SIMMONS FIRST NATIONAL CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - FORM 8-K - SIMMONS FIRST NATIONAL CORP	f8k_012314.htm

Exhibit 99.1

FOR IMMEDIATE RELEASE:

January 23, 2014

SIMMONS FIRST ANNOUNCES FOURTH QUARTER EARNINGS

Pine Bluff, AR – Simmons First National Corporation (NASDAQ-GS: SFNC) today announced 2013 fourth quarter core earnings of $7.7 million, an increase of $345,000, or 4.7%, compared to the same quarter last year. Diluted core earnings per share were $0.48, a $0.04, or 9.1%, increase. Core earnings exclude $4.0 million in after-tax non-interest expenses related to merger costs and branch right sizing initiatives. Including the non-core expenses, net income was $3.8 million and diluted earnings per share were $0.23.

For the year ended December 31, 2013, core earnings were $27.6 million, or $1.69 diluted core earnings per share, a $0.10, or 6.3%, increase from 2012. Year-to-date net income was $23.2 million, or $1.42 diluted earnings per share.

“We are pleased with the core earnings results for the fourth quarter and for the year. As a result of our fourth quarter acquisition of Metropolitan National Bank, other recent acquisitions and efficiency initiatives, we have and will continue to recognize one-time revenue and expense items which may skew our short-term business results but provide long-term performance benefits. Our focus continues to be improvement in core operating income,” commented George A. Makris, Jr., Chairman and CEO.

Loans

Total loans, including those acquired, were $2.4 billion at December 31, 2013, an increase of $483 million, or 25.1%, compared to the same period in 2012. Acquired loans increased by $369 million, net of discounts, while legacy loans (all loans excluding acquired loans) grew $114 million, or 7.0%. “We are encouraged by the continued growth in our legacy loan portfolio during the fourth quarter. We have had nice loan growth this year, particularly from the new lenders we have attracted in our targeted growth markets. Their production has exceeded our expectations through the end of the year,” added Makris.

Deposits

At December 31, 2013, total deposits were $3.7 billion, an increase of $823 million, or 28.7%, compared to the same period in 2012. Total non-time deposits were $2.6 billion, or 70% of total deposits. Included in total deposits were $850 million from the Metropolitan transaction.

Net Interest Income

The Company’s net interest income for the fourth quarter of 2013 was $39.6 million, an increase of $9.0 million, or 29.5%, from the same period of 2012. This increase was driven by growth in the legacy loan portfolio, earning assets acquired through the Metropolitan transaction and an increase in accretable yield on acquired loans. Net interest margin was 4.70% for the quarter ended December 31, 2013, a 71 basis point increase from the same quarter of 2012. Included in interest income for both periods was the additional yield accretion recognized as a result of updated estimates of the cash flows of the loan pools acquired in the Company’s FDIC-assisted transactions. Each quarter, the Company estimates the cash flows expected to be collected from the acquired loan pools, and adjustments may or may not be required. The cash flows estimate has increased based on payment histories and reduced loss expectations of the loan pools. This resulted in increased interest income that is spread on a level-yield basis over the remaining expected lives of the loan pools. The increases in expected cash flows also reduce the amount of expected reimbursements under the loss sharing agreements with the FDIC, which are recorded as indemnification assets.

The impact of the adjustments on the Company’s financial results for the current reporting period is shown below:

	Three Months Ended						Twelve Months Ended
(In thousands)	December 31						December 31
	2013			2012			2013				2012
Impact on net interest income	$	8,802		$	2,647			$	18,905		$	11,751
Non-interest income		(8,371	)		(2,510	)			(18,106	)		(10,755	)
Net impact to pre-tax income	$	431		$	137			$	799		$	996

Because these adjustments will be recognized over the remaining lives of the loan pools and the remainder of the loss sharing agreements, respectively, they will impact future periods as well. The current estimate of the remaining accretable yield adjustment that will positively impact interest income is $33.0 million and the remaining adjustment to the indemnification assets that will reduce non-interest income is $25.6 million. Of the remaining adjustments, we expect to recognize $21.4 million of interest income and a $20.6 million reduction of non-interest income during 2014, resulting in a $0.8 million positive impact to pre-tax income. The accretable yield adjustments recorded in future periods will change as the Company continues to evaluate expected cash flows from the acquired loan pools.

Non-Interest Income

Non-interest income for the fourth quarter was $7.7 million, a decrease of $7.0 million, compared to the third quarter of 2012. The reduction in non-interest income was primarily due to the $5.9 million incremental reduction in non-interest income from the adjustment to the indemnification assets. Also, included in non-interest income during the fourth quarter of 2012 was a $2.3 million bargain purchase gain on the Company’s FDIC-assisted acquisition of Excel Bank in Sedalia, Missouri.

Non-Interest Expense

Non-interest expense for the fourth quarter of 2013 was $41.7 million, an increase of $9.5 million compared to the same period in 2012. Included in the quarter were $6.4 million of various merger related costs for the Company’s acquisition of Metropolitan National Bank. During the fourth quarter of 2012, the Company recorded $1.1 million in merger related costs for its FDIC-assisted acquisitions, resulting in an increase in merger related expenses of $5.3 million in the fourth quarter of 2013. “During the fourth quarter there were $3.7 million in incremental normal operating expenses attributable to our acquisition of Metropolitan National Bank. We also closed one underperforming branch during the quarter, incurring one-time costs of $108,000. Excluding the acquisition related costs and the nonrecurring branch right sizing expenses, non-interest expense for the quarter increased by only 1.1%. Expense control remains a focus as we continue to search for additional efficiency opportunities,” added Makris.

Asset Quality

Beginning in 2010, the Company has acquired loans and foreclosed real estate (“OREO”) through FDIC-assisted acquisitions. Through the loss share provisions of the purchase and assumption agreements, the FDIC agreed to reimburse the Company for 80% of the losses incurred on the disposition of covered loans and OREO. The acquired loans and OREO and any related FDIC loss share indemnification asset were presented in the Company's financial reports with a carrying value equal to the discounted net present value of expected future proceeds. At December 31, 2013, acquired loans covered by loss share were carried at $147 million, OREO covered by loss share was carried at $21 million and the FDIC loss share indemnification asset was carried at $49 million. Acquired loans and OREO not covered by loss share were carried at $516 million and $45 million, respectively. As a result of using the discounted net present value method of valuing these assets, and due to the significant protection against possible losses provided by the FDIC loss share indemnification, all acquired assets, with the exception of OREO not covered by loss share, are excluded from the computations of the asset quality ratios for the legacy loan portfolio, except for their inclusion in total assets.

“It is important to remember that the acquired non-covered loans are protected by a credit mark and the acquired covered loans are protected by a credit mark and 80% loss coverage by the FDIC,” explained Makris. “At December 31, 2013, the allowance for loan losses was $27.4 million and the loan credit mark was $101.4 million, for a total of $128.8 million of coverage. This equates to a total coverage ratio of 5.1% of gross loans. The ratio of credit mark to acquired loans was 13.3%.” The Company's allowance for loan losses at December 31, 2013, was 1.57% of total loans and 298% of non-performing loans. Non-performing loans as a percent of total loans were 0.53% as of December 31, 2013. Non-performing assets increased $38.2 million from the previous quarter, to $74.1 million. Included in this quarter was $42.1 million of acquired OREO not covered by loss share, net of the credit mark, from the Metropolitan acquisition. For the full year of 2013, the annualized net charge-off ratio, excluding credit cards, was 0.15%, and the annualized credit card charge-off ratio was 1.33%.

Capital

At December 31, 2013, stockholders' equity was $404 million, book value per share was $24.89 and tangible book value per share was $19.10. The Company's ratio of stockholders' equity to total assets was 9.2% and its ratio of tangible common equity to tangible assets was 7.2%, as of December 31, 2013.

Stock Repurchase Program

During 2013, the Company repurchased approximately 420,000 shares at an average price of $25.89. During the third quarter, the Company suspended its stock repurchase program.

Simmons First National Corporation

Simmons First National Corporation is a seven bank financial holding company with community banks in Pine Bluff, Lake Village, Jonesboro, Searcy, Russellville, El Dorado and Hot Springs, Arkansas and conducts banking operations in Arkansas, Missouri and Kansas. The Company’s common stock trades on the NASDAQ Global Select Market under the symbol “SFNC”.

Conference Call

Management will conduct a conference call to review this information beginning at 3:00 p.m. Central Time on Thursday, January 23, 2014. Interested persons can listen to this call by dialing toll-free 1-888-481-2844 (United States and Canada only) and asking for the Simmons First National Corporation conference call, conference ID 2687609. In addition, the call will be available live or in recorded version on the Company’s website at www.simmonsfirst.com.

Non-GAAP Financial Measures

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

Forward Looking Statements

Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements of this type speak only as of the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors, including, but not limited to, economic conditions, credit quality, interest rates, loan demand and changes in the assumptions used in making the forward-looking statements, could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect Simmons First National Corporation’s financial results is included in its Form 10-K filing with the Securities and Exchange Commission.

####

FOR MORE INFORMATION CONTACT:

DAVID W. GARNER

Executive Vice President and Investor Relations Officer

Simmons First National Corporation

(870) 541-1000

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)	2013			2013			2013			2013			2012
(in thousands)
ASSETS
Cash and non-interest bearing balances due from banks	$	69,827		$	37,752		$	38,494		$	40,006		$	47,470
Interest bearing balances due from banks		469,553			320,368			420,740			602,992			467,984
Federal funds sold		-			18,365			-			-			22,343
Cash and cash equivalents		539,380			376,485			459,234			642,998			537,797
Investment securities - held-to-maturity		745,688			581,768			555,464			488,513			496,141
Investment securities - available-for-sale		212,277			179,937			177,531			192,165			191,342
Mortgage loans held for sale		9,494			10,605			14,454			19,100			25,367
Assets held in trading accounts		8,978			8,744			8,739			8,368			6,224
Loans:
Legacy loans		1,742,638			1,741,161			1,650,395			1,589,077			1,628,513
Allowance for loan losses		(27,442	)		(27,533	)		(27,398	)		(27,735	)		(27,882	)
Loans acquired, not covered by FDIC loss share
(net of discount)		515,644			68,133			63,500			78,745			82,764
Loans acquired, covered by FDIC loss share (net of discount)		146,653			148,884			163,736			181,537			210,842
Net loans		2,377,493			1,930,645			1,850,233			1,821,624			1,894,237
FDIC indemnification asset		48,791			61,500			67,744			71,002			75,286
Premises and equipment		119,614			87,065			88,164			87,934			87,557
Premises held for sale		19,466			-			-			-			-
Foreclosed assets not covered by FDIC loss share		64,820			26,203			30,390			30,714			33,352
Foreclosed assets covered by FDIC loss share		20,585			23,260			22,990			28,003			27,620
Interest receivable		15,654			15,635			12,637			13,027			14,530
Bank owned life insurance		60,384			60,040			59,710			59,344			52,066
Goodwill		78,906			60,605			60,605			60,605			60,605
Other intangible assets		14,972			5,420			3,487			3,624			3,760
Other assets		46,598			13,797			10,387			16,540			21,605
Total assets	$	4,383,100		$	3,441,709		$	3,421,769		$	3,543,561		$	3,527,489

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts	$	718,438		$	580,063		$	565,433		$	592,442		$	576,655
Interest bearing transaction accounts and savings deposits		1,862,618			1,453,139			1,428,422			1,456,005			1,421,137
Time deposits less than $100,000		611,729			454,325			467,778			482,688			505,773
Time deposits greater than $100,000		504,782			351,271			351,486			361,529			370,598
Total deposits		3,697,567			2,838,798			2,813,119			2,892,664			2,874,163
Federal funds purchased and securities sold
under agreements to repurchase		107,887			62,311			79,063			108,227			104,078
Other borrowings		117,090			75,987			77,659			81,646			89,441
Subordinated debentures		20,620			20,620			20,620			20,620			20,620
Accrued interest and other liabilities		36,104			40,959			29,458			33,950			33,125
Total liabilities		3,979,268			3,038,675			3,019,919			3,137,107			3,121,427

Stockholders' equity:
Common stock		162			162			163			165			165
Surplus		88,095			87,279			89,434			94,723			96,587
Undivided profits		318,577			318,194			314,663			311,521			309,053
Accumulated other comprehensive income
Unrealized appreciation on AFS securities		(3,002	)		(2,601	)		(2,410	)		45			257
Total stockholders' equity		403,832			403,034			401,850			406,454			406,062
Total liabilities and stockholders' equity	$	4,383,100		$	3,441,709		$	3,421,769		$	3,543,561		$	3,527,489

Simmons First National Corporation													SFNC
Consolidated Average Quarter-to-Date Balance Sheets
For the Quarters Ended	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31
(Unaudited)	2013			2013			2013			2013			2012
(in thousands)
ASSETS
Cash and non-interest bearing balances due from banks	$	50,473		$	39,067		$	41,030		$	42,334		$	43,691
Interest bearing balances due from banks		428,551			365,504			527,787			560,759			490,532
Federal funds sold		2,616			3,719			1,922			8,487			8,931
Cash and cash equivalents		481,640			408,290			570,739			611,580			543,154
Investment securities - held-to-maturity		657,736			567,579			511,008			497,152			511,203
Investment securities - available-for-sale		220,292			178,351			182,227			191,981			194,815
Mortgage loans held for sale		6,666			12,171			14,154			19,442			17,804
Assets held in trading accounts		8,881			8,731			8,292			8,525			7,701
Loans:
Legacy loans		1,734,469			1,705,204			1,616,036			1,588,299			1,633,710
Allowance for loan losses		(27,806	)		(27,735	)		(28,219	)		(27,999	)		(28,660	)
Loans acquired, not covered by FDIC loss share
(net of discount)		261,577			61,372			72,663			80,755			82,764
Loans acquired, covered by FDIC loss share (net of discount)		145,742			156,392			172,415			196,190			218,135
Net loans		2,113,982			1,895,233			1,832,895			1,837,245			1,905,949
FDIC indemnification asset		57,587			65,478			70,442			74,205			66,994
Premises and equipment		87,310			88,044			88,210			87,571			87,784
Premises held for sale		212			-			-			-			-
Foreclosed assets not covered by FDIC loss share		50,680			27,368			29,399			32,102			34,883
Foreclosed assets covered by FDIC loss share		22,529			22,392			25,603			27,812			29,779
Interest receivable		15,707			13,739			12,524			13,370			15,154
Bank owned life insurance		60,209			59,878			59,523			52,706			51,864
Goodwill		60,804			60,605			60,605			60,605			60,605
Other intangible assets		5,526			3,439			3,554			3,693			2,955
Other assets		33,324			12,122			13,435			20,827			3,574
Total assets	$	3,883,085		$	3,423,420		$	3,482,610		$	3,538,816		$	3,534,218

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts	$	665,644		$	559,461		$	560,804		$	567,588		$	570,800
Interest bearing transaction accounts and savings deposits		1,620,244			1,444,058			1,456,258			1,446,533			1,405,956
Time deposits less than $100,000		517,603			461,101			475,428			494,196			523,050
Time deposits greater than $100,000		409,361			358,307			359,155			364,496			380,843
Total deposits		3,212,852			2,822,927			2,851,645			2,872,813			2,880,649
Federal funds purchased and securities sold
under agreements to repurchase		98,359			67,924			89,879			118,131			101,815
Other borrowings		108,693			75,704			80,090			83,872			89,617
Subordinated debentures		20,620			20,620			20,620			20,620			20,620
Accrued interest and other liabilities		33,117			31,867			32,146			34,486			33,227
Total liabilities		3,473,641			3,019,042			3,074,380			3,129,922			3,125,928
Total stockholders' equity		409,444			404,378			408,230			408,894			408,290
Total liabilities and stockholders' equity	$	3,883,085		$	3,423,420		$	3,482,610		$	3,538,816		$	3,534,218

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)	2013			2013			2013			2013			2012
(in thousands, except per share data)
INTEREST INCOME
Legacy loans	$	22,463		$	22,332		$	21,207		$	22,590		$	23,231
Loans acquired		16,151			8,283			7,864			7,281			7,440
Federal funds sold		5			6			5			3			4
Investment securities		3,951			3,428			3,019			2,902			3,106
Mortgage loans held for sale		72			122			118			155			149
Assets held in trading accounts		6			6			6			11			11
Interest bearing balances due from banks		251			234			352			290			301
TOTAL INTEREST INCOME		42,899			34,411			32,571			33,232			34,242
INTEREST EXPENSE
Time deposits		1,479			1,392			1,479			1,588			1,807
Other deposits		646			601			603			611			652
Federal funds purchased and securities
sold under agreements to repurchase		55			46			53			65			65
Other borrowings		929			646			692			734			948
Subordinated debentures		161			162			162			159			163
TOTAL INTEREST EXPENSE		3,270			2,847			2,989			3,157			3,635
NET INTEREST INCOME		39,629			31,564			29,582			30,075			30,607
Provision for loan losses		1,084			1,081			1,034			919			1,295
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES		38,545			30,483			28,548			29,156			29,312
NON-INTEREST INCOME
Trust income		1,608			1,448			1,342			1,444			1,484
Service charges on deposit accounts		5,497			4,603			4,474			4,241			4,645
Other service charges and fees		1,164			728			791			775			747
Mortgage lending income		916			1,122			1,338			1,216			1,553
Investment banking income		421			240			696			454			337
Credit card fees		4,592			4,400			4,341			4,039			4,655
Bank owned life insurance income		347			328			366			278			385
Gain on sale of securities, net		42			-			(193	)		-			2
Gain on FDIC-assisted transactions		-			-			-			-			2,291
Net (loss) gain on assets covered by FDIC loss share agreements		(7,988	)		(3,443	)		(2,615	)		(2,142	)		(2,286	)
Other income		1,118			887			733			1,008			930
TOTAL NON-INTEREST INCOME		7,717			10,313			11,273			11,313			14,743
NON-INTEREST EXPENSE
Salaries and employee benefits		19,933			17,701			17,937			18,507			17,674
Occupancy expense, net		2,544			2,485			2,450			2,555			2,311
Furniture and equipment expense		2,257			1,613			2,030			1,723			1,835
Other real estate and foreclosure expense		562			385			59			331			311
Deposit insurance		620			595			492			775			614
Merger related costs		6,413			190			(467	)		240			1,081
Other operating expenses		9,349			7,934			7,818			7,781			8,340
TOTAL NON-INTEREST EXPENSE		41,678			30,903			30,319			31,912			32,166
NET INCOME BEFORE INCOME TAXES		4,584			9,893			9,502			8,557			11,889
Provision for income taxes		798			2,961			2,926			2,620			3,856
NET INCOME	$	3,786		$	6,932		$	6,576		$	5,937		$	8,033
BASIC EARNINGS PER SHARE	$	0.23		$	0.43		$	0.40		$	0.36		$	0.48
DILUTED EARNINGS PER SHARE	$	0.23		$	0.43		$	0.40		$	0.36		$	0.48

Simmons First National Corporation													SFNC
Consolidated Statements of Income - Year-to-Date
For the Quarters Ended	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31
(Unaudited)	2013			2013			2013			2013			2012
(in thousands, except per share data)
INTEREST INCOME
Legacy loans	$	88,594		$	66,129		$	43,797		$	22,590		$	91,053
Loans acquired		39,577			23,428			15,145			7,281			23,448
Federal funds sold		19			14			8			3			7
Investment securities		13,300			9,349			5,921			2,902			12,721
Mortgage loans held for sale		467			395			273			155			637
Assets held in trading accounts		29			23			17			11			48
Interest bearing balances due from banks		1,127			875			642			290			1,220
TOTAL INTEREST INCOME		143,113			100,213			65,803			33,232			129,134
INTEREST EXPENSE
Time deposits		5,938			4,460			3,067			1,588			7,943
Other deposits		2,461			1,814			1,214			611			2,682
Federal funds purchased and securities
sold under agreements to repurchase		219			165			118			65			310
Other borrowings		3,001			2,072			1,426			734			3,354
Subordinated debentures		644			483			321			159			1,328
TOTAL INTEREST EXPENSE		12,263			8,994			6,146			3,157			15,617
NET INTEREST INCOME		130,850			91,219			59,657			30,075			113,517
Provision for loan losses		4,118			3,034			1,953			919			4,140
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES		126,732			88,185			57,704			29,156			109,377
NON-INTEREST INCOME
Trust income		5,842			4,234			2,786			1,444			5,473
Service charges on deposit accounts		18,815			13,318			8,715			4,241			16,808
Other service charges and fees		3,458			2,294			1,566			775			2,961
Mortgage lending income		4,592			3,677			2,554			1,216			5,997
Investment banking income		1,811			1,390			1,150			454			2,038
Credit card fees		17,372			12,779			8,380			4,039			17,045
Bank owned life insurance income		1,319			974			644			278			1,463
Gain on sale of securities, net		(151	)		(193	)		(193	)		-			2
Gain on FDIC-assisted transactions		-			-			-			-			3,411
Net (loss) gain on assets covered by FDIC loss share agreements		(16,188	)		(8,200	)		(4,757	)		(2,142	)		(9,793	)
Other income		3,746			2,626			1,741			1,008			2,966
TOTAL NON-INTEREST INCOME		40,616			32,899			22,586			11,313			48,371
NON-INTEREST EXPENSE
Salaries and employee benefits		74,078			54,146			36,444			18,507			66,999
Occupancy expense, net		10,034			7,490			5,005			2,555			8,603
Furniture and equipment expense		7,623			5,367			3,753			1,723			6,882
Other real estate and foreclosure expense		1,337			775			390			331			992
Deposit insurance		2,482			1,862			1,267			775			2,086
Merger related costs		6,376			(37	)		(227	)		240			1,896
Other operating expenses		32,882			23,529			15,599			7,781			30,275
TOTAL NON-INTEREST EXPENSE		134,812			93,132			62,231			31,912			117,733
NET INCOME BEFORE INCOME TAXES		32,536			27,952			18,059			8,557			40,015
Provision for income taxes		9,305			8,507			5,546			2,620			12,331
NET INCOME	$	23,231		$	19,445		$	12,513		$	5,937		$	27,684
BASIC EARNINGS PER SHARE	$	1.42		$	1.19		$	0.76		$	0.36		$	1.64
DILUTED EARNINGS PER SHARE	$	1.42		$	1.19		$	0.76		$	0.36		$	1.64

Simmons First National Corporation													SFNC
Consolidated Risk-Based Capital
For the Quarters Ended	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31
(Unaudited)	2013			2013			2013			2013			2012
(in thousands)
Tier 1 capital
Stockholders' equity	$	403,832		$	403,034		$	401,850		$	406,454		$	406,062
Trust preferred securities, net allowable		20,000			20,000			20,000			20,000			20,000
Disallowed intangible assets, net of deferred tax		(75,501	)		(49,727	)		(48,091	)		(48,529	)		(48,966	)
Unrealized gain on AFS securities		3,002			2,601			2,410			(45	)		(257	)

Total Tier 1 capital		351,333			375,908			376,169			377,880			376,839

Tier 2 capital
Qualifying unrealized gain on AFS equity securities		45			40			35			28			19
Qualifying allowance for loan losses		28,967			25,633			24,818			24,129			24,743

Total Tier 2 capital		29,012			25,673			24,853			24,157			24,762

Total risk-based capital	$	380,345		$	401,581		$	401,022		$	402,037		$	401,601

Risk weighted assets	$	2,697,630		$	2,047,198		$	1,981,341		$	1,925,199		$	1,974,800

Adjusted average assets for leverage ratio	$	3,811,793		$	3,378,676		$	3,434,844		$	3,490,102		$	3,484,504

Ratios at end of quarter
Equity to assets		9.21	%		11.71	%		11.74	%		11.47	%		11.51	%
Tangible common equity to tangible assets		7.23	%		9.98	%		10.06	%		9.84	%		9.87	%
Tier 1 leverage ratio		9.22	%		11.13	%		10.95	%		10.83	%		10.81	%
Tier 1 risk-based capital ratio		13.02	%		18.36	%		18.99	%		19.63	%		19.08	%
Total risk-based capital ratio		14.10	%		19.62	%		20.24	%		20.88	%		20.34	%

Simmons First National Corporation									SFNC
Consolidated Loans and Investments
For the Quarters Ended	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31
(Unaudited)	2013		2013		2013		2013		2012
(in thousands)
Legacy Loan Portfolio - End of Period (1)
Consumer
Credit cards	$	184,935	$	177,463	$	173,536	$	171,599	$	185,536
Student loans		25,906		28,392		30,106		31,835		34,145
Other consumer		98,851		101,399		103,765		102,297		105,319
Total consumer		309,692		307,254		307,407		305,731		325,000
Real Estate
Construction		146,458		161,024		142,902		136,099		138,132
Single-family residential		392,285		375,703		364,239		355,479		356,907
Other commercial		626,333		602,463		572,110		569,686		568,166
Total real estate		1,165,076		1,139,190		1,079,251		1,061,264		1,063,205
Commercial
Commercial		164,329		154,508		152,122		150,427		141,336
Agricultural		98,886		135,633		107,113		68,028		93,805
Total commercial		263,215		290,141		259,235		218,455		235,141
Other		4,655		4,576		4,502		3,627		5,167
Total Loans	$	1,742,638	$	1,741,161	$	1,650,395	$	1,589,077	$	1,628,513

(1) Excludes all acquired loans, including those covered by FDIC loss share agreements.

Investment Securities - End of Period
Held-to-Maturity
U.S. Government agencies	$	395,198	$	313,052	$	313,050	$	288,480	$	288,098
Mortgage-backed securities		34,425		41		43		45		49
State and political subdivisions		315,445		268,055		241,751		199,368		207,374
Other securities		620		620		620		620		620
Total held-to-maturity		745,688		581,768		555,464		488,513		496,141
Available-for-Sale
U.S. Treasury		3,985		-		-		-		-
U.S. Government agencies		178,217		163,127		159,390		159,846		152,481
Mortgage-backed securities		1,891		1,994		2,078		15,891		20,634
State and political subdivisions		7,861		1,263		1,262		1,417		2,988
FHLB stock		6,002		5,085		5,353		5,325		5,498
Other securities		14,321		8,468		9,448		9,686		9,741
Total available-for-sale		212,277		179,937		177,531		192,165		191,342
Total investment securities	$	957,965	$	761,705	$	732,995	$	680,678	$	687,483
Fair value - HTM investment securities	$	731,705	$	570,703	$	543,154	$	491,556	$	500,578

Investment Securities - QTD Average
Taxable securities	$	583,389	$	490,801	$	478,946	$	485,711	$	495,917
Tax exempt securities		294,639		255,129		214,289		203,422		210,101
Total investment securities - QTD average	$	878,028	$	745,930	$	693,235	$	689,133	$	706,018

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)	2013			2013			2013			2013			2012
(in thousands)
Allowance for Loan Losses
Balance, beginning of quarter	$	27,533		$	27,398		$	27,735		$	27,882		$	28,145
Loans charged off
Credit cards		841			770			743			909			884
Other consumer		428			449			310			374			362
Real estate		255			247			887			239			705
Commercial		133			20			133			96			163
Total loans charged off		1,657			1,486			2,073			1,618			2,114

Recoveries of loans previously charged off
Credit cards		226			235			204			236			194
Other consumer		166			114			116			195			177
Real estate		78			151			295			68			144
Commercial		12			40			87			53			41
Total recoveries		482			540			702			552			556
Net loans charged off		1,175			946			1,371			1,066			1,558
Provision for loan losses		1,084			1,081			1,034			919			1,295
Balance, end of quarter	$	27,442		$	27,533		$	27,398		$	27,735		$	27,882

Non-performing assets (1) (2)
Non-performing loans
Nonaccrual loans
Real estate	$	4,799		$	4,157		$	4,327		$	6,963		$	7,135
Commercial		495			525			526			602			618
Consumer		967			1,293			1,410			1,203			1,370
Total nonaccrual loans		6,261			5,975			6,263			8,768			9,123
Loans past due 90 days or more
Government guaranteed student loans		2,264			2,966			2,254			2,283			2,234
Other loans		687			725			879			661			681
Total loans past due 90 days or more		2,951			3,691			3,133			2,944			2,915
Total non-performing loans		9,212			9,666			9,396			11,712			12,038
Other non-performing assets
Foreclosed assets held for sale		19,361			20,493			21,804			21,253			21,556
Acquired foreclosed assets held for sale, not covered
by FDIC loss share agreements		45,459			5,710			8,586			9,461			11,796
Other non-performing assets		75			60			80			238			221
Total other non-performing assets		64,895			26,263			30,470			30,952			33,573
Total non-performing assets	$	74,107		$	35,929		$	39,866		$	42,664		$	45,611
Performing TDRs (troubled debt restructurings)	$	9,497		$	9,584		$	10,473		$	10,745		$	11,015

Ratios (1) (2)
Allowance for loan losses to total loans		1.57	%		1.58	%		1.66	%		1.75	%		1.71	%
Allowance for loan losses to non-performing loans		298	%		285	%		292	%		237	%		232	%
Non-performing loans to total loans		0.53	%		0.56	%		0.57	%		0.74	%		0.74	%
Non-performing assets (including performing TDRs)
to total assets		1.91	%		1.32	%		1.47	%		1.51	%		1.61	%
Non-performing assets to total assets		1.69	%		1.04	%		1.17	%		1.20	%		1.29	%
Non-performing assets to total assets
(excluding Gov't guaranteed student loans)		1.64	%		0.96	%		1.10	%		1.14	%		1.23	%
Annualized net charge offs to total loans		0.27	%		0.22	%		0.34	%		0.27	%		0.38	%
Annualized net credit card charge offs to
total credit card loans		1.31	%		1.21	%		1.25	%		1.53	%		1.54	%
Annualized net charge offs to total loans
(excluding credit cards)		0.14	%		0.11	%		0.23	%		0.11	%		0.24	%
Past due loans >30 days (excluding nonaccrual)		0.57	%		0.62	%		0.54	%		0.64	%		0.63	%
Past due loans >30 days (excluding nonaccrual)
(excluding Gov't guaranteed student loans)		0.41	%		0.36	%		0.35	%		0.40	%		0.44	%

(1) Excludes all acquired loans, including those covered by FDIC loss share agreements, except for their inclusion in total assets.
(2) Excludes acquired foreclosed assets covered by FDIC loss share agreements, except for their inclusion in total assets.

Simmons First National Corporation				SFNC
Consolidated Loans and Credit Coverage (non-GAAP)
For the Quarters Ended	Dec 31			Dec 31
(Unaudited)	2013			2012
(in thousands)
LOANS
Legacy loans	$	1,742,638		$	1,628,513
Allowance for loan losses		(27,442	)		(27,882	)
Legacy loans (net of allowance)		1,715,196			1,600,631
Loans acquired, not covered by FDIC loss share		554,242			101,713
Credit discount		(38,598	)		(18,949	)
Loans acquired, not covered (net of discount)		515,644			82,764
Loans acquired, covered by FDIC loss share		209,459			303,932
Credit discount		(62,806	)		(93,090	)
Loans acquired, covered (net of discount)		146,653			210,842
Net loans	$	2,377,493		$	1,894,237

Loan Coverage Ratios
Allowance for loan losses to legacy loans		1.57	%		1.71	%

Discount for credit losses on loans acquired, not covered,
to total loans acquired, not covered, plus discount for
credit losses on loans acquired, not covered (non-GAAP)		6.96	%		18.63	%

Discount for credit losses on loans acquired, covered,
to total loans acquired, covered, plus discount for
credit losses on loans acquired, covered (non-GAAP)		29.98	%		30.63	%

Total allowance and credit coverage (non-GAAP)		5.14	%		6.88	%

Simmons First National Corporation													SFNC
Consolidated - Net Interest Income Analysis
For the Quarters Ended	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31
(Unaudited)	2013			2013			2013			2013			2012

ASSETS

Earning Assets
Interest bearing balances due from banks		0.23	%		0.25	%		0.27	%		0.21	%		0.24	%
Investment securities		2.44	%		2.52	%		2.37	%		2.33	%		2.39	%
Mortgage loans held for sale		4.29	%		3.98	%		3.34	%		3.23	%		3.33	%
Assets held in trading accounts		0.27	%		0.27	%		0.29	%		0.52	%		0.57	%
Loans, including acquired loans		7.16	%		6.32	%		6.27	%		6.50	%		6.31	%
Total interest earning assets		5.08	%		4.63	%		4.35	%		4.41	%		4.45	%

LIABILITIES

Interest bearing liabilities
Interest bearing transaction and
savings accounts		0.16	%		0.17	%		0.17	%		0.17	%		0.18	%
Time deposits		0.63	%		0.67	%		0.71	%		0.75	%		0.80	%
Total interest bearing deposits		0.33	%		0.35	%		0.36	%		0.39	%		0.42	%
Federal funds purchased and securities
sold under agreement to repurchase		0.22	%		0.27	%		0.24	%		0.22	%		0.25	%
Other borrowings		3.39	%		3.39	%		3.47	%		3.55	%		4.21	%
Subordinated debentures		3.10	%		3.12	%		3.15	%		3.13	%		3.14	%
Total interest bearing liabilities		0.47	%		0.47	%		0.48	%		0.51	%		0.57	%

NET INTEREST MARGIN/SPREAD

Net interest spread		4.61	%		4.16	%		3.87	%		3.90	%		3.88	%
Net interest margin - quarter-to-date		4.70	%		4.27	%		3.96	%		4.01	%		3.99	%
Net interest margin - year-to-date		4.21	%		4.08	%		3.98	%		4.01	%		3.93	%

Simmons First National Corporation													SFNC
Consolidated - Selected Financial Data
For the Quarters Ended	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31
(Unaudited)	2013			2013			2013			2013			2012
($ in thousands, except share data)
QUARTER-TO-DATE
Diluted earnings per share	$	0.23		$	0.43		$	0.40		$	0.36		$	0.48
Core earnings (excludes nonrecurring items) (non-GAAP)		7,749			7,371			6,409			6,083			7,404
Diluted core earnings per share (non-GAAP)		0.48			0.45			0.39			0.37			0.44
Cash dividends declared per common share		0.21			0.21			0.21			0.21			0.20
Cash dividends declared - amount		3,403			3,401			3,434			3,469			3,323
Return on average stockholders' equity		3.67	%		6.80	%		6.46	%		5.89	%		7.83	%
Return on tangible equity		4.51	%		8.18	%		7.76	%		7.09	%		9.36	%
Return on average assets		0.39	%		0.80	%		0.76	%		0.68	%		0.90	%
Net interest margin (FTE)		4.70	%		4.27	%		3.96	%		4.01	%		3.99	%
FTE adjustment - investments		1,442			1,313			1,083			1,062			1,134
FTE adjustment - loans		17			11			12			11			11
Amortization of intangibles		192			135			137			137			126
Amortization of intangibles, net of taxes		117			82			83			83			77
Average shares outstanding		16,210,480			16,220,199			16,414,893			16,516,438			16,624,637
Average earning assets		3,466,530			3,059,023			3,106,504			3,151,590			3,165,595
Average interest bearing liabilities		2,774,880			2,427,714			2,481,430			2,527,848			2,521,901

YEAR-TO-DATE
Diluted earnings per share	$	1.42		$	1.19		$	0.76		$	0.36		$	1.64
Core earnings (excludes nonrecurring items) (non-GAAP)		27,612			19,863			12,492			6,083			26,870
Diluted core earnings per share (non-GAAP)		1.69			1.21			0.76			0.37			1.59
Cash dividends declared per common share		0.84			0.63			0.42			0.21			0.80
Cash dividends declared - amount		13,707			10,304			6,903			3,469			13,496
Return on average stockholders' equity		5.33	%		6.39	%		6.18	%		5.89	%		6.77	%
Return on tangible equity		6.36	%		7.68	%		7.43	%		7.09	%		8.05	%
Return on average assets		0.64	%		0.75	%		0.72	%		0.68	%		0.83	%
Net interest margin (FTE)		4.21	%		4.08	%		3.98	%		4.01	%		3.93	%
FTE adjustment - investments		4,900			3,458			2,145			1,062			4,660
FTE adjustment - loans		51			34			23			11			45
Amortization of intangibles		601			409			274			137			348
Amortization of intangibles, net of taxes		365			248			166			83			212
Average shares outstanding		16,339,335			16,382,758			16,465,385			16,516,438			16,908,904
Average diluted shares outstanding		16,352,167			16,388,393			16,468,814			16,520,398			16,911,363
Average earning assets		3,224,094			3,105,706			3,129,048			3,151,590			3,008,840
Average interest bearing liabilities		2,551,653			2,477,899			2,503,992			2,527,848			2,378,748

END OF PERIOD
Book value per share	$	24.89		$	24.88		$	24.67		$	24.62		$	24.55
Tangible book value per share		19.10			20.80			20.74			20.73			20.66
Shares outstanding		16,226,256			16,198,964			16,289,239			16,509,666			16,542,778
Full-time equivalent employees		1,343			1,097			1,114			1,112			1,068
Total number of ATM's		157			106			110			110			110
Total number of financial centers		131			87			92			92			92
Parent company only - investment in subsidiaries		452,688			371,531			369,965			370,728			368,847
Parent company only - intangible assets		133			133			133			133			133

Simmons First National Corporation													SFNC
Consolidated - Reconciliation of Core Earnings (non-GAAP)
For the Quarters Ended	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31
(Unaudited)	2013			2013			2013			2013			2012
(in thousands, except per share data)
QUARTER-TO-DATE
Net Income	$	3,786		$	6,932		$	6,576		$	5,937		$	8,033
Nonrecurring items
Gain on FDIC assisted transactions		-			-			-			-			(2,291	)
Merger related costs		6,413			190			(467	)		240			1,081
Loss on sale of securities		-			-			193			-			-
FHLB prepayment penalties		-			-			-			-			175
Branch right sizing		108			533			-			-			-
Tax effect		(2,558	)		(284	)		107			(94	)		406
Net nonrecurring items		3,963			439			(167	)		146			(629	)
Core earnings (non-GAAP)	$	7,749		$	7,371		$	6,409		$	6,083		$	7,404

Diluted earnings per share	$	0.23		$	0.43		$	0.40		$	0.36		$	0.48
Nonrecurring items
Gain on FDIC assisted transactions		-			-			-			-			(0.14	)
Merger related costs		0.40			0.01			(0.03	)		0.01			0.07
Loss on sale of securities		-			-			0.01			-			-
FHLB prepayment penalties		-			-			-			-			0.01
Branch right sizing		0.01			0.03			-			-			-
Tax effect		(0.16	)		(0.02	)		0.01			-			0.02
Net nonrecurring items		0.25			0.02			(0.01	)		0.01			(0.04	)
Diluted core earnings per share (non-GAAP)	$	0.48		$	0.45		$	0.39		$	0.37		$	0.44

YEAR-TO-DATE
Net Income	$	23,231		$	19,445		$	12,513		$	5,937		$	27,684
Nonrecurring items
Gain on FDIC assisted transactions		-			-			-			-			(3,411	)
Merger related costs		6,376			(37	)		(227	)		240			1,896
Loss on sale of securities		193			193			193			-			-
FHLB prepayment penalties		-			-			-			-			175
Branch right sizing		641			533			-			-			-
Tax effect		(2,829	)		(271	)		13			(94	)		526
Net nonrecurring items		4,381			418			(21	)		146			(814	)
Core earnings (non-GAAP)	$	27,612		$	19,863		$	12,492		$	6,083		$	26,870

Diluted earnings per share	$	1.42		$	1.19		$	0.76		$	0.36		$	1.64
Nonrecurring items
Gain on FDIC assisted transactions		-			-			-			-			(0.21	)
Merger related costs		0.39			(0.01	)		(0.02	)		0.01			0.12
Loss on sale of securities		0.01			0.01			0.01			-			-
FHLB prepayment penalties		-			-			-			-			0.01
Branch right sizing		0.04			0.03			-			-			-
Tax effect		(0.17	)		(0.01	)		0.01			-			0.03
Net nonrecurring items		0.27			0.02			-			0.01			(0.05	)
Diluted core earnings per share (non-GAAP)	$	1.69		$	1.21		$	0.76		$	0.37		$	1.59

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