1.66	%		1,757,234		7,720	1.75	%		2,324,188		12,752	2.21	%
Investment securities - non-taxable (FTE)		1,919,919		15,439	3.26	%		1,528,127		12,778	3.33	%		900,223		8,315	3.71	%
Mortgage loans held for sale		97,409		639	2.66	%		179,275		1,070	2.37	%		43,588		281	2.59	%
Loans - including fees (FTE)		12,518,300		146,601	4.75	%		13,457,077		160,306	4.74	%		14,548,853		187,747	5.19	%
Total interest earning assets (FTE)		20,484,908		173,597	3.44	%		19,573,651		182,590	3.71	%		18,581,491		211,536	4.58	%
Non-earning assets		2,253,913						2,278,443						2,338,732
Total assets	$	22,738,821					$	21,852,094					$	20,920,223

LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Interest bearing transaction and
savings accounts	$	10,093,868	$	6,088	0.24	%	$	9,389,570	$	6,536	0.28	%	$	9,005,701	$	17,954	0.80	%
Time deposits		3,043,000		7,091	0.95	%		2,823,166		7,835	1.10	%		3,150,909		13,323	1.70	%
Total interest bearing deposits		13,136,868		13,179	0.41	%		12,212,736		14,371	0.47	%		12,156,610		31,277	1.03	%
Federal funds purchased and securities
sold under agreement to repurchase		307,540		245	0.32	%		340,333		284	0.33	%		330,902		759	0.92	%
Other borrowings		1,341,059		4,802	1.45	%		1,342,403		4,869	1.44	%		1,320,245		4,877	1.49	%
Subordinated notes and debentures		382,943		4,527	4.79	%		382,808		4,624	4.81	%		388,330		4,835	5.01	%
Total interest bearing liabilities		15,168,410		22,753	0.61	%		14,278,280		24,148	0.67	%		14,196,087		41,748	1.18	%
Non-interest bearing liabilities:
Non-interest bearing deposits		4,419,136						4,413,168						3,602,678
Other liabilities		177,819						204,014						251,514
Total liabilities		19,765,365						18,895,462						18,050,279
Stockholders' equity		2,973,456						2,956,632						2,869,944
Total liabilities and stockholders' equity	$	22,738,821					$	21,852,094					$	20,920,223
Net interest income (FTE)			$	150,844					$	158,442					$	169,788
Net interest spread (FTE)					2.83	%					3.04	%					3.40	%
Net interest margin (FTE) - quarter-to-date					2.99	%					3.22	%					3.68	%

Net interest margin (FTE) - year-to-date					2.99	%					3.38	%					3.68	%

Core net interest margin (FTE) - quarter-to-date⁽¹⁾					2.86	%					3.04	%					3.42	%
Core loan yield (FTE) - quarter-to-date ⁽¹⁾					4.53	%					4.47	%					4.86	%

Core net interest margin (FTE) - year-to-date ⁽¹⁾					2.86	%					3.16	%					3.42	%
Core loan yield (FTE) - year-to-date⁽¹⁾					4.53	%					4.54	%					4.86	%

(1) Calculations of core net interest margin and core loan yield and the reconciliations to GAAP are included in the schedules accompanying this release.

Simmons First National Corporation													SFNC
Consolidated - Selected Financial Data
For the Quarters Ended		Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
(Unaudited)		2021			2020			2020			2020			2020
($ in thousands, except share data)
QUARTER-TO-DATE
Financial Highlights - GAAP
Net Income	$	67,407		$	52,955		$	65,885		$	58,789		$	77,223
Diluted earnings per share		0.62			0.49			0.60			0.54			0.68
Return on average assets		1.20	%		0.96	%		1.20	%		1.08	%		1.48	%
Return on average common equity		9.20	%		7.13	%		8.91	%		8.21	%		10.83	%
Return on tangible common equity		15.85	%		12.48	%		15.45	%		14.55	%		19.00	%
Net interest margin (FTE)		2.99	%		3.22	%		3.21	%		3.42	%		3.68	%
FTE adjustment		4,163			3,482			2,864			2,350			2,305
Amortization of intangibles		3,344			3,351			3,362			3,369			3,413
Amortization of intangibles, net of taxes		2,470			2,475			2,483			2,489			2,521
Average diluted shares outstanding		108,655,293			108,888,264			109,207,294			109,130,866			113,137,223
Shares repurchased under plan		130,916			1,034,364			-			-			4,922,336
Average price of shares repurchased		23.53			19.36			-			-			18.96
Cash dividends declared per common share		0.18			0.17			0.17			0.17			0.17
Financial Highlights - Core (non-GAAP)
Core earnings (excludes non-core items)⁽¹⁾	$	63,995		$	61,977		$	68,338		$	60,147		$	73,838
Core diluted earnings per share ⁽¹⁾		0.59			0.57			0.63			0.55			0.65
Core net interest margin (FTE)⁽²⁾		2.86	%		3.04	%		3.02	%		3.18	%		3.42	%
Accretable yield on acquired loans		6,630			8,999			8,948			11,723			11,837
Efficiency ratio ⁽¹⁾		57.77	%		55.27	%		54.12	%		51.46	%		57.79	%
Core return on average assets⁽¹⁾		1.14	%		1.13	%		1.25	%		1.11	%		1.42	%
Core return on average common equity⁽¹⁾		8.73	%		8.34	%		9.24	%		8.40	%		10.35	%
Core return on tangible common equity ⁽¹⁾		15.08	%		14.51	%		16.00	%		14.87	%		18.19	%
YEAR-TO-DATE
Financial Highlights - GAAP
Net Income	$	67,407		$	254,852		$	201,897		$	136,012		$	77,223
Diluted earnings per share		0.62			2.31			1.83			1.22			0.68
Return on average assets		1.20	%		1.18	%		1.25	%		1.28	%		1.48	%
Return on average common equity		9.20	%		8.72	%		9.27	%		9.45	%		10.83	%
Return on tangible common equity		15.85	%		15.25	%		16.19	%		16.57	%		19.00	%
Net interest margin (FTE)		2.99	%		3.38	%		3.43	%		3.55	%		3.68	%
FTE adjustment		4,163			11,001			7,519			4,655			2,305
Amortization of intangibles		3,344			13,495			10,144			6,782			3,413
Amortization of intangibles, net of taxes		2,470			9,968			7,493			5,010			2,521
Average diluted shares outstanding		108,655,293			110,173,661			110,480,508			111,083,999			113,137,223
Cash dividends declared per common share		0.18			0.68			0.51			0.34			0.17
Financial Highlights - Core (non-GAAP)
Core earnings (excludes non-core items)⁽¹⁾	$	63,995		$	264,300		$	202,323		$	133,985		$	73,838
Core diluted earnings per share ⁽¹⁾		0.59			2.40			1.83			1.21			0.65
Core net interest margin (FTE)⁽²⁾		2.86	%		3.16	%		3.20	%		3.30	%		3.42	%
Accretable yield on acquired loans		6,630			41,507			32,508			23,560			11,837
Efficiency ratio ⁽¹⁾		57.77	%		54.66	%		54.46	%		54.62	%		57.79	%
Core return on average assets⁽¹⁾		1.14	%		1.22	%		1.26	%		1.26	%		1.42	%
Core return on average common equity⁽¹⁾		8.73	%		9.05	%		9.29	%		9.31	%		10.35	%
Core return on tangible common equity ⁽¹⁾		15.08	%		15.79	%		16.22	%		16.33	%		18.19	%
END OF PERIOD
Book value per share	$	27.04		$	27.53		$	26.98		$	26.64		$	26.11
Tangible book value per share		16.13			16.56			16.07			15.79			15.22
Shares outstanding		108,345,732			108,077,662			109,023,781			108,994,389			108,966,331
Full-time equivalent employees		2,962			2,923			2,904			2,939			3,079
Total number of financial centers		198			204			226			226			240

(1) Core earnings exclude non-core items, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release.
(2) Excludes accretable yield adjustment on loans, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release.

Simmons First National Corporation													SFNC
Reconciliation Of Non-GAAP Financial Measures - Core Earnings - Quarter-to-Date
For the Quarters Ended		Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
(Unaudited)		2021			2020			2020			2020			2020
($ in thousands, except per share data)
QUARTER-TO-DATE
Net Income	$	67,407		$	52,955		$	65,885		$	58,789		$	77,223
Non-core items
Gain on sale of branches		(5,477	)		(275	)		-			(2,204	)		(5,889	)
Merger-related costs		233			731			902			1,830			1,068
Early retirement program		-			62			2,346			493			-
Branch right-sizing (net)		625			11,696			72			1,721			238
Tax effect ⁽¹⁾		1,207			(3,192	)		(867	)		(482	)		1,198
Net non-core items		(3,412	)		9,022			2,453			1,358			(3,385	)
Core earnings (non-GAAP)	$	63,995		$	61,977		$	68,338		$	60,147		$	73,838

Diluted earnings per share	$	0.62		$	0.49		$	0.60		$	0.54		$	0.68
Non-core items
Gain on sale of branches		(0.05	)		-			-			(0.02	)		(0.05	)
Merger-related costs		-			-			0.01			0.02			0.01
Early retirement program		-			-			0.02			-			-
Branch right-sizing (net)		0.01			0.11			-			0.02			-
Tax effect ⁽¹⁾		0.01			(0.03	)		-			(0.01	)		0.01
Net non-core items		(0.03	)		0.08			0.03			0.01			(0.03	)
Core diluted earnings per share (non-GAAP)	$	0.59		$	0.57		$	0.63		$	0.55		$	0.65

(1) Effective tax rate of 26.135%.

Reconciliation of Selected Non-Core Non-Interest Income and Expense Items (non-GAAP)

QUARTER-TO-DATE
Other income	$	10,260		$	10,557		$	5,380		$	9,809		$	12,801
Non-core items⁽¹⁾		(5,477	)		(275	)		(370	)		(2,204	)		(5,889	)
Core other income (non-GAAP)	$	4,783		$	10,282		$	5,010		$	7,605		$	6,912

Non-interest expense	$	115,356		$	128,135		$	118,949		$	117,598		$	128,813
Non-core items⁽¹⁾		(858	)		(12,489	)		(3,690	)		(4,044	)		(1,306	)
Core non-interest expense (non-GAAP)	$	114,498		$	115,646		$	115,259		$	113,554		$	127,507

Salaries and employee benefits	$	60,340		$	55,762		$	61,144		$	57,644		$	67,924
Non-core items⁽¹⁾		-			(144	)		(2,448	)		(493	)		-
Core salaries and employee benefits (non-GAAP)	$	60,340		$	55,618		$	58,696		$	57,151		$	67,924

Merger related costs	$	233		$	731		$	902		$	1,830		$	1,068
Non-core items⁽¹⁾		(233	)		(731	)		(902	)		(1,830	)		(1,068	)
Core merger related costs (non-GAAP)	$	-		$	-		$	-		$	-		$	-

Other operating expenses	$	38,417		$	54,342		$	38,179		$	39,651		$	41,788
Non-core items⁽¹⁾		(208	)		(10,270	)		(11	)		(1,662	)		(212	)
Core other operating expenses (non-GAAP)	$	38,209		$	44,072		$	38,168		$	37,989		$	41,576

(1) Non-core items include gain on sale of branches, merger related costs, early retirement program expenses and branch right-sizing costs.

Simmons First National Corporation														SFNC
Reconciliation Of Non-GAAP Financial Measures - Core Earnings - Year-to-Date
For the Quarters Ended		Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
(Unaudited)		2021			2020			2020			2020			2020
($ in thousands, except per share data)
YEAR-TO-DATE
Net Income	$	67,407		$	254,852		$	201,897		$	136,012		$	77,223
Non-core items
Gain on sale of branches		(5,477	)		(8,368	)		(8,093	)		(8,093	)		(5,889	)
Merger-related costs		233			4,531			3,800			2,898			1,068
Early retirement program		-			2,901			2,839			493			-
Branch right-sizing (net)		625			13,727			2,031			1,959			238
Tax effect ⁽¹⁾		1,207			(3,343	)		(151	)		716			1,198
Net non-core items		(3,412	)		9,448			426			(2,027	)		(3,385	)
Core earnings (non-GAAP)	$	63,995		$	264,300		$	202,323		$	133,985		$	73,838

Diluted earnings per share	$	0.62		$	2.31		$	1.83		$	1.22		$	0.68
Non-core items
Gain on sale of branches		(0.05	)		(0.07	)		(0.07	)		(0.07	)		(0.05	)
Merger-related costs		-			0.04			0.03			0.03			0.01
Early retirement program		-			0.03			0.02			-			-
Branch right-sizing (net)		0.01			0.12			0.02			0.02			-
Tax effect ⁽¹⁾		0.01			(0.03	)		-			0.01			0.01
Net non-core items		(0.03	)		0.09			-			(0.01	)		(0.03	)
Core diluted earnings per share (non-GAAP)	$	0.59		$	2.40		$	1.83		$	1.21		$	0.65

(1) Effective tax rate of 26.135%.

Reconciliation of Selected Non-Core Non-Interest Income and Expense Items (non-GAAP)

YEAR-TO-DATE
Other income	$	10,260		$	38,547		$	27,990		$	22,610		$	12,801
Non-core items⁽¹⁾		(5,477	)		(8,738	)		(8,463	)		(8,093	)		(5,889	)
Core other income (non-GAAP)	$	4,783		$	29,809		$	19,527		$	14,517		$	6,912

Non-interest expense	$	115,356		$	493,495		$	365,360		$	246,411		$	128,813
Non-core items⁽¹⁾		(858	)		(21,529	)		(9,040	)		(5,350	)		(1,306	)
Core non-interest expense (non-GAAP)	$	114,498		$	471,966		$	356,320		$	241,061		$	127,507

Salaries and employee benefits	$	60,340		$	242,474		$	186,712		$	125,568		$	67,924
Non-core items⁽¹⁾		-			(3,085	)		(2,941	)		(493	)		-
Core salaries and employee benefits (non-GAAP)	$	60,340		$	239,389		$	183,771		$	125,075		$	67,924

Merger related costs	$	233		$	4,531		$	3,800		$	2,898		$	1,068
Non-core items⁽¹⁾		(233	)		(4,531	)		(3,800	)		(2,898	)		(1,068	)
Core merger related costs (non-GAAP)	$	-		$	-		$	-		$	-		$	-

Other operating expenses	$	38,417		$	173,960		$	119,618		$	81,439		$	41,788
Non-core items⁽¹⁾		(208	)		(12,155	)		(1,885	)		(1,874	)		(212	)
Core other operating expenses (non-GAAP)	$	38,209		$	161,805		$	117,733		$	79,565		$	41,576

(1) Non-core items include gain on sale of branches, merger related costs, early retirement program expenses and branch right-sizing costs.

Simmons First National Corporation														SFNC
Reconciliation Of Non-GAAP Financial Measures - End of Period
For the Quarters Ended		Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
(Unaudited)		2021			2020			2020			2020			2020
($ in thousands, except per share data)

Calculation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets

Total common stockholders' equity	$	2,930,008		$	2,975,889		$	2,941,474		$	2,903,936		$	2,844,633
Intangible assets:
Goodwill		(1,075,305	)		(1,075,305	)		(1,075,305	)		(1,064,765	)		(1,064,978	)
Other intangible assets		(107,091	)		(111,110	)		(114,460	)		(117,823	)		(121,673	)
Total intangibles		(1,182,396	)		(1,186,415	)		(1,189,765	)		(1,182,588	)		(1,186,651	)
Tangible common stockholders' equity	$	1,747,612		$	1,789,474		$	1,751,709		$	1,721,348		$	1,657,982

Total assets	$	23,348,117		$	22,359,752		$	21,437,395		$	21,903,684		$	20,841,352
Intangible assets:
Goodwill		(1,075,305	)		(1,075,305	)		(1,075,305	)		(1,064,765	)		(1,064,978	)
Other intangible assets		(107,091	)		(111,110	)		(114,460	)		(117,823	)		(121,673	)
Total intangibles		(1,182,396	)		(1,186,415	)		(1,189,765	)		(1,182,588	)		(1,186,651	)
Tangible assets	$	22,165,721		$	21,173,337		$	20,247,630		$	20,721,096		$	19,654,701

Paycheck protection program ("PPP") loans		(797,629	)		(904,673	)		(970,488	)		(963,712	)
Total assets excluding PPP loans	$	22,550,488		$	21,455,079		$	20,466,907		$	20,939,972
Tangible assets excluding PPP loans	$	21,368,092		$	20,268,664		$	19,277,142		$	19,757,384

Ratio of equity to assets		12.55	%		13.31	%		13.72	%		13.26	%		13.65	%
Ratio of equity to assets excluding PPP loans		13.00	%		13.87	%		14.38	%		13.87	%
Ratio of tangible common equity to tangible assets		7.88	%		8.45	%		8.65	%		8.31	%		8.44	%
Ratio of tangible common equity to tangible assets excluding PPP loans		8.18	%		8.83	%		9.09	%		8.71	%

Calculation of Tangible Book Value per Share

Total common stockholders' equity	$	2,930,008		$	2,975,889		$	2,941,474		$	2,903,936		$	2,844,633
Intangible assets:
Goodwill		(1,075,305	)		(1,075,305	)		(1,075,305	)		(1,064,765	)		(1,064,978	)
Other intangible assets		(107,091	)		(111,110	)		(114,460	)		(117,823	)		(121,673	)
Total intangibles		(1,182,396	)		(1,186,415	)		(1,189,765	)		(1,182,588	)		(1,186,651	)
Tangible common stockholders' equity	$	1,747,612		$	1,789,474		$	1,751,709		$	1,721,348		$	1,657,982
Shares of common stock outstanding		108,345,732			108,077,662			109,023,781			108,994,389			108,966,331
Book value per common share	$	27.04		$	27.53		$	26.98		$	26.64		$	26.11
Tangible book value per common share	$	16.13		$	16.56		$	16.07		$	15.79		$	15.22

Calculation of Regulatory Tier 1 Leverage Ratio Excluding Average PPP Loans

Total Tier 1 capital	$	1,939,868		$	1,884,563		$	1,868,173		$	1,820,488

Adjusted average assets for leverage ratio	$	21,668,406		$	20,765,127		$	20,652,454		$	20,742,824
Average PPP loans		(891,070	)		(937,544	)		(967,152	)		(645,172	)
Adjusted average assets excluding average PPP loans	$	20,777,336		$	19,827,583		$	19,685,302		$	20,097,652

Tier 1 leverage ratio		8.95	%		9.08	%		9.05	%		8.78	%
Tier 1 leverage ratio excluding average PPP loans		9.34	%		9.50	%		9.49	%		9.06	%

Simmons First National Corporation														SFNC
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date
For the Quarters Ended		Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
(Unaudited)		2021			2020			2020			2020			2020
($ in thousands)
Calculation of Core Return on Average Assets

Net income	$	67,407		$	52,955		$	65,885		$	58,789		$	77,223
Net non-core items, net of taxes, adjustment		(3,412	)		9,022			2,453			1,358			(3,385	)
Core earnings	$	63,995		$	61,977		$	68,338		$	60,147		$	73,838

Average total assets	$	22,738,821		$	21,852,094		$	21,765,321		$	21,822,273		$	20,920,223

Return on average assets		1.20	%		0.96	%		1.20	%		1.08	%		1.48	%
Core return on average assets		1.14	%		1.13	%		1.25	%		1.11	%		1.42	%

Calculation of Return on Tangible Common Equity

Net income	$	67,407		$	52,955		$	65,885		$	58,789		$	77,223
Amortization of intangibles, net of taxes		2,470			2,475			2,483			2,489			2,521
Total income available to common stockholders	$	69,877		$	55,430		$	68,368		$	61,278		$	79,744

Net non-core items, net of taxes		(3,412	)		9,022			2,453			1,358			(3,385	)
Core earnings		63,995			61,977			68,338			60,147			73,838
Amortization of intangibles, net of taxes		2,470			2,475			2,483			2,489			2,521
Total core income available to common stockholders	$	66,465		$	64,452		$	70,821		$	62,636		$	76,359

Average common stockholders' equity	$	2,972,689		$	2,955,865		$	2,942,045		$	2,879,337		$	2,869,177
Average intangible assets:
Goodwill		(1,075,305	)		(1,075,305	)		(1,064,893	)		(1,064,955	)		(1,055,498	)
Other intangibles		(109,850	)		(113,098	)		(116,385	)		(120,111	)		(125,746	)
Total average intangibles		(1,185,155	)		(1,188,403	)		(1,181,278	)		(1,185,066	)		(1,181,244	)
Average tangible common stockholders' equity	$	1,787,534		$	1,767,462		$	1,760,767		$	1,694,271		$	1,687,933

Return on average common equity		9.20	%		7.13	%		8.91	%		8.21	%		10.83	%
Return on tangible common equity		15.85	%		12.48	%		15.45	%		14.55	%		19.00	%
Core return on average common equity		8.73	%		8.34	%		9.24	%		8.40	%		10.35	%
Core return on tangible common equity		15.08	%		14.51	%		16.00	%		14.87	%		18.19	%

Calculation of Efficiency Ratio ⁽¹⁾

Non-interest expense	$	115,356		$	128,135		$	118,949		$	117,598		$	128,813
Non-core non-interest expense adjustment		(858	)		(12,489	)		(3,690	)		(4,044	)		(1,306	)
Other real estate and foreclosure expense adjustment		(343	)		(545	)		(600	)		(242	)		(319	)
Amortization of intangibles adjustment		(3,344	)		(3,351	)		(3,362	)		(3,369	)		(3,413	)
Efficiency ratio numerator	$	110,811		$	111,750		$	111,297		$	109,943		$	123,775

Net-interest income	$	146,681		$	154,960		$	153,610		$	163,681		$	167,483
Non-interest income		51,903			44,056			71,851			50,227			82,394
Non-core non-interest income adjustment		(5,477	)		(275	)		(370	)		(2,204	)		(5,889	)
Fully tax-equivalent adjustment (effective tax rate of 26.135%)		4,163			3,482			2,864			2,350			2,305
Gain on sale of securities		(5,471	)		(16	)		(22,305	)		(390	)		(32,095	)
Efficiency ratio denominator	$	191,799		$	202,207		$	205,650		$	213,664		$	214,198

Efficiency ratio ⁽¹⁾		57.77	%		55.27	%		54.12	%		51.46	%		57.79	%

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

Simmons First National Corporation														SFNC
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date (continued)
For the Quarters Ended		Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
(Unaudited)		2021			2020			2020			2020			2020
($ in thousands)
Calculation of Core Net Interest Margin

Net interest income	$	146,681		$	154,960		$	153,610		$	163,681		$	167,483
Fully tax-equivalent adjustment (effective tax rate of 26.135%)		4,163			3,482			2,864			2,350			2,305
Fully tax-equivalent net interest income		150,844			158,442			156,474			166,031			169,788

Total accretable yield		(6,630	)		(8,999	)		(8,948	)		(11,723	)		(11,837	)
Core net interest income	$	144,214		$	149,443		$	147,526		$	154,308		$	157,951

PPP loan and additional liquidity interest income		(12,257	)		(6,983	)		(6,131	)	$	(5,623	)
Net interest income adjusted for PPP loans and liquidity	$	138,587		$	151,459		$	150,343		$	160,408

Average earning assets	$	20,484,908		$	19,573,651		$	19,415,314		$	19,517,475		$	18,581,491
Average PPP loan balance and additional liquidity		(3,617,567	)		(2,837,125	)		(2,359,928	)	$	(2,071,411	)
Average earning assets adjusted for PPP loans and liquidity	$	16,867,341		$	16,736,526		$	17,055,386		$	17,446,064

Net interest margin		2.99	%		3.22	%		3.21	%		3.42	%		3.68	%
Core net interest margin		2.86	%		3.04	%		3.02	%		3.18	%		3.42	%
Net interest margin adjusted for PPP loans and liquidity		3.33	%		3.60	%		3.51	%		3.70	%

Calculation of Core Loan Yield

Loan interest income (FTE)	$	146,601		$	160,306		$	163,379		$	177,168		$	187,566
Total accretable yield		(6,630	)		(8,999	)		(8,948	)		(11,723	)		(11,837	)
Core loan interest income	$	139,971		$	151,307		$	154,431		$	165,445		$	175,729
PPP loan interest income		(11,652	)		(6,457	)		(5,782	)	$	(3,733	)
Core loan interest income without PPP loans	$	128,319		$	144,850		$	148,649		$	161,712

Average loan balance	$	12,518,300		$	13,457,077		$	14,315,014		$	14,731,306		$	14,548,853
Average PPP loan balance		(891,070	)		(937,544	)		(967,152	)	$	(645,172	)
Average loan balance without PPP loans	$	11,627,230		$	12,519,533		$	13,347,862		$	14,086,134

Core loan yield		4.53	%		4.47	%		4.29	%		4.52	%		4.86	%
Core loan yield without PPP loans		4.48	%		4.60	%		4.43	%		4.62	%

Calculation of Adjusted Pre-Tax, Pre-Provision (PTPP) Earnings

Net income available to common stockholders	$	67,407		$	52,955		$	65,885		$	58,789		$	77,223
Provision for income taxes		14,363			10,970			17,633			15,593			20,694
Provision for credit losses (including provision for unfunded commitments)		1,445			6,943			22,981			21,915			23,134
(Gain) loss on sale of securities		(5,471	)		(16	)		(22,305	)		(390	)		(32,095	)
Net pre-tax non-core items		(4,619	)		12,214			3,320			1,840			(4,583	)
Adjusted Pre-tax, pre-provision (PTPP) earnings	$	73,125		$	83,066		$	87,514		$	97,747		$	84,373

Simmons First National Corporation														SFNC
Reconciliation Of Non-GAAP Financial Measures - Year-to-Date
For the Quarters Ended		Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
(Unaudited)		2021			2020			2020			2020			2020
($ in thousands)
Calculation of Core Return on Average Assets

Net income	$	67,407		$	254,852		$	201,897		$	136,012		$	77,223
Net non-core items, net of taxes, adjustment		(3,412	)		9,448			426			(2,027	)		(3,385	)
Core earnings	$	63,995		$	264,300		$	202,323		$	133,985		$	73,838

Average total assets	$	22,738,821		$	21,590,745		$	21,503,564		$	21,371,248		$	20,920,223

Return on average assets		1.20	%		1.18	%		1.25	%		1.28	%		1.48	%
Core return on average assets		1.14	%		1.22	%		1.26	%		1.26	%		1.42	%

Calculation of Return on Tangible Common Equity

Net income	$	67,407		$	254,852		$	201,897		$	136,012		$	77,223
Amortization of intangibles, net of taxes		2,470			9,968			7,493			5,010			2,521
Total income available to common stockholders	$	69,877		$	264,820		$	209,390		$	141,022		$	79,744

Net non-core items, net of taxes		(3,412	)		9,448			426			(2,027	)		(3,385	)
Core earnings		63,995			264,300			202,323			133,985			73,838
Amortization of intangibles, net of taxes		2,470			9,968			7,493			5,010			2,521
Total core income available to common stockholders	$	66,465		$	274,268		$	209,816		$	138,995		$	76,359

Average common stockholders' equity	$	2,972,689		$	2,921,039		$	2,910,366		$	2,894,351		$	2,869,177
Average intangible assets:
Goodwill		(1,075,305	)		(1,065,190	)		(1,061,793	)		(1,060,226	)		(1,055,498	)
Other intangibles		(109,850	)		(118,812	)		(120,731	)		(122,928	)		(125,746	)
Total average intangibles		(1,185,155	)		(1,184,002	)		(1,182,524	)		(1,183,154	)		(1,181,244	)
Average tangible common stockholders' equity	$	1,787,534		$	1,737,037		$	1,727,842		$	1,711,197		$	1,687,933

Return on average common equity		9.20	%		8.72	%		9.27	%		9.45	%		10.83	%
Return on tangible common equity		15.85	%		15.25	%		16.19	%		16.57	%		19.00	%
Core return on average common equity		8.73	%		9.05	%		9.29	%		9.31	%		10.35	%
Core return on tangible common equity		15.08	%		15.79	%		16.22	%		16.33	%		18.19	%

Calculation of Efficiency Ratio ⁽¹⁾

Non-interest expense	$	115,356		$	493,495		$	365,360		$	246,411		$	128,813
Non-core non-interest expense adjustment		(858	)		(21,529	)		(9,040	)		(5,350	)		(1,306	)
Other real estate and foreclosure expense adjustment		(343	)		(1,706	)		(1,161	)		(561	)		(319	)
Amortization of intangibles adjustment		(3,344	)		(13,495	)		(10,144	)		(6,782	)		(3,413	)
Efficiency ratio numerator	$	110,811		$	456,765		$	345,015		$	233,718		$	123,775

Net-interest income	$	146,681		$	639,734		$	484,774		$	331,164		$	167,483
Non-interest income		51,903			248,528			204,472			132,621			82,394
Non-core non-interest income adjustment		(5,477	)		(8,738	)		(8,463	)		(8,093	)		(5,889	)
Fully tax-equivalent adjustment (effective tax rate of 26.135%)		4,163			11,001			7,519			4,655			2,305
Gain on sale of securities		(5,471	)		(54,806	)		(54,790	)		(32,485	)		(32,095	)
Efficiency ratio denominator	$	191,799		$	835,719		$	633,512		$	427,862		$	214,198

Efficiency ratio ⁽¹⁾		57.77	%		54.66	%		54.46	%		54.62	%		57.79	%

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

Simmons First National Corporation														SFNC
Reconciliation Of Non-GAAP Financial Measures - Year-to-Date (continued)
For the Quarters Ended		Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
(Unaudited)		2021			2020			2020			2020			2020
($ in thousands)
Calculation of Core Net Interest Margin

Net interest income	$	146,681		$	639,734		$	484,774		$	331,164		$	167,483
Fully tax-equivalent adjustment (effective tax rate of 26.135%)		4,163			11,001			7,519			4,655			2,305
Fully tax-equivalent net interest income		150,844			650,735			492,293			335,819			169,788

Total accretable yield		(6,630	)		(41,507	)		(32,508	)		(23,560	)		(11,837	)
Core net interest income	$	144,214		$	609,228		$	459,785		$	312,259		$	157,951
Average earning assets	$	20,484,908		$	19,272,886		$	19,172,318		$	19,049,487		$	18,581,491

Net interest margin		2.99	%		3.38	%		3.43	%		3.55	%		3.68	%
Core net interest margin		2.86	%		3.16	%		3.20	%		3.30	%		3.42	%

Calculation of Core Loan Yield

Loan interest income (FTE)	$	146,601		$	688,600		$	528,294		$	364,915		$	187,566
Total accretable yield		(6,630	)		(41,507	)		(32,508	)		(23,560	)		(11,837	)
Core loan interest income	$	139,971		$	647,093		$	495,786		$	341,355		$	175,729
Average loan balance	$	12,518,300		$	14,260,689		$	14,530,938		$	14,640,082		$	14,548,853

Core loan yield		4.53	%		4.54	%		4.56	%		4.69	%		4.86	%

Calculation of Adjusted Pre-Tax, Pre-Provision (PTPP) Earnings

Net income available to common stockholders	$	67,407		$	254,852		$	201,897		$	136,012		$	77,223
Provision for income taxes		14,363			64,890			53,920			36,287			20,694
Provision for credit losses (including provision for unfunded commitments)		1,445			74,973			68,030			45,049			23,134
(Gain) loss on sale of securities		(5,471	)		(54,806	)		(54,790	)		(32,485	)		(32,095	)
Net pre-tax non-core items		(4,619	)		12,791			577			(2,743	)		(4,583	)
Adjusted Pre-tax, pre-provision (PTPP) earnings	$	73,125		$	352,700		$	269,634		$	182,120		$	84,373

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