What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2024-08-06 compared with 2024-05-07 · 253 added, 156 removed, 1346 unchanged (23% of the section changed)

2 unchanged sentences

Consolidated Balance Sheets

March 31, 2024 and December 31, 2023

March 31, December 31,

June 30, 2024 and December 31, 2023

June 30, December 31,

(In thousands, except share data) 2024 2023

4 unchanged sentences

Investment securities:

Held-to-maturity, net of allowance for credit losses of $ 3,214 at March 31, 2024 and December 31, 2023

Held-to-maturity, net of allowance for credit losses of $ 3,214 at June 30, 2024 and December 31, 2023

3,685,450 3,726,288

Available-for-sale, (amortized cost of $ 3,394,971 and $ 3,509,709 at March 31, 2024 and December 31, 2023, respectively)

Available-for-sale, (amortized cost of $ 3,255,738 and $ 3,509,709 at June 30, 2024 and December 31, 2023, respectively)

2,885,904 3,152,153

24 unchanged sentences

Common stock, Class A, $ 0.01 par value;

350,000,000 shares authorized at March 31, 2024 and December 31, 2023;

125,419,618 and 125,184,119 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively

350,000,000 shares authorized at June 30, 2024 and December 31, 2023;

125,487,520 and 125,184,119 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively

Surplus 2,506,469 2,499,930

6 unchanged sentences

Consolidated Statements of Income

Three Months Ended March 31, 2024 and 2023

Three and Six Months Ended June 30, 2024 and 2023

Three Months Ended

June 30, Six Months Ended

(In thousands, except per share data) 2024 2023 2024 2023

(Unaudited) (Unaudited)

INTEREST INCOME

20 unchanged sentences

Other service charges and fees 2,352 2,262 4,551 4,544

Loss on sale of securities, net — ( 391 ) — ( 391 )

Other income 6,410 9,843 13,582 21,099

17 unchanged sentences

Consolidated Statements of Comprehensive Income (Loss)

Three Months Ended March 31, 2024 and 2023

Three and Six Months Ended June 30, 2024 and 2023

Three Months Ended

June 30, Six Months Ended

(In thousands) 2024 2023 2024 2023

(Unaudited) (Unaudited)

NET INCOME $ 40,763 $ 58,314 $ 79,634 $ 103,903

OTHER COMPREHENSIVE INCOME (LOSS)

Unrealized holding (losses) gains arising during the period on available-for-sale securities ( 26,149 ) 69,963

Realized (losses) gains on available-for-sale securities interest rate hedges ( 15,375 ) 13,545

Unrealized holding gains (losses) arising during the period on available-for-sale securities 363 ( 34,464 ) ( 25,786 ) 35,499

Reclassification adjustment for realized losses included in net income — ( 391 ) — ( 391 )

Realized gains (losses) on available-for-sale securities interest rate hedges 2,793 ( 28,506 ) ( 12,582 ) ( 14,961 )

Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity ( 5,862 ) ( 6,505 ) ( 11,707 ) ( 13,553 )

6 unchanged sentences

Consolidated Statements of Cash Flows

Three Months Ended March 31, 2024 and 2023

(In thousands) March 31, 2024 March 31, 2023

Six Months Ended June 30, 2024 and 2023

(In thousands) June 30, 2024 June 30, 2023

(Unaudited) (Unaudited)

OPERATING ACTIVITIES

3 unchanged sentences

Provision for credit losses 21,305 24,277

Loss on sale of investments — 391

Net amortization of investment securities and assets 8,907 6,295

1 unchanged sentence

Stock-based compensation expense 7,537 8,018

Loss on sale of foreclosed assets and other real estate owned 5 8

Loss (gain) on sale of foreclosed assets and other real estate owned 186 ( 225 )

Gain on sale of mortgage loans held for sale ( 4,010 ) ( 3,683 )

Loss on sale of loans 234 —

Deferred income taxes ( 1,238 ) ( 335 )

11 unchanged sentences

Proceeds from sale of loans 389 6,657

Net change in due from banks - time — 250

Purchases of premises and equipment, net ( 23,236 ) ( 18,718 )

4 unchanged sentences

Purchases of held-to-maturity securities — ( 45,921 )

Surrender of bank owned life insurance 2,201 —

Proceeds from bank owned life insurance death benefits 1,376 3,686

2 unchanged sentences

Net change in deposits ( 404,095 ) ( 59,003 )

Proceeds from issuance of other borrowed funds 1,800,000 2,350,000

Repayments of other borrowed funds ( 1,425,988 ) ( 1,835,957 )

Dividends paid on common stock ( 52,689 ) ( 50,835 )

Net change in other borrowed funds ( 100,492 ) 164,530

Net change in federal funds purchased and securities sold under agreements to repurchase ( 15,264 ) ( 57,817 )

1 unchanged sentence

Shares issued under employee stock purchase plan 970 833

Repurchases of common stock — ( 20,022 )

Net cash (used in) provided by financing activities ( 99,031 ) 324,694

DECREASE IN CASH AND CASH EQUIVALENTS ( 10,789 ) ( 157,671 )

(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS ( 39,759 ) 63,790

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 614,092 682,122

3 unchanged sentences

Consolidated Statements of Stockholders’ Equity

Three Months Ended March 31, 2024 and 2023

Three Months Ended June 30, 2024 and 2023

(In thousands, except share data) Common

3 unchanged sentences

Profits Total

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Balance, March 31, 2024 (Unaudited) $ 1,254 $ 2,503,673 $ ( 408,016 ) $ 1,342,215 $ 3,439,126

Comprehensive income — — 2,535 40,763 43,298

Stock-based compensation plans, net – 67,902 shares

1 2,796 — — 2,797

Dividends on common stock – $ 0.21 per share

— — — ( 26,352 ) ( 26,352 )

Balance, June 30, 2024 (Unaudited) $ 1,255 $ 2,506,469 $ ( 405,481 ) $ 1,356,626 $ 3,458,869

Three Months Ended June 30, 2023

Balance, March 31, 2023 (Unaudited) $ 1,273 $ 2,533,589 $ ( 470,681 ) $ 1,275,720 $ 3,339,901

Comprehensive income — — 693 58,314 59,007

Stock-based compensation plans, net – 70,602 shares

— 2,820 — — 2,820

Stock repurchases – 1,128,087 shares

( 11 ) ( 20,011 ) — — ( 20,022 )

Dividends on common stock – $ 0.20 per share

— — — ( 25,380 ) ( 25,380 )

Balance, June 30, 2023 (Unaudited) $ 1,262 $ 2,516,398 $ ( 469,988 ) $ 1,308,654 $ 3,356,326

See Condensed Notes to Consolidated Financial Statements.

Simmons First National Corporation

Consolidated Statements of Stockholders’ Equity

Six Months Ended June 30, 2024 and 2023

(In thousands, except share data) Common

Stock Surplus Accumulated

Comprehensive

Income (Loss) Undivided

Profits Total

Six Months Ended June 30, 2024

Balance, December 31, 2023 $ 1,252 $ 2,499,930 $ ( 404,375 ) $ 1,329,681 $ 3,426,488

Comprehensive income (loss) — — ( 3,641 ) 38,871 35,230

Comprehensive (loss) income — — ( 1,106 ) 79,634 78,528

Stock issued for employee stock purchase plan – 53,161 shares

4 unchanged sentences

— — — ( 52,689 ) ( 52,689 )

Balance, March 31, 2024 (Unaudited) $ 1,254 $ 2,503,673 $ ( 408,016 ) $ 1,342,215 $ 3,439,126

Three Months Ended March 31, 2023

Balance, June 30, 2024 (Unaudited) $ 1,255 $ 2,506,469 $ ( 405,481 ) $ 1,356,626 $ 3,458,869

Six Months Ended June 30, 2023

Balance, December 31, 2022 $ 1,270 $ 2,530,066 $ ( 517,560 ) $ 1,255,586 $ 3,269,362

4 unchanged sentences

3 5,510 — — 5,513

Stock repurchases - 1,128,087 shares

( 11 ) ( 20,011 ) — — ( 20,022 )

Dividends on common stock – $ 0.40 per share

— — — ( 50,835 ) ( 50,835 )

Balance, March 31, 2023 (Unaudited) $ 1,273 $ 2,533,589 $ ( 470,681 ) $ 1,275,720 $ 3,339,901

Balance, June 30, 2023 (Unaudited) $ 1,262 $ 2,516,398 $ ( 469,988 ) $ 1,308,654 $ 3,356,326

See Condensed Notes to Consolidated Financial Statements.

8 unchanged sentences

checking, savings and time deposits;

and specialized products and services (such as credit cards, trust and fiduciary services, investments, agricultural finance lending, equipment lending, insurance and Small Business Administration (“SBA”) lending) from approximately 233 financial centers as of March 31, 2024, located throughout market areas in Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas.

and specialized products and services (such as credit cards, trust and fiduciary services, investments, agricultural finance lending, equipment lending, insurance and Small Business Administration (“SBA”) lending) from approximately 234 financial centers as of June 30, 2024, located throughout market areas in Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas.

Basis of Presentation

12 unchanged sentences

These material estimates could change as a result of the uncertainty in current macroeconomic conditions and other factors that are beyond the Company’s control and could cause actual results to differ materially from those projected.

The Company identified an error in its previously issued unaudited consolidated statements of cash flows.

The cash flows associated with other borrowings were presented on a net basis, rather than on a gross basis.

The Company corrected this error in the accompanying unaudited consolidated statements of cash flows for the six months ended June 30, 2023.

The correction had no impact to the total net cash used in financing activities in the period.

The Company evaluated the materiality of this error utilizing Accounting Standards Codification (“ASC”) Topic 250 and SEC Staff Accounting Bulletin 99-M, both quantitatively and qualitatively, and concluded that this error is immaterial to the impacted prior period.

Recently Adopted Accounting Standards

8 unchanged sentences

2022-02, Financial Instruments - Credit Losses (Topic 326):

Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”), which eliminated the accounting guidance on troubled debt restructurings (“TDRs”) for creditors in Accounting Standards Codification (“ASC”) Topic 310-40 and amended the guidance on “vintage disclosures” to require disclosure of current-period gross write-offs by year of origination.

Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”), which eliminated the accounting guidance on troubled debt restructurings (“TDRs”) for creditors in ASC Topic 310-40 and amended the guidance on “vintage disclosures” to require disclosure of current-period gross write-offs by year of origination.

The ASU also updated the requirements related to accounting for credit losses under ASC 326 and added enhanced disclosures for creditors with respect to loan refinancings and restructurings made to borrowers experiencing financial difficulty.

138 unchanged sentences

During the quarters ended June 30, 2022 and September 30, 2021, the Company transferred, at fair value, $ 1.99 billion and $ 500.8 million, respectively, of securities from the AFS portfolio to the HTM portfolio.

As of March 31, 2024, the related remaining combined net unrealized losses of $ 121.9 million in accumulated other comprehensive income (loss) will be amortized over the remaining life of the securities.

As of June 30, 2024, the related remaining combined net unrealized losses of $ 117.4 million in accumulated other comprehensive income (loss) will be amortized over the remaining life of the securities.

No gains or losses on these securities were recognized at the time of transfer.

5 unchanged sentences

Held-to-maturity

March 31, 2024

June 30, 2024

Government agencies $ 454,488 $ — $ 454,488 $ — $ ( 95,882 ) $ 358,606

14 unchanged sentences

government agencies or corporations.

As of March 31, 2024, HTM MBS consists of $ 140.6 million and $ 1.00 billion of commercial MBS and residential MBS, respectively.

As of December 31, 2023, HTM MBS consists of $ 141.6 million and $ 1.02 billion of commercial MBS and residential MBS, respectively.

As of June 30, 2024, HTM MBS consisted of $ 139.0 million and $ 980.7 million of commercial MBS and residential MBS, respectively.

As of December 31, 2023, HTM MBS consisted of $ 141.6 million and $ 1.02 billion of commercial MBS and residential MBS, respectively.

The amortized cost, fair value and allowance for credit losses of investment securities that are classified as AFS are as follows:

5 unchanged sentences

Available-for-sale

March 31, 2024

June 30, 2024

Treasury $ 1,294 $ — $ — $ ( 19 ) $ 1,275

11 unchanged sentences

Total AFS $ 3,509,709 $ — $ 230 $ ( 357,786 ) $ 3,152,153

As of March 31, 2024, AFS MBS consists of $ 665.1 million and $ 1.18 billion of commercial MBS and residential MBS, respectively.

As of December 31, 2023, AFS MBS consists of $ 710.1 million and $ 1.23 billion of commercial MBS and residential MBS, respectively.

Accrued interest receivable on HTM and AFS securities at March 31, 2024 was $ 25.6 million and $ 17.4 million, respectively, and is included in interest receivable on the consolidated balance sheets.

As of June 30, 2024, AFS MBS consisted of $ 597.7 million and $ 1.13 billion of commercial MBS and residential MBS, respectively.

As of December 31, 2023, AFS MBS consisted of $ 710.1 million and $ 1.23 billion of commercial MBS and residential MBS, respectively.

Accrued interest receivable on HTM and AFS securities at June 30, 2024 was $ 20.5 million and $ 26.7 million, respectively, and is included in interest receivable on the consolidated balance sheets.

The Company has made the election to exclude all accrued interest receivable from securities from the estimate of credit losses.

The following table summarizes the Company’s AFS investments in an unrealized loss position for which an allowance for credit loss has not been recorded as of March 31, 2024, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:

The following table summarizes the Company’s AFS investments in an unrealized loss position for which an allowance for credit loss has not been recorded as of June 30, 2024, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:

Less Than 12 Months 12 Months or More Total

9 unchanged sentences

Total AFS $ 23,103 $ ( 460 ) $ 2,801,246 $ ( 369,663 ) $ 2,824,349 $ ( 370,123 )

As of March 31, 2024, the Company’s investment portfolio included $ 3.03 billion of AFS securities, of which $ 2.97 billion, or 98.2 %, were in an unrealized loss position that were not deemed to have credit losses.

As of June 30, 2024, the Company’s investment portfolio included $ 2.89 billion of AFS securities, of which $ 2.82 billion, or 97.9 %, were in an unrealized loss position that were not deemed to have credit losses.

A portion of the unrealized losses were related to the Company’s MBS, which are issued and guaranteed by U.S.

3 unchanged sentences

Management believes the declines in fair value for the securities are temporary.

Management does not have the immediate intent to sell the securities, and management believes the accounting standard of “more likely than not” has not been met regarding whether the Company would be required to sell any of the AFS securities before recovery of amortized cost.

As of June 30, 2024, management does not have the immediate intent to sell the securities, and management believes the accounting standard of “more likely than not” has not been met regarding whether the Company would be required to sell any of the AFS securities before recovery of amortized cost.

Allowance for Credit Losses

7 unchanged sentences

(i) issuer bond ratings, (ii) issuer geography, (iii) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities, (iv) probability-weighted multiple scenario forecasts, and (v) the issuers’ size.

The following table details activity in the allowance for credit losses by investment security type for the three months ended March 31, 2024 on the Company’s HTM securities portfolio.

The following table details activity in the allowance for credit losses by investment security type for the three and six months ended June 30, 2024 on the Company’s HTM securities portfolio.

(In thousands) State and Political Subdivisions Other

Securities Total

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Held-to-maturity

Beginning balance, April 1, 2024 $ 2,252 $ 962 $ 3,214

Provision for credit loss expense — — —

Net (decrease) increase in allowance on previously impaired securities ( 2,061 ) 2,061 —

Ending balance, June 30, 2024 $ 191 $ 3,023 $ 3,214

Six Months Ended June 30, 2024

Held-to-maturity

Beginning balance, January 1, 2024 $ 2,006 $ 1,208 $ 3,214

Provision for credit loss expense — — —

Net increase (decrease) in allowance on previously impaired securities 246 ( 246 ) —

Ending balance, March 31, 2024 $ 2,252 $ 962 $ 3,214

Activity in the allowance for credit losses by investment security type for the three months ended March 31, 2023 on the Company’s HTM and AFS securities portfolio was as follows:

Net (decrease) increase in allowance on previously impaired securities ( 1,815 ) 1,815 —

Ending balance, June 30, 2024 $ 191 $ 3,023 $ 3,214

Activity in the allowance for credit losses by investment security type for the three and six months ended June 30, 2023 on the Company’s HTM and AFS securities portfolio was as follows:

(In thousands) State and Political Subdivisions Other

Securities Total

Three Months Ended March 31, 2023

Three Months Ended June 30, 2023

Held-to-maturity

Beginning balance, April 1, 2023 $ 362 $ 1,526 $ 1,888

Provision for credit loss expense 572 754 1,326

Ending balance, June 30, 2023 $ 934 $ 2,280 $ 3,214

Available-for-sale

Beginning balance, April 1, 2023 $ — $ 5,800 $ 5,800

Provision for credit loss expense — — —

Reduction due to sales — ( 2,078 ) ( 2,078 )

Net decrease in allowance on previously impaired securities — ( 1,326 ) ( 1,326 )

Ending balance, June 30, 2023 $ — $ 2,396 $ 2,396

(In thousands) State and Political Subdivisions Other

Securities Total

Six Months Ended June 30, 2023

Held-to-maturity

Beginning balance, January 1, 2023 $ 110 $ 1,278 $ 1,388

Provision for credit loss expense 824 1,002 1,826

Ending balance, March 31, 2023 $ 362 $ 1,526 $ 1,888

Ending balance, June 30, 2023 $ 934 $ 2,280 $ 3,214

Available-for-sale

1 unchanged sentence

Provision for credit loss expense — 12,800 12,800

Reduction due to sales — ( 2,078 ) ( 2,078 )

Net decrease in allowance on previously impaired securities — ( 1,326 ) ( 1,326 )

Securities charged-off — ( 7,000 ) ( 7,000 )

Ending balance, March 31, 2023 $ — $ 5,800 $ 5,800

Based upon the Company’s analysis of the underlying risk characteristics of its HTM and AFS portfolios, including credit ratings and other qualitative factors, as previously discussed, there was no provision for credit losses related to the Company’s securities portfolios recorded for the three months ended March 31, 2024.

During the three months ended March 31, 2023, the provision for credit losses related to AFS securities was $ 12.8 million.

Additionally, during the three months ended March 31, 2023, the Company charged-off $ 7.0 million directly related to one corporate bond which was deemed uncollectible in the period.

The following table summarizes bond ratings for the Company’s HTM portfolio, based upon amortized cost, issued by state and political subdivisions and other securities as of March 31, 2024:

Ending balance, June 30, 2023 $ — $ 2,396 $ 2,396

The Company recorded a provision for credit losses related to AFS securities of $ 12.8 million for the six months ended June 30, 2023.

During the same period, the provision for credit loss expense on AFS securities was reduced by $ 1.3 million related to previously impaired securities.

Additionally, during the six months ended June 30, 2023, the Company charged-off $ 7.0 million directly related to one corporate bond which was deemed uncollectible in the period.

The following table summarizes bond ratings for the Company’s HTM portfolio, based upon amortized cost, issued by state and political subdivisions and other securities as of June 30, 2024:

State and Political Subdivisions

11 unchanged sentences

Accordingly, no allowance for credit losses has been recorded for these securities as there is no current expectation of credit losses related to these securities.

Income earned on securities for the three months ended March 31, 2024 and 2023, is as follows:

Income earned on securities for the three and six months ended June 30, 2024 and 2023, is as follows:

Three Months Ended

June 30, Six Months Ended

(In thousands) 2024 2023 2024 2023

4 unchanged sentences

Total $ 55,050 $ 48,751 $ 113,051 $ 97,525

The amortized cost and estimated fair value by maturity of securities as of March 31, 2024 are shown in the following table.

The amortized cost and estimated fair value by maturity of securities as of June 30, 2024 are shown in the following table.

Securities are classified according to their contractual maturities without consideration of principal amortization, potential prepayments or call options.

10 unchanged sentences

Total $ 3,688,664 $ 3,005,524 $ 3,255,738 $ 2,885,904

The carrying value, which approximates the fair value, of securities pledged as collateral, to secure public deposits and for other purposes, amounted to $ 2.91 billion at March 31, 2024 and $ 3.32 billion at December 31, 2023.

There were no gross realized gains and no gross realized losses from the call or sale of securities during the three months ended March 31, 2024 and 2023, as they were recognized at book value of the security.

The carrying value, which approximates the fair value, of securities pledged as collateral, to secure public deposits and for other purposes, amounted to $ 2.73 billion at June 30, 2024 and $ 3.32 billion at December 31, 2023.

There were no gross realized gains and no gross realized losses from the call or sale of securities during the three and six months ended June 30, 2024, as they were recognized at book value of the security.

There were no gross realized gains and $ 391,000 gross realized losses recorded from the sale of securities during both the three and six months ended June 30, 2023.

The income tax expense/benefit related to security gains/losses was 26.135 % of the gross amounts in 2024 and 2023.

2 unchanged sentences

LOANS AND ALLOWANCE FOR CREDIT LOSSES

At March 31, 2024, the Company’s loan portfolio was $ 17.00 billion, compared to $ 16.85 billion at December 31, 2023.

At June 30, 2024, the Company’s loan portfolio was $ 17.19 billion, compared to $ 16.85 billion at December 31, 2023.

The various categories of loans are summarized as follows:

March 31, December 31,

June 30, December 31,

(In thousands) 2024 2023

12 unchanged sentences

The above table presents total loans at amortized cost.

The difference between amortized cost and unpaid principal balance is primarily premiums and discounts associated with acquisition date fair value adjustments on acquired loans as well as deferred origination costs and fees totaling $ 3.9 million and $ 6.7 million at March 31, 2024 and December 31, 2023, respectively.

Accrued interest on loans, which is excluded from the amortized cost of loans held for investment, totaled $ 79.8 million and $ 77.1 million at March 31, 2024 and December 31, 2023, respectively, and is included in interest receivable on the consolidated balance sheets.

The difference between amortized cost and unpaid principal balance is primarily premiums and discounts associated with acquisition date fair value adjustments on acquired loans as well as deferred origination costs and fees totaling $ 265,000 and $ 6.7 million at June 30, 2024 and December 31, 2023, respectively.

Accrued interest on loans, which is excluded from the amortized cost of loans held for investment, totaled $ 79.5 million and $ 77.1 million at June 30, 2024 and December 31, 2023, respectively, and is included in interest receivable on the consolidated balance sheets.

Loan Origination/Risk Management – The Company seeks to manage its credit risk by diversifying its loan portfolio, determining that borrowers have adequate sources of cash flow for loan repayment without liquidation of collateral;

25 unchanged sentences

Term loans are generally set up with one or three year balloons, and the Company has instituted a pricing mechanism for commercial loans.

It is standard practice to require personal guaranties on commercial loans for closely-held or limited liability entities.

It is general practice to require personal guaranties on commercial loans for closely-held or limited liability entities.

Paycheck Protection Program Loans – The Company originated loans pursuant to multiple PPP appropriations of the Coronavirus Aid, Relief and Economic Security Act which provided 100% federally guaranteed loans for small businesses to cover up to 24 weeks of payroll costs and assistance with mortgage interest, rent and utilities.

1 unchanged sentence

PPP loans have a zero percent risk-weight for regulatory capital ratios.

As of March 31, 2024 and December 31, 2023, the total outstanding balance of PPP loans was $ 4.2 million and $ 4.8 million, respectively.

As of June 30, 2024 and December 31, 2023, the total outstanding balance of PPP loans was $ 3.3 million and $ 4.8 million, respectively.

Other – The other loan portfolio includes mortgage warehouse loans, representing warehouse lines of credit to mortgage originators for the disbursement of newly originated 1-4 family residential loans.

7 unchanged sentences

The amortized cost basis of nonaccrual loans segregated by category of loans are as follows:

March 31, December 31,

June 30, December 31,

(In thousands) 2024 2023

10 unchanged sentences

Total $ 102,891 $ 83,325

As of March 31, 2024 and December 31, 2023, nonaccrual loans for which there was no related allowance for credit losses had an amortized cost of $ 4.8 million and $ 3.2 million, respectively.

As of June 30, 2024 and December 31, 2023, nonaccrual loans for which there was no related allowance for credit losses had an amortized cost of $ 1.1 million and $ 3.2 million, respectively.

These loans are individually assessed and do not hold an allowance due to being adequately collateralized under the collateral-dependent valuation method.

5 unchanged sentences

Loans 90 Days

March 31, 2024

June 30, 2024

Credit cards $ 1,941 $ 670 $ 2,611 $ 175,743 $ 178,354 $ 544

10 unchanged sentences

Total $ 39,512 $ 61,908 $ 101,420 $ 17,091,017 $ 17,192,437 $ 558

(In thousands) Gross

Past Due 90 Days

Past Due Total

Past Due Current Total

Loans 90 Days

December 31, 2023

15 unchanged sentences

The Company primarily uses interest rate reduction and/or payment modifications or extensions, with an occasional forgiveness of principal.

There were no loan modifications granted to borrowers experiencing financial difficulty during the three month periods ended March 31, 2024 and 2023.

During the three and six month periods ended June 30, 2024, the Company modified one real estate single family residential loan to a borrower who was experiencing financial difficulty, which included an interest rate reduction.

The loan had a period-end amortized cost basis of $ 663,000 and represented 0.03 % of the single family residential real estate class of loans at June 30, 2024.

The financial effects of this loan modification were not significant and the modification did not significantly impact the Company’s determination of the allowance for credit losses on loans during the periods.

During the three and six month periods ended June 30, 2023, the Company modified one commercial loan to a borrower who was experiencing financial difficulty, which included a term extension.

The loan had a period-end amortized cost basis of $ 655,000 and represented 0.03 % of the commercial class of loans at June 30, 2023.

The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty.

There was one commercial loan to a borrower experiencing financial difficulty with a period-end amortized cost basis of $ 23,000 that was modified during the previous twelve months and which subsequently defaulted during the three months ended March 31, 2024.

There were no loans to borrowers experiencing financial difficulty that had a payment default during the three months ended March 31, 2023 and were modified in the twelve months prior to default.

There were no loans to borrowers experiencing financial difficulty that had a payment default during the three and six months ended June 30, 2023 and were modified in the twelve months prior to default.

In relation to loans modified to borrowers experiencing financial difficulty, the Company defines a payment default as a payment received more than 90 days after its due date.

At March 31, 2024 and December 31, 2023, the Company had $ 3.3 million and $ 2.5 million, respectively, of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process.

At March 31, 2024 and December 31, 2023, the Company had $ 230,000 and $ 506,000 , respectively, of Other Real Estate Owned (“OREO”) secured by residential real estate properties.

At June 30, 2024 and December 31, 2023, the Company had $ 4.8 million and $ 2.5 million, respectively, of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process.

At June 30, 2024 and December 31, 2023, the Company had $ 124,000 and $ 506,000 , respectively, of Other Real Estate Owned (“OREO”) secured by residential real estate properties.

Credit Quality Indicators – As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to (i) the weighted-average risk rating of commercial and real estate loans, (ii) the level of classified commercial and real estate loans, (iii) net charge-offs, (iv) non-performing loans (see details above) and (v) the general economic conditions of the Company’s local markets.

64 unchanged sentences

• Doubtful and loss - Includes loans with an expanded risk rating of 15 and 16.

The following table presents a summary of loans by credit quality indicator, as of March 31, 2024, segregated by class of loans.

The following table presents a summary of loans by credit quality indicator, as of June 30, 2024, segregated by class of loans.

Term Loans Amortized Cost Basis by Origination Year

121 unchanged sentences

Beyond the reasonable and supportable periods, the economic variables revert to a historical equilibrium at a pace dependent on the state of the economy reflected within the economic scenarios.

To determine the best estimate of credit losses as of March 31, 2024, the Company utilized a probability-weighted, multiple-scenario approach consisting of Baseline, Upside (S1), and Downside (S3) scenarios published by Moody’s Analytics in March 2024 that was updated to reflect the U.S.

To determine the best estimate of credit losses as of June 30, 2024, the Company utilized a probability-weighted, multiple-scenario approach consisting of Baseline, Upside (S1), and Downside (S3) scenarios published by Moody’s Analytics in June 2024 that was updated to reflect the U.S.

economic outlook.

9 unchanged sentences

If a loss is determined to be probable, the loss is included in the allowance for credit losses as a specific allocation.

Loans for which the repayment is expected to be provided substantially through the operation or sale of collateral and where the borrower is experiencing financial difficulty had an amortized cost of $ 148.0 million and $ 144.6 million as of March 31, 2024 and December 31, 2023, respectively, as further detailed in the table below.

Loans for which the repayment is expected to be provided substantially through the operation or sale of collateral and where the borrower is experiencing financial difficulty had an amortized cost of $ 110.6 million and $ 144.6 million as of June 30, 2024 and December 31, 2023, respectively, as further detailed in the table below.

The collateral securing these loans consist of commercial real estate properties, residential properties, and other business assets.

(In thousands) Real Estate Collateral Other Collateral Total

March 31, 2024

June 30, 2024

Construction and development $ 2,056 $ — $ 2,056

9 unchanged sentences

Total $ 123,925 $ 20,679 $ 144,604

The following table details activity in the allowance for credit losses by portfolio segment for the three months ended March 31, 2024.

The following table details activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2024.

Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

3 unchanged sentences

Allowance for credit losses:

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Beginning balance, April 1, 2024 $ 35,191 $ 180,414 $ 5,768 $ 5,994 $ 227,367

Provision for credit loss expense 15,147 ( 5,187 ) 1,194 ( 55 ) 11,099

Charge-offs ( 7,243 ) ( 123 ) ( 1,418 ) ( 550 ) ( 9,334 )

Recoveries 455 72 221 509 1,257

Net (charge-offs) recoveries ( 6,788 ) ( 51 ) ( 1,197 ) ( 41 ) ( 8,077 )

Ending balance, June 30, 2024 $ 43,550 $ 175,176 $ 5,765 $ 5,898 $ 230,389

Six Months Ended June 30, 2024

Beginning balance, January 1, 2024 $ 36,470 $ 177,177 $ 5,868 $ 5,716 $ 225,231

2 unchanged sentences

Recoveries 897 807 469 842 3,015

Net charge-offs ( 4,151 ) ( 2,122 ) ( 1,398 ) ( 399 ) ( 8,070 )

Ending balance, March 31, 2024 $ 35,191 $ 180,414 $ 5,768 $ 5,994 $ 227,367

Activity in the allowance for credit losses for the three months ended March 31, 2023 was as follows:

Net (charge-offs) recoveries ( 10,939 ) ( 2,173 ) ( 2,595 ) ( 440 ) ( 16,147 )

Ending balance, June 30, 2024 $ 43,550 $ 175,176 $ 5,765 $ 5,898 $ 230,389

Activity in the allowance for credit losses for the three and six months ended June 30, 2023 was as follows:

(In thousands) Commercial Real

1 unchanged sentence

and Other Total

Three Months Ended March 31, 2023

Allowance for credit losses:

Three Months Ended June 30, 2023

Beginning balance, April 1, 2023 $ 30,256 $ 163,906 $ 6,446 $ 5,949 $ 206,557

Provision for credit loss expense 1,483 1,464 995 1,119 5,061

Charge-offs ( 1,225 ) ( 435 ) ( 1,409 ) ( 666 ) ( 3,735 )

Recoveries 471 878 298 436 2,083

Net (charge-offs) recoveries ( 754 ) 443 ( 1,111 ) ( 230 ) ( 1,652 )

Ending balance, June 30, 2023 $ 30,985 $ 165,813 $ 6,330 $ 6,838 $ 209,966

Six Months Ended June 30, 2023

Beginning balance, January 1, 2023 $ 34,406 $ 150,795 $ 5,140 $ 6,614 $ 196,955

3 unchanged sentences

Net (charge-offs) recoveries ( 99 ) ( 467 ) ( 1,954 ) ( 446 ) ( 2,966 )

Ending balance, March 31, 2023 $ 30,256 $ 163,906 $ 6,446 $ 5,949 $ 206,557

As of March 31, 2024, the Company’s allowance for credit losses was considered sufficient based upon expected losses that were supported by scenario-weighted economic forecasts.

The provision expense for the three months ended March 31, 2024 was primarily due to the loan growth experienced during the periods, as well as the impact of updated economic assumptions.

Ending balance, June 30, 2023 $ 30,985 $ 165,813 $ 6,330 $ 6,838 $ 209,966

As of June 30, 2024, the Company’s allowance for credit losses was considered sufficient based upon expected losses that were supported by scenario-weighted economic forecasts.

The provision expense for the three and six months ended June 30, 2024 was primarily due to the loan growth experienced during the periods, as well as the impact of updated economic assumptions.

Reserve for Unfunded Commitments

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This reserve is maintained at a level management believes to be sufficient to absorb losses arising from unfunded loan commitments.

The reserve for unfunded commitments was $ 25.6 million and $ 25.6 million as of March 31, 2024 and December 31, 2023, respectively.

The reserve for unfunded commitments was $ 25.6 million for both periods ended June 30, 2024 and December 31, 2023.

The adequacy of the reserve for unfunded commitments is determined quarterly based on methodology similar to the methodology for determining the allowance for credit losses.

No adjustment was made to the reserve for unfunded commitments during the three month periods ended March 31, 2024, and 2023, as it was considered sufficient to cover any loss expectations.

No adjustment was made to the reserve for unfunded commitments during the three and six month periods ended June 30, 2024, as it was considered sufficient to cover any loss expectations.

During the three and six month periods ended June 30, 2023, $ 5.0 million was released from the reserve for unfunded commitments primarily due to a decline in unfunded commitments resulting from customers utilizing lines of credit during the period.

Provision for Credit Losses

Provision for credit losses is determined by the Company as the amount to be added to the allowance for credit loss accounts for various types of financial instruments including loans, securities and off-balance-sheet credit exposure after net charge-offs have been deducted to bring the allowance to a level which, in management’s best estimate, is necessary to absorb expected credit losses over the lives of the respective financial instruments.

The components of the provision for credit losses for the three month periods ended March 31, 2024 and 2023 were as follows:

The components of the provision for credit losses for the three and six month periods ended June 30, 2024 and 2023 were as follows:

Three Months Ended

June 30, Six Months Ended

(In thousands) 2024 2023 2024 2023

1 unchanged sentence

Loans $ 11,099 $ 5,061 $ 21,305 $ 15,977

Unfunded commitments — ( 5,000 ) — ( 5,000 )

Securities - HTM — 1,326 — 1,826

23 unchanged sentences

The Company’s leases are classified as operating leases with a term, including expected renewal or termination options, greater than one year, and are related to certain office facilities and office equipment.

The following table presents information as of March 31, 2024 and December 31, 2023 related to the Company’s right-of-use lease assets, included in premises and equipment, and lease liabilities, included in accrued interest and other liabilities.

March 31, December 31,

The following table presents information as of June 30, 2024 and December 31, 2023 related to the Company’s right-of-use lease assets, included in premises and equipment, and lease liabilities, included in accrued interest and other liabilities.

June 30, December 31,

(Dollars in thousands) 2024 2023

3 unchanged sentences

Weighted average discount rate 3.75 % 3.52 %

Operating lease cost for the three month period ended March 31, 2024 was $ 4.0 million as compared to $ 3.9 million for the same period in 2023.

Operating lease cost for the three and six month periods ended June 30, 2024 was $ 4.1 million and $ 8.2 million, respectively, as compared to $ 3.7 million and $ 7.6 million for the same periods in 2023.

PREMISES AND EQUIPMENT

Premises and equipment are stated at cost less accumulated depreciation and amortization.

Total premises and equipment, net at March 31, 2024 and December 31, 2023 were as follows:

March 31, December 31,

Total premises and equipment, net at June 30, 2024 and December 31, 2023 were as follows:

June 30, December 31,

(In thousands) 2024 2023

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Subsequent increases in goodwill value are not recognized in the financial statements.

Goodwill totaled $ 1.32 billion at March 31, 2024 and December 31, 2023.

Goodwill impairment was neither indicated no r recorded during the three months ended March 31, 2024 or the year ended December 31, 2023.

Goodwill totaled $ 1.32 billion at June 30, 2024 and December 31, 2023.

Goodwill impairment was neither indicated no r recorded during the six months ended June 30, 2024 or the year ended December 31, 2023.

Core deposit premiums represent the value of the relationships that acquired banks had with their deposit customers and are amortized over periods ranging from 10 years to 15 years and are periodically evaluated, at least annually, as to the recoverability of their carrying value.

Other intangible assets represent the value of other acquired relationships, including relationships with trust and wealth management customers, and are being amortized over various periods ranging from 8 years to 15 years.

Changes in the carrying amount and accumulated amortization of the Company’s core deposit premiums and other intangible assets at March 31, 2024 and December 31, 2023 were as follows:

March 31, December 31,

Changes in the carrying amount and accumulated amortization of the Company’s core deposit premiums and other intangible assets at June 30, 2024 and December 31, 2023 were as follows:

June 30, December 31,

(In thousands) 2024 2023

8 unchanged sentences

Total other intangible assets, net $ 104,943 $ 112,645

The carrying basis and accumulated amortization of the Company’s other intangible assets at March 31, 2024 and December 31, 2023 were as follows:

March 31, December 31,

The carrying basis and accumulated amortization of the Company’s other intangible assets at June 30, 2024 and December 31, 2023 were as follows:

June 30, December 31,

(In thousands) 2024 2023

8 unchanged sentences

Total other intangible assets, net $ 104,943 $ 112,645

The Company’s estimated remaining amortization expense on other intangible assets as of March 31, 2024 is as follows:

The Company’s estimated remaining amortization expense on other intangible assets as of June 30, 2024 is as follows:

(In thousands) Year Amortization

3 unchanged sentences

TIME DEPOSITS

Time deposits included approximately $ 1.76 billion and $ 1.73 billion of certificates of deposit over $250,000 at March 31, 2024 and December 31, 2023, respectively.

Brokered time deposits were $ 3.02 billion and $ 2.90 billion at March 31, 2024 and December 31, 2023, respectively.

Time deposits included approximately $ 1.71 billion and $ 1.73 billion of certificates of deposit over $250,000 at June 30, 2024 and December 31, 2023, respectively.

Brokered time deposits were $ 2.94 billion and $ 2.90 billion at June 30, 2024 and December 31, 2023, respectively.

The provision for income taxes is comprised of the following components for the periods indicated below:

Three Months Ended

June 30, Six Months Ended

(In thousands) 2024 2023 2024 2023

3 unchanged sentences

The tax effects of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts that give rise to deferred income tax assets and liabilities, and their approximate tax effects, are as follows:

March 31, December 31,

June 30, December 31,

(In thousands) 2024 2023

22 unchanged sentences

Three Months Ended

June 30, Six Months Ended

(In thousands) 2024 2023 2024 2023

33 unchanged sentences

Securities pledged as collateral under repurchase agreements are maintained with the Company’s safekeeping agents.

The gross amount of recognized liabilities for repurchase agreements was $ 58.4 million and $ 67.6 million at March 31, 2024 and December 31, 2023, respectively.

The remaining contractual maturity of the securities sold under agreements to repurchase in the consolidated balance sheets as of March 31, 2024 and December 31, 2023 is presented in the following tables.

The gross amount of recognized liabilities for repurchase agreements was $ 52.3 million and $ 67.6 million at June 30, 2024 and December 31, 2023, respectively.

The remaining contractual maturity of the securities sold under agreements to repurchase in the consolidated balance sheets as of June 30, 2024 and December 31, 2023 is presented in the following tables.

Remaining Contractual Maturity of the Agreements

2 unchanged sentences

90 Days Total

March 31, 2024

June 30, 2024

Repurchase agreements:

4 unchanged sentences

OTHER BORROWINGS AND SUBORDINATED NOTES AND DEBENTURES

Debt at March 31, 2024 and December 31, 2023 consisted of the following components:

March 31, December 31,

Debt at June 30, 2024 and December 31, 2023 consisted of the following components:

June 30, December 31,

(In thousands) 2024 2023

26 unchanged sentences

From and including July 31, 2025, to, but excluding, the maturity date or earlier redemption date, the interest rate will reset quarterly to an interest rate per annum equal to a benchmark rate, which is expected to be the then-current three-month SOFR rate, as published by the Federal Reserve Bank of New York (provided, that in the event the benchmark rate is less than zero, the benchmark rate will be deemed to be zero) plus 592 basis points, payable quarterly, in arrears.

The Company had total FHLB advances of $ 853.2 million and $ 953.2 million at March 31, 2024 and December 31, 2023, respectively, which are primarily fixed rate, fixed term advances, which are due less than one year from origination and therefore are classified as short-term advances by the Company.

At March 31, 2024, the FHLB advances outstanding were secured by mortgage loans and investment securities totaling approximately $ 7.02 billion and the Company had approximately $ 5.33 billion of additional advances available from the FHLB.

The Company had total FHLB advances of $ 1.33 billion and $ 953.2 million at June 30, 2024 and December 31, 2023, respectively, which are primarily fixed rate, fixed term advances, which are due less than one year from origination and therefore are classified as short-term advances by the Company.

At June 30, 2024, the FHLB advances outstanding were secured by mortgage loans and investment securities totaling approximately $ 7.07 billion and the Company had approximately $ 4.91 billion of additional advances available from the FHLB.

The Company’s long-term debt primarily includes subordinated debt and other notes payable.

Aggregate annual maturities of long-term debt at March 31, 2024, are as follows:

Aggregate annual maturities of long-term debt at June 30, 2024, are as follows:

Year (In thousands)

14 unchanged sentences

On April 27, 2022, the Company’s shareholders approved an amendment to the Company’s Articles of Incorporation to remove the classification and designation for the Series D Preferred Stock.

As of March 31, 2024, there were no shares of preferred stock issued or outstanding.

As of June 30, 2024, there were no shares of preferred stock issued or outstanding.

In January 2022, the Company’s Board of Directors authorized a stock repurchase program (“2022 Program”) under which the Company could repurchase up to $ 175.0 million of its Class A common stock currently issued and outstanding.

Because the 2022 Program was set to terminate on January 31, 2024, the Company’s Board of Directors authorized a new stock repurchase program in January 2024 (“2024 Program”) under which the Company may repurchase up to $ 175.0 million of its Class A common stock currently issued and outstanding.

The 2024 Program will be executed in accordance with Rule 10b-18 under the Exchange Act and will terminate on January 31, 2026 (unless terminated sooner).

No shares were repurchased during the three month periods ended March 31, 2024 and 2023.

Market conditions and the Company’s capital needs, among other things, will drive decisions regarding additional, future stock repurchases.

The 2024 Program will be executed in accordance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended, and will terminate on January 31, 2026 (unless terminated sooner).

Under the 2024 Program, which replaced the 2022 Program, the Company may repurchase shares of its common stock through open market and privately negotiated transactions or otherwise.

2 unchanged sentences

The Company anticipates funding for this 2024 Program to come from available sources of liquidity, including cash on hand and future cash flow.

No shares were repurchased during the three and six month periods ended June 30, 2024.

Market conditions and the Company’s capital needs, among other things, will drive decisions regarding additional, future stock repurchases.

During the three and six month periods ended June 30, 2023, the Company repurchased 1,128,087 shares at an average price of $ 17.75 per share under the 2022 Program.

UNDIVIDED PROFITS

1 unchanged sentence

The approval of the Commissioner of the Arkansas State Bank Department is required if the total of all dividends declared by an Arkansas state bank in any calendar year exceeds seventy-five percent ( 75 %) of the total of its net profits, as defined, for that year combined with seventy-five percent ( 75 %) of its retained net profits of the preceding year.

At March 31, 2024, Simmons Bank had approximately $ 16.6 million available for payment of dividends to the Company, without prior regulatory approval.

Since Simmons Bank is also under supervision of the Federal Reserve, it is further limited if the total of all dividends declared in any calendar year by Simmons Bank exceeds its net income to date for that year combined with its retained net profits for the preceding two years.

At June 30, 2024, Simmons Bank had approximately $ 2.2 million available for payment of dividends to the Company, without prior regulatory approval.

The risk-based capital guidelines of the Federal Reserve Board and the Arkansas State Bank Department include the definitions for (1) a well-capitalized institution, (2) an adequately-capitalized institution, and (3) an undercapitalized institution.

4 unchanged sentences

Failure to meet this capital conservation buffer would result in additional limits on dividends, other distributions and discretionary bonuses.

As of March 31, 2024, the Company and Simmons Bank met all capital adequacy requirements, including the capital conservation buffer, under the Basel III Capital Rules.

The Company’s CET1 ratio was 11.95 % at March 31, 2024.

As of June 30, 2024, the Company and Simmons Bank met all capital adequacy requirements, including the capital conservation buffer, under the Basel III Capital Rules.

The Company’s CET1 ratio was 12.00 % at June 30, 2024.

STOCK-BASED COMPENSATION

The Company’s Board of Directors has adopted various stock-based compensation plans.

The Company’s Board of Directors has adopted various stock-based compensation plans, including the 2023 Stock and Incentive Plan that was approved by shareholders and became effective April 18, 2023.

The plans provide for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance stock units and stock awards.

Pursuant to the plans, shares are reserved for future issuance by the Company upon exercise of stock options or awards of restricted stock, restricted stock units, performance stock units or stock awards granted to directors, officers and other key employees.

The table below summarizes the transactions under the Company’s active stock-based compensation plans for the three months ended March 31, 2024:

The table below summarizes the transactions under the Company’s active stock-based compensation plans for the six months ended June 30, 2024:

Stock Options

10 unchanged sentences

Forfeited/expired ( 37 ) 22.52 — — ( 150 ) 26.07

Balance, March 31, 2024 410 $ 22.57 — $ — 1,629 $ 21.45

Exercisable, March 31, 2024 410 $ 22.57

The following table summarizes information about stock options under the plans outstanding at March 31, 2024:

Balance, June 30, 2024 410 $ 22.57 — $ — 1,613 $ 21.00

Exercisable, June 30, 2024 410 $ 22.57

The following table summarizes information about stock options under the plans outstanding at June 30, 2024:

Options Outstanding Options Exercisable

9 unchanged sentences

$ 20.29 — $ 24.07 410 1.08 $ 22.57 410 $ 22.57

The table below summarizes the Company’s performance stock unit activity for the three months ended March 31, 2024:

The table below summarizes the Company’s performance stock unit activity for the six months ended June 30, 2024:

(In thousands) Performance Stock Units

2 unchanged sentences

Forfeited ( 108 )

Non-vested, March 31, 2024 534

Stock-based compensation expense was $ 4.4 million and $ 4.9 million during the three month periods ended March 31, 2024 and 2023, respectively.

Non-vested, June 30, 2024 530

Stock-based compensation expense was $ 7.5 million and $ 8.0 million during the six month periods ended June 30, 2024 and 2023, respectively.

Stock-based compensation expense is recognized ratably over the requisite service period for all stock-based awards.

There was no unrecognized stock-based compensation expense related to stock options at March 31, 2024.

Unrecognized stock-based compensation expense related to non-vested stock awards and stock units was $ 21.7 million at March 31, 2024.

There was no unrecognized stock-based compensation expense related to stock options at June 30, 2024.

Unrecognized stock-based compensation expense related to non-vested stock awards and stock units was $ 19.7 million at June 30, 2024.

At such date, the weighted-average period over which this unrecognized expense is expected to be recognized was 1.8 years.

There was no intrinsic value of stock options outstanding and stock options exercisable at March 31, 2024.

Aggregate intrinsic value represents the difference between the Company’s closing stock price on the last trading day of the period, which was $ 19.46 as of March 31, 2024, and the exercise price multiplied by the number of options outstanding.

There was no intrinsic value of stock options exercised during the three months ended March 31, 2024 and there was $ 6,000 of intrinsic value of stock options exercised during the same period of 2023.

There was no intrinsic value of stock options outstanding and stock options exercisable at June 30, 2024.

Aggregate intrinsic value represents the difference between the Company’s closing stock price on the last trading day of the period, which was $ 17.58 as of June 30, 2024, and the exercise price multiplied by the number of options outstanding.

There was no intrinsic value of stock options exercised during the six months ended June 30, 2024 and there was $ 6,000 of intrinsic value of stock options exercised during the same period of 2023.

The fair value of the Company’s employee stock options granted is estimated on the date of grant using the Black-Scholes option-pricing model.

This model requires the input of highly subjective assumptions, changes to which can materially affect the fair value estimate.

There were no stock options granted during the three months ended March 31, 2024 and 2023.

There were no stock options granted during the six months ended June 30, 2024 and 2023.

EARNINGS PER SHARE (“EPS”)

3 unchanged sentences

Three Months Ended

June 30, Six Months Ended

(In thousands, except per share data) 2024 2023 2024 2023

5 unchanged sentences

Diluted earnings per share $ 0.32 $ 0.46 $ 0.63 $ 0.82

There were 410,490 stock options excluded from the three months ended March 31, 2024 earnings per share calculation due to the related stock option exercise price exceeding the average market price of the Company’s stock during the period.

There were 422,180 stock options excluded from the earnings per share calculation for the three months ended March 31, 2023 due to the related stock option exercise price exceeding the average market price of the Company’s stock during the period.

There were 410,490 stock options excluded from the three and six months ended June 30, 2024 earnings per share calculation due to the related stock option exercise price exceeding the average market price of the Company’s stock during the periods.

There were 469,280 stock options excluded from the earnings per share calculation for the three and six months ended June 30, 2023 due to the related stock option exercise price exceeding the average market price of the Company’s stock during the periods.

ADDITIONAL CASH FLOW INFORMATION

The following is a summary of the Company’s additional cash flow information:

Three Months Ended

Six Months Ended

(In thousands) 2024 2023

3 unchanged sentences

OTHER INCOME AND OTHER OPERATING EXPENSES

Other income for the three months ended March 31, 2024 and 2023 was $ 7.2 million and $ 11.3 million, respectively.

Included in other income during the first quarter of 2023 was a $ 4.0 million legal reserve recapture associated with previously disclosed legal matters.

Other income for the three and six months ended June 30, 2024 was $ 6.4 million and $ 13.6 million, respectively.

Other income for the three and six months ended June 30, 2023 was $ 9.8 million and $ 21.1 million, respectively.

Included in other income during the six month period ended June 30, 2023 was a $ 4.0 million legal reserve recapture associated with previously disclosed legal matters, coupled with fair value adjustments associated with certain equity investments and death benefits from bank owned life insurance.

Other operating expenses consisted of the following:

Three Months Ended

June 30, Six Months Ended

(In thousands) 2024 2023 2024 2023

23 unchanged sentences

Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate.

At March 31, 2024, the Company had outstanding commitments to extend credit aggregating approximately $ 751.7 million and $ 4.14 billion for credit card commitments and other loan commitments, respectively.

At June 30, 2024, the Company had outstanding commitments to extend credit aggregating approximately $ 757.5 million and $ 4.02 billion for credit card commitments and other loan commitments, respectively.

At December 31, 2023, the Company had outstanding commitments to extend credit aggregating approximately $ 738.2 million and $ 4.17 billion for credit card commitments and other loan commitments, respectively.

As of March 31, 2024, the Company had outstanding commitments to originate fixed-rate mortgage loans of approximately $ 30.2 million.

As of June 30, 2024, the Company had outstanding commitments to originate fixed-rate mortgage loans of approximately $ 24.8 million.

At December 31, 2023, the Company had outstanding commitments to originate fixed-rate mortgage loans of approximately $ 16.6 million.

3 unchanged sentences

The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers.

The Company had total outstanding letters of credit amounting to $ 55.7 million and $ 54.2 million at March 31, 2024, and December 31, 2023, respectively, with terms ranging from 9 months to 15 years.

At March 31, 2024 and December 31, 2023, the Company had no deferred revenue under standby letter of credit agreements.

The Company had total outstanding letters of credit amounting to $ 59.4 million and $ 54.2 million at June 30, 2024 and December 31, 2023, respectively, with terms ranging from 9 months to 15 years.

At June 30, 2024 and December 31, 2023, the Company had no deferred revenue under standby letter of credit agreements.

The Company has purchased letters of credit from the FHLB as security for certain public deposits.

The amount of the letters of credit was $ 837.6 million and $ 580.8 million at March 31, 2024 and December 31, 2023, respectively, and they expire in less than one year from issuance.

The amount of the letters of credit was $ 824.5 million and $ 580.8 million at June 30, 2024 and December 31, 2023, respectively, and they expire in less than one year from issuance.

FAIR VALUE MEASUREMENTS

36 unchanged sentences

Where assumptions are made using significant unobservable inputs, such loans held for sale are classified as Level 3.

At March 31, 2024 and December 31, 2023, the aggregate fair value of mortgage loans held for sale exceeded their cost.

At June 30, 2024 and December 31, 2023, the aggregate fair value of mortgage loans held for sale exceeded their cost.

Derivative instruments – The Company’s derivative instruments are reported at fair value utilizing Level 2 inputs.

The Company obtains fair value measurements from dealer quotes.

The following table sets forth the Company’s financial assets by level within the fair value hierarchy that were measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023.

The following table sets forth the Company’s financial assets by level within the fair value hierarchy that were measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023.

Fair Value Measurements Using

6 unchanged sentences

Unobservable Inputs

March 31, 2024

June 30, 2024

Available-for-sale securities

35 unchanged sentences

As the Company’s primary objective in the event of default would be to liquidate the collateral to settle the outstanding balance of the loan, collateral that is less marketable would receive a larger discount.

The following table sets forth the Company’s assets by level within the fair value hierarchy that were measured at fair value on a nonrecurring basis as of March 31, 2024 and December 31, 2023.

The following table sets forth the Company’s assets by level within the fair value hierarchy that were measured at fair value on a nonrecurring basis as of June 30, 2024 and December 31, 2023.

Fair Value Measurements Using

6 unchanged sentences

Unobservable Inputs

March 31, 2024

June 30, 2024

Individually assessed loans (1) (2) (collateral-dependent)

9 unchanged sentences

(1) These amounts represent the resulting carrying amounts on the consolidated balance sheets for collateral-dependent loans and foreclosed assets and other real estate owned for which fair value re-measurements took place during the period.

(2) Identified reserves of $ 21.8 million and $ 18.7 million were related to collateral-dependent loans for which fair value re-measurements took place during the periods ended March 31, 2024 and December 31, 2023, respectively.

(2) Identified reserves of $ 27.7 million and $ 18.7 million were related to collateral-dependent loans for which fair value re-measurements took place during the periods ended June 30, 2024 and December 31, 2023, respectively.

ASC Topic 825, Financial Instruments , requires disclosure in annual and interim financial statements of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or nonrecurring basis.

33 unchanged sentences

(In thousands) Amount Level 1 Level 2 Level 3 Total

March 31, 2024

June 30, 2024

Financial assets:

68 unchanged sentences

The two year forward start date for these swaps occurred during late third quarter of 2023 and involves the payment of fixed interest rates with a weighted average of 1.21 % in exchange for variable interest rates based on federal funds rates.

For the three month period ended March 31, 2024, the net amount included in interest income on investment securities in the consolidated statements of income related to fair value hedges was $ 12.4 million.

For the six month period ended June 30, 2024, the net amount included in interest income on investment securities in the consolidated statements of income related to fair value hedges was $ 23.1 million.

The following table summarizes the fair value hedges recorded in the accompanying consolidated balance sheets.

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

(In thousands) Balance Sheet Location Weighted Average Pay Rate Receive Rate Notional Fair Value Notional Fair Value

2 unchanged sentences

Carrying Amount of Hedged Assets Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Assets

Line Item on the Balance Sheet (In thousands) March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023

Line Item on the Balance Sheet (In thousands) June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023

Investment securities - Available-for-sale $ 924,339 $ 940,010 $ 116,686 $ 104,408

7 unchanged sentences

The following table summarizes the fair values of loan derivative contracts recorded in the accompanying consolidated balance sheets.

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

(In thousands) Notional Fair Value Notional Fair Value

4 unchanged sentences

The interest rate swap mark to market only impacts the Company if the swap is in a liability position to the counterparty and the customer defaults on payments to the counterparty.

The notional amount of these contingent agreements is $ 19.4 million as of March 31, 2024.

The notional amount of these contingent agreements is $ 23.9 million as of June 30, 2024.

Energy Hedging

5 unchanged sentences

These risks are mitigated by customer credit underwriting policies and establishing a predetermined hedge line for each borrower and by monitoring the exchange margin.

During the second quarter of 2023, the Company’s remaining energy hedge swap contracts expired and there were no outstanding notional values related to these contracts as of March 31, 2024.

During the second quarter of 2023, the Company’s remaining energy hedge swap contracts expired and there were no outstanding notional values related to these contracts as of June 30, 2024.

Currently, the Company generally does not intend to offer hedging services to any remaining energy related customers.

4 unchanged sentences

Results of Review of Interim Financial Statements

We have reviewed the consolidated balance sheet of Simmons First National Corporation and subsidiaries (“the Company”) as of March 31, 2024, and the related consolidated statements of income, comprehensive income (loss), stockholders’ equity and cash flows for the three-month periods ended March 31, 2024 and 2023, and the related notes (collectively referred to as the “interim financial information or statements”).

We have reviewed the consolidated balance sheet of Simmons First National Corporation (“the Company”) and subsidiaries as of June 30, 2024, and the related consolidated statements of income, comprehensive income (loss), and stockholders’ equity for the three and six month periods ended June 30, 2024 and 2023, and cash flows for the six month periods ended June 30, 2024 and 2023, and the related notes (collectively referred to as the “interim financial information or statements”).

Based on our reviews, we are not aware of any material modifications that should be made to the condensed consolidated financial statements referred to above for them to be in conformity with accounting principles generally accepted in the United States of America.

6 unchanged sentences

We conducted our review in accordance with the standards of the PCAOB.

A review of interim financial information (statements) consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters.

A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters.

It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole.

Accordingly, we do not express such an opinion.

/s/ FORVIS, LLP

/s/ Forvis Mazars, LLP

Little Rock, Arkansas

August 6, 2024

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements