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_012215.htm

Exhibit 99.1

FOR IMMEDIATE RELEASE:

January 22, 2015

SIMMONS FIRST ANNOUNCES 47% INCREASE IN CORE EARNINGS

Pine Bluff, AR – Simmons First National Corporation (NASDAQ-GS: SFNC) today announced record core earnings of $11.4 million for the fourth quarter of 2014, an increase of $3.6 million, or 47%, compared to the same quarter last year. Diluted core earnings per share were $0.64, an increase of $0.16. Core earnings exclude $1.2 million in net after-tax earnings. Adjusted for the non-core items, net income was $12.6 million for the fourth quarter of 2014, an increase of $8.9 million, or 234%, compared to the same quarter last year.

Year-to-date core earnings were $38.7 million, an increase of $11.1 million, or 40%, compared to 2013. Year-to-date diluted core earnings per share were $2.29, an increase of $0.60, or 36%. Year-to-date net income was $35.7 million, an increase of $12.5 million, or 54%, compared to 2013. Year-to-date diluted earnings per share were $2.11, an increase of $0.69, or 49%.

“We are pleased with our ability to integrate our acquisitions and continue to make good progress with our efficiency initiatives, both in revenue enhancement and in expense control,” commented George A. Makris, Jr., Chairman and CEO.

Loans

Total loans, including those acquired, were $2.7 billion at December 31, 2014, an increase of $333 million, or 13.8%, compared to the same period in 2013. Legacy loans (all loans excluding acquired loans) grew $311 million, or 17.9%. Acquired loans increased by $22 million, net of discounts.

Deposits

At December 31, 2014, total deposits were $3.9 billion, an increase of $163 million, or 4.4%, compared to the same period in 2013. Total non-time deposits totaled $2.9 billion, or 75% of total deposits.

Net Interest Income

The Company’s net interest income for the fourth quarter of 2014 was $47.4 million, an increase of $7.8 million, or 19.6%, 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 4.65% for the quarter ended December 31, 2014, a 5 basis point decline 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 acquired loans. Each quarter, the Company estimates the cash flows expected to be collected from the acquired loans, and adjustments may or may not be required. The cash flows estimate has increased based on payment histories and reduced loss expectations of the loans. This resulted in increased interest income recognized during the quarter on certain loans and interest income that is spread on a level-yield basis over the remaining expected lives of 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.

P.O. BOX 7009 501 MAIN STREET PINE BLUFF, ARKANSAS 71611-7009 (870) 541-1000 www.simmonsfirst.com

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

(In thousands)		Three Months Ended December 31						Twelve Months Ended December 31
		2014			2013			2014			2013
Impact on net interest income	$	8,185		$	8,802		$	26,400		$	18,905
Non-interest income		(2,971	)		(8,371	)		(20,540	)		(18,106	)
Net impact to pre-tax income	$	5,214		$	431		$	5,860		$	799

Because these adjustments will be recognized over the remaining lives of the loans 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 $17.0 million and the remaining adjustment to the indemnification assets that will reduce non-interest income is $10.6 million. Of the remaining adjustments, we expect to recognize $9.1 million of interest income and a $7.9 million reduction of non-interest income, for a net increase to pre-tax income of approximately $1.2 million during 2015. The accretable yield adjustments recorded in future periods will change as the Company continues to evaluate expected cash flows from the acquired loans.

Non-Interest Income

Non-interest income for the fourth quarter was $21.5 million, an increase of $13.8 million compared to the fourth quarter of 2013. Losses on FDIC covered assets decreased $5.0 million primarily due to lower indemnification asset amortization. Included in non-interest income were $4.6 million in gains from the sale of branch facilities that were closed as part the integration of Metropolitan. 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 a full quarter impact of the Metropolitan and Delta Trust acquisitions.

Non-Interest Expense

Non-interest expense for the fourth quarter of 2014 was $47.0 million, an increase of $5.3 million compared to the same period in 2013. Included in the quarter were $1.2 million of various merger related costs for the Company’s acquisition of Delta Trust. During the fourth quarter of 2013, the Company recorded $6.4 million in merger related costs for acquisition of Metropolitan, resulting in a decrease in merger related expenses of $5.2 million. The Company recorded $2.5 million during the quarter for one-time compensation related accruals and change-in-control payments. The Company also funded an endowment for the Simmons First Foundation with a $1.0 million contribution. OREO write-downs resulted in an $833 increase in expense compared to the previous year. The remaining increase in non-interest expense was primarily due to incremental operating expenses of the 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 December 31, 2014, acquired loans covered by loss share were carried at $107 million, OREO covered by loss share was carried at $12 million and the FDIC loss share indemnification asset was carried at $23 million. Acquired loans and OREO not covered by loss share were carried at $576 million and $33 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, 2014, the allowance for loan losses was $29.0 million on legacy loans and $1.0 million on covered loans, and the loan credit mark was $77.2 million, for a total of $107.2 million of coverage. This equates to a total coverage ratio of 3.8% of gross loans. The ratio of credit mark and related allowance to acquired loans was 10.3%.” The Company's allowance for loan losses at December 31, 2014, was 1.41% of total loans and 223% of non-performing loans. Non-performing loans as a percent of total loans were 0.63%. Non-performing assets decreased $4.8 million from the previous quarter to $58.0 million. For 2014, the year-to-date net charge-off ratio, excluding credit cards, was 0.20%, and the year-to-date credit card charge-off ratio was 1.27%.

Capital

At December 31, 2014, stockholders' equity was $494 million, book value per share was $27.38 and tangible book value per share was $20.15. The Company's ratio of stockholders' equity to total assets was 10.7% and its ratio of tangible common equity to tangible assets was 8.1%.

Simmons First National Corporation

Simmons First National Corporation is an Arkansas based financial holding company with total assets of $4.6 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, January 22, 2015. 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 61558218. 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 (Unaudited)	Dec 31 2014			Sep 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013
(in thousands)
ASSETS
Cash and non-interest bearing balances due from banks	$	54,347		$	73,554		$	44,805		$	48,018		$	69,827
Interest bearing balances due from banks		281,562			210,742			377,855			474,118			469,553
Federal funds sold		-			10,000			-			-			-
Cash and cash equivalents		335,909			294,296			422,660			522,136			539,380
Investment securities - held-to-maturity		777,587			822,730			799,963			776,615			745,688
Investment securities - available-for-sale		305,283			317,473			270,336			264,974			212,277
Mortgage loans held for sale		21,265			22,003			20,409			16,717			9,494
Assets held in trading accounts		6,987			6,819			6,881			6,865			8,978
Loans:
Legacy loans		2,053,721			1,963,378			1,868,842			1,779,609			1,742,638
Allowance for loan losses		(29,028	)		(27,076	)		(27,530	)		(26,983	)		(27,442	)
Loans acquired, not covered by FDIC loss share
(net of discount)		575,980			676,056			398,967			450,289			515,644
Loans acquired, covered by FDIC loss share
(net of discount and allowance)		106,933			118,158			121,524			137,879			146,653
Net loans		2,707,606			2,730,516			2,361,803			2,340,794			2,377,493
FDIC indemnification asset		22,663			25,694			30,508			39,239			48,791
Premises and equipment		122,966			115,639			113,541			111,888			119,614
Premises held for sale		6,126			15,856			14,145			23,779			19,466
Foreclosed assets not covered by FDIC loss share		44,856			50,770			53,342			57,476			64,820
Foreclosed assets covered by FDIC loss share		11,793			15,212			16,951			18,171			20,585
Interest receivable		16,774			18,006			14,254			15,102			15,654
Bank owned life insurance		77,592			75,357			61,115			60,714			60,384
Goodwill		108,095			108,095			78,529			78,529			78,906
Other intangible assets		22,526			22,988			14,094			14,519			14,972
Other assets		55,326			49,768			47,310			49,129			46,598
Total assets	$	4,643,354		$	4,691,222		$	4,325,841		$	4,396,647		$	4,383,100

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts	$	889,260		$	884,064		$	838,543		$	838,050		$	718,438
Interest bearing transaction accounts and savings deposits		2,006,271			1,984,422			1,784,040			1,793,330			1,862,618
Time deposits less than $100,000		530,890			565,957			559,597			589,798			611,729
Time deposits greater than $100,000		434,297			474,472			459,545			485,870			504,782
Total deposits		3,860,718			3,908,915			3,641,725			3,707,048			3,697,567
Federal funds purchased and securities sold
under agreements to repurchase		110,586			112,977			98,226			104,643			107,887
Other borrowings		114,682			123,396			115,602			116,970			117,090
Subordinated debentures		20,620			20,620			20,620			20,620			20,620
Accrued interest and other liabilities		42,429			41,309			35,533			40,694			36,104
Total liabilities		4,149,035			4,207,217			3,911,706			3,989,975			3,979,268

Stockholders' equity:
Common stock		181			180			163			163			162
Surplus		156,568			155,592			90,010			89,274			88,095
Undivided profits		338,906			330,185			325,371			319,354			318,577
Accumulated other comprehensive loss
Unrealized depreciation on AFS securities		(1,336	)		(1,952	)		(1,409	)		(2,119	)		(3,002	)
Total stockholders' equity		494,319			484,005			414,135			406,672			403,832
Total liabilities and stockholders' equity	$	4,643,354		$	4,691,222		$	4,325,841		$	4,396,647		$	4,383,100

Page 1

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)	2014			2014			2014			2014			2013
(in thousands)
ASSETS
Cash and non-interest bearing balances due from banks	$	54,485		$	50,980		$	44,671		$	68,770		$	50,473
Interest bearing balances due from banks		299,054			288,258			456,931			507,936			428,551
Federal funds sold		6,486			6,794			985			385			2,616
Cash and cash equivalents		360,025			346,032			502,587			577,091			481,640
Investment securities - held-to-maturity		806,069			810,085			782,900			749,126			657,736
Investment securities - available-for-sale		318,879			300,927			265,194			223,203			220,292
Mortgage loans held for sale		17,241			24,942			15,299			6,668			6,666
Assets held in trading accounts		6,848			6,841			6,850			7,212			8,881
Loans:
Legacy loans		2,008,550			1,917,155			1,817,429			1,719,294			1,734,469
Allowance for loan losses		(28,474	)		(27,470	)		(27,287	)		(27,771	)		(27,806	)
Loans acquired, not covered by FDIC loss share
(net of discount)		620,505			481,658			418,515			505,031			261,577
Loans acquired, covered by FDIC loss share
(net of discount and allowance)		111,618			119,372			128,099			142,777			145,742
Net loans		2,712,199			2,490,715			2,336,756			2,339,331			2,113,982
FDIC indemnification asset		24,457			28,311			35,940			46,154			57,587
Premises and equipment		117,018			115,577			112,994			119,626			87,310
Premises held for sale		6,794			12,521			21,142			19,514			212
Foreclosed assets not covered by FDIC loss share		48,745			51,097			55,304			63,453			50,680
Foreclosed assets covered by FDIC loss share		13,964			16,073			18,330			19,901			22,529
Interest receivable		17,738			15,743			15,076			14,882			15,707
Bank owned life insurance		76,578			63,798			60,895			60,552			60,209
Goodwill		109,837			88,590			78,529			78,901			60,804
Other intangible assets		17,748			15,321			14,299			14,765			5,526
Other assets		50,566			52,234			48,583			45,458			33,324
Total assets	$	4,704,706		$	4,438,807		$	4,370,678		$	4,385,837		$	3,883,085

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts	$	895,470		$	828,340		$	823,552		$	735,101		$	665,644
Interest bearing transaction accounts and savings deposits		2,010,827			1,869,095			1,810,436			1,854,510			1,620,244
Time deposits less than $100,000		545,986			555,837			577,856			601,046			517,603
Time deposits greater than $100,000		458,117			457,489			472,009			495,574			409,361
Total deposits		3,910,400			3,710,761			3,683,853			3,686,231			3,212,852
Federal funds purchased and securities sold
under agreements to repurchase		117,661			108,357			101,537			115,018			98,359
Other borrowings		121,691			117,664			116,082			117,588			108,693
Subordinated debentures		20,620			20,620			20,620			20,620			20,620
Accrued interest and other liabilities		38,869			38,950			34,637			36,967			33,117
Total liabilities		4,209,241			3,996,352			3,956,729			3,976,424			3,473,641
Total stockholders' equity		495,465			442,455			413,949			409,413			409,444
Total liabilities and stockholders' equity	$	4,704,706		$	4,438,807		$	4,370,678		$	4,385,837		$	3,883,085

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Simmons First National Corporation													SFNC
Consolidated Statement of Income - Quarter-to-Date
For the Quarters Ended	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31
(Unaudited)	2014			2014			2014			2014			2013
(in thousands, except per share data)
INTEREST INCOME
Loans	$	45,248		$	40,082		$	38,622		$	40,131		$	38,614
Federal funds sold		13			12			2			1			5
Investment securities		5,325			4,717			4,766			4,549			3,951
Mortgage loans held for sale		188			269			168			69			72
Assets held in trading accounts		4			3			5			5			6
Interest bearing balances due from banks		167			132			279			279			251
TOTAL INTEREST INCOME		50,945			45,215			43,842			45,034			42,899
INTEREST EXPENSE
Time deposits		1,470			1,461			1,515			1,577			1,479
Other deposits		872			771			720			692			646
Federal funds purchased and securities
sold under agreements to repurchase		61			55			31			53			55
Other borrowings		992			996			988			1,010			929
Subordinated debentures		160			160			160			157			161
TOTAL INTEREST EXPENSE		3,555			3,443			3,414			3,489			3,270
NET INTEREST INCOME		47,390			41,772			40,428			41,545			39,629
Provision for loan losses		3,607			1,128			1,602			908			1,084
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES		43,783			40,644			38,826			40,637			38,545
NON-INTEREST INCOME
Trust income		2,182			1,838			1,553			1,537			1,608
Service charges on deposit accounts		6,552			6,238			6,792			6,068			5,497
Other service charges and fees		1,083			808			859			823			703
Mortgage lending income		1,457			1,812			1,262			810			916
Investment banking income		451			284			154			181			421
Credit card fees		5,653			5,769			5,801			5,643			5,053
Bank owned life insurance income		727			411			377			330			347
Gain on sale of securities, net		(12	)		(18	)		38			-			42
Net (loss) gain on assets covered by FDIC loss share agreements		(3,013	)		(3,744	)		(6,268	)		(7,370	)		(7,988	)
Other income		6,424			2,637			4,820			1,176			1,118
TOTAL NON-INTEREST INCOME		21,504			16,035			15,388			9,198			7,717
NON-INTEREST EXPENSE
Salaries and employee benefits		25,126			20,892			20,982			22,464			19,933
Occupancy expense, net		2,494			3,204			3,285			3,890			2,544
Furniture and equipment expense		2,732			2,363			2,215			2,014			2,257
Other real estate and foreclosure expense		1,395			1,864			375			873			562
Deposit insurance		724			877			1,085			668			620
Merger related costs		1,214			3,628			1,354			1,272			6,413
Other operating expenses		13,293			11,526			10,546			13,370			9,349
TOTAL NON-INTEREST EXPENSE		46,978			44,354			39,842			44,551			41,678
NET INCOME BEFORE INCOME TAXES		18,309			12,325			14,372			5,284			4,584
Provision for income taxes		5,669			3,537			4,464			932			798
NET INCOME	$	12,640		$	8,788		$	9,908		$	4,352		$	3,786
BASIC EARNINGS PER SHARE	$	0.72		$	0.52		$	0.61		$	0.27		$	0.23
DILUTED EARNINGS PER SHARE	$	0.72		$	0.52		$	0.60		$	0.27		$	0.23

Page 3

Simmons First National Corporation													SFNC
Consolidated Statement of Income - Year-to-Date
For the Quarters Ended	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31
(Unaudited)	2014			2014			2014			2014			2013
(in thousands, except per share data)
INTEREST INCOME
Loans	$	164,082		$	118,834		$	78,753		$	40,131		$	128,171
Federal funds sold		27			16			3			1			19
Investment securities		19,357			14,032			9,315			4,549			13,300
Mortgage loans held for sale		695			506			237			69			467
Assets held in trading accounts		17			13			10			5			29
Interest bearing balances due from banks		857			691			558			279			1,127
TOTAL INTEREST INCOME		185,035			134,092			88,876			45,034			143,113
INTEREST EXPENSE
Time deposits		6,022			4,552			3,091			1,577			5,938
Other deposits		3,057			2,185			1,414			692			2,461
Federal funds purchased and securities
sold under agreements to repurchase		269			194			84			53			219
Other borrowings		3,986			2,995			1,998			1,010			3,001
Subordinated debentures		637			477			317			157			644
TOTAL INTEREST EXPENSE		13,971			10,403			6,904			3,489			12,263
NET INTEREST INCOME		171,064			123,689			81,972			41,545			130,850
Provision for loan losses		7,245			3,638			2,510			908			4,118
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES		163,819			120,051			79,462			40,637			126,732
NON-INTEREST INCOME
Trust income		7,111			4,929			3,091			1,537			5,842
Service charges on deposit accounts		25,650			19,098			12,860			6,068			18,815
Other service charges and fees		3,574			2,490			1,684			823			2,997
Mortgage lending income		5,342			3,885			2,074			810			4,592
Investment banking income		1,070			620			336			181			1,811
Credit card fees		22,866			17,213			11,444			5,643			17,833
Bank owned life insurance income		1,843			1,117			705			330			1,319
Gain on sale of securities, net		8			20			38			-			(151	)
Net (loss) gain on assets covered by FDIC loss share agreements		(20,316	)		(17,303	)		(13,639	)		(7,370	)		(16,188	)
Other income		15,044			8,619			5,984			1,176			3,746
TOTAL NON-INTEREST INCOME		62,192			40,688			24,577			9,198			40,616
NON-INTEREST EXPENSE
Salaries and employee benefits		89,210			64,338			43,447			22,464			74,078
Occupancy expense, net		12,833			10,338			7,155			3,890			10,034
Furniture and equipment expense		9,325			6,592			4,229			2,014			7,623
Other real estate and foreclosure expense		4,507			3,112			1,248			873			1,337
Deposit insurance		3,354			2,630			1,753			668			2,482
Merger related costs		7,470			6,255			2,627			1,272			6,376
Other operating expenses		49,022			35,492			23,923			13,370			32,882
TOTAL NON-INTEREST EXPENSE		175,721			128,757			84,382			44,551			134,812
NET INCOME BEFORE INCOME TAXES		50,290			31,982			19,657			5,284			32,536
Provision for income taxes		14,602			8,933			5,396			932			9,305
NET INCOME	$	35,688		$	23,049		$	14,261		$	4,352		$	23,231
BASIC EARNINGS PER SHARE	$	2.11		$	1.40		$	0.88		$	0.27		$	1.42
DILUTED EARNINGS PER SHARE	$	2.11		$	1.39		$	0.87		$	0.27		$	1.42

Page 4

Simmons First National Corporation													SFNC
Consolidated Risk-Based Capital
For the Quarters Ended	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31
(Unaudited)	2014			2014			2014			2014			2013
($ in thousands)
Tier 1 capital
Stockholders' equity	$	494,319		$	482,642		$	414,135		$	406,672		$	403,832
Trust preferred securities, net allowable		20,000			20,000			20,000			20,000			20,000
Disallowed intangible assets, net of deferred tax		(112,545	)		(109,698	)		(74,003	)		(74,477	)		(75,501	)
Unrealized loss on AFS securities		1,336			1,952			1,409			2,119			3,002

Total Tier 1 capital		403,110			394,896			361,541			354,314			351,333

Tier 2 capital
Qualifying unrealized gain on AFS equity securities		2			-			47			42			45
Qualifying allowance for loan losses and
reserve for unfunded commitments		32,073			29,167			29,621			28,846			28,967

Total Tier 2 capital		32,075			29,167			29,668			28,888			29,012

Total risk-based capital	$	435,185		$	424,063		$	391,209		$	383,202		$	380,345

Risk weighted assets	$	3,002,270		$	3,063,801		$	2,652,474		$	2,651,970		$	2,697,630

Adjusted average assets for leverage ratio	$	4,593,924		$	4,331,488		$	4,299,379		$	4,315,279		$	3,811,793

Ratios at end of quarter
Equity to assets		10.65	%		10.29	%		9.57	%		9.25	%		9.21	%
Tangible common equity to tangible assets		8.06	%		7.78	%		7.59	%		7.29	%		7.23	%
Tier 1 leverage ratio		8.77	%		9.12	%		8.41	%		8.21	%		9.22	%
Tier 1 risk-based capital ratio		13.43	%		12.89	%		13.63	%		13.36	%		13.02	%
Total risk-based capital ratio		14.50	%		13.84	%		14.75	%		14.45	%		14.10	%

Page 5

Simmons First National Corporation									SFNC
Consolidated Loans and Investments
For the Quarters Ended	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31
(Unaudited)	2014		2014		2014		2014		2013
(in thousands)
Legacy Loan Portfolio - End of Period (1)
Consumer
Credit cards	$	185,380	$	175,822	$	176,239	$	172,609	$	184,935
Student loans		-		-		398		24,415		25,906
Other consumer		103,402		105,508		105,998		104,185		98,851
Total consumer		288,782		281,330		282,635		301,209		309,692
Real Estate
Construction		181,968		163,364		163,412		168,147		146,458
Single-family residential		455,563		436,925		417,187		402,588		392,285
Other commercial		714,797		681,848		653,734		644,772		626,333
Total real estate		1,352,328		1,282,137		1,234,333		1,215,507		1,165,076
Commercial
Commercial		291,820		249,186		233,510		186,303		164,329
Agricultural		115,658		145,157		111,567		72,239		98,886
Total commercial		407,478		394,343		345,077		258,542		263,215
Other		5,133		5,568		6,796		4,351		4,655
Total Loans	$	2,053,721	$	1,963,378	$	1,868,841	$	1,779,609	$	1,742,638

(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	$	418,914	$	455,827	$	449,201	$	425,616	$	395,198
Mortgage-backed securities		29,743		30,954		32,204		33,323		34,425
State and political subdivisions		328,310		335,329		317,938		317,056		315,445
Other securities		620		620		620		620		620
Total held-to-maturity		777,587		822,730		799,963		776,615		745,688
Available-for-Sale
U.S. Treasury	$	3,992	$	3,991	$	3,994	$	3,981	$	3,985
U.S. Government agencies		272,816		280,321		238,411		231,949		178,217
Mortgage-backed securities		1,572		32		1,958		1,833		1,891
State and political subdivisions		6,540		8,903		6,920		7,367		7,861
FHLB stock		5,126		5,623		4,966		5,168		6,002
Other securities		15,237		18,603		14,087		14,676		14,321
Total available-for-sale		305,283		317,473		270,336		264,974		212,277
Total investment securities	$	1,082,870	$	1,140,203	$	1,070,299	$	1,041,589	$	957,965
Fair value - HTM investment securities	$	780,534	$	823,446	$	802,597	$	771,114	$	731,705

Investment Securities - QTD Average
Taxable securities	$	782,062	$	781,685	$	722,084	$	649,329	$	583,389
Tax exempt securities		342,886		329,327		326,010		323,000		294,639
Total investment securities - QTD average	$	1,124,948	$	1,111,012	$	1,048,094	$	972,329	$	878,028

Page 6

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)	2014			2014			2014			2014			2013
($ in thousands)
LOANS
Legacy loans	$	2,053,721		$	1,963,378		$	1,868,841		$	1,779,609		$	1,742,638
Allowance for loan losses (legacy loans)		(29,028	)		(27,076	)		(27,530	)		(26,983	)		(27,442	)
Legacy loans (net of allowance)		2,024,693			1,936,302			1,841,311			1,752,626			1,715,196
Loans acquired, not covered by FDIC loss share		621,020			733,914			445,515			495,915			566,895
Credit discount		(45,040	)		(57,858	)		(46,548	)		(45,626	)		(51,251	)
Loans acquired, not covered (net of discount)		575,980			676,056			398,967			450,289			515,644
Loans acquired, covered by FDIC loss share		140,038			154,183			163,775			188,755			209,459
Credit discount		(32,151	)		(36,025	)		(42,251	)		(50,876	)		(62,806	)
Allowance for loan losses (acquired covered loans)		(954	)		-			-			-			-
Loans acquired, covered (net of discount and allowance)		106,933			118,158			121,524			137,879			146,653
Net loans	$	2,707,606		$	2,730,516		$	2,361,802		$	2,340,794		$	2,377,493


Loan Coverage Ratios
Allowance for loan losses to legacy loans		1.41	%		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		7.25	%		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		23.64	%		23.37	%		25.80	%		26.95	%		29.98	%

Total allowance and credit coverage		3.81	%		4.24	%		4.69	%		5.01	%		5.62	%

Page 7

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)	2014			2014			2014			2014			2013
($ in thousands)
Allowance for Loan Losses (Legacy Loans)
Balance, beginning of quarter	$	27,076		$	27,530		$	26,983		$	27,442		$	27,533
Loans charged off
Credit cards		859			788			725			816			841
Other consumer		781			648			426			148			428
Real estate		200			534			1,144			1,035			255
Commercial		310			474			186			82			133
Total loans charged off		2,150			2,444			2,481			2,081			1,657

Recoveries of loans previously charged off
Credit cards		220			190			215			271			226
Other consumer		94			122			133			121			166
Real estate		56			379			1,062			308			78
Commercial		125			171			16			14			12
Total recoveries		495			862			1,426			714			482
Net loans charged off		1,655			1,582			1,055			1,367			1,175
Provision for loan losses		3,607			1,128			1,602			908			1,084
Balance, end of quarter	$	29,028		$	27,076		$	27,530		$	26,983		$	27,442

Non-performing assets (1) (2)
Non-performing loans
Nonaccrual loans
Real estate	$	10,152		$	9,374		$	8,166		$	8,075		$	4,799
Commercial		1,481			1,174			1,110			1,054			495
Consumer		405			664			877			883			967
Total nonaccrual loans		12,038			11,212			10,153			10,012			6,261
Loans past due 90 days or more
Government guaranteed student loans		-			-			323			1,965			2,264
Other loans		961			713			757			517			687
Total loans past due 90 days or more		961			713			1,080			2,482			2,951
Total non-performing loans		12,999			11,925			11,233			12,494			9,212
Other non-performing assets
Foreclosed assets held for sale		11,803			13,167			16,745			17,357			19,361
Acquired foreclosed assets held for sale, not covered
by FDIC loss share agreements		33,053			37,603			36,597			40,119			45,459
Other non-performing assets		97			72			80			60			75
Total other non-performing assets		44,953			50,842			53,422			57,536			64,895
Total non-performing assets	$	57,952		$	62,767		$	64,655		$	70,030		$	74,107
Performing TDRs (troubled debt restructurings)	$	2,233		$	2,234		$	2,776		$	8,655		$	9,497

Ratios (1) (2)
Allowance for loan losses to total loans		1.41	%		1.38	%		1.47	%		1.52	%		1.57	%
Allowance for loan losses to non-performing loans		223	%		227	%		245	%		216	%		298	%
Non-performing loans to total loans		0.63	%		0.61	%		0.60	%		0.70	%		0.53	%
Non-performing assets (including performing TDRs)
to total assets		1.30	%		1.39	%		1.56	%		1.79	%		1.91	%
Non-performing assets to total assets		1.25	%		1.34	%		1.49	%		1.59	%		1.69	%
Non-performing assets to total assets
(excluding Gov't guaranteed student loans)		1.25	%		1.34	%		1.49	%		1.55	%		1.64	%
Annualized net charge offs to total loans		0.33	%		0.33	%		0.23	%		0.32	%		0.27	%
Annualized net credit card charge offs to
total credit card loans		1.41	%		1.31	%		1.14	%		1.20	%		1.31	%
Annualized net charge offs to total loans
(excluding credit cards)		0.22	%		0.22	%		0.13	%		0.22	%		0.14	%
Past due loans >30 days (excluding nonaccrual)		0.48	%		0.33	%		0.34	%		0.61	%		0.57	%
Past due loans >30 days (excluding nonaccrual)
(excluding Gov't guaranteed student loans)		0.48	%		0.33	%		0.32	%		0.45	%		0.41	%

(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	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31
(Unaudited)	2014			2014			2014			2014			2013

ASSETS

Earning Assets
Interest bearing balances due from banks		0.22	%		0.18	%		0.24	%		0.22	%		0.23	%
Investment securities		2.49	%		2.29	%		2.47	%		2.60	%		2.44	%
Mortgage loans held for sale		4.33	%		4.28	%		4.40	%		4.20	%		4.29	%
Assets held in trading accounts		0.23	%		0.17	%		0.29	%		0.28	%		0.27	%
Loans, including acquired loans		6.55	%		6.32	%		6.55	%		6.88	%		7.16	%
Total interest earning assets		4.98	%		4.71	%		4.69	%		4.91	%		5.08	%

LIABILITIES

Interest bearing liabilities
Interest bearing transaction and
savings accounts		0.17	%		0.16	%		0.16	%		0.15	%		0.16	%
Time deposits		0.58	%		0.57	%		0.58	%		0.58	%		0.63	%
Total interest bearing deposits		0.31	%		0.31	%		0.31	%		0.31	%		0.33	%
Federal funds purchased and securities
sold under agreement to repurchase		0.21	%		0.20	%		0.12	%		0.19	%		0.22	%
Other borrowings		3.23	%		3.36	%		3.41	%		3.48	%		3.39	%
Subordinated debentures		3.08	%		3.08	%		3.11	%		3.09	%		3.10	%
Total interest bearing liabilities		0.43	%		0.44	%		0.44	%		0.44	%		0.47	%

NET INTEREST MARGIN/SPREAD

Net interest spread		4.55	%		4.27	%		4.25	%		4.47	%		4.61	%
Net interest margin - quarter-to-date		4.65	%		4.36	%		4.34	%		4.54	%		4.70	%
Net interest margin - year-to-date		4.47	%		4.41	%		4.44	%		4.54	%		4.21	%

Page 9

Simmons First National Corporation													SFNC
Consolidated - Selected Financial Data
For the Quarters Ended	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31
(Unaudited)	2014			2014			2014			2014			2013
($ in thousands, except share data)
QUARTER-TO-DATE
Diluted earnings per share	$	0.72		$	0.52		$	0.60		$	0.27		$	0.23
Core earnings (excludes nonrecurring items) (non-GAAP)		11,387			10,684			9,153			7,482			7,749
Diluted core earnings per share (non-GAAP)		0.64			0.63			0.56			0.46			0.48
Cash dividends declared per common share		0.22			0.22			0.22			0.22			0.21
Cash dividends declared - amount		3,965			3,954			3,589			3,575			3,403
Return on average stockholders' equity		10.12	%		7.88	%		9.60	%		4.31	%		3.67	%
Return on tangible equity		14.00	%		10.62	%		12.72	%		5.94	%		4.51	%
Return on average assets		1.07	%		0.79	%		0.91	%		0.40	%		0.39	%
Net interest margin (FTE)		4.65	%		4.36	%		4.34	%		4.54	%		4.70	%
FTE adjustment - investments		1,744			1,695			1,687			1,682			1,442
FTE adjustment - loans		7			7			8			10			17
Amortization of intangibles		565			454			452			453			192
Amortization of intangibles, net of taxes		343			276			275			275			117
Average shares outstanding		18,031,669			16,873,504			16,318,003			16,270,149			16,210,480
Average earning assets		4,195,250			3,956,032			3,892,202			3,861,632			3,466,530
Average interest bearing liabilities		3,274,902			3,129,062			3,098,540			3,204,356			2,774,880

YEAR-TO-DATE
Diluted earnings per share	$	2.11		$	1.39		$	0.87		$	0.27		$	1.42
Core earnings (excludes nonrecurring items) (non-GAAP)		38,706			27,319			16,635			7,482			27,612
Diluted core earnings per share (non-GAAP)		2.29			1.65			1.02			0.46			1.69
Cash dividends declared per common share		0.88			0.66			0.44			0.22			0.84
Cash dividends declared - amount		15,083			11,118			7,164			3,575			13,707
Return on average stockholders' equity		8.11	%		7.30	%		6.95	%		4.31	%		5.33	%
Return on tangible equity		10.99	%		9.82	%		9.33	%		5.94	%		6.36	%
Return on average assets		0.80	%		0.70	%		0.65	%		0.40	%		0.64	%
Net interest margin (FTE)		4.47	%		4.41	%		4.44	%		4.54	%		4.21	%
FTE adjustment - investments		6,808			5,064			3,369			1,682			4,900
FTE adjustment - loans		32			25			18			10			51
Amortization of intangibles		1,979			1,359			905			453			601
Amortization of intangibles, net of taxes		1,203			826			550			275			365
Average shares outstanding		16,878,766			16,489,429			16,294,208			16,270,149			16,339,335
Average diluted shares outstanding		16,922,026			16,532,689			16,336,901			16,309,868			16,352,167
Average earning assets		3,975,903			3,903,290			3,876,918			3,861,632			3,224,094
Average interest bearing liabilities		3,176,716			3,143,984			3,151,446			3,204,356			2,551,653

END OF PERIOD
Book value per share	$	27.38		$	26.82		$	25.36		$	24.93		$	24.89
Tangible book value per share		20.15			19.72			19.69			19.23			19.10
Shares outstanding		18,052,488			17,992,261			16,331,341			16,311,263			16,226,256
Full-time equivalent employees		1,338			1,397			1,281			1,321			1,343
Total number of ATM's		124			129			120			120			157
Total number of financial centers		109			113			104			104			131
Parent company only - investment in subsidiaries		522,841			516,801			449,591			453,067			452,688
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	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31
(Unaudited)	2014			2014			2014			2014			2013
(in thousands, except per share data)
QUARTER-TO-DATE
Net Income	$	12,640		$	8,788		$	9,908		$	4,352		$	3,786
Nonrecurring items
Gain on sale of merchant services		-			-			(1,000	)		-			-
Merger related costs		1,218			3,628			1,354			1,272			6,413
Change-in-control payments		885			-			-			-			-
Branch right sizing		(4,221	)		(705	)		(2,011	)		3,878			108
Charter consolidation costs		42			196			414			-			-
Tax effect (1)		824			(1,223	)		488			(2,020	)		(2,558	)
Net nonrecurring items		(1,252	)		1,896			(755	)		3,130			3,963
Core earnings (non-GAAP)	$	11,388		$	10,684		$	9,153		$	7,482		$	7,749

Diluted earnings per share	$	0.72		$	0.52		$	0.60		$	0.27		$	0.23
Nonrecurring items
Gain on sale of merchant services		-			-			(0.06	)		-			-
Merger related costs		0.07			0.21			0.08			0.08			0.40
Change-in-control payments		0.05			-			-			-			-
Branch right sizing		(0.24	)		(0.04	)		(0.12	)		0.24			0.01
Charter consolidation costs		-			0.01			0.03			-			-
Tax effect (1)		0.04			(0.07	)		0.03			(0.13	)		(0.16	)
Net nonrecurring items		(0.08	)		0.11			(0.04	)		0.19			0.25
Diluted core earnings per share (non-GAAP)	$	0.64		$	0.63		$	0.56		$	0.46		$	0.48

YEAR-TO-DATE
Net Income	$	35,688		$	23,049		$	14,261		$	4,352		$	23,231
Nonrecurring items
Gain on sale of merchant services		(1,000	)		(1,000	)		(1,000	)		-			-
Merger related costs		7,472			6,254			2,626			1,272			6,376
Change-in-control payments		885			-			-			-			-
Loss on sale of securities		-			-			-			-			193
Branch right sizing		(3,059	)		1,162			1,867			3,878			641
Charter consolidation costs		652			610			414			-			-
Tax effect (1)		(1,931	)		(2,745	)		(1,533	)		(2,020	)		(2,829	)
Net nonrecurring items		3,019			4,281			2,374			3,130			4,381
Core earnings (non-GAAP)	$	38,707		$	27,330		$	16,635		$	7,482		$	27,612

Diluted earnings per share	$	2.11		$	1.39		$	0.87		$	0.27		$	1.42
Nonrecurring items
Gain on sale of merchant services		(0.06	)		(0.06	)		(0.06	)		-			-
Merger related costs		0.44			0.37			0.16			0.08			0.39
Change-in-control payments		0.05			-			-			-			-
Loss on sale of securities		-			-			-			-			0.01
Branch right sizing		(0.16	)		0.08			0.12			0.24			0.04
Charter consolidation costs		0.04			0.04			0.03			-			-
Tax effect (1)		(0.13	)		(0.17	)		(0.10	)		(0.13	)		(0.17	)
Net nonrecurring items		0.18			0.26			0.15			0.19			0.27
Diluted core earnings per share (non-GAAP)	$	2.29		$	1.65		$	1.02		$	0.46		$	1.69

(1) Effective tax rate of 39.225%

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