Simmons Reports Third Quarter Net Income of $23.4 Million

PINE BLUFF, Ark., Oct. 19, 2016 (GLOBE NEWSWIRE) — Simmons First National Corporation (NASDAQ:SFNC) today announced net income available to common shareholders of $23.4 million for the third quarter of 2016, an increase of $1.8 million, or 8.5 percent, compared with the same quarter last year. Diluted earnings per share were $0.76, an increase of $0.04, or 5.6 percent.

Included in third quarter 2016 results were $953,000 of after-tax expenses related to noncore items. Excluding the impact of these items, core earnings were $24.4 million for the third quarter of 2016 and diluted core earnings per share were $0.79.

Year-to-date net income was $69.8 million, an increase of $19.5 million, or 38.7 percent, compared with the same period of 2015. Year-to-date diluted earnings per share were $2.28, an increase of $0.45, or 24.6 percent. Year-to-date core earnings were $72.7 million, or $2.37 diluted core earnings per share.

On September 9, 2016, Simmons First National Corporation completed the acquisition of Citizens National Bank (“Citizens”), headquartered in Athens, Tenn. The systems conversion will take place on October 21, 2016, at which time nine Citizens branches will be merged into Simmons Bank. 

“We welcome our newest associates from Citizens National Bank into the Simmons family.  We look forward to continued growth in our east Tennessee markets,” said George A. Makris, Jr., chairman and CEO, “Our operating performance continues to produce good results.  Our efficiency ratio for the third quarter was 53.8 percent, our return on assets was 1.21 percent, our return on equity was 8.4 percent, and our return on tangible common equity was 13.3 percent.  I’m very proud of the accomplishments of our associates.”

Loans

Total loans, including those acquired, were $5.4 billion at September 30, 2016, an increase of $548 million, or 11.3 percent, compared with the same period in 2015. Legacy loans (all loans excluding acquired loans) grew $1.1 billion, or 38.9 percent. On a linked quarter basis, total loan growth was $387 million.

Deposits

At September 30, 2016, total deposits were $6.6 billion, an increase of $528 million, or 8.7 percent, compared with the same period in 2015. Total non-time deposits were $5.3 billion, an increase of $555 million, or 11.7 percent, and comprised 80 percent of total deposits.

Net Interest Income

The company’s net interest income for the third quarter of 2016 was $68.1 million, a decrease of $10.6 million, or 13.5 percent, from the same period of 2015. This decrease was primarily driven by a $10.0 million decline in yield accretion on acquired loans. Included in interest income was the yield accretion recognized on acquired loans of $4.9 million and $14.9 million for the third quarter of 2016 and 2015, respectively. Net interest margin was 4.09 percent for the quarter ended September 30, 2016, a 73 basis-point decline from the same quarter of 2015. The company’s core net interest margin, excluding the accretion, was 3.81 percent for the third quarter of 2016, a 12 basis-point decline from the same quarter of 2015.

Provision for Loan Losses

Provision for loan losses for the third quarter of 2016 was $8.3 million, an increase of $6.7 million compared with the third quarter of 2015. During the quarter, a single charge-off of $5.4 million was recorded in relation to a nonaccrual loan acquired from Metropolitan National Bank. The loan was charged down to the appraised liquidation value of the collateral and the charged-off amount was added back to the allowance for loan losses during the quarter, resulting in the increase in provision. Management will discuss this loan during the company’s earnings conference call tomorrow. 

Non-Interest Income

Non-interest income for the third quarter was $36.9 million, an increase of $13.8 million compared with the third quarter of 2015. The elimination of indemnification asset amortization due to the company’s 2015 termination of loss-sharing agreements with the FDIC resulted in a decrease of $9.1 million in losses on FDIC-covered assets in the third quarter compared to the same period in 2015.

The remaining increase in non-interest income was due to additional mortgage lending, trust income, debit and credit card income and investment banking revenue.  

Non-Interest Expense

Non-interest expense for the third quarter of 2016 was $62.4 million, a decrease of $5.1 million compared with the third quarter of 2015. Included in the quarter were $1.5 million of merger-related expenses. Salaries and benefits decreased by $5.2 million, or 14.1 percent, compared with the same quarter of 2015.

Asset Quality

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

At September 30, 2016, the allowance for loan losses for legacy loans was $34.1 million. The company’s allowance for loan losses on legacy loans at September 30, 2016 was 0.86 percent of total loans and 91 percent of non-performing loans. In the legacy portfolio, non-performing loans as a percent of total loans were 0.95 percent.

The allowance for loan losses for acquired loans was $1.0 million and the acquired loan discount credit mark was $42.9 million. The allowances for loan losses and credit marks provide a total of $77.9 million of coverage, which equates to a total coverage ratio of 1.4 percent of gross loans. The ratio of credit mark and related allowance to acquired loans was 2.9 percent.

The 2016 year-to-date net charge-off ratio, excluding credit cards, was 44 basis points, and the year-to-date credit card charge-off ratio was 1.22 percent.

Capital

At September 30, 2016, common stockholders’ equity was $1.1 billion, book value per share was $36.69 and tangible book value per share was $23.80. The company’s ratio of stockholders’ equity to total assets was 13.94 percent and its ratio of tangible common equity to tangible assets was 9.5 percent.

Simmons First National Corporation

Simmons First National Corporation is a financial holding company, headquartered in Pine Bluff, Ark., with total assets of $8.2 billion conducting financial operations throughout Arkansas, Kansas, Missouri and Tennessee.  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 conference call to review this information beginning at 3 p.m. CDT on Thursday, October 20, 2016. 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 87389332. 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 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 and changes in the assumptions used in making the forward-looking statements, 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.

           
           
 Simmons First National Corporation           SFNC
 Consolidated End of Period Balance Sheets           
 For the Quarters Ended   Sep 30   Jun 30   Mar 31   Dec 31   Sep 30 
 (Unaudited)     2016       2016       2016       2015       2015   
($ in thousands)          
ASSETS           
Cash and non-interest bearing balances due from banks $ 112,572   $ 96,037   $ 118,468   $ 97,656   $ 106,678  
Interest bearing balances due from banks   324,951     151,570     100,593     154,606     284,645  
Federal funds sold     17,000       3,000       4,000       –        9,675  
Cash and cash equivalents   454,523     250,607     223,061     252,262     400,998  
Interest bearing balances due from banks – time   4,393     9,781     11,188     14,107     16,504  
Investment securities – held-to-maturity   496,594     632,154     674,502     705,373     776,294  
Investment securities – available-for-sale   1,024,206     821,372     857,673     821,407     703,347  
Mortgage loans held for sale   28,069     30,529     24,563     30,265     15,556  
Assets held in trading accounts   2,969     7,321     7,074     4,422     6,292  
Loans:          
Legacy loans   3,943,089     3,725,422     3,472,691     3,246,454     2,839,278  
Allowance for loan losses   (34,094 )   (33,523 )   (32,681 )   (31,351 )   (30,380 )
Loans acquired          
(net of discount and allowance)     1,458,198       1,288,435       1,457,370       1,672,901       2,013,816  
Net loans   5,367,193     4,980,334     4,897,380     4,888,004     4,822,714  
Premises and equipment   192,523     183,362     192,327     193,618     190,182  
Premises held for sale   6,732     6,167     2,364     923     923  
Foreclosed assets   30,396     30,529     41,126     44,820     48,073  
Interest receivable   27,390     24,150     23,545     25,793     26,873  
Bank owned life insurance   138,298     130,943     130,092     131,536     118,922  
Goodwill   348,769     327,686     327,686     327,686     314,344  
Other intangible assets   54,268     50,329     51,783     53,237     44,904  
Other assets     50,669       48,955       72,589       66,205       73,768  
Total assets $   8,226,992   $   7,534,219   $   7,536,953   $   7,559,658   $   7,559,694  
           
 LIABILITIES AND STOCKHOLDERS’ EQUITY           
Deposits:          
Non-interest bearing transaction accounts $ 1,473,420   $ 1,283,426   $ 1,274,816   $ 1,280,234   $ 1,212,724  
Interest bearing transaction accounts and savings deposits   3,815,939     3,538,808     3,524,808     3,485,845     3,521,840  
Time deposits less than $100,000   653,105     643,081     674,915     694,262     673,651  
Time deposits greater than $100,000     674,917       562,888       605,236       625,755       681,585  
Total deposits   6,617,381     6,028,203     6,079,775     6,086,096     6,089,800  
Federal funds purchased and securities sold          
under agreements to repurchase   124,289     103,038     97,429     99,398     110,437  
Other borrowings   215,276     191,827     176,829     162,289     173,426  
Subordinated debentures   60,290     60,184     60,077     60,570     61,906  
Accrued interest and other liabilities     62,615       60,256       50,859       74,450       78,684  
Total liabilities     7,079,851       6,443,508       6,464,969       6,482,803       6,514,253  
           
Stockholders’ equity:          
Preferred stock               30,852     30,852  
Common stock   313     304     303     303     299  
Surplus   710,132     668,306     665,850     662,378     642,400  
Undivided profits   434,579     417,863     402,265     385,987     369,172  
Accumulated other comprehensive income (loss):          
Unrealized appreciation (depreciation) on AFS securities     2,117       4,238       3,566       (2,665 )     2,718  
Total stockholders’ equity     1,147,141       1,090,711       1,071,984       1,076,855       1,045,441  
Total liabilities and stockholders’ equity $   8,226,992   $   7,534,219   $   7,536,953   $   7,559,658   $   7,559,694  
           

             
 Simmons First National Corporation           SFNC  
 Consolidated Statements of Income – Quarter-to-Date             
 For the Quarters Ended  Sep 30 Jun 30 Mar 31 Dec 31 Sep 30  
 (Unaudited)     2016       2016       2016       2015       2015     
($ in thousands, except per share data)            
INTEREST INCOME             
Loans $ 65,078   $ 63,009   $ 66,678   $ 70,511   $ 76,432    
Federal funds sold   19     17     10     10     15    
Investment securities   7,774     8,499     8,506     8,350     8,335    
Mortgage loans held for sale   299     295     278     237     291    
Assets held in trading accounts   4     3     6     6     4    
Interest bearing balances due from banks     244       77       144       225       122    
TOTAL INTEREST INCOME     73,418       71,900       75,622       79,339       85,199    
INTEREST EXPENSE             
Time deposits   1,767     1,741     1,636     1,858     1,936    
Other deposits   1,965     2,035     2,018     2,105     2,222    
Federal funds purchased and securities            
sold under agreements to repurchase   59     59     65     60     55    
Other borrowings   1,048     938     1,128     1,084     1,812    
Subordinated debentures     516       544       543       481       498    
TOTAL INTEREST EXPENSE     5,355       5,317       5,390       5,588       6,523    
NET INTEREST INCOME    68,063     66,583     70,232     73,751     78,676    
Provision for loan losses     8,294       4,616       2,823       3,230       1,615    
NET INTEREST INCOME AFTER PROVISION             
FOR LOAN LOSSES      59,769       61,967       67,409       70,521       77,061    
NON-INTEREST INCOME             
Trust income   3,873     3,656     3,631     2,725     2,215    
Service charges on deposit accounts   8,771     7,661     7,316     8,104     8,488    
Other service charges and fees   1,840     1,571     1,909     1,654     2,672    
Mortgage lending income   5,760     5,877     3,792     2,298     3,446    
Investment banking income   1,131     1,181     687     784     663    
Debit and credit card fees   7,825     7,688     7,200     7,647     6,879    
Bank owned life insurance income   606     826     997     614     748    
Gain on sale of securities, net   315     3,759     329     305     40    
Net (loss) gain on assets covered by FDIC loss-share agreements                   (9,085 )  
Other income     6,755       4,669       3,642       4,518       7,006    
TOTAL NON-INTEREST INCOME     36,876       36,888       29,503       28,649       23,072    
NON-INTEREST EXPENSE             
Salaries and employee benefits   31,784     33,103     34,773     39,523     37,000    
Occupancy expense, net   4,690     4,990     4,471     3,418     4,812    
Furniture and equipment expense   4,272     4,077     3,947     3,731     4,202    
Other real estate and foreclosure expense   1,849     967     966     1,167     2,297    
Deposit insurance   1,136     1,096     1,148     1,222     1,013    
Merger-related costs   1,524     372     93     1,237     857    
Other operating expenses     17,179       19,532       16,391       17,508       17,314    
TOTAL NON-INTEREST EXPENSE     62,434       64,137       61,789       67,806       67,495    
NET INCOME BEFORE INCOME TAXES    34,211     34,718     35,123     31,364     32,638    
Provision for income taxes     10,782       11,809       11,618       7,505       10,963    
NET INCOME    23,429     22,909     23,505     23,859     21,675    
Preferred stock dividends     –        –        24       77       77    
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS  $   23,429   $   22,909   $   23,481   $   23,782   $   21,598    
BASIC EARNINGS PER SHARE  $   0.77   $   0.75   $   0.77   $   0.79   $   0.72    
DILUTED EARNINGS PER SHARE  $   0.76   $   0.75   $   0.77   $   0.78   $   0.72    
             

           
 Simmons First National Corporation           SFNC
 Consolidated Core Earnings – Quarter-to-Date (non-GAAP) (1)         
 For the Quarters Ended  Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
 (Unaudited)     2016       2016       2016       2015       2015   
($ in thousands, except per share data)          
INTEREST INCOME           
Loans $ 65,078   $ 63,009   $ 66,678   $ 70,511   $ 76,432  
Federal funds sold   19     17     10     10     15  
Investment securities   7,774     8,499     8,506     8,350     8,335  
Mortgage loans held for sale   299     295     278     237     291  
Assets held in trading accounts   4     3     6     6     4  
Interest bearing balances due from banks     244       77       144       225       122  
TOTAL INTEREST INCOME     73,418       71,900       75,622       79,339       85,199  
INTEREST EXPENSE           
Time deposits   1,767     1,741     1,636     1,858     1,936  
Other deposits   1,965     2,035     2,018     2,105     2,222  
Federal funds purchased and securities          
sold under agreements to repurchase   59     59     65     60     55  
Other borrowings   1,048     938     1,128     1,084     1,812  
Subordinated debentures     516       544       543       481       498  
TOTAL INTEREST EXPENSE     5,355       5,317       5,390       5,588       6,523  
NET INTEREST INCOME    68,063     66,583     70,232     73,751     78,676  
Provision for loan losses     8,294       4,616       2,823       3,230       1,615  
NET INTEREST INCOME AFTER PROVISION           
FOR LOAN LOSSES      59,769       61,967       67,409       70,521       77,061  
NON-INTEREST INCOME           
Trust income   3,873     3,656     3,631     2,725     2,215  
Service charges on deposit accounts   8,771     7,661     7,316     8,104     8,488  
Other service charges and fees   1,840     1,571     1,909     1,654     2,672  
Mortgage lending income   5,760     5,877     3,792     2,298     3,446  
Investment banking income   1,131     1,181     687     784     663  
Debit and credit card fees   7,825     7,688     7,200     7,647     6,879  
Bank owned life insurance income   606     826     997     614     748  
Gain on sale of securities, net   315     3,759     329     305     40  
Net (loss) gain on assets covered by FDIC loss-share agreements                   (1,609 )
Other income     6,580       4,669       3,048       4,518       4,737  
TOTAL NON-INTEREST INCOME     36,701       36,888       28,909       28,649       28,279  
NON-INTEREST EXPENSE           
Salaries and employee benefits   31,784     33,103     34,773     37,314     36,919  
Occupancy expense, net   4,595     4,945     4,461     3,358     4,680  
Furniture and equipment expense   4,270     4,077     3,947     3,731     4,172  
Other real estate and foreclosure expense   1,787     967     966     1,167     2,297  
Deposit insurance   1,136     1,096     1,148     1,222     1,013  
Other operating expenses     17,120       16,358       16,387       17,508       17,094  
TOTAL NON-INTEREST EXPENSE     60,692       60,546       61,682       64,300       66,175  
CORE EARNINGS BEFORE INCOME TAXES (non-GAAP) (1)    35,778     38,309     34,636     34,870     39,165  
Provision for income taxes     11,396       13,218       11,427       8,880       13,523  
CORE EARNINGS (non-GAAP) (1)    24,382     25,091     23,209     25,990     25,642  
Preferred stock dividends     –        –        24       77       77  
CORE EARNINGS AVAILABLE TO COMMON S/H (non-GAAP) (1)  $   24,382   $   25,091   $   23,185   $   25,913   $   25,565  
BASIC CORE EARNINGS PER SHARE (non-GAAP) (1)  $   0.80   $   0.83   $   0.76   $   0.86   $   0.85  
DILUTED CORE EARNINGS PER SHARE (non-GAAP) (1)  $   0.79   $   0.82   $   0.76   $   0.86   $   0.85  
           
(1) Calculations of core earnings and core earnings per share and the reconciliations to GAAP are included in the schedules accompanying this release.
 
           

         
 Simmons First National Corporation         SFNC
 Consolidated Risk-Based Capital           
 For the Quarters Ended   Sep 30   Jun 30   Mar 31   Dec 31   Sep 30 
 (Unaudited)     2016       2016       2016       2015       2015   
($ in thousands)          
Tier 1 capital          
Stockholders’ equity $ 1,147,141   $ 1,090,711   $ 1,071,984   $ 1,076,855   $ 1,045,441  
Trust preferred securities, net allowable   60,290     60,184     60,077     60,570     61,906  
Disallowed intangible assets, net of deferred tax   (354,582 )   (334,395 )   (335,166 )   (331,931 )   (314,735 )
Unrealized loss (gain) on AFS securities     (2,117 )     (4,238 )     (3,566 )     2,665       (2,718 )
Total Tier 1 capital     850,732       812,262       793,329       808,159       789,894  
           
Tier 2 capital          
Qualifying allowance for loan losses and          
reserve for unfunded commitments     38,050       37,240       36,398       35,068       34,097  
Total Tier 2 capital     38,050       37,240       36,398       35,068       34,097  
Total risk-based capital $   888,782   $   849,502   $   829,727   $   843,227   $   823,991  
           
Common equity          
Tier 1 capital $ 850,732   $ 812,262   $ 793,329   $ 808,159   $ 789,894  
Less: Non-cumulative preferred stock               (30,852 )   (30,852 )
Less: Trust preferred securities     (60,290 )     (60,184 )     (60,077 )     (60,570 )     (61,906 )
Total common equity $   790,442   $   752,078   $   733,252   $   716,737   $   697,136  
           
 Risk weighted assets $   5,724,052   $   5,343,355   $   5,293,395   $   5,044,453   $   4,986,641  
           
 Adjusted average assets for leverage ratio $   7,355,702   $   7,185,633   $   7,167,839   $   7,218,559   $   7,293,113  
           
Ratios at end of quarter          
Equity to assets   13.94 %   14.48 %   14.22 %   14.24 %   13.83 %
Tangible common equity to tangible assets (1)   9.51 %   9.96 %   9.68 %   9.26 %   9.10 %
Common equity Tier 1 ratio (CET1)   13.81 %   14.08 %   13.85 %   14.21 %   13.98 %
Tier 1 leverage ratio   11.57 %   11.30 %   11.07 %   11.20 %   10.83 %
Tier 1 risk-based capital ratio   14.86 %   15.20 %   14.99 %   16.02 %   15.84 %
Total risk-based capital ratio   15.53 %   15.90 %   15.67 %   16.72 %   16.52 %
           
(1) Calculations of tangible common equity to tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release.
             

           
 Simmons First National Corporation         SFNC  
 Consolidated Loans and Investments             
 For the Quarters Ended   Sep 30   Jun 30   Mar 31   Dec 31   Sep 30   
 (Unaudited)     2016       2016       2016       2015       2015     
($ in thousands)            
Legacy Loan Portfolio – End of Period (1)            
Consumer            
Credit cards $ 175,032   $ 171,468   $ 167,803   $ 177,288   $ 171,701    
Other consumer     275,947       248,018       227,480       208,380       182,472    
Total consumer   450,979     419,486     395,283     385,668     354,173    
Real Estate            
Construction   304,082     330,666     300,042     279,740     253,761    
Single-family residential   841,958     785,289     746,754     696,180     623,089    
Other commercial     1,521,132       1,414,663       1,327,372       1,229,072       1,037,559    
Total real estate   2,667,172     2,530,618     2,374,168     2,204,992     1,914,409    
Commercial            
Commercial   607,738     577,771     551,695     500,116     394,422    
Agricultural     203,529       187,047       143,033       148,563       170,257    
Total commercial   811,267     764,818     694,728     648,679     564,679    
Other     13,671       10,500       8,512       7,115       6,017    
Total Loans $   3,943,089   $   3,725,422   $   3,472,691   $   3,246,454   $   2,839,278    
             
 (1) Excludes all acquired loans.             
             
Investment Securities – End of Period            
Held-to-Maturity             
U.S. Government agencies $ 80,849   $ 199,505   $ 223,484   $ 237,139   $ 285,071    
Mortgage-backed securities   21,454     22,612     23,734     24,774     25,913    
State and political subdivisions   391,495     407,273     424,586     440,676     464,245    
Other securities     2,796       2,764       2,698       2,784       1,065    
Total held-to-maturity     496,594       632,154       674,502       705,373       776,294    
Available-for-Sale             
U.S. Treasury $ 63,985   $ 4,305   $ 4,302   $ 3,994   $ 4,008    
U.S. Government agencies   148,781     58,113     78,308     120,237     153,576    
Mortgage-backed securities   699,748     652,425     722,982     647,425     502,344    
State and political subdivisions   67,019     64,836     11,260     9,874     10,976    
FHLB stock   11,235     8,781     7,838     7,823     14,275    
Other securities     33,438       32,912       32,983       32,054       18,168    
Total available-for-sale     1,024,206       821,372       857,673       821,407       703,347    
Total investment securities $   1,520,800   $   1,453,526   $   1,532,175   $   1,526,780   $   1,479,641    
Fair value – HTM investment securities $   508,910   $   647,293   $   686,835   $   713,371   $   785,030    
             
Investment Securities – QTD Average            
Taxable securities $ 963,150   $ 1,059,802   $ 1,067,302   $ 1,043,268   $ 1,088,597    
Tax exempt securities     466,782       443,492       439,370       463,631       478,436    
Total investment securities – QTD average $   1,429,932   $   1,503,294   $   1,506,672   $   1,506,899   $   1,567,033    
             

             
 Simmons First National Corporation           SFNC  
 Consolidated Loans and Credit Coverage             
 For the Quarters Ended   Sep 30   Jun 30   Mar 31   Dec 31   Sep 30   
 (Unaudited)     2016       2016       2016       2015       2015     
 ($ in thousands)             
LOANS             
Legacy loans $ 3,943,089   $ 3,725,422   $ 3,472,691   $ 3,246,454   $ 2,839,278    
Allowance for loan losses (legacy loans)     (34,094 )     (33,523 )     (32,681 )     (31,351 )     (30,380 )  
Legacy loans (net of allowance)   3,908,995     3,691,899     3,440,010     3,215,103     2,808,898    
Loans acquired   1,502,051     1,327,683     1,503,482     1,729,557     2,085,211    
Credit discount   (42,899 )   (38,294 )   (45,158 )   (55,702 )   (70,441 )  
Allowance for loan losses (loans acquired)     (954 )     (954 )     (954 )     (954 )     (954 )  
Loans acquired (net of discount and allowance)     1,458,198       1,288,435       1,457,370       1,672,901       2,013,816    
Net loans $   5,367,193   $   4,980,334   $   4,897,380   $   4,888,004   $   4,822,714    
             
             
Loan Coverage Ratios             
Allowance for loan losses to legacy loans   0.86 %   0.90 %   0.94 %   0.97 %   1.07 %  
             
Discount for credit losses and allowance on loans acquired            
to total loans acquired plus discount for credit losses            
and allowance on loans acquired (non-GAAP) (1)   2.92 %   2.96 %   3.07 %   3.28 %   3.42 %  
             
Total allowance and credit coverage (non-GAAP) (1)   1.43 %   1.44 %   1.58 %   1.77 %   2.07 %  
             
(1) Calculations of the non-GAAP loan coverage ratios and the reconciliations to GAAP are included in the schedules accompanying this release.  
 
             

         
 Simmons First National Corporation         SFNC
 Consolidated Allowance and Asset Quality           
 For the Quarters Ended   Sep 30   Jun 30   Mar 31   Dec 31   Sep 30 
 (Unaudited)     2016       2016       2016       2015       2015   
($ in thousands)          
Allowance for Loan Losses (Legacy Loans)          
Balance, beginning of quarter $   33,523   $   32,681   $   31,351   $   30,380   $   30,567  
Loans charged off          
Credit cards   699     702     859     757     763  
Other consumer   600     489     393     489     597  
Real estate   6,297     824     229     845     109  
Commercial     284       2,283       476       654       516  
Total loans charged off     7,880       4,298       1,957       2,745       1,985  
           
Recoveries of loans previously charged off          
Credit cards   199     253     242     223     213  
Other consumer   106     149     103     140     78  
Real estate   55     111     112     120     25  
Commercial     12       318       7       3       –   
Total recoveries     372       831       464       486       316  
Net loans charged off   7,508     3,467     1,493     2,259     1,669  
Provision for loan losses     8,079       4,309       2,823       3,230       1,482  
Balance, end of quarter $   34,094   $   33,523   $   32,681   $   31,351   $   30,380  
           
Non-performing assets (1) (2)          
Non-performing loans          
Nonaccrual loans   37,392     43,305     34,244     17,714     15,305  
Loans past due 90 days or more     144       227       881       1,191       1,506  
Total non-performing loans     37,536       43,532       35,125       18,905       16,811  
Other non-performing assets          
Foreclosed assets held for sale (2)   30,396     30,529     41,126     44,820     48,073  
Other non-performing assets     621       519       256       211       172  
Total other non-performing assets     31,017       31,048       41,382       45,031       48,245  
Total non-performing assets $   68,553   $   74,580   $   76,507   $   63,936   $   65,056  
Performing TDRs (troubled debt restructurings) $ 13,604   $ 10,887   $ 10,759   $ 3,031   $ 1,955  
           
Ratios (1) (2)          
Allowance for loan losses to total loans   0.86 %   0.90 %   0.94 %   0.97 %   1.07 %
Allowance for loan losses to non-performing loans   91 %   77 %   93 %   166 %   181 %
Non-performing loans to total loans   0.95 %   1.17 %   1.01 %   0.58 %   0.59 %
Non-performing assets (including performing TDRs)          
to total assets   1.00 %   1.13 %   1.16 %   0.89 %   0.89 %
Non-performing assets to total assets   0.83 %   0.99 %   1.02 %   0.85 %   0.86 %
Annualized net charge offs to total loans   0.82 %   0.39 %   0.18 %   0.31 %   0.24 %
Annualized net credit card charge offs to          
total credit card loans   1.14 %   1.07 %   1.46 %   1.22 %   1.26 %
Annualized net charge offs to total loans          
(excluding credit cards)   0.81 %   0.36 %   0.11 %   0.25 %   0.17 %
           
 (1) Excludes all acquired loans, except for their inclusion in total assets.       
 (2) Includes acquired foreclosed assets held for sale.           
           

                     
 Simmons First National Corporation                     SFNC
 Consolidated – Average Balance Sheet and Net Interest Income Analysis             
 For the Quarters Ended                       
 (Unaudited)                       
   Three Months Ended
Sep 2016 
   Three Months Ended
Jun 2016 
   Three Months Ended
Sep 2015 
($ 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 $ 246,818   $ 244     0.39 %   $ 126,114   $ 77     0.25 %   $ 206,467   $ 122     0.23 %
Federal funds sold   6,431     19     1.18 %     2,570     17     2.66 %     19,086     15     0.31 %
Investment securities – taxable   1,038,437     4,445     1.70 %     1,087,179     5,273     1.95 %     1,209,985     4,901     1.61 %
Investment securities – non-taxable (FTE)   391,495     5,468     5.56 %     416,115     5,300     5.12 %     357,048     5,582     6.20 %
Mortgage loans held for sale   31,256     299     3.81 %     28,844     295     4.11 %     26,379     291     4.38 %
Assets held in trading accounts   5,108     4     0.31 %     6,932     3     0.17 %     6,401     4     0.25 %
Loans, including acquired loans     5,105,474       65,120     5.07 %       4,957,888       63,041     5.11 %       4,835,068       76,456     6.27 %
Total interest earning assets (FTE)   6,825,019       75,599     4.41 %     6,625,642       74,006     4.49 %     6,660,434       87,371     5.20 %
Non-earning assets     878,818             896,491             947,333      
Total assets $   7,703,837         $   7,522,133         $   7,607,767      
                       
LIABILITIES AND STOCKHOLDERS’ EQUITY                  
Interest bearing liabilities:                      
Interest bearing transaction and                      
savings accounts $ 3,645,414   $ 1,965     0.21 %   $ 3,526,278   $ 2,035     0.23 %   $ 3,600,930   $ 2,222     0.24 %
Time deposits     1,213,895       1,767     0.58 %       1,242,805       1,741     0.56 %       1,397,928       1,936     0.55 %
Total interest bearing deposits   4,859,309     3,732     0.31 %     4,769,083     3,776     0.32 %     4,998,858     4,158     0.33 %
Federal funds purchased and securities                      
sold under agreement to repurchase   105,576     59     0.22 %     104,668     59     0.23 %     109,311     55     0.20 %
Other borrowings   192,453     1,048     2.17 %     172,268     938     2.19 %     197,832     1,812     3.63 %
Subordinated debentures     60,238       516     3.41 %       60,132       544     3.64 %       61,851       498     3.19 %
Total interest bearing liabilities   5,217,576       5,355     0.41 %     5,106,151       5,317     0.42 %     5,367,852       6,523     0.48 %
Non-interest bearing liabilities:                      
Non-interest bearing deposits   1,322,818           1,271,878           1,121,078      
Other liabilities     49,191             57,486             74,696      
Total liabilities   6,589,585           6,435,515           6,563,626      
Stockholders’ equity     1,114,252             1,086,618             1,044,141      
Total liabilities and stockholders’ equity $   7,703,837         $   7,522,133         $   7,607,767      
Net interest income (FTE)   $   70,244         $   68,689         $   80,848    
Net interest spread (FTE)       4.00 %         4.07 %         4.72 %
Net interest margin (FTE) – quarter-to-date       4.09 %         4.17 %         4.82 %
                       
Net interest margin (FTE) – year-to-date       4.22 %         4.29 %         4.58 %
                       
Core net interest margin (FTE) – quarter-to-date (1)       3.81 %         3.88 %         3.93 %
Core loan yield (FTE) – quarter-to-date (1)       4.69 %         4.73 %         5.05 %
                       
Core net interest margin (FTE) – year-to-date (1)       3.87 %         3.90 %         3.82 %
Core loan yield (FTE) – year-to-date (1)       4.75 %         4.77 %         5.07 %
                       
(1) Calculations of core net interest margin and core loan yield and the reconciliations to GAAP are included in the schedules accompanying this release.
                       

         
 Simmons First National Corporation         SFNC
 Consolidated – Selected Financial Data           
 For the Quarters Ended   Sep 30   Jun 30   Mar 31   Dec 31   Sep 30 
 (Unaudited)     2016       2016       2016       2015       2015   
($ in thousands, except share data)          
QUARTER-TO-DATE          
Financial Highlights – GAAP          
Net Income $ 23,429   $ 22,909   $ 23,481   $ 23,782   $ 21,598  
Diluted earnings per share   0.76     0.75     0.77     0.78     0.72  
Return on average assets   1.21 %   1.22 %   1.26 %   1.25 %   1.13 %
Return on average common equity   8.36 %   8.48 %   8.87 %   9.15 %   8.46 %
Return on tangible common equity   13.26 %   13.52 %   14.30 %   14.62 %   13.58 %
Net interest margin (FTE)   4.09 %   4.17 %   4.41 %   4.53 %   4.82 %
FTE adjustment   2,181     2,105     2,084     2,185     2,172  
Amortization of intangibles   1,503     1,451     1,455     1,337     1,265  
Amortization of intangibles, net of taxes   913     882     884     813     769  
Average diluted shares outstanding   30,843,714     30,452,285     30,481,604     30,301,190     30,046,062  
Cash dividends declared per common share   0.24     0.24     0.24     0.23     0.23  
Financial Highlights – Core (non-GAAP)          
Core earnings (excludes nonrecurring items) (1) $ 24,382   $ 25,091   $ 23,185   $ 25,913   $ 25,565  
Diluted core earnings per share (1)   0.79     0.82     0.76     0.86     0.85  
Core net interest margin (FTE) (2)   3.81 %   3.88 %   3.92 %   3.87 %   3.93 %
Efficiency ratio (1)   53.83 %   57.09 %   58.73 %   59.26 %   57.40 %
Core return on average assets (1)   1.26 %   1.34 %   1.24 %   1.36 %   1.33 %
Core return on average common equity (1)   8.71 %   9.29 %   8.75 %   9.96 %   10.01 %
Core return on tangible common equity (1)   13.78 %   14.76 %   14.13 %   15.89 %   15.99 %
YEAR-TO-DATE          
Financial Highlights – GAAP          
Net Income $ 69,819   $ 46,390   $ 23,481   $ 74,107   $ 50,325  
Diluted earnings per share   2.28     1.52     0.77     2.63     1.83  
Return on average assets   1.23 %   1.24 %   1.26 %   1.03 %   0.96 %
Return on average common equity   8.57 %   8.67 %   8.87 %   7.90 %   7.41 %
Return on tangible common equity   13.68 %   13.90 %   14.30 %   12.53 %   11.73 %
Net interest margin (FTE)   4.22 %   4.29 %   4.41 %   4.55 %   4.58 %
FTE adjustment   6,370     4,189     2,084     8,517     6,332  
Amortization of intangibles   4,409     2,906     1,455     4,889     3,552  
Amortization of intangibles, net of taxes   2,679     1,766     884     2,972     2,159  
Average diluted shares outstanding   30,656,882     30,438,939     30,481,604     28,209,661     27,497,813  
Cash dividends declared per common share   0.72     0.48     0.24     0.92     0.69  
Financial Highlights – Core (non-GAAP)          
Core earnings (excludes nonrecurring items) (1) $ 72,658   $ 48,276   $ 23,185   $ 89,622   $ 63,709  
Diluted core earnings per share (1)   2.37     1.59     0.76     3.18     2.32  
Core net interest margin (FTE) (2)   3.87 %   3.90 %   3.92 %   3.82 %   3.82 %
Efficiency ratio (1)   56.50 %   57.91 %   58.73 %   59.01 %   58.91 %
Core return on average assets (1)   1.28 %   1.29 %   1.24 %   1.25 %   1.21 %
Core return on average common equity (1)   8.91 %   9.02 %   8.75 %   9.55 %   9.39 %
Core return on tangible common equity (1)   14.22 %   14.45 %   14.13 %   15.05 %   14.73 %
END OF PERIOD          
Book value per share $ 36.69   $ 35.86   $ 35.35   $ 34.55   $ 33.89  
Tangible book value per share   23.80     23.43     22.84     21.97     21.89  
Shares outstanding   31,267,614     30,415,980     30,324,499     30,278,432     29,939,698  
Full-time equivalent employees   1,985     1,880     1,931     1,946     1,967  
Total number of ATM’s   186     174     185     182     183  
Total number of financial centers   150     140     149     149     149  
           
(1) Core earnings exclude nonrecurring 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.
 

           
 Simmons First National Corporation         SFNC  
 Consolidated – Reconciliation of Core Earnings (non-GAAP)         
 For the Quarters Ended   Sep 30   Jun 30   Mar 31   Dec 31   Sep 30   
 (Unaudited)     2016       2016       2016       2015       2015     
($ in thousands, except per share data)            
QUARTER-TO-DATE            
Net Income $ 23,429   $ 22,909   $ 23,481   $ 23,782   $ 21,598    
Nonrecurring items            
Accelerated vesting on retirement agreements               2,209        
Gain on sale of banking operations                   (2,110 )  
Gain from early retirement of trust preferred securities           (594 )          
Loss on FDIC loss-share termination                   7,476    
Merger-related costs   1,524     372     93     1,237     857    
Branch right-sizing   43     3,219     14     60     304    
Tax effect (1)     (614 )     (1,409 )     191       (1,375 )     (2,560 )  
Net nonrecurring items     953       2,182       (296 )     2,131       3,967    
Core earnings (non-GAAP) $   24,382   $   25,091   $   23,185   $   25,913   $   25,565    
             
Diluted earnings per share $ 0.76   $ 0.75   $ 0.77   $ 0.78   $ 0.72    
Nonrecurring items            
Accelerated vesting on retirement agreements               0.08        
Gain on sale of banking operations                   (0.07 )  
Gain from early retirement of trust preferred securities           (0.02 )          
Loss on FDIC loss-share termination                   0.25    
Merger-related costs   0.05     0.01         0.05     0.03    
Branch right-sizing       0.11             0.01    
Tax effect (1)     (0.02 )     (0.05 )     0.01       (0.05 )     (0.09 )  
Net nonrecurring items     0.03       0.07       (0.01 )     0.08       0.13    
Core earnings (non-GAAP) $   0.79   $   0.82   $   0.76   $   0.86   $   0.85    
             
YEAR-TO-DATE            
Net Income $ 69,819   $ 46,390   $ 23,481   $ 74,107   $ 50,325    
Nonrecurring items            
Accelerated vesting on retirement agreements               2,209        
Gain on sale of banking operations               (2,110 )   (2,110 )  
Gain from early retirement of trust preferred securities   (594 )   (594 )   (594 )          
Loss on FDIC loss-share termination               7,476     7,476    
Merger-related costs   1,989     465     93     13,760     12,523    
Branch right-sizing   3,276     3,233     14     3,144     3,084    
Tax effect (1)     (1,832 )     (1,218 )     191       (8,964 )     (7,589 )  
Net nonrecurring items     2,839       1,886       (296 )     15,515       13,384    
Core earnings (non-GAAP) $   72,658   $   48,276   $   23,185   $   89,622   $   63,709    
             
Diluted earnings per share $ 2.28   $ 1.52   $ 0.77   $ 2.63   $ 1.83    
Nonrecurring items            
Accelerated vesting on retirement agreements               0.08        
Gain on sale of banking operations               (0.07 )   (0.07 )  
Gain from early retirement of trust preferred securities   (0.02 )   (0.02 )   (0.02 )          
Loss on FDIC loss-share termination               0.27     0.27    
Merger-related costs   0.06     0.02         0.49     0.46    
Branch right-sizing   0.11     0.11         0.11     0.11    
Tax effect (1)     (0.06 )     (0.04 )     0.01       (0.33 )     (0.28 )  
Net nonrecurring items     0.09       0.07       (0.01 )     0.55       0.49    
Core earnings (non-GAAP) $   2.37   $   1.59   $   0.76   $   3.18   $   2.32    
             
 (1) Effective tax rate of 39.225%, adjusted for non-deductible merger-related costs.         
             

             
Simmons First National Corporation          SFNC  
 Reconciliation Of Non-GAAP Financial Measures – End of Period         
 For the Quarters Ended             
 (Unaudited)   Sept 30   Jun 30   Mar 31   Dec 31   Sept 30   
     2016       2016       2016       2015       2015     
($ in thousands, except per share data)            
             
Calculation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets     
             
Total stockholders’ equity $ 1,147,141   $ 1,090,711   $ 1,071,984   $ 1,076,855   $ 1,045,441    
Preferred stock                             (30,852 )     (30,852 )  
Total common stockholders’ equity   1,147,141     1,090,711     1,071,984     1,046,003     1,014,589    
Intangible assets:            
Goodwill   (348,769 )   (327,686 )   (327,686 )   (327,686 )   (314,344 )  
Other intangible assets     (54,268 )     (50,329 )     (51,783 )     (53,237 )     (44,904 )  
Total intangibles     (403,037 )     (378,015 )     (379,469 )     (380,923 )     (359,248 )  
Tangible common stockholders’ equity $   744,104   $   712,696   $   692,515   $   665,080   $   655,341    
             
Total assets $ 8,226,992   $ 7,534,219   $ 7,536,953   $ 7,559,658   $ 7,559,694    
Intangible assets:            
Goodwill   (348,769 )   (327,686 )   (327,686 )   (327,686 )   (314,344 )  
Other intangible assets     (54,268 )     (50,329 )     (51,783 )     (53,237 )     (44,904 )  
Total intangibles     (403,037 )     (378,015 )     (379,469 )     (380,923 )     (359,248 )  
Tangible assets $   7,823,955   $   7,156,204   $   7,157,484   $   7,178,735   $   7,200,446    
             
Ratio of equity to assets   13.94 %   14.48 %   14.22 %   14.24 %   13.83 %  
Ratio of tangible common equity to tangible assets   9.51 %   9.96 %   9.68 %   9.26 %   9.10 %  
             
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 $ 42,899   $ 38,294   $ 45,158   $ 55,702   $ 70,441    
Allowance for loan losses on acquired loans     954       954       954       954       954    
Total credit discount and ALLL on acquired loans $   43,853   $   39,248   $   46,112   $   56,656   $   71,395    
Total loans acquired $   1,502,051   $   1,327,683   $   1,503,482   $   1,729,557   $   2,085,211    
Discount and ALLL on acquired loans to acquired loans   2.92 %   2.96 %   3.07 %   3.28 %   3.42 %  
             
Calculation of Total Allowance and Credit Coverage           
             
Allowance for loan losses $ 34,094   $ 33,523   $ 32,681   $ 31,351   $ 30,380    
Total credit discount and ALLL on acquired loans     43,853       39,248       46,112       56,656       71,395    
Total allowance and credit discount $   77,947   $   72,771   $   78,793   $   88,007   $   101,775    
Total loans $   5,445,140   $   5,053,105   $   4,976,173   $   4,976,011   $   4,924,489    
Total allowance and credit coverage   1.43 %   1.44 %   1.58 %   1.77 %   2.07 %  
             
Calculation of Tangible Book Value per Share            
             
Total common stockholders’ equity $ 1,147,141   $ 1,090,711   $ 1,071,984   $ 1,046,003   $ 1,014,589    
Intangible assets:            
Goodwill   (348,769 )   (327,686 )   (327,686 )   (327,686 )   (314,344 )  
Other intangible assets     (54,268 )     (50,329 )     (51,783 )     (53,237 )     (44,904 )  
Total intangibles     (403,037 )     (378,015 )     (379,469 )     (380,923 )     (359,248 )  
Tangible common stockholders’ equity $   744,104   $   712,696   $   692,515   $   665,080   $   655,341    
Shares of common stock outstanding     31,267,614       30,415,980       30,324,499       30,278,432       29,939,698    
Book value per common share $   36.69   $   35.86   $   35.35   $   34.55   $   33.89    
Tangible book value per common share $   23.80   $   23.43   $   22.84   $   21.97   $   21.89    
             
             

             
Simmons First National Corporation          SFNC  
 Reconciliation Of Non-GAAP Financial Measures – Quarter-to-Date         
 For the Quarters Ended             
 (Unaudited)   Sept 30   Jun 30   Mar 31   Dec 31   Sept 30   
     2016       2016       2016       2015       2015     
($ in thousands)            
Calculation of Core Return on Average Assets            
             
Net income available to common stockholders $ 23,429   $ 22,909   $ 23,481   $ 23,782   $ 21,598    
Net nonrecurring items, net of taxes, adjustment     953       2,182       (296 )     2,131       3,967    
Core earnings $   24,382   $   25,091   $   23,185   $   25,913   $   25,565    
             
Average total assets $   7,703,837   $   7,522,133   $   7,499,185   $   7,550,569   $   7,607,767    
             
Return on average assets   1.21 %   1.22 %   1.26 %   1.25 %   1.13 %  
Core return on average assets   1.26 %   1.34 %   1.24 %   1.36 %   1.33 %  
             
Calculation of Return on Tangible Common Equity            
             
Net income available to common stockholders $ 23,429   $ 22,909   $ 23,481   $ 23,782   $ 21,598    
Amortization of intangibles, net of taxes     913       882       884       813       769    
Total income available to common stockholders $   24,342   $   23,791   $   24,365   $   24,595   $   22,367    
             
Net nonrecurring items, net of taxes     953       2,182       (296 )     2,131       3,967    
Core earnings   24,382     25,091     23,185     25,913     25,565    
Amortization of intangibles, net of taxes     913       882       884       813       769    
Total core income available to common stockholders $   25,295   $   25,973   $   24,069   $   26,726   $   26,334    
             
Average common stockholders’ equity $ 1,114,252   $ 1,086,618   $ 1,065,296   $ 1,031,710   $ 1,013,289    
Average intangible assets:            
Goodwill   (332,893 )   (327,686 )   (327,686 )   (320,216 )   (314,344 )  
Other intangibles     (50,893 )     (51,043 )     (52,498 )     (44,302 )     (45,712 )  
Total average intangibles     (383,786 )     (378,729 )     (380,184 )     (364,518 )     (360,056 )  
Average tangible common stockholders’ equity $   730,466   $   707,889   $   685,112   $   667,192   $   653,233    
             
Return on average common equity   8.36 %   8.48 %   8.87 %   9.15 %   8.46 %  
Return on tangible common equity   13.26 %   13.52 %   14.30 %   14.62 %   13.58 %  
Core return on average common equity   8.71 %   9.29 %   8.75 %   9.96 %   10.01 %  
Core return on tangible common equity   13.78 %   14.76 %   14.13 %   15.89 %   15.99 %  
             
Calculation of Efficiency Ratio (1)            
             
Non-interest expense $ 62,434   $ 64,137   $ 61,789   $ 67,806   $ 67,495    
Nonrecurring non-interest expense adjustment   (1,742 )   (3,591 )   (107 )   (3,506 )   (1,320 )  
Other real estate and foreclosure expense adjustment   (1,787 )   (967 )   (966 )   (1,167 )   (2,297 )  
Amortization of intangibles adjustment     (1,503 )     (1,451 )     (1,455 )     (1,337 )     (1,265 )  
Efficiency ratio numerator $   57,402   $   58,128   $   59,261   $   61,796   $   62,613    
             
Net-interest income $ 68,063   $ 66,583   $ 70,232   $ 73,751   $ 78,676    
Non-interest income   36,876     36,888     29,503     28,649     23,072    
Nonrecurring non-interest income adjustment   (175 )       (594 )       5,207    
Fully tax-equivalent adjustment   2,181     2,105     2,084     2,185     2,172    
(Gain) loss on sale of securities     (315 )     (3,759 )     (329 )     (305 )     (40 )  
Efficiency ratio denominator $   106,630   $   101,817   $   100,896   $   104,280   $   109,087    
             
Efficiency ratio (1)   53.83 %   57.09 %   58.73 %   59.26 %   57.40 %  
             
Calculation of Core Net Interest Margin            
             
Net interest income $ 68,063   $ 66,583   $ 70,232   $ 73,751   $ 78,676    
Fully tax-equivalent adjustment     2,181       2,105       2,084       2,185       2,172    
Fully tax-equivalent net interest income   70,244     68,688     72,316     75,936     80,848    
             
Total accretable yield     (4,928 )     (4,700 )     (8,077 )     (11,076 )     (14,928 )  
Core net interest income $   65,316   $   63,988   $   64,239   $   64,860   $   65,920    
Average earning assets $   6,825,019   $   6,625,642   $   6,597,389   $   6,652,486   $   6,660,434    
             
Net interest margin   4.09 %   4.17 %   4.41 %   4.53 %   4.82 %  
Core net interest margin   3.81 %   3.88 %   3.92 %   3.87 %   3.93 %  
             
Calculation of Core Loan Yield            
             
Loan interest income $ 65,078   $ 63,009   $ 66,678   $ 70,511   $ 76,432    
Total accretable yield     (4,928 )     (4,700 )     (8,077 )     (11,076 )     (14,928 )  
Core loan interest income $   60,150   $   58,309   $   58,601   $   59,435   $   61,504    
Average loan balance $   5,105,474   $   4,957,888   $   4,889,685   $   4,868,283   $   4,835,068    
             
Core loan yield   4.69 %   4.73 %   4.82 %   4.84 %   5.05 %  
             
(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 nonrecurring items.    
             

             
Simmons First National Corporation          SFNC  
 Reconciliation Of Non-GAAP Financial Measures – Year-to-Date           
 For the Quarters Ended             
 (Unaudited)   Sept 30   Jun 30   Mar 31   Dec 31   Sept 30   
     2016       2016       2016       2015       2015     
($ in thousands)            
Calculation of Core Return on Average Assets            
             
Net income available to common stockholders $ 69,819   $ 46,390   $ 23,481   $ 74,107   $ 50,325    
Net nonrecurring items, net of taxes, adjustment     2,839       1,886       (296 )     15,515       13,384    
Core earnings $   72,658   $   48,276   $   23,185   $   89,622   $   63,709    
             
Average total assets $   7,575,053   $   7,510,657   $   7,499,185   $   7,164,788   $   7,036,535    
             
Return on average assets   1.23 %   1.24 %   1.26 %   1.03 %   0.96 %  
Core return on average assets   1.28 %   1.29 %   1.24 %   1.25 %   1.21 %  
             
Calculation of Return on Tangible Common Equity            
             
Net income available to common stockholders $ 69,819   $ 46,390   $ 23,481   $ 74,107   $ 50,325    
Amortization of intangibles, net of taxes     2,679       1,766       884       2,972       2,159    
Total income available to common stockholders $   72,498   $   48,156   $   24,365   $   77,079   $   52,484    
             
Net nonrecurring items, net of taxes     2,839       1,886       (296 )     15,515       13,384    
Core earnings   72,658     48,276     23,185     89,622     63,709    
Amortization of intangibles, net of taxes     2,679       1,766       884       2,972       2,159    
Total core income available to common stockholders $   75,337   $   50,042   $   24,069   $   92,594   $   65,868    
             
Average common stockholders’ equity $ 1,088,723   $ 1,075,957   $ 1,065,296   $ 938,521   $ 907,458    
Average intangible assets:            
Goodwill   (329,422 )   (327,686 )   (327,686 )   (281,133 )   (268,106 )  
Other intangibles     (51,478 )     (51,771 )     (52,498 )     (42,104 )     (41,372 )  
Total average intangibles     (380,900 )     (379,457 )     (380,184 )     (323,237 )     (309,478 )  
Average tangible common stockholders’ equity $   707,823   $   696,500   $   685,112   $   615,284   $   597,980    
             
Return on average common equity   8.57 %   8.67 %   8.87 %   7.90 %   7.41 %  
Return on tangible common equity   13.68 %   13.90 %   14.30 %   12.53 %   11.73 %  
Core return on average common equity   8.91 %   9.02 %   8.75 %   9.55 %   9.39 %  
Core return on tangible common equity   14.22 %   14.45 %   14.13 %   15.05 %   14.73 %  
             
Calculation of Efficiency Ratio (1)            
             
Non-interest expense $ 188,360   $ 125,931   $ 61,789   $ 256,970   $ 189,166    
Nonrecurring non-interest expense adjustment   (5,440 )   (3,698 )   (107 )   (18,747 )   (15,241 )  
Other real estate and foreclosure expense adjustment   (3,720 )   (1,934 )   (966 )   (4,861 )   (3,694 )  
Amortization of intangibles adjustment     (4,409 )     (2,906 )     (1,455 )     (4,889 )     (3,552 )  
Efficiency ratio numerator $   174,791   $   117,393   $   59,261   $   228,473   $   166,679    
             
Net-interest income $ 204,878   $ 136,814   $ 70,232   $ 278,595   $ 204,844    
Non-interest income   103,267     66,397     29,503     94,661     66,014    
Nonrecurring non-interest income adjustment   (769 )   (594 )   (594 )   5,731     5,731    
Fully tax-equivalent adjustment   6,370     4,189     2,084     8,517     6,332    
(Gain) loss on sale of securities     (4,403 )     (4,088 )     (329 )     (307 )     (2 )  
Efficiency ratio denominator $   309,343   $   202,718   $   100,896   $   387,197   $   282,919    
             
Efficiency ratio (1)   56.50 %   57.91 %   58.73 %   59.01 %   58.91 %  
             
Calculation of Core Net Interest Margin            
             
Net interest income $ 204,878   $ 136,814   $ 70,232   $ 278,595   $ 204,844    
Fully tax-equivalent adjustment     6,370       4,189       2,084       8,517       6,332    
Fully tax-equivalent net interest income   211,248     141,003     72,316     287,112     211,176    
             
Total accretable yield     (17,705 )     (12,777 )     (8,077 )     (46,131 )     (35,055 )  
Core net interest income $   193,543   $   128,226   $   64,239   $   240,981   $   176,121    
Average earning assets $   6,682,683   $   6,611,516   $   6,597,389   $   6,305,966   $   6,170,521    
             
Net interest margin   4.22 %   4.29 %   4.41 %   4.55 %   4.58 %  
Core net interest margin   3.87 %   3.90 %   3.92 %   3.82 %   3.82 %  
             
Calculation of Core Loan Yield            
             
Loan interest income $ 194,765   $ 129,688   $ 66,678   $ 268,367   $ 197,857    
Total accretable yield     (17,705 )     (12,777 )     (8,077 )     (46,131 )     (35,055 )  
Core loan interest income $   177,060   $   116,911   $   58,601   $   222,236   $   162,802    
Average loan balance $   4,984,349   $   4,923,787   $   4,889,685   $   4,434,074   $   4,289,339    
             
Core loan yield   4.75 %   4.77 %   4.82 %   5.01 %   5.07 %  
             
(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 nonrecurring items.    
             
CONTACT: FOR MORE INFORMATION CONTACT:
J. BURTON HICKS
SVP and Investor Relations Officer
Simmons First National Corporation
(870) 541-1000
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