GlobeNewswire Inc | Jul 21, 2020 08:30AM EDT

July 21, 2020

PINE BLUFF, Ark., July 21, 2020 (GLOBE NEWSWIRE) -- Simmons First National Corporation (NASDAQ: SFNC) (the Company or Simmons) today announced net income of $58.8 million for the quarter ended June 30, 2020, compared to $55.6 million for the same period in 2019, an increase of $3.2 million, or 5.7%. Diluted earnings per share were $0.54, a decrease of $0.04, or 6.9%, compared to the same period in the prior year. Included in second quarter 2020 results were $3.0 million in net after-tax merger-related, early retirement program and branch right-sizing costs as well as a $1.6 million after-tax gain associated with the sale of branches.

Excluding the impact of these items, core earnings were $60.1 million for the quarter ended June 30, 2020, compared to $65.5 million for the quarter ended June 30, 2019, a decrease of $5.3 million, or 8.1%. Core diluted earnings per share were $0.55, a decrease of $0.13, or 19.1%, from the same period in 2019.

Year-to-date net income for the first half of 2020 was $136.0 million, or $1.22 diluted earnings per share, compared to $103.3 million, or $1.09 diluted earnings per share, for the same period in 2019. Excluding $2.0 million in net after-tax merger-related, early retirement program and branch right-sizing costs and the gains on the sales of branches in south Texas and Colorado, year-to-date core earnings for 2020 were $134.0 million, an increase of $19.5 million compared to the same period last year. Core diluted earnings per share for the first half of 2020 were $1.21, equal to the same period in 2019.

Our associates at Simmons Bank have done an amazing job of adapting to the changes that have occurred over the past four months, said George A. Makris, Jr., chairman and CEO of Simmons First National Corporation. We continue to operate in an uncertain environment, and we will continue to adjust as necessary. We have consolidated various operations to provide capacity for continued service to our customers and communities. Our digital banking options have been very well received by our customers, and we expect to continue to see the trend toward more self-service. We need a sustainable plan for the opening of the economy, including public education across the country. We remain optimistic we will get one soon.

Selected Highlights: 2^nd Qtr 1^st Qtr 2^nd Qtr 2020 2020 2019Net income $ 58.8 $ 77.2 $ 55.6 million million millionDiluted earnings per share $ 0.54 $ 0.68 $ 0.58 Return on avg assets 1.08 % 1.48 % 1.28 %Return on avg common equity 8.21 % 10.83 % 9.48 %Return on tangible common 14.55 % 19.00 % 17.40 %equity ^(1) Core earnings ^(2) $ 60.1 $ 73.8 $ 65.5 million million millionCore diluted earnings per share $ 0.55 $ 0.65 $ 0.68 ^(2)Core return on avg assets ^(2) 1.11 % 1.42 % 1.51 %Core return on avg common 8.40 % 10.35 % 11.16 %equity ^(2)Core return on tangible common 14.87 % 18.19 % 20.36 %equity ^(1)(2)Efficiency ratio ^(3) 49.12 % 56.38 % 49.88 %Pre-tax, pre-provision (PTPP) $ 97.7 $ 84.4 $ 88.8 earnings ^(2) million million million

-- Return on tangible common equity excludes goodwill and other intangible assets and is a non-GAAP measurement. Please see Non-GAAP Financial Measures and Reconciliation of Non-GAAP Financial Measures below. -- Core figures exclude non-core items and are non-GAAP measurements. Please see Non-GAAP Financial Measures and Reconciliation of Non-GAAP Financial Measures below. -- Efficiency ratio is noninterest expense before foreclosed property expense, amortization of intangibles as a percent of net interest income (fully taxable equivalent) and non-interest revenues, excluding gains and losses from securities transactions and non-core items, and is a non-GAAP measurement. Please see Non-GAAP Financial Measures and Reconciliation of Non-GAAP Financial Measures below.

Loans

($ in billions) 2^nd Qtr 2020 1^st Qtr 2020 2^nd Qtr 2019Total loans $ 14.61 $ 14.37 $ 13.13

Total loans were $14.6 billion at June 30, 2020, an increase of $1.5 billion, or 11.3%, compared to June 30, 2019, primarily due to The Landrum Company (Landrum) merger completed during the fourth quarter 2019. On a linked-quarter basis (June 30, 2020 compared to March 31, 2020), total loans increased $232.6 million, or 1.6%. During the second quarter of 2020, the Company had $963.7 million in loan originations under the Paycheck Protection Program (PPP) of the Coronavirus Aid, Relief, and Economic Security (CARES) Act and an increase in agricultural loans of $26.2 million. These increases were partially offset by decreases in energy loan lending, commercial real estate and single-family real estate loan categories of $64.8 million, $149.7 million and $136.5 million, respectively.

Deposits

($ in billions) 2^nd Qtr 2020 1^st Qtr 2020 2^nd Qtr 2019Total deposits $ 16.6 $ 15.6 $ 13.5Non-interest bearing deposits $ 4.6 $ 3.6 $ 2.9Interest bearing deposits $ 9.0 $ 8.8 $ 7.3Time deposits $ 3.0 $ 3.2 $ 3.3

Total deposits were $16.6 billion at June 30, 2020, an increase of $3.1 billion, or 22.9%, since June 30, 2019, primarily due to the Landrum merger. On a linked-quarter basis, total deposits increased $1.1 billion, or 6.8%, primarily due to the $1.0 billion increase in non-interest bearing deposits. This increase was partially offset by a decrease in brokered funds of $308.9 million during the second quarter.

Net Interest Income

2^nd 1^st 4^th 3^rd 2^nd Qtr Qtr Qtr Qtr Qtr 2020 2020 2019 2019 2019Loan yield ^(1) 4.84 % 5.19 % 5.43 % 5.47 % 5.58 %Core loan yield ^(1) (2) 4.52 % 4.86 % 5.00 % 5.19 % 5.26 %Security yield ^(1) 2.50 % 2.63 % 2.73 % 2.87 % 3.06 %Cost of interest bearing 0.59 % 1.03 % 1.22 % 1.40 % 1.37 %depositsCost of deposits ^(3) 0.44 % 0.80 % 0.94 % 1.09 % 1.07 %Cost of borrowed funds 1.84 % 2.06 % 2.30 % 2.52 % 2.50 %Net interest margin ^(1) 3.42 % 3.68 % 3.78 % 3.82 % 3.94 %Core net interest margin ^ 3.18 % 3.42 % 3.44 % 3.59 % 3.67 %(1) (2)

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

The Companys net interest income for the second quarter of 2020 was $163.7 million, an increase of $14.3million, or 9.5%, from the same period of 2019, primarily due to the 78 basis point decline in the cost of interest bearing deposits year over year. Included in interest income was the yield accretion recognized on loans acquired of $11.7 million and $10.2 million for the second quarters of 2020 and 2019, respectively.

The loan yield was 4.84% for the quarter ended June 30, 2020, while the core loan yield, which excludes the accretion, was 4.52% for the same period. The decrease in the loan yield during the second quarter of 2020 was primarily driven by the lower yielding PPP loans originated during the quarter. The PPP loan yield was approximately 2.33% (including accretion of net fees), which decreased the loan yield by approximately 10 basis points.

Net interest margin (FTE) was 3.42% for the quarter ended June 30, 2020, while the core net interest margin, which excludes the accretion, was 3.18% for the same period. The decrease in the net interest margin during the second quarter of 2020 was primarily driven by the additional liquidity and the lower yielding PPP loans, which decreased the net interest margin by approximately 25 basis points.

Non-Interest Income

Non-interest income for the second quarter of 2020 was $50.2 million, an increase of $10.3 million compared to the same period in the previous year. During the second quarter 2020, the Company recognized a $2.2 million gain associated with the sale of the branches recorded in other income, which the Company considers a non-core item.

The increase in non-interest income was primarily due to the increase in mortgage lending income driven by the current low mortgage interest rate environment. The decrease in service charges on deposit accounts was primarily attributable to a lower number of customer transactions, related to the impact of the COVID-19 pandemic.

Selected Non-Interest Income Items 2^nd Qtr 1^st Qtr 4^th Qtr 3^rd Qtr 2^nd Qtr($ in millions) 2020 2020 2019 2019 2019Service charges on deposit $ 8.6 $ 13.3 $ 13.3 $ 10.8 $ 10.6accountsMortgage lending income $ 12.5 $ 5.0 $ 4.0 $ 4.5 $ 3.7SBA lending income $ 0.2 $ 0.3 $ 0.3 $ 1.0 $ 0.9Debit and credit card fees $ 8.0 $ 7.9 $ 8.9 $ 7.1 $ 7.2Gain on sale of securities $ 0.4 $ 32.1 $ 0.4 $ 7.4 $ 2.8Other income $ 9.8 $ 12.8 $ 7.1 $ 44.7 $ 6.1 Core other income^(1) $ 7.6 $ 6.9 $ 7.1 $ 44.7 $ 6.1

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

Non-Interest Expense

Non-interest expense for the second quarter of 2020 was $112.6 million, an increase of $1.9 million compared to the second quarter of 2019. Included in this quarter were $4.0 million of pre-tax non-core items for merger-related, early retirement program and branch right-sizing costs. Excluding these expenses, core non-interest expense was $108.6 million for the second quarter of 2020, an increase of $11.2 million compared to the same period in 2019, primarily the result of the Landrum merger and additional software and technology costs related to the Companys Next Generation Banking (NGB) initiative.

The efficiency ratio for the second quarter of 2020 was 49.12%, compared to 49.88% for the same period in 2019.

Selected Non-Interest Expense Items 2^nd 1^st 4^th 3^rd 2^nd($ in millions) Qtr Qtr Qtr Qtr Qtr 2020 2020 2019 2019 2019Salaries and employee benefits $ 57.6 $ 67.9 $ 63.2 $ 52.1 $ 56.1Merger related costs $ 1.8 $ 1.1 $ 24.8 $ 2.6 $ 7.5Other operating expenses $ 34.7 $ 38.8 $ 38.0 $ 37.9 $ 32.9 Core salaries and employee benefits^ $ 57.2 $ 67.9 $ 63.2 $ 51.9 $ 53.2(1)Core merger related costs^(1) - - - - -Core other operating expenses^(1) $ 33.0 $ 38.6 $ 38.0 $ 37.8 $ 30.0

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

On a linked-quarter basis, salaries and employee benefits decreased by $10.3 million, which included the impact of cost savings from the Landrum merger. The decrease was primarily driven by the following categories:

-- Employee benefits - $3.1 million decrease (payroll taxes, insurance utilization, and other employee benefits) -- Salaries - $2.3 million decrease -- Incentive based plans - $4.9 million decrease (executive, lender and retail incentive plans)

On a linked-quarter basis, other operating expenses decreased $4.1 million. The remaining decrease was primarily related to cost savings from the Landrum merger and lower operating expenses due to the impact of COVID-19.

Early in 2020, the Company offered qualifying associates an early retirement option resulting in $493,000 of non-core expense during the second quarter. The Company expects ongoing net annualized savings of approximately $2.9 million.

Management continuously evaluates the Companys branch network as part of its analysis of the profitability of the Companys operations and the efficiency with which it delivers banking services to its markets. As a result of this ongoing evaluation, the Company closed 11 branch locations during June 2020, with estimated net annual cost savings of approximately $2.4 million related to these locations. In addition, the Company expects to close an additional 23 branch locations and one loan production office during the fourth quarter of 2020, with an expected net annual cost savings of approximately $6.8 million.

Asset Quality

2^nd 1^st 4^th 3^rd 2^nd Qtr Qtr Qtr Qtr Qtr 2020 2020 2019 2019 2019Allowance for credit losses to total 1.59 % 1.69 % 0.47 % 0.51 % 0.49 %loansAllowance for credit losses to 175 % 154 % 74 % 78 % 60 %non-performing loansNon-performing loans to total loans 0.91 % 1.10 % 0.64 % 0.65 % 0.81 %Net charge-off ratio (annualized) 1.04 % 0.07 % 0.09 % 0.59 % 0.11 %Net charge-off ratio YTD (annualized) 0.56 % 0.07 % 0.24 % 0.30 % 0.15 %

At June 30, 2020, the allowance for credit losses was $231.6 million. Provision for credit losses for the second quarter of 2020 was $26.9 million. Included in total loans was $963.7 million of government guaranteed PPP loans. Excluding the PPP loans, the allowance for credit losses to total loans was 1.70%.

Net charge-offs for the second quarter of 2020 were $38.2 million, of which $32.6 million were from loans included in the energy lending portfolios acquired from Bank SNB and Southwest Bank in 2017. Of the second quarter charge-offs, $27.8 million was specifically reserved for and included in the March 31, 2020 allowance for credit loss. Therefore, additional provision related to these charges was not required.

Foreclosed Assets and Other Real Estate Owned

At June 30, 2020, foreclosed assets and other real estate owned were $14.1 million, decreases of $10.7 million, or 43.0%, compared to the same period in 2019 and $6.7 million, or 32.2% from March 31, 2020. The composition of these assets is divided into three types:

2^nd Qtr 1^st Qtr 4^th Qtr 3^rd Qtr 2^nd($ in millions) 2020 2020 2019 2019 Qtr 2019Closed bank branches and branch $ 2.7 $ 8.8 $ 5.7 $ 5.9 $ 6.5sitesForeclosed assets ? acquired $ 9.2 $ 9.2 $ 10.3 $ 10.1 $ 13.3Foreclosed assets ? legacy $ 2.2 $ 2.8 $ 3.1 $ 3.6 $ 5.0

Capital

2^nd 1^st 4^th 3^rd 2^nd Qtr Qtr Qtr Qtr Qtr 2020 2020 2019 2019 2019Stockholders? equity to total assets 13.3 % 13.7 % 14.1 % 14.3 % 13.8 %Tangible common equity to tangible 8.3 % 8.4 % 9.0 % 9.1 % 8.5 %assets^(1)Regulatory common equity tier 1 ratio 11.9 % 11.1 % 10.9 % 10.3 % 9.8 %Regulatory tier 1 leverage ratio 8.8 % 9.0 % 9.6 % 9.1 % 8.9 %Regulatory tier 1 risk-based capital 11.9 % 11.1 % 10.9 % 10.3 % 9.8 %ratioRegulatory total risk-based capital 14.9 % 14.1 % 13.7 % 13.2 % 12.7 %ratio

-- Tangible common equity to tangible assets is a non-GAAP measurement. Please see Non-GAAP Financial Measures and Reconciliation of Non-GAAP Financial Measures below.

At June 30, 2020, common stockholders' equity was $2.9 billion. Book value per share was $26.64 and tangible book value per share was $15.79 at June 30, 2020. The ratio of stockholders equity to total assets was 13.3% at June 30, 2020 while the tangible common equity to tangible assets was 8.3% at June 30, 2020. As of June 30, 2020, PPP loans totaled $963.7 million, which are 100% federally guaranteed and have a zero percent risk-weight for regulatory capital ratios. Excluding PPP loans from total assets, equity to total assets was 13.9%, tangible common equity to tangible assets was 8.7% and the regulatory tier 1 leverage ratio was 9.1%.

No shares have been repurchased under the Companys stock repurchase program since March 31, 2020. Market conditions and the Companys capital needs will drive the decisions regarding additional, future stock repurchases.

Digital Banking

Since the end of February 2020, the Company has added over 38,000 new digital banking users, a 23% increase. More than 78% of deposit transaction accounts are now enrolled in digital banking. For the first time, in March, the Company processed more weekly transactions using the digital channels than at the branches. During May 2020, the Company completed the conversion of all consumer customers to the new online platform. All consumer customers are now on the same online and mobile platforms, including acquired institutions.

COVID-19 Impact

Through June 30, 2020, the Company originated over 7,800 PPP loans with an average balance of $123,000 per loan. Approximately 93% of the PPP loans had a balance less than $350,000.

PPP Loans # of Balanceas of June 30, 2020 Loans ($ in millions)Loan balance less than $350,000 7,286 93 % $ 392.3 41 %Loan balance $350,000 or less than $2 478 6 % $ 355.4 37 %millionLoan balance $2 million to $10 million 62 1 % $ 216.0 22 %Total 7,826 100 % $ 963.7 100 %

In March and in response to the pandemic, the Company announced temporary closure of 52 branches and has been focusing on the enhanced digital banking experience. While the majority of these branches have been reopened, the Company has continued to review its branch network.

Simmons First National Corporation

Simmons First National Corporation is a financial holding company headquartered in Pine Bluff, Arkansas, with total consolidated assets of approximately $21.9 billion as of June 30, 2020, conducting financial operations in Arkansas, Illinois, Kansas, Missouri, Oklahoma, Tennessee and Texas. The Company, through its subsidiaries, offers comprehensive financial solutions delivered with a client-centric approach. The Companys common stock is listed on the NASDAQ Global Select Market under the symbol SFNC.

Conference Call

Management will conduct a live conference call to review this information beginning at 9:00 a.m. CDT today, Tuesday, July 21, 2020. Interested persons can listen to this call by dialingtoll-free 1-866-298-7926 (United States and Canada only) and asking for the Simmons First National Corporation conference call, conference ID9275743. In addition, the call will be available live or in recorded version on the Companys website at www.simmonsbank.com.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles (GAAP). The Companys management uses these non-GAAP financial measures in their analysis of the Companys performance. These measures adjust GAAP performance measures to, among other things, include the tax benefit associated with revenue items that are tax-exempt, as well as exclude from income available to common shareholders certain expenses related to significant non-core activities, including merger-related expenses, gain on sale of branches, early retirement program expenses and branch right-sizing expenses. In addition, the Company also presents certain figures based on tangible common stockholders equity and tangible book value, which exclude goodwill and other intangible assets. The Company further presents certain figures that are exclusive of PPP loans. The Companys management believes that these non-GAAP financial measures are useful to investors because they present the results of the Companys ongoing operations without the effect of mergers or other items not central to the Companys ongoing business, as well as normalizing for tax effects. Management, therefore, believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Companys core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

Forward-Looking Statements

Some of the statements in this news release may not be based on historical facts and should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including, without limitation, statements made in Mr. Makriss quotes, may be identified by reference to future periods or by the use of forward-looking terminology, such as believe, budget, expect, foresee, anticipate, intend, indicate, target, estimate, plan, project, continue, contemplate, positions, prospects, predict, or potential, by future conditional verbs such as will, would, should, could, might or may, or by variations of such words or by similar expressions. These forward-looking statements include, without limitation, statements relating to Simmons future growth, revenue, assets, asset quality, profitability, net interest margin, non-interest revenue, share repurchase program, acquisition strategy, NGB and other digital banking initiatives, the Companys ability to recruit and retain key employees, the benefits associated with the Companys early retirement program and completed and future branch closures, the adequacy of the allowance for credit losses, and the ability of the Company to manage the impact of the COVID-19 pandemic. Any forward-looking statement speaks only as of the date of this news release, and Simmons undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release. By nature, forward-looking statements are based on various assumptions and involve inherent risk and uncertainties. Various factors, including, but not limited to, changes in economic conditions, credit quality, interest rates, loan demand, deposit flows, real estate values, the assumptions used in making the forward-looking statements, the securities markets generally or the price of Simmons common stock specifically, and information technology affecting the financial industry; the effect of steps the Company takes in response to COVID-19, the severity and duration of the pandemic, including whether there is a second wave as a result of the loosening of governmental restrictions, the pace of recovery when the pandemic subsides and the heightened impact it has on many of the risks described herein; the effects of the COVID-19 pandemic on, among other things, the Companys operations, liquidity, and credit quality; general economic and market conditions; unemployment; potential claims, damages, and fines related to litigation or government actions, including litigation or actions arising from the Companys participation in and administration of programs related to the COVID-19 pandemic (including, among other things, the CARES Act); changes in accounting principles relating to loan loss recognition (current expected credit losses, or CECL); the Companys ability to manage and successfully integrate its mergers and acquisitions; cyber threats, attacks or events; reliance on third parties for key services; and other factors, many of which are beyond the control of the Company, could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect the Companys financial results is included in its Form 10-K for the year ended December 31, 2019, which has been filed with, and is available from, the U.S. Securities and Exchange Commission.

FOR MORE INFORMATION CONTACT:Stephen C. MassanelliEVP, Chief Administrative Officer and Investor Relations OfficerSimmons First National Corporationsteve.massanelli@simmonsbank.com

Simmons FirstNational SFNCCorporationConsolidated Endof Period Balance SheetsFor the Quarters Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Ended(Unaudited) 2020 2020 2019 2019 2019 ($ in thousands) ASSETS Cash andnon-interest $ 234,998 $ 244,123 $ 277,208 $ 161,440 $ 145,491 bearing balancesdue from banksInterest bearingbalances due from 2,310,162 1,493,076 719,415 368,530 509,765 banks and federalfunds soldCash and cash 2,545,160 1,737,199 996,623 529,970 655,256 equivalentsInterest bearingbalances due from 4,561 4,309 4,554 5,041 5,041 banks - timeInvestmentsecurities - 51,720 53,968 40,927 42,237 47,455 held-to-maturityInvestmentsecurities - 2,496,896 2,466,640 3,288,343 2,210,931 2,191,573 available-for-saleMortgage loans 120,034 49,984 58,102 50,099 34,999 held for saleOther assets held 399 115,315 260,332 383 397 for saleLoans: Loans 14,606,900 14,374,277 14,425,704 13,003,549 13,128,125 Allowance forcredit losses on (231,643 ) (243,195 ) (68,244 ) (66,590 ) (64,179 )loansNet loans 14,375,257 14,131,082 14,357,460 12,936,959 13,063,946 Premises and 478,896 484,990 492,384 378,678 370,551 equipmentPremises held for 4,576 - - - - saleForeclosed assetsand other real 14,111 20,805 19,121 19,576 24,761 estate ownedInterest 79,772 57,039 62,707 53,966 54,781 receivableBank owned life 256,643 255,197 254,152 234,655 233,345 insuranceGoodwill 1,064,765 1,064,978 1,055,520 926,648 926,450 Other intangible 117,823 121,673 127,340 101,149 104,096 assetsOther assets 293,071 278,173 241,578 268,219 224,784 Total assets $ 21,903,684 $ 20,841,352 $ 21,259,143 $ 17,758,511 $ 17,937,435 LIABILITIES ANDSTOCKHOLDERS' EQUITYDeposits: Non-interestbearing $ 4,608,098 $ 3,572,244 $ 3,741,093 $ 3,044,330 $ 2,954,032 transactionaccountsInterest bearingtransaction 8,978,045 8,840,678 9,090,878 7,337,571 7,258,005 accounts andsavings depositsTime deposits 3,029,975 3,146,811 3,276,969 3,086,108 3,304,176 Total deposits 16,616,118 15,559,733 16,108,940 13,468,009 13,516,213 Federal fundspurchased andsecurities sold 387,025 377,859 150,145 116,536 130,470 under agreementsto repurchaseOther borrowings 1,393,689 1,396,829 1,297,599 1,098,395 1,324,094 Subordinated notes 382,604 388,396 388,260 354,223 354,132 and debenturesOther liabilities - 58,405 159,853 - 162 held for saleAccrued interestand other 219,545 214,730 165,422 174,277 142,851 liabilitiesTotal liabilities 18,998,981 17,995,952 18,270,219 15,211,440 15,467,922 Stockholders' equity:Preferred stock 767 767 767 - - Common stock 1,090 1,090 1,136 966 966 Surplus 2,029,383 2,026,420 2,117,282 1,708,058 1,705,262 Undivided profits 819,153 778,893 848,848 814,338 747,969 Accumulated othercomprehensive income (loss):Unrealizedaccretion 54,310 38,230 20,891 23,709 15,316 (depreciation) onAFS securitiesTotalstockholders' 2,904,703 2,845,400 2,988,924 2,547,071 2,469,513 equityTotal liabilitiesand stockholders' $ 21,903,684 $ 20,841,352 $ 21,259,143 $ 17,758,511 $ 17,937,435 equity

Simmons First SFNCNational CorporationConsolidated Statements of Income - Quarter-to-DateFor the Quarters Jun 30 Mar 31 Dec 31 Sep 30 Jun 30Ended(Unaudited) 2020 2020 2019 2019 2019($ in thousands,except per share data)INTEREST INCOME Loans $ 176,910 $ 187,566 $ 193,402 $ 179,971 $ 178,122Interest bearingbalances due from 603 2,441 2,625 1,586 1,121banks and federalfunds soldInvestment securities 13,473 18,943 16,962 14,467 15,666Mortgage loans held 668 281 402 382 332for saleTOTAL INTEREST INCOME 191,654 209,231 213,391 196,406 195,241INTEREST EXPENSE Time deposits 10,803 13,323 16,198 15,573 14,606Other deposits 7,203 17,954 20,331 21,363 20,190Federal fundspurchased andsecurities sold under 337 759 368 249 257agreements torepurchaseOther borrowings 4,963 4,877 4,615 5,381 6,219Subordinated notes 4,667 4,835 4,813 4,576 4,541and debenturesTOTAL INTEREST 27,973 41,748 46,325 47,142 45,813EXPENSENET INTEREST INCOME 163,681 167,483 167,066 149,264 149,428Provision for credit 26,915 26,134 4,903 21,973 7,079lossesNET INTEREST INCOMEAFTER PROVISION FOR 136,766 141,349 162,163 127,291 142,349CREDIT LOSSESNON-INTEREST INCOME Trust income 7,253 7,151 7,430 6,108 5,794Service charges on 8,570 13,328 13,332 10,825 10,557deposit accountsOther service charges 1,489 1,588 1,915 1,308 1,312and feesMortgage lending 12,459 5,046 4,029 4,509 3,656incomeSBA lending income 245 296 321 956 895Investment banking 571 877 822 513 360incomeDebit and credit card 7,996 7,914 8,920 7,059 7,212feesBank owned life 1,445 1,298 1,411 1,302 1,260insurance incomeGain on sale of 390 32,095 377 7,374 2,823securities, netOther income 9,809 12,801 7,073 44,721 6,065TOTAL NON-INTEREST 50,227 82,394 45,630 84,675 39,934INCOMENON-INTEREST EXPENSE Salaries and employee 57,644 67,924 63,235 52,065 56,128benefitsOccupancy expense, 9,217 9,510 9,272 8,342 6,919netFurniture and 6,144 5,723 5,758 4,898 4,206equipment expenseOther real estate and 274 325 1,089 1,125 591foreclosure expenseDeposit insurance 2,838 2,475 (134 ) - 2,510Merger-related costs 1,830 1,068 24,831 2,556 7,522Other operating 34,651 38,788 38,044 37,879 32,867expensesTOTAL NON-INTEREST 112,598 125,813 142,095 106,865 110,743EXPENSENET INCOME BEFORE 74,395 97,930 65,698 105,101 71,540INCOME TAXESProvision for income 15,593 20,694 12,976 23,275 15,616taxesNET INCOME 58,802 77,236 52,722 81,826 55,924Preferred stock 13 13 13 - 326dividendsNET INCOME AVAILABLETO COMMON $ 58,789 $ 77,223 $ 52,709 $ 81,826 $ 55,598STOCKHOLDERSBASIC EARNINGS PER $ 0.54 $ 0.68 $ 0.49 $ 0.85 $ 0.58SHAREDILUTED EARNINGS PER $ 0.54 $ 0.68 $ 0.49 $ 0.84 $ 0.58SHARE

Simmons First National SFNCCorporationConsolidatedRisk-Based CapitalFor theQuarters Jun 30 Mar 31 Dec 31 Sep 30 Jun 30Ended(Unaudited) 2020 2020 2019 2019 2019 ($ in thousands)Tier 1 capitalStockholders' $ 2,904,703 $ 2,845,400 $ 2,988,924 $ 2,547,071 $ 2,469,513 equityCECLtransition 130,480 134,558 - - - provision ^(1)Disallowedintangibleassets, net (1,160,385 ) (1,164,038 ) (1,160,079 ) (1,013,309 ) (1,001,676 )of deferredtaxUnrealized(gain) loss (54,310 ) (38,230 ) (20,891 ) (23,709 ) (15,316 )on AFSsecuritiesTotal Tier 1 1,820,488 1,777,690 1,807,954 1,510,053 1,452,521 capital Tier 2 capitalTrustpreferredsecurities 382,604 388,396 388,260 354,223 354,132 andsubordinateddebtQualifyingallowance forloan losses 83,780 96,015 76,644 74,455 72,044 and reservefor unfundedcommitmentsTotal Tier 2 466,384 484,411 464,904 428,678 426,176 capitalTotalrisk-based $ 2,286,872 $ 2,262,101 $ 2,272,858 $ 1,938,731 $ 1,878,697 capital Risk weighted $ 15,362,175 $ 16,012,233 $ 16,554,081 $ 14,725,571 $ 14,825,253 assets Adjustedaverageassets for $ 20,742,824 $ 19,832,219 $ 18,852,798 $ 16,681,527 $ 16,382,520 leverageratio Ratios at end of quarterEquity to 13.26 % 13.65 % 14.06 % 14.34 % 13.77 %assetsTangiblecommon equity 8.31 % 8.44 % 8.99 % 9.08 % 8.51 %to tangibleassets ^(2)Common equityTier 1 ratio 11.85 % 11.10 % 10.92 % 10.25 % 9.80 %(CET1)Tier 1leverage 8.78 % 8.96 % 9.59 % 9.05 % 8.87 %ratioTier 1risk-based 11.85 % 11.10 % 10.92 % 10.25 % 9.80 %capital ratioTotalrisk-based 14.89 % 14.13 % 13.73 % 13.17 % 12.67 %capital ratio (1) The Company has elected to use the CECL transition provision allowed for inthe year of adopting ASC 326.(2) Calculations of tangible common equity to tangible assets and thereconciliations to GAAP are included in theschedules accompanying thisrelease.

Simmons First National SFNCCorporationConsolidatedInvestment SecuritiesFor the Quarters Jun 30 Mar 31 Dec 31 Sep 30 Jun 30Ended(Unaudited) 2020 2020 2019 2019 2019($ in thousands) InvestmentSecurities - End of PeriodHeld-to-Maturity U.S. Government $ - $ - $ - $ - $ 999agenciesMortgage-backed 25,980 27,121 10,796 11,549 12,225securitiesState andpolitical 24,777 25,985 27,082 28,692 32,236subdivisionsOther securities 963 862 3,049 1,996 1,995Totalheld-to-maturity 51,720 53,968 40,927 42,237 47,455(net of creditlosses)Available-for-Sale U.S. Treasury $ - $ 424,989 $ 449,729 $ - $ -U.S. Government 210,921 161,289 194,249 178,139 197,656agenciesMortgage-backed 1,154,086 1,179,837 1,742,945 1,337,794 1,345,760securitiesState andpolitical 1,054,068 678,243 880,524 681,202 636,558subdivisionsOther securities 77,821 22,282 20,896 13,796 11,599Totalavailable-for-sale 2,496,896 2,466,640 3,288,343 2,210,931 2,191,573(net of creditlosses)Total investmentsecurities (net of $ 2,548,616 $ 2,520,608 $ 3,329,270 $ 2,253,168 $ 2,239,028credit losses)Fair value - HTMinvestment $ 53,751 $ 55,714 $ 41,855 $ 43,302 $ 48,640securities InvestmentSecurities - QTD AverageTaxable securities $ 1,642,083 $ 2,324,188 $ 1,940,755 $ 1,561,308 $ 1,641,986Tax exempt 866,944 900,223 825,000 681,505 624,898securitiesTotal investmentsecurities - QTD $ 2,509,027 $ 3,224,411 $ 2,765,755 $ 2,242,813 $ 2,266,884average

Simmons First National SFNCCorporationConsolidated LoansFor theQuarters Jun 30 Mar 31 Dec 31 Sep 30 Jun 30Ended(Unaudited) 2020 2020 2019 2019 2019($ in thousands)LoanPortfolio - End of PeriodConsumer Credit cards $ 184,348 $ 188,596 $ 204,802 $ 195,083 $ 187,919Other 214,024 267,870 249,195 215,283 216,144consumerTotal 398,372 456,466 453,997 410,366 404,063consumerReal Estate Construction 2,010,256 2,024,118 2,248,673 2,081,595 1,975,179Single-family 2,207,087 2,343,543 2,414,753 1,951,842 1,998,655residentialOthercommercial 6,316,444 6,466,104 6,358,514 5,758,511 5,983,488real estateTotal real 10,533,787 10,833,765 11,021,940 9,791,948 9,957,322estateCommercial Commercial 3,038,216 2,314,472 2,451,119 2,215,539 2,249,078Agricultural 217,715 191,535 191,525 214,610 192,988Total 3,255,931 2,506,007 2,642,644 2,430,149 2,442,066commercialOther 418,810 578,039 307,123 371,086 324,674Total Loans $ 14,606,900 $ 14,374,277 $ 14,425,704 $ 13,003,549 $ 13,128,125

Simmons First National SFNCCorporationConsolidatedAllowance and Asset QualityFor the Jun 30 Mar 31 Dec 31 Sep 30 Jun 30Quarters Ended(Unaudited) 2020 2020 2019 2019 2019 ($ in thousands)Allowance forCredit Losses on LoansBeginningbalance, prior $ 68,244 $ 66,590 $ 64,179 $ 60,555 to adoption ofASC 326Impact ofadopting ASC 151,377 326 ^(1)Beginningbalance, after $ 243,195 $ 219,621 adoption of ASC326 Loans charged offCredit cards 1,053 1,441 1,287 1,117 1,039 Other consumer 592 1,379 1,425 1,065 964 Real estate 1,824 396 892 1,367 1,216 Commercial 35,687 523 459 17,778 1,963 Total loans 39,156 3,739 4,063 21,327 5,182 charged off Recoveries ofloans previouslycharged offCredit cards 272 225 287 223 271 Other consumer 301 443 304 1,422 331 Real estate 253 101 146 55 158 Commercial 98 347 77 65 967 Total 924 1,116 814 1,765 1,727 recoveriesNet loans 38,232 2,623 3,249 19,562 3,455 charged offProvision forcredit losses 26,678 26,197 4,903 21,973 7,079 on loansBalance, end of $ 231,641 $ 243,195 $ 68,244 $ 66,590 $ 64,179 quarter Non-performing assetsNon-performing loansNonaccrual $ 131,888 $ 156,746 $ 91,723 $ 84,660 $ 106,670 loansLoans past due 537 1,305 855 177 277 90 days or moreTotalnon-performing 132,425 158,051 92,578 84,837 106,947 loansOthernon-performing assetsForeclosedassets and 14,111 20,805 19,121 19,576 24,761 other realestate ownedOthernon-performing 2,008 2,169 1,964 540 613 assetsTotal othernon-performing 16,119 22,974 21,085 20,116 25,374 assetsTotalnon-performing $ 148,544 $ 181,025 $ 113,663 $ 104,953 $ 132,321 assetsPerforming TDRs(troubled debt $ 3,960 $ 4,110 $ 4,411 $ 6,519 $ 6,246 restructurings) Ratios Allowance forcredit losses 1.59 % 1.69 % 0.47 % 0.51 % 0.49 %to total loansAllowance forcredit lossesto 175 % 154 % 74 % 78 % 60 %non-performingloansNon-performingloans to total 0.91 % 1.10 % 0.64 % 0.65 % 0.81 %loansNon-performingassets(including 0.70 % 0.89 % 0.56 % 0.63 % 0.77 %performingTDRs) to totalassetsNon-performingassets to total 0.68 % 0.87 % 0.53 % 0.59 % 0.74 %assetsAnnualized netcharge offs to 1.04 % 0.07 % 0.09 % 0.59 % 0.11 %total loansAnnualized netcredit cardcharge offs to 1.67 % 2.29 % 1.99 % 1.82 % 1.63 %total creditcard loans (1) The Company adopted ASC326.effective January 1, 2020..

Simmons First National SFNCCorporationConsolidated - Average Balance Sheet and Net Interest Income AnalysisFor the Quarters Ended(Unaudited) Three Months Ended Jun 2020 Three Months Ended Mar 2020 Three Months Ended Jun 2019($ in Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/thousands) Balance Expense Rate Balance Expense Rate Balance Expense RateASSETS Earning assets: Interestbearingbalances due $ 2,190,878 $ 603 0.11 % $ 764,639 $ 2,441 1.28 % $ 276,370 $ 1,121 1.63 %from banks andfederal fundssoldInvestmentsecurities - 1,642,083 7,131 1.75 % 2,324,188 12,752 2.21 % 1,641,986 11,066 2.70 %taxableInvestmentsecurities - 866,944 8,434 3.91 % 900,223 8,315 3.71 % 624,898 6,209 3.99 %non-taxable(FTE)Mortgage loans 86,264 668 3.11 % 43,588 281 2.59 % 32,030 332 4.16 %held for saleLoans (FTE) 14,731,306 177,168 4.84 % 14,548,853 187,747 5.19 % 12,814,386 178,219 5.58 %Total interestearning assets 19,517,475 194,004 4.00 % 18,581,491 211,536 4.58 % 15,389,670 196,947 5.13 %(FTE)Non-earning 2,304,798 2,338,732 1,993,202 assetsTotal assets $ 21,822,273 $ 20,920,223 $ 17,382,872 LIABILITIES AND STOCKHOLDERS' EQUITYInterestbearing liabilities:Interestbearingtransaction and $ 9,138,563 $ 7,203 0.32 % $ 9,005,701 $ 17,954 0.80 % $ 7,139,356 $ 20,190 1.13 %savingsaccountsTime deposits 3,057,153 10,803 1.42 % 3,150,909 13,323 1.70 % 3,072,246 14,606 1.91 %Total interestbearing 12,195,716 18,006 0.59 % 12,156,610 31,277 1.03 % 10,211,602 34,796 1.37 %depositsFederal fundspurchased andsecurities sold 392,633 337 0.35 % 330,902 759 0.92 % 133,242 257 0.77 %under agreementto repurchaseOther 1,395,109 4,963 1.43 % 1,320,245 4,877 1.49 % 1,277,450 6,219 1.95 %borrowingsSubordinatednotes and 387,422 4,667 4.84 % 388,330 4,835 5.01 % 354,088 4,541 5.14 %debenturesTotal interestbearing 14,370,880 27,973 0.78 % 14,196,087 41,748 1.18 % 11,976,382 45,813 1.53 %liabilitiesNon-interestbearing liabilities:Non-interestbearing 4,354,781 3,602,678 2,834,452 depositsOther 216,508 251,514 207,500 liabilitiesTotal 18,942,169 18,050,279 15,018,334 liabilitiesStockholders' 2,880,104 2,869,944 2,364,538 equityTotalliabilities and $ 21,822,273 $ 20,920,223 $ 17,382,872 stockholders'equityNet interest $ 166,031 $ 169,788 $ 151,134 income (FTE)Net interest 3.22 % 3.40 % 3.60 %spread (FTE)Net interestmargin (FTE) - 3.42 % 3.68 % 3.94 %quarter-to-date Net interestmargin (FTE) - 3.55 % 3.68 % 3.90 %year-to-date Core net interest margin 3.18 % 3.42 % 3.67 %(FTE) - quarter-to-date^ (1)Core loan yield(FTE) - 4.52 % 4.86 % 5.26 %quarter-to-date^(1) Core netinterest margin(FTE) - 3.30 % 3.42 % 3.68 %year-to-date ^(1)Core loan yield(FTE) - 4.69 % 4.86 % 5.27 %year-to-date^(1) (1) Calculations of core net interest margin and core loan yield and thereconciliations to GAAP are included in the schedules accompanying thisrelease.

Simmons First National SFNCCorporationConsolidated -Selected Financial DataFor the Jun 30 Mar 31 Dec 31 Sep 30 Jun 30Quarters Ended(Unaudited) 2020 2020 2019 2019 2019 ($ inthousands, except sharedata)QUARTER-TO-DATE FinancialHighlights - GAAPNet Income $ 58,789 $ 77,223 $ 52,709 $ 81,826 $ 55,598 Dilutedearnings per 0.54 0.68 0.49 0.84 0.58 shareReturn on 1.08 % 1.48 % 1.04 % 1.83 % 1.28 %average assetsReturn onaverage common 8.21 % 10.83 % 8.01 % 13.70 % 9.48 %equityReturn ontangible common 14.55 % 19.00 % 14.62 % 24.89 % 17.40 %equityNet interest 3.42 % 3.68 % 3.78 % 3.82 % 3.94 %margin (FTE)FTE adjustment 2,350 2,305 2,172 1,843 1,706 Amortization of 3,369 3,413 3,270 2,947 2,947 intangiblesAmortization ofintangibles, 2,489 2,521 2,416 2,176 2,177 net of taxesAverage dilutedshares 109,130,866 113,137,223 108,472,559 96,968,775 96,367,857 outstandingSharesrepurchased - 4,922,336 390,000 - - under planAverage priceof shares - 18.96 25.95 - - repurchasedCash dividendsdeclared per 0.17 0.17 0.16 0.16 0.16 common shareFinancialHighlights - Core (non-GAAP)Core earnings(excludes $ 60,147 $ 73,838 $ 71,074 $ 83,963 $ 65,453 non-core items)^ (1)Core dilutedearnings per 0.55 0.65 0.66 0.87 0.68 share ^(1)Core netinterest margin 3.18 % 3.42 % 3.44 % 3.59 % 3.67 %(FTE)^ (2)Accretableyield on 11,723 11,837 15,100 9,322 10,162 acquired loansEfficiency 49.12 % 56.38 % 52.63 % 43.77 % 49.88 %ratio ^(1)Core return onaverage assets^ 1.11 % 1.42 % 1.41 % 1.88 % 1.51 %(1)Core return onaverage common 8.40 % 10.35 % 10.80 % 14.06 % 11.16 %equity^ (1)Core return ontangible common 14.87 % 18.19 % 19.49 % 25.52 % 20.36 %equity ^(1)YEAR-TO-DATE FinancialHighlights - GAAPNet Income $ 136,012 $ 77,223 $ 237,828 $ 185,119 $ 103,293 Dilutedearnings per 1.22 0.68 2.41 1.94 1.09 shareReturn on 1.28 % 1.48 % 1.33 % 1.44 % 1.24 %average assetsReturn onaverage common 9.45 % 10.83 % 9.93 % 10.65 % 9.05 %equityReturn ontangible common 16.57 % 19.00 % 17.99 % 19.27 % 16.38 %equityNet interest 3.55 % 3.68 % 3.85 % 3.88 % 3.90 %margin (FTE)FTE adjustment 4,655 2,305 7,322 5,150 3,307 Amortization of 6,782 3,413 11,805 8,535 5,588 intangiblesAmortization ofintangibles, 5,010 2,521 8,720 6,304 4,128 net of taxesAverage dilutedshares 111,083,999 113,137,223 98,796,628 95,450,732 94,588,739 outstandingCash dividendsdeclared per 0.34 0.17 0.64 0.48 0.32 common shareFinancialHighlights - Core (non-GAAP)Core earnings(excludes $ 133,985 $ 73,838 $ 269,566 $ 198,492 $ 114,529 non-core items)^ (1)Core dilutedearnings per 1.21 0.65 2.73 2.08 1.21 share ^(1)Core netinterest margin 3.30 % 3.42 % 3.59 % 3.64 % 3.68 %(FTE)^ (2)Accretableyield on 23,560 11,837 41,244 26,144 16,822 acquired loansEfficiency 52.75 % 56.38 % 50.33 % 49.49 % 53.14 %ratio ^(1)Core return onaverage assets^ 1.26 % 1.42 % 1.51 % 1.55 % 1.37 %(1)Core return onaverage common 9.31 % 10.35 % 11.25 % 11.42 % 10.04 %equity^ (1)Core return ontangible common 16.33 % 18.19 % 20.31 % 20.62 % 18.09 %equity ^(1)END OF PERIOD Book value per $ 26.64 $ 26.11 $ 26.30 $ 26.36 $ 25.57 shareTangible book 15.79 15.22 15.89 15.73 14.90 value per shareShares 108,994,389 108,966,331 113,628,601 96,613,855 96,590,656 outstandingFull-timeequivalent 2,939 3,079 3,270 2,701 2,700 employeesTotal number offinancial 226 240 251 212 212 centers (1) Core earnings exclude non-core items, which is a non-GAAP measurement.Reconciliations to GAAP are included in theschedules accompanying thisrelease.(2) Excludes accretable yield adjustment on loans, which is a non-GAAPmeasurement. Reconciliations to GAAP are included inthe schedulesaccompanying this release.

Simmons First National SFNCCorporationConsolidated - Reconciliation of Core Earnings (non-GAAP)For the Jun 30 Mar 31 Dec 31 Sep 30 Jun 30Quarters Ended(Unaudited) 2020 2020 2019 2019 2019 ($ inthousands, except pershare data)QUARTER-TO-DATE Net Income $ 58,789 $ 77,223 $ 52,709 $ 81,826 $ 55,598 Non-core items Gain on sale of (2,204 ) (5,889 ) - - - branchesMerger-related 1,830 1,068 24,831 2,556 7,522 costsEarlyretirement 493 - - 177 2,932 programBranch 1,721 238 37 160 2,887 right-sizingTax effect ^(1) (482 ) 1,198 (6,503 ) (756 ) (3,486 )Net non-core 1,358 (3,385 ) 18,365 2,137 9,855 itemsCore earnings $ 60,147 $ 73,838 $ 71,074 $ 83,963 $ 65,453 (non-GAAP) Dilutedearnings per $ 0.54 $ 0.68 $ 0.49 $ 0.84 $ 0.58 shareNon-core items Gain on sale of (0.02 ) (0.05 ) - - - branchesMerger-related 0.02 0.01 0.23 0.04 0.08 costsEarlyretirement - - - - 0.03 programBranch 0.02 - - - 0.03 right-sizingTax effect ^(1) (0.01 ) 0.01 (0.06 ) (0.01 ) (0.04 )Net non-core 0.01 (0.03 ) 0.17 0.03 0.10 itemsCore dilutedearnings per $ 0.55 $ 0.65 $ 0.66 $ 0.87 $ 0.68 share(non-GAAP) YEAR-TO-DATE Net Income $ 136,012 $ 77,223 $ 237,828 $ 185,119 $ 103,293 Non-core items Gain on sale of (8,093 ) (5,889 ) - - - branchesMerger-related 2,898 1,068 36,379 11,548 8,992 costsEarlyretirement 493 - 3,464 3,464 3,287 programBranch 1,959 238 3,129 3,092 2,932 right-sizingTax effect ^(1) 716 1,198 (11,234 ) (4,731 ) (3,975 )Net non-core (2,027 ) (3,385 ) 31,738 13,373 11,236 itemsCore earnings $ 133,985 $ 73,838 $ 269,566 $ 198,492 $ 114,529 (non-GAAP) Dilutedearnings per $ 1.22 $ 0.68 $ 2.41 $ 1.94 $ 1.09 shareNon-core items Gain on sale of (0.07 ) (0.05 ) - - - branchesMerger-related 0.03 0.01 0.37 0.12 0.10 costsEarlyretirement - - 0.03 0.04 0.03 programBranch 0.02 - 0.03 0.03 0.03 right-sizingTax effect ^(1) 0.01 0.01 (0.11 ) (0.05 ) (0.04 )Net non-core (0.01 ) (0.03 ) 0.32 0.14 0.12 itemsCore dilutedearnings per $ 1.21 $ 0.65 $ 2.73 $ 2.08 $ 1.21 share(non-GAAP) (1) Effectivetax rate of 26.135%. Reconciliation of Selected Non-Core Non-Interest Income and Expense Items (non-GAAP) QUARTER-TO-DATE Other income $ 9,809 $ 12,801 $ 7,073 $ 44,721 $ 6,065 Non-core items^ (2,204 ) (5,889 ) - - - (1) Core otherincome $ 7,605 $ 6,912 $ 7,073 $ 44,721 $ 6,065 (non-GAAP) Non-interest $ 112,598 $ 125,813 $ 142,095 $ 106,865 $ 110,743 expenseNon-core items^ (4,044 ) (1,306 ) (24,868 ) (2,893 ) (13,341 )(1) Corenon-interest $ 108,554 $ 124,507 $ 117,227 $ 103,972 $ 97,402 expense(non-GAAP) Salaries andemployee $ 57,644 $ 67,924 $ 63,235 $ 52,065 $ 56,128 benefitsNon-core items^ (493 ) - - (176 ) (2,937 )(1) Coresalaries andemployee $ 57,151 $ 67,924 $ 63,235 $ 51,889 $ 53,191 benefits(non-GAAP) Merger $ 1,830 $ 1,068 $ 24,831 $ 2,556 $ 7,522 related costsNon-core items^ (1,830 ) (1,068 ) (24,831 ) (2,556 ) (7,522 )(1) Core mergerrelated costs $ - $ - $ - $ - $ - (non-GAAP) Otheroperating $ 34,651 $ 38,788 $ 38,044 $ 37,881 $ 32,867 expensesNon-core items^ (1,662 ) (212 ) (4 ) (90 ) (2,834 )(1) Core otheroperating $ 32,989 $ 38,576 $ 38,040 $ 37,791 $ 30,033 expenses(non-GAAP) (1) Non-core items include gain on sale of branches, merger related costs,early retirement program expenses andbranch right sizing costs.

Simmons FirstNational SFNCCorporationReconciliation Of Non-GAAP Financial Measures - End of PeriodFor theQuarters Jun 30 Mar 31 Dec 31 Sept 30 Jun 30Ended(Unaudited) 2020 2020 2019 2019 2019 ($ inthousands, except pershare data) Calculation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets Total commonstockholders' $ 2,903,936 $ 2,844,633 $ 2,988,157 $ 2,547,071 $ 2,469,513 equityIntangible assets:Goodwill (1,064,765 ) (1,064,978 ) (1,055,520 ) (926,648 ) (926,450 )Otherintangible (117,823 ) (121,673 ) (127,340 ) (101,149 ) (104,096 )assetsTotal (1,182,588 ) (1,186,651 ) (1,182,860 ) (1,027,797 ) (1,030,546 )intangiblesTangiblecommon $ 1,721,348 $ 1,657,982 $ 1,805,297 $ 1,519,274 $ 1,438,967 stockholders'equity Total assets $ 21,903,684 $ 20,841,352 $ 21,259,143 $ 17,758,511 $ 17,937,435 Intangible assets:Goodwill (1,064,765 ) (1,064,978 ) (1,055,520 ) (926,648 ) (926,450 )Otherintangible (117,823 ) (121,673 ) (127,340 ) (101,149 ) (104,096 )assetsTotal (1,182,588 ) (1,186,651 ) (1,182,860 ) (1,027,797 ) (1,030,546 )intangiblesTangible $ 20,721,096 $ 19,654,701 $ 20,076,283 $ 16,730,714 $ 16,906,889 assets Paycheckprotection (963,712 ) program("PPP") loansTotal assetsless PPP $ 20,939,972 loansTangibleassets less $ 19,757,384 PPP loans Ratio ofequity to 13.26 % 13.65 % 14.06 % 14.34 % 13.77 %assetsRatio ofequity to 13.87 % assets lessPPP loansRatio oftangiblecommon equity 8.31 % 8.44 % 8.99 % 9.08 % 8.51 %to tangibleassetsRatio oftangiblecommon equity 8.71 % to tangibleassets lessPPP loans Calculationof Tangible Book Valueper Share Total commonstockholders' $ 2,903,936 $ 2,844,633 $ 2,988,157 $ 2,547,071 $ 2,469,513 equityIntangible assets:Goodwill (1,064,765 ) (1,064,978 ) (1,055,520 ) (926,648 ) (926,450 )Otherintangible (117,823 ) (121,673 ) (127,340 ) (101,149 ) (104,096 )assetsTotal (1,182,588 ) (1,186,651 ) (1,182,860 ) (1,027,797 ) (1,030,546 )intangiblesTangiblecommon $ 1,721,348 $ 1,657,982 $ 1,805,297 $ 1,519,274 $ 1,438,967 stockholders'equityShares ofcommon stock 108,994,389 108,966,331 113,628,601 96,613,855 96,590,656 outstandingBook valueper common $ 26.64 $ 26.11 $ 26.30 $ 26.36 $ 25.57 shareTangible bookvalue per $ 15.79 $ 15.22 $ 15.89 $ 15.73 $ 14.90 common share Calculation of Regulatory Tier 1 Leverage Ratio Less Average PPP Loans Total Tier 1 $ 1,820,488 capital Adjustedaverageassets for $ 20,742,824 leverageratioAverage PPP (645,172 ) loansAdjustedaverageassets less $ 20,097,652 average PPPloans Tier 1leverage 8.78 % ratioTier 1leverageratio less 9.06 % average PPPloans

Simmons FirstNational SFNCCorporationReconciliation Of Non-GAAP Financial Measures - Quarter-to-DateFor the Jun 30 Mar 31 Dec 31 Sept 30 Jun 30Quarters Ended(Unaudited) 2020 2020 2019 2019 2019 ($ in thousands)Calculation ofCore Return on Average Assets Net income $ 58,789 $ 77,223 $ 52,709 $ 81,826 $ 55,598 Net non-coreitems, net of 1,358 (3,385 ) 18,365 2,137 9,855 taxes,adjustmentCore earnings $ 60,147 $ 73,838 $ 71,074 $ 83,963 $ 65,453 Average total $ 21,822,273 $ 20,920,223 $ 20,041,890 $ 17,720,598 $ 17,382,872 assets Return on 1.08 % 1.48 % 1.04 % 1.83 % 1.28 %average assetsCore return on 1.11 % 1.42 % 1.41 % 1.88 % 1.51 %average assets Calculation ofReturn on TangibleCommon Equity Net income $ 58,789 $ 77,223 $ 52,709 $ 81,826 $ 55,598 Amortizationof 2,489 2,521 2,416 2,176 2,177 intangibles,net of taxesTotal incomeavailable to $ 61,278 $ 79,744 $ 55,125 $ 84,002 $ 57,775 commonstockholders Net non-coreitems, net of 1,358 (3,385 ) 18,365 2,137 9,855 taxesCore earnings 60,147 73,838 71,074 83,963 65,453 Amortizationof 2,489 2,521 2,416 2,176 2,177 intangibles,net of taxesTotal coreincomeavailable to $ 62,636 $ 76,359 $ 73,490 $ 86,139 $ 67,630 commonstockholders Average commonstockholders' $ 2,879,337 $ 2,869,177 $ 2,611,143 $ 2,368,773 $ 2,351,603 equityAverageintangible assets:Goodwill (1,064,955 ) (1,055,498 ) (997,004 ) (926,687 ) (915,445 )Other (120,111 ) (125,746 ) (118,311 ) (103,028 ) (104,050 )intangiblesTotal average (1,185,066 ) (1,181,244 ) (1,115,315 ) (1,029,715 ) (1,019,495 )intangiblesAveragetangiblecommon $ 1,694,271 $ 1,687,933 $ 1,495,828 $ 1,339,058 $ 1,332,108 stockholders'equity Return onaverage common 8.21 % 10.83 % 8.01 % 13.70 % 9.48 %equityReturn ontangible 14.55 % 19.00 % 14.62 % 24.89 % 17.40 %common equityCore return onaverage common 8.40 % 10.35 % 10.80 % 14.06 % 11.16 %equityCore return ontangible 14.87 % 18.19 % 19.49 % 25.52 % 20.36 %common equity Calculation ofEfficiency Ratio ^(1) Non-interest $ 112,598 $ 125,813 $ 142,095 $ 106,865 $ 110,743 expenseNon-corenon-interest (4,044 ) (1,306 ) (24,868 ) (2,893 ) (13,341 )expenseadjustmentOther realestate andforeclosure (242 ) (319 ) (1,063 ) (1,057 ) (563 )expenseadjustmentAmortizationof intangibles (3,369 ) (3,413 ) (3,270 ) (2,947 ) (2,947 )adjustmentEfficiencyratio $ 104,943 $ 120,775 $ 112,894 $ 99,968 $ 93,892 numerator Net-interest $ 163,681 $ 167,483 $ 167,066 $ 149,264 $ 149,428 incomeNon-interest 50,227 82,394 45,630 84,675 39,934 incomeFullytax-equivalent 2,350 2,305 2,172 1,843 1,706 adjustmentGain on sale (390 ) (32,095 ) (377 ) (7,374 ) (2,823 )of securitiesEfficiencyratio $ 213,664 $ 214,198 $ 214,491 $ 228,408 $ 188,245 denominator Efficiency 49.12 % 56.38 % 52.63 % 43.77 % 49.88 %ratio ^(1) (1) Efficiency ratio is non-interest expense before foreclosed property expenseand amortization of intangibles as a percent of net interest income(fullytaxable equivalent) and non-interest revenues, excluding gains andlosses from securities transactions and non-core items.

Simmons FirstNational SFNCCorporationReconciliation Of Non-GAAP Financial Measures - Quarter-to-Date (continued)For the Jun 30 Mar 31 Dec 31 Sept 30 Jun 30Quarters Ended(Unaudited) 2020 2020 2019 2019 2019 ($ in thousands)Calculation ofCore Net InterestMargin Net interest $ 163,681 $ 167,483 $ 167,066 $ 149,264 $ 149,428 incomeFullytax-equivalent 2,350 2,305 2,172 1,843 1,706 adjustmentFullytax-equivalent 166,031 169,788 169,238 151,107 151,134 net interestincome Totalaccretable (11,723 ) (11,837 ) (15,100 ) (9,322 ) (10,162 )yieldCore netinterest $ 154,308 $ 157,951 $ 154,138 $ 141,785 $ 140,972 incomePPP loan andexcessliquidity (5,623 ) interestincomeCore netinterestadjusted for $ 148,685 PPP loans andliquidity Average $ 19,517,475 $ 18,581,491 $ 17,753,004 $ 15,680,665 $ 15,389,670 earning assetsAverage PPPloan balance (2,071,411 ) and excessliquidityAverageearning assetsadjusted for $ 17,446,064 PPL loans andliquidity Net interest 3.42 % 3.68 % 3.78 % 3.82 % 3.94 %marginCore netinterest 3.18 % 3.42 % 3.44 % 3.59 % 3.67 %marginCore netinterestmargin 3.43 % adjusted forPPP loans andliquidity Calculation ofCore Loan Yield Loan interest $ 177,168 $ 187,566 $ 193,402 $ 179,971 $ 178,122 incomeTotalaccretable (11,723 ) (11,837 ) (15,100 ) (9,322 ) (10,162 )yieldCore loaninterest $ 165,445 $ 175,729 $ 178,302 $ 170,649 $ 167,960 incomePPP loaninterest (3,733 ) incomeCore loaninterest $ 161,712 income withoutPPP loans Average loan $ 14,731,306 $ 14,548,853 $ 14,144,703 $ 13,053,540 $ 12,814,386 balanceAverage PPP (645,172 ) loan balanceCore loaninterest $ 14,086,134 income withoutPPP loans Core loan 4.52 % 4.86 % 5.00 % 5.19 % 5.26 %yieldCore loanyield without 4.62 % PPP loans Calculation ofPre-Tax,Pre-Provision (PTPP)Earnings Net incomeavailable to $ 58,789 $ 77,223 $ 52,709 $ 81,826 $ 55,598 commonstockholdersProvision for 15,593 20,694 12,976 23,275 15,616 income taxesProvision for 26,915 26,134 4,903 21,973 7,079 credit lossesProvision forunfunded (5,000 ) (3,000 ) - - - commitments(Gain) loss onsale of (390 ) (32,095 ) (377 ) (7,374 ) (2,823 )securitiesNet pre-tax 1,840 (4,583 ) 24,868 2,893 13,341 non-core itemsPre-tax,pre-provision $ 97,747 $ 84,373 $ 95,079 $ 122,593 $ 88,811 (PTPP)earnings

Simmons FirstNational SFNCCorporationReconciliation Of Non-GAAP Financial Measures - Year-to-DateFor the Quarters Ended(Unaudited) Jun 30 Mar 31 Dec 31 Sept 30 Jun 30 2020 2020 2019 2019 2019 ($ in thousands) Calculation ofCore Return on Average Assets Net income $ 136,012 $ 77,223 $ 237,828 $ 185,119 $ 103,293 Net non-coreitems, net of (2,027 ) (3,385 ) 31,738 13,373 11,236 taxes,adjustmentCore earnings $ 133,985 $ 73,838 $ 269,566 $ 198,492 $ 114,529 Average total $ 21,371,248 $ 20,920,223 $ 17,871,748 $ 17,140,419 $ 16,845,528 assets Return on 1.28 % 1.48 % 1.33 % 1.44 % 1.24 %average assetsCore return on 1.26 % 1.42 % 1.51 % 1.55 % 1.37 %average assets Calculation ofReturn on Tangible CommonEquity Net income $ 136,012 $ 77,223 $ 237,828 $ 185,119 $ 103,293 Amortization ofintangibles, net 5,010 2,521 8,720 6,304 4,128 of taxesTotal incomeavailable to $ 141,022 $ 79,744 $ 246,548 $ 191,423 $ 107,421 commonstockholders Net non-coreitems, net of (2,027 ) (3,385 ) 31,738 13,373 11,236 taxesCore earnings 133,985 73,838 269,566 198,492 114,529 Amortization ofintangibles, net 5,010 2,521 8,720 6,304 4,128 of taxesTotal coreincome available $ 138,995 $ 76,359 $ 278,286 $ 204,796 $ 118,657 to commonstockholders Average commonstockholders' $ 2,894,351 $ 2,869,177 $ 2,396,024 $ 2,323,530 $ 2,300,535 equityAverageintangible assets: Goodwill (1,060,226 ) (1,055,498 ) (921,635 ) (896,236 ) (880,759 ) Other (122,928 ) (125,746 ) (104,000 ) (99,178 ) (97,221 )intangiblesTotal average (1,183,154 ) (1,181,244 ) (1,025,635 ) (995,414 ) (977,980 )intangiblesAverage tangiblecommon $ 1,711,197 $ 1,687,933 $ 1,370,389 $ 1,328,116 $ 1,322,555 stockholders'equity Return onaverage common 9.45 % 10.83 % 9.93 % 10.65 % 9.05 %equityReturn ontangible common 16.57 % 19.00 % 17.99 % 19.27 % 16.38 %equityCore return onaverage common 9.31 % 10.35 % 11.25 % 11.42 % 10.04 %equityCore return ontangible common 16.33 % 18.19 % 20.31 % 20.62 % 18.09 %equity Calculation ofEfficiency Ratio ^(1) Non-interest $ 238,411 $ 125,813 $ 461,112 $ 319,017 $ 212,152 expenseNon-corenon-interest (5,350 ) (1,306 ) (42,972 ) (18,104 ) (15,211 )expenseadjustmentOther realestate andforeclosure (561 ) (319 ) (3,282 ) (2,219 ) (1,162 )expenseadjustmentAmortization ofintangibles (6,782 ) (3,413 ) (11,805 ) (8,535 ) (5,588 )adjustmentEfficiency ratio $ 225,718 $ 120,775 $ 403,053 $ 290,159 $ 190,191 numerator Net-interest $ 331,164 $ 167,483 $ 601,753 $ 434,687 $ 285,423 incomeNon-interest 132,621 82,394 205,031 159,401 74,726 incomeFullytax-equivalent 4,655 2,305 7,322 5,150 3,307 adjustmentGain on sale of (32,485 ) (32,095 ) (13,314 ) (12,937 ) (5,563 )securitiesEfficiency ratio $ 427,862 $ 214,198 $ 800,792 $ 586,301 $ 357,893 denominator Efficiency ratio 52.75 % 56.38 % 50.33 % 49.49 % 53.14 %^(1) Calculation ofCore Net Interest Margin Net interest $ 331,164 $ 167,483 $ 601,753 $ 434,687 $ 285,423 incomeFullytax-equivalent 4,655 2,305 7,322 5,150 3,307 adjustmentFullytax-equivalent 335,819 169,788 609,075 439,837 288,730 net interestincome Total accretable (23,560 ) (11,837 ) (41,244 ) (26,144 ) (16,822 )yieldCore net $ 312,259 $ 157,951 $ 567,831 $ 413,693 $ 271,908 interest incomeAverage earning $ 19,049,487 $ 18,581,491 $ 15,824,571 $ 15,174,671 $ 14,917,493 assets Net interest 3.55 % 3.68 % 3.85 % 3.88 % 3.90 %marginCore net 3.30 % 3.42 % 3.59 % 3.64 % 3.68 %interest margin Calculation of Core Loan Yield Loan interest $ 364,476 $ 187,566 $ 710,935 $ 517,533 $ 337,562 incomeTotal accretable (23,560 ) (11,837 ) (41,244 ) (26,144 ) (16,822 )yieldCore loan $ 340,916 $ 175,729 $ 669,691 $ 491,389 $ 320,740 interest incomeAverage loan $ 14,640,082 $ 14,548,853 $ 12,938,013 $ 12,531,355 $ 12,265,936 balance Core loan yield 4.68 % 4.86 % 5.18 % 5.24 % 5.27 % (1) Efficiency ratio is non-interest expense before foreclosed property expenseand amortization of intangibles as a percent of net interest income(fullytaxable equivalent) and non-interest revenues, excluding gains andlosses from securities transactions and non-core items.