Exhibit 99.1

 

 

 

FOR IMMEDIATE RELEASE:

July 23, 2015

 

SIMMONS FIRST ANNOUNCES 145 PERCENT INCREASE IN CORE EARNINGS

 

Pine Bluff, AR – Simmons First National Corporation (NASDAQ-GS: SFNC) today announced record core earnings of $22.4 million for the second quarter of 2015, an increase of $13.3 million, or 145 percent, compared with the same quarter last year. Diluted core earnings per share were $0.76, an increase of $0.20, or 35.7 percent. Including the non-core items, net income was $20.0 million for the second quarter of 2015, an increase of $10.1 million, or 102 percent, compared with the same quarter last year. Diluted earnings per share were $0.71, an increase of $0.11, or 18.3 percent.

 

Year-to-date core earnings were $38.1 million, an increase of $21.5 million, or 129 percent, compared with the same period of 2014. Year-to-date diluted core earnings per share were $1.46, an increase of $0.44, or 43.1 percent. Year-to-date net income was $28.7 million, or $1.10 diluted earnings per share.

 

“We 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. “Our core efficiency ratio was 58.5 percent for the quarter and our core ROA was 1.17 percent.”

 

Loans

 

Total loans, including those acquired, were $4.8 billion at June 30, 2015, an increase of $2.4 billion, or 101 percent, compared with the same period in 2014. Legacy loans (all loans excluding acquired loans) grew $742 million, or 40.0 percent. Acquired loans increased by $1.7 billion, net of discounts.

 

Deposits

 

At June 30, 2015, total deposits were $6.2 billion, an increase of $2.5 billion, or 69.4 percent, compared with the same period in 2014. Total non-time deposits were $4.7 billion, or 77 percent of total deposits.

 

Net Interest Income

 

The company’s net interest income for the second quarter of 2015 was $73.2 million, an increase of $32.8 million, or 81.1 percent, from the same period of 2014. This increase was driven by growth in the legacy loan portfolio and earning assets acquired through the Delta Trust, Community First and Liberty transactions. Net interest margin was 4.47 percent for the quarter ended June 30, 2015, a 13 basis-point increase from the same quarter of 2014. 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 impaired loans. Each quarter, the company estimates the cash flows expected to be collected from the acquired impaired 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 the loans or loan pools. For loans covered under loss-sharing agreements with the FDIC, the increases in expected cash flows also reduce the amount of expected reimbursements, 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:

 

		Three Months Ended								Six Months Ended
(In thousands)		June 30								June 30
		2015				2014				2015				2014
Impact on net interest income		$	3,223			$	5,856			$	9,325			$	13,247
Non-interest income			(2,941	)			(6,410	)			(5,686	)			(13,850	)
Net impact to pre-tax income		$	282			$	(554	)		$	3,639			$	(603	)

 

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 $15.3 million and the remaining adjustment to the indemnification assets that will reduce non-interest income is $6.6 million. For the remainder of 2015, we expect to recognize $5.8 million of interest income and a $5.4 million reduction of non-interest income, for a net increase to pre-tax income of approximately $0.4 million. 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 second quarter was $25.3 million, an increase of $9.9 million compared with the second quarter of 2014. Losses on FDIC-covered assets decreased $3.2 million primarily due to lower indemnification asset amortization. The remaining increase in non-interest income was primarily due to additional trust income, service charge and fee income, mortgage lending and investment banking income resulting from the acquisitions.

 

Non-Interest Expense

 

Non-interest expense for the second quarter of 2015 was $65.2 million, an increase of $25.3 million compared with the same period in 2014. Included in the quarter were $2.7 million of branch right sizing expenses related to the closing of several underperforming branches. The remaining increase in non-interest expense was primarily due to incremental operating expenses of the acquired Delta Trust, Community First and Liberty franchises.

 

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 percent 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 June 30, 2015, acquired loans covered by loss share were carried at $93.1 million, OREO covered by loss share was carried at $12.8 million and the FDIC loss share indemnification asset was carried at $13.0 million. Acquired loans and OREO not covered by loss share were carried at $2.1 billion and $29.6 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.

 

At June 30, 2015, the allowance for loan losses was $30.6 million on legacy loans and $1.0 million on covered loans, and the loan credit mark was $83.3 million, for a total of $114.9 million of coverage. This equates to a total coverage ratio of 2.3 percent of gross loans. The ratio of credit mark and related allowance to acquired loans was 3.7 percent. The company's allowance for loan losses on legacy loans at June 30, 2015, was 1.17 percent of total loans and 180 percent of non-performing loans. Non-performing loans as a percent of total loans were 0.65 percent. Through the second quarter of 2015, the year-to-date annualized net charge-off ratio, excluding credit cards, was 0.09 percent, and the year-to-date annualized credit card charge-off ratio was 1.32 percent.

 

Capital

 

At June 30, 2015, common stockholders' equity was $1.0 billion, book value per share was $32.23 and tangible book value per share was $20.15. The company's ratio of stockholders' equity to total assets was 13.5 percent and its ratio of tangible common equity to tangible assets was 8.7 percent.

 

Simmons First National Corporation

 

Simmons First National Corporation is an Arkansas-based financial holding company with total assets of $7.6 billion and conducting financial operations throughout Arkansas, Kansas, Missouri and Tennessee. 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 p.m. CDT on Thursday, July 23, 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 71641971. 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:

J. BURTON HICKS

Chief of Staff 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		Jun 30				Mar 31				Dec 31				Sep 30				Jun 30
(Unaudited)		2015				2015				2014				2014				2014
(in thousands)
ASSETS
Cash and non-interest bearing balances due from banks		$	93,959			$	108,424			$	54,347			$	73,554			$	44,805
Interest bearing balances due from banks			173,130				423,986				281,562				210,742				377,855
Federal funds sold			49,570				178,418				-				10,000				-
Cash and cash equivalents			316,659				710,828				335,909				294,296				422,660
Investment securities - held-to-maturity			860,664				902,423				777,587				822,730				799,963
Investment securities - available-for-sale			748,633				707,383				305,283				317,473				270,336
Mortgage loans held for sale			48,094				25,513				21,265				22,003				20,409
Assets held in trading accounts			6,481				6,528				6,987				6,819				6,881
Loans:
Legacy loans			2,611,229				2,115,380				2,053,721				1,963,378				1,868,842
Allowance for loan losses			(30,567	)			(29,183	)			(29,028	)			(27,076	)			(27,530	)
Loans acquired, not covered by FDIC loss share
(net of discount and allowance)			2,108,306				2,418,440				575,980				676,056				398,967
Loans acquired, covered by FDIC loss share
(net of discount and allowance)			93,121				102,468				106,933				118,158				121,524
Net loans			4,782,089				4,607,105				2,707,606				2,730,516				2,361,803
FDIC indemnification asset			13,020				15,965				22,663				25,694				30,508
Premises and equipment			191,335				198,106				122,966				115,639				113,541
Premises held for sale			6,587				-				6,126				15,856				14,145
Foreclosed assets not covered by FDIC loss share			42,666				50,723				44,856				50,770				53,342
Foreclosed assets covered by FDIC loss share			12,833				12,010				11,793				15,212				16,951
Interest receivable			24,129				24,719				16,774				18,006				14,254
Bank owned life insurance			118,073				117,296				77,592				75,357				61,115
Goodwill			314,282				314,282				108,095				108,095				78,529
Other intangible assets			46,605				47,960				22,526				22,988				14,094
Other assets			82,208				74,959				55,326				49,768				47,310
Total assets		$	7,614,358			$	7,815,800			$	4,643,354			$	4,691,222			$	4,325,841
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts		$	1,141,285			$	1,123,966			$	889,260			$	884,064			$	838,543
Interest bearing transaction accounts and savings deposits			3,581,049				3,627,870				2,006,271				1,984,422				1,784,040
Time deposits less than $100,000			1,007,895				1,058,602				530,890				565,957				559,597
Time deposits greater than $100,000			439,793				464,270				434,297				474,472				459,545
Total deposits			6,170,022				6,274,708				3,860,718				3,908,915				3,641,725
Federal funds purchased and securities sold
under agreements to repurchase			111,792				111,484				110,586				112,977				98,226
Other borrowings			171,321				284,386				114,682				123,396				115,602
Subordinated debentures			61,794				61,644				20,620				20,620				20,620
Accrued interest and other liabilities			74,324				69,841				42,429				41,309				35,533
Total liabilities			6,589,253				6,802,063				4,149,035				4,207,217				3,911,706
Stockholders' equity:
Preferred stock			30,852				30,852				-				-				-
Common stock			299				299				181				180				163
Surplus			640,895				639,493				156,568				155,592				90,010
Undivided profits			354,459				341,238				338,906				330,185				325,371
Accumulated other comprehensive income (loss)
Unrealized (depreciation) appreciation on AFS securities			(1,400	)			1,855				(1,336	)			(1,952	)			(1,409	)
Total stockholders' equity			1,025,105				1,013,737				494,319				484,005				414,135
Total liabilities and stockholders' equity		$	7,614,358			$	7,815,800			$	4,643,354			$	4,691,222			$	4,325,841

 

Page 1

 

Simmons First National Corporation																		SFNC
Consolidated Average Quarter-to-Date Balance Sheets
For the Quarters Ended		Jun 30				Mar 31				Dec 31				Sep 30				Jun 30
(Unaudited)		2015				2015				2014				2014				2014
(in thousands)
ASSETS
Cash and non-interest bearing balances due from banks		$	95,954			$	68,322			$	54,485			$	50,980			$	44,671
Interest bearing balances due from banks			308,756				371,195				299,054				288,258				456,931
Federal funds sold			75,922				56,846				6,486				6,794				985
Cash and cash equivalents			480,632				496,363				360,025				346,032				502,587
Investment securities - held-to-maturity			922,411				915,405				806,069				810,085				782,900
Investment securities - available-for-sale			733,415				370,102				318,879				300,927				265,194
Mortgage loans held for sale			37,656				14,655				17,241				24,942				15,299
Assets held in trading accounts			6,592				6,782				6,848				6,841				6,850
Loans:
Legacy loans			2,363,305				2,084,551				2,008,550				1,917,155				1,817,429
Allowance for loan losses			(31,275	)			(30,072	)			(28,474	)			(27,470	)			(27,287	)
Loans acquired, not covered by FDIC loss share
(net of discount and allowance)			2,228,841				1,197,601				620,505				481,658				418,515
Loans acquired, covered by FDIC loss share
(net of discount and allowance)			97,795				104,701				111,618				119,372				128,099
Net loans			4,658,666				3,356,781				2,712,199				2,490,715				2,336,756
FDIC indemnification asset			15,448				21,515				24,457				28,311				35,940
Premises and equipment			200,875				150,564				117,018				115,577				112,994
Premises held for sale			6,131				6,126				6,794				12,521				21,142
Foreclosed assets not covered by FDIC loss share			42,994				44,059				48,745				51,097				55,304
Foreclosed assets covered by FDIC loss share			12,313				11,902				13,964				16,073				18,330
Interest receivable			23,260				19,181				17,738				15,743				15,076
Bank owned life insurance			117,662				91,760				76,578				63,798				60,895
Goodwill			314,060				175,901				109,837				88,590				78,529
Other intangible assets			47,302				31,102				17,748				15,321				14,299
Other assets			76,275				58,536				50,566				52,234				48,583
Total assets		$	7,695,692			$	5,770,734			$	4,704,706			$	4,438,807			$	4,370,678
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts		$	1,088,474			$	946,979			$	895,470			$	828,340			$	823,552
Interest bearing transaction accounts and savings deposits			3,621,060				2,601,046				2,010,827				1,869,095				1,810,436
Time deposits less than $100,000			1,037,025				715,710				545,986				555,837				577,856
Time deposits greater than $100,000			451,183				438,782				458,117				457,489				472,009
Total deposits			6,197,742				4,702,517				3,910,400				3,710,761				3,683,853
Federal funds purchased and securities sold
under agreements to repurchase			116,258				121,568				117,661				108,357				101,537
Other borrowings			179,080				183,953				121,691				117,664				116,082
Subordinated debentures			62,981				35,686				20,620				20,620				20,620
Accrued interest and other liabilities			70,312				43,825				38,869				38,950				34,637
Total liabilities			6,626,373				5,087,549				4,209,241				3,996,352				3,956,729
Stockholders' equity:
Preferred stock			30,885				10,970				-				-				-
Common stock			299				223				180				169				163
Surplus			640,172				328,830				155,672				111,551				89,552
Undivided profits			396,609				343,973				341,042				332,184				325,878
Accumulated other comprehensive income (loss)
Unrealized appreciation (depreciation) on AFS securities			1,354				(811	)			(1,429	)			(1,449	)			(1,644	)
Total stockholders' equity			1,069,319				683,185				495,465				442,455				413,949
Total liabilities and stockholders' equity		$	7,695,692			$	5,770,734			$	4,704,706			$	4,438,807			$	4,370,678

 

Page 2

 

Simmons First National Corporation																		SFNC
Consolidated Statements of Income - Quarter-to-Date
For the Quarters Ended		Jun 30				Mar 31				Dec 31				Sep 30				Jun 30
(Unaudited)		2015				2015				2014				2014				2014
(in thousands, except per share data)
INTEREST INCOME
Loans		$	70,438			$	50,986			$	45,248			$	40,082			$	38,622
Federal funds sold			73				29				13				12				2
Investment securities			8,050				5,879				5,325				4,717				4,766
Mortgage loans held for sale			375				148				188				269				168
Assets held in trading accounts			4				3				4				3				5
Interest bearing balances due from banks			229				210				167				132				279
TOTAL INTEREST INCOME			79,169				57,255				50,945				45,215				43,842
INTEREST EXPENSE
Time deposits			2,064				1,596				1,470				1,461				1,515
Other deposits			2,131				1,348				872				771				720
Federal funds purchased and securities
sold under agreements to repurchase			57				64				61				55				31
Other borrowings			1,151				1,051				992				996				988
Subordinated debentures			559				234				160				160				160
TOTAL INTEREST EXPENSE			5,962				4,293				3,555				3,443				3,414
NET INTEREST INCOME			73,207				52,962				47,390				41,772				40,428
Provision for loan losses			3,006				1,171				3,607				1,128				1,602
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES			70,201				51,791				43,783				40,644				38,826
NON-INTEREST INCOME
Trust income			2,070				2,251				2,182				1,838				1,553
Service charges on deposit accounts			8,031				6,363				6,552				6,238				6,792
Other service charges and fees			3,130				1,827				1,083				808				859
Mortgage lending income			3,449				2,262				1,457				1,812				1,262
Investment banking income			593				894				451				284				154
Debit and credit card fees			6,486				5,648				5,653				5,769				5,801
Bank owned life insurance income			746				572				727				411				377
Gain on sale of securities, net			-				(38	)			(12	)			(18	)			38
Net (loss) gain on assets covered by FDIC loss share agreements			(3,056	)			(2,671	)			(3,013	)			(3,744	)			(6,268	)
Other income			3,863				1,390				6,424				2,637				4,820
TOTAL NON-INTEREST INCOME			25,312				18,498				21,504				16,035				15,388
NON-INTEREST EXPENSE
Salaries and employee benefits			35,475				26,771				25,126				20,892				20,982
Occupancy expense, net			5,051				3,557				2,494				3,204				3,285
Furniture and equipment expense			3,241				3,268				2,732				2,363				2,215
Other real estate and foreclosure expense			1,017				381				1,395				1,864				375
Deposit insurance			1,096				870				724				877				1,085
Merger related costs			1,247				10,419				1,214				3,628				1,354
Other operating expenses			18,041				12,106				13,294				11,526				10,546
TOTAL NON-INTEREST EXPENSE			65,168				57,372				46,979				44,354				39,842
NET INCOME BEFORE INCOME TAXES			30,345				12,917				18,308				12,325				14,372
Provision for income taxes			10,250				4,182				5,669				3,537				4,464
NET INCOME			20,095				8,735				12,639				8,788				9,908
Preferred stock dividends			77				26				-				-				-
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS		$	20,018			$	8,709			$	12,639			$	8,788			$	9,908
BASIC EARNINGS PER SHARE		$	0.71			$	0.39			$	0.72			$	0.52			$	0.61
DILUTED EARNINGS PER SHARE		$	0.71			$	0.39			$	0.72			$	0.52			$	0.60

 

Page 3

 

Simmons First National Corporation																		SFNC
Consolidated Risk-Based Capital
For the Quarters Ended		Jun 30				Mar 31				Dec 31				Sep 30				Jun 30
(Unaudited)		2015				2015				2014				2014				2014
($ in thousands)
Tier 1 capital
Stockholders' equity		$	1,025,105			$	1,013,737			$	494,319			$	482,642			$	414,135
Trust preferred securities, net allowable			61,794				61,410				20,000				20,000				20,000
Disallowed intangible assets, net of deferred tax			(342,590	)			(344,140	)			(112,545	)			(109,698	)			(74,003	)
Unrealized (gain) loss on AFS securities			1,400				(1,855	)			1,336				1,952				1,409
Other			(10,297	)			(4,789	)			-				-				-
Total Tier 1 capital			735,412				724,363				403,110				394,896				361,541
Tier 2 capital
Qualifying unrealized gain on AFS equity securities			-				-				2				-				47
Qualifying allowance for loan losses and
reserve for unfunded commitments			34,284				32,600				32,073				29,167				29,621
Total Tier 2 capital			34,284				32,600				32,075				29,167				29,668
Total risk-based capital		$	769,696			$	756,963			$	435,185			$	424,063			$	391,209
Common equity
Tier 1 capital		$	735,412			$	724,363				-				-				-
Less: Non-cumulative preferred stock			(30,852	)			(30,852	)			-				-				-
Less: Trust preferred securities			(61,794	)			(61,410	)			-				-				-
Total common equity		$	642,766			$	632,101				-				-				-
Risk weighted assets		$	4,714,852			$	4,659,065			$	3,002,270			$	3,063,801			$	2,652,474
Adjusted average assets for leverage ratio		$	7,350,900			$	5,428,706			$	4,593,924			$	4,331,488			$	4,299,379
Ratios at end of quarter
Equity to assets			13.46	%			12.97	%			10.65	%			10.29	%			9.57	%
Tangible common equity to tangible assets			8.73	%			8.32	%			8.06	%			7.78	%			7.59	%
Common equity Tier 1 ratio (CET1)			13.63	%			13.57	%			-				-				-
Tier 1 leverage ratio			10.00	%			13.34	%			8.77	%			9.12	%			8.41	%
Tier 1 risk-based capital ratio			15.60	%			15.55	%			13.43	%			12.89	%			13.63	%
Total risk-based capital ratio			16.32	%			16.25	%			14.50	%			13.84	%			14.75	%

 

Page 4

 

Simmons First National Corporation																		SFNC
Consolidated Loans and Investments
For the Quarters Ended		Jun 30				Mar 31				Dec 31				Sep 30				Jun 30
(Unaudited)		2015				2015				2014				2014				2014
(in thousands)
Legacy Loan Portfolio - End of Period (1)
Consumer
Credit cards		$	174,074			$	171,413			$	185,380			$	175,822			$	176,239
Student loans			-				-				-				-				398
Other consumer			160,828				107,486				103,402				105,508				105,998
Total consumer			334,902				278,899				288,782				281,330				282,635
Real Estate
Construction			199,707				178,929				181,968				163,364				163,412
Single-family residential			662,954				507,351				455,563				436,925				417,187
Other commercial			878,109				716,021				714,797				681,848				653,734
Total real estate			1,740,770				1,402,301				1,352,328				1,282,137				1,234,333
Commercial
Commercial			388,869				324,815				291,820				249,186				233,510
Agricultural			141,502				105,228				115,658				145,157				111,567
Total commercial			530,371				430,043				407,478				394,343				345,077
Other			5,186				4,137				5,133				5,568				6,796
Total Loans		$	2,611,229			$	2,115,380			$	2,053,721			$	1,963,378			$	1,868,841
(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		$	361,744			$	390,625			$	418,914			$	455,827			$	449,201
Mortgage-backed securities			27,147				28,535				29,743				30,954				32,204
State and political subdivisions			470,698				482,316				328,310				335,329				317,938
Other securities			1,075				947				620				620				620
Total held-to-maturity			860,664				902,423				777,587				822,730				799,963
Available-for-Sale
U.S. Treasury		$	4,005			$	4,008			$	3,992			$	3,991			$	3,994
U.S. Government agencies			236,003				346,315				272,816				280,321				238,411
Mortgage-backed securities			464,857				312,011				1,572				32				1,958
State and political subdivisions			11,903				13,452				6,540				8,903				6,920
FHLB stock			13,619				15,256				5,126				5,623				4,966
Other securities			18,246				16,341				15,237				18,603				14,087
Total available-for-sale			748,633				707,383				305,283				317,473				270,336
Total investment securities		$	1,609,297			$	1,609,806			$	1,082,870			$	1,140,203			$	1,070,299
Fair value - HTM investment securities		$	863,513			$	913,037			$	780,534			$	823,446			$	802,597
Investment Securities - QTD Average
Taxable securities		$	1,163,708			$	893,946			$	782,062			$	781,685			$	722,084
Tax exempt securities			492,118				391,561				342,886				329,327				326,010
Total investment securities - QTD average		$	1,655,826			$	1,285,507			$	1,124,948			$	1,111,012			$	1,048,094

 

Page 5

 

Simmons First National Corporation																		SFNC
Consolidated Loans and Credit Coverage
For the Quarters Ended		Jun 30				Mar 31				Dec 31				Sep 30				Jun 30
(Unaudited)		2015				2015				2014				2014				2014
($ in thousands)
LOANS
Legacy loans		$	2,611,229			$	2,115,380			$	2,053,721			$	1,963,378			$	1,868,841
Allowance for loan losses (legacy loans)			(30,567	)			(29,183	)			(29,028	)			(27,076	)			(27,530	)
Legacy loans (net of allowance)			2,580,662				2,086,197				2,024,693				1,936,302				1,841,311
Loans acquired, not covered by FDIC loss share			2,171,388				2,491,316				621,020				733,914				445,515
Credit discount			(63,082	)			(72,876	)			(45,040	)			(57,858	)			(46,548	)
Loans acquired, not covered (net of discount)			2,108,306				2,418,440				575,980				676,056				398,967
Loans acquired, covered by FDIC loss share			114,296				126,629				140,038				154,183				163,775
Credit discount			(20,221	)			(23,207	)			(32,151	)			(36,025	)			(42,251	)
Allowance for loan losses (acquired covered loans)			(954	)			(954	)			(954	)			-				-
Loans acquired, covered (net of discount and allowance)			93,121				102,468				106,933				118,158				121,524
Net loans		$	4,782,089			$	4,607,105			$	2,707,606			$	2,730,516			$	2,361,802
Loan Coverage Ratios
Allowance for loan losses to legacy loans			1.17	%			1.38	%			1.41	%			1.38	%			1.47	%
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			2.91	%			2.93	%			7.25	%			7.88	%			10.45	%
Discount for credit losses on loans acquired, covered,
to total loans acquired, covered, plus discount for
credit losses on loans acquired, covered			18.53	%			19.08	%			23.64	%			23.37	%			25.80	%
Total allowance and credit coverage			2.34	%			2.67	%			3.81	%			4.24	%			4.69	%

 

Page 6

 

Simmons First National Corporation																		SFNC
Consolidated Allowance and Asset Quality
For the Quarters Ended		Jun 30				Mar 31				Dec 31				Sep 30				Jun 30
(Unaudited)		2015				2015				2014				2014				2014
($ in thousands)
Allowance for Loan Losses (Legacy Loans)
Balance, beginning of quarter		$	29,183			$	29,028			$	27,076			$	27,530			$	26,983
Loans charged off
Credit cards			802				785				859				788				725
Other consumer			366				220				781				648				426
Real estate			333				293				200				534				1,144
Commercial			-				245				310				474				186
Total loans charged off			1,501				1,543				2,150				2,444				2,481
Recoveries of loans previously charged off
Credit cards			241				213				220				190				215
Other consumer			187				133				94				122				133
Real estate			46				12				56				379				1,062
Commercial			9				169				125				171				16
Total recoveries			483				527				495				862				1,426
Net loans charged off			1,018				1,016				1,655				1,582				1,055
Provision for loan losses			2,402				1,171				3,607				1,128				1,602
Balance, end of quarter		$	30,567			$	29,183			$	29,028			$	27,076			$	27,530
Non-performing assets (1) (2)
Non-performing loans
Nonaccrual loans
Real estate		$	12,726			$	12,460			$	10,152			$	9,374			$	8,166
Commercial			2,531				1,650				1,481				1,174				1,110
Consumer			308				401				405				664				877
Total nonaccrual loans			15,565				14,511				12,038				11,212				10,153
Loans past due 90 days or more
Government guaranteed student loans			-				-				-				-				323
Other loans			1,375				498				961				713				757
Total loans past due 90 days or more			1,375				498				961				713				1,080
Total non-performing loans			16,940				15,009				12,999				11,925				11,233
Other non-performing assets
Foreclosed assets held for sale			13,022				19,644				11,803				13,167				16,745
Acquired foreclosed assets held for sale, not covered
by FDIC loss share agreements			29,644				31,079				33,053				37,603				36,597
Other non-performing assets			242				215				97				72				80
Total other non-performing assets			42,908				50,938				44,953				50,842				53,422
Total non-performing assets		$	59,848			$	65,947			$	57,952			$	62,767			$	64,655
Performing TDRs (troubled debt restructurings)		$	1,959			$	2,227			$	2,233			$	2,234			$	2,776
Ratios (1) (2)
Allowance for loan losses to total loans			1.17	%			1.38	%			1.41	%			1.38	%			1.47	%
Allowance for loan losses to non-performing loans			180	%			194	%			223	%			227	%			245	%
Non-performing loans to total loans			0.65	%			0.71	%			0.63	%			0.61	%			0.60	%
Non-performing assets (including performing TDRs)
to total assets			0.81	%			0.87	%			1.30	%			1.39	%			1.56	%
Non-performing assets to total assets			0.79	%			0.84	%			1.25	%			1.34	%			1.49	%
Non-performing assets to total assets
(excluding Gov't guaranteed student loans)			0.79	%			0.84	%			1.25	%			1.34	%			1.49	%
Annualized net charge offs to total loans			0.17	%			0.20	%			0.33	%			0.33	%			0.23	%
Annualized net credit card charge offs to
total credit card loans			1.31	%			1.32	%			1.41	%			1.31	%			1.14	%
Annualized net charge offs to total loans
(excluding credit cards)			0.08	%			0.09	%			0.22	%			0.22	%			0.13	%
Past due loans >30 days (excluding nonaccrual)			0.43	%			0.37	%			0.48	%			0.33	%			0.34	%
Past due loans >30 days (excluding nonaccrual)
(excluding Gov't guaranteed student loans)			0.41	%			0.37	%			0.48	%			0.33	%			0.32	%

 

(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 7

 

Simmons First National Corporation																		SFNC
Consolidated - Net Interest Income Analysis
For the Quarters Ended		Jun 30				Mar 31				Dec 31				Sep 30				Jun 30
(Unaudited)		2015				2015				2014				2014				2014
ASSETS
Earning Assets
Interest bearing balances due from banks			0.30	%			0.23	%			0.22	%			0.18	%			0.24	%
Investment securities			2.50	%			2.44	%			2.49	%			2.29	%			2.47	%
Mortgage loans held for sale			3.99	%			4.10	%			4.33	%			4.28	%			4.40	%
Assets held in trading accounts			0.24	%			0.18	%			0.23	%			0.17	%			0.29	%
Loans, including acquired loans			6.03	%			6.11	%			6.55	%			6.32	%			6.55	%
Total interest earning assets			4.82	%			4.68	%			4.98	%			4.71	%			4.69	%
LIABILITIES
Interest bearing liabilities
Interest bearing transaction and
savings accounts			0.24	%			0.21	%			0.17	%			0.16	%			0.16	%
Time deposits			0.56	%			0.56	%			0.58	%			0.57	%			0.58	%
Total interest bearing deposits			0.33	%			0.32	%			0.31	%			0.31	%			0.31	%
Federal funds purchased and securities
sold under agreement to repurchase			0.20	%			0.21	%			0.21	%			0.20	%			0.12	%
Other borrowings			2.58	%			2.32	%			3.23	%			3.36	%			3.41	%
Subordinated debentures			3.56	%			2.66	%			3.08	%			3.08	%			3.11	%
Total interest bearing liabilities			0.44	%			0.42	%			0.43	%			0.44	%			0.44	%
NET INTEREST MARGIN/SPREAD
Net interest spread			4.38	%			4.26	%			4.55	%			4.27	%			4.25	%
Net interest margin - quarter-to-date			4.47	%			4.34	%			4.65	%			4.36	%			4.34	%
Net interest margin - year-to-date			4.42	%			4.34	%			4.47	%			4.41	%			4.44	%

 

Page 8

 

Simmons First National Corporation																		SFNC
Consolidated - Selected Financial Data
For the Quarters Ended		Jun 30				Mar 31				Dec 31				Sep 30				Jun 30
(Unaudited)		2015				2015				2014				2014				2014
($ in thousands, except share data)
QUARTER-TO-DATE
Financial Highlights - Core (non-GAAP)
Core earnings (excludes nonrecurring items) (1)		$	22,444			$	15,700			$	11,387			$	10,684			$	9,153
Diluted core earnings per share (1)			0.76				0.70				0.64				0.63				0.56
Core net interest margin (FTE) (2)			3.87	%			3.55	%			3.63	%			3.51	%			3.49	%
Core efficiency ratio (1)			58.51	%			62.24	%			64.32	%			64.89	%			68.15	%
Core return on average assets (1)			1.17	%			1.10	%			0.96	%			0.95	%			0.84	%
Core return on average common equity (1)			8.67	%			9.47	%			9.12	%			9.58	%			8.87	%
Core return on tangible common equity (1)			13.80	%			14.16	%			12.65	%			12.84	%			11.78	%
Financial Highlights - GAAP
Net Income		$	20,018			$	8,709			$	12,639			$	8,788			$	9,908
Diluted earnings per share			0.71				0.39				0.72				0.52				0.60
Return on average assets			1.04	%			0.61	%			1.07	%			0.79	%			0.91	%
Return on average common equity			7.73	%			5.25	%			10.12	%			7.88	%			9.60	%
Return on tangible common equity			12.36	%			8.07	%			14.00	%			10.62	%			12.72	%
Net interest margin (FTE)			4.47	%			4.34	%			4.65	%			4.36	%			4.34	%
FTE adjustment			2,303				1,857				1,751				1,702				1,695
Amortization of intangibles			1,388				899				565				454				452
Amortization of intangibles, net of taxes			844				546				343				276				275
Average earning assets			6,774,693				5,121,838				4,195,250				3,956,032				3,892,202
Average interest bearing liabilities			5,467,587				4,096,745				3,274,902				3,129,062				3,098,540
Average diluted shares outstanding			29,987,471				22,350,272				18,075,537				16,916,764				16,360,696
Cash dividends declared per common share			0.23				0.23				0.22				0.22				0.22
YEAR-TO-DATE
Financial Highlights - Core (non-GAAP)
Core earnings (excludes nonrecurring items) (1)		$	38,144			$	15,700			$	38,706			$	27,319			$	16,635
Diluted core earnings per share (1)			1.46				0.70				2.29				1.65				1.02
Core net interest margin (FTE) (2)			3.74	%			3.55	%			3.53	%			3.49	%			3.49	%
Core efficiency ratio (1)			60.08	%			62.24	%			67.22	%			68.41	%			70.35	%
Core return on average assets (1)			1.14	%			1.10	%			0.86	%			0.83	%			0.77	%
Core return on average common equity (1)			8.99	%			9.47	%			8.79	%			8.66	%			8.15	%
Core return on tangible common equity (1)			13.96	%			14.16	%			11.89	%			11.57	%			10.88	%
Financial Highlights - GAAP
Net Income		$	28,727			$	8,709			$	35,688			$	23,049			$	14,261
Diluted earnings per share			1.10				0.39				2.11				1.39				0.87
Return on average assets			0.86	%			0.61	%			0.80	%			0.70	%			0.65	%
Return on average common equity			6.77	%			5.25	%			8.11	%			7.30	%			6.95	%
Return on tangible common equity			10.63	%			8.07	%			10.99	%			9.82	%			9.33	%
Net interest margin (FTE)			4.42	%			4.34	%			4.47	%			4.41	%			4.44	%
FTE adjustment			4,160				1,857				6,840				5,089				3,387
Amortization of intangibles			2,287				899				1,979				1,359				905
Amortization of intangibles, net of taxes			1,390				546				1,203				826				550
Average earning assets			5,948,265				5,121,838				3,975,903				3,903,290				3,876,918
Average interest bearing liabilities			4,782,167				4,096,745				3,176,716				3,143,984				3,151,446
Average diluted shares outstanding			26,203,942				22,350,272				16,922,026				16,532,689				16,336,901
Cash dividends declared per common share			0.46				0.23				0.88				0.66				0.44
END OF PERIOD
Book value per share		$	32.23			$	31.89			$	27.38			$	26.82			$	25.36
Tangible book value per share			20.15				19.76				20.15				19.72				19.69
Shares outstanding			29,894,903				29,850,034				18,052,488				17,992,261				16,331,341
Full-time equivalent employees			2,043				2,076				1,338				1,397				1,281
Total number of ATM's			186				179				124				129				120
Total number of financial centers			152				164				109				113				104

 

(1) Core earnings exclude nonrecurring items, which is a non-GAAP measurement

(2) Excludes accretable yield adjustment on loans, which is a non-GAAP measurement

 

Page 9 

 

Simmons First National Corporation																		SFNC
Consolidated - Reconciliation of Core Earnings (non-GAAP)
For the Quarters Ended		Jun 30				Mar 31				Dec 31				Sep 30				Jun 30
(Unaudited)		2015				2015				2014				2014				2014
(in thousands, except per share data)
QUARTER-TO-DATE
Net Income		$	20,018			$	8,709			$	12,639			$	8,788			$	9,908
Nonrecurring items
Gain on sale of merchant services			-				-				-				-				(1,000	)
Merger related costs			1,247				10,419				1,218				3,628				1,354
Change-in-control payments			-				-				885				-				-
Branch right sizing			2,745				35				(4,221	)			(705	)			(2,011	)
Charter consolidation costs			-				-				42				196				414
Tax effect (1)			(1,566	)			(3,463	)			824				(1,223	)			488
Net nonrecurring items			2,426				6,991				(1,252	)			1,896				(755	)
Core earnings (non-GAAP)		$	22,444			$	15,700			$	11,387			$	10,684			$	9,153
Diluted earnings per share		$	0.71			$	0.39			$	0.72			$	0.52			$	0.60
Nonrecurring items
Gain on sale of merchant services			-				-				-				-				(0.06	)
Merger related costs			0.03				0.47				0.07				0.21				0.08
Change-in-control payments			-				-				0.05				-				-
Branch right sizing			0.06				-				(0.24	)			(0.04	)			(0.12	)
Charter consolidation costs			-				-				-				0.01				0.03
Tax effect (1)			(0.04	)			(0.16	)			0.04				(0.07	)			0.03
Net nonrecurring items			0.05				0.31				(0.08	)			0.11				(0.04	)
Diluted core earnings per share (non-GAAP)		$	0.76			$	0.70			$	0.64			$	0.63			$	0.56
YEAR-TO-DATE
Net Income		$	28,727			$	8,709			$	35,687			$	23,049			$	14,261
Nonrecurring items
Gain on sale of merchant services			-				-				(1,000	)			(1,000	)			(1,000	)
Merger related costs			11,665				10,419				7,472				6,254				2,626
Change-in-control payments			-				-				885				-				-
Branch right sizing			2,780				35				(3,059	)			1,162				1,867
Charter consolidation costs			-				-				652				610				414
Tax effect (1)			(5,028	)			(3,463	)			(1,931	)			(2,745	)			(1,533	)
Net nonrecurring items			9,417				6,991				3,019				4,281				2,374
Core earnings (non-GAAP)		$	38,144			$	15,700			$	38,706			$	27,330			$	16,635
Diluted earnings per share		$	1.10			$	0.39			$	2.11			$	1.39			$	0.87
Nonrecurring items
Gain on sale of merchant services			-				-				(0.06	)			(0.06	)			(0.06	)
Merger related costs			0.45				0.47				0.44				0.37				0.16
Change-in-control payments			-				-				0.05				-				-
Branch right sizing			0.11				-				(0.16	)			0.08				0.12
Charter consolidation costs			-				-				0.04				0.04				0.03
Tax effect (1)			(0.20	)			(0.16	)			(0.13	)			(0.17	)			(0.10	)
Net nonrecurring items			0.36				0.31				0.18				0.26				0.15
Diluted core earnings per share (non-GAAP)		$	1.46			$	0.70			$	2.29			$	1.65			$	1.02

 

 (1) Effective tax rate of 39.225%, adjusted for non-deductible merger related costs.

 

 Page 10