Exhibit 99.1

 

 

 

For Immediate Release:  April 21, 2020

 

SIMMONS REPORTS FIRST QUARTER 2020 EARNINGS

 

Pine Bluff, AR – Simmons First National Corporation (NASDAQ: SFNC) (the “Company” or “Simmons”) today announced net income of $77.2 million for the quarter ended March 31, 2020, compared to $47.7 million for the same period in 2019, an increase of $29.5 million, or 61.9%. Diluted earnings per share were $0.68, an increase of $0.17, or 33.3%, compared to the same period in the prior year. Included in first quarter 2020 results were $965,000 in net after-tax merger-related and branch right-sizing costs as well as a $4.4 million after-tax gain associated with the sale of branches in south Texas.

 

Excluding the impact of these items, core earnings were $73.8 million for the quarter ended March 31, 2020, compared to $49.1 million for the quarter ended March 31, 2019, an increase of $24.8 million, or 50.5%. Core diluted earnings per share were $0.65, an increase of $0.12, or 22.6%, from the same period in 2019.

 

“I am very proud of our team and their demonstration of our community banking values during these trying times,” said George A. Makris, Jr., chairman and CEO of Simmons First National Corporation. “Many of our associates could not work from home because they were serving our customers who needed our help.”

 

Makris continued, “On behalf of Simmons Bank, our customers, and the communities we serve, I would like to thank our healthcare professionals and other front-line workers, along with our federal, state and local officials, who have all responded quickly and with great care to the challenges presented by the pandemic. We believe we are well positioned to help our customers and communities as we come out of these unprecedented times. We have very strong liquidity and capital that we believe should assist Simmons once again in weathering critical economic times. The diversification in our risk profile along with a conservative risk appetite has helped to accommodate the needs of the communities we serve while providing value to our shareholders.”

 

Selected Highlights: 1st Qtr 2020 4th Qtr 2019 1st Qtr 2019
Net income $77.2 million $52.7 million $47.7 million
Diluted earnings per share $0.68 $0.49 $0.51
Return on avg assets 1.48% 1.04% 1.19%
Return on avg common equity 10.83% 8.01% 8.60%
Return on tangible common equity (1) 19.00% 14.62% 15.34%
       
Core earnings (2) $73.8 million $71.1 million $49.1 million
Core diluted earnings per share (2) $0.65 $0.66 $0.53
Core return on avg assets (2) 1.42% 1.41% 1.22%
Core return on avg common equity (2) 10.35% 10.80% 8.85%
Core return on tangible common equity (1)(2) 18.19% 19.49% 15.76%
       
Efficiency ratio (3) 56.38% 52.63% 56.76%

 

(1)Return on tangible common equity excludes goodwill and other intangible assets and is a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
(2)Core figures exclude non-core items and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
(3)Efficiency ratio is noninterest expense before foreclosed property expense, amortization of intangibles as a percent of net interest income (fully taxable equivalent) and non-interest revenues, excluding gains and losses from securities transactions and non-core items, and is a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

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

 

 

Loans

 

($ in billions) 1st Qtr 2020 4th Qtr 2019 1st Qtr 2019
Total loans $14.37 $14.43 $11.74

 

Total loans were $14.4 billion at March 31, 2020, an increase of $2.6 billion, or 22.4%, compared to March 31, 2019, primarily due to the Reliance Bancshares, Inc. and The Landrum Company mergers completed during 2019 (“2019 mergers”). On a linked-quarter basis (March 31, 2020 compared to December 31, 2019), total loans decreased $51.4 million, or 0.4%. During the first quarter 2020, $115 million in loan balances were reclassified associated with the four branches held for sale in Colorado.

 

Deposits

 

($ in billions) 1st Qtr 2020 4th Qtr 2019 1st Qtr 2019
Total deposits $15.6 $16.1 $12.0
Non-time deposits $12.4 $12.8 $9.3
Time deposits $3.2 $3.3 $2.7

 

Total deposits were $15.6 billion at March 31, 2020, an increase of $3.6 billion, or 29.8%, since March 31, 2019, primarily due to the 2019 mergers, but partially offset by the reclassification of $58.4 million of deposits associated with the Colorado branches held for sale.

 

Net Interest Income

 

  1st Qtr
2020
4th Qtr
2019
3rd Qtr
2019
2nd Qtr
2019
1st Qtr
2019
Loan yield (1) 5.19% 5.43% 5.47% 5.58% 5.53%
Core loan yield (1) (2) 4.86% 5.00% 5.19% 5.26% 5.29%
Security yield (1) 2.63% 2.73% 2.87% 3.06% 3.11%
Cost of interest bearing deposits 1.03% 1.22% 1.40% 1.37% 1.31%
Cost of deposits (3) 0.80% 0.94% 1.09% 1.07% 1.02%
Cost of borrowed funds 2.06% 2.30% 2.52% 2.50% 2.73%
Net interest margin (1) 3.68% 3.78% 3.82% 3.94% 3.86%
Core net interest margin (1) (2) 3.42% 3.44% 3.59% 3.67% 3.68%

 

(1)Fully tax equivalent using an effective tax rate of 26.135%.
(2)Core loan yield and core net interest margin exclude accretion and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
(3)Includes non-interest bearing deposits.

 

 

The Company’s net interest income for the first quarter of 2020 was $167.5 million, an increase of $31.5 million, or 23.2%, from the same period of 2019 as a result of the 2019 mergers. Included in interest income was the yield accretion recognized on loans acquired of $11.8 million and $6.7 million for the first quarters of 2020 and 2019, respectively.

 

Net interest margin (FTE) was 3.68% for the quarter ended March 31, 2020, while core net interest margin, which excludes the accretion, was 3.42% for the same period. The decrease in the net interest margin during the first quarter of 2020 was due to a timing difference between the Company’s ability to manage the rate decrease in its variable rate loan portfolio and its repricing of interest bearing deposits in response to the substantial interest rate cuts by the Federal Open Market Committee of the Federal Reserve in March.

 

 

 

 

 

Non-Interest Income

 

Non-interest income for the first quarter of 2020 was $82.4 million, an increase of $47.6 million compared to the same period in the previous year. During the first quarter 2020, the Company sold approximately $1.0 billion in securities resulting in a gain of $30.1 million. In addition, the Company recognized a $5.9 million gain associated with the sale of the branches in south Texas recorded in Other Income, which the Company considers a non-core item.

 

Selected Non-Interest Income Items

($ in millions)

1st Qtr
2020
4th Qtr
2019
3rd Qtr
2019
2nd Qtr
2019
1st Qtr
2019
Service charges on deposit accounts $13.3 $13.3 $10.8 $10.6 $10.1
Mortgage lending income $5.0 $4.0 $4.5 $3.7 $2.8
SBA lending income $0.3 $0.3 $1.0 $0.9 $0.5
Debit and credit card fees $7.9 $8.9 $7.1 $7.2 $6.1
Gain on sale of securities $32.1 $0.4 $7.4 $2.8 $2.7
Other income $12.8 $7.1 $44.7 $6.1 $4.2
           
Core other income(1) $6.9 $7.1 $44.7 $6.1 $4.2

 

(1)Core figures exclude non-core items and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

 

Non-Interest Expense

 

Non-interest expense for the first quarter of 2020 was $125.8 million, an increase of $24.4 million compared to the first quarter of 2019. Included in this quarter were $1.3 million of pre-tax non-core items for merger-related expenses and branch right-sizing costs. Excluding these expenses, core non-interest expense was $124.5 million for the first quarter of 2020, an increase of $25.0 million compared to the same period in 2019, primarily the result of the 2019 mergers and additional software and technology costs related to the Next Generation Banking (“NGB”) initiative.

 

The efficiency ratio for the first quarter of 2020 was 56.38% compared to 56.76% for the same period in 2019.

 

Selected Non-Interest Expense Items

($ in millions)

1st Qtr
2020
4th Qtr
2019
3rd Qtr
2019
2nd Qtr
2019
1st Qtr
2019
Salaries and employee benefits $67.9 $63.2 $52.1 $56.1 $56.4
Merger related costs $1.1 $24.8 $2.6 $7.5 $1.5
Other operating expenses $38.8 $38.0 $37.9 $32.9 $30.1
           
Core salaries and employee benefits(1) $67.9 $63.2 $51.9 $53.2 $56.0
Core merger related costs(1) - - - - -
Core other operating expenses(1) $38.6 $38.0 $37.8 $30.0 $30.1

 

(1)Core figures exclude non-core items and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

 

Asset Quality

 

  1st Qtr
2020
4th Qtr
2019
3rd Qtr
2019
2nd Qtr
2019
1st Qtr
2019
Allowance for credit losses to total loans 1.69% 0.47% 0.51% 0.49% 0.52%
Allowance for credit losses to non-performing loans 154% 74% 78% 60% 63%
Non-performing loans to total loans 1.10% 0.64% 0.65% 0.81% 0.81%
Net charge-off ratio (annualized) 0.07% 0.09% 0.59% 0.11% 0.19%
Net charge-off ratio YTD (annualized) 0.07% 0.24% 0.30% 0.15% 0.19%

 

At March 31, 2020, the allowance for credit losses was $243.2 million. Provision for credit losses for the first quarter of 2020 was $26.1 million.

 

 

 

Foreclosed Assets and Other Real Estate Owned

 

At March 31, 2020, foreclosed assets and other real estate owned were $20.8 million, an increase of $1.9 million, or 9.8%, compared to the same period in 2019 and an increase of $1.7 million, or 8.8% from December 31, 2019. The increase from year end was primarily due the closure of six branches in conjunction with the February 2020 system conversion of Landmark Bank into Simmons Bank. The composition of these assets is divided into three types:

 

 

($ in millions)

1st Qtr
2020
4th Qtr
2019
3rd Qtr
2019
2nd Qtr
2019
1st Qtr
2019
Closed bank branches, branch sites & associate relocation

$8.8

$5.7

$5.9

$6.5

$7.6

Foreclosed assets – acquired $9.2 $10.3 $10.1 $13.3 $6.2
Foreclosed assets – legacy $2.8 $3.1 $3.6 $5.0 $5.2

 

Capital

 

  1st Qtr
2020
4th Qtr
2019
3rd Qtr
2019
2nd Qtr
2019
1st Qtr
2019
Stockholders’ equity to total assets 13.7% 14.1% 14.3% 13.8% 14.3%
Tangible common equity to tangible assets 8.4% 9.0% 9.1% 8.5% 9.0%
Regulatory tier 1 leverage ratio 9.0% 9.6% 9.1% 8.9% 9.1%
Regulatory total risk-based capital ratio 14.1% 13.7% 13.2% 12.7% 13.6%

 

At March 31, 2020, common stockholders' equity was $2.8 billion. Book value per share was $26.11 and tangible book value per share was $15.22 at March 31, 2020, compared to $26.30 and $15.89, respectively, at December 31, 2019. The ratio of stockholders’ equity to total assets was 13.7% at March 31, 2020, compared to 14.1% at December 31, 2019 while the tangible common equity to tangible assets was 8.4% at March 31, 2020, compared to 9.0% from the previous year-end.

 

Effective March 4, 2020, the Company’s board of directors approved an amendment to the Company’s stock repurchase program originally approved on October 17, 2019 to increase the amount of common stock that may be repurchased under the program from a maximum of $60 million to $180 million. During the first quarter of 2020, the Company repurchased approximately 4,900,000 shares of its commons stock at an average price of $18.94. No shares have been repurchased since March 31, 2020. Market conditions and our capital needs will drive the decisions regarding additional, future stock repurchases.

 

Current Expected Credit Losses (“CECL”)

 

In 2016, new accounting guidance was issued that introduced a new credit loss methodology, the CECL methodology, which requires earlier recognition of credit losses, while also providing additional transparency about credit risk.

 

The CECL methodology replaces the current incurred loss methodology with a lifetime “expected credit loss” measurement objective for loans, held-to-maturity debt securities and other receivables measured at amortized cost at the time the financial asset is originated or acquired. This standard requires the consideration of historical loss experience and current conditions adjusted for reasonable and supportable economic forecasts. The Company has elected to utilize a blended macroeconomic scenario using a one-year forecast horizon with a subsequent reversion to historical loss experience. Within the life cycle of a loan or other financial asset, this new guidance will generally result in the earlier recognition of the provision for credit losses and the related allowance for credit losses than previous practice. The CECL guidance was effective for the Company as of January 1, 2020. Upon adoption, the Company recorded an additional allowance for credit losses of approximately $151 million and an adjustment to the reserve for unfunded commitments of $24 million with a related $128 million as an adjustment to retained earnings, net of income taxes. The adjustment was based upon the Company’s analysis of current conditions, assumptions and economic forecasts.

 

COVID-19 Impact

 

In March 2020, Congress passed the Coronavirus Aid, Relief and Economic Security (“CARES”) Act, which is designed to provide comprehensive relief to individuals and businesses following the unprecedented impact of the COVID-19 pandemic. The CARES Act includes approximately $2 trillion in assistance and a key component is the Paycheck Protection Program (“PPP”), which provides 100% federally guaranteed loans for small businesses to cover up to eight weeks of payroll costs to retain their workforce and assist with mortgage interest, rent and utilities. Notably, these small business loans may be forgiven if borrowers maintain their payrolls and satisfy certain other conditions during the crisis.

 

 

 

In response to the economic hardships associated with the COVID-19 pandemic, as of April 16th, the Company has obtained approval from the SBA for over 3,100 PPP loans totaling over $745 million for existing and new customers. The Company is continually monitoring the PPP and making the necessary adjustments to its own operations.

 

In addition, the Company has completed or is in the process of modifying more than 3,600 loans totaling over $2.8 billion. The Company is dedicated to supporting its customers and communities throughout this period of uncertainty.

 

In March and in response to the pandemic, the Company announced temporary closure of 52 branches and has been focusing on the enhanced digital banking experience.

 

The Company has implemented business continuity plans to help ensure that customers have adequate access to banking services while at the same time working to protect associates through heightened safety procedures. As of March 31, 2020, the Company has approximately $4.7 billion in liquidity sources available and is well capitalized, which management believes should allow the Company to approach the crisis from a position of strength.

 

Simmons First National Corporation

 

Simmons First National Corporation is a financial holding company headquartered in Pine Bluff, Arkansas, with total consolidated assets of approximately $20.8 billion as of March 31, 2020, conducting financial operations in Arkansas, Colorado, Illinois, 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 Market under the symbol “SFNC.”

 

Conference Call

 

Management will conduct a live conference call to review this information beginning at 9:00 a.m. CDT today, Tuesday, April 21, 2020. 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 5979394. 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 adjust GAAP performance measures to, among other things, include the tax benefit associated with revenue items that are tax-exempt, as well as exclude from income available to common shareholders certain expenses related to significant non-core activities, including merger-related expenses, gain on sale of branches and branch right-sizing expenses. In addition, the Company also presents certain figures based on tangible common stockholders’ equity and tangible book value, which exclude goodwill and other intangible assets. The Company’s management believes that these non-GAAP financial measures are useful to investors because they present the results of the Company’s ongoing operations without the effect of mergers or other items not central to the Company’s ongoing business, as well as normalizing for tax effects. Management, therefore, 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

 

Some of the statements in this news release may not be based on historical facts and should be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by reference to future periods or by the use of forward-looking terminology, such as “believe,” “budget,” “expect,” “foresee,” “anticipate,” “intend,” “indicate,” “target,” “estimate,” “plan,” “project,” “continue,” “contemplate,” “positions,” “prospects,” “predict,” or “potential,” by future conditional verbs such as “will,” “would,” “should,” “could,” “might” or “may,” or by variations of such words or by similar expressions. These forward-looking statements include, without limitation, statements relating to Simmons’ future growth, revenue, assets, asset quality, profitability, net interest margin, non-interest revenue, share repurchase program, acquisition strategy, NGB initiative, the Company’s ability to recruit and retain key employees, the adequacy of the allowance for credit losses, and the ability of the Company to manage the impact of the COVID-19 pandemic. Any forward-looking statement speaks only as of the date of this news release, and Simmons undertakes 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 are based on various assumptions and involve inherent risk and uncertainties. Various factors, including, but not limited to, changes in economic conditions, credit quality, interest rates, loan demand, deposit flows, real estate values, the assumptions used in making the forward-looking statements, the securities markets generally or the price of Simmons common stock specifically, and information technology affecting the financial industry; the effects of the COVID-19 pandemic on, among other things, the Company’s operations, liquidity, and credit quality; general economic and market conditions; unemployment; potential claims, damages, and fines related to litigation or government actions, including litigation or actions arising from the Company’s participation in and administration of programs related to the COVID-19 pandemic (including, among other things, the CARES Act); changes in accounting principles relating to loan loss recognition (CECL); the Company’s ability to manage and successfully integrate its mergers and acquisitions; cyber threats, attacks or events; reliance on third parties for key services; and other factors, many of which are beyond the control of the Company, could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect the Company’s financial results is included in its Form 10-K for the year ended December 31, 2019, which has been filed with, and is available from, the U.S. Securities and Exchange Commission.

 

####

 

FOR MORE INFORMATION CONTACT:

Stephen C. Massanelli

EVP, Chief Administrative Officer and Investor Relations Officer

Simmons First National Corporation

steve.massanelli@simmonsbank.com

 

 

 

 

 

Simmons First National Corporation              SFNC
Consolidated End of Period Balance Sheets               
For the Quarters Ended  Mar 31  Dec 31  Sep 30  Jun 30  Mar 31
(Unaudited)  2020  2019  2019  2019  2019
($ in thousands)               
ASSETS                         
Cash and non-interest bearing balances due from banks  $244,123   $277,208   $161,440   $145,491   $151,112 
Interest bearing balances due from banks and federal funds sold   1,493,076    719,415    368,530    509,765    340,049 
Cash and cash equivalents   1,737,199    996,623    529,970    655,256    491,161 
Interest bearing balances due from banks - time   4,309    4,554    5,041    5,041    4,684 
Investment securities - held-to-maturity   53,968    40,927    42,237    47,455    61,435 
Investment securities - available-for-sale   2,466,640    3,288,343    2,210,931    2,191,573    2,092,637 
Mortgage loans held for sale   49,984    58,102    50,099    34,999    18,480 
Other assets held for sale   115,315    260,332    383    397    397 
Loans:                         
Loans   14,374,277    14,425,704    13,003,549    13,128,125    11,742,049 
Allowance for credit losses on loans   (243,195)   (68,244)   (66,590)   (64,179)   (60,555)
Net loans   14,131,082    14,357,460    12,936,959    13,063,946    11,681,494 
Premises and equipment   484,990    492,384    378,678    370,551    333,740 
Foreclosed assets and other real estate owned   20,805    19,121    19,576    24,761    18,952 
Interest receivable   57,039    62,707    53,966    54,781    51,796 
Bank owned life insurance   255,197    254,152    234,655    233,345    192,736 
Goodwill   1,064,978    1,055,520    926,648    926,450    845,687 
Other intangible assets   121,673    127,340    101,149    104,096    88,694 
Other assets   278,173    241,578    268,219    224,784    209,746 
Total assets  $20,841,352   $21,259,143   $17,758,511   $17,937,435   $16,091,639 
                          
LIABILITIES AND STOCKHOLDERS' EQUITY                         
Deposits:                         
Non-interest bearing transaction accounts  $3,572,244   $3,741,093   $3,044,330   $2,954,032   $2,674,034 
Interest bearing transaction accounts and savings deposits   8,840,678    9,090,878    7,337,571    7,258,005    6,666,823 
Time deposits   3,146,811    3,276,969    3,086,108    3,304,176    2,648,674 
Total deposits   15,559,733    16,108,940    13,468,009    13,516,213    11,989,531 
Federal funds purchased and securities sold                         
under agreements to repurchase   377,859    150,145    116,536    130,470    120,213 
Other borrowings   1,396,829    1,297,599    1,098,395    1,324,094    1,169,989 
Subordinated notes and debentures   388,396    388,260    354,223    354,132    354,041 
Other liabilities held for sale   58,405    159,853    -    162    162 
Accrued interest and other liabilities   214,730    165,422    174,277    142,851    155,382 
Total liabilities   17,995,952    18,270,219    15,211,440    15,467,922    13,789,318 
                          
Stockholders' equity:                         
Preferred stock   767    767    -    -    - 
Common stock   1,090    1,136    966    966    926 
Surplus   2,026,420    2,117,282    1,708,058    1,705,262    1,599,566 
Undivided profits   778,893    848,848    814,338    747,969    707,829 
Accumulated other comprehensive income (loss):                         
Unrealized accretion (depreciation) on AFS securities   38,230    20,891    23,709    15,316    (6,000)
Total stockholders' equity   2,845,400    2,988,924    2,547,071    2,469,513    2,302,321 
Total liabilities and stockholders' equity  $20,841,352   $21,259,143   $17,758,511   $17,937,435   $16,091,639 

 

Page 1

 

Simmons First National Corporation              SFNC
Consolidated Statements of Income - Quarter-to-Date               
For the Quarters Ended  Mar 31  Dec 31  Sep 30  Jun 30  Mar 31
(Unaudited)  2020  2019  2019  2019  2019
($ in thousands, except per share data)               
INTEREST INCOME                         
Loans  $187,566   $193,402   $179,971   $178,122   $159,440 
Interest bearing balances due from banks and federal funds sold   2,441    2,625    1,586    1,121    2,154 
Investment securities   18,943    16,962    14,467    15,666    16,281 
Mortgage loans held for sale   281    402    382    332    210 
TOTAL INTEREST INCOME   209,231    213,391    196,406    195,241    178,085 
INTEREST EXPENSE                         
Time deposits   13,323    16,198    15,573    14,606    12,320 
Other deposits   17,954    20,331    21,363    20,190    18,430 
Federal funds purchased and securities                         
sold under agreements to repurchase   759    368    249    257    136 
Other borrowings   4,877    4,615    5,381    6,219    6,793 
Subordinated notes and debentures   4,835    4,813    4,576    4,541    4,411 
TOTAL INTEREST EXPENSE   41,748    46,325    47,142    45,813    42,090 
NET INTEREST INCOME   167,483    167,066    149,264    149,428    135,995 
Provision for credit losses   26,134    4,903    21,973    7,079    9,285 
NET INTEREST INCOME AFTER PROVISION                         
FOR CREDIT LOSSES   141,349    162,163    127,291    142,349    126,710 
NON-INTEREST INCOME                         
Trust income   7,151    7,430    6,108    5,794    5,708 
Service charges on deposit accounts   13,328    13,332    10,825    10,557    10,068 
Other service charges and fees   1,588    1,915    1,308    1,312    1,289 
Mortgage lending income   5,046    4,029    4,509    3,656    2,823 
SBA lending income   296    321    956    895    497 
Investment banking income   877    822    513    360    618 
Debit and credit card fees   7,914    8,920    7,059    7,212    6,098 
Bank owned life insurance income   1,298    1,411    1,302    1,260    795 
Gain on sale of securities, net   32,095    377    7,374    2,823    2,740 
Other income   12,801    7,073    44,721    6,065    4,156 
TOTAL NON-INTEREST INCOME   82,394    45,630    84,675    39,934    34,792 
NON-INTEREST EXPENSE                         
Salaries and employee benefits   67,924    63,235    52,065    56,128    56,367 
Occupancy expense, net   9,510    9,272    8,342    6,919    7,475 
Furniture and equipment expense   5,723    5,758    4,898    4,206    3,358 
Other real estate and foreclosure expense   325    1,089    1,125    591    637 
Deposit insurance   2,475    (134)   -    2,510    2,040 
Merger-related costs   1,068    24,831    2,556    7,522    1,470 
Other operating expenses   38,788    38,044    37,879    32,867    30,062 
TOTAL NON-INTEREST EXPENSE   125,813    142,095    106,865    110,743    101,409 
NET INCOME BEFORE INCOME TAXES   97,930    65,698    105,101    71,540    60,093 
Provision for income taxes   20,694    12,976    23,275    15,616    12,398 
NET INCOME   77,236    52,722    81,826    55,924    47,695 
Preferred stock dividends   13    13    -    326    - 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS  $77,223   $52,709   $81,826   $55,598   $47,695 
BASIC EARNINGS PER SHARE  $0.68   $0.49   $0.85   $0.58   $0.52 
DILUTED EARNINGS PER SHARE  $0.68   $0.49   $0.84   $0.58   $0.51 

 

Page 2

 

Simmons First National Corporation           SFNC
Consolidated Risk-Based Capital               
For the Quarters Ended  Mar 31  Dec 31  Sep 30  Jun 30  Mar 31
(Unaudited)  2020  2019  2019  2019  2019
($ in thousands)               
Tier 1 capital                         
Stockholders' equity  $2,845,400   $2,988,924   $2,547,071   $2,469,513   $2,302,321 
CECL transition provision (1)   134,558    -    -    -    - 
Disallowed intangible assets, net of deferred tax   (1,164,038)   (1,160,079)   (1,013,309)   (1,001,676)   (910,122)
Unrealized (gain) loss on AFS securities   (38,230)   (20,891)   (23,709)   (15,316)   6,000 
Total Tier 1 capital   1,777,690    1,807,954    1,510,053    1,452,521    1,398,199 
                          
Tier 2 capital                         
Trust preferred securities and subordinated debt   388,396    388,260    354,223    354,132    354,041 
Qualifying allowance for loan losses and                         
reserve for unfunded commitments   96,015    76,644    74,455    72,044    67,771 
Total Tier 2 capital   484,411    464,904    428,678    426,176    421,812 
Total risk-based capital  $2,262,101   $2,272,858   $1,938,731   $1,878,697   $1,820,011 
                          
Risk weighted assets  $16,012,233   $16,554,081   $14,725,571   $14,825,253   $13,364,636 
                          
Adjusted average assets for leverage ratio  $19,832,219   $18,852,798   $16,681,527   $16,382,520   $15,423,961 
                          
Ratios at end of quarter                         
Equity to assets   13.65%   14.06%   14.34%   13.77%   14.31%
Tangible common equity to tangible assets (2)   8.44%   8.99%   9.08%   8.51%   9.02%
Common equity Tier 1 ratio (CET1)   11.10%   10.92%   10.25%   9.80%   10.46%
Tier 1 leverage ratio   8.96%   9.59%   9.05%   8.87%   9.07%
Tier 1 risk-based capital ratio   11.10%   10.92%   10.25%   9.80%   10.46%
Total risk-based capital ratio   14.13%   13.73%   13.17%   12.67%   13.62%

 

(1)The Company has elected to use the CECL transition provision allowed for in the year of adopting ASC 326.
(2)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 Investment Securities               
For the Quarters Ended  Mar 31  Dec 31  Sep 30  Jun 30  Mar 31
(Unaudited)  2020  2019  2019  2019  2019
($ in thousands)               
Investment Securities - End of Period                         
Held-to-Maturity                         
U.S. Government agencies  $-   $-   $-   $999   $12,996 
Mortgage-backed securities   27,121    10,796    11,549    12,225    12,847 
State and political subdivisions   26,082    27,082    28,692    32,236    33,597 
Other securities   765    3,049    1,996    1,995    1,995 
Total held-to-maturity (net of credit losses)   53,968    40,927    42,237    47,455    61,435 
Available-for-Sale                         
U.S. Government agencies  $161,289   $194,249   $178,139   $197,656   $161,577 
Mortgage-backed securities   1,179,837    1,742,945    1,337,794    1,345,760    1,345,677 
State and political subdivisions   678,338    880,524    681,202    636,558    580,790 
Other securities   22,187    20,896    13,796    11,599    4,593 
Total available-for-sale (net of credit losses)   2,466,640    3,288,343    2,210,931    2,191,573    2,092,637 
Total investment securities (net of credit losses)  $2,520,608   $3,329,270   $2,253,168   $2,239,028   $2,154,072 
Fair value - HTM investment securities  $56,123   $41,855   $43,302   $48,640   $61,956 
                          
Investment Securities - QTD Average                         
Taxable securities  $2,324,188   $1,940,755   $1,561,308   $1,641,986   $1,725,568 
Tax exempt securities   900,223    825,000    681,505    624,898    590,941 
Total investment securities - QTD average  $3,224,411   $2,765,755   $2,242,813   $2,266,884   $2,316,509 

 

Page 4

 

Simmons First National Corporation           SFNC
Consolidated Allowance and Asset Quality               
For the Quarters Ended  Mar 31  Dec 31  Sep 30  Jun 30  Mar 31
(Unaudited)  2020  2019  2019  2019  2019
($ in thousands)               
Allowance for Credit Losses on Loans                         
Beginning balance, prior to adoption of ASC 326  $68,244   $66,590   $64,179   $60,555   $56,694 
Impact of adopting ASC 326 (1)  $151,377                     
Beginning balance, after adoption of ASC 326  $219,621                     
                          
Loans charged off                         
Credit cards   1,441    1,287    1,117    1,039    1,142 
Other consumer   1,379    1,425    1,065    964    1,553 
Real estate   396    892    1,367    1,216    417 
Commercial   523    459    17,778    1,963    3,152 
Total loans charged off   3,739    4,063    21,327    5,182    6,264 
                          
Recoveries of loans previously charged off                         
Credit cards   225    287    223    271    240 
Other consumer   443    304    1,422    331    300 
Real estate   101    146    55    158    142 
Commercial   347    77    65    967    158 
Total recoveries   1,116    814    1,765    1,727    840 
Net loans charged off   2,623    3,249    19,562    3,455    5,424 
Provision for credit losses on loans   26,197    4,903    21,973    7,079    9,285 
Balance, end of quarter  $243,195   $68,244   $66,590   $64,179   $60,555 
                          
Non-performing assets                         
Non-performing loans                         
Nonaccrual loans  $156,746   $91,723   $84,660   $106,670   $95,286 
Loans past due 90 days or more   1,305    855    177    277    305 
Total non-performing loans   158,051    92,578    84,837    106,947    95,591 
Other non-performing assets                         
Foreclosed assets and other real estate owned   20,805    19,121    19,576    24,761    18,952 
  Other non-performing assets   2,169    1,964    540    613    505 
Total other non-performing assets   22,974    21,085    20,116    25,374    19,457 
Total non-performing assets  $181,025   $113,663   $104,953   $132,321   $115,048 
Performing TDRs (troubled debt restructurings)  $4,110   $4,411   $6,519   $6,246   $6,297 
                          
Ratios                         
Allowance for credit losses to total loans   1.69%   0.47%   0.51%   0.49%   0.52%
Allowance for credit losses to non-performing loans   154%   74%   78%   60%   63%
Non-performing loans to total loans   1.10%   0.64%   0.65%   0.81%   0.81%
Non-performing assets (including performing TDRs)                         
to total assets   0.89%   0.56%   0.63%   0.77%   0.75%
Non-performing assets to total assets   0.87%   0.53%   0.59%   0.74%   0.71%
Annualized net charge offs to total loans   0.07%   0.09%   0.59%   0.11%   0.19%
Annualized net credit card charge offs to                         
total credit card loans   2.26%   1.99%   1.82%   1.63%   1.92%

 

(1)The Company adopted ASC 326.effective January 1, 2020.

 

Page 5

 

Simmons First National Corporation                       SFNC
Consolidated - Average Balance Sheet and Net Interest Income Analysis                  
For the Quarters Ended                           
(Unaudited)                           
   Three Months Ended
Mar 2020
  Three Months Ended
Dec 2019
  Three Months Ended
Mar 2019
($ 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                                             
and federal funds sold  $764,639   $2,441    1.28%  $789,035   $2,625    1.32%  $394,462   $2,154    2.21%
Investment securities - taxable   2,324,188    12,752    2.21%   1,940,755    11,080    2.27%   1,725,568    11,958    2.81%
Investment securities - non-taxable (FTE)   900,223    8,315    3.71%   825,000    7,945    3.82%   590,941    5,834    4.00%
Mortgage loans held for sale   43,588    281    2.59%   53,511    402    2.98%   17,733    210    4.80%
Loans (FTE)   14,548,853    187,747    5.19%   14,144,259    193,511    5.43%   11,710,075    159,530    5.53%
Total interest earning assets (FTE)   18,581,491    211,536    4.58%   17,752,560    215,563    4.82%   14,438,779    179,686    5.05%
Non-earning assets   2,338,732              2,289,330              1,863,418           
Total assets  $20,920,223             $20,041,890             $16,302,197           
                                              
LIABILITIES AND STOCKHOLDERS' EQUITY                                             
Interest bearing liabilities:                                             
Interest bearing transaction and                                             
savings accounts  $9,005,701   $17,954    0.80%  $8,440,090   $20,331    0.96%  $6,749,032   $18,430    1.11%
Time deposits   3,150,909    13,323    1.70%   3,393,089    16,198    1.89%   2,781,592    12,320    1.80%
Total interest bearing deposits   12,156,610    31,277    1.03%   11,833,179    36,529    1.22%   9,530,624    30,750    1.31%
Federal funds purchased and securities                                             
sold under agreement to repurchase   330,902    759    0.92%   147,395    368    0.99%   109,302    136    0.50%
Other borrowings   1,320,245    4,877    1.49%   1,168,897    4,615    1.57%   1,224,255    6,793    2.25%
Subordinated notes and debentures   388,330    4,835    5.01%   376,766    4,813    5.07%   353,996    4,411    5.05%
Total interest bearing liabilities   14,196,087    41,748    1.18%   13,526,237    46,325    1.36%   11,218,177    42,090    1.52%
Non-interest bearing liabilities:                                             
Non-interest bearing deposits   3,602,678              3,524,092              2,707,715           
Other liabilities   251,514              379,909              127,407           
Total liabilities   18,050,279              17,430,238              14,053,299           
Stockholders' equity   2,869,944              2,611,652              2,248,898           
Total liabilities and stockholders' equity  $20,920,223             $20,041,890             $16,302,197           
Net interest income (FTE)       $169,788             $169,238             $137,596      
Net interest spread (FTE)             3.40%             3.46%             3.53%
Net interest margin (FTE) - quarter-to-date             3.68%             3.78%             3.86%
                                              
Net interest margin (FTE) - year-to-date             3.68%             3.85%             3.86%
                                              
Core net interest margin (FTE) - quarter-to-date (1)             3.42%             3.44%             3.68%
Core loan yield (FTE) - quarter-to-date (1)             4.86%             5.00%             5.29%
                                              
Core net interest margin (FTE) - year-to-date (1)             3.42%             3.59%             3.68%
Core loan yield (FTE) - year-to-date (1)             4.86%             5.18%             5.29%

 

(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 6

 

Simmons First National Corporation           SFNC
Consolidated - Selected Financial Data               
For the Quarters Ended  Mar 31  Dec 31  Sep 30  Jun 30  Mar 31
(Unaudited)  2020  2019  2019  2019  2019
($ in thousands, except share data)               
QUARTER-TO-DATE                         
Financial Highlights - GAAP                         
Net Income  $77,223   $52,709   $81,826   $55,598   $47,695 
Diluted earnings per share   0.68    0.49    0.84    0.58    0.51 
Return on average assets   1.48%   1.04%   1.83%   1.28%   1.19%
Return on average common equity   10.83%   8.01%   13.70%   9.48%   8.60%
Return on tangible common equity   19.00%   14.62%   24.89%   17.40%   15.34%
Net interest margin (FTE)   3.68%   3.78%   3.82%   3.94%   3.86%
FTE adjustment   2,305    2,172    1,843    1,706    1,601 
Amortization of intangibles   3,413    3,270    2,947    2,947    2,641 
Amortization of intangibles, net of taxes   2,521    2,416    2,176    2,177    1,951 
Average diluted shares outstanding   113,136,995    108,472,559    96,968,775    96,367,857    92,870,813 
Shares repurchased under plan   4,922,336    390,000    -    -    - 
Average price of shares repurchased   18.95    25.95    -    -    - 
Cash dividends declared per common share   0.17    0.16    0.16    0.16    0.16 
Financial Highlights - Core (non-GAAP)                         
Core earnings (excludes non-core items) (1)  $73,838   $71,074   $83,963   $65,453   $49,076 
Core diluted earnings per share (1)   0.65    0.66    0.87    0.68    0.53 
Core net interest margin (FTE) (2)   3.42%   3.44%   3.59%   3.67%   3.68%
Accretable yield on acquired loans   11,837    15,100    9,322    10,162    6,660 
Efficiency ratio (1)   56.38%   52.63%   43.77%   49.88%   56.76%
Core return on average assets (1)   1.42%   1.41%   1.88%   1.51%   1.22%
Core return on average common equity (1)   10.35%   10.80%   14.06%   11.16%   8.85%
Core return on tangible common equity (1)   18.19%   19.49%   25.52%   20.36%   15.76%
YEAR-TO-DATE                         
Financial Highlights - GAAP                         
Net Income  $77,223   $237,828   $185,119   $103,293   $47,695 
Diluted earnings per share   0.68    2.41    1.94    1.09    0.51 
Return on average assets   1.48%   1.33%   1.44%   1.24%   1.19%
Return on average common equity   10.83%   9.93%   10.65%   9.05%   8.60%
Return on tangible common equity   19.00%   17.99%   19.27%   16.38%   15.34%
Net interest margin (FTE)   3.68%   3.85%   3.88%   3.90%   3.86%
FTE adjustment   2,305    7,322    5,150    3,307    1,601 
Amortization of intangibles   3,413    11,805    8,535    5,588    2,641 
Amortization of intangibles, net of taxes   2,521    8,720    6,304    4,128    1,951 
Average diluted shares outstanding   113,136,995    98,796,628    95,450,732    94,588,739    92,870,813 
Cash dividends declared per common share   0.17    0.64    0.48    0.32    0.16 
Financial Highlights - Core (non-GAAP)                         
Core earnings (excludes non-core items) (1)  $73,838   $269,566   $198,492   $114,529   $49,076 
Core diluted earnings per share (1)   0.65    2.73    2.08    1.21    0.53 
Core net interest margin (FTE) (2)   3.42%   3.59%   3.64%   3.68%   3.68%
Accretable yield on acquired loans   11,837    41,244    26,144    16,822    6,660 
Efficiency ratio (1)   56.38%   50.33%   49.49%   53.14%   56.76%
Core return on average assets (1)   1.42%   1.51%   1.55%   1.37%   1.22%
Core return on average common equity (1)   10.35%   11.25%   11.42%   10.04%   8.85%
Core return on tangible common equity (1)   18.19%   20.31%   20.62%   18.09%   15.76%
END OF PERIOD                         
Book value per share  $26.11   $26.30   $26.36   $25.57   $24.87 
Tangible book value per share   15.22    15.89    15.73    14.90    14.78 
Shares outstanding   108,947,520    113,628,601    96,613,855    96,590,656    92,568,361 
Full-time equivalent employees   3,079    3,270    2,701    2,700    2,602 
Total number of financial centers   240    251    212    212    191 

 

(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 7

 

Simmons First National Corporation           SFNC
Consolidated - Reconciliation of Core Earnings (non-GAAP)         
For the Quarters Ended  Mar 31  Dec 31  Sep 30  Jun 30  Mar 31
(Unaudited)  2020  2019  2019  2019  2019
($ in thousands, except per share data)               
QUARTER-TO-DATE                         
Net Income  $77,223   $52,709   $81,826   $55,598   $47,695 
Non-core items                         
Gain on sale of branches   (5,889)   -    -    -    - 
Merger-related costs   1,068    24,831    2,556    7,522    1,470 
Early retirement program   -    -    177    2,932    355 
Branch right-sizing   238    37    160    2,887    45 
Tax effect (1)   1,198    (6,503)   (756)   (3,486)   (489)
Net non-core items   (3,385)   18,365    2,137    9,855    1,381 
Core earnings (non-GAAP)  $73,838   $71,074   $83,963   $65,453   $49,076 
                          
Diluted earnings per share  $0.68   $0.49   $0.84   $0.58   $0.51 
Non-core items                         
Gain on sale of branches   (0.05)   -    -    -    - 
Merger-related costs   0.01    0.23    0.04    0.08    0.02 
Early retirement program   -    -    -    0.03    0.01 
Branch right-sizing   -    -    -    0.03    - 
Tax effect (1)   0.01    (0.06)   (0.01)   (0.04)   (0.01)
Net non-core items   (0.03)   0.17    0.03    0.10    0.02 
Core diluted earnings per share (non-GAAP)  $0.65   $0.66   $0.87   $0.68   $0.53 
                          
YEAR-TO-DATE                         
Net Income  $77,223   $237,828   $185,119   $103,293   $47,695 
Non-core items                         
Gain on sale of branches   (5,889)   -    -    -    - 
Merger-related costs   1,068    36,379    11,548    8,992    1,470 
Early retirement program   -    3,464    3,464    3,287    355 
Branch right-sizing   238    3,129    3,092    2,932    45 
Tax effect (1)   1,198    (11,234)   (4,731)   (3,975)   (489)
Net non-core items   (3,385)   31,738    13,373    11,236    1,381 
Core earnings (non-GAAP)  $73,838   $269,566   $198,492   $114,529   $49,076 
                          
Diluted earnings per share  $0.68   $2.41   $1.94   $1.09   $0.51 
Non-core items                         
Gain on sale of branches   (0.05)   -    -    -    - 
Merger-related costs   0.01    0.37    0.12    0.10    0.02 
Early retirement program   -    0.03    0.04    0.03    0.01 
Branch right-sizing   -    0.03    0.03    0.03    - 
Tax effect (1)   0.01    (0.11)   (0.05)   (0.04)   (0.01)
Net non-core items   (0.03)   0.32    0.14    0.12    0.02 
Core diluted earnings per share (non-GAAP)  $0.65   $2.73   $2.08   $1.21   $0.53 

 

(1)Effective tax rate of 26.135%.

 

Reconciliation of Selected Non-Core Non-Interest Expense Items (non-GAAP)                         
                          
QUARTER-TO-DATE                         
Salaries and employee benefits  $67,924   $63,235   $52,065   $56,128   $56,367 
Non-core items (1)   -    -    (176)   (2,937)   (351)
Core salaries and employee benefits (non-GAAP)  $67,924   $63,235   $51,889   $53,191   $56,016 
                          
Merger related costs  $1,068   $24,831   $2,556   $7,522   $1,470 
Non-core items (1)   (1,068)   (24,831)   (2,556)   (7,522)   (1,470)
Core merger related costs (non-GAAP)  $-   $-   $-   $-   $- 
                          
Other operating expenses  $38,788   $38,044   $37,881   $32,867   $30,062 
Non-core items (1)   (212)   (4)   (90)   (2,834)   (10)
Core other operating expenses (non-GAAP)  $38,576   $38,040   $37,791   $30,033   $30,052 

 

(1)Non-core expense items include merger related costs, early retirement program expenses and branch right sizing costs.

 

Page 8

 

Simmons First National Corporation              SFNC
Reconciliation Of Non-GAAP Financial Measures - End of Period         
For the Quarters Ended               
(Unaudited)  Mar 31  Dec 31  Sept 30  Jun 30  Mar 31
   2020  2019  2019  2019  2019
($ 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  $2,844,633   $2,988,157   $2,547,071   $2,469,513   $2,302,321 
Intangible assets:                         
Goodwill   (1,064,978)   (1,055,520)   (926,648)   (926,450)   (845,687)
Other intangible assets   (121,673)   (127,340)   (101,149)   (104,096)   (88,694)
Total intangibles   (1,186,651)   (1,182,860)   (1,027,797)   (1,030,546)   (934,381)
Tangible common stockholders' equity  $1,657,982   $1,805,297   $1,519,274   $1,438,967   $1,367,940 
                          
Total assets  $20,841,352   $21,259,143   $17,758,511   $17,937,435   $16,091,639 
Intangible assets:                         
Goodwill   (1,064,978)   (1,055,520)   (926,648)   (926,450)   (845,687)
Other intangible assets   (121,673)   (127,340)   (101,149)   (104,096)   (88,694)
Total intangibles   (1,186,651)   (1,182,860)   (1,027,797)   (1,030,546)   (934,381)
Tangible assets  $19,654,701   $20,076,283   $16,730,714   $16,906,889   $15,157,258 
                          
Ratio of equity to assets   13.65%   14.06%   14.34%   13.77%   14.31%
Ratio of tangible common equity to tangible assets   8.44%   8.99%   9.08%   8.51%   9.02%
                          
Calculation of Tangible Book Value per Share                         
                          
Total common stockholders' equity  $2,844,633   $2,988,157   $2,547,071   $2,469,513   $2,302,321 
Intangible assets:                         
Goodwill   (1,064,978)   (1,055,520)   (926,648)   (926,450)   (845,687)
Other intangible assets   (121,673)   (127,340)   (101,149)   (104,096)   (88,694)
Total intangibles   (1,186,651)   (1,182,860)   (1,027,797)   (1,030,546)   (934,381)
Tangible common stockholders' equity  $1,657,982   $1,805,297   $1,519,274   $1,438,967   $1,367,940 
Shares of common stock outstanding   108,947,520    113,628,601    96,613,855    96,590,656    92,568,361 
Book value per common share  $26.11   $26.30   $26.36   $25.57   $24.87 
Tangible book value per common share  $15.22   $15.89   $15.73   $14.90   $14.78 

 

Page 9

 

Simmons First National Corporation              SFNC
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date         
For the Quarters Ended               
(Unaudited)  Mar 31  Dec 31  Sept 30  Jun 30  Mar 31
   2020  2019  2019  2019  2019
($ in thousands)               
Calculation of Core Return on Average Assets                         
                          
Net income  $77,223   $52,709   $81,826   $55,598   $47,695 
Net non-core items, net of taxes, adjustment   (3,385)   18,365    2,137    9,855    1,381 
Core earnings  $73,838   $71,074   $83,963   $65,453   $49,076 
                          
Average total assets  $20,920,223   $20,041,890   $17,720,598   $17,382,872   $16,302,197 
                          
Return on average assets   1.48%   1.04%   1.83%   1.28%   1.19%
Core return on average assets   1.42%   1.41%   1.88%   1.51%   1.22%
                          
Calculation of Return on Tangible Common Equity                         
                          
Net income  $77,223   $52,709   $81,826   $55,598   $47,695 
Amortization of intangibles, net of taxes   2,521    2,416    2,176    2,177    1,951 
Total income available to common stockholders  $79,744   $55,125   $84,002   $57,775   $49,646 
                          
Net non-core items, net of taxes   (3,385)   18,365    2,137    9,855    1,381 
Core earnings   73,838    71,074    83,963    65,453    49,076 
Amortization of intangibles, net of taxes   2,521    2,416    2,176    2,177    1,951 
Total core income available to common stockholders  $76,359   $73,490   $86,139   $67,630   $51,027 
                          
Average common stockholders' equity  $2,869,177   $2,611,143   $2,368,773   $2,351,603   $2,248,898 
Average intangible assets:                         
Goodwill   (1,055,498)   (997,004)   (926,687)   (915,445)   (845,687)
Other intangibles   (125,746)   (118,311)   (103,028)   (104,050)   (90,317)
Total average intangibles   (1,181,244)   (1,115,315)   (1,029,715)   (1,019,495)   (936,004)
Average tangible common stockholders' equity  $1,687,933   $1,495,828   $1,339,058   $1,332,108   $1,312,894 
                          
Return on average common equity   10.83%   8.01%   13.70%   9.48%   8.60%
Return on tangible common equity   19.00%   14.62%   24.89%   17.40%   15.34%
Core return on average common equity   10.35%   10.80%   14.06%   11.16%   8.85%
Core return on tangible common equity   18.19%   19.49%   25.52%   20.36%   15.76%
                          
Calculation of Efficiency Ratio (1)                         
                          
Non-interest expense  $125,813   $142,095   $106,865   $110,743   $101,409 
Non-core non-interest expense adjustment   (1,306)   (24,868)   (2,893)   (13,341)   (1,870)
Other real estate and foreclosure expense adjustment   (319)   (1,063)   (1,057)   (563)   (599)
Amortization of intangibles adjustment   (3,413)   (3,270)   (2,947)   (2,947)   (2,641)
Efficiency ratio numerator  $120,775   $112,894   $99,968   $93,892   $96,299 
                          
Net-interest income  $167,483   $167,066   $149,264   $149,428   $135,995 
Non-interest income   82,394    45,630    84,675    39,934    34,792 
Fully tax-equivalent adjustment   2,305    2,172    1,843    1,706    1,601 
Gain on sale of securities   (32,095)   (377)   (7,374)   (2,823)   (2,740)
Efficiency ratio denominator  $214,198   $214,491   $228,408   $188,245   $169,648 
                          
Efficiency ratio (1)   56.38%   52.63%   43.77%   49.88%   56.76%
                          
Calculation of Core Net Interest Margin                         
                          
Net interest income  $167,483   $167,066   $149,264   $149,428   $135,995 
Fully tax-equivalent adjustment   2,305    2,172    1,843    1,706    1,601 
Fully tax-equivalent net interest income   169,788    169,238    151,107    151,134    137,596 
                          
Total accretable yield   (11,837)   (15,100)   (9,322)   (10,162)   (6,660)
Core net interest income  $157,951   $154,138   $141,785   $140,972   $130,936 
Average earning assets  $18,581,491   $17,753,004   $15,680,665   $15,389,670   $14,440,091 
                          
Net interest margin   3.68%   3.78%   3.82%   3.94%   3.86%
Core net interest margin   3.42%   3.44%   3.59%   3.67%   3.68%
                          
Calculation of Core Loan Yield                         
                          
Loan interest income  $187,566   $193,402   $179,971   $178,122   $159,440 
Total accretable yield   (11,837)   (15,100)   (9,322)   (10,162)   (6,660)
Core loan interest income  $175,729   $178,302   $170,649   $167,960   $152,780 
Average loan balance  $14,548,853   $14,144,703   $13,053,540   $12,814,386   $11,711,387 
                          
Core loan yield   4.86%   5.00%   5.19%   5.26%   5.29%

 

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

 

Page 10

 

Simmons First National Corporation              SFNC
Reconciliation Of Non-GAAP Financial Measures - Year-to-Date            
For the Quarters Ended               
(Unaudited)  Mar 31  Dec 31  Sept 30  Jun 30  Mar 31
   2020  2019  2019  2019  2019
($ in thousands)               
Calculation of Core Return on Average Assets                         
                          
Net income  $77,223   $237,828   $185,119   $103,293   $47,695 
Net non-core items, net of taxes, adjustment   (3,385)   31,738    13,373    11,236    1,381 
Core earnings  $73,838   $269,566   $198,492   $114,529   $49,076 
                          
Average total assets  $20,920,223   $17,871,748   $17,140,419   $16,845,528   $16,302,197 
                          
Return on average assets   1.48%   1.33%   1.44%   1.24%   1.19%
Core return on average assets   1.42%   1.51%   1.55%   1.37%   1.22%
                          
Calculation of Return on Tangible Common Equity                         
                          
Net income  $77,223   $237,828   $185,119   $103,293   $47,695 
Amortization of intangibles, net of taxes   2,521    8,720    6,304    4,128    1,951 
Total income available to common stockholders  $79,744   $246,548   $191,423   $107,421   $49,646 
                          
Net non-core items, net of taxes   (3,385)   31,738    13,373    11,236    1,381 
Core earnings   73,838    269,566    198,492    114,529    49,076 
Amortization of intangibles, net of taxes   2,521    8,720    6,304    4,128    1,951 
Total core income available to common stockholders  $76,359   $278,286   $204,796   $118,657   $51,027 
                          
Average common stockholders' equity  $2,869,177   $2,396,024   $2,323,530   $2,300,535   $2,248,898 
Average intangible assets:                         
   Goodwill   (1,055,498)   (921,635)   (896,236)   (880,759)   (845,688)
   Other intangibles   (125,746)   (104,000)   (99,178)   (97,221)   (90,316)
Total average intangibles   (1,181,244)   (1,025,635)   (995,414)   (977,980)   (936,004)
Average tangible common stockholders' equity  $1,687,933   $1,370,389   $1,328,116   $1,322,555   $1,312,894 
                          
Return on average common equity   10.83%   9.93%   10.65%   9.05%   8.60%
Return on tangible common equity   19.00%   17.99%   19.27%   16.38%   15.34%
Core return on average common equity   10.35%   11.25%   11.42%   10.04%   8.85%
Core return on tangible common equity   18.19%   20.31%   20.62%   18.09%   15.76%
                          
Calculation of Efficiency Ratio (1)                         
                          
Non-interest expense  $125,813   $461,112   $319,017   $212,152   $101,409 
Non-core non-interest expense adjustment   (1,306)   (42,972)   (18,104)   (15,211)   (1,870)
Other real estate and foreclosure expense adjustment   (319)   (3,282)   (2,219)   (1,162)   (599)
Amortization of intangibles adjustment   (3,413)   (11,805)   (8,535)   (5,588)   (2,641)
Efficiency ratio numerator  $120,775   $403,053   $290,159   $190,191   $96,299 
                          
Net-interest income  $167,483   $601,753   $434,687   $285,423   $135,995 
Non-interest income   82,394    205,031    159,401    74,726    34,792 
Fully tax-equivalent adjustment   2,305    7,322    5,150    3,307    1,601 
Gain on sale of securities   (32,095)   (13,314)   (12,937)   (5,563)   (2,740)
Efficiency ratio denominator  $214,198   $800,792   $586,301   $357,893   $169,648 
                          
Efficiency ratio (1)   56.38%   50.33%   49.49%   53.14%   56.76%
                          
Calculation of Core Net Interest Margin                         
                          
Net interest income  $167,483   $601,753   $434,687   $285,423   $135,995 
Fully tax-equivalent adjustment   2,305    7,322    5,150    3,307    1,601 
Fully tax-equivalent net interest income   169,788    609,075    439,837    288,730    137,596 
                          
Total accretable yield   (11,837)   (41,244)   (26,144)   (16,822)   (6,660)
Core net interest income  $157,951   $567,831   $413,693   $271,908   $130,936 
Average earning assets  $18,581,491   $15,824,571   $15,174,671   $14,917,493   $14,440,091 
                          
Net interest margin   3.68%   3.85%   3.88%   3.90%   3.86%
Core net interest margin   3.42%   3.59%   3.64%   3.68%   3.68%
                          
Calculation of Core Loan Yield                         
                          
Loan interest income  $187,566   $710,935   $517,533   $337,562   $159,440 
Total accretable yield   (11,837)   (41,244)   (26,144)   (16,822)   (6,660)
Core loan interest income  $175,729   $669,691   $491,389   $320,740   $152,780 
Average loan balance  $14,548,853   $12,938,013   $12,531,355   $12,265,936   $11,711,387 
                          
Core loan yield   4.86%   5.18%   5.24%   5.27%   5.29%

 

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

 

Page 11

 

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Download Annual and Quarterly Reports as PDF, Word and Excel Documents
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FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
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Intrinsic Value Calculator


Intrinsic Value Calculator
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Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

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Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
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Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

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