PINE BLUFF, Ark., Oct. 22, 2015 (GLOBE NEWSWIRE) -- Simmons First National Corporation (NASDAQ:SFNC) today announced record core earnings of $25.6 million for the third quarter of 2015, an increase of $14.9 million, or 139 percent, compared with the same quarter last year. Diluted core earnings per share were $0.85, an increase of $0.22, or 34.9 percent. Including the non-core items, net income was $21.6 million for the third quarter of 2015, an increase of $12.8 million, or 146 percent, compared with the same quarter last year. Diluted earnings per share were $0.72, an increase of $0.20, or 38.5 percent.

Year-to-date core earnings were $63.7 million, an increase of $36.4 million, or 133 percent, compared with the same period of 2014. Year-to-date diluted core earnings per share were $2.32, an increase of $0.67, or 40.6 percent. Year-to-date net income was $50.3 million, or $1.83 diluted earnings per share.

"We continue to make good progress with our efficiency initiatives, both in revenue enhancement and in expense control," said George A. Makris, Jr., chairman and CEO. "Our core efficiency ratio was 57.5 percent for the quarter and our core ROA was 1.33 percent."

Loans

Total loans, including those acquired, were $4.9 billion at Sept. 30, 2015, an increase of $2.1 billion, or 76.0 percent, compared with the same period in 2014. Legacy loans (all loans excluding acquired loans) grew $876 million, or 44.6 percent. Acquired loans increased by $1.2 billion, net of discounts.

Deposits

At Sept. 30, 2015, total deposits were $6.1 billion, an increase of $2.2 billion, or 55.8 percent, compared with the same period in 2014. Total non-time deposits were $4.7 billion, or 78 percent of total deposits.

Net Interest Income

The company's net interest income for the third quarter of 2015 was $78.7 million, an increase of $36.9 million, or 88.4 percent, from the same period of 2014. This increase was driven by growth in the legacy loan portfolio and earning assets acquired through the Delta Trust, Community First and Liberty transactions. Net interest margin was 4.82 percent for the quarter ended Sept. 30, 2015, a 46 basis-point increase from the same quarter of 2014.

Included in interest income was the yield accretion recognized on acquired loans of $14.9 million and $8.5 million for the third quarter of 2015 and 2014, respectively. The company's core net interest margin, excluding the accretion, was 3.93 percent for the third quarter of 2015, a 42 basis-point increase from the same quarter of 2014.

Non-Interest Income

Non-interest income for the third quarter was $23.5 million, an increase of $7.5 million compared with the third quarter of 2014. The increase in non-interest income was primarily due to additional trust income, service charge and fee income, mortgage lending and investment banking income resulting from the acquisitions, gains on sale of other real estate and gain on the sale of our Salina, Kan., banking operations. Losses on FDIC-covered assets increased $5.3 million primarily due to a $7.5 million charge for termination of the loss-share agreements, partially offset by a $2.1 million decrease in indemnification asset amortization.

Non-Interest Expense

Non-interest expense for the third quarter of 2015 was $67.9 million, an increase of $23.6 million compared with the same period in 2014. Included in the quarter were $1.2 million of merger-related and branch right-sizing expenses. The increase in non-interest expense was primarily due to incremental operating expenses of the acquired Delta Trust, Community First and Liberty franchises, somewhat offset by the company's ongoing efficiency initiatives.

Asset Quality

During the third quarter, the company entered into an agreement with the FDIC to terminate all of its remaining loss-sharing agreements. As a result, all FDIC-acquired assets are now classified as non-covered. 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 Sept. 30, 2015, the allowance for loan losses for legacy loans was $30.4 million and $1.0 million for acquired loans. The loan discount credit mark was $70.4 million, for a total of $101.8 million of coverage. This equates to a total coverage ratio of 2.1 percent of gross loans. The ratio of credit mark and related allowance to acquired loans was 3.4 percent.

The company's allowance for loan losses on legacy loans at Sept. 30, 2015, was 1.07 percent of total loans and 181 percent of non-performing loans. In the legacy portfolio, non-performing loans as a percent of total loans were 0.59 percent. Through the third quarter of 2015, the year-to-date annualized net charge-off ratio, excluding credit cards, was 0.12 percent, and the year-to-date annualized credit card charge-off ratio was 1.30 percent.

Capital

At Sept. 30, 2015, common stockholders' equity was $1.0 billion, book value per share was $33.89 and tangible book value per share was $21.89. The company's ratio of stockholders' equity to total assets was 13.8 percent and its ratio of tangible common equity to tangible assets was 9.1 percent.

Simmons First National Corporation

Simmons First National Corporation is an Arkansas-based financial holding company with total assets of $7.6 billion and conducting financial operations throughout Arkansas, Kansas, Missouri and Tennessee. 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 p.m. CDT on Thursday, Oct. 22, 2015. 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 48225101. 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 news 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 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. 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)   2015   2015   2015   2014   2014 
($ in thousands)
ASSETS           
Cash and non-interest bearing balances due from banks   $ 106,678  $ 69,770  $ 83,424  $ 54,347  $ 73,554
Interest bearing balances due from banks   284,645  173,130  423,986  281,562  210,742
Federal funds sold   9,675  49,570  178,418  --   10,000
Cash and cash equivalents   400,998  292,470  685,828  335,909  294,296
Interest bearing balances due from banks   16,504  24,189  25,000  --  --
Investment securities - held-to-maturity   776,294  861,596  902,423  777,587  822,730
Investment securities - available-for-sale   703,347  747,701  707,383  305,283  317,473
Mortgage loans held for sale   15,556  48,094  25,513  21,265  22,003
Assets held in trading accounts   6,292  6,481  6,528  6,987  6,819
Loans:           
Legacy loans   2,839,278  2,611,229  2,115,380  2,053,721  1,963,378
Allowance for loan losses   (30,380)  (30,567)  (29,183)  (29,028)  (27,076)
Loans acquired, not covered by FDIC loss share           
(net of discount and allowance)   2,013,816  2,108,306  2,418,440  575,980  676,056
Loans acquired, covered by FDIC loss share           
(net of discount and allowance)   --   93,121  102,468  106,933  118,158
Net loans   4,822,714  4,782,089  4,607,105  2,707,606  2,730,516
FDIC indemnification asset   --   13,020  15,965  22,663  25,694
Premises and equipment   190,182  191,335  198,106  122,966  115,639
Premises held for sale   923  6,587  --   6,126  15,856
Foreclosed assets not covered by FDIC loss share   48,073  42,666  50,723  44,856  50,770
Foreclosed assets covered by FDIC loss share   --   12,833  12,010  11,793  15,212
Interest receivable   26,873  24,129  24,719  16,774  18,006
Bank owned life insurance   118,922  118,073  117,296  77,592  75,357
Goodwill   314,282  314,282  314,282  108,095  108,095
Other intangible assets   44,904  46,605  47,960  22,526  22,988
Other assets   73,830  82,208  74,959  55,326  49,768
Total assets   $ 7,559,694  $ 7,614,358  $ 7,815,800  $ 4,643,354  $ 4,691,222
           
LIABILITIES AND STOCKHOLDERS' EQUITY           
Deposits:           
Non-interest bearing transaction accounts   $ 1,212,724  $ 1,141,285  $ 1,123,966  $ 889,260  $ 884,064
Interest bearing transaction accounts and savings deposits   3,521,840  3,581,049  3,627,870  2,006,271  1,984,422
Time deposits less than $100,000   673,651  719,606  756,978  530,890  565,957
Time deposits greater than $100,000   681,585  728,082  765,894  434,297  474,472
Total deposits   6,089,800  6,170,022  6,274,708  3,860,718  3,908,915
Federal funds purchased and securities sold under agreements to repurchase   110,437  111,792  111,484  110,586  112,977
Other borrowings   173,426  171,321  284,386  114,682  123,396
Subordinated debentures   61,906  61,794  61,644  20,620  20,620
Accrued interest and other liabilities   78,684  74,324  69,841  42,429  41,309
Total liabilities   6,514,253  6,589,253  6,802,063  4,149,035  4,207,217
           
Stockholders' equity:           
Preferred stock   30,852  30,852  30,852  --   -- 
Common stock   299  299  299  181  180
Surplus   642,400  640,895  639,493  156,568  155,592
Undivided profits   369,172  354,459  341,238  338,906  330,185
Accumulated other comprehensive income (loss):           
Unrealized (depreciation) appreciation on AFS securities   2,718  (1,400)  1,855  (1,336)  (1,952)
Total stockholders' equity   1,045,441  1,025,105  1,013,737  494,319  484,005
Total liabilities and stockholders' equity   $ 7,559,694  $ 7,614,358  $ 7,815,800  $ 4,643,354  $ 4,691,222
           
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)   2015   2015   2015   2014   2014 
($ in thousands)
ASSETS           
Cash and non-interest bearing balances due from banks   $ 94,695  $ 69,137  $ 59,711  $ 54,485  $ 50,980
Interest bearing balances due from banks   206,467  308,756  371,195  299,054  288,258
Federal funds sold   19,086  75,922  56,846  6,486  6,794
Cash and cash equivalents   320,248  453,815  487,752  360,025  346,032
Interest bearing balances due from banks   20,251  26,817  8,611  --  --
Investment securities - held-to-maturity   728,437  922,877  915,405  806,069  810,085
Investment securities - available-for-sale   838,596  732,949  370,102  318,879  300,927
Mortgage loans held for sale   26,379  37,656  14,655  17,241  24,942
Assets held in trading accounts   6,401  6,592  6,782  6,848  6,841
Loans:           
Legacy loans   2,725,254  2,363,305  2,084,551  2,008,550  1,917,155
Allowance for loan losses   (31,709)  (31,275)  (30,072)  (28,474)  (27,470)
Loans acquired, not covered by FDIC loss share           
(net of discount and allowance)   2,020,236  2,228,841  1,197,601  620,505  481,658
Loans acquired, covered by FDIC loss share           
(net of discount and allowance)   89,578  97,795  104,701  111,618  119,372
Net loans   4,803,359  4,658,666  3,356,781  2,712,199  2,490,715
FDIC indemnification asset   10,838  15,448  21,515  24,457  28,311
Premises and equipment   191,107  200,875  150,564  117,018  115,577
Premises held for sale   5,775  6,131  6,126  6,794  12,521
Foreclosed assets not covered by FDIC loss share   40,273  42,994  44,059  48,745  51,097
Foreclosed assets covered by FDIC loss share   12,345  12,313  11,902  13,964  16,073
Interest receivable   24,403  23,260  19,181  17,738  15,743
Bank owned life insurance   118,489  117,662  91,760  76,578  63,798
Goodwill   314,282  314,060  175,901  109,837  88,590
Other intangible assets   45,712  47,302  31,102  17,748  15,321
Other assets   100,872  76,275  58,536  50,566  52,234
Total assets   $ 7,607,767  $ 7,695,692  $ 5,770,734  $ 4,704,706  $ 4,438,807
           
LIABILITIES AND STOCKHOLDERS' EQUITY           
Deposits:           
Non-interest bearing transaction accounts   $ 1,121,078  $ 1,088,474  $ 946,979  $ 895,470  $ 828,340
Interest bearing transaction accounts and savings deposits   3,600,930  3,621,060  2,601,046  2,010,827  1,869,095
Time deposits less than $100,000   694,872  739,748  573,867  545,986  555,837
Time deposits greater than $100,000   703,056  748,460  580,625  458,117  457,489
Total deposits   6,119,936  6,197,742  4,702,517  3,910,400  3,710,761
Federal funds purchased and securities sold under agreements to repurchase   109,311  116,258  121,568  117,661  108,357
Other borrowings   197,832  179,080  183,953  121,691  117,664
Subordinated debentures   61,851  62,981  35,686  20,620  20,620
Accrued interest and other liabilities   74,696  70,312  43,825  38,869  38,950
Total liabilities   6,563,626  6,626,373  5,087,549  4,209,241  3,996,352
           
Stockholders' equity:           
Preferred stock   30,852  30,885  10,970  --   -- 
Common stock   299  299  223  180  169
Surplus   641,738  640,172  328,830  155,672  111,551
Undivided profits   371,291  396,609  343,973  341,042  332,184
Accumulated other comprehensive income (loss):           
Unrealized appreciation (depreciation) on AFS securities   (39)  1,354  (811)  (1,429)  (1,449)
Total stockholders' equity   1,044,141  1,069,319  683,185  495,465  442,455
Total liabilities and stockholders' equity   $ 7,607,767  $ 7,695,692  $ 5,770,734  $ 4,704,706  $ 4,438,807
           
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)   2015   2015   2015   2014   2014 
($ in thousands, except per share data)
INTEREST INCOME           
Loans   $ 76,432  $ 70,438  $ 50,986  $ 45,248  $ 40,082
Federal funds sold   15  73  29  13  12
Investment securities   8,335  8,050  5,879  5,325  4,717
Mortgage loans held for sale   291  375  148  188  269
Assets held in trading accounts   4  4  3  4  3
Interest bearing balances due from banks   122  229  210  167  132
TOTAL INTEREST INCOME   85,199  79,169  57,255  50,945  45,215
INTEREST EXPENSE           
Time deposits   1,936  2,064  1,596  1,470  1,461
Other deposits   2,222  2,131  1,348  872  771
Federal funds purchased and securities sold under agreements to repurchase   55  57  64  61  55
Other borrowings   1,812  1,151  1,051  992  996
Subordinated debentures   498  559  234  160  160
TOTAL INTEREST EXPENSE   6,523  5,962  4,293  3,555  3,443
NET INTEREST INCOME   78,676  73,207  52,962  47,390  41,772
Provision for loan losses   1,615  3,006  1,171  3,607  1,128
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES   77,061  70,201  51,791  43,783  40,644
NON-INTEREST INCOME           
Trust income   2,215  2,070  2,251  2,182  1,838
Service charges on deposit accounts   8,488  8,031  6,363  6,552  6,238
Other service charges and fees   3,089  3,130  1,827  1,083  808
Mortgage lending income   3,446  3,449  2,262  1,457  1,812
Investment banking income   663  593  894  451  284
Debit and credit card fees   6,879  6,486  5,648  5,653  5,769
Bank owned life insurance income   748  746  572  727  411
Gain on sale of securities, net   40  --   (38)  (12)  (18)
Net (loss) gain on assets covered by FDIC loss-share agreements   (9,085)  (3,056)  (2,671)  (3,013)  (3,744)
Other income   7,006  3,863  1,390  6,424  2,637
TOTAL NON-INTEREST INCOME   23,489  25,312  18,498  21,504  16,035
NON-INTEREST EXPENSE           
Salaries and employee benefits   37,417  35,475  26,771  25,126  20,892
Occupancy expense, net   4,812  5,051  3,557  2,494  3,204
Furniture and equipment expense   4,202  3,241  3,268  2,732  2,363
Other real estate and foreclosure expense   2,297  1,017  381  1,395  1,864
Deposit insurance   1,013  1,096  870  724  877
Merger-related costs   857  1,247  10,419  1,214  3,628
Other operating expenses   17,314  18,041  12,106  13,294  11,526
TOTAL NON-INTEREST EXPENSE   67,912  65,168  57,372  46,979  44,354
NET INCOME BEFORE INCOME TAXES   32,638  30,345  12,917  18,308  12,325
Provision for income taxes   10,963  10,250  4,182  5,669  3,537
NET INCOME   21,675  20,095  8,735  12,639  8,788
Preferred stock dividends   77  77  26  --   -- 
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS   $ 21,598  $ 20,018  $ 8,709  $ 12,639  $ 8,788
BASIC EARNINGS PER SHARE   $ 0.72  $ 0.67  $ 0.39  $ 0.72  $ 0.52
DILUTED EARNINGS PER SHARE   $ 0.72  $ 0.67  $ 0.39  $ 0.72  $ 0.52
         
Simmons First National Corporation         SFNC 
Consolidated Risk-Based Capital 
For the Quarters Ended   Sep 30   Jun 30   Mar 31   Dec 31   Sep 30 
(Unaudited)   2015   2015   2015   2014   2014 
($ in thousands)
Tier 1 capital          
Stockholders' equity   $ 1,045,441  $ 1,025,105  $ 1,013,737  $ 494,319  $ 482,642
Trust preferred securities, net allowable   61,906  61,794  61,410  20,000  20,000
Disallowed intangible assets, net of deferred tax   (314,735)  (342,590)  (344,140)  (112,545)  (109,698)
Unrealized (gain) loss on AFS securities   (2,718)  1,400  (1,855)  1,336  1,952
Other   --   (10,297)  (4,789)  --   -- 
Total Tier 1 capital   789,894  735,412  724,363  403,110  394,896
           
Tier 2 capital          
Qualifying unrealized gain on AFS equity securities   --   --   --   2  -- 
Qualifying allowance for loan losses and reserve for unfunded commitments   34,097  34,284  32,600  32,073  29,167
Total Tier 2 capital   34,097  34,284  32,600  32,075  29,167
Total risk-based capital   $ 823,991  $ 769,696  $ 756,963  $ 435,185  $ 424,063
           
Common equity          
Tier 1 capital   $ 789,894  $ 735,412  $ 724,363  --   -- 
Less: Non-cumulative preferred stock   (30,852)  (30,852)  (30,852)  --   -- 
Less: Trust preferred securities   (61,906)  (61,794)  (61,410)  --   -- 
Total common equity   $ 697,136  $ 642,766  $ 632,101  --   -- 
           
Risk weighted assets   $ 4,986,641  $ 4,714,852  $ 4,659,065  $ 3,002,270  $ 3,063,801
           
Adjusted average assets for leverage ratio   $ 7,293,113  $ 7,350,900  $ 5,428,706  $ 4,593,924  $ 4,331,488
           
Ratios at end of quarter          
Equity to assets  13.83% 13.46% 12.97% 10.65% 10.29%
Tangible common equity to tangible assets  9.10% 8.73% 8.32% 8.06% 7.78%
Common equity Tier 1 ratio (CET1)  13.98% 13.63% 13.57%  --   -- 
Tier 1 leverage ratio  10.83% 10.00% 13.34% 8.77% 9.12%
Tier 1 risk-based capital ratio  15.84% 15.60% 15.55% 13.43% 12.89%
Total risk-based capital ratio  16.52% 16.32% 16.25% 14.50% 13.84%
         
Simmons First National Corporation         SFNC 
Consolidated Loans and Investments 
For the Quarters Ended   Sep 30   Jun 30   Mar 31   Dec 31   Sep 30 
(Unaudited)   2015   2015   2015   2014   2014 
($ in thousands)
Legacy Loan Portfolio - End of Period (1)          
Consumer           
Credit cards   $ 171,701  $ 174,074  $ 171,413  $ 185,380  $ 175,822
Student loans   --   --   --   --   -- 
Other consumer   182,472  160,828  107,486  103,402  105,508
Total consumer   354,173  334,902  278,899  288,782  281,330
Real Estate           
Construction   253,761  199,707  178,929  181,968  163,364
Single-family residential   623,089  662,954  507,351  455,563  436,925
Other commercial   1,037,559  878,109  716,021  714,797  681,848
Total real estate   1,914,409  1,740,770  1,402,301  1,352,328  1,282,137
Commercial           
Commercial   394,422  388,869  324,815  291,820  249,186
Agricultural   170,257  141,502  105,228  115,658  145,157
Total commercial   564,679  530,371  430,043  407,478  394,343
Other   6,017  5,186  4,137  5,133  5,568
Total Loans   $ 2,839,278  $ 2,611,229  $ 2,115,380  $ 2,053,721  $ 1,963,378
           
 (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   $ 285,071  $ 361,744  $ 390,625  $ 418,914  $ 455,827
Mortgage-backed securities   25,913  27,146  28,535  29,743  30,954
State and political subdivisions   464,245  471,631  482,316  328,310  335,329
Other securities   1,065  1,075  947  620  620
Total held-to-maturity   776,294  861,596  902,423  777,587  822,730
Available-for-Sale           
U.S. Treasury   $ 4,008  $ 4,005  $ 4,008  $ 3,992  $ 3,991
U.S. Government agencies   153,576  236,003  346,315  272,816  280,321
Mortgage-backed securities   502,344  464,857  312,011  1,572  32
State and political subdivisions   10,976  10,971  13,452  6,540  8,903
FHLB stock   14,275  13,619  15,256  5,126  5,623
Other securities   18,168  18,246  16,341  15,237  18,603
Total available-for-sale   703,347  747,701  707,383  305,283  317,473
Total investment securities   $ 1,479,641  $ 1,609,297  $ 1,609,806  $ 1,082,870  $ 1,140,203
Fair value - HTM investment securities   $ 785,030  $ 863,349  $ 913,037  $ 780,534  $ 823,446
           
Investment Securities - QTD Average          
Taxable securities   $ 1,088,597  $ 1,163,708  $ 893,946  $ 782,062  $ 781,685
Tax exempt securities   478,436  492,118  391,561  342,886  329,327
Total investment securities - QTD average   $ 1,567,033  $ 1,655,826  $ 1,285,507  $ 1,124,948  $ 1,111,012
           
Simmons First National Corporation           SFNC 
Consolidated Loans and Credit Coverage           
For the Quarters Ended   Sep 30   Jun 30   Mar 31   Dec 31   Sep 30 
(Unaudited)   2015   2015   2015   2014   2014 
($ in thousands) 
LOANS           
Legacy loans   $ 2,839,278  $ 2,611,229  $ 2,115,380  $ 2,053,721  $ 1,963,378
Allowance for loan losses (legacy loans)   (30,380)  (30,567)  (29,183)  (29,028)  (27,076)
Legacy loans (net of allowance)   2,808,898  2,580,662  2,086,197  2,024,693  1,936,302
Loans acquired, not covered by FDIC loss share   2,085,211  2,171,388  2,491,316  621,020  733,914
Credit discount   (70,441)  (63,082)  (72,876)  (45,040)  (57,858)
Allowance for loan losses (loans acquired, not covered)   (954)  --   --   --   -- 
Loans acquired, not covered (net of discount and allowance)   2,013,816  2,108,306  2,418,440  575,980  676,056
Loans acquired, covered by FDIC loss share   --   114,296  126,629  140,038  154,183
Credit discount   --   (20,221)  (23,207)  (32,151)  (36,025)
Allowance for loan losses (acquired covered loans)   --   (954)  (954)  (954)  -- 
Loans acquired, covered (net of discount and allowance)   --   93,121  102,468  106,933  118,158
Net loans   $ 4,822,714  $ 4,782,089  $ 4,607,105  $ 2,707,606  $ 2,730,516
           
           
Loan Coverage Ratios          
Allowance for loan losses to legacy loans  1.07% 1.17% 1.38% 1.41% 1.38%
           
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)  3.42% 3.69% 3.71% 10.27% 10.57%
           
Total allowance and credit coverage (non-GAAP)  2.07% 2.34% 2.67% 3.81% 4.24%
         
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)   2015   2015   2015   2014   2014 
($ in thousands)
Allowance for Loan Losses (Legacy Loans)          
Balance, beginning of quarter   $ 30,567  $ 29,183  $ 29,028  $ 27,076  $ 27,530
Loans charged off           
Credit cards   763  802  785  859  788
Other consumer   597  366  220  781  648
Real estate   109  333  293  200  534
Commercial   516  --   245  310  474
Total loans charged off   1,985  1,501  1,543  2,150  2,444
           
Recoveries of loans previously charged off           
Credit cards   213  241  213  220  190
Other consumer   78  187  133  94  122
Real estate   25  46  12  56  379
Commercial   --   9  169  125  171
Total recoveries   316  483  527  495  862
Net loans charged off   1,669  1,018  1,016  1,655  1,582
Provision for loan losses   1,482  2,402  1,171  3,607  1,128
Balance, end of quarter   $ 30,380  $ 30,567  $ 29,183  $ 29,028  $ 27,076
           
Non-performing assets (1) (2)          
Non-performing loans           
Nonaccrual loans   15,305  15,565  14,511  12,038  11,212
Loans past due 90 days or more   1,506  1,375  498  961  713
Total non-performing loans   16,811  16,940  15,009  12,999  11,925
Other non-performing assets           
Foreclosed assets held for sale, not covered   48,073  42,666  50,723  44,856  50,770
Other non-performing assets   172  242  215  97  72
Total other non-performing assets   48,245  42,908  50,938  44,953  50,842
Total non-performing assets   $ 65,056  $ 59,848  $ 65,947  $ 57,952  $ 62,767
Performing TDRs (troubled debt restructurings)   $ 1,955  $ 1,959  $ 2,227  $ 2,233  $ 2,234
           
Ratios (1) (2)          
Allowance for loan losses to total loans  1.07% 1.17% 1.38% 1.41% 1.38%
Allowance for loan losses to non-performing loans  181% 180% 194% 223% 227%
Non-performing loans to total loans  0.59% 0.65% 0.71% 0.63% 0.61%
Non-performing assets (including performing TDRs) to total assets  0.89% 0.81% 0.87% 1.30% 1.39%
Non-performing assets to total assets  0.86% 0.79% 0.84% 1.25% 1.34%
Annualized net charge offs to total loans  0.24% 0.17% 0.20% 0.33% 0.33%
Annualized net credit card charge offs to total credit card loans  1.26% 1.31% 1.32% 1.41% 1.31%
Annualized net charge offs to total loans (excluding credit cards)  0.17% 0.08% 0.09% 0.22% 0.22%
           
(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)   2015   2015   2015   2014   2014 
           
ASSETS          
           
Earning Assets          
Interest bearing balances due from banks 0.23% 0.30% 0.23% 0.22% 0.18%
Investment securities 2.65% 2.50% 2.44% 2.49% 2.29%
Mortgage loans held for sale 4.38% 3.99% 4.10% 4.33% 4.28%
Assets held in trading accounts 0.25% 0.24% 0.18% 0.23% 0.17%
Loans, including acquired loans 6.27% 6.03% 6.11% 6.55% 6.32%
Total interest earning assets 5.20% 4.82% 4.68% 4.98% 4.71%
           
LIABILITIES          
           
Interest bearing liabilities          
Interest bearing transaction and savings accounts 0.24% 0.24% 0.21% 0.17% 0.16%
Time deposits 0.55% 0.56% 0.56% 0.58% 0.57%
Total interest bearing deposits 0.33% 0.33% 0.32% 0.31% 0.31%
Federal funds purchased and securities sold under agreement to repurchase 0.20% 0.20% 0.21% 0.21% 0.20%
Other borrowings 3.63% 2.58% 2.32% 3.23% 3.36%
Subordinated debentures 3.19% 3.56% 2.66% 3.08% 3.08%
Total interest bearing liabilities 0.48% 0.44% 0.42% 0.43% 0.44%
           
NET INTEREST MARGIN/SPREAD          
           
Net interest spread 4.72% 4.38% 4.26% 4.55% 4.27%
Net interest margin - quarter-to-date 4.82% 4.47% 4.34% 4.65% 4.36%
Net interest margin - year-to-date 4.58% 4.42% 4.34% 4.47% 4.41%
         
Simmons First National Corporation         SFNC 
Consolidated - Selected Financial Data           
For the Quarters Ended   Sep 30   Jun 30   Mar 31   Dec 31   Sep 30 
(Unaudited)   2015   2015   2015   2014   2014 
($ in thousands, except share data)
QUARTER-TO-DATE          
Financial Highlights - Core (non-GAAP)          
Core earnings (excludes nonrecurring items) (1)   $ 25,565  $ 22,444  $ 15,700  $ 11,387  $ 10,684
Diluted core earnings per share (1)   0.85  0.75  0.70  0.64  0.63
Core net interest margin (FTE) (2)  3.93% 3.87% 3.55% 3.63% 3.51%
Core efficiency ratio (1)  57.54% 58.51% 62.24% 64.32% 64.89%
Core return on average assets (1)  1.33% 1.17% 1.10% 0.96% 0.95%
Core return on average common equity (1)  10.01% 8.67% 9.47% 9.12% 9.58%
Core return on tangible common equity (1)  15.99% 13.80% 14.16% 12.65% 12.84%
Financial Highlights - GAAP          
Net Income   $ 21,598  $ 20,018  $ 8,709  $ 12,639  $ 8,788
Diluted earnings per share   0.72  0.67  0.39  0.72  0.52
Return on average assets  1.13% 1.04% 0.61% 1.07% 0.79%
Return on average common equity  8.46% 7.73% 5.25% 10.12% 7.88%
Return on tangible common equity  13.58% 12.36% 8.07% 14.00% 10.62%
Net interest margin (FTE)  4.82% 4.47% 4.34% 4.65% 4.36%
FTE adjustment   2,172  2,303  1,857  1,751  1,702
Amortization of intangibles   1,265  1,388  899  565  454
Amortization of intangibles, net of taxes   769  844  546  343  276
Average earning assets   6,660,434  6,774,693  5,121,838  4,195,250  3,956,032
Average interest bearing liabilities   5,367,852  5,467,587  4,096,745  3,274,902  3,129,062
Average diluted shares outstanding   30,046,062  29,987,471  22,350,272  18,075,537  16,916,764
Cash dividends declared per common share   0.23  0.23  0.23  0.22  0.22
YEAR-TO-DATE          
Financial Highlights - Core (non-GAAP)          
Core earnings (excludes nonrecurring items) (1)   $ 63,709  $ 38,144  $ 15,700  $ 38,706  $ 27,319
Diluted core earnings per share (1)   2.32  1.46  0.70  2.29  1.65
Core net interest margin (FTE) (2)  3.82% 3.74% 3.55% 3.53% 3.49%
Core efficiency ratio (1)  59.05% 60.08% 62.24% 67.22% 68.41%
Core return on average assets (1)  1.21% 1.14% 1.10% 0.86% 0.83%
Core return on average common equity (1)  9.39% 8.99% 9.47% 8.79% 8.66%
Core return on tangible common equity (1)  14.73% 13.96% 14.16% 11.89% 11.57%
Financial Highlights - GAAP          
Net Income   $ 50,325  $ 28,727  $ 8,709  $ 35,688  $ 23,049
Diluted earnings per share   1.83  1.10  0.39  2.11  1.39
Return on average assets  0.96% 0.86% 0.61% 0.80% 0.70%
Return on average common equity  7.41% 6.77% 5.25% 8.11% 7.30%
Return on tangible common equity  11.73% 10.63% 8.07% 10.99% 9.82%
Net interest margin (FTE)  4.58% 4.42% 4.34% 4.47% 4.41%
FTE adjustment   6,332  4,160  1,857  6,840  5,089
Amortization of intangibles   3,552  2,287  899  1,979  1,359
Amortization of intangibles, net of taxes   2,159  1,390  546  1,203  826
Average earning assets   6,170,521  5,948,265  5,121,838  3,975,903  3,903,290
Average interest bearing liabilities   4,977,397  4,782,167  4,096,745  3,176,716  3,143,984
Average diluted shares outstanding   27,497,813  26,203,942  22,350,272  16,922,026  16,532,689
Cash dividends declared per common share   0.69  0.46  0.23  0.88  0.66
END OF PERIOD          
Book value per share   $ 33.89  $ 33.26  $ 32.93  $ 27.38  $ 26.82
Tangible book value per share   21.89  21.19  20.79  20.15  19.72
Shares outstanding   29,939,698  29,894,903  29,850,034  18,052,488  17,992,261
Full-time equivalent employees   1,967  2,043  2,076  1,338  1,397
Total number of ATM's   183  186  179  124  129
Total number of financial centers   149  152  164  109  113
           
(1) Core earnings exclude nonrecurring items, which is a non-GAAP measurement 
(2) Excludes accretable yield adjustment on loans, which is a non-GAAP measurement 
         
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)   2015   2015   2015   2014   2014 
($ in thousands, except per share data)
QUARTER-TO-DATE          
Net Income   $ 21,598  $ 20,018  $ 8,709  $ 12,639  $ 8,788
Nonrecurring items           
Gain on sale of banking operations  (2,110)  --   --   --   -- 
Loss on FDIC loss-share termination  7,476  --   --   --   -- 
Merger-related costs  857  1,247  10,418  1,218  3,628
Change-in-control payments  --   --   --   885  -- 
Branch right-sizing  304  2,745  35  (4,221)  (705)
Charter consolidation costs  --   --   --   42  196
Tax effect (1)  (2,560)  (1,566)  (3,462)  824  (1,223)
Net nonrecurring items   3,967  2,426  6,991  (1,252)  1,896
Core earnings (non-GAAP)   $ 25,565  $ 22,444  $ 15,700  $ 11,387  $ 10,684
           
Diluted earnings per share   $ 0.72  $ 0.67  $ 0.39  $ 0.72  $ 0.52
Nonrecurring items           
Gain on sale of banking operations  (0.07)  --   --   --   -- 
Loss on FDIC loss-share termination  0.25  --   --   --   -- 
Merger-related costs  0.03  0.04  0.47  0.07  0.21
Change-in-control payments  --   --   --   0.05  -- 
Branch right-sizing  0.01  0.09  --   (0.24)  (0.04)
Charter consolidation costs  --   --   --   --   0.01
Tax effect (1)  (0.09)  (0.05)  (0.16)  0.04  (0.07)
Net nonrecurring items   0.13  0.08  0.31  (0.08)  0.11
Core earnings (non-GAAP)   $ 0.85  $ 0.75  $ 0.70  $ 0.64  $ 0.63
           
YEAR-TO-DATE          
Net Income   $ 50,325  $ 28,727  $ 8,709  $ 35,687  $ 23,049
Nonrecurring items           
Gain on sale of merchant services  --   --   --   (1,000)  (1,000)
Gain on sale of banking operations  (2,110)  --   --   --   -- 
Loss on FDIC loss-share termination  7,476  --   --   --   -- 
Merger-related costs  12,522  11,665  10,418  7,472  6,254
Change-in-control payments  --   --   --   885  -- 
Branch right-sizing  3,084  2,780  35  (3,059)  1,162
Charter consolidation costs  --   --   --   652  610
Tax effect (1)  (7,588)  (5,028)  (3,462)  (1,931)  (2,745)
Net nonrecurring items   13,384  9,417  6,991  3,019  4,281
Core earnings (non-GAAP)   $ 63,709  $ 38,144  $ 15,700  $ 38,706  $ 27,330
           
Diluted earnings per share   $ 1.83  $ 1.10  $ 0.39  $ 2.11  $ 1.39
Nonrecurring items           
Gain on sale of merchant services  --   --   --   (0.06)  (0.06)
Gain on sale of banking operations  (0.07)  --   --   --   -- 
Loss on FDIC loss-share termination  0.27  --   --   --   -- 
Merger-related costs  0.46  0.45  0.47  0.44  0.37
Change-in-control payments  --   --   --   0.05  -- 
Branch right-sizing  0.11  0.11  --   (0.16)  0.08
Charter consolidation costs  --   --   --   0.04  0.04
Tax effect (1)  (0.28)  (0.20)  (0.16)  (0.13)  (0.17)
Net nonrecurring items   0.49  0.36  0.31  0.18  0.26
Core earnings (non-GAAP)   $ 2.32  $ 1.46  $ 0.70  $ 2.29  $ 1.65
           
(1) Effective tax rate of 39.225%, adjusted for non-deductible merger-related costs.          
FOR MORE INFORMATION CONTACT:
J. BURTON HICKS
Chief of Staff and Investor Relations Officer
Simmons First National Corporation
(870) 541-1000