Exhibit 99.1

 

 

 

 

 

For Immediate Release: July 23, 2018       

 

SIMMONS REPORTS RECORD EARNINGS FOR SECOND QUARTER 2018

 

Pine Bluff, AR – Simmons First National Corporation (NASDAQ-GS: SFNC) today announced record net income of $53.6 million for the quarter ended June 30, 2018, compared to $23.1 million for the same period in 2017, an increase of $30.5 million, or 132.2%. Diluted earnings per share were $0.58, an increase of $0.22, or 61.1%, from the same period in 2017. Included in second quarter 2018 results were $1.1 million in net after-tax merger-related and branch right-sizing costs. Excluding the impact of these items, core earnings were $54.7 million for the quarter ended June 30, 2018, compared to $26.8 million for the quarter ended June 30, 2017, an increase of $27.9 million, or 104.3%. Core diluted earnings per share were $0.59, an increase of $0.17, or 40.5%, from the same period in 2017.

 

Year-to-date net income for the first half of 2018 was $104.9 million, or $1.13 diluted earnings per share, compared to $45.2 million, or $0.71 diluted earnings per share, for the same period in 2017. Excluding $2.4 million in net after-tax merger-related and branch right sizing costs, year-to-date core earnings for 2018 were $107.3 million, an increase of $58.0 million compared to the same period last year.

 

“We are pleased to again report record earnings for this quarter building off the strong results in the first quarter,” said George A. Makris, Jr., chairman and CEO.

 

Makris continued, “The system conversions and integration for our most recent acquisitions are now complete and we are excited to turn our focus on expanding our products and services throughout our larger footprint.”

 

The Company completed a 2-for-1 stock split effective February 8, 2018. Financial statements, including earnings per share as well as other share-related disclosures, have been adjusted to include the impact of the stock split on all periods presented.

 

Selected Highlights:   2nd Qtr 2018    1st Qtr 2018    2nd Qtr 2017 
                
Net income   $53.6 million    $51.3 million    $23.1 million 
Diluted earnings per share   $0.58    $0.55    $0.36 
Return on avg assets   1.38%   1.38%   1.05%
Return on avg common equity   10.05%   9.90%   7.65%
Return on tangible common equity   18.70%   18.77%   12.13%
                
Core earnings(1)   $54.7 million    $52.6 million    $26.8 million 
Diluted core earnings per share(1)   $0.59    $0.57    $0.42 
Core return on avg assets(1)   1.41%   1.41%   1.22%
Core return on avg common equity(1)   10.26%   10.15%   8.87%
Core return on tangible common equity(1)   19.06%   19.23%   13.99%
                
Efficiency ratio   52.70%   53.24%   56.04%

 

(1)Core earnings excludes non-core items, and is a non-GAAP measurement.

 

 

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

 

Loans

 

    2nd Qtr 2018    1st Qtr 2018    2nd Qtr 2017 
                
Total loans   $11.4 billion    $11.0 billion    $6.2 billion 
Legacy loans (all loans excluding loans acquired)   $7.1 billion    $6.3 billion    $5.0 billion 
Loans acquired   $4.3 billion    $4.7 billion    $1.2 billion  

 

Total loans, including those acquired, were $11.4 billion at June 30, 2018, an increase of $5.1 billion, or 82.6% from June 30, 2017.

 

On a linked-quarter basis (June 30, 2018 compared to March 31, 2018), total loans increased $378.6 million, or 3.4%. The increase includes:

 

·$201 million increase in real estate loans
·$131 million increase in commercial loans
·$58 million increase in seasonal agricultural loan growth
·$12 million increase in other loans
·$23 million decrease in liquidating portfolio (indirect lending and consumer finance)

 

Deposits

 

    2nd Qtr 2018    1st Qtr 2018    2nd Qtr 2017 
                
Total deposits   $12.0 billion    $11.7 billion    $7.1 billion 
Non-time deposits   $9.6 billion    $9.5 billion    $5.8 billion 
Time deposits   $2.4 billion    $2.2 billion    $1.3 billion  

 

At June 30, 2018, total deposits were $12.0 billion, an increase of 68.3%, compared to the same period in 2017 and a 2.5% increase from March 31, 2018. The increase is from continued focus on core deposits as a funding source for asset growth and the recent acquisitions. Total non-time deposits increased 65.7% compared to the same period in 2017, and comprised 80.3% of total deposits.

 

Since last quarter, the Federal Reserve Board increased the Fed Funds target rate by 25 basis points. The Company’s deposit beta was 40% and the core loan beta was 36%. Looking back to March 2017, the Federal Reserve has increased the target rate by 100 basis points. The Company’s deposit beta was 51% and the core loan beta was 45% during the same period.

 

Net Interest Income

 

   2nd Qtr
2018
  1st Qtr
2018
  4th Qtr
2017
  3rd Qtr
2017
  2nd Qtr
2017
Loan yield (1)   5.40%   5.38%   5.39%   4.91%   4.96%
Core loan yield (1) (2)   5.04%   4.95%   4.75%   4.72%   4.63%
Security yield (1)   2.75%   2.67%   2.62%   2.64%   2.81%
Cost of interest bearing deposits   0.84%   0.74%   0.63%   0.43%   0.36%
Cost of borrowed funds   2.38%   1.70%   1.78%   1.52%   1.48%
Net interest margin (1)   3.99%   4.17%   4.21%   3.91%   4.04%
Core net interest margin (1) (2)   3.70%   3.82%   3.70%   3.77%   3.79%

 

(1)Fully tax equivalent.
(2)Core loan yield and core net interest margin exclude accretion, and are non-GAAP measurements.

 

The Company’s net interest income for the second quarter of 2018 was $136.8 million, an increase of $60.0 million, or 78.2%, from the same period of 2017. Included in interest income was the yield accretion recognized on loans acquired of $10.1 million and $4.8 million for the second quarters of 2018 and 2017, respectively. Yield accretion was $3.7 million higher than projected during the quarter due to accelerated cash flows of acquired loans. Based on its cash flow projections, the Company expects total accretion for 2018 of approximately $30 million.

 

Net interest margin was 3.99% for the quarter ended June 30, 2018, an 18 basis point decrease from the first quarter. The Company’s core net interest margin, excluding the accretion, was 3.70% for the second quarter of 2018, a 12 basis point decrease from March 31, 2018. Cost of interest bearing deposits was 0.84% for the second quarter of 2018, a 48 basis point increase from June 30, 2017 and a 10 basis point increase from March 31, 2018.

 

 
 

 

The subordinated debt issuance at the end of the first quarter had a 5 basis point impact on the Company’s second quarter net interest margin. The timing of existing subordinated debt prepayment had an additional 5 basis point impact.

 

Non-Interest Income

 

Non-interest income for the second quarter 2018 was $38.0 million, an increase of $2.3 million compared to the second quarter of 2017. The increase was primarily due to additional trust income, service charge and fee income resulting from the acquisitions. This increase was partially offset by a $2.2 million decrease in gain on sale of securities compared to the same quarter last year.

 

Non-Interest Expense

 

Non-interest expense for the second quarter of 2018 was $98.5 million, an increase of $27.1 million compared to the second quarter of 2017. Included in this quarter were $1.5 million of pre-tax merger-related expenses and branch rightsizing costs. Excluding these expenses, core non-interest expense was $97.0 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 fourth quarter of 2017. The efficiency ratio for the second quarter 2018 was 52.70%.

 

Income tax expense in the second quarter included a $2.0 million discrete tax benefit related to tax accounting for equity compensation.

 

Asset Quality

 

    2nd Qtr 2018    1st Qtr 2018    2nd Qtr 2017 
                
Allowance for loan losses to total loans   0.73%   0.75%   0.83%
Allowance for loan losses to non-performing loans   115%   99%   72%
Non-performing loans to total loans   0.63%   0.76%   1.15%
Net charge-off ratio (annualized)   0.17%   0.24%   0.23%
Net charge-off ratio excluding credit cards   0.13%   0.20%   0.19%

 

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 June 30, 2018, the allowance for loan losses for legacy loans was $51.7 million. The allowance for loan losses for loans acquired was $2.1 million and the acquired loan discount credit mark was $68.3 million. The allowances for loan losses and credit marks provide a total of $122.1 million of coverage, which equates to a total coverage ratio of 1.1% of gross loans. The ratio of credit mark and related allowance to loans acquired was 1.6%.

 

Provision for loan losses for the second quarter of 2018 was $9.0 million which includes an increase due to strong legacy loan growth as well as increased loan migration during the quarter from the fourth quarter of 2017 acquisitions, which is consistent with the Company’s previous guidance.

 

Foreclosed Assets and Other Real Estate Owned

 

At June 30, 2018, foreclosed assets and other real estate owned were $30.5 million, an increase of $4.5 million, or 17.3%, compared to the same period in 2017 and an increase of $1.4 million, or 4.7% from March 31, 2018. The composition of these assets is divided into three types:

 

    2nd Qtr 2018    1st Qtr 2018    2nd Qtr 2017 
                
Closed bank branches, branch sites & associate relocation   $7.2 million    $8.1 million    $8.7 million 
Foreclosed assets - acquired   $13.2 million    $14.9 million    $12.0 million 
Foreclosed assets - legacy   $10.1 million    $6.1 million    $5.3 million 

 

 
 

 

Capital

 

    2nd Qtr 2018    1st Qtr 2018    2nd Qtr 2017 
                
Stockholders’ equity to total assets   13.3%   13.5%   13.6%
Tangible common equity to tangible assets   7.9%   7.9%   9.2%
Regulatory tier 1 leverage ratio   8.6%   8.6%   10.8%
Regulatory total risk-based capital ratio   13.7%   14.1%   13.7%

 

At June 30, 2018, common stockholders' equity was $2.1 billion, book value per share was $23.26 and tangible book value per share was $13.05. Asset growth due to the subordinated debt offering and the timing related to paying off approximately $104 million in parent company debt reduced Tangible Common Equity 6 basis points.

 

Simmons First National Corporation

 

Simmons First National Corporation is a financial holding company, headquartered in Pine Bluff, Arkansas, with total assets of $16.2 billion as of June 30, 2018 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. CDT on Tuesday, July 24, 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 4496437. 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:

STEPHEN C. MASSANELLI

EVP, Chief Administrative Officer and Investor Relations Officer

Simmons First National Corporation

(870) 541-1000

 

 
 

 

 

Simmons First National Corporation  SFNC 
Consolidated End of Period Balance Sheets   

For the Quarters Ended  Jun 30  Mar 31  Dec 31  Sep 30  Jun 30
(Unaudited)  2018  2018  2017  2017  2017
($ in thousands)                         
ASSETS                         
Cash and non-interest bearing balances due from banks  $162,567   $170,811   $205,025   $108,675   $112,567 
Interest bearing balances due from banks and federal funds sold   781,279    688,853    393,017    323,615    217,047 
Cash and cash equivalents   943,846    859,664    598,042    432,290    329,614 
Interest bearing balances due from banks - time   2,974    3,069    3,314    4,059    6,057 
Investment securities - held-to-maturity   333,503    352,756    368,058    406,033    419,003 
Investment securities - available-for-sale   1,938,644    1,830,113    1,589,517    1,317,420    1,190,600 
Mortgage loans held for sale   39,812    17,708    24,038    12,614    16,266 
Assets held in trading accounts   -    -    -    49    50 
Other assets held for sale   14,898    24,784    165,780    182,378    - 
Loans:                         
Legacy loans   7,133,461    6,290,383    5,705,609    5,211,312    5,000,572 
Allowance for loan losses   (51,732)   (47,207)   (41,668)   (42,717)   (41,379)
Loans acquired, net of discount and allowance   4,232,434    4,696,945    5,074,076    1,092,039    1,224,739 
Net loans   11,314,163    10,940,121    10,738,017    6,260,634    6,183,932 
Premises and equipment   288,777    289,355    287,249    224,376    230,641 
Foreclosed assets and other real estate owned   30,503    29,140    32,118    31,477    26,012 
Interest receivable   44,266    42,129    43,528    30,749    27,337 
Bank owned life insurance   191,575    186,473    185,984    148,984    148,134 
Goodwill   845,687    845,687    842,651    375,731    379,437 
Other intangible assets   96,720    99,504    106,071    55,501    58,528 
Other assets   80,165    76,806    71,439    53,075    52,697 
Total assets  $16,165,533   $15,597,309   $15,055,806   $9,535,370   $9,068,308 
                          
LIABILITIES AND STOCKHOLDERS' EQUITY                         
Deposits:                         
Non-interest bearing transaction accounts  $2,683,489   $2,734,287   $2,665,249   $1,669,860   $1,650,986 
Interest bearing transaction accounts and savings deposits   6,916,520    6,720,754    6,494,896    4,344,779    4,141,426 
Time deposits   2,353,439    2,201,874    1,932,730    1,310,951    1,311,123 
Total deposits   11,953,448    11,656,915    11,092,875    7,325,590    7,103,535 
Federal funds purchased and securities sold under agreements to repurchase   99,801    120,909    122,444    121,687    121,419 
Other borrowings   1,451,811    1,140,986    1,380,024    522,541    474,962 
Subordinated notes and debentures   413,337    468,465    140,565    67,418    67,312 
Other liabilities held for sale   1,840    2,781    157,366    176,964    - 
Accrued interest and other liabilities   98,388    98,202    77,968    63,971    67,004 
Total liabilities   14,018,625    13,488,258    12,971,242    8,278,171    7,834,232 
                          
Stockholders' equity:                         
Common stock   923    922    920    644    644 
Surplus   1,594,342    1,590,086    1,586,034    763,121    761,432 
Undivided profits   591,826    552,105    514,874    504,085    483,322 
Accumulated other comprehensive loss:                         
Unrealized depreciation on AFS securities   (40,183)   (34,062)   (17,264)   (10,651)   (11,322)
Total stockholders' equity   2,146,908    2,109,051    2,084,564    1,257,199    1,234,076 
Total liabilities and stockholders' equity  $16,165,533   $15,597,309   $15,055,806   $9,535,370   $9,068,308 

 

 Page 1 
 

 

Simmons First National Corporation   SFNC 
Consolidated Statements of Income - Quarter-to-Date   

For the Quarters Ended  Jun 30  Mar 31  Dec 31  Sep 30  Jun 30
(Unaudited)  2018  2018  2017  2017  2017
($ in thousands, except per share data)                         
INTEREST INCOME                         
Loans  $150,253   $143,350   $132,617   $77,457   $73,549 
Interest bearing balances due from banks and federal funds sold   1,414    1,009    947    650    214 
Investment securities   14,296    12,622    11,456    9,218    9,990 
Mortgage loans held for sale   305    158    175    159    145 
TOTAL INTEREST INCOME   166,268    157,139    145,195    87,484    83,898 
INTEREST EXPENSE                         
Time deposits   6,175    4,842    3,944    2,110    1,832 
Other deposits   12,286    10,755    8,762    3,920    2,984 
Federal funds purchased and securities sold under agreements to repurchase   88    110    97    83    92 
Other borrowings   5,141    5,139    3,993    1,875    1,559 
Subordinated notes and debentures   5,741    1,327    1,480    677    619 
TOTAL INTEREST EXPENSE   29,431    22,173    18,276    8,665    7,086 
NET INTEREST INCOME   136,837    134,966    126,919    78,819    76,812 
Provision for loan losses   9,033    9,150    9,601    5,462    7,023 
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES   127,804    125,816    117,318    73,357    69,789 
NON-INTEREST INCOME                         
Trust income   5,622    5,249    6,020    4,225    4,113 
Service charges on deposit accounts   10,063    10,345    10,587    8,907    8,483 
Other service charges and fees   2,017    2,750    2,774    2,433    2,515 
Mortgage and SBA lending income   3,130    4,445    3,713    3,219    3,961 
Investment banking income   814    834    786    680    637 
Debit and credit card fees   10,105    8,796    8,801    8,864    8,659 
Bank owned life insurance income   1,102    1,103    1,101    725    859 
(Loss) gain on sale of securities, net   (7)   6    (1,243)   3    2,236 
Other income   5,202    4,007    4,090    7,276    4,281 
TOTAL NON-INTEREST INCOME   38,048    37,535    36,629    36,332    35,744 
NON-INTEREST EXPENSE                         
Salaries and employee benefits   55,678    56,357    49,288    35,285    34,205 
Occupancy expense, net   7,921    6,960    6,700    4,928    4,868 
Furniture and equipment expense   4,020    4,403    5,533    4,840    4,550 
Other real estate and foreclosure expense   1,382    1,020    865    1,071    517 
Deposit insurance   1,856    2,128    1,216    1,020    780 
Merger-related costs   1,465    1,711    14,044    752    6,603 
Other operating expenses   26,185    25,494    30,844    18,263    19,885 
TOTAL NON-INTEREST EXPENSE   98,507    98,073    108,490    66,159    71,408 
NET INCOME BEFORE INCOME TAXES   67,345    65,278    45,457    43,530    34,125 
Provision for income taxes   13,783    13,966    26,554    14,678    11,060 
NET INCOME  $53,562   $51,312   $18,903   $28,852   $23,065 
BASIC EARNINGS PER SHARE  $0.58   $0.56   $0.22   $0.45   $0.36 
DILUTED EARNINGS PER SHARE  $0.58   $0.55   $0.22   $0.44   $0.36 

 

 Page 2 
 

 

Simmons First National Corporation   SFNC 
Consolidated Risk-Based Capital     

For the Quarters Ended  Jun 30  Mar 31  Dec 31  Sep 30  Jun 30
(Unaudited)  2018  2018  2017  2017  2017
($ in thousands)                         
Tier 1 capital                         
Stockholders' equity  $2,146,908   $2,109,051   $2,084,564   $1,257,199   $1,234,076 
Trust preferred securities, net allowable   -    -    -    67,418    67,312 
Disallowed intangible assets, net of deferred tax   (917,050)   (918,161)   (902,371)   (401,419)   (406,990)
Unrealized loss on AFS securities   40,183    34,062    17,264    10,651    11,322 
Total Tier 1 capital   1,270,041    1,224,952    1,199,457    933,849    905,720 
                          
Tier 2 capital                         
Qualifying unrealized gain on AFS equity securities   1    8    1    1    1 
Trust preferred securities and subordinated debt   413,337    468,466    140,565    -    - 
Qualifying allowance for loan losses and reserve for unfunded commitments   60,691    54,436    48,947    46,709    45,369 
Total Tier 2 capital   474,029    522,910    189,513    46,710    45,370 
Total risk-based capital  $1,744,070   $1,747,862   $1,388,970   $980,559   $951,090 
                          
Common equity                         
Tier 1 capital  $1,270,041   $1,224,952   $1,199,457   $933,849   $905,720 
Less: Trust preferred securities   -    -    -    (67,418)   (67,312)
Total common equity  $1,270,041   $1,224,952   $1,199,457   $866,431   $838,408 
                          
Risk weighted assets  $12,713,093   $12,417,233   $12,234,160   $7,239,923   $6,925,727 
                          
Adjusted average assets for leverage ratio  $14,714,205   $14,179,390   $13,016,478   $8,789,175   $8,424,763 
                          
Ratios at end of quarter                         
Equity to assets   13.28%   13.52%   13.85%   13.18%   13.61%
Tangible common equity to tangible assets (1)   7.91%   7.94%   8.05%   9.07%   9.22%
Common equity Tier 1 ratio (CET1)   9.99%   9.86%   9.80%   11.97%   12.11%
Tier 1 leverage ratio   8.63%   8.64%   9.21%   10.62%   10.75%
Tier 1 risk-based capital ratio   9.99%   9.86%   9.80%   12.90%   13.08%
Total risk-based capital ratio   13.72%   14.08%   11.35%   13.54%   13.73%
                          

 

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

 

 Page 3 
 

 

Simmons First National Corporation   SFNC 
Consolidated Loans and Investments   

For the Quarters Ended  Jun 30  Mar 31  Dec 31  Sep 30  Jun 30
(Unaudited)  2018  2018  2017  2017  2017
($ in thousands)                         
Legacy Loan Portfolio - End of Period (1)                         
Consumer                         
Credit cards  $180,352   $176,602   $185,422   $176,316   $176,953 
Other consumer   277,330    284,285    280,094    317,946    366,136 
Total consumer   457,682    460,887    465,516    494,262    543,089 
Real Estate                         
Construction   967,720    786,077    614,155    515,274    457,896 
Single-family residential   1,314,787    1,193,464    1,094,633    1,048,403    1,014,412 
Other commercial   2,816,420    2,611,358    2,530,824    2,231,223    2,089,707 
Total real estate   5,098,927    4,590,899    4,239,612    3,794,900    3,562,015 
Commercial                         
Commercial   1,237,910    971,704    825,217    688,960    678,932 
Agricultural   187,006    128,247    148,302    207,849    191,345 
Total commercial   1,424,916    1,099,951    973,519    896,809    870,277 
Other   151,936    138,646    26,962    25,341    25,191 
Total Loans  $7,133,461   $6,290,383   $5,705,609   $5,211,312   $5,000,572 
                          
(1) Excludes all acquired loans.               
                          
Investment Securities - End of Period                         
Held-to-Maturity                         
U.S. Government agencies  $36,976   $46,961   $46,945   $66,928   $67,912 
Mortgage-backed securities   14,645    15,404    16,132    16,972    17,882 
State and political subdivisions   279,787    286,901    301,491    320,116    331,249 
Other securities   2,095    3,490    3,490    2,017    1,960 
Total held-to-maturity   333,503    352,756    368,058    406,033    419,003 
Available-for-Sale                         
U.S. Treasury  $-   $-   $-   $-   $19,997 
U.S. Government agencies   145,767    149,804    139,724    208,220    147,619 
Mortgage-backed securities   1,395,231    1,356,179    1,187,317    959,698    878,205 
State and political subdivisions   245,335    185,888    143,165    84,822    83,672 
FHLB stock   72,042    58,177    58,914    24,415    21,772 
Other securities   80,269    80,065    60,397    40,265    39,335 
Total available-for-sale   1,938,644    1,830,113    1,589,517    1,317,420    1,190,600 
Total investment securities  $2,272,147   $2,182,869   $1,957,575   $1,723,453   $1,609,603 
Fair value - HTM investment securities  $334,857   $354,649   $373,298   $412,140   $425,263 
                          
Investment Securities - QTD Average                         
Taxable securities  $1,750,172   $1,618,270   $1,569,173   $1,229,172   $1,244,071 
Tax exempt securities   514,838    460,675    446,040    409,062    467,420 
Total investment securities - QTD average  $2,265,010   $2,078,945   $2,015,213   $1,638,234   $1,711,491 

 

 Page 4 
 

 

Simmons First National Corporation   SFNC 
Consolidated Loans and Credit Coverage   

For the Quarters Ended  Jun 30  Mar 31  Dec 31  Sep 30  Jun 30
(Unaudited)  2018  2018  2017  2017  2017
($ in thousands)                         
LOANS                         
Legacy loans  $7,133,461   $6,290,383   $5,705,609   $5,211,312   $5,000,572 
Allowance for loan losses (legacy loans)   (51,732)   (47,207)   (41,668)   (42,717)   (41,379)
Legacy loans (net of allowance)   7,081,729    6,243,176    5,663,941    5,168,595    4,959,193 
Loans acquired   4,302,760    4,776,439    5,163,769    1,117,424    1,253,539 
Credit discount   (68,282)   (79,087)   (89,275)   (24,994)   (28,409)
Allowance for loan losses (loans acquired)   (2,044)   (407)   (418)   (391)   (391)
Loans acquired (net of discount and allowance)   4,232,434    4,696,945    5,074,076    1,092,039    1,224,739 
Net loans  $11,314,163   $10,940,121   $10,738,017   $6,260,634   $6,183,932 
                          
                          
Loan Coverage Ratios                         
Allowance for loan losses to legacy loans   0.73%   0.75%   0.73%   0.82%   0.83%
                          
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)   1.63%   1.66%   1.74%   2.27%   2.30%
                          
Total allowance and credit coverage (non-GAAP) (1)   1.07%   1.14%   1.21%   1.08%   1.12%

 

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

 

 Page 5 
 

 

Simmons First National Corporation   SFNC 
Consolidated Allowance and Asset Quality   

For the Quarters Ended  Jun 30  Mar 31  Dec 31  Sep 30  Jun 30
(Unaudited)  2018  2018  2017  2017  2017
($ in thousands)                         
Allowance for Loan Losses (Legacy Loans)                         
Balance, beginning of quarter  $47,207   $41,668   $42,717   $41,379   $37,865 
Loans charged off                         
Credit cards   1,012    999    943    1,017    901 
Other consumer   1,366    1,056    781    819    993 
Real estate   161    455    4,725    896    1,712 
Commercial   790    1,761    4,754    2,442    349 
Total loans charged off   3,329    4,271    11,203    5,174    3,955 
                          
Recoveries of loans previously charged off                         
Credit cards   286    263    233    275    277 
Other consumer   133    94    468    445    636 
Real estate   112    302    233    309    216 
Commercial   59    69    20    21    32 
Total recoveries   590    728    954    1,050    1,161 
Net loans charged off   2,739    3,543    10,249    4,124    2,794 
Provision for loan losses   7,264    9,082    9,200    5,462    6,308 
Balance, end of quarter  $51,732   $47,207   $41,668   $42,717   $41,379 
                          
Non-performing assets (1) (2)                         
Non-performing loans                         
Nonaccrual loans  $44,548   $47,395   $45,642   $54,439   $57,127 
Loans past due 90 days or more   303    336    520    232    281 
Total non-performing loans   44,851    47,731    46,162    54,671    57,408 
Other non-performing assets                         
Foreclosed assets and other real estate owned (2)   30,503    29,140    32,118    31,477    26,012 
Other non-performing assets   573    794    675    639    485 
Total other non-performing assets   31,076    29,934    32,793    32,116    26,497 
Total non-performing assets  $75,927   $77,665   $78,955   $86,787   $83,905 
Performing TDRs (troubled debt restructurings)  $6,367   $6,459   $7,107   $9,212   $8,794 
                          
Ratios (1) (2)                         
Allowance for loan losses to total loans   0.73%   0.75%   0.73%   0.82%   0.83%
Allowance for loan losses to non-performing loans   115%   99%   90%   78%   72%
Non-performing loans to total loans   0.63%   0.76%   0.81%   1.05%   1.15%
Non-performing assets (including performing TDRs) to total assets   0.51%   0.54%   0.57%   1.01%   1.02%
Non-performing assets to total assets   0.47%   0.50%   0.52%   0.91%   0.93%
Annualized net charge offs to total loans   0.17%   0.24%   0.53%   0.32%   0.23%
Annualized net credit card charge offs to total credit card loans   1.60%   1.63%   1.54%   1.65%   1.42%
Annualized net charge offs to total loans (excluding credit cards)   0.13%   0.20%   0.51%   0.27%   0.19%

 

 (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
Jun 2018
  Three Months Ended
Mar 2018
  Three Months Ended
Jun 2017
($ 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  $422,987   $1,414    1.34%  $338,505   $1,009    1.21%  $163,396   $214    0.53%
Investment securities - taxable   1,982,105    10,764    2.18%   1,785,874    9,599    2.18%   1,374,261    6,874    2.01%
Investment securities - non-taxable (FTE)   282,905    4,771    6.76%   293,071    4,083    5.65%   337,230    5,118    6.09%
Mortgage loans held for sale   28,688    305    4.26%   14,775    158    4.34%   12,250    145    4.75%
Assets held in trading accounts   -    -    0.00%   -    -    0.00%   52    -    0.00%
Loans, including acquired loans   11,159,872    150,322    5.40%   10,819,324    143,420    5.38%   5,954,019    73,629    4.96%
Total interest earning assets (FTE)   13,876,557    167,576    4.84%   13,251,549    158,269    4.84%   7,841,208    85,980    4.40%
Non-earning assets   1,704,140              1,836,661              971,252           
Total assets  $15,580,697             $15,088,210             $8,812,460           
                                              
LIABILITIES AND STOCKHOLDERS' EQUITY                                             
Interest bearing liabilities:                                             
Interest bearing transaction and savings accounts  $6,570,471   $12,286    0.75%  $6,579,295   $10,755    0.66%  $4,069,179   $2,984    0.29%
Time deposits   2,233,673    6,175    1.11%   2,003,668    4,842    0.98%   1,277,336    1,832    0.58%
Total interest bearing deposits   8,804,144    18,461    0.84%   8,582,963    15,597    0.74%   5,346,515    4,816    0.36%
Federal funds purchased and securities sold under agreement to repurchase   107,205    88    0.33%   120,443    110    0.37%   115,101    92    0.32%
Other borrowings   1,273,135    5,141    1.62%   1,282,527    5,139    1.63%   434,584    1,559    1.44%
Subordinated notes and debentures   466,612    5,741    4.93%   162,813    1,327    3.31%   64,019    619    3.88%
Total interest bearing liabilities   10,651,096    29,431    1.11%   10,148,746    22,173    0.89%   5,960,219    7,086    0.48%
Non-interest bearing liabilities:                                             
Non-interest bearing deposits   2,705,677              2,632,182              1,597,550           
Other liabilities   86,827              204,230              45,348           
Total liabilities   13,443,600              12,985,158              7,603,117           
Stockholders' equity   2,137,097              2,103,052              1,209,343           
Total liabilities and stockholders' equity  $15,580,697             $15,088,210             $8,812,460           
Net interest income (FTE)       $138,145             $136,096             $78,894      
Net interest spread (FTE)             3.73%             3.95%             3.92%
Net interest margin (FTE) - quarter-to-date             3.99%             4.17%             4.04%
                                              
Net interest margin (FTE) - year-to-date             4.08%             4.17%             4.04%
                                              
Core net interest margin (FTE) - quarter-to-date (1)             3.70%             3.82%             3.79%
Core loan yield (FTE) - quarter-to-date (1)             5.04%             4.95%             4.63%
                                              
Core net interest margin (FTE) - year-to-date (1)             3.76%             3.82%             3.79%
Core loan yield (FTE) - year-to-date (1)             4.99%             4.95%             4.61%

 

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

 

 Page 7 
 

 

Simmons First National Corporation   SFNC 
Consolidated - Selected Financial Data   

For the Quarters Ended  Jun 30  Mar 31  Dec 31  Sep 30  Jun 30
(Unaudited)  2018  2018  2017  2017  2017
($ in thousands, except share data)               
QUARTER-TO-DATE                         
Financial Highlights - GAAP                         
Net Income  $53,562   $51,312   $18,903   $28,852   $23,065 
Diluted earnings per share   0.58    0.55    0.22    0.44    0.36 
Return on average assets   1.38%   1.38%   0.54%   1.25%   1.05%
Return on average common equity   10.05%   9.90%   3.88%   9.12%   7.65%
Return on tangible common equity   18.70%   18.77%   7.53%   14.47%   12.13%
Net interest margin (FTE)   3.99%   4.17%   4.21%   3.91%   4.04%
FTE adjustment   1,308    1,130    1,925    1,751    2,082 
Amortization of intangibles   2,785    2,837    2,839    1,724    1,553 
Amortization of intangibles, net of taxes   2,057    2,096    1,725    1,048    944 
Average diluted shares outstanding   92,733,140    92,638,765    87,036,044    64,847,592    64,051,560 
Cash dividends declared per common share   0.15    0.15    0.13    0.13    0.13 
Financial Highlights - Core (non-GAAP)                         
Core earnings (excludes non-core items) (1)  $54,660   $52,618   $42,018   $27,746   $26,753 
Diluted core earnings per share (1)   0.59    0.57    0.48    0.43    0.42 
Core net interest margin (FTE) (2)   3.70%   3.82%   3.70%   3.77%   3.79%
Accretable yield on acquired loans   10,113    11,294    15,684    2,890    4,792 
Efficiency ratio (1)   52.70%   53.24%   51.36%   55.06%   56.04%
Core return on average assets (1)   1.41%   1.41%   1.20%   1.20%   1.22%
Core return on average common equity (1)   10.26%   10.15%   8.63%   8.77%   8.87%
Core return on tangible common equity (1)   19.06%   19.23%   15.97%   13.93%   13.99%
YEAR-TO-DATE                         
Financial Highlights - GAAP                         
Net Income  $104,874   $51,312   $92,940   $74,037   $45,185 
Diluted earnings per share   1.13    0.55    1.33    1.16    0.71 
Return on average assets   1.38%   1.38%   0.92%   1.12%   1.06%
Return on average common equity   9.98%   9.90%   6.68%   8.18%   7.67%
Return on tangible common equity   18.73%   18.77%   11.26%   12.97%   12.17%
Net interest margin (FTE)   4.08%   4.17%   4.07%   3.99%   4.04%
FTE adjustment   2,438    1,130    7,723    5,798    4,047 
Amortization of intangibles   5,622    2,837    7,666    4,827    3,103 
Amortization of intangibles, net of taxes   4,153    2,096    4,659    2,934    1,886 
Average diluted shares outstanding   92,692,234    92,638,765    69,852,920    64,014,270    63,588,726 
Cash dividends declared per common share   0.30    0.15    0.50    0.38    0.25 
Financial Highlights - Core (non-GAAP)                         
Core earnings (excludes non-core items) (1)  $107,278   $52,618   $119,049   $77,031   $49,285 
Diluted core earnings per share (1)   1.16    0.57    1.70    1.20    0.78 
Core net interest margin (FTE) (2)   3.76%   3.82%   3.76%   3.79%   3.79%
Accretable yield on acquired loans   21,407    11,294    27,793    12,109    9,219 
Efficiency ratio (1)   52.97%   53.24%   55.27%   57.25%   58.40%
Core return on average assets (1)   1.41%   1.41%   1.18%   1.17%   1.15%
Core return on average common equity (1)   10.20%   10.15%   8.56%   8.51%   8.37%
Core return on tangible common equity (1)   19.14%   19.23%   14.28%   13.48%   13.23%
END OF PERIOD                         
Book value per share  $23.26   $22.86   $22.65   $19.51   $19.16 
Tangible book value per share   13.05    12.62    12.34    12.82    12.36 
Shares outstanding   92,281,370    92,242,389    92,029,118    64,424,484    64,425,664 
Full-time equivalent employees   2,659    2,626    2,640    1,942    1,919 
Total number of financial centers   199    200    200    156    161 

 

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

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

 

 Page 8 
 

 

Simmons First National Corporation   SFNC 
Consolidated - Reconciliation of Core Earnings (non-GAAP)  

For the Quarters Ended  Jun 30  Mar 31  Dec 31  Sep 30  Jun 30
(Unaudited)  2018  2018  2017  2017  2017
($ in thousands, except per share data)               
QUARTER-TO-DATE                         
Net Income  $53,562   $51,312   $18,903   $28,852   $23,065 
Non-core items                         
Gain on sale of P&C insurance business   -    -    -    (3,708)   - 
Donation to Simmons Foundation   -    -    5,000    -    - 
Merger-related costs   1,465    1,711    14,044    752    6,603 
Branch right-sizing   22    57    116    435    (536)
Tax effect (1)   (389)   (462)   (7,516)   1,415    (2,379)
Net non-core items (before SAB 118 adjustment)   1,098    1,306    11,644    (1,106)   3,688 
SAB 118 adjustment (2)   -    -    11,471    -    - 
Core earnings (non-GAAP)  $54,660   $52,618   $42,018   $27,746   $26,753 
                          
Diluted earnings per share  $0.58   $0.55   $0.22   $0.44   $0.36 
Non-core items                         
Gain on sale of P&C insurance business   -    -    -    (0.06)   - 
Donation to Simmons Foundation   -    -    0.06    -    - 
Merger-related costs   0.02    0.02    0.17    0.01    0.11 
Branch right-sizing   -    -    -    0.01    (0.01)
Tax effect (1)   (0.01)   -    (0.10)   0.03    (0.04)
Net non-core items (before SAB 118 adjustment)   0.01    0.02    0.13    (0.01)   0.06 
SAB 118 adjustment (2)   -    -    0.13    -    - 
Core earnings (non-GAAP)  $0.59   $0.57   $0.48   $0.43   $0.42 
                          
YEAR-TO-DATE                         
Net Income  $104,874   $51,312   $92,940   $74,037   $45,185 
Non-core items                         
Gain on sale of P&C insurance business   -    -    (3,708)   (3,708)   - 
Donation to Simmons Foundation   -    -    5,000    -    - 
Merger-related costs   3,176    1,711    21,923    7,879    7,127 
Branch right-sizing   79    57    169    53    (382)
Tax effect (1)   (851)   (462)   (8,746)   (1,230)   (2,645)
Net non-core items (before SAB 118 adjustment)   2,404    1,306    14,638    2,994    4,100 
SAB 118 adjustment (2)   -    -    11,471    -    - 
Core earnings (non-GAAP)  $107,278   $52,618   $119,049   $77,031   $49,285 
                          
Diluted earnings per share  $1.13   $0.55   $1.33   $1.16   $0.71 
Non-core items                         
Gain on sale of P&C insurance business   -    -    (0.04)   (0.06)   - 
Donation to Simmons Foundation   -    -    0.07           
Merger-related costs   0.04    0.02    0.31    0.12    0.12 
Branch right-sizing   -    -    -    -    (0.01)
Tax effect (1)   (0.01)   -    (0.13)   (0.02)   (0.04)
Net non-core items (before SAB 118 adjustment)   0.03    0.02    0.21    0.04    0.07 
SAB 118 adjustment (2)   -    -    0.16    -    - 
Core earnings (non-GAAP)  $1.16   $0.57   $1.70   $1.20   $0.78 

 

 (1) Effective tax rate of 26.135% for 2018 and 39.225% for prior years, 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 liabilities 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)  Jun 30  Mar 31  Dec 31  Sept 30  Jun 30
   2018  2018  2017  2017  2017
($ 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  $2,146,908   $2,109,051   $2,084,564   $1,257,199   $1,234,076 
Intangible assets:                         
Goodwill   (845,687)   (845,687)   (842,651)   (375,731)   (379,437)
Other intangible assets   (96,720)   (99,504)   (106,071)   (55,501)   (58,528)
Total intangibles   (942,407)   (945,191)   (948,722)   (431,232)   (437,965)
Tangible common stockholders' equity  $1,204,501   $1,163,860   $1,135,842   $825,967   $796,111 
                          
Total assets  $16,165,533   $15,597,309   $15,055,806   $9,535,370   $9,068,308 
Intangible assets:                         
Goodwill   (845,687)   (845,687)   (842,651)   (375,731)   (379,437)
Other intangible assets   (96,720)   (99,504)   (106,071)   (55,501)   (58,528)
Total intangibles   (942,407)   (945,191)   (948,722)   (431,232)   (437,965)
Tangible assets  $15,223,126   $14,652,118   $14,107,084   $9,104,138   $8,630,343 
                          
Ratio of equity to assets   13.28%   13.52%   13.85%   13.18%   13.61%
Ratio of tangible common equity to tangible assets   7.91%   7.94%   8.05%   9.07%   9.22%
                          
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  $68,282   $79,087   $89,275   $24,994   $28,409 
Allowance for loan losses on acquired loans   2,044    407    418    391    391 
Total credit discount and ALLL on acquired loans  $70,326   $79,494   $89,693   $25,385   $28,800 
Total loans acquired  $4,302,760   $4,776,439   $5,163,769   $1,117,424   $1,253,539 
Discount and ALLL on acquired loans to acquired loans   1.63%   1.66%   1.74%   2.27%   2.30%
                          
Calculation of Total Allowance and Credit Coverage                         
                          
Allowance for loan losses  $51,732   $47,207   $41,668   $42,717   $41,379 
Total credit discount and ALLL on acquired loans   70,326    79,494    89,693    25,385    28,800 
Total allowance and credit discount  $122,058   $126,701   $131,361   $68,102   $70,179 
Total loans  $11,436,221   $11,066,822   $10,869,378   $6,328,736   $6,254,155 
Total allowance and credit coverage   1.07%   1.14%   1.21%   1.08%   1.12%
                          
Calculation of Tangible Book Value per Share                         
                          
Total common stockholders' equity  $2,146,908   $2,109,051   $2,084,564   $1,257,199   $1,234,076 
Intangible assets:                         
Goodwill   (845,687)   (845,687)   (842,651)   (375,731)   (379,437)
Other intangible assets   (96,720)   (99,504)   (106,071)   (55,501)   (58,528)
Total intangibles   (942,407)   (945,191)   (948,722)   (431,232)   (437,965)
Tangible common stockholders' equity  $1,204,501   $1,163,860   $1,135,842   $825,967   $796,111 
Shares of common stock outstanding   92,281,370    92,242,389    92,029,118    64,424,484    64,425,664 
Book value per common share  $23.26   $22.86   $22.65   $19.51   $19.16 
Tangible book value per common share  $13.05   $12.62   $12.34   $12.82   $12.36 

 

 Page 10 
 

 

Simmons First National Corporation  SFNC 
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date   
For the Quarters Ended   

(Unaudited)  Jun 30  Mar 31  Dec 31  Sept 30  Jun 30
   2018  2018  2017  2017  2017
($ in thousands)               
Calculation of Core Return on Average Assets                         
                          
Net income  $53,562   $51,312   $18,903   $28,852   $23,065 
Net non-core items, net of taxes, adjustment   1,098    1,306    23,115    (1,106)   3,688 
Core earnings  $54,660   $52,618   $42,018   $27,746   $26,753 
                          
Average total assets  $15,580,697   $15,088,210   $13,897,778   $9,175,607   $8,812,460 
                          
Return on average assets   1.38%   1.38%   0.54%   1.25%   1.05%
Core return on average assets   1.41%   1.41%   1.20%   1.20%   1.22%
                          
Calculation of Return on Tangible Common Equity                         
                          
Net income  $53,562   $51,312   $18,903   $28,852   $23,065 
Amortization of intangibles, net of taxes   2,057    2,096    1,725    1,048    944 
Total income available to common stockholders  $55,619   $53,408   $20,628   $29,900   $24,009 
                          
Net non-core items, net of taxes   1,098    1,306    23,115    (1,106)   3,688 
Core earnings   54,660    52,618    42,018    27,746    26,753 
Amortization of intangibles, net of taxes   2,057    2,096    1,725    1,048    944 
Total core income available to common stockholders  $56,717   $54,714   $43,743   $28,794   $27,697 
                          
Average common stockholders' equity  $2,137,097   $2,103,052   $1,931,804   $1,255,694   $1,209,343 
Average intangible assets:                         
Goodwill   (845,687)   (844,148)   (731,661)   (378,387)   (362,925)
Other intangibles   (98,152)   (104,718)   (113,770)   (57,232)   (52,419)
Total average intangibles   (943,839)   (948,866)   (845,431)   (435,619)   (415,344)
Average tangible common stockholders' equity  $1,193,258   $1,154,186   $1,086,373   $820,075   $793,999 
                          
Return on average common equity   10.05%   9.90%   3.88%   9.12%   7.65%
Return on tangible common equity   18.70%   18.77%   7.53%   14.47%   12.13%
Core return on average common equity   10.26%   10.15%   8.63%   8.77%   8.87%
Core return on tangible common equity   19.06%   19.23%   15.97%   13.93%   13.99%
                          
Calculation of Efficiency Ratio (1)                         
                          
Non-interest expense  $98,507   $98,073   $108,490   $66,159   $71,408 
Non-core non-interest expense adjustment   (1,483)   (1,772)   (19,160)   (862)   (6,700)
Other real estate and foreclosure expense adjustment   (1,382)   (1,020)   (865)   (1,071)   (517)
Amortization of intangibles adjustment   (2,785)   (2,837)   (2,839)   (1,724)   (1,553)
Efficiency ratio numerator  $92,857   $92,444   $85,626   $62,502   $62,638 
                          
Net-interest income  $136,837   $134,966   $126,919   $78,819   $76,812 
Non-interest income   38,048    37,535    36,629    36,332    35,744 
Non-core non-interest income adjustment   4    (4)   -    (3,383)   (632)
Fully tax-equivalent adjustment   1,308    1,130    1,925    1,751    2,082 
(Gain) loss on sale of securities   7    (6)   1,243    (3)   (2,236)
Efficiency ratio denominator  $176,204   $173,621   $166,716   $113,516   $111,770 
                          
Efficiency ratio (1)   52.70%   53.24%   51.36%   55.06%   56.04%
                          
Calculation of Core Net Interest Margin                         
                          
Net interest income  $136,837   $134,966   $126,919   $78,819   $76,812 
Fully tax-equivalent adjustment   1,308    1,130    1,925    1,751    2,082 
Fully tax-equivalent net interest income   138,145    136,096    128,844    80,570    78,894 
                          
Total accretable yield   (10,113)   (11,294)   (15,684)   (2,890)   (4,792)
Core net interest income  $128,032   $124,802   $113,160   $77,680   $74,102 
Average earning assets  $13,876,557   $13,251,549   $12,145,003   $8,182,292   $7,841,208 
                          
Net interest margin   3.99%   4.17%   4.21%   3.91%   4.04%
Core net interest margin   3.70%   3.82%   3.70%   3.77%   3.79%
                          
Calculation of Core Loan Yield                         
                          
Loan interest income  $150,253   $143,350   $132,617   $77,457   $73,549 
Total accretable yield   (10,113)   (11,294)   (15,684)   (2,890)   (4,792)
Core loan interest income  $140,140   $132,056   $116,933   $74,567   $68,757 
Average loan balance  $11,159,872   $10,819,324   $9,772,043   $6,261,507   $5,954,019 
                          
Core loan yield   5.04%   4.95%   4.75%   4.72%   4.63%

 

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

 

 Page 11 
 

 

Simmons First National Corporation  SFNC 
Reconciliation Of Non-GAAP Financial Measures - Year-to-Date   
For the Quarters Ended   

(Unaudited)  Jun 30  Mar 31  Dec 31  Sept 30  Jun 30
   2018  2018  2017  2017  2017
($ in thousands)               
Calculation of Core Return on Average Assets                         
                          
Net income  $104,874   $51,312   $92,940   $74,037   $45,185 
Net non-core items, net of taxes, adjustment   2,404    1,306    26,109    2,994    4,100 
Core earnings  $107,278   $52,618   $119,049   $77,031   $49,285 
                          
Average total assets  $15,334,453   $15,088,210   $10,074,951   $8,800,675   $8,613,240 
                          
Return on average assets   1.38%   1.38%   0.92%   1.12%   1.06%
Core return on average assets   1.41%   1.41%   1.18%   1.17%   1.15%
                          
Calculation of Return on Tangible Common Equity                         
                          
Net income  $104,874   $51,312   $92,940   $74,037   $45,185 
Amortization of intangibles, net of taxes   4,153    2,096    4,659    2,934    1,886 
Total income available to common stockholders  $109,027   $53,408   $97,599   $76,971   $47,071 
                          
Net non-core items, net of taxes   2,404    1,306    26,109    2,994    4,100 
Core earnings   107,278    52,618    119,049    77,031    49,285 
Amortization of intangibles, net of taxes   4,153    2,096    4,659    2,934    1,886 
Total core income available to common stockholders  $111,431   $54,714   $123,708   $79,965   $51,171 
                          
Average common stockholders' equity  $2,120,075   $2,103,052   $1,390,815   $1,210,487   $1,187,906 
Average intangible assets:                         
Goodwill   (844,917)   (844,148)   (455,453)   (363,383)   (355,881)
Other intangibles   (101,435)   (104,718)   (68,896)   (53,941)   (52,294)
Total average intangibles   (946,352)   (948,866)   (524,349)   (417,324)   (408,175)
Average tangible common stockholders' equity  $1,173,723   $1,154,186   $866,466   $793,163   $779,731 
                          
Return on average common equity   9.98%   9.90%   6.68%   8.18%   7.67%
Return on tangible common equity   18.73%   18.77%   11.26%   12.97%   12.17%
Core return on average common equity   10.20%   10.15%   8.56%   8.51%   8.37%
Core return on tangible common equity   19.14%   19.23%   14.28%   13.48%   13.23%
                          
Calculation of Efficiency Ratio (1)                         
                          
Non-interest expense  $196,580   $98,073   $312,379   $203,889   $137,730 
Non-core non-interest expense adjustment   (3,255)   (1,772)   (27,357)   (8,197)   (7,335)
Other real estate and foreclosure expense adjustment   (2,402)   (1,020)   (3,042)   (2,177)   (1,067)
Amortization of intangibles adjustment   (5,622)   (2,837)   (7,666)   (4,827)   (3,103)
Efficiency ratio numerator  $185,301   $92,444   $274,314   $188,688   $126,225 
                          
Net-interest income  $271,803   $134,966   $354,930   $228,011   $149,192 
Non-interest income   75,583    37,535    138,765    102,136    65,804 
Non-core non-interest income adjustment   -    (4)   (3,972)   (3,972)   (589)
Fully tax-equivalent adjustment   2,438    1,130    7,723    5,798    4,047 
(Gain) loss on sale of securities   1    (6)   (1,059)   (2,302)   (2,299)
Efficiency ratio denominator  $349,825   $173,621   $496,387   $329,671   $216,155 
                          
Efficiency ratio (1)   52.97%   53.24%   55.27%   57.25%   58.40%
                          
Calculation of Core Net Interest Margin                         
                          
Net interest income  $271,803   $134,966   $354,930   $228,011   $149,192 
Fully tax-equivalent adjustment   2,438    1,130    7,723    5,798    4,047 
Fully tax-equivalent net interest income   274,241    136,096    362,653    233,809    153,239 
                          
Total accretable yield   (21,407)   (11,294)   (27,793)   (12,109)   (9,219)
Core net interest income  $252,834   $124,802   $334,860   $221,700   $144,020 
Average earning assets  $13,564,056   $13,251,549   $8,908,418   $7,829,548   $7,653,177 
                          
Net interest margin   4.08%   4.17%   4.07%   3.99%   4.04%
Core net interest margin   3.76%   3.82%   3.76%   3.79%   3.79%
                          
Calculation of Core Loan Yield                         
                          
Loan interest income  $293,603   $143,350   $352,351   $219,734   $142,277 
Total accretable yield   (21,407)   (11,294)   (27,793)   (12,109)   (9,219)
Core loan interest income  $272,196   $132,056   $324,558   $207,625   $133,058 
Average loan balance  $10,989,600   $10,819,324   $6,918,293   $5,967,036   $5,819,803 
                          
Core loan yield   4.99%   4.95%   4.69%   4.65%   4.61%

 

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

 

Page 12

 


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

View differences made from one quarter to another to evaluate Simmons First National Corp's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Simmons First National Corp.

Continue