Exhibit 99.1

 

 

For Immediate Release:

January 18, 2017

 

 

Simmons Reports Fourth Quarter Net Income of $27 Million

 

Pine Bluff, AR – Simmons First National Corp. (NASDAQ-GS: SFNC) today announced net income available to common shareholders of $27.0 million for the fourth quarter of 2016, an increase of $3.2 million, or 13.4 percent, compared with the same quarter last year. Diluted earnings per share were $0.85, an increase of $0.07, or 9.0 percent.

 

Included in fourth quarter 2016 results were $1.8 million in net after-tax merger-related and branch right-sizing costs. Excluding the impact of these items, core earnings were $28.8 million for the fourth quarter of 2016 and diluted core earnings per share were $0.91.

 

Year-to-date net income was $96.8 million, an increase of $22.7 million, or 30.6 percent, compared with the same period of 2015. Year-to-date diluted earnings per share were $3.13, an increase of $0.50, or 19.0 percent. Year-to-date core earnings were $101.4 million, or $3.28 diluted core earnings per share.

 

“We are very pleased with our results during the fourth quarter. Our associates are beginning to leverage our size and integrate more of our services in markets previously unserved,” said George A. Makris Jr., chairman and CEO. “We are excited about our future related to our previously announced mergers. Simmons Bank will enter new and very attractive markets as a result of the Bank SNB merger and will be able to expand in our current markets with the First South Bank merger. We look forward to significant growth from these mergers.”

 

Loans

 

Total loans, including those acquired, were $5.6 billion at Dec. 31, 2016, an increase of $714 million, or 14.5 percent, compared with the same period in 2016. Legacy loans (all loans excluding acquired loans) grew $1.1 billion, or 33.3 percent. On a linked quarter basis, total loan growth was $232 million, including a reduction in agricultural production loans of $53 million.

 

Deposits

 

At Dec. 31, 2016, total deposits were $6.7 billion, an increase of $649 million, or 10.7 percent, compared with the same period in 2015. Total non-time deposits were $5.4 billion, an increase of $682 million, or 14.3 percent, and comprised 81 percent of total deposits.

 

Net Interest Income

 

The company’s net interest income for the fourth quarter of 2016 was $74.3 million, an increase of $577,000, or 0.8 percent, from the same period of 2015. The net interest income was impacted by a $4.5 million decline in yield accretion on acquired loans. Included in interest income was the yield accretion recognized on acquired loans of $6.6 million and $11.1 million for the fourth quarter of 2016 and 2015, respectively. Net interest margin was 4.12 percent for the quarter ended Dec. 31, 2016, a 41 basis-point decline from the same quarter of 2015. The company’s core net interest margin, excluding the accretion, was 3.76 percent for the fourth quarter of 2016, an 11 basis-point decline from the same quarter of 2015.

 

Provision for Loan Losses

 

Provision for loan losses for the fourth quarter of 2016 was $4.3 million, an increase of $1.1 million compared with the fourth quarter of 2015. The provision increase was necessary in order to maintain an appropriate allowance for loan losses for the company’s growing legacy loan portfolio.

 

Non-Interest Income

 

Non-interest income for the fourth quarter was $36.1 million, an increase of $7.5 million compared with the fourth quarter of 2015. The increase in non-interest income was due to additional mortgage lending, trust income, debit and credit card income.

 

Non-Interest Expense

 

Non-interest expense for the fourth quarter of 2016 was $66.7 million, a decrease of $1.1 million compared with the fourth quarter of 2015. Included in the quarter were $2.8 million of merger-related expenses. Salaries and benefits decreased by $5.7 million, or 14.5 percent, compared with the same quarter of 2015. This decrease was partially offset by increases in occupancy expenses and other operating expenses related to our recent acquisition and the restructuring of our compliance and risk areas in preparation for growth.

 

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 Dec. 31, 2016, the allowance for loan losses for legacy loans was $36.3 million. The company's allowance for loan losses on legacy loans at Dec. 31, 2016 was 0.84 percent of total loans and 92 percent of non-performing loans. In the legacy portfolio, non-performing loans as a percent of total loans were 0.91 percent.

 

The allowance for loan losses for acquired loans was $1.0 million and the acquired loan discount credit mark was $35.5 million. The allowances for loan losses and credit marks provide a total of $72.7 million of coverage, which equates to a total coverage ratio of 1.3 percent of gross loans. The ratio of credit mark and related allowance to acquired loans was 2.7 percent.

 

The 2016 year-to-date net charge-off ratio, excluding credit cards, was 35 basis points, and the year-to-date credit card charge-off ratio was 1.28 percent.

 

Capital

 

At Dec. 31, 2016, common stockholders' equity was $1.2 billion, book value per share was $36.80 and tangible book value per share was $23.97. The company's ratio of stockholders' equity to total assets was 13.7 percent and its ratio of tangible common equity to tangible assets was 9.4 percent.

 

Simmons First National Corporation

 

Simmons First National Corp. is a financial holding company, headquartered in Pine Bluff, Ark., with total assets of $8.4 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 live conference call to review this information beginning at 11 a.m. CST on Thursday, Jan. 19, 2017. 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 Corp. conference call, conference ID 46453886. 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 non-core 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 Corp.’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		Dec 31				Sep 30				Jun 30				Mar 31				Dec 31
(Unaudited)		2016				2016				2016				2016				2015
($ in thousands)
ASSETS
Cash and non-interest bearing balances due from banks		$	117,007			$	112,572			$	96,037			$	118,468			$	97,656
Interest bearing balances due from banks			168,652				324,951				151,570				100,593				154,606
Federal funds sold			-				17,000				3,000				4,000				-
Cash and cash equivalents			285,659				454,523				250,607				223,061				252,262
Interest bearing balances due from banks - time			4,563				4,393				9,781				11,188				14,107
Investment securities - held-to-maturity			462,096				496,594				632,154				674,502				705,373
Investment securities - available-for-sale			1,157,354				1,024,206				821,372				857,673				821,407
Mortgage loans held for sale			27,788				28,069				30,529				24,563				30,265
Assets held in trading accounts			41				2,969				7,321				7,074				4,422
Loans:
Legacy loans			4,327,207				3,943,089				3,725,422				3,472,691				3,246,454
Allowance for loan losses			(36,286	)			(34,094	)			(33,523	)			(32,681	)			(31,351	)
Loans acquired (net of discount and allowance)			1,305,683				1,458,198				1,288,435				1,457,370				1,672,901
Net loans			5,596,604				5,367,193				4,980,334				4,897,380				4,888,004
Premises and equipment			199,359				192,523				183,362				192,327				193,618
Premises held for sale			6,052				6,732				6,167				2,364				923
Foreclosed assets			26,895				30,396				30,529				41,126				44,820
Interest receivable			27,788				27,390				24,150				23,545				25,793
Bank owned life insurance			138,620				138,298				130,943				130,092				131,536
Goodwill			348,505				348,769				327,686				327,686				327,686
Other intangible assets			52,959				54,268				50,329				51,783				53,237
Other assets			65,773				50,669				48,955				72,589				66,205
Total assets		$	8,400,056			$	8,226,992			$	7,534,219			$	7,536,953			$	7,559,658
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts		$	1,491,676			$	1,473,420			$	1,283,426			$	1,274,816			$	1,280,234
Interest bearing transaction accounts and savings deposits			3,956,483				3,815,939				3,538,808				3,524,808				3,485,845
Time deposits less than $100,000			686,780				653,105				643,081				674,915				694,262
Time deposits greater than $100,000			600,280				674,917				562,888				605,236				625,755
Total deposits			6,735,219				6,617,381				6,028,203				6,079,775				6,086,096
Federal funds purchased and securities sold
under agreements to repurchase			115,029				124,289				103,038				97,429				99,398
Other borrowings			273,159				215,276				191,827				176,829				162,289
Subordinated debentures			60,397				60,290				60,184				60,077				60,570
Accrued interest and other liabilities			65,141				62,615				60,256				50,859				74,450
Total liabilities			7,248,945				7,079,851				6,443,508				6,464,969				6,482,803
Stockholders' equity:
Preferred stock			-				-				-				-				30,852
Common stock			313				313				304				303				303
Surplus			711,976				710,132				668,306				665,850				662,378
Undivided profits			454,034				434,579				417,863				402,265				385,987
Accumulated other comprehensive income (loss):
Unrealized appreciation (depreciation) on AFS securities			(15,212	)			2,117				4,238				3,566				(2,665	)
Total stockholders' equity			1,151,111				1,147,141				1,090,711				1,071,984				1,076,855
Total liabilities and stockholders' equity		$	8,400,056			$	8,226,992			$	7,534,219			$	7,536,953			$	7,559,658

 

 Page 1 

Simmons First National Corporation																		SFNC
Consolidated Statements of Income - Quarter-to-Date
For the Quarters Ended		Dec 31				Sep 30				Jun 30				Mar 31				Dec 31
(Unaudited)		2016				2016				2016				2016				2015
($ in thousands, except per share data)
INTEREST INCOME
Loans		$	70,887			$	65,078			$	63,009			$	66,678			$	70,511
Federal funds sold			11				19				17				10				10
Investment securities			8,700				7,774				8,499				8,506				8,350
Mortgage loans held for sale			230				299				295				278				237
Assets held in trading accounts			3				4				3				6				6
Interest bearing balances due from banks			234				244				77				144				225
TOTAL INTEREST INCOME			80,065				73,418				71,900				75,622				79,339
INTEREST EXPENSE
Time deposits			2,023				1,767				1,741				1,636				1,858
Other deposits			2,032				1,965				2,035				2,018				2,105
Federal funds purchased and securities
sold under agreements to repurchase			90				59				59				65				60
Other borrowings			1,034				1,048				938				1,128				1,084
Subordinated debentures			558				516				544				543				481
TOTAL INTEREST EXPENSE			5,737				5,355				5,317				5,390				5,588
NET INTEREST INCOME			74,328				68,063				66,583				70,232				73,751
Provision for loan losses			4,332				8,294				4,616				2,823				3,230
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES			69,996				59,769				61,967				67,409				70,521
NON-INTEREST INCOME
Trust income			4,282				3,873				3,656				3,631				2,725
Service charges on deposit accounts			8,666				8,771				7,661				7,316				8,104
Other service charges and fees			1,593				1,840				1,571				1,909				1,654
Mortgage lending income			7,013				5,760				5,877				3,792				2,298
Investment banking income			472				1,131				1,181				687				784
Debit and credit card fees			8,027				7,825				7,688				7,200				7,647
Bank owned life insurance income			895				606				826				997				614
Gain on sale of securities, net			1,445				315				3,759				329				305
Other income			3,722				6,755				4,669				3,642				4,518
TOTAL NON-INTEREST INCOME			36,115				36,876				36,888				29,503				28,649
NON-INTEREST EXPENSE
Salaries and employee benefits			33,797				31,784				33,103				34,773				39,523
Occupancy expense, net			4,516				4,690				4,990				4,471				3,418
Furniture and equipment expense			4,387				4,272				4,077				3,947				3,731
Other real estate and foreclosure expense			679				1,849				967				966				1,167
Deposit insurance			89				1,136				1,096				1,148				1,222
Merger-related costs			2,846				1,524				372				93				1,237
Other operating expenses			20,411				17,179				19,532				16,391				17,508
TOTAL NON-INTEREST EXPENSE			66,725				62,434				64,137				61,789				67,806
NET INCOME BEFORE INCOME TAXES			39,386				34,211				34,718				35,123				31,364
Provision for income taxes			12,415				10,782				11,809				11,618				7,505
NET INCOME			26,971				23,429				22,909				23,505				23,859
Preferred stock dividends			-				-				-				24				77
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS		$	26,971			$	23,429			$	22,909			$	23,481			$	23,782
BASIC EARNINGS PER SHARE		$	0.86			$	0.77			$	0.75			$	0.77			$	0.79
DILUTED EARNINGS PER SHARE		$	0.85			$	0.76			$	0.75			$	0.77			$	0.78

 

Page 2

Simmons First National Corporation																		SFNC
Consolidated Risk-Based Capital
For the Quarters Ended		Dec 31				Sep 30				Jun 30				Mar 31				Dec 31
(Unaudited)		2016				2016				2016				2016				2015
($ in thousands)
Tier 1 capital
Stockholders' equity		$	1,151,111			$	1,147,141			$	1,090,711			$	1,071,984			$	1,076,855
Trust preferred securities, net allowable			60,397				60,290				60,184				60,077				60,570
Disallowed intangible assets, net of deferred tax			(354,028	)			(354,582	)			(334,395	)			(335,166	)			(331,931	)
Unrealized loss (gain) on AFS securities			15,212				(2,117	)			(4,238	)			(3,566	)			2,665
Other			15				-				-				-				-
Total Tier 1 capital			872,707				850,732				812,262				793,329				808,159
Tier 2 capital
Qualifying allowance for loan losses and
reserve for unfunded commitments			40,241				38,050				37,240				36,398				35,068
Total Tier 2 capital			40,241				38,050				37,240				36,398				35,068
Total risk-based capital		$	912,948			$	888,782			$	849,502			$	829,727			$	843,227
Common equity
Tier 1 capital		$	872,707			$	850,732			$	812,262			$	793,329			$	808,159
Less: Non-cumulative preferred stock			-				-				-				-				(30,852	)
Less: Trust preferred securities			(60,397	)			(60,290	)			(60,184	)			(60,077	)			(60,570	)
Total common equity		$	812,310			$	790,442			$	752,078			$	733,252			$	716,737
Risk weighted assets		$	6,039,034			$	5,724,052			$	5,343,355			$	5,293,395			$	5,044,453
Adjusted average assets for leverage ratio		$	7,966,681			$	7,355,702			$	7,185,633			$	7,167,839			$	7,218,559
Ratios at end of quarter
Equity to assets			13.70	%			13.94	%			14.48	%			14.22	%			14.24	%
Tangible common equity to tangible assets (1)			9.37	%			9.51	%			9.96	%			9.68	%			9.26	%
Common equity Tier 1 ratio (CET1)			13.45	%			13.81	%			14.08	%			13.85	%			14.21	%
Tier 1 leverage ratio			10.95	%			11.57	%			11.30	%			11.07	%			11.20	%
Tier 1 risk-based capital ratio			14.45	%			14.86	%			15.20	%			14.99	%			16.02	%
Total risk-based capital ratio			15.12	%			15.53	%			15.90	%			15.67	%			16.72	%

 

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

 

 Page 3 

Simmons First National Corporation																		SFNC
Consolidated Loans and Investments
For the Quarters Ended		Dec 31				Sep 30				Jun 30				Mar 31				Dec 31
(Unaudited)		2016				2016				2016				2016				2015
($ in thousands)
Legacy Loan Portfolio - End of Period (1)
Consumer
Credit cards		$	184,591			$	175,032			$	171,468			$	167,803			$	177,288
Other consumer			303,972				275,947				248,018				227,480				208,380
Total consumer			488,563				450,979				419,486				395,283				385,668
Real Estate
Construction			336,759				304,082				330,666				300,042				279,740
Single-family residential			904,245				841,958				785,289				746,754				696,180
Other commercial			1,787,075				1,521,132				1,414,663				1,327,372				1,229,072
Total real estate			3,028,079				2,667,172				2,530,618				2,374,168				2,204,992
Commercial
Commercial			639,525				607,738				577,771				551,695				500,116
Agricultural			150,378				203,529				187,047				143,033				148,563
Total commercial			789,903				811,267				764,818				694,728				648,679
Other			20,662				13,671				10,500				8,512				7,115
Total Loans		$	4,327,207			$	3,943,089			$	3,725,422			$	3,472,691			$	3,246,454
(1) Excludes all acquired loans.
Investment Securities - End of Period
Held-to-Maturity
U.S. Government agencies		$	76,875			$	80,849			$	199,505			$	223,484			$	237,139
Mortgage-backed securities			19,773				21,454				22,612				23,734				24,774
State and political subdivisions			362,532				391,495				407,273				424,586				440,676
Other securities			2,916				2,796				2,765				2,698				2,784
Total held-to-maturity			462,096				496,594				632,155				674,502				705,373
Available-for-Sale
U.S. Treasury		$	300			$	63,985			$	4,305			$	4,302			$	3,994
U.S. Government agencies			137,771				148,781				58,113				78,308				120,237
Mortgage-backed securities			868,324				699,748				652,425				722,982				647,425
State and political subdivisions			102,943				67,019				64,836				11,260				9,874
FHLB stock			12,235				11,235				8,781				7,838				7,823
Other securities			35,781				33,438				32,911				32,983				32,054
Total available-for-sale			1,157,354				1,024,206				821,371				857,673				821,407
Total investment securities		$	1,619,450			$	1,520,800			$	1,453,526			$	1,532,175			$	1,526,780
Fair value - HTM investment securities		$	465,960			$	508,910			$	647,293			$	686,835			$	713,371
Investment Securities - QTD Average
Taxable securities		$	1,146,703			$	963,150			$	1,059,802			$	1,067,302			$	1,043,268
Tax exempt securities			467,757				466,782				443,492				439,370				463,631
Total investment securities - QTD average		$	1,614,460			$	1,429,932			$	1,503,294			$	1,506,672			$	1,506,899

 

Page 4 

Simmons First National Corporation																		SFNC
Consolidated Loans and Credit Coverage
For the Quarters Ended		Dec 31				Sep 30				Jun 30				Mar 31				Dec 31
(Unaudited)		2016				2016				2016				2016				2015
($ in thousands)
LOANS
Legacy loans		$	4,327,207			$	3,943,089			$	3,725,422			$	3,472,691			$	3,246,454
Allowance for loan losses (legacy loans)			(36,286	)			(34,094	)			(33,523	)			(32,681	)			(31,351	)
Legacy loans (net of allowance)			4,290,921				3,908,995				3,691,899				3,440,010				3,215,103
Loans acquired			1,342,099				1,502,051				1,327,683				1,503,482				1,729,557
Credit discount			(35,462	)			(42,899	)			(38,294	)			(45,158	)			(55,702	)
Allowance for loan losses (loans acquired)			(954	)			(954	)			(954	)			(954	)			(954	)
Loans acquired (net of discount and allowance)			1,305,683				1,458,198				1,288,435				1,457,370				1,672,901
Net loans		$	5,596,604			$	5,367,193			$	4,980,334			$	4,897,380			$	4,888,004
Loan Coverage Ratios
Allowance for loan losses to legacy loans			0.84	%			0.86	%			0.90	%			0.94	%			0.97	%
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)			2.71	%			2.92	%			2.96	%			3.07	%			3.28	%
Total allowance and credit coverage (non-GAAP) (1)			1.28	%			1.43	%			1.44	%			1.58	%			1.77	%

 

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

 

Page 5 

Simmons First National Corporation																		SFNC
Consolidated Allowance and Asset Quality
For the Quarters Ended		Dec 31				Sep 30				Jun 30				Mar 31				Dec 31
(Unaudited)		2016				2016				2016				2016				2015
($ in thousands)
Allowance for Loan Losses (Legacy Loans)
Balance, beginning of quarter		$	34,094			$	33,523			$	32,681			$	31,351			$	30,380
Loans charged off
Credit cards			935				699				702				859				757
Other consumer			493				600				489				393				489
Real estate			167				6,297				824				229				845
Commercial			913				284				2,283				476				654
Total loans charged off			2,508				7,880				4,298				1,957				2,745
Recoveries of loans previously charged off
Credit cards			213				199				253				242				223
Other consumer			158				106				149				103				140
Real estate			73				55				111				112				120
Commercial			28				12				318				7				3
Total recoveries			472				372				831				464				486
Net loans charged off			2,036				7,508				3,467				1,493				2,259
Provision for loan losses			4,228				8,079				4,309				2,823				3,230
Balance, end of quarter		$	36,286			$	34,094			$	33,523			$	32,681			$	31,351
Non-performing assets (1) (2)
Non-performing loans
Nonaccrual loans			39,104				37,392				43,305				34,244				17,714
Loans past due 90 days or more			299				144				227				881				1,191
Total non-performing loans			39,403				37,536				43,532				35,125				18,905
Other non-performing assets
Foreclosed assets held for sale (2)			26,895				30,396				30,529				41,126				44,820
Other non-performing assets			471				621				519				256				211
Total other non-performing assets			27,366				31,017				31,048				41,382				45,031
Total non-performing assets		$	66,769			$	68,553			$	74,580			$	76,507			$	63,936
Performing TDRs (troubled debt restructurings)		$	10,998			$	13,604			$	10,887			$	10,759			$	3,031
Ratios (1) (2)
Allowance for loan losses to total loans			0.84	%			0.86	%			0.90	%			0.94	%			0.97	%
Allowance for loan losses to non-performing loans			92	%			91	%			77	%			93	%			166	%
Non-performing loans to total loans			0.91	%			0.95	%			1.17	%			1.01	%			0.58	%
Non-performing assets (including performing TDRs)
to total assets			0.93	%			1.00	%			1.13	%			1.16	%			0.89	%
Non-performing assets to total assets			0.79	%			0.83	%			0.99	%			1.02	%			0.85	%
Annualized net charge offs to total loans			0.20	%			0.82	%			0.39	%			0.18	%			0.31	%
Annualized net credit card charge offs to
total credit card loans			1.66	%			1.14	%			1.07	%			1.46	%			1.22	%
Annualized net charge offs to total loans
(excluding credit cards)			0.14	%			0.81	%			0.36	%			0.11	%			0.25	%

 

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

 (2) Includes acquired foreclosed assets held for sale.

 

Page 6 

Simmons First National Corporation																																		SFNC
Consolidated - Average Balance Sheet and Net Interest Income Analysis
For the Quarters Ended
(Unaudited)
		Three Months Ended Dec 2016												Three Months Ended Sep 2016												Three Months Ended Dec 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		$	243,396			$	234				0.38	%		$	246,818			$	244				0.39	%		$	247,930			$	225				0.36	%
Federal funds sold			5,381				11				0.81	%			6,431				19				1.18	%			1,930				10				2.06	%
Investment securities - taxable			1,236,864				5,681				1.83	%			1,038,437				4,775				1.83	%			1,053,874				4,941				1.86	%
Investment securities - non-taxable (FTE)			377,596				4,959				5.22	%			391,495				4,926				5.01	%			453,025				5,570				4.88	%
Mortgage loans held for sale			23,307				230				3.93	%			31,256				299				3.81	%			21,294				237				4.42	%
Assets held in trading accounts			1,774				3				0.67	%			5,108				4				0.31	%			6,150				6				0.39	%
Loans, including acquired loans			5,484,918				70,941				5.15	%			5,105,474				65,120				5.07	%			4,868,283				70,535				5.75	%
Total interest earning assets (FTE)			7,373,236				82,059				4.43	%			6,825,019				75,387				4.39	%			6,652,486				81,524				4.86	%
Non-earning assets			935,222												878,818												898,083
Total assets		$	8,308,458											$	7,703,837											$	7,550,569
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Interest bearing transaction and
savings accounts		$	3,895,367			$	2,032				0.21	%		$	3,645,414			$	1,965				0.21	%		$	3,442,857			$	2,105				0.24	%
Time deposits			1,292,961				2,023				0.62	%			1,213,895				1,767				0.58	%			1,338,416				1,858				0.55	%
Total interest bearing deposits			5,188,328				4,055				0.31	%			4,859,309				3,732				0.31	%			4,781,273				3,963				0.33	%
Federal funds purchased and securities
sold under agreement to repurchase			124,323				90				0.29	%			105,576				59				0.22	%			108,389				60				0.22	%
Other borrowings			203,615				1,034				2.02	%			192,453				1,048				2.17	%			167,167				1,084				2.57	%
Subordinated debentures			60,345				558				3.68	%			60,238				516				3.41	%			61,697				481				3.09	%
Total interest bearing liabilities			5,576,611				5,737				0.41	%			5,217,576				5,355				0.41	%			5,118,526				5,588				0.43	%
Non-interest bearing liabilities:
Non-interest bearing deposits			1,515,853												1,322,818												1,295,713
Other liabilities			59,061												49,191												73,768
Total liabilities			7,151,525												6,589,585												6,488,007
Stockholders' equity			1,156,933												1,114,252												1,062,562
Total liabilities and stockholders' equity		$	8,308,458											$	7,703,837											$	7,550,569
Net interest income (FTE)						$	76,322											$	70,032											$	75,936
Net interest spread (FTE)											4.02	%											3.98	%											4.43	%
Net interest margin (FTE) - quarter-to-date											4.12	%											4.08	%											4.53	%
Net interest margin (FTE) - year-to-date											4.19	%											4.21	%											4.55	%
Core net interest margin (FTE) - quarter-to-date (1)											3.76	%											3.79	%											3.87	%
Core loan yield (FTE) - quarter-to-date (1)											4.67	%											4.69	%											4.84	%
Core net interest margin (FTE) - year-to-date (1)											3.83	%											3.86	%											3.82	%
Core loan yield (FTE) - year-to-date (1)											4.72	%											4.75	%											5.01	%

 

(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 7

Simmons First National Corporation																		SFNC
Consolidated - Selected Financial Data
For the Quarters Ended		Dec 31				Sep 30				Jun 30				Mar 31				Dec 31
(Unaudited)		2016				2016				2016				2016				2015
($ in thousands, except share data)
QUARTER-TO-DATE
Financial Highlights - GAAP
Net Income		$	26,971			$	23,429			$	22,909			$	23,481			$	23,782
Diluted earnings per share			0.85				0.76				0.75				0.77				0.78
Return on average assets			1.29	%			1.21	%			1.22	%			1.26	%			1.25	%
Return on average common equity			9.27	%			8.36	%			8.48	%			8.87	%			9.15	%
Return on tangible common equity			14.71	%			13.26	%			13.52	%			14.30	%			14.62	%
Net interest margin (FTE)			4.12	%			4.08	%			4.14	%			4.41	%			4.53	%
FTE adjustment			1,994				1,969				1,675				2,084				2,185
Amortization of intangibles			1,533				1,503				1,451				1,455				1,337
Amortization of intangibles, net of taxes			932				913				882				884				813
Average diluted shares outstanding			31,592,713				30,843,714				30,452,285				30,481,604				30,301,190
Cash dividends declared per common share			0.24				0.24				0.24				0.24				0.23
Financial Highlights - Core (non-GAAP)
Core earnings (excludes non-core items) (1)		$	28,751			$	24,382			$	25,091			$	23,185			$	25,913
Diluted core earnings per share (1)			0.91				0.79				0.82				0.76				0.86
Core net interest margin (FTE) (2)			3.76	%			3.79	%			3.86	%			3.92	%			3.87	%
Efficiency ratio (1)			55.47	%			53.94	%			57.33	%			58.73	%			59.26	%
Core return on average assets (1)			1.38	%			1.26	%			1.34	%			1.24	%			1.36	%
Core return on average common equity (1)			9.89	%			8.71	%			9.29	%			8.75	%			9.96	%
Core return on tangible common equity (1)			15.65	%			13.78	%			14.76	%			14.13	%			15.89	%
YEAR-TO-DATE
Financial Highlights - GAAP
Net Income		$	96,790			$	69,819			$	46,390			$	23,481			$	74,107
Diluted earnings per share			3.13				2.28				1.52				0.77				2.63
Return on average assets			1.25	%			1.23	%			1.24	%			1.26	%			1.03	%
Return on average common equity			8.75	%			8.57	%			8.67	%			8.87	%			7.90	%
Return on tangible common equity			13.92	%			13.68	%			13.90	%			14.30	%			12.53	%
Net interest margin (FTE)			4.19	%			4.21	%			4.28	%			4.41	%			4.55	%
FTE adjustment			7,722				5,728				3,759				2,084				8,517
Amortization of intangibles			5,942				4,409				2,906				1,455				4,889
Amortization of intangibles, net of taxes			3,611				2,679				1,766				884				2,972
Average diluted shares outstanding			30,963,546				30,656,882				30,438,939				30,481,604				28,209,661
Cash dividends declared per common share			0.96				0.72				0.48				0.24				0.92
Financial Highlights - Core (non-GAAP)
Core earnings (excludes non-core items) (1)		$	101,409			$	72,658			$	48,276			$	23,185			$	89,622
Diluted core earnings per share (1)			3.28				2.37				1.59				0.76				3.18
Core net interest margin (FTE) (2)			3.83	%			3.86	%			3.89	%			3.92	%			3.82	%
Efficiency ratio (1)			56.32	%			56.62	%			58.03	%			58.73	%			59.01	%
Core return on average assets (1)			1.31	%			1.28	%			1.29	%			1.24	%			1.25	%
Core return on average common equity (1)			9.17	%			8.91	%			9.02	%			8.75	%			9.55	%
Core return on tangible common equity (1)			14.56	%			14.22	%			14.45	%			14.13	%			15.05	%
END OF PERIOD
Book value per share		$	36.80			$	36.69			$	35.86			$	35.35			$	34.55
Tangible book value per share			23.97				23.80				23.43				22.84				21.97
Shares outstanding			31,279,401				31,267,614				30,415,980				30,324,499				30,278,432
Full-time equivalent employees			1,875				1,985				1,880				1,931				1,946
Total number of ATM's			186				186				174				185				182
Total number of financial centers			150				150				140				149				149

 

  (1) Core earnings exclude non-core 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 8 

Simmons First National Corporation																		SFNC
Consolidated - Reconciliation of Core Earnings (non-GAAP)
For the Quarters Ended		Dec 31				Sep 30				Jun 30				Mar 31				Dec 31
(Unaudited)		2016				2016				2016				2016				2015
($ in thousands, except per share data)
QUARTER-TO-DATE
Net Income		$	26,971			$	23,429			$	22,909			$	23,481			$	23,782
Non-core items
Accelerated vesting on retirement agreements			-				-				-				-				2,209
Gain from early retirement of trust preferred securities			-				-				-				(594	)			-
Merger-related costs			2,846				1,524				372				93				1,237
Branch right-sizing			83				43				3,219				14				60
Tax effect (1)			(1,149	)			(614	)			(1,409	)			191				(1,375	)
Net non-core items			1,780				953				2,182				(296	)			2,131
Core earnings (non-GAAP)		$	28,751			$	24,382			$	25,091			$	23,185			$	25,913
Diluted earnings per share		$	0.85			$	0.76			$	0.75			$	0.77			$	0.78
Non-core items
Accelerated vesting on retirement agreements			-				-				-				-				0.08
Gain from early retirement of trust preferred securities			-				-				-				(0.02	)			-
Merger-related costs			0.09				0.05				0.01				-				0.05
Branch right-sizing			-				-				0.11				-				-
Tax effect (1)			(0.03	)			(0.02	)			(0.05	)			0.01				(0.05	)
Net non-core items			0.06				0.03				0.07				(0.01	)			0.08
Core earnings (non-GAAP)		$	0.91			$	0.79			$	0.82			$	0.76			$	0.86
YEAR-TO-DATE
Net Income		$	96,790			$	69,819			$	46,390			$	23,481			$	74,107
Non-core 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	)			(594	)			(594	)			(594	)			-
Loss on FDIC loss-share termination			-				-				-				-				7,476
Merger-related costs			4,835				1,989				465				93				13,760
Branch right-sizing			3,359				3,276				3,233				14				3,144
Tax effect (1)			(2,981	)			(1,832	)			(1,218	)			191				(8,964	)
Net non-core items			4,619				2,839				1,886				(296	)			15,515
Core earnings (non-GAAP)		$	101,409			$	72,658			$	48,276			$	23,185			$	89,622
Diluted earnings per share		$	3.13			$	2.28			$	1.52			$	0.77			$	2.63
Non-core 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	)			(0.02	)			(0.02	)			(0.02	)			-
Loss on FDIC loss-share termination			-				-				-				-				0.27
Merger-related costs			0.16				0.06				0.02				-				0.49
Branch right-sizing			0.11				0.11				0.11				-				0.11
Tax effect (1)			(0.10	)			(0.06	)			(0.04	)			0.01				(0.33	)
Net non-core items			0.15				0.09				0.07				(0.01	)			0.55
Core earnings (non-GAAP)		$	3.28			$	2.37			$	1.59			$	0.76			$	3.18

 

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

 Page 9 

Simmons First National Corporation																		SFNC
Reconciliation Of Non-GAAP Financial Measures - End of Period
For the Quarters Ended
(Unaudited)		Dec 31				Sept 30				Jun 30				Mar 31				Dec 31
		2016				2016				2016				2016				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		$	1,151,111			$	1,147,141			$	1,090,711			$	1,071,984			$	1,076,855
Preferred stock			-				-				-				-				(30,852	)
Total common stockholders' equity			1,151,111				1,147,141				1,090,711				1,071,984				1,046,003
Intangible assets:
Goodwill			(348,505	)			(348,769	)			(327,686	)			(327,686	)			(327,686	)
Other intangible assets			(52,959	)			(54,268	)			(50,329	)			(51,783	)			(53,237	)
Total intangibles			(401,464	)			(403,037	)			(378,015	)			(379,469	)			(380,923	)
Tangible common stockholders' equity		$	749,647			$	744,104			$	712,696			$	692,515			$	665,080
Total assets		$	8,400,056			$	8,226,992			$	7,534,219			$	7,536,953			$	7,559,658
Intangible assets:
Goodwill			(348,505	)			(348,769	)			(327,686	)			(327,686	)			(327,686	)
Other intangible assets			(52,959	)			(54,268	)			(50,329	)			(51,783	)			(53,237	)
Total intangibles			(401,464	)			(403,037	)			(378,015	)			(379,469	)			(380,923	)
Tangible assets		$	7,998,592			$	7,823,955			$	7,156,204			$	7,157,484			$	7,178,735
Ratio of equity to assets			13.70	%			13.94	%			14.48	%			14.22	%			14.24	%
Ratio of tangible common equity to tangible assets			9.37	%			9.51	%			9.96	%			9.68	%			9.26	%
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		$	35,462			$	42,899			$	38,294			$	45,158			$	55,702
Allowance for loan losses on acquired loans			954				954				954				954				954
Total credit discount and ALLL on acquired loans		$	36,416			$	43,853			$	39,248			$	46,112			$	56,656
Total loans acquired		$	1,342,099			$	1,502,051			$	1,327,683			$	1,503,482			$	1,729,557
Discount and ALLL on acquired loans to acquired loans			2.71	%			2.92	%			2.96	%			3.07	%			3.28	%
Calculation of Total Allowance and Credit Coverage
Allowance for loan losses		$	36,286			$	34,094			$	33,523			$	32,681			$	31,351
Total credit discount and ALLL on acquired loans			36,416				43,853				39,248				46,112				56,656
Total allowance and credit discount		$	72,702			$	77,947			$	72,771			$	78,793			$	88,007
Total loans		$	5,669,306			$	5,445,140			$	5,053,105			$	4,976,173			$	4,976,011
Total allowance and credit coverage			1.28	%			1.43	%			1.44	%			1.58	%			1.77	%
Calculation of Tangible Book Value per Share
Total common stockholders' equity		$	1,151,111			$	1,147,141			$	1,090,711			$	1,071,984			$	1,046,003
Intangible assets:
Goodwill			(348,505	)			(348,769	)			(327,686	)			(327,686	)			(327,686	)
Other intangible assets			(52,959	)			(54,268	)			(50,329	)			(51,783	)			(53,237	)
Total intangibles			(401,464	)			(403,037	)			(378,015	)			(379,469	)			(380,923	)
Tangible common stockholders' equity		$	749,647			$	744,104			$	712,696			$	692,515			$	665,080
Shares of common stock outstanding			31,279,401				31,267,614				30,415,980				30,324,499				30,278,432
Book value per common share		$	36.80			$	36.69			$	35.86			$	35.35			$	34.55
Tangible book value per common share		$	23.97			$	23.80			$	23.43			$	22.84			$	21.97

 

 Page 10 

Simmons First National Corporation																		SFNC
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date
For the Quarters Ended
(Unaudited)		Dec 31				Sept 30				Jun 30				Mar 31				Dec 31
		2016				2016				2016				2016				2015
($ in thousands)
Calculation of Core Return on Average Assets
Net income available to common stockholders		$	26,971			$	23,429			$	22,909			$	23,481			$	23,782
Net non-core items, net of taxes, adjustment			1,780				953				2,182				(296	)			2,131
Core earnings		$	28,751			$	24,382			$	25,091			$	23,185			$	25,913
Average total assets		$	8,308,458			$	7,703,837			$	7,522,133			$	7,499,185			$	7,550,569
Return on average assets			1.29	%			1.21	%			1.22	%			1.26	%			1.25	%
Core return on average assets			1.38	%			1.26	%			1.34	%			1.24	%			1.36	%
Calculation of Return on Tangible Common Equity
Net income available to common stockholders		$	26,971			$	23,429			$	22,909			$	23,481			$	23,782
Amortization of intangibles, net of taxes			932				913				882				884				813
Total income available to common stockholders		$	27,903			$	24,342			$	23,791			$	24,365			$	24,595
Net non-core items, net of taxes			1,780				953				2,182				(296	)			2,131
Core earnings			28,751				24,382				25,091				23,185				25,913
Amortization of intangibles, net of taxes			932				913				882				884				813
Total core income available to common stockholders		$	29,683			$	25,295			$	25,973			$	24,069			$	26,726
Average common stockholders' equity		$	1,156,933			$	1,114,252			$	1,086,618			$	1,065,296			$	1,031,710
Average intangible assets:
Goodwill			(348,597	)			(332,893	)			(327,686	)			(327,686	)			(320,216	)
Other intangibles			(53,646	)			(50,893	)			(51,043	)			(52,498	)			(44,302	)
Total average intangibles			(402,243	)			(383,786	)			(378,729	)			(380,184	)			(364,518	)
Average tangible common stockholders' equity		$	754,690			$	730,466			$	707,889			$	685,112			$	667,192
Return on average common equity			9.27	%			8.36	%			8.48	%			8.87	%			9.15	%
Return on tangible common equity			14.71	%			13.26	%			13.52	%			14.30	%			14.62	%
Core return on average common equity			9.89	%			8.71	%			9.29	%			8.75	%			9.96	%
Core return on tangible common equity			15.65	%			13.78	%			14.76	%			14.13	%			15.89	%
Calculation of Efficiency Ratio (1)
Non-interest expense		$	66,725			$	62,434			$	64,137			$	61,789			$	67,806
Non-core non-interest expense adjustment			(2,995	)			(1,742	)			(3,591	)			(107	)			(3,506	)
Other real estate and foreclosure expense adjustment			(669	)			(1,787	)			(967	)			(966	)			(1,167	)
Amortization of intangibles adjustment			(1,533	)			(1,503	)			(1,451	)			(1,455	)			(1,337	)
Efficiency ratio numerator		$	61,528			$	57,402			$	58,128			$	59,261			$	61,796
Net-interest income		$	74,328			$	68,063			$	66,583			$	70,232			$	73,751
Non-interest income			36,115				36,876				36,888				29,503				28,649
Non-core non-interest income adjustment			(66	)			(175	)			-				(594	)			-
Fully tax-equivalent adjustment			1,994				1,969				1,675				2,084				2,185
(Gain) loss on sale of securities			(1,445	)			(315	)			(3,759	)			(329	)			(305	)
Efficiency ratio denominator		$	110,926			$	106,418			$	101,387			$	100,896			$	104,280
Efficiency ratio (1)			55.47	%			53.94	%			57.33	%			58.73	%			59.26	%
Calculation of Core Net Interest Margin
Net interest income		$	74,328			$	68,063			$	66,583			$	70,232			$	73,751
Fully tax-equivalent adjustment			1,994				1,969				1,675				2,084				2,185
Fully tax-equivalent net interest income			76,322				70,032				68,258				72,316				75,936
Total accretable yield			(6,552	)			(4,928	)			(4,700	)			(8,077	)			(11,076	)
Core net interest income		$	69,770			$	65,104			$	63,558			$	64,239			$	64,860
Average earning assets		$	7,373,236			$	6,825,019			$	6,625,642			$	6,597,389			$	6,652,486
Net interest margin			4.12	%			4.08	%			4.14	%			4.41	%			4.53	%
Core net interest margin			3.76	%			3.79	%			3.86	%			3.92	%			3.87	%
Calculation of Core Loan Yield
Loan interest income		$	70,887			$	65,078			$	63,009			$	66,678			$	70,511
Total accretable yield			(6,552	)			(4,928	)			(4,700	)			(8,077	)			(11,076	)
Core loan interest income		$	64,335			$	60,150			$	58,309			$	58,601			$	59,435
Average loan balance		$	5,484,918			$	5,105,474			$	4,957,888			$	4,889,685			$	4,868,283
Core loan yield			4.67	%			4.69	%			4.73	%			4.82	%			4.84	%

 

(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 non-core items.

 

Page 11 

Simmons First National Corporation																		SFNC
Reconciliation Of Non-GAAP Financial Measures - Year-to-Date
For the Quarters Ended
(Unaudited)		Dec 31				Sept 30				Jun 30				Mar 31				Dec 31
		2016				2016				2016				2016				2015
($ in thousands)
Calculation of Core Return on Average Assets
Net income available to common stockholders		$	96,790			$	69,819			$	46,390			$	23,481			$	74,107
Net non-core items, net of taxes, adjustment			4,619				2,839				1,886				(296	)			15,515
Core earnings		$	101,409			$	72,658			$	48,276			$	23,185			$	89,622
Average total assets		$	7,760,233			$	7,575,053			$	7,510,657			$	7,499,185			$	7,164,788
Return on average assets			1.25	%			1.23	%			1.24	%			1.26	%			1.03	%
Core return on average assets			1.31	%			1.28	%			1.29	%			1.24	%			1.25	%
Calculation of Return on Tangible Common Equity
Net income available to common stockholders		$	96,790			$	69,819			$	46,390			$	23,481			$	74,107
Amortization of intangibles, net of taxes			3,611				2,679				1,766				884				2,972
Total income available to common stockholders		$	100,401			$	72,498			$	48,156			$	24,365			$	77,079
Net non-core items, net of taxes			4,619				2,839				1,886				(296	)			15,515
Core earnings			101,409				72,658				48,276				23,185				89,622
Amortization of intangibles, net of taxes			3,611				2,679				1,766				884				2,972
Total core income available to common stockholders		$	105,020			$	75,337			$	50,042			$	24,069			$	92,594
Average common stockholders' equity		$	1,105,775			$	1,088,723			$	1,075,957			$	1,065,296			$	938,521
Average intangible assets:
Goodwill			(332,974	)			(329,422	)			(327,686	)			(327,686	)			(281,133	)
Other intangibles			(51,710	)			(51,478	)			(51,771	)			(52,498	)			(42,104	)
Total average intangibles			(384,684	)			(380,900	)			(379,457	)			(380,184	)			(323,237	)
Average tangible common stockholders' equity		$	721,091			$	707,823			$	696,500			$	685,112			$	615,284
Return on average common equity			8.75	%			8.57	%			8.67	%			8.87	%			7.90	%
Return on tangible common equity			13.92	%			13.68	%			13.90	%			14.30	%			12.53	%
Core return on average common equity			9.17	%			8.91	%			9.02	%			8.75	%			9.55	%
Core return on tangible common equity			14.56	%			14.22	%			14.45	%			14.13	%			15.05	%
Calculation of Efficiency Ratio (1)
Non-interest expense		$	255,085			$	188,360			$	125,931			$	61,789			$	256,970
Non-core non-interest expense adjustment			(8,435	)			(5,440	)			(3,698	)			(107	)			(18,747	)
Other real estate and foreclosure expense adjustment			(4,389	)			(3,720	)			(1,934	)			(966	)			(4,861	)
Amortization of intangibles adjustment			(5,942	)			(4,409	)			(2,906	)			(1,455	)			(4,889	)
Efficiency ratio numerator		$	236,319			$	174,791			$	117,393			$	59,261			$	228,473
Net-interest income		$	279,206			$	204,878			$	136,814			$	70,232			$	278,595
Non-interest income			139,382				103,267				66,397				29,503				94,661
Non-core non-interest income adjustment			(835	)			(769	)			(594	)			(594	)			5,731
Fully tax-equivalent adjustment			7,722				5,728				3,759				2,084				8,517
(Gain) loss on sale of securities			(5,848	)			(4,403	)			(4,088	)			(329	)			(307	)
Efficiency ratio denominator		$	419,627			$	308,701			$	202,288			$	100,896			$	387,197
Efficiency ratio (1)			56.32	%			56.62	%			58.03	%			58.73	%			59.01	%
Calculation of Core Net Interest Margin
Net interest income		$	279,206			$	204,878			$	136,814			$	70,232			$	278,595
Fully tax-equivalent adjustment			7,722				5,728				3,759				2,084				8,517
Fully tax-equivalent net interest income			286,928				210,606				140,573				72,316				287,112
Total accretable yield			(24,257	)			(17,705	)			(12,777	)			(8,077	)			(46,131	)
Core net interest income		$	262,671			$	192,901			$	127,796			$	64,239			$	240,981
Average earning assets		$	6,855,322			$	6,682,683			$	6,611,516			$	6,597,389			$	6,305,966
Net interest margin			4.19	%			4.21	%			4.28	%			4.41	%			4.55	%
Core net interest margin			3.83	%			3.86	%			3.89	%			3.92	%			3.82	%
Calculation of Core Loan Yield
Loan interest income		$	265,652			$	194,765			$	129,688			$	66,678			$	268,367
Total accretable yield			(24,257	)			(17,705	)			(12,777	)			(8,077	)			(46,131	)
Core loan interest income		$	241,395			$	177,060			$	116,911			$	58,601			$	222,236
Average loan balance		$	5,109,492			$	4,984,349			$	4,923,787			$	4,889,685			$	4,434,074
Core loan yield			4.72	%			4.75	%			4.77	%			4.82	%			5.01	%

 

(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 non-core items.

 

 Page 12 

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