Q4 2020 Investor Presentation
Provision and Non-interest Expense
Category
Q4-20 Linked Quarter Change
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Provision Expense
Management's Outlook
We expect lower provisioning in 2021, subject to the following:
1.
Loan Growth-expect mid single digit growth
Down $16.0 million
2.
Charge-off's - if not specifically reserved
Provision expense was lower in Q420 due to an improvement in
Moody's Economic Scenario Forecast, decline in loan portfolio
and a decline in non-performing loans.
3.
Moody's Economic Scenario Forecast:
Management's weighting for Q4:
• Moody's S1: 17%
⚫ Moody's Baseline: 68%
.
Moody's S2: 15%
Salaries and Employee Benefits
Occupancy Expense
Other operating Expense
Non-interest Expense
Down $5.4 million
Non-core-down $3.2 million from Q320 related to branch
rightsizing and other non-core items.
Core down $2.3 million, impact from efficiency initiatives and
year-end accrual adjustments.
Down $0.5 million
Non-core-up $0.7 million related to branch rightsizing and
other non-core items.
Core - down $1.2 million, impact from efficiency initiatives.
Up $15.0 million
Non-core-up $10.3 million related to branch rightsizing.
Core up $4.7 million, due to the special $3 million
contribution to the Simmons First Foundation and timing
differences in legal, audit and marketing expenses.
$128.1 Million, up $9.2 million
Non-core $12.5 million, up $8.8 million related to branch
rightsizing and other non-core items.
Core - $115.6 million, up $0.4 million.
Expect increase in Q121 due to first quarter timing of payroll
taxes and 401k expense.
Expect occupancy expense for 2021 to be down as a result of
the branch rightsizing initiative in 2020.
Enhanced emphasis on efficiencies throughout the Company.
We will continue to invest in our digital capacity.
Anticipate quarterly run-rate of approximately $114-$116
million in Q1 and $112-$115 million for each other quarter in
2021.
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