Simmons First National Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Simmons First National Corp. has submitted its 2023 annual report (10-K), detailing financial performance and operational data for the fiscal year ending December 31, 2023.</b>

AI Summary

SIMMONS FIRST NATIONAL CORP (SFNC) filed a Annual Report (10-K) with the SEC on February 27, 2024. Simmons First National Corp. filed its 2023 Form 10-K on February 27, 2024. The filing covers the fiscal year ending December 31, 2023. The company is classified under SIC code 6021 for National Commercial Banks. Key financial data points such as deposits, credit/debit card activity, fiduciary and trust services, and mortgage loans are detailed for 2021, 2022, and 2023. The report includes information on common stock, preferred stock, additional paid-in capital, accumulated other comprehensive income, and retained earnings as of December 31, 2020, and for the fiscal years 2021-2023.

Why It Matters

For investors and stakeholders tracking SIMMONS FIRST NATIONAL CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Simmons First National Corp.'s financial health, operational segments, and strategic positioning for the fiscal year 2023, crucial for investors and stakeholders to assess performance and future outlook. The detailed breakdown of financial instruments, capital structure, and segment performance allows for a thorough analysis of the bank's stability, growth drivers, and risk exposure in the current economic climate.

Risk Assessment

Risk Level: medium — SIMMONS FIRST NATIONAL CORP shows moderate risk based on this filing. The filing is a standard 10-K for a publicly traded bank, indicating a medium level of risk due to the inherent complexities and regulatory environment of the banking sector, as evidenced by the detailed financial disclosures and segment reporting.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to understand Simmons First National Corp.'s performance and strategic direction for 2023.

Key Numbers

• 2023 — Fiscal Year (Fiscal year end)
• 1231 — Fiscal Year End (Fiscal year end)
• 2024-02-27 — Filing Date (Filed as of date)
• 2023-12-31 — Report Period End Date (Conformed period of report)

Key Players & Entities

• SIMMONS FIRST NATIONAL CORP (company) — Filer name
• 20231231 (date) — Conformed period of report
• 20240227 (date) — Filed as of date
• 0000090498 (company) — Central Index Key
• 6021 (industry) — Standard Industrial Classification
• AR (location) — State of incorporation
• 501 MAIN STREET (address) — Business address street 1
• PINE BLUFF (location) — Business address city

FAQ

Industry Context

Simmons First National Corp. operates as a commercial bank, a sector characterized by significant regulatory oversight and sensitivity to economic conditions.

Regulatory Implications

As a national commercial bank, Simmons First National Corp. is subject to regulations from federal and state authorities, including the Federal Reserve and state banking departments, impacting its operations and capital requirements.

What Investors Should Do

1. Analyze the detailed financial statements for the fiscal year 2023, paying attention to changes in deposits, loans, and other financial instruments.
2. Review any disclosed risk factors or management's discussion and analysis to understand potential challenges and strategic responses.
3. Compare key financial metrics from the 2023 10-K with previous years (2021, 2022) to identify trends in growth, profitability, and asset quality.

Key Dates

• 2024-02-27: 10-K Filing — Submission of the annual report for fiscal year 2023.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year ending December 31, 2023, providing updated financial and operational data compared to previous filings.

Key Financial Figures

• $0.01 — ich registered Common stock, par value $0.01 per share SFNC The Nasdaq Global Select
• $17.25 — d on the Nasdaq Global Select Market of $17.25. The number of shares outstanding of t
• $27.3 b — s, and had total consolidated assets of $27.3 billion, total consolidated loans of $16.
• $16.8 b — .3 billion, total consolidated loans of $16.8 billion, total consolidated deposits of $
• $22.2 billion — billion, total consolidated deposits of $22.2 billion and equity capital of $3.4 billion, eac
• $3.4 b — of $22.2 billion and equity capital of $3.4 billion, each as of December 31, 2023. Th
• $950 million — thwest Arkansas and had total assets of $950 million. Upon completion of the acquisition, MN
• $420 million — kansas, Delta Trust had total assets of $420 million. The acquisition further expanded Simmo
• $1.1 billion — thwest Missouri and had total assets of $1.1 billion. The acquisition enhanced Simmons Bank'
• $1.9 billion — hout Tennessee, and had total assets of $1.9 billion. The acquisition expanded our footprint
• $1 billion — ngfield, Missouri, Ozark Trust had over $1 billion in assets under management and provided
• $585 million — Tennessee. Citizens had total assets of $585 million and strengthened our position in east T
• $463 million — t South Bank. We acquired approximately $463 million in assets and strengthened our position
• $2.4 billion — ank. Southwest Bank had total assets of $2.4 billion. This acquisition allowed us to enter t
• $2.7 billion — lwater, Oklahoma, OKSB provided us with $2.7 billion in assets, allowed us additional entry

Filing Documents

• sfnc-20231231.htm (10-K) — 4875KB
• sfnc-123123xex21listofsubs.htm (EX-21) — 27KB
• sfnc-123123xex23forviscons.htm (EX-23) — 4KB
• sfnc-123123xex311.htm (EX-31.1) — 10KB
• sfnc-123123xex312.htm (EX-31.2) — 10KB
• sfnc-123123xex313.htm (EX-31.3) — 10KB
• sfnc-123123xex321.htm (EX-32.1) — 5KB
• sfnc-123123xex322.htm (EX-32.2) — 5KB
• sfnc-123123xex323.htm (EX-32.3) — 5KB
• sfnc-123123xex97simmonscla.htm (EX-97) — 25KB
• sfnc-20231231_g1.jpg (GRAPHIC) — 2KB
• sfnc-20231231_g2.jpg (GRAPHIC) — 152KB
• 0001628280-24-007263.txt (&nbsp;) — 23841KB
• sfnc-20231231.xsd (EX-101.SCH) — 106KB
• sfnc-20231231_cal.xml (EX-101.CAL) — 215KB
• sfnc-20231231_def.xml (EX-101.DEF) — 661KB
• sfnc-20231231_lab.xml (EX-101.LAB) — 1437KB
• sfnc-20231231_pre.xml (EX-101.PRE) — 1017KB
• sfnc-20231231_htm.xml (XML) — 5183KB

Business

Business 5 Item 1A

Risk Factors

Risk Factors 19 Item 1B Unresolved Staff Comments 31 Item 1C Cybersecurity 31 Item 2

Properties

Properties 33 Item 3

Legal Proceedings

Legal Proceedings 33 Item 4 Mine Safety Disclosures 33 Part II Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 34 Item 6 [Reserved] 35 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 36 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 66 Item 8 Consolidated Financial Statements and Supplementary Data 68 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 137 Item 9A

Controls and Procedures

Controls and Procedures 137 Item 9B Other Information 137 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 137 Part III Item 10 Directors, Executive Officers and Corporate Governance 138 Item 11

Executive Compensation

Executive Compensation 139 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 139 Item 13 Certain Relationships and Related Transactions, and Director Independence 139 Item 14 Principal Accountant Fees and Services 139 Part IV Item 15 Exhibits and Financial Statement Schedules 139 Item 16 Form 10-K Summary 145

Signatures

Signatures 146 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Certain statements contained in this Annual Report on Form 10-K 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 may be identified by reference to a future period(s) or by the use of forward-looking terminology, such as "anticipate," "believe," "budget," "contemplate," "continue," "estimate," "expect," "foresee," "intend," "indicate," "likely," "target," "plan," "positions," "prospects," "project," "predict," or "potential," by future conditional verbs such as "could," "may," "might," "should," "will," or "would," by variations of such words, or by similar expressions. These forward-looking statements include, without limitation, those relating to the Company's future growth, business strategies, acquisitions and their expected benefits, revenue, expenses, assets, asset quality, profitability, earnings, accretion, dividends, customer service, lending capacity and lending activity, loan demand, investment in digital channels, critical accounting policies and estimates, net interest margin, non-interest revenue, non-interest expense, market conditions related to and the impact of the Company's stock repurchase program, consumer behavior and liquidity, the Company's ability to recruit and retain key employees, the adequacy of the allowance for credit losses, the estimated cost savings associated with the Company's Better Bank Initiative, income tax deductions, credit quality, the level of credit losses from lending commitments, net interest revenue, interest rates and interest rate sensitivity, economic conditions, repricing of loans and time deposits, loan loss experience, liquidity, the Company's expectations regarding actions by the Federal Home Loan Banks ("FHLB") and other agencies, capital resources, market risk, plans for investments in (and

BUSINESS

ITEM 1. BUSINESS Company Overview Simmons First National Corporation, an Arkansas corporation organized in 1968, is a financial holding company registered under the Bank Holding Company Act of 1956, as amended. The terms "Company," "we," "us," and "our" refer to Simmons First National Corporation and, where appropriate, its subsidiaries. The Company is headquartered in Pine Bluff, Arkansas, and had total consolidated assets of $27.3 billion, total consolidated loans of $16.8 billion, total consolidated deposits of $22.2 billion and equity capital of $3.4 billion, each as of December 31, 2023. The Company, through its subsidiaries, provides banking and other financial products and services in markets located in Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas. We seek to build shareholder value by, among other things, focusing on strong asset quality, maintaining strong capital, managing our liquidity position, improving our operational efficiency and opportunistically growing our business, both organically and through mergers with and acquisitions of other financial institutions. Our business philosophy centers on building strong, deep customer relationships through excellent customer service and integrity in our operations. While we have grown in recent years into a regional financial institution and one of the largest bank/financial holding companies headquartered in the State of Arkansas, we continue to emphasize, where practicable, a community-based mindset focused on local associates responding to local banking needs and making business decisions in the markets they serve. Those efforts, though, are buttressed by experienced, centralized support functions in select, critical areas. While we serve a variety of customers and industries, we are not dependent on any single customer or industry. Subsidiary Bank The Company's lead subsidiary, Simmons Bank ("Simmons Bank" or the "Bank"), is an Arkansas state-chartered bank that has been in operation