PINE BLUFF, Ark., July 20, 2016 (GLOBE NEWSWIRE) -- Simmons First National Corporation (NASDAQ:SFNC) today announced net income available to common shareholders of $22.9 million for the second quarter of 2016, an increase of $2.9 million, or 14.4 percent, compared with the same quarter last year. Diluted earnings per share were $0.75, an increase of $0.08, or 11.9 percent.

Included in second quarter 2016 results were $2.2 million of after-tax expenses related to noncore items. Excluding the impact of these items, core earnings were $25.1 million for the second quarter of 2016, an increase of $2.6 million, or 11.8 percent, compared with the same quarter last year. Diluted core earnings per share were $0.82, an increase of $0.07, or 9.3 percent.

Year-to-date net income was $46.4 million, an increase of $17.7 million, or 61.5 percent, compared with the same period of 2015. Year-to-date diluted earnings per share was $1.52, an increase of $0.42, or 38.2 percent. Year-to-date core earnings were $48.3 million, or $1.59 diluted core earnings per share.

“We are pleased with the results from the second quarter as we continue to absorb the acquisitions from the previous two years.  Competitive pressures and artificially low interest rates continue to put pressure on our net interest income but we have done a good job of diversifying our revenue through other lines of business such as our trust operations, mortgage lending, credit card services, and other wealth management offerings.  We will continue to focus on improving our efficiency throughout the remainder of the year,” said George A. Makris, Jr., chairman and CEO. “We also look forward to the completion of the merger with Citizens Bank in Athens, Tenn. later this year and the opportunity to welcome them to the Simmons family.”

Loans

Total loans, including those acquired, were $5.0 billion at June 30, 2016, an increase of $201 million, or 4.2 percent, compared with the same period in 2015. Legacy loans (all loans excluding acquired loans) grew $1.1 billion, or 42.7 percent. On a linked quarter basis, total loan growth was $83.8 million.

Deposits

At June 30, 2016, total deposits were $6.0 billion, a decrease of $142 million, or 2.3 percent, compared with the same period in 2015. Total non-time deposits were $4.8 billion, an increase of $100 million, or 2.1 percent, and comprised 80% of total deposits.

Net Interest Income

The company’s net interest income for the second quarter of 2016 was $66.6 million, a decrease of $6.6 million, or 9.0 percent, from the same period of 2015. This decrease was primarily driven by a $5.4 million decline in yield accretion on acquired loans. Included in interest income was the yield accretion recognized on acquired loans of $4.7 million and $10.1 million for the second quarter of 2016 and 2015, respectively. Net interest margin was 4.17 percent for the quarter ended June 30, 2016, a 30 basis-point decline from the same quarter of 2015. The company’s core net interest margin, excluding the accretion, was 3.88 percent for the second quarter of 2016, a 1 basis-point increase from the same quarter of 2015.

Non-Interest Income

Non-interest income for the second quarter was $36.9 million, an increase of $11.9 million compared with the second quarter of 2015. The increase in non-interest income was primarily due to gains recorded on the sale of securities that totaled $3.4 million as part of the bond portfolio rebalancing strategy.

The elimination of indemnification asset amortization due to the company’s 2015 termination of loss-sharing agreements with the FDIC resulted in a decrease of $3.1 million in losses on FDIC-covered assets in the second quarter compared with the same period in 2015. The remaining increase in non-interest income was due to additional mortgage lending, trust income and investment banking revenue.  

Non-Interest Expense

Non-interest expense for the second quarter of 2016 was $64.1 million, a decrease of $667,000 compared with the second quarter of 2015. Included in the quarter were $372,000 of merger-related expenses and $3.2 million of branch right-sizing expenses related to the closure of ten underperforming branches during the second quarter of 2016.

Salaries and benefits decreased by $2.0 million to $33.1 million in the current quarter of 2016, compared with $35.1 million in the same quarter of 2015. This decrease of 5.7% is a result of the company’s ongoing efficiency initiatives around expense control. This decrease was partially offset by an increase of $836,000 in furniture and equipment expense primarily related to maintenance contracts and equipment rent.

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 June 30, 2016, the allowance for loan losses for legacy loans was $33.5 million. The company's allowance for loan losses on legacy loans at June 30, 2016 was 0.90 percent of total loans and 77 percent of non-performing loans. In the legacy portfolio, non-performing loans as a percent of total loans were 1.17 percent.

The allowance for loan losses for acquired loans was $1.0 million and the acquired loan discount credit mark was $38.3 million. The allowances for loan losses and credit marks provide a total of $72.8 million of coverage, which equates to a total coverage ratio of 1.4 percent of gross loans. The ratio of credit mark and related allowance to acquired loans was 3.0 percent.

The 2016 year-to-date net charge-off ratio, excluding credit cards, was 24 basis points, and the year-to-date credit card charge-off ratio was 1.25 percent.

Capital

At June 30, 2016, common stockholders' equity was $1.1 billion, book value per share was $35.86 and tangible book value per share was $23.43. The company's ratio of stockholders' equity to total assets was 14.48 percent and its ratio of tangible common equity to tangible assets was 10.0 percent.

Simmons First National Corporation

Simmons First National Corporation is a financial holding company headquartered in Pine Bluff, Arkansas, with total assets of $7.5 billion. The company conducts financial operations in Arkansas, Kansas, Missouri and Tennessee. The company’s wholly owned subsidiary, Simmons Bank, offers comprehensive financial solutions delivered with client-centric approach. The company's common stock trades on the NASDAQ Global Select Market under the symbol "SFNC".

Conference Call

Management will conduct a conference call to review this information beginning at 3 p.m. CDT on Thursday, July 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 42603491. 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. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

Forward-Looking Statements

Statements in this news release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any forward-looking statement speaks only as of the date of this news release, and we undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors, including, but not limited to, economic conditions, credit quality, interest rates, loan demand and changes in the assumptions used in making the forward-looking statements, could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect Simmons First National 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  Jun 30  Mar 31  Dec 31  Sep 30  Jun 30 
 (Unaudited)   2016    2016    2015    2015    2015  
($ in thousands)     
 ASSETS      
Cash and non-interest bearing balances due from banks$  96,037 $  118,468 $  97,656 $  106,678 $  69,770 
Interest bearing balances due from banks   151,570    100,593    154,606    284,645    173,130 
Federal funds sold   3,000    4,000    -     9,675    49,570 
Cash and cash equivalents   250,607    223,061    252,262    400,998    292,470 
Interest bearing balances due from banks - time   9,781    11,188    14,107    16,504    24,189 
Investment securities - held-to-maturity   632,154    674,502    705,373    776,294    861,596 
Investment securities - available-for-sale   821,372    857,673    821,407    703,347    747,701 
Mortgage loans held for sale   30,529    24,563    30,265    15,556    48,094 
Assets held in trading accounts   7,321    7,074    4,422    6,292    6,481 
Loans:               
Legacy loans 3,725,422  3,472,691  3,246,454  2,839,278  2,611,229 
Allowance for loan losses (33,523) (32,681) (31,351) (30,380) (30,567)
Loans acquired, not covered by FDIC loss share               
(net of discount and allowance) 1,288,435  1,457,370  1,672,901  2,013,816  2,108,306 
Loans acquired, covered by FDIC loss share               
(net of discount and allowance) -  -  -  -  93,121 
Net loans 4,980,334  4,897,380  4,888,004  4,822,714  4,782,089 
FDIC indemnification asset -  -  -  -  13,020 
Premises and equipment 183,362  192,327  193,618  190,182  191,335 
Premises held for sale 6,167  2,364  923  923  6,587 
Foreclosed assets not covered by FDIC loss share 30,529  41,126  44,820  48,073  42,666 
Foreclosed assets covered by FDIC loss share -  -  -  -  12,833 
Interest receivable 24,150  23,545  25,793  26,873  24,129 
Bank owned life insurance 130,943  130,092  131,536  118,922  118,073 
Goodwill 327,686  327,686  327,686  314,344  314,344 
Other intangible assets 50,329  51,783  53,237  44,904  46,605 
Other assets   48,955    72,589    66,205    73,768    82,146 
Total assets$  7,534,219 $  7,536,953 $  7,559,658 $  7,559,694 $  7,614,358 
      
 LIABILITIES AND STOCKHOLDERS' EQUITY      
Deposits:     
Non-interest bearing transaction accounts$  1,283,426 $  1,274,816 $  1,280,234 $  1,212,724 $  1,141,285 
Interest bearing transaction accounts and savings deposits   3,538,808    3,524,808    3,485,845    3,521,840    3,581,049 
Time deposits less than $100,000   643,081    674,915    694,262    673,651    719,606 
Time deposits greater than $100,000   562,888    605,236    625,755    681,585    728,082 
Total deposits   6,028,203    6,079,775    6,086,096    6,089,800    6,170,022 
Federal funds purchased and securities sold     
under agreements to repurchase   103,038    97,429    99,398    110,437    111,792 
Other borrowings   191,827    176,829    162,289    173,426    171,321 
Subordinated debentures   60,184    60,077    60,570    61,906    61,794 
Accrued interest and other liabilities   60,256    50,859    74,450    78,684    74,324 
Total liabilities   6,443,508    6,464,969    6,482,803    6,514,253    6,589,253 
      
Stockholders' equity:     
Preferred stock -  -  30,852  30,852  30,852 
Common stock 304  303  303  299  299 
Surplus 668,306  665,850  662,378  642,400  640,895 
Undivided profits 417,863  402,265  385,987  369,172  354,459 
Accumulated other comprehensive income (loss):     
Unrealized appreciation (depreciation) on AFS securities 4,238  3,566  (2,665) 2,718  (1,400)
Total stockholders' equity 1,090,711  1,071,984  1,076,855  1,045,441  1,025,105 
Total liabilities and stockholders' equity$7,534,219 $7,536,953 $7,559,658 $7,559,694 $7,614,358 

 

 Simmons First National Corporation      SFNC  
 Consolidated Statements of Income - Quarter-to-Date       
 For the Quarters Ended Jun 30Mar 31Dec 31Sep 30Jun 30 
 (Unaudited)   2016    2016    2015    2015    2015   
($ in thousands, except per share data)      
INTEREST INCOME       
Loans$  63,009 $  66,678 $  70,511 $  76,432 $  70,438  
Federal funds sold   17    10    10    15    73  
Investment securities   8,499    8,506    8,350    8,335    8,050  
Mortgage loans held for sale   295    278    237    291    375  
Assets held in trading accounts   3    6    6    4    4  
Interest bearing balances due from banks   77    144    225    122    229  
TOTAL INTEREST INCOME   71,900    75,622    79,339    85,199    79,169  
INTEREST EXPENSE       
Time deposits   1,741    1,636    1,858    1,936    2,064  
Other deposits   2,035    2,018    2,105    2,222    2,131  
Federal funds purchased and securities      
sold under agreements to repurchase   59    65    60    55    57  
Other borrowings   938    1,128    1,084    1,812    1,151  
Subordinated debentures   544    543    481    498    559  
TOTAL INTEREST EXPENSE   5,317    5,390    5,588    6,523    5,962  
NET INTEREST INCOME    66,583    70,232    73,751    78,676    73,207  
Provision for loan losses   4,616    2,823    3,230    1,615    3,006  
NET INTEREST INCOME AFTER PROVISION       
FOR LOAN LOSSES    61,967    67,409    70,521    77,061    70,201  
NON-INTEREST INCOME       
Trust income   3,656    3,631    2,725    2,215    2,070  
Service charges on deposit accounts   7,661    7,316    8,104    8,488    8,031  
Other service charges and fees   1,571    1,909    1,654    2,672    2,766  
Mortgage lending income   5,877    3,792    2,298    3,446    3,449  
Investment banking income   1,181    687    784    663    593  
Debit and credit card fees   7,688    7,200    7,647    6,879    6,486  
Bank owned life insurance income   826    997    614    748    746  
Gain on sale of securities, net   3,759    329    305    40    -   
Net (loss) gain on assets covered by FDIC loss-share agreements   -     -     -     (9,085)   (3,056) 
Other income   4,669    3,642    4,518    7,006    3,863  
TOTAL NON-INTEREST INCOME   36,888    29,503    28,649    23,072    24,948  
NON-INTEREST EXPENSE       
Salaries and employee benefits   33,103    34,773    39,523    37,000    35,111  
Occupancy expense, net   4,990    4,471    3,418    4,812    5,051  
Furniture and equipment expense   4,077    3,947    3,731    4,202    3,241  
Other real estate and foreclosure expense   967    966    1,167    2,297    1,017  
Deposit insurance   1,096    1,148    1,222    1,013    1,096  
Merger-related costs   372    93    1,237    857    1,247  
Other operating expenses   19,532    16,391    17,508    17,314    18,041  
TOTAL NON-INTEREST EXPENSE   64,137    61,789    67,806    67,495    64,804  
NET INCOME BEFORE INCOME TAXES    34,718    35,123    31,364    32,638    30,345  
Provision for income taxes   11,809    11,618    7,505    10,963    10,250  
NET INCOME    22,909    23,505    23,859    21,675    20,095  
Preferred stock dividends   -     24    77    77    77  
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $  22,909 $  23,481 $  23,782 $  21,598 $  20,018  
BASIC EARNINGS PER SHARE $  0.75 $  0.77 $  0.79 $  0.72 $  0.67  
DILUTED EARNINGS PER SHARE $  0.75 $  0.77 $  0.78 $  0.72 $  0.67  

 

 Simmons First National Corporation      SFNC 
 Consolidated Core Earnings - Quarter-to-Date (non-GAAP) (1)     
 For the Quarters Ended Jun 30Mar 31Dec 31Sep 30Jun 30
 (Unaudited)   2016    2016    2015    2015    2015  
($ in thousands, except per share data)     
INTEREST INCOME      
Loans$  63,009 $  66,678 $  70,511 $  76,432 $  70,438 
Federal funds sold   17    10    10    15    73 
Investment securities   8,499    8,506    8,350    8,335    8,050 
Mortgage loans held for sale   295    278    237    291    375 
Assets held in trading accounts   3    6    6    4    4 
Interest bearing balances due from banks   77    144    225    122    229 
TOTAL INTEREST INCOME   71,900    75,622    79,339    85,199    79,169 
INTEREST EXPENSE      
Time deposits   1,741    1,636    1,858    1,936    2,064 
Other deposits   2,035    2,018    2,105    2,222    2,131 
Federal funds purchased and securities     
sold under agreements to repurchase   59    65    60    55    57 
Other borrowings   938    1,128    1,084    1,812    1,151 
Subordinated debentures   544    543    481    498    559 
TOTAL INTEREST EXPENSE   5,317    5,390    5,588    6,523    5,962 
NET INTEREST INCOME    66,583    70,232    73,751    78,676    73,207 
Provision for loan losses   4,616    2,823    3,230    1,615    3,006 
NET INTEREST INCOME AFTER PROVISION      
FOR LOAN LOSSES    61,967    67,409    70,521    77,061    70,201 
NON-INTEREST INCOME      
Trust income   3,656    3,631    2,725    2,215    2,070 
Service charges on deposit accounts   7,661    7,316    8,104    8,488    8,031 
Other service charges and fees   1,571    1,909    1,654    2,672    2,766 
Mortgage lending income   5,877    3,792    2,298    3,446    3,449 
Investment banking income   1,181    687    784    663    593 
Debit and credit card fees   7,688    7,200    7,647    6,879    6,486 
Bank owned life insurance income   826    997    614    748    746 
Gain on sale of securities, net   3,759    329    305    40    -  
Net (loss) gain on assets covered by FDIC loss-share agreements   -     -     -     (1,609)   (3,056)
Other income   4,669    3,048    4,518    4,737    4,396 
TOTAL NON-INTEREST INCOME   36,888    28,909    28,649    28,279    25,481 
NON-INTEREST EXPENSE      
Salaries and employee benefits   33,103    34,773    37,314    36,919    34,960 
Occupancy expense, net   4,945    4,461    3,358    4,680    5,013 
Furniture and equipment expense   4,077    3,947    3,731    4,172    3,209 
Other real estate and foreclosure expense   967    966    1,167    2,297    1,017 
Deposit insurance   1,096    1,148    1,222    1,013    1,096 
Other operating expenses   16,358    16,387    17,508    17,094    16,050 
TOTAL NON-INTEREST EXPENSE   60,546    61,682    64,300    66,175    61,345 
CORE EARNINGS BEFORE INCOME TAXES (non-GAAP) (1)    38,309    34,636    34,870    39,165    34,337 
Provision for income taxes   13,218    11,427    8,880    13,523    11,816 
CORE EARNINGS (non-GAAP) (1)    25,091    23,209    25,990    25,642    22,521 
Preferred stock dividends   -     24    77    77    77 
CORE EARNINGS AVAILABLE TO COMMON S/H (non-GAAP) (1) $  25,091 $  23,185 $  25,913 $  25,565 $  22,444 
BASIC CORE EARNINGS PER SHARE (non-GAAP) (1) $  0.83 $  0.76 $  0.86 $  0.85 $  0.75 
DILUTED CORE EARNINGS PER SHARE (non-GAAP) (1) $  0.82 $  0.76 $  0.86 $  0.85 $  0.75 
      
(1) Calculations of core earnings and core earnings per share and the reconciliations to GAAP are included in the schedules accompanying this release.
  
      

 

 Simmons First National Corporation     SFNC 
 Consolidated Risk-Based Capital      
 For the Quarters Ended  Jun 30  Mar 31  Dec 31  Sep 30  Jun 30 
 (Unaudited)   2016    2016    2015    2015    2015  
($ in thousands)     
Tier 1 capital     
Stockholders' equity$1,090,711 $1,071,984 $1,076,855 $1,045,441 $1,025,105 
Trust preferred securities, net allowable 60,184  60,077  60,570  61,906  61,794 
Disallowed intangible assets, net of deferred tax (334,395) (335,166) (331,931) (314,735) (342,590)
Unrealized loss (gain) on AFS securities (4,238) (3,566) 2,665  (2,718) 1,400 
Other -  -  -  -  (10,297)
Total Tier 1 capital 812,262  793,329  808,159  789,894  735,412 
      
Tier 2 capital     
Qualifying unrealized gain on AFS equity securities -  -  -  -  - 
Qualifying allowance for loan losses and     
reserve for unfunded commitments 37,240  36,398  35,068  34,097  34,284 
Total Tier 2 capital 37,240  36,398  35,068  34,097  34,284 
Total risk-based capital$849,502 $829,727 $843,227 $823,991 $769,696 
      
Common equity     
Tier 1 capital$812,262 $793,329 $808,159 $789,894 $735,412 
Less: Non-cumulative preferred stock -  -  (30,852) (30,852) (30,852)
Less: Trust preferred securities (60,184) (60,077) (60,570) (61,906) (61,794)
Total common equity$752,078 $733,252 $716,737 $697,136 $642,766 
      
Risk weighted assets$5,343,355 $5,293,395 $5,044,453 $4,986,641 $4,714,852 
      
Adjusted average assets for leverage ratio$7,185,633 $7,167,839 $7,218,559 $7,293,113 $7,350,900 
      
Ratios at end of quarter     
Equity to assets 14.48% 14.22% 14.24% 13.83% 13.46%
Tangible common equity to tangible assets (1) 9.96% 9.68% 9.26% 9.10% 8.73%
Common equity Tier 1 ratio (CET1) 14.08% 13.85% 14.21% 13.98% 13.63%
Tier 1 leverage ratio 11.30% 11.07% 11.20% 10.83% 10.00%
Tier 1 risk-based capital ratio 15.20% 14.99% 16.02% 15.84% 15.60%
Total risk-based capital ratio 15.90% 15.67% 16.72% 16.52% 16.32%
      
(1) Calculations of tangible common equity to tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release.
      

 

 Simmons First National Corporation     SFNC  
 Consolidated Loans and Investments       
 For the Quarters Ended  Jun 30  Mar 31  Dec 31  Sep 30  Jun 30  
 (Unaudited)   2016    2016    2015    2015    2015   
($ in thousands)      
Legacy Loan Portfolio - End of Period (1)      
Consumer      
Credit cards$171,468 $167,803 $177,288 $171,701 $174,074  
Other consumer 248,018  227,480  208,380  182,472  160,828  
Total consumer 419,486  395,283  385,668  354,173  334,902  
Real Estate      
Construction 330,666  300,042  279,740  253,761  199,707  
Single-family residential 785,289  746,754  696,180  623,089  662,954  
Other commercial 1,414,663  1,327,372  1,229,072  1,037,559  878,109  
Total real estate 2,530,618  2,374,168  2,204,992  1,914,409  1,740,770  
Commercial      
Commercial 577,771  551,695  500,116  394,422  388,869  
Agricultural 187,047  143,033  148,563  170,257  141,502  
Total commercial 764,818  694,728  648,679  564,679  530,371  
Other 10,500  8,512  7,115  6,017  5,186  
Total Loans$3,725,422 $3,472,691 $3,246,454 $2,839,278 $2,611,229  
       
 (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$  199,505 $  223,484 $  237,139 $  285,071 $  361,744  
Mortgage-backed securities   22,612    23,734    24,774    25,913    27,146  
State and political subdivisions   407,273    424,586    440,676    464,245    471,631  
Other securities   2,764    2,698    2,784    1,065    1,075  
Total held-to-maturity   632,154    674,502    705,373    776,294    861,596  
 Available-for-Sale       
U.S. Treasury$  4,305 $  4,302 $  3,994 $  4,008 $  4,005  
U.S. Government agencies   58,113    78,308    120,237    153,576    236,003  
Mortgage-backed securities   652,425    722,982    647,425    502,344    464,857  
State and political subdivisions   64,836    11,260    9,874    10,976    10,971  
FHLB stock   8,781    7,838    7,823    14,275    13,619  
Other securities   32,912    32,983    32,054    18,168    18,246  
Total available-for-sale   821,372    857,673    821,407    703,347    747,701  
Total investment securities$  1,453,526 $  1,532,175 $  1,526,780 $  1,479,641 $  1,609,297  
Fair value - HTM investment securities$  647,293 $  686,835 $  713,371 $  785,030 $  863,349  
       
Investment Securities - QTD Average      
Taxable securities$  1,059,802 $  1,067,302 $  1,043,268 $  1,088,597 $  1,163,708  
Tax exempt securities   443,492    439,370    463,631    478,436    492,118  
Total investment securities - QTD average$  1,503,294 $  1,506,672 $  1,506,899 $  1,567,033 $  1,655,826  

 

 Simmons First National Corporation      SFNC  
 Consolidated Loans and Credit Coverage       
 For the Quarters Ended  Jun 30  Mar 31  Dec 31  Sep 30  Jun 30  
 (Unaudited)   2016    2016    2015    2015    2015   
 ($ in thousands)       
 LOANS       
Legacy loans$3,725,422 $3,472,691 $3,246,454 $2,839,278 $2,611,229  
Allowance for loan losses (legacy loans)   (33,523)   (32,681)   (31,351)   (30,380)   (30,567) 
Legacy loans (net of allowance) 3,691,899  3,440,010  3,215,103  2,808,898  2,580,662  
Loans acquired, not covered by FDIC loss share 1,327,683  1,503,482  1,729,557  2,085,211  2,171,388  
Credit discount (38,294) (45,158) (55,702) (70,441) (63,082) 
Allowance for loan losses (loans acquired, not covered)   (954)   (954)   (954)   (954)   -   
Loans acquired, not covered (net of discount and allowance) 1,288,435  1,457,370  1,672,901  2,013,816  2,108,306  
Loans acquired, covered by FDIC loss share -  -  -  -  114,296  
Credit discount -  -  -  -  (20,221) 
Allowance for loan losses (acquired covered loans) -  -  -  -    (954) 
Loans acquired, covered (net of discount and allowance) -  -  -  -    93,121  
Net loans$  4,980,334 $  4,897,380 $  4,888,004 $  4,822,714 $  4,782,089  
       
Loan Coverage Ratios       
Allowance for loan losses to legacy loans 0.90% 0.94% 0.97% 1.07% 1.17% 
       
Discount for credit losses and allowance on loans acquired      
to total loans acquired plus discount for credit losses      
and allowance on loans acquired (non-GAAP) (1) 2.96% 3.07% 3.28% 3.42% 3.69% 
       
Total allowance and credit coverage (non-GAAP) (1) 1.44% 1.58% 1.77% 2.07% 2.34% 
(1) Calculations of the non-GAAP loan coverage ratios and the reconciliations to GAAP are included in the schedules accompanying this release. 
 

 

 Simmons First National Corporation     SFNC  
 Consolidated Allowance and Asset Quality       
 For the Quarters Ended  Jun 30  Mar 31  Dec 31  Sep 30  Jun 30  
 (Unaudited)   2016    2016    2015    2015    2015   
($ in thousands)      
Allowance for Loan Losses (Legacy Loans)      
Balance, beginning of quarter$  32,681 $  31,351 $  30,380 $  30,567 $  29,183  
Loans charged off      
Credit cards   702    859    757    763    802  
Other consumer   489    393    489    597    366  
Real estate   824    229    845    109    333  
Commercial   2,283    476    654    516    -   
Total loans charged off   4,298    1,957    2,745    1,985    1,501  
       
Recoveries of loans previously charged off      
Credit cards   253    242    223    213    241  
Other consumer   149    103    140    78    187  
Real estate   111    112    120    25    46  
Commercial   318    7    3    -     9  
Total recoveries   831    464    486    316    483  
Net loans charged off   3,467    1,493    2,259    1,669    1,018  
Provision for loan losses   4,309    2,823    3,230    1,482    2,402  
Balance, end of quarter$  33,523 $  32,681 $  31,351 $  30,380 $  30,567  
       
Non-performing assets (1) (2)      
Non-performing loans      
Nonaccrual loans   43,305    34,244    17,714    15,305    15,565  
Loans past due 90 days or more   227    881    1,191    1,506    1,375  
Total non-performing loans   43,532    35,125    18,905    16,811    16,940  
Other non-performing assets      
Foreclosed assets held for sale, not covered   30,529    41,126    44,820    48,073    42,666  
Other non-performing assets   519    256    211    172    242  
Total other non-performing assets   31,048    41,382    45,031    48,245    42,908  
Total non-performing assets$  74,580 $  76,507 $  63,936 $  65,056 $  59,848  
Performing TDRs (troubled debt restructurings)$  10,887 $  10,759 $  3,031 $  1,955 $  1,959  
       
Ratios (1) (2)      
Allowance for loan losses to total loans 0.90% 0.94% 0.97% 1.07% 1.17% 
Allowance for loan losses to non-performing loans 77% 93% 166% 181% 180% 
Non-performing loans to total loans 1.17% 1.01% 0.58% 0.59% 0.65% 
Non-performing assets (including performing TDRs)      
to total assets 1.13% 1.16% 0.89% 0.89% 0.81% 
Non-performing assets to total assets 0.99% 1.02% 0.85% 0.86% 0.79% 
Annualized net charge offs to total loans 0.39% 0.18% 0.31% 0.24% 0.17% 
Annualized net credit card charge offs to      
total credit card loans 1.07% 1.46% 1.22% 1.26% 1.31% 
Annualized net charge offs to total loans      
(excluding credit cards) 0.36% 0.11% 0.25% 0.17% 0.08% 
       
 (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 - Average Balance Sheet and Net Interest Income Analysis       
 For the Quarters Ended            
 (Unaudited)            
  Three Months Ended
Jun 2016 
  Three Months Ended
Mar 2016 
  Three Months Ended
Jun 2015 
 ($ in thousands) Average
Balance
Income/
Expense
Yield/
Rate
 Average
Balance
Income/
Expense
Yield/
Rate
 Average
Balance
Income/
Expense
Yield/
Rate
ASSETS           
Earning assets:           
Interest bearing balances due from banks$126,114 $77  0.25% $167,381 $144  0.35% $308,756 $229  0.30%
Federal funds sold 2,570  17  2.66%  1,839  10  2.19%  75,922  73  0.39%
Investment securities - taxable 1,087,179  5,273  1.95%  1,076,855  5,311  1.98%  1,295,466  4,479  1.39%
Investment securities - non-taxable (FTE) 416,115  5,300  5.12%  429,817  5,249  4.91%  360,360  5,849  6.51%
Mortgage loans held for sale 28,844  295  4.11%  26,616  278  4.20%  37,656  375  3.99%
Assets held in trading accounts 6,932  3  0.17%  5,196  6  0.46%  6,592  4  0.24%
Loans, including acquired loans   4,957,888    63,041  5.11%    4,889,685    66,708  5.49%    4,689,941    70,463  6.03%
Total interest earning assets (FTE) 6,625,642    74,006  4.49%  6,597,389    77,706  4.74%  6,774,693    81,472  4.82%
Non-earning assets   896,491           901,796           920,999       
Total assets$  7,522,133        $  7,499,185        $  7,695,692       
                              
LIABILITIES AND STOCKHOLDERS' EQUITY          
Interest bearing liabilities:           
Interest bearing transaction and           
savings accounts$3,526,278 $2,035  0.23% $3,484,571 $2,018  0.23% $3,621,060 $2,131  0.24%
Time deposits   1,242,805    1,741  0.56%    1,303,614    1,636  0.50%    1,488,208    2,064  0.56%
Total interest bearing deposits 4,769,083  3,776  0.32%  4,788,185  3,654  0.31%  5,109,268  4,195  0.33%
Federal funds purchased and securities           
sold under agreement to repurchase 104,668  59  0.23%  113,551  65  0.23%  116,258  57  0.20%
Other borrowings 172,268  938  2.19%  184,000  1,128  2.47%  179,080  1,151  2.58%
Subordinated debentures   60,132    544  3.64%    60,109    543  3.63%    62,981    559  3.56%
Total interest bearing liabilities 5,106,151    5,317  0.42%  5,145,845    5,390  0.42%  5,467,587    5,962  0.44%
Non-interest bearing liabilities:           
Non-interest bearing deposits 1,271,878     1,225,311     1,088,474   
Other liabilities   57,486       53,240       70,312   
Total liabilities 6,435,515     6,424,396     6,626,373   
Stockholders' equity   1,086,618       1,074,789       1,069,319   
Total liabilities and stockholders' equity$  7,522,133    $  7,499,185    $  7,695,692   
Net interest income (FTE)   $  68,689    $  72,316    $  75,510  
Net interest spread (FTE)   4.07%    4.32%    4.38%
Net interest margin (FTE) - quarter-to-date   4.17%    4.41%    4.47%
            
Net interest margin (FTE) - year-to-date   4.29%    4.41%    4.42%
            
Core net interest margin (FTE) - quarter-to-date (1)   3.88%    3.92%    3.87%
Core loan yield (FTE) - quarter-to-date (1)   4.73%    4.82%    5.16%
            
Core net interest margin (FTE) - year-to-date (1)   3.90%    3.92%    3.74%
Core loan yield (FTE) - year-to-date (1)   4.77%    4.82%    5.06%
            
(1) Calculations of core net interest margin and core loan yield and the reconciliations to GAAP are included in the schedules accompanying this release.

 

 Simmons First National Corporation     SFNC 
 Consolidated - Selected Financial Data     
 For the Quarters Ended  Jun 30  Mar 31  Dec 31  Sep 30  Jun 30 
 (Unaudited)   2016    2016    2015    2015    2015  
($ in thousands, except share data)     
QUARTER-TO-DATE     
Financial Highlights - GAAP     
Net Income$  22,909 $  23,481 $  23,782 $  21,598 $  20,018 
Diluted earnings per share   0.75    0.77    0.78    0.72    0.67 
Return on average assets 1.22% 1.26% 1.25% 1.13% 1.04%
Return on average common equity 8.48% 8.87% 9.15% 8.46% 7.73%
Return on tangible common equity 13.52% 14.30% 14.62% 13.58% 12.36%
Net interest margin (FTE) 4.17% 4.41% 4.53% 4.82% 4.47%
FTE adjustment   2,105    2,084    2,185    2,172    2,303 
Amortization of intangibles   1,451    1,455    1,337    1,265    1,388 
Amortization of intangibles, net of taxes   882    884    813    769    844 
Average diluted shares outstanding   30,452,285    30,481,604    30,301,190    30,046,062    29,987,471 
Cash dividends declared per common share   0.24    0.24    0.23    0.23    0.23 
Financial Highlights - Core (non-GAAP)     
Core earnings (excludes nonrecurring items) (1)$  25,091 $  23,185 $  25,913 $  25,565 $  22,444 
Diluted core earnings per share (1)   0.82    0.76    0.86    0.85    0.75 
Core net interest margin (FTE) (2) 3.88% 3.92% 3.87% 3.93% 3.87%
Efficiency ratio (1) 57.09% 58.73% 59.26% 57.40% 58.36%
Core return on average assets (1) 1.34% 1.24% 1.36% 1.33% 1.17%
Core return on average common equity (1) 9.29% 8.75% 9.96% 10.01% 8.67%
Core return on tangible common equity (1) 14.76% 14.13% 15.89% 15.99% 13.80%
YEAR-TO-DATE     
Financial Highlights - GAAP     
Net Income$  46,390 $  23,481 $  74,107 $  50,325 $  28,727 
Diluted earnings per share   1.52    0.77    2.63    1.83    1.10 
Return on average assets 1.24% 1.26% 1.03% 0.96% 0.86%
Return on average common equity 8.67% 8.87% 7.90% 7.41% 6.77%
Return on tangible common equity 13.90% 14.30% 12.53% 11.73% 10.63%
Net interest margin (FTE) 4.29% 4.41% 4.55% 4.58% 4.42%
FTE adjustment   4,189    2,084    8,517    6,332    4,160 
Amortization of intangibles   2,906    1,455    4,889    3,552    2,287 
Amortization of intangibles, net of taxes   1,766    884    2,972    2,159    1,390 
Average diluted shares outstanding   30,438,939    30,481,604    28,209,661    27,497,813    26,203,942 
Cash dividends declared per common share   0.48    0.24    0.92    0.69    0.46 
Financial Highlights - Core (non-GAAP)     
Core earnings (excludes nonrecurring items) (1)$  48,276 $  23,185 $  89,622 $  63,709 $  38,144 
Diluted core earnings per share (1)   1.59    0.76    3.18    2.32    1.46 
Core net interest margin (FTE) (2) 3.90% 3.92% 3.82% 3.82% 3.74%
Efficiency ratio (1) 57.91% 58.73% 59.01% 58.91% 59.94%
Core return on average assets (1) 1.29% 1.24% 1.25% 1.21% 1.14%
Core return on average common equity (1) 9.02% 8.75% 9.55% 9.39% 8.99%
Core return on tangible common equity (1) 14.45% 14.13% 15.05% 14.73% 13.96%
END OF PERIOD     
Book value per share$  35.86 $  35.35 $  34.55 $  33.89 $  33.26 
Tangible book value per share   23.43    22.84    21.97    21.89    21.19 
Shares outstanding 30,415,980  30,324,499  30,278,432  29,939,698  29,894,903 
Full-time equivalent employees   1,880    1,931    1,946    1,967    2,043 
Total number of ATM's   174    185    182    183    186 
Total number of financial centers   140    149    149    149    152 
      
(1) Core earnings exclude nonrecurring items, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release. 
 
(2) Excludes accretable yield adjustment on loans, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release. 

 

 Simmons First National Corporation     SFNC  
 Consolidated - Reconciliation of Core Earnings (non-GAAP)     
 For the Quarters Ended  Jun 30  Mar 31  Dec 31  Sep 30  Jun 30  
 (Unaudited)   2016    2016    2015    2015    2015   
($ in thousands, except per share data)      
QUARTER-TO-DATE      
Net Income$  22,909 $  23,481 $  23,782 $  21,598 $  20,018  
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   372    93    1,237    857    1,247  
Branch right-sizing   3,219    14    60    304    2,745  
Tax effect (1)   (1,409)   191    (1,375)   (2,560)   (1,566) 
Net nonrecurring items   2,182    (296)   2,131    3,967    2,426  
Core earnings (non-GAAP)$  25,091 $  23,185 $  25,913 $  25,565 $  22,444  
       
Diluted earnings per share$  0.75 $  0.77 $  0.78 $  0.72 $  0.67  
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   0.01    -     0.05    0.03    0.04  
Branch right-sizing   0.11    -     -     0.01    0.09  
Tax effect (1)   (0.05)   0.01    (0.05)   (0.09)   (0.05) 
Net nonrecurring items   0.07    (0.01)   0.08    0.13    0.08  
Core earnings (non-GAAP)$  0.82 $  0.76 $  0.86 $  0.85 $  0.75  
       
YEAR-TO-DATE      
Net Income$  46,390 $  23,481 $  74,107 $  50,325 $  28,727  
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)   (594)   -     -     -   
Loss on FDIC loss-share termination   -     -     7,476    7,476    -   
Merger-related costs   465    93    13,760    12,523    11,666  
Branch right-sizing   3,233    14    3,144    3,084    2,780  
Tax effect (1)   (1,218)   191    (8,964)   (7,589)   (5,029) 
Net nonrecurring items   1,886    (296)   15,515    13,384    9,417  
Core earnings (non-GAAP)$  48,276 $  23,185 $  89,622 $  63,709 $  38,144  
       
Diluted earnings per share$  1.52 $  0.77 $  2.63 $  1.83 $  1.10  
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)   (0.02)   -     -     -   
Loss on FDIC loss-share termination   -     -     0.27    0.27    -   
Merger-related costs   0.02    -     0.49    0.46    0.45  
Branch right-sizing   0.11    -     0.11    0.11    0.11  
Tax effect (1)   (0.04)   0.01    (0.33)   (0.28)   (0.20) 
Net nonrecurring items   0.07    (0.01)   0.55    0.49    0.36  
Core earnings (non-GAAP)$  1.59 $  0.76 $  3.18 $  2.32 $  1.46  
       
 (1) Effective tax rate of 39.225%, adjusted for non-deductible merger-related costs. 
 

 

Simmons First National Corporation     SFNC  
 Reconciliation Of Non-GAAP Financial Measures - End of Period     
 For the Quarters Ended       
 (Unaudited)  Jun 30  Mar 31  Dec 31  Sept 30  Jun 30  
   2016    2016    2016    2015    2015   
($ in thousands, except per share data)      
       
Calculation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets   
       
Total stockholders' equity$  1,090,711 $  1,071,984 $  1,076,855 $  1,045,441 $  1,025,105  
Less preferred stock   -      -      (30,852)   (30,852)   (30,852) 
Total common stockholders' equity   1,090,711    1,071,984    1,046,003    1,014,589    994,253  
Less intangible assets:                
Goodwill   (327,686)   (327,686)   (327,686)   (314,344)   (314,344) 
Other intangible assets   (50,329)   (51,783)   (53,237)   (44,904)   (46,605) 
Total intangibles   (378,015)   (379,469)   (380,923)   (359,248)   (360,949) 
Tangible common stockholders' equity$  712,696 $  692,515 $  665,080 $  655,341 $  633,304  
                 
Total assets$  7,534,219 $  7,536,953 $  7,559,658 $  7,559,694 $  7,614,358  
Less intangible assets:                
Goodwill   (327,686)   (327,686)   (327,686)   (314,344)   (314,344) 
Other intangible assets   (50,329)   (51,783)   (53,237)   (44,904)   (46,605) 
Total intangibles   (378,015)   (379,469)   (380,923)   (359,248)   (360,949) 
Tangible assets$  7,156,204 $  7,157,484 $  7,178,735 $  7,200,446 $  7,253,409  
                 
Ratio of equity to assets 14.48% 14.22% 14.24% 13.83% 13.46% 
Ratio of tangible common equity to tangible assets 9.96% 9.68% 9.26% 9.10% 8.73% 
       
Calculation of Discount for credit losses and allowance on loans acquired to total loans acquired plus    
discount for credit losses and allowance on loans acquired      
       
Credit discount on acquired loans$  38,294 $  45,158 $  55,702 $  70,441 $  83,303  
Allowance for loan losses on acquired loans   954    954    954    954    954  
Total credit discount and ALLL on acquired loans$  39,248 $  46,112 $  56,656 $  71,395 $  84,257  
Total loans acquired$  1,327,683 $  1,503,482 $  1,729,557 $  2,085,211 $  2,285,684  
Discount and ALLL on acquired loans to acquired loans 2.96% 3.07% 3.28% 3.42% 3.69% 
                 
Calculation of Total Allowance and Credit Coverage                
                 
Allowance for loan losses$  33,523 $  32,681 $  31,351 $  30,380 $  30,567  
Total credit discount and ALLL on acquired loans   39,248    46,112    56,656    71,395    84,257  
Total allowance and credit discount$  72,771 $  78,793 $  88,007 $  101,775 $  114,824  
Total loans$  5,053,105 $  4,976,173 $  4,976,011 $  4,924,489 $  4,896,913  
Total allowance and credit coverage 1.44% 1.58% 1.77% 2.07% 2.34% 
                 
Calculation of Tangible Book Value per Share                
                 
Total common stockholders' equity$  1,090,711 $  1,071,984 $  1,046,003 $  1,014,589 $  994,253  
Less intangible assets:                
Goodwill   (327,686)   (327,686)   (327,686)   (314,344)   (314,344) 
Other intangible assets   (50,329)   (51,783)   (53,237)   (44,904)   (46,605) 
Total intangibles   (378,015)   (379,469)   (380,923)   (359,248)   (360,949) 
Tangible common stockholders' equity$  712,696 $  692,515 $  665,080 $  655,341 $  633,304  
Shares of common stock outstanding   30,415,980    30,324,499    30,278,432    29,939,698    29,894,903  
Book value per common share$  35.86 $  35.35 $  34.55 $  33.89 $  33.26  
Tangible book value per common share$  23.43 $  22.84 $  21.97 $  21.89 $  21.19  

 

Simmons First National Corporation     SFNC  
 Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date     
 For the Quarters Ended       
 (Unaudited)  Jun 30  Mar 31  Dec 31  Sept 30  Jun 30  
   2016    2016    2016    2015    2015   
($ in thousands)      
Calculation of Core Return on Average Assets      
       
Net income available to common stockholders$  22,909 $  23,481 $  23,782 $  21,598 $  20,018  
Net nonrecurring items, net of taxes, adjustment   2,182    (296)   2,131    3,967    2,426  
Core earnings$  25,091 $  23,185 $  25,913 $  25,565 $  22,444  
                 
Average total assets$  7,522,133 $  7,499,185 $  7,550,569 $  7,607,767 $  7,695,692  
                 
Return on average assets 1.22% 1.26% 1.25% 1.13% 1.04% 
Core return on average assets 1.34% 1.24% 1.36% 1.33% 1.17% 
                 
Calculation of Return on Tangible Common Equity                
                 
Net income available to common stockholders$  22,909 $  23,481 $  23,782 $  21,598 $  20,018  
Amortization of intangibles, net of taxes   882    884    813    769    844  
Total income available to common stockholders$  23,791 $  24,365 $  24,595 $  22,367 $  20,862  
                 
Net nonrecurring items, net of taxes   2,182    (296)   2,131    3,967    2,426  
Core earnings   25,091    23,185    25,913    25,565    22,444  
Amortization of intangibles, net of taxes   882    884    813    769    844  
Total core income available to common stockholders$  25,973 $  24,069 $  26,726 $  26,334 $  23,288  
                 
Average common stockholders' equity$  1,086,618 $  1,065,296 $  1,031,710 $  1,013,289 $  1,038,434  
Less average intangible assets:                
  Goodwill   (327,686)   (327,686)   (320,216)   (314,344)   (314,344) 
  Other intangibles   (51,043)   (52,498)   (44,302)   (45,712)   (47,302) 
Total average intangibles   (378,729)   (380,184)   (364,518)   (360,056)   (361,646) 
Average tangible common stockholders' equity$  707,889 $  685,112 $  667,192 $  653,233 $  676,788  
                 
Return on average common equity 8.48% 8.87% 9.15% 8.46% 7.73% 
Return on tangible common equity 13.52% 14.30% 14.62% 13.58% 12.36% 
Core return on average common equity 9.29% 8.75% 9.96% 10.01% 8.67% 
Core return on tangible common equity 14.76% 14.13% 15.89% 15.99% 13.80% 
       
Calculation of Efficiency Ratio (1)      
       
Non-interest expense$  64,137 $  61,789 $  67,806 $  67,495 $  64,804  
Nonrecurring non-interest expense adjustment   (3,591)   (107)   (3,506)   (1,320)   (3,459) 
Less other real estate and foreclosure expense   (967)   (966)   (1,167)   (2,297)   (1,017) 
Less amortization of intangibles   (1,451)   (1,455)   (1,337)   (1,265)   (1,388) 
Efficiency ratio numerator$  58,128 $  59,261 $  61,796 $  62,613 $  58,940  
       
Net-interest income$  66,583 $  70,232 $  73,751 $  78,676 $  73,207  
Plus non-interest income   36,888    29,503    28,649    23,072    24,948  
Nonrecurring non-interest income adjustment   -     (594)   -     5,207    533  
Plus fully tax-equivalent adjustment   2,105    2,084    2,185    2,172    2,303  
(Gain) loss on sale of securities   (3,759)   (329)   (305)   (40)   -   
Efficiency ratio denominator$  101,817 $  100,896 $  104,280 $  109,087 $  100,991  
                 
Efficiency ratio (1) 57.09% 58.73% 59.26% 57.40% 58.36% 
                 
Calculation of Core Net Interest Margin                
                 
Net interest income$  66,583 $  70,232 $  73,751 $  78,676 $  73,207  
FTE adjustment   2,105    2,084    2,185    2,172    2,303  
Total accretable yield   (4,700)   (8,077)   (11,076)   (14,928)   (10,133) 
Core net interest income$  63,988 $  64,239 $  64,860 $  65,920 $  65,377  
Average earning assets$  6,625,642 $  6,597,389 $  6,652,486 $  6,660,434 $  6,774,693  
                 
Core net interest margin 3.88% 3.92% 3.87% 3.93% 3.87% 
                 
Calculation of Core Loan Yield                
                 
Loan interest income$  63,009 $  66,678 $  70,511 $  76,432 $  70,438  
Total accretable yield   (4,700)   (8,077)   (11,076)   (14,928)   (10,133) 
Core loan interest income$  58,309 $  58,601 $  59,435 $  61,504 $  60,305  
Average loan balance$  4,957,888 $  4,889,685 $  4,868,283 $  4,835,068 $  4,689,941  
                 
Core loan yield 4.73% 4.82% 4.84% 5.05% 5.16% 
       
(1) Efficiency ratio is noninterest expense before foreclosed property expense and amortization of intangibles as a percent of net interest income (fully 
taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and nonrecurring items.  

 

Simmons First National Corporation     SFNC  
 Reconciliation Of Non-GAAP Financial Measures - Year-to-Date      
 For the Quarters Ended       
 (Unaudited)  Jun 30  Mar 31  Dec 31  Sept 30  Jun 30  
   2016    2016    2016    2015    2015   
($ in thousands)      
Calculation of Core Return on Average Assets      
       
Net income available to common stockholders$  46,390 $  23,481 $  74,107 $  50,325 $  28,727  
Net nonrecurring items, net of taxes, adjustment   1,886    (296)   15,515    13,384    9,417  
Core earnings$  48,276 $  23,185 $  89,622 $  63,709 $  38,144  
                 
Average total assets$  7,510,657 $  7,499,185 $  7,164,788 $  7,036,535 $  6,734,980  
                 
Return on average assets 1.24% 1.26% 1.03% 0.96% 0.86% 
Core return on average assets 1.29% 1.24% 1.25% 1.21% 1.14% 
                 
Calculation of Return on Tangible Common Equity                
                 
Net income available to common stockholders$  46,390 $  23,481 $  74,107 $  50,325 $  28,727  
Amortization of intangibles, net of taxes   1,766    884    2,972    2,159    1,390  
Total income available to common stockholders$  48,156 $  24,365 $  77,079 $  52,484 $  30,117  
                 
Net nonrecurring items, net of taxes   1,886    (296)   15,515    13,384    9,417  
Core earnings   48,276    23,185    89,622    63,709    38,144  
Amortization of intangibles, net of taxes   1,766    884    2,972    2,159    1,390  
Total core income available to common stockholders$  50,042 $  24,069 $  92,594 $  65,868 $  39,534  
                 
Average common stockholders' equity$  1,075,957 $  1,065,296 $  938,521 $  907,458 $  855,325  
Less average intangible assets:                
  Goodwill   (327,686)   (327,686)   (281,133)   (268,106)   (244,980) 
  Other intangibles   (51,771)   (52,498)   (42,104)   (41,372)   (39,202) 
Total average intangibles   (379,457)   (380,184)   (323,237)   (309,478)   (284,182) 
Average tangible common stockholders' equity$  696,500 $  685,112 $  615,284 $  597,980 $  571,143  
                 
Return on average common equity 8.67% 8.87% 7.90% 7.41% 6.77% 
Return on tangible common equity 13.90% 14.30% 12.53% 11.73% 10.63% 
Core return on average common equity 9.02% 8.75% 9.55% 9.39% 8.99% 
Core return on tangible common equity 14.45% 14.13% 15.05% 14.73% 13.96% 
                 
Calculation of Efficiency Ratio (1)                
                 
Non-interest expense$  125,931 $  61,789 $  256,970 $  189,166 $  122,011  
Nonrecurring non-interest expense adjustment   (3,698)   (107)   (18,747)   (15,241)   (13,922) 
Less other real estate and foreclosure expense   (1,934)   (966)   (4,861)   (3,694)   (1,398) 
Less amortization of intangibles   (2,906)   (1,455)   (4,889)   (3,552)