Simmons First National Corporation Q2 FY2025 earnings call

• NIM expansion driven by repricing on the asset side, with loan pipeline and production remaining strong though considering pricing discipline. • Deposit side is a remixing story with good trends from higher cost to lower cost deposits, but repricing opportunity on deposits is fading. • Significant investments in talent, technology, and automation to enable the business and improve associate and customer experience. • Strong expense discipline observed, with investments in talent as a key deployment of savings from efficiency efforts.

• Confident in executing towards performance targets with acceleration in performance improvement exceeding internal expectations. • On asset side, continued repricing opportunity, strong loan pipeline and production but considering pricing discipline. • On deposit side, remixing from higher cost to lower cost deposits continues but repricing opportunity is fading. • Paydown environment expected to be consistent with first half of the year, maybe not at as high a level.

Q: Wanted to start on guidance. Any expectations for 2025 back half changed?

A: Historically provide guidance in Jan, trends in Q2 speak for themselves, confident in executing towards targets.

Q: NIM expansion, room to continue? Deposit base?

A: Asset side: repricing story continues, loan pipeline strong but pricing discipline affects growth. Liability side: deposit remixing from higher to lower cost, but repricing opportunity on deposits fading.

Q: Payoff outlook over back half?

A: Elevated payoffs in Q1 and Q2, expect consistent with first half, maybe not as high.

Q: Lower pipeline, attribute?

A: Pull forward late in Q1 due to tariff threats, seasonality in agri sector.

Q: Hiring environment, talent in Nashville and Texas?

A: Good hiring environment, investing in talent, technology, expecting disruption in marketplace to create opportunities.

Q: Unfunded commitments and loan growth?

A: Unfunded commitments indicate loan growth potential, C&I activity in pipeline.

Q: CRE classifieds ticked up?

A: No standout, credit picture stable, past dues trends good.