PINE BLUFF, Ark., Oct. 23, 2014 (GLOBE NEWSWIRE) -- Simmons First National Corporation (Nasdaq:SFNC) today announced record core earnings of $10.7 million for the third quarter of 2014, an increase of $3.3 million, or 45.0%, compared to the same quarter last year. Diluted core earnings per share were a record $0.63, an increase of $0.18, or 40.0%. Core earnings exclude $1.9 million in net after-tax expenses. Including the non-core items, net income was $8.8 million and diluted earnings per share were $0.52.

Year-to-date core earnings were $27.3 million, an increase of $7.5 million, or 37.6%, compared to the same period of 2013. Year-to-date diluted core earnings per share were $1.65, an increase of $0.44, or 36.4%. Year-to-date net income was $23.0 million, or $1.39 diluted earnings per share.

"We are pleased with the financial results from another active quarter. We closed our acquisition of Delta Trust & Bank at the end of August and have our systems conversion scheduled tomorrow. We completed our legacy charter consolidation into Simmons Bank, and again reported record core earnings and record core earnings per share," commented George A. Makris, Jr., Chairman and CEO.

Loans

Total loans, including those acquired, were $2.8 billion at September 30, 2014, an increase of $799 million, or 40.8%, compared to the same period in 2013. Acquired loans increased by $577 million, net of discounts, while legacy loans (all loans excluding acquired loans) grew $222 million, or 12.8%. "We remain encouraged by the consistent double digit legacy loan growth we have seen this year. We continue to achieve nice loan growth in virtually every market we serve, specifically in St. Louis, Wichita, Central Arkansas and in our national equipment finance program," added Makris.

Deposits

At September 30, 2014, total deposits were $3.9 billion, an increase of $1.1 billion, or 37.7%, compared to the same period in 2013. Total non-time deposits totaled $2.9 billion, or 73% of total deposits.

Net Interest Income

The Company's net interest income for the third quarter of 2014 was $41.8 million, an increase of $10.2 million, or 32.3%, from the same period of 2013. This increase was driven by growth in the legacy loan portfolio and earning assets acquired through the Metropolitan and Delta Trust transactions. Net interest margin was 4.36% for the quarter ended September 30, 2014, a 9 basis point increase from the same quarter of 2013. Included in interest income for both periods was the additional yield accretion recognized as a result of updated estimates of the cash flows of the loan pools acquired in the Company's FDIC-assisted transactions. Each quarter, the Company estimates the cash flows expected to be collected from the acquired loan pools, and adjustments may or may not be required. The cash flows estimate has increased based on payment histories and reduced loss expectations of the loan pools. This resulted in increased interest income that is spread on a level-yield basis over the remaining expected lives of the loan pools. The increases in expected cash flows also reduce the amount of expected reimbursements under the loss sharing agreements with the FDIC, which are recorded as indemnification assets.

The impact of the adjustments on the Company's financial results for the current reporting period is shown below:

  Three Months Ended Nine Months Ended
(In thousands) September 30 September 30
  2014 2013 2014 2013
Impact on net interest income $ 4,974 $ 4,005 $ 18,216 $ 10,102
Non-interest income (3,724) (3,844) (17,570) (9,734)
Net impact to pre-tax income $ 1,250 $ 161 $ 646 $ 368

Because these adjustments will be recognized over the remaining lives of the loan pools and the remainder of the loss sharing agreements, respectively, they will impact future periods as well. The current estimate of the remaining accretable yield adjustment that will positively impact interest income is $19.3 million and the remaining adjustment to the indemnification assets that will reduce non-interest income is $10.5 million. Of the remaining adjustments, we expect to recognize $3.6 million of interest income and a $2.9 million reduction of non-interest income, for a net increase to pre-tax income of approximately $0.7 million during the remainder of 2014. The accretable yield adjustments recorded in future periods will change as the Company continues to evaluate expected cash flows from the acquired loan pools.

Non-Interest Income

Non-interest income for the third quarter was $16.0 million, an increase of $5.7 million compared to the third quarter of 2013. Included in non-interest income were $0.9 million in gains from the sale of branches that were closed as part the integration of Metropolitan and $0.8 million from the recovery of Metropolitan loans that were charged off prior to acquisition. The remaining increase in non-interest income was primarily due to additional trust income, service charge and fee income and mortgage lending income resulting from the Metropolitan and Delta Trust acquisitions.

Non-Interest Expense

Non-interest expense for the second quarter of 2014 was $44.4 million, an increase of $13.5 million compared to the same period in 2013. Due to the closing of the Delta Trust acquisition during the quarter, merger related costs for the quarter exceeded those of the same period last year by $3.4 million. Also included in the quarter were $196 thousand of charter consolidation costs from the systems conversion of the three remaining subsidiary banks that were merged into Simmons First National Bank in August. OREO expense increase by $1.5 million, primarily from the write-down of OREO properties to updated appraised values and from property taxes on acquired OREO. The remaining increase in non-interest expense was primarily due to incremental operating expenses of acquired Metropolitan and Delta Trust locations.

Asset Quality

Beginning in 2010, the Company has acquired loans and foreclosed real estate ("OREO") through FDIC-assisted acquisitions. Through the loss share provisions of the purchase and assumption agreements, the FDIC agreed to reimburse the Company for 80% of the losses incurred on the disposition of covered loans and OREO. The acquired loans and OREO and any related FDIC loss share indemnification asset were presented in the Company's financial reports with a carrying value equal to the discounted net present value of expected future proceeds. At September 30, 2014, acquired loans covered by loss share were carried at $118 million, OREO covered by loss share was carried at $15 million and the FDIC loss share indemnification asset was carried at $26 million. Acquired loans and OREO not covered by loss share were carried at $676 million and $38 million, respectively. As a result of using the discounted net present value method of valuing these assets, and due to the significant protection against possible losses provided by the FDIC loss share indemnification, all acquired assets, with the exception of OREO not covered by loss share, are excluded from the computations of the asset quality ratios for the legacy loan portfolio, except for their inclusion in total assets.

"It is important to remember that the acquired non-covered loans are protected by a credit mark and the acquired covered loans are protected by a credit mark and 80% loss coverage by the FDIC," explained Makris. "At September 30, 2014, the allowance for loan losses was $27.1 million and the loan credit mark was $93.9 million, for a total of $121.0 million of coverage. This equates to a total coverage ratio of 4.2% of gross loans. The ratio of credit mark to acquired loans was 10.6%." The Company's allowance for loan losses at September 30, 2014, was 1.38% of total loans and 227% of non-performing loans. Non-performing loans as a percent of total loans were 0.61%. Non-performing assets decreased $1.9 million from the previous quarter to $62.8 million. Through the third quarter of 2014, the year-to-date annualized net charge-off ratio, excluding credit cards, was 0.19%, and the year-to-date annualized credit card charge-off ratio was 1.22%.

Capital

At September 30, 2014, stockholders' equity was $483 million, book value per share was $26.82 and tangible book value per share was $19.72. The Company's ratio of stockholders' equity to total assets was 10.3% and its ratio of tangible common equity to tangible assets was 7.8%.

Simmons First National Corporation

Simmons First National Corporation is an Arkansas based financial holding company with total assets of $4.7 billion and conducting financial operations throughout Arkansas, Kansas and Missouri. The Company's common stock trades on the NASDAQ Global Select Market under the symbol "SFNC".

Conference Call

Management will conduct a conference call to review this information beginning at 3:00 p.m. Central Time on Thursday, October 23, 2014. 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 Corporation conference call, conference ID 17056028. In addition, the call will be available live or in recorded version on the Company's website at www.simmonsfirst.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 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.

Forward Looking Statements

Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements of this type speak only as of 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 Corporation'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   Sep 30   Jun 30   Mar 31   Dec 31   Sep 30 
(Unaudited)  2014   2014   2014   2013   2013 
(in thousands)          
ASSETS           
 Cash and non-interest bearing balances due from banks   $ 73,554  $ 44,805  $ 48,018  $ 69,827  $ 37,752
 Interest bearing balances due from banks   210,742  377,855  474,118  469,553  320,368
 Federal funds sold   10,000  --   --   --   18,365
Cash and cash equivalents   294,296  422,660  522,136  539,380  376,485
 Investment securities - held-to-maturity   822,730  799,963  776,615  745,688  581,768
 Investment securities - available-for-sale   317,473  270,336  264,974  212,277  179,937
 Mortgage loans held for sale   22,003  20,409  16,717  9,494  10,605
 Assets held in trading accounts   6,819  6,881  6,865  8,978  8,744
 Loans:           
Legacy loans   1,963,378  1,868,842  1,779,609  1,742,638  1,741,161
Allowance for loan losses   (27,076)  (27,530)  (26,983)  (27,442)  (27,533)
Loans acquired, not covered by FDIC loss share           
(net of discount)   676,056  398,967  450,289  515,644  68,133
Loans acquired, covered by FDIC loss share (net of discount)   118,158  121,524  137,879  146,653  148,884
Net loans   2,730,516  2,361,803  2,340,794  2,377,493  1,930,645
 FDIC indemnification asset   25,694  30,508  39,239  48,791  61,500
 Premises and equipment   115,639  113,541  111,888  119,614  87,065
 Premises held for sale   15,856  14,145  23,779  19,466  -- 
 Foreclosed assets not covered by FDIC loss share   50,770  53,342  57,476  64,820  26,203
 Foreclosed assets covered by FDIC loss share   15,212  16,951  18,171  20,585  23,260
 Interest receivable   18,006  14,254  15,102  15,654  15,635
 Bank owned life insurance   75,357  61,115  60,714  60,384  60,040
 Goodwill   109,859  78,529  78,529  78,906  60,605
 Other intangible assets   17,947  14,094  14,519  14,972  5,420
 Other assets   51,682  47,310  49,129  46,598  13,797
Total assets   $ 4,689,859  $ 4,325,841  $ 4,396,647  $ 4,383,100  $ 3,441,709
           
LIABILITIES AND STOCKHOLDERS' EQUITY           
 Deposits:           
Non-interest bearing transaction accounts   $ 884,064  $ 838,543  $ 838,050  $ 718,438  $ 580,063
Interest bearing transaction accounts and savings deposits   1,984,422  1,784,040  1,793,330  1,862,618  1,453,139
Time deposits less than $100,000   565,957  559,597  589,798  611,729  454,325
Time deposits greater than $100,000   474,472  459,545  485,870  504,782  351,271
Total deposits   3,908,915  3,641,725  3,707,048  3,697,567  2,838,798
 Federal funds purchased and securities sold under agreements to repurchase   112,977  98,226  104,643  107,887  62,311
 Other borrowings   123,396  115,602  116,970  117,090  75,987
 Subordinated debentures   20,620  20,620  20,620  20,620  20,620
 Accrued interest and other liabilities   41,309  35,533  40,694  36,104  40,959
Total liabilities   4,207,217  3,911,706  3,989,975  3,979,268  3,038,675
           
 Stockholders' equity:           
Common stock   180  163  163  162  162
Surplus   155,592  90,010  89,274  88,095  87,279
Undivided profits   328,822  325,371  319,354  318,577  318,194
Accumulated other comprehensive income           
Unrealized appreciation on AFS securities   (1,952)  (1,409)  (2,119)  (3,002)  (2,601)
Total stockholders' equity   482,642  414,135  406,672  403,832  403,034
Total liabilities and stockholders' equity   $ 4,689,859  $ 4,325,841  $ 4,396,647  $ 4,383,100  $ 3,441,709
 
           
           
Simmons First National Corporation           SFNC 
Consolidated Average Quarter-to-Date Balance Sheets         
For the Quarters Ended   Sep 30   Jun 30   Mar 31   Dec 31   Sep 30 
(Unaudited)    2014   2014   2014   2013   2013 
(in thousands)          
ASSETS           
 Cash and non-interest bearing balances due from banks   $ 50,980  $ 44,671  $ 68,770  $ 50,473  $ 39,067
 Interest bearing balances due from banks   288,258  456,931  507,936  428,551  365,504
 Federal funds sold   6,794  985  385  2,616  3,719
Cash and cash equivalents   346,032  502,587  577,091  481,640  408,290
 Investment securities - held-to-maturity   810,085  782,900  749,126  657,736  567,579
 Investment securities - available-for-sale   300,927  265,194  223,203  220,292  178,351
 Mortgage loans held for sale   24,942  15,299  6,668  6,666  12,171
 Assets held in trading accounts   6,841  6,850  7,212  8,881  8,731
 Loans:           
Legacy loans   1,917,155  1,817,429  1,719,294  1,734,469  1,705,204
Allowance for loan losses   (27,470)  (27,287)  (27,771)  (27,806)  (27,735)
Loans acquired, not covered by FDIC loss share           
(net of discount)   481,658  418,515  505,031  261,577  61,372
Loans acquired, covered by FDIC loss share (net of discount)   119,372  128,099  142,777  145,742  156,392
Net loans   2,490,715  2,336,756  2,339,331  2,113,982  1,895,233
 FDIC indemnification asset   28,311  35,940  46,154  57,587  65,478
 Premises and equipment   115,577  112,994  119,626  87,310  88,044
 Premises held for sale   12,521  21,142  19,514  212  -- 
 Foreclosed assets not covered by FDIC loss share   51,097  55,304  63,453  50,680  27,368
 Foreclosed assets covered by FDIC loss share   16,073  18,330  19,901  22,529  22,392
 Interest receivable   15,743  15,076  14,882  15,707  13,739
 Bank owned life insurance   63,798  60,895  60,552  60,209  59,878
 Goodwill   88,590  78,529  78,901  60,804  60,605
 Other intangible assets   15,321  14,299  14,765  5,526  3,439
 Other assets   52,234  48,583  45,458  33,324  12,122
Total assets   $ 4,438,807  $ 4,370,678  $ 4,385,837  $ 3,883,085  $ 3,423,420
           
LIABILITIES AND STOCKHOLDERS' EQUITY           
Deposits:           
Non-interest bearing transaction accounts   $ 828,340  $ 823,552  $ 735,101  $ 665,644  $ 559,461
Interest bearing transaction accounts and savings deposits   1,869,095  1,810,436  1,854,510  1,620,244  1,444,058
Time deposits less than $100,000   555,837  577,856  601,046  517,603  461,101
Time deposits greater than $100,000   457,489  472,009  495,574  409,361  358,307
Total deposits   3,710,761  3,683,853  3,686,231  3,212,852  2,822,927
Federal funds purchased and securities sold under agreements to repurchase   108,357  101,537  115,018  98,359  67,924
Other borrowings   117,664  116,082  117,588  108,693  75,704
Subordinated debentures   20,620  20,620  20,620  20,620  20,620
Accrued interest and other liabilities   38,950  34,637  36,967  33,117  31,867
Total liabilities   3,996,352  3,956,729  3,976,424  3,473,641  3,019,042
Total stockholders' equity   442,455  413,949  409,413  409,444  404,378
Total liabilities and stockholders' equity   $ 4,438,807  $ 4,370,678  $ 4,385,837  $ 3,883,085  $ 3,423,420
           
           
Simmons First National Corporation           SFNC 
Consolidated Statements of Income - Quarter-to-Date           
For the Quarters Ended  Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited)   2014   2014   2014   2013   2013 
(in thousands, except per share data)          
INTEREST INCOME           
Legacy loans   $ 23,841  $ 22,733  $ 21,554  $ 22,463  $ 22,332
Loans acquired   16,241  15,889  18,577  16,151  8,283
Federal funds sold   12  2  1  5  6
Investment securities   4,717  4,766  4,549  3,951  3,428
Mortgage loans held for sale   269  168  69  72  122
Assets held in trading accounts   3  5  5  6  6
Interest bearing balances due from banks   132  279  279  251  234
TOTAL INTEREST INCOME   45,215  43,842  45,034  42,899  34,411
INTEREST EXPENSE           
Time deposits   1,461  1,515  1,577  1,479  1,392
Other deposits   771  720  692  646  601
Federal funds purchased and securities sold under agreements to repurchase   55  31  53  55  46
Other borrowings   996  988  1,010  929  646
Subordinated debentures   160  160  157  161  162
TOTAL INTEREST EXPENSE   3,443  3,414  3,489  3,270  2,847
NET INTEREST INCOME   41,772  40,428  41,545  39,629  31,564
Provision for loan losses   1,128  1,602  908  1,084  1,081
NET INTEREST INCOME AFTER PROVISION           
FOR LOAN LOSSES   40,644  38,826  40,637  38,545  30,483
NON-INTEREST INCOME           
Trust income   1,838  1,553  1,537  1,608  1,448
Service charges on deposit accounts   6,238  6,792  6,068  5,497  4,603
Other service charges and fees   808  859  823  1,164  728
Mortgage lending income   1,812  1,262  810  916  1,122
Investment banking income   284  154  181  421  240
Credit card fees   5,769  5,801  5,643  4,592  4,400
Bank owned life insurance income   411  377  330  347  328
Gain on sale of securities, net   (18)  38  --   42  -- 
Net (loss) gain on assets covered by FDIC loss share agreements   (3,744)  (6,268)  (7,370)  (7,988)  (3,443)
Other income   2,637  4,820  1,176  1,118  887
TOTAL NON-INTEREST INCOME   16,035  15,388  9,198  7,717  10,313
NON-INTEREST EXPENSE           
Salaries and employee benefits   20,892  20,982  22,464  19,933  17,701
Occupancy expense, net   3,204  3,285  3,890  2,544  2,485
Furniture and equipment expense   2,363  2,215  2,014  2,257  1,613
Other real estate and foreclosure expense   1,864  375  873  562  385
Deposit insurance   877  1,085  668  620  595
Merger related costs   3,628  1,354  1,272  6,413  190
Other operating expenses   11,526  10,546  13,370  9,349  7,934
TOTAL NON-INTEREST EXPENSE   44,354  39,842  44,551  41,678  30,903
NET INCOME BEFORE INCOME TAXES   12,325  14,372  5,284  4,584  9,893
Provision for income taxes   3,537  4,464  932  798  2,961
NET INCOME   $ 8,788  $ 9,908  $ 4,352  $ 3,786  $ 6,932
BASIC EARNINGS PER SHARE   $ 0.52  $ 0.61  $ 0.27  $ 0.23  $ 0.43
DILUTED EARNINGS PER SHARE   $ 0.52  $ 0.60  $ 0.27  $ 0.23  $ 0.43
           
           
Simmons First National Corporation           SFNC 
Consolidated Statements of Income - Year-to-Date           
For the Quarters Ended  Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited)   2014   2014   2014   2013   2013 
(in thousands, except per share data)          
INTEREST INCOME           
Legacy loans   $ 68,124  $ 44,285  $ 21,554  $ 88,594  $ 66,129
Loans acquired   50,710  34,468  18,577  39,577  23,428
Federal funds sold   16  3  1  19  14
Investment securities   14,032  9,315  4,549  13,300  9,349
Mortgage loans held for sale   506  237  69  467  395
Assets held in trading accounts   13  10  5  29  23
Interest bearing balances due from banks   691  558  279  1,127  875
TOTAL INTEREST INCOME   134,092  88,876  45,034  143,113  100,213
INTEREST EXPENSE           
Time deposits   4,552  3,091  1,577  5,938  4,460
Other deposits   2,185  1,414  692  2,461  1,814
Federal funds purchased and securities sold under agreements to repurchase   194  84  53  219  165
Other borrowings   2,995  1,998  1,010  3,001  2,072
Subordinated debentures   477  317  157  644  483
TOTAL INTEREST EXPENSE   10,403  6,904  3,489  12,263  8,994
NET INTEREST INCOME   123,689  81,972  41,545  130,850  91,219
Provision for loan losses   3,638  2,510  908  4,118  3,034
NET INTEREST INCOME AFTER PROVISION           
FOR LOAN LOSSES   120,051  79,462  40,637  126,732  88,185
NON-INTEREST INCOME           
Trust income   4,929  3,091  1,537  5,842  4,234
Service charges on deposit accounts   19,098  12,860  6,068  18,815  13,318
Other service charges and fees   2,490  1,684  823  3,458  2,294
Mortgage lending income   3,885  2,074  810  4,592  3,677
Investment banking income   620  336  181  1,811  1,390
Credit card fees   17,213  11,444  5,643  17,372  12,779
Bank owned life insurance income   1,117  705  330  1,319  974
Gain on sale of securities, net   20  38  --   (151)  (193)
Net (loss) gain on assets covered by FDIC loss share agreements   (17,303)  (13,639)  (7,370)  (16,188)  (8,200)
Other income   8,619  5,984  1,176  3,746  2,626
TOTAL NON-INTEREST INCOME   40,688  24,577  9,198  40,616  32,899
NON-INTEREST EXPENSE           
Salaries and employee benefits   64,338  43,447  22,464  74,078  54,146
Occupancy expense, net   10,338  7,155  3,890  10,034  7,490
Furniture and equipment expense   6,592  4,229  2,014  7,623  5,367
Other real estate and foreclosure expense   3,112  1,248  873  1,337  775
Deposit insurance   2,630  1,753  668  2,482  1,862
Merger related costs   6,255  2,627  1,272  6,376  (37)
Other operating expenses   35,492  23,923  13,370  32,882  23,529
TOTAL NON-INTEREST EXPENSE   128,757  84,382  44,551  134,812  93,132
NET INCOME BEFORE INCOME TAXES   31,982  19,657  5,284  32,536  27,952
Provision for income taxes   8,933  5,396  932  9,305  8,507
NET INCOME   $ 23,049  $ 14,261  $ 4,352  $ 23,231  $ 19,445
BASIC EARNINGS PER SHARE   $ 1.40  $ 0.88  $ 0.27  $ 1.42  $ 1.19
DILUTED EARNINGS PER SHARE   $ 1.39  $ 0.87  $ 0.27  $ 1.42  $ 1.19
         
         
Simmons First National Corporation         SFNC 
Consolidated Risk-Based Capital           
For the Quarters Ended   Sep 30   Jun 30   Mar 31   Dec 31   Sep 30 
(Unaudited)   2014   2014   2014   2013   2013 
($ in thousands)          
Tier 1 capital          
Stockholders' equity   $ 482,642  $ 414,135  $ 406,672  $ 403,832  $ 403,034
Trust preferred securities, net allowable   20,000  20,000  20,000  20,000  20,000
Disallowed intangible assets, net of deferred tax   (109,698)  (74,003)  (74,477)  (75,501)  (49,727)
Unrealized gain on AFS securities   1,952  1,409  2,119  3,002  2,601
           
Total Tier 1 capital   394,896  361,541  354,314  351,333  375,908
           
Tier 2 capital          
Qualifying unrealized gain on AFS equity securities   --   47  42  45  40
Qualifying allowance for loan losses   29,167  29,621  28,846  28,967  25,633
           
Total Tier 2 capital   29,167  29,668  28,888  29,012  25,673
           
Total risk-based capital   $ 424,063  $ 391,209  $ 383,202  $ 380,345  $ 401,581
           
Risk weighted assets   $ 3,063,801  $ 2,652,474  $ 2,651,970  $ 2,697,630  $ 2,047,198
           
Adjusted average assets for leverage ratio   $ 4,331,488  $ 4,299,379  $ 4,315,279  $ 3,811,793  $ 3,378,676
           
Ratios at end of quarter          
Equity to assets  10.29% 9.57% 9.25% 9.21% 11.71%
Tangible common equity to tangible assets  7.78% 7.59% 7.29% 7.23% 9.98%
Tier 1 leverage ratio  9.12% 8.41% 8.21% 9.22% 11.13%
Tier 1 risk-based capital ratio  12.89% 13.63% 13.36% 13.02% 18.36%
Total risk-based capital ratio  13.84% 14.75% 14.45% 14.10% 19.62%
         
         
Simmons First National Corporation         SFNC 
Consolidated Loans and Investments           
For the Quarters Ended   Sep 30   Jun 30   Mar 31   Dec 31   Sep 30 
(Unaudited)   2014   2014   2014   2013   2013 
(in thousands)          
Legacy Loan Portfolio - End of Period (1)          
Consumer           
Credit cards   $ 175,822  $ 176,239  $ 172,609  $ 184,935  $ 177,463
Student loans   --   398  24,415  25,906  28,392
Other consumer   105,508  105,998  104,185  98,851  101,399
Total consumer   281,330  282,635  301,209  309,692  307,254
Real Estate           
Construction   163,364  163,412  168,147  146,458  161,024
Single-family residential   436,925  417,187  402,588  392,285  375,703
Other commercial   681,848  653,734  644,772  626,333  602,463
Total real estate   1,282,137  1,234,333  1,215,507  1,165,076  1,139,190
Commercial           
Commercial   249,186  233,510  186,303  164,329  154,508
Agricultural   145,157  111,567  72,239  98,886  135,633
Total commercial   394,343  345,077  258,542  263,215  290,141
Other   5,568  6,796  4,351  4,655  4,576
Total Loans   $ 1,963,378  $ 1,868,841  $ 1,779,609  $ 1,742,638  $ 1,741,161
           
(1) Excludes all acquired loans, including those covered by FDIC loss share agreements. 
           
Investment Securities - End of Period          
Held-to-Maturity           
U.S. Government agencies   $ 455,827  $ 449,201  $ 425,616  $ 395,198  $ 313,052
Mortgage-backed securities   30,954  32,204  33,323  34,425  41
State and political subdivisions   335,329  317,938  317,056  315,445  268,055
Other securities   620  620  620  620  620
Total held-to-maturity   822,730  799,963  776,615  745,688  581,768
Available-for-Sale           
U.S. Treasury   $ 3,991  $ 3,994  $ 3,981  $ 3,985  $ -- 
U.S. Government agencies   280,321  238,411  231,949  178,217  163,127
Mortgage-backed securities   32  1,958  1,833  1,891  1,994
State and political subdivisions   8,903  6,920  7,367  7,861  1,263
FHLB stock   5,623  4,966  5,168  6,002  5,085
Other securities   18,603  14,087  14,676  14,321  8,468
Total available-for-sale   317,473  270,336  264,974  212,277  179,937
Total investment securities   $ 1,140,203  $ 1,070,299  $ 1,041,589  $ 957,965  $ 761,705
Fair value - HTM investment securities   $ 825,584  $ 802,597  $ 771,114  $ 731,705  $ 570,703
           
Investment Securities - QTD Average          
Taxable securities   $ 781,685  $ 722,084  $ 649,329  $ 583,389  $ 490,801
Tax exempt securities   329,327  326,010  323,000  294,639  255,129
Total investment securities - QTD average   $ 1,111,012  $ 1,048,094  $ 972,329  $ 878,028  $ 745,930
         
         
 Simmons First National Corporation         SFNC 
 Consolidated Loans and Credit Coverage         
 For the Quarters Ended   Sep 30   Jun 30   Mar 31   Dec 31 
 (Unaudited)   2014   2014   2014   2013 
 ($ in thousands)         
LOANS         
Legacy loans   $ 1,963,378  $ 1,868,841  $ 1,779,609  $ 1,742,638
Allowance for loan losses   (27,076)  (27,530)  (26,983)  (27,442)
Legacy loans (net of allowance)   1,936,302  1,841,311  1,752,626  1,715,196
Loans acquired, not covered by FDIC loss share   733,914  445,515  495,915  566,895
Credit discount   (57,858)  (46,548)  (45,626)  (51,251)
Loans acquired, not covered (net of discount)   676,056  398,967  450,289  515,644
Loans acquired, covered by FDIC loss share   154,183  163,775  188,755  209,459
Credit discount   (36,025)  (42,251)  (50,876)  (62,806)
Loans acquired, covered (net of discount)   118,158  121,524  137,879  146,653
Net loans   $ 2,730,516  $ 2,361,802  $ 2,340,794  $ 2,377,493
         
         
Loan Coverage Ratios         
Allowance for loan losses to legacy loans  1.38% 1.47% 1.52% 1.57%
         
Discount for credit losses on loans acquired, not covered, to total loans acquired, not covered, plus discount for credit losses on loans acquired, not covered  7.88% 10.45% 9.20% 9.04%
         
Discount for credit losses on loans acquired, covered, to total loans acquired, covered, plus discount for credit losses on loans acquired, covered  23.37% 25.80% 26.95% 29.98%
         
Total allowance and credit coverage  4.24% 4.69% 5.01% 5.62%
         
         
Simmons First National Corporation         SFNC 
Consolidated Allowance and Asset Quality           
For the Quarters Ended   Sep 30   Jun 30   Mar 31   Dec 31   Sep 30 
(Unaudited)   2014   2014   2014   2013   2013 
($ in thousands)          
Allowance for Loan Losses          
Balance, beginning of quarter   $ 27,530  $ 26,983  $ 27,442  $ 27,533  $ 27,398
Loans charged off           
Credit cards   788  725  816  841  770
Other consumer   648  426  148  428  449
Real estate   534  1,144  1,035  255  247
Commercial   474  186  82  133  20
Total loans charged off   2,444  2,481  2,081  1,657  1,486
           
Recoveries of loans previously charged off           
Credit cards   190  215  271  226  235
Other consumer   122  133  121  166  114
Real estate   379  1,062  308  78  151
Commercial   171  16  14  12  40
Total recoveries   862  1,426  714  482  540
Net loans charged off   1,582  1,055  1,367  1,175  946
Provision for loan losses   1,128  1,602  908  1,084  1,081
Balance, end of quarter   $ 27,076  $ 27,530  $ 26,983  $ 27,442  $ 27,533
           
Non-performing assets (1) (2)          
Non-performing loans           
Nonaccrual loans           
Real estate   $ 9,374  $ 8,166  $ 8,075  $ 4,799  $ 4,157
Commercial   1,174  1,110  1,054  495  525
Consumer   664  877  883  967  1,293
Total nonaccrual loans   11,212  10,153  10,012  6,261  5,975
Loans past due 90 days or more           
Government guaranteed student loans   --   323  1,965  2,264  2,966
Other loans   713  757  517  687  725
Total loans past due 90 days or more   713  1,080  2,482  2,951  3,691
Total non-performing loans   11,925  11,233  12,494  9,212  9,666
Other non-performing assets           
Foreclosed assets held for sale   13,167  16,745  17,357  19,361  20,493
Acquired foreclosed assets held for sale, not covered by FDIC loss share agreements   37,603  36,597  40,119  45,459  5,710
Other non-performing assets   72  80  60  75  60
Total other non-performing assets   50,842  53,422  57,536  64,895  26,263
Total non-performing assets   $ 62,767  $ 64,655  $ 70,030  $ 74,107  $ 35,929
Performing TDRs (troubled debt restructurings)   $ 2,234  $ 2,776  $ 8,655  $ 9,497  $ 9,584
           
Ratios (1) (2)          
Allowance for loan losses to total loans  1.38% 1.47% 1.52% 1.57% 1.58%
Allowance for loan losses to non-performing loans  227% 245% 216% 298% 285%
Non-performing loans to total loans  0.61% 0.60% 0.70% 0.53% 0.56%
Non-performing assets (including performing TDRs) to total assets  1.39% 1.56% 1.79% 1.91% 1.32%
Non-performing assets to total assets  1.34% 1.49% 1.59% 1.69% 1.04%
Non-performing assets to total assets           
(excluding Gov't guaranteed student loans)  1.34% 1.49% 1.55% 1.64% 0.96%
Annualized net charge offs to total loans  0.33% 0.23% 0.32% 0.27% 0.22%
Annualized net credit card charge offs to total credit card loans  1.31% 1.14% 1.20% 1.31% 1.21%
Annualized net charge offs to total loans           
(excluding credit cards)  0.22% 0.13% 0.22% 0.14% 0.11%
Past due loans >30 days (excluding nonaccrual)  0.33% 0.34% 0.61% 0.57% 0.62%
Past due loans >30 days (excluding nonaccrual)           
(excluding Gov't guaranteed student loans)  0.33% 0.32% 0.45% 0.41% 0.36%
           
 (1) Excludes all acquired loans, including those covered by FDIC loss share agreements, except for their inclusion in total assets. 
 (2) Excludes acquired foreclosed assets covered by FDIC loss share agreements, except for their inclusion in total assets. 
         
         
Simmons First National Corporation         SFNC 
Consolidated - Net Interest Income Analysis         
For the Quarters Ended   Sep 30   Jun 30   Mar 31   Dec 31   Sep 30 
(Unaudited)   2014   2014   2014   2013   2013 
           
ASSETS          
           
Earning Assets          
Interest bearing balances due from banks 0.18% 0.24% 0.22% 0.23% 0.25%
Investment securities 2.29% 2.47% 2.60% 2.44% 2.52%
Mortgage loans held for sale 4.28% 4.40% 4.20% 4.29% 3.98%
Assets held in trading accounts 0.17% 0.29% 0.28% 0.27% 0.27%
Loans, including acquired loans 6.32% 6.55% 6.88% 7.16% 6.32%
Total interest earning assets 4.71% 4.69% 4.91% 5.08% 4.63%
           
LIABILITIES          
           
Interest bearing liabilities          
Interest bearing transaction and savings accounts 0.16% 0.16% 0.15% 0.16% 0.17%
Time deposits 0.57% 0.58% 0.58% 0.63% 0.67%
Total interest bearing deposits 0.31% 0.31% 0.31% 0.33% 0.35%
Federal funds purchased and securities sold under agreement to repurchase 0.20% 0.12% 0.19% 0.22% 0.27%
Other borrowings 3.36% 3.41% 3.48% 3.39% 3.39%
Subordinated debentures 3.08% 3.11% 3.09% 3.10% 3.12%
Total interest bearing liabilities 0.44% 0.44% 0.44% 0.47% 0.47%
           
NET INTEREST MARGIN/SPREAD          
           
Net interest spread 4.27% 4.25% 4.47% 4.61% 4.16%
Net interest margin - quarter-to-date 4.36% 4.34% 4.54% 4.70% 4.27%
Net interest margin - year-to-date 4.41% 4.44% 4.54% 4.21% 4.08%
         
         
Simmons First National Corporation         SFNC 
Consolidated - Selected Financial Data           
For the Quarters Ended   Sep 30   Jun 30   Mar 31   Dec 31   Sep 30 
(Unaudited)   2014   2014   2014   2013   2013 
($ in thousands, except share data)          
QUARTER-TO-DATE          
Diluted earnings per share   $ 0.52  $ 0.60  $ 0.27  $ 0.23  $ 0.43
Core earnings (excludes nonrecurring items) (non-GAAP)   10,684  9,153  7,482  7,749  7,371
Diluted core earnings per share (non-GAAP)   0.63  0.56  0.46  0.48  0.45
Cash dividends declared per common share   0.22  0.22  0.22  0.21  0.21
Cash dividends declared - amount   3,954  3,589  3,575  3,403  3,401
Return on average stockholders' equity  7.88% 9.60% 4.31% 3.67% 6.80%
Return on tangible equity  10.62% 12.72% 5.94% 4.51% 8.18%
Return on average assets  0.79% 0.91% 0.40% 0.39% 0.80%
Net interest margin (FTE)  4.36% 4.34% 4.54% 4.70% 4.27%
FTE adjustment - investments   1,695  1,687  1,682  1,442  1,313
FTE adjustment - loans   7  8  10  17  11
Amortization of intangibles   454  452  453  192  135
Amortization of intangibles, net of taxes   276  275  275  117  82
Average shares outstanding   16,873,504  16,318,003  16,270,149  16,210,480  16,220,199
Average earning assets   3,956,032  3,892,202  3,861,632  3,466,530  3,059,023
Average interest bearing liabilities   3,129,062  3,098,540  3,204,356  2,774,880  2,427,714
           
YEAR-TO-DATE          
Diluted earnings per share   $ 1.39  $ 0.87  $ 0.27  $ 1.42  $ 1.19
Core earnings (excludes nonrecurring items) (non-GAAP)   27,319  16,635  7,482  27,612  19,863
Diluted core earnings per share (non-GAAP)   1.65  1.02  0.46  1.69  1.21
Cash dividends declared per common share   0.66  0.44  0.22  0.84  0.63
Cash dividends declared - amount   11,118  7,164  3,575  13,707  10,304
Return on average stockholders' equity  7.30% 6.95% 4.31% 5.33% 6.39%
Return on tangible equity  9.82% 9.33% 5.94% 6.36% 7.68%
Return on average assets  0.70% 0.65% 0.40% 0.64% 0.75%
Net interest margin (FTE)  4.41% 4.44% 4.54% 4.21% 4.08%
FTE adjustment - investments   5,064  3,369  1,682  4,900  3,458
FTE adjustment - loans   25  18  10  51  34
Amortization of intangibles   1,359  905  453  601  409
Amortization of intangibles, net of taxes   826  550  275  365  248
Average shares outstanding   16,489,429  16,294,208  16,270,149  16,339,335  16,382,758
Average diluted shares outstanding   16,532,689  16,336,901  16,309,868  16,352,167  16,388,393
Average earning assets   3,903,290  3,876,918  3,861,632  3,224,094  3,105,706
Average interest bearing liabilities   3,143,984  3,151,446  3,204,356  2,551,653  2,477,899
           
END OF PERIOD          
Book value per share   $ 26.82  $ 25.36  $ 24.93  $ 24.89  $ 24.88
Tangible book value per share   19.72  19.69  19.23  19.10  20.80
Shares outstanding   17,992,261  16,331,341  16,311,263  16,226,256  16,198,964
Full-time equivalent employees   1,397  1,281  1,321  1,343  1,097
Total number of ATM's   129  120  120  157  106
Total number of financial centers   113  104  104  131  87
Parent company only - investment in subsidiaries   516,801  449,591  453,067  452,688  371,531
Parent company only - intangible assets   133  133  133  133  133
           
           
Simmons First National Corporation           SFNC 
Consolidated - Reconciliation of Core Earnings (non-GAAP)         
For the Quarters Ended   Sep 30   Jun 30   Mar 31   Dec 31   Sep 30 
(Unaudited)   2014   2014   2014   2013   2013 
(in thousands, except per share data)          
QUARTER-TO-DATE          
Net Income   $ 8,788  $ 9,908  $ 4,352  $ 3,786  $ 6,932
Nonrecurring items           
Gain on sale of merchant services  --   (1,000)  --   --   -- 
Merger related costs  3,628  1,354  1,272  6,413  190
Branch right sizing  (705)  (2,011)  3,878  108  533
Charter consolidation costs  196  414  --   --   -- 
Tax effect  (1,223)  488  (2,020)  (2,558)  (284)
Net nonrecurring items   1,896  (755)  3,130  3,963  439
Core earnings (non-GAAP)   $ 10,684  $ 9,153  $ 7,482  $ 7,749  $ 7,371
           
Diluted earnings per share   $ 0.52  $ 0.60  $ 0.27  $ 0.23  $ 0.43
Nonrecurring items           
Gain on sale of merchant services  --   (0.06)  --   --   -- 
Merger related costs  0.21  0.08  0.08  0.40  0.01
Branch right sizing  (0.04)  (0.12)  0.24  0.01  0.03
Charter consolidation costs  0.01  0.03  --   --   -- 
Tax effect  (0.07)  0.03  (0.13)  (0.16)  (0.02)
Net nonrecurring items   0.11  (0.04)  0.19  0.25  0.02
Diluted core earnings per share (non-GAAP)   $ 0.63  $ 0.56  $ 0.46  $ 0.48  $ 0.45
           
YEAR-TO-DATE          
Net Income   $ 23,049  $ 14,261  $ 4,352  $ 23,231  $ 19,445
Nonrecurring items           
Gain on sale of merchant services  (1,000)  (1,000)  --   --   -- 
Merger related costs  6,254  2,626  1,272  6,376  (37)
Loss on sale of securities  --   --   --   193  193
Branch right sizing  1,162  1,867  3,878  641  533
Charter consolidation costs  610  414  --   --   -- 
Tax effect  (2,745)  (1,533)  (2,020)  (2,829)  (271)
Net nonrecurring items   4,281  2,374  3,130  4,381  418
Core earnings (non-GAAP)   $ 27,330  $ 16,635  $ 7,482  $ 27,612  $ 19,863
           
Diluted earnings per share   $ 1.39  $ 0.87  $ 0.27  $ 1.42  $ 1.19
Nonrecurring items           
Gain on sale of merchant services  (0.06)  (0.06)  --   --   -- 
Merger related costs  0.37  0.16  0.08  0.39  (0.01)
Loss on sale of securities  --   --   --   0.01  0.01
Branch right sizing  0.08  0.12  0.24  0.04  0.03
Charter consolidation costs  0.04  0.03  --   --   -- 
Tax effect  (0.17)  (0.10)  (0.13)  (0.17)  (0.01)
Net nonrecurring items   0.26  0.15  0.19  0.27  0.02
Diluted core earnings per share (non-GAAP)   $ 1.65  $ 1.02  $ 0.46  $ 1.69  $ 1.21
DAVID W. GARNER
Executive Vice President and Investor Relations Officer
Simmons First National Corporation
(870) 541-1000