PINE BLUFF, Ark., Jan. 23, 2020 (GLOBE NEWSWIRE) -- Simmons First National Corporation (NASDAQ: SFNC) today announced net income of $237.8 million for the year ended December 31, 2019, compared to $215.7 million for 2018, an increase of $22.1 million, or 10.3%. Diluted earnings per share were $2.41 for 2019, an increase of $0.09, or 3.9%, compared to prior year. Included in the 2019 results were $31.7 million in net after-tax merger-related, early retirement program and branch right-sizing costs. Excluding the impact of these items, core earnings were $269.6 million for the year ended December 31, 2019, compared to $220.2 million for 2018, an increase of $49.3 million, or 22.4%. Core diluted earnings per share were $2.73, an increase of $0.36, or 15.2%, from the same period in 2018.
Fourth quarter 2019 net income was $52.7 million, or $0.49 diluted earnings per share, compared to $55.6 million, or $0.60 diluted earnings per share, for the same period in 2018. Excluding $18.4 million in net after-tax merger-related and branch right-sizing costs, fourth quarter 2019 core earnings were $71.1 million, an increase of $14.6 million compared to the same period last year. Core diluted earnings per share were $0.66, an increase of $0.05, or 8.2%, from the same period in 2018.
“We are very proud of our results for 2019,” said George A. Makris, Jr., chairman and CEO of Simmons First National Corporation. “Not only did we produce excellent financial results, we welcomed new associates from Reliance Bank in St. Louis and Landmark Bank in Columbia, MO to the Simmons family.
“From time to time we tend to be focused more on specific metrics within our financial performance and lose sight of the bigger picture results. In retrospect, our performance in 2019 was remarkable. We achieved a return on assets of 1.33% and a core return on assets of 1.51%, which exceeded our target of 1.50%. We produced a 9.9% return on common equity with an 18.0% return on tangible common equity and a 20.3% core return on tangible common equity. We operated at an efficiency ratio of 50.3%, which is within our target range of 50-55%. Our construction and development concentration went from 105% at the end of the second quarter to 98% at year-end while our commercial real estate concentration was lowered from 333% at the end of the second quarter to 293% at year-end – both ratios now below the regulatory guidelines. And importantly, our book value per share rose 8.1% while our tangible book value per share rose 12.1% during a time when we completed two acquisitions – Reliance Bank in St. Louis and Landmark Bank in Columbia, MO – which added $4.9 billion in assets and we repurchased $10 million of our stock.”
Makris continued, “During 2020, we will continue to implement our technology initiatives, including the expansion of our digital offerings, and adjust our business strategy to take advantage of our successful growth over the past few years. I am extremely optimistic about the future of Simmons Bank.”
| Selected Highlights: | YTD 2019 | YTD 2018 | 4th Qtr 2019 | 4th Qtr 2018 | ||||
| Net income | $237.8 million | $215.7 million | $52.7 million | $55.6 million | ||||
| Diluted earnings per share | $2.41 | $2.32 | $0.49 | $0.60 | ||||
| Return on avg assets | 1.33% | 1.37% | 1.04% | 1.35% | ||||
| Return on avg common equity | 9.93% | 10.00% | 8.01% | 9.98% | ||||
| Return on tangible common equity (1) | 17.99% | 18.44% | 14.62% | 17.96% | ||||
| Core earnings (2) | $269.6 million | $220.2 million | $71.1 million | $56.5 million | ||||
| Core diluted earnings per share (2) | $2.73 | $2.37 | $0.66 | $0.61 | ||||
| Core return on avg assets (2) | 1.51% | 1.40% | 1.41% | 1.37% | ||||
| Core return on avg common equity (2) | 11.25% | 10.21% | 10.80% | 10.13% | ||||
| Core return on tangible common equity (1)(2) | 20.31% | 18.81% | 19.50% | 18.21% | ||||
| Efficiency ratio (3) | 50.33% | 52.85% | 52.63% | 51.99% | ||||
- Return on tangible common equity excludes goodwill and other intangible assets, and is a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
- Core earnings excludes non-core items, and is a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
- Efficiency ratio is noninterest expense before foreclosed property expense, amortization of intangibles as a percent of net interest income (fully taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and non-core items, and is a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
Loans
| ($ in billions) | 4th Qtr 2019 | 3rd Qtr 2019 | 4th Qtr 2018 | |||
| Total loans | $14.4 | $13.0 | $11.7 | |||
| Legacy loans (excludes loans acquired) | $9.6 | $9.6 | $8.4 | |||
| Loans acquired | $4.8 | $3.4 | $3.3 | |||
Total loans, including those acquired, were $14.4 billion at December 31, 2019, an increase of $2.7 billion, or 23.0%, compared to December 31, 2018, primarily due to The Landrum Company and Reliance Bank mergers completed during the fourth and second quarters of 2019, respectively. On a linked-quarter basis (December 31, 2019 compared to September 30, 2019), total loans increased $1.4 billion, or 10.9%, from the fourth quarter merger. The increase was partially offset by the reclassification of $260 million in loan balances associated with the branches held for sale in south Texas.
Deposits
| ($ in billions) | 4th Qtr 2019 | 3rd Qtr 2019 | 4th Qtr 2018 | |||
| Total deposits | $16.1 | $13.5 | $12.4 | |||
| Non-time deposits | $12.8 | $10.4 | $9.5 | |||
| Time deposits | $3.3 | $3.1 | $2.9 | |||
Total deposits were $16.1 billion at December 31, 2019, an increase of $3.7 billion, or 29.9%, since December 31, 2018, primarily due to the 2019 mergers partially offset by the reclassification of $160 million of deposits associated with the branches held for sale.
Net Interest Income
| 4th Qtr 2019 | 3rd Qtr 2019 | 2nd Qtr 2019 | 1st Qtr 2019 | 4th Qtr 2018 | ||||||
| Loan yield (1) | 5.43 | % | 5.47 | % | 5.58 | % | 5.53 | % | 5.39 | % |
| Core loan yield (1) (2) | 5.00 | % | 5.19 | % | 5.26 | % | 5.29 | % | 5.25 | % |
| Security yield (1) | 2.67 | % | 2.83 | % | 3.02 | % | 3.09 | % | 2.87 | % |
| Cost of interest bearing deposits | 1.22 | % | 1.40 | % | 1.37 | % | 1.31 | % | 1.20 | % |
| Cost of deposits (3) | 0.94 | % | 1.09 | % | 1.07 | % | 1.02 | % | 0.93 | % |
| Cost of borrowed funds | 2.30 | % | 2.52 | % | 2.50 | % | 2.73 | % | 2.64 | % |
| Net interest margin (1) | 3.76 | % | 3.81 | % | 3.92 | % | 3.85 | % | 3.76 | % |
| Core net interest margin (1) (2) | 3.43 | % | 3.58 | % | 3.66 | % | 3.67 | % | 3.66 | % |
- Fully tax equivalent using an effective tax rate of 26.135%.
- Core loan yield and core net interest margin exclude accretion, and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
- Includes non-interest bearing deposits.
The Company’s net interest income for the fourth quarter of 2019 was $167.7 million, an increase of $29.9 million, or 21.7%, from the same period of 2018. Included in interest income was the yield accretion recognized on loans acquired of $15.1 million and $3.9 million for the fourth quarters of 2019 and 2018, respectively. Of this quarter’s yield accretion, 52% was accretable credit mark related and 48% was interest mark related.
Net interest margin (FTE) was 3.76% for the quarter ended December 31, 2019, while core net interest margin, which excludes the accretion, was 3.43% for the same period.
Non-Interest Income
Non-interest income for 2019 was $201.5 million, an increase of $57.6 million compared to the previous year. The increase was primarily due to the gain on sale of the Visa Inc. class B common stock of $42.9 million that was completed during the third quarter 2019. Additionally, during 2019 the Company was focused on rebalancing its investment portfolio and consequently recognized additional gains on the sale of securities.
Non-interest income for the fourth quarter of 2019 was $45.0 million, an increase of $10.4 million compared to the same period in the previous year. The increase was due to additional income within most non-interest income categories as a result of The Landrum Company and Reliance Bank mergers completed during 2019.
| Selected Non-Interest Income Items ($ in millions) | YTD 2019 | YTD 2018 | 4th Qtr 2019 | 4th Qtr 2018 | ||||
| Service charges on deposit accounts | $44.8 | $42.5 | $13.3 | $11.3 | ||||
| Mortgage lending income | $15.0 | $9.2 | $4.0 | $1.5 | ||||
| SBA lending income | $2.7 | $1.8 | $0.3 | $0.2 | ||||
| Debit and credit card fees | $29.3 | $32.3 | $8.9 | $6.5 | ||||
| Gain on sale of securities | $13.3 | $0.1 | $0.4 | - | ||||
| Other income | $58.5 | $19.9 | $6.4 | $5.7 | ||||
Non-Interest Expense
Non-interest expense for 2019 was $461.1 million, an increase of $68.9 million compared to the previous year. Included in 2019 were $43.0 million of pre-tax non-core items, that mostly consisted of merger-related costs. Excluding these expenses, core non-interest expense was $418.1 million, an increase of $32.0 million compared to 2018 core non-interest expense. The increase was primarily due to the incremental costs associated with the 2019 mergers and the Next Generation Banking (“NGB”) technology initiative. The Company recognized an additional $11.4 million in software and technology expense related to its NGB initiative in 2019.
Non-interest expense for the fourth quarter of 2019 was $142.1 million, an increase of $46.7 million compared to the fourth quarter of 2018. Included in this quarter were $24.9 million of pre-tax non-core items. Excluding these expenses, core non-interest expense was $117.2 million for the fourth quarter of 2019, an increase of $22.9 million compared to the same period in 2018, primarily the result of the 2019 mergers and additional software and technology costs related to the NGB initiative.
The efficiency ratio for 2019 was 50.33% compared to 52.85% for 2018.
| Selected Non-Interest Expense Items ($ in millions) | YTD 2019 | YTD 2018 | 4th Qtr 2019 | 4th Qtr 2018 | ||||
| Salaries and employee benefits | $227.8 | $216.7 | $63.2 | $49.2 | ||||
| Merger related costs | $36.4 | $4.8 | $24.8 | $0.8 | ||||
| Other operating expenses | $138.9 | $111.6 | $38.0 | $30.2 | ||||
| Core salaries and employee benefits(1) | $224.3 | $216.6 | $63.2 | $49.1 | ||||
| Core merger related costs(1) | - | - | - | - | ||||
| Core other operating expenses(1) | $135.9 | $110.7 | $38.0 | $30.3 | ||||
(1) Core figures exclude non-core items, and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
Asset Quality
| 4th Qtr 2019 | 3rd Qtr 2019 | 2nd Qtr 2019 | 1st Qtr 2019 | 4th Qtr 2018 | ||||||
| Allowance for loan losses to total loans | 0.70 | % | 0.68 | % | 0.68 | % | 0.68 | % | 0.67 | % |
| Allowance for loan losses to non-performing loans | 95 | % | 91 | % | 101 | % | 97 | % | 164 | % |
| Non-performing loans to total loans | 0.74 | % | 0.76 | % | 0.67 | % | 0.70 | % | 0.41 | % |
| Net charge-off ratio (annualized) | 0.12 | % | 0.78 | % | 0.14 | % | 0.20 | % | 0.35 | % |
| Net charge-off ratio YTD (annualized) | 0.31 | % | 0.38 | % | 0.17 | % | 0.20 | % | 0.28 | % |
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 December 31, 2019, the allowance for loan losses for legacy loans was $67.8 million. The allowance for loan losses for loans acquired was $444,000 and the acquired loan discount mark was $87.3 million. The allowance for loan losses and discount mark provides a total of $155.5 million of coverage, which equates to a total coverage ratio of 1.07% of gross loans. The ratio of discount mark and related allowance to loans acquired was 1.80%.
Provision for loan losses for 2019 was $43.2 million, an increase of $5.1 million from 2018. Provision for loan losses for the fourth quarter 2019 was $4.9 million, a decrease of $4.7 million when compared to the same period of 2018.
Foreclosed Assets and Other Real Estate Owned
At December 31, 2019, foreclosed assets and other real estate owned were $19.1 million, a decrease of $6.4 million, or 25.2%, compared to year end 2018. The composition of these assets is divided into three types:
| ($ in millions) | 4th Qtr 2019 | 3rd Qtr 2019 | 2nd Qtr 2019 | 1st Qtr 2019 | 4th Qtr 2018 | |||||
| Closed bank branches, branch sites & associate relocation | $5.7 | $5.9 | $6.5 | $7.6 | $8.0 | |||||
| Foreclosed assets - acquired | $10.3 | $10.1 | $13.3 | $6.2 | $11.5 | |||||
| Foreclosed assets – legacy | $3.1 | $3.6 | $5.0 | $5.2 | $6.1 | |||||
Capital
| 4th Qtr 2019 | 3rd Qtr 2019 | 2nd Qtr 2019 | 1st Qtr 2019 | 4th Qtr 2018 | ||||||
| Stockholders’ equity to total assets | 14.1 | % | 14.3 | % | 13.8 | % | 14.3 | % | 13.6 | % |
| Tangible common equity to tangible assets | 9.0 | % | 9.1 | % | 8.5 | % | 9.0 | % | 8.4 | % |
| Regulatory tier 1 leverage ratio | 9.6 | % | 9.1 | % | 8.9 | % | 9.1 | % | 8.8 | % |
| Regulatory total risk-based capital ratio | 13.6 | % | 13.2 | % | 12.7 | % | 13.6 | % | 13.3 | % |
At December 31, 2019, common stockholders' equity was $3.0 billion. Book value per share was $26.30 and tangible book value per share was $15.89 at December 31, 2019, compared to $24.33 and $14.18, respectively, at December 31, 2018. The ratio of tangible common equity to tangible assets was 9.0% at December 31, 2019, compared to 8.4% from the previous year-end.
During the fourth quarter of 2019, the Company repurchased approximately 400,000 shares at an average price of $25.97.
Management Changes
The Company also announced today that Marty Casteel, a Company director and senior executive vice president, as well as the chairman, president, and chief executive officer of the Company’s subsidiary bank, Simmons Bank, will retire from his employment with the Company and Simmons Bank, effective March 31, 2020. Casteel will continue to serve as a director of both the Company and Simmons Bank. “For over thirty years, Marty has been a critical component of Simmons’ success,” said Makris. “With deep knowledge, experience, and integrity, Marty has provided incredible leadership to our organization and masterfully overseen its recent transformation through acquisitions with great care and compassion for all involved. I am personally extremely grateful for his presence and counsel during my tenure with this company, and I am thankful Marty has agreed to remain affiliated with it as a director. On behalf of everyone at Simmons, I’d like to congratulate Marty on a job very well done and wish him the best as he begins his next chapter.” Upon Casteel’s retirement, Makris will assume the role of chairman, president, and chief executive officer of Simmons Bank, in addition to his current role as chairman and chief executive officer of the Company.
In addition, the Company announced that Patrick Burrow, executive vice president and general counsel, will retire, effective March 31, 2020. “As the company’s first general counsel,” Makris noted, “and prior to that, its longtime outside counsel, Pat has been a steady source of legal advice for our organization and its associates. He has played a significant role in many of the company’s strategic transactions, and I am thankful for his service to Simmons. As with Marty, we wish him the best and congratulate him on his retirement.”
Current Expected Credit Losses (“CECL”)
In 2016, new accounting guidance was issued that introduced a new credit loss methodology, the CECL methodology, which requires earlier recognition of credit losses, while also providing additional transparency about credit risk.
The CECL methodology replaces the current incurred loss methodology with a lifetime “expected credit loss” measurement objective for loans, held-to-maturity debt securities and other receivables measured at amortized cost at the time the financial asset is originated or acquired. This standard requires the consideration of historical loss experience and current conditions adjusted for reasonable and supportable economic forecasts. The Company has elected to utilize a blended macroeconomic scenario using a one-year forecast horizon with a subsequent reversion to historical loss experience. Within the life cycle of a loan or other financial asset, this new guidance will generally result in the earlier recognition of the provision for credit losses and the related allowance for credit losses than current practice. The CECL guidance was effective for the Company as of January 1, 2020.
The CECL methodology represents a significant change from existing guidance and is expected to result in material changes to the Company’s accounting for financial instruments. The Company is continuing to evaluate the effect that the new CECL methodology will have on its consolidated financial statements and related disclosures. Based on additional analysis performed during the fourth quarter of 2019, the Company currently estimates that the allowance for credit losses will be approximately 1.35% to 1.45% of total loans upon adoption. This estimate is based upon the Company’s analysis of current conditions, assumptions and economic forecasts at this point in time. The estimate is subject to change based on continuing review and challenge of the models, methodologies and judgements. The impact will be reflected as an adjustment to beginning retained earnings, net of income taxes. Federal banking regulatory agencies have provided relief for an initial regulatory capital decrease at adoption by allowing the impact to be phased-in over three years on a straight-line basis. The adoption of CECL in 2020 could also impact the Company’s ongoing earnings, perhaps materially.
Simmons First National Corporation
Simmons First National Corporation is a financial holding company headquartered in Pine Bluff, Arkansas, with total consolidated assets of approximately $21.3 billion as of December 31, 2019, conducting financial operations in Arkansas, Colorado, Illinois, 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. CST today, Thursday, January 23, 2020. 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 9397974. 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 adjust GAAP performance measures to, among other things, include the tax benefit associated with revenue items that are tax-exempt, as well as exclude from income available to common shareholders certain expenses related to significant non-core activities, including merger-related expenses, expenses related to the Company’s early retirement program, and branch right-sizing expenses. In addition, the Company also presents certain figures based on tangible common stockholders’ equity and tangible book value, which exclude goodwill and other intangible assets. The Company’s management believes that these non-GAAP financial measures are useful to investors because they present the results of the Company’s ongoing operations without the effect of mergers or other items not central to the Company’s ongoing business, as well as normalizing for tax effects. Management, therefore, 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, share repurchase program, the Company’s ability to recruit and retain key employees, the adequacy of the allowance for loan losses, and the effect of certain new accounting standards (including, without limitation, the CECL methodology and its anticipated effect on the provision and allowance for credit losses) on the Company’s 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, the assumptions, forecasts, models, and methodology used to calculate the expected impact of CECL on the Company’s financial statements, the Company’s ability to manage and successfully integrate its mergers and acquisitions, cyber threats, attacks or events, reliance on third parties for key services and other factors, many of which are beyond the control of the Company, 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 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | ||||||||||
| (Unaudited) | 2019 | 2019 | 2019 | 2019 | 2018 | ||||||||||
| ($ in thousands) | |||||||||||||||
| ASSETS | |||||||||||||||
| Cash and non-interest bearing balances due from banks | $ | 277,208 | $ | 161,440 | $ | 145,491 | $ | 151,112 | $ | 171,792 | |||||
| Interest bearing balances due from banks and federal funds sold | 719,415 | 368,530 | 509,765 | 340,049 | 661,666 | ||||||||||
| Cash and cash equivalents | 996,623 | 529,970 | 655,256 | 491,161 | 833,458 | ||||||||||
| Interest bearing balances due from banks - time | 4,554 | 5,041 | 5,041 | 4,684 | 4,934 | ||||||||||
| Investment securities - held-to-maturity | 40,927 | 42,237 | 47,455 | 61,435 | 289,194 | ||||||||||
| Investment securities - available-for-sale | 3,453,338 | 2,356,134 | 2,342,387 | 2,240,111 | 2,151,752 | ||||||||||
| Mortgage loans held for sale | 58,102 | 50,099 | 34,999 | 18,480 | 26,799 | ||||||||||
| Other assets held for sale | 260,332 | 383 | 397 | 397 | 1,790 | ||||||||||
| Loans: | |||||||||||||||
| Legacy loans | 9,630,076 | 9,643,365 | 9,262,497 | 8,684,550 | 8,430,388 | ||||||||||
| Allowance for loan losses | (67,800 | ) | (65,993 | ) | (63,067 | ) | (59,243 | ) | (56,599 | ) | |||||
| Loans acquired, net of discount and allowance | 4,795,184 | 3,359,587 | 3,864,516 | 3,056,187 | 3,292,783 | ||||||||||
| Net loans | 14,357,460 | 12,936,959 | 13,063,946 | 11,681,494 | 11,666,572 | ||||||||||
| Premises and equipment | 492,384 | 378,678 | 370,551 | 333,740 | 295,060 | ||||||||||
| Foreclosed assets and other real estate owned | 19,121 | 19,576 | 24,761 | 18,952 | 25,565 | ||||||||||
| Interest receivable | 62,707 | 53,966 | 54,781 | 51,796 | 49,938 | ||||||||||
| Bank owned life insurance | 254,152 | 234,655 | 233,345 | 192,736 | 193,170 | ||||||||||
| Goodwill | 1,055,520 | 926,648 | 926,450 | 845,687 | 845,687 | ||||||||||
| Other intangible assets | 127,340 | 101,149 | 104,096 | 88,694 | 91,334 | ||||||||||
| Other assets | 76,583 | 123,016 | 73,970 | 62,272 | 68,084 | ||||||||||
| Total assets | $ | 21,259,143 | $ | 17,758,511 | $ | 17,937,435 | $ | 16,091,639 | $ | 16,543,337 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||
| Deposits: | |||||||||||||||
| Non-interest bearing transaction accounts | $ | 3,741,093 | $ | 3,044,330 | $ | 2,954,032 | $ | 2,674,034 | $ | 2,672,405 | |||||
| Interest bearing transaction accounts and savings deposits | 9,090,878 | 7,337,571 | 7,258,005 | 6,666,823 | 6,830,191 | ||||||||||
| Time deposits | 3,276,969 | 3,086,108 | 3,304,176 | 2,648,674 | 2,896,156 | ||||||||||
| Total deposits | 16,108,940 | 13,468,009 | 13,516,213 | 11,989,531 | 12,398,752 | ||||||||||
| Federal funds purchased and securities sold | |||||||||||||||
| under agreements to repurchase | 150,145 | 116,536 | 130,470 | 120,213 | 95,792 | ||||||||||
| Other borrowings | 1,297,599 | 1,098,395 | 1,324,094 | 1,169,989 | 1,345,450 | ||||||||||
| Subordinated notes and debentures | 388,260 | 354,223 | 354,132 | 354,041 | 353,950 | ||||||||||
| Other liabilities held for sale | 159,853 | - | 162 | 162 | 162 | ||||||||||
| Accrued interest and other liabilities | 165,409 | 174,277 | 142,851 | 155,382 | 102,797 | ||||||||||
| Total liabilities | 18,270,206 | 15,211,440 | 15,467,922 | 13,789,318 | 14,296,903 | ||||||||||
| Stockholders' equity: | |||||||||||||||
| Preferred stock | 767 | - | - | - | - | ||||||||||
| Common stock | 1,136 | 966 | 966 | 926 | 923 | ||||||||||
| Surplus | 2,117,282 | 1,708,058 | 1,705,262 | 1,599,566 | 1,597,944 | ||||||||||
| Undivided profits | 848,861 | 814,338 | 747,969 | 707,829 | 674,941 | ||||||||||
| Accumulated other comprehensive income (loss): | |||||||||||||||
| Unrealized accretion (depreciation) on AFS securities | 20,891 | 23,709 | 15,316 | (6,000 | ) | (27,374 | ) | ||||||||
| Total stockholders' equity | 2,988,937 | 2,547,071 | 2,469,513 | 2,302,321 | 2,246,434 | ||||||||||
| Total liabilities and stockholders' equity | $ | 21,259,143 | $ | 17,758,511 | $ | 17,937,435 | $ | 16,091,639 | $ | 16,543,337 | |||||
| Simmons First National Corporation | SFNC | |||||||||||
| Consolidated Statements of Income - Quarter-to-Date | ||||||||||||
| For the Quarters Ended | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | |||||||
| (Unaudited) | 2019 | 2019 | 2019 | 2019 | 2018 | |||||||
| ($ in thousands, except per share data) | ||||||||||||
| INTEREST INCOME | ||||||||||||
| Loans | $ | 193,402 | $ | 179,971 | $ | 178,122 | $ | 159,440 | $ | 159,996 | ||
| Interest bearing balances due from banks and federal funds sold | 2,625 | 1,586 | 1,121 | 2,154 | 2,168 | |||||||
| Investment securities | 17,625 | 15,367 | 16,594 | 17,312 | 15,760 | |||||||
| Mortgage loans held for sale | 402 | 382 | 332 | 210 | 372 | |||||||
| TOTAL INTEREST INCOME | 214,054 | 197,306 | 196,169 | 179,116 | 178,296 | |||||||
| INTEREST EXPENSE | ||||||||||||
| Time deposits | 16,198 | 15,573 | 14,606 | 12,320 | 11,273 | |||||||
| Other deposits | 20,331 | 21,363 | 20,190 | 18,430 | 17,489 | |||||||
| Federal funds purchased and securities | ||||||||||||
| sold under agreements to repurchase | 368 | 249 | 257 | 136 | 121 | |||||||
| Other borrowings | 4,615 | 5,381 | 6,219 | 6,793 | 7,134 | |||||||
| Subordinated notes and debentures | 4,813 | 4,576 | 4,541 | 4,411 | 4,498 | |||||||
| TOTAL INTEREST EXPENSE | 46,325 | 47,142 | 45,813 | 42,090 | 40,515 | |||||||
| NET INTEREST INCOME | 167,729 | 150,164 | 150,356 | 137,026 | 137,781 | |||||||
| Provision for loan losses | 4,903 | 21,973 | 7,079 | 9,285 | 9,620 | |||||||
| NET INTEREST INCOME AFTER PROVISION | ||||||||||||
| FOR LOAN LOSSES | 162,826 | 128,191 | 143,277 | 127,741 | 128,161 | |||||||
| NON-INTEREST INCOME | ||||||||||||
| Trust income | 7,430 | 6,108 | 5,794 | 5,708 | 5,980 | |||||||
| Service charges on deposit accounts | 13,332 | 10,825 | 10,557 | 10,068 | 11,263 | |||||||
| Other service charges and fees | 1,915 | 1,308 | 1,312 | 1,289 | 1,501 | |||||||
| Mortgage lending income | 4,029 | 4,509 | 3,656 | 2,823 | 1,457 | |||||||
| SBA lending income | 321 | 956 | 895 | 497 | 186 | |||||||
| Investment banking income | 822 | 513 | 360 | 618 | 829 | |||||||
| Debit and credit card fees | 8,920 | 7,059 | 7,212 | 6,098 | 6,547 | |||||||
| Bank owned life insurance income | 1,411 | 1,302 | 1,260 | 795 | 1,105 | |||||||
| Gain on sale of securities, net | 377 | 7,374 | 2,823 | 2,740 | 8 | |||||||
| Other income | 6,410 | 43,821 | 5,137 | 3,125 | 5,712 | |||||||
| TOTAL NON-INTEREST INCOME | 44,967 | 83,775 | 39,006 | 33,761 | 34,588 | |||||||
| NON-INTEREST EXPENSE | ||||||||||||
| Salaries and employee benefits | 63,235 | 52,065 | 56,128 | 56,367 | 49,193 | |||||||
| Occupancy expense, net | 9,272 | 8,342 | 6,919 | 7,475 | 7,016 | |||||||
| Furniture and equipment expense | 5,758 | 4,898 | 4,206 | 3,358 | 4,139 | |||||||
| Other real estate and foreclosure expense | 1,089 | 1,125 | 591 | 637 | 1,540 | |||||||
| Deposit insurance | (134 | ) | - | 2,510 | 2,040 | 2,489 | ||||||
| Merger-related costs | 24,831 | 2,556 | 7,522 | 1,470 | 797 | |||||||
| Other operating expenses | 38,044 | 37,879 | 32,867 | 30,062 | 30,222 | |||||||
| TOTAL NON-INTEREST EXPENSE | 142,095 | 106,865 | 110,743 | 101,409 | 95,396 | |||||||
| NET INCOME BEFORE INCOME TAXES | 65,698 | 105,101 | 71,540 | 60,093 | 67,353 | |||||||
| Provision for income taxes | 12,976 | 23,275 | 15,616 | 12,398 | 11,707 | |||||||
| NET INCOME | 52,722 | 81,826 | 55,924 | 47,695 | 55,646 | |||||||
| Preferred stock dividends | - | - | 326 | - | - | |||||||
| NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 52,722 | $ | 81,826 | $ | 55,598 | $ | 47,695 | $ | 55,646 | ||
| BASIC EARNINGS PER SHARE | $ | 0.49 | $ | 0.85 | $ | 0.58 | $ | 0.52 | $ | 0.60 | ||
| DILUTED EARNINGS PER SHARE | $ | 0.49 | $ | 0.84 | $ | 0.58 | $ | 0.51 | $ | 0.60 | ||
| Simmons First National Corporation | SFNC | ||||||||||||||
| Consolidated Risk-Based Capital | |||||||||||||||
| For the Quarters Ended | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | ||||||||||
| (Unaudited) | 2019 | 2019 | 2019 | 2019 | 2018 | ||||||||||
| ($ in thousands) | |||||||||||||||
| Tier 1 capital | |||||||||||||||
| Stockholders' equity | $ | 2,988,937 | $ | 2,547,071 | $ | 2,469,513 | $ | 2,302,321 | $ | 2,246,434 | |||||
| Disallowed intangible assets, net of deferred tax | (1,155,405 | ) | (1,013,309 | ) | (1,001,676 | ) | (910,122 | ) | (912,428 | ) | |||||
| Unrealized (gain) loss on AFS securities | (20,891 | ) | (23,709 | ) | (15,316 | ) | 6,000 | 27,374 | |||||||
| Total Tier 1 capital | 1,812,641 | 1,510,053 | 1,452,521 | 1,398,199 | 1,361,380 | ||||||||||
| Tier 2 capital | |||||||||||||||
| Qualifying unrealized gain on AFS equity securities | - | - | - | - | - | ||||||||||
| Trust preferred securities and subordinated debt | 388,260 | 354,223 | 354,132 | 354,041 | 353,950 | ||||||||||
| Qualifying allowance for loan losses and | |||||||||||||||
| reserve for unfunded commitments | 76,644 | 74,455 | 72,044 | 67,771 | 63,608 | ||||||||||
| Total Tier 2 capital | 464,904 | 428,678 | 426,176 | 421,812 | 417,558 | ||||||||||
| Total risk-based capital | $ | 2,277,545 | $ | 1,938,731 | $ | 1,878,697 | $ | 1,820,011 | $ | 1,778,938 | |||||
| Risk weighted assets | $ | 16,731,384 | $ | 14,725,571 | $ | 14,825,253 | $ | 13,364,636 | $ | 13,326,832 | |||||
| Adjusted average assets for leverage ratio | $ | 18,848,103 | $ | 16,681,527 | $ | 16,382,520 | $ | 15,423,961 | $ | 15,512,042 | |||||
| Ratios at end of quarter | |||||||||||||||
| Equity to assets | 14.06 | % | 14.34 | % | 13.77 | % | 14.31 | % | 13.58 | % | |||||
| Tangible common equity to tangible assets (1) | 8.99 | % | 9.08 | % | 8.51 | % | 9.02 | % | 8.39 | % | |||||
| Common equity Tier 1 ratio (CET1) | 10.83 | % | 10.25 | % | 9.80 | % | 10.46 | % | 10.22 | % | |||||
| Tier 1 leverage ratio | 9.62 | % | 9.05 | % | 8.87 | % | 9.07 | % | 8.78 | % | |||||
| Tier 1 risk-based capital ratio | 10.83 | % | 10.25 | % | 9.80 | % | 10.46 | % | 10.22 | % | |||||
| Total risk-based capital ratio | 13.61 | % | 13.17 | % | 12.67 | % | 13.62 | % | 13.35 | % | |||||
| (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 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | ||||||
| (Unaudited) | 2019 | 2019 | 2019 | 2019 | 2018 | ||||||
| ($ in thousands) | |||||||||||
| Legacy Loan Portfolio - End of Period (1) | |||||||||||
| Consumer | |||||||||||
| Credit cards | $ | 204,802 | $ | 195,083 | $ | 187,919 | $ | 181,549 | $ | 204,173 | |
| Other consumer | 191,946 | 208,643 | 207,445 | 213,659 | 201,297 | ||||||
| Total consumer | 396,748 | 403,726 | 395,364 | 395,208 | 405,470 | ||||||
| Real Estate | |||||||||||
| Construction | 1,760,894 | 1,712,858 | 1,540,352 | 1,376,162 | 1,300,723 | ||||||
| Single-family residential | 1,444,620 | 1,448,455 | 1,444,525 | 1,431,407 | 1,440,443 | ||||||
| Other commercial | 3,678,908 | 3,630,708 | 3,531,273 | 3,355,109 | 3,225,287 | ||||||
| Total real estate | 6,884,422 | 6,792,021 | 6,516,150 | 6,162,678 | 5,966,453 | ||||||
| Commercial | |||||||||||
| Commercial | 1,909,796 | 1,894,819 | 1,871,695 | 1,801,422 | 1,774,909 | ||||||
| Agricultural | 163,396 | 213,753 | 191,922 | 147,216 | 164,514 | ||||||
| Total commercial | 2,073,192 | 2,108,572 | 2,063,617 | 1,948,638 | 1,939,423 | ||||||
| Other | 275,714 | 339,046 | 287,366 | 178,026 | 119,042 | ||||||
| Total Loans | $ | 9,630,076 | $ | 9,643,365 | $ | 9,262,497 | $ | 8,684,550 | $ | 8,430,388 | |
| (1) Excludes all acquired loans. | |||||||||||
| Investment Securities - End of Period | |||||||||||
| Held-to-Maturity | |||||||||||
| U.S. Government agencies | $ | - | $ | - | $ | 999 | $ | 12,996 | $ | 16,990 | |
| Mortgage-backed securities | 10,796 | 11,549 | 12,225 | 12,847 | 13,346 | ||||||
| State and political subdivisions | 27,082 | 28,692 | 32,236 | 33,597 | 256,863 | ||||||
| Other securities | 3,049 | 1,996 | 1,995 | 1,995 | 1,995 | ||||||
| Total held-to-maturity | 40,927 | 42,237 | 47,455 | 61,435 | 289,194 | ||||||
| Available-for-Sale | |||||||||||
| U.S. Treasury | $ | 449,729 | $ | - | $ | - | $ | - | $ | - | |
| U.S. Government agencies | 194,249 | 178,139 | 197,656 | 161,577 | 154,301 | ||||||
| Mortgage-backed securities | 1,742,945 | 1,337,794 | 1,345,760 | 1,345,677 | 1,522,900 | ||||||
| State and political subdivisions | 880,524 | 681,202 | 636,558 | 580,790 | 314,843 | ||||||
| FHLB stock | 66,285 | 62,403 | 66,588 | 65,220 | 73,105 | ||||||
| Other securities | 119,606 | 96,596 | 95,825 | 86,847 | 86,603 | ||||||
| Total available-for-sale | 3,453,338 | 2,356,134 | 2,342,387 | 2,240,111 | 2,151,752 | ||||||
| Total investment securities | $ | 3,494,265 | $ | 2,398,371 | $ | 2,389,842 | $ | 2,301,546 | $ | 2,440,946 | |
| Fair value - HTM investment securities | $ | 41,855 | $ | 43,302 | $ | 48,640 | $ | 61,956 | $ | 290,830 | |
| Investment Securities - QTD Average | |||||||||||
| Taxable securities | $ | 2,099,266 | $ | 1,712,672 | $ | 1,793,799 | $ | 1,880,694 | $ | 1,815,203 | |
| Tax exempt securities | 825,000 | 681,505 | 624,898 | 590,941 | 551,185 | ||||||
| Total investment securities - QTD average | $ | 2,924,266 | $ | 2,394,177 | $ | 2,418,697 | $ | 2,471,635 | $ | 2,366,388 | |
| Simmons First National Corporation | SFNC | |||||||||||||||
| Consolidated Loans and Credit Coverage | ||||||||||||||||
| For the Quarters Ended | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | |||||||||||
| (Unaudited) | 2019 | 2019 | 2019 | 2019 | 2018 | |||||||||||
| ($ in thousands) | ||||||||||||||||
| LOANS | ||||||||||||||||
| Legacy loans | $ | 9,630,076 | $ | 9,643,365 | $ | 9,262,497 | $ | 8,684,550 | $ | 8,430,388 | ||||||
| Allowance for loan losses (legacy loans) | (67,800 | ) | (65,993 | ) | (63,067 | ) | (59,243 | ) | (56,599 | ) | ||||||
| Legacy loans (net of allowance) | 9,562,276 | 9,577,372 | 9,199,430 | 8,625,307 | 8,373,789 | |||||||||||
| Loans acquired | 4,882,919 | 3,420,563 | 3,939,126 | 3,099,915 | 3,342,175 | |||||||||||
| Credit discount | (87,291 | ) | (60,379 | ) | (73,498 | ) | (42,416 | ) | (49,297 | ) | ||||||
| Allowance for loan losses (loans acquired) | (444 | ) | (597 | ) | (1,112 | ) | (1,312 | ) | (95 | ) | ||||||
| Loans acquired (net of discount and allowance) | 4,795,184 | 3,359,587 | 3,864,516 | 3,056,187 | 3,292,783 | |||||||||||
| Net loans | $ | 14,357,460 | $ | 12,936,959 | $ | 13,063,946 | $ | 11,681,494 | $ | 11,666,572 | ||||||
| Loan Coverage Ratios | ||||||||||||||||
| Allowance for loan losses to legacy loans | 0.70 | % | 0.68 | % | 0.68 | % | 0.68 | % | 0.67 | % | ||||||
| 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) | 1.80 | % | 1.78 | % | 1.89 | % | 1.41 | % | 1.48 | % | ||||||
| Total allowance and credit coverage (non-GAAP) (1) | 1.07 | % | 0.97 | % | 1.04 | % | 0.87 | % | 0.90 | % | ||||||
| (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 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | ||||||||||
| (Unaudited) | 2019 | 2019 | 2019 | 2019 | 2018 | ||||||||||
| ($ in thousands) | |||||||||||||||
| Allowance for Loan Losses (Legacy Loans) | |||||||||||||||
| Balance, beginning of quarter | $ | 65,993 | $ | 63,067 | $ | 59,243 | $ | 56,599 | $ | 55,358 | |||||
| Loans charged off | |||||||||||||||
| Credit cards | 1,287 | 1,117 | 1,039 | 1,142 | 1,121 | ||||||||||
| Other consumer | 1,397 | 1,059 | 905 | 1,533 | 2,894 | ||||||||||
| Real estate | 767 | 907 | 271 | 374 | 337 | ||||||||||
| Commercial | 459 | 17,729 | 1,867 | 1,968 | 3,480 | ||||||||||
| Total loans charged off | 3,910 | 20,812 | 4,082 | 5,017 | 7,832 | ||||||||||
| Recoveries of loans previously charged off | |||||||||||||||
| Credit cards | 287 | 223 | 271 | 240 | 227 | ||||||||||
| Other consumer | 304 | 1,422 | 331 | 300 | 154 | ||||||||||
| Real estate | 146 | 55 | 153 | 142 | 367 | ||||||||||
| Commercial | 77 | 65 | 72 | 158 | 167 | ||||||||||
| Total recoveries | 814 | 1,765 | 827 | 840 | 915 | ||||||||||
| Net loans charged off | 3,096 | 19,047 | 3,255 | 4,177 | 6,917 | ||||||||||
| Provision for loan losses | 4,903 | 21,973 | 7,079 | 6,821 | 8,158 | ||||||||||
| Balance, end of quarter | $ | 67,800 | $ | 65,993 | $ | 63,067 | $ | 59,243 | $ | 56,599 | |||||
| Non-performing assets (1) (2) | |||||||||||||||
| Non-performing loans | |||||||||||||||
| Nonaccrual loans | $ | 70,836 | $ | 72,721 | $ | 61,956 | $ | 60,925 | $ | 34,201 | |||||
| Loans past due 90 days or more | 259 | 155 | 267 | 281 | 224 | ||||||||||
| Total non-performing loans | 71,095 | 72,876 | 62,223 | 61,206 | 34,425 | ||||||||||
| Other non-performing assets | |||||||||||||||
| Foreclosed assets and other real estate owned (2) | 19,121 | 19,576 | 24,761 | 18,952 | 25,565 | ||||||||||
| Other non-performing assets | 1,964 | 540 | 613 | 505 | 553 | ||||||||||
| Total other non-performing assets | 21,085 | 20,116 | 25,374 | 19,457 | 26,118 | ||||||||||
| Total non-performing assets | $ | 92,180 | $ | 92,992 | $ | 87,597 | $ | 80,663 | $ | 60,543 | |||||
| Performing TDRs (troubled debt restructurings) | $ | 4,411 | $ | 6,519 | $ | 6,246 | $ | 6,297 | $ | 6,369 | |||||
| Ratios (1) (2) | |||||||||||||||
| Allowance for loan losses to total loans | 0.70 | % | 0.68 | % | 0.68 | % | 0.68 | % | 0.67 | % | |||||
| Allowance for loan losses to non-performing loans | 95 | % | 91 | % | 101 | % | 97 | % | 164 | % | |||||
| Non-performing loans to total loans | 0.74 | % | 0.76 | % | 0.67 | % | 0.70 | % | 0.41 | % | |||||
| Non-performing assets (including performing TDRs) | |||||||||||||||
| to total assets | 0.45 | % | 0.56 | % | 0.52 | % | 0.54 | % | 0.40 | % | |||||
| Non-performing assets to total assets | 0.43 | % | 0.52 | % | 0.49 | % | 0.50 | % | 0.37 | % | |||||
| Annualized net charge offs to total loans | 0.12 | % | 0.78 | % | 0.14 | % | 0.20 | % | 0.35 | % | |||||
| Annualized net credit card charge offs to | |||||||||||||||
| total credit card loans | 1.99 | % | 1.82 | % | 1.63 | % | 1.92 | % | 1.86 | % | |||||
| (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 Dec 2019 | Three Months Ended Sep 2019 | Three Months Ended Dec 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 | $ | 789,035 | $ | 2,625 | 1.32 | % | $ | 344,761 | $ | 1,586 | 1.83 | % | $ | 499,961 | $ | 2,168 | 1.72 | % | ||
| Investment securities - taxable | 2,099,266 | 11,743 | 2.22 | % | 1,712,672 | 10,414 | 2.41 | % | 1,815,200 | 11,828 | 2.59 | % | ||||||||
| Investment securities - non-taxable (FTE) | 825,000 | 7,945 | 3.82 | % | 681,505 | 6,687 | 3.89 | % | 551,188 | 5,313 | 3.82 | % | ||||||||
| Mortgage loans held for sale | 53,511 | 402 | 2.98 | % | 39,551 | 382 | 3.83 | % | 30,851 | 372 | 4.78 | % | ||||||||
| Loans, including acquired loans | 14,144,259 | 193,511 | 5.43 | % | 13,052,943 | 180,080 | 5.47 | % | 11,788,838 | 160,081 | 5.39 | % | ||||||||
| Total interest earning assets (FTE) | 17,911,071 | 216,226 | 4.79 | % | 15,831,432 | 199,149 | 4.99 | % | 14,686,038 | 179,762 | 4.86 | % | ||||||||
| Non-earning assets | 2,130,819 | 1,889,166 | 1,671,715 | |||||||||||||||||
| Total assets | $ | 20,041,890 | $ | 17,720,598 | $ | 16,357,753 | ||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Interest bearing liabilities: | ||||||||||||||||||||
| Interest bearing transaction and | ||||||||||||||||||||
| savings accounts | $ | 8,440,090 | $ | 20,331 | 0.96 | % | $ | 7,322,395 | $ | 21,363 | 1.16 | % | $ | 6,770,217 | $ | 17,489 | 1.02 | % | ||
| Time deposits | 3,393,089 | 16,198 | 1.89 | % | 3,122,422 | 15,573 | 1.98 | % | 2,752,113 | 11,273 | 1.63 | % | ||||||||
| Total interest bearing deposits | 11,833,179 | 36,529 | 1.22 | % | 10,444,817 | 36,936 | 1.40 | % | 9,522,330 | 28,762 | 1.20 | % | ||||||||
| Federal funds purchased and securities | ||||||||||||||||||||
| sold under agreement to repurchase | 147,395 | 368 | 0.99 | % | 123,883 | 249 | 0.80 | % | 108,687 | 121 | 0.44 | % | ||||||||
| Other borrowings | 1,168,897 | 4,615 | 1.57 | % | 1,127,886 | 5,381 | 1.89 | % | 1,302,453 | 7,134 | 2.17 | % | ||||||||
| Subordinated notes and debentures | 376,766 | 4,813 | 5.07 | % | 354,178 | 4,576 | 5.13 | % | 353,906 | 4,498 | 5.04 | % | ||||||||
| Total interest bearing liabilities | 13,526,237 | 46,325 | 1.36 | % | 12,050,764 | 47,142 | 1.55 | % | 11,287,376 | 40,515 | 1.42 | % | ||||||||
| Non-interest bearing liabilities: | ||||||||||||||||||||
| Non-interest bearing deposits | 3,524,092 | 3,012,544 | 2,768,437 | |||||||||||||||||
| Other liabilities | 379,909 | 288,517 | 90,723 | |||||||||||||||||
| Total liabilities | 17,430,238 | 15,351,825 | 14,146,536 | |||||||||||||||||
| Stockholders' equity | 2,611,652 | 2,368,773 | 2,211,217 | |||||||||||||||||
| Total liabilities and stockholders' equity | $ | 20,041,890 | $ | 17,720,598 | $ | 16,357,753 | ||||||||||||||
| Net interest income (FTE) | $ | 169,901 | $ | 152,007 | $ | 139,247 | ||||||||||||||
| Net interest spread (FTE) | 3.43 | % | 3.44 | % | 3.44 | % | ||||||||||||||
| Net interest margin (FTE) - quarter-to-date | 3.76 | % | 3.81 | % | 3.76 | % | ||||||||||||||
| Net interest margin (FTE) - year-to-date | 3.83 | % | 3.86 | % | 3.97 | % | ||||||||||||||
| Core net interest margin (FTE) - quarter-to-date (1) | 3.43 | % | 3.58 | % | 3.66 | % | ||||||||||||||
| Core loan yield (FTE) - quarter-to-date (1) | 5.00 | % | 5.19 | % | 5.25 | % | ||||||||||||||
| Core net interest margin (FTE) - year-to-date (1) | 3.58 | % | 3.63 | % | 3.72 | % | ||||||||||||||
| Core loan yield (FTE) - year-to-date (1) | 5.18 | % | 5.24 | % | 5.11 | % | ||||||||||||||
| (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 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | |||||||||||
| (Unaudited) | 2019 | 2019 | 2019 | 2019 | 2018 | |||||||||||
| ($ in thousands, except share data) | ||||||||||||||||
| QUARTER-TO-DATE | ||||||||||||||||
| Financial Highlights - GAAP | ||||||||||||||||
| Net Income | $ | 52,722 | $ | 81,826 | $ | 55,598 | $ | 47,695 | $ | 55,646 | ||||||
| Diluted earnings per share | 0.49 | 0.84 | 0.58 | 0.51 | 0.60 | |||||||||||
| Return on average assets | 1.04 | % | 1.83 | % | 1.28 | % | 1.19 | % | 1.35 | % | ||||||
| Return on average common equity | 8.01 | % | 13.70 | % | 9.48 | % | 8.60 | % | 9.98 | % | ||||||
| Return on tangible common equity | 14.62 | % | 24.89 | % | 17.40 | % | 15.34 | % | 17.96 | % | ||||||
| Net interest margin (FTE) | 3.76 | % | 3.81 | % | 3.92 | % | 3.85 | % | 3.76 | % | ||||||
| FTE adjustment | 2,172 | 1,843 | 1,706 | 1,601 | 1,466 | |||||||||||
| Amortization of intangibles | 3,270 | 2,947 | 2,947 | 2,641 | 2,642 | |||||||||||
| Amortization of intangibles, net of taxes | 2,416 | 2,176 | 2,177 | 1,951 | 1,952 | |||||||||||
| Average diluted shares outstanding | 108,472,559 | 96,968,775 | 96,367,857 | 92,870,813 | 92,897,105 | |||||||||||
| Shares repurchased | 400,000 | - | - | - | - | |||||||||||
| Average price of shares repurchased | 25.97 | - | - | - | - | |||||||||||
| Cash dividends declared per common share | 0.16 | 0.16 | 0.16 | 0.16 | 0.15 | |||||||||||
| Financial Highlights - Core (non-GAAP) | ||||||||||||||||
| Core earnings (excludes non-core items) (1) | $ | 71,087 | $ | 83,963 | $ | 65,453 | $ | 49,076 | $ | 56,451 | ||||||
| Core diluted earnings per share (1) | 0.66 | 0.87 | 0.68 | 0.53 | 0.61 | |||||||||||
| Core net interest margin (FTE) (2) | 3.43 | % | 3.58 | % | 3.66 | % | 3.67 | % | 3.66 | % | ||||||
| Accretable yield on acquired loans | 15,100 | 9,322 | 10,162 | 6,660 | 3,850 | |||||||||||
| Efficiency ratio (1) | 52.63 | % | 43.77 | % | 49.88 | % | 56.76 | % | 51.99 | % | ||||||
| Core return on average assets (1) | 1.41 | % | 1.88 | % | 1.51 | % | 1.22 | % | 1.37 | % | ||||||
| Core return on average common equity (1) | 10.80 | % | 14.06 | % | 11.16 | % | 8.85 | % | 10.13 | % | ||||||
| Core return on tangible common equity (1) | 19.50 | % | 25.52 | % | 20.36 | % | 15.76 | % | 18.21 | % | ||||||
| YEAR-TO-DATE | ||||||||||||||||
| Financial Highlights - GAAP | ||||||||||||||||
| Net Income | $ | 237,841 | $ | 185,119 | $ | 103,293 | $ | 47,695 | $ | 215,713 | ||||||
| Diluted earnings per share | 2.41 | 1.94 | 1.09 | 0.51 | 2.32 | |||||||||||
| Return on average assets | 1.33 | % | 1.44 | % | 1.24 | % | 1.19 | % | 1.37 | % | ||||||
| Return on average common equity | 9.93 | % | 10.65 | % | 9.05 | % | 8.60 | % | 10.00 | % | ||||||
| Return on tangible common equity | 17.99 | % | 19.27 | % | 16.38 | % | 15.34 | % | 18.44 | % | ||||||
| Net interest margin (FTE) | 3.83 | % | 3.86 | % | 3.89 | % | 3.85 | % | 3.97 | % | ||||||
| FTE adjustment | 7,322 | 5,150 | 3,307 | 1,601 | 5,297 | |||||||||||
| Amortization of intangibles | 11,805 | 8,535 | 5,588 | 2,641 | 11,009 | |||||||||||
| Amortization of intangibles, net of taxes | 8,720 | 6,304 | 4,128 | 1,951 | 8,132 | |||||||||||
| Average diluted shares outstanding | 98,796,628 | 95,450,732 | 94,588,739 | 92,870,813 | 92,830,485 | |||||||||||
| Cash dividends declared per common share | 0.64 | 0.48 | 0.32 | 0.16 | 0.60 | |||||||||||
| Financial Highlights - Core (non-GAAP) | ||||||||||||||||
| Core earnings (excludes non-core items) (1) | $ | 269,579 | $ | 198,492 | $ | 114,529 | $ | 49,076 | $ | 220,233 | ||||||
| Diluted core earnings per share (1) | 2.73 | 2.08 | 1.21 | 0.53 | 2.37 | |||||||||||
| Core net interest margin (FTE) (2) | 3.58 | % | 3.63 | % | 3.66 | % | 3.67 | % | 3.72 | % | ||||||
| Accretable yield on acquired loans | 41,244 | 26,144 | 16,822 | 6,660 | 35,263 | |||||||||||
| Efficiency ratio (1) | 50.33 | % | 49.49 | % | 53.14 | % | 56.76 | % | 52.85 | % | ||||||
| Core return on average assets (1) | 1.51 | % | 1.55 | % | 1.37 | % | 1.22 | % | 1.40 | % | ||||||
| Core return on average common equity (1) | 11.25 | % | 11.42 | % | 10.04 | % | 8.85 | % | 10.21 | % | ||||||
| Core return on tangible common equity (1) | 20.31 | % | 20.62 | % | 18.09 | % | 15.76 | % | 18.81 | % | ||||||
| END OF PERIOD | ||||||||||||||||
| Book value per share | $ | 26.30 | $ | 26.36 | $ | 25.57 | $ | 24.87 | $ | 24.33 | ||||||
| Tangible book value per share | 15.89 | 15.73 | 14.90 | 14.78 | 14.18 | |||||||||||
| Shares outstanding | 113,628,601 | 96,613,855 | 96,590,656 | 92,568,361 | 92,347,643 | |||||||||||
| Full-time equivalent employees | 3,270 | 2,701 | 2,700 | 2,602 | 2,654 | |||||||||||
| Total number of financial centers | 251 | 212 | 212 | 191 | 191 | |||||||||||
| (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 | |||||||||||||||
| Reconciliation Of Non-GAAP Financial Measures - Core Earnings | ||||||||||||||||
| For the Quarters Ended | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | |||||||||||
| (Unaudited) | 2019 | 2019 | 2019 | 2019 | 2018 | |||||||||||
| ($ in thousands, except per share data) | ||||||||||||||||
| QUARTER-TO-DATE | ||||||||||||||||
| Net Income | $ | 52,722 | $ | 81,826 | $ | 55,598 | $ | 47,695 | $ | 55,646 | ||||||
| Non-core items | ||||||||||||||||
| Merger-related costs | 24,831 | 2,556 | 7,522 | 1,470 | 797 | |||||||||||
| Early retirement program | - | 177 | 2,932 | 355 | - | |||||||||||
| Branch right-sizing | 37 | 160 | 2,887 | 45 | 292 | |||||||||||
| Tax effect (1) | (6,503 | ) | (756 | ) | (3,486 | ) | (489 | ) | (284 | ) | ||||||
| Net non-core items | 18,365 | 2,137 | 9,855 | 1,381 | 805 | |||||||||||
| Core earnings (non-GAAP) | $ | 71,087 | $ | 83,963 | $ | 65,453 | $ | 49,076 | $ | 56,451 | ||||||
| Diluted earnings per share | $ | 0.49 | $ | 0.84 | $ | 0.58 | $ | 0.51 | $ | 0.60 | ||||||
| Non-core items | ||||||||||||||||
| Merger-related costs | 0.23 | 0.04 | 0.08 | 0.02 | 0.01 | |||||||||||
| Early retirement program | - | - | 0.03 | 0.01 | - | |||||||||||
| Branch right-sizing | - | - | 0.03 | - | - | |||||||||||
| Tax effect (1) | (0.06 | ) | (0.01 | ) | (0.04 | ) | (0.01 | ) | - | |||||||
| Net non-core items | 0.17 | 0.03 | 0.10 | 0.02 | 0.01 | |||||||||||
| Core earnings (non-GAAP) | $ | 0.66 | $ | 0.87 | $ | 0.68 | $ | 0.53 | $ | 0.61 | ||||||
| YEAR-TO-DATE | ||||||||||||||||
| Net Income | $ | 237,841 | $ | 185,119 | $ | 103,293 | $ | 47,695 | $ | 215,713 | ||||||
| Non-core items | ||||||||||||||||
| Merger-related costs | 36,379 | 11,548 | 8,992 | 1,470 | 4,777 | |||||||||||
| Early retirement program | 3,464 | 3,464 | 3,287 | 355 | - | |||||||||||
| Branch right-sizing | 3,129 | 3,092 | 2,932 | 45 | 1,341 | |||||||||||
| Tax effect (1) | (11,234 | ) | (4,731 | ) | (3,975 | ) | (489 | ) | (1,598 | ) | ||||||
| Net non-core items | 31,738 | 13,373 | 11,236 | 1,381 | 4,520 | |||||||||||
| Core earnings (non-GAAP) | $ | 269,579 | $ | 198,492 | $ | 114,529 | $ | 49,076 | $ | 220,233 | ||||||
| Diluted earnings per share | $ | 2.41 | $ | 1.94 | $ | 1.09 | $ | 0.51 | $ | 2.32 | ||||||
| Non-core items | ||||||||||||||||
| Merger-related costs | 0.37 | 0.12 | 0.10 | 0.02 | 0.05 | |||||||||||
| Early retirement program | 0.03 | 0.04 | 0.03 | 0.01 | - | |||||||||||
| Branch right-sizing | 0.03 | 0.03 | 0.03 | - | 0.02 | |||||||||||
| Tax effect (1) | (0.11 | ) | (0.05 | ) | (0.04 | ) | (0.01 | ) | (0.02 | ) | ||||||
| Net non-core items | 0.32 | 0.14 | 0.12 | 0.02 | 0.05 | |||||||||||
| Core earnings (non-GAAP) | $ | 2.73 | $ | 2.08 | $ | 1.21 | $ | 0.53 | $ | 2.37 | ||||||
| (1) Effective tax rate of 26.135%. | ||||||||||||||||
| Reconciliation of Selected Non-Core Non-Interest Expense Items (non-GAAP) | ||||||||||||||||
| QUARTER-TO-DATE | ||||||||||||||||
| Salaries and employee benefits | $ | 63,235 | $ | 52,065 | $ | 56,128 | $ | 56,367 | $ | 49,193 | ||||||
| Non-core items (1) | - | (176 | ) | (2,937 | ) | (351 | ) | (118 | ) | |||||||
| Core salaries and employee benefits (non-GAAP) | $ | 63,235 | $ | 51,889 | $ | 53,191 | $ | 56,016 | $ | 49,075 | ||||||
| Merger related costs | $ | 24,831 | $ | 2,556 | $ | 7,522 | $ | 1,470 | $ | 797 | ||||||
| Non-core items (1) | (24,831 | ) | (2,556 | ) | (7,522 | ) | (1,470 | ) | (797 | ) | ||||||
| Core merger related costs (non-GAAP) | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||
| Other operating expenses | $ | 38,044 | $ | 37,881 | $ | 32,867 | $ | 30,062 | $ | 30,222 | ||||||
| Non-core items (1) | (4 | ) | (90 | ) | (2,834 | ) | (10 | ) | 70 | |||||||
| Core other operating expenses (non-GAAP) | $ | 38,040 | $ | 37,791 | $ | 30,033 | $ | 30,052 | $ | 30,292 | ||||||
| (1) Non-core items include merger related costs, early retirement program expenses and branch right sizing costs. | ||||||||||||||||
| Simmons First National Corporation | SFNC | ||||||||||||||||
| Reconciliation Of Non-GAAP Financial Measures - End of Period | |||||||||||||||||
| For the Quarters Ended | |||||||||||||||||
| (Unaudited) | Dec 31 | Sept 30 | Jun 30 | Mar 31 | Dec 31 | ||||||||||||
| 2019 | 2019 | 2019 | 2019 | 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 | $ | 2,988,170 | $ | 2,547,071 | $ | 2,469,513 | $ | 2,302,321 | $ | 2,246,434 | |||||||
| Intangible assets: | |||||||||||||||||
| Goodwill | (1,055,520 | ) | (926,648 | ) | (926,450 | ) | (845,687 | ) | (845,687 | ) | |||||||
| Other intangible assets | (127,340 | ) | (101,149 | ) | (104,096 | ) | (88,694 | ) | (91,334 | ) | |||||||
| Total intangibles | (1,182,860 | ) | (1,027,797 | ) | (1,030,546 | ) | (934,381 | ) | (937,021 | ) | |||||||
| Tangible common stockholders' equity | $ | 1,805,310 | $ | 1,519,274 | $ | 1,438,967 | $ | 1,367,940 | $ | 1,309,413 | |||||||
| Total assets | $ | 21,259,143 | $ | 17,758,511 | $ | 17,937,435 | $ | 16,091,639 | $ | 16,543,337 | |||||||
| Intangible assets: | |||||||||||||||||
| Goodwill | (1,055,520 | ) | (926,648 | ) | (926,450 | ) | (845,687 | ) | (845,687 | ) | |||||||
| Other intangible assets | (127,340 | ) | (101,149 | ) | (104,096 | ) | (88,694 | ) | (91,334 | ) | |||||||
| Total intangibles | (1,182,860 | ) | (1,027,797 | ) | (1,030,546 | ) | (934,381 | ) | (937,021 | ) | |||||||
| Tangible assets | $ | 20,076,283 | $ | 16,730,714 | $ | 16,906,889 | $ | 15,157,258 | $ | 15,606,316 | |||||||
| Ratio of equity to assets | 14.06 | % | 14.34 | % | 13.77 | % | 14.31 | % | 13.58 | % | |||||||
| Ratio of tangible common equity to tangible assets | 8.99 | % | 9.08 | % | 8.51 | % | 9.02 | % | 8.39 | % | |||||||
| 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 | $ | 87,291 | $ | 60,379 | $ | 73,498 | $ | 42,416 | $ | 49,297 | |||||||
| Allowance for loan losses on acquired loans | 444 | 597 | 1,112 | 1,312 | 95 | ||||||||||||
| Total credit discount and ALLL on acquired loans | $ | 87,735 | $ | 60,976 | $ | 74,610 | $ | 43,728 | $ | 49,392 | |||||||
| Total loans acquired | $ | 4,882,919 | $ | 3,420,563 | $ | 3,939,126 | $ | 3,099,915 | $ | 3,342,175 | |||||||
| Discount and ALLL on acquired loans to acquired loans | 1.80 | % | 1.78 | % | 1.89 | % | 1.41 | % | 1.48 | % | |||||||
| Calculation of Total Allowance and Credit Coverage | |||||||||||||||||
| Allowance for loan losses | $ | 67,800 | $ | 65,993 | $ | 63,067 | $ | 59,243 | $ | 56,599 | |||||||
| Total credit discount and ALLL on acquired loans | 87,735 | 60,976 | 74,610 | 43,728 | 49,392 | ||||||||||||
| Total allowance and credit discount | $ | 155,535 | $ | 126,969 | $ | 137,677 | $ | 102,971 | $ | 105,991 | |||||||
| Total loans | $ | 14,512,995 | $ | 13,063,928 | $ | 13,201,623 | $ | 11,784,465 | $ | 11,772,563 | |||||||
| Total allowance and credit coverage | 1.07 | % | 0.97 | % | 1.04 | % | 0.87 | % | 0.90 | % | |||||||
| Calculation of Tangible Book Value per Share | |||||||||||||||||
| Total common stockholders' equity | $ | 2,988,170 | $ | 2,547,071 | $ | 2,469,513 | $ | 2,302,321 | $ | 2,246,434 | |||||||
| Intangible assets: | |||||||||||||||||
| Goodwill | (1,055,520 | ) | (926,648 | ) | (926,450 | ) | (845,687 | ) | (845,687 | ) | |||||||
| Other intangible assets | (127,340 | ) | (101,149 | ) | (104,096 | ) | (88,694 | ) | (91,334 | ) | |||||||
| Total intangibles | (1,182,860 | ) | (1,027,797 | ) | (1,030,546 | ) | (934,381 | ) | (937,021 | ) | |||||||
| Tangible common stockholders' equity | $ | 1,805,310 | $ | 1,519,274 | $ | 1,438,967 | $ | 1,367,940 | $ | 1,309,413 | |||||||
| Shares of common stock outstanding | 113,628,601 | 96,613,855 | 96,590,656 | 92,568,361 | 92,347,643 | ||||||||||||
| Book value per common share | $ | 26.30 | $ | 26.36 | $ | 25.57 | $ | 24.87 | $ | 24.33 | |||||||
| Tangible book value per common share | $ | 15.89 | $ | 15.73 | $ | 14.90 | $ | 14.78 | $ | 14.18 | |||||||
| Simmons First National Corporation | SFNC | ||||||||||||||||
| Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date | |||||||||||||||||
| For the Quarters Ended | |||||||||||||||||
| (Unaudited) | Dec 31 | Sept 30 | Jun 30 | Mar 31 | Dec 31 | ||||||||||||
| 2019 | 2019 | 2019 | 2019 | 2018 | |||||||||||||
| ($ in thousands) | |||||||||||||||||
| Calculation of Core Return on Average Assets | |||||||||||||||||
| Net income | $ | 52,722 | $ | 81,826 | $ | 55,598 | $ | 47,695 | $ | 55,646 | |||||||
| Net non-core items, net of taxes, adjustment | 18,365 | 2,137 | 9,855 | 1,381 | 805 | ||||||||||||
| Core earnings | $ | 71,087 | $ | 83,963 | $ | 65,453 | $ | 49,076 | $ | 56,451 | |||||||
| Average total assets | $ | 20,041,890 | $ | 17,720,598 | $ | 17,382,872 | $ | 16,302,197 | $ | 16,357,753 | |||||||
| Return on average assets | 1.04 | % | 1.83 | % | 1.28 | % | 1.19 | % | 1.35 | % | |||||||
| Core return on average assets | 1.41 | % | 1.88 | % | 1.51 | % | 1.22 | % | 1.37 | % | |||||||
| Calculation of Return on Tangible Common Equity | |||||||||||||||||
| Net income | $ | 52,722 | $ | 81,826 | $ | 55,598 | $ | 47,695 | $ | 55,646 | |||||||
| Amortization of intangibles, net of taxes | 2,416 | 2,176 | 2,177 | 1,951 | 1,952 | ||||||||||||
| Total income available to common stockholders | $ | 55,138 | $ | 84,002 | $ | 57,775 | $ | 49,646 | $ | 57,598 | |||||||
| Net non-core items, net of taxes | 18,365 | 2,137 | 9,855 | 1,381 | 805 | ||||||||||||
| Core earnings | 71,087 | 83,963 | 65,453 | 49,076 | 56,451 | ||||||||||||
| Amortization of intangibles, net of taxes | 2,416 | 2,176 | 2,177 | 1,951 | 1,952 | ||||||||||||
| Total core income available to common stockholders | $ | 73,503 | $ | 86,139 | $ | 67,630 | $ | 51,027 | $ | 58,403 | |||||||
| Average common stockholders' equity | $ | 2,611,143 | $ | 2,368,773 | $ | 2,351,603 | $ | 2,248,898 | $ | 2,211,217 | |||||||
| Average intangible assets: | |||||||||||||||||
| Goodwill | (997,004 | ) | (926,687 | ) | (915,445 | ) | (845,687 | ) | (845,687 | ) | |||||||
| Other intangibles | (118,311 | ) | (103,028 | ) | (104,050 | ) | (90,317 | ) | (92,990 | ) | |||||||
| Total average intangibles | (1,115,315 | ) | (1,029,715 | ) | (1,019,495 | ) | (936,004 | ) | (938,677 | ) | |||||||
| Average tangible common stockholders' equity | $ | 1,495,828 | $ | 1,339,058 | $ | 1,332,108 | $ | 1,312,894 | $ | 1,272,540 | |||||||
| Return on average common equity | 8.01 | % | 13.70 | % | 9.48 | % | 8.60 | % | 9.98 | % | |||||||
| Return on tangible common equity | 14.62 | % | 24.89 | % | 17.40 | % | 15.34 | % | 17.96 | % | |||||||
| Core return on average common equity | 10.80 | % | 14.06 | % | 11.16 | % | 8.85 | % | 10.13 | % | |||||||
| Core return on tangible common equity | 19.50 | % | 25.52 | % | 20.36 | % | 15.76 | % | 18.21 | % | |||||||
| Calculation of Efficiency Ratio (1) | |||||||||||||||||
| Non-interest expense | $ | 142,095 | $ | 106,865 | $ | 110,743 | $ | 101,409 | $ | 95,396 | |||||||
| Non-core non-interest expense adjustment | (24,868 | ) | (2,893 | ) | (13,341 | ) | (1,870 | ) | (1,089 | ) | |||||||
| Other real estate and foreclosure expense adjustment | (1,063 | ) | (1,057 | ) | (563 | ) | (599 | ) | (1,300 | ) | |||||||
| Amortization of intangibles adjustment | (3,270 | ) | (2,947 | ) | (2,947 | ) | (2,641 | ) | (2,642 | ) | |||||||
| Efficiency ratio numerator | $ | 112,894 | $ | 99,968 | $ | 93,892 | $ | 96,299 | $ | 90,365 | |||||||
| Net-interest income | $ | 167,729 | $ | 150,164 | $ | 150,356 | $ | 137,026 | $ | 137,781 | |||||||
| Non-interest income | 44,967 | 83,775 | 39,006 | 33,761 | 34,588 | ||||||||||||
| Fully tax-equivalent adjustment | 2,172 | 1,843 | 1,706 | 1,601 | 1,466 | ||||||||||||
| Gain on sale of securities | (377 | ) | (7,374 | ) | (2,823 | ) | (2,740 | ) | (8 | ) | |||||||
| Efficiency ratio denominator | $ | 214,491 | $ | 228,408 | $ | 188,245 | $ | 169,648 | $ | 173,827 | |||||||
| Efficiency ratio (1) | 52.63 | % | 43.77 | % | 49.88 | % | 56.76 | % | 51.99 | % | |||||||
| Calculation of Core Net Interest Margin | |||||||||||||||||
| Net interest income | $ | 167,729 | $ | 150,164 | $ | 150,356 | $ | 137,026 | $ | 137,781 | |||||||
| Fully tax-equivalent adjustment | 2,172 | 1,843 | 1,706 | 1,601 | 1,466 | ||||||||||||
| Fully tax-equivalent net interest income | 169,901 | 152,007 | 152,062 | 138,627 | 139,247 | ||||||||||||
| Total accretable yield | (15,100 | ) | (9,322 | ) | (10,162 | ) | (6,660 | ) | (3,850 | ) | |||||||
| Core net interest income | $ | 154,801 | $ | 142,685 | $ | 141,900 | $ | 131,967 | $ | 135,397 | |||||||
| Average earning assets | $ | 17,911,071 | $ | 15,831,432 | $ | 15,540,371 | $ | 14,593,905 | $ | 14,686,038 | |||||||
| Net interest margin | 3.76 | % | 3.81 | % | 3.92 | % | 3.85 | % | 3.76 | % | |||||||
| Core net interest margin | 3.43 | % | 3.58 | % | 3.66 | % | 3.67 | % | 3.66 | % | |||||||
| Calculation of Core Loan Yield | |||||||||||||||||
| Loan interest income | $ | 193,402 | $ | 179,971 | $ | 178,122 | $ | 159,440 | $ | 159,996 | |||||||
| Total accretable yield | (15,100 | ) | (9,322 | ) | (10,162 | ) | (6,660 | ) | (3,850 | ) | |||||||
| Core loan interest income | $ | 178,302 | $ | 170,649 | $ | 167,960 | $ | 152,780 | $ | 156,146 | |||||||
| Average loan balance | $ | 14,144,259 | $ | 13,052,943 | $ | 12,813,274 | $ | 11,710,075 | $ | 11,788,838 | |||||||
| Core loan yield | 5.00 | % | 5.19 | % | 5.26 | % | 5.29 | % | 5.25 | % | |||||||
| (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) | Dec 31 | Sept 30 | Jun 30 | Mar 31 | Dec 31 | ||||||||||||
| 2019 | 2019 | 2019 | 2019 | 2018 | |||||||||||||
| ($ in thousands) | |||||||||||||||||
| Calculation of Core Return on Average Assets | |||||||||||||||||
| Net income | $ | 237,841 | $ | 185,119 | $ | 103,293 | $ | 47,695 | $ | 215,713 | |||||||
| Net non-core items, net of taxes, adjustment | 31,738 | 13,373 | 11,236 | 1,381 | 4,520 | ||||||||||||
| Core earnings | $ | 269,579 | $ | 198,492 | $ | 114,529 | $ | 49,076 | $ | 220,233 | |||||||
| Average total assets | $ | 17,871,748 | $ | 17,140,419 | $ | 16,845,528 | $ | 16,302,197 | $ | 15,771,362 | |||||||
| Return on average assets | 1.33 | % | 1.44 | % | 1.24 | % | 1.19 | % | 1.37 | % | |||||||
| Core return on average assets | 1.51 | % | 1.55 | % | 1.37 | % | 1.22 | % | 1.40 | % | |||||||
| Calculation of Return on Tangible Common Equity | |||||||||||||||||
| Net income | $ | 237,841 | $ | 185,119 | $ | 103,293 | $ | 47,695 | $ | 215,713 | |||||||
| Amortization of intangibles, net of taxes | 8,720 | 6,304 | 4,128 | 1,951 | 8,132 | ||||||||||||
| Total income available to common stockholders | $ | 246,561 | $ | 191,423 | $ | 107,421 | $ | 49,646 | $ | 223,845 | |||||||
| Net non-core items, net of taxes | 31,738 | 13,373 | 11,236 | 1,381 | 4,520 | ||||||||||||
| Core earnings | 269,579 | 198,492 | 114,529 | 49,076 | 220,233 | ||||||||||||
| Amortization of intangibles, net of taxes | 8,720 | 6,304 | 4,128 | 1,951 | 8,132 | ||||||||||||
| Total core income available to common stockholders | $ | 278,299 | $ | 204,796 | $ | 118,657 | $ | 51,027 | $ | 228,365 | |||||||
| Average common stockholders' equity | $ | 2,396,024 | $ | 2,323,530 | $ | 2,300,535 | $ | 2,248,898 | $ | 2,157,097 | |||||||
| Average intangible assets: | |||||||||||||||||
| Goodwill | (921,635 | ) | (896,236 | ) | (880,759 | ) | (845,688 | ) | (845,308 | ) | |||||||
| Other intangibles | (104,000 | ) | (99,178 | ) | (97,221 | ) | (90,316 | ) | (97,820 | ) | |||||||
| Total average intangibles | (1,025,635 | ) | (995,414 | ) | (977,980 | ) | (936,004 | ) | (943,128 | ) | |||||||
| Average tangible common stockholders' equity | $ | 1,370,389 | $ | 1,328,116 | $ | 1,322,555 | $ | 1,312,894 | $ | 1,213,969 | |||||||
| Return on average common equity | 9.93 | % | 10.65 | % | 9.05 | % | 8.60 | % | 10.00 | % | |||||||
| Return on tangible common equity | 17.99 | % | 19.27 | % | 16.38 | % | 15.34 | % | 18.44 | % | |||||||
| Core return on average common equity | 11.25 | % | 11.42 | % | 10.04 | % | 8.85 | % | 10.21 | % | |||||||
| Core return on tangible common equity | 20.31 | % | 20.62 | % | 18.09 | % | 15.76 | % | 18.81 | % | |||||||
| Calculation of Efficiency Ratio (1) | |||||||||||||||||
| Non-interest expense | $ | 461,112 | $ | 319,017 | $ | 212,152 | $ | 101,409 | $ | 392,229 | |||||||
| Non-core non-interest expense adjustment | (42,972 | ) | (18,104 | ) | (15,211 | ) | (1,870 | ) | (6,118 | ) | |||||||
| Other real estate and foreclosure expense adjustment | (3,282 | ) | (2,219 | ) | (1,162 | ) | (599 | ) | (4,240 | ) | |||||||
| Amortization of intangibles adjustment | (11,805 | ) | (8,535 | ) | (5,588 | ) | (2,641 | ) | (11,009 | ) | |||||||
| Efficiency ratio numerator | $ | 403,053 | $ | 290,159 | $ | 190,191 | $ | 96,299 | $ | 370,862 | |||||||
| Net-interest income | $ | 605,275 | $ | 437,546 | $ | 287,382 | $ | 137,026 | $ | 552,552 | |||||||
| Non-interest income | 201,509 | 156,542 | 72,767 | 33,761 | 143,896 | ||||||||||||
| Fully tax-equivalent adjustment | 7,322 | 5,150 | 3,307 | 1,601 | 5,297 | ||||||||||||
| Gain on sale of securities | (13,314 | ) | (12,937 | ) | (5,563 | ) | (2,740 | ) | (61 | ) | |||||||
| Efficiency ratio denominator | $ | 800,792 | $ | 586,301 | $ | 357,893 | $ | 169,648 | $ | 701,684 | |||||||
| Efficiency ratio (1) | 50.33 | % | 49.49 | % | 53.14 | % | 56.76 | % | 52.85 | % | |||||||
| Calculation of Core Net Interest Margin | |||||||||||||||||
| Net interest income | $ | 605,275 | $ | 437,546 | $ | 287,382 | $ | 137,026 | $ | 552,552 | |||||||
| Fully tax-equivalent adjustment | 7,322 | 5,150 | 3,307 | 1,601 | 5,297 | ||||||||||||
| Fully tax-equivalent net interest income | 612,597 | 442,696 | 290,689 | 138,627 | 557,849 | ||||||||||||
| Total accretable yield | (41,244 | ) | (26,144 | ) | (16,822 | ) | (6,660 | ) | (35,263 | ) | |||||||
| Core net interest income | $ | 571,353 | $ | 416,552 | $ | 273,867 | $ | 131,967 | $ | 522,586 | |||||||
| Average earning assets | $ | 15,977,909 | $ | 15,326,432 | $ | 15,069,751 | $ | 14,593,905 | $ | 14,036,614 | |||||||
| Net interest margin | 3.83 | % | 3.86 | % | 3.89 | % | 3.85 | % | 3.97 | % | |||||||
| Core net interest margin | 3.58 | % | 3.63 | % | 3.66 | % | 3.67 | % | 3.72 | % | |||||||
| Calculation of Core Loan Yield | |||||||||||||||||
| Loan interest income | $ | 710,935 | $ | 517,533 | $ | 337,562 | $ | 159,440 | $ | 616,037 | |||||||
| Total accretable yield | (41,244 | ) | (26,144 | ) | (16,822 | ) | (6,660 | ) | (35,263 | ) | |||||||
| Core loan interest income | $ | 669,691 | $ | 491,389 | $ | 320,740 | $ | 152,780 | $ | 580,774 | |||||||
| Average loan balance | $ | 12,937,147 | $ | 12,530,348 | $ | 12,264,724 | $ | 11,710,075 | $ | 11,355,890 | |||||||
| Core loan yield | 5.18 | % | 5.24 | % | 5.27 | % | 5.29 | % | 5.11 | % | |||||||
| (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. | |||||||||||||||||