Exhibit 99.1

 

 

 

 

FOR IMMEDIATE RELEASE:   January 21, 2016 

 

SIMMONS FIRST ANNOUNCES 128 PERCENT INCREASE IN CORE EARNINGS

 

Pine Bluff, AR – Simmons First National Corporation (NASDAQ-GS: SFNC) today announced record core earnings of $25.9 million for the fourth quarter of 2015, an increase of $14.5 million, or 127.6 percent, compared with the same quarter last year. Diluted core earnings per share were a record $0.86, an increase of $0.22, or 34.4 percent. Including the non-core items, net income was $23.8 million for the fourth quarter of 2015, an increase of $11.1 million, or 88.2 percent, compared with the same quarter last year. Diluted earnings per share were $0.78, an increase of $0.06, or 8.3 percent.

 

Year-to-date core earnings were $89.6 million, an increase of $50.9 million, or 131.5 percent, compared with the same period of 2014. Year-to-date diluted core earnings per share were $3.18, an increase of $0.89, or 38.9 percent. Year-to-date net income was $74.1 million, or $2.63 diluted earnings per share.

 

“We are very proud of our team for achieving record operating results in 2015. The hard work by all of our associates, especially those new to Simmons, has established a firm base on which to build. We look forward to continued momentum into 2016,” said George A. Makris, Jr., chairman and CEO.

 

Loans

 

Total loans, including those acquired, were $4.9 billion at Dec. 31, 2015, an increase of $2.2 billion, or 79.7 percent, compared with the same period in 2014. Legacy loans (all loans excluding acquired loans) grew $1.2 billion, or 58.1 percent. Acquired loans increased by $990 million, net of discounts.

 

Deposits

 

At Dec. 31, 2015, total deposits were $6.1 billion, an increase of $2.2 billion, or 57.6 percent, compared with the same period in 2014. Total non-time deposits were $4.8 billion, or 78.3 percent of total deposits.

 

Net Interest Income

 

The company’s net interest income for the fourth quarter of 2015 was $73.8 million, an increase of $26.4 million, or 55.6 percent, from the same period of 2014. This increase was driven by growth in the legacy loan portfolio and earning assets acquired through the Community First and Liberty transactions. Net interest margin was 4.54 percent for the quarter ended Dec. 31, 2015, an 11 basis-point decline from the same quarter of 2014.

 

Included in interest income was the yield accretion recognized on acquired loans of $11.1 million and $10.8 million for the fourth quarter of 2015 and 2014, respectively. The company’s core net interest margin, excluding the accretion, was 3.88 percent for the fourth quarter of 2015, a 25 basis-point increase from the same quarter of 2014.

 

 
 

Non-Interest Income

 

Non-interest income for the fourth quarter was $28.9 million, an increase of $7.4 million compared with the fourth quarter of 2014. The increase in non-interest income was primarily due to additional service charge and fee income, mortgage lending and investment banking income resulting from the acquisitions and gains on sale of other real estate and investment securities. Additional trust income resulted from the completed acquisition of Ozark Trust. Losses on FDIC-covered assets decreased by $3.0 million with the elimination of indemnification asset amortization due to the company’s September termination of loss-sharing agreements with the FDIC.

 

Non-Interest Expense

 

Non-interest expense for the fourth quarter of 2015 was $68.0 million, an increase of $21.1 million compared with the same period in 2014. Included in the quarter were $1.3 million of merger-related and branch right-sizing expenses. The company also incurred $2.2 million of costs related to early termination agreements executed during the quarter. The remaining increase in non-interest expense was primarily due to incremental operating expenses of the acquired Community First, Liberty and Ozark Trust franchises, somewhat offset by the company’s ongoing efficiency initiatives.

 

Asset Quality

 

During the third quarter, the company entered into an agreement with the FDIC to terminate all of its remaining loss-sharing agreements. As a result, all FDIC-acquired assets are now classified as non-covered. All acquired loans are recorded at their discounted net present value; therefore, they are excluded from the computations of the asset quality ratios for the legacy loan portfolio, except for their inclusion in total assets.

 

At Dec. 31, 2015, the allowance for loan losses for legacy loans was $31.4 million, with a $1.0 million allowance for acquired loans. The loan discount credit mark was $55.7 million, for a total of $88.1 million of coverage. This equates to a total coverage ratio of 1.8 percent of gross loans. The ratio of credit mark and related allowance to acquired loans was 3.3 percent.

 

The company's allowance for loan losses on legacy loans at Dec. 31, 2015, was 0.97 percent of total loans and 166 percent of non-performing loans. In the legacy portfolio, non-performing loans as a percent of total loans were 0.58 percent. The 2015 year-to-date net charge-off ratio, excluding credit cards, was 0.16 percent, and the year-to-date credit card charge-off ratio was 1.28 percent.

 

Capital

 

At Dec. 31, 2015, common stockholders' equity was $1.1 billion, book value per share was $34.49 and tangible book value per share was $21.97. The company's ratio of stockholders' equity to total assets was 14.22 percent and its ratio of tangible common equity to tangible assets was 9.3 percent.

 

Simmons First National Corporation

 

Simmons First National Corporation is an Arkansas-based financial holding company with total assets of $7.6 billion, conducting financial operations throughout Arkansas, Kansas, Missouri and Tennessee. The company's common stock trades on the NASDAQ Global Select Market under the symbol "SFNC".

 

Conference Call

 

Management will conduct a conference call to review this information beginning at 3 p.m. CST on Thursday, Jan. 21, 2016. Interested persons can listen to this call by dialing toll-free 1-866-298-7926 (United States and Canada only) and asking for the Simmons First National Corporation conference call, conference ID 14837859. In addition, the call will be available live or in recorded version on the company’s website at www.simmonsfirst.com.

 

 
 

Non-GAAP Financial Measures

 

This news release contains financial information determined by methods other than in accordance with generally accepted accounting principles (GAAP). The company’s management uses these non-GAAP financial measures in their analysis of the company’s performance. These measures typically adjust GAAP performance measures to include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant activities or nonrecurring transactions. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the company’s core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

 

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. Forward-looking statements of this type speak only as of the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors, including, but not limited to, economic conditions, credit quality, interest rates, loan demand and changes in the assumptions used in making the forward-looking statements, could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect Simmons First National Corporation’s financial results is included in its Form 10-K filing with the Securities and Exchange Commission.

 

####

 

FOR MORE INFORMATION CONTACT:

J. BURTON HICKS

Senior Vice President and Investor Relations Officer

Simmons First National Corporation

(870) 541-1000

 

 
 

Simmons First National Corporation              SFNC
Consolidated End of Period Balance Sheets               
For the Quarters Ended  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31
(Unaudited)  2015  2015  2015  2015  2014
($ in thousands)               
 ASSETS                         
 Cash and non-interest bearing balances due from banks  $97,656   $106,678   $69,770   $83,424   $54,347 
 Interest bearing balances due from banks   154,606    284,645    173,130    423,986    281,562 
 Federal funds sold   -    9,675    49,570    178,418    - 
     Cash and cash equivalents   252,262    400,998    292,470    685,828    335,909 
 Interest bearing balances due from banks - time   14,107    16,504    24,189    25,000    - 
 Investment securities - held-to-maturity   705,373    776,294    861,596    902,423    777,587 
 Investment securities - available-for-sale   821,407    703,347    747,701    707,383    305,283 
 Mortgage loans held for sale   30,265    15,556    48,094    25,513    21,265 
 Assets held in trading accounts   4,422    6,292    6,481    6,528    6,987 
 Loans:                         
 Legacy loans   3,246,454    2,839,278    2,611,229    2,115,380    2,053,721 
 Allowance for loan losses   (31,351)   (30,380)   (30,567)   (29,183)   (29,028)
 Loans acquired, not covered by FDIC loss share                         
 (net of discount and allowance)   1,672,901    2,013,816    2,108,306    2,418,440    575,980 
 Loans acquired, covered by FDIC loss share                         
 (net of discount and allowance)   -    -    93,121    102,468    106,933 
 Net loans   4,888,004    4,822,714    4,782,089    4,607,105    2,707,606 
 FDIC indemnification asset   -    -    13,020    15,965    22,663 
 Premises and equipment   193,618    190,182    191,335    198,106    122,966 
 Premises held for sale   923    923    6,587    -    6,126 
 Foreclosed assets not covered by FDIC loss share   44,820    48,073    42,666    50,723    44,856 
 Foreclosed assets covered by FDIC loss share   -    -    12,833    12,010    11,793 
 Interest receivable   25,793    26,873    24,129    24,719    16,774 
 Bank owned life insurance   131,536    118,922    118,073    117,296    77,592 
 Goodwill   325,782    314,282    314,282    314,282    108,095 
 Other intangible assets   53,237    44,904    46,605    47,960    22,526 
 Other assets   66,267    73,830    82,208    74,959    55,326 
 Total assets  $7,557,816   $7,559,694   $7,614,358   $7,815,800   $4,643,354 
                          
 LIABILITIES AND STOCKHOLDERS' EQUITY                         
 Deposits:                         
 Non-interest bearing transaction accounts  $1,280,234   $1,212,724   $1,141,285   $1,123,966   $889,260 
 Interest bearing transaction accounts and savings deposits   3,485,845    3,521,840    3,581,049    3,627,870    2,006,271 
 Time deposits less than $100,000   694,262    673,651    719,606    756,978    530,890 
 Time deposits greater than $100,000   625,755    681,585    728,082    765,894    434,297 
         Total deposits   6,086,096    6,089,800    6,170,022    6,274,708    3,860,718 
 Federal funds purchased and securities sold                         
 under agreements to repurchase   99,398    110,437    111,792    111,484    110,586 
 Other borrowings   162,289    173,426    171,321    284,386    114,682 
 Subordinated debentures   60,570    61,906    61,794    61,644    20,620 
 Accrued interest and other liabilities   74,450    78,684    74,324    69,841    42,429 
 Total liabilities   6,482,803    6,514,253    6,589,253    6,802,063    4,149,035 
                          
 Stockholders' equity:                         
 Preferred stock   30,852    30,852    30,852    30,852    - 
 Common stock   303    299    299    299    181 
 Surplus   660,536    642,400    640,895    639,493    156,568 
 Undivided profits   385,987    369,172    354,459    341,238    338,906 
 Accumulated other comprehensive (loss) income:                         
 Unrealized (depreciation) appreciation on AFS securities   (2,665)   2,718    (1,400)   1,855    (1,336)
 Total stockholders' equity   1,075,013    1,045,441    1,025,105    1,013,737    494,319 
 Total liabilities and stockholders' equity  $7,557,816   $7,559,694   $7,614,358   $7,815,800   $4,643,354 

 

Page 1
 

Simmons First National Corporation              SFNC
Consolidated Average Quarter-to-Date Balance Sheets            
For the Quarters Ended  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31
(Unaudited)  2015  2015  2015  2015  2014
($ in thousands)               
 ASSETS                         
 Cash and non-interest bearing balances due from banks  $103,204   $94,695   $69,137   $59,711   $54,485 
 Interest bearing balances due from banks   232,446    206,467    308,756    371,195    299,054 
 Federal funds sold   1,930    19,086    75,922    56,846    6,486 
     Cash and cash equivalents   337,580    320,248    453,815    487,752    360,025 
 Interest bearing balances due from banks - time   15,484    20,251    26,817    8,611    - 
 Investment securities - held-to-maturity   733,349    728,437    922,877    915,405    806,069 
 Investment securities - available-for-sale   773,550    838,596    732,949    370,102    318,879 
 Mortgage loans held for sale   21,294    26,379    37,656    14,655    17,241 
 Assets held in trading accounts   6,150    6,401    6,592    6,782    6,848 
 Loans:                         
 Legacy loans   2,898,987    2,725,254    2,363,305    2,084,551    2,008,550 
 Allowance for loan losses   (31,521)   (31,709)   (31,275)   (30,072)   (28,474)
 Loans acquired, not covered by FDIC loss share                         
 (net of discount and allowance)   1,969,296    2,020,236    2,228,841    1,197,601    620,505 
 Loans acquired, covered by FDIC loss share                         
 (net of discount and allowance)   -    89,578    97,795    104,701    111,618 
 Net loans   4,836,762    4,803,359    4,658,666    3,356,781    2,712,199 
 FDIC indemnification asset   -    10,838    15,448    21,515    24,457 
 Premises and equipment   192,414    191,107    200,875    150,564    117,018 
 Premises held for sale   923    5,775    6,131    6,126    6,794 
 Foreclosed assets not covered by FDIC loss share   46,860    40,273    42,994    44,059    48,745 
 Foreclosed assets covered by FDIC loss share   -    12,345    12,313    11,902    13,964 
 Interest receivable   25,999    24,403    23,260    19,181    17,738 
 Bank owned life insurance   128,339    118,489    117,662    91,760    76,578 
 Goodwill   320,216    314,282    314,060    175,901    109,837 
 Other intangible assets   44,302    45,712    47,302    31,102    17,748 
 Other assets   67,347    100,872    76,275    58,536    50,566 
 Total assets  $7,550,569   $7,607,767   $7,695,692   $5,770,734   $4,704,706 
                          
 LIABILITIES AND STOCKHOLDERS' EQUITY                         
 Deposits:                         
 Non-interest bearing transaction accounts  $1,295,713   $1,121,078   $1,088,474   $946,979   $895,470 
 Interest bearing transaction accounts and savings deposits   3,442,857    3,600,930    3,621,060    2,601,046    2,010,827 
 Time deposits less than $100,000   689,368    694,872    739,748    573,867    545,986 
 Time deposits greater than $100,000   649,048    703,056    748,460    580,625    458,117 
         Total deposits   6,076,986    6,119,936    6,197,742    4,702,517    3,910,400 
 Federal funds purchased and securities sold                         
 under agreements to repurchase   108,389    109,311    116,258    121,568    117,661 
 Other borrowings   167,167    197,832    179,080    183,953    121,691 
 Subordinated debentures   61,697    61,851    62,981    35,686    20,620 
 Accrued interest and other liabilities   73,768    74,696    70,312    43,825    38,869 
 Total liabilities   6,488,007    6,563,626    6,626,373    5,087,549    4,209,241 
                          
 Stockholders' equity:                         
 Preferred stock   30,852    30,852    30,885    10,970    - 
 Common stock   301    299    299    223    180 
 Surplus   651,824    641,738    640,172    328,830    155,672 
 Undivided profits   379,064    371,291    396,609    343,973    341,042 
 Accumulated other comprehensive income (loss):                         
 Unrealized appreciation (depreciation) on AFS securities   521    (39)   1,354    (811)   (1,429)
 Total stockholders' equity   1,062,562    1,044,141    1,069,319    683,185    495,465 
 Total liabilities and stockholders' equity  $7,550,569   $7,607,767   $7,695,692   $5,770,734   $4,704,706 

 

Page 2
 

Simmons First National Corporation              SFNC
Consolidated Statements of Income - Quarter-to-Date               
For the Quarters Ended  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31
(Unaudited)  2015  2015  2015  2015  2014
($ in thousands, except per share data)               
 INTEREST INCOME                         
    Loans  $70,511   $76,432   $70,438   $50,986   $45,248 
    Federal funds sold   10    15    73    29    13 
    Investment securities   8,350    8,335    8,050    5,879    5,325 
    Mortgage loans held for sale   237    291    375    148    188 
    Assets held in trading accounts   6    4    4    3    4 
    Interest bearing balances due from banks   225    122    229    210    167 
            TOTAL INTEREST INCOME   79,339    85,199    79,169    57,255    50,945 
 INTEREST EXPENSE                         
    Time deposits   1,858    1,936    2,064    1,596    1,470 
    Other deposits   2,105    2,222    2,131    1,348    872 
    Federal funds purchased and securities                         
      sold under agreements to repurchase   60    55    57    64    61 
    Other borrowings   1,084    1,812    1,151    1,051    992 
    Subordinated debentures   481    498    559    234    160 
            TOTAL INTEREST EXPENSE   5,588    6,523    5,962    4,293    3,555 
 NET INTEREST INCOME   73,751    78,676    73,207    52,962    47,390 
    Provision for loan losses   3,230    1,615    3,006    1,171    3,607 
 NET INTEREST INCOME AFTER PROVISION                         
    FOR LOAN LOSSES   70,521    77,061    70,201    51,791    43,783 
 NON-INTEREST INCOME                         
    Trust income   2,725    2,215    2,070    2,251    2,182 
    Service charges on deposit accounts   8,104    8,488    8,031    6,363    6,552 
    Other service charges and fees   1,877    3,089    3,130    1,827    1,083 
    Mortgage lending income   2,298    3,446    3,449    2,262    1,457 
    Investment banking income   784    663    593    894    451 
    Debit and credit card fees   7,647    6,879    6,486    5,648    5,653 
    Bank owned life insurance income   614    748    746    572    727 
    Gain on sale of securities, net   305    40    -    (38)   (12)
    Net (loss) gain on assets covered by FDIC loss-share agreements   -    (9,085)   (3,056)   (2,671)   (3,013)
    Other income   4,518    7,006    3,863    1,390    6,424 
            TOTAL NON-INTEREST INCOME   28,872    23,489    25,312    18,498    21,504 
 NON-INTEREST EXPENSE                         
    Salaries and employee benefits   39,746    37,417    35,475    26,771    25,126 
    Occupancy expense, net   3,418    4,812    5,051    3,557    2,494 
    Furniture and equipment expense   3,731    4,202    3,241    3,268    2,732 
    Other real estate and foreclosure expense   1,167    2,297    1,017    381    1,395 
    Deposit insurance   1,222    1,013    1,096    870    724 
    Merger-related costs   1,237    857    1,247    10,419    1,218 
    Other operating expenses   17,508    17,314    18,041    12,106    13,290 
            TOTAL NON-INTEREST EXPENSE   68,029    67,912    65,168    57,372    46,979 
 NET INCOME BEFORE INCOME TAXES   31,364    32,638    30,345    12,917    18,308 
    Provision for income taxes   7,505    10,963    10,250    4,182    5,669 
 NET INCOME   23,859    21,675    20,095    8,735    12,639 
    Preferred stock dividends   77    77    77    26    - 
 NET INCOME AVAILABLE TO COMMON SHAREHOLDERS  $23,782   $21,598   $20,018   $8,709   $12,639 
 BASIC EARNINGS PER SHARE  $0.79   $0.72   $0.67   $0.39   $0.72 
 DILUTED EARNINGS PER SHARE  $0.78   $0.72   $0.67   $0.39   $0.72 

 

Page 3
 

Simmons First National Corporation              SFNC
Consolidated Core Earnings - Quarter-to-Date (non-GAAP)            
For the Quarters Ended  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31
(Unaudited)  2015  2015  2015  2015  2014
($ in thousands, except per share data)               
 INTEREST INCOME                         
    Loans  $70,511   $76,432   $70,438   $50,986   $45,248 
    Federal funds sold   10    15    73    29    13 
    Investment securities   8,350    8,335    8,050    5,879    5,325 
    Mortgage loans held for sale   237    291    375    148    188 
    Assets held in trading accounts   6    4    4    3    4 
    Interest bearing balances due from banks   225    122    229    210    167 
            TOTAL INTEREST INCOME   79,339    85,199    79,169    57,255    50,945 
 INTEREST EXPENSE                         
    Time deposits   1,858    1,936    2,064    1,596    1,470 
    Other deposits   2,105    2,222    2,131    1,348    872 
    Federal funds purchased and securities                         
      sold under agreements to repurchase   60    55    57    64    61 
    Other borrowings   1,084    1,812    1,151    1,051    992 
    Subordinated debentures   481    498    559    234    160 
            TOTAL INTEREST EXPENSE   5,588    6,523    5,962    4,293    3,555 
 NET INTEREST INCOME   73,751    78,676    73,207    52,962    47,390 
    Provision for loan losses   3,230    1,615    3,006    1,171    3,607 
 NET INTEREST INCOME AFTER PROVISION                         
    FOR LOAN LOSSES   70,521    77,061    70,201    51,791    43,783 
 NON-INTEREST INCOME                         
    Trust income   2,725    2,215    2,070    2,251    2,182 
    Service charges on deposit accounts   8,104    8,488    8,031    6,363    6,552 
    Other service charges and fees   1,877    3,089    3,130    1,827    1,083 
    Mortgage lending income   2,298    3,446    3,449    2,262    1,457 
    Investment banking income   784    663    593    894    451 
    Debit and credit card fees   7,647    6,879    6,486    5,648    5,653 
    Bank owned life insurance income   614    748    746    572    727 
    Gain on sale of securities, net   305    40    -    (38)   (12)
    Net (loss) gain on assets covered by FDIC loss-share agreements   -    (1,609)   (3,056)   (2,671)   (3,013)
    Other income   4,518    4,737    4,396    1,381    1,811 
            TOTAL NON-INTEREST INCOME   28,872    28,696    25,845    18,489    16,891 
 NON-INTEREST EXPENSE                         
    Salaries and employee benefits   37,537    37,336    35,324    26,771    24,241 
    Occupancy expense, net   3,358    4,680    5,013    3,523    2,631 
    Furniture and equipment expense   3,731    4,172    3,209    3,268    2,730 
    Other real estate and foreclosure expense   1,167    2,297    1,017    381    1,395 
    Deposit insurance   1,222    1,013    1,096    870    724 
    Merger-related costs   -    -    -    -    - 
    Other operating expenses   17,508    17,094    16,050    12,097    12,711 
            TOTAL NON-INTEREST EXPENSE   64,523    66,592    61,709    46,910    44,432 
 CORE EARNINGS BEFORE INCOME TAXES (non-GAAP)   34,870    39,165    34,337    23,370    16,242 
    Provision for income taxes   8,880    13,523    11,816    7,644    4,855 
 CORE EARNINGS (non-GAAP)   25,990    25,642    22,521    15,726    11,387 
    Preferred stock dividends   77    77    77    26    - 
 CORE EARNINGS AVAILABLE TO COMMON S/H (non-GAAP)  $25,913   $25,565   $22,444   $15,700   $11,387 
 BASIC CORE EARNINGS PER SHARE (non-GAAP)  $0.86   $0.85   $0.75   $0.71   $0.64 
 DILUTED CORE EARNINGS PER SHARE (non-GAAP)  $0.86   $0.85   $0.75   $0.70   $0.64 

 

Page 4
 

Simmons First National Corporation           SFNC
Consolidated Risk-Based Capital               
For the Quarters Ended  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31
(Unaudited)  2015  2015  2015  2015  2014
($ in thousands)               
Tier 1 capital                         
    Stockholders' equity  $1,075,013   $1,045,441   $1,025,105   $1,013,737   $494,319 
    Trust preferred securities, net allowable   60,570    61,906    61,794    61,410    20,000 
    Disallowed intangible assets, net of deferred tax   (330,089)   (314,735)   (342,590)   (344,140)   (112,545)
    Unrealized loss (gain) on AFS securities   2,665    (2,718)   1,400    (1,855)   1,336 
    Other   -    -    (10,297)   (4,789)   - 
       Total Tier 1 capital   808,159    789,894    735,412    724,363    403,110 
                          
Tier 2 capital                         
    Qualifying unrealized gain on AFS equity securities   -    -    -    -    2 
    Qualifying allowance for loan losses and                         
       reserve for unfunded commitments   35,068    34,097    34,284    32,600    32,073 
       Total Tier 2 capital   35,068    34,097    34,284    32,600    32,075 
       Total risk-based capital  $843,227   $823,991   $769,696   $756,963   $435,185 
                          
Common equity                         
    Tier 1 capital  $808,159   $789,894   $735,412   $724,363   $- 
    Less: Non-cumulative preferred stock   (30,852)   (30,852)   (30,852)   (30,852)   - 
    Less: Trust preferred securities   (60,570)   (61,906)   (61,794)   (61,410)   - 
       Total common equity  $716,737   $697,136   $642,766   $632,101   $- 
                          
 Risk weighted assets  $5,042,611   $4,986,641   $4,714,852   $4,659,065   $3,002,270 
                          
 Adjusted average assets for leverage ratio  $7,218,559   $7,293,113   $7,350,900   $5,428,706   $4,593,924 
                          
Ratios at end of quarter                         
    Equity to assets   14.22%   13.83%   13.46%   12.97%   10.65%
    Tangible common equity to tangible assets   9.27%   9.10%   8.73%   8.32%   8.06%
    Common equity Tier 1 ratio (CET1)   14.21%   13.98%   13.63%   13.57%   - 
    Tier 1 leverage ratio   11.20%   10.83%   10.00%   13.34%   8.77%
    Tier 1 risk-based capital ratio   16.03%   15.84%   15.60%   15.55%   13.43%
    Total risk-based capital ratio   16.72%   16.52%   16.32%   16.25%   14.50%

 

Page 5
 

Simmons First National Corporation           SFNC
Consolidated Loans and Investments               
For the Quarters Ended  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31
(Unaudited)  2015  2015  2015  2015  2014
($ in thousands)               
Legacy Loan Portfolio - End of Period (1)                         
 Consumer                         
    Credit cards  $177,288   $171,701   $174,074   $171,413   $185,380 
    Other consumer   208,380    182,472    160,828    107,486    103,402 
 Total consumer   385,668    354,173    334,902    278,899    288,782 
 Real Estate                         
    Construction   279,740    253,761    199,707    178,929    181,968 
    Single-family residential   696,180    623,089    662,954    507,351    455,563 
    Other commercial   1,229,072    1,037,559    878,109    716,021    714,797 
 Total real estate   2,204,992    1,914,409    1,740,770    1,402,301    1,352,328 
 Commercial                         
    Commercial   500,116    394,422    388,869    324,815    291,820 
    Agricultural   148,563    170,257    141,502    105,228    115,658 
 Total commercial   648,679    564,679    530,371    430,043    407,478 
 Other   7,115    6,017    5,186    4,137    5,133 
       Total Loans  $3,246,454   $2,839,278   $2,611,229   $2,115,380   $2,053,721 
                          
(1) Excludes all acquired loans, including those covered by FDIC loss-share agreements. 
                          
Investment Securities - End of Period                         
 Held-to-Maturity                         
    U.S. Government agencies  $237,139   $285,071   $361,744   $390,625   $418,914 
    Mortgage-backed securities   24,774    25,913    27,146    28,535    29,743 
    State and political subdivisions   440,676    464,245    471,631    482,316    328,310 
    Other securities   2,784    1,065    1,075    947    620 
       Total held-to-maturity   705,373    776,294    861,596    902,423    777,587 
 Available-for-Sale                         
    U.S. Treasury  $3,994   $4,008   $4,005   $4,008   $3,992 
    U.S. Government agencies   120,237    153,576    236,003    346,315    272,816 
    Mortgage-backed securities   647,425    502,344    464,857    312,011    1,572 
    State and political subdivisions   9,874    10,976    10,971    13,452    6,540 
    FHLB stock   7,823    14,275    13,619    15,256    5,126 
    Other securities   32,054    18,168    18,246    16,341    15,237 
       Total available-for-sale   821,407    703,347    747,701    707,383    305,283 
       Total investment securities  $1,526,780   $1,479,641   $1,609,297   $1,609,806   $1,082,870 
       Fair value - HTM investment securities  $713,371   $785,030   $863,349   $913,037   $780,534 
                          
Investment Securities - QTD Average                         
 Taxable securities  $1,043,268   $1,088,597   $1,163,708   $893,946   $782,062 
 Tax exempt securities   463,631    478,436    492,118    391,561    342,886 
    Total investment securities - QTD average  $1,506,899   $1,567,033   $1,655,826   $1,285,507   $1,124,948 

  

Page 6
 

Simmons First National Corporation              SFNC
Consolidated Loans and Credit Coverage               
For the Quarters Ended  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31
(Unaudited)  2015  2015  2015  2015  2014
($ in thousands)               
 LOANS                         
 Legacy loans  $3,246,454   $2,839,278   $2,611,229   $2,115,380   $2,053,721 
 Allowance for loan losses (legacy loans)   (31,351)   (30,380)   (30,567)   (29,183)   (29,028)
 Legacy loans (net of allowance)   3,215,103    2,808,898    2,580,662    2,086,197    2,024,693 
 Loans acquired, not covered by FDIC loss share   1,729,557    2,085,211    2,171,388    2,491,316    621,020 
 Credit discount   (55,702)   (70,441)   (63,082)   (72,876)   (45,040)
 Allowance for loan losses (loans acquired, not covered)   (954)   (954)   -    -    - 
 Loans acquired, not covered (net of discount and allowance)   1,672,901    2,013,816    2,108,306    2,418,440    575,980 
 Loans acquired, covered by FDIC loss share   -    -    114,296    126,629    140,038 
 Credit discount   -    -    (20,221)   (23,207)   (32,151)
 Allowance for loan losses (acquired covered loans)   -    -    (954)   (954)   (954)
 Loans acquired, covered (net of discount and allowance)   -    -    93,121    102,468    106,933 
 Net loans  $4,888,004   $4,822,714   $4,782,089   $4,607,105   $2,707,606 
                          
                          
Loan Coverage Ratios                         
 Allowance for loan losses to legacy loans   0.97%   1.07%   1.17%   1.38%   1.41%
                          
 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)   3.28%   3.42%   3.69%   3.71%   10.27%
                          
 Total allowance and credit coverage (non-GAAP)   1.77%   2.07%   2.34%   2.67%   3.81%

 

 

Page 7
 

Simmons First National Corporation           SFNC
Consolidated Allowance and Asset Quality               
For the Quarters Ended  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31
(Unaudited)  2015  2015  2015  2015  2014
($ in thousands)               
Allowance for Loan Losses (Legacy Loans)                         
 Balance, beginning of quarter  $30,380   $30,567   $29,183   $29,028   $27,076 
 Loans charged off                         
    Credit cards   757    763    802    785    859 
    Other consumer   489    597    366    220    781 
    Real estate   845    109    333    293    200 
    Commercial   654    516    -    245    310 
       Total loans charged off   2,745    1,985    1,501    1,543    2,150 
                          
 Recoveries of loans previously charged off                         
    Credit cards   223    213    241    213    220 
    Other consumer   140    78    187    133    94 
    Real estate   120    25    46    12    56 
    Commercial   3    -    9    169    125 
       Total recoveries   486    316    483    527    495 
    Net loans charged off   2,259    1,669    1,018    1,016    1,655 
 Provision for loan losses   3,230    1,482    2,402    1,171    3,607 
 Balance, end of quarter  $31,351   $30,380   $30,567   $29,183   $29,028 
                          
Non-performing assets (1) (2)                         
 Non-performing loans                         
    Nonaccrual loans   17,714    15,305    15,565    14,511    12,038 
    Loans past due 90 days or more   1,191    1,506    1,375    498    961 
       Total non-performing loans   18,905    16,811    16,940    15,009    12,999 
 Other non-performing assets                         
    Foreclosed assets held for sale, not covered   44,820    48,073    42,666    50,723    44,856 
    Other non-performing assets   211    172    242    215    97 
       Total other non-performing assets   45,031    48,245    42,908    50,938    44,953 
          Total non-performing assets  $63,936   $65,056   $59,848   $65,947   $57,952 
 Performing TDRs (troubled debt restructurings)  $2,530   $1,955   $1,959   $2,227   $2,233 
                          
Ratios (1) (2)                         
 Allowance for loan losses to total loans   0.97%   1.07%   1.17%   1.38%   1.41%
 Allowance for loan losses to non-performing loans   166%   181%   180%   194%   223%
 Non-performing loans to total loans   0.58%   0.59%   0.65%   0.71%   0.63%
 Non-performing assets (including performing TDRs)                         
   to total assets   0.88%   0.89%   0.81%   0.87%   1.30%
 Non-performing assets to total assets   0.85%   0.86%   0.79%   0.84%   1.25%
 Annualized net charge offs to total loans   0.31%   0.24%   0.17%   0.20%   0.33%
 Annualized net credit card charge offs to                         
   total credit card loans   1.22%   1.26%   1.31%   1.32%   1.41%
 Annualized net charge offs to total loans                         
   (excluding credit cards)   0.25%   0.17%   0.08%   0.09%   0.22%

 

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

 

Page 8
 

Simmons First National Corporation           SFNC
Consolidated - Net Interest Income Analysis            
For the Quarters Ended  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31
(Unaudited)  2015  2015  2015  2015  2014
                
ASSETS                         
                          
Earning Assets                         
   Interest bearing balances due from banks   0.36%   0.23%   0.30%   0.23%   0.22%
   Investment securities   2.77%   2.65%   2.50%   2.44%   2.49%
   Mortgage loans held for sale   4.42%   4.38%   3.99%   4.10%   4.33%
   Assets held in trading accounts   0.39%   0.25%   0.24%   0.18%   0.23%
   Loans, including acquired loans   5.75%   6.27%   6.03%   6.11%   6.55%
      Total interest earning assets   4.87%   5.20%   4.82%   4.68%   4.98%
                          
LIABILITIES                         
                          
Interest bearing liabilities                         
   Interest bearing transaction and                         
     savings accounts   0.24%   0.24%   0.24%   0.21%   0.17%
   Time deposits   0.55%   0.55%   0.56%   0.56%   0.58%
      Total interest bearing deposits   0.33%   0.33%   0.33%   0.32%   0.31%
   Federal funds purchased and securities                         
     sold under agreement to repurchase   0.22%   0.20%   0.20%   0.21%   0.21%
   Other borrowings   2.57%   3.63%   2.58%   2.32%   3.23%
   Subordinated debentures   3.09%   3.19%   3.56%   2.66%   3.08%
      Total interest bearing liabilities   0.43%   0.48%   0.44%   0.42%   0.43%
                          
NET INTEREST MARGIN/SPREAD                         
                          
   Net interest spread   4.44%   4.72%   4.38%   4.26%   4.55%
   Net interest margin - quarter-to-date   4.54%   4.82%   4.47%   4.34%   4.65%
   Net interest margin - year-to-date   4.57%   4.58%   4.42%   4.34%   4.47%

  

Page 9
 

Simmons First National Corporation           SFNC
Consolidated - Selected Financial Data               
For the Quarters Ended  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31
(Unaudited)  2015  2015  2015  2015  2014
($ in thousands, except share data)               
QUARTER-TO-DATE                         
Financial Highlights - Core (non-GAAP)                         
 Core earnings (excludes nonrecurring items) (1)  $25,913   $25,565   $22,444   $15,700   $11,387 
 Diluted core earnings per share (1)   0.86    0.85    0.75    0.70    0.64 
 Core net interest margin (FTE) (2)   3.88%   3.93%   3.87%   3.55%   3.63%
 Core efficiency ratio (1)   59.35%   57.54%   58.51%   62.24%   64.32%
 Core return on average assets (1)   1.36%   1.33%   1.17%   1.10%   0.96%
 Core return on average common equity (1)   9.96%   10.01%   8.67%   9.47%   9.12%
 Core return on tangible common equity (1)   15.89%   15.99%   13.80%   14.16%   12.65%
Financial Highlights - GAAP                         
 Net Income  $23,782   $21,598   $20,018   $8,709   $12,639 
 Diluted earnings per share   0.78    0.72    0.67    0.39    0.72 
 Return on average assets   1.25%   1.13%   1.04%   0.61%   1.07%
 Return on average common equity   9.15%   8.46%   7.73%   5.25%   10.12%
 Return on tangible common equity   14.62%   13.58%   12.36%   8.07%   14.00%
 Net interest margin (FTE)   4.54%   4.82%   4.47%   4.34%   4.65%
 FTE adjustment   2,185    2,172    2,303    1,857    1,751 
 Amortization of intangibles   1,337    1,265    1,388    899    565 
 Amortization of intangibles, net of taxes   813    769    844    546    343 
 Average earning assets   6,637,002    6,660,434    6,774,693    5,121,838    4,195,250 
 Average interest bearing liabilities   5,118,526    5,367,852    5,467,587    4,096,745    3,274,902 
 Average diluted shares outstanding   30,301,190    30,046,062    29,987,471    22,350,272    18,075,537 
 Cash dividends declared per common share   0.23    0.23    0.23    0.23    0.22 
YEAR-TO-DATE                         
Financial Highlights - Core (non-GAAP)                         
 Core earnings (excludes nonrecurring items) (1)  $89,622   $63,709   $38,144   $15,700   $38,707 
 Diluted core earnings per share (1)   3.18    2.32    1.46    0.70    2.29 
 Core net interest margin (FTE) (2)   3.83%   3.82%   3.74%   3.55%   3.53%
 Core efficiency ratio (1)   59.08%   59.05%   60.08%   62.24%   67.22%
 Core return on average assets (1)   1.25%   1.21%   1.14%   1.10%   0.86%
 Core return on average common equity (1)   9.55%   9.39%   8.99%   9.47%   8.79%
 Core return on tangible common equity (1)   15.05%   14.73%   13.96%   14.16%   11.89%
Financial Highlights - GAAP                         
 Net Income  $74,107   $50,325   $28,727   $8,709   $35,688 
 Diluted earnings per share   2.63    1.83    1.10    0.39    2.11 
 Return on average assets   1.03%   0.96%   0.86%   0.61%   0.80%
 Return on average common equity   7.90%   7.41%   6.77%   5.25%   8.11%
 Return on tangible common equity   12.53%   11.73%   10.63%   8.07%   10.99%
 Net interest margin (FTE)   4.57%   4.58%   4.42%   4.34%   4.47%
 FTE adjustment   8,517    6,332    4,160    1,857    6,840 
 Amortization of intangibles   4,889    3,552    2,287    899    1,979 
 Amortization of intangibles, net of taxes   2,972    2,159    1,390    546    1,203 
 Average earning assets   6,287,141    6,170,521    5,948,265    5,121,838    3,975,903 
 Average interest bearing liabilities   5,000,858    4,977,397    4,782,167    4,096,745    3,176,716 
 Average diluted shares outstanding   28,209,661    27,497,813    26,203,942    22,350,272    16,922,026 
 Cash dividends declared per common share   0.92    0.69    0.46    0.23    0.88 
END OF PERIOD                         
 Book value per share  $34.49   $33.89   $33.26   $32.93   $27.38 
 Tangible book value per share   21.97    21.89    21.19    20.79    20.15 
 Shares outstanding   30,278,432    29,939,698    29,894,903    29,850,034    18,052,488 
 Full-time equivalent employees   1,946    1,967    2,043    2,076    1,338 
 Total number of ATM's   182    183    186    179    124 
 Total number of financial centers   149    149    152    164    109 

 

(1)Core earnings excludes nonrecurring items, which is a non-GAAP measurement
(2)Excludes accretable yield adjustment on loans, which is a non-GAAP measurement

  

Page 10
 

Simmons First National Corporation           SFNC
Consolidated - Reconciliation of Core Earnings (non-GAAP)         
For the Quarters Ended  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31
(Unaudited)  2015  2015  2015  2015  2014
($ in thousands, except per share data)               
QUARTER-TO-DATE                         
 Net Income  $23,782   $21,598   $20,018   $8,709   $12,639 
 Nonrecurring items                         
Accelerated vesting on retirement agreements   2,209    -    -    -    - 
Gain on sale of banking operations   -    (2,110)   -    -    - 
Loss on FDIC loss-share termination   -    7,476    -    -    - 
Merger-related costs   1,237    857    1,247    10,419    1,218 
Change-in-control payments   -    -    -    -    885 
Branch right-sizing   60    304    2,745    35    (4,221)
Charter consolidation costs   -    -    -    -    42 
Tax effect (1)   (1,375)   (2,560)   (1,566)   (3,463)   824 
 Net nonrecurring items   2,131    3,967    2,426    6,991    (1,252)
 Core earnings (non-GAAP)  $25,913   $25,565   $22,444   $15,700   $11,387 
                          
 Diluted earnings per share  $0.78   $0.72   $0.67   $0.39   $0.72 
 Nonrecurring items                         
Accelerated vesting on retirement agreements   0.08    -    -    -    - 
Gain on sale of banking operations   -    (0.07)   -    -    - 
Loss on FDIC loss-share termination   -    0.25    -    -    - 
Merger-related costs   0.05    0.03    0.04    0.47    0.07 
Change-in-control payments   -    -    -    -    0.05 
Branch right-sizing   -    0.01    0.09    -    (0.24)
Charter consolidation costs   -    -    -    -    - 
Tax effect (1)   (0.05)   (0.09)   (0.05)   (0.16)   0.04 
 Net nonrecurring items   0.08    0.13    0.08    0.31    (0.08)
 Core earnings (non-GAAP)  $0.86   $0.85   $0.75   $0.70   $0.64 
                          
YEAR-TO-DATE                         
 Net Income  $74,107   $50,325   $28,727   $8,709   $35,688 
 Nonrecurring items                         
Accelerated vesting on retirement agreements   2,209    -    -    -    - 
Gain on sale of merchant services   -    -    -    -    (1,000)
Gain on sale of banking operations   (2,110)   (2,110)   -    -    - 
Loss on FDIC loss-share termination   7,476    7,476    -    -    - 
Merger-related costs   13,760    12,523    11,666    10,419    7,470 
Change-in-control payments   -    -    -    -    885 
Branch right-sizing   3,144    3,084    2,780    35    (3,059)
Charter consolidation costs   -    -    -    -    652 
Tax effect (1)   (8,964)   (7,589)   (5,029)   (3,463)   (1,929)
 Net nonrecurring items   15,515    13,384    9,417    6,991    3,019 
 Core earnings (non-GAAP)  $89,622   $63,709   $38,144   $15,700   $38,707 
                          
 Diluted earnings per share  $2.63   $1.83   $1.10   $0.39   $2.11 
 Nonrecurring items                         
Accelerated vesting on retirement agreements   0.08    -    -    -    - 
Gain on sale of merchant services   -    -    -    -    (0.06)
Gain on sale of banking operations   (0.07)   (0.07)   -    -    - 
Loss on FDIC loss-share termination   0.27    0.27    -    -    - 
Merger-related costs   0.49    0.46    0.45    0.47    0.44 
Change-in-control payments   -    -    -    -    0.05 
Branch right-sizing   0.11    0.11    0.11    -    (0.16)
Charter consolidation costs   -    -    -    -    0.04 
Tax effect (1)   (0.33)   (0.28)   (0.20)   (0.16)   (0.13)
 Net nonrecurring items   0.55    0.49    0.36    0.31    0.18 
 Core earnings (non-GAAP)  $3.18   $2.32   $1.46   $0.70   $2.29 

 

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

 

Page 11

 

 


The following information was filed by Simmons First National Corp (SFNC) on Thursday, January 21, 2016 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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