PINE BLUFF, Ark., April 21, 2016 (GLOBE NEWSWIRE) -- Simmons First National Corporation (NASDAQ:SFNC) today announced core earnings of $23.2 million for the first quarter of 2016, an increase of $7.5 million, or 47.7 percent, compared with the same quarter last year. Diluted core earnings per share were $0.76, an increase of $0.06, or 8.6 percent.

Including the non-core items, net income was $23.5 million for the first quarter of 2016, an increase of $14.8 million, or 169.6 percent, compared with the same quarter last year. Diluted earnings per share were $0.77, an increase of $0.38, or 97.4 percent.

“We believe that our operating results reflect the successful integration of 12 separately chartered banks and two trust companies over the past two years. We continue to pursue growth opportunities and improvement in our organization as evidenced by our recent charter conversion to a state member bank,” said George A. Makris, Jr., chairman and CEO.

Loans

Total loans, including those acquired, were $4.9 billion at March 31, 2016, an increase of $290 million, or 6.3 percent, compared with the same period in 2015. Legacy loans (all loans excluding acquired loans) grew $1.4 billion, or 64.2 percent. On a linked quarter basis, total loan growth was $10.7 million. Adjusting for seasonality in the credit card and agricultural loan portfolios, loans grew by $31.4 million during the quarter. 

Deposits

At March 31, 2016, total deposits were $6.1 billion, a decrease of $195 million, or 3.1 percent, compared with the same period in 2015. Total non-time deposits were $4.8 billion, or 78.9 percent of total deposits.

Net Interest Income

The company’s net interest income for the first quarter of 2016 was $70.2 million, an increase of $17.3 million, or 32.6 percent, from the same period of 2015. This increase was driven by growth in the legacy loan portfolio and earning assets acquired through the Community First and Liberty transactions. Net interest margin was 4.41 percent for the quarter ended March 31, 2016, a 7 basis-point increase from the same quarter of 2015.

Included in interest income was the yield accretion recognized on acquired loans of $8.1 million and $10.0 million for the first quarter of 2016 and 2015, respectively. The company’s core net interest margin, excluding the accretion, was 3.92 percent for the first quarter of 2016, a 37 basis-point increase from the same quarter of 2015.

Non-Interest Income

Non-interest income for the first quarter was $29.5 million, an increase of $11.2 million compared with the first quarter of 2015. The increase in non-interest income was primarily due to additional service charge and fee income, mortgage lending and trust income resulting from the 2015 acquisitions and gains on sale of other real estate and investment securities. Additional trust income resulted from the completed acquisition of Ozark Trust. Included in the quarter was $594,000 of gain related to the early retirement of trust preferred securities. Losses on FDIC-covered assets decreased by $2.7 million with the elimination of indemnification asset amortization due to the company’s 2015 termination of loss-sharing agreements with the FDIC.

Non-Interest Expense

Non-interest expense for the first quarter of 2016 was $61.8 million. Included in the quarter were $107,000 of merger-related and branch right-sizing expenses.

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, 2016, the allowance for loan losses for legacy loans was $32.7 million, with a $1.0 million allowance for acquired loans. The loan discount credit mark was $45.1 million, for a total of $78.8 million of coverage. This equates to a total coverage ratio of 1.6 percent of gross loans. The ratio of credit mark and related allowance to acquired loans was 3.1 percent.

The company's allowance for loan losses on legacy loans at March 31, 2016 was 0.94 percent of total loans and 93 percent of non-performing loans. In the legacy portfolio, non-performing loans as a percent of total loans were 1.01 percent. The increase in the non-performing ratio from the fourth quarter is primarily the result of a single credit totaling $13.5 million. Excluding this credit, the non-performing ratio was relatively unchanged from the previous quarter, at 0.62 percent versus 0.58 percent.  The 2016 year-to-date net charge-off ratio, excluding credit cards, was 11 basis points, and the year-to-date credit card charge-off ratio was 1.46 percent.

Capital

At March 31, 2016, common stockholders' equity was $1.1 billion, book value per share was $35.35 and tangible book value per share was $22.84. The company's ratio of stockholders' equity to total assets was 14.22 percent and its ratio of tangible common equity to tangible assets was 9.7 percent.

Simmons First National Corporation

Simmons First National Corporation is an Arkansas-based financial holding company with total assets of $7.5 billion, 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, April 21, 2016. 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 84913510. 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  Mar 31  Dec 31  Sep 30  Jun 30  Mar 31 
 (Unaudited)   2016    2015    2015    2015    2015  
($ in thousands)     
ASSETS      
Cash and non-interest bearing balances due from banks$118,468 $97,656 $106,678 $69,770 $83,424 
Interest bearing balances due from banks 100,593  154,606  284,645  173,130  423,986 
Federal funds sold   4,000    -     9,675    49,570    178,418 
Cash and cash equivalents 223,061  252,262  400,998  292,470  685,828 
Interest bearing balances due from banks - time 11,188  14,107  16,504  24,189  25,000 
Investment securities - held-to-maturity 674,502  705,373  776,294  861,596  902,423 
Investment securities - available-for-sale 857,673  821,407  703,347  747,701  707,383 
Mortgage loans held for sale 24,563  30,265  15,556  48,094  25,513 
Assets held in trading accounts 7,074  4,422  6,292  6,481  6,528 
Loans:     
Legacy loans 3,472,691  3,246,454  2,839,278  2,611,229  2,115,380 
Allowance for loan losses (32,681) (31,351) (30,380) (30,567) (29,183)
Loans acquired, not covered by FDIC loss share     
(net of discount and allowance) 1,457,370  1,672,901  2,013,816  2,108,306  2,418,440 
Loans acquired, covered by FDIC loss share     
(net of discount and allowance)   -     -     -     93,121    102,468 
Net loans 4,897,380  4,888,004  4,822,714  4,782,089  4,607,105 
FDIC indemnification asset -  -  -  13,020  15,965 
Premises and equipment 192,327  193,618  190,182  191,335  198,106 
Premises held for sale 2,364  923  923  6,587  - 
Foreclosed assets not covered by FDIC loss share 41,126  44,820  48,073  42,666  50,723 
Foreclosed assets covered by FDIC loss share   -     -     -     12,833    12,010 
Interest receivable   23,545    25,793    26,873    24,129    24,719 
Bank owned life insurance   130,092    131,536    118,922    118,073    117,296 
Goodwill   327,686    327,686    314,344    314,344    314,344 
Other intangible assets 51,783  53,237  44,904  46,605  47,960 
Other assets   72,589    66,205    73,768    82,146    74,897 
Total assets$  7,536,953 $  7,559,658 $  7,559,694 $  7,614,358 $  7,815,800 
      
LIABILITIES AND STOCKHOLDERS' EQUITY      
Deposits:     
Non-interest bearing transaction accounts$1,274,816 $1,280,234 $1,212,724 $1,141,285 $1,123,966 
Interest bearing transaction accounts and savings deposits 3,524,808  3,485,845  3,521,840  3,581,049  3,627,870 
Time deposits less than $100,000 674,915  694,262  673,651  719,606  756,978 
Time deposits greater than $100,000   605,236    625,755    681,585    728,082    765,894 
Total deposits 6,079,775  6,086,096  6,089,800  6,170,022  6,274,708 
Federal funds purchased and securities sold     
under agreements to repurchase 97,429  99,398  110,437  111,792  111,484 
Other borrowings 176,829  162,289  173,426  171,321  284,386 
Subordinated debentures 60,077  60,570  61,906  61,794  61,644 
Accrued interest and other liabilities   50,859    74,450    78,684    74,324    69,841 
Total liabilities   6,464,969    6,482,803    6,514,253    6,589,253    6,802,063 
      
Stockholders' equity:     
Preferred stock   -     30,852    30,852    30,852    30,852 
Common stock   303    303    299    299    299 
Surplus   665,850    662,378    642,400    640,895    639,493 
Undivided profits   402,265    385,987    369,172    354,459    341,238 
Accumulated other comprehensive income (loss):     
Unrealized appreciation (depreciation) on AFS securities   3,566    (2,665)   2,718    (1,400)   1,855 
Total stockholders' equity   1,071,984    1,076,855    1,045,441    1,025,105    1,013,737 
Total liabilities and stockholders' equity$  7,536,953 $  7,559,658 $  7,559,694 $  7,614,358 $  7,815,800 

 

 Simmons First National Corporation      SFNC 
 Consolidated Average Quarter-to-Date Balance Sheets     
 For the Quarters Ended  Mar 31  Dec 31  Sep 30  Jun 30  Mar 31 
 (Unaudited)   2016    2015    2015    2015    2015  
($ in thousands)     
ASSETS      
Cash and non-interest bearing balances due from banks$  109,288 $  103,204 $  94,695 $  69,137 $  59,711 
Interest bearing balances due from banks   154,755    232,446    206,467    308,756    371,195 
Federal funds sold   1,839    1,930    19,086    75,922    56,846 
Cash and cash equivalents   265,882    337,580    320,248    453,815    487,752 
Interest bearing balances due from banks - time   12,626    15,484    20,251    26,817    8,611 
Investment securities - held-to-maturity   691,170    733,349    728,437    922,877    915,405 
Investment securities - available-for-sale   815,502    773,550    838,596    732,949    370,102 
Mortgage loans held for sale   26,616    21,294    26,379    37,656    14,655 
Assets held in trading accounts   5,196    6,150    6,401    6,592    6,782 
Loans:     
Legacy loans   3,324,549    2,898,987    2,725,254    2,363,305    2,084,551 
Allowance for loan losses   (31,992)   (31,521)   (31,709)   (31,275)   (30,072)
Loans acquired, not covered by FDIC loss share     
(net of discount and allowance)   1,565,136    1,969,296    2,020,236    2,228,841    1,197,601 
Loans acquired, covered by FDIC loss share     
(net of discount and allowance)   -     -     89,578    97,795    104,701 
Net loans   4,857,693    4,836,762    4,803,359    4,658,666    3,356,781 
FDIC indemnification asset   -     -     10,838    15,448    21,515 
Premises and equipment   193,543    192,414    191,107    200,875    150,564 
Premises held for sale   1,414    923    5,775    6,131    6,126 
Foreclosed assets not covered by FDIC loss share   43,815    46,860    40,273    42,994    44,059 
Foreclosed assets covered by FDIC loss share   -     -     12,345    12,313    11,902 
Interest receivable   23,736    25,999    24,403    23,260    19,181 
Bank owned life insurance   131,895    128,339    118,489    117,662    91,760 
Goodwill   327,677    320,216    314,282    314,060    175,901 
Other intangible assets   52,498    44,302    45,712    47,302    31,102 
Other assets   49,922    67,347    100,872    76,275    58,536 
Total assets$  7,499,185 $  7,550,569 $  7,607,767 $  7,695,692 $  5,770,734 
      
 LIABILITIES AND STOCKHOLDERS' EQUITY      
Deposits:     
Non-interest bearing transaction accounts$  1,225,311 $  1,295,713 $  1,121,078 $  1,088,474 $  946,979 
Interest bearing transaction accounts and savings deposits   3,484,571    3,442,857    3,600,930    3,621,060    2,601,046 
Time deposits less than $100,000   685,382    689,368    694,872    739,748    573,867 
Time deposits greater than $100,000   618,232    649,048    703,056    748,460    580,625 
Total deposits   6,013,496    6,076,986    6,119,936    6,197,742    4,702,517 
Federal funds purchased and securities sold     
under agreements to repurchase   113,551    108,389    109,311    116,258    121,568 
Other borrowings   184,000    167,167    197,832    179,080    183,953 
Subordinated debentures   60,109    61,697    61,851    62,981    35,686 
Accrued interest and other liabilities   53,240    73,768    74,696    70,312    43,825 
Total liabilities   6,424,396    6,488,007    6,563,626    6,626,373    5,087,549 
      
Stockholders' equity:     
Preferred stock   9,493    30,852    30,852    30,885    10,970 
Common stock   303    301    299    299    223 
Surplus   664,926    651,824    641,738    640,172    328,830 
Undivided profits   398,808    379,064    371,291    396,609    343,973 
Accumulated other comprehensive income (loss):     
Unrealized appreciation (depreciation) on AFS securities   1,259    521    (39)   1,354    (811)
Total stockholders' equity   1,074,789    1,062,562    1,044,141    1,069,319    683,185 
Total liabilities and stockholders' equity$  7,499,185 $  7,550,569 $  7,607,767 $  7,695,692 $  5,770,734 

 

 Simmons First National Corporation      SFNC 
 Consolidated Statements of Income - Quarter-to-Date      
 For the Quarters Ended Mar 31Dec 31Sep 30Jun 30Mar 31
 (Unaudited)   2016    2015    2015    2015    2015  
($ in thousands, except per share data)     
INTEREST INCOME      
Loans$66,678 $70,511 $76,432 $70,438 $50,986 
Federal funds sold 10  10  15  73  29 
Investment securities 8,506  8,350  8,335  8,050  5,879 
Mortgage loans held for sale 278  237  291  375  148 
Assets held in trading accounts 6  6  4  4  3 
Interest bearing balances due from banks   144    225    122    229    210 
TOTAL INTEREST INCOME   75,622    79,339    85,199    79,169    57,255 
INTEREST EXPENSE      
Time deposits 1,636  1,858  1,936  2,064  1,596 
Other deposits 2,018  2,105  2,222  2,131  1,348 
Federal funds purchased and securities     
sold under agreements to repurchase 65  60  55  57  64 
Other borrowings 1,128  1,084  1,812  1,151  1,051 
Subordinated debentures 543  481  498  559  234 
TOTAL INTEREST EXPENSE 5,390  5,588  6,523  5,962  4,293 
NET INTEREST INCOME  70,232  73,751  78,676  73,207  52,962 
Provision for loan losses 2,823  3,230  1,615  3,006  1,171 
NET INTEREST INCOME AFTER PROVISION      
FOR LOAN LOSSES  67,409  70,521  77,061  70,201  51,791 
NON-INTEREST INCOME      
Trust income 3,631  2,725  2,215  2,070  2,251 
Service charges on deposit accounts 7,316  8,104  8,488  8,031  6,363 
Other service charges and fees 1,909  1,654  2,672  2,766  1,666 
Mortgage lending income 3,792  2,298  3,446  3,449  2,262 
Investment banking income 687  784  663  593  894 
Debit and credit card fees 7,200  7,647  6,879  6,486  5,648 
Bank owned life insurance income 997  614  748  746  572 
Gain on sale of securities, net 329  305  40  -  (38)
Net (loss) gain on assets covered by FDIC loss-share agreements -  -  (9,085) (3,056) (2,671)
Other income   3,642    4,518    7,006    3,863    1,390 
TOTAL NON-INTEREST INCOME   29,503    28,649    23,072    24,948    18,337 
NON-INTEREST EXPENSE      
Salaries and employee benefits 34,773  39,523  37,000  35,111  26,610 
Occupancy expense, net 4,471  3,418  4,812  5,051  3,557 
Furniture and equipment expense 3,947  3,731  4,202  3,241  3,268 
Other real estate and foreclosure expense 966  1,167  2,297  1,017  381 
Deposit insurance 1,148  1,222  1,013  1,096  870 
Merger-related costs 93  1,237  857  1,247  10,419 
Other operating expenses   16,391    17,508    17,314    18,041    12,106 
TOTAL NON-INTEREST EXPENSE   61,789    67,806    67,495    64,804    57,211 
NET INCOME BEFORE INCOME TAXES  35,123  31,364  32,638  30,345  12,917 
Provision for income taxes   11,618    7,505    10,963    10,250    4,182 
NET INCOME  23,505  23,859  21,675  20,095  8,735 
Preferred stock dividends   24    77    77    77    26 
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $  23,481 $  23,782 $  21,598 $  20,018 $  8,709 
BASIC EARNINGS PER SHARE $  0.77 $  0.79 $  0.72 $  0.67 $  0.39 
DILUTED EARNINGS PER SHARE $  0.77 $  0.78 $  0.72 $  0.67 $  0.39 

 

 Simmons First National Corporation      SFNC 
 Consolidated Core Earnings - Quarter-to-Date (non-GAAP)     
 For the Quarters Ended Mar 31Dec 31Sep 30Jun 30Mar 31
 (Unaudited)   2016    2015    2015    2015    2015  
($ in thousands, except per share data)     
INTEREST INCOME      
Loans$66,678 $70,511 $76,432 $70,438 $50,986 
Federal funds sold 10  10  15  73  29 
Investment securities 8,506  8,350  8,335  8,050  5,879 
Mortgage loans held for sale 278  237  291  375  148 
Assets held in trading accounts 6  6  4  4  3 
Interest bearing balances due from banks 144  225  122  229  210 
TOTAL INTEREST INCOME 75,622  79,339  85,199  79,169  57,255 
INTEREST EXPENSE      
Time deposits 1,636  1,858  1,936  2,064  1,596 
Other deposits 2,018  2,105  2,222  2,131  1,348 
Federal funds purchased and securities     
sold under agreements to repurchase 65  60  55  57  64 
Other borrowings 1,128  1,084  1,812  1,151  1,051 
Subordinated debentures 543  481  498  559  234 
TOTAL INTEREST EXPENSE 5,390  5,588  6,523  5,962  4,293 
NET INTEREST INCOME  70,232  73,751  78,676  73,207  52,962 
Provision for loan losses 2,823  3,230  1,615  3,006  1,171 
NET INTEREST INCOME AFTER PROVISION      
FOR LOAN LOSSES  67,409  70,521  77,061  70,201  51,791 
NON-INTEREST INCOME      
Trust income 3,631  2,725  2,215  2,070  2,251 
Service charges on deposit accounts 7,316  8,104  8,488  8,031  6,363 
Other service charges and fees 1,909  1,654  2,672  2,766  1,666 
Mortgage lending income 3,792  2,298  3,446  3,449  2,262 
Investment banking income 687  784  663  593  894 
Debit and credit card fees 7,200  7,647  6,879  6,486  5,648 
Bank owned life insurance income 997  614  748  746  572 
Gain on sale of securities, net 329  305  40  -  (38)
Net (loss) gain on assets covered by FDIC loss-share agreements -  -  (1,609) (3,056) (2,671)
Other income 3,048  4,518  4,737  4,396  1,381 
TOTAL NON-INTEREST INCOME 28,909  28,649  28,279  25,481  18,328 
NON-INTEREST EXPENSE      
Salaries and employee benefits 34,773  37,314  36,919  34,960  26,610 
Occupancy expense, net 4,461  3,358  4,680  5,013  3,523 
Furniture and equipment expense 3,947  3,731  4,172  3,209  3,268 
Other real estate and foreclosure expense 966  1,167  2,297  1,017  381 
Deposit insurance 1,148  1,222  1,013  1,096  870 
Other operating expenses 16,387  17,508  17,094  16,050  12,097 
TOTAL NON-INTEREST EXPENSE 61,682  64,300  66,175  61,345  46,749 
CORE EARNINGS BEFORE INCOME TAXES (non-GAAP)  34,636  34,870  39,165  34,337  23,370 
Provision for income taxes 11,427  8,880  13,523  11,816  7,644 
CORE EARNINGS (non-GAAP)  23,209  25,990  25,642  22,521  15,726 
Preferred stock dividends 24  77  77  77  26 
CORE EARNINGS AVAILABLE TO COMMON S/H (non-GAAP) $23,185 $25,913 $25,565 $22,444 $15,700 
BASIC CORE EARNINGS PER SHARE (non-GAAP) $0.76 $0.86 $0.85 $0.75 $0.71 
DILUTED CORE EARNINGS PER SHARE (non-GAAP) $0.76 $0.86 $0.85 $0.75 $0.70 

 

 Simmons First National Corporation     SFNC 
 Consolidated Risk-Based Capital      
 For the Quarters Ended  Mar 31  Dec 31  Sep 30  Jun 30  Mar 31 
 (Unaudited)   2016    2015    2015    2015    2015  
($ in thousands)     
Tier 1 capital     
Stockholders' equity$  1,071,984 $  1,076,855 $  1,045,441 $  1,025,105 $  1,013,737 
Trust preferred securities, net allowable   60,077    60,570    61,906    61,794    61,410 
Disallowed intangible assets, net of deferred tax   (335,166)   (331,931)   (314,735)   (342,590)   (344,140)
Unrealized loss (gain) on AFS securities   (3,566)   2,665    (2,718)   1,400    (1,855)
Other   -     -     -     (10,297)   (4,789)
Total Tier 1 capital   793,329    808,159    789,894    735,412    724,363 
      
Tier 2 capital     
Qualifying unrealized gain on AFS equity securities   -     -     -     -     -  
Qualifying allowance for loan losses and     
reserve for unfunded commitments   36,398    35,068    34,097    34,284    32,600 
Total Tier 2 capital   36,398    35,068    34,097    34,284    32,600 
Total risk-based capital$  829,727 $  843,227 $  823,991 $  769,696 $  756,963 
      
Common equity     
Tier 1 capital$  793,329 $  808,159 $  789,894 $  735,412 $  724,363 
Less: Non-cumulative preferred stock   -     (30,852)   (30,852)   (30,852)   (30,852)
Less: Trust preferred securities   (60,077)   (60,570)   (61,906)   (61,794)   (61,410)
Total common equity$  733,252 $  716,737 $  697,136 $  642,766 $  632,101 
      
Risk weighted assets$  5,293,395 $  5,044,453 $  4,986,641 $  4,714,852 $  4,659,065 
      
Adjusted average assets for leverage ratio$  7,167,839 $  7,218,559 $  7,293,113 $  7,350,900 $  5,428,706 
      
Ratios at end of quarter     
Equity to assets 14.22% 14.24% 13.83% 13.46% 12.97%
Tangible common equity to tangible assets 9.68% 9.26% 9.10% 8.73% 8.32%
Common equity Tier 1 ratio (CET1) 13.85% 14.21% 13.98% 13.63% 13.57%
Tier 1 leverage ratio 11.07% 11.20% 10.83% 10.00% 13.34%
Tier 1 risk-based capital ratio 14.99% 16.02% 15.84% 15.60% 15.55%
Total risk-based capital ratio 15.67% 16.72% 16.52% 16.32% 16.25%

 

 Simmons First National Corporation     SFNC  
 Consolidated Loans and Investments       
 For the Quarters Ended  Mar 31  Dec 31  Sep 30  Jun 30  Mar 31  
 (Unaudited)   2016    2015    2015    2015    2015   
($ in thousands)      
Legacy Loan Portfolio - End of Period (1)      
Consumer      
Credit cards$  167,803 $  177,288 $  171,701 $  174,074 $  171,413  
Other consumer   227,480    208,380    182,472    160,828    107,486  
Total consumer   395,283    385,668    354,173    334,902    278,899  
Real Estate      
Construction   300,042    279,740    253,761    199,707    178,929  
Single-family residential   746,754    696,180    623,089    662,954    507,351  
Other commercial   1,327,372    1,229,072    1,037,559    878,109    716,021  
Total real estate   2,374,168    2,204,992    1,914,409    1,740,770    1,402,301  
Commercial      
Commercial   551,695    500,116    394,422    388,869    324,815  
Agricultural   143,033    148,563    170,257    141,502    105,228  
Total commercial   694,728    648,679    564,679    530,371    430,043  
Other   8,512    7,115    6,017    5,186    4,137  
Total Loans$  3,472,691 $  3,246,454 $  2,839,278 $  2,611,229 $  2,115,380  
       
 (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$  223,484 $  237,139 $  285,071 $  361,744 $  390,625  
Mortgage-backed securities   23,734    24,774    25,913    27,146    28,535  
State and political subdivisions   424,586    440,676    464,245    471,631    482,316  
Other securities   2,698    2,784    1,065    1,075    947  
Total held-to-maturity   674,502    705,373    776,294    861,596    902,423  
Available-for-Sale       
U.S. Treasury$  4,302 $  3,994 $  4,008 $  4,005 $  4,008  
U.S. Government agencies   78,308    120,237    153,576    236,003    346,315  
Mortgage-backed securities   722,982    647,425    502,344    464,857    312,011  
State and political subdivisions   11,260    9,874    10,976    10,971    13,452  
FHLB stock   7,838    7,823    14,275    13,619    15,256  
Other securities   32,983    32,054    18,168    18,246    16,341  
Total available-for-sale   857,673    821,407    703,347    747,701    707,383  
Total investment securities$  1,532,175 $  1,526,780 $  1,479,641 $  1,609,297 $  1,609,806  
Fair value - HTM investment securities$  686,835 $  713,371 $  785,030 $  863,349 $  913,037  
       
Investment Securities - QTD Average      
Taxable securities$  1,067,302 $  1,043,268 $  1,088,597 $  1,163,708 $  893,946  
Tax exempt securities   439,370    463,631    478,436    492,118    391,561  
Total investment securities - QTD average$  1,506,672 $  1,506,899 $  1,567,033 $  1,655,826 $  1,285,507  

 

 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)   2016    2015    2015    2015    2015   
 ($ in thousands)       
LOANS       
Legacy loans$  3,472,691 $  3,246,454 $  2,839,278 $  2,611,229 $  2,115,380  
Allowance for loan losses (legacy loans)   (32,681)   (31,351)   (30,380)   (30,567)   (29,183) 
Legacy loans (net of allowance)   3,440,010    3,215,103    2,808,898    2,580,662    2,086,197  
Loans acquired, not covered by FDIC loss share   1,503,482    1,729,557    2,085,211    2,171,388    2,491,316  
Credit discount   (45,158)   (55,702)   (70,441)   (63,082)   (72,876) 
Allowance for loan losses (loans acquired, not covered)   (954)   (954)   (954)   -     -   
Loans acquired, not covered (net of discount and allowance)   1,457,370    1,672,901    2,013,816    2,108,306    2,418,440  
Loans acquired, covered by FDIC loss share   -     -     -     114,296    126,629  
Credit discount   -     -     -     (20,221)   (23,207) 
Allowance for loan losses (acquired covered loans)   -     -     -     (954)   (954) 
Loans acquired, covered (net of discount and allowance)   -     -     -     93,121    102,468  
Net loans$  4,897,380 $  4,888,004 $  4,822,714 $  4,782,089 $  4,607,105  
       
Loan Coverage Ratios       
Allowance for loan losses to legacy loans 0.94% 0.97% 1.07% 1.17% 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) 3.07% 3.28% 3.42% 3.69% 3.71% 
       
Total allowance and credit coverage (non-GAAP) 1.58% 1.77% 2.07% 2.34% 2.67% 

 

 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)   2016    2015    2015    2015    2015   
($ in thousands)      
Allowance for Loan Losses (Legacy Loans)      
Balance, beginning of quarter$  31,351 $  30,380 $  30,567 $  29,183 $  29,028  
Loans charged off      
Credit cards   859    757    763    802    785  
Other consumer   393    489    597    366    220  
Real estate   229    845    109    333    293  
Commercial   476    654    516    -     245  
Total loans charged off   1,957    2,745    1,985    1,501    1,543  
       
Recoveries of loans previously charged off      
Credit cards   242    223    213    241    213  
Other consumer   103    140    78    187    133  
Real estate   112    120    25    46    12  
Commercial   7    3    -     9    169  
Total recoveries   464    486    316    483    527  
Net loans charged off   1,493    2,259    1,669    1,018    1,016  
Provision for loan losses   2,823    3,230    1,482    2,402    1,171  
Balance, end of quarter$  32,681 $  31,351 $  30,380 $  30,567 $  29,183  
       
Non-performing assets (1) (2)      
Non-performing loans      
Nonaccrual loans   34,244    17,714    15,305    15,565    14,511  
Loans past due 90 days or more   881    1,191    1,506    1,375    498  
Total non-performing loans   35,125    18,905    16,811    16,940    15,009  
Other non-performing assets      
Foreclosed assets held for sale, not covered   41,126    44,820    48,073    42,666    50,723  
Other non-performing assets   256    211    172    242    215  
Total other non-performing assets   41,382    45,031    48,245    42,908    50,938  
Total non-performing assets$  76,507 $  63,936 $  65,056 $  59,848 $  65,947  
Performing TDRs (troubled debt restructurings)$  10,759 $  3,031 $  1,955 $  1,959 $  2,227  
       
Ratios (1) (2)      
Allowance for loan losses to total loans 0.94% 0.97% 1.07% 1.17% 1.38% 
Allowance for loan losses to non-performing loans 93% 166% 181% 180% 194% 
Non-performing loans to total loans 1.01% 0.58% 0.59% 0.65% 0.71% 
Non-performing assets (including performing TDRs)      
to total assets 1.16% 0.89% 0.89% 0.81% 0.87% 
Non-performing assets to total assets 1.02% 0.85% 0.86% 0.79% 0.84% 
Annualized net charge offs to total loans 0.18% 0.31% 0.24% 0.17% 0.20% 
Annualized net credit card charge offs to      
total credit card loans 1.46% 1.22% 1.26% 1.31% 1.32% 
Annualized net charge offs to total loans      
(excluding credit cards) 0.11% 0.25% 0.17% 0.08% 0.09% 
       
 (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  Mar 31  Dec 31  Sep 30  Jun 30  Mar 31 
 (Unaudited)   2016   2015   2015   2015   2015 
      
ASSETS     
      
Earning Assets     
Interest bearing balances due from banks 0.35% 0.36% 0.23% 0.30% 0.23%
Investment securities 2.82% 2.77% 2.65% 2.50% 2.44%
Mortgage loans held for sale 4.20% 4.42% 4.38% 3.99% 4.10%
Assets held in trading accounts 0.46% 0.39% 0.25% 0.24% 0.18%
Loans, including acquired loans 5.49% 5.75% 6.27% 6.03% 6.11%
Total interest earning assets 4.74% 4.86% 5.20% 4.82% 4.68%
      
LIABILITIES     
      
Interest bearing liabilities     
Interest bearing transaction and     
savings accounts 0.23% 0.24% 0.24% 0.24% 0.21%
Time deposits 0.50% 0.55% 0.55% 0.56% 0.56%
Total interest bearing deposits 0.31% 0.33% 0.33% 0.33% 0.32%
Federal funds purchased and securities     
sold under agreement to repurchase 0.23% 0.22% 0.20% 0.20% 0.21%
Other borrowings 2.47% 2.57% 3.63% 2.58% 2.32%
Subordinated debentures 3.63% 3.09% 3.19% 3.56% 2.66%
Total interest bearing liabilities 0.42% 0.43% 0.48% 0.44% 0.42%
      
NET INTEREST MARGIN/SPREAD     
      
Net interest spread 4.32% 4.43% 4.72% 4.38% 4.26%
Net interest margin - quarter-to-date 4.41% 4.53% 4.82% 4.47% 4.34%
Net interest margin - year-to-date 4.41% 4.55% 4.58% 4.42% 4.34%

 

 Simmons First National Corporation     SFNC 
 Consolidated - Selected Financial Data      
 For the Quarters Ended  Mar 31  Dec 31  Sep 30  Jun 30  Mar 31 
 (Unaudited)   2016    2015    2015    2015    2015  
($ in thousands, except share data)     
QUARTER-TO-DATE     
Financial Highlights - Core (non-GAAP)     
Core earnings (excludes nonrecurring items) (1)$  23,185 $  25,913 $  25,565 $  22,444 $  15,700 
Diluted core earnings per share (1)   0.76    0.86    0.85    0.75    0.70 
Core net interest margin (FTE) (2) 3.92% 3.87% 3.93% 3.87% 3.55%
Core efficiency ratio (1) 58.73% 59.26% 57.40% 58.36% 62.13%
Core return on average assets (1) 1.24% 1.36% 1.33% 1.17% 1.10%
Core return on average common equity (1) 8.75% 9.96% 10.01% 8.67% 9.47%
Core return on tangible common equity (1) 14.13% 15.89% 15.99% 13.80% 14.16%
Financial Highlights - GAAP     
Net Income$  23,481 $  23,782 $  21,598 $  20,018 $  8,709 
Diluted earnings per share   0.77    0.78    0.72    0.67    0.39 
Return on average assets 1.26% 1.25% 1.13% 1.04% 0.61%
Return on average common equity 8.87% 9.15% 8.46% 7.73% 5.25%
Return on tangible common equity 14.30% 14.62% 13.58% 12.36% 8.07%
Net interest margin (FTE) 4.41% 4.53% 4.82% 4.47% 4.34%
FTE adjustment   2,084    2,185    2,172    2,303    1,857 
Amortization of intangibles   1,455    1,337    1,265    1,388    899 
Amortization of intangibles, net of taxes   884    813    769    844    546 
Average earning assets   6,597,389    6,652,486    6,660,434    6,774,693    5,121,838 
Average interest bearing liabilities   5,145,845    5,118,526    5,367,852    5,467,587    4,096,745 
Average diluted shares outstanding   30,481,604    30,301,190    30,046,062    29,987,471    22,350,272 
Cash dividends declared per common share   0.24    0.23    0.23    0.23    0.23 
YEAR-TO-DATE     
Financial Highlights - Core (non-GAAP)     
Core earnings (excludes nonrecurring items) (1)$  23,185 $  89,622 $  63,709 $  38,144 $  15,700 
Diluted core earnings per share (1)   0.76    3.18    2.32    1.46    0.70 
Core net interest margin (FTE) (2) 3.92% 3.82% 3.82% 3.74% 3.55%
Core efficiency ratio (1) 58.73% 59.01% 58.91% 59.94% 62.13%
Core return on average assets (1) 1.24% 1.25% 1.21% 1.14% 1.10%
Core return on average common equity (1) 8.75% 9.55% 9.39% 8.99% 9.47%
Core return on tangible common equity (1) 14.13% 15.05% 14.73% 13.96% 14.16%
Financial Highlights - GAAP     
Net Income$  23,481 $  74,107 $  50,325 $  28,727 $  8,709 
Diluted earnings per share   0.77    2.63    1.83    1.10    0.39 
Return on average assets 1.26% 1.03% 0.96% 0.86% 0.61%
Return on average common equity 8.87% 7.90% 7.41% 6.77% 5.25%
Return on tangible common equity 14.30% 12.53% 11.73% 10.63% 8.07%
Net interest margin (FTE) 4.41% 4.55% 4.58% 4.42% 4.34%
FTE adjustment   2,084    8,517    6,332    4,160    1,857 
Amortization of intangibles   1,455    4,889    3,552    2,287    899 
Amortization of intangibles, net of taxes   884    2,972    2,159    1,390    546 
Average earning assets   6,597,389    6,305,966    6,170,521    5,948,265    5,121,838 
Average interest bearing liabilities   5,145,845    5,000,858    4,977,397    4,782,167    4,096,745 
Average diluted shares outstanding   30,481,604    28,209,661    27,497,813    26,203,942    22,350,272 
Cash dividends declared per common share   0.24    0.92    0.69    0.46    0.23 
END OF PERIOD     
Book value per share$  35.35 $  34.55 $  33.89 $  33.26 $  32.93 
Tangible book value per share   22.84    21.97    21.89    21.19    20.79 
Shares outstanding   30,324,499    30,278,432    29,939,698    29,894,903    29,850,034 
Full-time equivalent employees   1,931    1,946    1,967    2,043    2,076 
Total number of ATM's   185    182    183    186    179 
Total number of financial centers   149    149    149    152    164 
      
(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  Mar 31  Dec 31  Sep 30  Jun 30  Mar 31  
 (Unaudited)   2016    2015    2015    2015    2015   
($ in thousands, except per share data)      
QUARTER-TO-DATE      
Net Income$  23,481 $  23,782 $  21,598 $  20,018 $  8,709  
Nonrecurring items      
Accelerated vesting on retirement agreements   -     2,209    -     -     -   
Gain on sale of banking operations   -     -     (2,110)   -     -   
Gain from early retirement of trust preferred securities   (594)   -     -     -     -   
Loss on FDIC loss-share termination   -     -     7,476    -     -   
Merger-related costs   93    1,237    857    1,247    10,419  
Branch right-sizing   14    60    304    2,745    35  
Tax effect (1)   191    (1,375)   (2,560)   (1,566)   (3,463) 
Net nonrecurring items   (296)   2,131    3,967    2,426    6,991  
Core earnings (non-GAAP)$  23,185 $  25,913 $  25,565 $  22,444 $  15,700  
       
Diluted earnings per share$  0.77 $  0.78 $  0.72 $  0.67 $  0.39  
Nonrecurring items      
Accelerated vesting on retirement agreements   -     0.08    -     -     -   
Gain on sale of banking operations   -     -     (0.07)   -     -   
Gain from early retirement of trust preferred securities   (0.02)   -     -     -     -   
Loss on FDIC loss-share termination   -     -     0.25    -     -   
Merger-related costs   -     0.05    0.03    0.04    0.47  
Branch right-sizing   -     -     0.01    0.09    -   
Tax effect (1)   0.01    (0.05)   (0.09)   (0.05)   (0.16) 
Net nonrecurring items   (0.01)   0.08    0.13    0.08    0.31  
Core earnings (non-GAAP)$  0.76 $  0.86 $  0.85 $  0.75 $  0.70  
       
YEAR-TO-DATE      
Net Income$  23,481 $  74,107 $  50,325 $  28,727 $  8,709  
Nonrecurring items      
Accelerated vesting on retirement agreements   -     2,209    -     -     -   
Gain on sale of banking operations   -     (2,110)   (2,110)   -     -   
Gain from early retirement of trust preferred securities   (594)   -     -     -     -   
Loss on FDIC loss-share termination   -     7,476    7,476    -     -   
Merger-related costs   93    13,760    12,523    11,666    10,419  
Branch right-sizing   14    3,144    3,084    2,780    35  
Tax effect (1)   191    (8,964)   (7,589)   (5,029)   (3,463) 
Net nonrecurring items   (296)   15,515    13,384    9,417    6,991  
Core earnings (non-GAAP)$  23,185 $  89,622 $  63,709 $  38,144 $  15,700  
       
Diluted earnings per share$  0.77 $  2.63 $  1.83 $  1.10 $  0.39  
Nonrecurring items      
Accelerated vesting on retirement agreements   -     0.08    -     -     -   
Gain on sale of banking operations   -     (0.07)   (0.07)   -     -   
Gain from early retirement of trust preferred securities   (0.02)   -     -     -     -   
Loss on FDIC loss-share termination   -     0.27    0.27    -     -   
Merger-related costs   -     0.49    0.46    0.45    0.47  
Branch right-sizing   -     0.11    0.11    0.11    -   
Tax effect (1)   0.01    (0.33)   (0.28)   (0.20)   (0.16) 
Net nonrecurring items   (0.01)   0.55    0.49    0.36    0.31  
Core earnings (non-GAAP)$  0.76 $  3.18 $  2.32 $  1.46 $  0.70  
       
(1) Effective tax rate of 39.225%, adjusted for non-deductible merger-related costs.     


FOR MORE INFORMATION CONTACT:
J. BURTON HICKS
SVP and Investor Relations Officer
Simmons First National Corporation
(870) 541-1000