PINE BLUFF, Ark., April 22, 2019 (GLOBE NEWSWIRE) -- Simmons First National Corporation (NASDAQ: SFNC) today announced net income of $47.7 million for the quarter ended March 31, 2019, compared to $51.3 million for the same period in 2018, a decrease of $3.6 million, or 7.1%. Diluted earnings per share were $0.51, a decrease of $0.04, or 7.3%, from the same period in 2018. Included in first quarter 2019 results was $1.4 million in net after-tax merger-related, early retirement program and branch right-sizing costs.

Excluding the impact of these items, core earnings were $49.1 million for the quarter ended March 31, 2019, compared to $52.6 million for the quarter ended March 31, 2018, a decrease of $3.5 million, or 6.7%. Core diluted earnings per share were $0.53, a decrease of $0.04, or 7.0%, from the same period in 2018.

“We had solid operating results in the first quarter. Revenue was affected by three significant items compared to the first quarter of 2018.  Accretion income was down $4.6 million; debit card interchange income, primarily as a result of the Durbin rate cap, was down $2.8 million; and the gain on sale of securities was up $2.7 million, resulting in a net decrease of $4.7 million from the previous year,” said George A. Makris Jr., Chairman and CEO.

Makris continued, “We would also like to welcome our newest customers and associates from the Reliance Bank merger into the Simmons family. We closed the transaction Friday, April 12, 2019, and performed the systems conversion over that weekend. We are excited about our growth opportunities in the St. Louis market due to our increased presence.”

    
Selected Highlights:1st QTR 20194th QTR 20181st QTR 2018
Net income$47.7 million$55.6 million$51.3 million
Diluted earnings per share$0.51$0.60$0.55
Return on avg assets1.19%1.35%1.38%
Return on avg common equity8.60%9.98%9.90%
Return on tangible common equity15.34%17.96%18.77%
    
Core earnings(1)$49.1 million$56.5 million$52.6 million
Diluted core earnings per share(1)$0.53$0.61$0.57
Core return on avg assets(1)1.22%1.37%1.41%
Core return on avg common equity(1)8.85%10.13%10.15%
Core return on tangible common equity(1)15.76%18.21%19.23%
    
Efficiency ratio(2)56.76%51.99%53.24%
  1. Core earnings excludes non-core items, and is a non-GAAP measurement.
  2. Efficiency ratio is noninterest expense before foreclosed property expense, amortization of intangibles as a percent of net interest income (fully taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and non-core items.

Loans

(In billions)1st Qtr 20194th Qtr 20181st Qtr 2018
Total loans$11.7$11.7$11.0
Legacy loans (excludes loans acquired)$8.7$8.4$6.3
Loans acquired$3.0$3.3$4.7
    

Total loans, including those acquired, were $11.7 billion at March 31, 2019 an increase of $753.4 million, or 6.9%, compared to $11.0 billion at March 31, 2018. On a linked-quarter basis (March 31, 2019 compared to December 31, 2018), total loans remained flat at $11.7 billion. The seasonal decrease in the credit card and agricultural portfolios was $40.4 million. Loans approved and ready to close totaled $473.3 million at March 31, 2019 compared to $277.5 million as of year-end.  “Based on our current loan pipeline, we estimate loan growth in the 5% range for 2019,” said Makris.    

Deposits

(In billions)1st Qtr 20194th Qtr 20181st Qtr 2018
Total deposits$12.0$12.4$11.7
Non-time deposits$9.3$9.5$9.5
Time deposits$2.7$2.9$2.2
    

Total deposits were $12.0 billion at March 31, 2019, an increase of $332.6 million, or 2.9%, since March 31, 2018.  Total deposits decreased $409.2 million, or 3.3%, compared to December 31, 2018.  During the quarter, brokered and public fund deposits decreased $557.2 million while core deposits increased $148.0 million. “Our cash balance was reduced as we eliminated some high cost deposits.  We are very pleased with our growth in core deposits as we continue to emphasize relationship banking,” said Makris.

Net Interest Income

 1st Qtr
2019
4th Qtr
2018
3rd Qtr
2018
2nd Qtr
2018
1st Qtr
2018
Loan yield (1)5.53%5.39%5.54%5.40%5.38%
Core loan yield (1) (2)5.29%5.25%5.19%5.04%4.95%
Security yield (1)3.09%2.87%2.74%2.75%2.67%
Cost of interest bearing deposits1.31%1.20%1.05%0.84%0.74%
Cost of deposits (3)1.02%0.93%0.81%0.64%0.56%
Cost of borrowed funds2.73%2.64%2.48%2.38%1.70%
Net interest margin (1)3.85%3.76%3.98%3.99%4.17%
Core net interest margin (1) (2)3.67%3.66%3.71%3.70%3.82%
  1. Fully tax equivalent.
  2. Core loan yield and core net interest margin exclude accretion, and are non-GAAP measurements.
  3. Includes non-interest bearing deposits.

The Company’s net interest income for the first quarter of 2019 was $137.0 million, an increase of $2.1 million, or 1.5%, from the same period of 2018. Included in interest income was the yield accretion recognized on loans acquired of $6.7 million and $11.3 million for the first quarters of 2019 and 2018, respectively. 

Net interest margin was 3.85% for the quarter ended March 31, 2019, a 9 basis point increase from the fourth quarter 2018. The Company’s core net interest margin, excluding the accretion, was 3.67% for the first quarter of 2019, a 1 basis point increase from the fourth quarter of 2018.  Cost of interest bearing deposits was 1.31% for the first quarter of 2019, an 11 basis point increase from prior quarter.

Non-Interest Income

Non-interest income for the first quarter of 2019 was $33.8 million, a decrease of $3.8 million compared to the same period in the previous year. The decrease was primarily due to reductions in debit card fees and mortgage and SBA lending premium income. The interchange rate cap as established by the Durbin amendment became effective for the Company July 1, 2018, resulting in a $2.8 million reduction in debit card fees when compared to the first quarter of last year.  

Mortgage and SBA lending premium income decreased $1.1 million when compared to the same quarter in 2018. Mortgage lending income during the first quarter of 2019 was lower by $649,000 compared to 2018 and SBA premium income decreased by $476,000 due to fewer loan sales in the current quarter compared to the first quarter of 2018.  

During the first quarter, the Company sold approximately $197 million in securities which resulted in a gain of $2.7 million, as part of a bond portfolio analysis of expected cash flow changes.

Non-Interest Expense

Non-interest expense for the first quarter of 2019 was $101.4 million, an increase of $3.3 million compared to the first quarter of 2018. Included in this quarter were $1.9 million of pre-tax merger-related, early retirement program and branch right-sizing costs. Excluding these expenses, core non-interest expense was $99.5 million for the first quarter of 2019, an increase of $3.2 million compared to the same period in 2018.  Software and technology costs increased approximately $1.8 million over the same period in the prior year.  The Company’s Next Generation Banking technology initiative is progressing on schedule and the incremental IT expenditures during the first quarter were primarily related to this initiative.

During the first quarter, the Company offered qualifying associates an early retirement option resulting in $355,000 of non-core expense.  The Company projects an additional $2.5 million of expense related to these retirements in the second quarter of 2019 and expects ongoing net savings of approximately $4.4 million beginning in the third quarter of 2019.

The efficiency ratio for the first quarter of 2019 was 56.76% compared to 53.24% for the same period in 2018.

Asset Quality

 1st Qtr
2019
4th Qtr
2018
3rd Qtr
2018
2nd Qtr
2018
1st Qtr
2018
Allowance for loan losses to total loans0.68%0.67%0.68%0.73%0.75%
Allowance for loan losses to non-performing loans97%164%136%115%99%
Non-performing loans to total loans0.70%0.41%0.50%0.63%0.76%
Net charge-off ratio (annualized)0.20%0.35%0.36%0.17%0.24%
 -  Net charge-off ratio excluding loan sale  0.12%  
      

All loans acquired 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, 2019, the allowance for loan losses for legacy loans was $59.2 million. The allowance for loan losses for loans acquired was $1.3 million and the acquired loan discount credit mark was $42.4 million. The allowances for loan losses and credit marks provide a total of $103.0 million of coverage, which equates to a total coverage ratio of 0.87% of gross loans. The ratio of credit mark and related allowance to loans acquired was 1.41%.

During the quarter, the Company identified loans specific to the acquired portfolio of Bank SNB’s Dallas market which were poorly structured or were poorly managed post-funding, and were primarily linked to an individual lender.  As a result, the Company made a provision for acquired loans of $2.0 million related to the Bank SNB acquired pool of loans.  

Makris stated, “We have carefully reviewed these loans for potential losses and believe we have adequately identified any risk associated with the loans.  Unfortunately, based on purchase accounting rules, the credit mark associated with the declining Bank SNB acquired pool is a standalone amount not related to Simmons’ overall allowance for loan losses and must be managed specific to that pool of loans.”

Provision for loan losses for the first quarter of 2019 was $9.3 million, essentially flat when compared to March 31, 2018 and $335,000 less than the fourth quarter of 2018.

Foreclosed Assets and Other Real Estate Owned

At March 31, 2019, foreclosed assets and other real estate owned were $19.0 million, a decrease of $10.2 million, or 35.0%, compared to the same period in 2018 and a decrease of $6.6 million, or 25.9% from December 31, 2018. The composition of these assets is divided into three types: 

      
 

($ in millions)
1st Qtr
2019
4th Qtr
2018
3rd Qtr
2018
2nd Qtr
2018
1st Qtr
2018
Closed bank branches, branch sites & associate relocation$7.6$8.0$9.6$7.2$8.1
Foreclosed assets - acquired$6.2$11.5$8.0$13.2$14.9
Foreclosed assets - legacy$5.2$6.1$5.1$10.1$6.1
      

Capital

 1st Qtr
2019
4th Qtr
2018
3rd Qtr
2018
2nd Qtr
2018
1st Qtr
2018
Stockholders’ equity to total assets14.3%13.6%13.4%13.3%13.5%
Tangible common equity to tangible assets9.0%8.4%8.1%7.9%7.9%
Regulatory tier 1 leverage ratio9.1%8.8%8.7%8.6%8.6%
Regulatory total risk-based capital ratio13.6%13.3%13.1%13.7%14.1%
      

At March 31, 2019, common stockholders' equity was $2.3 billion. Book value per share was $24.87 and tangible book value per share was $14.78 at March 31, 2019, compared to $22.86 and $12.62, respectively, at March 31, 2018.

Simmons First National Corporation

Simmons First National Corporation is a financial holding company headquartered in Pine Bluff, Arkansas, with total assets of approximately $16.1 billion as of March 31, 2019, conducting financial operations in Arkansas, Colorado, Kansas, Missouri, Oklahoma, Tennessee and Texas. The Company, through its subsidiaries, offers comprehensive financial solutions delivered with a client-centric approach. The Company’s common stock trades on the NASDAQ Market under the symbol “SFNC.”

Conference Call

Management will conduct a live conference call to review this information beginning at 9:00 a.m. CDT on Tuesday, April 23, 2019. 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 4557809. In addition, the call will be available live or in recorded version on the Company’s website at www.simmonsbank.com.

Non-GAAP Financial Measures

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

Forward-Looking Statements

Some of the statements in this news release may not be based on historical facts and should be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by reference to future periods or by the use of forward-looking terminology, such as “believe,” “budget,” “expect,” “foresee,” “anticipate,” “intend,” “indicate,” “target,” “estimate,” “plan,” “project,” “continue,” “contemplate,” “positions,” “prospects,” “predict,” or “potential,” by future conditional verbs such as “will,” “would,” “should,” “could,” “might” or “may,” or by variations of such words or by similar expressions. These forward-looking statements include, without limitation, statements relating to Simmons’ future growth, revenue, assets, asset quality, profitability, net interest margin, non-interest revenue, allowance for loan losses, and the effect of certain new accounting standards on Simmons’ financial statements. Any forward-looking statement speaks only as of the date of this news release, and Simmons undertakes 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 are based on various assumptions and involve inherent risk and uncertainties. Various factors, including, but not limited to, changes in economic conditions, credit quality, interest rates, loan demand, deposit flows, real estate values, the assumptions used in making the forward-looking statements, the securities markets generally or the price of Simmons common stock specifically, information technology affecting the financial industry, and the Company’s ability to manage and successfully integrate its mergers and acquisitions 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 for the year ended December 31, 2018, which has been filed with, and is available from, the Securities and Exchange Commission.

FOR MORE INFORMATION CONTACT:
Stephen C. Massanelli
EVP, Chief Administrative Officer and Investor Relations Officer
Simmons First National Corporation
steve.massanelli@simmonsbank.com

      
 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)   2019     2018     2018     2018     2018  
($ in thousands)     
 ASSETS      
Cash and non-interest bearing balances due from banks $  151,112  $  171,792  $  125,231  $  162,567  $  170,811 
Interest bearing balances due from banks and federal funds sold    340,049     661,666     388,573     781,279     688,853 
Cash and cash equivalents    491,161     833,458     513,804     943,846     859,664 
 Interest bearing balances due from banks - time    4,684     4,934     3,954     2,974     3,069 
 Investment securities - held-to-maturity    61,435     289,194     323,306     333,503     352,756 
 Investment securities - available-for-sale    2,240,111     2,151,752     1,997,814     1,938,644     1,830,113 
 Mortgage loans held for sale    18,480     26,799     48,195     39,812     17,708 
 Other assets held for sale    397     1,790     5,136     14,898     24,784 
 Loans:      
Legacy loans    8,684,550     8,430,388     8,123,274     7,133,461     6,290,383 
Allowance for loan losses    (59,243)    (56,599)    (55,358)    (51,732)    (47,207)
Loans acquired, net of discount and allowance    3,056,187     3,292,783     3,734,921     4,232,434     4,696,945 
Net loans    11,681,494     11,666,572     11,802,837     11,314,163     10,940,121 
Premises and equipment    333,740     295,060     287,246     288,777     289,355 
Foreclosed assets and other real estate owned    18,952     25,565     22,664     30,503     29,140 
Interest receivable    51,796     49,938     51,509     44,266     42,129 
Bank owned life insurance    192,736     193,170     192,680     191,575     186,473 
Goodwill    845,687     845,687     845,687     845,687     845,687 
Other intangible assets    88,694     91,334     93,975     96,720     99,504 
Other assets    62,272     68,084     92,457     80,165     76,806 
Total assets $  16,091,639  $  16,543,337  $  16,281,264  $  16,165,533  $  15,597,309 
      
      
LIABILITIES AND STOCKHOLDERS' EQUITY      
 Deposits:      
Non-interest bearing transaction accounts $  2,674,034  $  2,672,405  $  2,778,670  $  2,683,489  $  2,734,287 
Interest bearing transaction accounts and savings deposits    6,666,823     6,830,191     6,776,330     6,916,520     6,720,754 
Time deposits    2,648,674     2,896,156     2,533,506     2,353,439     2,201,874 
 Total deposits    11,989,531     12,398,752     12,088,506     11,953,448     11,656,915 
 Federal funds purchased and securities sold      
under agreements to repurchase    120,213     95,792     109,213     99,801     120,909 
Other borrowings    1,169,989     1,345,450     1,420,917     1,451,811     1,140,986 
Subordinated notes and debentures    354,041     353,950     372,934     413,337     468,465 
Other liabilities held for sale    162     162     424     1,840     2,781 
Accrued interest and other liabilities    155,382     102,797     105,951     98,388     98,202 
Total liabilities    13,789,318     14,296,903     14,097,945     14,018,625     13,488,258 
      
      
Stockholders' equity:      
Common stock    926     923     923     923     922 
Surplus    1,599,566     1,597,944     1,597,261     1,594,342     1,590,086 
Undivided profits    707,829     674,941     633,175     591,826     552,105 
Accumulated other comprehensive loss:      
Unrealized depreciation on AFS securities    (6,000)    (27,374)    (48,040)    (40,183)    (34,062)
Total stockholders' equity    2,302,321     2,246,434     2,183,319     2,146,908     2,109,051 
Total liabilities and stockholders' equity $  16,091,639  $  16,543,337  $  16,281,264  $  16,165,533  $  15,597,309 
      
      

 

 Simmons First National Corporation      SFNC  
 Consolidated Statements of Income - Quarter-to-Date       
 For the Quarters Ended Mar 31  Dec 31  Sep 30  Jun 30   Mar 31 
 (Unaudited)   2019    2018    2018    2018     2018  
($ in thousands, except per share data)      
INTEREST INCOME       
Loans $  159,440 $  159,996 $  162,438 $  150,253  $  143,350 
Interest bearing balances due from banks and federal funds sold    2,154    2,168    1,405    1,414     1,009 
Investment securities    17,312    15,760    14,640    14,296     12,622 
Mortgage loans held for sale    210    372    501    305     158 
TOTAL INTEREST INCOME    179,116    178,296    178,984    166,268     157,139 
       
INTEREST EXPENSE       
Time deposits    12,320    11,273    8,017    6,175     4,842 
Other deposits    18,430    17,489    16,373    12,286     10,755 
Federal funds purchased and securities       
sold under agreements to repurchase    136    121    104    88     110 
Other borrowings    6,793    7,134    6,240    5,141     5,139 
Subordinated notes and debentures    4,411    4,498    5,282    5,741     1,327 
TOTAL INTEREST EXPENSE    42,090    40,515    36,016    29,431     22,173 
NET INTEREST INCOME    137,026    137,781    142,968    136,837     134,966 
Provision for loan losses    9,285    9,620    10,345    9,033     9,150 
NET INTEREST INCOME AFTER PROVISION       
FOR LOAN LOSSES    127,741    128,161    132,623    127,804     125,816 
NON-INTEREST INCOME       
Trust income    5,708    5,980    6,277    5,622     5,249 
Service charges on deposit accounts    10,068    11,263    10,837    10,063     10,345 
Other service charges and fees    1,289    1,501    1,201    2,017     2,750 
Mortgage and SBA lending income    3,320    1,643    1,825    3,130     4,445 
Investment banking income    618    829    664    814     834 
Debit and credit card fees    6,098    6,547    6,820    10,105     8,796 
Bank owned life insurance income    795    1,105    1,105    1,102     1,103 
Gain (loss) on sale of securities, net    2,740    8    54    (7)    6 
Other income    3,125    5,712    4,942    5,202     4,007 
TOTAL NON-INTEREST INCOME    33,761    34,588    33,725    38,048     37,535 
NON-INTEREST EXPENSE       
Salaries and employee benefits    56,367    49,193    55,515    55,678     56,357 
Occupancy expense, net    7,475    7,016    7,713    7,921     6,960 
Furniture and equipment expense    3,358    4,139    3,761    4,020     4,403 
Other real estate and foreclosure expense    637    1,540    538    1,382     1,020 
Deposit insurance    2,040    2,489    2,248    1,856     2,128 
Merger-related costs    1,470    797    804    1,465     1,711 
Other operating expenses    30,062    30,222    29,674    26,185     25,494 
TOTAL NON-INTEREST EXPENSE    101,409    95,396    100,253    98,507     98,073 
NET INCOME BEFORE INCOME TAXES    60,093    67,353    66,095    67,345     65,278 
Provision for income taxes    12,398    11,707    10,902    13,783     13,966 
NET INCOME $  47,695 $  55,646 $  55,193 $  53,562  $  51,312 
BASIC EARNINGS PER SHARE $  0.52 $  0.60 $  0.60 $  0.58  $  0.56 
DILUTED EARNINGS PER SHARE $  0.51 $  0.60 $  0.59 $  0.58  $  0.55 
       

 

 Simmons First National Corporation     SFNC 
 Consolidated Risk-Based Capital      
 For the Quarters Ended  Mar 31    Dec 31     Sep 30     Jun 30     Mar 31  
 (Unaudited)   2019     2018     2018     2018     2018  
($ in thousands)     
Tier 1 capital     
Stockholders' equity$  2,302,321  $  2,246,434  $  2,183,319  $  2,146,908  $  2,109,051 
Trust preferred securities, net allowable   -      -      -      -      -  
Disallowed intangible assets, net of deferred tax   (910,122)    (912,428)    (914,788)    (917,050)    (918,161)
Unrealized loss on AFS securities   6,000     27,374     48,040     40,183     34,062 
Total Tier 1 capital   1,398,199     1,361,380     1,316,571     1,270,041     1,224,952 
      
      
Tier 2 capital     
Qualifying unrealized gain on AFS equity securities   -      -      1     1     8 
Trust preferred securities and subordinated debt   354,041     353,950     372,934     413,337     468,466 
Qualifying allowance for loan losses and     
reserve for unfunded commitments   67,771     63,608     63,618     60,691     54,436 
Total Tier 2 capital   421,812     417,558     436,553     474,029     522,910 
Total risk-based capital$  1,820,011  $  1,778,938  $  1,753,124  $  1,744,070  $  1,747,862 
      
Common equity     
Tier 1 capital$  1,398,199  $  1,361,380  $  1,316,571  $  1,270,041  $  1,224,952 
Less: Trust preferred securities   -      -      -      -      -  
Total common equity$  1,398,199  $  1,361,380  $  1,316,571  $  1,270,041  $  1,224,952 
      
      
Risk weighted assets$  13,364,636  $  13,326,832  $  13,402,910  $  12,713,093  $  12,417,233 
      
      
Adjusted average assets for leverage ratio$  15,423,961  $  15,512,042  $  15,179,889  $  14,714,205  $  14,179,390 
      
      
Ratios at end of quarter     
Equity to assets 14.31%  13.58%  13.41%  13.28%  13.52%
Tangible common equity to tangible assets (1) 9.02%  8.39%  8.11%  7.91%  7.94%
Common equity Tier 1 ratio (CET1) 10.46%  10.22%  9.82%  9.99%  9.86%
Tier 1 leverage ratio 9.07%  8.78%  8.67%  8.63%  8.64%
Tier 1 risk-based capital ratio 10.46%  10.22%  9.82%  9.99%  9.86%
Total risk-based capital ratio 13.62%  13.35%  13.08%  13.72%  14.08%
      
(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  Mar 31    Dec 31    Sep 30    Jun 30    Mar 31  
 (Unaudited)   2019    2018    2018    2018    2018   
($ in thousands)      
Legacy Loan Portfolio - End of Period (1)      
 Consumer       
  Credit cards $  181,549 $  204,173 $  182,137 $  180,352 $  176,602 
  Other consumer    213,659    201,297    259,581    277,330    284,285 
 Total consumer    395,208    405,470    441,718    457,682    460,887 
 Real Estate       
  Construction    1,376,162    1,300,723    1,229,888    967,720    786,077 
  Single-family residential    1,431,407    1,440,443    1,401,991    1,314,787    1,193,464 
  Other commercial    3,355,109    3,225,287    3,077,188    2,816,420    2,611,358 
 Total real estate    6,162,678    5,966,453    5,709,067    5,098,927    4,590,899 
 Commercial       
  Commercial    1,801,422    1,774,909    1,608,342    1,237,910    971,704 
  Agricultural    147,216    164,514    218,778    187,006    128,247 
 Total commercial    1,948,638    1,939,423    1,827,120    1,424,916    1,099,951 
 Other    178,026    119,042    145,369    151,936    138,646 
  Total Loans $  8,684,550 $  8,430,388 $  8,123,274 $  7,133,461 $  6,290,383 
       
       
 (1) Excludes all acquired loans.       
       
Investment Securities - End of Period      
 Held-to-Maturity       
  U.S. Government agencies $  12,996 $  16,990 $  34,983 $  36,976 $  46,961 
  Mortgage-backed securities    12,847    13,346    13,933    14,645    15,404 
  State and political subdivisions    33,597    256,863    272,396    279,787    286,901 
  Other securities    1,995    1,995    1,994    2,095    3,490 
  Total held-to-maturity    61,435    289,194    323,306    333,503    352,756 
       
 Available-for-Sale       
  U.S. Government agencies $  161,577 $  154,301 $  141,460 $  145,767 $  149,804 
  Mortgage-backed securities    1,345,677    1,522,900    1,419,626    1,395,231    1,356,179 
  State and political subdivisions    580,790    314,843    282,439    245,335    185,888 
  FHLB stock    65,220    73,105    72,579    72,042    58,177 
  Other securities    86,847    86,603    81,710    80,269    80,065 
  Total available-for-sale    2,240,111    2,151,752    1,997,814    1,938,644    1,830,113 
  Total investment securities $  2,301,546 $  2,440,946 $  2,321,120 $  2,272,147 $  2,182,869 
  Fair value - HTM investment securities $  61,956 $  290,830 $  322,838 $  334,857 $  354,649 
       
       
Investment Securities - QTD Average      
 Taxable securities $  1,880,694 $  1,815,203 $  1,775,193 $  1,750,172 $  1,618,270 
 Tax exempt securities    590,941    551,185    539,135    514,838    460,675 
  Total investment securities - QTD average $  2,471,635 $  2,366,388 $  2,314,328 $  2,265,010 $  2,078,945 
       
       


 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)   2019     2018     2018     2018     2018  
 ($ in thousands)      
LOANS     
Legacy loans$  8,684,550  $  8,430,388  $  8,123,274  $  7,133,461  $  6,290,383 
Allowance for loan losses (legacy loans)   (59,243)    (56,599)    (55,358)    (51,732)    (47,207)
Legacy loans (net of allowance)   8,625,307     8,373,789     8,067,916     7,081,729     6,243,176 
Loans acquired   3,099,915     3,342,175     3,790,234     4,302,760     4,776,439 
Credit discount   (42,416)    (49,297)    (53,968)    (68,282)    (79,087)
Allowance for loan losses (loans acquired)   (1,312)    (95)    (1,345)    (2,044)    (407)
Loans acquired (net of discount and allowance)   3,056,187     3,292,783     3,734,921     4,232,434     4,696,945 
Net loans$  11,681,494  $  11,666,572  $  11,802,837  $  11,314,163  $  10,940,121 
      
      
      
Loan Coverage Ratios      
Allowance for loan losses to legacy loans 0.68%  0.67%  0.68%  0.73%  0.75%
      
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) 1.41%  1.48%  1.46%  1.63%  1.66%
      
Total allowance and credit coverage (non-GAAP) (1) 0.87%  0.90%  0.93%  1.07%  1.14%
      
(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  Mar 31    Dec 31     Sep 30     Jun 30     Mar 31 
 (Unaudited)   2019     2018     2018     2018     2018  
($ in thousands)     
Allowance for Loan Losses (Legacy Loans)     
 Balance, beginning of quarter $  56,599  $  55,358  $  51,732  $  47,207  $  41,668 
 Loans charged off      
  Credit cards    1,142     1,121     919     1,012     999 
  Other consumer    1,533     2,894     1,321     1,366     1,056 
  Real estate    374     337     4,952     161     455 
  Commercial    1,968     3,480     592     790     1,761 
  Total loans charged off    5,017     7,832     7,784     3,329     4,271 
      
 Recoveries of loans previously charged off      
  Credit cards    240     227     229     286     263 
  Other consumer    300     154     176     133     94 
  Real estate    142     367     210     112     302 
  Commercial    158     167     450     59     69 
  Total recoveries    840     915     1,065     590     728 
  Net loans charged off    4,177     6,917     6,719     2,739     3,543 
 Provision for loan losses    6,821     8,158     10,345     7,264     9,082 
 Balance, end of quarter $  59,243  $  56,599  $  55,358  $  51,732  $  47,207 
      
      
Non-performing assets (1) (2)     
 Non-performing loans      
  Nonaccrual loans $  60,925  $  34,201  $  40,505  $  44,548  $  47,395 
  Loans past due 90 days or more    281     224     281     303     336 
  Total non-performing loans    61,206     34,425     40,786     44,851     47,731 
      
      
 Other non-performing assets      
  Foreclosed assets and other real estate owned (2)   18,952     25,565     22,664     30,503     29,140 
  Other non-performing assets    505     553     524     573     794 
  Total other non-performing assets    19,457     26,118     23,188     31,076     29,934 
  Total non-performing assets $  80,663  $  60,543  $  63,974  $  75,927  $  77,665 
 Performing TDRs (troubled debt restructurings) $  6,297  $  6,369  $  8,413  $  6,367  $  6,459 
      
Ratios (1) (2)     
 Allowance for loan losses to total loans  0.68%  0.67%  0.68%  0.73%  0.75%
 Allowance for loan losses to non-performing loans  97%  164%  136%  115%  99%
 Non-performing loans to total loans  0.70%  0.41%  0.50%  0.63%  0.76%
 Non-performing assets (including performing TDRs)      
  to total assets  0.54%  0.40%  0.44%  0.51%  0.54%
 Non-performing assets to total assets  0.50%  0.37%  0.39%  0.47%  0.50%
 Annualized net charge offs to total loans  0.20%  0.35%  0.36%  0.17%  0.24%
 Annualized net credit card charge offs to      
  total credit card loans  1.92%  1.86%  1.47%  1.60%  1.63%
      
 (1) Excludes all acquired loans, except for their inclusion in total assets.    
 (2) Includes acquired foreclosed assets and acquired other real estate owned.    
      


 Simmons First National Corporation           SFNC 
 Consolidated - Average Balance Sheet and Net Interest Income Analysis        
 For the Quarters Ended            
 (Unaudited)            
  Three Months Ended
Mar 2019 
  Three Months Ended
Dec 2018 
  Three Months Ended
Mar 2018 
 ($ 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 and federal funds sold$  394,462 $  2,154 2.21% $  499,961 $  2,168 1.72% $  338,505 $  1,009 1.21%
Investment securities - taxable   1,880,694    12,989 2.80%    1,815,200    11,828 2.59%    1,618,270    9,599 2.41%
Investment securities - non-taxable (FTE)   590,941    5,834 4.00%    551,188    5,313 3.82%    460,675    4,083 3.59%
Mortgage loans held for sale   17,733    210 4.80%    30,851    372 4.78%    14,775    158 4.34%
Loans, including acquired loans   11,710,075    159,530 5.53%    11,788,838    160,081 5.39%    10,819,324    143,420 5.38%
Total interest earning assets (FTE)   14,593,905    180,717 5.02%    14,686,038    179,762 4.86%    13,251,549    158,269 4.84%
Non-earning assets   1,708,292      1,671,715      1,836,661  
Total assets$  16,302,197   $  16,357,753   $  15,088,210  
            
LIABILITIES AND STOCKHOLDERS' EQUITY          
Interest bearing liabilities:           
Interest bearing transaction and savings accounts$  6,749,032 $  18,430 1.11% $  6,770,217 $  17,489 1.02% $  6,579,295 $  10,755 0.66%
Time deposits   2,781,592    12,320 1.80%    2,752,113    11,273 1.63%    2,003,668    4,842 0.98%
Total interest bearing deposits   9,530,624    30,750 1.31%    9,522,330    28,762 1.20%    8,582,963    15,597 0.74%
Federal funds purchased and securities sold under agreement to repurchase   109,302    136 0.50%    108,687    121 0.44%    120,443    110 0.37%
Other borrowings   1,224,255    6,793 2.25%    1,302,453    7,134 2.17%    1,282,527    5,139 1.63%
Subordinated notes and debentures   353,996    4,411 5.05%    353,906    4,498 5.04%    162,813    1,327 3.31%
Total interest bearing liabilities   11,218,177    42,090 1.52%    11,287,376    40,515 1.42%    10,148,746    22,173 0.89%
Non-interest bearing liabilities:           
Non-interest bearing deposits   2,707,715      2,768,437      2,632,182  
Other liabilities   127,407      90,723      204,230  
Total liabilities   14,053,299      14,146,536      12,985,158  
Stockholders' equity   2,248,898      2,211,217      2,103,052  
Total liabilities and stockholders' equity$  16,302,197   $  16,357,753   $  15,088,210  
Net interest income (FTE)  $  138,627    $  139,247    $  136,096 
Net interest spread (FTE)   3.50%    3.44%    3.95%
Net interest margin (FTE) - quarter-to-date   3.85%    3.76%    4.17%
            
Net interest margin (FTE) - year-to-date   3.85%    3.97%    4.17%
            
Core net interest margin (FTE) - quarter-to-date (1)   3.67%    3.66%    3.82%
Core loan yield (FTE) - quarter-to-date (1)   5.29%    5.25%    4.95%
            
Core net interest margin (FTE) - year-to-date (1)   3.67%    3.72%    3.82%
Core loan yield (FTE) - year-to-date (1)   5.29%    5.11%    4.95%
            
(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  Mar 31    Dec 31     Sep 30     Jun 30     Mar 31  
 (Unaudited)   2019     2018     2018     2018     2018  
($ in thousands, except share data)     
QUARTER-TO-DATE     
Financial Highlights - GAAP     
Net Income$  47,695  $  55,646  $  55,193  $  53,562  $  51,312 
Diluted earnings per share   0.51     0.60     0.59     0.58     0.55 
Return on average assets 1.19%  1.35%  1.37%  1.38%  1.38%
Return on average common equity 8.60%  9.98%  10.06%  10.05%  9.90%
Return on tangible common equity 15.34%  17.96%  18.38%  18.70%  18.77%
Net interest margin (FTE) 3.85%  3.76%  3.98%  3.99%  4.17%
FTE adjustment   1,601     1,466     1,393     1,308     1,130 
Amortization of intangibles   2,641     2,642     2,745     2,785     2,837 
Amortization of intangibles, net of taxes   1,951     1,952     2,027     2,057     2,096 
Average diluted shares outstanding   92,870,813     92,897,105     92,840,851     92,733,140     92,638,765 
Cash dividends declared per common share   0.16     0.15     0.15     0.15     0.15 
Financial Highlights - Core (non-GAAP)     
Core earnings (excludes non-core items) (1)$  49,076  $  56,451  $  56,504  $  54,660  $  52,618 
Diluted core earnings per share (1)   0.53     0.61     0.61     0.59     0.57 
Core net interest margin (FTE) (2) 3.67%  3.66%  3.71%  3.70%  3.82%
Accretable yield on acquired loans   6,660     3,850     10,006     10,113     11,294 
Efficiency ratio (1) 56.76%  51.99%  53.47%  52.70%  53.24%
Core return on average assets (1) 1.22%  1.37%  1.40%  1.41%  1.41%
Core return on average common equity (1) 8.85%  10.13%  10.30%  10.26%  10.15%
Core return on tangible common equity (1) 15.76%  18.21%  18.80%  19.06%  19.23%
YEAR-TO-DATE     
Financial Highlights - GAAP     
Net Income$  47,695  $  215,713  $  160,067  $  104,874  $  51,312 
Diluted earnings per share   0.51     2.32     1.72     1.13     0.55 
Return on average assets 1.19%  1.37%  1.37%  1.38%  1.38%
Return on average common equity 8.60%  10.00%  10.01%  9.98%  9.90%
Return on tangible common equity 15.34%  18.44%  18.61%  18.73%  18.77%
Net interest margin (FTE) 3.85%  3.97%  4.04%  4.08%  4.17%
FTE adjustment   1,601     5,297     3,831     2,438     1,130 
Amortization of intangibles   2,641     11,009     8,367     5,622     2,837 
Amortization of intangibles, net of taxes   1,951     8,132     6,180     4,153     2,096 
Average diluted shares outstanding   92,870,813     92,830,485     92,796,860     92,692,234     92,638,765 
Cash dividends declared per common share   0.16     0.60     0.45     0.30     0.15 
Financial Highlights - Core (non-GAAP)     
Core earnings (excludes non-core items) (1)$  49,076  $  220,233  $  163,782  $  107,278  $  52,618 
Diluted core earnings per share (1)   0.53     2.37     1.76     1.16     0.57 
Core net interest margin (FTE) (2) 3.67%  3.72%  3.74%  3.76%  3.82%
Accretable yield on acquired loans   6,660     35,263     31,413     21,407     11,294 
Efficiency ratio (1) 56.76%  52.85%  53.14%  52.97%  53.24%
Core return on average assets (1) 1.22%  1.40%  1.41%  1.41%  1.41%
Core return on average common equity (1) 8.85%  10.21%  10.24%  10.20%  10.15%
Core return on tangible common equity (1) 15.76%  18.81%  19.03%  19.14%  19.23%
END OF PERIOD     
Book value per share$  24.87  $  24.33  $  23.66  $  23.26  $  22.86 
Tangible book value per share   14.78     14.18     13.48     13.05     12.62 
Shares outstanding   92,568,361     92,347,643     92,291,070     92,281,370     92,242,389 
Full-time equivalent employees   2,602     2,654     2,635     2,659     2,626 
Total number of financial centers   191     191     191     199     200 
      
(1) Core earnings exclude non-core items, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release. 
(2) Excludes accretable yield adjustment on loans, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release. 
      


 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)   2019     2018     2018     2018     2018  
($ in thousands, except per share data)     
QUARTER-TO-DATE     
 Net Income $  47,695  $  55,646  $  55,193  $  53,562  $  51,312 
 Non-core items      
Merger-related costs   1,470     797     804     1,465     1,711 
Early retirement program   355     -      -      -      -  
Branch right-sizing   45     292     970     22     57 
Tax effect (1)   (489)    (284)    (463)    (389)    (462)
Net non-core items   1,381     805     1,311     1,098     1,306 
 Core earnings (non-GAAP) $  49,076  $  56,451  $  56,504  $  54,660  $  52,618 
      
      
 Diluted earnings per share $  0.51  $  0.60  $  0.59  $  0.58  $  0.55 
 Non-core items      
Merger-related costs   0.02     0.01     0.01     0.02     0.02 
Early retirement program   0.01     -      -      -      -  
Branch right-sizing   -      -      0.01     -      -  
Tax effect (1)   (0.01)    -      -      (0.01)    -  
Net non-core items   0.02     0.01     0.02     0.01     0.02 
 Core earnings (non-GAAP) $  0.53  $  0.61  $  0.61  $  0.59  $  0.57 
      
      
YEAR-TO-DATE     
 Net Income $  47,695  $  215,713  $  160,067  $  104,874  $  51,312 
 Non-core items      
Merger-related costs   1,470     4,777     3,980     3,176     1,711 
Early retirement program   355     -      -      -      -  
Branch right-sizing   45     1,341     1,049     79     57 
Tax effect (1)   (489)    (1,598)    (1,314)    (851)    (462)
Net non-core items   1,381     4,520     3,715     2,404     1,306 
 Core earnings (non-GAAP) $  49,076  $  220,233  $  163,782  $  107,278  $  52,618 
      
      
 Diluted earnings per share $  0.51  $  2.32  $  1.72  $  1.13  $  0.55 
 Non-core items      
Merger-related costs   0.02     0.05     0.04     0.04     0.02 
Early retirement program   0.01     -      -      -      -  
Branch right-sizing   -      0.02     0.01     -      -  
Tax effect (1)   (0.01)    (0.02)    (0.01)    (0.01)    -  
Net non-core items   0.02     0.05     0.04     0.03     0.02 
 Core earnings (non-GAAP) $  0.53  $  2.37  $  1.76  $  1.16  $  0.57 
      
      
 (1) Effective tax rate of 26.135%. 
      


Simmons First National Corporation     SFNC 
 Reconciliation Of Non-GAAP Financial Measures - End of Period    
 For the Quarters Ended      
 (Unaudited)  Mar 31    Dec 31     Sept 30     Jun 30     Mar 31  
   2019     2018     2018     2018     2018  
($ in thousands, except per share data)     
      
Calculation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets  
      
Total common stockholders' equity$  2,302,321  $  2,246,434  $  2,183,319  $  2,146,908  $  2,109,051 
Intangible assets:     
  Goodwill   (845,687)    (845,687)    (845,687)    (845,687)    (845,687)
  Other intangible assets   (88,694)    (91,334)    (93,975)    (96,720)    (99,504)
Total intangibles   (934,381)    (937,021)    (939,662)    (942,407)    (945,191)
Tangible common stockholders' equity$  1,367,940  $  1,309,413  $  1,243,657  $  1,204,501  $  1,163,860 
      
      
Total assets$  16,091,639  $  16,543,337  $  16,281,264  $  16,165,533  $  15,597,309 
Intangible assets:     
  Goodwill   (845,687)    (845,687)    (845,687)    (845,687)    (845,687)
  Other intangible assets   (88,694)    (91,334)    (93,975)    (96,720)    (99,504)
Total intangibles   (934,381)    (937,021)    (939,662)    (942,407)    (945,191)
Tangible assets$  15,157,258  $  15,606,316  $  15,341,602  $  15,223,126  $  14,652,118 
      
      
Ratio of equity to assets 14.31%  13.58%  13.41%  13.28%  13.52%
Ratio of tangible common equity to tangible assets 9.02%  8.39%  8.11%  7.91%  7.94%
      
      
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$  42,416  $  49,297  $  53,968  $  68,282  $  79,087 
Allowance for loan losses on acquired loans   1,312     95     1,345     2,044     407 
Total credit discount and ALLL on acquired loans$  43,728  $  49,392  $  55,313  $  70,326  $  79,494 
Total loans acquired$  3,099,915  $  3,342,175  $  3,790,234  $  4,302,760  $  4,776,439 
Discount and ALLL on acquired loans to acquired loans 1.41%  1.48%  1.46%  1.63%  1.66%
      
      
Calculation of Total Allowance and Credit Coverage     
      
Allowance for loan losses$  59,243  $  56,599  $  55,358  $  51,732  $  47,207 
Total credit discount and ALLL on acquired loans   43,728     49,392     55,313     70,326     79,494 
Total allowance and credit discount$  102,971  $  105,991  $  110,671  $  122,058  $  126,701 
Total loans$  11,784,465  $  11,772,563  $  11,913,508  $  11,436,221  $  11,066,822 
Total allowance and credit coverage 0.87%  0.90%  0.93%  1.07%  1.14%
      
      
Calculation of Tangible Book Value per Share     
      
Total common stockholders' equity$  2,302,321  $  2,246,434  $  2,183,319  $  2,146,908  $  2,109,051 
Intangible assets:     
  Goodwill   (845,687)    (845,687)    (845,687)    (845,687)    (845,687)
  Other intangible assets   (88,694)    (91,334)    (93,975)    (96,720)    (99,504)
Total intangibles   (934,381)    (937,021)    (939,662)    (942,407)    (945,191)
Tangible common stockholders' equity$  1,367,940  $  1,309,413  $  1,243,657  $  1,204,501  $  1,163,860 
Shares of common stock outstanding   92,568,361     92,347,643     92,291,070     92,281,370     92,242,389 
Book value per common share$  24.87  $  24.33  $  23.66  $  23.26  $  22.86 
Tangible book value per common share$  14.78  $  14.18  $  13.48  $  13.05  $  12.62 
      
      


Simmons First National Corporation     SFNC 
 Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date    
 For the Quarters Ended      
 (Unaudited)  Mar 31    Dec 31     Sept 30     Jun 30     Mar 31  
   2019     2018     2018     2018     2018  
($ in thousands)     
Calculation of Core Return on Average Assets     
      
Net income$  47,695  $  55,646  $  55,193  $  53,562  $  51,312 
Net non-core items, net of taxes, adjustment   1,381     805     1,311     1,098     1,306 
Core earnings$  49,076  $  56,451  $  56,504  $  54,660  $  52,618 
      
      
Average total assets$  16,302,197  $  16,357,753  $  16,040,884  $  15,580,697  $  15,088,210 
      
      
Return on average assets 1.19%  1.35%  1.37%  1.38%  1.38%
Core return on average assets 1.22%  1.37%  1.40%  1.41%  1.41%
      
Calculation of Return on Tangible Common Equity     
      
Net income$  47,695  $  55,646  $  55,193  $  53,562  $  51,312 
Amortization of intangibles, net of taxes   1,951     1,952     2,027     2,057     2,096 
Total income available to common stockholders$  49,646  $  57,598  $  57,220  $  55,619  $  53,408 
      
      
Net non-core items, net of taxes   1,381     805     1,311     1,098     1,306 
Core earnings   49,076     56,451     56,504     54,660     52,618 
Amortization of intangibles, net of taxes   1,951     1,952     2,027     2,057     2,096 
Total core income available to common stockholders$  51,027  $  58,403  $  58,531  $  56,717  $  54,714 
      
      
Average common stockholders' equity$  2,248,898  $  2,211,217  $  2,176,565  $  2,137,097  $  2,103,052 
Average intangible assets:     
  Goodwill   (845,687)    (845,687)    (845,687)    (845,687)    (844,148)
  Other intangibles   (90,317)    (92,990)    (95,576)    (98,152)    (104,718)
Total average intangibles   (936,004)    (938,677)    (941,263)    (943,839)    (948,866)
Average tangible common stockholders' equity$  1,312,894  $  1,272,540  $  1,235,302  $  1,193,258  $  1,154,186 
      
      
Return on average common equity 8.60%  9.98%  10.06%  10.05%  9.90%
Return on tangible common equity 15.34%  17.96%  18.38%  18.70%  18.77%
Core return on average common equity 8.85%  10.13%  10.30%  10.26%  10.15%
Core return on tangible common equity 15.76%  18.21%  18.80%  19.06%  19.23%
      
Calculation of Efficiency Ratio (1)     
      
Non-interest expense$  101,409  $  95,396  $  100,253  $  98,507  $  98,073 
Non-core non-interest expense adjustment   (1,870)    (1,089)    (1,774)    (1,483)    (1,772)
Other real estate and foreclosure expense adjustment   (599)    (1,300)    (538)    (1,382)    (1,020)
Amortization of intangibles adjustment   (2,641)    (2,642)    (2,745)    (2,785)    (2,837)
Efficiency ratio numerator$  96,299  $  90,365  $  95,196  $  92,857  $  92,444 
      
      
Net-interest income$  137,026  $  137,781  $  142,968  $  136,837  $  134,966 
Non-interest income   33,761     34,588     33,725     38,048     37,535 
Non-core non-interest income adjustment   -      -      -      4     (4)
Fully tax-equivalent adjustment   1,601     1,466     1,393     1,308     1,130 
(Gain) loss on sale of securities   (2,740)    (8)    (54)    7     (6)
Efficiency ratio denominator$  169,648  $  173,827  $  178,032  $  176,204  $  173,621 
      
      
Efficiency ratio (1) 56.76%  51.99%  53.47%  52.70%  53.24%
      
Calculation of Core Net Interest Margin     
      
Net interest income$  137,026  $  137,781  $  142,968  $  136,837  $  134,966 
Fully tax-equivalent adjustment   1,601     1,466     1,393     1,308     1,130 
Fully tax-equivalent net interest income   138,627     139,247     144,361     138,145     136,096 
      
Total accretable yield   (6,660)    (3,850)    (10,006)    (10,113)    (11,294)
Core net interest income$  131,967  $  135,397  $  134,355  $  128,032  $  124,802 
Average earning assets$  14,593,905  $  14,686,038  $  14,373,253  $  13,876,557  $  13,251,549 
      
      
Net interest margin 3.85%  3.76%  3.98%  3.99%  4.17%
                    
Core net interest margin 3.67%  3.66%  3.71%  3.70%  3.82%
      
      
      
      
      
Calculation of Core Loan Yield     
      
Loan interest income$  159,440  $  159,996  $  162,438  $  150,253  $  143,350 
Total accretable yield   (6,660)    (3,850)    (10,006)    (10,113)    (11,294)
Core loan interest income$  152,780  $  156,146  $  152,432  $  140,140  $  132,056 
Average loan balance$  11,710,075  $  11,788,838  $  11,641,843  $  11,159,872  $  10,819,324 
      
      
Core loan yield 5.29%  5.25%  5.19%  5.04%  4.95%
      
      
(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 non-core items. 
      


Simmons First National Corporation     SFNC 
 Reconciliation Of Non-GAAP Financial Measures - Year-to-Date     
 For the Quarters Ended      
 (Unaudited)  Mar 31    Dec 31     Sept 30     Jun 30     Mar 31  
   2019     2018     2018     2018     2018  
($ in thousands)     
Calculation of Core Return on Average Assets     
      
Net income$  47,695  $  215,713  $  160,067  $  104,874  $  51,312 
Net non-core items, net of taxes, adjustment   1,381     4,520     3,715     2,404     1,306 
Core earnings$  49,076  $  220,233  $  163,782  $  107,278  $  52,618 
      
      
Average total assets$  16,302,197  $  15,771,362  $  15,573,762  $  15,334,453  $  15,088,210 
      
      
Return on average assets 1.19%  1.37%  1.37%  1.38%  1.38%
Core return on average assets 1.22%  1.40%  1.41%  1.41%  1.41%
      
      
Calculation of Return on Tangible Common Equity     
      
Net income$  47,695  $  215,713  $  160,067  $  104,874  $  51,312 
Amortization of intangibles, net of taxes   1,951     8,132     6,180     4,153     2,096 
Total income available to common stockholders$  49,646  $  223,845  $  166,247  $  109,027  $  53,408 
      
      
Net non-core items, net of taxes   1,381     4,520     3,715     2,404     1,306 
Core earnings   49,076     220,233     163,782     107,278     52,618 
Amortization of intangibles, net of taxes   1,951     8,132     6,180     4,153     2,096 
Total core income available to common stockholders$  51,027  $  228,365  $  169,962  $  111,431  $  54,714 
      
      
Average common stockholders' equity$  2,248,898  $  2,157,097  $  2,138,818  $  2,120,075  $  2,103,052 
Average intangible assets:     
  Goodwill   (845,688)    (845,308)    (845,180)    (844,917)    (844,148)
  Other intangibles   (90,316)    (97,820)    (99,448)    (101,435)    (104,718)
Total average intangibles   (936,004)    (943,128)    (944,628)    (946,352)    (948,866)
Average tangible common stockholders' equity$  1,312,894  $  1,213,969  $  1,194,190  $  1,173,723  $  1,154,186 
      
      
Return on average common equity 8.60%  10.00%  10.01%  9.98%  9.90%
Return on tangible common equity 15.34%  18.44%  18.61%  18.73%  18.77%
Core return on average common equity 8.85%  10.21%  10.24%  10.20%  10.15%
Core return on tangible common equity 15.76%  18.81%  19.03%  19.14%  19.23%
      
      
Calculation of Efficiency Ratio (1)     
      
Non-interest expense$  101,409  $  392,229  $  296,833  $  196,580  $  98,073 
Non-core non-interest expense adjustment   (1,870)    (6,118)    (5,029)    (3,255)    (1,772)
Other real estate and foreclosure expense adjustment   (599)    (4,240)    (2,940)    (2,402)    (1,020)
Amortization of intangibles adjustment   (2,641)    (11,009)    (8,367)    (5,622)    (2,837)
Efficiency ratio numerator$  96,299  $  370,862  $  280,497  $  185,301  $  92,444 
      
      
Net-interest income$  137,026  $  552,552  $  414,771  $  271,803  $  134,966 
Non-interest income   33,761     143,896     109,308     75,583     37,535 
Non-core non-interest income adjustment   -      -      -      -      (4)
Fully tax-equivalent adjustment   1,601     5,297     3,831     2,438     1,130 
(Gain) loss on sale of securities   (2,740)    (61)    (53)    1     (6)
Efficiency ratio denominator$  169,648  $  701,684  $  527,857  $  349,825  $  173,621 
      
      
Efficiency ratio (1) 56.76%  52.85%  53.14%  52.97%  53.24%
      
      
Calculation of Core Net Interest Margin     
      
Net interest income$  137,026  $  552,552  $  414,771  $  271,803  $  134,966 
Fully tax-equivalent adjustment   1,601     5,297     3,831     2,438     1,130 
Fully tax-equivalent net interest income   138,627     557,849     418,602     274,241     136,096 
      
Total accretable yield   (6,660)    (35,263)    (31,413)    (21,407)    (11,294)
Core net interest income$  131,967  $  522,586  $  387,189  $  252,834  $  124,802 
Average earning assets$  14,593,905  $  14,036,614  $  13,837,639  $  13,564,056  $  13,251,549 
      
      
Net interest margin 3.85%  3.97%  4.04%  4.08%  4.17%
Core net interest margin 3.67%  3.72%  3.74%  3.76%  3.82%
      
Calculation of Core Loan Yield     
      
Loan interest income$  159,440  $  616,037  $  456,041  $  293,603  $  143,350 
Total accretable yield   (6,660)    (35,263)    (31,413)    (21,407)    (11,294)
Core loan interest income$  152,780  $  580,774  $  424,628  $  272,196  $  132,056 
Average loan balance$  11,710,075  $  11,355,890  $  11,209,992  $  10,989,600  $  10,819,324 
      
      
Core loan yield 5.29%  5.11%  5.06%  4.99%  4.95%
      
      
(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 non-core items.