Company Overview - Simmons First National (SFNC) is a bank holding company based in Pine Bluff, operating in the Finance sector. The company's shares have experienced a price change of -10.05% this year [3]. Dividend Information - SFNC currently pays a dividend of $0.21 per share, resulting in a dividend yield of 4.26%, which is significantly higher than the Banks - Southeast industry's yield of 2.34% and the S&P 500's yield of 1.51% [3]. - The annualized dividend of $0.85 has increased by 1.2% from the previous year. Over the last five years, SFNC has raised its dividend five times, achieving an average annual increase of 5.01% [4]. Earnings Growth - The Zacks Consensus Estimate for SFNC's earnings in 2025 is projected at $1.66 per share, indicating a year-over-year earnings growth rate of 17.73% [5]. Payout Ratio - SFNC has a current payout ratio of 58%, meaning it distributes 58% of its trailing 12-month earnings per share as dividends [4]. Investment Appeal - SFNC is characterized as an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 1 (Strong Buy) [6].

[Part I: Financial Information](index=3&type=section&id=Part%20I%3A%20Financial%20Information) [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) Simmons First National Corporation reported increased H1 2025 net income, stable assets, and a significant subsequent balance sheet repositioning [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$26,693,620** | **$26,876,049** | | Net Loans | $16,857,559 | $16,770,918 | | Total Investments | $5,996,851 | $6,166,062 | | Goodwill | $1,320,799 | $1,320,799 | | **Total Liabilities** | **$23,144,410** | **$23,347,177** | | Total Deposits | $21,824,990 | $21,885,750 | | **Total Stockholders' Equity** | **$3,549,210** | **$3,528,872** | - Total assets decreased slightly from **$26.88 billion** at the end of 2024 to **$26.69 billion** as of June 30, 2025, primarily driven by a decrease in total investments, while net loans saw a modest increase[9](index=9&type=chunk) [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) | (In thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $171,824 | $153,905 | $335,246 | $305,811 | | Provision for credit losses | $11,945 | $11,099 | $38,742 | $21,305 | | **Net Income** | **$54,773** | **$40,763** | **$87,161** | **$79,634** | | **Diluted Earnings Per Share** | **$0.43** | **$0.32** | **$0.69** | **$0.63** | - Net income for Q2 2025 was **$54.8 million**, a significant increase from **$40.8 million** in Q2 2024, with six-month net income rising to **$87.2 million** from **$79.6 million** year-over-year, driven by higher net interest income[11](index=11&type=chunk) - The provision for credit losses increased to **$38.7 million** for the first six months of 2025, up from **$21.3 million** in the same period of 2024, indicating a more cautious outlook on credit quality[11](index=11&type=chunk) [Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $54,773 | $40,763 | $87,161 | $79,634 | | Total Other Comprehensive Income (Loss) | $(13,190) | $2,535 | $(19,990) | $(1,106) | | **Comprehensive Income** | **$41,583** | **$43,298** | **$67,171** | **$78,528** | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) | (In thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $110,439 | $143,654 | | Net cash provided by (used in) investing activities | $79,677 | $(84,382) | | Net cash used in financing activities | $(233,031) | $(99,031) | | **Decrease in Cash and Cash Equivalents** | **$(42,915)** | **$(39,759)** | [Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) - Total stockholders' equity increased from **$3.53 billion** at the end of 2024 to **$3.55 billion** at June 30, 2025, driven by net income of **$87.2 million**, partially offset by dividends paid of **$53.5 million** and an increase in accumulated other comprehensive loss of **$20.0 million**[21](index=21&type=chunk) [Condensed Notes to Consolidated Financial Statements](index=10&type=section&id=Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) - The company operates approximately **223 financial centers** across Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas as of June 30, 2025[23](index=23&type=chunk) - A significant subsequent event in July 2025 involved reclassifying **$3.6 billion** of Held-to-Maturity securities to Available-for-Sale and selling approximately **$3.2 billion** of AFS securities, resulting in an estimated after-tax loss of approximately **$604.0 million** to be recorded in Q3 2025[56](index=56&type=chunk)[198](index=198&type=chunk) - In July 2025, the company closed a public offering of **18,653,000 shares** of its Class A common stock, generating net proceeds of approximately **$326.9 million**[125](index=125&type=chunk)[197](index=197&type=chunk) [Report of Independent Registered Public Accounting Firm](index=52&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) - The independent registered public accounting firm, Forvis Mazars, LLP, reviewed the interim financial statements and is not aware of any material modifications needed for them to conform with U.S. GAAP[200](index=200&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses improved H1 2025 profitability driven by net interest margin expansion, stable asset quality, and a significant balance sheet repositioning | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net Income | $54.8 million | $32.4 million | | Diluted EPS | $0.43 | $0.26 | | Adjusted Net Income (non-GAAP) | $56.1 million | $33.1 million | | Adjusted Diluted EPS (non-GAAP) | $0.44 | $0.26 | - Nonperforming assets as a percentage of total assets increased to **0.62%** at June 30, 2025, compared to **0.45%** at December 31, 2024, primarily due to two specific credit relationships migrating to nonperforming status[209](index=209&type=chunk)[278](index=278&type=chunk) - The company maintains a strong liquidity position with a loan-to-deposit ratio of **78%** and available liquidity sources of **$10.72 billion**, providing **2.3x coverage** for uninsured, non-collateralized deposits[211](index=211&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=78&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages interest rate risk with a liability-sensitive balance sheet, projecting impacts on net interest income, and maintains ample liquidity - The parent company's primary sources of liquidity are dividends from its subsidiary, Simmons Bank, with **$78.2 million** available for dividends to the parent company without prior regulatory approval as of June 30, 2025[344](index=344&type=chunk) - The company has seven primary and secondary sources of liquidity, including federal funds lines (**$435.0 million**), FHLB credit lines (**$5.13 billion**), wholesale and retail deposits, a laddered investment portfolio, correspondent bank lines, and the Federal Reserve Discount Window[348](index=348&type=chunk) | Interest Rate Scenario | % Change in Net Interest Income from Base | | :--- | :--- | | Up 200 basis points | (2.48)% | | Up 100 basis points | (1.10)% | | Down 100 basis points | 0.10% | | Down 200 basis points | 0.37% | [Controls and Procedures](index=80&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - The CEO, CFO, and Chief Accounting Officer concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[362](index=362&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, these controls[363](index=363&type=chunk) [Part II: Other Information](index=80&type=section&id=Part%20II%3A%20Other%20Information) [Legal Proceedings](index=80&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, with management expecting no material adverse effect on financial condition - The company is party to various legal proceedings in the ordinary course of business, and management believes the ultimate outcome will not have a material adverse effect on the company's financial condition[120](index=120&type=chunk)[121](index=121&type=chunk) [Risk Factors](index=80&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor addresses the potential adverse tax implications of a significant Q3 2025 investment securities loss - A new risk factor was added regarding the tax treatment of the estimated **$604.0 million** after-tax loss from the sale of investment securities in Q3 2025, with the company expecting ordinary treatment for the losses, but an adverse IRS determination could have a material negative impact[367](index=367&type=chunk)[368](index=368&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=81&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company has an active stock repurchase program, though no shares were repurchased during Q2 2025 - The company has a stock repurchase program authorizing up to **$175.0 million** in share buybacks, which is effective until January 31, 2026[369](index=369&type=chunk) - No shares were repurchased during the three months ended June 30, 2025[370](index=370&type=chunk) [Other Information](index=81&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated trading arrangements during Q2 2025 - No directors or officers adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the second quarter of 2025[371](index=371&type=chunk) [Exhibits](index=82&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate documents and certifications [Signatures](index=83&type=section&id=Signatures) The report is duly signed and authorized by the company's key executives as of August 5, 2025

Group 1 - The company expresses gratitude to George for his leadership over a decade, highlighting his role in the geographic transformation and unprecedented growth during challenging times [1] - The board has implemented a deliberate succession planning process, resulting in a capable executive leadership team ready for future challenges [1] - Brogdon, who has been with the company since 2021 and served as President since January 2023, is well-prepared to take over as CEO, with a strong background in investment banking and finance [1][2] Group 2 - Simmons First National Corporation has a long history of paying cash dividends for 116 consecutive years and operates over 220 branches across multiple states [3] - The company has received several accolades, including recognition as one of America's Greatest Workplaces 2025 and one of America's Best Regional Banks 2025 [3] - Simmons Bank emphasizes its commitment to building value for customers, communities, and shareholders with integrity and passion [3]

Core Points - The Simmons Bank Championship presented by Stephens is a PGA TOUR Champions playoff event taking place from October 20-26, 2025, at Pleasant Valley Country Club in Little Rock, Arkansas, featuring a total prize purse of $2.3 million [1][10] - The tournament will include the top 54 players in the standings competing for a chance to qualify for the final event of the season [1][10] Ticket Options - General admission tickets are available for $30 for single-day access, $35 for a Good Any One Day ticket, and $85 for a weekend pass covering all three days [2] - Children aged 15 and under can enter for free with a ticketed adult [2] - Upgraded hospitality options include a 15th green shared hospitality ticket for $300 per day or $850 for the weekend, offering food and beverage services [2] Exclusive Hospitality Packages - Parker Lexus Lounge tickets are priced at $5,000 for a 4-pack weekend ticket, including VIP parking and access to premium food and beverages [3] - The 16th Green Cabanas are available for $18,000 for a 12-person weekend ticket, providing an upscale hospitality experience with all-inclusive services [4] - The Arkansas Champions Club VIP pass includes exclusive access to the clubhouse, premium food and beverages, and post-play entertainment [5] Military Discounts - Active, reserve, and retired military personnel can receive two complimentary Good Any Day tickets and purchase additional discounted tickets [6] Corporate Opportunities - Corporate sponsorships, hospitality packages, and Pro-Am golf experience positions are available for purchase [7]

Core Viewpoint - Simmons First National Corporation has announced a public offering of 16,220,000 shares of its Class A common stock at a price of $18.50 per share, totaling approximately $300 million [1][2]. Group 1: Offering Details - The public offering is priced at $18.50 per share, with an aggregate offering amount of $300,070,000 [1]. - The company has granted underwriters a 30-day option to purchase an additional 2,433,000 shares at the public offering price [1]. - The offering is expected to close on or about July 23, 2025, subject to customary conditions [3]. Group 2: Use of Proceeds - The net proceeds from the offering will be used for general corporate purposes, which may include investments in Simmons Bank to support potential balance sheet repositioning and continued growth [2]. Group 3: Company Background - Simmons First National Corporation is a financial holding company based in the Mid-South, with a history of paying cash dividends for 116 consecutive years [6]. - Its principal subsidiary, Simmons Bank, operates over 220 branches across several states, including Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas [6]. - Simmons Bank has received multiple recognitions, including being named one of America's Best Regional Banks 2025 by Newsweek [6].

Core Insights - Simmons First National reported non-GAAP earnings per share of $0.44, exceeding analyst expectations of $0.39, while revenue was $214.2 million, slightly below the consensus forecast of $216.66 million [1][2] - The quarter demonstrated progress in profitability, margin expansion, and efficiency, despite a slow growth pace and rising credit costs [1] Financial Performance - Non-GAAP EPS increased by 33.3% year-over-year from $0.33 in Q2 2024 [2] - Revenue grew by 8.6% compared to Q2 2024, up from $197.2 million [2] - Net interest income rose by 11.6% year-over-year to $171.8 million [2] - Noninterest expense decreased slightly by 0.6% year-over-year to $138.6 million [2] - The net charge-off ratio increased to 0.25%, up from 0.19% in Q2 2024 [2] - Return on average tangible common equity (non-GAAP) improved to 10.97%, up from 8.89% in Q2 2024 [2] Operational Highlights - The net interest margin reached 3.06%, marking the fifth consecutive quarter of growth [6] - Cost of deposits decreased to 2.36%, down from 2.79% in Q2 2024 [6] - Noninterest income fell by about 2% year-over-year, primarily due to lower fee income from interest rate swaps [7] - Loan balances remained stable at $17.1 billion, with growth in commercial and industrial loans [8] - The deposit base held steady at $21.8 billion, with an increase in brokered deposits [9] Asset Quality and Capital Management - Nonperforming loans rose to $157.2 million from $103.4 million in Q2 2024, affecting the nonperforming loan coverage ratio [10] - The common equity tier 1 (CET1) ratio improved to 12.36%, above regulatory requirements [11] - Tangible book value per share increased to $16.97, with no share repurchases during the period [11] Strategic Focus - The company is focused on maintaining asset quality, strong capital ratios, cost control, and organic growth [4] - Management highlighted a strong loan pipeline of $1.6 billion, with $564 million close to funding [13] - The company aims to manage deposit competition and increase low-cost deposits [13][14]

Financial Data and Key Metrics Changes - The company continues to see positive trends in net interest income (NII) and expenses, indicating a favorable financial outlook moving forward [10][12] - The net interest margin (NIM) has exceeded the 3% level ahead of schedule, with expectations for continued expansion [12][20] Business Line Data and Key Metrics Changes - The loan portfolio is approximately 46% fixed rate, down from 48.5% in the previous quarter, indicating a shift towards variable rate loans [17] - The company has seen strong production in variable loans, with 75% of new production being variable this quarter, compared to 80% in the previous quarter [18] Market Data and Key Metrics Changes - The company is experiencing elevated payoffs, particularly in the construction sector, but does not anticipate significant changes in the paydown environment for the second half of the year [21][26] - The pipeline for loans remains strong, with a notable increase in commercial and industrial (C&I) loans, suggesting a positive outlook for future growth [37] Company Strategy and Development Direction - The company is focused on maintaining expense discipline while making significant investments in talent and technology to enhance operational capacity [30][31] - There is an emphasis on talent acquisition and retention, with the company positioning itself as a desirable destination for talent amid industry disruptions [32][33] Management's Comments on Operating Environment and Future Outlook - Management expresses confidence in the ability to execute on performance targets, with ongoing trends in business performance exceeding internal expectations [10][11] - The competitive landscape for loan pricing is acknowledged, with a commitment to maintaining pricing discipline despite market pressures [13][14] Other Important Information - The company has a continuous improvement mindset regarding expense management, indicating ongoing efforts to enhance operational efficiency [29] - The management team is optimistic about profitability improvements in the second half of the year, supported by strong employee engagement [43][44] Q&A Session Summary Question: Changes in guidance for the second half of 2025 - Management notes that guidance is typically provided in January, but current trends are positive and align with internal expectations [9][10] Question: Outlook on NIM and deposit costs - Management indicates that while there are opportunities for NIM expansion, the repricing dynamic for deposits is becoming less compelling [12][15] Question: Expectations for loan payoffs in the second half of the year - Management expects payoffs to remain consistent with the first half of the year, without significant changes anticipated [21] Question: Dynamics of the loan pipeline - Management attributes a modest decrease in the pipeline to a pull forward of opportunities in the first quarter and normal seasonal trends [25][26] Question: Hiring environment and talent acquisition - Management reports a favorable hiring environment and emphasizes ongoing investments in talent and technology to support business growth [31][32]

Financial Data and Key Metrics Changes - The company continues to be pleased with ongoing trends in business performance, with an acceleration in performance improvement exceeding internal expectations [7] - The net interest margin (NIM) has surpassed the 3% level ahead of schedule, indicating potential for further expansion [9] - The company is experiencing a remixing of deposits from higher-cost to lower-cost deposits, which is positively impacting financial performance [11] Business Line Data and Key Metrics Changes - The loan pipeline and production remain strong, although there are headwinds from elevated paydowns and market financing [10] - Fixed-rate loans, which make up about 46% of the total loan book, continue to reprice at a consistent spread, contributing positively to loan yields [14] - The company has shifted towards a higher percentage of variable production, which is expected to provide a positive tailwind for future performance [15] Market Data and Key Metrics Changes - The company is seeing a competitive market for loan pricing, which is affecting overall loan growth [10] - There is a noted seasonality in the agricultural sector, which impacts pipeline trends [24] Company Strategy and Development Direction - The company is focused on continuous improvement in expense discipline while making significant investments in talent and technology [26][28] - The hiring environment is favorable, with the company actively pursuing talent acquisition amidst competitive market conditions [29] Management's Comments on Operating Environment and Future Outlook - Management expresses confidence in executing business strategies and achieving performance targets, despite uncertainties in the economic environment [8] - The outlook for paydowns is expected to remain consistent with the first half of the year, with no significant changes anticipated [18] Other Important Information - The company emphasizes the importance of employee engagement and the need to provide resources for team success [41] - Management is optimistic about profitability improvement going into the second half of the year [42] Q&A Session Summary Question: Changes in guidance for 2025 - Management noted that guidance is typically provided in January, and while there are uncertainties, they remain confident in business trends [6][7] Question: Loan growth expectations and pipeline dynamics - Management indicated that the loan pipeline remains strong, with a shift towards commercial and industrial (C&I) relationships contributing to future growth [34] Question: Credit quality and classified loans - Management reported stable credit quality metrics, with no significant concerns regarding classified loans or past dues [36]

Financial Performance - Adjusted net income reached $56.1 million, with adjusted diluted EPS at $0.44[11] - Net interest margin surpassed 3%, reaching 3.06%, an increase of 11 bps linked quarter and 37 bps year-over-year[11] - Total revenue exceeded $214 million, while adjusted PPNR totaled $77.3 million[11] Balance Sheet - Total assets amounted to $26.7 billion[3] - Total deposits stood at $21.8 billion[3] - Total loans reached $17.1 billion[3] Credit Quality - The ACL ratio remained at 1.48%, consistent with 1Q25 levels[11] - Net charge-offs were reported at 25 bps in 2Q25[11] Capital Ratios - Total RBC Ratio was 14.4%[3] - TCE Ratio was 8.5%[3]

Group 1 - Simmons First National (SFNC) reported revenue of $214.18 million for the quarter ended June 2025, reflecting an 8.6% increase year-over-year [1] - Earnings per share (EPS) for the quarter was $0.44, up from $0.33 in the same quarter last year, with a surprise of +10% over the consensus estimate of $0.40 [1] - The reported revenue exceeded the Zacks Consensus Estimate of $213.4 million by +0.37% [1] Group 2 - Total nonperforming assets amounted to $166.72 million, slightly below the average estimate of $167.23 million from two analysts [4] - The efficiency ratio was reported at 62.8%, better than the average estimate of 63% [4] - Net interest margin stood at 3.1%, surpassing the average estimate of 3% [4] Group 3 - Total interest-earning assets (FTE) averaged $23.33 billion, slightly below the average estimate of $23.37 billion [4] - Net interest income (FTE) was reported at $178.25 million, exceeding the average estimate of $175.27 million [4] - Total non-interest income was $42.35 million, below the average estimate of $44.73 million [4] Group 4 - Shares of Simmons First National have returned +7.1% over the past month, outperforming the Zacks S&P 500 composite's +4.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]