[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]

[CEO Commentary](index=1&type=section&id=CEO%20Commentary) The CEO highlighted strong Q2 2025 results, driven by a fifth consecutive quarter of net interest margin expansion and disciplined expense management - Net interest margin increased for the **fifth consecutive quarter**, surpassing the **3% mark**[3](index=3&type=chunk) - Loan yields increased while deposit costs declined for the **third consecutive quarter**[3](index=3&type=chunk) - Low-cost customer deposits saw a significant increase of **$233.1 million**, coupled with growth in the C&I loan portfolio[3](index=3&type=chunk) - The company continues to focus on organic growth, encouraged by positive momentum heading into the second half of 2025[4](index=4&type=chunk) [Financial Performance](index=1&type=section&id=Financial%20Performance) The company reported strong profitability growth in Q2 2025, driven by increased net interest income and disciplined cost control [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Simmons reported net income of $54.8 million and adjusted net income of $56.1 million in Q2 2025, with net interest margin expanding to 3.06% Q2 2025 Key Financial Metrics | FINANCIAL HIGHLIGHTS (in millions) | 2Q25 | 1Q25 | 2Q24 | | :--- | :--- | :--- | :--- | | Net income | $ 54.8 | $ 32.4 | $ 40.8 | | Adjusted net income¹ | $ 56.1 | $ 33.1 | $ 41.9 | | Total revenue | $ 214.2 | $ 209.6 | $ 197.2 | | Pre-provision net revenue¹ (PPNR) | $ 75.6 | $ 65.0 | $ 57.9 | | **PER SHARE DATA** | | | | | Diluted earnings | $ 0.43 | $ 0.26 | $ 0.32 | | Adjusted diluted earnings¹ | $ 0.44 | $ 0.26 | $ 0.33 | | **ASSET QUALITY** | | | | | Net charge-off ratio (NCO ratio) | 0.25% | 0.23% | 0.19% | | **OTHER DATA** | | | | | Net interest margin (FTE) | 3.06% | 2.95% | 2.69% | | Loan yield (FTE) | 6.26% | 6.20% | 6.39% | | Cost of deposits | 2.36% | 2.44% | 2.79% | [Net Income](index=2&type=section&id=Net%20Income) Net income for Q2 2025 significantly increased to $54.8 million, with adjusted earnings reaching $56.1 million Net Income and EPS (GAAP vs. Adjusted) | $ in millions, except per share data | 2Q25 | 1Q25 | 2Q24 | | :--- | :--- | :--- | :--- | | **Net income** | **$54.8** | **$32.4** | **$40.8** | | Total impact of certain items | 1.3 | 0.7 | 1.1 | | **Adjusted earnings¹** | **$56.1** | **$33.1** | **$41.9** | | **Diluted EPS** | **$0.43** | **$0.26** | **$0.32** | | Total impact on EPS | 0.01 | — | 0.01 | | **Adjusted Diluted EPS¹** | **$0.44** | **$0.26** | **$0.33** | [Net Interest Income](index=2&type=section&id=Net%20Interest%20Income) Net interest income rose to $171.8 million in Q2 2025, driven by the fifth consecutive quarter of NIM expansion to 3.06% - NII totaled **$171.8 million**, an increase of **$8.4 million (5%)** quarter-over-quarter and **$17.9 million (12%)** year-over-year[9](index=9&type=chunk) - Net interest margin (FTE) expanded for the **fifth consecutive quarter**, increasing **11 basis points** quarter-over-quarter to **3.06%**[10](index=10&type=chunk) Select Yield/Rates Trend | | 2Q25 | 1Q25 | 2Q24 | | :--- | :--- | :--- | :--- | | Loan yield (FTE) | 6.26% | 6.20% | 6.39% | | Cost of deposits | 2.36% | 2.44% | 2.79% | | Net interest spread (FTE) | 2.41% | 2.30% | 1.92% | | Net interest margin (FTE) | 3.06% | 2.95% | 2.69% | [Noninterest Income](index=3&type=section&id=Noninterest%20Income) Noninterest income decreased to $42.4 million in Q2 2025, primarily due to lower swap fee income and an SBIC valuation adjustment - The decrease in noninterest income from Q1 2025 was mainly due to lower swap fee income from a large transaction in the prior quarter and an SBIC valuation adjustment[12](index=12&type=chunk) Noninterest Income Components | $ in millions | 2Q25 | 1Q25 | 2Q24 | | :--- | :--- | :--- | :--- | | Service charges on deposit accounts | $12.6 | $12.6 | $12.3 | | Wealth management fees | 9.5 | 9.6 | 9.2 | | Debit and credit card fees | 8.6 | 8.4 | 8.2 | | Other income | 4.8 | 8.0 | 6.4 | | **Total noninterest income** | **$42.4** | **$46.2** | **$43.3** | [Noninterest Expense](index=3&type=section&id=Noninterest%20Expense) Adjusted noninterest expense decreased to $136.8 million in Q2 2025, improving the adjusted efficiency ratio to 60.52% - Adjusted noninterest expense decreased to **$136.8 million** in Q2 2025 from **$143.6 million** in Q1 2025[14](index=14&type=chunk) - The linked-quarter decrease was primarily due to lower salaries and benefits (seasonal payroll tax decline) and the absence of a **$4.3 million** fraud-related charge from Q1 2025[14](index=14&type=chunk) Efficiency Ratio Trend | | 2Q25 | 1Q25 | 2Q24 | | :--- | :--- | :--- | :--- | | Efficiency ratio | 62.82% | 66.94% | 68.38% | | Adjusted efficiency ratio¹ | 60.52% | 64.75% | 65.68% | [Balance Sheet Analysis](index=4&type=section&id=Balance%20Sheet%20Analysis) As of Q2 2025, the company's balance sheet showed stability with total assets at $26.7 billion, stable loans, and increased deposits [Loans and Unfunded Loan Commitments](index=4&type=section&id=Loans%20and%20Unfunded%20Loan%20Commitments) Total loans remained stable at $17.1 billion in Q2 2025, with broad-based growth in commercial, agricultural, and consumer portfolios - Total loans were **$17.1 billion**, showing broad-based growth in commercial, agricultural, and consumer portfolios[17](index=17&type=chunk) - The commercial loan pipeline totaled **$1.6 billion**, with **$564 million** in ready-to-close loans at a weighted average rate of **7.35%**[17](index=17&type=chunk) [Deposits and Other Borrowings](index=4&type=section&id=Deposits%20and%20Other%20Borrowings) Total deposits increased to $21.8 billion in Q2 2025, driven by a rise in low-cost customer deposits and brokered funds, allowing for reduced borrowings - Low-cost customer deposits (noninterest bearing and interest bearing transaction accounts) increased by **$233 million** quarter-over-quarter[19](index=19&type=chunk) - Other borrowings decreased from **$1.3 billion** in Q1 2025 to **$1.0 billion** in Q2 2025, mainly due to a decrease in FHLB advances[19](index=19&type=chunk) Deposit Composition ($ in millions) | | 2Q25 | 1Q25 | 2Q24 | | :--- | :--- | :--- | :--- | | Noninterest bearing deposits | $ 4,468 | $ 4,455 | $ 4,624 | | Interest bearing transaction accounts | 10,532 | 10,621 | 10,092 | | Time deposits | 3,588 | 3,695 | 4,185 | | Brokered deposits | 3,237 | 2,914 | 2,940 | | **Total deposits** | **$21,825** | **$21,684** | **$21,841** | [Asset Quality](index=4&type=section&id=Asset%20Quality) Asset quality metrics remained stable in Q2 2025, with a net charge-off ratio of 0.25% and a decreased provision for credit losses - The net charge-off ratio was **0.25%** in Q2 2025, compared to **0.23%** in Q1 2025[21](index=21&type=chunk) - The provision for credit losses on loans decreased to **$11.9 million** in Q2 2025 from **$26.8 million** in Q1 2025, primarily due to a **$15.6 million** incremental provision for two specific credit relationships recorded in the first quarter[23](index=23&type=chunk) Key Asset Quality Metrics | | 2Q25 | 1Q25 | 2Q24 | | :--- | :--- | :--- | :--- | | Allowance for credit losses on loans to total loans | 1.48% | 1.48% | 1.34% | | Nonperforming loans to total loans | 0.92% | 0.89% | 0.60% | | Net charge-off ratio (annualized) | 0.25% | 0.23% | 0.19% | | Total nonperforming assets to total assets | 0.62% | 0.61% | 0.39% | [Capital Management](index=5&type=section&id=Capital%20Management) The company's capital position strengthened in Q2 2025, with all regulatory capital ratios remaining well above 'well-capitalized' guidelines [Capital Ratios](index=5&type=section&id=Capital%20Ratios) Total stockholders' equity increased to $3.5 billion, with the TCE ratio improving to 8.5% and CET1 ratio to 12.4% - Book value per share was **$28.17**, and tangible book value per share was **$16.97**, both increasing from Q1 2025[25](index=25&type=chunk) Select Capital Ratios | | 2Q25 | 1Q25 | 2Q24 | | :--- | :--- | :--- | :--- | | Stockholders' equity to total assets | 13.3% | 13.2% | 12.6% | | Tangible common equity to tangible assets¹ | 8.5% | 8.3% | 7.8% | | Common equity tier 1 (CET1) ratio | 12.4% | 12.2% | 12.0% | | Total risk-based capital ratio | 14.4% | 14.6% | 14.2% | [Share Repurchase Program](index=5&type=section&id=Share%20Repurchase%20Program) Simmons did not repurchase any shares in Q2 2025, with approximately $175 million remaining authorized under the 2024 program - No shares were repurchased in Q2 2025[28](index=28&type=chunk) - Approximately **$175 million** remains authorized for repurchase under the 2024 Program[28](index=28&type=chunk) [Supplementary Information](index=6&type=section&id=Supplementary%20Information) This section provides details for the investor conference call, an overview of the company, and important legal disclaimers regarding non-GAAP measures and forward-looking statements [Conference Call Information](index=6&type=section&id=Conference%20Call%20Information) Management will host a live conference call on Friday, July 18, 2025, at 7:30 a.m. Central Time to discuss Q2 2025 results - A conference call is scheduled for **7:30 a.m. Central Time** on Friday, July 18, 2025[30](index=30&type=chunk) [About Simmons First National Corporation](index=6&type=section&id=About%20Simmons%20First%20National%20Corporation) Simmons First National Corporation is a Mid-South financial holding company with a 116-year history of consecutive cash dividends and over 220 branches - The company has paid cash dividends to shareholders for **116 consecutive years**[31](index=31&type=chunk) - Simmons Bank operates more than **220 branches** in Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas[31](index=31&type=chunk) [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) The report uses non-GAAP financial measures to provide a clearer understanding of the company's ongoing operational performance by excluding certain non-core items - The report uses non-GAAP measures to exclude items such as merger-related expenses, branch right-sizing initiatives, early retirement programs, and FDIC special assessments[32](index=32&type=chunk) - Management believes these non-GAAP measures provide useful supplemental information for understanding the operating results of the Company's ongoing businesses[33](index=33&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This section contains a standard safe harbor statement, cautioning that forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially - Forward-looking statements regarding future growth, profitability, and dividends are subject to various risks and uncertainties[34](index=34&type=chunk)[35](index=35&type=chunk) - Factors that could cause actual results to differ include changes in economic conditions, interest rates, credit quality, and geopolitical conflicts[35](index=35&type=chunk) [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) This section presents detailed, unaudited consolidated financial statements for Q2 2025, including balance sheets, income statements, and various portfolio analyses [Consolidated End of Period Balance Sheets](index=8&type=section&id=Consolidated%20End%20of%20Period%20Balance%20Sheets) As of June 30, 2025, total assets were $26.69 billion, with stable loans at $17.11 billion and increased total deposits of $21.82 billion Consolidated Balance Sheet Highlights | | Jun 30, 2025 ($ in thousands) | Mar 31, 2025 ($ in thousands) | Jun 30, 2024 ($ in thousands) | | :--- | :--- | :--- | :--- | | Total assets | $26,693,620 | $26,792,991 | $27,369,072 | | Net loans | 16,857,559 | 16,841,910 | 16,962,048 | | Total deposits | 21,824,990 | 21,684,620 | 21,840,883 | | Total stockholders' equity | 3,549,210 | 3,531,485 | 3,458,869 | [Consolidated Statements of Income](index=9&type=section&id=Consolidated%20Statements%20of%20Income) For Q2 2025, net interest income was $171.8 million, leading to a net income of $54.8 million, or $0.43 per diluted share Consolidated Income Statement Highlights | | Jun 30, 2025 ($ in thousands) | Mar 31, 2025 ($ in thousands) | Jun 30, 2024 ($ in thousands) | | :--- | :--- | :--- | :--- | | NET INTEREST INCOME | $171,824 | $163,422 | $153,905 | | PROVISION FOR CREDIT LOSSES | 11,945 | 26,797 | 11,099 | | TOTAL NONINTEREST INCOME | 42,354 | 46,155 | 43,299 | | TOTAL NONINTEREST EXPENSE | 138,589 | 144,580 | 139,354 | | NET INCOME | $54,773 | $32,388 | $40,763 | [Consolidated Risk-Based Capital](index=10&type=section&id=Consolidated%20Risk-Based%20Capital) At the end of Q2 2025, the company maintained a strong capital position with a total risk-based capital ratio of 14.42% and a CET1 ratio of 12.36% Risk-Based Capital Ratios | | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2024 | | :--- | :--- | :--- | :--- | | Common equity Tier 1 ratio (CET1) | 12.36% | 12.21% | 12.00% | | Tier 1 leverage ratio | 9.96% | 9.83% | 9.49% | | Total risk-based capital ratio | 14.42% | 14.59% | 14.17% | [Consolidated Investment Securities](index=11&type=section&id=Consolidated%20Investment%20Securities) Total investment securities were $6.0 billion as of June 30, 2025, comprising held-to-maturity and available-for-sale portfolios Investment Securities Portfolio | | Jun 30, 2025 ($ in thousands) | Mar 31, 2025 ($ in thousands) | | :--- | :--- | :--- | | Total held-to-maturity | $3,591,531 | $3,615,556 | | Total available-for-sale | 2,405,320 | 2,491,849 | | **Total investment securities** | **$5,996,851** | **$6,107,405** | [Consolidated Loans](index=12&type=section&id=Consolidated%20Loans) The total loan portfolio stood at $17.11 billion at the end of Q2 2025, primarily composed of real estate loans Loan Portfolio Composition | | Jun 30, 2025 ($ in thousands) | Mar 31, 2025 ($ in thousands) | | :--- | :--- | :--- | | Total consumer | $ 299,997 | $ 276,878 | | Total real estate | 13,371,707 | 13,477,000 | | Total commercial | 2,773,585 | 2,637,150 | | Other | 665,807 | 703,050 | | **Total loans** | **$17,111,096** | **$17,094,078** | [Consolidated Allowance and Asset Quality](index=13&type=section&id=Consolidated%20Allowance%20and%20Asset%20Quality) The allowance for credit losses on loans was $253.5 million, representing 1.48% of total loans and 161% coverage of nonperforming loans Allowance and Asset Quality Data | | Jun 30, 2025 ($ in thousands) | Mar 31, 2025 ($ in thousands) | | :--- | :--- | :--- | | Allowance for credit losses on loans | $253,537 | $252,168 | | Net loans charged off | 10,576 | 9,648 | | Total nonperforming loans | 157,162 | 152,391 | | Total nonperforming assets | $166,715 | $162,345 | [Average Balance Sheet and Net Interest Income Analysis](index=14&type=section&id=Average%20Balance%20Sheet%20and%20Net%20Interest%20Income%20Analysis) For Q2 2025, the average balance of total interest-earning assets was $23.3 billion, with an improved net interest margin (FTE) of 3.06% Net Interest Margin Analysis (FTE) | | Three Months Ended Jun 2025 | Three Months Ended Mar 2025 | Three Months Ended Jun 2024 | | :--- | :--- | :--- | :--- | | Total interest earning assets (Average Balance, $ in thousands) | $23,327,635 | $23,317,842 | $23,959,417 | | Net interest income (FTE, $ in thousands) | $178,246 | $169,836 | $160,481 | | Net interest spread (FTE) | 2.41% | 2.30% | 1.92% | | Net interest margin (FTE) | 3.06% | 2.95% | 2.69% | [Selected Financial Data](index=15&type=section&id=Selected%20Financial%20Data) This table summarizes key performance indicators for Q2 2025, including diluted EPS, return on assets, and book value per share on both reported and adjusted bases Key Performance Indicators (Q2 2025) | | As Reported | Adjusted (non-GAAP) | | :--- | :--- | :--- | | Diluted earnings per share | $0.43 | $0.44 | | Return on average assets | 0.82% | 0.84% | | Return on average common equity | 6.20% | 6.34% | | Return on tangible common equity | 10.73% | 10.97% | | Efficiency ratio | 62.82% | 60.52% | | **End of Period** | | | | Book value per share | $28.17 | - | | Tangible book value per share | $16.97 | - | [Reconciliation of Non-GAAP Financial Measures](index=16&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations of GAAP financial measures to their non-GAAP counterparts, used by management for performance analysis [Reconciliation of Adjusted Earnings](index=16&type=section&id=Reconciliation%20of%20Adjusted%20Earnings) These tables detail adjustments to GAAP net income to derive non-GAAP adjusted earnings, which reached $56.1 million in Q2 2025 Reconciliation of Net Income to Adjusted Earnings (Q2 2025) | ($ in thousands) | Amount | | :--- | :--- | | Net income (GAAP) | $ 54,773 | | Early retirement program | 1,594 | | Branch right sizing (net) | 163 | | Tax effect of certain items | (459) | | **Adjusted earnings (non-GAAP)** | **$ 56,071** | [Reconciliation of Tangible Common Equity and Other Ratios](index=18&type=section&id=Reconciliation%20of%20Tangible%20Common%20Equity%20and%20Other%20Ratios) This section reconciles total stockholders' equity to tangible common stockholders' equity, resulting in a tangible book value per share of $16.98 as of June 30, 2025 Reconciliation of Tangible Book Value per Share (Jun 30, 2025) | ($ in thousands, except per share data) | Amount | | :--- | :--- | | Total common stockholders' equity | $ 3,549,210 | | Less: Total intangibles | (1,411,416) | | **Tangible common stockholders' equity** | **$ 2,137,794** | | Shares of common stock outstanding | 125,926,248 | | **Tangible book value per common share** | **$ 16.98** | [Reconciliation of Performance Metrics](index=19&type=section&id=Reconciliation%20of%20Performance%20Metrics) These tables reconcile various performance metrics to their adjusted non-GAAP versions, including PPNR and the efficiency ratio Reconciliation of PPNR (Q2 2025) | ($ in thousands) | Amount | | :--- | :--- | | Pre-Provision Net Revenue (PPNR) | $ 75,589 | | Plus: Early retirement program costs | 1,594 | | Plus: Branch right sizing costs (net) | 163 | | **Adjusted Pre-Provision Net Revenue** | **$ 77,346** | Reconciliation of Efficiency Ratio (Q2 2025) | | Numerator ($ in thousands) | Denominator ($ in thousands) | Ratio | | :--- | :--- | :--- | :--- | | **Efficiency Ratio (GAAP)** | **$ 138,589** | **$ 220,600** | **62.82%** | | Adjustments | (5,071) | — | | | **Adjusted Efficiency Ratio (non-GAAP)** | **$ 133,518** | **$ 220,600** | **60.52%** |