EXHIBIT 99.1

 

 

For Immediate Release:

October 19, 2016

 

 

 

 

Simmons Reports Third Quarter Net Income of $23.4 Million

 

Pine Bluff, AR – Simmons First National Corporation (NASDAQ-GS: SFNC) today announced net income available to common shareholders of $23.4 million for the third quarter of 2016, an increase of $1.8 million, or 8.5 percent, compared with the same quarter last year. Diluted earnings per share were $0.76, an increase of $0.04, or 5.6 percent.

 

Included in third quarter 2016 results were $953,000 of after-tax expenses related to noncore items. Excluding the impact of these items, core earnings were $24.4 million for the third quarter of 2016 and diluted core earnings per share were $0.79.

 

Year-to-date net income was $69.8 million, an increase of $19.5 million, or 38.7 percent, compared with the same period of 2015. Year-to-date diluted earnings per share were $2.28, an increase of $0.45, or 24.6 percent. Year-to-date core earnings were $72.7 million, or $2.37 diluted core earnings per share.

 

On September 9, 2016, Simmons First National Corporation completed the acquisition of Citizens National Bank (“Citizens”), headquartered in Athens, Tenn. The systems conversion will take place on October 21, 2016, at which time nine Citizens branches will be merged into Simmons Bank.

 

“We welcome our newest associates from Citizens National Bank into the Simmons family. We look forward to continued growth in our east Tennessee markets,” said George A. Makris, Jr., chairman and CEO, “Our operating performance continues to produce good results. Our efficiency ratio for the third quarter was 53.8 percent, our return on assets was 1.21 percent, our return on equity was 8.4 percent, and our return on tangible common equity was 13.3 percent. I’m very proud of the accomplishments of our associates.”

 

Loans

 

Total loans, including those acquired, were $5.4 billion at September 30, 2016, an increase of $548 million, or 11.3 percent, compared with the same period in 2015. Legacy loans (all loans excluding acquired loans) grew $1.1 billion, or 38.9 percent. On a linked quarter basis, total loan growth was $387 million.

 

Deposits

 

At September 30, 2016, total deposits were $6.6 billion, an increase of $528 million, or 8.7 percent, compared with the same period in 2015. Total non-time deposits were $5.3 billion, an increase of $555 million, or 11.7 percent, and comprised 80 percent of total deposits.

 

Net Interest Income

 

The company’s net interest income for the third quarter of 2016 was $68.1 million, a decrease of $10.6 million, or 13.5 percent, from the same period of 2015. This decrease was primarily driven by a $10.0 million decline in yield accretion on acquired loans. Included in interest income was the yield accretion recognized on acquired loans of $4.9 million and $14.9 million for the third quarter of 2016 and 2015, respectively. Net interest margin was 4.09 percent for the quarter ended September 30, 2016, a 73 basis-point decline from the same quarter of 2015. The company’s core net interest margin, excluding the accretion, was 3.81 percent for the third quarter of 2016, a 12 basis-point decline from the same quarter of 2015.

 

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

 

Provision for Loan Losses

 

Provision for loan losses for the third quarter of 2016 was $8.3 million, an increase of $6.7 million compared with the third quarter of 2015. During the quarter, a single charge-off of $5.4 million was recorded in relation to a nonaccrual loan acquired from Metropolitan National Bank. The loan was charged down to the appraised liquidation value of the collateral and the charged-off amount was added back to the allowance for loan losses during the quarter, resulting in the increase in provision. Management will discuss this loan during the company’s earnings conference call tomorrow.

 

Non-Interest Income

 

Non-interest income for the third quarter was $36.9 million, an increase of $13.8 million compared with the third quarter of 2015. 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 $9.1 million in losses on FDIC-covered assets in the third quarter compared to the same period in 2015.

 

The remaining increase in non-interest income was due to additional mortgage lending, trust income, debit and credit card income and investment banking revenue.

 

Non-Interest Expense

 

Non-interest expense for the third quarter of 2016 was $62.4 million, a decrease of $5.1 million compared with the third quarter of 2015. Included in the quarter were $1.5 million of merger-related expenses. Salaries and benefits decreased by $5.2 million, or 14.1 percent, compared with the same quarter of 2015.

 

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 September 30, 2016, the allowance for loan losses for legacy loans was $34.1 million. The company's allowance for loan losses on legacy loans at September 30, 2016 was 0.86 percent of total loans and 91 percent of non-performing loans. In the legacy portfolio, non-performing loans as a percent of total loans were 0.95 percent.

 

The allowance for loan losses for acquired loans was $1.0 million and the acquired loan discount credit mark was $42.9 million. The allowances for loan losses and credit marks provide a total of $77.9 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 2.9 percent.

 

The 2016 year-to-date net charge-off ratio, excluding credit cards, was 44 basis points, and the year-to-date credit card charge-off ratio was 1.22 percent.

 

Capital

 

At September 30, 2016, common stockholders' equity was $1.1 billion, book value per share was $36.69 and tangible book value per share was $23.80. The company's ratio of stockholders' equity to total assets was 13.94 percent and its ratio of tangible common equity to tangible assets was 9.5 percent.

 

Simmons First National Corporation

 

Simmons First National Corporation is a financial holding company, headquartered in Pine Bluff, Ark., with total assets of $8.2 billion conducting financial operations throughout Arkansas, Kansas, Missouri and Tennessee. The company through its subsidiaries offers comprehensive financial solutions delivered with a 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, October 20, 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 87389332. In addition, the call will be available live or in recorded version on the company’s website at www.simmonsbank.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		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2016				2016				2016				2015				2015
($ in thousands)
ASSETS
Cash and non-interest bearing balances due from banks		$	112,572			$	96,037			$	118,468			$	97,656			$	106,678
Interest bearing balances due from banks			324,951				151,570				100,593				154,606				284,645
Federal funds sold			17,000				3,000				4,000				-				9,675
Cash and cash equivalents			454,523				250,607				223,061				252,262				400,998
Interest bearing balances due from banks - time			4,393				9,781				11,188				14,107				16,504
Investment securities - held-to-maturity			496,594				632,154				674,502				705,373				776,294
Investment securities - available-for-sale			1,024,206				821,372				857,673				821,407				703,347
Mortgage loans held for sale			28,069				30,529				24,563				30,265				15,556
Assets held in trading accounts			2,969				7,321				7,074				4,422				6,292
Loans:
Legacy loans			3,943,089				3,725,422				3,472,691				3,246,454				2,839,278
Allowance for loan losses			(34,094	)			(33,523	)			(32,681	)			(31,351	)			(30,380	)
Loans acquired
(net of discount and allowance)			1,458,198				1,288,435				1,457,370				1,672,901				2,013,816
Net loans			5,367,193				4,980,334				4,897,380				4,888,004				4,822,714
Premises and equipment			192,523				183,362				192,327				193,618				190,182
Premises held for sale			6,732				6,167				2,364				923				923
Foreclosed assets			30,396				30,529				41,126				44,820				48,073
Interest receivable			27,390				24,150				23,545				25,793				26,873
Bank owned life insurance			138,298				130,943				130,092				131,536				118,922
Goodwill			348,769				327,686				327,686				327,686				314,344
Other intangible assets			54,268				50,329				51,783				53,237				44,904
Other assets			50,669				48,955				72,589				66,205				73,768
Total assets		$	8,226,992			$	7,534,219			$	7,536,953			$	7,559,658			$	7,559,694
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts		$	1,473,420			$	1,283,426			$	1,274,816			$	1,280,234			$	1,212,724
Interest bearing transaction accounts and savings deposits			3,815,939				3,538,808				3,524,808				3,485,845				3,521,840
Time deposits less than $100,000			653,105				643,081				674,915				694,262				673,651
Time deposits greater than $100,000			674,917				562,888				605,236				625,755				681,585
Total deposits			6,617,381				6,028,203				6,079,775				6,086,096				6,089,800
Federal funds purchased and securities sold
under agreements to repurchase			124,289				103,038				97,429				99,398				110,437
Other borrowings			215,276				191,827				176,829				162,289				173,426
Subordinated debentures			60,290				60,184				60,077				60,570				61,906
Accrued interest and other liabilities			62,615				60,256				50,859				74,450				78,684
Total liabilities			7,079,851				6,443,508				6,464,969				6,482,803				6,514,253
Stockholders' equity:
Preferred stock			-				-				-				30,852				30,852
Common stock			313				304				303				303				299
Surplus			710,132				668,306				665,850				662,378				642,400
Undivided profits			434,579				417,863				402,265				385,987				369,172
Accumulated other comprehensive income (loss):
Unrealized appreciation (depreciation) on AFS securities			2,117				4,238				3,566				(2,665	)			2,718
Total stockholders' equity			1,147,141				1,090,711				1,071,984				1,076,855				1,045,441
Total liabilities and stockholders' equity		$	8,226,992			$	7,534,219			$	7,536,953			$	7,559,658			$	7,559,694

 

Page 1

 

Simmons First National Corporation																		SFNC
Consolidated Statements of Income - Quarter-to-Date
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2016				2016				2016				2015				2015
($ in thousands, except per share data)
INTEREST INCOME
Loans		$	65,078			$	63,009			$	66,678			$	70,511			$	76,432
Federal funds sold			19				17				10				10				15
Investment securities			7,774				8,499				8,506				8,350				8,335
Mortgage loans held for sale			299				295				278				237				291
Assets held in trading accounts			4				3				6				6				4
Interest bearing balances due from banks			244				77				144				225				122
TOTAL INTEREST INCOME			73,418				71,900				75,622				79,339				85,199
INTEREST EXPENSE
Time deposits			1,767				1,741				1,636				1,858				1,936
Other deposits			1,965				2,035				2,018				2,105				2,222
Federal funds purchased and securities
sold under agreements to repurchase			59				59				65				60				55
Other borrowings			1,048				938				1,128				1,084				1,812
Subordinated debentures			516				544				543				481				498
TOTAL INTEREST EXPENSE			5,355				5,317				5,390				5,588				6,523
NET INTEREST INCOME			68,063				66,583				70,232				73,751				78,676
Provision for loan losses			8,294				4,616				2,823				3,230				1,615
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES			59,769				61,967				67,409				70,521				77,061
NON-INTEREST INCOME
Trust income			3,873				3,656				3,631				2,725				2,215
Service charges on deposit accounts			8,771				7,661				7,316				8,104				8,488
Other service charges and fees			1,840				1,571				1,909				1,654				2,672
Mortgage lending income			5,760				5,877				3,792				2,298				3,446
Investment banking income			1,131				1,181				687				784				663
Debit and credit card fees			7,825				7,688				7,200				7,647				6,879
Bank owned life insurance income			606				826				997				614				748
Gain on sale of securities, net			315				3,759				329				305				40
Net (loss) gain on assets covered by FDIC loss-share agreements			-				-				-				-				(9,085	)
Other income			6,755				4,669				3,642				4,518				7,006
TOTAL NON-INTEREST INCOME			36,876				36,888				29,503				28,649				23,072
NON-INTEREST EXPENSE
Salaries and employee benefits			31,784				33,103				34,773				39,523				37,000
Occupancy expense, net			4,690				4,990				4,471				3,418				4,812
Furniture and equipment expense			4,272				4,077				3,947				3,731				4,202
Other real estate and foreclosure expense			1,849				967				966				1,167				2,297
Deposit insurance			1,136				1,096				1,148				1,222				1,013
Merger-related costs			1,524				372				93				1,237				857
Other operating expenses			17,179				19,532				16,391				17,508				17,314
TOTAL NON-INTEREST EXPENSE			62,434				64,137				61,789				67,806				67,495
NET INCOME BEFORE INCOME TAXES			34,211				34,718				35,123				31,364				32,638
Provision for income taxes			10,782				11,809				11,618				7,505				10,963
NET INCOME			23,429				22,909				23,505				23,859				21,675
Preferred stock dividends			-				-				24				77				77
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS		$	23,429			$	22,909			$	23,481			$	23,782			$	21,598
BASIC EARNINGS PER SHARE		$	0.77			$	0.75			$	0.77			$	0.79			$	0.72
DILUTED EARNINGS PER SHARE		$	0.76			$	0.75			$	0.77			$	0.78			$	0.72

 

Page 2

 

Simmons First National Corporation																		SFNC
Consolidated Core Earnings - Quarter-to-Date (non-GAAP) (1)
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2016				2016				2016				2015				2015
($ in thousands, except per share data)
INTEREST INCOME
Loans		$	65,078			$	63,009			$	66,678			$	70,511			$	76,432
Federal funds sold			19				17				10				10				15
Investment securities			7,774				8,499				8,506				8,350				8,335
Mortgage loans held for sale			299				295				278				237				291
Assets held in trading accounts			4				3				6				6				4
Interest bearing balances due from banks			244				77				144				225				122
TOTAL INTEREST INCOME			73,418				71,900				75,622				79,339				85,199
INTEREST EXPENSE
Time deposits			1,767				1,741				1,636				1,858				1,936
Other deposits			1,965				2,035				2,018				2,105				2,222
Federal funds purchased and securities
sold under agreements to repurchase			59				59				65				60				55
Other borrowings			1,048				938				1,128				1,084				1,812
Subordinated debentures			516				544				543				481				498
TOTAL INTEREST EXPENSE			5,355				5,317				5,390				5,588				6,523
NET INTEREST INCOME			68,063				66,583				70,232				73,751				78,676
Provision for loan losses			8,294				4,616				2,823				3,230				1,615
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES			59,769				61,967				67,409				70,521				77,061
NON-INTEREST INCOME
Trust income			3,873				3,656				3,631				2,725				2,215
Service charges on deposit accounts			8,771				7,661				7,316				8,104				8,488
Other service charges and fees			1,840				1,571				1,909				1,654				2,672
Mortgage lending income			5,760				5,877				3,792				2,298				3,446
Investment banking income			1,131				1,181				687				784				663
Debit and credit card fees			7,825				7,688				7,200				7,647				6,879
Bank owned life insurance income			606				826				997				614				748
Gain on sale of securities, net			315				3,759				329				305				40
Net (loss) gain on assets covered by FDIC loss-share agreements			-				-				-				-				(1,609	)
Other income			6,580				4,669				3,048				4,518				4,737
TOTAL NON-INTEREST INCOME			36,701				36,888				28,909				28,649				28,279
NON-INTEREST EXPENSE
Salaries and employee benefits			31,784				33,103				34,773				37,314				36,919
Occupancy expense, net			4,595				4,945				4,461				3,358				4,680
Furniture and equipment expense			4,270				4,077				3,947				3,731				4,172
Other real estate and foreclosure expense			1,787				967				966				1,167				2,297
Deposit insurance			1,136				1,096				1,148				1,222				1,013
Other operating expenses			17,120				16,358				16,387				17,508				17,094
TOTAL NON-INTEREST EXPENSE			60,692				60,546				61,682				64,300				66,175
CORE EARNINGS BEFORE INCOME TAXES (non-GAAP) (1)			35,778				38,309				34,636				34,870				39,165
Provision for income taxes			11,396				13,218				11,427				8,880				13,523
CORE EARNINGS (non-GAAP) (1)			24,382				25,091				23,209				25,990				25,642
Preferred stock dividends			-				-				24				77				77
CORE EARNINGS AVAILABLE TO COMMON S/H (non-GAAP) (1)		$	24,382			$	25,091			$	23,185			$	25,913			$	25,565
BASIC CORE EARNINGS PER SHARE (non-GAAP) (1)		$	0.80			$	0.83			$	0.76			$	0.86			$	0.85
DILUTED CORE EARNINGS PER SHARE (non-GAAP) (1)		$	0.79			$	0.82			$	0.76			$	0.86			$	0.85

 

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

Page 3

 

Simmons First National Corporation																		SFNC
Consolidated Risk-Based Capital
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2016				2016				2016				2015				2015
($ in thousands)
Tier 1 capital
Stockholders' equity		$	1,147,141			$	1,090,711			$	1,071,984			$	1,076,855			$	1,045,441
Trust preferred securities, net allowable			60,290				60,184				60,077				60,570				61,906
Disallowed intangible assets, net of deferred tax			(354,582	)			(334,395	)			(335,166	)			(331,931	)			(314,735	)
Unrealized loss (gain) on AFS securities			(2,117	)			(4,238	)			(3,566	)			2,665				(2,718	)
Total Tier 1 capital			850,732				812,262				793,329				808,159				789,894
Tier 2 capital
Qualifying allowance for loan losses and
reserve for unfunded commitments			38,050				37,240				36,398				35,068				34,097
Total Tier 2 capital			38,050				37,240				36,398				35,068				34,097
Total risk-based capital		$	888,782			$	849,502			$	829,727			$	843,227			$	823,991
Common equity
Tier 1 capital		$	850,732			$	812,262			$	793,329			$	808,159			$	789,894
Less: Non-cumulative preferred stock			-				-				-				(30,852	)			(30,852	)
Less: Trust preferred securities			(60,290	)			(60,184	)			(60,077	)			(60,570	)			(61,906	)
Total common equity		$	790,442			$	752,078			$	733,252			$	716,737			$	697,136
Risk weighted assets		$	5,724,052			$	5,343,355			$	5,293,395			$	5,044,453			$	4,986,641
Adjusted average assets for leverage ratio		$	7,355,702			$	7,185,633			$	7,167,839			$	7,218,559			$	7,293,113
Ratios at end of quarter
Equity to assets			13.94	%			14.48	%			14.22	%			14.24	%			13.83	%
Tangible common equity to tangible assets (1)			9.51	%			9.96	%			9.68	%			9.26	%			9.10	%
Common equity Tier 1 ratio (CET1)			13.81	%			14.08	%			13.85	%			14.21	%			13.98	%
Tier 1 leverage ratio			11.57	%			11.30	%			11.07	%			11.20	%			10.83	%
Tier 1 risk-based capital ratio			14.86	%			15.20	%			14.99	%			16.02	%			15.84	%
Total risk-based capital ratio			15.53	%			15.90	%			15.67	%			16.72	%			16.52	%

 

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

 

Page 4

 

Simmons First National Corporation																		SFNC
Consolidated Loans and Investments
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2016				2016				2016				2015				2015
($ in thousands)
Legacy Loan Portfolio - End of Period (1)
Consumer
Credit cards		$	175,032			$	171,468			$	167,803			$	177,288			$	171,701
Other consumer			275,947				248,018				227,480				208,380				182,472
Total consumer			450,979				419,486				395,283				385,668				354,173
Real Estate
Construction			304,082				330,666				300,042				279,740				253,761
Single-family residential			841,958				785,289				746,754				696,180				623,089
Other commercial			1,521,132				1,414,663				1,327,372				1,229,072				1,037,559
Total real estate			2,667,172				2,530,618				2,374,168				2,204,992				1,914,409
Commercial
Commercial			607,738				577,771				551,695				500,116				394,422
Agricultural			203,529				187,047				143,033				148,563				170,257
Total commercial			811,267				764,818				694,728				648,679				564,679
Other			13,671				10,500				8,512				7,115				6,017
Total Loans		$	3,943,089			$	3,725,422			$	3,472,691			$	3,246,454			$	2,839,278
(1) Excludes all acquired loans.
Investment Securities - End of Period
Held-to-Maturity
U.S. Government agencies		$	80,849			$	199,505			$	223,484			$	237,139			$	285,071
Mortgage-backed securities			21,454				22,612				23,734				24,774				25,913
State and political subdivisions			391,495				407,273				424,586				440,676				464,245
Other securities			2,796				2,764				2,698				2,784				1,065
Total held-to-maturity			496,594				632,154				674,502				705,373				776,294
Available-for-Sale
U.S. Treasury		$	63,985			$	4,305			$	4,302			$	3,994			$	4,008
U.S. Government agencies			148,781				58,113				78,308				120,237				153,576
Mortgage-backed securities			699,748				652,425				722,982				647,425				502,344
State and political subdivisions			67,019				64,836				11,260				9,874				10,976
FHLB stock			11,235				8,781				7,838				7,823				14,275
Other securities			33,438				32,912				32,983				32,054				18,168
Total available-for-sale			1,024,206				821,372				857,673				821,407				703,347
Total investment securities		$	1,520,800			$	1,453,526			$	1,532,175			$	1,526,780			$	1,479,641
Fair value - HTM investment securities		$	508,910			$	647,293			$	686,835			$	713,371			$	785,030
Investment Securities - QTD Average
Taxable securities		$	963,150			$	1,059,802			$	1,067,302			$	1,043,268			$	1,088,597
Tax exempt securities			466,782				443,492				439,370				463,631				478,436
Total investment securities - QTD average		$	1,429,932			$	1,503,294			$	1,506,672			$	1,506,899			$	1,567,033

 

Page 5

 

Simmons First National Corporation																		SFNC
Consolidated Loans and Credit Coverage
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2016				2016				2016				2015				2015
($ in thousands)
LOANS
Legacy loans		$	3,943,089			$	3,725,422			$	3,472,691			$	3,246,454			$	2,839,278
Allowance for loan losses (legacy loans)			(34,094	)			(33,523	)			(32,681	)			(31,351	)			(30,380	)
Legacy loans (net of allowance)			3,908,995				3,691,899				3,440,010				3,215,103				2,808,898
Loans acquired			1,502,051				1,327,683				1,503,482				1,729,557				2,085,211
Credit discount			(42,899	)			(38,294	)			(45,158	)			(55,702	)			(70,441	)
Allowance for loan losses (loans acquired)			(954	)			(954	)			(954	)			(954	)			(954	)
Loans acquired (net of discount and allowance)			1,458,198				1,288,435				1,457,370				1,672,901				2,013,816
Net loans		$	5,367,193			$	4,980,334			$	4,897,380			$	4,888,004			$	4,822,714
Loan Coverage Ratios
Allowance for loan losses to legacy loans			0.86	%			0.90	%			0.94	%			0.97	%			1.07	%
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)			2.92	%			2.96	%			3.07	%			3.28	%			3.42	%
Total allowance and credit coverage (non-GAAP) (1)			1.43	%			1.44	%			1.58	%			1.77	%			2.07	%

 

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

 

Page 6

 

 

Simmons First National Corporation																		SFNC
Consolidated Allowance and Asset Quality
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2016				2016				2016				2015				2015
($ in thousands)
Allowance for Loan Losses (Legacy Loans)
Balance, beginning of quarter		$	33,523			$	32,681			$	31,351			$	30,380			$	30,567
Loans charged off
Credit cards			699				702				859				757				763
Other consumer			600				489				393				489				597
Real estate			6,297				824				229				845				109
Commercial			284				2,283				476				654				516
Total loans charged off			7,880				4,298				1,957				2,745				1,985
Recoveries of loans previously charged off
Credit cards			199				253				242				223				213
Other consumer			106				149				103				140				78
Real estate			55				111				112				120				25
Commercial			12				318				7				3				-
Total recoveries			372				831				464				486				316
Net loans charged off			7,508				3,467				1,493				2,259				1,669
Provision for loan losses			8,079				4,309				2,823				3,230				1,482
Balance, end of quarter		$	34,094			$	33,523			$	32,681			$	31,351			$	30,380
Non-performing assets (1) (2)
Non-performing loans
Nonaccrual loans			37,392				43,305				34,244				17,714				15,305
Loans past due 90 days or more			144				227				881				1,191				1,506
Total non-performing loans			37,536				43,532				35,125				18,905				16,811
Other non-performing assets
Foreclosed assets held for sale (2)			30,396				30,529				41,126				44,820				48,073
Other non-performing assets			621				519				256				211				172
Total other non-performing assets			31,017				31,048				41,382				45,031				48,245
Total non-performing assets		$	68,553			$	74,580			$	76,507			$	63,936			$	65,056
Performing TDRs (troubled debt restructurings)		$	13,604			$	10,887			$	10,759			$	3,031			$	1,955
Ratios (1) (2)
Allowance for loan losses to total loans			0.86	%			0.90	%			0.94	%			0.97	%			1.07	%
Allowance for loan losses to non-performing loans			91	%			77	%			93	%			166	%			181	%
Non-performing loans to total loans			0.95	%			1.17	%			1.01	%			0.58	%			0.59	%
Non-performing assets (including performing TDRs)
to total assets			1.00	%			1.13	%			1.16	%			0.89	%			0.89	%
Non-performing assets to total assets			0.83	%			0.99	%			1.02	%			0.85	%			0.86	%
Annualized net charge offs to total loans			0.82	%			0.39	%			0.18	%			0.31	%			0.24	%
Annualized net credit card charge offs to
total credit card loans			1.14	%			1.07	%			1.46	%			1.22	%			1.26	%
Annualized net charge offs to total loans
(excluding credit cards)			0.81	%			0.36	%			0.11	%			0.25	%			0.17	%

 

(1) Excludes all acquired loans, except for their inclusion in total assets.

(2) Includes acquired foreclosed assets held for sale.

 

Page 7

 

Simmons First National Corporation																																		SFNC
Consolidated - Average Balance Sheet and Net Interest Income Analysis
For the Quarters Ended
(Unaudited)
		Three Months Ended Sep 2016												Three Months Ended Jun 2016												Three Months Ended Sep 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		$	246,818			$	244				0.39	%		$	126,114			$	77				0.25	%		$	206,467			$	122				0.23	%
Federal funds sold			6,431				19				1.18	%			2,570				17				2.66	%			19,086				15				0.31	%
Investment securities - taxable			1,038,437				4,445				1.70	%			1,087,179				5,273				1.95	%			1,209,985				4,901				1.61	%
Investment securities - non-taxable (FTE)			391,495				5,468				5.56	%			416,115				5,300				5.12	%			357,048				5,582				6.20	%
Mortgage loans held for sale			31,256				299				3.81	%			28,844				295				4.11	%			26,379				291				4.38	%
Assets held in trading accounts			5,108				4				0.31	%			6,932				3				0.17	%			6,401				4				0.25	%
Loans, including acquired loans			5,105,474				65,120				5.07	%			4,957,888				63,041				5.11	%			4,835,068				76,456				6.27	%
Total interest earning assets (FTE)			6,825,019				75,599				4.41	%			6,625,642				74,006				4.49	%			6,660,434				87,371				5.20	%
Non-earning assets			878,818												896,491												947,333
Total assets		$	7,703,837											$	7,522,133											$	7,607,767
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Interest bearing transaction and
savings accounts		$	3,645,414			$	1,965				0.21	%		$	3,526,278			$	2,035				0.23	%		$	3,600,930			$	2,222				0.24	%
Time deposits			1,213,895				1,767				0.58	%			1,242,805				1,741				0.56	%			1,397,928				1,936				0.55	%
Total interest bearing deposits			4,859,309				3,732				0.31	%			4,769,083				3,776				0.32	%			4,998,858				4,158				0.33	%
Federal funds purchased and securities
sold under agreement to repurchase			105,576				59				0.22	%			104,668				59				0.23	%			109,311				55				0.20	%
Other borrowings			192,453				1,048				2.17	%			172,268				938				2.19	%			197,832				1,812				3.63	%
Subordinated debentures			60,238				516				3.41	%			60,132				544				3.64	%			61,851				498				3.19	%
Total interest bearing liabilities			5,217,576				5,355				0.41	%			5,106,151				5,317				0.42	%			5,367,852				6,523				0.48	%
Non-interest bearing liabilities:
Non-interest bearing deposits			1,322,818												1,271,878												1,121,078
Other liabilities			49,191												57,486												74,696
Total liabilities			6,589,585												6,435,515												6,563,626
Stockholders' equity			1,114,252												1,086,618												1,044,141
Total liabilities and stockholders' equity		$	7,703,837											$	7,522,133											$	7,607,767
Net interest income (FTE)						$	70,244											$	68,689											$	80,848
Net interest spread (FTE)											4.00	%											4.07	%											4.72	%
Net interest margin (FTE) - quarter-to-date											4.09	%											4.17	%											4.82	%
Net interest margin (FTE) - year-to-date											4.22	%											4.29	%											4.58	%
Core net interest margin (FTE) - quarter-to-date (1)											3.81	%											3.88	%											3.93	%
Core loan yield (FTE) - quarter-to-date (1)											4.69	%											4.73	%											5.05	%
Core net interest margin (FTE) - year-to-date (1)											3.87	%											3.90	%											3.82	%
Core loan yield (FTE) - year-to-date (1)											4.75	%											4.77	%											5.07	%

 

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

 

Page 8

 

Simmons First National Corporation																		SFNC
Consolidated - Selected Financial Data
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2016				2016				2016				2015				2015
($ in thousands, except share data)
QUARTER-TO-DATE
Financial Highlights - GAAP
Net Income		$	23,429			$	22,909			$	23,481			$	23,782			$	21,598
Diluted earnings per share			0.76				0.75				0.77				0.78				0.72
Return on average assets			1.21	%			1.22	%			1.26	%			1.25	%			1.13	%
Return on average common equity			8.36	%			8.48	%			8.87	%			9.15	%			8.46	%
Return on tangible common equity			13.26	%			13.52	%			14.30	%			14.62	%			13.58	%
Net interest margin (FTE)			4.09	%			4.17	%			4.41	%			4.53	%			4.82	%
FTE adjustment			2,181				2,105				2,084				2,185				2,172
Amortization of intangibles			1,503				1,451				1,455				1,337				1,265
Amortization of intangibles, net of taxes			913				882				884				813				769
Average diluted shares outstanding			30,843,714				30,452,285				30,481,604				30,301,190				30,046,062
Cash dividends declared per common share			0.24				0.24				0.24				0.23				0.23
Financial Highlights - Core (non-GAAP)
Core earnings (excludes nonrecurring items) (1)		$	24,382			$	25,091			$	23,185			$	25,913			$	25,565
Diluted core earnings per share (1)			0.79				0.82				0.76				0.86				0.85
Core net interest margin (FTE) (2)			3.81	%			3.88	%			3.92	%			3.87	%			3.93	%
Efficiency ratio (1)			53.83	%			57.09	%			58.73	%			59.26	%			57.40	%
Core return on average assets (1)			1.26	%			1.34	%			1.24	%			1.36	%			1.33	%
Core return on average common equity (1)			8.71	%			9.29	%			8.75	%			9.96	%			10.01	%
Core return on tangible common equity (1)			13.78	%			14.76	%			14.13	%			15.89	%			15.99	%
YEAR-TO-DATE
Financial Highlights - GAAP
Net Income		$	69,819			$	46,390			$	23,481			$	74,107			$	50,325
Diluted earnings per share			2.28				1.52				0.77				2.63				1.83
Return on average assets			1.23	%			1.24	%			1.26	%			1.03	%			0.96	%
Return on average common equity			8.57	%			8.67	%			8.87	%			7.90	%			7.41	%
Return on tangible common equity			13.68	%			13.90	%			14.30	%			12.53	%			11.73	%
Net interest margin (FTE)			4.22	%			4.29	%			4.41	%			4.55	%			4.58	%
FTE adjustment			6,370				4,189				2,084				8,517				6,332
Amortization of intangibles			4,409				2,906				1,455				4,889				3,552
Amortization of intangibles, net of taxes			2,679				1,766				884				2,972				2,159
Average diluted shares outstanding			30,656,882				30,438,939				30,481,604				28,209,661				27,497,813
Cash dividends declared per common share			0.72				0.48				0.24				0.92				0.69
Financial Highlights - Core (non-GAAP)
Core earnings (excludes nonrecurring items) (1)		$	72,658			$	48,276			$	23,185			$	89,622			$	63,709
Diluted core earnings per share (1)			2.37				1.59				0.76				3.18				2.32
Core net interest margin (FTE) (2)			3.87	%			3.90	%			3.92	%			3.82	%			3.82	%
Efficiency ratio (1)			56.50	%			57.91	%			58.73	%			59.01	%			58.91	%
Core return on average assets (1)			1.28	%			1.29	%			1.24	%			1.25	%			1.21	%
Core return on average common equity (1)			8.91	%			9.02	%			8.75	%			9.55	%			9.39	%
Core return on tangible common equity (1)			14.22	%			14.45	%			14.13	%			15.05	%			14.73	%
END OF PERIOD
Book value per share		$	36.69			$	35.86			$	35.35			$	34.55			$	33.89
Tangible book value per share			23.80				23.43				22.84				21.97				21.89
Shares outstanding			31,267,614				30,415,980				30,324,499				30,278,432				29,939,698
Full-time equivalent employees			1,985				1,880				1,931				1,946				1,967
Total number of ATM's			186				174				185				182				183
Total number of financial centers			150				140				149				149				149

 

(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.

 

Page 9

 

Simmons First National Corporation																		SFNC
Consolidated - Reconciliation of Core Earnings (non-GAAP)
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2016				2016				2016				2015				2015
($ in thousands, except per share data)
QUARTER-TO-DATE
Net Income		$	23,429			$	22,909			$	23,481			$	23,782			$	21,598
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			1,524				372				93				1,237				857
Branch right-sizing			43				3,219				14				60				304
Tax effect (1)			(614	)			(1,409	)			191				(1,375	)			(2,560	)
Net nonrecurring items			953				2,182				(296	)			2,131				3,967
Core earnings (non-GAAP)		$	24,382			$	25,091			$	23,185			$	25,913			$	25,565
Diluted earnings per share		$	0.76			$	0.75			$	0.77			$	0.78			$	0.72
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				0.01				-				0.05				0.03
Branch right-sizing			-				0.11				-				-				0.01
Tax effect (1)			(0.02	)			(0.05	)			0.01				(0.05	)			(0.09	)
Net nonrecurring items			0.03				0.07				(0.01	)			0.08				0.13
Core earnings (non-GAAP)		$	0.79			$	0.82			$	0.76			$	0.86			$	0.85
YEAR-TO-DATE
Net Income		$	69,819			$	46,390			$	23,481			$	74,107			$	50,325
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	)			(594	)			-				-
Loss on FDIC loss-share termination			-				-				-				7,476				7,476
Merger-related costs			1,989				465				93				13,760				12,523
Branch right-sizing			3,276				3,233				14				3,144				3,084
Tax effect (1)			(1,832	)			(1,218	)			191				(8,964	)			(7,589	)
Net nonrecurring items			2,839				1,886				(296	)			15,515				13,384
Core earnings (non-GAAP)		$	72,658			$	48,276			$	23,185			$	89,622			$	63,709
Diluted earnings per share		$	2.28			$	1.52			$	0.77			$	2.63			$	1.83
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	)			(0.02	)			-				-
Loss on FDIC loss-share termination			-				-				-				0.27				0.27
Merger-related costs			0.06				0.02				-				0.49				0.46
Branch right-sizing			0.11				0.11				-				0.11				0.11
Tax effect (1)			(0.06	)			(0.04	)			0.01				(0.33	)			(0.28	)
Net nonrecurring items			0.09				0.07				(0.01	)			0.55				0.49
Core earnings (non-GAAP)		$	2.37			$	1.59			$	0.76			$	3.18			$	2.32

 

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

 

Page 10

 

Simmons First National Corporation																		SFNC
Reconciliation Of Non-GAAP Financial Measures - End of Period
For the Quarters Ended
(Unaudited)		Sept 30				Jun 30				Mar 31				Dec 31				Sept 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		$	1,147,141			$	1,090,711			$	1,071,984			$	1,076,855			$	1,045,441
Preferred stock			-				-				-				(30,852	)			(30,852	)
Total common stockholders' equity			1,147,141				1,090,711				1,071,984				1,046,003				1,014,589
Intangible assets:
Goodwill			(348,769	)			(327,686	)			(327,686	)			(327,686	)			(314,344	)
Other intangible assets			(54,268	)			(50,329	)			(51,783	)			(53,237	)			(44,904	)
Total intangibles			(403,037	)			(378,015	)			(379,469	)			(380,923	)			(359,248	)
Tangible common stockholders' equity		$	744,104			$	712,696			$	692,515			$	665,080			$	655,341
Total assets		$	8,226,992			$	7,534,219			$	7,536,953			$	7,559,658			$	7,559,694
Intangible assets:
Goodwill			(348,769	)			(327,686	)			(327,686	)			(327,686	)			(314,344	)
Other intangible assets			(54,268	)			(50,329	)			(51,783	)			(53,237	)			(44,904	)
Total intangibles			(403,037	)			(378,015	)			(379,469	)			(380,923	)			(359,248	)
Tangible assets		$	7,823,955			$	7,156,204			$	7,157,484			$	7,178,735			$	7,200,446
Ratio of equity to assets			13.94	%			14.48	%			14.22	%			14.24	%			13.83	%
Ratio of tangible common equity to tangible assets			9.51	%			9.96	%			9.68	%			9.26	%			9.10	%
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		$	42,899			$	38,294			$	45,158			$	55,702			$	70,441
Allowance for loan losses on acquired loans			954				954				954				954				954
Total credit discount and ALLL on acquired loans		$	43,853			$	39,248			$	46,112			$	56,656			$	71,395
Total loans acquired		$	1,502,051			$	1,327,683			$	1,503,482			$	1,729,557			$	2,085,211
Discount and ALLL on acquired loans to acquired loans			2.92	%			2.96	%			3.07	%			3.28	%			3.42	%
Calculation of Total Allowance and Credit Coverage
Allowance for loan losses		$	34,094			$	33,523			$	32,681			$	31,351			$	30,380
Total credit discount and ALLL on acquired loans			43,853				39,248				46,112				56,656				71,395
Total allowance and credit discount		$	77,947			$	72,771			$	78,793			$	88,007			$	101,775
Total loans		$	5,445,140			$	5,053,105			$	4,976,173			$	4,976,011			$	4,924,489
Total allowance and credit coverage			1.43	%			1.44	%			1.58	%			1.77	%			2.07	%
Calculation of Tangible Book Value per Share
Total common stockholders' equity		$	1,147,141			$	1,090,711			$	1,071,984			$	1,046,003			$	1,014,589
Intangible assets:
Goodwill			(348,769	)			(327,686	)			(327,686	)			(327,686	)			(314,344	)
Other intangible assets			(54,268	)			(50,329	)			(51,783	)			(53,237	)			(44,904	)
Total intangibles			(403,037	)			(378,015	)			(379,469	)			(380,923	)			(359,248	)
Tangible common stockholders' equity		$	744,104			$	712,696			$	692,515			$	665,080			$	655,341
Shares of common stock outstanding			31,267,614				30,415,980				30,324,499				30,278,432				29,939,698
Book value per common share		$	36.69			$	35.86			$	35.35			$	34.55			$	33.89
Tangible book value per common share		$	23.80			$	23.43			$	22.84			$	21.97			$	21.89

 

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Simmons First National Corporation																		SFNC
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date
For the Quarters Ended
(Unaudited)		Sept 30				Jun 30				Mar 31				Dec 31				Sept 30
		2016				2016				2016				2015				2015
($ in thousands)
Calculation of Core Return on Average Assets
Net income available to common stockholders		$	23,429			$	22,909			$	23,481			$	23,782			$	21,598
Net nonrecurring items, net of taxes, adjustment			953				2,182				(296	)			2,131				3,967
Core earnings		$	24,382			$	25,091			$	23,185			$	25,913			$	25,565
Average total assets		$	7,703,837			$	7,522,133			$	7,499,185			$	7,550,569			$	7,607,767
Return on average assets			1.21	%			1.22	%			1.26	%			1.25	%			1.13	%
Core return on average assets			1.26	%			1.34	%			1.24	%			1.36	%			1.33	%
Calculation of Return on Tangible Common Equity
Net income available to common stockholders		$	23,429			$	22,909			$	23,481			$	23,782			$	21,598
Amortization of intangibles, net of taxes			913				882				884				813				769
Total income available to common stockholders		$	24,342			$	23,791			$	24,365			$	24,595			$	22,367
Net nonrecurring items, net of taxes			953				2,182				(296	)			2,131				3,967
Core earnings			24,382				25,091				23,185				25,913				25,565
Amortization of intangibles, net of taxes			913				882				884				813				769
Total core income available to common stockholders		$	25,295			$	25,973			$	24,069			$	26,726			$	26,334
Average common stockholders' equity		$	1,114,252			$	1,086,618			$	1,065,296			$	1,031,710			$	1,013,289
Average intangible assets:
Goodwill			(332,893	)			(327,686	)			(327,686	)			(320,216	)			(314,344	)
Other intangibles			(50,893	)			(51,043	)			(52,498	)			(44,302	)			(45,712	)
Total average intangibles			(383,786	)			(378,729	)			(380,184	)			(364,518	)			(360,056	)
Average tangible common stockholders' equity		$	730,466			$	707,889			$	685,112			$	667,192			$	653,233
Return on average common equity			8.36	%			8.48	%			8.87	%			9.15	%			8.46	%
Return on tangible common equity			13.26	%			13.52	%			14.30	%			14.62	%			13.58	%
Core return on average common equity			8.71	%			9.29	%			8.75	%			9.96	%			10.01	%
Core return on tangible common equity			13.78	%			14.76	%			14.13	%			15.89	%			15.99	%
Calculation of Efficiency Ratio (1)
Non-interest expense		$	62,434			$	64,137			$	61,789			$	67,806			$	67,495
Nonrecurring non-interest expense adjustment			(1,742	)			(3,591	)			(107	)			(3,506	)			(1,320	)
Other real estate and foreclosure expense adjustment			(1,787	)			(967	)			(966	)			(1,167	)			(2,297	)
Amortization of intangibles adjustment			(1,503	)			(1,451	)			(1,455	)			(1,337	)			(1,265	)
Efficiency ratio numerator		$	57,402			$	58,128			$	59,261			$	61,796			$	62,613
Net-interest income		$	68,063			$	66,583			$	70,232			$	73,751			$	78,676
Non-interest income			36,876				36,888				29,503				28,649				23,072
Nonrecurring non-interest income adjustment			(175	)			-				(594	)			-				5,207
Fully tax-equivalent adjustment			2,181				2,105				2,084				2,185				2,172
(Gain) loss on sale of securities			(315	)			(3,759	)			(329	)			(305	)			(40	)
Efficiency ratio denominator		$	106,630			$	101,817			$	100,896			$	104,280			$	109,087
Efficiency ratio (1)			53.83	%			57.09	%			58.73	%			59.26	%			57.40	%
Calculation of Core Net Interest Margin
Net interest income		$	68,063			$	66,583			$	70,232			$	73,751			$	78,676
Fully tax-equivalent adjustment			2,181				2,105				2,084				2,185				2,172
Fully tax-equivalent net interest income			70,244				68,688				72,316				75,936				80,848
Total accretable yield			(4,928	)			(4,700	)			(8,077	)			(11,076	)			(14,928	)
Core net interest income		$	65,316			$	63,988			$	64,239			$	64,860			$	65,920
Average earning assets		$	6,825,019			$	6,625,642			$	6,597,389			$	6,652,486			$	6,660,434
Net interest margin			4.09	%			4.17	%			4.41	%			4.53	%			4.82	%
Core net interest margin			3.81	%			3.88	%			3.92	%			3.87	%			3.93	%
Calculation of Core Loan Yield
Loan interest income		$	65,078			$	63,009			$	66,678			$	70,511			$	76,432
Total accretable yield			(4,928	)			(4,700	)			(8,077	)			(11,076	)			(14,928	)
Core loan interest income		$	60,150			$	58,309			$	58,601			$	59,435			$	61,504
Average loan balance		$	5,105,474			$	4,957,888			$	4,889,685			$	4,868,283			$	4,835,068
Core loan yield			4.69	%			4.73	%			4.82	%			4.84	%			5.05	%

 

(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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Simmons First National Corporation																		SFNC
Reconciliation Of Non-GAAP Financial Measures - Year-to-Date
For the Quarters Ended
(Unaudited)		Sept 30				Jun 30				Mar 31				Dec 31				Sept 30
		2016				2016				2016				2015				2015
($ in thousands)
Calculation of Core Return on Average Assets
Net income available to common stockholders		$	69,819			$	46,390			$	23,481			$	74,107			$	50,325
Net nonrecurring items, net of taxes, adjustment			2,839				1,886				(296	)			15,515				13,384
Core earnings		$	72,658			$	48,276			$	23,185			$	89,622			$	63,709
Average total assets		$	7,575,053			$	7,510,657			$	7,499,185			$	7,164,788			$	7,036,535
Return on average assets			1.23	%			1.24	%			1.26	%			1.03	%			0.96	%
Core return on average assets			1.28	%			1.29	%			1.24	%			1.25	%			1.21	%
Calculation of Return on Tangible Common Equity
Net income available to common stockholders		$	69,819			$	46,390			$	23,481			$	74,107			$	50,325
Amortization of intangibles, net of taxes			2,679				1,766				884				2,972				2,159
Total income available to common stockholders		$	72,498			$	48,156			$	24,365			$	77,079			$	52,484
Net nonrecurring items, net of taxes			2,839				1,886				(296	)			15,515				13,384
Core earnings			72,658				48,276				23,185				89,622				63,709
Amortization of intangibles, net of taxes			2,679				1,766				884				2,972				2,159
Total core income available to common stockholders		$	75,337			$	50,042			$	24,069			$	92,594			$	65,868
Average common stockholders' equity		$	1,088,723			$	1,075,957			$	1,065,296			$	938,521			$	907,458
Average intangible assets:
Goodwill			(329,422	)			(327,686	)			(327,686	)			(281,133	)			(268,106	)
Other intangibles			(51,478	)			(51,771	)			(52,498	)			(42,104	)			(41,372	)
Total average intangibles			(380,900	)			(379,457	)			(380,184	)			(323,237	)			(309,478	)
Average tangible common stockholders' equity		$	707,823			$	696,500			$	685,112			$	615,284			$	597,980
Return on average common equity			8.57	%			8.67	%			8.87	%			7.90	%			7.41	%
Return on tangible common equity			13.68	%			13.90	%			14.30	%			12.53	%			11.73	%
Core return on average common equity			8.91	%			9.02	%			8.75	%			9.55	%			9.39	%
Core return on tangible common equity			14.22	%			14.45	%			14.13	%			15.05	%			14.73	%
Calculation of Efficiency Ratio (1)
Non-interest expense		$	188,360			$	125,931			$	61,789			$	256,970			$	189,166
Nonrecurring non-interest expense adjustment			(5,440	)			(3,698	)			(107	)			(18,747	)			(15,241	)
Other real estate and foreclosure expense adjustment			(3,720	)			(1,934	)			(966	)			(4,861	)			(3,694	)
Amortization of intangibles adjustment			(4,409	)			(2,906	)			(1,455	)			(4,889	)			(3,552	)
Efficiency ratio numerator		$	174,791			$	117,393			$	59,261			$	228,473			$	166,679
Net-interest income		$	204,878			$	136,814			$	70,232			$	278,595			$	204,844
Non-interest income			103,267				66,397				29,503				94,661				66,014
Nonrecurring non-interest income adjustment			(769	)			(594	)			(594	)			5,731				5,731
Fully tax-equivalent adjustment			6,370				4,189				2,084				8,517				6,332
(Gain) loss on sale of securities			(4,403	)			(4,088	)			(329	)			(307	)			(2	)
Efficiency ratio denominator		$	309,343			$	202,718			$	100,896			$	387,197			$	282,919
Efficiency ratio (1)			56.50	%			57.91	%			58.73	%			59.01	%			58.91	%
Calculation of Core Net Interest Margin
Net interest income		$	204,878			$	136,814			$	70,232			$	278,595			$	204,844
Fully tax-equivalent adjustment			6,370				4,189				2,084				8,517				6,332
Fully tax-equivalent net interest income			211,248				141,003				72,316				287,112				211,176
Total accretable yield			(17,705	)			(12,777	)			(8,077	)			(46,131	)			(35,055	)
Core net interest income		$	193,543			$	128,226			$	64,239			$	240,981			$	176,121
Average earning assets		$	6,682,683			$	6,611,516			$	6,597,389			$	6,305,966			$	6,170,521
Net interest margin			4.22	%			4.29	%			4.41	%			4.55	%			4.58	%
Core net interest margin			3.87	%			3.90	%			3.92	%			3.82	%			3.82	%
Calculation of Core Loan Yield
Loan interest income		$	194,765			$	129,688			$	66,678			$	268,367			$	197,857
Total accretable yield			(17,705	)			(12,777	)			(8,077	)			(46,131	)			(35,055	)
Core loan interest income		$	177,060			$	116,911			$	58,601			$	222,236			$	162,802
Average loan balance		$	4,984,349			$	4,923,787			$	4,889,685			$	4,434,074			$	4,289,339
Core loan yield			4.75	%			4.77	%			4.82	%			5.01	%			5.07	%

 

(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.

 

Page 13