Exhibit 99.1

 

 

 

 

For Immediate Release: April 22, 2019

 

 

SIMMONS REPORTS FIRST QUARTER 2019 EARNINGS

 

Pine Bluff, AR – Simmons First National Corporation (NASDAQ: SFNC) today announced net income of $47.7 million for the quarter ended March 31, 2019, compared to $51.3 million for the same period in 2018, a decrease of $3.6 million, or 7.1%. Diluted earnings per share were $0.51, a decrease of $0.04, or 7.3%, from the same period in 2018. Included in first quarter 2019 results was $1.4 million in net after-tax merger-related, early retirement program and branch right-sizing costs.

 

Excluding the impact of these items, core earnings were $49.1 million for the quarter ended March 31, 2019, compared to $52.6 million for the quarter ended March 31, 2018, a decrease of $3.5 million, or 6.7%. Core diluted earnings per share were $0.53, a decrease of $0.04, or 7.0%, from the same period in 2018.

 

“We had solid operating results in the first quarter. Revenue was affected by three significant items compared to the first quarter of 2018. Accretion income was down $4.6 million; debit card interchange income, primarily as a result of the Durbin rate cap, was down $2.8 million; and the gain on sale of securities was up $2.7 million, resulting in a net decrease of $4.7 million from the previous year,” said George A. Makris Jr., Chairman and CEO.

 

Makris continued, “We would also like to welcome our newest customers and associates from the Reliance Bank merger into the Simmons family. We closed the transaction Friday, April 12, 2019, and performed the systems conversion over that weekend. We are excited about our growth opportunities in the St. Louis market due to our increased presence.”

 

Selected Highlights: 1st QTR 2019 4th QTR 2018 1st QTR 2018
Net income $47.7 million $55.6 million $51.3 million
Diluted earnings per share $0.51 $0.60 $0.55
Return on avg assets 1.19% 1.35% 1.38%
Return on avg common equity 8.60% 9.98% 9.90%
Return on tangible common equity 15.34% 17.96% 18.77%
       
Core earnings(1) $49.1 million $56.5 million $52.6 million
Diluted core earnings per share(1) $0.53 $0.61 $0.57
Core return on avg assets(1) 1.22% 1.37% 1.41%
Core return on avg common equity(1) 8.85% 10.13% 10.15%
Core return on tangible common equity(1) 15.76% 18.21% 19.23%
       
Efficiency ratio(2) 56.76% 51.99% 53.24%

 

(1)Core earnings excludes non-core items, and is a non-GAAP measurement.
(2)Efficiency ratio is noninterest expense before foreclosed property expense, 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.

 

 

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

 

 

 

Loans

 

(In billions) 1st Qtr 2019 4th Qtr 2018 1st Qtr 2018
Total loans $11.7 $11.7 $11.0
Legacy loans (excludes loans acquired) $8.7 $8.4 $6.3
Loans acquired $3.0 $3.3 $4.7

 

Total loans, including those acquired, were $11.7 billion at March 31, 2019 an increase of $753.4 million, or 6.9%, compared to $11.0 billion at March 31, 2018. On a linked-quarter basis (March 31, 2019 compared to December 31, 2018), total loans remained flat at $11.7 billion. The seasonal decrease in the credit card and agricultural portfolios was $40.4 million. Loans approved and ready to close totaled $473.3 million at March 31, 2019 compared to $277.5 million as of year-end. “Based on our current loan pipeline, we estimate loan growth in the 5% range for 2019,” said Makris.

 

Deposits

 

(In billions) 1st Qtr 2019 4th Qtr 2018 1st Qtr 2018
Total deposits $12.0 $12.4 $11.7
Non-time deposits $9.3 $9.5 $9.5
Time deposits $2.7 $2.9 $2.2

 

Total deposits were $12.0 billion at March 31, 2019, an increase of $332.6 million, or 2.9%, since March 31, 2018. Total deposits decreased $409.2 million, or 3.3%, compared to December 31, 2018. During the quarter, brokered and public fund deposits decreased $557.2 million while core deposits increased $148.0 million. “Our cash balance was reduced as we eliminated some high cost deposits. We are very pleased with our growth in core deposits as we continue to emphasize relationship banking,” said Makris.

 

Net Interest Income

 

  1st Qtr
2019
4th Qtr
2018

3rd Qtr

2018

2nd Qtr

2018

1st Qtr

2018

Loan yield (1) 5.53% 5.39% 5.54% 5.40% 5.38%
Core loan yield (1) (2) 5.29% 5.25% 5.19% 5.04% 4.95%
Security yield (1) 3.09% 2.87% 2.74% 2.75% 2.67%
Cost of interest bearing deposits 1.31% 1.20% 1.05% 0.84% 0.74%
Cost of deposits (3) 1.02% 0.93% 0.81% 0.64% 0.56%
Cost of borrowed funds 2.73% 2.64% 2.48% 2.38% 1.70%
Net interest margin (1) 3.85% 3.76% 3.98% 3.99% 4.17%
Core net interest margin (1) (2) 3.67% 3.66% 3.71% 3.70% 3.82%

 

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

 

The Company’s net interest income for the first quarter of 2019 was $137.0 million, an increase of $2.1 million, or 1.5%, from the same period of 2018. Included in interest income was the yield accretion recognized on loans acquired of $6.7 million and $11.3 million for the first quarters of 2019 and 2018, respectively.

 

Net interest margin was 3.85% for the quarter ended March 31, 2019, a 9 basis point increase from the fourth quarter 2018. The Company’s core net interest margin, excluding the accretion, was 3.67% for the first quarter of 2019, a 1 basis point increase from the fourth quarter of 2018. Cost of interest bearing deposits was 1.31% for the first quarter of 2019, an 11 basis point increase from prior quarter.

 

 

 

 

Non-Interest Income

 

Non-interest income for the first quarter of 2019 was $33.8 million, a decrease of $3.8 million compared to the same period in the previous year. The decrease was primarily due to reductions in debit card fees and mortgage and SBA lending premium income. The interchange rate cap as established by the Durbin amendment became effective for the Company July 1, 2018, resulting in a $2.8 million reduction in debit card fees when compared to the first quarter of last year.

 

Mortgage and SBA lending premium income decreased $1.1 million when compared to the same quarter in 2018. Mortgage lending income during the first quarter of 2019 was lower by $649,000 compared to 2018 and SBA premium income decreased by $476,000 due to fewer loan sales in the current quarter compared to the first quarter of 2018.

 

During the first quarter, the Company sold approximately $197 million in securities which resulted in a gain of $2.7 million, as part of a bond portfolio analysis of expected cash flow changes.

 

Non-Interest Expense

 

Non-interest expense for the first quarter of 2019 was $101.4 million, an increase of $3.3 million compared to the first quarter of 2018. Included in this quarter were $1.9 million of pre-tax merger-related, early retirement program and branch right-sizing costs. Excluding these expenses, core non-interest expense was $99.5 million for the first quarter of 2019, an increase of $3.2 million compared to the same period in 2018. Software and technology costs increased approximately $1.8 million over the same period in the prior year. The Company’s Next Generation Banking technology initiative is progressing on schedule and the incremental IT expenditures during the first quarter were primarily related to this initiative.

 

During the first quarter, the Company offered qualifying associates an early retirement option resulting in $355,000 of non-core expense. The Company projects an additional $2.5 million of expense related to these retirements in the second quarter of 2019 and expects ongoing net savings of approximately $4.4 million beginning in the third quarter of 2019.

 

The efficiency ratio for the first quarter of 2019 was 56.76% compared to 53.24% for the same period in 2018.

 

Asset Quality

 

  1st Qtr
2019
4th Qtr
2018

3rd Qtr

2018

2nd Qtr

2018

1st Qtr

2018

Allowance for loan losses to total loans 0.68% 0.67% 0.68% 0.73% 0.75%
Allowance for loan losses to non-performing loans 97% 164% 136% 115% 99%
Non-performing loans to total loans 0.70% 0.41% 0.50% 0.63% 0.76%
Net charge-off ratio (annualized) 0.20% 0.35% 0.36% 0.17% 0.24%
 -  Net charge-off ratio excluding loan sale     0.12%    

 

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 March 31, 2019, the allowance for loan losses for legacy loans was $59.2 million. The allowance for loan losses for loans acquired was $1.3 million and the acquired loan discount credit mark was $42.4 million. The allowances for loan losses and credit marks provide a total of $103.0 million of coverage, which equates to a total coverage ratio of 0.87% of gross loans. The ratio of credit mark and related allowance to loans acquired was 1.41%.

 

During the quarter, the Company identified loans specific to the acquired portfolio of Bank SNB’s Dallas market which were poorly structured or were poorly managed post-funding, and were primarily linked to an individual lender. As a result, the Company made a provision for acquired loans of $2.0 million related to the Bank SNB acquired pool of loans.

 

 

 

 

Makris stated, “We have carefully reviewed these loans for potential losses and believe we have adequately identified any risk associated with the loans. Unfortunately, based on purchase accounting rules, the credit mark associated with the declining Bank SNB acquired pool is a standalone amount not related to Simmons’ overall allowance for loan losses and must be managed specific to that pool of loans.”

 

Provision for loan losses for the first quarter of 2019 was $9.3 million, essentially flat when compared to March 31, 2018 and $335,000 less than the fourth quarter of 2018.

 

Foreclosed Assets and Other Real Estate Owned

 

At March 31, 2019, foreclosed assets and other real estate owned were $19.0 million, a decrease of $10.2 million, or 35.0%, compared to the same period in 2018 and a decrease of $6.6 million, or 25.9% from December 31, 2018. The composition of these assets is divided into three types:

 

 

($ in millions)

1st Qtr
2019
4th Qtr
2018

3rd Qtr

2018

2nd Qtr

2018

1st Qtr

2018

Closed bank branches, branch sites & associate relocation $7.6 $8.0 $9.6 $7.2 $8.1
Foreclosed assets - acquired $6.2 $11.5 $8.0 $13.2 $14.9
Foreclosed assets - legacy $5.2 $6.1 $5.1 $10.1 $6.1

 

Capital

 

  1st Qtr
2019
4th Qtr
2018

3rd Qtr

2018

2nd Qtr

2018

1st Qtr

2018

Stockholders’ equity to total assets 14.3% 13.6% 13.4% 13.3% 13.5%
Tangible common equity to tangible assets 9.0% 8.4% 8.1% 7.9% 7.9%
Regulatory tier 1 leverage ratio 9.1% 8.8% 8.7% 8.6% 8.6%
Regulatory total risk-based capital ratio 13.6% 13.3% 13.1% 13.7% 14.1%

 

At March 31, 2019, common stockholders' equity was $2.3 billion. Book value per share was $24.87 and tangible book value per share was $14.78 at March 31, 2019, compared to $22.86 and $12.62, respectively, at March 31, 2018.

 

Simmons First National Corporation

 

Simmons First National Corporation is a financial holding company headquartered in Pine Bluff, Arkansas, with total assets of approximately $16.1 billion as of March 31, 2019, conducting financial operations in 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 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, April 23, 2019. 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 4557809. 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

 

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, allowance for loan losses, and the effect of certain new accounting standards on Simmons’ financial statements. 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, information technology affecting the financial industry, 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 for the year ended December 31, 2018, which has been filed with, and is available from, the 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)  2019  2018  2018  2018  2018
($ in thousands)               
ASSETS                         
Cash and non-interest bearing balances due from banks  $151,112   $171,792   $125,231   $162,567   $170,811 
Interest bearing balances due from banks and federal funds sold   340,049    661,666    388,573    781,279    688,853 
Cash and cash equivalents   491,161    833,458    513,804    943,846    859,664 
Interest bearing balances due from banks - time   4,684    4,934    3,954    2,974    3,069 
Investment securities - held-to-maturity   61,435    289,194    323,306    333,503    352,756 
Investment securities - available-for-sale   2,240,111    2,151,752    1,997,814    1,938,644    1,830,113 
Mortgage loans held for sale   18,480    26,799    48,195    39,812    17,708 
Other assets held for sale   397    1,790    5,136    14,898    24,784 
Loans:                         
Legacy loans   8,684,550    8,430,388    8,123,274    7,133,461    6,290,383 
Allowance for loan losses   (59,243)   (56,599)   (55,358)   (51,732)   (47,207)
Loans acquired, net of discount and allowance   3,056,187    3,292,783    3,734,921    4,232,434    4,696,945 
Net loans   11,681,494    11,666,572    11,802,837    11,314,163    10,940,121 
Premises and equipment   333,740    295,060    287,246    288,777    289,355 
Foreclosed assets and other real estate owned   18,952    25,565    22,664    30,503    29,140 
Interest receivable   51,796    49,938    51,509    44,266    42,129 
Bank owned life insurance   192,736    193,170    192,680    191,575    186,473 
Goodwill   845,687    845,687    845,687    845,687    845,687 
Other intangible assets   88,694    91,334    93,975    96,720    99,504 
Other assets   62,272    68,084    92,457    80,165    76,806 
Total assets  $16,091,639   $16,543,337   $16,281,264   $16,165,533   $15,597,309 
                          
LIABILITIES AND STOCKHOLDERS' EQUITY                         
Deposits:                         
Non-interest bearing transaction accounts  $2,674,034   $2,672,405   $2,778,670   $2,683,489   $2,734,287 
Interest bearing transaction accounts and savings deposits   6,666,823    6,830,191    6,776,330    6,916,520    6,720,754 
Time deposits   2,648,674    2,896,156    2,533,506    2,353,439    2,201,874 
Total deposits   11,989,531    12,398,752    12,088,506    11,953,448    11,656,915 
Federal funds purchased and securities sold under agreements to repurchase   120,213    95,792    109,213    99,801    120,909 
Other borrowings   1,169,989    1,345,450    1,420,917    1,451,811    1,140,986 
Subordinated notes and debentures   354,041    353,950    372,934    413,337    468,465 
Other liabilities held for sale   162    162    424    1,840    2,781 
Accrued interest and other liabilities   155,382    102,797    105,951    98,388    98,202 
Total liabilities   13,789,318    14,296,903    14,097,945    14,018,625    13,488,258 
                          
Stockholders' equity:                         
Common stock   926    923    923    923    922 
Surplus   1,599,566    1,597,944    1,597,261    1,594,342    1,590,086 
Undivided profits   707,829    674,941    633,175    591,826    552,105 
Accumulated other comprehensive loss:                         
Unrealized depreciation on AFS securities   (6,000)   (27,374)   (48,040)   (40,183)   (34,062)
Total stockholders' equity   2,302,321    2,246,434    2,183,319    2,146,908    2,109,051 
Total liabilities and stockholders' equity  $16,091,639   $16,543,337   $16,281,264   $16,165,533   $15,597,309 

 

 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)  2019  2018  2018  2018  2018
($ in thousands, except per share data)               
INTEREST INCOME                         
Loans  $159,440   $159,996   $162,438   $150,253   $143,350 
Interest bearing balances due from banks and federal funds sold   2,154    2,168    1,405    1,414    1,009 
Investment securities   17,312    15,760    14,640    14,296    12,622 
Mortgage loans held for sale   210    372    501    305    158 
TOTAL INTEREST INCOME   179,116    178,296    178,984    166,268    157,139 
INTEREST EXPENSE                         
Time deposits   12,320    11,273    8,017    6,175    4,842 
Other deposits   18,430    17,489    16,373    12,286    10,755 
Federal funds purchased and securities sold under agreements to repurchase   136    121    104    88    110 
Other borrowings   6,793    7,134    6,240    5,141    5,139 
Subordinated notes and debentures   4,411    4,498    5,282    5,741    1,327 
TOTAL INTEREST EXPENSE   42,090    40,515    36,016    29,431    22,173 
NET INTEREST INCOME   137,026    137,781    142,968    136,837    134,966 
Provision for loan losses   9,285    9,620    10,345    9,033    9,150 
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES   127,741    128,161    132,623    127,804    125,816 
NON-INTEREST INCOME                         
Trust income   5,708    5,980    6,277    5,622    5,249 
Service charges on deposit accounts   10,068    11,263    10,837    10,063    10,345 
Other service charges and fees   1,289    1,501    1,201    2,017    2,750 
Mortgage and SBA lending income   3,320    1,643    1,825    3,130    4,445 
Investment banking income   618    829    664    814    834 
Debit and credit card fees   6,098    6,547    6,820    10,105    8,796 
Bank owned life insurance income   795    1,105    1,105    1,102    1,103 
Gain (loss) on sale of securities, net   2,740    8    54    (7)   6 
Other income   3,125    5,712    4,942    5,202    4,007 
TOTAL NON-INTEREST INCOME   33,761    34,588    33,725    38,048    37,535 
NON-INTEREST EXPENSE                         
Salaries and employee benefits   56,367    49,193    55,515    55,678    56,357 
Occupancy expense, net   7,475    7,016    7,713    7,921    6,960 
Furniture and equipment expense   3,358    4,139    3,761    4,020    4,403 
Other real estate and foreclosure expense   637    1,540    538    1,382    1,020 
Deposit insurance   2,040    2,489    2,248    1,856    2,128 
Merger-related costs   1,470    797    804    1,465    1,711 
Other operating expenses   30,062    30,222    29,674    26,185    25,494 
TOTAL NON-INTEREST EXPENSE   101,409    95,396    100,253    98,507    98,073 
NET INCOME BEFORE INCOME TAXES   60,093    67,353    66,095    67,345    65,278 
Provision for income taxes   12,398    11,707    10,902    13,783    13,966 
NET INCOME  $47,695   $55,646   $55,193   $53,562   $51,312 
BASIC EARNINGS PER SHARE  $0.52   $0.60   $0.60   $0.58   $0.56 
DILUTED EARNINGS PER SHARE  $0.51   $0.60   $0.59   $0.58   $0.55 

 

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Simmons First National Corporation           SFNC
Consolidated Risk-Based Capital               
For the Quarters Ended  Mar 31  Dec 31  Sep 30  Jun 30  Mar 31
(Unaudited)  2019  2018  2018  2018  2018
($ in thousands)               
Tier 1 capital                         
Stockholders' equity  $2,302,321   $2,246,434   $2,183,319   $2,146,908   $2,109,051 
Trust preferred securities, net allowable                    
Disallowed intangible assets, net of deferred tax   (910,122)   (912,428)   (914,788)   (917,050)   (918,161)
Unrealized loss on AFS securities   6,000    27,374    48,040    40,183    34,062 
Total Tier 1 capital   1,398,199    1,361,380    1,316,571    1,270,041    1,224,952 
                          
Tier 2 capital                         
Qualifying unrealized gain on AFS equity securities           1    1    8 
Trust preferred securities and subordinated debt   354,041    353,950    372,934    413,337    468,466 
Qualifying allowance for loan losses and reserve for unfunded commitments   67,771    63,608    63,618    60,691    54,436 
Total Tier 2 capital   421,812    417,558    436,553    474,029    522,910 
Total risk-based capital  $1,820,011   $1,778,938   $1,753,124   $1,744,070   $1,747,862 
                          
Common equity                         
Tier 1 capital  $1,398,199   $1,361,380   $1,316,571   $1,270,041   $1,224,952 
Less: Trust preferred securities                    
Total common equity  $1,398,199   $1,361,380   $1,316,571   $1,270,041   $1,224,952 
                          
Risk weighted assets  $13,364,636   $13,326,832   $13,402,910   $12,713,093   $12,417,233 
                          
Adjusted average assets for leverage ratio  $15,423,961   $15,512,042   $15,179,889   $14,714,205   $14,179,390 
                          
Ratios at end of quarter                         
Equity to assets   14.31%   13.58%   13.41%   13.28%   13.52%
Tangible common equity to tangible assets (1)   9.02%   8.39%   8.11%   7.91%   7.94%
Common equity Tier 1 ratio (CET1)   10.46%   10.22%   9.82%   9.99%   9.86%
Tier 1 leverage ratio   9.07%   8.78%   8.67%   8.63%   8.64%
Tier 1 risk-based capital ratio   10.46%   10.22%   9.82%   9.99%   9.86%
Total risk-based capital ratio   13.62%   13.35%   13.08%   13.72%   14.08%

 

(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  Mar 31  Dec 31  Sep 30  Jun 30  Mar 31
(Unaudited)  2019  2018  2018  2018  2018
($ in thousands)               
Legacy Loan Portfolio - End of Period (1)                         
Consumer                         
Credit cards  $181,549   $204,173   $182,137   $180,352   $176,602 
Other consumer   213,659    201,297    259,581    277,330    284,285 
Total consumer   395,208    405,470    441,718    457,682    460,887 
Real Estate                         
Construction   1,376,162    1,300,723    1,229,888    967,720    786,077 
Single-family residential   1,431,407    1,440,443    1,401,991    1,314,787    1,193,464 
Other commercial   3,355,109    3,225,287    3,077,188    2,816,420    2,611,358 
Total real estate   6,162,678    5,966,453    5,709,067    5,098,927    4,590,899 
Commercial                         
Commercial   1,801,422    1,774,909    1,608,342    1,237,910    971,704 
Agricultural   147,216    164,514    218,778    187,006    128,247 
Total commercial   1,948,638    1,939,423    1,827,120    1,424,916    1,099,951 
Other   178,026    119,042    145,369    151,936    138,646 
Total Loans  $8,684,550   $8,430,388   $8,123,274   $7,133,461   $6,290,383 
                          
(1) Excludes all acquired loans.                         
                          
Investment Securities - End of Period                         
Held-to-Maturity                         
U.S. Government agencies  $12,996   $16,990   $34,983   $36,976   $46,961 
Mortgage-backed securities   12,847    13,346    13,933    14,645    15,404 
State and political subdivisions   33,597    256,863    272,396    279,787    286,901 
Other securities   1,995    1,995    1,994    2,095    3,490 
Total held-to-maturity   61,435    289,194    323,306    333,503    352,756 
Available-for-Sale                         
U.S. Government agencies  $161,577   $154,301   $141,460   $145,767   $149,804 
Mortgage-backed securities   1,345,677    1,522,900    1,419,626    1,395,231    1,356,179 
State and political subdivisions   580,790    314,843    282,439    245,335    185,888 
FHLB stock   65,220    73,105    72,579    72,042    58,177 
Other securities   86,847    86,603    81,710    80,269    80,065 
Total available-for-sale   2,240,111    2,151,752    1,997,814    1,938,644    1,830,113 
Total investment securities  $2,301,546   $2,440,946   $2,321,120   $2,272,147   $2,182,869 
Fair value - HTM investment securities  $61,956   $290,830   $322,838   $334,857   $354,649 
                          
Investment Securities - QTD Average                         
Taxable securities  $1,880,694   $1,815,203   $1,775,193   $1,750,172   $1,618,270 
Tax exempt securities   590,941    551,185    539,135    514,838    460,675 
Total investment securities - QTD average  $2,471,635   $2,366,388   $2,314,328   $2,265,010   $2,078,945 

 

 Page 4 

 

 

Simmons First National Corporation              SFNC
Consolidated Loans and Credit Coverage               
For the Quarters Ended  Mar 31  Dec 31  Sep 30  Jun 30  Mar 31
(Unaudited)  2019  2018  2018  2018  2018
($ in thousands)               
LOANS                         
Legacy loans  $8,684,550   $8,430,388   $8,123,274   $7,133,461   $6,290,383 
Allowance for loan losses (legacy loans)   (59,243)   (56,599)   (55,358)   (51,732)   (47,207)
Legacy loans (net of allowance)   8,625,307    8,373,789    8,067,916    7,081,729    6,243,176 
Loans acquired   3,099,915    3,342,175    3,790,234    4,302,760    4,776,439 
Credit discount   (42,416)   (49,297)   (53,968)   (68,282)   (79,087)
Allowance for loan losses (loans acquired)   (1,312)   (95)   (1,345)   (2,044)   (407)
Loans acquired (net of discount and allowance)   3,056,187    3,292,783    3,734,921    4,232,434    4,696,945 
Net loans  $11,681,494   $11,666,572   $11,802,837   $11,314,163   $10,940,121 
                          
                          
Loan Coverage Ratios                         
Allowance for loan losses to legacy loans   0.68%   0.67%   0.68%   0.73%   0.75%
                          
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)   1.41%   1.48%   1.46%   1.63%   1.66%
                          
Total allowance and credit coverage (non-GAAP) (1)   0.87%   0.90%   0.93%   1.07%   1.14%

 

(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  Mar 31  Dec 31  Sep 30  Jun 30  Mar 31
(Unaudited)  2019  2018  2018  2018  2018
($ in thousands)               
Allowance for Loan Losses (Legacy Loans)                         
Balance, beginning of quarter  $56,599   $55,358   $51,732   $47,207   $41,668 
Loans charged off                         
Credit cards   1,142    1,121    919    1,012    999 
Other consumer   1,533    2,894    1,321    1,366    1,056 
Real estate   374    337    4,952    161    455 
Commercial   1,968    3,480    592    790    1,761 
Total loans charged off   5,017    7,832    7,784    3,329    4,271 
                          
Recoveries of loans previously charged off                         
Credit cards   240    227    229    286    263 
Other consumer   300    154    176    133    94 
Real estate   142    367    210    112    302 
Commercial   158    167    450    59    69 
Total recoveries   840    915    1,065    590    728 
Net loans charged off   4,177    6,917    6,719    2,739    3,543 
Provision for loan losses   6,821    8,158    10,345    7,264    9,082 
Balance, end of quarter  $59,243   $56,599   $55,358   $51,732   $47,207 
                          
Non-performing assets (1) (2)                         
Non-performing loans                         
Nonaccrual loans  $60,925   $34,201   $40,505   $44,548   $47,395 
Loans past due 90 days or more   281    224    281    303    336 
Total non-performing loans   61,206    34,425    40,786    44,851    47,731 
Other non-performing assets                         
Foreclosed assets and other real estate owned (2)   18,952    25,565    22,664    30,503    29,140 
Other non-performing assets   505    553    524    573    794 
Total other non-performing assets   19,457    26,118    23,188    31,076    29,934 
Total non-performing assets  $80,663   $60,543   $63,974   $75,927   $77,665 
Performing TDRs (troubled debt restructurings)  $6,297   $6,369   $8,413   $6,367   $6,459 
                          
Ratios (1) (2)                         
Allowance for loan losses to total loans   0.68%   0.67%   0.68%   0.73%   0.75%
Allowance for loan losses to non-performing loans   97%   164%   136%   115%   99%
Non-performing loans to total loans   0.70%   0.41%   0.50%   0.63%   0.76%
Non-performing assets (including performing TDRs) to total assets   0.54%   0.40%   0.44%   0.51%   0.54%
Non-performing assets to total assets   0.50%   0.37%   0.39%   0.47%   0.50%
Annualized net charge offs to total loans   0.20%   0.35%   0.36%   0.17%   0.24%
Annualized net credit card charge offs to total credit card loans   1.92%   1.86%   1.47%   1.60%   1.63%

 

 (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
Mar 2019
  Three Months Ended
Dec 2018
  Three Months Ended
Mar 2018
($ 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  $394,462   $2,154    2.21%  $499,961   $2,168    1.72%  $338,505   $1,009    1.21%
Investment securities - taxable   1,880,694    12,989    2.80%   1,815,200    11,828    2.59%   1,618,270    9,599    2.41%
Investment securities - non-taxable (FTE)   590,941    5,834    4.00%   551,188    5,313    3.82%   460,675    4,083    3.59%
Mortgage loans held for sale   17,733    210    4.80%   30,851    372    4.78%   14,775    158    4.34%
Loans, including acquired loans   11,710,075    159,530    5.53%   11,788,838    160,081    5.39%   10,819,324    143,420    5.38%
Total interest earning assets (FTE)   14,593,905    180,717    5.02%   14,686,038    179,762    4.86%   13,251,549    158,269    4.84%
Non-earning assets   1,708,292              1,671,715              1,836,661           
Total assets  $16,302,197             $16,357,753             $15,088,210           
                                              
LIABILITIES AND STOCKHOLDERS' EQUITY                                   
Interest bearing liabilities:                                             
Interest bearing transaction and savings accounts  $6,749,032   $18,430    1.11%  $6,770,217   $17,489    1.02%  $6,579,295   $10,755    0.66%
Time deposits   2,781,592    12,320    1.80%   2,752,113    11,273    1.63%   2,003,668    4,842    0.98%
Total interest bearing deposits   9,530,624    30,750    1.31%   9,522,330    28,762    1.20%   8,582,963    15,597    0.74%
Federal funds purchased and securities sold under agreement to repurchase   109,302    136    0.50%   108,687    121    0.44%   120,443    110    0.37%
Other borrowings   1,224,255    6,793    2.25%   1,302,453    7,134    2.17%   1,282,527    5,139    1.63%
Subordinated notes and debentures   353,996    4,411    5.05%   353,906    4,498    5.04%   162,813    1,327    3.31%
Total interest bearing liabilities   11,218,177    42,090    1.52%   11,287,376    40,515    1.42%   10,148,746    22,173    0.89%
Non-interest bearing liabilities:                                             
Non-interest bearing deposits   2,707,715              2,768,437              2,632,182           
Other liabilities   127,407              90,723              204,230           
Total liabilities   14,053,299              14,146,536              12,985,158           
Stockholders' equity   2,248,898              2,211,217              2,103,052           
Total liabilities and stockholders' equity  $16,302,197             $16,357,753             $15,088,210           
Net interest income (FTE)       $138,627             $139,247             $136,096      
Net interest spread (FTE)             3.50%             3.44%             3.95%
Net interest margin (FTE) - quarter-to-date             3.85%             3.76%             4.17%
                                              
Net interest margin (FTE) - year-to-date             3.85%             3.97%             4.17%
                                              
Core net interest margin (FTE) - quarter-to-date (1)             3.67%             3.66%             3.82%
Core loan yield (FTE) - quarter-to-date (1)             5.29%             5.25%             4.95%
                                              
Core net interest margin (FTE) - year-to-date (1)             3.67%             3.72%             3.82%
Core loan yield (FTE) - year-to-date (1)             5.29%             5.11%             4.95%

 

(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  Mar 31  Dec 31  Sep 30  Jun 30  Mar 31
(Unaudited)  2019  2018  2018  2018  2018
($ in thousands, except share data)               
QUARTER-TO-DATE                         
Financial Highlights - GAAP                         
Net Income  $47,695   $55,646   $55,193   $53,562   $51,312 
Diluted earnings per share   0.51    0.60    0.59    0.58    0.55 
Return on average assets   1.19%   1.35%   1.37%   1.38%   1.38%
Return on average common equity   8.60%   9.98%   10.06%   10.05%   9.90%
Return on tangible common equity   15.34%   17.96%   18.38%   18.70%   18.77%
Net interest margin (FTE)   3.85%   3.76%   3.98%   3.99%   4.17%
FTE adjustment   1,601    1,466    1,393    1,308    1,130 
Amortization of intangibles   2,641    2,642    2,745    2,785    2,837 
Amortization of intangibles, net of taxes   1,951    1,952    2,027    2,057    2,096 
Average diluted shares outstanding   92,870,813    92,897,105    92,840,851    92,733,140    92,638,765 
Cash dividends declared per common share   0.16    0.15    0.15    0.15    0.15 
Financial Highlights - Core (non-GAAP)                         
Core earnings (excludes non-core items) (1)  $49,076   $56,451   $56,504   $54,660   $52,618 
Diluted core earnings per share (1)   0.53    0.61    0.61    0.59    0.57 
Core net interest margin (FTE) (2)   3.67%   3.66%   3.71%   3.70%   3.82%
Accretable yield on acquired loans   6,660    3,850    10,006    10,113    11,294 
Efficiency ratio (1)   56.76%   51.99%   53.47%   52.70%   53.24%
Core return on average assets (1)   1.22%   1.37%   1.40%   1.41%   1.41%
Core return on average common equity (1)   8.85%   10.13%   10.30%   10.26%   10.15%
Core return on tangible common equity (1)   15.76%   18.21%   18.80%   19.06%   19.23%
YEAR-TO-DATE                         
Financial Highlights - GAAP                         
Net Income  $47,695   $215,713   $160,067   $104,874   $51,312 
Diluted earnings per share   0.51    2.32    1.72    1.13    0.55 
Return on average assets   1.19%   1.37%   1.37%   1.38%   1.38%
Return on average common equity   8.60%   10.00%   10.01%   9.98%   9.90%
Return on tangible common equity   15.34%   18.44%   18.61%   18.73%   18.77%
Net interest margin (FTE)   3.85%   3.97%   4.04%   4.08%   4.17%
FTE adjustment   1,601    5,297    3,831    2,438    1,130 
Amortization of intangibles   2,641    11,009    8,367    5,622    2,837 
Amortization of intangibles, net of taxes   1,951    8,132    6,180    4,153    2,096 
Average diluted shares outstanding   92,870,813    92,830,485    92,796,860    92,692,234    92,638,765 
Cash dividends declared per common share   0.16    0.60    0.45    0.30    0.15 
Financial Highlights - Core (non-GAAP)                         
Core earnings (excludes non-core items) (1)  $49,076   $220,233   $163,782   $107,278   $52,618 
Diluted core earnings per share (1)   0.53    2.37    1.76    1.16    0.57 
Core net interest margin (FTE) (2)   3.67%   3.72%   3.74%   3.76%   3.82%
Accretable yield on acquired loans   6,660    35,263    31,413    21,407    11,294 
Efficiency ratio (1)   56.76%   52.85%   53.14%   52.97%   53.24%
Core return on average assets (1)   1.22%   1.40%   1.41%   1.41%   1.41%
Core return on average common equity (1)   8.85%   10.21%   10.24%   10.20%   10.15%
Core return on tangible common equity (1)   15.76%   18.81%   19.03%   19.14%   19.23%
END OF PERIOD                         
Book value per share  $24.87   $24.33   $23.66   $23.26   $22.86 
Tangible book value per share   14.78    14.18    13.48    13.05    12.62 
Shares outstanding   92,568,361    92,347,643    92,291,070    92,281,370    92,242,389 
Full-time equivalent employees   2,602    2,654    2,635    2,659    2,626 
Total number of financial centers   191    191    191    199    200 

 

(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  Mar 31  Dec 31  Sep 30  Jun 30  Mar 31
(Unaudited)  2019  2018  2018  2018  2018
($ in thousands, except per share data)               
QUARTER-TO-DATE                         
Net Income  $47,695   $55,646   $55,193   $53,562   $51,312 
Non-core items                         
Merger-related costs   1,470    797    804    1,465    1,711 
Early retirement program   355                 
Branch right-sizing   45    292    970    22    57 
Tax effect (1)   (489)   (284)   (463)   (389)   (462)
Net non-core items   1,381    805    1,311    1,098    1,306 
Core earnings (non-GAAP)  $49,076   $56,451   $56,504   $54,660   $52,618 
                          
Diluted earnings per share  $0.51   $0.60   $0.59   $0.58   $0.55 
Non-core items                         
Merger-related costs   0.02    0.01    0.01    0.02    0.02 
Early retirement program   0.01                 
Branch right-sizing           0.01         
Tax effect (1)   (0.01)           (0.01)    
Net non-core items   0.02    0.01    0.02    0.01    0.02 
Core earnings (non-GAAP)  $0.53   $0.61   $0.61   $0.59   $0.57 
                          
YEAR-TO-DATE                         
Net Income  $47,695   $215,713   $160,067   $104,874   $51,312 
Non-core items                         
Merger-related costs   1,470    4,777    3,980    3,176    1,711 
Early retirement program   355                 
Branch right-sizing   45    1,341    1,049    79    57 
Tax effect (1)   (489)   (1,598)   (1,314)   (851)   (462)
Net non-core items   1,381    4,520    3,715    2,404    1,306 
Core earnings (non-GAAP)  $49,076   $220,233   $163,782   $107,278   $52,618 
                          
Diluted earnings per share  $0.51   $2.32   $1.72   $1.13   $0.55 
Non-core items                         
Merger-related costs   0.02    0.05    0.04    0.04    0.02 
Early retirement program   0.01                 
Branch right-sizing       0.02    0.01         
Tax effect (1)   (0.01)   (0.02)   (0.01)   (0.01)    
Net non-core items   0.02    0.05    0.04    0.03    0.02 
Core earnings (non-GAAP)  $0.53   $2.37   $1.76   $1.16   $0.57 

 

(1) Effective tax rate of 26.135%.

 

 Page 9 

 

 

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
   2019  2018  2018  2018  2018
($ 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  $2,302,321   $2,246,434   $2,183,319   $2,146,908   $2,109,051 
Intangible assets:                         
Goodwill   (845,687)   (845,687)   (845,687)   (845,687)   (845,687)
Other intangible assets   (88,694)   (91,334)   (93,975)   (96,720)   (99,504)
Total intangibles   (934,381)   (937,021)   (939,662)   (942,407)   (945,191)
Tangible common stockholders' equity  $1,367,940   $1,309,413   $1,243,657   $1,204,501   $1,163,860 
                          
Total assets  $16,091,639   $16,543,337   $16,281,264   $16,165,533   $15,597,309 
Intangible assets:                         
Goodwill   (845,687)   (845,687)   (845,687)   (845,687)   (845,687)
Other intangible assets   (88,694)   (91,334)   (93,975)   (96,720)   (99,504)
Total intangibles   (934,381)   (937,021)   (939,662)   (942,407)   (945,191)
Tangible assets  $15,157,258   $15,606,316   $15,341,602   $15,223,126   $14,652,118 
                          
Ratio of equity to assets   14.31%   13.58%   13.41%   13.28%   13.52%
Ratio of tangible common equity to tangible assets   9.02%   8.39%   8.11%   7.91%   7.94%
                          
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  $42,416   $49,297   $53,968   $68,282   $79,087 
Allowance for loan losses on acquired loans   1,312    95    1,345    2,044    407 
Total credit discount and ALLL on acquired loans  $43,728   $49,392   $55,313   $70,326   $79,494 
Total loans acquired  $3,099,915   $3,342,175   $3,790,234   $4,302,760   $4,776,439 
Discount and ALLL on acquired loans to acquired loans   1.41%   1.48%   1.46%   1.63%   1.66%
                          
Calculation of Total Allowance and Credit Coverage                         
                          
Allowance for loan losses  $59,243   $56,599   $55,358   $51,732   $47,207 
Total credit discount and ALLL on acquired loans   43,728    49,392    55,313    70,326    79,494 
Total allowance and credit discount  $102,971   $105,991   $110,671   $122,058   $126,701 
Total loans  $11,784,465   $11,772,563   $11,913,508   $11,436,221   $11,066,822 
Total allowance and credit coverage   0.87%   0.90%   0.93%   1.07%   1.14%
                          
Calculation of Tangible Book Value per Share                         
                          
Total common stockholders' equity  $2,302,321   $2,246,434   $2,183,319   $2,146,908   $2,109,051 
Intangible assets:                         
Goodwill   (845,687)   (845,687)   (845,687)   (845,687)   (845,687)
Other intangible assets   (88,694)   (91,334)   (93,975)   (96,720)   (99,504)
Total intangibles   (934,381)   (937,021)   (939,662)   (942,407)   (945,191)
Tangible common stockholders' equity  $1,367,940   $1,309,413   $1,243,657   $1,204,501   $1,163,860 
Shares of common stock outstanding   92,568,361    92,347,643    92,291,070    92,281,370    92,242,389 
Book value per common share  $24.87   $24.33   $23.66   $23.26   $22.86 
Tangible book value per common share  $14.78   $14.18   $13.48   $13.05   $12.62 

 

 Page 10 

 

 

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
   2019  2018  2018  2018  2018
($ in thousands)                         
Calculation of Core Return on Average Assets                         
                          
Net income  $47,695   $55,646   $55,193   $53,562   $51,312 
Net non-core items, net of taxes, adjustment   1,381    805    1,311    1,098    1,306 
Core earnings  $49,076   $56,451   $56,504   $54,660   $52,618 
                          
Average total assets  $16,302,197   $16,357,753   $16,040,884   $15,580,697   $15,088,210 
                          
Return on average assets   1.19%   1.35%   1.37%   1.38%   1.38%
Core return on average assets   1.22%   1.37%   1.40%   1.41%   1.41%
                          
Calculation of Return on Tangible Common Equity                         
                          
Net income  $47,695   $55,646   $55,193   $53,562   $51,312 
Amortization of intangibles, net of taxes   1,951    1,952    2,027    2,057    2,096 
Total income available to common stockholders  $49,646   $57,598   $57,220   $55,619   $53,408 
                          
Net non-core items, net of taxes   1,381    805    1,311    1,098    1,306 
Core earnings   49,076    56,451    56,504    54,660    52,618 
Amortization of intangibles, net of taxes   1,951    1,952    2,027    2,057    2,096 
Total core income available to common stockholders  $51,027   $58,403   $58,531   $56,717   $54,714 
                          
Average common stockholders' equity  $2,248,898   $2,211,217   $2,176,565   $2,137,097   $2,103,052 
Average intangible assets:                         
Goodwill   (845,687)   (845,687)   (845,687)   (845,687)   (844,148)
Other intangibles   (90,317)   (92,990)   (95,576)   (98,152)   (104,718)
Total average intangibles   (936,004)   (938,677)   (941,263)   (943,839)   (948,866)
Average tangible common stockholders' equity  $1,312,894   $1,272,540   $1,235,302   $1,193,258   $1,154,186 
                          
Return on average common equity   8.60%   9.98%   10.06%   10.05%   9.90%
Return on tangible common equity   15.34%   17.96%   18.38%   18.70%   18.77%
Core return on average common equity   8.85%   10.13%   10.30%   10.26%   10.15%
Core return on tangible common equity   15.76%   18.21%   18.80%   19.06%   19.23%
                          
Calculation of Efficiency Ratio (1)                         
                          
Non-interest expense  $101,409   $95,396   $100,253   $98,507   $98,073 
Non-core non-interest expense adjustment   (1,870)   (1,089)   (1,774)   (1,483)   (1,772)
Other real estate and foreclosure expense adjustment   (599)   (1,300)   (538)   (1,382)   (1,020)
Amortization of intangibles adjustment   (2,641)   (2,642)   (2,745)   (2,785)   (2,837)
Efficiency ratio numerator  $96,299   $90,365   $95,196   $92,857   $92,444 
                          
Net-interest income  $137,026   $137,781   $142,968   $136,837   $134,966 
Non-interest income   33,761    34,588    33,725    38,048    37,535 
Non-core non-interest income adjustment               4    (4)
Fully tax-equivalent adjustment   1,601    1,466    1,393    1,308    1,130 
(Gain) loss on sale of securities   (2,740)   (8)   (54)   7    (6)
Efficiency ratio denominator  $169,648   $173,827   $178,032   $176,204   $173,621 
                          
Efficiency ratio (1)   56.76%   51.99%   53.47%   52.70%   53.24%
                          
Calculation of Core Net Interest Margin                         
                          
Net interest income  $137,026   $137,781   $142,968   $136,837   $134,966 
Fully tax-equivalent adjustment   1,601    1,466    1,393    1,308    1,130 
Fully tax-equivalent net interest income   138,627    139,247    144,361    138,145    136,096 
                          
Total accretable yield   (6,660)   (3,850)   (10,006)   (10,113)   (11,294)
Core net interest income  $131,967   $135,397   $134,355   $128,032   $124,802 
Average earning assets  $14,593,905   $14,686,038   $14,373,253   $13,876,557   $13,251,549 
                          
Net interest margin   3.85%   3.76%   3.98%   3.99%   4.17%
Core net interest margin   3.67%   3.66%   3.71%   3.70%   3.82%
                          
Calculation of Core Loan Yield                         
                          
Loan interest income  $159,440   $159,996   $162,438   $150,253   $143,350 
Total accretable yield   (6,660)   (3,850)   (10,006)   (10,113)   (11,294)
Core loan interest income  $152,780   $156,146   $152,432   $140,140   $132,056 
Average loan balance  $11,710,075   $11,788,838   $11,641,843   $11,159,872   $10,819,324 
                          
Core loan yield   5.29%   5.25%   5.19%   5.04%   4.95%

 

(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)  Mar 31  Dec 31  Sept 30  Jun 30  Mar 31
   2019  2018  2018  2018  2018
($ in thousands)                         
Calculation of Core Return on Average Assets                         
                          
Net income  $47,695   $215,713   $160,067   $104,874   $51,312 
Net non-core items, net of taxes, adjustment   1,381    4,520    3,715    2,404    1,306 
Core earnings  $49,076   $220,233   $163,782   $107,278   $52,618 
                          
Average total assets  $16,302,197   $15,771,362   $15,573,762   $15,334,453   $15,088,210 
                          
Return on average assets   1.19%   1.37%   1.37%   1.38%   1.38%
Core return on average assets   1.22%   1.40%   1.41%   1.41%   1.41%
                          
Calculation of Return on Tangible Common Equity                         
                          
Net income  $47,695   $215,713   $160,067   $104,874   $51,312 
Amortization of intangibles, net of taxes   1,951    8,132    6,180    4,153    2,096 
Total income available to common stockholders  $49,646   $223,845   $166,247   $109,027   $53,408 
                          
Net non-core items, net of taxes   1,381    4,520    3,715    2,404    1,306 
Core earnings   49,076    220,233    163,782    107,278    52,618 
Amortization of intangibles, net of taxes   1,951    8,132    6,180    4,153    2,096 
Total core income available to common stockholders  $51,027   $228,365   $169,962   $111,431   $54,714 
                          
Average common stockholders' equity  $2,248,898   $2,157,097   $2,138,818   $2,120,075   $2,103,052 
Average intangible assets:                         
Goodwill   (845,688)   (845,308)   (845,180)   (844,917)   (844,148)
Other intangibles   (90,316)   (97,820)   (99,448)   (101,435)   (104,718)
Total average intangibles   (936,004)   (943,128)   (944,628)   (946,352)   (948,866)
Average tangible common stockholders' equity  $1,312,894   $1,213,969   $1,194,190   $1,173,723   $1,154,186 
                          
Return on average common equity   8.60%   10.00%   10.01%   9.98%   9.90%
Return on tangible common equity   15.34%   18.44%   18.61%   18.73%   18.77%
Core return on average common equity   8.85%   10.21%   10.24%   10.20%   10.15%
Core return on tangible common equity   15.76%   18.81%   19.03%   19.14%   19.23%
                          
Calculation of Efficiency Ratio (1)                         
                          
Non-interest expense  $101,409   $392,229   $296,833   $196,580   $98,073 
Non-core non-interest expense adjustment   (1,870)   (6,118)   (5,029)   (3,255)   (1,772)
Other real estate and foreclosure expense adjustment   (599)   (4,240)   (2,940)   (2,402)   (1,020)
Amortization of intangibles adjustment   (2,641)   (11,009)   (8,367)   (5,622)   (2,837)
Efficiency ratio numerator  $96,299   $370,862   $280,497   $185,301   $92,444 
                          
Net-interest income  $137,026   $552,552   $414,771   $271,803   $134,966 
Non-interest income   33,761    143,896    109,308    75,583    37,535 
Non-core non-interest income adjustment                   (4)
Fully tax-equivalent adjustment   1,601    5,297    3,831    2,438    1,130 
(Gain) loss on sale of securities   (2,740)   (61)   (53)   1    (6)
Efficiency ratio denominator  $169,648   $701,684   $527,857   $349,825   $173,621 
                          
Efficiency ratio (1)   56.76%   52.85%   53.14%   52.97%   53.24%
                          
Calculation of Core Net Interest Margin                         
                          
Net interest income  $137,026   $552,552   $414,771   $271,803   $134,966 
Fully tax-equivalent adjustment   1,601    5,297    3,831    2,438    1,130 
Fully tax-equivalent net interest income   138,627    557,849    418,602    274,241    136,096 
                          
Total accretable yield   (6,660)   (35,263)   (31,413)   (21,407)   (11,294)
Core net interest income  $131,967   $522,586   $387,189   $252,834   $124,802 
Average earning assets  $14,593,905   $14,036,614   $13,837,639   $13,564,056   $13,251,549 
                          
Net interest margin   3.85%   3.97%   4.04%   4.08%   4.17%
Core net interest margin   3.67%   3.72%   3.74%   3.76%   3.82%
                          
Calculation of Core Loan Yield                         
                          
Loan interest income  $159,440   $616,037   $456,041   $293,603   $143,350 
Total accretable yield   (6,660)   (35,263)   (31,413)   (21,407)   (11,294)
Core loan interest income  $152,780   $580,774   $424,628   $272,196   $132,056 
Average loan balance  $11,710,075   $11,355,890   $11,209,992   $10,989,600   $10,819,324 
                          
Core loan yield   5.29%   5.11%   5.06%   4.99%   4.95%

 

(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, April 22, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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