Exhibit 99.1

 

 

 

For Immediate Release: October 22, 2017

 

SIMMONS REPORTS THIRD QUARTER 2017 EARNINGS

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

 

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

 

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

 

Loans

 

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

 

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

 

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

 

·$30 million decrease in liquidating portfolio (indirect lending and consumer finance)
·$13 million increase from participations purchased from Southwest Bank
·$228 million in net legacy loan growth including $36 million of migrated loans (acquired to legacy)
·$133 million decrease in the existing acquired loan portfolio including migration

 

Deposits

 

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

 

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

 

Net Interest Income

 

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

 

 

 

Non-Interest Income

 

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

 

·$3.7 million gain on sale of property and casualty insurance business lines
·$325,000 loss on the sale of fixed assets
·$1.2 million decrease in mortgage revenue due to decline in demand in the industry
·$451,000 decrease in investment banking revenue, due to the exit from the institutional division of the broker dealer line of business in the third quarter of 2016
·$312,000 decrease in gain on sale of securities
·$2.0 million decrease in other income due to recovery of charged off loans acquired in third quarter of 2016

 

Non-Interest Expense

 

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

 

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

 

Asset Quality

 

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

 

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

 

At September 30, 2017, the allowance for loan losses for legacy loans was $42.7 million. The allowance for loan losses for loans acquired was $391,000 and the acquired loan discount credit mark was $25.0 million. The allowances for loan losses and credit marks provide a total of $68.1 million of coverage, which equates to a total coverage ratio of 1.1% of gross loans. The ratio of credit mark and related allowance to loans acquired was 2.3%.

 

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

 

Foreclosed Assets and Other Real Estate Owned

 

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

 

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

 

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

 

 

Capital

 

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

 

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

 

Simmons First National Corporation

 

Simmons First National Corp. is a financial holding company, headquartered in Pine Bluff, Ark., with total assets of $9.5 billion as of September 30, 2017 and proforma assets of approximately $14.2 billion conducting financial operations throughout Arkansas, Colorado, Kansas, Missouri, Oklahoma, Tennessee and Texas. The Company, through its subsidiaries, offers comprehensive financial solutions delivered with a client-centric approach. The Company’s common stock trades on the NASDAQ Global Select Market under the symbol “SFNC.”

 

Conference Call

 

Management will conduct a live conference call to review this information beginning at 9:30 a.m. CDT on Monday, October 23, 2017. Interested persons can listen to this call by dialing toll-free 1-866-298-7926 (United States and Canada only) and asking for the Simmons First National Corp. conference call, conference ID 84536260. In addition, the call will be available live or in recorded version on the Company’s website at www.simmonsbank.com.

 

Non-GAAP Financial Measures

 

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

 

Forward-Looking Statements

 

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

 

-end-

 

FOR MORE INFORMATION CONTACT:

DAVID W. GARNER

EVP and Investor Relations Officer

Simmons First National Corporation

(870) 541-1000

 

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

 

 Page 1 

 

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

 

 Page 2

 

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

 

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

 

 Page 3 

 

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

 

 Page 4 

 

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

 

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

 

 Page 5 

 

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

 

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

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

 

 Page 6 

 

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

 

   Three Months Ended
Sep 2017
  Three Months Ended
Jun 2017
  Three Months Ended
Sep 2016
($ in thousands)  Average
Balance
  Income/
Expense
  Yield/
Rate
  Average
Balance
  Income/
Expense
  Yield/
Rate
  Average
Balance
  Income/
Expense
  Yield/
Rate
ASSETS                           
Earning assets:                                             
Interest bearing balances due from banks                                             
Federal funds sold   269,111    650    0.96%   163,396    214    0.53%   253,249    263    0.41%
Investment securities - taxable   1,313,333    6,574    1.99%   1,374,261    6,874    2.01%   1,038,437    4,775    1.83%
Investment securities - non-taxable (FTE)   324,901    4,341    5.30%   337,230    5,118    6.09%   391,495    4,926    5.01%
Mortgage loans held for sale   13,388    159    4.71%   12,250    145    4.75%   31,256    299    3.81%
Assets held in trading accounts   52    -    0.00%   52    -    0.00%   5,108    4    0.31%
Loans, including acquired loans   6,261,507    77,511    4.91%   5,954,019    73,629    4.96%   5,105,474    65,120    5.07%
Total interest earning assets (FTE)   8,182,292    89,235    4.33%   7,841,208    85,980    4.40%   6,825,019    75,387    4.39%
Non-earning assets   993,315              971,252              878,818           
Total assets  $9,175,607             $8,812,460             $7,703,837           
                                              
LIABILITIES AND STOCKHOLDERS' EQUITY                                             
Interest bearing liabilities:                                             
Interest bearing transaction and                                             
savings accounts  $4,227,567   $3,920    0.37%  $4,069,179   $2,984    0.29%  $3,645,414   $1,965    0.21%
Time deposits   1,330,889    2,110    0.63%   1,277,336    1,832    0.58%   1,213,895    1,767    0.58%
Total interest bearing deposits   5,558,456    6,030    0.43%   5,346,515    4,816    0.36%   4,859,309    3,732    0.31%
Federal funds purchased and securities                                             
sold under agreement to repurchase   115,583    83    0.28%   115,101    92    0.32%   105,576    59    0.22%
Other borrowings   502,972    1,875    1.48%   434,584    1,559    1.44%   192,453    1,048    2.17%
Subordinated debentures   67,367    677    3.99%   64,019    619    3.88%   60,238    516    3.41%
Total interest bearing liabilities   6,244,378    8,665    0.55%   5,960,219    7,086    0.48%   5,217,576    5,355    0.41%
Non-interest bearing liabilities:                                             
Non-interest bearing deposits   1,613,248              1,597,550              1,322,818           
Other liabilities   62,287              45,348              49,191           
Total liabilities   7,919,913              7,603,117              6,589,585           
Stockholders' equity   1,255,694              1,209,343              1,114,252           
Total liabilities and stockholders' equity  $9,175,607             $8,812,460             $7,703,837           
Net interest income (FTE)       $80,570             $78,894             $70,032      
Net interest spread (FTE)             3.78%             3.92%             3.98%
Net interest margin (FTE) - quarter-to-date             3.91%             4.04%             4.08%
                                              
Net interest margin (FTE) - year-to-date             3.99%             4.04%             4.21%
                                              
Core net interest margin (FTE) - quarter-to-date (1)             3.77%             3.79%             3.79%
Core loan yield (FTE) - quarter-to-date (1)             4.72%             4.63%             4.69%
                                              
Core net interest margin (FTE) - year-to-date (1)             3.79%             3.79%             3.86%
Core loan yield (FTE) - year-to-date (1)             4.65%             4.61%             4.75%

 

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

 

 

Page 7

 

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

 

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

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

 

 Page 8 

 

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

 

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

 

 Page 9   

 

Simmons First National Corporation              SFNC
Reconciliation Of Non-GAAP Financial Measures - End of Period         
For the Quarters Ended               
(Unaudited)  Sept 30  Jun 30  Mar 31  Dec 31  Sept 30
   2017  2017  2017  2016  2016
($ in thousands, except per share data)               
                
Calculation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets
                          
Total common stockholders' equity  $1,257,199   $1,234,076   $1,170,889   $1,151,111   $1,147,141 
Intangible assets:                         
Goodwill   (375,731)   (379,437)   (350,035)   (348,505)   (348,769)
Other intangible assets   (55,501)   (58,528)   (51,408)   (52,959)   (54,268)
Total intangibles   (431,232)   (437,965)   (401,443)   (401,464)   (403,037)
Tangible common stockholders' equity  $825,967   $796,111   $769,446   $749,647   $744,104 
                          
Total assets  $9,535,370   $9,068,308   $8,626,638   $8,400,056   $8,226,992 
Intangible assets:                         
Goodwill   (375,731)   (379,437)   (350,035)   (348,505)   (348,769)
Other intangible assets   (55,501)   (58,528)   (51,408)   (52,959)   (54,268)
Total intangibles   (431,232)   (437,965)   (401,443)   (401,464)   (403,037)
Tangible assets  $9,104,138   $8,630,343   $8,225,195   $7,998,592   $7,823,955 
                          
Ratio of equity to assets   13.18%   13.61%   13.57%   13.70%   13.94%
Ratio of tangible common equity to tangible assets   9.07%   9.22%   9.35%   9.37%   9.51%
                          
Calculation of Discount for credit losses and allowance on loans acquired to total loans acquired plus
discount for credit losses and allowance on loans acquired
                          
Credit discount on acquired loans  $24,994   $28,409   $28,941   $35,462   $42,899 
Allowance for loan losses on acquired loans   391    391    435    954    954 
Total credit discount and ALLL on acquired loans  $25,385   $28,800   $29,376   $36,416   $43,853 
Total loans acquired  $1,117,424   $1,253,539   $1,173,667   $1,342,099   $1,502,051 
Discount and ALLL on acquired loans to acquired loans   2.27%   2.30%   2.50%   2.71%   2.92%
                          
Calculation of Total Allowance and Credit Coverage                         
                          
Allowance for loan losses  $42,717   $41,379   $37,865   $36,286   $34,094 
Total credit discount and ALLL on acquired loans   25,385    28,800    29,376    36,416    43,853 
Total allowance and credit discount  $68,102   $70,179   $67,241   $72,702   $77,947 
Total loans  $6,328,736   $6,254,155   $5,806,572   $5,669,306   $5,445,140 
Total allowance and credit coverage   1.08%   1.12%   1.16%   1.28%   1.43%
                          
Calculation of Tangible Book Value per Share                         
                          
Total common stockholders' equity  $1,257,199   $1,234,076   $1,170,889   $1,151,111   $1,147,141 
Intangible assets:                         
Goodwill   (375,731)   (379,437)   (350,035)   (348,505)   (348,769)
Other intangible assets   (55,501)   (58,528)   (51,408)   (52,959)   (54,268)
Total intangibles   (431,232)   (437,965)   (401,443)   (401,464)   (403,037)
Tangible common stockholders' equity  $825,967   $796,111   $769,446   $749,647   $744,104 
Shares of common stock outstanding   32,212,242    32,212,832    31,388,357    31,277,723    31,267,614 
Book value per common share  $39.03   $38.31   $37.30   $36.80   $36.69 
Tangible book value per common share  $25.64   $24.71   $24.51   $23.97   $23.80 

 

 Page 10 

 

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

 

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

 

 Page 11 

 

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

 

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

 

 Page 12 


The following information was filed by Simmons First National Corp (SFNC) on Monday, October 23, 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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