PINE BLUFF, Ark., April 19, 2017 (GLOBE NEWSWIRE) -- Simmons First National Corp. (NASDAQ:SFNC) today announced net income available to common shareholders of $22.1 million for the first quarter of 2017, a decrease of $1.4 million compared with the same quarter last year. Diluted earnings per share were $0.70, a decrease of $0.07.

Included in first quarter 2017 results were $412,000 in net after-tax merger-related and branch right-sizing costs. Excluding the impact of these items, core earnings were $22.5 million for the quarter and diluted core earnings per share were $0.71.

"We are satisfied with our operating results during the first quarter," said George A. Makris Jr., chairman and CEO. "We continue to experience excellent loan growth throughout our market.  While our core expense control remains relatively stable, our non-interest income experienced some usual seasonal declines along with a softer mortgage market during the first quarter. As we prepare for the $10 billion asset threshold, we have managed to offset most of our increases in audit and regulatory affairs expenses with economies gained because of our size and scale.

"We are excited about our previously announced mergers. As we have indicated, Simmons Bank will enter new and very attractive markets as a result of the Bank SNB and Southwest Bank mergers and will be able to expand in our current markets with the First South Bank merger. We look forward to closing these mergers and integrating these new markets."

Loans

Total loans, including those acquired, were $5.8 billion at March 31, 2017, an increase of $847 million, or 17.2 percent, compared with the same period in 2016. Legacy loans (all loans excluding acquired loans) grew $1.2 billion, or 33.4 percent. On a linked quarter basis, total loan growth was $144 million, including a seasonal reduction in credit card and agricultural production loans of $22.5 million.

Deposits

At March 31, 2017, total deposits were $6.8 billion, an increase of $709 million, or 11.7 percent, compared with the same period in 2016. Total non-time deposits were $5.5 billion, an increase of $743 million, or 15.5 percent, and comprised 82 percent of total deposits.

Net Interest Income

The company's net interest income for the first quarter of 2017 was $72.4 million, an increase of $2.1 million, or 3.1 percent, from the same period of 2016. The net interest income was negatively impacted by a $3.7 million decline in yield accretion on acquired loans. Included in interest income was the yield accretion recognized on acquired loans of $4.4 million and $8.1 million for the first quarter of 2017 and 2016, respectively. Net interest margin was 4.04 percent for the quarter ended March 31, 2017, a 37 basis-point decline from the same quarter of 2016. The company's core net interest margin, excluding the accretion, was 3.80 percent for the first quarter of 2017, a 12 basis-point decline from the same quarter of 2016. Provision for Loan Losses

Provision for loan losses for the first quarter of 2017 was $4.3 million, an increase of $1.5 million compared with the first quarter of 2016. The provision increase was necessary in order to maintain an appropriate allowance for loan losses for the company's growing legacy loan portfolio.

Non-Interest Income

Non-interest income for the first quarter was $30.1 million, an increase of $557,000 compared with the first quarter of 2016. The increase in non-interest income was due to additional trust income, service charge income, debit and credit card income resulting from internal growth and as a result of our most recent acquisition.

Non-Interest Expense

Non-interest expense for the first quarter of 2017 was $66.3 million, an increase of $4.5 million compared with the first quarter of 2016. Included in the quarter were $678,000 of merger-related expenses and branch rightsizing costs. Increases in occupancy expenses and other operating expenses are related to our most recent acquisition. The increases in professional services are related to the continued preparations for crossing the $10 billion asset threshold as a result of closing our three pending acquisitions.

Asset Quality

All acquired loans are recorded at their discounted net present value; therefore, they are excluded from the computations of the asset quality ratios for the legacy loan portfolio, except for their inclusion in total assets.

At March 31, 2017, the allowance for loan losses for legacy loans was $37.9 million. The company's allowance for loan losses on legacy loans at March 31, 2017 was 0.82 percent of total loans and 71 percent of non-performing loans. In the legacy portfolio, non-performing loans as a percent of total loans were 1.15 percent.

The allowance for loan losses for acquired loans was $435,000 and the acquired loan discount credit mark was $28.9 million. The allowances for loan losses and credit marks provide a total of $67.2 million of coverage, which equates to a total coverage ratio of 1.2 percent of gross loans. The ratio of credit mark and related allowance to acquired loans was 2.5 percent.

The 2017 annualized net charge-off ratio was 18 basis points.  Excluding credit cards, the net charge-off ratio was 11 basis points.

"In February, we executed a sale of 11 substandard loans, which were primarily acquired loans, with a net principal balance of $11 million," Makris said. "We recognized a loss of $676,000 on this sale. We continually explore options to manage the problem assets remaining from the acquired FDIC and Metropolitan portfolios as well as options to further reduce problem loans and expect to execute additional sales of assets." 

Capital

At March 31, 2017, common stockholders' equity was $1.2 billion, book value per share was $37.30 and tangible book value per share was $24.51. The company's ratio of stockholders' equity to total assets was 13.6 percent and its ratio of tangible common equity to tangible assets was 9.4 percent.

Simmons First National Corporation

Simmons First National Corp. is a financial holding company, headquartered in Pine Bluff, Ark., with total assets of $8.6 billion conducting financial operations throughout Arkansas, Kansas, Missouri and Tennessee.  The company through its subsidiaries offers comprehensive financial solutions delivered with a client-centric approach. The company's common stock trades on the NASDAQ Global Select Market under the symbol "SFNC."

Conference Call

Management will conduct a live conference call to review this information beginning at 11 a.m. CDT on Thursday, Apr. 20, 2017. Interested persons can listen to this call by dialing toll-free 1-866-298-7926 (United States and Canada only) and asking for the Simmons First National Corp. conference call, conference ID 2974437. In addition, the call will be available live or in recorded version on the company's website at www.simmonsbank.com.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles (GAAP). The company's management uses these non-GAAP financial measures in their analysis of the company's performance. These measures typically adjust GAAP performance measures to include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant non-core activities or nonrecurring transactions. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the company's core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

Forward-Looking Statements

Statements in this news release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any forward-looking statement speaks only as of the date of this news release, and we undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors, including, but not limited to, economic conditions, credit quality, interest rates, loan demand and changes in the assumptions used in making the forward-looking statements, could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect Simmons First National Corp.'s financial results is included in its Form 10-K filing with the Securities and Exchange Commission.

 

Simmons First National Corporation               SFNC  
Consolidated End of Period Balance Sheets              
For the Quarters Ended       Mar 31     Dec 31     Sep 30       Jun 30       Mar 31    
(Unaudited)     2017   2016   2016   2016   2016  
($ in thousands)                                          
ASSETS              
Cash and non-interest bearing balances due from banks   $ 103,875     $ 117,007     $ 112,572     $ 96,037     $ 118,468    
Interest bearing balances due from banks     201,406       168,652       324,951       151,570       100,593    
Federal funds sold           -       17,000       3,000       4,000    
Cash and cash equivalents     305,281       285,659       454,523       250,607       223,061    
Interest bearing balances due from banks - time     4,563       4,563       4,393       9,781       11,188    
Investment securities - held-to-maturity     431,176       462,096       496,594       632,154       674,502    
Investment securities - available-for-sale     1,257,813       1,157,354       1,024,206       821,372       857,673    
Mortgage loans held for sale     9,754       27,788       28,069       30,529       24,563    
Assets held in trading accounts     55       41       2,969       7,321       7,074    
Loans:            
Legacy loans     4,632,905       4,327,207       3,943,089       3,725,422       3,472,691    
Allowance for loan losses     (37,865 )     (36,286 )     (34,094 )     (33,523 )     (32,681 )  
Loans acquired (net of discount and allowance)            
Net loans     5,739,331       5,596,604       5,367,193       4,980,334       4,897,380    
Premises and equipment     221,880       199,359       192,523       183,362       192,327    
Premises held for sale     4,611       6,052       6,732       6,167       2,364    
Foreclosed assets     26,421       26,895       30,396       30,529       41,126    
Interest receivable     26,089       27,788       27,390       24,150       23,545    
Bank owned life insurance     139,439       138,620       138,298       130,943       130,092    
Goodwill     350,035       348,505       348,769       327,686       327,686    
Other intangible assets     51,408       52,959       54,268       50,329       51,783    
Other assets       58,782         65,773         50,669         48,955         72,589    
Total assets   $   8,626,638     $   8,400,056     $   8,226,992     $   7,534,219     $   7,536,953    
                                           
  LIABILITIES AND STOCKHOLDERS' EQUITY              
Deposits:            
Non-interest bearing transaction accounts   $ 1,554,675     $ 1,491,676     $ 1,473,420     $ 1,283,426     $ 1,274,816    
Interest bearing transaction accounts and savings deposits     3,987,730       3,956,483       3,815,939       3,538,808       3,524,808    
Time deposits less than $100,000     653,538       686,780       653,105       643,081       674,915    
Time deposits greater than $100,000       592,345         600,280         674,917         562,888         605,236    
Total deposits     6,788,288       6,735,219       6,617,381       6,028,203       6,079,775    
Federal funds purchased and securities sold            
under agreements to repurchase     110,007       115,029       124,289       103,038       97,429    
Other borrowings     441,074       273,159       215,276       191,827       176,829    
Subordinated debentures     60,503       60,397       60,290       60,184       60,077    
Accrued interest and other liabilities       55,877         65,141         62,615         60,256         50,859    
Total liabilities       7,455,749         7,248,945         7,079,851         6,443,508         6,464,969    
                                           
Stockholders' equity:            
Preferred stock     -       -       -       -       -    
Common stock     314       313       313       304       303    
Surplus     716,564       711,976       710,132       668,306       665,850    
Undivided profits     468,309       454,034       434,579       417,863       402,265    
Accumulated other comprehensive income (loss):            
Unrealized appreciation (depreciation) on AFS securities       (14,298 )       (15,212 )       2,117         4,238         3,566    
Total stockholders' equity       1,170,889         1,151,111         1,147,141         1,090,711         1,071,984    
Total liabilities and stockholders' equity   $   8,626,638     $   8,400,056     $   8,226,992     $   7,534,219     $   7,536,953    
                                           
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Simmons First National Corporation               SFNC    
Consolidated Statements of Income - Quarter-to-Date                
For the Quarters Ended     Mar 31   Dec 31   Sep 30   Jun 30   Mar 31  
(Unaudited)   2017   2016   2016   2016   2016  
($ in thousands, except per share data)                                
INTEREST INCOME                
Loans   $ 68,728   $ 70,887   $ 65,078   $ 63,009   $ 66,678  
Federal funds sold     5     11     19     17     10  
Investment securities     9,451     8,700     7,774     8,499     8,506  
Mortgage loans held for sale     126     230     299     295     278  
Assets held in trading accounts     -     3     4     3     6  
Interest bearing balances due from banks       117       234       244       77       144  
TOTAL INTEREST INCOME       78,427       80,065       73,418       71,900       75,622  
INTEREST EXPENSE                                  
Time deposits     2,015     2,023     1,767     1,741     1,636  
Other deposits     2,189     2,032     1,965     2,035     2,018  
Federal funds purchased and securities              
sold under agreements to repurchase     75     90     59     59     65  
Other borrowings     1,194     1,034     1,048     938     1,128  
Subordinated debentures       574       558       516       544       543  
TOTAL INTEREST EXPENSE       6,047       5,737       5,355       5,317       5,390  
NET INTEREST INCOME       72,380     74,328     68,063     66,583     70,232  
Provision for loan losses       4,307       4,332       8,294       4,616       2,823  
NET INTEREST INCOME AFTER PROVISION                                  
FOR LOAN LOSSES       68,073       69,996       59,769       61,967       67,409  
NON-INTEREST INCOME                                  
Trust income     4,212     4,282     3,873     3,656     3,631  
Service charges on deposit accounts     8,102     8,666     8,771     7,661     7,316  
Other service charges and fees     2,197     4,026     3,261     2,718     2,867  
Mortgage and SBA lending income     2,423     4,580     4,339     4,730     2,834  
Investment banking income     690     472     1,131     1,181     687  
Debit and credit card fees     7,934     8,027     7,825     7,688     7,200  
Bank owned life insurance income     818     895     606     826     997  
Gain on sale of securities, net     63     1,445     315     3,759     329  
Other income       3,621       3,722       6,755       4,669       3,642  
TOTAL NON-INTEREST INCOME       30,060       36,115       36,876       36,888       29,503  
NON-INTEREST EXPENSE                                  
Salaries and employee benefits     35,536     33,797     31,784     33,103     34,773  
Occupancy expense, net     4,663     4,516     4,690     4,990     4,471  
Furniture and equipment expense     4,443     4,387     4,272     4,077     3,947  
Other real estate and foreclosure expense     589     679     1,849     967     966  
Deposit insurance     680     89     1,136     1,096     1,148  
Merger-related costs     524     2,846     1,524     372     93  
Other operating expenses       19,887       20,411       17,179       19,532       16,391  
TOTAL NON-INTEREST EXPENSE       66,322       66,725       62,434       64,137       61,789  
NET INCOME BEFORE INCOME TAXES       31,811     39,386     34,211     34,718     35,123  
Provision for income taxes       9,691       12,415       10,782       11,809       11,618  
NET INCOME       22,120     26,971     23,429     22,909     23,505  
Preferred stock dividends       -        -        -        -        24  
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS     $   22,120   $   26,971   $   23,429   $   22,909   $   23,481  
BASIC EARNINGS PER SHARE     $   0.71   $   0.86   $   0.77   $   0.75   $   0.77  
DILUTED EARNINGS PER SHARE     $   0.70   $   0.85   $   0.76   $   0.75   $   0.77  
                                 
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Simmons First National Corporation           SFNC  
Consolidated Risk-Based Capital              
For the Quarters Ended     Mar 31   Dec 31   Sep 30   Jun 30   Mar 31  
(Unaudited)     2017   2016   2016   2016   2016  
($ in thousands)                                          
Tier 1 capital            
Stockholders' equity   $ 1,170,889     $ 1,151,111     $ 1,147,141     $ 1,090,711     $ 1,071,984    
Trust preferred securities, net allowable     60,503       60,397       60,290       60,184       60,077    
Disallowed intangible assets, net of deferred tax     (361,944 )     (354,028 )     (354,582 )     (334,395 )     (335,166 )  
Unrealized loss (gain) on AFS securities     14,298       15,212       (2,117 )     (4,238 )     (3,566 )  
Other       -          15         -          -          -     
Total Tier 1 capital       883,746         872,707         850,732         812,262         793,329    
                                           
Tier 2 capital            
Qualifying allowance for loan losses and            
reserve for unfunded commitments       41,303         40,241         38,050         37,240         36,398    
Total Tier 2 capital       41,305         40,241         38,050         37,240         36,398    
Total risk-based capital   $   925,051     $   912,948     $   888,782     $   849,502     $   829,727    
                                           
Common equity            
Tier 1 capital   $ 883,746     $ 872,707     $ 850,732     $ 812,262     $ 793,329    
Less: Trust preferred securities       (60,503 )       (60,397 )       (60,290 )       (60,184 )       (60,077 )  
Total common equity   $   823,243     $   812,310     $   790,442     $   752,078     $   733,252    
                                           
Risk weighted assets   $   6,425,150     $   6,039,034     $   5,724,052     $   5,343,355     $   5,293,395    
                                           
Adjusted average assets for leverage ratio   $   8,076,525     $   7,966,681     $   7,355,702     $   7,185,633     $   7,167,839    
                                           
Ratios at end of quarter            
Equity to assets     13.57 %     13.70 %     13.94 %     14.48 %     14.22 %  
Tangible common equity to tangible assets (1)     9.35 %     9.37 %     9.51 %     9.96 %     9.68 %  
Common equity Tier 1 ratio (CET1)     12.81 %     13.45 %     13.81 %     14.08 %     13.85 %  
Tier 1 leverage ratio     10.94 %     10.95 %     11.57 %     11.30 %     11.07 %  
Tier 1 risk-based capital ratio     13.75 %     14.45 %     14.86 %     15.20 %     14.99 %  
Total risk-based capital ratio     14.40 %     15.12 %     15.53 %     15.90 %     15.67 %  
             
             
(1) Calculations of tangible common equity to tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release.
             
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Simmons First National Corporation           SFNC    
Consolidated Loans and Investments                
For the Quarters Ended     Mar 31   Dec 31   Sep 30   Jun 30   Mar 31    
(Unaudited)     2017   2016   2016   2016   2016    
($ in thousands)                                  
Legacy Loan Portfolio - End of Period (1)              
Consumer              
Credit cards   $ 171,947   $ 184,591   $ 175,032   $ 171,468   $ 167,803    
Other consumer     349,200     303,972     275,947     248,018     227,480    
Total consumer     521,147     488,563     450,979     419,486     395,283    
Real Estate                                  
Construction     365,051     336,759     304,082     330,666     300,042    
Single-family residential     957,717     904,245     841,958     785,289     746,754    
Other commercial     1,959,677     1,787,075     1,521,132     1,414,663     1,327,372    
Total real estate     3,282,445     3,028,079     2,667,172     2,530,618     2,374,168    
Commercial              
Commercial     657,606     639,525     607,738     577,771     551,695    
Agricultural       141,125       150,378       203,529       187,047       143,033    
Total commercial     798,731     789,903     811,267     764,818     694,728    
Other       30,582       20,662       13,671       10,500       8,512    
Total Loans   $   4,632,905   $   4,327,207   $   3,943,089   $   3,725,422   $   3,472,691    
                                   
  (1) Excludes all acquired loans.                
               
Investment Securities - End of Period              
Held-to-Maturity                
U.S. Government agencies   $ 68,895   $ 76,875   $ 80,849   $ 199,505   $ 223,484    
Mortgage-backed securities     18,743     19,773     21,454     22,612     23,734    
State and political subdivisions     341,854     362,532     391,495     407,273     424,586    
Other securities     1,684     2,916     2,796     2,765     2,698    
Total held-to-maturity     431,176     462,096     496,594     632,155     674,502    
Available-for-Sale                                    
U.S. Treasury   $ -   $ 300   $ 63,985   $ 4,305   $ 4,302    
U.S. Government agencies     142,356     137,771     148,781     58,113     78,308    
Mortgage-backed securities     927,277     868,324     699,748     652,425     722,982    
State and political subdivisions     130,747     102,943     67,019     64,836     11,260    
FHLB stock     19,149     12,235     11,235     8,781     7,838    
Other securities     38,285     35,781     33,438     32,911     32,983    
Total available-for-sale     1,257,814     1,157,354     1,024,206     821,371     857,673    
Total investment securities   $ 1,688,990   $ 1,619,450   $ 1,520,800   $ 1,453,526   $ 1,532,175    
Fair value - HTM investment securities   $ 435,701   $ 465,960   $ 508,910   $ 647,293   $ 686,835    
                                   
Investment Securities - QTD Average                                  
Taxable securities   $ 1,185,794   $ 1,146,703   $ 963,150   $ 1,059,802   $ 1,067,302    
Tax exempt securities     455,481     467,757     466,782     443,492     439,370    
Total investment securities - QTD average   $ 1,641,275   $ 1,614,460   $ 1,429,932   $ 1,503,294   $ 1,506,672    
                                   
  Page 4    
               

 
Simmons First National Corporation             SFNC    
Consolidated Loans and Credit Coverage              
For the Quarters Ended   Mar 31   Dec 31   Sep 30   Jun 30   Mar 31    
(Unaudited)   2017   2016   2016   2016   2016    
  ($ in thousands)                                            
LOANS              
Legacy loans $ 4,632,905     $ 4,327,207     $ 3,943,089     $ 3,725,422     $ 3,472,691      
Allowance for loan losses (legacy loans)     (37,865 )       (36,286 )       (34,094 )       (33,523 )       (32,681 )    
Legacy loans (net of allowance)   4,595,040       4,290,921       3,908,995       3,691,899       3,440,010      
Loans acquired   1,173,667       1,342,099       1,502,051       1,327,683       1,503,482      
Credit discount   (28,941 )     (35,462 )     (42,899 )     (38,294 )     (45,158 )    
Allowance for loan losses (loans acquired)     (435 )       (954 )       (954 )       (954 )       (954 )    
Loans acquired (net of discount and allowance)     1,144,291         1,305,683         1,458,198         1,288,435         1,457,370      
Net loans $   5,739,331     $   5,596,604     $   5,367,193     $   4,980,334     $   4,897,380      
                                           
             
Loan Coverage Ratios              
Allowance for loan losses to legacy loans   0.82 %     0.84 %     0.86 %     0.90 %     0.94 %    
             
Discount for credit losses and allowance on loans acquired            
to total loans acquired plus discount for credit losses            
and allowance on loans acquired (non-GAAP) (1)   2.50 %     2.71 %     2.92 %     2.96 %     3.07 %    
             
Total allowance and credit coverage (non-GAAP) (1)   1.16 %     1.28 %     1.43 %     1.44 %     1.58 %    
             
             
(1) Calculations of the non-GAAP loan coverage ratios and the reconciliations to GAAP are included in the schedules accompanying this release.  
 
             
  Page 5  
             

 
Simmons First National Corporation           SFNC  
Consolidated Allowance and Asset Quality            
For the Quarters Ended   Mar 31   Dec 31   Sep 30   Jun 30   Mar 31  
(Unaudited)   2017   2016   2016   2016   2016  
($ in thousands)                                        
Allowance for Loan Losses (Legacy Loans)          
Balance, beginning of quarter $ 36,286     $ 34,094     $ 33,523     $ 32,681     $ 31,351    
Loans charged off                                        
Credit cards   1,044       935       699       702       859    
Other consumer   1,174       493       600       489       393    
Real estate   656       167       6,297       824       229    
Commercial   292       913       284       2,283       476    
Total loans charged off   3,166       2,508       7,880       4,298       1,957    
                                         
Recoveries of loans previously charged off          
Credit cards   236       213       199       253       242    
Other consumer   690       158       106       149       103    
Real estate   232       73       55       111       112    
Commercial   30       28       12       318       7    
Total recoveries   1,188       472       372       831       464    
Net loans charged off   1,978       2,036       7,508       3,467       1,493    
Provision for loan losses   3,557       4,228       8,079       4,309       2,823    
Balance, end of quarter $ 37,865     $ 36,286     $ 34,094     $ 33,523     $ 32,681    
                                         
Non-performing assets (1) (2)          
Non-performing loans          
Nonaccrual loans   52,913       39,104       37,392       43,305       34,244    
Loans past due 90 days or more   231       299       144       227       881    
Total non-performing loans   53,144       39,403       37,536       43,532       35,125    
Other non-performing assets                                        
Foreclosed assets held for sale (2)   26,421       26,895       30,396       30,529       41,126    
Other non-performing assets   352       471       621       519       256    
Total other non-performing assets   26,773       27,366       31,017       31,048       41,382    
Total non-performing assets $ 79,917     $ 66,769     $ 68,553     $ 74,580     $ 76,507    
Performing TDRs (troubled debt restructurings) $ 10,833     $ 10,998     $ 13,604     $ 10,887     $ 10,759    
                                         
Ratios (1) (2)          
Allowance for loan losses to total loans   0.82 %     0.84 %     0.86 %     0.90 %     0.94 %  
Allowance for loan losses to non-performing loans   71 %     92 %     91 %     77 %     93 %  
Non-performing loans to total loans   1.15 %     0.91 %     0.95 %     1.17 %     1.01 %  
Non-performing assets (including performing TDRs)          
to total assets   1.05 %     0.93 %     1.00 %     1.13 %     1.16 %  
Non-performing assets to total assets   0.93 %     0.79 %     0.83 %     0.99 %     1.02 %  
Annualized net charge offs to total loans   0.18 %     0.20 %     0.82 %     0.39 %     0.18 %  
Annualized net credit card charge offs to          
total credit card loans   1.84 %     1.66 %     1.14 %     1.07 %     1.46 %  
Annualized net charge offs to total loans          
(excluding credit cards)   0.11 %     0.14 %     0.81 %     0.36 %     0.11 %  
           
  (1) Excludes all acquired loans, except for their inclusion in total assets.        
  (2) Includes acquired foreclosed assets held for sale.            
  Page 6  
           

 
Simmons First National Corporation                       SFNC  
Consolidated - Average Balance Sheet and Net Interest Income Analysis              
For the Quarters Ended                        
(Unaudited)                        
  Three Months Ended Mar 2017   Three Months Ended Dec 2016   Three Months Ended Mar 2016
  ($ in thousands)   Average Balance   Income/ Expense   Yield/ Rate   Average Balance   Income/ Expense   Yield/ Rate   Average Balance   Income/ Expense   Yield/ Rate
ASSETS                                                    
Earning assets:                      
Interest bearing balances due from banks $ 131,079   $ 117   0.36 %   $ 243,396   $ 234   0.38 %   $ 167,381   $ 144   0.35 %
Federal funds sold   249     5   8.14 %     5,381     11   0.81 %     1,839     10   2.19 %
Investment securities - taxable   1,292,441     6,477   2.03 %     1,236,864     5,681   1.83 %     1,076,855     5,311   1.98 %
Investment securities - non-taxable (FTE)   348,834     4,884   5.68 %     377,596     4,959   5.22 %     429,817     5,249   4.91 %
Mortgage loans held for sale   11,473     126   4.45 %     23,307     230   3.93 %     26,616     278   4.20 %
Assets held in trading accounts   48     -   0.00 %     1,774     3   0.67 %     5,196     6   0.46 %
Loans, including acquired loans     5,685,585       68,783   4.91 %       5,484,918       70,941   5.15 %       4,889,685       66,708   5.49 %
Total interest earning assets (FTE)   7,469,709       80,392   4.36 %     7,373,236       82,059   4.43 %     6,597,389       77,706   4.74 %
Non-earning assets     944,761                   935,222                   901,796            
Total assets $   8,414,470         $   8,308,458         $   7,499,185      
                                                     
LIABILITIES AND STOCKHOLDERS' EQUITY                    
Interest bearing liabilities:                      
Interest bearing transaction and                      
savings accounts $ 3,950,169   $ 2,189   0.22 %   $ 3,895,367   $ 2,032   0.21 %   $ 3,484,571   $ 2,018   0.23 %
Time deposits     1,262,430       2,015   0.65 %       1,292,961       2,023   0.62 %       1,303,614       1,636   0.50 %
Total interest bearing deposits   5,212,599     4,204   0.33 %     5,188,328     4,055   0.31 %     4,788,185     3,654   0.31 %
Federal funds purchased and securities                                                    
sold under agreement to repurchase   111,474     75   0.27 %     124,323     90   0.29 %     113,551     65   0.23 %
Other borrowings   345,664     1,194   1.40 %     203,615     1,034   2.02 %     184,000     1,128   2.47 %
Subordinated debentures     60,452       574   3.85 %       60,345       558   3.68 %       60,109       543   3.63 %
Total interest bearing liabilities   5,730,189       6,047   0.43 %     5,576,611       5,737   0.41 %     5,145,845       5,390   0.42 %
Non-interest bearing liabilities:                                                    
Non-interest bearing deposits   1,466,501           1,515,853           1,225,311      
Other liabilities     51,307             59,061             53,240      
Total liabilities   7,247,997           7,151,525           6,424,396      
Stockholders' equity     1,166,473             1,156,933             1,074,789      
Total liabilities and stockholders' equity $   8,414,470         $   8,308,458         $   7,499,185      
Net interest income (FTE)       $   74,345             $   76,322             $   72,316    
Net interest spread (FTE)     3.93 %       4.02 %       4.32 %
Net interest margin (FTE) - quarter-to-date     4.04 %       4.12 %       4.41 %
                       
Net interest margin (FTE) - year-to-date     4.04 %       4.19 %       4.41 %
                       
Core net interest margin (FTE) - quarter-to-date (1)     3.80 %       3.76 %       3.92 %
Core loan yield (FTE) - quarter-to-date (1)     4.59 %       4.67 %       4.82 %
                       
Core net interest margin (FTE) - year-to-date (1)     3.80 %       3.83 %       3.92 %
Core loan yield (FTE) - year-to-date (1)     4.59 %       4.72 %       4.82 %
                       
(1) Calculations of core net interest margin and core loan yield and the reconciliations to GAAP are included in the schedules accompanying this release.
Page 7
                       

 
Simmons First National Corporation         SFNC  
Consolidated - Selected Financial Data            
For the Quarters Ended   Mar 31   Dec 31   Sep 30   Jun 30   Mar 31  
(Unaudited)   2017   2016   2016   2016   2016  
($ in thousands, except share data)                                        
QUARTER-TO-DATE          
Financial Highlights - GAAP          
Net Income $ 22,120     $ 26,971     $ 23,429     $ 22,909     $ 23,481    
Diluted earnings per share   0.70       0.85       0.76       0.75       0.77    
Return on average assets   1.07 %     1.29 %     1.21 %     1.22 %     1.26 %  
Return on average common equity   7.69 %     9.27 %     8.36 %     8.48 %     8.87 %  
Return on tangible common equity   12.22 %     14.71 %     13.26 %     13.52 %     14.30 %  
Net interest margin (FTE)   4.04 %     4.12 %     4.08 %     4.14 %     4.41 %  
FTE adjustment   1,965       1,994       1,969       1,675       2,084    
Amortization of intangibles   1,550       1,533       1,503       1,451       1,455    
Amortization of intangibles, net of taxes   942       932       913       882       884    
Average diluted shares outstanding   31,612,900       31,592,713       30,843,714       30,452,285       30,481,604    
Cash dividends declared per common share   0.25       0.24       0.24       0.24       0.24    
Financial Highlights - Core (non-GAAP)          
Core earnings (excludes non-core items) (1) $ 22,532     $ 28,751     $ 24,382     $ 25,091     $ 23,185    
Diluted core earnings per share (1)   0.71       0.91       0.79       0.82       0.76    
Core net interest margin (FTE) (2)   3.80 %     3.76 %     3.79 %     3.86 %     3.92 %  
Efficiency ratio (1)   60.92 %     55.47 %     53.94 %     57.33 %     58.73 %  
Core return on average assets (1)   1.09 %     1.38 %     1.26 %     1.34 %     1.24 %  
Core return on average common equity (1)   7.83 %     9.89 %     8.71 %     9.29 %     8.75 %  
Core return on tangible common equity (1)   12.44 %     15.65 %     13.78 %     14.76 %     14.13 %  
YEAR-TO-DATE          
Financial Highlights - GAAP          
Net Income $ 22,120     $ 96,790     $ 69,819     $ 46,390     $ 23,481    
Diluted earnings per share   0.70       3.13       2.28       1.52       0.77    
Return on average assets   1.07 %     1.25 %     1.23 %     1.24 %     1.26 %  
Return on average common equity   7.69 %     8.75 %     8.57 %     8.67 %     8.87 %  
Return on tangible common equity   12.22 %     13.92 %     13.68 %     13.90 %     14.30 %  
Net interest margin (FTE)   4.04 %     4.19 %     4.21 %     4.28 %     4.41 %  
FTE adjustment   1,965       7,722       5,728       3,759       2,084    
Amortization of intangibles   1,550       5,942       4,409       2,906       1,455    
Amortization of intangibles, net of taxes   942       3,611       2,679       1,766       884    
Average diluted shares outstanding   31,612,900       30,963,546       30,656,882       30,438,939       30,481,604    
Cash dividends declared per common share   0.25       0.96       0.72       0.48       0.24    
Financial Highlights - Core (non-GAAP)          
Core earnings (excludes non-core items) (1) $ 22,532     $ 101,409     $ 72,658     $ 48,276     $ 23,185    
Diluted core earnings per share (1)   0.71       3.28       2.37       1.59       0.76    
Core net interest margin (FTE) (2)   3.80 %     3.83 %     3.86 %     3.89 %     3.92 %  
Efficiency ratio (1)   60.92 %     56.32 %     56.62 %     58.03 %     58.73 %  
Core return on average assets (1)   1.09 %     1.31 %     1.28 %     1.29 %     1.24 %  
Core return on average common equity (1)   7.83 %     9.17 %     8.91 %     9.02 %     8.75 %  
Core return on tangible common equity (1)   12.44 %     14.56 %     14.22 %     14.45 %     14.13 %  
END OF PERIOD          
Book value per share $ 37.30     $ 36.80     $ 36.69     $ 35.86     $ 35.35    
Tangible book value per share   24.51       23.97       23.80       23.43       22.84    
Shares outstanding   31,388,357       31,277,723       31,267,614       30,415,980       30,324,499    
Full-time equivalent employees   1,876       1,875       1,985       1,880       1,931    
Total number of ATM's   187       186       186       174       185    
Total number of financial centers   151       150       150       140       149    
           
(1) Core earnings exclude non-core items, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release.  
 
(2) Excludes accretable yield adjustment on loans, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release.  
  Page 8  
           

 
Simmons First National Corporation           SFNC  
Consolidated - Reconciliation of Core Earnings (non-GAAP)          
For the Quarters Ended   Mar 31   Dec 31    S ep 30   Jun 30   Mar 31  
(Unaudited)   2017     2016     2016     2016     2016    
($ in thousands, except per share data)                                        
QUARTER-TO-DATE            
Net Income $ 22,120     $ 26,971     $ 23,429     $ 22,909     $ 23,481    
Non-core items            
Gain from early retirement of trust preferred securities   -       -       -       -       (594 )  
Merger-related costs   524       2,846       1,524       372       93    
Branch right-sizing   154       83       43       3,219       14    
Tax effect (1)   (266 )     (1,149 )     (614 )     (1,409 )     191    
Net non-core items   412       1,780       953       2,182       (296 )  
Core earnings (non-GAAP) $ 22,532     $ 28,751     $ 24,382     $ 25,091     $ 23,185    
                                         
Diluted earnings per share $ 0.70     $ 0.85     $ 0.76     $ 0.75     $ 0.77    
Non-core items            
Gain from early retirement of trust preferred securities   -       -       -       -       (0.02 )  
Merger-related costs   0.02       0.09       0.05       0.01       -    
Branch right-sizing   -       -       -       0.11       -    
Tax effect (1)   (0.01 )     (0.03 )     (0.02 )     (0.05 )     0.01    
Net non-core items   0.01       0.06       0.03       0.07       (0.01 )  
Core earnings (non-GAAP) $ 0.71     $ 0.91     $ 0.79     $ 0.82     $ 0.76    
                                         
YEAR-TO-DATE            
Net Income $ 22,120     $ 96,790     $ 69,819     $ 46,390     $ 23,481    
Non-core items            
Gain from early retirement of trust preferred securities   -       (594 )     (594 )     (594 )     (594 )  
Merger-related costs   524       4,835       1,989       465       93    
Branch right-sizing   154       3,359       3,276       3,233       14    
Tax effect (1)   (266 )     (2,981 )     (1,832 )     (1,218 )     191    
Net non-core items   412       4,619       2,839       1,886       (296 )  
Core earnings (non-GAAP) $ 22,532     $ 101,409     $ 72,658     $ 48,276     $ 23,185    
                                         
Diluted earnings per share $ 0.70     $ 3.13     $ 2.28     $ 1.52     $ 0.77    
Non-core items            
Gain from early retirement of trust preferred securities   -       (0.02 )     (0.02 )     (0.02 )     (0.02 )  
Merger-related costs   0.02       0.16       0.06       0.02       -    
Branch right-sizing   -       0.11       0.11       0.11       -    
Tax effect (1)   (0.01 )     (0.10 )     (0.06 )     (0.04 )     0.01    
Net non-core items   0.01       0.15       0.09       0.07       (0.01 )  
Core earnings (non-GAAP) $ 0.71     $ 3.28     $ 2.37     $ 1.59     $ 0.76    
                                         
  (1) Effective tax rate of 39.225%, adjusted for non-deductible merger-related costs.          
             
  Page 9    
             

 
Simmons First National Corporation           SFNC  
  Reconciliation Of Non-GAAP Financial Measures - End of Period          
  For the Quarters Ended              
  (Unaudited)   Mar 31   Dec 31   Sept 30     Jun 30     Mar 31  
  2017   2016   2016   2016   2016   
($ in thousands, except per share data)                                        
             
Calculation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets      
             
Total stockholders' equity $   1,170,889     $   1,151,111     $   1,147,141     $   1,090,711     $   1,071,984    
Preferred stock     -           -           -           -          -     
Total common stockholders' equity     1,170,889         1,151,111         1,147,141         1,090,711         1,071,984    
Intangible assets:            
  Goodwill     (350,035 )       (348,505 )       (348,769 )       (327,686 )       (327,686 )  
  Other intangible assets     (51,408 )       (52,959 )       (54,268 )       (50,329 )       (51,783 )  
Total intangibles     (401,443 )       (401,464 )       (403,037 )       (378,015 )       (379,469 )  
Tangible common stockholders' equity $   769,446     $   749,647     $   744,104     $   712,696     $   692,515    
                                         
Total assets $   8,626,638     $   8,400,056     $   8,226,992     $   7,534,219     $   7,536,953    
Intangible assets:                                        
  Goodwill     (350,035 )       (348,505 )       (348,769 )       (327,686 )       (327,686 )  
  Other intangible assets     (51,408 )       (52,959 )       (54,268 )       (50,329 )       (51,783 )  
Total intangibles     (401,443 )       (401,464 )       (403,037 )       (378,015 )       (379,469 )  
Tangible assets $   8,225,195     $   7,998,592     $   7,823,955     $   7,156,204     $   7,157,484    
                                         
Ratio of equity to assets   13.57 %     13.70 %     13.94 %     14.48 %     14.22 %  
Ratio of tangible common equity to tangible assets   9.35 %     9.37 %     9.51 %     9.96 %     9.68 %  
                                         
Calculation of Discount for credit losses and allowance on loans acquired to total loans acquired plus        
  discount for credit losses and allowance on loans acquired            
             
Credit discount on acquired loans $   28,941     $   35,462     $   42,899     $   38,294     $   45,158    
Allowance for loan losses on acquired loans     435         954         954         954         954    
Total credit discount and ALLL on acquired loans $   29,376     $   36,416     $   43,853     $   39,248     $   46,112    
Total loans acquired $   1,173,667     $   1,342,099     $   1,502,051     $   1,327,683     $   1,503,482    
Discount and ALLL on acquired loans to acquired loans   2.50 %     2.71 %     2.92 %     2.96 %     3.07 %  
                                         
Calculation of Total Allowance and Credit Coverage            
             
Allowance for loan losses $   37,865     $   36,286     $   34,094     $   33,523     $   32,681    
Total credit discount and ALLL on acquired loans     29,376         36,416         43,853         39,248         46,112    
Total allowance and credit discount $   67,241     $   72,702     $   77,947     $   72,771     $   78,793    
Total loans $   5,806,572     $   5,669,306     $   5,445,140     $   5,053,105     $   4,976,173    
Total allowance and credit coverage   1.16 %     1.28 %     1.43 %     1.44 %     1.58 %  
                                         
Calculation of Tangible Book Value per Share            
             
Total common stockholders' equity $   1,170,889     $   1,151,111     $   1,147,141     $   1,090,711     $   1,071,984    
Intangible assets:            
  Goodwill     (350,035 )       (348,505 )       (348,769 )       (327,686 )       (327,686 )  
  Other intangible assets     (51,408 )       (52,959 )       (54,268 )       (50,329 )       (51,783 )  
Total intangibles     (401,443 )       (401,464 )       (403,037 )       (378,015 )       (379,469 )  
Tangible common stockholders' equity $   769,446     $   749,647     $   744,104     $   712,696     $   692,515    
Shares of common stock outstanding     31,388,357         31,277,723         31,267,614         30,415,980         30,324,499    
Book value per common share $   37.30     $   36.80     $   36.69     $   35.86     $   35.35    
Tangible book value per common share $   24.51     $   23.97     $   23.80     $   23.43     $   22.84    
                                         
  Page 10    

 
Simmons First National Corporation         SFNC    
  Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date          
  For the Quarters Ended              
  (Unaudited)     Mar 31     Dec 31     Sept 30     Jun 30     Mar 31  
  2017   2016   2016   2016   2016  
($ in thousands)                                        
Calculation of Core Return on Average Assets            
             
Net income available to common stockholders $ 22,120     $ 26,971     $ 23,429     $ 22,909     $ 23,481    
Net non-core items, net of taxes, adjustment   412       1,780       953       2,182       (296 )  
Core earnings $ 22,532     $ 28,751     $ 24,382     $ 25,091     $ 23,185    
                                         
Average total assets $ 8,414,470     $ 8,308,458     $ 7,703,837     $ 7,522,133     $ 7,499,185    
                                         
Return on average assets   1.07 %     1.29 %     1.21 %     1.22 %     1.26 %  
Core return on average assets   1.09 %