Attached files
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| 8-K - FORM 8-K - SIMMONS FIRST NATIONAL CORP | f8k_071917.htm |
Exhibit 99.1
| For Immediate Release: | July 19, 2017 |
Simmons Reports 2017 Second Quarter Earnings
Pine Bluff, AR – Simmons First National Corp. (NASDAQ-GS: SFNC) today announced net income available to common shareholders of $23.1 million, or $0.72 per diluted share, for the quarter ended June 30, 2017, compared to $22.9 million, or $0.75 per diluted share, for the quarter ended June 30, 2016. Included in second quarter 2017 results were $3.7 million in net after-tax merger-related and branch right-sizing costs. Excluding the impact of these items, core earnings were $26.8 million, or $0.84 per diluted share, for the quarter ended June 30, 2017, compared to $25.1 million, or $0.82 per diluted share, for the quarter ended June 30, 2016. Year-to-date net income was $45.2 million, or $1.42 diluted core earnings per share. Excluding $4.1 million in net after-tax merger-related and branch right-sizing costs, year-to-date core earnings were $49.3 million, or $1.55 diluted core earnings per share.
On May 15, 2017, Simmons First National Corp. completed the acquisition of Hardeman County Investment Company, Inc., headquartered in Jackson, Tenn., including its wholly-owned bank subsidiary, First South Bank. The systems conversion will take place on September 5, 2017, at which time the First South Bank will be merged into Simmons Bank.
“We welcome our newest associates from the First South Bank merger into the Simmons family. We look forward to continued growth in our Tennessee markets,” said George A. Makris Jr., Chairman and CEO of Simmons First National Corp. “We are also very excited about our previously announced mergers with Southwest Bancorp, Inc. (Bank SNB) and First Texas BHC, Inc. (Southwest Bank) and the new and attractive markets they serve.”
“We had solid results in the second quarter. Our loan growth continues to be strong. We are experiencing some upward pressure on cost of funds which is currently prohibiting an expansion in the net interest margin. We continue to expand our risk management programs in anticipation of surpassing $10 billion in assets within the next few months. All-in-all, we feel we are well-prepared for continued growth both organically and through acquisitions,” Makris said.
| Selected Highlights: | 2nd Qtr 2017 | 1st Qtr 2017 | 2nd Qtr 2016 | |||
| Net income | $23.1 million | $22.1 million | $22.9 million | |||
| Diluted earnings per share | $.72 | $.70 | $.75 | |||
| Return on avg assets | 1.05% | 1.07% | 1.22% | |||
| Return on avg common equity | 7.65% | 7.69% | 8.48% | |||
| Return on tangible common equity | 12.13% | 12.22% | 13.52% | |||
| Net interest margin(1) | 4.04% | 4.04% | 4.14% | |||
| Core earnings(2) | $26.8 million | $22.5 million | $25.1 million | |||
| Diluted core earnings per share(2) | $.84 | $.71 | $.82 | |||
| Core return on avg assets(2) | 1.22% | 1.09% | 1.34% | |||
| Core return on avg common equity(2) | 8.87% | 7.83% | 9.29% | |||
| Core return on tangible common equity(2) | 13.99% | 12.44% | 14.76% | |||
| Core net interest margin(1)(2) | 3.79% | 3.80% | 3.86% | |||
| Efficiency ratio | 56.04% | 60.92% | 57.33% |
| (1) | Fully tax equivalent. |
| (2) | Core earnings excludes non-core items, which is a non-GAAP measurement. |
P.O. BOX 7009 501 MAIN STREET PINE BLUFF, ARKANSAS 71611-7009 (870) 541-1000 www.simmonsbank.com
Loans
Total loans, including those acquired, were $6.2 billion at June 30, 2017, an increase of $1.2 billion, or 24.2% from June 30, 2016. Legacy loans (all loans excluding acquired loans) were $5.0 billion at June 30, 2017, an increase of $1.3 billion, or 34.2% from June 30, 2016. Acquired loans were $1.2 billion at June 30, 2017, a decrease of $63.7 million, or 4.9% from June 30, 2016.
On a linked-quarter basis (June 30, 2017 compared to March 31, 2017), total loans increased $448 million, or 7.8%. The increase was due to:
| · | $253 million increase from loans acquired from the First South Bank acquisition |
| · | $26 million decrease in liquidating portfolio (indirect lending and consumer finance) |
| · | $35 million increase from participations purchased from Southwest Bank |
| · | $270 million in legacy loan growth (strong growth in Springfield, Northwest Arkansas, Kansas City, St. Louis and Little Rock) |
| · | $84 million decrease in the existing acquired loan portfolio due to migration (acquired to legacy), normal loan paydowns and loan sales |
Deposits
At June 30, 2017, total deposits were $7.1 billion, an increase of $1.1 billion, or 17.8%, compared with the same period in 2016. The majority of this increase is from deposits acquired in acquisitions. Total non-time deposits were $5.8 billion, an increase of $1.0 billion, or 20.1% compared to the same period in 2016, and comprised 82% of total deposits.
Net Interest Income
The Company’s net interest income for the second quarter of 2017 was $76.8 million, an increase of $10.2 million, or 15.4%, from the same period of 2016. Included in interest income was the yield accretion recognized on acquired loans of $4.8 million and $4.7 million for the second quarter of 2017 and 2016, respectively. Net interest margin was 4.04% for the quarter ended June 30, 2017, a 10 basis point decline from the same quarter of 2016. The Company’s core net interest margin, excluding the accretion, was 3.79% for the second quarter of 2017, a 7 basis point decline from June 30, 2016 and a 1 basis point decrease from March 31, 2017. Cost of interest bearing deposits were 0.36% for the second quarter of 2017, a 4 basis point increase from June 30, 2016 and a 3 basis point increase from March 31, 2017.
Provision for Loan Losses
Provision for loan losses for the second quarter of 2017 was $7.0 million, an increase of $2.4 million compared with June 30, 2016. The increase was a result of a provision of $714,000 for acquired loans due to a loan sale during the quarter and a provision due to much higher than expected loan growth during the quarter.
Non-Interest Income
Non-interest income for the second quarter was $35.7 million, a decrease of $1.1 million compared with the second quarter of 2016. The decrease was driven primarily by the net of the following:
| · | $835,000 decrease in mortgage revenue due to decline in demand in the industry. SBA revenue was flat compared to 2016, but increased $912,000 from the first quarter 2017. |
| · | $544,000 decrease in investment banking revenue, due to the exit from the institutional division of the broker dealer line of business in the third quarter of 2016. |
| · | $1.5 million decrease in gain on sale of securities. During the quarter, the Company sold approximate $150 million in securities to provide liquidity for the strong loan demand. The sale resulted in a $2.2 million pre-tax gain. |
| · | Trust income, service charges on deposits and debit card fees increased from organic growth and the impact from our recent acquisitions. |
Non-Interest Expense
Non-interest expense for the second quarter of 2017 was $71.4 million, an increase of $7.3 million compared to the second quarter of 2016. Included in this quarter were $6.7 million of merger-related expenses and branch rightsizing costs. Excluding these expenses, core non-interest expense was $64.7 million.
Included in the second quarter of 2017 expenses were operating expenses related to the additions of First South Bank which closed during the quarter and Citizens Bank which closed in September 2016. The increase in other operating expense was primarily driven by increased professional services. Professional services increased $1 million, which was primarily related to the continued preparations for crossing the $10 billion asset threshold. The efficiency ratio for the second quarter was 56.04%.
Asset Quality
All acquired loans are recorded at their discounted net present value; therefore, they are excluded from the computations of the asset quality ratios for the legacy loan portfolio, except for their inclusion in total assets.
At June 30, 2017, the allowance for loan losses for legacy loans was $41.4 million. The Company's allowance for loan losses on legacy loans at June 30, 2017 was 0.83% of total loans and 72% of non-performing loans. In the legacy portfolio, non-performing loans as a percent of total loans were 1.15%.
The allowance for loan losses for acquired loans was $391,000 and the acquired loan discount credit mark was $28.4 million. The allowances for loan losses and credit marks provide a total of $70.2 million of coverage, which equates to a total coverage ratio of 1.1% of gross loans. The ratio of credit mark and related allowance to acquired loans was 2.3%.
The 2017 annualized net charge-off ratio was 21 basis points. Excluding credit cards, the net charge-off ratio was 15 basis points.
Loan Sale
During the quarter, 35 classified loans were sold with a discounted principal balance of $13.8 million, which included $7.3 million of legacy loans and $6.5 million of acquired loans. The acquired loan portion of the sale resulted in a benefit of $1.4 million accretion income and a $714,000 increase in provision expense for acquired loans, resulting in a net benefit of approximately $700,000.
Capital
At June 30, 2017, common stockholders' equity was $1.2 billion, book value per share was $38.31 and tangible book value per share was $24.71. The Company's ratio of stockholders' equity to total assets was 13.6% and its ratio of tangible common equity to tangible assets was 9.2%. Regulatory tier 1 leverage ratio was 10.8% and regulatory total risk-based capital ratio was 13.7%.
Pending Acquisition Update
The Company previously announced the acquisition of Southwest Bancorp, Inc. (NASDAQ-GS: OKSB) in Stillwater, OK and First Texas BHC, Inc. in Ft. Worth, TX. The merger applications for these transactions were filed on July 14, 2017. Conversion and integration plans are in process. Subject to regulatory approval and the satisfaction of other closing conditions, the Company anticipates a closing date as early as October 2017 or as late as January 2018.
Simmons First National Corporation
Simmons First National Corp. is a financial holding company, headquartered in Pine Bluff, Ark., with total assets of $9.1 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. CDT on Thursday, July 20, 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 40252860. 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, changes in the assumptions used in making the forward-looking statements, and the Company’s ability to obtain regulatory approvals and meet other closing conditions associated with the above-described mergers and acquisitions 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:
DAVID W. GARNER
EVP and Investor Relations Officer
Simmons First National Corporation
(870) 541-1000
| Simmons First National Corporation | SFNC | |||||||||||||||||||
| Consolidated End of Period Balance Sheets | ||||||||||||||||||||
| For the Quarters Ended | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | |||||||||||||||
| (Unaudited) | 2017 | 2017 | 2016 | 2016 | 2016 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and non-interest bearing balances due from banks | $ | 127,600 | $ | 103,875 | $ | 117,007 | $ | 112,572 | $ | 96,037 | ||||||||||
| Interest bearing balances due from banks | 212,547 | 201,406 | 168,652 | 324,951 | 151,570 | |||||||||||||||
| Federal funds sold | 4,500 | - | - | 17,000 | 3,000 | |||||||||||||||
| Cash and cash equivalents | 344,647 | 305,281 | 285,659 | 454,523 | 250,607 | |||||||||||||||
| Interest bearing balances due from banks - time | 6,057 | 4,563 | 4,563 | 4,393 | 9,781 | |||||||||||||||
| Investment securities - held-to-maturity | 419,003 | 431,176 | 462,096 | 496,594 | 632,154 | |||||||||||||||
| Investment securities - available-for-sale | 1,190,600 | 1,257,813 | 1,157,354 | 1,024,206 | 821,372 | |||||||||||||||
| Mortgage loans held for sale | 16,266 | 9,754 | 27,788 | 28,069 | 30,529 | |||||||||||||||
| Assets held in trading accounts | 50 | 55 | 41 | 2,969 | 7,321 | |||||||||||||||
| Loans: | ||||||||||||||||||||
| Legacy loans | 5,000,572 | 4,632,905 | 4,327,207 | 3,943,089 | 3,725,422 | |||||||||||||||
| Allowance for loan losses | (41,379 | ) | (37,865 | ) | (36,286 | ) | (34,094 | ) | (33,523 | ) | ||||||||||
| Loans acquired, net of discount and allowance | 1,224,739 | 1,144,291 | 1,305,683 | 1,458,198 | 1,288,435 | |||||||||||||||
| Net loans | 6,183,932 | 5,739,331 | 5,596,604 | 5,367,193 | 4,980,334 | |||||||||||||||
| Premises and equipment | 230,641 | 221,880 | 199,359 | 192,523 | 183,362 | |||||||||||||||
| Premises held for sale | - | 4,611 | 6,052 | 6,732 | 6,167 | |||||||||||||||
| Foreclosed assets | 26,012 | 26,421 | 26,895 | 30,396 | 30,529 | |||||||||||||||
| Interest receivable | 27,337 | 26,089 | 27,788 | 27,390 | 24,150 | |||||||||||||||
| Bank owned life insurance | 148,134 | 139,439 | 138,620 | 138,298 | 130,943 | |||||||||||||||
| Goodwill | 379,437 | 350,035 | 348,505 | 348,769 | 327,686 | |||||||||||||||
| Other intangible assets | 58,528 | 51,408 | 52,959 | 54,268 | 50,329 | |||||||||||||||
| Other assets | 37,664 | 58,782 | 65,773 | 50,669 | 48,955 | |||||||||||||||
| Total assets | $ | 9,068,308 | $ | 8,626,638 | $ | 8,400,056 | $ | 8,226,992 | $ | 7,534,219 | ||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Non-interest bearing transaction accounts | $ | 1,650,986 | $ | 1,554,675 | $ | 1,491,676 | $ | 1,473,420 | $ | 1,283,426 | ||||||||||
| Interest bearing transaction accounts and savings deposits | 4,141,426 | 3,987,730 | 3,956,483 | 3,815,939 | 3,538,808 | |||||||||||||||
| Time deposits less than $100,000 | 645,855 | 653,538 | 686,780 | 653,105 | 643,081 | |||||||||||||||
| Time deposits greater than $100,000 | 665,268 | 592,345 | 600,280 | 674,917 | 562,888 | |||||||||||||||
| Total deposits | 7,103,535 | 6,788,288 | 6,735,219 | 6,617,381 | 6,028,203 | |||||||||||||||
| Federal funds purchased and securities sold | ||||||||||||||||||||
| under agreements to repurchase | 121,419 | 110,007 | 115,029 | 124,289 | 103,038 | |||||||||||||||
| Other borrowings | 474,962 | 441,074 | 273,159 | 215,276 | 191,827 | |||||||||||||||
| Subordinated debentures | 67,312 | 60,503 | 60,397 | 60,290 | 60,184 | |||||||||||||||
| Accrued interest and other liabilities | 67,004 | 55,877 | 65,141 | 62,615 | 60,256 | |||||||||||||||
| Total liabilities | 7,834,232 | 7,455,749 | 7,248,945 | 7,079,851 | 6,443,508 | |||||||||||||||
| Stockholders' equity: | ||||||||||||||||||||
| Common stock | 322 | 314 | 313 | 313 | 304 | |||||||||||||||
| Surplus | 714,435 | 716,564 | 711,976 | 710,132 | 668,306 | |||||||||||||||
| Undivided profits | 530,641 | 468,309 | 454,034 | 434,579 | 417,863 | |||||||||||||||
| Accumulated other comprehensive income (loss): | ||||||||||||||||||||
| Unrealized appreciation (depreciation) on AFS securities | (11,322 | ) | (14,298 | ) | (15,212 | ) | 2,117 | 4,238 | ||||||||||||
| Total stockholders' equity | 1,234,076 | 1,170,889 | 1,151,111 | 1,147,141 | 1,090,711 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 9,068,308 | $ | 8,626,638 | $ | 8,400,056 | $ | 8,226,992 | $ | 7,534,219 | ||||||||||
| Page 1 |
| Simmons First National Corporation | SFNC | |||||||||||||||||||
| Consolidated Statements of Income - Quarter-to-Date | ||||||||||||||||||||
| For the Quarters Ended | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | |||||||||||||||
| (Unaudited) | 2017 | 2017 | 2016 | 2016 | 2016 | |||||||||||||||
| ($ in thousands, except per share data) | ||||||||||||||||||||
| INTEREST INCOME | ||||||||||||||||||||
| Loans | $ | 73,549 | $ | 68,728 | $ | 70,887 | $ | 65,078 | $ | 63,009 | ||||||||||
| Federal funds sold | 13 | 1 | 11 | 19 | 17 | |||||||||||||||
| Investment securities | 9,990 | 9,451 | 8,700 | 7,774 | 8,499 | |||||||||||||||
| Mortgage loans held for sale | 145 | 126 | 230 | 299 | 295 | |||||||||||||||
| Assets held in trading accounts | - | - | 3 | 4 | 3 | |||||||||||||||
| Interest bearing balances due from banks | 201 | 121 | 234 | 244 | 77 | |||||||||||||||
| TOTAL INTEREST INCOME | 83,898 | 78,427 | 80,065 | 73,418 | 71,900 | |||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||
| Time deposits | 1,832 | 1,758 | 2,023 | 1,767 | 1,741 | |||||||||||||||
| Other deposits | 2,984 | 2,446 | 2,032 | 1,965 | 2,035 | |||||||||||||||
| Federal funds purchased and securities | ||||||||||||||||||||
| sold under agreements to repurchase | 92 | 75 | 90 | 59 | 59 | |||||||||||||||
| Other borrowings | 1,559 | 1,194 | 1,034 | 1,048 | 938 | |||||||||||||||
| Subordinated debentures | 619 | 574 | 558 | 516 | 544 | |||||||||||||||
| TOTAL INTEREST EXPENSE | 7,086 | 6,047 | 5,737 | 5,355 | 5,317 | |||||||||||||||
| NET INTEREST INCOME | 76,812 | 72,380 | 74,328 | 68,063 | 66,583 | |||||||||||||||
| Provision for loan losses | 7,023 | 4,307 | 4,332 | 8,294 | 4,616 | |||||||||||||||
| NET INTEREST INCOME AFTER PROVISION | ||||||||||||||||||||
| FOR LOAN LOSSES | 69,789 | 68,073 | 69,996 | 59,769 | 61,967 | |||||||||||||||
| NON-INTEREST INCOME | ||||||||||||||||||||
| Trust income | 4,113 | 4,212 | 4,282 | 3,873 | 3,656 | |||||||||||||||
| Service charges on deposit accounts | 8,483 | 8,102 | 8,666 | 8,771 | 7,661 | |||||||||||||||
| Other service charges and fees | 2,515 | 2,197 | 4,026 | 3,261 | 2,718 | |||||||||||||||
| Mortgage and SBA lending income | 3,961 | 2,423 | 4,580 | 4,339 | 4,730 | |||||||||||||||
| Investment banking income | 637 | 690 | 472 | 1,131 | 1,181 | |||||||||||||||
| Debit and credit card fees | 8,659 | 7,934 | 8,027 | 7,825 | 7,688 | |||||||||||||||
| Bank owned life insurance income | 859 | 818 | 895 | 606 | 826 | |||||||||||||||
| Gain on sale of securities, net | 2,236 | 63 | 1,445 | 315 | 3,759 | |||||||||||||||
| Other income | 4,281 | 3,621 | 3,722 | 6,755 | 4,669 | |||||||||||||||
| TOTAL NON-INTEREST INCOME | 35,744 | 30,060 | 36,115 | 36,876 | 36,888 | |||||||||||||||
| NON-INTEREST EXPENSE | ||||||||||||||||||||
| Salaries and employee benefits | 34,205 | 35,536 | 33,797 | 31,784 | 33,103 | |||||||||||||||
| Occupancy expense, net | 4,868 | 4,663 | 4,516 | 4,690 | 4,990 | |||||||||||||||
| Furniture and equipment expense | 4,550 | 4,443 | 4,387 | 4,272 | 4,077 | |||||||||||||||
| Other real estate and foreclosure expense | 517 | 589 | 679 | 1,849 | 967 | |||||||||||||||
| Deposit insurance | 780 | 680 | 89 | 1,136 | 1,096 | |||||||||||||||
| Merger-related costs | 6,603 | 524 | 2,846 | 1,524 | 372 | |||||||||||||||
| Other operating expenses | 19,885 | 19,887 | 20,411 | 17,179 | 19,532 | |||||||||||||||
| TOTAL NON-INTEREST EXPENSE | 71,408 | 66,322 | 66,725 | 62,434 | 64,137 | |||||||||||||||
| NET INCOME BEFORE INCOME TAXES | 34,125 | 31,811 | 39,386 | 34,211 | 34,718 | |||||||||||||||
| Provision for income taxes | 11,060 | 9,691 | 12,415 | 10,782 | 11,809 | |||||||||||||||
| NET INCOME | $ | 23,065 | $ | 22,120 | $ | 26,971 | $ | 23,429 | $ | 22,909 | ||||||||||
| BASIC EARNINGS PER SHARE | $ | 0.72 | $ | 0.71 | $ | 0.86 | $ | 0.77 | $ | 0.75 | ||||||||||
| DILUTED EARNINGS PER SHARE | $ | 0.72 | $ | 0.70 | $ | 0.85 | $ | 0.76 | $ | 0.75 | ||||||||||
| Page 2 |
| Simmons First National Corporation | SFNC | |||||||||||||||||||
| Consolidated Risk-Based Capital | ||||||||||||||||||||
| For the Quarters Ended | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | |||||||||||||||
| (Unaudited) | 2017 | 2017 | 2016 | 2016 | 2016 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||||||
| Tier 1 capital | ||||||||||||||||||||
| Stockholders' equity | $ | 1,234,076 | $ | 1,170,889 | $ | 1,151,111 | $ | 1,147,141 | $ | 1,090,711 | ||||||||||
| Trust preferred securities, net allowable | 67,312 | 60,503 | 60,397 | 60,290 | 60,184 | |||||||||||||||
| Disallowed intangible assets, net of deferred tax | (406,990 | ) | (361,944 | ) | (354,028 | ) | (354,582 | ) | (334,395 | ) | ||||||||||
| Unrealized loss (gain) on AFS securities | 11,322 | 14,298 | 15,212 | (2,117 | ) | (4,238 | ) | |||||||||||||
| Other | - | - | 15 | - | - | |||||||||||||||
| Total Tier 1 capital | 905,720 | 883,746 | 872,707 | 850,732 | 812,262 | |||||||||||||||
| Tier 2 capital | ||||||||||||||||||||
| Qualifying unrealized gain on AFS equity securities | 1 | 2 | - | - | - | |||||||||||||||
| Qualifying allowance for loan losses and | ||||||||||||||||||||
| reserve for unfunded commitments | 45,369 | 41,303 | 40,241 | 38,050 | 37,240 | |||||||||||||||
| Total Tier 2 capital | 45,370 | 41,305 | 40,241 | 38,050 | 37,240 | |||||||||||||||
| Total risk-based capital | $ | 951,090 | $ | 925,051 | $ | 912,948 | $ | 888,782 | $ | 849,502 | ||||||||||
| Common equity | ||||||||||||||||||||
| Tier 1 capital | $ | 905,720 | $ | 883,746 | $ | 872,707 | $ | 850,732 | $ | 812,262 | ||||||||||
| Less: Trust preferred securities | (67,312 | ) | (60,503 | ) | (60,397 | ) | (60,290 | ) | (60,184 | ) | ||||||||||
| Total common equity | $ | 838,408 | $ | 823,243 | $ | 812,310 | $ | 790,442 | $ | 752,078 | ||||||||||
| Risk weighted assets | $ | 6,925,727 | $ | 6,425,150 | $ | 6,039,034 | $ | 5,724,052 | $ | 5,343,355 | ||||||||||
| Adjusted average assets for leverage ratio | $ | 8,424,763 | $ | 8,076,525 | $ | 7,966,681 | $ | 7,355,702 | $ | 7,185,633 | ||||||||||
| Ratios at end of quarter | ||||||||||||||||||||
| Equity to assets | 13.61 | % | 13.57 | % | 13.70 | % | 13.94 | % | 14.48 | % | ||||||||||
| Tangible common equity to tangible assets (1) | 9.22 | % | 9.35 | % | 9.37 | % | 9.51 | % | 9.96 | % | ||||||||||
| Common equity Tier 1 ratio (CET1) | 12.11 | % | 12.81 | % | 13.45 | % | 13.81 | % | 14.08 | % | ||||||||||
| Tier 1 leverage ratio | 10.75 | % | 10.94 | % | 10.95 | % | 11.57 | % | 11.30 | % | ||||||||||
| Tier 1 risk-based capital ratio | 13.08 | % | 13.75 | % | 14.45 | % | 14.86 | % | 15.20 | % | ||||||||||
| Total risk-based capital ratio | 13.73 | % | 14.40 | % | 15.12 | % | 15.53 | % | 15.90 | % | ||||||||||
(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 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | |||||||||||||||
| (Unaudited) | 2017 | 2017 | 2016 | 2016 | 2016 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||||||
| Legacy Loan Portfolio - End of Period (1) | ||||||||||||||||||||
| Consumer | ||||||||||||||||||||
| Credit cards | $ | 176,953 | $ | 171,947 | $ | 184,591 | $ | 175,032 | $ | 171,468 | ||||||||||
| Other consumer | 366,136 | 349,200 | 303,972 | 275,947 | 248,018 | |||||||||||||||
| Total consumer | 543,089 | 521,147 | 488,563 | 450,979 | 419,486 | |||||||||||||||
| Real Estate | ||||||||||||||||||||
| Construction | 457,896 | 365,051 | 336,759 | 304,082 | 330,666 | |||||||||||||||
| Single-family residential | 1,014,412 | 957,717 | 904,245 | 841,958 | 785,289 | |||||||||||||||
| Other commercial | 2,089,707 | 1,959,677 | 1,787,075 | 1,521,132 | 1,414,663 | |||||||||||||||
| Total real estate | 3,562,015 | 3,282,445 | 3,028,079 | 2,667,172 | 2,530,618 | |||||||||||||||
| Commercial | ||||||||||||||||||||
| Commercial | 678,932 | 657,606 | 639,525 | 607,738 | 577,771 | |||||||||||||||
| Agricultural | 191,345 | 141,125 | 150,378 | 203,529 | 187,047 | |||||||||||||||
| Total commercial | 870,277 | 798,731 | 789,903 | 811,267 | 764,818 | |||||||||||||||
| Other | 25,191 | 30,582 | 20,662 | 13,671 | 10,500 | |||||||||||||||
| Total Loans | $ | 5,000,572 | $ | 4,632,905 | $ | 4,327,207 | $ | 3,943,089 | $ | 3,725,422 | ||||||||||
| (1) Excludes all acquired loans. | ||||||||||||||||||||
| Investment Securities - End of Period | ||||||||||||||||||||
| Held-to-Maturity | ||||||||||||||||||||
| U.S. Government agencies | $ | 67,912 | $ | 68,895 | $ | 76,875 | $ | 80,849 | $ | 199,505 | ||||||||||
| Mortgage-backed securities | 17,882 | 18,743 | 19,773 | 21,454 | 22,612 | |||||||||||||||
| State and political subdivisions | 331,249 | 341,854 | 362,532 | 391,495 | 407,273 | |||||||||||||||
| Other securities | 1,960 | 1,684 | 2,916 | 2,796 | 2,765 | |||||||||||||||
| Total held-to-maturity | 419,003 | 431,176 | 462,096 | 496,594 | 632,155 | |||||||||||||||
| Available-for-Sale | ||||||||||||||||||||
| U.S. Treasury | $ | 19,997 | $ | - | $ | 300 | $ | 63,985 | $ | 4,305 | ||||||||||
| U.S. Government agencies | 147,619 | 142,356 | 137,771 | 148,781 | 58,113 | |||||||||||||||
| Mortgage-backed securities | 878,205 | 927,277 | 868,324 | 699,748 | 652,425 | |||||||||||||||
| State and political subdivisions | 83,672 | 130,747 | 102,943 | 67,019 | 64,836 | |||||||||||||||
| FHLB stock | 21,772 | 19,149 | 12,235 | 11,235 | 8,781 | |||||||||||||||
| Other securities | 39,335 | 38,285 | 35,781 | 33,438 | 32,911 | |||||||||||||||
| Total available-for-sale | 1,190,600 | 1,257,814 | 1,157,354 | 1,024,206 | 821,371 | |||||||||||||||
| Total investment securities | $ | 1,609,603 | $ | 1,688,990 | $ | 1,619,450 | $ | 1,520,800 | $ | 1,453,526 | ||||||||||
| Fair value - HTM investment securities | $ | 425,263 | $ | 435,701 | $ | 465,960 | $ | 508,910 | $ | 647,293 | ||||||||||
| Investment Securities - QTD Average | ||||||||||||||||||||
| Taxable securities | $ | 1,244,071 | $ | 1,185,794 | $ | 1,146,703 | $ | 963,150 | $ | 1,059,802 | ||||||||||
| Tax exempt securities | 467,420 | 455,481 | 467,757 | 466,782 | 443,492 | |||||||||||||||
| Total investment securities - QTD average | $ | 1,711,491 | $ | 1,641,275 | $ | 1,614,460 | $ | 1,429,932 | $ | 1,503,294 | ||||||||||
| Page 4 |
| Simmons First National Corporation | SFNC | |||||||||||||||||||
| Consolidated Loans and Credit Coverage | ||||||||||||||||||||
| For the Quarters Ended | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | |||||||||||||||
| (Unaudited) | 2017 | 2017 | 2016 | 2016 | 2016 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||||||
| LOANS | ||||||||||||||||||||
| Legacy loans | $ | 5,000,572 | $ | 4,632,905 | $ | 4,327,207 | $ | 3,943,089 | $ | 3,725,422 | ||||||||||
| Allowance for loan losses (legacy loans) | (41,379 | ) | (37,865 | ) | (36,286 | ) | (34,094 | ) | (33,523 | ) | ||||||||||
| Legacy loans (net of allowance) | 4,959,193 | 4,595,040 | 4,290,921 | 3,908,995 | 3,691,899 | |||||||||||||||
| Loans acquired | 1,253,539 | 1,173,667 | 1,342,099 | 1,502,051 | 1,327,683 | |||||||||||||||
| Credit discount | (28,409 | ) | (28,941 | ) | (35,462 | ) | (42,899 | ) | (38,294 | ) | ||||||||||
| Allowance for loan losses (loans acquired) | (391 | ) | (435 | ) | (954 | ) | (954 | ) | (954 | ) | ||||||||||
| Loans acquired (net of discount and allowance) | 1,224,739 | 1,144,291 | 1,305,683 | 1,458,198 | 1,288,435 | |||||||||||||||
| Net loans | $ | 6,183,932 | $ | 5,739,331 | $ | 5,596,604 | $ | 5,367,193 | $ | 4,980,334 | ||||||||||
| Loan Coverage Ratios | ||||||||||||||||||||
| Allowance for loan losses to legacy loans | 0.83 | % | 0.82 | % | 0.84 | % | 0.86 | % | 0.90 | % | ||||||||||
| 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) | 2.30 | % | 2.50 | % | 2.71 | % | 2.92 | % | 2.96 | % | ||||||||||
| Total allowance and credit coverage (non-GAAP) (1) | 1.12 | % | 1.16 | % | 1.28 | % | 1.43 | % | 1.44 | % | ||||||||||
(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 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | |||||||||||||||
| (Unaudited) | 2017 | 2017 | 2016 | 2016 | 2016 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||||||
| Allowance for Loan Losses (Legacy Loans) | ||||||||||||||||||||
| Balance, beginning of quarter | $ | 37,865 | $ | 36,286 | $ | 34,094 | $ | 33,523 | $ | 32,681 | ||||||||||
| Loans charged off | ||||||||||||||||||||
| Credit cards | 901 | 1,044 | 935 | 699 | 702 | |||||||||||||||
| Other consumer | 993 | 1,174 | 493 | 600 | 489 | |||||||||||||||
| Real estate | 1,712 | 656 | 167 | 6,297 | 824 | |||||||||||||||
| Commercial | 349 | 292 | 913 | 284 | 2,283 | |||||||||||||||
| Total loans charged off | 3,955 | 3,166 | 2,508 | 7,880 | 4,298 | |||||||||||||||
| Recoveries of loans previously charged off | ||||||||||||||||||||
| Credit cards | 277 | 236 | 213 | 199 | 253 | |||||||||||||||
| Other consumer | 636 | 690 | 158 | 106 | 149 | |||||||||||||||
| Real estate | 216 | 232 | 73 | 55 | 111 | |||||||||||||||
| Commercial | 32 | 30 | 28 | 12 | 318 | |||||||||||||||
| Total recoveries | 1,161 | 1,188 | 472 | 372 | 831 | |||||||||||||||
| Net loans charged off | 2,794 | 1,978 | 2,036 | 7,508 | 3,467 | |||||||||||||||
| Provision for loan losses | 6,308 | 3,557 | 4,228 | 8,079 | 4,309 | |||||||||||||||
| Balance, end of quarter | $ | 41,379 | $ | 37,865 | $ | 36,286 | $ | 34,094 | $ | 33,523 | ||||||||||
| Non-performing assets (1) (2) | ||||||||||||||||||||
| Non-performing loans | ||||||||||||||||||||
| Nonaccrual loans | 57,127 | 52,913 | 39,104 | 37,392 | 43,305 | |||||||||||||||
| Loans past due 90 days or more | 281 | 231 | 299 | 144 | 227 | |||||||||||||||
| Total non-performing loans | 57,408 | 53,144 | 39,403 | 37,536 | 43,532 | |||||||||||||||
| Other non-performing assets | ||||||||||||||||||||
| Foreclosed assets held for sale (2) | 26,012 | 26,421 | 26,895 | 30,396 | 30,529 | |||||||||||||||
| Other non-performing assets | 485 | 352 | 471 | 621 | 519 | |||||||||||||||
| Total other non-performing assets | 26,497 | 26,773 | 27,366 | 31,017 | 31,048 | |||||||||||||||
| Total non-performing assets | $ | 83,905 | $ | 79,917 | $ | 66,769 | $ | 68,553 | $ | 74,580 | ||||||||||
| Performing TDRs (troubled debt restructurings) | $ | 8,794 | $ | 10,833 | $ | 10,998 | $ | 13,604 | $ | 10,887 | ||||||||||
| Ratios (1) (2) | ||||||||||||||||||||
| Allowance for loan losses to total loans | 0.83 | % | 0.82 | % | 0.84 | % | 0.86 | % | 0.90 | % | ||||||||||
| Allowance for loan losses to non-performing loans | 72 | % | 71 | % | 92 | % | 91 | % | 77 | % | ||||||||||
| Non-performing loans to total loans | 1.15 | % | 1.15 | % | 0.91 | % | 0.95 | % | 1.17 | % | ||||||||||
| Non-performing assets (including performing TDRs) | ||||||||||||||||||||
| to total assets | 1.02 | % | 1.05 | % | 0.93 | % | 1.00 | % | 1.13 | % | ||||||||||
| Non-performing assets to total assets | 0.93 | % | 0.93 | % | 0.79 | % | 0.83 | % | 0.99 | % | ||||||||||
| Annualized net charge offs to total loans | 0.23 | % | 0.18 | % | 0.20 | % | 0.82 | % | 0.39 | % | ||||||||||
| Annualized net credit card charge offs to | ||||||||||||||||||||
| total credit card loans | 1.42 | % | 1.84 | % | 1.66 | % | 1.14 | % | 1.07 | % | ||||||||||
| Annualized net charge offs to total loans | ||||||||||||||||||||
| (excluding credit cards) | 0.19 | % | 0.11 | % | 0.14 | % | 0.81 | % | 0.36 | % | ||||||||||
(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 Jun 2017 | Three
Months Ended Mar 2017 | Three
Months Ended Jun 2016 | ||||||||||||||||||||||||||||||||||
| ($ 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 | $ | 160,318 | $ | 201 | 0.50 | % | $ | 131,079 | $ | 121 | 0.37 | % | $ | 126,114 | $ | 77 | 0.25 | % | ||||||||||||||||||
| Federal funds sold | 3,078 | 13 | 1.69 | % | 249 | 1 | 1.63 | % | 2,570 | 17 | 2.66 | % | ||||||||||||||||||||||||
| Investment securities - taxable | 1,374,261 | 6,874 | 2.01 | % | 1,292,441 | 6,477 | 2.03 | % | 1,087,179 | 5,939 | 2.20 | % | ||||||||||||||||||||||||
| Investment securities - non-taxable (FTE) | 337,230 | 5,118 | 6.09 | % | 348,834 | 4,884 | 5.68 | % | 416,115 | 4,203 | 4.06 | % | ||||||||||||||||||||||||
| Mortgage loans held for sale | 12,250 | 145 | 4.75 | % | 11,473 | 126 | 4.45 | % | 28,844 | 295 | 4.11 | % | ||||||||||||||||||||||||
| Assets held in trading accounts | 52 | - | 0.00 | % | 48 | - | 0.00 | % | 6,932 | 3 | 0.17 | % | ||||||||||||||||||||||||
| Loans, including acquired loans | 5,954,019 | 73,629 | 4.96 | % | 5,685,585 | 68,783 | 4.91 | % | 4,957,888 | 63,041 | 5.11 | % | ||||||||||||||||||||||||
| Total interest earning assets (FTE) | 7,841,208 | 85,980 | 4.40 | % | 7,469,709 | 80,392 | 4.36 | % | 6,625,642 | 73,575 | 4.47 | % | ||||||||||||||||||||||||
| Non-earning assets | 971,252 | 944,761 | 896,491 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 8,812,460 | $ | 8,414,470 | $ | 7,522,133 | ||||||||||||||||||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||||||
| Interest bearing liabilities: | ||||||||||||||||||||||||||||||||||||
| Interest bearing transaction and savings accounts | $ | 4,069,179 | $ | 2,984 | 0.29 | % | $ | 3,950,169 | $ | 2,446 | 0.25 | % | $ | 3,526,278 | $ | 2,035 | 0.23 | % | ||||||||||||||||||
| Time deposits | 1,277,336 | 1,832 | 0.58 | % | 1,262,430 | 1,758 | 0.56 | % | 1,242,805 | 1,741 | 0.56 | % | ||||||||||||||||||||||||
| Total interest bearing deposits | 5,346,515 | 4,816 | 0.36 | % | 5,212,599 | 4,204 | 0.33 | % | 4,769,083 | 3,776 | 0.32 | % | ||||||||||||||||||||||||
| Federal funds purchased and securities sold under agreement to repurchase | 115,101 | 92 | 0.32 | % | 111,474 | 75 | 0.27 | % | 104,668 | 59 | 0.23 | % | ||||||||||||||||||||||||
| Other borrowings | 434,584 | 1,559 | 1.44 | % | 345,664 | 1,194 | 1.40 | % | 172,268 | 938 | 2.19 | % | ||||||||||||||||||||||||
| Subordinated debentures | 64,019 | 619 | 3.88 | % | 60,452 | 574 | 3.85 | % | 60,132 | 544 | 3.64 | % | ||||||||||||||||||||||||
| Total interest bearing liabilities | 5,960,219 | 7,086 | 0.48 | % | 5,730,189 | 6,047 | 0.43 | % | 5,106,151 | 5,317 | 0.42 | % | ||||||||||||||||||||||||
| Non-interest bearing liabilities: | ||||||||||||||||||||||||||||||||||||
| Non-interest bearing deposits | 1,597,550 | 1,466,501 | 1,271,878 | |||||||||||||||||||||||||||||||||
| Other liabilities | 45,348 | 51,307 | 57,486 | |||||||||||||||||||||||||||||||||
| Total liabilities | 7,603,117 | 7,247,997 | 6,435,515 | |||||||||||||||||||||||||||||||||
| Stockholders' equity | 1,209,343 | 1,166,473 | 1,086,618 | |||||||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 8,812,460 | $ | 8,414,470 | $ | 7,522,133 | ||||||||||||||||||||||||||||||
| Net interest income (FTE) | $ | 78,894 | $ | 74,345 | $ | 68,258 | ||||||||||||||||||||||||||||||
| Net interest spread (FTE) | 3.92 | % | 3.93 | % | 4.05 | % | ||||||||||||||||||||||||||||||
| Net interest margin (FTE) - quarter-to-date | 4.04 | % | 4.04 | % | 4.14 | % | ||||||||||||||||||||||||||||||
| Net interest margin (FTE) - year-to-date | 4.04 | % | 4.04 | % | 4.28 | % | ||||||||||||||||||||||||||||||
| Core net interest margin (FTE) - quarter-to-date (1) | 3.79 | % | 3.80 | % | 3.86 | % | ||||||||||||||||||||||||||||||
| Core loan yield (FTE) - quarter-to-date (1) | 4.63 | % | 4.59 | % | 4.73 | % | ||||||||||||||||||||||||||||||
| Core net interest margin (FTE) - year-to-date (1) | 3.79 | % | 3.80 | % | 3.89 | % | ||||||||||||||||||||||||||||||
| Core loan yield (FTE) - year-to-date (1) | 4.61 | % | 4.59 | % | 4.77 | % | ||||||||||||||||||||||||||||||
(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 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | |||||||||||||||
| (Unaudited) | 2017 | 2017 | 2016 | 2016 | 2016 | |||||||||||||||
| ($ in thousands, except share data) | ||||||||||||||||||||
| QUARTER-TO-DATE | ||||||||||||||||||||
| Financial Highlights - GAAP | ||||||||||||||||||||
| Net Income | $ | 23,065 | $ | 22,120 | $ | 26,971 | $ | 23,429 | $ | 22,909 | ||||||||||
| Diluted earnings per share | 0.72 | 0.70 | 0.85 | 0.76 | 0.75 | |||||||||||||||
| Return on average assets | 1.05 | % | 1.07 | % | 1.29 | % | 1.21 | % | 1.22 | % | ||||||||||
| Return on average common equity | 7.65 | % | 7.69 | % | 9.27 | % | 8.36 | % | 8.48 | % | ||||||||||
| Return on tangible common equity | 12.13 | % | 12.22 | % | 14.71 | % | 13.26 | % | 13.52 | % | ||||||||||
| Net interest margin (FTE) | 4.04 | % | 4.04 | % | 4.12 | % | 4.08 | % | 4.14 | % | ||||||||||
| FTE adjustment | 2,082 | 1,965 | 1,994 | 1,969 | 1,675 | |||||||||||||||
| Amortization of intangibles | 1,553 | 1,550 | 1,533 | 1,503 | 1,451 | |||||||||||||||
| Amortization of intangibles, net of taxes | 944 | 942 | 932 | 913 | 882 | |||||||||||||||
| Average diluted shares outstanding | 32,025,780 | 31,612,900 | 31,592,713 | 30,843,714 | 30,452,285 | |||||||||||||||
| Cash dividends declared per common share | 0.25 | 0.25 | 0.24 | 0.24 | 0.24 | |||||||||||||||
| Financial Highlights - Core (non-GAAP) | ||||||||||||||||||||
| Core earnings (excludes non-core items) (1) | $ | 26,753 | $ | 22,532 | $ | 28,751 | $ | 24,382 | $ | 25,091 | ||||||||||
| Diluted core earnings per share (1) | 0.84 | 0.71 | 0.91 | 0.79 | 0.82 | |||||||||||||||
| Core net interest margin (FTE) (2) | 3.79 | % | 3.80 | % | 3.76 | % | 3.79 | % | 3.86 | % | ||||||||||
| Accretable yield on acquired loans | 4,792 | 4,427 | 6,552 | 4,928 | 4,700 | |||||||||||||||
| Efficiency ratio (1) | 56.04 | % | 60.92 | % | 55.47 | % | 53.94 | % | 57.33 | % | ||||||||||
| Core return on average assets (1) | 1.22 | % | 1.09 | % | 1.38 | % | 1.26 | % | 1.34 | % | ||||||||||
| Core return on average common equity (1) | 8.87 | % | 7.83 | % | 9.89 | % | 8.71 | % | 9.29 | % | ||||||||||
| Core return on tangible common equity (1) | 13.99 | % | 12.44 | % | 15.65 | % | 13.78 | % | 14.76 | % | ||||||||||
| YEAR-TO-DATE | ||||||||||||||||||||
| Financial Highlights - GAAP | ||||||||||||||||||||
| Net Income | $ | 45,185 | $ | 22,120 | $ | 96,790 | $ | 69,819 | $ | 46,390 | ||||||||||
| Diluted earnings per share | 1.42 | 0.70 | 3.13 | 2.28 | 1.52 | |||||||||||||||
| Return on average assets | 1.06 | % | 1.07 | % | 1.25 | % | 1.23 | % | 1.24 | % | ||||||||||
| Return on average common equity | 7.67 | % | 7.69 | % | 8.75 | % | 8.57 | % | 8.67 | % | ||||||||||
| Return on tangible common equity | 12.17 | % | 12.22 | % | 13.92 | % | 13.68 | % | 13.90 | % | ||||||||||
| Net interest margin (FTE) | 4.04 | % | 4.04 | % | 4.19 | % | 4.21 | % | 4.28 | % | ||||||||||
| FTE adjustment | 4,047 | 1,965 | 7,722 | 5,728 | 3,759 | |||||||||||||||
| Amortization of intangibles | 3,103 | 1,550 | 5,942 | 4,409 | 2,906 | |||||||||||||||
| Amortization of intangibles, net of taxes | 1,886 | 942 | 3,611 | 2,679 | 1,766 | |||||||||||||||
| Average diluted shares outstanding | 31,794,363 | 31,612,900 | 30,963,546 | 30,656,882 | 30,438,939 | |||||||||||||||
| Cash dividends declared per common share | 0.50 | 0.25 | 0.96 | 0.72 | 0.48 | |||||||||||||||
| Financial Highlights - Core (non-GAAP) | ||||||||||||||||||||
| Core earnings (excludes non-core items) (1) | $ | 49,285 | $ | 22,532 | $ | 101,409 | $ | 72,658 | $ | 48,276 | ||||||||||
| Diluted core earnings per share (1) | 1.55 | 0.71 | 3.28 | 2.37 | 1.59 | |||||||||||||||
| Core net interest margin (FTE) (2) | 3.79 | % | 3.80 | % | 3.83 | % | 3.86 | % | 3.89 | % | ||||||||||
| Accretable yield on acquired loans | 9,219 | 4,427 | 24,257 | 17,705 | 12,777 | |||||||||||||||
| Efficiency ratio (1) | 58.40 | % | 60.92 | % | 56.32 | % | 56.62 | % | 58.03 | % | ||||||||||
| Core return on average assets (1) | 1.15 | % | 1.09 | % | 1.31 | % | 1.28 | % | 1.29 | % | ||||||||||
| Core return on average common equity (1) | 8.37 | % | 7.83 | % | 9.17 | % | 8.91 | % | 9.02 | % | ||||||||||
| Core return on tangible common equity (1) | 13.23 | % | 12.44 | % | 14.56 | % | 14.22 | % | 14.45 | % | ||||||||||
| END OF PERIOD | ||||||||||||||||||||
| Book value per share | $ | 38.31 | $ | 37.30 | $ | 36.80 | $ | 36.69 | $ | 35.86 | ||||||||||
| Tangible book value per share | 24.71 | 24.51 | 23.97 | 23.80 | 23.43 | |||||||||||||||
| Shares outstanding | 32,212,832 | 31,388,357 | 31,277,723 | 31,267,614 | 30,415,980 | |||||||||||||||
| Full-time equivalent employees | 1,919 | 1,876 | 1,875 | 1,985 | 1,880 | |||||||||||||||
| Total number of ATM's | 197 | 187 | 186 | 186 | 174 | |||||||||||||||
| Total number of financial centers | 161 | 151 | 150 | 150 | 140 | |||||||||||||||
(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 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | |||||||||||||||
| (Unaudited) | 2017 | 2017 | 2016 | 2016 | 2016 | |||||||||||||||
| ($ in thousands, except per share data) | ||||||||||||||||||||
| QUARTER-TO-DATE | ||||||||||||||||||||
| Net Income | $ | 23,065 | $ | 22,120 | $ | 26,971 | $ | 23,429 | $ | 22,909 | ||||||||||
| Non-core items | ||||||||||||||||||||
| Merger-related costs | 6,603 | 524 | 2,846 | 1,524 | 372 | |||||||||||||||
| Branch right-sizing | (536 | ) | 154 | 83 | 43 | 3,219 | ||||||||||||||
| Tax effect (1) | (2,379 | ) | (266 | ) | (1,149 | ) | (614 | ) | (1,409 | ) | ||||||||||
| Net non-core items | 3,688 | 412 | 1,780 | 953 | 2,182 | |||||||||||||||
| Core earnings (non-GAAP) | $ | 26,753 | $ | 22,532 | $ | 28,751 | $ | 24,382 | $ | 25,091 | ||||||||||
| Diluted earnings per share | $ | 0.72 | $ | 0.70 | $ | 0.85 | $ | 0.76 | $ | 0.75 | ||||||||||
| Non-core items | ||||||||||||||||||||
| Merger-related costs | 0.21 | 0.02 | 0.09 | 0.05 | 0.01 | |||||||||||||||
| Branch right-sizing | (0.02 | ) | - | - | - | 0.11 | ||||||||||||||
| Tax effect (1) | (0.07 | ) | (0.01 | ) | (0.03 | ) | (0.02 | ) | (0.05 | ) | ||||||||||
| Net non-core items | 0.12 | 0.01 | 0.06 | 0.03 | 0.07 | |||||||||||||||
| Core earnings (non-GAAP) | $ | 0.84 | $ | 0.71 | $ | 0.91 | $ | 0.79 | $ | 0.82 | ||||||||||
| YEAR-TO-DATE | ||||||||||||||||||||
| Net Income | $ | 45,185 | $ | 22,120 | $ | 96,790 | $ | 69,819 | $ | 46,390 | ||||||||||
| Non-core items | ||||||||||||||||||||
| Gain from early retirement of trust preferred securities | - | - | (594 | ) | (594 | ) | (594 | ) | ||||||||||||
| Merger-related costs | 7,127 | 524 | 4,835 | 1,989 | 465 | |||||||||||||||
| Branch right-sizing | (382 | ) | 154 | 3,359 | 3,276 | 3,233 | ||||||||||||||
| Tax effect (1) | (2,645 | ) | (266 | ) | (2,981 | ) | (1,832 | ) | (1,218 | ) | ||||||||||
| Net non-core items | 4,100 | 412 | 4,619 | 2,839 | 1,886 | |||||||||||||||
| Core earnings (non-GAAP) | $ | 49,285 | $ | 22,532 | $ | 101,409 | $ | 72,658 | $ | 48,276 | ||||||||||
| Diluted earnings per share | $ | 1.42 | $ | 0.70 | $ | 3.13 | $ | 2.28 | $ | 1.52 | ||||||||||
| Non-core items | ||||||||||||||||||||
| Gain from early retirement of trust preferred securities | - | - | (0.02 | ) | (0.02 | ) | (0.02 | ) | ||||||||||||
| Merger-related costs | 0.22 | 0.02 | 0.16 | 0.06 | 0.02 | |||||||||||||||
| Branch right-sizing | (0.01 | ) | - | 0.11 | 0.11 | 0.11 | ||||||||||||||
| Tax effect (1) | (0.08 | ) | (0.01 | ) | (0.10 | ) | (0.06 | ) | (0.04 | ) | ||||||||||
| Net non-core items | 0.13 | 0.01 | 0.15 | 0.09 | 0.07 | |||||||||||||||
| Core earnings (non-GAAP) | $ | 1.55 | $ | 0.71 | $ | 3.28 | $ | 2.37 | $ | 1.59 | ||||||||||
(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) | Jun 30 | Mar 31 | Dec 31 | Sept 30 | Jun 30 | |||||||||||||||
| 2017 | 2017 | 2016 | 2016 | 2016 | ||||||||||||||||
| ($ in thousands, except per share data) | ||||||||||||||||||||
| Calculation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets | ||||||||||||||||||||
| Total common stockholders' equity | $ | 1,234,076 | $ | 1,170,889 | $ | 1,151,111 | $ | 1,147,141 | $ | 1,090,711 | ||||||||||
| Intangible assets: | ||||||||||||||||||||
| Goodwill | (379,437 | ) | (350,035 | ) | (348,505 | ) | (348,769 | ) | (327,686 | ) | ||||||||||
| Other intangible assets | (58,528 | ) | (51,408 | ) | (52,959 | ) | (54,268 | ) | (50,329 | ) | ||||||||||
| Total intangibles | (437,965 | ) | (401,443 | ) | (401,464 | ) | (403,037 | ) | (378,015 | ) | ||||||||||
| Tangible common stockholders' equity | $ | 796,111 | $ | 769,446 | $ | 749,647 | $ | 744,104 | $ | 712,696 | ||||||||||
| Total assets | $ | 9,068,308 | $ | 8,626,638 | $ | 8,400,056 | $ | 8,226,992 | $ | 7,534,219 | ||||||||||
| Intangible assets: | ||||||||||||||||||||
| Goodwill | (379,437 | ) | (350,035 | ) | (348,505 | ) | (348,769 | ) | (327,686 | ) | ||||||||||
| Other intangible assets | (58,528 | ) | (51,408 | ) | (52,959 | ) | (54,268 | ) | (50,329 | ) | ||||||||||
| Total intangibles | (437,965 | ) | (401,443 | ) | (401,464 | ) | (403,037 | ) | (378,015 | ) | ||||||||||
| Tangible assets | $ | 8,630,343 | $ | 8,225,195 | $ | 7,998,592 | $ | 7,823,955 | $ | 7,156,204 | ||||||||||
| Ratio of equity to assets | 13.61 | % | 13.57 | % | 13.70 | % | 13.94 | % | 14.48 | % | ||||||||||
| Ratio of tangible common equity to tangible assets | 9.22 | % | 9.35 | % | 9.37 | % | 9.51 | % | 9.96 | % | ||||||||||
| 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 | $ | 28,409 | $ | 28,941 | $ | 35,462 | $ | 42,899 | $ | 38,294 | ||||||||||
| Allowance for loan losses on acquired loans | 391 | 435 | 954 | 954 | 954 | |||||||||||||||
| Total credit discount and ALLL on acquired loans | $ | 28,800 | $ | 29,376 | $ | 36,416 | $ | 43,853 | $ | 39,248 | ||||||||||
| Total loans acquired | $ | 1,253,539 | $ | 1,173,667 | $ | 1,342,099 | $ | 1,502,051 | $ | 1,327,683 | ||||||||||
| Discount and ALLL on acquired loans to acquired loans | 2.30 | % | 2.50 | % | 2.71 | % | 2.92 | % | 2.96 | % | ||||||||||
| Calculation of Total Allowance and Credit Coverage | ||||||||||||||||||||
| Allowance for loan losses | $ | 41,379 | $ | 37,865 | $ | 36,286 | $ | 34,094 | $ | 33,523 | ||||||||||
| Total credit discount and ALLL on acquired loans | 28,800 | 29,376 | 36,416 | 43,853 | 39,248 | |||||||||||||||
| Total allowance and credit discount | $ | 70,179 | $ | 67,241 | $ | 72,702 | $ | 77,947 | $ | 72,771 | ||||||||||
| Total loans | $ | 6,254,155 | $ | 5,806,572 | $ | 5,669,306 | $ | 5,445,140 | $ | 5,053,105 | ||||||||||
| Total allowance and credit coverage | 1.12 | % | 1.16 | % | 1.28 | % | 1.43 | % | 1.44 | % | ||||||||||
| Calculation of Tangible Book Value per Share | ||||||||||||||||||||
| Total common stockholders' equity | $ | 1,234,076 | $ | 1,170,889 | $ | 1,151,111 | $ | 1,147,141 | $ | 1,090,711 | ||||||||||
| Intangible assets: | ||||||||||||||||||||
| Goodwill | (379,437 | ) | (350,035 | ) | (348,505 | ) | (348,769 | ) | (327,686 | ) | ||||||||||
| Other intangible assets | (58,528 | ) | (51,408 | ) | (52,959 | ) | (54,268 | ) | (50,329 | ) | ||||||||||
| Total intangibles | (437,965 | ) | (401,443 | ) | (401,464 | ) | (403,037 | ) | (378,015 | ) | ||||||||||
| Tangible common stockholders' equity | $ | 796,111 | $ | 769,446 | $ | 749,647 | $ | 744,104 | $ | 712,696 | ||||||||||
| Shares of common stock outstanding | 32,212,832 | 31,388,357 | 31,277,723 | 31,267,614 | 30,415,980 | |||||||||||||||
| Book value per common share | $ | 38.31 | $ | 37.30 | $ | 36.80 | $ | 36.69 | $ | 35.86 | ||||||||||
| Tangible book value per common share | $ | 24.71 | $ | 24.51 | $ | 23.97 | $ | 23.80 | $ | 23.43 | ||||||||||
| Page 10 |
| Simmons First National Corporation | SFNC | |||||||||||||||||||
| Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date | ||||||||||||||||||||
| For the Quarters Ended | ||||||||||||||||||||
| (Unaudited) | Jun 30 | Mar 31 | Dec 31 | Sept 30 | Jun 30 | |||||||||||||||
| 2017 | 2017 | 2016 | 2016 | 2016 | ||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||
| Calculation of Core Return on Average Assets | ||||||||||||||||||||
| Net income | $ | 23,065 | $ | 22,120 | $ | 26,971 | $ | 23,429 | $ | 22,909 | ||||||||||
| Net non-core items, net of taxes, adjustment | 3,688 | 412 | 1,780 | 953 | 2,182 | |||||||||||||||
| Core earnings | $ | 26,753 | $ | 22,532 | $ | 28,751 | $ | 24,382 | $ | 25,091 | ||||||||||
| Average total assets | $ | 8,812,460 | $ | 8,414,470 | $ | 8,308,458 | $ | 7,703,837 | $ | 7,522,133 | ||||||||||
| Return on average assets | 1.05 | % | 1.07 | % | 1.29 | % | 1.21 | % | 1.22 | % | ||||||||||
| Core return on average assets | 1.22 | % | 1.09 | % | 1.38 | % | 1.26 | % | 1.34 | % | ||||||||||
| Calculation of Return on Tangible Common Equity | ||||||||||||||||||||
| Net income | $ | 23,065 | $ | 22,120 | $ | 26,971 | $ | 23,429 | $ | 22,909 | ||||||||||
| Amortization of intangibles, net of taxes | 944 | 942 | 932 | 913 | 882 | |||||||||||||||
| Total income available to common stockholders | $ | 24,009 | $ | 23,062 | $ | 27,903 | $ | 24,342 | $ | 23,791 | ||||||||||
| Net non-core items, net of taxes | 3,688 | 412 | 1,780 | 953 | 2,182 | |||||||||||||||
| Core earnings | 26,753 | 22,532 | 28,751 | 24,382 | 25,091 | |||||||||||||||
| Amortization of intangibles, net of taxes | 944 | 942 | 932 | 913 | 882 | |||||||||||||||
| Total core income available to common stockholders | $ | 27,697 | $ | 23,474 | $ | 29,683 | $ | 25,295 | $ | 25,973 | ||||||||||
| Average common stockholders' equity | $ | 1,209,343 | $ | 1,166,473 | $ | 1,156,933 | $ | 1,114,252 | $ | 1,086,618 | ||||||||||
| Average intangible assets: | ||||||||||||||||||||
| Goodwill | (362,925 | ) | (348,837 | ) | (348,597 | ) | (332,893 | ) | (327,686 | ) | ||||||||||
| Other intangibles | (52,419 | ) | (52,169 | ) | (53,646 | ) | (50,893 | ) | (51,043 | ) | ||||||||||
| Total average intangibles | (415,344 | ) | (401,006 | ) | (402,243 | ) | (383,786 | ) | (378,729 | ) | ||||||||||
| Average tangible common stockholders' equity | $ | 793,999 | $ | 765,467 | $ | 754,690 | $ | 730,466 | $ | 707,889 | ||||||||||
| Return on average common equity | 7.65 | % | 7.69 | % | 9.27 | % | 8.36 | % | 8.48 | % | ||||||||||
| Return on tangible common equity | 12.13 | % | 12.22 | % | 14.71 | % | 13.26 | % | 13.52 | % | ||||||||||
| Core return on average common equity | 8.87 | % | 7.83 | % | 9.89 | % | 8.71 | % | 9.29 | % | ||||||||||
| Core return on tangible common equity | 13.99 | % | 12.44 | % | 15.65 | % | 13.78 | % | 14.76 | % | ||||||||||
| Calculation of Efficiency Ratio (1) | ||||||||||||||||||||
| Non-interest expense | $ | 71,408 | $ | 66,322 | $ | 66,725 | $ | 62,434 | $ | 64,137 | ||||||||||
| Non-core non-interest expense adjustment | (6,700 | ) | (635 | ) | (2,995 | ) | (1,742 | ) | (3,591 | ) | ||||||||||
| Other real estate and foreclosure expense adjustment | (517 | ) | (550 | ) | (669 | ) | (1,787 | ) | (967 | ) | ||||||||||
| Amortization of intangibles adjustment | (1,553 | ) | (1,550 | ) | (1,533 | ) | (1,503 | ) | (1,451 | ) | ||||||||||
| Efficiency ratio numerator | $ | 62,638 | $ | 63,587 | $ | 61,528 | $ | 57,402 | $ | 58,128 | ||||||||||
| Net-interest income | $ | 76,812 | $ | 72,380 | $ | 74,328 | $ | 68,063 | $ | 66,583 | ||||||||||
| Non-interest income | 35,744 | 30,060 | 36,115 | 36,876 | 36,888 | |||||||||||||||
| Non-core non-interest income adjustment | (632 | ) | 43 | (66 | ) | (175 | ) | - | ||||||||||||
| Fully tax-equivalent adjustment | 2,082 | 1,965 | 1,994 | 1,969 | 1,675 | |||||||||||||||
| (Gain) loss on sale of securities | (2,236 | ) | (63 | ) | (1,445 | ) | (315 | ) | (3,759 | ) | ||||||||||
| Efficiency ratio denominator | $ | 111,770 | $ | 104,385 | $ | 110,926 | $ | 106,418 | $ | 101,387 | ||||||||||
| Efficiency ratio (1) | 56.04 | % | 60.92 | % | 55.47 | % | 53.94 | % | 57.33 | % | ||||||||||
| Calculation of Core Net Interest Margin | ||||||||||||||||||||
| Net interest income | $ | 76,812 | $ | 72,380 | $ | 74,328 | $ | 68,063 | $ | 66,583 | ||||||||||
| Fully tax-equivalent adjustment | 2,082 | 1,965 | 1,994 | 1,969 | 1,675 | |||||||||||||||
| Fully tax-equivalent net interest income | 78,894 | 74,345 | 76,322 | 70,032 | 68,258 | |||||||||||||||
| Total accretable yield | (4,792 | ) | (4,427 | ) | (6,552 | ) | (4,928 | ) | (4,700 | ) | ||||||||||
| Core net interest income | $ | 74,102 | $ | 69,918 | $ | 69,770 | $ | 65,104 | $ | 63,558 | ||||||||||
| Average earning assets | $ | 7,841,208 | $ | 7,469,709 | $ | 7,373,236 | $ | 6,825,019 | $ | 6,625,642 | ||||||||||
| Net interest margin | 4.04 | % | 4.04 | % | 4.12 | % | 4.08 | % | 4.14 | % | ||||||||||
| Core net interest margin | 3.79 | % | 3.80 | % | 3.76 | % | 3.79 | % | 3.86 | % | ||||||||||
| Calculation of Core Loan Yield | ||||||||||||||||||||
| Loan interest income | $ | 73,549 | $ | 68,728 | $ | 70,887 | $ | 65,078 | $ | 63,009 | ||||||||||
| Total accretable yield | (4,792 | ) | (4,427 | ) | (6,552 | ) | (4,928 | ) | (4,700 | ) | ||||||||||
| Core loan interest income | $ | 68,757 | $ | 64,301 | $ | 64,335 | $ | 60,150 | $ | 58,309 | ||||||||||
| Average loan balance | $ | 5,954,019 | $ | 5,685,585 | $ | 5,484,918 | $ | 5,105,474 | $ | 4,957,888 | ||||||||||
| Core loan yield | 4.63 | % | 4.59 | % | 4.67 | % | 4.69 | % | 4.73 | % | ||||||||||
(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) | Jun 30 | Mar 31 | Dec 31 | Sept 30 | Jun 30 | |||||||||||||||
| 2017 | 2017 | 2016 | 2016 | 2016 | ||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||
| Calculation of Core Return on Average Assets | ||||||||||||||||||||
| Net income | $ | 45,185 | $ | 22,120 | $ | 96,790 | $ | 69,819 | $ | 46,390 | ||||||||||
| Net non-core items, net of taxes, adjustment | 4,100 | 412 | 4,619 | 2,839 | 1,886 | |||||||||||||||
| Core earnings | $ | 49,285 | $ | 22,532 | $ | 101,409 | $ | 72,658 | $ | 48,276 | ||||||||||
| Average total assets | $ | 8,613,240 | $ | 8,414,470 | $ | 7,760,233 | $ | 7,575,053 | $ | 7,510,657 | ||||||||||
| Return on average assets | 1.06 | % | 1.07 | % | 1.25 | % | 1.23 | % | 1.24 | % | ||||||||||
| Core return on average assets | 1.15 | % | 1.09 | % | 1.31 | % | 1.28 | % | 1.29 | % | ||||||||||
| Calculation of Return on Tangible Common Equity | ||||||||||||||||||||
| Net income | $ | 45,185 | $ | 22,120 | $ | 96,790 | $ | 69,819 | $ | 46,390 | ||||||||||
| Amortization of intangibles, net of taxes | 1,886 | 942 | 3,611 | 2,679 | 1,766 | |||||||||||||||
| Total income available to common stockholders | $ | 47,071 | $ | 23,062 | $ | 100,401 | $ | 72,498 | $ | 48,156 | ||||||||||
| Net non-core items, net of taxes | 4,100 | 412 | 4,619 | 2,839 | 1,886 | |||||||||||||||
| Core earnings | 49,285 | 22,532 | 101,409 | 72,658 | 48,276 | |||||||||||||||
| Amortization of intangibles, net of taxes | 1,886 | 942 | 3,611 | 2,679 | 1,766 | |||||||||||||||
| Total core income available to common stockholders | $ | 51,171 | $ | 23,474 | $ | 105,020 | $ | 75,337 | $ | 50,042 | ||||||||||
| Average common stockholders' equity | $ | 1,187,906 | $ | 1,166,473 | $ | 1,105,775 | $ | 1,088,723 | $ | 1,075,957 | ||||||||||
| Average intangible assets: | ||||||||||||||||||||
| Goodwill | (355,881 | ) | (348,837 | ) | (332,974 | ) | (329,422 | ) | (327,686 | ) | ||||||||||
| Other intangibles | (52,294 | ) | (52,169 | ) | (51,710 | ) | (51,478 | ) | (51,771 | ) | ||||||||||
| Total average intangibles | (408,175 | ) | (401,006 | ) | (384,684 | ) | (380,900 | ) | (379,457 | ) | ||||||||||
| Average tangible common stockholders' equity | $ | 779,731 | $ | 765,467 | $ | 721,091 | $ | 707,823 | $ | 696,500 | ||||||||||
| Return on average common equity | 7.67 | % | 7.69 | % | 8.75 | % | 8.57 | % | 8.67 | % | ||||||||||
| Return on tangible common equity | 12.17 | % | 12.22 | % | 13.92 | % | 13.68 | % | 13.90 | % | ||||||||||
| Core return on average common equity | 8.37 | % | 7.83 | % | 9.17 | % | 8.91 | % | 9.02 | % | ||||||||||
| Core return on tangible common equity | 13.23 | % | 12.44 | % | 14.56 | % | 14.22 | % | 14.45 | % | ||||||||||
| Calculation of Efficiency Ratio (1) | ||||||||||||||||||||
| Non-interest expense | $ | 137,730 | $ | 66,322 | $ | 255,085 | $ | 188,360 | $ | 125,931 | ||||||||||
| Non-core non-interest expense adjustment | (7,335 | ) | (635 | ) | (8,435 | ) | (5,440 | ) | (3,698 | ) | ||||||||||
| Other real estate and foreclosure expense adjustment | (1,067 | ) | (550 | ) | (4,389 | ) | (3,720 | ) | (1,934 | ) | ||||||||||
| Amortization of intangibles adjustment | (3,103 | ) | (1,550 | ) | (5,942 | ) | (4,409 | ) | (2,906 | ) | ||||||||||
| Efficiency ratio numerator | $ | 126,225 | $ | 63,587 | $ | 236,319 | $ | 174,791 | $ | 117,393 | ||||||||||
| Net-interest income | $ | 149,192 | $ | 72,380 | $ | 279,206 | $ | 204,878 | $ | 136,814 | ||||||||||
| Non-interest income | 65,804 | 30,060 | 139,382 | 103,267 | 66,397 | |||||||||||||||
| Non-core non-interest income adjustment | (589 | ) | 43 | (835 | ) | (769 | ) | (594 | ) | |||||||||||
| Fully tax-equivalent adjustment | 4,047 | 1,965 | 7,722 | 5,728 | 3,759 | |||||||||||||||
| (Gain) loss on sale of securities | (2,299 | ) | (63 | ) | (5,848 | ) | (4,403 | ) | (4,088 | ) | ||||||||||
| Efficiency ratio denominator | $ | 216,155 | $ | 104,385 | $ | 419,627 | $ | 308,701 | $ | 202,288 | ||||||||||
| Efficiency ratio (1) | 58.40 | % | 60.92 | % | 56.32 | % | 56.62 | % | 58.03 | % | ||||||||||
| Calculation of Core Net Interest Margin | ||||||||||||||||||||
| Net interest income | $ | 149,192 | $ | 72,380 | $ | 279,206 | $ | 204,878 | $ | 136,814 | ||||||||||
| Fully tax-equivalent adjustment | 4,047 | 1,965 | 7,722 | 5,728 | 3,759 | |||||||||||||||
| Fully tax-equivalent net interest income | 153,239 | 74,345 | 286,928 | 210,606 | 140,573 | |||||||||||||||
| Total accretable yield | (9,219 | ) | (4,427 | ) | (24,257 | ) | (17,705 | ) | (12,777 | ) | ||||||||||
| Core net interest income | $ | 144,020 | $ | 69,918 | $ | 262,671 | $ | 192,901 | $ | 127,796 | ||||||||||
| Average earning assets | $ | 7,653,177 | $ | 7,469,709 | $ | 6,855,322 | $ | 6,682,683 | $ | 6,611,516 | ||||||||||
| Net interest margin | 4.04 | % | 4.04 | % | 4.19 | % | 4.21 | % | 4.28 | % | ||||||||||
| Core net interest margin | 3.79 | % | 3.80 | % | 3.83 | % | 3.86 | % | 3.89 | % | ||||||||||
| Calculation of Core Loan Yield | ||||||||||||||||||||
| Loan interest income | $ | 142,277 | $ | 68,728 | $ | 265,652 | $ | 194,765 | $ | 129,688 | ||||||||||
| Total accretable yield | (9,219 | ) | (4,427 | ) | (24,257 | ) | (17,705 | ) | (12,777 | ) | ||||||||||
| Core loan interest income | $ | 133,058 | $ | 64,301 | $ | 241,395 | $ | 177,060 | $ | 116,911 | ||||||||||
| Average loan balance | $ | 5,819,803 | $ | 5,685,585 | $ | 5,109,492 | $ | 4,984,349 | $ | 4,923,787 | ||||||||||
| Core loan yield | 4.61 | % | 4.59 | % | 4.72 | % | 4.75 | % | 4.77 | % | ||||||||||
(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