Exhibit 99.1

 

 

 

For Immediate Release: January 22, 2018

 

SIMMONS REPORTS FOURTH QUARTER 2017 EARNINGS

 

Pine Bluff, AR – Simmons First National Corporation (NASDAQ-GS: SFNC) today announced net income available to common shareholders of $18.9 million, or $0.43 per diluted share, for the quarter ended December 31, 2017, compared to $27.0 million, or $0.85 per diluted share, for the same period in 2016. Included in fourth quarter 2017 results was $14.2 million in merger-related and branch right-sizing costs, a $5.0 million donation to Simmons Foundation and a one-time tax adjustment of $11.5 million.

 

As a result of the “Tax Cuts and Jobs Act” that was signed into law on December 22, 2017, the Company was required to revalue its deferred tax assets and deferred tax liabilities to account for the future impact of lower corporate tax rates on these deferred amounts. The analysis resulted in a one-time non-cash charge to the income statement of $11.5 million.

 

Excluding the net after-tax impact of these items, core earnings were $42.0 million, or $0.97 per diluted share, for the quarter ended December 31, 2017, compared to $28.8 million, or $0.91 per diluted share, for the quarter ended December 31, 2016.

 

Year-to-date net income was $92.9 million, or $2.66 diluted earnings per share. Excluding the net after-tax merger-related and branch right-sizing costs, tax adjustment and the gain on sale of insurance lines recorded in the prior quarter, year-to-date core earnings were $119.0 million, or $3.41 diluted core earnings per share.

 

On October 19, 2017, Simmons First National Corporation 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. The systems conversions are planned during the first half of 2018, at which time the subsidiary banks will be merged into Simmons Bank.

 

“We welcome our newest associates from Bank SNB and Southwest Bank and are pleased with our integration efforts thus far. We look forward to continued growth and profitability in their legacy markets,” said George A. Makris, Jr., chairman and CEO.

 

Makris continued, “The effect of the tax law changes has allowed us the opportunity to consider an increased investment in our associates which will include, among a variety of initiatives, an increase in the profit-sharing component of our 401(k) plan and increased consideration for our high-performing associates; an investment in technology of up to $100 million over 5 years to improve our delivery of products and services to our customers; an investment in our communities as evidenced by our $5 million contribution to our Foundation to support CRA qualified community development grants throughout our footprint; and finally a strategy to provide a return on the investment of our shareholders through retention and deployment of additional capital to grow our business while at the same time increasing the dividend we distribute to our shareholders.

 

“These investments reflect our optimism for Simmons and we believe will help us achieve the growth potential we envision for our company,” said Makris.

 

“Late last week we announced a 2 for 1 stock split which we believe will create investment opportunities for a wide variety of investors. Our retail ownership is approximately 50% and we believe it is a valuable dynamic to have owners as customers and vice-versa. We also announced a 20% increase in our dividend over the previous quarter.”

 

Financial statements, including earnings per share as well as other share-related disclosures, reported after the stock split record date of January 30, 2018, will include the impact of the stock split on all periods presented.

 

 

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

 

 
 

 

Selected Highlights:  4th Qtr 2017  3rd Qtr 2017  4th Qtr 2016
          
Net income  $18.9 million   $28.9 million   $27.0 million 
Diluted earnings per share  $0.43   $0.89   $0.85 
Return on avg assets   0.54%   1.25%   1.29%
Return on avg common equity   3.88%   9.12%   9.27%
Return on tangible common equity   7.53%   14.47%   14.71%
Net interest margin(1)   4.21%   3.91%   4.12%
                
Core earnings(2)  $42.0 million   $27.7 million   $28.8 million 
Diluted core earnings per share(2)  $0.97   $0.86   $0.91 
Core return on avg assets(2)   1.20%   1.20%   1.38%
Core return on avg common equity(2)   8.63%   8.77%   9.89%
Core return on tangible common equity(2)   15.97%   13.93%   15.65%
Core net interest margin(1)(2)   3.70%   3.77%   3.76%
                
Efficiency ratio   51.36%   55.06%   55.47%

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

 

Loans 

 

   4th Qtr 2017  3rd Qtr 2017  4th Qtr 2016
          
Total loans  $10.8 billion   $6.3 billion   $5.6 billion 
Legacy loans (all loans excluding loans acquired)  $5.7 billion   $5.2 billion   $4.3 billion 
Loans acquired  $5.1 billion   $1.1 billion   $1.3 billion 

 

Total loans, including those acquired, were $10.8 billion at December 31, 2017, an increase of $5.2 billion, or 91.4% from December 31, 2016.

 

On a linked-quarter basis (December 31, 2017 compared to September 30, 2017), total loans increased $4.5 billion, or 71.0%. The increase was due to:

 

·$4.2 billion increase in loans acquired on October 19th
·$193 million net increase in loans at Southwest Bank since merger
·$54 million net increase in loans at Bank SNB since merger
·$118 million net increase in loans at Simmons Bank
·$26 million decrease in liquidating portfolio (indirect lending and consumer finance)
·$65 million decrease from seasonal agricultural loan payoffs

 

Deposits

 

   4th Qtr 2017  3rd Qtr 2017  4th Qtr 2016
          
Total deposits  $11.1 billion   $7.3 billion   $6.7 billion 
Non-time deposits  $9.2 billion   $6.0 billion   $5.4 billion 
Time deposits  $1.9 billion   $1.3 billion   $1.3 billion 

 

At December 31, 2017, total deposits were $11.1 billion, an increase of 64.7%, compared to the same period in 2016. The increase is from the recent acquisitions and growth in core deposits. Total non-time deposits increased 68.1% compared to the same period in 2016, and comprised 82.6% of total deposits.

 

Net Interest Income

 

The Company’s net interest income for the fourth quarter of 2017 was $126.9 million, an increase of $52.6 million, or 70.8%, from the same period of 2016. Included in interest income was the yield accretion recognized on loans acquired of $15.7 million and $6.6 million for the fourth quarters of 2017 and 2016, respectively. Net interest margin was 4.21% for the quarter ended December 31, 2017, a 9 basis point increase from the same quarter of 2016. The Company’s core net interest margin, excluding the accretion, was 3.70% for the fourth quarter of 2017, a 6 basis point decline from December 31, 2016 and a 7 basis point decrease from September 30, 2017. Cost of interest bearing deposits was 0.63% for the fourth quarter of 2017, a 32 basis point increase from December 31, 2016 and a 20 basis point increase from September 30, 2017.

 

 
 

 

Non-Interest Income

 

Non-interest income for the fourth quarter 2017 was $36.6 million, an increase of $514,000 compared to the fourth quarter of 2016. The increase was primarily due to additional trust income, service charge and fee income resulting from the acquisitions. These increases were partially offset by the following items included in non-interest income:

 

·$315,000 decrease in insurance income, due to the sale of the property and casualty lines of business in the third quarter of 2017
·$566,000 decrease in the gain on sale of SBA loans
·$2.7 million decrease in gain on sale of securities

 

Non-Interest Expense

 

Non-interest expense for the fourth quarter of 2017 was $108.5 million, an increase of $41.8 million compared to the fourth quarter of 2016. Included in this quarter were $14.2 million of merger-related expenses and branch rightsizing costs. Also included was a $5 million donation to Simmons Foundation. Excluding these expenses, core non-interest expense was $89.3 million.

 

The increases during the quarter were driven by incremental increases in operating expenses related to the additions of Bank SNB and Southwest Bank during the quarter and First South Bank which closed earlier in 2017. The efficiency ratio for the fourth quarter 2017 was 51.36%.

 

Asset Quality

 

   4th Qtr 2017  3rd Qtr 2017       4th Qtr 2016
          
Allowance for loan losses on loans to total loans   0.73%   0.82%   0.84%
Allowance for loan losses on loans to non-performing loans   90%   78%   92%
Non-performing loans to total loans   0.81%   1.05%   0.91%
Net charge-off ratio (annualized)   0.53%   0.32%   0.20%
Net charge-off ratio excluding credit cards   0.51%   0.27%   0.14%

 

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 December 31, 2017, the allowance for loan losses for legacy loans was $41.7 million. The allowance for loan losses for loans acquired was $418,000 and the acquired loan discount credit mark was $89.3 million. The allowances for loan losses and credit marks provide a total of $131.4 million of coverage, which equates to a total coverage ratio of 1.2% of gross loans. The ratio of credit mark and related allowance to loans acquired was 1.7%.

 

Provision for loan losses for the fourth quarter of 2017 was $9.6 million, an increase of $5.3 million compared to December 31, 2016.

 

Foreclosed Assets and Other Real Estate Owned

 

At December 31, 2017, foreclosed assets and other real estate owned were $32.1 million, an increase of $5.2 million, or 19.4%, compared to the same period in 2016. The composition of these assets is divided into three types:

 

   4th Qtr 2017  3rd Qtr 2017  4th Qtr 2016
          
Closed bank branches, branch sites & associate relocation  $9.8 million   $12.8 million   $6.1 million 
Foreclosed assets - acquired  $16.0 million   $11.1 million   $12.0 million 
Foreclosed assets - legacy  $6.3 million   $7.6 million   $8.8 million 

 

 
 

 

Capital

 

   4th Qtr 2017  3rd Qtr 2017  4th Qtr 2016
          
Stockholders’ equity to total assets   13.9%   13.2%   13.7%
Tangible common equity to tangible assets   8.1%   9.1%   9.4%
Regulatory tier 1 leverage ratio   9.2%   10.6%   11.0%
Regulatory total risk-based capital ratio   11.6%   13.5%   15.1%

 

At December 31, 2017, common stockholders' equity was $2.1 billion, book value per share was $45.30 and tangible book value per share was $24.68.

 

Simmons First National Corporation

 

Simmons First National Corporation is a financial holding company, headquartered in Pine Bluff, Arkansas, with total assets of $15.1 billion as of December 31, 2017 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 9:00 a.m. CST on Tuesday, January 23, 2018. Interested persons can listen to this call by dialing toll-free 1-866-298-7926 (United States and Canada only) and asking for the Simmons First National Corporation conference call, conference ID 9490927. 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 manage and successfully integrate its 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 Corporation’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  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31
(Unaudited)  2017  2017  2017  2017  2016
($ in thousands)               
ASSETS                         
Cash and non-interest bearing balances due from banks  $205,025   $108,675   $112,567   $103,875   $117,007 
Interest bearing balances due from banks and federal funds sold   393,017    323,615    217,047    201,406    168,652 
Cash and cash equivalents   598,042    432,290    329,614    305,281    285,659 
Interest bearing balances due from banks - time   3,314    4,059    6,057    4,563    4,563 
Investment securities - held-to-maturity   368,058    406,033    419,003    431,176    462,096 
Investment securities - available-for-sale   1,589,517    1,317,420    1,190,600    1,257,813    1,157,354 
Mortgage loans held for sale   24,038    12,614    16,266    9,754    27,788 
Assets held in trading accounts   -    49    50    55    41 
Other assets held for sale   165,780    182,378    -    -    - 
Loans:                         
Legacy loans   5,705,609    5,211,312    5,000,572    4,632,905    4,327,207 
Allowance for loan losses   (41,668)   (42,717)   (41,379)   (37,865)   (36,286)
Loans acquired, net of discount and allowance   5,074,076    1,092,039    1,224,739    1,144,291    1,305,683 
Net loans   10,738,017    6,260,634    6,183,932    5,739,331    5,596,604 
Premises and equipment   287,249    224,376    230,641    221,880    199,359 
Premises held for sale   -    -    -    4,611    6,052 
Foreclosed assets and other real estate owned   32,118    31,477    26,012    26,421    26,895 
Interest receivable   43,528    30,749    27,337    26,089    27,788 
Bank owned life insurance   185,984    148,984    148,134    139,439    138,620 
Goodwill   842,651    375,731    379,437    350,035    348,505 
Other intangible assets   106,071    55,501    58,528    51,408    52,959 
Other assets   71,439    53,075    52,697    58,782    65,773 
Total assets  $15,055,806   $9,535,370   $9,068,308   $8,626,638   $8,400,056 
                          
LIABILITIES AND STOCKHOLDERS' EQUITY                         
Deposits:                         
Non-interest bearing transaction accounts  $2,665,249   $1,669,860   $1,650,986   $1,554,675   $1,491,676 
Interest bearing transaction accounts and savings deposits   6,494,896    4,344,779    4,141,426    3,987,730    3,956,483 
Time deposits less than $100,000   1,196,760    675,186    645,855    653,538    686,780 
Time deposits greater than $100,000   735,970    635,765    665,268    592,345    600,280 
Total deposits   11,092,875    7,325,590    7,103,535    6,788,288    6,735,219 
Federal funds purchased and securities sold under agreements to repurchase   122,444    121,687    121,419    110,007    115,029 
Other borrowings   1,380,024    522,541    474,962    441,074    273,159 
Subordinated debentures   140,565    67,418    67,312    60,503    60,397 
Other liabilities held for sale   157,366    176,964    -    -    - 
Accrued interest and other liabilities   77,968    63,971    67,004    55,877    65,141 
Total liabilities   12,971,242    8,278,171    7,834,232    7,455,749    7,248,945 
                          
Stockholders' equity:                         
Common stock   460    322    322    314    313 
Surplus   1,586,494    763,443    761,754    716,564    711,976 
Undivided profits   511,858    504,085    483,322    468,309    454,034 
Accumulated other comprehensive income (loss):                         
Unrealized appreciation (depreciation) on AFS securities   (14,248)   (10,651)   (11,322)   (14,298)   (15,212)
Total stockholders' equity   2,084,564    1,257,199    1,234,076    1,170,889    1,151,111 
Total liabilities and stockholders' equity  $15,055,806   $9,535,370   $9,068,308   $8,626,638   $8,400,056 

 

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Simmons First National Corporation           SFNC
Consolidated Statements of Income - Quarter-to-Date            
For the Quarters Ended  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31
(Unaudited)  2017  2017  2017  2017  2016
($ in thousands, except per share data)               
INTEREST INCOME                         
Loans  $132,617   $77,457   $73,549   $68,728   $70,887 
Interest bearing balances due from banks and federal funds sold   947    650    214    122    245 
Investment securities   11,456    9,218    9,990    9,451    8,700 
Mortgage loans held for sale   175    159    145    126    230 
Assets held in trading accounts   -    -    -    -    3 
TOTAL INTEREST INCOME   145,195    87,484    83,898    78,427    80,065 
INTEREST EXPENSE                         
Time deposits   3,944    2,110    1,832    1,758    2,023 
Other deposits   8,762    3,920    2,984    2,446    2,032 
Federal funds purchased and securities sold under agreements to repurchase   97    83    92    75    90 
Other borrowings   3,993    1,875    1,559    1,194    1,034 
Subordinated debentures   1,480    677    619    574    558 
TOTAL INTEREST EXPENSE   18,276    8,665    7,086    6,047    5,737 
NET INTEREST INCOME   126,919    78,819    76,812    72,380    74,328 
Provision for loan losses   9,601    5,462    7,023    4,307    4,332 
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES   117,318    73,357    69,789    68,073    69,996 
NON-INTEREST INCOME                         
Trust income   6,020    4,225    4,113    4,212    4,282 
Service charges on deposit accounts   10,587    8,907    8,483    8,102    8,666 
Other service charges and fees   2,774    2,433    2,515    2,197    4,026 
Mortgage and SBA lending income   3,713    3,219    3,961    2,423    4,580 
Investment banking income   786    680    637    690    472 
Debit and credit card fees   8,801    8,864    8,659    7,934    8,027 
Bank owned life insurance income   1,101    725    859    818    895 
(Loss) gain on sale of securities, net   (1,243)   3    2,236    63    1,445 
Other income   4,090    7,276    4,281    3,621    3,722 
TOTAL NON-INTEREST INCOME   36,629    36,332    35,744    30,060    36,115 
NON-INTEREST EXPENSE                         
Salaries and employee benefits   49,288    35,285    34,205    35,536    33,797 
Occupancy expense, net   6,700    4,928    4,868    4,663    4,516 
Furniture and equipment expense   5,533    4,840    4,550    4,443    4,387 
Other real estate and foreclosure expense   865    1,071    517    589    679 
Deposit insurance   1,216    1,020    780    680    89 
Merger-related costs   14,044    752    6,603    524    2,846 
Other operating expenses   30,844    18,263    19,885    19,887    20,411 
TOTAL NON-INTEREST EXPENSE   108,490    66,159    71,408    66,322    66,725 
NET INCOME BEFORE INCOME TAXES   45,457    43,530    34,125    31,811    39,386 
Provision for income taxes   26,554    14,678    11,060    9,691    12,415 
NET INCOME  $18,903   $28,852   $23,065   $22,120   $26,971 
BASIC EARNINGS PER SHARE  $0.44   $0.90   $0.72   $0.71   $0.86 
DILUTED EARNINGS PER SHARE  $0.43   $0.89   $0.72   $0.70   $0.85 

 

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Simmons First National Corporation           SFNC
Consolidated Risk-Based Capital               
For the Quarters Ended  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31
(Unaudited)  2017  2017  2017  2017  2016
($ in thousands)               
Tier 1 capital                         
Stockholders' equity  $2,084,564   $1,257,199   $1,234,076   $1,170,889   $1,151,111 
Trust preferred securities, net allowable   -    67,418    67,312    60,503    60,397 
Disallowed intangible assets, net of deferred tax   (902,371)   (401,419)   (406,990)   (361,944)   (354,028)
Unrealized loss on AFS securities   17,264    10,651    11,322    14,298    15,212 
Other   -    -    -    -    15 
Total Tier 1 capital   1,199,457    933,849    905,720    883,746    872,707 
                          
Tier 2 capital                         
Qualifying unrealized gain on AFS equity securities   1    1    1    2    - 
Trust preferred securities and subordinated debt   140,565    -    -    -    - 
Qualifying allowance for loan losses and reserve for unfunded commitments   48,947    46,709    45,369    41,303    40,241 
Total Tier 2 capital   189,513    46,710    45,370    41,305    40,241 
Total risk-based capital  $1,388,970   $980,559   $951,090   $925,051   $912,948 
                          
Common equity                         
Tier 1 capital  $1,199,457   $933,849   $905,720   $883,746   $872,707 
Less: Trust preferred securities   -    (67,418)   (67,312)   (60,503)   (60,397)
Total common equity  $1,199,457   $866,431   $838,408   $823,243   $812,310 
                          
Risk weighted assets  $11,930,764   $7,239,923   $6,925,727   $6,425,150   $6,039,034 
                          
Adjusted average assets for leverage ratio  $13,016,478   $8,789,175   $8,424,763   $8,076,525   $7,966,681 
                          
Ratios at end of quarter                         
Equity to assets   13.85%   13.18%   13.61%   13.57%   13.70%
Tangible common equity to tangible assets (1)   8.05%   9.07%   9.22%   9.35%   9.37%
Common equity Tier 1 ratio (CET1)   10.05%   11.97%   12.11%   12.81%   13.45%
Tier 1 leverage ratio   9.21%   10.62%   10.75%   10.94%   10.95%
Tier 1 risk-based capital ratio   10.05%   12.90%   13.08%   13.75%   14.45%
Total risk-based capital ratio   11.64%   13.54%   13.73%   14.40%   15.12%

 

(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  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31
(Unaudited)  2017  2017  2017  2017  2016
($ in thousands)               
Legacy Loan Portfolio - End of Period (1)                         
Consumer                         
Credit cards  $185,422   $176,316   $176,953   $171,947   $184,591 
Other consumer   280,094    317,946    366,136    349,200    303,972 
Total consumer   465,516    494,262    543,089    521,147    488,563 
Real Estate                         
Construction   614,155    515,274    457,896    365,051    336,759 
Single-family residential   1,094,633    1,048,403    1,014,412    957,717    904,245 
Other commercial   2,530,824    2,231,223    2,089,707    1,959,677    1,787,075 
Total real estate   4,239,612    3,794,900    3,562,015    3,282,445    3,028,079 
Commercial                         
Commercial   825,217    688,960    678,932    657,606    639,525 
Agricultural   148,302    207,849    191,345    141,125    150,378 
Total commercial   973,519    896,809    870,277    798,731    789,903 
Other   26,962    25,341    25,191    30,582    20,662 
Total Loans  $5,705,609   $5,211,312   $5,000,572   $4,632,905   $4,327,207 
                          
(1) Excludes all acquired loans.                         
                          
Investment Securities - End of Period                         
Held-to-Maturity                         
U.S. Government agencies  $46,945   $66,928   $67,912   $68,895   $76,875 
Mortgage-backed securities   16,132    16,972    17,882    18,743    19,773 
State and political subdivisions   301,491    320,116    331,249    341,854    362,532 
Other securities   3,490    2,017    1,960    1,684    2,916 
Total held-to-maturity   368,058    406,033    419,003    431,176    462,096 
Available-for-Sale                         
U.S. Treasury  $-   $-   $19,997   $-   $300 
U.S. Government agencies   139,724    208,220    147,619    142,356    137,771 
Mortgage-backed securities   1,187,317    959,698    878,205    927,277    868,324 
State and political subdivisions   143,165    84,822    83,672    130,747    102,943 
FHLB stock   58,914    24,415    21,772    19,149    12,235 
Other securities   60,397    40,265    39,335    38,285    35,781 
Total available-for-sale   1,589,517    1,317,420    1,190,600    1,257,814    1,157,354 
Total investment securities  $1,957,575   $1,723,453   $1,609,603   $1,688,990   $1,619,450 
Fair value - HTM investment securities  $373,298   $412,140   $425,263   $435,701   $465,960 
                          
Investment Securities - QTD Average                         
Taxable securities  $1,569,173   $1,229,172   $1,244,071   $1,185,794   $1,146,703 
Tax exempt securities   446,040    409,062    467,420    455,481    467,757 
Total investment securities - QTD average  $2,015,213   $1,638,234   $1,711,491   $1,641,275   $1,614,460 

 

 Page 4 
 

 

Simmons First National Corporation              SFNC
Consolidated Loans and Credit Coverage               
For the Quarters Ended  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31
(Unaudited)  2017  2017  2017  2017  2016
($ in thousands)               
LOANS                         
Legacy loans  $5,705,609   $5,211,312   $5,000,572   $4,632,905   $4,327,207 
Allowance for loan losses (legacy loans)   (41,668)   (42,717)   (41,379)   (37,865)   (36,286)
Legacy loans (net of allowance)   5,663,941    5,168,595    4,959,193    4,595,040    4,290,921 
Loans acquired   5,163,769    1,117,424    1,253,539    1,173,667    1,342,099 
Credit discount   (89,275)   (24,994)   (28,409)   (28,941)   (35,462)
Allowance for loan losses (loans acquired)   (418)   (391)   (391)   (435)   (954)
Loans acquired (net of discount and allowance)   5,074,076    1,092,039    1,224,739    1,144,291    1,305,683 
Net loans  $10,738,017   $6,260,634   $6,183,932   $5,739,331   $5,596,604 
                          
                          
Loan Coverage Ratios                         
Allowance for loan losses to legacy loans   0.73%   0.82%   0.83%   0.82%   0.84%
                          
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)   1.74%   2.27%   2.30%   2.50%   2.71%
                          
Total allowance and credit coverage (non-GAAP) (1)   1.21%   1.08%   1.12%   1.16%   1.28%

 

(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  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31
(Unaudited)  2017  2017  2017  2017  2016
($ in thousands)               
Allowance for Loan Losses (Legacy Loans)                         
Balance, beginning of quarter  $42,717   $41,379   $37,865   $36,286   $34,094 
Loans charged off                         
Credit cards   943    1,017    901    1,044    935 
Other consumer   781    819    993    1,174    493 
Real estate   4,725    896    1,712    656    167 
Commercial   4,754    2,442    349    292    913 
Total loans charged off   11,203    5,174    3,955    3,166    2,508 
                          
Recoveries of loans previously charged off                         
Credit cards   233    275    277    236    213 
Other consumer   468    445    636    690    158 
Real estate   233    309    216    232    73 
Commercial   20    21    32    30    28 
Total recoveries   954    1,050    1,161    1,188    472 
Net loans charged off   10,249    4,124    2,794    1,978    2,036 
Provision for loan losses   9,200    5,462    6,308    3,557    4,228 
Balance, end of quarter  $41,668   $42,717   $41,379   $37,865   $36,286 
                          
Non-performing assets (1) (2)                         
Non-performing loans                         
Nonaccrual loans   45,642    54,439    57,127    52,913    39,104 
Loans past due 90 days or more   520    232    281    231    299 
Total non-performing loans   46,162    54,671    57,408    53,144    39,403 
Other non-performing assets                         
Foreclosed assets and other real estate owned (2)   32,118    31,477    26,012    26,421    26,895 
Other non-performing assets   675    639    485    352    471 
Total other non-performing assets   32,793    32,116    26,497    26,773    27,366 
Total non-performing assets  $78,955   $86,787   $83,905   $79,917   $66,769 
Performing TDRs (troubled debt restructurings)  $7,107   $9,212   $8,794   $10,833   $10,998 
                          
Ratios (1) (2)                         
Allowance for loan losses to total loans   0.73%   0.82%   0.83%   0.82%   0.84%
Allowance for loan losses to non-performing loans   90%   78%   72%   71%   92%
Non-performing loans to total loans   0.81%   1.05%   1.15%   1.15%   0.91%
Non-performing assets (including performing TDRs) to total assets   0.57%   1.01%   1.02%   1.05%   0.93%
Non-performing assets to total assets   0.52%   0.91%   0.93%   0.93%   0.79%
Annualized net charge offs to total loans   0.53%   0.32%   0.23%   0.18%   0.20%
Annualized net credit card charge offs to total credit card loans   1.54%   1.65%   1.42%   1.84%   1.66%
Annualized net charge offs to total loans (excluding credit cards)   0.51%   0.27%   0.19%   0.11%   0.14%

 

 (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
Dec 2017
  Three Months Ended
Sep 2017
  Three Months Ended
Dec 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   342,589    947    1.10%   269,111    650    0.96%   248,777    245    0.39%
Investment securities - taxable   1,702,531    8,592    2.00%   1,313,333    6,574    1.99%   1,236,864    5,681    1.83%
Investment securities - non-taxable (FTE)   312,682    4,702    5.97%   324,901    4,341    5.30%   377,596    4,959    5.22%
Mortgage loans held for sale   15,144    175    4.58%   13,388    159    4.71%   23,307    230    3.93%
Assets held in trading accounts   14    -    0.00%   52    -    0.00%   1,774    3    0.67%
Loans, including acquired loans   9,772,043    132,704    5.39%   6,261,507    77,511    4.91%   5,484,918    70,941    5.15%
Total interest earning assets (FTE)   12,145,003    147,120    4.81%   8,182,292    89,235    4.33%   7,373,236    82,059    4.43%
Non-earning assets   1,752,775              993,315              935,222           
Total assets  $13,897,778             $9,175,607             $8,308,458           
                                              
LIABILITIES AND STOCKHOLDERS' EQUITY                                             
Interest bearing liabilities:                                             
Interest bearing transaction and savings accounts  $6,132,456   $8,762    0.57%  $4,227,567   $3,920    0.37%  $3,895,367   $2,032    0.21%
Time deposits   1,852,148    3,944    0.84%   1,330,889    2,110    0.63%   1,292,961    2,023    0.62%
Total interest bearing deposits   7,984,604    12,706    0.63%   5,558,456    6,030    0.43%   5,188,328    4,055    0.31%
Federal funds purchased and securities sold under agreement to repurchase   126,432    97    0.30%   115,583    83    0.28%   124,323    90    0.29%
Other borrowings   988,614    3,993    1.60%   502,972    1,875    1.48%   203,615    1,034    2.02%
Subordinated debentures   127,680    1,480    4.60%   67,367    677    3.99%   60,345    558    3.68%
Total interest bearing liabilities   9,227,330    18,276    0.79%   6,244,378    8,665    0.55%   5,576,611    5,737    0.41%
Non-interest bearing liabilities:                                             
Non-interest bearing deposits   2,476,235              1,613,248              1,515,853           
Other liabilities   262,409              62,287              59,061           
Total liabilities   11,965,974              7,919,913              7,151,525           
Stockholders' equity   1,931,804              1,255,694              1,156,933           
Total liabilities and stockholders' equity  $13,897,778             $9,175,607             $8,308,458           
Net interest income (FTE)       $128,844             $80,570             $76,322      
Net interest spread (FTE)             4.02%             3.78%             4.02%
Net interest margin (FTE) - quarter-to-date             4.21%             3.91%             4.12%
                                              
Net interest margin (FTE) - year-to-date             4.07%             3.99%             4.19%
                                              
Core net interest margin (FTE) - quarter-to-date (1)             3.70%             3.77%             3.76%
Core loan yield (FTE) - quarter-to-date (1)             4.75%             4.72%             4.67%
                                              
Core net interest margin (FTE) - year-to-date (1)             3.76%             3.79%             3.83%
Core loan yield (FTE) - year-to-date (1)             4.69%             4.65%             4.72%

 

(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  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31
(Unaudited)  2017  2017  2017  2017  2016
($ in thousands, except share data)               
QUARTER-TO-DATE                         
Financial Highlights - GAAP                         
Net Income  $18,903   $28,852   $23,065   $22,120   $26,971 
Diluted earnings per share   0.43    0.89    0.72    0.70    0.85 
Return on average assets   0.54%   1.25%   1.05%   1.07%   1.29%
Return on average common equity   3.88%   9.12%   7.65%   7.69%   9.27%
Return on tangible common equity   7.53%   14.47%   12.13%   12.22%   14.71%
Net interest margin (FTE)   4.21%   3.91%   4.04%   4.04%   4.12%
FTE adjustment   1,925    1,751    2,082    1,965    1,994 
Amortization of intangibles   2,839    1,724    1,553    1,550    1,533 
Amortization of intangibles, net of taxes   1,725    1,048    944    942    932 
Average diluted shares outstanding   43,518,022    32,423,796    32,025,780    31,612,900    31,592,713 
Cash dividends declared per common share   0.25    0.25    0.25    0.25    0.24 
Financial Highlights - Core (non-GAAP)                         
Core earnings (excludes non-core items) (1)  $42,018   $27,746   $26,753   $22,532   $28,751 
Diluted core earnings per share (1)   0.97    0.86    0.84    0.71    0.91 
Core net interest margin (FTE) (2)   3.70%   3.77%   3.79%   3.80%   3.76%
Accretable yield on acquired loans   15,684    2,890    4,792    4,427    6,552 
Efficiency ratio (1)   51.36%   55.06%   56.04%   60.92%   55.47%
Core return on average assets (1)   1.20%   1.20%   1.22%   1.09%   1.38%
Core return on average common equity (1)   8.63%   8.77%   8.87%   7.83%   9.89%
Core return on tangible common equity (1)   15.97%   13.93%   13.99%   12.44%   15.65%
YEAR-TO-DATE                         
Financial Highlights - GAAP                         
Net Income  $92,940   $74,037   $45,185   $22,120   $96,790 
Diluted earnings per share   2.66    2.31    1.42    0.70    3.13 
Return on average assets   0.92%   1.12%   1.06%   1.07%   1.25%
Return on average common equity   6.68%   8.18%   7.67%   7.69%   8.75%
Return on tangible common equity   11.26%   12.97%   12.17%   12.22%   13.92%
Net interest margin (FTE)   4.07%   3.99%   4.04%   4.04%   4.19%
FTE adjustment   7,723    5,798    4,047    1,965    7,722 
Amortization of intangibles   7,666    4,827    3,103    1,550    5,942 
Amortization of intangibles, net of taxes   4,659    2,934    1,886    942    3,611 
Average diluted shares outstanding   34,926,460    32,007,135    31,794,363    31,612,900    30,963,546 
Cash dividends declared per common share   1.00    0.75    0.50    0.25    0.96 
Financial Highlights - Core (non-GAAP)                         
Core earnings (excludes non-core items) (1)  $119,049   $77,031   $49,285   $22,532   $101,409 
Diluted core earnings per share (1)   3.41    2.41    1.55    0.71    3.28 
Core net interest margin (FTE) (2)   3.76%   3.79%   3.79%   3.80%   3.83%
Accretable yield on acquired loans   27,793    12,109    9,219    4,427    24,257 
Efficiency ratio (1)   55.27%   57.25%   58.40%   60.92%   56.32%
Core return on average assets (1)   1.18%   1.17%   1.15%   1.09%   1.31%
Core return on average common equity (1)   8.56%   8.51%   8.37%   7.83%   9.17%
Core return on tangible common equity (1)   14.28%   13.48%   13.23%   12.44%   14.56%
END OF PERIOD                         
Book value per share  $45.30   $39.03   $38.31   $37.30   $36.80 
Tangible book value per share   24.68    25.64    24.71    24.51    23.97 
Shares outstanding   46,014,559    32,212,242    32,212,832    31,388,357    31,277,723 
Full-time equivalent employees   2,640    1,942    1,919    1,876    1,875 
Total number of financial centers   200    156    161    151    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  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31
(Unaudited)  2017  2017  2017  2017  2016
($ in thousands, except per share data)               
QUARTER-TO-DATE                         
Net Income  $18,903   $28,852   $23,065   $22,120   $26,971 
Non-core items                         
Gain on sale of P&C insurance business   -    (3,708)   -    -    - 
Donation to Simmons Foundation   5,000    -    -    -    - 
Merger-related costs   14,044    752    6,603    524    2,846 
Branch right-sizing   116    435    (536)   154    83 
Tax effect (1)   (7,516)   1,415    (2,379)   (266)   (1,149)
Net non-core items (before SAB 118 adjustment)   11,644    (1,106)   3,688    412    1,780 
SAB 118 adjustment (2)   11,471    -    -    -    - 
Core earnings (non-GAAP)  $42,018   $27,746   $26,753   $22,532   $28,751 
                          
Diluted earnings per share  $0.43   $0.89   $0.72   $0.70   $0.85 
Non-core items                         
Gain on sale of P&C insurance business   -    (0.11)   -    -    - 
Donation to Simmons Foundation   0.11    -    -    -    - 
Merger-related costs   0.33    0.02    0.21    0.02    0.09 
Branch right-sizing   -    0.01    (0.02)   -    - 
Tax effect (1)   (0.16)   0.05    (0.07)   (0.01)   (0.03)
Net non-core items (before SAB 118 adjustment)   0.28    (0.03)   0.12    0.01    0.06 
SAB 118 adjustment (2)   0.26    -    -    -    - 
Core earnings (non-GAAP)  $0.97   $0.86   $0.84   $0.71   $0.91 
                          
YEAR-TO-DATE                         
Net Income  $92,940   $74,037   $45,185   $22,120   $96,790 
Non-core items                         
Gain from early retirement of trust preferred securities   -    -    -    -    (594)
Gain on sale of P&C insurance business   (3,708)   (3,708)   -    -    - 
Donation to Simmons Foundation   5,000    -    -    -    - 
Merger-related costs   21,923    7,879    7,127    524    4,835 
Branch right-sizing   169    53    (382)   154    3,359 
Tax effect (1)   (8,746)   (1,230)   (2,645)   (266)   (2,981)
Net non-core items (before SAB 118 adjustment)   14,638    2,994    4,100    412    4,619 
SAB 118 adjustment (2)   11,471    -    -    -    - 
Core earnings (non-GAAP)  $119,049   $77,031   $49,285   $22,532   $101,409 
                          
Diluted earnings per share  $2.66   $2.31   $1.42   $0.70   $3.13 
Non-core items                         
Gain from early retirement of trust preferred securities   -    -    -    -    (0.02)
Gain on sale of P&C insurance business   (0.10)   (0.11)               
Donation to Simmons Foundation   0.14                     
Merger-related costs   0.63    0.25    0.22    0.02    0.16 
Branch right-sizing   -    -    (0.01)   -    0.11 
Tax effect (1)   (0.25)   (0.04)   (0.08)   (0.01)   (0.10)
Net non-core items (before SAB 118 adjustment)   0.42    0.10    0.13    0.01    0.15 
SAB 118 adjustment (2)   0.33    -    -    -    - 
Core earnings (non-GAAP)  $3.41   $2.41   $1.55   $0.71   $3.28 

 

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

 (2) Tax adjustment to revalue deferred tax assets and liabilites to account for the future impact of lower corporate tax rates resulting from the "Tax Cuts and Jobs Act", signed into law on December 22, 2017.     

 

 Page 9 
 

 

Simmons First National Corporation              SFNC
Reconciliation Of Non-GAAP Financial Measures - End of Period         
For the Quarters Ended               
(Unaudited)  Dec 31  Sept 30  Jun 30  Mar 31  Dec 31
   2017  2017  2017  2017  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  $2,084,564   $1,257,199   $1,234,076   $1,170,889   $1,151,111 
Intangible assets:                         
Goodwill   (842,651)   (375,731)   (379,437)   (350,035)   (348,505)
Other intangible assets   (106,071)   (55,501)   (58,528)   (51,408)   (52,959)
Total intangibles   (948,722)   (431,232)   (437,965)   (401,443)   (401,464)
Tangible common stockholders' equity  $1,135,842   $825,967   $796,111   $769,446   $749,647 
                          
Total assets  $15,055,806   $9,535,370   $9,068,308   $8,626,638   $8,400,056 
Intangible assets:                         
Goodwill   (842,651)   (375,731)   (379,437)   (350,035)   (348,505)
Other intangible assets   (106,071)   (55,501)   (58,528)   (51,408)   (52,959)
Total intangibles   (948,722)   (431,232)   (437,965)   (401,443)   (401,464)
Tangible assets  $14,107,084   $9,104,138   $8,630,343   $8,225,195   $7,998,592 
                          
Ratio of equity to assets   13.85%   13.18%   13.61%   13.57%   13.70%
Ratio of tangible common equity to tangible assets   8.05%   9.07%   9.22%   9.35%   9.37%
                          
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  $89,275   $24,994   $28,409   $28,941   $35,462 
Allowance for loan losses on acquired loans   418    391    391    435    954 
Total credit discount and ALLL on acquired loans  $89,693   $25,385   $28,800   $29,376   $36,416 
Total loans acquired  $5,163,769   $1,117,424   $1,253,539   $1,173,667   $1,342,099 
Discount and ALLL on acquired loans to acquired loans   1.74%   2.27%   2.30%   2.50%   2.71%
                          
Calculation of Total Allowance and Credit Coverage                         
                          
Allowance for loan losses  $41,668   $42,717   $41,379   $37,865   $36,286 
Total credit discount and ALLL on acquired loans   89,693    25,385    28,800    29,376    36,416 
Total allowance and credit discount  $131,361   $68,102   $70,179   $67,241   $72,702 
Total loans  $10,869,378   $6,328,736   $6,254,155   $5,806,572   $5,669,306 
Total allowance and credit coverage   1.21%   1.08%   1.12%   1.16%   1.28%
                          
Calculation of Tangible Book Value per Share                         
                          
Total common stockholders' equity  $2,084,564   $1,257,199   $1,234,076   $1,170,889   $1,151,111 
Intangible assets:                         
Goodwill   (842,651)   (375,731)   (379,437)   (350,035)   (348,505)
Other intangible assets   (106,071)   (55,501)   (58,528)   (51,408)   (52,959)
Total intangibles   (948,722)   (431,232)   (437,965)   (401,443)   (401,464)
Tangible common stockholders' equity  $1,135,842   $825,967   $796,111   $769,446   $749,647 
Shares of common stock outstanding   46,014,559    32,212,242    32,212,832    31,388,357    31,277,723 
Book value per common share  $45.30   $39.03   $38.31   $37.30   $36.80 
Tangible book value per common share  $24.68   $25.64   $24.71   $24.51   $23.97 

 

 Page 10 
 

 

Simmons First National Corporation              SFNC
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date         
For the Quarters Ended               
(Unaudited)  Dec 31  Sept 30  Jun 30  Mar 31  Dec 31
   2017  2017  2017  2017  2016
($ in thousands)               
Calculation of Core Return on Average Assets                         
                          
Net income  $18,903   $28,852   $23,065   $22,120   $26,971 
Net non-core items, net of taxes, adjustment   23,115    (1,106)   3,688    412    1,780 
Core earnings  $42,018   $27,746   $26,753   $22,532   $28,751 
                          
Average total assets  $13,897,778   $9,175,607   $8,812,460   $8,414,470   $8,308,458 
                          
Return on average assets   0.54%   1.25%   1.05%   1.07%   1.29%
Core return on average assets   1.20%   1.20%   1.22%   1.09%   1.38%
                          
Calculation of Return on Tangible Common Equity                         
                          
Net income  $18,903   $28,852   $23,065   $22,120   $26,971 
Amortization of intangibles, net of taxes   1,725    1,048    944    942    932 
Total income available to common stockholders  $20,628   $29,900   $24,009   $23,062   $27,903 
                          
Net non-core items, net of taxes   23,115    (1,106)   3,688    412    1,780 
Core earnings   42,018    27,746    26,753    22,532    28,751 
Amortization of intangibles, net of taxes   1,725    1,048    944    942    932 
Total core income available to common stockholders  $43,743   $28,794   $27,697   $23,474   $29,683 
                          
Average common stockholders' equity  $1,931,804   $1,255,694   $1,209,343   $1,166,473   $1,156,933 
Average intangible assets:                         
Goodwill   (731,661)   (378,387)   (362,925)   (348,837)   (348,597)
Other intangibles   (113,770)   (57,232)   (52,419)   (52,169)   (53,646)
Total average intangibles   (845,431)   (435,619)   (415,344)   (401,006)   (402,243)
Average tangible common stockholders' equity  $1,086,373   $820,075   $793,999   $765,467   $754,690 
                          
Return on average common equity   3.88%   9.12%   7.65%   7.69%   9.27%
Return on tangible common equity   7.53%   14.47%   12.13%   12.22%   14.71%
Core return on average common equity   8.63%   8.77%   8.87%   7.83%   9.89%
Core return on tangible common equity   15.97%   13.93%   13.99%   12.44%   15.65%
                          
Calculation of Efficiency Ratio (1)                         
                          
Non-interest expense  $108,490   $66,159   $71,408   $66,322   $66,725 
Non-core non-interest expense adjustment   (19,160)   (862)   (6,700)   (635)   (2,995)
Other real estate and foreclosure expense adjustment   (865)   (1,071)   (517)   (550)   (669)
Amortization of intangibles adjustment   (2,839)   (1,724)   (1,553)   (1,550)   (1,533)
Efficiency ratio numerator  $85,626   $62,502   $62,638   $63,587   $61,528 
                          
Net-interest income  $126,919   $78,819   $76,812   $72,380   $74,328 
Non-interest income   36,629    36,332    35,744    30,060    36,115 
Non-core non-interest income adjustment   -    (3,383)   (632)   43    (66)
Fully tax-equivalent adjustment   1,925    1,751    2,082    1,965    1,994 
(Gain) loss on sale of securities   1,243    (3)   (2,236)   (63)   (1,445)
Efficiency ratio denominator  $166,716   $113,516   $111,770   $104,385   $110,926 
                          
Efficiency ratio (1)   51.36%   55.06%   56.04%   60.92%   55.47%
                          
Calculation of Core Net Interest Margin                         
                          
Net interest income  $126,919   $78,819   $76,812   $72,380   $74,328 
Fully tax-equivalent adjustment   1,925    1,751    2,082    1,965    1,994 
Fully tax-equivalent net interest income   128,844    80,570    78,894    74,345    76,322 
                          
Total accretable yield   (15,684)   (2,890)   (4,792)   (4,427)   (6,552)
Core net interest income  $113,160   $77,680   $74,102   $69,918   $69,770 
Average earning assets  $12,145,003   $8,182,292   $7,841,208   $7,469,709   $7,373,236 
                          
Net interest margin   4.21%   3.91%   4.04%   4.04%   4.12%
Core net interest margin   3.70%   3.77%   3.79%   3.80%   3.76%
                          
Calculation of Core Loan Yield                         
                          
Loan interest income  $132,617   $77,457   $73,549   $68,728   $70,887 
Total accretable yield   (15,684)   (2,890)   (4,792)   (4,427)   (6,552)
Core loan interest income  $116,933   $74,567   $68,757   $64,301   $64,335 
Average loan balance  $9,772,043   $6,261,507   $5,954,019   $5,685,585   $5,484,918 
                          
Core loan yield   4.75%   4.72%   4.63%   4.59%   4.67%

 

(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)  Dec 31  Sept 30  Jun 30  Mar 31  Dec 31
   2017  2017  2017  2017  2016
($ in thousands)               
Calculation of Core Return on Average Assets                         
                          
Net income  $92,940   $74,037   $45,185   $22,120   $96,790 
Net non-core items, net of taxes, adjustment   26,109    2,994    4,100    412    4,619 
Core earnings  $119,049   $77,031   $49,285   $22,532   $101,409 
                          
Average total assets  $10,074,951   $8,800,675   $8,613,240   $8,414,470   $7,760,233 
                          
Return on average assets   0.92%   1.12%   1.06%   1.07%   1.25%
Core return on average assets   1.18%   1.17%   1.15%   1.09%   1.31%
                          
Calculation of Return on Tangible Common Equity                         
                          
Net income  $92,940   $74,037   $45,185   $22,120   $96,790 
Amortization of intangibles, net of taxes   4,659    2,934    1,886    942    3,611 
Total income available to common stockholders  $97,599   $76,971   $47,071   $23,062   $100,401 
                          
Net non-core items, net of taxes   26,109    2,994    4,100    412    4,619 
Core earnings   119,049    77,031    49,285    22,532    101,409 
Amortization of intangibles, net of taxes   4,659    2,934    1,886    942    3,611 
Total core income available to common stockholders  $123,708   $79,965   $51,171   $23,474   $105,020 
                          
Average common stockholders' equity  $1,390,815   $1,210,487   $1,187,906   $1,166,473   $1,105,775 
Average intangible assets:                         
Goodwill   (455,453)   (363,383)   (355,881)   (348,837)   (332,974)
Other intangibles   (68,896)   (53,941)   (52,294)   (52,169)   (51,710)
Total average intangibles   (524,349)   (417,324)   (408,175)   (401,006)   (384,684)
Average tangible common stockholders' equity  $866,466   $793,163   $779,731   $765,467   $721,091 
                          
Return on average common equity   6.68%   8.18%   7.67%   7.69%   8.75%
Return on tangible common equity   11.26%   12.97%   12.17%   12.22%   13.92%
Core return on average common equity   8.56%   8.51%   8.37%   7.83%   9.17%
Core return on tangible common equity   14.28%   13.48%   13.23%   12.44%   14.56%
                          
Calculation of Efficiency Ratio (1)                         
                          
Non-interest expense  $312,379   $203,889   $137,730   $66,322   $255,085 
Non-core non-interest expense adjustment   (27,357)   (8,197)   (7,335)   (635)   (8,435)
Other real estate and foreclosure expense adjustment   (3,042)   (2,177)   (1,067)   (550)   (4,389)
Amortization of intangibles adjustment   (7,666)   (4,827)   (3,103)   (1,550)   (5,942)
Efficiency ratio numerator  $274,314   $188,688   $126,225   $63,587   $236,319 
                          
Net-interest income  $354,930   $228,011   $149,192   $72,380   $279,206 
Non-interest income   138,765    102,136    65,804    30,060    139,382 
Non-core non-interest income adjustment   (3,972)   (3,972)   (589)   43    (835)
Fully tax-equivalent adjustment   7,723    5,798    4,047    1,965    7,722 
(Gain) loss on sale of securities   (1,059)   (2,302)   (2,299)   (63)   (5,848)
Efficiency ratio denominator  $496,387   $329,671   $216,155   $104,385   $419,627 
                          
Efficiency ratio (1)   55.27%   57.25%   58.40%   60.92%   56.32%
                          
Calculation of Core Net Interest Margin                         
                          
Net interest income  $354,930   $228,011   $149,192   $72,380   $279,206 
Fully tax-equivalent adjustment   7,723    5,798    4,047    1,965    7,722 
Fully tax-equivalent net interest income   362,653    233,809    153,239    74,345    286,928 
                          
Total accretable yield   (27,793)   (12,109)   (9,219)   (4,427)   (24,257)
Core net interest income  $334,860   $221,700   $144,020   $69,918   $262,671 
Average earning assets  $8,908,418   $7,829,548   $7,653,177   $7,469,709   $6,855,322 
                          
Net interest margin   4.07%   3.99%   4.04%   4.04%   4.19%
Core net interest margin   3.76%   3.79%   3.79%   3.80%   3.83%
                          
Calculation of Core Loan Yield                         
                          
Loan interest income  $352,351   $219,734   $142,277   $68,728   $265,652 
Total accretable yield   (27,793)   (12,109)   (9,219)   (4,427)   (24,257)
Core loan interest income  $324,558   $207,625   $133,058   $64,301   $241,395 
Average loan balance  $6,918,293   $5,967,036   $5,819,803   $5,685,585   $5,109,492 
                          
Core loan yield   4.69%   4.65%   4.61%   4.59%   4.72%

 

(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 Tuesday, January 23, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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