PINE BLUFF, Ark., June 17, 2024 /PRNewswire/ -- Simmons Bank was recently recognized by U.S. News & World Report, the global authority in rankings and consumer advice, as one of the 2024-2025 Best Companies to Work For in the South. The U.S. News Best Companies Ratings are calculated through how well companies support their employees with metrics including quality of pay and benefits, work-life balance, professional development, job and company stability, and physical and psychological comfort. This year, t ...

Core Points - Simmons Bank has opened a new financial center in Shelby County, Memphis, to enhance its service offerings and meet customer needs [1][2] - The new facility spans 2,133 square feet and includes a full-service branch with ATM capabilities, providing personal, commercial, mortgage lending, and wealth management services [2] - Simmons Bank is a subsidiary of Simmons First National Corporation, which has a long history of paying cash dividends for 115 consecutive years and operates 233 branches across multiple states [4] Company Overview - Simmons Bank ranks as the 9th largest bank in Tennessee based on deposit market share and operates five full-service branches in Memphis [1] - The bank has been recognized by Forbes as one of "America's Best Midsize Employers" and among the "World's Best Banks" for four consecutive years [4] - Founded in 1903, Simmons Bank emphasizes a client-centric approach in delivering comprehensive financial solutions [4]

Launched in 2021, the MBEP is a 12-week technical assistance and funding readiness program for minority entrepreneurs in central Arkansas. The program's curriculum is led by industry experts in both group learning and one-on-one sessions, and centers around seven key business disciplines, including sales and operations, financial management and accounting, human resources, marketing and communications, management and leadership, business growth strategies, and digital technology integration. Upon completing ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 SIMMONS FIRST NATIONAL CORPORATION (Exact name of registrant as specified in its charter) Arkansas 71-0407808 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 501 Main Street 71601 Pine Bluff (Zip Code) Arkansas (Address of principal executive offices) For the quarterly period ...

❑ ~$130 million of projected securities principal maturities per quarter3 Cash & Cash Equivalents Variable Rate Securities 0.65% 1.41% 2.10% 2.57% 3.06%3.31% 3.48% 0.47% 1.02% 1.58% 1.96% 2.37% 2.58% 2.75% 2.20% 3.65% 4.52% 4.99% 5.26% 5.33% 5.33% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 Interest Bearing Deposits Cost of Deposits Avg Fed Funds Rate 50% deposit beta during this cycle3 | --- | --- | --- | --- | --- | |---------------------|------------------------|-------------|--------------------------- ...

Financial Data and Key Metrics Changes - The company reported loan growth above forecast, primarily driven by construction fundings, with expectations for continued growth in the low single-digit range for the year [11][12][15] - The net interest margin (NIM) is expected to remain range-bound in the first half of the year, with a gradual expansion anticipated in the second half [15][20] - Operating expenses are projected to be around 2% of average assets moving forward, with a long-term goal to improve the efficiency ratio [33] Business Line Data and Key Metrics Changes - Loan growth was notably strong in the construction sector, with a disciplined approach to credit and pricing being emphasized [11][12] - The company has seen success in interest-bearing deposits, particularly in money market and savings accounts, while also managing higher-cost wholesale funding [12][19] Market Data and Key Metrics Changes - The company is experiencing a stable credit environment, with classified loans remaining flat and past due loans decreasing from 24 basis points to 19 basis points [28] - There is a noted increase in the number of customers, although overall account balances are lower due to inflation and a shift towards higher interest rates [19] Company Strategy and Development Direction - The company is focused on maintaining solid principles of asset quality, capital growth, and flexibility in a challenging economic environment [40] - There is an emphasis on self-funding investments across the bank while managing expenses effectively [34] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding loan growth and deposit trends, particularly in light of recent favorable developments in non-interest bearing accounts [18][19] - The company is preparing for a more neutral interest rate environment, which is expected to benefit overall performance [40] Other Important Information - The company did not repurchase any shares in the first quarter, focusing instead on balance sheet optimization and prudent capital allocation [35] Q&A Session Summary Question: What is the outlook for loan growth? - Management indicated that loan growth was strong, particularly in construction, and expects a balanced outlook in the low single-digit range for the year [11][12] Question: How is the company addressing deposit growth? - The company has seen success in interest-bearing deposits and is focused on combating industry trends affecting net interest income [12][19] Question: What are the trends in credit quality? - Classified loans are flat, and past due loans have decreased, indicating a stable credit environment [28] Question: What is the expectation for operating expenses? - Operating expenses are expected to remain around 2% of average assets, with a focus on improving efficiency [33] Question: What is the company's strategy regarding share repurchases? - The company is prioritizing dividends and organic growth, with share repurchases being considered based on market conditions [35]

| FINANCIAL HIGHLIGHTS | 1Q24 | 4Q23 | 1Q23 | 1Q24 Highlights | | --- | --- | --- | --- | --- | | BALANCE SHEET (in millions) | | | | Comparisons reflect 1Q24 vs 4Q23 | | Total loans | $17,002 | $16,846 | $16,555 | • Net income of $38.9 million and | | Total investment securities | 6,735 | 6,878 | 7,521 | | | Total deposits | 22,353 | 22,245 | 22,452 | diluted EPS of $0.31 | | Total assets | 27,372 | 27,346 | 27,583 | • Adjusted earnings 1 of $40.4 million | | Total shareholders' equity | 3,439 | 3,426 | 3, ...

Financial Performance - Net income available to common shareholders for the year ended December 31, 2023, was $175.1 million, or $1.38 diluted earnings per share, compared to $256.4 million, or $2.06 diluted earnings per share for the same period in 2022[214]. - Adjusted earnings for the year ended December 31, 2023, were $207.7 million, or $1.64 adjusted diluted earnings per share, compared to $298.8 million, or $2.40 adjusted diluted earnings per share in 2022[214]. - Included in 2023 results were $32.7 million of certain items, net of tax, primarily related to early retirement program costs, loss on sale of securities, a FDIC special assessment, and branch right sizing initiatives[214]. - Included in 2022 results were $42.4 million of certain items, net of tax, primarily related to acquisitions, Day 2 accounting provision, gain on an insurance settlement, merger-related costs, and branch right sizing initiatives[214]. Assets and Liabilities - Total consolidated assets of Simmons First National Corporation reached $27.3 billion as of December 31, 2023[17]. - Total consolidated loans amounted to $16.8 billion, while total consolidated deposits were $22.2 billion[17]. - The company’s reserve balances were zero as of December 31, 2023, due to the Federal Reserve's reduction of reserve requirements during the COVID-19 pandemic[64]. - Simmons Bank's total investment in the Federal Home Loan Bank of Dallas was $58.2 million as of December 31, 2023[104]. Acquisitions and Growth Strategy - The company has completed 21 whole bank acquisitions since 1990, enhancing its market presence[25]. - The acquisition of Reliance Bancshares in April 2019 added approximately $1.5 billion in assets and 22 branches[35]. - The acquisition of Spirit of Texas Bancshares in April 2022 further strengthened the company's position in Texas with approximately $3.1 billion in assets[38]. - The company aims to capitalize on organic growth opportunities in addition to pursuing strategic mergers and acquisitions[39]. - The company's growth strategy includes acquisitions and de novo branching, which carry inherent risks that could affect market value and profitability[141]. Risk Management and Compliance - The company has a robust risk management framework, including an Asset Quality Review Committee that meets quarterly[44]. - The company is subject to federal and state regulations, requiring approval from the Federal Reserve Board for acquisitions and limiting certain non-banking activities[53][54]. - The company is subject to heightened requirements due to exceeding $10 billion in assets, impacting its operations and compliance obligations[107]. - Future regulatory actions and changes in legislation, such as the Dodd-Frank Act, could adversely affect the company's operations and profitability[159]. Employee and Culture - As of December 31, 2023, the company had approximately 3,007 full-time equivalent associates, with no union representation and no labor disputes reported[52]. - The company is committed to maintaining a strong culture with six Culture Cornerstones, including "Build Loyalty," which was added in 2022 to enhance customer experiences[51]. - The company has implemented various programs for professional development, including mentorship opportunities and tuition reimbursement for higher education[50]. - The company has experienced increasing fraud attempts, including deposit and loan fraud, which pose a material operational risk[147]. Financial Health and Capital Management - The company had approximately $54.4 million available for payment of dividends to the Company without prior regulatory approval as of December 31, 2023[60]. - As of December 31, 2023, Simmons Bank was classified as "well capitalized" with a total risk-based capital ratio of at least 10%, a Tier 1 risk-based capital ratio of at least 8%, and a CET1 risk-based capital ratio of at least 6.5%[79]. - The Company accrued $10.5 million related to a special assessment by the FDIC in the fourth quarter of 2023, based on estimated uninsured deposits as of December 31, 2022[92]. - The ability to pay dividends on common stock is contingent on the subsidiary bank's financial health and regulatory restrictions[170]. Market and Economic Conditions - Changes in interest rates and monetary policy could adversely affect the company's profitability and cash flows[116]. - Continued inflationary pressures could increase operating costs and negatively impact borrowers' ability to repay loans, leading to higher default rates[134]. - Economic downturns could lead to increased credit default swap spreads and lower credit ratings, impacting liquidity and lending practices[131]. - The company is vulnerable to adverse conditions in local markets, particularly in Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas, where most loans are secured[135]. Competition and Industry Challenges - The company faces strong competition from various financial institutions, which could lead to loss of market share and reduced profitability[138]. - Changes in service delivery channels and emerging technologies pose competitive risks, potentially leading to loss of fee income and customer deposits[139]. - The company is heavily reliant on third-party service providers for essential operations, exposing it to risks related to vendor performance and service disruptions[154]. Regulatory Environment - The Economic Growth, Regulatory Reform, and Consumer Protection Act (EGRRCPA) provides regulatory relief to bank holding companies with less than $100 billion in assets, such as the Company[86]. - The Dodd-Frank Act established the Bureau of Consumer Financial Protection (CFPB) to oversee consumer protection regulations applicable to financial institutions[85]. - The company and Simmons Bank are no longer required to conduct annual stress tests under the Dodd-Frank Act due to regulatory reforms[110]. - The CFPB proposed rules in January 2024 that would subject overdraft services provided by financial institutions with more than $10 billion in assets to the Truth in Lending Act[111]. Shareholder Information - The company had approximately $39.9 million of remaining funds available for share repurchases under the 2022 Program as of December 31, 2023[199]. - The 2024 stock repurchase program allows for the repurchase of up to $175.0 million of Class A Common Stock[197]. - The company made no purchases of its common stock during the three months ended December 31, 2023[199]. - The company’s common stock is listed on the Nasdaq Global Select Market under the symbol "SFNC" with approximately 2,379 shareholders of record as of February 23, 2024[194]. Recognition and Awards - Simmons Bank was named to Forbes magazine's 2023 list of "World's Best Banks" for the fourth consecutive year[216]. - The bank was recognized by Forbes as one of "America's Best Midsize Employers" for 2023[216]. - The Better Bank Initiative was completed in 2023, focusing on enhancing operational processes and increasing capacity for organic growth[216]. - The bank achieved $18 million of annualized cost savings, exceeding the original estimate of $15 million[216].

Financial Data and Key Metrics Changes - The net interest margin (NIM) improved by 7 basis points from 2.61% to 2.68% linked quarter, with approximately 1 basis point attributed to a recent trade [84] - Non-interest bearing deposits (NIBs) decreased in the fourth quarter but at a slower pace, indicating a potential stabilization [9] Business Line Data and Key Metrics Changes - The company experienced growth in interest-bearing accounts, particularly in savings and money market accounts, which performed strongly in the fourth quarter [9] - Loan growth was moderated, but the company still saw some expansion in the loan pipeline despite a slowing demand [22][59] Market Data and Key Metrics Changes - The company is modeling three rate cuts for the year, with the third cut expected late in the year, which may not significantly impact 2024 results [20][35] - The company remains cautious about the macroeconomic environment and its impact on loan demand and pricing [76] Company Strategy and Development Direction - The company is focused on balance sheet optimization and maintaining a disciplined approach to underwriting and pricing [22][26] - A stock buyback plan of $175 million has been re-initiated, emphasizing the importance of organic growth and prudent capital management [26][40] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding net interest income and margin expansion, contingent on asset repricing and market conditions [6][76] - The company aims to achieve a return on assets (ROA) of 1.25% to 1.50% in the long term, despite current industry pressures [82] Other Important Information - The company has successfully reduced reliance on wholesale funding through core deposit growth and strategic securities sales [101] - The Better Bank Initiative has led to a reduction in non-interest expenses, with expectations of continued savings in the future [39] Q&A Session Summary Question: What are the expectations for margin trajectory? - Management is optimistic about margin expansion, expecting benefits from asset repricing and balance sheet optimization [5][6] Question: How is the company managing loan growth and pricing? - The company is maintaining discipline in underwriting and pricing, with a focus on profitability despite a slowing demand [22][59] Question: What is the outlook for deposits and funding? - Management noted stable consumer deposits and good growth in commercial deposits, with a focus on reducing wholesale funding reliance [60][101] Question: How does the company view future rate cuts? - The company is modeling three rate cuts for the year, with a conservative approach to forecasting [20][35] Question: What are the expectations for expenses in 2024? - The company anticipates a slight increase in expenses, aiming to hold the line despite inflationary pressures [80] Question: How does the company plan to utilize capital? - Capital will be used for organic growth, stock buybacks, and balance sheet optimization, with a focus on prudent management [81]

Contents 3 Company Profile 4 4Q23 Financial Highlights 12 Deposits, Securities, Liquidity, Interest Rate Sensitivity and Capital 18 Loan Portfolio 22 Credit Quality 26 Appendix Forward-Looking Statements. Certain statements by Simmons First National Corporation (the "Company", which where appropriate includes the Company's wholly-owned banking subsidiary, Simmons Bank) contained in this presentation may not be based on historical facts and should be considered "forward-looking statements" within the meaning ...