EXHIBIT 99.1

 

 

 

 

For Immediate Release:

July 20, 2016

 

 

Simmons Reports Second Quarter Net Income of $22.9 Million, or $0.75 per share

 

Pine Bluff, AR – Simmons First National Corporation (NASDAQ-GS: SFNC) today announced net income available to common shareholders of $22.9 million for the second quarter of 2016, an increase of $2.9 million, or 14.4 percent, compared with the same quarter last year. Diluted earnings per share were $0.75, an increase of $0.08, or 11.9 percent.

 

Included in second quarter 2016 results were $2.2 million of after-tax expenses related to noncore items. Excluding the impact of these items, core earnings were $25.1 million for the second quarter of 2016, an increase of $2.6 million, or 11.8 percent, compared with the same quarter last year. Diluted core earnings per share were $0.82, an increase of $0.07, or 9.3 percent.

 

Year-to-date net income was $46.4 million, an increase of $17.7 million, or 61.5 percent, compared with the same period of 2015. Year-to-date diluted earnings per share was $1.52, an increase of $0.42, or 38.2 percent. Year-to-date core earnings were $48.3 million, or $1.59 diluted core earnings per share.

 

“We are pleased with the results from the second quarter as we continue to absorb the acquisitions from the previous two years. Competitive pressures and artificially low interest rates continue to put pressure on our net interest income but we have done a good job of diversifying our revenue through other lines of business such as our trust operations, mortgage lending, credit card services, and other wealth management offerings. We will continue to focus on improving our efficiency throughout the remainder of the year,” said George A. Makris, Jr., chairman and CEO. “We also look forward to the completion of the merger with Citizens Bank in Athens, Tenn. later this year and the opportunity to welcome them to the Simmons family.”

 

Loans

 

Total loans, including those acquired, were $5.0 billion at June 30, 2016, an increase of $201 million, or 4.2 percent, compared with the same period in 2015. Legacy loans (all loans excluding acquired loans) grew $1.1 billion, or 42.7 percent. On a linked quarter basis, total loan growth was $83.8 million.

 

Deposits

 

At June 30, 2016, total deposits were $6.0 billion, a decrease of $142 million, or 2.3 percent, compared with the same period in 2015. Total non-time deposits were $4.8 billion, an increase of $100 million, or 2.1percent, and comprised 80% of total deposits.

 

Net Interest Income

 

The company’s net interest income for the second quarter of 2016 was $66.6 million, a decrease of $6.6 million, or 9.0 percent, from the same period of 2015. This decrease was primarily driven by a $5.4 million decline in yield accretion on acquired loans. Included in interest income was the yield accretion recognized on acquired loans of $4.7 million and $10.1 million for the second quarter of 2016 and 2015, respectively. Net interest margin was 4.17 percent for the quarter ended June 30, 2016, a 30 basis-point decline from the same quarter of 2015. The company’s core net interest margin, excluding the accretion, was 3.88 percent for the second quarter of 2016, a 1 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 second quarter was $36.9 million, an increase of $11.9 million compared with the second quarter of 2015. The increase in non-interest income was primarily due to gains recorded on the sale of securities that totaled $3.4 million as part of the bond portfolio rebalancing strategy.

 

The elimination of indemnification asset amortization due to the company’s 2015 termination of loss-sharing agreements with the FDIC resulted in a decrease of $3.1 million in losses on FDIC-covered assets in the second quarter compared with the same period in 2015. The remaining increase in non-interest income was due to additional mortgage lending, trust income and investment banking revenue.

 

Non-Interest Expense

 

Non-interest expense for the second quarter of 2016 was $64.1 million, a decrease of $667,000 compared with the second quarter of 2015. Included in the quarter were $372,000 of merger-related expenses and $3.2 million of branch right-sizing expenses related to the closure of ten underperforming branches during the second quarter of 2016.

 

Salaries and benefits decreased by $2.0 million to $33.1 million in the current quarter of 2016, compared with $35.1 million in the same quarter of 2015. This decrease of 5.7% is a result of the company’s ongoing efficiency initiatives around expense control. This decrease was partially offset by an increase of $836,000 in furniture and equipment expense primarily related to maintenance contracts and equipment rent.

 

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 June 30, 2016, the allowance for loan losses for legacy loans was $33.5 million. The company's allowance for loan losses on legacy loans at June 30, 2016 was 0.90 percent of total loans and 77 percent of non-performing loans. In the legacy portfolio, non-performing loans as a percent of total loans were 1.17 percent.

 

The allowance for loan losses for acquired loans was $1.0 million and the acquired loan discount credit mark was $38.3 million. The allowances for loan losses and credit marks provide a total of $72.8 million of coverage, which equates to a total coverage ratio of 1.4 percent of gross loans. The ratio of credit mark and related allowance to acquired loans was 3.0 percent.

 

The 2016 year-to-date net charge-off ratio, excluding credit cards, was 24 basis points, and the year-to-date credit card charge-off ratio was 1.25 percent.

 

Capital

 

At June 30, 2016, common stockholders' equity was $1.1 billion, book value per share was $35.86 and tangible book value per share was $23.43. The company's ratio of stockholders' equity to total assets was 14.48 percent and its ratio of tangible common equity to tangible assets was 10.0 percent.

 

Simmons First National Corporation

 

Simmons First National Corporation is a financial holding company headquartered in Pine Bluff, Arkansas, with total assets of $7.5 billion. The company conducts financial operations in Arkansas, Kansas, Missouri and Tennessee. The company’s wholly owned subsidiary, Simmons Bank, offers comprehensive financial solutions delivered with client-centric approach. 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 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 42603491. 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. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

 

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. Any forward-looking statement speaks only as of the date of this news release, and we undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after 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		Jun 30				Mar 31				Dec 31				Sep 30				Jun 30
(Unaudited)		2016				2016				2015				2015				2015
($ in thousands)
ASSETS
Cash and non-interest bearing balances due from banks		$	96,037			$	118,468			$	97,656			$	106,678			$	69,770
Interest bearing balances due from banks			151,570				100,593				154,606				284,645				173,130
Federal funds sold			3,000				4,000				-				9,675				49,570
Cash and cash equivalents			250,607				223,061				252,262				400,998				292,470
Interest bearing balances due from banks - time			9,781				11,188				14,107				16,504				24,189
Investment securities - held-to-maturity			632,154				674,502				705,373				776,294				861,596
Investment securities - available-for-sale			821,372				857,673				821,407				703,347				747,701
Mortgage loans held for sale			30,529				24,563				30,265				15,556				48,094
Assets held in trading accounts			7,321				7,074				4,422				6,292				6,481
Loans:
Legacy loans			3,725,422				3,472,691				3,246,454				2,839,278				2,611,229
Allowance for loan losses			(33,523	)			(32,681	)			(31,351	)			(30,380	)			(30,567	)
Loans acquired, not covered by FDIC loss share
(net of discount and allowance)			1,288,435				1,457,370				1,672,901				2,013,816				2,108,306
Loans acquired, covered by FDIC loss share
(net of discount and allowance)			-				-				-				-				93,121
Net loans			4,980,334				4,897,380				4,888,004				4,822,714				4,782,089
FDIC indemnification asset			-				-				-				-				13,020
Premises and equipment			183,362				192,327				193,618				190,182				191,335
Premises held for sale			6,167				2,364				923				923				6,587
Foreclosed assets not covered by FDIC loss share			30,529				41,126				44,820				48,073				42,666
Foreclosed assets covered by FDIC loss share			-				-				-				-				12,833
Interest receivable			24,150				23,545				25,793				26,873				24,129
Bank owned life insurance			130,943				130,092				131,536				118,922				118,073
Goodwill			327,686				327,686				327,686				314,344				314,344
Other intangible assets			50,329				51,783				53,237				44,904				46,605
Other assets			48,955				72,589				66,205				73,768				82,146
Total assets		$	7,534,219			$	7,536,953			$	7,559,658			$	7,559,694			$	7,614,358
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts		$	1,283,426			$	1,274,816			$	1,280,234			$	1,212,724			$	1,141,285
Interest bearing transaction accounts and savings deposits			3,538,808				3,524,808				3,485,845				3,521,840				3,581,049
Time deposits less than $100,000			643,081				674,915				694,262				673,651				719,606
Time deposits greater than $100,000			562,888				605,236				625,755				681,585				728,082
Total deposits			6,028,203				6,079,775				6,086,096				6,089,800				6,170,022
Federal funds purchased and securities sold
under agreements to repurchase			103,038				97,429				99,398				110,437				111,792
Other borrowings			191,827				176,829				162,289				173,426				171,321
Subordinated debentures			60,184				60,077				60,570				61,906				61,794
Accrued interest and other liabilities			60,256				50,859				74,450				78,684				74,324
Total liabilities			6,443,508				6,464,969				6,482,803				6,514,253				6,589,253
Stockholders' equity:
Preferred stock			-				-				30,852				30,852				30,852
Common stock			304				303				303				299				299
Surplus			668,306				665,850				662,378				642,400				640,895
Undivided profits			417,863				402,265				385,987				369,172				354,459
Accumulated other comprehensive income (loss):
Unrealized appreciation (depreciation) on AFS securities			4,238				3,566				(2,665	)			2,718				(1,400	)
Total stockholders' equity			1,090,711				1,071,984				1,076,855				1,045,441				1,025,105
Total liabilities and stockholders' equity		$	7,534,219			$	7,536,953			$	7,559,658			$	7,559,694			$	7,614,358

 

 

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)		2016				2016				2015				2015				2015
($ in thousands, except per share data)
INTEREST INCOME
Loans		$	63,009			$	66,678			$	70,511			$	76,432			$	70,438
Federal funds sold			17				10				10				15				73
Investment securities			8,499				8,506				8,350				8,335				8,050
Mortgage loans held for sale			295				278				237				291				375
Assets held in trading accounts			3				6				6				4				4
Interest bearing balances due from banks			77				144				225				122				229
TOTAL INTEREST INCOME			71,900				75,622				79,339				85,199				79,169
INTEREST EXPENSE
Time deposits			1,741				1,636				1,858				1,936				2,064
Other deposits			2,035				2,018				2,105				2,222				2,131
Federal funds purchased and securities
sold under agreements to repurchase			59				65				60				55				57
Other borrowings			938				1,128				1,084				1,812				1,151
Subordinated debentures			544				543				481				498				559
TOTAL INTEREST EXPENSE			5,317				5,390				5,588				6,523				5,962
NET INTEREST INCOME			66,583				70,232				73,751				78,676				73,207
Provision for loan losses			4,616				2,823				3,230				1,615				3,006
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES			61,967				67,409				70,521				77,061				70,201
NON-INTEREST INCOME
Trust income			3,656				3,631				2,725				2,215				2,070
Service charges on deposit accounts			7,661				7,316				8,104				8,488				8,031
Other service charges and fees			1,571				1,909				1,654				2,672				2,766
Mortgage lending income			5,877				3,792				2,298				3,446				3,449
Investment banking income			1,181				687				784				663				593
Debit and credit card fees			7,688				7,200				7,647				6,879				6,486
Bank owned life insurance income			826				997				614				748				746
Gain on sale of securities, net			3,759				329				305				40				-
Net (loss) gain on assets covered by FDIC loss-share agreements			-				-				-				(9,085	)			(3,056	)
Other income			4,669				3,642				4,518				7,006				3,863
TOTAL NON-INTEREST INCOME			36,888				29,503				28,649				23,072				24,948
NON-INTEREST EXPENSE
Salaries and employee benefits			33,103				34,773				39,523				37,000				35,111
Occupancy expense, net			4,990				4,471				3,418				4,812				5,051
Furniture and equipment expense			4,077				3,947				3,731				4,202				3,241
Other real estate and foreclosure expense			967				966				1,167				2,297				1,017
Deposit insurance			1,096				1,148				1,222				1,013				1,096
Merger-related costs			372				93				1,237				857				1,247
Other operating expenses			19,532				16,391				17,508				17,314				18,041
TOTAL NON-INTEREST EXPENSE			64,137				61,789				67,806				67,495				64,804
NET INCOME BEFORE INCOME TAXES			34,718				35,123				31,364				32,638				30,345
Provision for income taxes			11,809				11,618				7,505				10,963				10,250
NET INCOME			22,909				23,505				23,859				21,675				20,095
Preferred stock dividends			-				24				77				77				77
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS		$	22,909			$	23,481			$	23,782			$	21,598			$	20,018
BASIC EARNINGS PER SHARE		$	0.75			$	0.77			$	0.79			$	0.72			$	0.67
DILUTED EARNINGS PER SHARE		$	0.75			$	0.77			$	0.78			$	0.72			$	0.67

 

 

 

Simmons First National Corporation																		SFNC
Consolidated Core Earnings - Quarter-to-Date (non-GAAP) (1)
For the Quarters Ended		Jun 30				Mar 31				Dec 31				Sep 30				Jun 30
(Unaudited)		2016				2016				2015				2015				2015
($ in thousands, except per share data)
INTEREST INCOME
Loans		$	63,009			$	66,678			$	70,511			$	76,432			$	70,438
Federal funds sold			17				10				10				15				73
Investment securities			8,499				8,506				8,350				8,335				8,050
Mortgage loans held for sale			295				278				237				291				375
Assets held in trading accounts			3				6				6				4				4
Interest bearing balances due from banks			77				144				225				122				229
TOTAL INTEREST INCOME			71,900				75,622				79,339				85,199				79,169
INTEREST EXPENSE
Time deposits			1,741				1,636				1,858				1,936				2,064
Other deposits			2,035				2,018				2,105				2,222				2,131
Federal funds purchased and securities
sold under agreements to repurchase			59				65				60				55				57
Other borrowings			938				1,128				1,084				1,812				1,151
Subordinated debentures			544				543				481				498				559
TOTAL INTEREST EXPENSE			5,317				5,390				5,588				6,523				5,962
NET INTEREST INCOME			66,583				70,232				73,751				78,676				73,207
Provision for loan losses			4,616				2,823				3,230				1,615				3,006
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES			61,967				67,409				70,521				77,061				70,201
NON-INTEREST INCOME
Trust income			3,656				3,631				2,725				2,215				2,070
Service charges on deposit accounts			7,661				7,316				8,104				8,488				8,031
Other service charges and fees			1,571				1,909				1,654				2,672				2,766
Mortgage lending income			5,877				3,792				2,298				3,446				3,449
Investment banking income			1,181				687				784				663				593
Debit and credit card fees			7,688				7,200				7,647				6,879				6,486
Bank owned life insurance income			826				997				614				748				746
Gain on sale of securities, net			3,759				329				305				40				-
Net (loss) gain on assets covered by FDIC loss-share agreements			-				-				-				(1,609	)			(3,056	)
Other income			4,669				3,048				4,518				4,737				4,396
TOTAL NON-INTEREST INCOME			36,888				28,909				28,649				28,279				25,481
NON-INTEREST EXPENSE
Salaries and employee benefits			33,103				34,773				37,314				36,919				34,960
Occupancy expense, net			4,945				4,461				3,358				4,680				5,013
Furniture and equipment expense			4,077				3,947				3,731				4,172				3,209
Other real estate and foreclosure expense			967				966				1,167				2,297				1,017
Deposit insurance			1,096				1,148				1,222				1,013				1,096
Other operating expenses			16,358				16,387				17,508				17,094				16,050
TOTAL NON-INTEREST EXPENSE			60,546				61,682				64,300				66,175				61,345
CORE EARNINGS BEFORE INCOME TAXES (non-GAAP) (1)			38,309				34,636				34,870				39,165				34,337
Provision for income taxes			13,218				11,427				8,880				13,523				11,816
CORE EARNINGS (non-GAAP) (1)			25,091				23,209				25,990				25,642				22,521
Preferred stock dividends			-				24				77				77				77
CORE EARNINGS AVAILABLE TO COMMON S/H (non-GAAP) (1)		$	25,091			$	23,185			$	25,913			$	25,565			$	22,444
BASIC CORE EARNINGS PER SHARE (non-GAAP) (1)		$	0.83			$	0.76			$	0.86			$	0.85			$	0.75
DILUTED CORE EARNINGS PER SHARE (non-GAAP) (1)		$	0.82			$	0.76			$	0.86			$	0.85			$	0.75

 

(1) Calculations of core earnings and core earnings per share and the reconciliations to GAAP are included in the schedules accompanying this release.

 

 

Simmons First National Corporation																		SFNC
Consolidated Risk-Based Capital
For the Quarters Ended		Jun 30				Mar 31				Dec 31				Sep 30				Jun 30
(Unaudited)		2016				2016				2015				2015				2015
($ in thousands)
Tier 1 capital
Stockholders' equity		$	1,090,711			$	1,071,984			$	1,076,855			$	1,045,441			$	1,025,105
Trust preferred securities, net allowable			60,184				60,077				60,570				61,906				61,794
Disallowed intangible assets, net of deferred tax			(334,395	)			(335,166	)			(331,931	)			(314,735	)			(342,590	)
Unrealized loss (gain) on AFS securities			(4,238	)			(3,566	)			2,665				(2,718	)			1,400
Other			-				-				-				-				(10,297	)
Total Tier 1 capital			812,262				793,329				808,159				789,894				735,412
Tier 2 capital
Qualifying unrealized gain on AFS equity securities			-				-				-				-				-
Qualifying allowance for loan losses and
reserve for unfunded commitments			37,240				36,398				35,068				34,097				34,284
Total Tier 2 capital			37,240				36,398				35,068				34,097				34,284
Total risk-based capital		$	849,502			$	829,727			$	843,227			$	823,991			$	769,696
Common equity
Tier 1 capital		$	812,262			$	793,329			$	808,159			$	789,894			$	735,412
Less: Non-cumulative preferred stock			-				-				(30,852	)			(30,852	)			(30,852	)
Less: Trust preferred securities			(60,184	)			(60,077	)			(60,570	)			(61,906	)			(61,794	)
Total common equity		$	752,078			$	733,252			$	716,737			$	697,136			$	642,766
Risk weighted assets		$	5,343,355			$	5,293,395			$	5,044,453			$	4,986,641			$	4,714,852
Adjusted average assets for leverage ratio		$	7,185,633			$	7,167,839			$	7,218,559			$	7,293,113			$	7,350,900
Ratios at end of quarter
Equity to assets			14.48	%			14.22	%			14.24	%			13.83	%			13.46	%
Tangible common equity to tangible assets (1)			9.96	%			9.68	%			9.26	%			9.10	%			8.73	%
Common equity Tier 1 ratio (CET1)			14.08	%			13.85	%			14.21	%			13.98	%			13.63	%
Tier 1 leverage ratio			11.30	%			11.07	%			11.20	%			10.83	%			10.00	%
Tier 1 risk-based capital ratio			15.20	%			14.99	%			16.02	%			15.84	%			15.60	%
Total risk-based capital ratio			15.90	%			15.67	%			16.72	%			16.52	%			16.32	%

 

(1) Calculations of tangible common equity to tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release.

 

 

Simmons First National Corporation																		SFNC
Consolidated Loans and Investments
For the Quarters Ended		Jun 30				Mar 31				Dec 31				Sep 30				Jun 30
(Unaudited)		2016				2016				2015				2015				2015
($ in thousands)
Legacy Loan Portfolio - End of Period (1)
Consumer
Credit cards		$	171,468			$	167,803			$	177,288			$	171,701			$	174,074
Other consumer			248,018				227,480				208,380				182,472				160,828
Total consumer			419,486				395,283				385,668				354,173				334,902
Real Estate
Construction			330,666				300,042				279,740				253,761				199,707
Single-family residential			785,289				746,754				696,180				623,089				662,954
Other commercial			1,414,663				1,327,372				1,229,072				1,037,559				878,109
Total real estate			2,530,618				2,374,168				2,204,992				1,914,409				1,740,770
Commercial
Commercial			577,771				551,695				500,116				394,422				388,869
Agricultural			187,047				143,033				148,563				170,257				141,502
Total commercial			764,818				694,728				648,679				564,679				530,371
Other			10,500				8,512				7,115				6,017				5,186
Total Loans		$	3,725,422			$	3,472,691			$	3,246,454			$	2,839,278			$	2,611,229
(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		$	199,505			$	223,484			$	237,139			$	285,071			$	361,744
Mortgage-backed securities			22,612				23,734				24,774				25,913				27,146
State and political subdivisions			407,273				424,586				440,676				464,245				471,631
Other securities			2,764				2,698				2,784				1,065				1,075
Total held-to-maturity			632,154				674,502				705,373				776,294				861,596
Available-for-Sale
U.S. Treasury		$	4,305			$	4,302			$	3,994			$	4,008			$	4,005
U.S. Government agencies			58,113				78,308				120,237				153,576				236,003
Mortgage-backed securities			652,425				722,982				647,425				502,344				464,857
State and political subdivisions			64,836				11,260				9,874				10,976				10,971
FHLB stock			8,781				7,838				7,823				14,275				13,619
Other securities			32,912				32,983				32,054				18,168				18,246
Total available-for-sale			821,372				857,673				821,407				703,347				747,701
Total investment securities		$	1,453,526			$	1,532,175			$	1,526,780			$	1,479,641			$	1,609,297
Fair value - HTM investment securities		$	647,293			$	686,835			$	713,371			$	785,030			$	863,349
Investment Securities - QTD Average
Taxable securities		$	1,059,802			$	1,067,302			$	1,043,268			$	1,088,597			$	1,163,708
Tax exempt securities			443,492				439,370				463,631				478,436				492,118
Total investment securities - QTD average		$	1,503,294			$	1,506,672			$	1,506,899			$	1,567,033			$	1,655,826

 

 

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)		2016				2016				2015				2015				2015
($ in thousands)
LOANS
Legacy loans		$	3,725,422			$	3,472,691			$	3,246,454			$	2,839,278			$	2,611,229
Allowance for loan losses (legacy loans)			(33,523	)			(32,681	)			(31,351	)			(30,380	)			(30,567	)
Legacy loans (net of allowance)			3,691,899				3,440,010				3,215,103				2,808,898				2,580,662
Loans acquired, not covered by FDIC loss share			1,327,683				1,503,482				1,729,557				2,085,211				2,171,388
Credit discount			(38,294	)			(45,158	)			(55,702	)			(70,441	)			(63,082	)
Allowance for loan losses (loans acquired, not covered)			(954	)			(954	)			(954	)			(954	)			-
Loans acquired, not covered (net of discount and allowance)			1,288,435				1,457,370				1,672,901				2,013,816				2,108,306
Loans acquired, covered by FDIC loss share			-				-				-				-				114,296
Credit discount			-				-				-				-				(20,221	)
Allowance for loan losses (acquired covered loans)			-				-				-				-				(954	)
Loans acquired, covered (net of discount and allowance)			-				-				-				-				93,121
Net loans		$	4,980,334			$	4,897,380			$	4,888,004			$	4,822,714			$	4,782,089
Loan Coverage Ratios
Allowance for loan losses to legacy loans			0.90	%			0.94	%			0.97	%			1.07	%			1.17	%
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) (1)			2.96	%			3.07	%			3.28	%			3.42	%			3.69	%
Total allowance and credit coverage (non-GAAP) (1)			1.44	%			1.58	%			1.77	%			2.07	%			2.34	%

 

(1) Calculations of the non-GAAP loan coverage ratios and the reconciliations to GAAP are included in the schedules accompanying this release.

 

 

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)		2016				2016				2015				2015				2015
($ in thousands)
Allowance for Loan Losses (Legacy Loans)
Balance, beginning of quarter		$	32,681			$	31,351			$	30,380			$	30,567			$	29,183
Loans charged off
Credit cards			702				859				757				763				802
Other consumer			489				393				489				597				366
Real estate			824				229				845				109				333
Commercial			2,283				476				654				516				-
Total loans charged off			4,298				1,957				2,745				1,985				1,501
Recoveries of loans previously charged off
Credit cards			253				242				223				213				241
Other consumer			149				103				140				78				187
Real estate			111				112				120				25				46
Commercial			318				7				3				-				9
Total recoveries			831				464				486				316				483
Net loans charged off			3,467				1,493				2,259				1,669				1,018
Provision for loan losses			4,309				2,823				3,230				1,482				2,402
Balance, end of quarter		$	33,523			$	32,681			$	31,351			$	30,380			$	30,567
Non-performing assets (1) (2)
Non-performing loans
Nonaccrual loans			43,305				34,244				17,714				15,305				15,565
Loans past due 90 days or more			227				881				1,191				1,506				1,375
Total non-performing loans			43,532				35,125				18,905				16,811				16,940
Other non-performing assets
Foreclosed assets held for sale, not covered			30,529				41,126				44,820				48,073				42,666
Other non-performing assets			519				256				211				172				242
Total other non-performing assets			31,048				41,382				45,031				48,245				42,908
Total non-performing assets		$	74,580			$	76,507			$	63,936			$	65,056			$	59,848
Performing TDRs (troubled debt restructurings)		$	10,887			$	10,759			$	3,031			$	1,955			$	1,959
Ratios (1) (2)
Allowance for loan losses to total loans			0.90	%			0.94	%			0.97	%			1.07	%			1.17	%
Allowance for loan losses to non-performing loans			77	%			93	%			166	%			181	%			180	%
Non-performing loans to total loans			1.17	%			1.01	%			0.58	%			0.59	%			0.65	%
Non-performing assets (including performing TDRs)
to total assets			1.13	%			1.16	%			0.89	%			0.89	%			0.81	%
Non-performing assets to total assets			0.99	%			1.02	%			0.85	%			0.86	%			0.79	%
Annualized net charge offs to total loans			0.39	%			0.18	%			0.31	%			0.24	%			0.17	%
Annualized net credit card charge offs to
total credit card loans			1.07	%			1.46	%			1.22	%			1.26	%			1.31	%
Annualized net charge offs to total loans
(excluding credit cards)			0.36	%			0.11	%			0.25	%			0.17	%			0.08	%

 

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

(2) Excludes acquired foreclosed assets covered by FDIC loss-share agreements, except for their inclusion in total assets.

 

 

Simmons First National Corporation																																		SFNC
Consolidated - Average Balance Sheet and Net Interest Income Analysis
For the Quarters Ended
(Unaudited)
		Three Months Ended Jun 2016												Three Months Ended Mar 2016												Three Months Ended Jun 2015
($ in thousands)		Average Balance				Income/ Expense				Yield/ Rate				Average Balance				Income/ Expense				Yield/ Rate				Average Balance				Income/ Expense				Yield/ Rate
ASSETS
Earning assets:
Interest bearing balances due from banks		$	126,114			$	77				0.25	%		$	167,381			$	144				0.35	%		$	308,756			$	229				0.30	%
Federal funds sold			2,570				17				2.66	%			1,839				10				2.19	%			75,922				73				0.39	%
Investment securities - taxable			1,087,179				5,273				1.95	%			1,076,855				5,311				1.98	%			1,295,466				4,479				1.39	%
Investment securities - non-taxable (FTE)			416,115				5,300				5.12	%			429,817				5,249				4.91	%			360,360				5,849				6.51	%
Mortgage loans held for sale			28,844				295				4.11	%			26,616				278				4.20	%			37,656				375				3.99	%
Assets held in trading accounts			6,932				3				0.17	%			5,196				6				0.46	%			6,592				4				0.24	%
Loans, including acquired loans			4,957,888				63,041				5.11	%			4,889,685				66,708				5.49	%			4,689,941				70,463				6.03	%
Total interest earning assets (FTE)			6,625,642				74,006				4.49	%			6,597,389				77,706				4.74	%			6,774,693				81,472				4.82	%
Non-earning assets			896,491												901,796												920,999
Total assets		$	7,522,133											$	7,499,185											$	7,695,692
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Interest bearing transaction and
savings accounts		$	3,526,278			$	2,035				0.23	%		$	3,484,571			$	2,018				0.23	%		$	3,621,060			$	2,131				0.24	%
Time deposits			1,242,805				1,741				0.56	%			1,303,614				1,636				0.50	%			1,488,208				2,064				0.56	%
Total interest bearing deposits			4,769,083				3,776				0.32	%			4,788,185				3,654				0.31	%			5,109,268				4,195				0.33	%
Federal funds purchased and securities
sold under agreement to repurchase			104,668				59				0.23	%			113,551				65				0.23	%			116,258				57				0.20	%
Other borrowings			172,268				938				2.19	%			184,000				1,128				2.47	%			179,080				1,151				2.58	%
Subordinated debentures			60,132				544				3.64	%			60,109				543				3.63	%			62,981				559				3.56	%
Total interest bearing liabilities			5,106,151				5,317				0.42	%			5,145,845				5,390				0.42	%			5,467,587				5,962				0.44	%
Non-interest bearing liabilities:
Non-interest bearing deposits			1,271,878												1,225,311												1,088,474
Other liabilities			57,486												53,240												70,312
Total liabilities			6,435,515												6,424,396												6,626,373
Stockholders' equity			1,086,618												1,074,789												1,069,319
Total liabilities and stockholders' equity		$	7,522,133											$	7,499,185											$	7,695,692
Net interest income (FTE)						$	68,689											$	72,316											$	75,510
Net interest spread (FTE)											4.07	%											4.32	%											4.38	%
Net interest margin (FTE) - quarter-to-date											4.17	%											4.41	%											4.47	%
Net interest margin (FTE) - year-to-date											4.29	%											4.41	%											4.42	%
Core net interest margin (FTE) - quarter-to-date (1)											3.88	%											3.92	%											3.87	%
Core loan yield (FTE) - quarter-to-date (1)											4.73	%											4.82	%											5.16	%
Core net interest margin (FTE) - year-to-date (1)											3.90	%											3.92	%											3.74	%
Core loan yield (FTE) - year-to-date (1)											4.77	%											4.82	%											5.06	%

 

(1) Calculations of core net interest margin and core loan yield and the reconciliations to GAAP are included in the schedules accompanying this release.

 

 

Simmons First National Corporation																		SFNC
Consolidated - Selected Financial Data
For the Quarters Ended		Jun 30				Mar 31				Dec 31				Sep 30				Jun 30
(Unaudited)		2016				2016				2015				2015				2015
($ in thousands, except share data)
QUARTER-TO-DATE
Financial Highlights - GAAP
Net Income		$	22,909			$	23,481			$	23,782			$	21,598			$	20,018
Diluted earnings per share			0.75				0.77				0.78				0.72				0.67
Return on average assets			1.22	%			1.26	%			1.25	%			1.13	%			1.04	%
Return on average common equity			8.48	%			8.87	%			9.15	%			8.46	%			7.73	%
Return on tangible common equity			13.52	%			14.30	%			14.62	%			13.58	%			12.36	%
Net interest margin (FTE)			4.17	%			4.41	%			4.53	%			4.82	%			4.47	%
FTE adjustment			2,105				2,084				2,185				2,172				2,303
Amortization of intangibles			1,451				1,455				1,337				1,265				1,388
Amortization of intangibles, net of taxes			882				884				813				769				844
Average diluted shares outstanding			30,452,285				30,481,604				30,301,190				30,046,062				29,987,471
Cash dividends declared per common share			0.24				0.24				0.23				0.23				0.23
Financial Highlights - Core (non-GAAP)
Core earnings (excludes nonrecurring items) (1)		$	25,091			$	23,185			$	25,913			$	25,565			$	22,444
Diluted core earnings per share (1)			0.82				0.76				0.86				0.85				0.75
Core net interest margin (FTE) (2)			3.88	%			3.92	%			3.87	%			3.93	%			3.87	%
Efficiency ratio (1)			57.09	%			58.73	%			59.26	%			57.40	%			58.36	%
Core return on average assets (1)			1.34	%			1.24	%			1.36	%			1.33	%			1.17	%
Core return on average common equity (1)			9.29	%			8.75	%			9.96	%			10.01	%			8.67	%
Core return on tangible common equity (1)			14.76	%			14.13	%			15.89	%			15.99	%			13.80	%
YEAR-TO-DATE
Financial Highlights - GAAP
Net Income		$	46,390			$	23,481			$	74,107			$	50,325			$	28,727
Diluted earnings per share			1.52				0.77				2.63				1.83				1.10
Return on average assets			1.24	%			1.26	%			1.03	%			0.96	%			0.86	%
Return on average common equity			8.67	%			8.87	%			7.90	%			7.41	%			6.77	%
Return on tangible common equity			13.90	%			14.30	%			12.53	%			11.73	%			10.63	%
Net interest margin (FTE)			4.29	%			4.41	%			4.55	%			4.58	%			4.42	%
FTE adjustment			4,189				2,084				8,517				6,332				4,160
Amortization of intangibles			2,906				1,455				4,889				3,552				2,287
Amortization of intangibles, net of taxes			1,766				884				2,972				2,159				1,390
Average diluted shares outstanding			30,438,939				30,481,604				28,209,661				27,497,813				26,203,942
Cash dividends declared per common share			0.48				0.24				0.92				0.69				0.46
Financial Highlights - Core (non-GAAP)
Core earnings (excludes nonrecurring items) (1)		$	48,276			$	23,185			$	89,622			$	63,709			$	38,144
Diluted core earnings per share (1)			1.59				0.76				3.18				2.32				1.46
Core net interest margin (FTE) (2)			3.90	%			3.92	%			3.82	%			3.82	%			3.74	%
Efficiency ratio (1)			57.91	%			58.73	%			59.01	%			58.91	%			59.94	%
Core return on average assets (1)			1.29	%			1.24	%			1.25	%			1.21	%			1.14	%
Core return on average common equity (1)			9.02	%			8.75	%			9.55	%			9.39	%			8.99	%
Core return on tangible common equity (1)			14.45	%			14.13	%			15.05	%			14.73	%			13.96	%
END OF PERIOD
Book value per share		$	35.86			$	35.35			$	34.55			$	33.89			$	33.26
Tangible book value per share			23.43				22.84				21.97				21.89				21.19
Shares outstanding			30,415,980				30,324,499				30,278,432				29,939,698				29,894,903
Full-time equivalent employees			1,880				1,931				1,946				1,967				2,043
Total number of ATM's			174				185				182				183				186
Total number of financial centers			140				149				149				149				152

 

(1) Core earnings exclude nonrecurring items, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release.

(2) Excludes accretable yield adjustment on loans, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release.

 

 

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)		2016				2016				2015				2015				2015
($ in thousands, except per share data)
QUARTER-TO-DATE
Net Income		$	22,909			$	23,481			$	23,782			$	21,598			$	20,018
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			372				93				1,237				857				1,247
Branch right-sizing			3,219				14				60				304				2,745
Tax effect (1)			(1,409	)			191				(1,375	)			(2,560	)			(1,566	)
Net nonrecurring items			2,182				(296	)			2,131				3,967				2,426
Core earnings (non-GAAP)		$	25,091			$	23,185			$	25,913			$	25,565			$	22,444
Diluted earnings per share		$	0.75			$	0.77			$	0.78			$	0.72			$	0.67
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			0.01				-				0.05				0.03				0.04
Branch right-sizing			0.11				-				-				0.01				0.09
Tax effect (1)			(0.05	)			0.01				(0.05	)			(0.09	)			(0.05	)
Net nonrecurring items			0.07				(0.01	)			0.08				0.13				0.08
Core earnings (non-GAAP)		$	0.82			$	0.76			$	0.86			$	0.85			$	0.75
YEAR-TO-DATE
Net Income		$	46,390			$	23,481			$	74,107			$	50,325			$	28,727
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	)			(594	)			-				-				-
Loss on FDIC loss-share termination			-				-				7,476				7,476				-
Merger-related costs			465				93				13,760				12,523				11,666
Branch right-sizing			3,233				14				3,144				3,084				2,780
Tax effect (1)			(1,218	)			191				(8,964	)			(7,589	)			(5,029	)
Net nonrecurring items			1,886				(296	)			15,515				13,384				9,417
Core earnings (non-GAAP)		$	48,276			$	23,185			$	89,622			$	63,709			$	38,144
Diluted earnings per share		$	1.52			$	0.77			$	2.63			$	1.83			$	1.10
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	)			(0.02	)			-				-				-
Loss on FDIC loss-share termination			-				-				0.27				0.27				-
Merger-related costs			0.02				-				0.49				0.46				0.45
Branch right-sizing			0.11				-				0.11				0.11				0.11
Tax effect (1)			(0.04	)			0.01				(0.33	)			(0.28	)			(0.20	)
Net nonrecurring items			0.07				(0.01	)			0.55				0.49				0.36
Core earnings (non-GAAP)		$	1.59			$	0.76			$	3.18			$	2.32			$	1.46

 

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

 

 

Simmons First National Corporation																		SFNC
Reconciliation Of Non-GAAP Financial Measures - End of Period
For the Quarters Ended
(Unaudited)		Jun 30				Mar 31				Dec 31				Sept 30				Jun 30
		2016				2016				2016				2015				2015
($ in thousands, except per share data)
Calculation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets
Total stockholders' equity		$	1,090,711			$	1,071,984			$	1,076,855			$	1,045,441			$	1,025,105
Less preferred stock			-				-				(30,852	)			(30,852	)			(30,852	)
Total common stockholders' equity			1,090,711				1,071,984				1,046,003				1,014,589				994,253
Less intangible assets:
Goodwill			(327,686	)			(327,686	)			(327,686	)			(314,344	)			(314,344	)
Other intangible assets			(50,329	)			(51,783	)			(53,237	)			(44,904	)			(46,605	)
Total intangibles			(378,015	)			(379,469	)			(380,923	)			(359,248	)			(360,949	)
Tangible common stockholders' equity		$	712,696			$	692,515			$	665,080			$	655,341			$	633,304
Total assets		$	7,534,219			$	7,536,953			$	7,559,658			$	7,559,694			$	7,614,358
Less intangible assets:
Goodwill			(327,686	)			(327,686	)			(327,686	)			(314,344	)			(314,344	)
Other intangible assets			(50,329	)			(51,783	)			(53,237	)			(44,904	)			(46,605	)
Total intangibles			(378,015	)			(379,469	)			(380,923	)			(359,248	)			(360,949	)
Tangible assets		$	7,156,204			$	7,157,484			$	7,178,735			$	7,200,446			$	7,253,409
Ratio of equity to assets			14.48	%			14.22	%			14.24	%			13.83	%			13.46	%
Ratio of tangible common equity to tangible assets			9.96	%			9.68	%			9.26	%			9.10	%			8.73	%
Calculation of Discount for credit losses and allowance on loans acquired to total loans acquired plus
discount for credit losses and allowance on loans acquired
Credit discount on acquired loans		$	38,294			$	45,158			$	55,702			$	70,441			$	83,303
Allowance for loan losses on acquired loans			954				954				954				954				954
Total credit discount and ALLL on acquired loans		$	39,248			$	46,112			$	56,656			$	71,395			$	84,257
Total loans acquired		$	1,327,683			$	1,503,482			$	1,729,557			$	2,085,211			$	2,285,684
Discount and ALLL on acquired loans to acquired loans			2.96	%			3.07	%			3.28	%			3.42	%			3.69	%
Calculation of Total Allowance and Credit Coverage
Allowance for loan losses		$	33,523			$	32,681			$	31,351			$	30,380			$	30,567
Total credit discount and ALLL on acquired loans			39,248				46,112				56,656				71,395				84,257
Total allowance and credit discount		$	72,771			$	78,793			$	88,007			$	101,775			$	114,824
Total loans		$	5,053,105			$	4,976,173			$	4,976,011			$	4,924,489			$	4,896,913
Total allowance and credit coverage			1.44	%			1.58	%			1.77	%			2.07	%			2.34	%
Calculation of Tangible Book Value per Share
Total common stockholders' equity		$	1,090,711			$	1,071,984			$	1,046,003			$	1,014,589			$	994,253
Less intangible assets:
Goodwill			(327,686	)			(327,686	)			(327,686	)			(314,344	)			(314,344	)
Other intangible assets			(50,329	)			(51,783	)			(53,237	)			(44,904	)			(46,605	)
Total intangibles			(378,015	)			(379,469	)			(380,923	)			(359,248	)			(360,949	)
Tangible common stockholders' equity		$	712,696			$	692,515			$	665,080			$	655,341			$	633,304
Shares of common stock outstanding			30,415,980				30,324,499				30,278,432				29,939,698				29,894,903
Book value per common share		$	35.86			$	35.35			$	34.55			$	33.89			$	33.26
Tangible book value per common share		$	23.43			$	22.84			$	21.97			$	21.89			$	21.19

 

 

Simmons First National Corporation																		SFNC
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date
For the Quarters Ended
(Unaudited)		Jun 30				Mar 31				Dec 31				Sept 30				Jun 30
		2016				2016				2016				2015				2015
($ in thousands)
Calculation of Core Return on Average Assets
Net income available to common stockholders		$	22,909			$	23,481			$	23,782			$	21,598			$	20,018
Net nonrecurring items, net of taxes, adjustment			2,182				(296	)			2,131				3,967				2,426
Core earnings		$	25,091			$	23,185			$	25,913			$	25,565			$	22,444
Average total assets		$	7,522,133			$	7,499,185			$	7,550,569			$	7,607,767			$	7,695,692
Return on average assets			1.22	%			1.26	%			1.25	%			1.13	%			1.04	%
Core return on average assets			1.34	%			1.24	%			1.36	%			1.33	%			1.17	%
Calculation of Return on Tangible Common Equity
Net income available to common stockholders		$	22,909			$	23,481			$	23,782			$	21,598			$	20,018
Amortization of intangibles, net of taxes			882				884				813				769				844
Total income available to common stockholders		$	23,791			$	24,365			$	24,595			$	22,367			$	20,862
Net nonrecurring items, net of taxes			2,182				(296	)			2,131				3,967				2,426
Core earnings			25,091				23,185				25,913				25,565				22,444
Amortization of intangibles, net of taxes			882				884				813				769				844
Total core income available to common stockholders		$	25,973			$	24,069			$	26,726			$	26,334			$	23,288
Average common stockholders' equity		$	1,086,618			$	1,065,296			$	1,031,710			$	1,013,289			$	1,038,434
Less average intangible assets:
Goodwill			(327,686	)			(327,686	)			(320,216	)			(314,344	)			(314,344	)
Other intangibles			(51,043	)			(52,498	)			(44,302	)			(45,712	)			(47,302	)
Total average intangibles			(378,729	)			(380,184	)			(364,518	)			(360,056	)			(361,646	)
Average tangible common stockholders' equity		$	707,889			$	685,112			$	667,192			$	653,233			$	676,788
Return on average common equity			8.48	%			8.87	%			9.15	%			8.46	%			7.73	%
Return on tangible common equity			13.52	%			14.30	%			14.62	%			13.58	%			12.36	%
Core return on average common equity			9.29	%			8.75	%			9.96	%			10.01	%			8.67	%
Core return on tangible common equity			14.76	%			14.13	%			15.89	%			15.99	%			13.80	%
Calculation of Efficiency Ratio (1)
Non-interest expense		$	64,137			$	61,789			$	67,806			$	67,495			$	64,804
Nonrecurring non-interest expense adjustment			(3,591	)			(107	)			(3,506	)			(1,320	)			(3,459	)
Less other real estate and foreclosure expense			(967	)			(966	)			(1,167	)			(2,297	)			(1,017	)
Less amortization of intangibles			(1,451	)			(1,455	)			(1,337	)			(1,265	)			(1,388	)
Efficiency ratio numerator		$	58,128			$	59,261			$	61,796			$	62,613			$	58,940
Net-interest income		$	66,583			$	70,232			$	73,751			$	78,676			$	73,207
Plus non-interest income			36,888				29,503				28,649				23,072				24,948
Nonrecurring non-interest income adjustment			-				(594	)			-				5,207				533
Plus fully tax-equivalent adjustment			2,105				2,084				2,185				2,172				2,303
(Gain) loss on sale of securities			(3,759	)			(329	)			(305	)			(40	)			-
Efficiency ratio denominator		$	101,817			$	100,896			$	104,280			$	109,087			$	100,991
Efficiency ratio (1)			57.09	%			58.73	%			59.26	%			57.40	%			58.36	%
Calculation of Core Net Interest Margin
Net interest income		$	66,583			$	70,232			$	73,751			$	78,676			$	73,207
FTE adjustment			2,105				2,084				2,185				2,172				2,303
Total accretable yield			(4,700	)			(8,077	)			(11,076	)			(14,928	)			(10,133	)
Core net interest income		$	63,988			$	64,239			$	64,860			$	65,920			$	65,377
Average earning assets		$	6,625,642			$	6,597,389			$	6,652,486			$	6,660,434			$	6,774,693
Core net interest margin			3.88	%			3.92	%			3.87	%			3.93	%			3.87	%
Calculation of Core Loan Yield
Loan interest income		$	63,009			$	66,678			$	70,511			$	76,432			$	70,438
Total accretable yield			(4,700	)			(8,077	)			(11,076	)			(14,928	)			(10,133	)
Core loan interest income		$	58,309			$	58,601			$	59,435			$	61,504			$	60,305
Average loan balance		$	4,957,888			$	4,889,685			$	4,868,283			$	4,835,068			$	4,689,941
Core loan yield			4.73	%			4.82	%			4.84	%			5.05	%			5.16	%

 

(1) Efficiency ratio is noninterest expense before foreclosed property expense and amortization of intangibles as a percent of net interest income (fully taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and nonrecurring items.

 

 

Simmons First National Corporation																		SFNC
Reconciliation Of Non-GAAP Financial Measures - Year-to-Date
For the Quarters Ended
(Unaudited)		Jun 30				Mar 31				Dec 31				Sept 30				Jun 30
		2016				2016				2016				2015				2015
($ in thousands)
Calculation of Core Return on Average Assets
Net income available to common stockholders		$	46,390			$	23,481			$	74,107			$	50,325			$	28,727
Net nonrecurring items, net of taxes, adjustment			1,886				(296	)			15,515				13,384				9,417
Core earnings		$	48,276			$	23,185			$	89,622			$	63,709			$	38,144
Average total assets		$	7,510,657			$	7,499,185			$	7,164,788			$	7,036,535			$	6,734,980
Return on average assets			1.24	%			1.26	%			1.03	%			0.96	%			0.86	%
Core return on average assets			1.29	%			1.24	%			1.25	%			1.21	%			1.14	%
Calculation of Return on Tangible Common Equity
Net income available to common stockholders		$	46,390			$	23,481			$	74,107			$	50,325			$	28,727
Amortization of intangibles, net of taxes			1,766				884				2,972				2,159				1,390
Total income available to common stockholders		$	48,156			$	24,365			$	77,079			$	52,484			$	30,117
Net nonrecurring items, net of taxes			1,886				(296	)			15,515				13,384				9,417
Core earnings			48,276				23,185				89,622				63,709				38,144
Amortization of intangibles, net of taxes			1,766				884				2,972				2,159				1,390
Total core income available to common stockholders		$	50,042			$	24,069			$	92,594			$	65,868			$	39,534
Average common stockholders' equity		$	1,075,957			$	1,065,296			$	938,521			$	907,458			$	855,325
Less average intangible assets:
Goodwill			(327,686	)			(327,686	)			(281,133	)			(268,106	)			(244,980	)
Other intangibles			(51,771	)			(52,498	)			(42,104	)			(41,372	)			(39,202	)
Total average intangibles			(379,457	)			(380,184	)			(323,237	)			(309,478	)			(284,182	)
Average tangible common stockholders' equity		$	696,500			$	685,112			$	615,284			$	597,980			$	571,143
Return on average common equity			8.67	%			8.87	%			7.90	%			7.41	%			6.77	%
Return on tangible common equity			13.90	%			14.30	%			12.53	%			11.73	%			10.63	%
Core return on average common equity			9.02	%			8.75	%			9.55	%			9.39	%			8.99	%
Core return on tangible common equity			14.45	%			14.13	%			15.05	%			14.73	%			13.96	%
Calculation of Efficiency Ratio (1)
Non-interest expense		$	125,931			$	61,789			$	256,970			$	189,166			$	122,011
Nonrecurring non-interest expense adjustment			(3,698	)			(107	)			(18,747	)			(15,241	)			(13,922	)
Less other real estate and foreclosure expense			(1,934	)			(966	)			(4,861	)			(3,694	)			(1,398	)
Less amortization of intangibles			(2,906	)			(1,455	)			(4,889	)			(3,552	)			(2,287	)
Efficiency ratio numerator		$	117,393			$	59,261			$	228,473			$	166,679			$	104,404
Net-interest income		$	136,814			$	70,232			$	278,595			$	204,844			$	126,168
Plus non-interest income			66,397				29,503				94,661				66,014				43,282
Nonrecurring non-interest income adjustment			(594	)			(594	)			5,731				5,731				523
Plus fully tax-equivalent adjustment			4,189				2,084				8,517				6,332				4,160
(Gain) loss on sale of securities			(4,088	)			(329	)			(307	)			(2	)			38
Efficiency ratio denominator		$	202,718			$	100,896			$	387,197			$	282,919			$	174,171
Efficiency ratio (1)			57.91	%			58.73	%			59.01	%			58.91	%			59.94	%
Calculation of Core Net Interest Margin
Net interest income		$	136,814			$	70,232			$	278,595			$	204,844			$	126,168
FTE adjustment			4,189				2,084				8,517				6,332				4,160
Total accretable yield			(12,777	)			(8,077	)			(46,131	)			(35,055	)			(20,127	)
Core net interest income		$	128,226			$	64,239			$	240,981			$	176,121			$	110,201
Average earning assets		$	6,611,516			$	6,597,389			$	6,305,966			$	6,170,521			$	5,948,265
Core net interest margin			3.90	%			3.92	%			3.82	%			3.82	%			3.74	%
Calculation of Core Loan Yield
Loan interest income		$	129,688			$	66,678			$	268,367			$	197,857			$	121,424
Total accretable yield			(12,777	)			(8,077	)			(46,131	)			(35,055	)			(20,127	)
Core loan interest income		$	116,911			$	58,601			$	222,236			$	162,802			$	101,297
Average loan balance		$	4,923,787			$	4,889,685			$	4,434,074			$	4,289,339			$	4,038,397
Core loan yield			4.77	%			4.82	%			5.01	%			5.07	%			5.06	%

 

(1) Efficiency ratio is noninterest expense before foreclosed property expense and amortization of intangibles as a percent of net interest income (fully taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and nonrecurring items.

 

 

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