Exhibit 99.1

 

 

 

 

 

 

FOR IMMEDIATE RELEASE:

October 23, 2014

 

SIMMONS FIRST ANNOUNCES 45% INCREASE IN CORE EARNINGS

 

Pine Bluff, AR – Simmons First National Corporation (NASDAQ-GS: SFNC) today announced record core earnings of $10.7 million for the third quarter of 2014, an increase of $3.3 million, or 45.0%, compared to the same quarter last year. Diluted core earnings per share were a record $0.63, an increase of $0.18, or 40.0%. Core earnings exclude $1.9 million in net after-tax expenses. Including the non-core items, net income was $8.8 million and diluted earnings per share were $0.52.

 

Year-to-date core earnings were $27.3 million, an increase of $7.5 million, or 37.6%, compared to the same period of 2013. Year-to-date diluted core earnings per share were $1.65, an increase of $0.44, or 36.4%. Year-to-date net income was $23.0 million, or $1.39 diluted earnings per share.

 

“We are pleased with the financial results from another active quarter. We closed our acquisition of Delta Trust & Bank at the end of August and have our systems conversion scheduled tomorrow. We completed our legacy charter consolidation into Simmons Bank, and again reported record core earnings and record core earnings per share,” commented George A. Makris, Jr., Chairman and CEO.

 

Loans

 

Total loans, including those acquired, were $2.8 billion at September 30, 2014, an increase of $799 million, or 40.8%, compared to the same period in 2013. Acquired loans increased by $577 million, net of discounts, while legacy loans (all loans excluding acquired loans) grew $222 million, or 12.8%. “We remain encouraged by the consistent double digit legacy loan growth we have seen this year. We continue to achieve nice loan growth in virtually every market we serve, specifically in St. Louis, Wichita, Central Arkansas and in our national equipment finance program,” added Makris.

 

Deposits

 

At September 30, 2014, total deposits were $3.9 billion, an increase of $1.1 billion, or 37.7%, compared to the same period in 2013. Total non-time deposits totaled $2.9 billion, or 73% of total deposits.

 

Net Interest Income

 

The Company’s net interest income for the third quarter of 2014 was $41.8 million, an increase of $10.2 million, or 32.3%, from the same period of 2013. This increase was driven by growth in the legacy loan portfolio and earning assets acquired through the Metropolitan and Delta Trust transactions. Net interest margin was 4.36% for the quarter ended September 30, 2014, a 9 basis point increase from the same quarter of 2013. 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								Nine Months Ended
(In thousands)		September 30								September 30
		2014				2013				2014				2013
Impact on net interest income		$	4,974			$	4,005			$	18,216			$	10,102
Non-interest income			(3,724	)			(3,844	)			(17,570	)			(9,734	)
Net impact to pre-tax income		$	1,250			$	161			$	646			$	368

 

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 $19.3 million and the remaining adjustment to the indemnification assets that will reduce non-interest income is $10.5 million. Of the remaining adjustments, we expect to recognize $3.6 million of interest income and a $2.9 million reduction of non-interest income, for a net increase to pre-tax income of approximately $0.7 million during the remainder of 2014. 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 third quarter was $16.0 million, an increase of $5.7 million compared to the third quarter of 2013. Included in non-interest income were $0.9 million in gains from the sale of branches that were closed as part the integration of Metropolitan and $0.8 million from the recovery of Metropolitan loans that were charged off prior to acquisition. The remaining increase in non-interest income was primarily due to additional trust income, service charge and fee income and mortgage lending income resulting from the Metropolitan and Delta Trust acquisitions.

 

Non-Interest Expense

 

Non-interest expense for the second quarter of 2014 was $44.4 million, an increase of $13.5 million compared to the same period in 2013. Due to the closing of the Delta Trust acquisition during the quarter, merger related costs for the quarter exceeded those of the same period last year by $3.4 million. Also included in the quarter were $196 thousand of charter consolidation costs from the systems conversion of the three remaining subsidiary banks that were merged into Simmons First National Bank in August. OREO expense increase by $1.5 million, primarily from the write-down of OREO properties to updated appraised values and from property taxes on acquired OREO. The remaining increase in non-interest expense was primarily due to incremental operating expenses of acquired Metropolitan and Delta Trust locations.

 

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 September 30, 2014, acquired loans covered by loss share were carried at $118 million, OREO covered by loss share was carried at $15 million and the FDIC loss share indemnification asset was carried at $26 million. Acquired loans and OREO not covered by loss share were carried at $676 million and $38 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 September 30, 2014, the allowance for loan losses was $27.1 million and the loan credit mark was $93.9 million, for a total of $121.0 million of coverage. This equates to a total coverage ratio of 4.2% of gross loans. The ratio of credit mark to acquired loans was 10.6%.” The Company's allowance for loan losses at September 30, 2014, was 1.38% of total loans and 227% of non-performing loans. Non-performing loans as a percent of total loans were 0.61%. Non-performing assets decreased $1.9 million from the previous quarter to $62.8 million. Through the third quarter of 2014, the year-to-date annualized net charge-off ratio, excluding credit cards, was 0.19%, and the year-to-date annualized credit card charge-off ratio was 1.22%.

 

Capital

 

At September 30, 2014, stockholders' equity was $483 million, book value per share was $26.82 and tangible book value per share was $19.72. The Company's ratio of stockholders' equity to total assets was 10.3% and its ratio of tangible common equity to tangible assets was 7.8%.

 

Simmons First National Corporation

 

Simmons First National Corporation is an Arkansas based financial holding company with total assets of $4.7 billion and conducting financial operations throughout Arkansas, Kansas and Missouri. 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, October 23, 2014. 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 17056028. 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		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2014				2014				2014				2013				2013
(in thousands)
ASSETS
Cash and non-interest bearing balances due from banks		$	73,554			$	44,805			$	48,018			$	69,827			$	37,752
Interest bearing balances due from banks			210,742				377,855				474,118				469,553				320,368
Federal funds sold			10,000				-				-				-				18,365
Cash and cash equivalents			294,296				422,660				522,136				539,380				376,485
Investment securities - held-to-maturity			822,730				799,963				776,615				745,688				581,768
Investment securities - available-for-sale			317,473				270,336				264,974				212,277				179,937
Mortgage loans held for sale			22,003				20,409				16,717				9,494				10,605
Assets held in trading accounts			6,819				6,881				6,865				8,978				8,744
Loans:
Legacy loans			1,963,378				1,868,842				1,779,609				1,742,638				1,741,161
Allowance for loan losses			(27,076	)			(27,530	)			(26,983	)			(27,442	)			(27,533	)
Loans acquired, not covered by FDIC loss share
(net of discount)			676,056				398,967				450,289				515,644				68,133
Loans acquired, covered by FDIC loss share (net of discount)			118,158				121,524				137,879				146,653				148,884
Net loans			2,730,516				2,361,803				2,340,794				2,377,493				1,930,645
FDIC indemnification asset			25,694				30,508				39,239				48,791				61,500
Premises and equipment			115,639				113,541				111,888				119,614				87,065
Premises held for sale			15,856				14,145				23,779				19,466				-
Foreclosed assets not covered by FDIC loss share			50,770				53,342				57,476				64,820				26,203
Foreclosed assets covered by FDIC loss share			15,212				16,951				18,171				20,585				23,260
Interest receivable			18,006				14,254				15,102				15,654				15,635
Bank owned life insurance			75,357				61,115				60,714				60,384				60,040
Goodwill			109,859				78,529				78,529				78,906				60,605
Other intangible assets			17,947				14,094				14,519				14,972				5,420
Other assets			51,682				47,310				49,129				46,598				13,797
Total assets		$	4,689,859			$	4,325,841			$	4,396,647			$	4,383,100			$	3,441,709
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts		$	884,064			$	838,543			$	838,050			$	718,438			$	580,063
Interest bearing transaction accounts and savings deposits			1,984,422				1,784,040				1,793,330				1,862,618				1,453,139
Time deposits less than $100,000			565,957				559,597				589,798				611,729				454,325
Time deposits greater than $100,000			474,472				459,545				485,870				504,782				351,271
Total deposits			3,908,915				3,641,725				3,707,048				3,697,567				2,838,798
Federal funds purchased and securities sold
under agreements to repurchase			112,977				98,226				104,643				107,887				62,311
Other borrowings			123,396				115,602				116,970				117,090				75,987
Subordinated debentures			20,620				20,620				20,620				20,620				20,620
Accrued interest and other liabilities			41,309				35,533				40,694				36,104				40,959
Total liabilities			4,207,217				3,911,706				3,989,975				3,979,268				3,038,675
Stockholders' equity:
Common stock			180				163				163				162				162
Surplus			155,592				90,010				89,274				88,095				87,279
Undivided profits			328,822				325,371				319,354				318,577				318,194
Accumulated other comprehensive income
Unrealized appreciation on AFS securities			(1,952	)			(1,409	)			(2,119	)			(3,002	)			(2,601	)
Total stockholders' equity			482,642				414,135				406,672				403,832				403,034
Total liabilities and stockholders' equity		$	4,689,859			$	4,325,841			$	4,396,647			$	4,383,100			$	3,441,709

 

 

Page 1

Simmons First National Corporation																		SFNC
Consolidated Average Quarter-to-Date Balance Sheets
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2014				2014				2014				2013				2013
(in thousands)
ASSETS
Cash and non-interest bearing balances due from banks		$	50,980			$	44,671			$	68,770			$	50,473			$	39,067
Interest bearing balances due from banks			288,258				456,931				507,936				428,551				365,504
Federal funds sold			6,794				985				385				2,616				3,719
Cash and cash equivalents			346,032				502,587				577,091				481,640				408,290
Investment securities - held-to-maturity			810,085				782,900				749,126				657,736				567,579
Investment securities - available-for-sale			300,927				265,194				223,203				220,292				178,351
Mortgage loans held for sale			24,942				15,299				6,668				6,666				12,171
Assets held in trading accounts			6,841				6,850				7,212				8,881				8,731
Loans:
Legacy loans			1,917,155				1,817,429				1,719,294				1,734,469				1,705,204
Allowance for loan losses			(27,470	)			(27,287	)			(27,771	)			(27,806	)			(27,735	)
Loans acquired, not covered by FDIC loss share
(net of discount)			481,658				418,515				505,031				261,577				61,372
Loans acquired, covered by FDIC loss share (net of discount)			119,372				128,099				142,777				145,742				156,392
Net loans			2,490,715				2,336,756				2,339,331				2,113,982				1,895,233
FDIC indemnification asset			28,311				35,940				46,154				57,587				65,478
Premises and equipment			115,577				112,994				119,626				87,310				88,044
Premises held for sale			12,521				21,142				19,514				212				-
Foreclosed assets not covered by FDIC loss share			51,097				55,304				63,453				50,680				27,368
Foreclosed assets covered by FDIC loss share			16,073				18,330				19,901				22,529				22,392
Interest receivable			15,743				15,076				14,882				15,707				13,739
Bank owned life insurance			63,798				60,895				60,552				60,209				59,878
Goodwill			88,590				78,529				78,901				60,804				60,605
Other intangible assets			15,321				14,299				14,765				5,526				3,439
Other assets			52,234				48,583				45,458				33,324				12,122
Total assets		$	4,438,807			$	4,370,678			$	4,385,837			$	3,883,085			$	3,423,420
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts		$	828,340			$	823,552			$	735,101			$	665,644			$	559,461
Interest bearing transaction accounts and savings deposits			1,869,095				1,810,436				1,854,510				1,620,244				1,444,058
Time deposits less than $100,000			555,837				577,856				601,046				517,603				461,101
Time deposits greater than $100,000			457,489				472,009				495,574				409,361				358,307
Total deposits			3,710,761				3,683,853				3,686,231				3,212,852				2,822,927
Federal funds purchased and securities sold
under agreements to repurchase			108,357				101,537				115,018				98,359				67,924
Other borrowings			117,664				116,082				117,588				108,693				75,704
Subordinated debentures			20,620				20,620				20,620				20,620				20,620
Accrued interest and other liabilities			38,950				34,637				36,967				33,117				31,867
Total liabilities			3,996,352				3,956,729				3,976,424				3,473,641				3,019,042
Total stockholders' equity			442,455				413,949				409,413				409,444				404,378
Total liabilities and stockholders' equity		$	4,438,807			$	4,370,678			$	4,385,837			$	3,883,085			$	3,423,420

 

Page 2

Simmons First National Corporation																		SFNC
Consolidated Statements of Income - Quarter-to-Date
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2014				2014				2014				2013				2013
(in thousands, except per share data)
INTEREST INCOME
Legacy loans		$	23,841			$	22,733			$	21,554			$	22,463			$	22,332
Loans acquired			16,241				15,889				18,577				16,151				8,283
Federal funds sold			12				2				1				5				6
Investment securities			4,717				4,766				4,549				3,951				3,428
Mortgage loans held for sale			269				168				69				72				122
Assets held in trading accounts			3				5				5				6				6
Interest bearing balances due from banks			132				279				279				251				234
TOTAL INTEREST INCOME			45,215				43,842				45,034				42,899				34,411
INTEREST EXPENSE
Time deposits			1,461				1,515				1,577				1,479				1,392
Other deposits			771				720				692				646				601
Federal funds purchased and securities
sold under agreements to repurchase			55				31				53				55				46
Other borrowings			996				988				1,010				929				646
Subordinated debentures			160				160				157				161				162
TOTAL INTEREST EXPENSE			3,443				3,414				3,489				3,270				2,847
NET INTEREST INCOME			41,772				40,428				41,545				39,629				31,564
Provision for loan losses			1,128				1,602				908				1,084				1,081
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES			40,644				38,826				40,637				38,545				30,483
NON-INTEREST INCOME
Trust income			1,838				1,553				1,537				1,608				1,448
Service charges on deposit accounts			6,238				6,792				6,068				5,497				4,603
Other service charges and fees			808				859				823				1,164				728
Mortgage lending income			1,812				1,262				810				916				1,122
Investment banking income			284				154				181				421				240
Credit card fees			5,769				5,801				5,643				4,592				4,400
Bank owned life insurance income			411				377				330				347				328
Gain on sale of securities, net			(18	)			38				-				42				-
Net (loss) gain on assets covered by FDIC loss share agreements			(3,744	)			(6,268	)			(7,370	)			(7,988	)			(3,443	)
Other income			2,637				4,820				1,176				1,118				887
TOTAL NON-INTEREST INCOME			16,035				15,388				9,198				7,717				10,313
NON-INTEREST EXPENSE
Salaries and employee benefits			20,892				20,982				22,464				19,933				17,701
Occupancy expense, net			3,204				3,285				3,890				2,544				2,485
Furniture and equipment expense			2,363				2,215				2,014				2,257				1,613
Other real estate and foreclosure expense			1,864				375				873				562				385
Deposit insurance			877				1,085				668				620				595
Merger related costs			3,628				1,354				1,272				6,413				190
Other operating expenses			11,526				10,546				13,370				9,349				7,934
TOTAL NON-INTEREST EXPENSE			44,354				39,842				44,551				41,678				30,903
NET INCOME BEFORE INCOME TAXES			12,325				14,372				5,284				4,584				9,893
Provision for income taxes			3,537				4,464				932				798				2,961
NET INCOME		$	8,788			$	9,908			$	4,352			$	3,786			$	6,932
BASIC EARNINGS PER SHARE		$	0.52			$	0.61			$	0.27			$	0.23			$	0.43
DILUTED EARNINGS PER SHARE		$	0.52			$	0.60			$	0.27			$	0.23			$	0.43

 

Page 3

Simmons First National Corporation																		SFNC
Consolidated Statements of Income - Year-to-Date
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2014				2014				2014				2013				2013
(in thousands, except per share data)
INTEREST INCOME
Legacy loans		$	68,124			$	44,285			$	21,554			$	88,594			$	66,129
Loans acquired			50,710				34,468				18,577				39,577				23,428
Federal funds sold			16				3				1				19				14
Investment securities			14,032				9,315				4,549				13,300				9,349
Mortgage loans held for sale			506				237				69				467				395
Assets held in trading accounts			13				10				5				29				23
Interest bearing balances due from banks			691				558				279				1,127				875
TOTAL INTEREST INCOME			134,092				88,876				45,034				143,113				100,213
INTEREST EXPENSE
Time deposits			4,552				3,091				1,577				5,938				4,460
Other deposits			2,185				1,414				692				2,461				1,814
Federal funds purchased and securities
sold under agreements to repurchase			194				84				53				219				165
Other borrowings			2,995				1,998				1,010				3,001				2,072
Subordinated debentures			477				317				157				644				483
TOTAL INTEREST EXPENSE			10,403				6,904				3,489				12,263				8,994
NET INTEREST INCOME			123,689				81,972				41,545				130,850				91,219
Provision for loan losses			3,638				2,510				908				4,118				3,034
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES			120,051				79,462				40,637				126,732				88,185
NON-INTEREST INCOME
Trust income			4,929				3,091				1,537				5,842				4,234
Service charges on deposit accounts			19,098				12,860				6,068				18,815				13,318
Other service charges and fees			2,490				1,684				823				3,458				2,294
Mortgage lending income			3,885				2,074				810				4,592				3,677
Investment banking income			620				336				181				1,811				1,390
Credit card fees			17,213				11,444				5,643				17,372				12,779
Bank owned life insurance income			1,117				705				330				1,319				974
Gain on sale of securities, net			20				38				-				(151	)			(193	)
Net (loss) gain on assets covered by FDIC loss share agreements			(17,303	)			(13,639	)			(7,370	)			(16,188	)			(8,200	)
Other income			8,619				5,984				1,176				3,746				2,626
TOTAL NON-INTEREST INCOME			40,688				24,577				9,198				40,616				32,899
NON-INTEREST EXPENSE
Salaries and employee benefits			64,338				43,447				22,464				74,078				54,146
Occupancy expense, net			10,338				7,155				3,890				10,034				7,490
Furniture and equipment expense			6,592				4,229				2,014				7,623				5,367
Other real estate and foreclosure expense			3,112				1,248				873				1,337				775
Deposit insurance			2,630				1,753				668				2,482				1,862
Merger related costs			6,255				2,627				1,272				6,376				(37	)
Other operating expenses			35,492				23,923				13,370				32,882				23,529
TOTAL NON-INTEREST EXPENSE			128,757				84,382				44,551				134,812				93,132
NET INCOME BEFORE INCOME TAXES			31,982				19,657				5,284				32,536				27,952
Provision for income taxes			8,933				5,396				932				9,305				8,507
NET INCOME		$	23,049			$	14,261			$	4,352			$	23,231			$	19,445
BASIC EARNINGS PER SHARE		$	1.40			$	0.88			$	0.27			$	1.42			$	1.19
DILUTED EARNINGS PER SHARE		$	1.39			$	0.87			$	0.27			$	1.42			$	1.19

 

Page 4

Simmons First National Corporation																		SFNC
Consolidated Risk-Based Capital
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2014				2014				2014				2013				2013
($ in thousands)
Tier 1 capital
Stockholders' equity		$	482,642			$	414,135			$	406,672			$	403,832			$	403,034
Trust preferred securities, net allowable			20,000				20,000				20,000				20,000				20,000
Disallowed intangible assets, net of deferred tax			(109,698	)			(74,003	)			(74,477	)			(75,501	)			(49,727	)
Unrealized gain on AFS securities			1,952				1,409				2,119				3,002				2,601
Total Tier 1 capital			394,896				361,541				354,314				351,333				375,908
Tier 2 capital
Qualifying unrealized gain on AFS equity securities			-				47				42				45				40
Qualifying allowance for loan losses			29,167				29,621				28,846				28,967				25,633
Total Tier 2 capital			29,167				29,668				28,888				29,012				25,673
Total risk-based capital		$	424,063			$	391,209			$	383,202			$	380,345			$	401,581
Risk weighted assets		$	3,063,801			$	2,652,474			$	2,651,970			$	2,697,630			$	2,047,198
Adjusted average assets for leverage ratio		$	4,331,488			$	4,299,379			$	4,315,279			$	3,811,793			$	3,378,676
Ratios at end of quarter
Equity to assets			10.29	%			9.57	%			9.25	%			9.21	%			11.71	%
Tangible common equity to tangible assets			7.78	%			7.59	%			7.29	%			7.23	%			9.98	%
Tier 1 leverage ratio			9.12	%			8.41	%			8.21	%			9.22	%			11.13	%
Tier 1 risk-based capital ratio			12.89	%			13.63	%			13.36	%			13.02	%			18.36	%
Total risk-based capital ratio			13.84	%			14.75	%			14.45	%			14.10	%			19.62	%

 

Page 5

Simmons First National Corporation																		SFNC
Consolidated Loans and Investments
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2014				2014				2014				2013				2013
(in thousands)
Legacy Loan Portfolio - End of Period (1)
Consumer
Credit cards		$	175,822			$	176,239			$	172,609			$	184,935			$	177,463
Student loans			-				398				24,415				25,906				28,392
Other consumer			105,508				105,998				104,185				98,851				101,399
Total consumer			281,330				282,635				301,209				309,692				307,254
Real Estate
Construction			163,364				163,412				168,147				146,458				161,024
Single-family residential			436,925				417,187				402,588				392,285				375,703
Other commercial			681,848				653,734				644,772				626,333				602,463
Total real estate			1,282,137				1,234,333				1,215,507				1,165,076				1,139,190
Commercial
Commercial			249,186				233,510				186,303				164,329				154,508
Agricultural			145,157				111,567				72,239				98,886				135,633
Total commercial			394,343				345,077				258,542				263,215				290,141
Other			5,568				6,796				4,351				4,655				4,576
Total Loans		$	1,963,378			$	1,868,841			$	1,779,609			$	1,742,638			$	1,741,161
(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		$	455,827			$	449,201			$	425,616			$	395,198			$	313,052
Mortgage-backed securities			30,954				32,204				33,323				34,425				41
State and political subdivisions			335,329				317,938				317,056				315,445				268,055
Other securities			620				620				620				620				620
Total held-to-maturity			822,730				799,963				776,615				745,688				581,768
Available-for-Sale
U.S. Treasury		$	3,991			$	3,994			$	3,981			$	3,985			$	-
U.S. Government agencies			280,321				238,411				231,949				178,217				163,127
Mortgage-backed securities			32				1,958				1,833				1,891				1,994
State and political subdivisions			8,903				6,920				7,367				7,861				1,263
FHLB stock			5,623				4,966				5,168				6,002				5,085
Other securities			18,603				14,087				14,676				14,321				8,468
Total available-for-sale			317,473				270,336				264,974				212,277				179,937
Total investment securities		$	1,140,203			$	1,070,299			$	1,041,589			$	957,965			$	761,705
Fair value - HTM investment securities		$	825,584			$	802,597			$	771,114			$	731,705			$	570,703
Investment Securities - QTD Average
Taxable securities		$	781,685			$	722,084			$	649,329			$	583,389			$	490,801
Tax exempt securities			329,327				326,010				323,000				294,639				255,129
Total investment securities - QTD average		$	1,111,012			$	1,048,094			$	972,329			$	878,028			$	745,930

 

Page 6

Simmons First National Corporation														SFNC
Consolidated Loans and Credit Coverage
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31
(Unaudited)		2014				2014				2014				2013
($ in thousands)
LOANS
Legacy loans		$	1,963,378			$	1,868,841			$	1,779,609			$	1,742,638
Allowance for loan losses			(27,076	)			(27,530	)			(26,983	)			(27,442	)
Legacy loans (net of allowance)			1,936,302				1,841,311				1,752,626				1,715,196
Loans acquired, not covered by FDIC loss share			733,914				445,515				495,915				566,895
Credit discount			(57,858	)			(46,548	)			(45,626	)			(51,251	)
Loans acquired, not covered (net of discount)			676,056				398,967				450,289				515,644
Loans acquired, covered by FDIC loss share			154,183				163,775				188,755				209,459
Credit discount			(36,025	)			(42,251	)			(50,876	)			(62,806	)
Loans acquired, covered (net of discount)			118,158				121,524				137,879				146,653
Net loans		$	2,730,516			$	2,361,802			$	2,340,794			$	2,377,493
Loan Coverage Ratios
Allowance for loan losses to legacy loans			1.38	%			1.47	%			1.52	%			1.57	%
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			7.88	%			10.45	%			9.20	%			9.04	%
Discount for credit losses on loans acquired, covered,
to total loans acquired, covered, plus discount for
credit losses on loans acquired, covered			23.37	%			25.80	%			26.95	%			29.98	%
Total allowance and credit coverage			4.24	%			4.69	%			5.01	%			5.62	%

 

Page 7

Simmons First National Corporation																		SFNC
Consolidated Allowance and Asset Quality
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2014				2014				2014				2013				2013
($ in thousands)
Allowance for Loan Losses
Balance, beginning of quarter		$	27,530			$	26,983			$	27,442			$	27,533			$	27,398
Loans charged off
Credit cards			788				725				816				841				770
Other consumer			648				426				148				428				449
Real estate			534				1,144				1,035				255				247
Commercial			474				186				82				133				20
Total loans charged off			2,444				2,481				2,081				1,657				1,486
Recoveries of loans previously charged off
Credit cards			190				215				271				226				235
Other consumer			122				133				121				166				114
Real estate			379				1,062				308				78				151
Commercial			171				16				14				12				40
Total recoveries			862				1,426				714				482				540
Net loans charged off			1,582				1,055				1,367				1,175				946
Provision for loan losses			1,128				1,602				908				1,084				1,081
Balance, end of quarter		$	27,076			$	27,530			$	26,983			$	27,442			$	27,533
Non-performing assets (1) (2)
Non-performing loans
Nonaccrual loans
Real estate		$	9,374			$	8,166			$	8,075			$	4,799			$	4,157
Commercial			1,174				1,110				1,054				495				525
Consumer			664				877				883				967				1,293
Total nonaccrual loans			11,212				10,153				10,012				6,261				5,975
Loans past due 90 days or more
Government guaranteed student loans			-				323				1,965				2,264				2,966
Other loans			713				757				517				687				725
Total loans past due 90 days or more			713				1,080				2,482				2,951				3,691
Total non-performing loans			11,925				11,233				12,494				9,212				9,666
Other non-performing assets
Foreclosed assets held for sale			13,167				16,745				17,357				19,361				20,493
Acquired foreclosed assets held for sale, not covered
by FDIC loss share agreements			37,603				36,597				40,119				45,459				5,710
Other non-performing assets			72				80				60				75				60
Total other non-performing assets			50,842				53,422				57,536				64,895				26,263
Total non-performing assets		$	62,767			$	64,655			$	70,030			$	74,107			$	35,929
Performing TDRs (troubled debt restructurings)		$	2,234			$	2,776			$	8,655			$	9,497			$	9,584
Ratios (1) (2)
Allowance for loan losses to total loans			1.38	%			1.47	%			1.52	%			1.57	%			1.58	%
Allowance for loan losses to non-performing loans			227	%			245	%			216	%			298	%			285	%
Non-performing loans to total loans			0.61	%			0.60	%			0.70	%			0.53	%			0.56	%
Non-performing assets (including performing TDRs)
to total assets			1.39	%			1.56	%			1.79	%			1.91	%			1.32	%
Non-performing assets to total assets			1.34	%			1.49	%			1.59	%			1.69	%			1.04	%
Non-performing assets to total assets
(excluding Gov't guaranteed student loans)			1.34	%			1.49	%			1.55	%			1.64	%			0.96	%
Annualized net charge offs to total loans			0.33	%			0.23	%			0.32	%			0.27	%			0.22	%
Annualized net credit card charge offs to
total credit card loans			1.31	%			1.14	%			1.20	%			1.31	%			1.21	%
Annualized net charge offs to total loans
(excluding credit cards)			0.22	%			0.13	%			0.22	%			0.14	%			0.11	%
Past due loans >30 days (excluding nonaccrual)			0.33	%			0.34	%			0.61	%			0.57	%			0.62	%
Past due loans >30 days (excluding nonaccrual)
(excluding Gov't guaranteed student loans)			0.33	%			0.32	%			0.45	%			0.41	%			0.36	%

 

(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.

 

Page 8

Simmons First National Corporation																		SFNC
Consolidated - Net Interest Income Analysis
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2014				2014				2014				2013				2013
ASSETS
Earning Assets
Interest bearing balances due from banks			0.18	%			0.24	%			0.22	%			0.23	%			0.25	%
Investment securities			2.29	%			2.47	%			2.60	%			2.44	%			2.52	%
Mortgage loans held for sale			4.28	%			4.40	%			4.20	%			4.29	%			3.98	%
Assets held in trading accounts			0.17	%			0.29	%			0.28	%			0.27	%			0.27	%
Loans, including acquired loans			6.32	%			6.55	%			6.88	%			7.16	%			6.32	%
Total interest earning assets			4.71	%			4.69	%			4.91	%			5.08	%			4.63	%
LIABILITIES
Interest bearing liabilities
Interest bearing transaction and
savings accounts			0.16	%			0.16	%			0.15	%			0.16	%			0.17	%
Time deposits			0.57	%			0.58	%			0.58	%			0.63	%			0.67	%
Total interest bearing deposits			0.31	%			0.31	%			0.31	%			0.33	%			0.35	%
Federal funds purchased and securities
sold under agreement to repurchase			0.20	%			0.12	%			0.19	%			0.22	%			0.27	%
Other borrowings			3.36	%			3.41	%			3.48	%			3.39	%			3.39	%
Subordinated debentures			3.08	%			3.11	%			3.09	%			3.10	%			3.12	%
Total interest bearing liabilities			0.44	%			0.44	%			0.44	%			0.47	%			0.47	%
NET INTEREST MARGIN/SPREAD
Net interest spread			4.27	%			4.25	%			4.47	%			4.61	%			4.16	%
Net interest margin - quarter-to-date			4.36	%			4.34	%			4.54	%			4.70	%			4.27	%
Net interest margin - year-to-date			4.41	%			4.44	%			4.54	%			4.21	%			4.08	%

 

Page 9

Simmons First National Corporation																		SFNC
Consolidated - Selected Financial Data
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2014				2014				2014				2013				2013
($ in thousands, except share data)
QUARTER-TO-DATE
Diluted earnings per share		$	0.52			$	0.60			$	0.27			$	0.23			$	0.43
Core earnings (excludes nonrecurring items) (non-GAAP)			10,684				9,153				7,482				7,749				7,371
Diluted core earnings per share (non-GAAP)			0.63				0.56				0.46				0.48				0.45
Cash dividends declared per common share			0.22				0.22				0.22				0.21				0.21
Cash dividends declared - amount			3,954				3,589				3,575				3,403				3,401
Return on average stockholders' equity			7.88	%			9.60	%			4.31	%			3.67	%			6.80	%
Return on tangible equity			10.62	%			12.72	%			5.94	%			4.51	%			8.18	%
Return on average assets			0.79	%			0.91	%			0.40	%			0.39	%			0.80	%
Net interest margin (FTE)			4.36	%			4.34	%			4.54	%			4.70	%			4.27	%
FTE adjustment - investments			1,695				1,687				1,682				1,442				1,313
FTE adjustment - loans			7				8				10				17				11
Amortization of intangibles			454				452				453				192				135
Amortization of intangibles, net of taxes			276				275				275				117				82
Average shares outstanding			16,873,504				16,318,003				16,270,149				16,210,480				16,220,199
Average earning assets			3,956,032				3,892,202				3,861,632				3,466,530				3,059,023
Average interest bearing liabilities			3,129,062				3,098,540				3,204,356				2,774,880				2,427,714
YEAR-TO-DATE
Diluted earnings per share		$	1.39			$	0.87			$	0.27			$	1.42			$	1.19
Core earnings (excludes nonrecurring items) (non-GAAP)			27,319				16,635				7,482				27,612				19,863
Diluted core earnings per share (non-GAAP)			1.65				1.02				0.46				1.69				1.21
Cash dividends declared per common share			0.66				0.44				0.22				0.84				0.63
Cash dividends declared - amount			11,118				7,164				3,575				13,707				10,304
Return on average stockholders' equity			7.30	%			6.95	%			4.31	%			5.33	%			6.39	%
Return on tangible equity			9.82	%			9.33	%			5.94	%			6.36	%			7.68	%
Return on average assets			0.70	%			0.65	%			0.40	%			0.64	%			0.75	%
Net interest margin (FTE)			4.41	%			4.44	%			4.54	%			4.21	%			4.08	%
FTE adjustment - investments			5,064				3,369				1,682				4,900				3,458
FTE adjustment - loans			25				18				10				51				34
Amortization of intangibles			1,359				905				453				601				409
Amortization of intangibles, net of taxes			826				550				275				365				248
Average shares outstanding			16,489,429				16,294,208				16,270,149				16,339,335				16,382,758
Average diluted shares outstanding			16,532,689				16,336,901				16,309,868				16,352,167				16,388,393
Average earning assets			3,903,290				3,876,918				3,861,632				3,224,094				3,105,706
Average interest bearing liabilities			3,143,984				3,151,446				3,204,356				2,551,653				2,477,899
END OF PERIOD
Book value per share		$	26.82			$	25.36			$	24.93			$	24.89			$	24.88
Tangible book value per share			19.72				19.69				19.23				19.10				20.80
Shares outstanding			17,992,261				16,331,341				16,311,263				16,226,256				16,198,964
Full-time equivalent employees			1,397				1,281				1,321				1,343				1,097
Total number of ATM's			129				120				120				157				106
Total number of financial centers			113				104				104				131				87
Parent company only - investment in subsidiaries			516,801				449,591				453,067				452,688				371,531
Parent company only - intangible assets			133				133				133				133				133

 

Page 10

Simmons First National Corporation																		SFNC
Consolidated - Reconciliation of Core Earnings (non-GAAP)
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2014				2014				2014				2013				2013
(in thousands, except per share data)
QUARTER-TO-DATE
Net Income		$	8,788			$	9,908			$	4,352			$	3,786			$	6,932
Nonrecurring items
Gain on sale of merchant services			-				(1,000	)			-				-				-
Merger related costs			3,628				1,354				1,272				6,413				190
Branch right sizing			(705	)			(2,011	)			3,878				108				533
Charter consolidation costs			196				414				-				-				-
Tax effect			(1,223	)			488				(2,020	)			(2,558	)			(284	)
Net nonrecurring items			1,896				(755	)			3,130				3,963				439
Core earnings (non-GAAP)		$	10,684			$	9,153			$	7,482			$	7,749			$	7,371
Diluted earnings per share		$	0.52			$	0.60			$	0.27			$	0.23			$	0.43
Nonrecurring items
Gain on sale of merchant services			-				(0.06	)			-				-				-
Merger related costs			0.21				0.08				0.08				0.40				0.01
Branch right sizing			(0.04	)			(0.12	)			0.24				0.01				0.03
Charter consolidation costs			0.01				0.03				-				-				-
Tax effect			(0.07	)			0.03				(0.13	)			(0.16	)			(0.02	)
Net nonrecurring items			0.11				(0.04	)			0.19				0.25				0.02
Diluted core earnings per share (non-GAAP)		$	0.63			$	0.56			$	0.46			$	0.48			$	0.45
YEAR-TO-DATE
Net Income		$	23,049			$	14,261			$	4,352			$	23,231			$	19,445
Nonrecurring items
Gain on sale of merchant services			(1,000	)			(1,000	)			-				-				-
Merger related costs			6,254				2,626				1,272				6,376				(37	)
Loss on sale of securities			-				-				-				193				193
Branch right sizing			1,162				1,867				3,878				641				533
Charter consolidation costs			610				414				-				-				-
Tax effect			(2,745	)			(1,533	)			(2,020	)			(2,829	)			(271	)
Net nonrecurring items			4,281				2,374				3,130				4,381				418
Core earnings (non-GAAP)		$	27,330			$	16,635			$	7,482			$	27,612			$	19,863
Diluted earnings per share		$	1.39			$	0.87			$	0.27			$	1.42			$	1.19
Nonrecurring items
Gain on sale of merchant services			(0.06	)			(0.06	)			-				-				-
Merger related costs			0.37				0.16				0.08				0.39				(0.01	)
Loss on sale of securities			-				-				-				0.01				0.01
Branch right sizing			0.08				0.12				0.24				0.04				0.03
Charter consolidation costs			0.04				0.03				-				-				-
Tax effect			(0.17	)			(0.10	)			(0.13	)			(0.17	)			(0.01	)
Net nonrecurring items			0.26				0.15				0.19				0.27				0.02
Diluted core earnings per share (non-GAAP)		$	1.65			$	1.02			$	0.46			$	1.69			$	1.21

 

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