Simmons First Announces Third Quarter Earnings

PINE BLUFF, Ark., Oct. 21, 2010 (GLOBE NEWSWIRE) -- Simmons First National Corporation (Nasdaq:SFNC) today announced third quarter net income of $7.6 million, compared to $7.7 million for the same period in 2009. Diluted earnings per share for the third quarter of 2010 were $0.44, compared to $0.54 for the third quarter of 2009. Net income for the nine months ended September 30, 2010, was $20.6 million, or $1.19 diluted earnings per share.

"Overall, we are pleased with our third quarter results. Highlights of the quarter include record net interest income, improvement in our net interest margin and continued good asset quality compared to the rest of the industry," commented J. Thomas May, Chairman and CEO. "While the impact of our 2009 stock offering was dilutive to our third quarter EPS by approximately $0.09, the excess capital positions us to continue to take advantage of unprecedented acquisition opportunities through FDIC assisted transactions of failed banks. We have seen the dilutive impact of the offering over the past three quarters; in contrast, we will see the accretive impact from our two acquisitions beginning in the fourth quarter."

On October 15, 2010, the Company announced that its wholly-owned bank subsidiary, Simmons First National Bank, entered into a purchase and assumption agreement with loss share arrangements with the Federal Deposit Insurance Corporation ("FDIC") to purchase substantially all of the assets and to assume substantially all of the deposits and certain other liabilities of Security Savings Bank, FSB ("SSB") in Olathe, Kansas. As a result of this acquisition, the Company expands its footprint into the state of Kansas for the first time, with nine branches located in the communities of Olathe, Overland Park, Leawood, Salina and Wichita.

The assets of SSB were purchased from the FDIC at a discount of $46.5 million, or approximately 10.9% of total assets. All deposits were acquired with no deposit premium. Through the loss share provisions of the purchase and assumption agreement, the FDIC will reimburse the Company for 80% of the losses it incurs on the disposition of loans and foreclosed real estate on all covered assets. The final valuation and purchase price of acquired assets and liabilities will be finally determined upon completion of appropriate valuation processes.