Exhibit 99.1

 

 

 

For Immediate Release: July 19, 2017

 

Simmons Reports 2017 Second Quarter Earnings

 

Pine Bluff, AR – Simmons First National Corp. (NASDAQ-GS: SFNC) today announced net income available to common shareholders of $23.1 million, or $0.72 per diluted share, for the quarter ended June 30, 2017, compared to $22.9 million, or $0.75 per diluted share, for the quarter ended June 30, 2016. Included in second quarter 2017 results were $3.7 million in net after-tax merger-related and branch right-sizing costs. Excluding the impact of these items, core earnings were $26.8 million, or $0.84 per diluted share, for the quarter ended June 30, 2017, compared to $25.1 million, or $0.82 per diluted share, for the quarter ended June 30, 2016. Year-to-date net income was $45.2 million, or $1.42 diluted core earnings per share. Excluding $4.1 million in net after-tax merger-related and branch right-sizing costs, year-to-date core earnings were $49.3 million, or $1.55 diluted core earnings per share.

 

On May 15, 2017, Simmons First National Corp. completed the acquisition of Hardeman County Investment Company, Inc., headquartered in Jackson, Tenn., including its wholly-owned bank subsidiary, First South Bank. The systems conversion will take place on September 5, 2017, at which time the First South Bank will be merged into Simmons Bank.

 

“We welcome our newest associates from the First South Bank merger into the Simmons family. We look forward to continued growth in our Tennessee markets,” said George A. Makris Jr., Chairman and CEO of Simmons First National Corp. “We are also very excited about our previously announced mergers with Southwest Bancorp, Inc. (Bank SNB) and First Texas BHC, Inc. (Southwest Bank) and the new and attractive markets they serve.”

 

“We had solid results in the second quarter. Our loan growth continues to be strong. We are experiencing some upward pressure on cost of funds which is currently prohibiting an expansion in the net interest margin. We continue to expand our risk management programs in anticipation of surpassing $10 billion in assets within the next few months. All-in-all, we feel we are well-prepared for continued growth both organically and through acquisitions,” Makris said.

 

Selected Highlights:  2nd Qtr 2017  1st Qtr 2017  2nd Qtr 2016
          
Net income  $23.1 million  $22.1 million  $22.9 million
Diluted earnings per share  $.72  $.70  $.75
Return on avg assets  1.05%  1.07%  1.22%
Return on avg common equity  7.65%  7.69%  8.48%
Return on tangible common equity  12.13%  12.22%  13.52%
Net interest margin(1)  4.04%  4.04%  4.14%
          
Core earnings(2)  $26.8 million  $22.5 million  $25.1 million
Diluted core earnings per share(2)  $.84  $.71  $.82
Core return on avg assets(2)  1.22%  1.09%  1.34%
Core return on avg common equity(2)  8.87%  7.83%  9.29%
Core return on tangible common equity(2)  13.99%  12.44%  14.76%
Core net interest margin(1)(2)  3.79%  3.80%  3.86%
          
Efficiency ratio  56.04%  60.92%  57.33%

 

(1)Fully tax equivalent.
(2)Core earnings excludes non-core items, which is a non-GAAP measurement.

 

 

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

 
 

 

Loans

 

Total loans, including those acquired, were $6.2 billion at June 30, 2017, an increase of $1.2 billion, or 24.2% from June 30, 2016. Legacy loans (all loans excluding acquired loans) were $5.0 billion at June 30, 2017, an increase of $1.3 billion, or 34.2% from June 30, 2016. Acquired loans were $1.2 billion at June 30, 2017, a decrease of $63.7 million, or 4.9% from June 30, 2016.

 

On a linked-quarter basis (June 30, 2017 compared to March 31, 2017), total loans increased $448 million, or 7.8%. The increase was due to:

 

·$253 million increase from loans acquired from the First South Bank acquisition
·$26 million decrease in liquidating portfolio (indirect lending and consumer finance)
·$35 million increase from participations purchased from Southwest Bank
·$270 million in legacy loan growth (strong growth in Springfield, Northwest Arkansas, Kansas City, St. Louis and Little Rock)
·$84 million decrease in the existing acquired loan portfolio due to migration (acquired to legacy), normal loan paydowns and loan sales

 

Deposits

 

At June 30, 2017, total deposits were $7.1 billion, an increase of $1.1 billion, or 17.8%, compared with the same period in 2016. The majority of this increase is from deposits acquired in acquisitions. Total non-time deposits were $5.8 billion, an increase of $1.0 billion, or 20.1% compared to the same period in 2016, and comprised 82% of total deposits.

 

Net Interest Income

 

The Company’s net interest income for the second quarter of 2017 was $76.8 million, an increase of $10.2 million, or 15.4%, from the same period of 2016. Included in interest income was the yield accretion recognized on acquired loans of $4.8 million and $4.7 million for the second quarter of 2017 and 2016, respectively. Net interest margin was 4.04% for the quarter ended June 30, 2017, a 10 basis point decline from the same quarter of 2016. The Company’s core net interest margin, excluding the accretion, was 3.79% for the second quarter of 2017, a 7 basis point decline from June 30, 2016 and a 1 basis point decrease from March 31, 2017. Cost of interest bearing deposits were 0.36% for the second quarter of 2017, a 4 basis point increase from June 30, 2016 and a 3 basis point increase from March 31, 2017.

 

Provision for Loan Losses

 

Provision for loan losses for the second quarter of 2017 was $7.0 million, an increase of $2.4 million compared with June 30, 2016. The increase was a result of a provision of $714,000 for acquired loans due to a loan sale during the quarter and a provision due to much higher than expected loan growth during the quarter.

 

Non-Interest Income

 

Non-interest income for the second quarter was $35.7 million, a decrease of $1.1 million compared with the second quarter of 2016. The decrease was driven primarily by the net of the following:

 

·$835,000 decrease in mortgage revenue due to decline in demand in the industry. SBA revenue was flat compared to 2016, but increased $912,000 from the first quarter 2017.
·$544,000 decrease in investment banking revenue, due to the exit from the institutional division of the broker dealer line of business in the third quarter of 2016.
·$1.5 million decrease in gain on sale of securities. During the quarter, the Company sold approximate $150 million in securities to provide liquidity for the strong loan demand. The sale resulted in a $2.2 million pre-tax gain.
·Trust income, service charges on deposits and debit card fees increased from organic growth and the impact from our recent acquisitions.

 

 
 

 

Non-Interest Expense

 

Non-interest expense for the second quarter of 2017 was $71.4 million, an increase of $7.3 million compared to the second quarter of 2016. Included in this quarter were $6.7 million of merger-related expenses and branch rightsizing costs. Excluding these expenses, core non-interest expense was $64.7 million.

 

Included in the second quarter of 2017 expenses were operating expenses related to the additions of First South Bank which closed during the quarter and Citizens Bank which closed in September 2016. The increase in other operating expense was primarily driven by increased professional services. Professional services increased $1 million, which was primarily related to the continued preparations for crossing the $10 billion asset threshold. The efficiency ratio for the second quarter was 56.04%.

 

Asset Quality

 

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

 

At June 30, 2017, the allowance for loan losses for legacy loans was $41.4 million. The Company's allowance for loan losses on legacy loans at June 30, 2017 was 0.83% of total loans and 72% of non-performing loans. In the legacy portfolio, non-performing loans as a percent of total loans were 1.15%.

 

The allowance for loan losses for acquired loans was $391,000 and the acquired loan discount credit mark was $28.4 million. The allowances for loan losses and credit marks provide a total of $70.2 million of coverage, which equates to a total coverage ratio of 1.1% of gross loans. The ratio of credit mark and related allowance to acquired loans was 2.3%.

 

The 2017 annualized net charge-off ratio was 21 basis points. Excluding credit cards, the net charge-off ratio was 15 basis points.

 

Loan Sale

 

During the quarter, 35 classified loans were sold with a discounted principal balance of $13.8 million, which included $7.3 million of legacy loans and $6.5 million of acquired loans. The acquired loan portion of the sale resulted in a benefit of $1.4 million accretion income and a $714,000 increase in provision expense for acquired loans, resulting in a net benefit of approximately $700,000.

 

Capital

 

At June 30, 2017, common stockholders' equity was $1.2 billion, book value per share was $38.31 and tangible book value per share was $24.71. The Company's ratio of stockholders' equity to total assets was 13.6% and its ratio of tangible common equity to tangible assets was 9.2%. Regulatory tier 1 leverage ratio was 10.8% and regulatory total risk-based capital ratio was 13.7%.

 

Pending Acquisition Update

 

The Company previously announced the acquisition of Southwest Bancorp, Inc. (NASDAQ-GS: OKSB) in Stillwater, OK and First Texas BHC, Inc. in Ft. Worth, TX. The merger applications for these transactions were filed on July 14, 2017. Conversion and integration plans are in process. Subject to regulatory approval and the satisfaction of other closing conditions, the Company anticipates a closing date as early as October 2017 or as late as January 2018.

 

 
 

 

Simmons First National Corporation

 

Simmons First National Corp. is a financial holding company, headquartered in Pine Bluff, Ark., with total assets of $9.1 billion conducting financial operations throughout Arkansas, Kansas, Missouri and Tennessee. The Company, through its subsidiaries, offers comprehensive financial solutions delivered with a client-centric approach. The Company’s common stock trades on the NASDAQ Global Select Market under the symbol “SFNC.”

 

Conference Call

 

Management will conduct a live conference call to review this information beginning at 11 a.m. CDT on Thursday, July 20, 2017. Interested persons can listen to this call by dialing toll-free 1-866-298-7926 (United States and Canada only) and asking for the Simmons First National Corp. conference call, conference ID 40252860. In addition, the call will be available live or in recorded version on the Company’s website at www.simmonsbank.com.

 

Non-GAAP Financial Measures

 

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

 

Forward-Looking Statements

 

Statements in this news release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any forward-looking statement speaks only as of the date of this news release, and we undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors, including, but not limited to, economic conditions, credit quality, interest rates, loan demand, changes in the assumptions used in making the forward-looking statements, and the Company’s ability to obtain regulatory approvals and meet other closing conditions associated with the above-described mergers and acquisitions could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect Simmons First National Corp.’s financial results is included in its Form 10-K filing with the Securities and Exchange Commission.

 

####

 

 

FOR MORE INFORMATION CONTACT:

DAVID W. GARNER

EVP and Investor Relations Officer

Simmons First National Corporation

(870) 541-1000

 

 
 

 

Simmons First National Corporation              SFNC
Consolidated End of Period Balance Sheets               
For the Quarters Ended  Jun 30  Mar 31  Dec 31  Sep 30  Jun 30
(Unaudited)  2017  2017  2016  2016  2016
($ in thousands)               
 ASSETS                         
 Cash and non-interest bearing balances due from banks  $127,600   $103,875   $117,007   $112,572   $96,037 
 Interest bearing balances due from banks   212,547    201,406    168,652    324,951    151,570 
 Federal funds sold   4,500    -    -    17,000    3,000 
 Cash and cash equivalents   344,647    305,281    285,659    454,523    250,607 
 Interest bearing balances due from banks - time   6,057    4,563    4,563    4,393    9,781 
 Investment securities - held-to-maturity   419,003    431,176    462,096    496,594    632,154 
 Investment securities - available-for-sale   1,190,600    1,257,813    1,157,354    1,024,206    821,372 
 Mortgage loans held for sale   16,266    9,754    27,788    28,069    30,529 
 Assets held in trading accounts   50    55    41    2,969    7,321 
 Loans:                         
 Legacy loans   5,000,572    4,632,905    4,327,207    3,943,089    3,725,422 
 Allowance for loan losses   (41,379)   (37,865)   (36,286)   (34,094)   (33,523)
 Loans acquired, net of discount and allowance   1,224,739    1,144,291    1,305,683    1,458,198    1,288,435 
 Net loans   6,183,932    5,739,331    5,596,604    5,367,193    4,980,334 
 Premises and equipment   230,641    221,880    199,359    192,523    183,362 
 Premises held for sale   -    4,611    6,052    6,732    6,167 
 Foreclosed assets   26,012    26,421    26,895    30,396    30,529 
 Interest receivable   27,337    26,089    27,788    27,390    24,150 
 Bank owned life insurance   148,134    139,439    138,620    138,298    130,943 
 Goodwill   379,437    350,035    348,505    348,769    327,686 
 Other intangible assets   58,528    51,408    52,959    54,268    50,329 
 Other assets   37,664    58,782    65,773    50,669    48,955 
 Total assets  $9,068,308   $8,626,638   $8,400,056   $8,226,992   $7,534,219 
                          
 LIABILITIES AND STOCKHOLDERS' EQUITY                         
 Deposits:                         
 Non-interest bearing transaction accounts  $1,650,986   $1,554,675   $1,491,676   $1,473,420   $1,283,426 
 Interest bearing transaction accounts and savings deposits   4,141,426    3,987,730    3,956,483    3,815,939    3,538,808 
 Time deposits less than $100,000   645,855    653,538    686,780    653,105    643,081 
 Time deposits greater than $100,000   665,268    592,345    600,280    674,917    562,888 
 Total deposits   7,103,535    6,788,288    6,735,219    6,617,381    6,028,203 
 Federal funds purchased and securities sold                         
 under agreements to repurchase   121,419    110,007    115,029    124,289    103,038 
 Other borrowings   474,962    441,074    273,159    215,276    191,827 
 Subordinated debentures   67,312    60,503    60,397    60,290    60,184 
 Accrued interest and other liabilities   67,004    55,877    65,141    62,615    60,256 
 Total liabilities   7,834,232    7,455,749    7,248,945    7,079,851    6,443,508 
                          
 Stockholders' equity:                         
 Common stock   322    314    313    313    304 
 Surplus   714,435    716,564    711,976    710,132    668,306 
 Undivided profits   530,641    468,309    454,034    434,579    417,863 
 Accumulated other comprehensive income (loss):                         
 Unrealized appreciation (depreciation) on AFS securities   (11,322)   (14,298)   (15,212)   2,117    4,238 
 Total stockholders' equity   1,234,076    1,170,889    1,151,111    1,147,141    1,090,711 
 Total liabilities and stockholders' equity  $9,068,308   $8,626,638   $8,400,056   $8,226,992   $7,534,219 

 

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Simmons First National Corporation              SFNC
Consolidated Statements of Income - Quarter-to-Date               
For the Quarters Ended  Jun 30  Mar 31  Dec 31  Sep 30  Jun 30
(Unaudited)  2017  2017  2016  2016  2016
($ in thousands, except per share data)               
 INTEREST INCOME                         
    Loans  $73,549   $68,728   $70,887   $65,078   $63,009 
    Federal funds sold   13    1    11    19    17 
    Investment securities   9,990    9,451    8,700    7,774    8,499 
    Mortgage loans held for sale   145    126    230    299    295 
    Assets held in trading accounts   -    -    3    4    3 
    Interest bearing balances due from banks   201    121    234    244    77 
            TOTAL INTEREST INCOME   83,898    78,427    80,065    73,418    71,900 
 INTEREST EXPENSE                         
    Time deposits   1,832    1,758    2,023    1,767    1,741 
    Other deposits   2,984    2,446    2,032    1,965    2,035 
    Federal funds purchased and securities                         
      sold under agreements to repurchase   92    75    90    59    59 
    Other borrowings   1,559    1,194    1,034    1,048    938 
    Subordinated debentures   619    574    558    516    544 
            TOTAL INTEREST EXPENSE   7,086    6,047    5,737    5,355    5,317 
 NET INTEREST INCOME   76,812    72,380    74,328    68,063    66,583 
    Provision for loan losses   7,023    4,307    4,332    8,294    4,616 
 NET INTEREST INCOME AFTER PROVISION                         
    FOR LOAN LOSSES   69,789    68,073    69,996    59,769    61,967 
 NON-INTEREST INCOME                         
    Trust income   4,113    4,212    4,282    3,873    3,656 
    Service charges on deposit accounts   8,483    8,102    8,666    8,771    7,661 
    Other service charges and fees   2,515    2,197    4,026    3,261    2,718 
    Mortgage and SBA lending income   3,961    2,423    4,580    4,339    4,730 
    Investment banking income   637    690    472    1,131    1,181 
    Debit and credit card fees   8,659    7,934    8,027    7,825    7,688 
    Bank owned life insurance income   859    818    895    606    826 
    Gain on sale of securities, net   2,236    63    1,445    315    3,759 
    Other income   4,281    3,621    3,722    6,755    4,669 
            TOTAL NON-INTEREST INCOME   35,744    30,060    36,115    36,876    36,888 
 NON-INTEREST EXPENSE                         
    Salaries and employee benefits   34,205    35,536    33,797    31,784    33,103 
    Occupancy expense, net   4,868    4,663    4,516    4,690    4,990 
    Furniture and equipment expense   4,550    4,443    4,387    4,272    4,077 
    Other real estate and foreclosure expense   517    589    679    1,849    967 
    Deposit insurance   780    680    89    1,136    1,096 
    Merger-related costs   6,603    524    2,846    1,524    372 
    Other operating expenses   19,885    19,887    20,411    17,179    19,532 
            TOTAL NON-INTEREST EXPENSE   71,408    66,322    66,725    62,434    64,137 
 NET INCOME BEFORE INCOME TAXES   34,125    31,811    39,386    34,211    34,718 
    Provision for income taxes   11,060    9,691    12,415    10,782    11,809 
 NET INCOME  $23,065   $22,120   $26,971   $23,429   $22,909 
 BASIC EARNINGS PER SHARE  $0.72   $0.71   $0.86   $0.77   $0.75 
 DILUTED EARNINGS PER SHARE  $0.72   $0.70   $0.85   $0.76   $0.75 

 

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Simmons First National Corporation           SFNC
Consolidated Risk-Based Capital               
For the Quarters Ended  Jun 30  Mar 31  Dec 31  Sep 30  Jun 30
(Unaudited)  2017  2017  2016  2016  2016
($ in thousands)               
Tier 1 capital                         
    Stockholders' equity  $1,234,076   $1,170,889   $1,151,111   $1,147,141   $1,090,711 
    Trust preferred securities, net allowable   67,312    60,503    60,397    60,290    60,184 
    Disallowed intangible assets, net of deferred tax   (406,990)   (361,944)   (354,028)   (354,582)   (334,395)
    Unrealized loss (gain) on AFS securities   11,322    14,298    15,212    (2,117)   (4,238)
    Other   -    -    15    -    - 
       Total Tier 1 capital   905,720    883,746    872,707    850,732    812,262 
                          
Tier 2 capital                         
    Qualifying unrealized gain on AFS equity securities   1    2    -    -    - 
    Qualifying allowance for loan losses and                         
       reserve for unfunded commitments   45,369    41,303    40,241    38,050    37,240 
       Total Tier 2 capital   45,370    41,305    40,241    38,050    37,240 
       Total risk-based capital  $951,090   $925,051   $912,948   $888,782   $849,502 
                          
Common equity                         
    Tier 1 capital  $905,720   $883,746   $872,707   $850,732   $812,262 
    Less: Trust preferred securities   (67,312)   (60,503)   (60,397)   (60,290)   (60,184)
       Total common equity  $838,408   $823,243   $812,310   $790,442   $752,078 
                          
 Risk weighted assets  $6,925,727   $6,425,150   $6,039,034   $5,724,052   $5,343,355 
                          
 Adjusted average assets for leverage ratio  $8,424,763   $8,076,525   $7,966,681   $7,355,702   $7,185,633 
                          
Ratios at end of quarter                         
    Equity to assets   13.61%   13.57%   13.70%   13.94%   14.48%
    Tangible common equity to tangible assets (1)   9.22%   9.35%   9.37%   9.51%   9.96%
    Common equity Tier 1 ratio (CET1)   12.11%   12.81%   13.45%   13.81%   14.08%
    Tier 1 leverage ratio   10.75%   10.94%   10.95%   11.57%   11.30%
    Tier 1 risk-based capital ratio   13.08%   13.75%   14.45%   14.86%   15.20%
    Total risk-based capital ratio   13.73%   14.40%   15.12%   15.53%   15.90%

 

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

 

 Page 3 
 

 

Simmons First National Corporation           SFNC
Consolidated Loans and Investments               
For the Quarters Ended  Jun 30  Mar 31  Dec 31  Sep 30  Jun 30
(Unaudited)  2017  2017  2016  2016  2016
($ in thousands)               
Legacy Loan Portfolio - End of Period (1)                         
 Consumer                         
    Credit cards  $176,953   $171,947   $184,591   $175,032   $171,468 
    Other consumer   366,136    349,200    303,972    275,947    248,018 
 Total consumer   543,089    521,147    488,563    450,979    419,486 
 Real Estate                         
    Construction   457,896    365,051    336,759    304,082    330,666 
    Single-family residential   1,014,412    957,717    904,245    841,958    785,289 
    Other commercial   2,089,707    1,959,677    1,787,075    1,521,132    1,414,663 
 Total real estate   3,562,015    3,282,445    3,028,079    2,667,172    2,530,618 
 Commercial                         
    Commercial   678,932    657,606    639,525    607,738    577,771 
    Agricultural   191,345    141,125    150,378    203,529    187,047 
 Total commercial   870,277    798,731    789,903    811,267    764,818 
 Other   25,191    30,582    20,662    13,671    10,500 
       Total Loans  $5,000,572   $4,632,905   $4,327,207   $3,943,089   $3,725,422 
                          
 (1) Excludes all acquired loans.                         
                          
Investment Securities - End of Period                         
 Held-to-Maturity                         
    U.S. Government agencies  $67,912   $68,895   $76,875   $80,849   $199,505 
    Mortgage-backed securities   17,882    18,743    19,773    21,454    22,612 
    State and political subdivisions   331,249    341,854    362,532    391,495    407,273 
    Other securities   1,960    1,684    2,916    2,796    2,765 
       Total held-to-maturity   419,003    431,176    462,096    496,594    632,155 
 Available-for-Sale                         
    U.S. Treasury  $19,997   $-   $300   $63,985   $4,305 
    U.S. Government agencies   147,619    142,356    137,771    148,781    58,113 
    Mortgage-backed securities   878,205    927,277    868,324    699,748    652,425 
    State and political subdivisions   83,672    130,747    102,943    67,019    64,836 
    FHLB stock   21,772    19,149    12,235    11,235    8,781 
    Other securities   39,335    38,285    35,781    33,438    32,911 
       Total available-for-sale   1,190,600    1,257,814    1,157,354    1,024,206    821,371 
       Total investment securities  $1,609,603   $1,688,990   $1,619,450   $1,520,800   $1,453,526 
       Fair value - HTM investment securities  $425,263   $435,701   $465,960   $508,910   $647,293 
                          
Investment Securities - QTD Average                         
 Taxable securities  $1,244,071   $1,185,794   $1,146,703   $963,150   $1,059,802 
 Tax exempt securities   467,420    455,481    467,757    466,782    443,492 
    Total investment securities - QTD average  $1,711,491   $1,641,275   $1,614,460   $1,429,932   $1,503,294 

 

 Page 4 
 

 

Simmons First National Corporation              SFNC
Consolidated Loans and Credit Coverage               
For the Quarters Ended  Jun 30  Mar 31  Dec 31  Sep 30  Jun 30
(Unaudited)  2017  2017  2016  2016  2016
($ in thousands)               
 LOANS                         
 Legacy loans  $5,000,572   $4,632,905   $4,327,207   $3,943,089   $3,725,422 
 Allowance for loan losses (legacy loans)   (41,379)   (37,865)   (36,286)   (34,094)   (33,523)
 Legacy loans (net of allowance)   4,959,193    4,595,040    4,290,921    3,908,995    3,691,899 
 Loans acquired   1,253,539    1,173,667    1,342,099    1,502,051    1,327,683 
 Credit discount   (28,409)   (28,941)   (35,462)   (42,899)   (38,294)
 Allowance for loan losses (loans acquired)   (391)   (435)   (954)   (954)   (954)
 Loans acquired (net of discount and allowance)   1,224,739    1,144,291    1,305,683    1,458,198    1,288,435 
 Net loans  $6,183,932   $5,739,331   $5,596,604   $5,367,193   $4,980,334 
                          
                          
Loan Coverage Ratios                         
 Allowance for loan losses to legacy loans   0.83%   0.82%   0.84%   0.86%   0.90%
                          
 Discount for credit losses and allowance on loans acquired                         
 to total loans acquired plus discount for credit losses                         
 and allowance on loans acquired (non-GAAP) (1)   2.30%   2.50%   2.71%   2.92%   2.96%
                          
 Total allowance and credit coverage (non-GAAP) (1)   1.12%   1.16%   1.28%   1.43%   1.44%

 

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

 

 Page 5 
 

 

Simmons First National Corporation           SFNC
Consolidated Allowance and Asset Quality               
For the Quarters Ended  Jun 30  Mar 31  Dec 31  Sep 30  Jun 30
(Unaudited)  2017  2017  2016  2016  2016
($ in thousands)               
Allowance for Loan Losses (Legacy Loans)                         
 Balance, beginning of quarter  $37,865   $36,286   $34,094   $33,523   $32,681 
 Loans charged off                         
    Credit cards   901    1,044    935    699    702 
    Other consumer   993    1,174    493    600    489 
    Real estate   1,712    656    167    6,297    824 
    Commercial   349    292    913    284    2,283 
       Total loans charged off   3,955    3,166    2,508    7,880    4,298 
                          
 Recoveries of loans previously charged off                         
    Credit cards   277    236    213    199    253 
    Other consumer   636    690    158    106    149 
    Real estate   216    232    73    55    111 
    Commercial   32    30    28    12    318 
       Total recoveries   1,161    1,188    472    372    831 
    Net loans charged off   2,794    1,978    2,036    7,508    3,467 
 Provision for loan losses   6,308    3,557    4,228    8,079    4,309 
 Balance, end of quarter  $41,379   $37,865   $36,286   $34,094   $33,523 
                          
Non-performing assets (1) (2)                         
 Non-performing loans                         
    Nonaccrual loans   57,127    52,913    39,104    37,392    43,305 
    Loans past due 90 days or more   281    231    299    144    227 
       Total non-performing loans   57,408    53,144    39,403    37,536    43,532 
 Other non-performing assets                         
   Foreclosed assets held for sale (2)   26,012    26,421    26,895    30,396    30,529 
    Other non-performing assets   485    352    471    621    519 
       Total other non-performing assets   26,497    26,773    27,366    31,017    31,048 
          Total non-performing assets  $83,905   $79,917   $66,769   $68,553   $74,580 
 Performing TDRs (troubled debt restructurings)  $8,794   $10,833   $10,998   $13,604   $10,887 
                          
Ratios (1) (2)                         
 Allowance for loan losses to total loans   0.83%   0.82%   0.84%   0.86%   0.90%
 Allowance for loan losses to non-performing loans   72%   71%   92%   91%   77%
 Non-performing loans to total loans   1.15%   1.15%   0.91%   0.95%   1.17%
 Non-performing assets (including performing TDRs)                         
   to total assets   1.02%   1.05%   0.93%   1.00%   1.13%
 Non-performing assets to total assets   0.93%   0.93%   0.79%   0.83%   0.99%
 Annualized net charge offs to total loans   0.23%   0.18%   0.20%   0.82%   0.39%
 Annualized net credit card charge offs to                         
   total credit card loans   1.42%   1.84%   1.66%   1.14%   1.07%
 Annualized net charge offs to total loans                         
   (excluding credit cards)   0.19%   0.11%   0.14%   0.81%   0.36%

 

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

 (2) Includes acquired foreclosed assets held for sale.           

 

 Page 6 
 

 

Simmons First National Corporation                       SFNC
Consolidated - Average Balance Sheet and Net Interest Income Analysis               
For the Quarters Ended                           
(Unaudited)                           
   Three Months Ended
Jun 2017
  Three Months Ended
Mar 2017
  Three Months Ended
Jun 2016
($ in thousands)  Average
Balance
  Income/
Expense
  Yield/
Rate
  Average
Balance
  Income/
Expense
  Yield/
Rate
  Average
Balance
  Income/
Expense
  Yield/
Rate
ASSETS                                             
Earning assets:                                             
Interest bearing balances due from banks  $160,318   $201    0.50%  $131,079   $121    0.37%  $126,114   $77    0.25%
Federal funds sold   3,078    13    1.69%   249    1    1.63%   2,570    17    2.66%
Investment securities - taxable   1,374,261    6,874    2.01%   1,292,441    6,477    2.03%   1,087,179    5,939    2.20%
Investment securities - non-taxable (FTE)   337,230    5,118    6.09%   348,834    4,884    5.68%   416,115    4,203    4.06%
Mortgage loans held for sale   12,250    145    4.75%   11,473    126    4.45%   28,844    295    4.11%
Assets held in trading accounts   52    -    0.00%   48    -    0.00%   6,932    3    0.17%
Loans, including acquired loans   5,954,019    73,629    4.96%   5,685,585    68,783    4.91%   4,957,888    63,041    5.11%
Total interest earning assets (FTE)   7,841,208    85,980    4.40%   7,469,709    80,392    4.36%   6,625,642    73,575    4.47%
Non-earning assets   971,252              944,761              896,491           
Total assets  $8,812,460             $8,414,470             $7,522,133           
                                              
LIABILITIES AND STOCKHOLDERS' EQUITY                    
Interest bearing liabilities:                                             
Interest bearing transaction and savings accounts  $4,069,179   $2,984    0.29%  $3,950,169   $2,446    0.25%  $3,526,278   $2,035    0.23%
Time deposits   1,277,336    1,832    0.58%   1,262,430    1,758    0.56%   1,242,805    1,741    0.56%
Total interest bearing deposits   5,346,515    4,816    0.36%   5,212,599    4,204    0.33%   4,769,083    3,776    0.32%
Federal funds purchased and securities sold under agreement to repurchase   115,101    92    0.32%   111,474    75    0.27%   104,668    59    0.23%
Other borrowings   434,584    1,559    1.44%   345,664    1,194    1.40%   172,268    938    2.19%
Subordinated debentures   64,019    619    3.88%   60,452    574    3.85%   60,132    544    3.64%
Total interest bearing liabilities   5,960,219    7,086    0.48%   5,730,189    6,047    0.43%   5,106,151    5,317    0.42%
Non-interest bearing liabilities:                                             
Non-interest bearing deposits   1,597,550              1,466,501              1,271,878           
Other liabilities   45,348              51,307              57,486           
Total liabilities   7,603,117              7,247,997              6,435,515           
Stockholders' equity   1,209,343              1,166,473              1,086,618           
Total liabilities and stockholders' equity  $8,812,460             $8,414,470             $7,522,133           
Net interest income (FTE)       $78,894             $74,345             $68,258      
Net interest spread (FTE)             3.92%             3.93%             4.05%
Net interest margin (FTE) - quarter-to-date             4.04%             4.04%             4.14%
                                              
Net interest margin (FTE) - year-to-date             4.04%             4.04%             4.28%
                                              
Core net interest margin (FTE) - quarter-to-date (1)             3.79%             3.80%             3.86%
Core loan yield (FTE) - quarter-to-date (1)             4.63%             4.59%             4.73%
                                              
Core net interest margin (FTE) - year-to-date (1)             3.79%             3.80%             3.89%
Core loan yield (FTE) - year-to-date (1)             4.61%             4.59%             4.77%

 

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

 

 Page 7 
 

 

Simmons First National Corporation           SFNC
Consolidated - Selected Financial Data               
For the Quarters Ended  Jun 30  Mar 31  Dec 31  Sep 30  Jun 30
(Unaudited)  2017  2017  2016  2016  2016
($ in thousands, except share data)               
QUARTER-TO-DATE               
Financial Highlights - GAAP                         
Net Income  $23,065   $22,120   $26,971   $23,429   $22,909 
Diluted earnings per share   0.72    0.70    0.85    0.76    0.75 
Return on average assets   1.05%   1.07%   1.29%   1.21%   1.22%
Return on average common equity   7.65%   7.69%   9.27%   8.36%   8.48%
Return on tangible common equity   12.13%   12.22%   14.71%   13.26%   13.52%
Net interest margin (FTE)   4.04%   4.04%   4.12%   4.08%   4.14%
FTE adjustment   2,082    1,965    1,994    1,969    1,675 
Amortization of intangibles   1,553    1,550    1,533    1,503    1,451 
Amortization of intangibles, net of taxes   944    942    932    913    882 
Average diluted shares outstanding   32,025,780    31,612,900    31,592,713    30,843,714    30,452,285 
Cash dividends declared per common share   0.25    0.25    0.24    0.24    0.24 
Financial Highlights - Core (non-GAAP)                         
Core earnings (excludes non-core items) (1)  $26,753   $22,532   $28,751   $24,382   $25,091 
Diluted core earnings per share (1)   0.84    0.71    0.91    0.79    0.82 
Core net interest margin (FTE) (2)   3.79%   3.80%   3.76%   3.79%   3.86%
Accretable yield on acquired loans   4,792    4,427    6,552    4,928    4,700 
Efficiency ratio (1)   56.04%   60.92%   55.47%   53.94%   57.33%
Core return on average assets (1)   1.22%   1.09%   1.38%   1.26%   1.34%
Core return on average common equity (1)   8.87%   7.83%   9.89%   8.71%   9.29%
Core return on tangible common equity (1)   13.99%   12.44%   15.65%   13.78%   14.76%
YEAR-TO-DATE                         
Financial Highlights - GAAP                         
Net Income  $45,185   $22,120   $96,790   $69,819   $46,390 
Diluted earnings per share   1.42    0.70    3.13    2.28    1.52 
Return on average assets   1.06%   1.07%   1.25%   1.23%   1.24%
Return on average common equity   7.67%   7.69%   8.75%   8.57%   8.67%
Return on tangible common equity   12.17%   12.22%   13.92%   13.68%   13.90%
Net interest margin (FTE)   4.04%   4.04%   4.19%   4.21%   4.28%
FTE adjustment   4,047    1,965    7,722    5,728    3,759 
Amortization of intangibles   3,103    1,550    5,942    4,409    2,906 
Amortization of intangibles, net of taxes   1,886    942    3,611    2,679    1,766 
Average diluted shares outstanding   31,794,363    31,612,900    30,963,546    30,656,882    30,438,939 
Cash dividends declared per common share   0.50    0.25    0.96    0.72    0.48 
Financial Highlights - Core (non-GAAP)                         
Core earnings (excludes non-core items) (1)  $49,285   $22,532   $101,409   $72,658   $48,276 
Diluted core earnings per share (1)   1.55    0.71    3.28    2.37    1.59 
Core net interest margin (FTE) (2)   3.79%   3.80%   3.83%   3.86%   3.89%
Accretable yield on acquired loans   9,219    4,427    24,257    17,705    12,777 
Efficiency ratio (1)   58.40%   60.92%   56.32%   56.62%   58.03%
Core return on average assets (1)   1.15%   1.09%   1.31%   1.28%   1.29%
Core return on average common equity (1)   8.37%   7.83%   9.17%   8.91%   9.02%
Core return on tangible common equity (1)   13.23%   12.44%   14.56%   14.22%   14.45%
END OF PERIOD                         
Book value per share  $38.31   $37.30   $36.80   $36.69   $35.86 
Tangible book value per share   24.71    24.51    23.97    23.80    23.43 
Shares outstanding   32,212,832    31,388,357    31,277,723    31,267,614    30,415,980 
Full-time equivalent employees   1,919    1,876    1,875    1,985    1,880 
Total number of ATM's   197    187    186    186    174 
Total number of financial centers   161    151    150    150    140 

 

  (1) Core earnings exclude non-core items, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release.

  (2) Excludes accretable yield adjustment on loans, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release. 

 

 Page 8 
 

 

Simmons First National Corporation           SFNC
Consolidated - Reconciliation of Core Earnings (non-GAAP)         
For the Quarters Ended  Jun 30  Mar 31  Dec 31  Sep 30  Jun 30
(Unaudited)  2017  2017  2016  2016  2016
($ in thousands, except per share data)               
QUARTER-TO-DATE               
Net Income  $23,065   $22,120   $26,971   $23,429   $22,909 
Non-core items                         
Merger-related costs   6,603    524    2,846    1,524    372 
Branch right-sizing   (536)   154    83    43    3,219 
Tax effect (1)   (2,379)   (266)   (1,149)   (614)   (1,409)
Net non-core items   3,688    412    1,780    953    2,182 
Core earnings (non-GAAP)  $26,753   $22,532   $28,751   $24,382   $25,091 
                          
Diluted earnings per share  $0.72   $0.70   $0.85   $0.76   $0.75 
Non-core items                         
Merger-related costs   0.21    0.02    0.09    0.05    0.01 
Branch right-sizing   (0.02)   -    -    -    0.11 
Tax effect (1)   (0.07)   (0.01)   (0.03)   (0.02)   (0.05)
Net non-core items   0.12    0.01    0.06    0.03    0.07 
Core earnings (non-GAAP)  $0.84   $0.71   $0.91   $0.79   $0.82 
                          
YEAR-TO-DATE                         
Net Income  $45,185   $22,120   $96,790   $69,819   $46,390 
Non-core items                         
Gain from early retirement of trust preferred securities   -    -    (594)   (594)   (594)
Merger-related costs   7,127    524    4,835    1,989    465 
Branch right-sizing   (382)   154    3,359    3,276    3,233 
Tax effect (1)   (2,645)   (266)   (2,981)   (1,832)   (1,218)
Net non-core items   4,100    412    4,619    2,839    1,886 
Core earnings (non-GAAP)  $49,285   $22,532   $101,409   $72,658   $48,276 
                          
Diluted earnings per share  $1.42   $0.70   $3.13   $2.28   $1.52 
Non-core items                         
Gain from early retirement of trust preferred securities   -    -    (0.02)   (0.02)   (0.02)
Merger-related costs   0.22    0.02    0.16    0.06    0.02 
Branch right-sizing   (0.01)   -    0.11    0.11    0.11 
Tax effect (1)   (0.08)   (0.01)   (0.10)   (0.06)   (0.04)
Net non-core items   0.13    0.01    0.15    0.09    0.07 
Core earnings (non-GAAP)  $1.55   $0.71   $3.28   $2.37   $1.59 

 

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

 

 Page 9 
 

 

Simmons First National Corporation              SFNC
Reconciliation Of Non-GAAP Financial Measures - End of Period         
For the Quarters Ended               
(Unaudited)  Jun 30  Mar 31  Dec 31  Sept 30  Jun 30
   2017  2017  2016  2016  2016
($ in thousands, except per share data)               
                
Calculation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets      
                          
Total common stockholders' equity  $1,234,076   $1,170,889   $1,151,111   $1,147,141   $1,090,711 
Intangible assets:                         
Goodwill   (379,437)   (350,035)   (348,505)   (348,769)   (327,686)
Other intangible assets   (58,528)   (51,408)   (52,959)   (54,268)   (50,329)
Total intangibles   (437,965)   (401,443)   (401,464)   (403,037)   (378,015)
Tangible common stockholders' equity  $796,111   $769,446   $749,647   $744,104   $712,696 
                          
Total assets  $9,068,308   $8,626,638   $8,400,056   $8,226,992   $7,534,219 
Intangible assets:                         
Goodwill   (379,437)   (350,035)   (348,505)   (348,769)   (327,686)
Other intangible assets   (58,528)   (51,408)   (52,959)   (54,268)   (50,329)
Total intangibles   (437,965)   (401,443)   (401,464)   (403,037)   (378,015)
Tangible assets  $8,630,343   $8,225,195   $7,998,592   $7,823,955   $7,156,204 
                          
Ratio of equity to assets   13.61%   13.57%   13.70%   13.94%   14.48%
Ratio of tangible common equity to tangible assets   9.22%   9.35%   9.37%   9.51%   9.96%
                          
Calculation of Discount for credit losses and allowance on loans acquired to total loans acquired plus discount for credit losses and allowance on loans acquired      
                          
Credit discount on acquired loans  $28,409   $28,941   $35,462   $42,899   $38,294 
Allowance for loan losses on acquired loans   391    435    954    954    954 
Total credit discount and ALLL on acquired loans  $28,800   $29,376   $36,416   $43,853   $39,248 
Total loans acquired  $1,253,539   $1,173,667   $1,342,099   $1,502,051   $1,327,683 
Discount and ALLL on acquired loans to acquired loans   2.30%   2.50%   2.71%   2.92%   2.96%
                          
Calculation of Total Allowance and Credit Coverage                         
                          
Allowance for loan losses  $41,379   $37,865   $36,286   $34,094   $33,523 
Total credit discount and ALLL on acquired loans   28,800    29,376    36,416    43,853    39,248 
Total allowance and credit discount  $70,179   $67,241   $72,702   $77,947   $72,771 
Total loans  $6,254,155   $5,806,572   $5,669,306   $5,445,140   $5,053,105 
Total allowance and credit coverage   1.12%   1.16%   1.28%   1.43%   1.44%
                          
Calculation of Tangible Book Value per Share                         
                          
Total common stockholders' equity  $1,234,076   $1,170,889   $1,151,111   $1,147,141   $1,090,711 
Intangible assets:                         
Goodwill   (379,437)   (350,035)   (348,505)   (348,769)   (327,686)
Other intangible assets   (58,528)   (51,408)   (52,959)   (54,268)   (50,329)
Total intangibles   (437,965)   (401,443)   (401,464)   (403,037)   (378,015)
Tangible common stockholders' equity  $796,111   $769,446   $749,647   $744,104   $712,696 
Shares of common stock outstanding   32,212,832    31,388,357    31,277,723    31,267,614    30,415,980 
Book value per common share  $38.31   $37.30   $36.80   $36.69   $35.86 
Tangible book value per common share  $24.71   $24.51   $23.97   $23.80   $23.43 

 

 Page 10 
 

 

Simmons First National Corporation              SFNC
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date         
For the Quarters Ended               
(Unaudited)  Jun 30  Mar 31  Dec 31  Sept 30  Jun 30
   2017  2017  2016  2016  2016
($ in thousands)               
Calculation of Core Return on Average Assets               
                
Net income  $23,065   $22,120   $26,971   $23,429   $22,909 
Net non-core items, net of taxes, adjustment   3,688    412    1,780    953    2,182 
Core earnings  $26,753   $22,532   $28,751   $24,382   $25,091 
                          
Average total assets  $8,812,460   $8,414,470   $8,308,458   $7,703,837   $7,522,133 
                          
Return on average assets   1.05%   1.07%   1.29%   1.21%   1.22%
Core return on average assets   1.22%   1.09%   1.38%   1.26%   1.34%
                          
Calculation of Return on Tangible Common Equity                         
                          
Net income  $23,065   $22,120   $26,971   $23,429   $22,909 
Amortization of intangibles, net of taxes   944    942    932    913    882 
Total income available to common stockholders  $24,009   $23,062   $27,903   $24,342   $23,791 
                          
Net non-core items, net of taxes   3,688    412    1,780    953    2,182 
Core earnings   26,753    22,532    28,751    24,382    25,091 
Amortization of intangibles, net of taxes   944    942    932    913    882 
Total core income available to common stockholders  $27,697   $23,474   $29,683   $25,295   $25,973 
                          
Average common stockholders' equity  $1,209,343   $1,166,473   $1,156,933   $1,114,252   $1,086,618 
Average intangible assets:                         
Goodwill   (362,925)   (348,837)   (348,597)   (332,893)   (327,686)
Other intangibles   (52,419)   (52,169)   (53,646)   (50,893)   (51,043)
Total average intangibles   (415,344)   (401,006)   (402,243)   (383,786)   (378,729)
Average tangible common stockholders' equity  $793,999   $765,467   $754,690   $730,466   $707,889 
                          
Return on average common equity   7.65%   7.69%   9.27%   8.36%   8.48%
Return on tangible common equity   12.13%   12.22%   14.71%   13.26%   13.52%
Core return on average common equity   8.87%   7.83%   9.89%   8.71%   9.29%
Core return on tangible common equity   13.99%   12.44%   15.65%   13.78%   14.76%
                          
Calculation of Efficiency Ratio (1)                         
                          
Non-interest expense  $71,408   $66,322   $66,725   $62,434   $64,137 
Non-core non-interest expense adjustment   (6,700)   (635)   (2,995)   (1,742)   (3,591)
Other real estate and foreclosure expense adjustment   (517)   (550)   (669)   (1,787)   (967)
Amortization of intangibles adjustment   (1,553)   (1,550)   (1,533)   (1,503)   (1,451)
Efficiency ratio numerator  $62,638   $63,587   $61,528   $57,402   $58,128 
                          
Net-interest income  $76,812   $72,380   $74,328   $68,063   $66,583 
Non-interest income   35,744    30,060    36,115    36,876    36,888 
Non-core non-interest income adjustment   (632)   43    (66)   (175)   - 
Fully tax-equivalent adjustment   2,082    1,965    1,994    1,969    1,675 
(Gain) loss on sale of securities   (2,236)   (63)   (1,445)   (315)   (3,759)
Efficiency ratio denominator  $111,770   $104,385   $110,926   $106,418   $101,387 
                          
Efficiency ratio (1)   56.04%   60.92%   55.47%   53.94%   57.33%
                          
Calculation of Core Net Interest Margin                         
                          
Net interest income  $76,812   $72,380   $74,328   $68,063   $66,583 
Fully tax-equivalent adjustment   2,082    1,965    1,994    1,969    1,675 
Fully tax-equivalent net interest income   78,894    74,345    76,322    70,032    68,258 
                          
Total accretable yield   (4,792)   (4,427)   (6,552)   (4,928)   (4,700)
Core net interest income  $74,102   $69,918   $69,770   $65,104   $63,558 
Average earning assets  $7,841,208   $7,469,709   $7,373,236   $6,825,019   $6,625,642 
                          
Net interest margin   4.04%   4.04%   4.12%   4.08%   4.14%
Core net interest margin   3.79%   3.80%   3.76%   3.79%   3.86%
                          
Calculation of Core Loan Yield                         
                          
Loan interest income  $73,549   $68,728   $70,887   $65,078   $63,009 
Total accretable yield   (4,792)   (4,427)   (6,552)   (4,928)   (4,700)
Core loan interest income  $68,757   $64,301   $64,335   $60,150   $58,309 
Average loan balance  $5,954,019   $5,685,585   $5,484,918   $5,105,474   $4,957,888 
                          
Core loan yield   4.63%   4.59%   4.67%   4.69%   4.73%

 

(1) Efficiency ratio is noninterest expense before foreclosed property expense and amortization of intangibles as a percent of net interest income (fully taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and non-core items.  

 

 Page 11 
 

 

Simmons First National Corporation              SFNC
Reconciliation Of Non-GAAP Financial Measures - Year-to-Date            
For the Quarters Ended               
(Unaudited)  Jun 30  Mar 31  Dec 31  Sept 30  Jun 30
   2017  2017  2016  2016  2016
($ in thousands)               
Calculation of Core Return on Average Assets               
                
Net income  $45,185   $22,120   $96,790   $69,819   $46,390 
Net non-core items, net of taxes, adjustment   4,100    412    4,619    2,839    1,886 
Core earnings  $49,285   $22,532   $101,409   $72,658   $48,276 
                          
Average total assets  $8,613,240   $8,414,470   $7,760,233   $7,575,053   $7,510,657 
                          
Return on average assets   1.06%   1.07%   1.25%   1.23%   1.24%
Core return on average assets   1.15%   1.09%   1.31%   1.28%   1.29%
                          
Calculation of Return on Tangible Common Equity                         
                          
Net income  $45,185   $22,120   $96,790   $69,819   $46,390 
Amortization of intangibles, net of taxes   1,886    942    3,611    2,679    1,766 
Total income available to common stockholders  $47,071   $23,062   $100,401   $72,498   $48,156 
                          
Net non-core items, net of taxes   4,100    412    4,619    2,839    1,886 
Core earnings   49,285    22,532    101,409    72,658    48,276 
Amortization of intangibles, net of taxes   1,886    942    3,611    2,679    1,766 
Total core income available to common stockholders  $51,171   $23,474   $105,020   $75,337   $50,042 
                          
Average common stockholders' equity  $1,187,906   $1,166,473   $1,105,775   $1,088,723   $1,075,957 
Average intangible assets:                         
Goodwill   (355,881)   (348,837)   (332,974)   (329,422)   (327,686)
Other intangibles   (52,294)   (52,169)   (51,710)   (51,478)   (51,771)
Total average intangibles   (408,175)   (401,006)   (384,684)   (380,900)   (379,457)
Average tangible common stockholders' equity  $779,731   $765,467   $721,091   $707,823   $696,500 
                          
Return on average common equity   7.67%   7.69%   8.75%   8.57%   8.67%
Return on tangible common equity   12.17%   12.22%   13.92%   13.68%   13.90%
Core return on average common equity   8.37%   7.83%   9.17%   8.91%   9.02%
Core return on tangible common equity   13.23%   12.44%   14.56%   14.22%   14.45%
                          
Calculation of Efficiency Ratio (1)                         
                          
Non-interest expense  $137,730   $66,322   $255,085   $188,360   $125,931 
Non-core non-interest expense adjustment   (7,335)   (635)   (8,435)   (5,440)   (3,698)
Other real estate and foreclosure expense adjustment   (1,067)   (550)   (4,389)   (3,720)   (1,934)
Amortization of intangibles adjustment   (3,103)   (1,550)   (5,942)   (4,409)   (2,906)
Efficiency ratio numerator  $126,225   $63,587   $236,319   $174,791   $117,393 
                          
Net-interest income  $149,192   $72,380   $279,206   $204,878   $136,814 
Non-interest income   65,804    30,060    139,382    103,267    66,397 
Non-core non-interest income adjustment   (589)   43    (835)   (769)   (594)
Fully tax-equivalent adjustment   4,047    1,965    7,722    5,728    3,759 
(Gain) loss on sale of securities   (2,299)   (63)   (5,848)   (4,403)   (4,088)
Efficiency ratio denominator  $216,155   $104,385   $419,627   $308,701   $202,288 
                          
Efficiency ratio (1)   58.40%   60.92%   56.32%   56.62%   58.03%
                          
Calculation of Core Net Interest Margin                         
                          
Net interest income  $149,192   $72,380   $279,206   $204,878   $136,814 
Fully tax-equivalent adjustment   4,047    1,965    7,722    5,728    3,759 
Fully tax-equivalent net interest income   153,239    74,345    286,928    210,606    140,573 
                          
Total accretable yield   (9,219)   (4,427)   (24,257)   (17,705)   (12,777)
Core net interest income  $144,020   $69,918   $262,671   $192,901   $127,796 
Average earning assets  $7,653,177   $7,469,709   $6,855,322   $6,682,683   $6,611,516 
                          
Net interest margin   4.04%   4.04%   4.19%   4.21%   4.28%
Core net interest margin   3.79%   3.80%   3.83%   3.86%   3.89%
                          
Calculation of Core Loan Yield                         
                          
Loan interest income  $142,277   $68,728   $265,652   $194,765   $129,688 
Total accretable yield   (9,219)   (4,427)   (24,257)   (17,705)   (12,777)
Core loan interest income  $133,058   $64,301   $241,395   $177,060   $116,911 
Average loan balance  $5,819,803   $5,685,585   $5,109,492   $4,984,349   $4,923,787 
                          
Core loan yield   4.61%   4.59%   4.72%   4.75%   4.77%

 

(1) Efficiency ratio is noninterest expense before foreclosed property expense and amortization of intangibles as a percent of net interest income (fully taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and non-core items.  

 

Page 12

 

 

 

 

 

 

 

 


The following information was filed by Simmons First National Corp (SFNC) on Wednesday, July 19, 2017 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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