Exhibit 99.1

 

 

 

For Immediate Release:

October 22, 2017

 

SIMMONS REPORTS THIRD QUARTER 2017 EARNINGS

 

Pine Bluff, AR – Simmons First National Corp. (NASDAQ-GS: SFNC) today announced net income available to common shareholders of $28.9 million, or $0.89 per diluted share, for the quarter ended September 30, 2017, compared to $23.4 million, or $0.76 per diluted share, for the same period in 2016, a 17.1% increase. Included in third quarter 2017 results was $721,000 in net after-tax merger-related and branch right-sizing costs as well as a $1.8 million gain on the sale of insurance lines.

 

Excluding the impact of these items, core earnings were $27.7 million, or $0.86 per diluted share, for the quarter ended September 30, 2017, compared to $24.4 million, or $0.79 per diluted share, for the quarter ended September 30, 2016, an 8.9% increase.

 

Year-to-date net income was $74.0 million, or $2.31 diluted earnings per share. Excluding the net after-tax merger-related and branch right-sizing costs and the insurance gain, year-to-date core earnings were $77.0 million, or $2.41 diluted core earnings per share.

 

On October 19, 2017, Simmons First National Corp. completed the acquisitions of Southwest Bancorp, Inc. (NASDAQ-GS: OKSB), headquartered in Stillwater, OK., including its wholly-owned bank subsidiary, Bank SNB, and First Texas BHC, Inc., headquartered in Ft. Worth, TX, including its wholly-owned subsidiary, Southwest Bank. With the completion of these acquisitions, the proforma combined total assets of the company are approximately $14.2 billion. The systems conversions are planned during the first half of 2018, at which time the subsidiary banks will be merged into Simmons Bank.

 

Simmons Bank was the successful bidder at a public auction held to discharge certain indebtedness owed to the Bank and became the sole shareholder of Heartland Bank in Little Rock, AR, on August 28, 2017. Heartland Bank remains a separately chartered state bank. Simmons is evaluating the next steps with respect to the institution.

 

On September 1, 2017, the insurance affiliates of the Company completed the sale of their property and casualty insurance business lines and an after-tax gain of $1.8 million was recognized on the transaction. Tangible common equity was positively impacted by $7.2 million due to a reduction in intangible assets related to the sold business.

 

Additionally, during the quarter, the Company completed its conversion and integration of First South Bank with and into its subsidiary, Simmons Bank.

 

“The third quarter was certainly an exciting and eventful quarter for us,” said George A. Makris, Jr., chairman and CEO. “We are pleased with the operating results from the third quarter and I am extremely proud of our associates’ ability to manage the significant transactions during the quarter while producing outstanding results. We are also excited to welcome the associates of Bank SNB and Southwest Bank to the Simmons family. We look forward to a great partnership.”

 

 

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

 

Selected Highlights:	3rd Qtr 2017	2nd Qtr 2017	3rd Qtr 2016
Net income	$28.9 million	$23.1 million	$23.4 million
Diluted earnings per share	$0.89	$0.72	$0.76
Return on avg assets	1.25%	1.05%	1.21%
Return on avg common equity	9.12%	7.65%	8.36%
Return on tangible common equity	14.47%	12.13%	13.26%
Net interest margin(1)	3.91%	4.04%	4.08%
Core earnings(2)	$27.7 million	$26.8 million	$24.4 million
Diluted core earnings per share(2)	$0.86	$0.84	$0.79
Core return on avg assets(2)	1.20%	1.22%	1.26%
Core return on avg common equity(2)	8.77%	8.87%	8.71%
Core return on tangible common equity(2)	13.93%	13.99%	13.78%
Core net interest margin(1)(2)	3.77%	3.79%	3.79%
Efficiency ratio	55.06%	56.04%	53.94%

 

(1)

Fully tax equivalent.

(2)

Core earnings excludes non-core items, which is a non-GAAP measurement.

 

Loans

 

	3rd Qtr 2017	2nd Qtr 2017	3rd Qtr 2016
Total loans	$6.3 billion	$6.2 billion	$5.4 billion
Legacy loans (all loans excluding loans acquired)	$5.2 billion	$5.0 billion	$3.9 billion
Loans acquired	$1.1 billion	$1.2 billion	$1.5 billion

 

Total loans, including those acquired, were $6.3 billion at September 30, 2017, an increase of $902.1 million, or 16.7% from September 30, 2016.

 

On a linked-quarter basis (September 30, 2017 compared to June 30, 2017), total loans increased $78.0 million, or 1.3%. The increase was due to:

 

·

$30 million decrease in liquidating portfolio (indirect lending and consumer finance)

·

$13 million increase from participations purchased from Southwest Bank

·

$228 million in net legacy loan growth including $36 million of migrated loans (acquired to legacy)

·

$133 million decrease in the existing acquired loan portfolio including migration

 

Deposits

 

	3rd Qtr 2017	2nd Qtr 2017	3rd Qtr 2016
Total deposits	$7.3 billion	$7.1 billion	$6.6 billion
Non-time deposits	$6.0 billion	$5.8 billion	$5.3 billion
Time deposits	$1.3 billion	$1.3 billion	$1.3 billion

 

At September 30, 2017, total deposits were $7.3 billion, an increase of 10.7%, compared to the same period in 2016. The increase is from recent acquisitions and growth in core deposits. Total non-time deposits increased 13.7% compared to the same period in 2016, and comprised 82% of total deposits.

 

Net Interest Income

 

The Company’s net interest income for the third quarter of 2017 was $78.8 million, an increase of $10.8 million, or 15.8%, from the same period of 2016. Included in interest income was the yield accretion recognized on loans acquired of $2.9 million and $4.9 million for the third quarter of 2017 and 2016, respectively. Net interest margin was 3.91% for the quarter ended September 30, 2017, a 17 basis point decline from the same quarter of 2016. The Company’s core net interest margin, excluding the accretion, was 3.77% for the third quarter of 2017, a 2 basis point decline from September 30, 2016 and a 2 basis point decrease from June 30, 2017. Cost of interest bearing deposits were 0.43% for the third quarter of 2017, a 12 basis point increase from September 30, 2016 and a 7 basis point increase from June 30, 2017.

 

 

Non-Interest Income

 

Non-interest income for the third quarter was $36.3 million, a decrease of $544,000 compared with the third quarter of 2016. Included in non-interest income were the following items:

 

·

$3.7 million gain on sale of property and casualty insurance business lines

·

$325,000 loss on the sale of fixed assets

·

$1.2 million decrease in mortgage revenue due to decline in demand in the industry

·

$451,000 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

·

$312,000 decrease in gain on sale of securities

·

$2.0 million decrease in other income due to recovery of charged off loans acquired in third quarter of 2016

 

Non-Interest Expense

 

Non-interest expense for the third quarter of 2017 was $66.2 million, an increase of $3.7 million compared to the third quarter of 2016. Included in this quarter were $862,000 of merger-related expenses and branch rightsizing costs. Excluding these expenses, core non-interest expense was $65.3 million.

 

The increases during the quarter were driven by incremental increases in operating expenses related to the additions of First South Bank which closed during 2017 and Citizens Bank which closed in September 2016. These increases were partially offset by a $716,000 decrease in other real estate and foreclosure expense. The efficiency ratio for the third quarter was 55.06%.

 

Asset Quality

 

	3rd Qtr 2017	2nd Qtr 2017	3rd Qtr 2016
Allowance for loan losses on loans to total loans	0.82%	0.83%	0.86%
Allowance for loan losses on loans to non-performing loans	78%	72%	91%
Non-performing loans to total loans	1.05%	1.15%	0.95%
Net charge-off ratio (annualized)	0.32%	0.23%	0.82%
Net charge-off ratio excluding credit cards	0.27%	0.19%	0.81%

 

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

 

At September 30, 2017, the allowance for loan losses for legacy loans was $42.7 million. The allowance for loan losses for loans acquired was $391,000 and the acquired loan discount credit mark was $25.0 million. The allowances for loan losses and credit marks provide a total of $68.1 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 loans acquired was 2.3%.

 

Provision for loan losses for the third quarter of 2017 was $5.5 million, a decrease of $2.8 million compared to September 30, 2016.

 

Foreclosed Assets and Other Real Estate Owned

 

At September 30, 2017, foreclosed assets and other real estate owned were $31.5 million, an increase of $1.1 million, or 3.6%, compared to the same period in 2016. The composition of these assets is divided in to three types:

 

	3rd Qtr 2017	2nd Qtr 2017	3rd Qtr 2016
Closed bank branches, branch sites &
associate relocation	$12.8 million	$8.7 million	$6.1 million
Foreclosed assets - acquired	$11.1 million	$12.0 million	$15.2 million
Foreclosed assets - legacy	$7.6 million	$5.3 million	$9.1 million

 

Arkansas State banking laws require that former bank branches and vacant land that was previously held for potential bank branches be classified as foreclosed assets and other real estate owned at the time they are no longer used for bank operations. Due to this requirement, foreclosed assets and other real estate owned increased during the quarter by $4.1 million as a result of branch closures during the conversion of First South Bank in to Simmons Bank.

 

Capital

 

	3rd Qtr 2017	2nd Qtr 2017	3rd Qtr 2016
Stockholders’ equity to total assets	13.2%	13.6%	13.9%
Tangible common equity to tangible assets	9.1%	9.2%	9.5%
Regulatory tier 1 leverage ratio	10.6%	10.8%	11.6%
Regulatory total risk-based capital ratio	13.6%	13.7%	15.5%

 

At September 30, 2017, common stockholders' equity was $1.3 billion, book value per share was $39.03 and tangible book value per share was $25.64.

 

Simmons First National Corporation

 

Simmons First National Corp. is a financial holding company, headquartered in Pine Bluff, Ark., with total assets of $9.5 billion as of September 30, 2017 and proforma assets of approximately $14.2 billion conducting financial operations throughout Arkansas, Colorado, Kansas, Missouri, Oklahoma, Tennessee and Texas. 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 9:30 a.m. CDT on Monday, October 23, 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 84536260. 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.

 

-end-

 

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		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2017				2017				2017				2016				2016
($ in thousands)
ASSETS
Cash and non-interest bearing balances due from banks		$	108,675			$	112,567			$	103,875			$	117,007			$	112,572
Interest bearing balances due from banks and federal funds sold			323,615				217,047				201,406				168,652				341,951
Cash and cash equivalents			432,290				329,614				305,281				285,659				454,523
Interest bearing balances due from banks - time			4,059				6,057				4,563				4,563				4,393
Investment securities - held-to-maturity			406,033				419,003				431,176				462,096				496,594
Investment securities - available-for-sale			1,317,420				1,190,600				1,257,813				1,157,354				1,024,206
Mortgage loans held for sale			12,614				16,266				9,754				27,788				28,069
Assets held in trading accounts			49				50				55				41				2,969
Other assets held for sale			182,378				-				-				-				-
Loans:
Legacy loans			5,211,312				5,000,572				4,632,905				4,327,207				3,943,089
Allowance for loan losses			(42,717	)			(41,379	)			(37,865	)			(36,286	)			(34,094	)
Loans acquired, net of discount and allowance			1,092,039				1,224,739				1,144,291				1,305,683				1,458,198
Net loans			6,260,634				6,183,932				5,739,331				5,596,604				5,367,193
Premises and equipment			224,376				230,641				221,880				199,359				192,523
Premises held for sale			-				-				4,611				6,052				6,732
Foreclosed assets and other real estate owned			31,477				26,012				26,421				26,895				30,396
Interest receivable			30,749				27,337				26,089				27,788				27,390
Bank owned life insurance			148,984				148,134				139,439				138,620				138,298
Goodwill			375,731				379,437				350,035				348,505				348,769
Other intangible assets			55,501				58,528				51,408				52,959				54,268
Other assets			53,075				52,697				58,782				65,773				50,669
Total assets		$	9,535,370			$	9,068,308			$	8,626,638			$	8,400,056			$	8,226,992
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts		$	1,669,860			$	1,650,986			$	1,554,675			$	1,491,676			$	1,473,420
Interest bearing transaction accounts and savings deposits			4,344,779				4,141,426				3,987,730				3,956,483				3,815,939
Time deposits less than $100,000			675,186				645,855				653,538				686,780				653,105
Time deposits greater than $100,000			635,765				665,268				592,345				600,280				674,917
Total deposits			7,325,590				7,103,535				6,788,288				6,735,219				6,617,381
Federal funds purchased and securities sold
under agreements to repurchase			121,687				121,419				110,007				115,029				124,289
Other borrowings			522,541				474,962				441,074				273,159				215,276
Subordinated debentures			67,418				67,312				60,503				60,397				60,290
Other liabilities held for sale			176,964				-				-				-				-
Accrued interest and other liabilities			63,971				67,004				55,877				65,141				62,615
Total liabilities			8,278,171				7,834,232				7,455,749				7,248,945				7,079,851
Stockholders' equity:
Common stock			322				322				314				313				313
Surplus			763,443				761,754				716,564				711,976				710,132
Undivided profits			504,085				483,322				468,309				454,034				434,579
Accumulated other comprehensive income (loss):
Unrealized appreciation (depreciation) on AFS securities			(10,651	)			(11,322	)			(14,298	)			(15,212	)			2,117
Total stockholders' equity			1,257,199				1,234,076				1,170,889				1,151,111				1,147,141
Total liabilities and stockholders' equity		$	9,535,370			$	9,068,308			$	8,626,638			$	8,400,056			$	8,226,992

 

 Page 1 

Simmons First National Corporation																		SFNC
Consolidated Statements of Income - Quarter-to-Date
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2017				2017				2017				2016				2016
($ in thousands, except per share data)
INTEREST INCOME
Loans		$	77,457			$	73,549			$	68,728			$	70,887			$	65,078
Interest bearing balances due from banks and federal funds sold			650				214				122				245				263
Investment securities			9,218				9,990				9,451				8,700				7,774
Mortgage loans held for sale			159				145				126				230				299
Assets held in trading accounts			-				-				-				3				4
TOTAL INTEREST INCOME			87,484				83,898				78,427				80,065				73,418
INTEREST EXPENSE
Time deposits			2,110				1,832				1,758				2,023				1,767
Other deposits			3,920				2,984				2,446				2,032				1,965
Federal funds purchased and securities
sold under agreements to repurchase			83				92				75				90				59
Other borrowings			1,875				1,559				1,194				1,034				1,048
Subordinated debentures			677				619				574				558				516
TOTAL INTEREST EXPENSE			8,665				7,086				6,047				5,737				5,355
NET INTEREST INCOME			78,819				76,812				72,380				74,328				68,063
Provision for loan losses			5,462				7,023				4,307				4,332				8,294
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES			73,357				69,789				68,073				69,996				59,769
NON-INTEREST INCOME
Trust income			4,225				4,113				4,212				4,282				3,873
Service charges on deposit accounts			8,907				8,483				8,102				8,666				8,771
Other service charges and fees			2,433				2,515				2,197				4,026				3,261
Mortgage and SBA lending income			3,219				3,961				2,423				4,580				4,339
Investment banking income			680				637				690				472				1,131
Debit and credit card fees			8,864				8,659				7,934				8,027				7,825
Bank owned life insurance income			725				859				818				895				606
Gain on sale of securities, net			3				2,236				63				1,445				315
Other income			7,276				4,281				3,621				3,722				6,755
TOTAL NON-INTEREST INCOME			36,332				35,744				30,060				36,115				36,876
NON-INTEREST EXPENSE
Salaries and employee benefits			35,285				34,205				35,536				33,797				31,784
Occupancy expense, net			4,928				4,868				4,663				4,516				4,690
Furniture and equipment expense			4,840				4,550				4,443				4,387				4,272
Other real estate and foreclosure expense			1,071				517				589				679				1,849
Deposit insurance			1,020				780				680				89				1,136
Merger-related costs			752				6,603				524				2,846				1,524
Other operating expenses			18,263				19,885				19,887				20,411				17,179
TOTAL NON-INTEREST EXPENSE			66,159				71,408				66,322				66,725				62,434
NET INCOME BEFORE INCOME TAXES			43,530				34,125				31,811				39,386				34,211
Provision for income taxes			14,678				11,060				9,691				12,415				10,782
NET INCOME		$	28,852			$	23,065			$	22,120			$	26,971			$	23,429
BASIC EARNINGS PER SHARE		$	0.90			$	0.72			$	0.71			$	0.86			$	0.77
DILUTED EARNINGS PER SHARE		$	0.89			$	0.72			$	0.70			$	0.85			$	0.76

 

 Page 2

Simmons First National Corporation																		SFNC
Consolidated Risk-Based Capital
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2017				2017				2017				2016				2016
($ in thousands)
Tier 1 capital
Stockholders' equity		$	1,257,199			$	1,234,076			$	1,170,889			$	1,151,111			$	1,147,141
Trust preferred securities, net allowable			67,418				67,312				60,503				60,397				60,290
Disallowed intangible assets, net of deferred tax			(401,419	)			(406,990	)			(361,944	)			(354,028	)			(354,582	)
Unrealized loss (gain) on AFS securities			10,651				11,322				14,298				15,212				(2,117	)
Other			-				-				-				15				-
Total Tier 1 capital			933,849				905,720				883,746				872,707				850,732
Tier 2 capital
Qualifying unrealized gain on AFS equity securities			1				1				2				-				-
Qualifying allowance for loan losses and
reserve for unfunded commitments			46,709				45,369				41,303				40,241				38,050
Total Tier 2 capital			46,710				45,370				41,305				40,241				38,050
Total risk-based capital		$	980,559			$	951,090			$	925,051			$	912,948			$	888,782
Common equity
Tier 1 capital		$	933,849			$	905,720			$	883,746			$	872,707			$	850,732
Less: Trust preferred securities			(67,418	)			(67,312	)			(60,503	)			(60,397	)			(60,290	)
Total common equity		$	866,431			$	838,408			$	823,243			$	812,310			$	790,442
Risk weighted assets		$	7,225,846			$	6,925,727			$	6,425,150			$	6,039,034			$	5,724,052
Adjusted average assets for leverage ratio		$	8,794,433			$	8,424,763			$	8,076,525			$	7,966,681			$	7,355,702
Ratios at end of quarter
Equity to assets			13.18	%			13.61	%			13.57	%			13.70	%			13.94	%
Tangible common equity to tangible assets (1)			9.07	%			9.22	%			9.35	%			9.37	%			9.51	%
Common equity Tier 1 ratio (CET1)			11.99	%			12.11	%			12.81	%			13.45	%			13.81	%
Tier 1 leverage ratio			10.62	%			10.75	%			10.94	%			10.95	%			11.57	%
Tier 1 risk-based capital ratio			12.92	%			13.08	%			13.75	%			14.45	%			14.86	%
Total risk-based capital ratio			13.57	%			13.73	%			14.40	%			15.12	%			15.53	%

 

(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		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2017				2017				2017				2016				2016
($ in thousands)
Legacy Loan Portfolio - End of Period (1)
Consumer
Credit cards		$	176,316			$	176,953			$	171,947			$	184,591			$	175,032
Other consumer			317,946				366,136				349,200				303,972				275,947
Total consumer			494,262				543,089				521,147				488,563				450,979
Real Estate
Construction			515,274				457,896				365,051				336,759				304,082
Single-family residential			1,048,403				1,014,412				957,717				904,245				841,958
Other commercial			2,231,223				2,089,707				1,959,677				1,787,075				1,521,132
Total real estate			3,794,900				3,562,015				3,282,445				3,028,079				2,667,172
Commercial
Commercial			688,960				678,932				657,606				639,525				607,738
Agricultural			207,849				191,345				141,125				150,378				203,529
Total commercial			896,809				870,277				798,731				789,903				811,267
Other			25,341				25,191				30,582				20,662				13,671
Total Loans		$	5,211,312			$	5,000,572			$	4,632,905			$	4,327,207			$	3,943,089
(1) Excludes all acquired loans.
Investment Securities - End of Period
Held-to-Maturity
U.S. Government agencies		$	66,928			$	67,912			$	68,895			$	76,875			$	80,849
Mortgage-backed securities			16,972				17,882				18,743				19,773				21,454
State and political subdivisions			320,116				331,249				341,854				362,532				391,495
Other securities			2,017				1,960				1,684				2,916				2,796
Total held-to-maturity			406,033				419,003				431,176				462,096				496,594
Available-for-Sale
U.S. Treasury		$	-			$	19,997			$	-			$	300			$	63,985
U.S. Government agencies			208,220				147,619				142,356				137,771				148,781
Mortgage-backed securities			959,698				878,205				927,277				868,324				699,748
State and political subdivisions			84,822				83,672				130,747				102,943				67,019
FHLB stock			24,415				21,772				19,149				12,235				11,235
Other securities			40,265				39,335				38,285				35,781				33,438
Total available-for-sale			1,317,420				1,190,600				1,257,814				1,157,354				1,024,206
Total investment securities		$	1,723,453			$	1,609,603			$	1,688,990			$	1,619,450			$	1,520,800
Fair value - HTM investment securities		$	412,140			$	425,263			$	435,701			$	465,960			$	508,910
Investment Securities - QTD Average
Taxable securities		$	1,229,172			$	1,244,071			$	1,185,794			$	1,146,703			$	963,150
Tax exempt securities			409,062				467,420				455,481				467,757				466,782
Total investment securities - QTD average		$	1,638,234			$	1,711,491			$	1,641,275			$	1,614,460			$	1,429,932

 

 Page 4 

Simmons First National Corporation																		SFNC
Consolidated Loans and Credit Coverage
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2017				2017				2017				2016				2016
($ in thousands)
LOANS
Legacy loans		$	5,211,312			$	5,000,572			$	4,632,905			$	4,327,207			$	3,943,089
Allowance for loan losses (legacy loans)			(42,717	)			(41,379	)			(37,865	)			(36,286	)			(34,094	)
Legacy loans (net of allowance)			5,168,595				4,959,193				4,595,040				4,290,921				3,908,995
Loans acquired			1,117,424				1,253,539				1,173,667				1,342,099				1,502,051
Credit discount			(24,994	)			(28,409	)			(28,941	)			(35,462	)			(42,899	)
Allowance for loan losses (loans acquired)			(391	)			(391	)			(435	)			(954	)			(954	)
Loans acquired (net of discount and allowance)			1,092,039				1,224,739				1,144,291				1,305,683				1,458,198
Net loans		$	6,260,634			$	6,183,932			$	5,739,331			$	5,596,604			$	5,367,193
Loan Coverage Ratios
Allowance for loan losses to legacy loans			0.82	%			0.83	%			0.82	%			0.84	%			0.86	%
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)			2.27	%			2.30	%			2.50	%			2.71	%			2.92	%
Total allowance and credit coverage (non-GAAP) (1)			1.08	%			1.12	%			1.16	%			1.28	%			1.43	%

 

(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		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2017				2017				2017				2016				2016
($ in thousands)
Allowance for Loan Losses (Legacy Loans)
Balance, beginning of quarter		$	41,379			$	37,865			$	36,286			$	34,094			$	33,523
Loans charged off
Credit cards			1,017				901				1,044				935				699
Other consumer			819				993				1,174				493				600
Real estate			896				1,712				656				167				6,297
Commercial			2,442				349				292				913				284
Total loans charged off			5,174				3,955				3,166				2,508				7,880
Recoveries of loans previously charged off
Credit cards			275				277				236				213				199
Other consumer			445				636				690				158				106
Real estate			309				216				232				73				55
Commercial			21				32				30				28				12
Total recoveries			1,050				1,161				1,188				472				372
Net loans charged off			4,124				2,794				1,978				2,036				7,508
Provision for loan losses			5,462				6,308				3,557				4,228				8,079
Balance, end of quarter		$	42,717			$	41,379			$	37,865			$	36,286			$	34,094
Non-performing assets (1) (2)
Non-performing loans
Nonaccrual loans			54,439				57,127				52,913				39,104				37,392
Loans past due 90 days or more			232				281				231				299				144
Total non-performing loans			54,671				57,408				53,144				39,403				37,536
Other non-performing assets
Foreclosed assets and other real estate owned (2)			31,477				26,012				26,421				26,895				30,396
Other non-performing assets			639				485				352				471				621
Total other non-performing assets			32,116				26,497				26,773				27,366				31,017
Total non-performing assets		$	86,787			$	83,905			$	79,917			$	66,769			$	68,553
Performing TDRs (troubled debt restructurings)		$	9,212			$	8,794			$	10,833			$	10,998			$	13,604
Ratios (1) (2)
Allowance for loan losses to total loans			0.82	%			0.83	%			0.82	%			0.84	%			0.86	%
Allowance for loan losses to non-performing loans			78	%			72	%			71	%			92	%			91	%
Non-performing loans to total loans			1.05	%			1.15	%			1.15	%			0.91	%			0.95	%
Non-performing assets (including performing TDRs)
to total assets			1.01	%			1.02	%			1.05	%			0.93	%			1.00	%
Non-performing assets to total assets			0.91	%			0.93	%			0.93	%			0.79	%			0.83	%
Annualized net charge offs to total loans			0.32	%			0.23	%			0.18	%			0.20	%			0.82	%
Annualized net credit card charge offs to
total credit card loans			1.63	%			1.42	%			1.84	%			1.66	%			1.14	%
Annualized net charge offs to total loans
(excluding credit cards)			0.27	%			0.19	%			0.11	%			0.14	%			0.81	%

 

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

 (2) Includes acquired foreclosed assets and acquired other real estate owned.

 

 Page 6 

Simmons First National Corporation											SFNC
Consolidated - Average Balance Sheet and Net Interest Income Analysis
For the Quarters Ended
(Unaudited)

 

		Three Months Ended Sep 2017												Three Months Ended Jun 2017												Three Months Ended Sep 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
Federal funds sold			269,111				650				0.96	%			163,396				214				0.53	%			253,249				263				0.41	%
Investment securities - taxable			1,313,333				6,574				1.99	%			1,374,261				6,874				2.01	%			1,038,437				4,775				1.83	%
Investment securities - non-taxable (FTE)			324,901				4,341				5.30	%			337,230				5,118				6.09	%			391,495				4,926				5.01	%
Mortgage loans held for sale			13,388				159				4.71	%			12,250				145				4.75	%			31,256				299				3.81	%
Assets held in trading accounts			52				-				0.00	%			52				-				0.00	%			5,108				4				0.31	%
Loans, including acquired loans			6,261,507				77,511				4.91	%			5,954,019				73,629				4.96	%			5,105,474				65,120				5.07	%
Total interest earning assets (FTE)			8,182,292				89,235				4.33	%			7,841,208				85,980				4.40	%			6,825,019				75,387				4.39	%
Non-earning assets			993,315												971,252												878,818
Total assets		$	9,175,607											$	8,812,460											$	7,703,837
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Interest bearing transaction and
savings accounts		$	4,227,567			$	3,920				0.37	%		$	4,069,179			$	2,984				0.29	%		$	3,645,414			$	1,965				0.21	%
Time deposits			1,330,889				2,110				0.63	%			1,277,336				1,832				0.58	%			1,213,895				1,767				0.58	%
Total interest bearing deposits			5,558,456				6,030				0.43	%			5,346,515				4,816				0.36	%			4,859,309				3,732				0.31	%
Federal funds purchased and securities
sold under agreement to repurchase			115,583				83				0.28	%			115,101				92				0.32	%			105,576				59				0.22	%
Other borrowings			502,972				1,875				1.48	%			434,584				1,559				1.44	%			192,453				1,048				2.17	%
Subordinated debentures			67,367				677				3.99	%			64,019				619				3.88	%			60,238				516				3.41	%
Total interest bearing liabilities			6,244,378				8,665				0.55	%			5,960,219				7,086				0.48	%			5,217,576				5,355				0.41	%
Non-interest bearing liabilities:
Non-interest bearing deposits			1,613,248												1,597,550												1,322,818
Other liabilities			62,287												45,348												49,191
Total liabilities			7,919,913												7,603,117												6,589,585
Stockholders' equity			1,255,694												1,209,343												1,114,252
Total liabilities and stockholders' equity		$	9,175,607											$	8,812,460											$	7,703,837
Net interest income (FTE)						$	80,570											$	78,894											$	70,032
Net interest spread (FTE)											3.78	%											3.92	%											3.98	%
Net interest margin (FTE) - quarter-to-date											3.91	%											4.04	%											4.08	%
Net interest margin (FTE) - year-to-date											3.99	%											4.04	%											4.21	%
Core net interest margin (FTE) - quarter-to-date (1)											3.77	%											3.79	%											3.79	%
Core loan yield (FTE) - quarter-to-date (1)											4.72	%											4.63	%											4.69	%
Core net interest margin (FTE) - year-to-date (1)											3.79	%											3.79	%											3.86	%
Core loan yield (FTE) - year-to-date (1)											4.65	%											4.61	%											4.75	%

 

(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		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2017				2017				2017				2016				2016
($ in thousands, except share data)
QUARTER-TO-DATE
Financial Highlights - GAAP
Net Income		$	28,852			$	23,065			$	22,120			$	26,971			$	23,429
Diluted earnings per share			0.89				0.72				0.70				0.85				0.76
Return on average assets			1.25	%			1.05	%			1.07	%			1.29	%			1.21	%
Return on average common equity			9.12	%			7.65	%			7.69	%			9.27	%			8.36	%
Return on tangible common equity			14.47	%			12.13	%			12.22	%			14.71	%			13.26	%
Net interest margin (FTE)			3.91	%			4.04	%			4.04	%			4.12	%			4.08	%
FTE adjustment			1,751				2,082				1,965				1,994				1,969
Amortization of intangibles			1,724				1,553				1,550				1,533				1,503
Amortization of intangibles, net of taxes			1,048				944				942				932				913
Average diluted shares outstanding			32,423,796				32,025,780				31,612,900				31,592,713				30,843,714
Cash dividends declared per common share			0.25				0.25				0.25				0.24				0.24
Financial Highlights - Core (non-GAAP)
Core earnings (excludes non-core items) (1)		$	27,746			$	26,753			$	22,532			$	28,751			$	24,382
Diluted core earnings per share (1)			0.86				0.84				0.71				0.91				0.79
Core net interest margin (FTE) (2)			3.77	%			3.79	%			3.80	%			3.76	%			3.79	%
Accretable yield on acquired loans			2,890				4,792				4,427				6,552				4,928
Efficiency ratio (1)			55.06	%			56.04	%			60.92	%			55.47	%			53.94	%
Core return on average assets (1)			1.20	%			1.22	%			1.09	%			1.38	%			1.26	%
Core return on average common equity (1)			8.77	%			8.87	%			7.83	%			9.89	%			8.71	%
Core return on tangible common equity (1)			13.93	%			13.99	%			12.44	%			15.65	%			13.78	%
YEAR-TO-DATE
Financial Highlights - GAAP
Net Income		$	74,037			$	45,185			$	22,120			$	96,790			$	69,819
Diluted earnings per share			2.31				1.42				0.70				3.13				2.28
Return on average assets			1.12	%			1.06	%			1.07	%			1.25	%			1.23	%
Return on average common equity			8.18	%			7.67	%			7.69	%			8.75	%			8.57	%
Return on tangible common equity			12.97	%			12.17	%			12.22	%			13.92	%			13.68	%
Net interest margin (FTE)			3.99	%			4.04	%			4.04	%			4.19	%			4.21	%
FTE adjustment			5,798				4,047				1,965				7,722				5,728
Amortization of intangibles			4,827				3,103				1,550				5,942				4,409
Amortization of intangibles, net of taxes			2,934				1,886				942				3,611				2,679
Average diluted shares outstanding			32,007,135				31,794,363				31,612,900				30,963,546				30,656,882
Cash dividends declared per common share			0.75				0.50				0.25				0.96				0.72
Financial Highlights - Core (non-GAAP)
Core earnings (excludes non-core items) (1)		$	77,031			$	49,285			$	22,532			$	101,409			$	72,658
Diluted core earnings per share (1)			2.41				1.55				0.71				3.28				2.37
Core net interest margin (FTE) (2)			3.79	%			3.79	%			3.80	%			3.83	%			3.86	%
Accretable yield on acquired loans			12,109				9,219				4,427				24,257				17,705
Efficiency ratio (1)			57.25	%			58.40	%			60.92	%			56.32	%			56.62	%
Core return on average assets (1)			1.17	%			1.15	%			1.09	%			1.31	%			1.28	%
Core return on average common equity (1)			8.51	%			8.37	%			7.83	%			9.17	%			8.91	%
Core return on tangible common equity (1)			13.48	%			13.23	%			12.44	%			14.56	%			14.22	%
END OF PERIOD
Book value per share		$	39.03			$	38.31			$	37.30			$	36.80			$	36.69
Tangible book value per share			25.64				24.71				24.51				23.97				23.80
Shares outstanding			32,212,242				32,212,832				31,388,357				31,277,723				31,267,614
Full-time equivalent employees			1,942				1,919				1,876				1,875				1,985
Total number of ATM's			192				197				187				186				186
Total number of financial centers			156				161				151				150				150

 

(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		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2017				2017				2017				2016				2016
($ in thousands, except per share data)
QUARTER-TO-DATE
Net Income		$	28,852			$	23,065			$	22,120			$	26,971			$	23,429
Non-core items
Gain on sale of P&C insurance business			(3,708	)			-				-				-				-
Merger-related costs			752				6,603				524				2,846				1,524
Branch right-sizing			435				(536	)			154				83				43
Tax effect (1)			1,415				(2,379	)			(266	)			(1,149	)			(614	)
Net non-core items			(1,106	)			3,688				412				1,780				953
Core earnings (non-GAAP)		$	27,746			$	26,753			$	22,532			$	28,751			$	24,382
Diluted earnings per share		$	0.89			$	0.72			$	0.70			$	0.85			$	0.76
Non-core items
Gain on sale of P&C insurance business			(0.11	)			-				-				-				-
Merger-related costs			0.02				0.21				0.02				0.09				0.05
Branch right-sizing			0.01				(0.02	)			-				-				-
Tax effect (1)			0.05				(0.07	)			(0.01	)			(0.03	)			(0.02	)
Net non-core items			(0.03	)			0.12				0.01				0.06				0.03
Core earnings (non-GAAP)		$	0.86			$	0.84			$	0.71			$	0.91			$	0.79
YEAR-TO-DATE
Net Income		$	74,037			$	45,185			$	22,120			$	96,790			$	69,819
Non-core items
Gain from early retirement of trust preferred securities			-				-				-				(594	)			(594	)
Gain on sale of P&C insurance business			(3,708	)			-				-				-				-
Merger-related costs			7,879				7,127				524				4,835				1,989
Branch right-sizing			53				(382	)			154				3,359				3,276
Tax effect (1)			(1,230	)			(2,645	)			(266	)			(2,981	)			(1,832	)
Net non-core items			2,994				4,100				412				4,619				2,839
Core earnings (non-GAAP)		$	77,031			$	49,285			$	22,532			$	101,409			$	72,658
Diluted earnings per share		$	2.31			$	1.42			$	0.70			$	3.13			$	2.28
Non-core items
Gain from early retirement of trust preferred securities			-				-				-				(0.02	)			(0.02	)
Gain on sale of P&C insurance business			(0.11	)
Merger-related costs			0.25				0.22				0.02				0.16				0.06
Branch right-sizing			-				(0.01	)			-				0.11				0.11
Tax effect (1)			(0.04	)			(0.08	)			(0.01	)			(0.10	)			(0.06	)
Net non-core items			0.10				0.13				0.01				0.15				0.09
Core earnings (non-GAAP)		$	2.41			$	1.55			$	0.71			$	3.28			$	2.37

 

(1) Effective tax rate of 39.225%, adjusted for non-deductible merger-related costs and deferred tax items on P&C insurance sale.

 

 Page 9   

Simmons First National Corporation																		SFNC
Reconciliation Of Non-GAAP Financial Measures - End of Period
For the Quarters Ended
(Unaudited)		Sept 30				Jun 30				Mar 31				Dec 31				Sept 30
		2017				2017				2017				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		$	1,257,199			$	1,234,076			$	1,170,889			$	1,151,111			$	1,147,141
Intangible assets:
Goodwill			(375,731	)			(379,437	)			(350,035	)			(348,505	)			(348,769	)
Other intangible assets			(55,501	)			(58,528	)			(51,408	)			(52,959	)			(54,268	)
Total intangibles			(431,232	)			(437,965	)			(401,443	)			(401,464	)			(403,037	)
Tangible common stockholders' equity		$	825,967			$	796,111			$	769,446			$	749,647			$	744,104
Total assets		$	9,535,370			$	9,068,308			$	8,626,638			$	8,400,056			$	8,226,992
Intangible assets:
Goodwill			(375,731	)			(379,437	)			(350,035	)			(348,505	)			(348,769	)
Other intangible assets			(55,501	)			(58,528	)			(51,408	)			(52,959	)			(54,268	)
Total intangibles			(431,232	)			(437,965	)			(401,443	)			(401,464	)			(403,037	)
Tangible assets		$	9,104,138			$	8,630,343			$	8,225,195			$	7,998,592			$	7,823,955
Ratio of equity to assets			13.18	%			13.61	%			13.57	%			13.70	%			13.94	%
Ratio of tangible common equity to tangible assets			9.07	%			9.22	%			9.35	%			9.37	%			9.51	%
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		$	24,994			$	28,409			$	28,941			$	35,462			$	42,899
Allowance for loan losses on acquired loans			391				391				435				954				954
Total credit discount and ALLL on acquired loans		$	25,385			$	28,800			$	29,376			$	36,416			$	43,853
Total loans acquired		$	1,117,424			$	1,253,539			$	1,173,667			$	1,342,099			$	1,502,051
Discount and ALLL on acquired loans to acquired loans			2.27	%			2.30	%			2.50	%			2.71	%			2.92	%
Calculation of Total Allowance and Credit Coverage
Allowance for loan losses		$	42,717			$	41,379			$	37,865			$	36,286			$	34,094
Total credit discount and ALLL on acquired loans			25,385				28,800				29,376				36,416				43,853
Total allowance and credit discount		$	68,102			$	70,179			$	67,241			$	72,702			$	77,947
Total loans		$	6,328,736			$	6,254,155			$	5,806,572			$	5,669,306			$	5,445,140
Total allowance and credit coverage			1.08	%			1.12	%			1.16	%			1.28	%			1.43	%
Calculation of Tangible Book Value per Share
Total common stockholders' equity		$	1,257,199			$	1,234,076			$	1,170,889			$	1,151,111			$	1,147,141
Intangible assets:
Goodwill			(375,731	)			(379,437	)			(350,035	)			(348,505	)			(348,769	)
Other intangible assets			(55,501	)			(58,528	)			(51,408	)			(52,959	)			(54,268	)
Total intangibles			(431,232	)			(437,965	)			(401,443	)			(401,464	)			(403,037	)
Tangible common stockholders' equity		$	825,967			$	796,111			$	769,446			$	749,647			$	744,104
Shares of common stock outstanding			32,212,242				32,212,832				31,388,357				31,277,723				31,267,614
Book value per common share		$	39.03			$	38.31			$	37.30			$	36.80			$	36.69
Tangible book value per common share		$	25.64			$	24.71			$	24.51			$	23.97			$	23.80

 

 Page 10 

Simmons First National Corporation																		SFNC
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date
For the Quarters Ended
(Unaudited)		Sept 30				Jun 30				Mar 31				Dec 31				Sept 30
		2017				2017				2017				2016				2016
($ in thousands)
Calculation of Core Return on Average Assets
Net income		$	28,852			$	23,065			$	22,120			$	26,971			$	23,429
Net non-core items, net of taxes, adjustment			(1,106	)			3,688				412				1,780				953
Core earnings		$	27,746			$	26,753			$	22,532			$	28,751			$	24,382
Average total assets		$	9,175,607			$	8,812,460			$	8,414,470			$	8,308,458			$	7,703,837
Return on average assets			1.25	%			1.05	%			1.07	%			1.29	%			1.21	%
Core return on average assets			1.20	%			1.22	%			1.09	%			1.38	%			1.26	%
Calculation of Return on Tangible Common Equity
Net income		$	28,852			$	23,065			$	22,120			$	26,971			$	23,429
Amortization of intangibles, net of taxes			1,048				944				942				932				913
Total income available to common stockholders		$	29,900			$	24,009			$	23,062			$	27,903			$	24,342
Net non-core items, net of taxes			(1,106	)			3,688				412				1,780				953
Core earnings			27,746				26,753				22,532				28,751				24,382
Amortization of intangibles, net of taxes			1,048				944				942				932				913
Total core income available to common stockholders		$	28,794			$	27,697			$	23,474			$	29,683			$	25,295
Average common stockholders' equity		$	1,255,694			$	1,209,343			$	1,166,473			$	1,156,933			$	1,114,252
Average intangible assets:
Goodwill			(378,387	)			(362,925	)			(348,837	)			(348,597	)			(332,893	)
Other intangibles			(57,232	)			(52,419	)			(52,169	)			(53,646	)			(50,893	)
Total average intangibles			(435,619	)			(415,344	)			(401,006	)			(402,243	)			(383,786	)
Average tangible common stockholders' equity		$	820,075			$	793,999			$	765,467			$	754,690			$	730,466
Return on average common equity			9.12	%			7.65	%			7.69	%			9.27	%			8.36	%
Return on tangible common equity			14.47	%			12.13	%			12.22	%			14.71	%			13.26	%
Core return on average common equity			8.77	%			8.87	%			7.83	%			9.89	%			8.71	%
Core return on tangible common equity			13.93	%			13.99	%			12.44	%			15.65	%			13.78	%
Calculation of Efficiency Ratio (1)
Non-interest expense		$	66,159			$	71,408			$	66,322			$	66,725			$	62,434
Non-core non-interest expense adjustment			(862	)			(6,700	)			(635	)			(2,995	)			(1,742	)
Other real estate and foreclosure expense adjustment			(1,071	)			(517	)			(550	)			(669	)			(1,787	)
Amortization of intangibles adjustment			(1,724	)			(1,553	)			(1,550	)			(1,533	)			(1,503	)
Efficiency ratio numerator		$	62,502			$	62,638			$	63,587			$	61,528			$	57,402
Net-interest income		$	78,819			$	76,812			$	72,380			$	74,328			$	68,063
Non-interest income			36,332				35,744				30,060				36,115				36,876
Non-core non-interest income adjustment			(3,383	)			(632	)			43				(66	)			(175	)
Fully tax-equivalent adjustment			1,751				2,082				1,965				1,994				1,969
(Gain) loss on sale of securities			(3	)			(2,236	)			(63	)			(1,445	)			(315	)
Efficiency ratio denominator		$	113,516			$	111,770			$	104,385			$	110,926			$	106,418
Efficiency ratio (1)			55.06	%			56.04	%			60.92	%			55.47	%			53.94	%
Calculation of Core Net Interest Margin
Net interest income		$	78,819			$	76,812			$	72,380			$	74,328			$	68,063
Fully tax-equivalent adjustment			1,751				2,082				1,965				1,994				1,969
Fully tax-equivalent net interest income			80,570				78,894				74,345				76,322				70,032
Total accretable yield			(2,890	)			(4,792	)			(4,427	)			(6,552	)			(4,928	)
Core net interest income		$	77,680			$	74,102			$	69,918			$	69,770			$	65,104
Average earning assets		$	8,182,292			$	7,841,208			$	7,469,709			$	7,373,236			$	6,825,019
Net interest margin			3.95	%			4.04	%			4.04	%			4.12	%			4.08	%
Core net interest margin			3.81	%			3.79	%			3.80	%			3.76	%			3.79	%
Calculation of Core Loan Yield
Loan interest income		$	77,457			$	73,549			$	68,728			$	70,887			$	65,078
Total accretable yield			(2,890	)			(4,792	)			(4,427	)			(6,552	)			(4,928	)
Core loan interest income		$	74,567			$	68,757			$	64,301			$	64,335			$	60,150
Average loan balance		$	6,261,507			$	5,954,019			$	5,685,585			$	5,484,918			$	5,105,474
Core loan yield			4.78	%			4.63	%			4.59	%			4.67	%			4.69	%

 

(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)		Sept 30				Jun 30				Mar 31				Dec 31				Sept 30
		2017				2017				2017				2016				2016
($ in thousands)
Calculation of Core Return on Average Assets
Net income		$	74,037			$	45,185			$	22,120			$	96,790			$	69,819
Net non-core items, net of taxes, adjustment			2,994				4,100				412				4,619				2,839
Core earnings		$	77,031			$	49,285			$	22,532			$	101,409			$	72,658
Average total assets		$	8,800,675			$	8,613,240			$	8,414,470			$	7,760,233			$	7,575,053
Return on average assets			1.12	%			1.06	%			1.07	%			1.25	%			1.23	%
Core return on average assets			1.17	%			1.15	%			1.09	%			1.31	%			1.28	%
Calculation of Return on Tangible Common Equity
Net income		$	74,037			$	45,185			$	22,120			$	96,790			$	69,819
Amortization of intangibles, net of taxes			2,934				1,886				942				3,611				2,679
Total income available to common stockholders		$	76,971			$	47,071			$	23,062			$	100,401			$	72,498
Net non-core items, net of taxes			2,994				4,100				412				4,619				2,839
Core earnings			77,031				49,285				22,532				101,409				72,658
Amortization of intangibles, net of taxes			2,934				1,886				942				3,611				2,679
Total core income available to common stockholders		$	79,965			$	51,171			$	23,474			$	105,020			$	75,337
Average common stockholders' equity		$	1,210,487			$	1,187,906			$	1,166,473			$	1,105,775			$	1,088,723
Average intangible assets:
Goodwill			(363,383	)			(355,881	)			(348,837	)			(332,974	)			(329,422	)
Other intangibles			(53,941	)			(52,294	)			(52,169	)			(51,710	)			(51,478	)
Total average intangibles			(417,324	)			(408,175	)			(401,006	)			(384,684	)			(380,900	)
Average tangible common stockholders' equity		$	793,163			$	779,731			$	765,467			$	721,091			$	707,823
Return on average common equity			8.18	%			7.67	%			7.69	%			8.75	%			8.57	%
Return on tangible common equity			12.97	%			12.17	%			12.22	%			13.92	%			13.68	%
Core return on average common equity			8.51	%			8.37	%			7.83	%			9.17	%			8.91	%
Core return on tangible common equity			13.48	%			13.23	%			12.44	%			14.56	%			14.22	%
Calculation of Efficiency Ratio (1)
Non-interest expense		$	203,889			$	137,730			$	66,322			$	255,085			$	188,360
Non-core non-interest expense adjustment			(8,197	)			(7,335	)			(635	)			(8,435	)			(5,440	)
Other real estate and foreclosure expense adjustment			(2,177	)			(1,067	)			(550	)			(4,389	)			(3,720	)
Amortization of intangibles adjustment			(4,827	)			(3,103	)			(1,550	)			(5,942	)			(4,409	)
Efficiency ratio numerator		$	188,688			$	126,225			$	63,587			$	236,319			$	174,791
Net-interest income		$	228,011			$	149,192			$	72,380			$	279,206			$	204,878
Non-interest income			102,136				65,804				30,060				139,382				103,267
Non-core non-interest income adjustment			(3,972	)			(589	)			43				(835	)			(769	)
Fully tax-equivalent adjustment			5,798				4,047				1,965				7,722				5,728
(Gain) loss on sale of securities			(2,302	)			(2,299	)			(63	)			(5,848	)			(4,403	)
Efficiency ratio denominator		$	329,671			$	216,155			$	104,385			$	419,627			$	308,701
Efficiency ratio (1)			57.25	%			58.40	%			60.92	%			56.32	%			56.62	%
Calculation of Core Net Interest Margin
Net interest income		$	228,011			$	149,192			$	72,380			$	279,206			$	204,878
Fully tax-equivalent adjustment			5,798				4,047				1,965				7,722				5,728
Fully tax-equivalent net interest income			233,809				153,239				74,345				286,928				210,606
Total accretable yield			(12,109	)			(9,219	)			(4,427	)			(24,257	)			(17,705	)
Core net interest income		$	221,700			$	144,020			$	69,918			$	262,671			$	192,901
Average earning assets		$	7,829,548			$	7,653,177			$	7,469,709			$	6,855,322			$	6,682,683
Net interest margin			3.99	%			4.04	%			4.04	%			4.19	%			4.21	%
Core net interest margin			3.79	%			3.79	%			3.80	%			3.83	%			3.86	%
Calculation of Core Loan Yield
Loan interest income		$	219,734			$	142,277			$	68,728			$	265,652			$	194,765
Total accretable yield			(12,109	)			(9,219	)			(4,427	)			(24,257	)			(17,705	)
Core loan interest income		$	207,625			$	133,058			$	64,301			$	241,395			$	177,060
Average loan balance		$	5,967,036			$	5,819,803			$	5,685,585			$	5,109,492			$	4,984,349
Core loan yield			4.65	%			4.61	%			4.59	%			4.72	%			4.75	%

 

(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 

---