Simmons First National (SFNC) investor relations material

Executive summary

• Net income for Q1 2026 was $68.5M ($0.47 diluted EPS), up significantly year-over-year, with adjusted net income at $68.6M and adjusted EPS at $0.47, reflecting strong loan growth and expanding net interest margin.

• Achieved 10% annualized loan growth, supported by a robust commercial pipeline and broad-based portfolio expansion.

• Talent environment remains favorable, with new leadership hires in commercial and consumer segments driving deeper customer relationships and improved performance.

• Continued focus on efficiency and scalability through initiatives like the Better Bank Initiative, supporting organic growth and disciplined expense management.

• Deposit growth reached 6% annualized linked quarter, with a focus on low-cost core deposits and improved deposit mix.

Financial highlights

• Net interest margin (NIM) increased to 3.84%, up from 3.81% in Q4 2025 and 2.95% in Q1 2025, driven by lower funding costs and balance sheet remixing.

• Net interest income (FTE) for Q1 2026 was $200.2M, up 17.9% year-over-year, with total revenue at $241.4M, up from $209.6M in Q1 2025.

• Loan yields declined 7 basis points sequentially, but only 4 basis points year-over-year, despite three rate cuts.

• Deposit costs down 48 basis points year-over-year, with cumulative interest-bearing deposit beta down 63 basis points since rates began falling.

• Noninterest income was $44.2M, down from $51.7M in Q4 2025 and $46.2M in Q1 2025, mainly due to negative SBIC valuation adjustments and lower BOLI proceeds.

Outlook and guidance

• Management expects double-digit PPNR growth for full-year 2026, with NII guidance at 9%-11% growth and NIM expected in the mid-380s by year-end.

• Operating leverage is expected to exceed 5% for the full year, with strong confidence in achieving the upper end of guidance.

• Net charge-off guidance remains at 25 basis points for the year, with no broad-based credit deterioration observed.

• Management remains committed to disciplined pricing, conservative underwriting, and prudent loan growth.

• Net interest income sensitivity remains slightly asset sensitive, with hedging strategies in place.