EXHIBIT 99.1

 

 

 

 

For Immediate Release:

April 21, 2016

 

 

Simmons Announces 48 Percent Increase in Core Earnings

 

Pine Bluff, AR – Simmons First National Corporation (NASDAQ-GS: SFNC) today announced core earnings of $23.2 million for the first quarter of 2016, an increase of $7.5 million, or 47.7 percent, compared with the same quarter last year. Diluted core earnings per share were $0.76, an increase of $0.06, or 8.6 percent.

 

Including the non-core items, net income was $23.5 million for the first quarter of 2016, an increase of $14.8 million, or 169.6 percent, compared with the same quarter last year. Diluted earnings per share were $0.77, an increase of $0.38, or 97.4 percent.

 

“We believe that our operating results reflect the successful integration of 12 separately chartered banks and two trust companies over the past two years. We continue to pursue growth opportunities and improvement in our organization as evidenced by our recent charter conversion to a state member bank,” said George A. Makris, Jr., chairman and CEO.

 

Loans

 

Total loans, including those acquired, were $4.9 billion at March 31, 2016, an increase of $290 million, or 6.3 percent, compared with the same period in 2015. Legacy loans (all loans excluding acquired loans) grew $1.4 billion, or 64.2 percent. On a linked quarter basis, total loan growth was $10.7 million. Adjusting for seasonality in the credit card and agricultural loan portfolios, loans grew by $31.4 million during the quarter.

 

Deposits

 

At March 31, 2016, total deposits were $6.1 billion, a decrease of $195 million, or 3.1 percent, compared with the same period in 2015. Total non-time deposits were $4.8 billion, or 78.9 percent of total deposits.

 

Net Interest Income

 

The company’s net interest income for the first quarter of 2016 was $70.2 million, an increase of $17.3 million, or 32.6 percent, from the same period of 2015. This increase was driven by growth in the legacy loan portfolio and earning assets acquired through the Community First and Liberty transactions. Net interest margin was 4.41 percent for the quarter ended March 31, 2016, a 7 basis-point increase from the same quarter of 2015.

 

Included in interest income was the yield accretion recognized on acquired loans of $8.1 million and $10.0 million for the first quarter of 2016 and 2015, respectively. The company’s core net interest margin, excluding the accretion, was 3.92 percent for the first quarter of 2016, a 37 basis-point increase from the same quarter of 2015.

 

  

 

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

 

Non-Interest Income

 

Non-interest income for the first quarter was $29.5 million, an increase of $11.2 million compared with the first quarter of 2015. The increase in non-interest income was primarily due to additional service charge and fee income, mortgage lending and trust income resulting from the 2015 acquisitions and gains on sale of other real estate and investment securities. Additional trust income resulted from the completed acquisition of Ozark Trust. Included in the quarter was $594,000 of gain related to the early retirement of trust preferred securities. Losses on FDIC-covered assets decreased by $2.7 million with the elimination of indemnification asset amortization due to the company’s 2015 termination of loss-sharing agreements with the FDIC.

 

Non-Interest Expense

 

Non-interest expense for the first quarter of 2016 was $61.8 million. Included in the quarter were $107,000 of merger-related and branch right-sizing expenses.

 

Asset Quality

 

All acquired loans are recorded at their discounted net present value; therefore, they are excluded from the computations of the asset quality ratios for the legacy loan portfolio, except for their inclusion in total assets.

 

At March 31, 2016, the allowance for loan losses for legacy loans was $32.7 million, with a $1.0 million allowance for acquired loans. The loan discount credit mark was $45.1 million, for a total of $78.8 million of coverage. This equates to a total coverage ratio of 1.6 percent of gross loans. The ratio of credit mark and related allowance to acquired loans was 3.1 percent.

 

The company's allowance for loan losses on legacy loans at March 31, 2016 was 0.94 percent of total loans and 93 percent of non-performing loans. In the legacy portfolio, non-performing loans as a percent of total loans were 1.01 percent. The increase in the non-performing ratio from the fourth quarter is primarily the result of a single credit totaling $13.5 million. Excluding this credit, the non-performing ratio was relatively unchanged from the previous quarter, at 0.62 percent versus 0.58 percent. The 2016 year-to-date net charge-off ratio, excluding credit cards, was 11 basis points, and the year-to-date credit card charge-off ratio was 1.46 percent.

 

Capital

 

At March 31, 2016, common stockholders' equity was $1.1 billion, book value per share was $35.35 and tangible book value per share was $22.84. The company's ratio of stockholders' equity to total assets was 14.22 percent and its ratio of tangible common equity to tangible assets was 9.7 percent.

 

Simmons First National Corporation

 

Simmons First National Corporation is an Arkansas-based financial holding company with total assets of $7.5 billion, 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, April 21, 2016. 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 84913510. 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 news 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 news 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

SVP 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		Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
(Unaudited)		2016				2015				2015				2015				2015
($ in thousands)
ASSETS
Cash and non-interest bearing balances due from banks		$	118,468			$	97,656			$	106,678			$	69,770			$	83,424
Interest bearing balances due from banks			100,593				154,606				284,645				173,130				423,986
Federal funds sold			4,000				-				9,675				49,570				178,418
Cash and cash equivalents			223,061				252,262				400,998				292,470				685,828
Interest bearing balances due from banks - time			11,188				14,107				16,504				24,189				25,000
Investment securities - held-to-maturity			674,502				705,373				776,294				861,596				902,423
Investment securities - available-for-sale			857,673				821,407				703,347				747,701				707,383
Mortgage loans held for sale			24,563				30,265				15,556				48,094				25,513
Assets held in trading accounts			7,074				4,422				6,292				6,481				6,528
Loans:
Legacy loans			3,472,691				3,246,454				2,839,278				2,611,229				2,115,380
Allowance for loan losses			(32,681	)			(31,351	)			(30,380	)			(30,567	)			(29,183	)
Loans acquired, not covered by FDIC loss share
(net of discount and allowance)			1,457,370				1,672,901				2,013,816				2,108,306				2,418,440
Loans acquired, covered by FDIC loss share
(net of discount and allowance)			-				-				-				93,121				102,468
Net loans			4,897,380				4,888,004				4,822,714				4,782,089				4,607,105
FDIC indemnification asset			-				-				-				13,020				15,965
Premises and equipment			192,327				193,618				190,182				191,335				198,106
Premises held for sale			2,364				923				923				6,587				-
Foreclosed assets not covered by FDIC loss share			41,126				44,820				48,073				42,666				50,723
Foreclosed assets covered by FDIC loss share			-				-				-				12,833				12,010
Interest receivable			23,545				25,793				26,873				24,129				24,719
Bank owned life insurance			130,092				131,536				118,922				118,073				117,296
Goodwill			327,686				327,686				314,344				314,344				314,344
Other intangible assets			51,783				53,237				44,904				46,605				47,960
Other assets			72,589				66,205				73,768				82,146				74,897
Total assets		$	7,536,953			$	7,559,658			$	7,559,694			$	7,614,358			$	7,815,800
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts		$	1,274,816			$	1,280,234			$	1,212,724			$	1,141,285			$	1,123,966
Interest bearing transaction accounts and savings deposits			3,524,808				3,485,845				3,521,840				3,581,049				3,627,870
Time deposits less than $100,000			674,915				694,262				673,651				719,606				756,978
Time deposits greater than $100,000			605,236				625,755				681,585				728,082				765,894
Total deposits			6,079,775				6,086,096				6,089,800				6,170,022				6,274,708
Federal funds purchased and securities sold
under agreements to repurchase			97,429				99,398				110,437				111,792				111,484
Other borrowings			176,829				162,289				173,426				171,321				284,386
Subordinated debentures			60,077				60,570				61,906				61,794				61,644
Accrued interest and other liabilities			50,859				74,450				78,684				74,324				69,841
Total liabilities			6,464,969				6,482,803				6,514,253				6,589,253				6,802,063
Stockholders' equity:
Preferred stock			-				30,852				30,852				30,852				30,852
Common stock			303				303				299				299				299
Surplus			665,850				662,378				642,400				640,895				639,493
Undivided profits			402,265				385,987				369,172				354,459				341,238
Accumulated other comprehensive income (loss):
Unrealized appreciation (depreciation) on AFS securities			3,566				(2,665	)			2,718				(1,400	)			1,855
Total stockholders' equity			1,071,984				1,076,855				1,045,441				1,025,105				1,013,737
Total liabilities and stockholders' equity		$	7,536,953			$	7,559,658			$	7,559,694			$	7,614,358			$	7,815,800

 

Page 1

 

 

Simmons First National Corporation																		SFNC
Consolidated Average Quarter-to-Date Balance Sheets
For the Quarters Ended		Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
(Unaudited)		2016				2015				2015				2015				2015
($ in thousands)
ASSETS
Cash and non-interest bearing balances due from banks		$	109,288			$	103,204			$	94,695			$	69,137			$	59,711
Interest bearing balances due from banks			154,755				232,446				206,467				308,756				371,195
Federal funds sold			1,839				1,930				19,086				75,922				56,846
Cash and cash equivalents			265,882				337,580				320,248				453,815				487,752
Interest bearing balances due from banks - time			12,626				15,484				20,251				26,817				8,611
Investment securities - held-to-maturity			691,170				733,349				728,437				922,877				915,405
Investment securities - available-for-sale			815,502				773,550				838,596				732,949				370,102
Mortgage loans held for sale			26,616				21,294				26,379				37,656				14,655
Assets held in trading accounts			5,196				6,150				6,401				6,592				6,782
Loans:
Legacy loans			3,324,549				2,898,987				2,725,254				2,363,305				2,084,551
Allowance for loan losses			(31,992	)			(31,521	)			(31,709	)			(31,275	)			(30,072	)
Loans acquired, not covered by FDIC loss share
(net of discount and allowance)			1,565,136				1,969,296				2,020,236				2,228,841				1,197,601
Loans acquired, covered by FDIC loss share
(net of discount and allowance)			-				-				89,578				97,795				104,701
Net loans			4,857,693				4,836,762				4,803,359				4,658,666				3,356,781
FDIC indemnification asset			-				-				10,838				15,448				21,515
Premises and equipment			193,543				192,414				191,107				200,875				150,564
Premises held for sale			1,414				923				5,775				6,131				6,126
Foreclosed assets not covered by FDIC loss share			43,815				46,860				40,273				42,994				44,059
Foreclosed assets covered by FDIC loss share			-				-				12,345				12,313				11,902
Interest receivable			23,736				25,999				24,403				23,260				19,181
Bank owned life insurance			131,895				128,339				118,489				117,662				91,760
Goodwill			327,677				320,216				314,282				314,060				175,901
Other intangible assets			52,498				44,302				45,712				47,302				31,102
Other assets			49,922				67,347				100,872				76,275				58,536
Total assets		$	7,499,185			$	7,550,569			$	7,607,767			$	7,695,692			$	5,770,734
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts		$	1,225,311			$	1,295,713			$	1,121,078			$	1,088,474			$	946,979
Interest bearing transaction accounts and savings deposits			3,484,571				3,442,857				3,600,930				3,621,060				2,601,046
Time deposits less than $100,000			685,382				689,368				694,872				739,748				573,867
Time deposits greater than $100,000			618,232				649,048				703,056				748,460				580,625
Total deposits			6,013,496				6,076,986				6,119,936				6,197,742				4,702,517
Federal funds purchased and securities sold
under agreements to repurchase			113,551				108,389				109,311				116,258				121,568
Other borrowings			184,000				167,167				197,832				179,080				183,953
Subordinated debentures			60,109				61,697				61,851				62,981				35,686
Accrued interest and other liabilities			53,240				73,768				74,696				70,312				43,825
Total liabilities			6,424,396				6,488,007				6,563,626				6,626,373				5,087,549
Stockholders' equity:
Preferred stock			9,493				30,852				30,852				30,885				10,970
Common stock			303				301				299				299				223
Surplus			664,926				651,824				641,738				640,172				328,830
Undivided profits			398,808				379,064				371,291				396,609				343,973
Accumulated other comprehensive income (loss):
Unrealized appreciation (depreciation) on AFS securities			1,259				521				(39	)			1,354				(811	)
Total stockholders' equity			1,074,789				1,062,562				1,044,141				1,069,319				683,185
Total liabilities and stockholders' equity		$	7,499,185			$	7,550,569			$	7,607,767			$	7,695,692			$	5,770,734

 

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Simmons First National Corporation																		SFNC
Consolidated Statements of Income - Quarter-to-Date
For the Quarters Ended		Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
(Unaudited)		2016				2015				2015				2015				2015
($ in thousands, except per share data)
INTEREST INCOME
Loans		$	66,678			$	70,511			$	76,432			$	70,438			$	50,986
Federal funds sold			10				10				15				73				29
Investment securities			8,506				8,350				8,335				8,050				5,879
Mortgage loans held for sale			278				237				291				375				148
Assets held in trading accounts			6				6				4				4				3
Interest bearing balances due from banks			144				225				122				229				210
TOTAL INTEREST INCOME			75,622				79,339				85,199				79,169				57,255
INTEREST EXPENSE
Time deposits			1,636				1,858				1,936				2,064				1,596
Other deposits			2,018				2,105				2,222				2,131				1,348
Federal funds purchased and securities
sold under agreements to repurchase			65				60				55				57				64
Other borrowings			1,128				1,084				1,812				1,151				1,051
Subordinated debentures			543				481				498				559				234
TOTAL INTEREST EXPENSE			5,390				5,588				6,523				5,962				4,293
NET INTEREST INCOME			70,232				73,751				78,676				73,207				52,962
Provision for loan losses			2,823				3,230				1,615				3,006				1,171
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES			67,409				70,521				77,061				70,201				51,791
NON-INTEREST INCOME
Trust income			3,631				2,725				2,215				2,070				2,251
Service charges on deposit accounts			7,316				8,104				8,488				8,031				6,363
Other service charges and fees			1,909				1,654				2,672				2,766				1,666
Mortgage lending income			3,792				2,298				3,446				3,449				2,262
Investment banking income			687				784				663				593				894
Debit and credit card fees			7,200				7,647				6,879				6,486				5,648
Bank owned life insurance income			997				614				748				746				572
Gain on sale of securities, net			329				305				40				-				(38	)
Net (loss) gain on assets covered by FDIC loss-share agreements			-				-				(9,085	)			(3,056	)			(2,671	)
Other income			3,642				4,518				7,006				3,863				1,390
TOTAL NON-INTEREST INCOME			29,503				28,649				23,072				24,948				18,337
NON-INTEREST EXPENSE
Salaries and employee benefits			34,773				39,523				37,000				35,111				26,610
Occupancy expense, net			4,471				3,418				4,812				5,051				3,557
Furniture and equipment expense			3,947				3,731				4,202				3,241				3,268
Other real estate and foreclosure expense			966				1,167				2,297				1,017				381
Deposit insurance			1,148				1,222				1,013				1,096				870
Merger-related costs			93				1,237				857				1,247				10,419
Other operating expenses			16,391				17,508				17,314				18,041				12,106
TOTAL NON-INTEREST EXPENSE			61,789				67,806				67,495				64,804				57,211
NET INCOME BEFORE INCOME TAXES			35,123				31,364				32,638				30,345				12,917
Provision for income taxes			11,618				7,505				10,963				10,250				4,182
NET INCOME			23,505				23,859				21,675				20,095				8,735
Preferred stock dividends			24				77				77				77				26
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS		$	23,481			$	23,782			$	21,598			$	20,018			$	8,709
BASIC EARNINGS PER SHARE		$	0.77			$	0.79			$	0.72			$	0.67			$	0.39
DILUTED EARNINGS PER SHARE		$	0.77			$	0.78			$	0.72			$	0.67			$	0.39

 

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Simmons First National Corporation																		SFNC
Consolidated Core Earnings - Quarter-to-Date (non-GAAP)
For the Quarters Ended		Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
(Unaudited)		2016				2015				2015				2015				2015
($ in thousands, except per share data)
INTEREST INCOME
Loans		$	66,678			$	70,511			$	76,432			$	70,438			$	50,986
Federal funds sold			10				10				15				73				29
Investment securities			8,506				8,350				8,335				8,050				5,879
Mortgage loans held for sale			278				237				291				375				148
Assets held in trading accounts			6				6				4				4				3
Interest bearing balances due from banks			144				225				122				229				210
TOTAL INTEREST INCOME			75,622				79,339				85,199				79,169				57,255
INTEREST EXPENSE
Time deposits			1,636				1,858				1,936				2,064				1,596
Other deposits			2,018				2,105				2,222				2,131				1,348
Federal funds purchased and securities
sold under agreements to repurchase			65				60				55				57				64
Other borrowings			1,128				1,084				1,812				1,151				1,051
Subordinated debentures			543				481				498				559				234
TOTAL INTEREST EXPENSE			5,390				5,588				6,523				5,962				4,293
NET INTEREST INCOME			70,232				73,751				78,676				73,207				52,962
Provision for loan losses			2,823				3,230				1,615				3,006				1,171
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES			67,409				70,521				77,061				70,201				51,791
NON-INTEREST INCOME
Trust income			3,631				2,725				2,215				2,070				2,251
Service charges on deposit accounts			7,316				8,104				8,488				8,031				6,363
Other service charges and fees			1,909				1,654				2,672				2,766				1,666
Mortgage lending income			3,792				2,298				3,446				3,449				2,262
Investment banking income			687				784				663				593				894
Debit and credit card fees			7,200				7,647				6,879				6,486				5,648
Bank owned life insurance income			997				614				748				746				572
Gain on sale of securities, net			329				305				40				-				(38	)
Net (loss) gain on assets covered by FDIC loss-share agreements			-				-				(1,609	)			(3,056	)			(2,671	)
Other income			3,048				4,518				4,737				4,396				1,381
TOTAL NON-INTEREST INCOME			28,909				28,649				28,279				25,481				18,328
NON-INTEREST EXPENSE
Salaries and employee benefits			34,773				37,314				36,919				34,960				26,610
Occupancy expense, net			4,461				3,358				4,680				5,013				3,523
Furniture and equipment expense			3,947				3,731				4,172				3,209				3,268
Other real estate and foreclosure expense			966				1,167				2,297				1,017				381
Deposit insurance			1,148				1,222				1,013				1,096				870
Other operating expenses			16,387				17,508				17,094				16,050				12,097
TOTAL NON-INTEREST EXPENSE			61,682				64,300				66,175				61,345				46,749
CORE EARNINGS BEFORE INCOME TAXES (non-GAAP)			34,636				34,870				39,165				34,337				23,370
Provision for income taxes			11,427				8,880				13,523				11,816				7,644
CORE EARNINGS (non-GAAP)			23,209				25,990				25,642				22,521				15,726
Preferred stock dividends			24				77				77				77				26
CORE EARNINGS AVAILABLE TO COMMON S/H (non-GAAP)		$	23,185			$	25,913			$	25,565			$	22,444			$	15,700
BASIC CORE EARNINGS PER SHARE (non-GAAP)		$	0.76			$	0.86			$	0.85			$	0.75			$	0.71
DILUTED CORE EARNINGS PER SHARE (non-GAAP)		$	0.76			$	0.86			$	0.85			$	0.75			$	0.70

 

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Simmons First National Corporation																		SFNC
Consolidated Risk-Based Capital
For the Quarters Ended		Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
(Unaudited)		2016				2015				2015				2015				2015
($ in thousands)
Tier 1 capital
Stockholders' equity		$	1,071,984			$	1,076,855			$	1,045,441			$	1,025,105			$	1,013,737
Trust preferred securities, net allowable			60,077				60,570				61,906				61,794				61,410
Disallowed intangible assets, net of deferred tax			(335,166	)			(331,931	)			(314,735	)			(342,590	)			(344,140	)
Unrealized loss (gain) on AFS securities			(3,566	)			2,665				(2,718	)			1,400				(1,855	)
Other			-				-				-				(10,297	)			(4,789	)
Total Tier 1 capital			793,329				808,159				789,894				735,412				724,363
Tier 2 capital
Qualifying unrealized gain on AFS equity securities			-				-				-				-				-
Qualifying allowance for loan losses and
reserve for unfunded commitments			36,398				35,068				34,097				34,284				32,600
Total Tier 2 capital			36,398				35,068				34,097				34,284				32,600
Total risk-based capital		$	829,727			$	843,227			$	823,991			$	769,696			$	756,963
Common equity
Tier 1 capital		$	793,329			$	808,159			$	789,894			$	735,412			$	724,363
Less: Non-cumulative preferred stock			-				(30,852	)			(30,852	)			(30,852	)			(30,852	)
Less: Trust preferred securities			(60,077	)			(60,570	)			(61,906	)			(61,794	)			(61,410	)
Total common equity		$	733,252			$	716,737			$	697,136			$	642,766			$	632,101
Risk weighted assets		$	5,293,395			$	5,044,453			$	4,986,641			$	4,714,852			$	4,659,065
Adjusted average assets for leverage ratio		$	7,167,839			$	7,218,559			$	7,293,113			$	7,350,900			$	5,428,706
Ratios at end of quarter
Equity to assets			14.22	%			14.24	%			13.83	%			13.46	%			12.97	%
Tangible common equity to tangible assets			9.68	%			9.26	%			9.10	%			8.73	%			8.32	%
Common equity Tier 1 ratio (CET1)			13.85	%			14.21	%			13.98	%			13.63	%			13.57	%
Tier 1 leverage ratio			11.07	%			11.20	%			10.83	%			10.00	%			13.34	%
Tier 1 risk-based capital ratio			14.99	%			16.02	%			15.84	%			15.60	%			15.55	%
Total risk-based capital ratio			15.67	%			16.72	%			16.52	%			16.32	%			16.25	%

 

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Simmons First National Corporation																		SFNC
Consolidated Loans and Investments
For the Quarters Ended		Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
(Unaudited)		2016				2015				2015				2015				2015
($ in thousands)
Legacy Loan Portfolio - End of Period (1)
Consumer
Credit cards		$	167,803			$	177,288			$	171,701			$	174,074			$	171,413
Other consumer			227,480				208,380				182,472				160,828				107,486
Total consumer			395,283				385,668				354,173				334,902				278,899
Real Estate
Construction			300,042				279,740				253,761				199,707				178,929
Single-family residential			746,754				696,180				623,089				662,954				507,351
Other commercial			1,327,372				1,229,072				1,037,559				878,109				716,021
Total real estate			2,374,168				2,204,992				1,914,409				1,740,770				1,402,301
Commercial
Commercial			551,695				500,116				394,422				388,869				324,815
Agricultural			143,033				148,563				170,257				141,502				105,228
Total commercial			694,728				648,679				564,679				530,371				430,043
Other			8,512				7,115				6,017				5,186				4,137
Total Loans		$	3,472,691			$	3,246,454			$	2,839,278			$	2,611,229			$	2,115,380
(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		$	223,484			$	237,139			$	285,071			$	361,744			$	390,625
Mortgage-backed securities			23,734				24,774				25,913				27,146				28,535
State and political subdivisions			424,586				440,676				464,245				471,631				482,316
Other securities			2,698				2,784				1,065				1,075				947
Total held-to-maturity			674,502				705,373				776,294				861,596				902,423
Available-for-Sale
U.S. Treasury		$	4,302			$	3,994			$	4,008			$	4,005			$	4,008
U.S. Government agencies			78,308				120,237				153,576				236,003				346,315
Mortgage-backed securities			722,982				647,425				502,344				464,857				312,011
State and political subdivisions			11,260				9,874				10,976				10,971				13,452
FHLB stock			7,838				7,823				14,275				13,619				15,256
Other securities			32,983				32,054				18,168				18,246				16,341
Total available-for-sale			857,673				821,407				703,347				747,701				707,383
Total investment securities		$	1,532,175			$	1,526,780			$	1,479,641			$	1,609,297			$	1,609,806
Fair value - HTM investment securities		$	686,835			$	713,371			$	785,030			$	863,349			$	913,037
Investment Securities - QTD Average
Taxable securities		$	1,067,302			$	1,043,268			$	1,088,597			$	1,163,708			$	893,946
Tax exempt securities			439,370				463,631				478,436				492,118				391,561
Total investment securities - QTD average		$	1,506,672			$	1,506,899			$	1,567,033			$	1,655,826			$	1,285,507

 

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Simmons First National Corporation																		SFNC
Consolidated Loans and Credit Coverage
For the Quarters Ended		Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
(Unaudited)		2016				2015				2015				2015				2015
($ in thousands)
LOANS
Legacy loans		$	3,472,691			$	3,246,454			$	2,839,278			$	2,611,229			$	2,115,380
Allowance for loan losses (legacy loans)			(32,681	)			(31,351	)			(30,380	)			(30,567	)			(29,183	)
Legacy loans (net of allowance)			3,440,010				3,215,103				2,808,898				2,580,662				2,086,197
Loans acquired, not covered by FDIC loss share			1,503,482				1,729,557				2,085,211				2,171,388				2,491,316
Credit discount			(45,158	)			(55,702	)			(70,441	)			(63,082	)			(72,876	)
Allowance for loan losses (loans acquired, not covered)			(954	)			(954	)			(954	)			-				-
Loans acquired, not covered (net of discount and allowance)			1,457,370				1,672,901				2,013,816				2,108,306				2,418,440
Loans acquired, covered by FDIC loss share			-				-				-				114,296				126,629
Credit discount			-				-				-				(20,221	)			(23,207	)
Allowance for loan losses (acquired covered loans)			-				-				-				(954	)			(954	)
Loans acquired, covered (net of discount and allowance)			-				-				-				93,121				102,468
Net loans		$	4,897,380			$	4,888,004			$	4,822,714			$	4,782,089			$	4,607,105
Loan Coverage Ratios
Allowance for loan losses to legacy loans			0.94	%			0.97	%			1.07	%			1.17	%			1.38	%
Discount for credit losses and allowance on loans acquired
to total loans acquired plus discount for credit losses
and allowance on loans acquired (non-GAAP)			3.07	%			3.28	%			3.42	%			3.69	%			3.71	%
Total allowance and credit coverage (non-GAAP)			1.58	%			1.77	%			2.07	%			2.34	%			2.67	%

 

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Simmons First National Corporation																		SFNC
Consolidated Allowance and Asset Quality
For the Quarters Ended		Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
(Unaudited)		2016				2015				2015				2015				2015
($ in thousands)
Allowance for Loan Losses (Legacy Loans)
Balance, beginning of quarter		$	31,351			$	30,380			$	30,567			$	29,183			$	29,028
Loans charged off
Credit cards			859				757				763				802				785
Other consumer			393				489				597				366				220
Real estate			229				845				109				333				293
Commercial			476				654				516				-				245
Total loans charged off			1,957				2,745				1,985				1,501				1,543
Recoveries of loans previously charged off
Credit cards			242				223				213				241				213
Other consumer			103				140				78				187				133
Real estate			112				120				25				46				12
Commercial			7				3				-				9				169
Total recoveries			464				486				316				483				527
Net loans charged off			1,493				2,259				1,669				1,018				1,016
Provision for loan losses			2,823				3,230				1,482				2,402				1,171
Balance, end of quarter		$	32,681			$	31,351			$	30,380			$	30,567			$	29,183
Non-performing assets (1) (2)
Non-performing loans
Nonaccrual loans			34,244				17,714				15,305				15,565				14,511
Loans past due 90 days or more			881				1,191				1,506				1,375				498
Total non-performing loans			35,125				18,905				16,811				16,940				15,009
Other non-performing assets
Foreclosed assets held for sale, not covered			41,126				44,820				48,073				42,666				50,723
Other non-performing assets			256				211				172				242				215
Total other non-performing assets			41,382				45,031				48,245				42,908				50,938
Total non-performing assets		$	76,507			$	63,936			$	65,056			$	59,848			$	65,947
Performing TDRs (troubled debt restructurings)		$	10,759			$	3,031			$	1,955			$	1,959			$	2,227
Ratios (1) (2)
Allowance for loan losses to total loans			0.94	%			0.97	%			1.07	%			1.17	%			1.38	%
Allowance for loan losses to non-performing loans			93	%			166	%			181	%			180	%			194	%
Non-performing loans to total loans			1.01	%			0.58	%			0.59	%			0.65	%			0.71	%
Non-performing assets (including performing TDRs)
to total assets			1.16	%			0.89	%			0.89	%			0.81	%			0.87	%
Non-performing assets to total assets			1.02	%			0.85	%			0.86	%			0.79	%			0.84	%
Annualized net charge offs to total loans			0.18	%			0.31	%			0.24	%			0.17	%			0.20	%
Annualized net credit card charge offs to
total credit card loans			1.46	%			1.22	%			1.26	%			1.31	%			1.32	%
Annualized net charge offs to total loans
(excluding credit cards)			0.11	%			0.25	%			0.17	%			0.08	%			0.09	%

 

(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		Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
(Unaudited)		2016				2015				2015				2015				2015
ASSETS
Earning Assets
Interest bearing balances due from banks			0.35	%			0.36	%			0.23	%			0.30	%			0.23	%
Investment securities			2.82	%			2.77	%			2.65	%			2.50	%			2.44	%
Mortgage loans held for sale			4.20	%			4.42	%			4.38	%			3.99	%			4.10	%
Assets held in trading accounts			0.46	%			0.39	%			0.25	%			0.24	%			0.18	%
Loans, including acquired loans			5.49	%			5.75	%			6.27	%			6.03	%			6.11	%
Total interest earning assets			4.74	%			4.86	%			5.20	%			4.82	%			4.68	%
LIABILITIES
Interest bearing liabilities
Interest bearing transaction and
savings accounts			0.23	%			0.24	%			0.24	%			0.24	%			0.21	%
Time deposits			0.50	%			0.55	%			0.55	%			0.56	%			0.56	%
Total interest bearing deposits			0.31	%			0.33	%			0.33	%			0.33	%			0.32	%
Federal funds purchased and securities
sold under agreement to repurchase			0.23	%			0.22	%			0.20	%			0.20	%			0.21	%
Other borrowings			2.47	%			2.57	%			3.63	%			2.58	%			2.32	%
Subordinated debentures			3.63	%			3.09	%			3.19	%			3.56	%			2.66	%
Total interest bearing liabilities			0.42	%			0.43	%			0.48	%			0.44	%			0.42	%
NET INTEREST MARGIN/SPREAD
Net interest spread			4.32	%			4.43	%			4.72	%			4.38	%			4.26	%
Net interest margin - quarter-to-date			4.41	%			4.53	%			4.82	%			4.47	%			4.34	%
Net interest margin - year-to-date			4.41	%			4.55	%			4.58	%			4.42	%			4.34	%

 

Page 9

 

 

Simmons First National Corporation																		SFNC
Consolidated - Selected Financial Data
For the Quarters Ended		Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
(Unaudited)		2016				2015				2015				2015				2015
($ in thousands, except share data)
QUARTER-TO-DATE
Financial Highlights - Core (non-GAAP)
Core earnings (excludes nonrecurring items) (1)		$	23,185			$	25,913			$	25,565			$	22,444			$	15,700
Diluted core earnings per share (1)			0.76				0.86				0.85				0.75				0.70
Core net interest margin (FTE) (2)			3.92	%			3.87	%			3.93	%			3.87	%			3.55	%
Core efficiency ratio (1)			58.73	%			59.26	%			57.40	%			58.36	%			62.13	%
Core return on average assets (1)			1.24	%			1.36	%			1.33	%			1.17	%			1.10	%
Core return on average common equity (1)			8.75	%			9.96	%			10.01	%			8.67	%			9.47	%
Core return on tangible common equity (1)			14.13	%			15.89	%			15.99	%			13.80	%			14.16	%
Financial Highlights - GAAP
Net Income		$	23,481			$	23,782			$	21,598			$	20,018			$	8,709
Diluted earnings per share			0.77				0.78				0.72				0.67				0.39
Return on average assets			1.26	%			1.25	%			1.13	%			1.04	%			0.61	%
Return on average common equity			8.87	%			9.15	%			8.46	%			7.73	%			5.25	%
Return on tangible common equity			14.30	%			14.62	%			13.58	%			12.36	%			8.07	%
Net interest margin (FTE)			4.41	%			4.53	%			4.82	%			4.47	%			4.34	%
FTE adjustment			2,084				2,185				2,172				2,303				1,857
Amortization of intangibles			1,455				1,337				1,265				1,388				899
Amortization of intangibles, net of taxes			884				813				769				844				546
Average earning assets			6,597,389				6,652,486				6,660,434				6,774,693				5,121,838
Average interest bearing liabilities			5,145,845				5,118,526				5,367,852				5,467,587				4,096,745
Average diluted shares outstanding			30,481,604				30,301,190				30,046,062				29,987,471				22,350,272
Cash dividends declared per common share			0.24				0.23				0.23				0.23				0.23
YEAR-TO-DATE
Financial Highlights - Core (non-GAAP)
Core earnings (excludes nonrecurring items) (1)		$	23,185			$	89,622			$	63,709			$	38,144			$	15,700
Diluted core earnings per share (1)			0.76				3.18				2.32				1.46				0.70
Core net interest margin (FTE) (2)			3.92	%			3.82	%			3.82	%			3.74	%			3.55	%
Core efficiency ratio (1)			58.73	%			59.01	%			58.91	%			59.94	%			62.13	%
Core return on average assets (1)			1.24	%			1.25	%			1.21	%			1.14	%			1.10	%
Core return on average common equity (1)			8.75	%			9.55	%			9.39	%			8.99	%			9.47	%
Core return on tangible common equity (1)			14.13	%			15.05	%			14.73	%			13.96	%			14.16	%
Financial Highlights - GAAP
Net Income		$	23,481			$	74,107			$	50,325			$	28,727			$	8,709
Diluted earnings per share			0.77				2.63				1.83				1.10				0.39
Return on average assets			1.26	%			1.03	%			0.96	%			0.86	%			0.61	%
Return on average common equity			8.87	%			7.90	%			7.41	%			6.77	%			5.25	%
Return on tangible common equity			14.30	%			12.53	%			11.73	%			10.63	%			8.07	%
Net interest margin (FTE)			4.41	%			4.55	%			4.58	%			4.42	%			4.34	%
FTE adjustment			2,084				8,517				6,332				4,160				1,857
Amortization of intangibles			1,455				4,889				3,552				2,287				899
Amortization of intangibles, net of taxes			884				2,972				2,159				1,390				546
Average earning assets			6,597,389				6,305,966				6,170,521				5,948,265				5,121,838
Average interest bearing liabilities			5,145,845				5,000,858				4,977,397				4,782,167				4,096,745
Average diluted shares outstanding			30,481,604				28,209,661				27,497,813				26,203,942				22,350,272
Cash dividends declared per common share			0.24				0.92				0.69				0.46				0.23
END OF PERIOD
Book value per share		$	35.35			$	34.55			$	33.89			$	33.26			$	32.93
Tangible book value per share			22.84				21.97				21.89				21.19				20.79
Shares outstanding			30,324,499				30,278,432				29,939,698				29,894,903				29,850,034
Full-time equivalent employees			1,931				1,946				1,967				2,043				2,076
Total number of ATM's			185				182				183				186				179
Total number of financial centers			149				149				149				152				164

 

(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 10

 

 

Simmons First National Corporation																		SFNC
Consolidated - Reconciliation of Core Earnings (non-GAAP)
For the Quarters Ended		Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
(Unaudited)		2016				2015				2015				2015				2015
($ in thousands, except per share data)
QUARTER-TO-DATE
Net Income		$	23,481			$	23,782			$	21,598			$	20,018			$	8,709
Nonrecurring items
Accelerated vesting on retirement agreements			-				2,209				-				-				-
Gain on sale of banking operations			-				-				(2,110	)			-				-
Gain from early retirement of trust preferred securities			(594	)			-				-				-				-
Loss on FDIC loss-share termination			-				-				7,476				-				-
Merger-related costs			93				1,237				857				1,247				10,419
Branch right-sizing			14				60				304				2,745				35
Tax effect (1)			191				(1,375	)			(2,560	)			(1,566	)			(3,463	)
Net nonrecurring items			(296	)			2,131				3,967				2,426				6,991
Core earnings (non-GAAP)		$	23,185			$	25,913			$	25,565			$	22,444			$	15,700
Diluted earnings per share		$	0.77			$	0.78			$	0.72			$	0.67			$	0.39
Nonrecurring items
Accelerated vesting on retirement agreements			-				0.08				-				-				-
Gain on sale of banking operations			-				-				(0.07	)			-				-
Gain from early retirement of trust preferred securities			(0.02	)			-				-				-				-
Loss on FDIC loss-share termination			-				-				0.25				-				-
Merger-related costs			-				0.05				0.03				0.04				0.47
Branch right-sizing			-				-				0.01				0.09				-
Tax effect (1)			0.01				(0.05	)			(0.09	)			(0.05	)			(0.16	)
Net nonrecurring items			(0.01	)			0.08				0.13				0.08				0.31
Core earnings (non-GAAP)		$	0.76			$	0.86			$	0.85			$	0.75			$	0.70
YEAR-TO-DATE
Net Income		$	23,481			$	74,107			$	50,325			$	28,727			$	8,709
Nonrecurring items
Accelerated vesting on retirement agreements			-				2,209				-				-				-
Gain on sale of banking operations			-				(2,110	)			(2,110	)			-				-
Gain from early retirement of trust preferred securities			(594	)			-				-				-				-
Loss on FDIC loss-share termination			-				7,476				7,476				-				-
Merger-related costs			93				13,760				12,523				11,666				10,419
Branch right-sizing			14				3,144				3,084				2,780				35
Tax effect (1)			191				(8,964	)			(7,589	)			(5,029	)			(3,463	)
Net nonrecurring items			(296	)			15,515				13,384				9,417				6,991
Core earnings (non-GAAP)		$	23,185			$	89,622			$	63,709			$	38,144			$	15,700
Diluted earnings per share		$	0.77			$	2.63			$	1.83			$	1.10			$	0.39
Nonrecurring items
Accelerated vesting on retirement agreements			-				0.08				-				-				-
Gain on sale of banking operations			-				(0.07	)			(0.07	)			-				-
Gain from early retirement of trust preferred securities			(0.02	)			-				-				-				-
Loss on FDIC loss-share termination			-				0.27				0.27				-				-
Merger-related costs			-				0.49				0.46				0.45				0.47
Branch right-sizing			-				0.11				0.11				0.11				-
Tax effect (1)			0.01				(0.33	)			(0.28	)			(0.20	)			(0.16	)
Net nonrecurring items			(0.01	)			0.55				0.49				0.36				0.31
Core earnings (non-GAAP)		$	0.76			$	3.18			$	2.32			$	1.46			$	0.70

 

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

 

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