Simmons Reports Second Quarter Net Income of $22.9 Million, or $0.75 per share

PINE BLUFF, Ark., July 20, 2016 (GLOBE NEWSWIRE) — Simmons First National Corporation (NASDAQ:SFNC) today announced net income available to common shareholders of $22.9 million for the second quarter of 2016, an increase of $2.9 million, or 14.4 percent, compared with the same quarter last year. Diluted earnings per share were $0.75, an increase of $0.08, or 11.9 percent.

Included in second quarter 2016 results were $2.2 million of after-tax expenses related to noncore items. Excluding the impact of these items, core earnings were $25.1 million for the second quarter of 2016, an increase of $2.6 million, or 11.8 percent, compared with the same quarter last year. Diluted core earnings per share were $0.82, an increase of $0.07, or 9.3 percent.

Year-to-date net income was $46.4 million, an increase of $17.7 million, or 61.5 percent, compared with the same period of 2015. Year-to-date diluted earnings per share was $1.52, an increase of $0.42, or 38.2 percent. Year-to-date core earnings were $48.3 million, or $1.59 diluted core earnings per share.

“We are pleased with the results from the second quarter as we continue to absorb the acquisitions from the previous two years. Competitive pressures and artificially low interest rates continue to put pressure on our net interest income but we have done a good job of diversifying our revenue through other lines of business such as our trust operations, mortgage lending, credit card services, and other wealth management offerings. We will continue to focus on improving our efficiency throughout the remainder of the year,” said George A. Makris, Jr., chairman and CEO. “We also look forward to the completion of the merger with Citizens Bank in Athens, Tenn. later this year and the opportunity to welcome them to the Simmons family.”

Loans

Total loans, including those acquired, were $5.0 billion at June 30, 2016, an increase of $201 million, or 4.2 percent, compared with the same period in 2015. Legacy loans (all loans excluding acquired loans) grew $1.1 billion, or 42.7 percent. On a linked quarter basis, total loan growth was $83.8 million.

Deposits

At June 30, 2016, total deposits were $6.0 billion, a decrease of $142 million, or 2.3 percent, compared with the same period in 2015. Total non-time deposits were $4.8 billion, an increase of $100 million, or 2.1 percent, and comprised 80% of total deposits.

Net Interest Income

The company’s net interest income for the second quarter of 2016 was $66.6 million, a decrease of $6.6 million, or 9.0 percent, from the same period of 2015. This decrease was primarily driven by a $5.4 million decline in yield accretion on acquired loans. Included in interest income was the yield accretion recognized on acquired loans of $4.7 million and $10.1 million for the second quarter of 2016 and 2015, respectively. Net interest margin was 4.17 percent for the quarter ended June 30, 2016, a 30 basis-point decline from the same quarter of 2015. The company’s core net interest margin, excluding the accretion, was 3.88 percent for the second quarter of 2016, a 1 basis-point increase from the same quarter of 2015.

Non-Interest Income

Non-interest income for the second quarter was $36.9 million, an increase of $11.9 million compared with the second quarter of 2015. The increase in non-interest income was primarily due to gains recorded on the sale of securities that totaled $3.4 million as part of the bond portfolio rebalancing strategy.

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 $3.1 million in losses on FDIC-covered assets in the second quarter compared with the same period in 2015. The remaining increase in non-interest income was due to additional mortgage lending, trust income and investment banking revenue.

Non-Interest Expense

Non-interest expense for the second quarter of 2016 was $64.1 million, a decrease of $667,000 compared with the second quarter of 2015. Included in the quarter were $372,000 of merger-related expenses and $3.2 million of branch right-sizing expenses related to the closure of ten underperforming branches during the second quarter of 2016.

Salaries and benefits decreased by $2.0 million to $33.1 million in the current quarter of 2016, compared with $35.1 million in the same quarter of 2015. This decrease of 5.7% is a result of the company’s ongoing efficiency initiatives around expense control. This decrease was partially offset by an increase of $836,000 in furniture and equipment expense primarily related to maintenance contracts and equipment rent.

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 June 30, 2016, the allowance for loan losses for legacy loans was $33.5 million. The company’s allowance for loan losses on legacy loans at June 30, 2016 was 0.90 percent of total loans and 77 percent of non-performing loans. In the legacy portfolio, non-performing loans as a percent of total loans were 1.17 percent.

The allowance for loan losses for acquired loans was $1.0 million and the acquired loan discount credit mark was $38.3 million. The allowances for loan losses and credit marks provide a total of $72.8 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 3.0 percent.

The 2016 year-to-date net charge-off ratio, excluding credit cards, was 24 basis points, and the year-to-date credit card charge-off ratio was 1.25 percent.

Capital

At June 30, 2016, common stockholders’ equity was $1.1 billion, book value per share was $35.86 and tangible book value per share was $23.43. The company’s ratio of stockholders’ equity to total assets was 14.48 percent and its ratio of tangible common equity to tangible assets was 10.0 percent.

Simmons First National Corporation

Simmons First National Corporation is a financial holding company headquartered in Pine Bluff, Arkansas, with total assets of $7.5 billion. The company conducts financial operations in Arkansas, Kansas, Missouri and Tennessee. The company’s wholly owned subsidiary, Simmons Bank, offers comprehensive financial solutions delivered with 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, July 21, 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 42603491. In addition, the call will be available live or in recorded version on the company’s website at www.simmonsfirst.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	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30
(Unaudited)		2016			2016			2015			2015			2015
($ in thousands)
ASSETS
Cash and non-interest bearing balances due from banks	$	96,037		$	118,468		$	97,656		$	106,678		$	69,770
Interest bearing balances due from banks		151,570			100,593			154,606			284,645			173,130
Federal funds sold		3,000			4,000			–			9,675			49,570
Cash and cash equivalents		250,607			223,061			252,262			400,998			292,470
Interest bearing balances due from banks – time		9,781			11,188			14,107			16,504			24,189
Investment securities – held-to-maturity		632,154			674,502			705,373			776,294			861,596
Investment securities – available-for-sale		821,372			857,673			821,407			703,347			747,701
Mortgage loans held for sale		30,529			24,563			30,265			15,556			48,094
Assets held in trading accounts		7,321			7,074			4,422			6,292			6,481
Loans:
Legacy loans		3,725,422			3,472,691			3,246,454			2,839,278			2,611,229
Allowance for loan losses		(33,523	)		(32,681	)		(31,351	)		(30,380	)		(30,567	)
Loans acquired, not covered by FDIC loss share
(net of discount and allowance)		1,288,435			1,457,370			1,672,901			2,013,816			2,108,306
Loans acquired, covered by FDIC loss share
(net of discount and allowance)		–			–			–			–			93,121
Net loans		4,980,334			4,897,380			4,888,004			4,822,714			4,782,089
FDIC indemnification asset		–			–			–			–			13,020
Premises and equipment		183,362			192,327			193,618			190,182			191,335
Premises held for sale		6,167			2,364			923			923			6,587
Foreclosed assets not covered by FDIC loss share		30,529			41,126			44,820			48,073			42,666
Foreclosed assets covered by FDIC loss share		–			–			–			–			12,833
Interest receivable		24,150			23,545			25,793			26,873			24,129
Bank owned life insurance		130,943			130,092			131,536			118,922			118,073
Goodwill		327,686			327,686			327,686			314,344			314,344
Other intangible assets		50,329			51,783			53,237			44,904			46,605
Other assets		48,955			72,589			66,205			73,768			82,146
Total assets	$	7,534,219		$	7,536,953		$	7,559,658		$	7,559,694		$	7,614,358

LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Non-interest bearing transaction accounts	$	1,283,426		$	1,274,816		$	1,280,234		$	1,212,724		$	1,141,285
Interest bearing transaction accounts and savings deposits		3,538,808			3,524,808			3,485,845			3,521,840			3,581,049
Time deposits less than $100,000		643,081			674,915			694,262			673,651			719,606
Time deposits greater than $100,000		562,888			605,236			625,755			681,585			728,082
Total deposits		6,028,203			6,079,775			6,086,096			6,089,800			6,170,022
Federal funds purchased and securities sold
under agreements to repurchase		103,038			97,429			99,398			110,437			111,792
Other borrowings		191,827			176,829			162,289			173,426			171,321
Subordinated debentures		60,184			60,077			60,570			61,906			61,794
Accrued interest and other liabilities		60,256			50,859			74,450			78,684			74,324
Total liabilities		6,443,508			6,464,969			6,482,803			6,514,253			6,589,253

Stockholders’ equity:
Preferred stock		–			–			30,852			30,852			30,852
Common stock		304			303			303			299			299
Surplus		668,306			665,850			662,378			642,400			640,895
Undivided profits		417,863			402,265			385,987			369,172			354,459
Accumulated other comprehensive income (loss):
Unrealized appreciation (depreciation) on AFS securities		4,238			3,566			(2,665	)		2,718			(1,400	)
Total stockholders’ equity		1,090,711			1,071,984			1,076,855			1,045,441			1,025,105
Total liabilities and stockholders’ equity	$	7,534,219		$	7,536,953		$	7,559,658		$	7,559,694		$	7,614,358

Simmons First National Corporation										SFNC
Consolidated Statements of Income – Quarter-to-Date
For the Quarters Ended	Jun 30		Mar 31		Dec 31		Sep 30			Jun 30
(Unaudited)		2016		2016		2015		2015			2015
($ in thousands, except per share data)
INTEREST INCOME
Loans	$	63,009	$	66,678	$	70,511	$	76,432		$	70,438
Federal funds sold		17		10		10		15			73
Investment securities		8,499		8,506		8,350		8,335			8,050
Mortgage loans held for sale		295		278		237		291			375
Assets held in trading accounts		3		6		6		4			4
Interest bearing balances due from banks		77		144		225		122			229
TOTAL INTEREST INCOME		71,900		75,622		79,339		85,199			79,169
INTEREST EXPENSE
Time deposits		1,741		1,636		1,858		1,936			2,064
Other deposits		2,035		2,018		2,105		2,222			2,131
Federal funds purchased and securities
sold under agreements to repurchase		59		65		60		55			57
Other borrowings		938		1,128		1,084		1,812			1,151
Subordinated debentures		544		543		481		498			559
TOTAL INTEREST EXPENSE		5,317		5,390		5,588		6,523			5,962
NET INTEREST INCOME		66,583		70,232		73,751		78,676			73,207
Provision for loan losses		4,616		2,823		3,230		1,615			3,006
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES		61,967		67,409		70,521		77,061			70,201
NON-INTEREST INCOME
Trust income		3,656		3,631		2,725		2,215			2,070
Service charges on deposit accounts		7,661		7,316		8,104		8,488			8,031
Other service charges and fees		1,571		1,909		1,654		2,672			2,766
Mortgage lending income		5,877		3,792		2,298		3,446			3,449
Investment banking income		1,181		687		784		663			593
Debit and credit card fees		7,688		7,200		7,647		6,879			6,486
Bank owned life insurance income		826		997		614		748			746
Gain on sale of securities, net		3,759		329		305		40			–
Net (loss) gain on assets covered by FDIC loss-share agreements		–		–		–		(9,085	)		(3,056	)
Other income		4,669		3,642		4,518		7,006			3,863
TOTAL NON-INTEREST INCOME		36,888		29,503		28,649		23,072			24,948
NON-INTEREST EXPENSE
Salaries and employee benefits		33,103		34,773		39,523		37,000			35,111
Occupancy expense, net		4,990		4,471		3,418		4,812			5,051
Furniture and equipment expense		4,077		3,947		3,731		4,202			3,241
Other real estate and foreclosure expense		967		966		1,167		2,297			1,017
Deposit insurance		1,096		1,148		1,222		1,013			1,096
Merger-related costs		372		93		1,237		857			1,247
Other operating expenses		19,532		16,391		17,508		17,314			18,041
TOTAL NON-INTEREST EXPENSE		64,137		61,789		67,806		67,495			64,804
NET INCOME BEFORE INCOME TAXES		34,718		35,123		31,364		32,638			30,345
Provision for income taxes		11,809		11,618		7,505		10,963			10,250
NET INCOME		22,909		23,505		23,859		21,675			20,095
Preferred stock dividends		–		24		77		77			77
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	22,909	$	23,481	$	23,782	$	21,598		$	20,018
BASIC EARNINGS PER SHARE	$	0.75	$	0.77	$	0.79	$	0.72		$	0.67
DILUTED EARNINGS PER SHARE	$	0.75	$	0.77	$	0.78	$	0.72		$	0.67

Simmons First National Corporation										SFNC
Consolidated Core Earnings – Quarter-to-Date (non-GAAP) (1)
For the Quarters Ended	Jun 30		Mar 31		Dec 31		Sep 30			Jun 30
(Unaudited)		2016		2016		2015		2015			2015
($ in thousands, except per share data)
INTEREST INCOME
Loans	$	63,009	$	66,678	$	70,511	$	76,432		$	70,438
Federal funds sold		17		10		10		15			73
Investment securities		8,499		8,506		8,350		8,335			8,050
Mortgage loans held for sale		295		278		237		291			375
Assets held in trading accounts		3		6		6		4			4
Interest bearing balances due from banks		77		144		225		122			229
TOTAL INTEREST INCOME		71,900		75,622		79,339		85,199			79,169
INTEREST EXPENSE
Time deposits		1,741		1,636		1,858		1,936			2,064
Other deposits		2,035		2,018		2,105		2,222			2,131
Federal funds purchased and securities
sold under agreements to repurchase		59		65		60		55			57
Other borrowings		938		1,128		1,084		1,812			1,151
Subordinated debentures		544		543		481		498			559
TOTAL INTEREST EXPENSE		5,317		5,390		5,588		6,523			5,962
NET INTEREST INCOME		66,583		70,232		73,751		78,676			73,207
Provision for loan losses		4,616		2,823		3,230		1,615			3,006
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES		61,967		67,409		70,521		77,061			70,201
NON-INTEREST INCOME
Trust income		3,656		3,631		2,725		2,215			2,070
Service charges on deposit accounts		7,661		7,316		8,104		8,488			8,031
Other service charges and fees		1,571		1,909		1,654		2,672			2,766
Mortgage lending income		5,877		3,792		2,298		3,446			3,449
Investment banking income		1,181		687		784		663			593
Debit and credit card fees		7,688		7,200		7,647		6,879			6,486
Bank owned life insurance income		826		997		614		748			746
Gain on sale of securities, net		3,759		329		305		40			–
Net (loss) gain on assets covered by FDIC loss-share agreements		–		–		–		(1,609	)		(3,056	)
Other income		4,669		3,048		4,518		4,737			4,396
TOTAL NON-INTEREST INCOME		36,888		28,909		28,649		28,279			25,481
NON-INTEREST EXPENSE
Salaries and employee benefits		33,103		34,773		37,314		36,919			34,960
Occupancy expense, net		4,945		4,461		3,358		4,680			5,013
Furniture and equipment expense		4,077		3,947		3,731		4,172			3,209
Other real estate and foreclosure expense		967		966		1,167		2,297			1,017
Deposit insurance		1,096		1,148		1,222		1,013			1,096
Other operating expenses		16,358		16,387		17,508		17,094			16,050
TOTAL NON-INTEREST EXPENSE		60,546		61,682		64,300		66,175			61,345
CORE EARNINGS BEFORE INCOME TAXES (non-GAAP) (1)		38,309		34,636		34,870		39,165			34,337
Provision for income taxes		13,218		11,427		8,880		13,523			11,816
CORE EARNINGS (non-GAAP) (1)		25,091		23,209		25,990		25,642			22,521
Preferred stock dividends		–		24		77		77			77
CORE EARNINGS AVAILABLE TO COMMON S/H (non-GAAP) (1)	$	25,091	$	23,185	$	25,913	$	25,565		$	22,444
BASIC CORE EARNINGS PER SHARE (non-GAAP) (1)	$	0.83	$	0.76	$	0.86	$	0.85		$	0.75
DILUTED CORE EARNINGS PER SHARE (non-GAAP) (1)	$	0.82	$	0.76	$	0.86	$	0.85		$	0.75

(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	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30
(Unaudited)		2016			2016			2015			2015			2015
($ in thousands)
Tier 1 capital
Stockholders’ equity	$	1,090,711		$	1,071,984		$	1,076,855		$	1,045,441		$	1,025,105
Trust preferred securities, net allowable		60,184			60,077			60,570			61,906			61,794
Disallowed intangible assets, net of deferred tax		(334,395	)		(335,166	)		(331,931	)		(314,735	)		(342,590	)
Unrealized loss (gain) on AFS securities		(4,238	)		(3,566	)		2,665			(2,718	)		1,400
Other		–			–			–			–			(10,297	)
Total Tier 1 capital		812,262			793,329			808,159			789,894			735,412

Tier 2 capital
Qualifying unrealized gain on AFS equity securities		–			–			–			–			–
Qualifying allowance for loan losses and
reserve for unfunded commitments		37,240			36,398			35,068			34,097			34,284
Total Tier 2 capital		37,240			36,398			35,068			34,097			34,284
Total risk-based capital	$	849,502		$	829,727		$	843,227		$	823,991		$	769,696

Common equity
Tier 1 capital	$	812,262		$	793,329		$	808,159		$	789,894		$	735,412
Less: Non-cumulative preferred stock		–			–			(30,852	)		(30,852	)		(30,852	)
Less: Trust preferred securities		(60,184	)		(60,077	)		(60,570	)		(61,906	)		(61,794	)
Total common equity	$	752,078		$	733,252		$	716,737		$	697,136		$	642,766

Risk weighted assets	$	5,343,355		$	5,293,395		$	5,044,453		$	4,986,641		$	4,714,852

Adjusted average assets for leverage ratio	$	7,185,633		$	7,167,839		$	7,218,559		$	7,293,113		$	7,350,900

Ratios at end of quarter
Equity to assets		14.48	%		14.22	%		14.24	%		13.83	%		13.46	%
Tangible common equity to tangible assets (1)		9.96	%		9.68	%		9.26	%		9.10	%		8.73	%
Common equity Tier 1 ratio (CET1)		14.08	%		13.85	%		14.21	%		13.98	%		13.63	%
Tier 1 leverage ratio		11.30	%		11.07	%		11.20	%		10.83	%		10.00	%
Tier 1 risk-based capital ratio		15.20	%		14.99	%		16.02	%		15.84	%		15.60	%
Total risk-based capital ratio		15.90	%		15.67	%		16.72	%		16.52	%		16.32	%

(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	Jun 30		Mar 31		Dec 31		Sep 30		Jun 30
(Unaudited)		2016		2016		2015		2015		2015
($ in thousands)
Legacy Loan Portfolio – End of Period⁽¹⁾
Consumer
Credit cards	$	171,468	$	167,803	$	177,288	$	171,701	$	174,074
Other consumer		248,018		227,480		208,380		182,472		160,828
Total consumer		419,486		395,283		385,668		354,173		334,902
Real Estate
Construction		330,666		300,042		279,740		253,761		199,707
Single-family residential		785,289		746,754		696,180		623,089		662,954
Other commercial		1,414,663		1,327,372		1,229,072		1,037,559		878,109
Total real estate		2,530,618		2,374,168		2,204,992		1,914,409		1,740,770
Commercial
Commercial		577,771		551,695		500,116		394,422		388,869
Agricultural		187,047		143,033		148,563		170,257		141,502
Total commercial		764,818		694,728		648,679		564,679		530,371
Other		10,500		8,512		7,115		6,017		5,186
Total Loans	$	3,725,422	$	3,472,691	$	3,246,454	$	2,839,278	$	2,611,229

(1) Excludes all acquired loans, including those covered by FDIC loss-share agreements.

Investment Securities – End of Period
Held-to-Maturity
U.S. Government agencies	$	199,505	$	223,484	$	237,139	$	285,071	$	361,744
Mortgage-backed securities		22,612		23,734		24,774		25,913		27,146
State and political subdivisions		407,273		424,586		440,676		464,245		471,631
Other securities		2,764		2,698		2,784		1,065		1,075
Total held-to-maturity		632,154		674,502		705,373		776,294		861,596
Available-for-Sale
U.S. Treasury	$	4,305	$	4,302	$	3,994	$	4,008	$	4,005
U.S. Government agencies		58,113		78,308		120,237		153,576		236,003
Mortgage-backed securities		652,425		722,982		647,425		502,344		464,857
State and political subdivisions		64,836		11,260		9,874		10,976		10,971
FHLB stock		8,781		7,838		7,823		14,275		13,619
Other securities		32,912		32,983		32,054		18,168		18,246
Total available-for-sale		821,372		857,673		821,407		703,347		747,701
Total investment securities	$	1,453,526	$	1,532,175	$	1,526,780	$	1,479,641	$	1,609,297
Fair value – HTM investment securities	$	647,293	$	686,835	$	713,371	$	785,030	$	863,349

Investment Securities – QTD Average
Taxable securities	$	1,059,802	$	1,067,302	$	1,043,268	$	1,088,597	$	1,163,708
Tax exempt securities		443,492		439,370		463,631		478,436		492,118
Total investment securities – QTD average	$	1,503,294	$	1,506,672	$	1,506,899	$	1,567,033	$	1,655,826

Simmons First National Corporation													SFNC
Consolidated Loans and Credit Coverage
For the Quarters Ended	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30
(Unaudited)		2016			2016			2015			2015			2015
($ in thousands)
LOANS
Legacy loans	$	3,725,422		$	3,472,691		$	3,246,454		$	2,839,278		$	2,611,229
Allowance for loan losses (legacy loans)		(33,523	)		(32,681	)		(31,351	)		(30,380	)		(30,567	)
Legacy loans (net of allowance)		3,691,899			3,440,010			3,215,103			2,808,898			2,580,662
Loans acquired, not covered by FDIC loss share		1,327,683			1,503,482			1,729,557			2,085,211			2,171,388
Credit discount		(38,294	)		(45,158	)		(55,702	)		(70,441	)		(63,082	)
Allowance for loan losses (loans acquired, not covered)		(954	)		(954	)		(954	)		(954	)		–
Loans acquired, not covered (net of discount and allowance)		1,288,435			1,457,370			1,672,901			2,013,816			2,108,306
Loans acquired, covered by FDIC loss share		–			–			–			–			114,296
Credit discount		–			–			–			–			(20,221	)
Allowance for loan losses (acquired covered loans)		–			–			–			–			(954	)
Loans acquired, covered (net of discount and allowance)		–			–			–			–			93,121
Net loans	$	4,980,334		$	4,897,380		$	4,888,004		$	4,822,714		$	4,782,089

Loan Coverage Ratios
Allowance for loan losses to legacy loans		0.90	%		0.94	%		0.97	%		1.07	%		1.17	%

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)		2.96	%		3.07	%		3.28	%		3.42	%		3.69	%

Total allowance and credit coverage (non-GAAP) (1)		1.44	%		1.58	%		1.77	%		2.07	%		2.34	%
(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	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30
(Unaudited)		2016			2016			2015			2015			2015
($ in thousands)
Allowance for Loan Losses (Legacy Loans)
Balance, beginning of quarter	$	32,681		$	31,351		$	30,380		$	30,567		$	29,183
Loans charged off
Credit cards		702			859			757			763			802
Other consumer		489			393			489			597			366
Real estate		824			229			845			109			333
Commercial		2,283			476			654			516			–
Total loans charged off		4,298			1,957			2,745			1,985			1,501

Recoveries of loans previously charged off
Credit cards		253			242			223			213			241
Other consumer		149			103			140			78			187
Real estate		111			112			120			25			46
Commercial		318			7			3			–			9
Total recoveries		831			464			486			316			483
Net loans charged off		3,467			1,493			2,259			1,669			1,018
Provision for loan losses		4,309			2,823			3,230			1,482			2,402
Balance, end of quarter	$	33,523		$	32,681		$	31,351		$	30,380		$	30,567

Non-performing assets^{(1) (2)}
Non-performing loans
Nonaccrual loans		43,305			34,244			17,714			15,305			15,565
Loans past due 90 days or more		227			881			1,191			1,506			1,375
Total non-performing loans		43,532			35,125			18,905			16,811			16,940
Other non-performing assets
Foreclosed assets held for sale, not covered		30,529			41,126			44,820			48,073			42,666
Other non-performing assets		519			256			211			172			242
Total other non-performing assets		31,048			41,382			45,031			48,245			42,908
Total non-performing assets	$	74,580		$	76,507		$	63,936		$	65,056		$	59,848
Performing TDRs (troubled debt restructurings)	$	10,887		$	10,759		$	3,031		$	1,955		$	1,959

Ratios^{(1) (2)}
Allowance for loan losses to total loans		0.90	%		0.94	%		0.97	%		1.07	%		1.17	%
Allowance for loan losses to non-performing loans		77	%		93	%		166	%		181	%		180	%
Non-performing loans to total loans		1.17	%		1.01	%		0.58	%		0.59	%		0.65	%
Non-performing assets (including performing TDRs)
to total assets		1.13	%		1.16	%		0.89	%		0.89	%		0.81	%
Non-performing assets to total assets		0.99	%		1.02	%		0.85	%		0.86	%		0.79	%
Annualized net charge offs to total loans		0.39	%		0.18	%		0.31	%		0.24	%		0.17	%
Annualized net credit card charge offs to
total credit card loans		1.07	%		1.46	%		1.22	%		1.26	%		1.31	%
Annualized net charge offs to total loans
(excluding credit cards)		0.36	%		0.11	%		0.25	%		0.17	%		0.08	%

(1) Excludes all acquired loans, including those covered by FDIC loss-share agreements, except for their inclusion in total assets.
(2) Excludes acquired foreclosed assets covered by FDIC loss-share agreements, except for their inclusion in total assets.

Simmons First National Corporation																			SFNC
Consolidated – Average Balance Sheet and Net Interest Income Analysis
For the Quarters Ended
(Unaudited)
	Three Months Ended Jun 2016							Three Months Ended Mar 2016							Three Months Ended Jun 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	$	126,114	$	77		0.25	%	$	167,381	$	144		0.35	%	$	308,756	$	229		0.30	%
Federal funds sold		2,570		17		2.66	%		1,839		10		2.19	%		75,922		73		0.39	%
Investment securities – taxable		1,087,179		5,273		1.95	%		1,076,855		5,311		1.98	%		1,295,466		4,479		1.39	%
Investment securities – non-taxable (FTE)		416,115		5,300		5.12	%		429,817		5,249		4.91	%		360,360		5,849		6.51	%
Mortgage loans held for sale		28,844		295		4.11	%		26,616		278		4.20	%		37,656		375		3.99	%
Assets held in trading accounts		6,932		3		0.17	%		5,196		6		0.46	%		6,592		4		0.24	%
Loans, including acquired loans		4,957,888		63,041		5.11	%		4,889,685		66,708		5.49	%		4,689,941		70,463		6.03	%
Total interest earning assets (FTE)		6,625,642		74,006		4.49	%		6,597,389		77,706		4.74	%		6,774,693		81,472		4.82	%
Non-earning assets		896,491							901,796							920,999
Total assets	$	7,522,133						$	7,499,185						$	7,695,692

LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest bearing liabilities:
Interest bearing transaction and
savings accounts	$	3,526,278	$	2,035		0.23	%	$	3,484,571	$	2,018		0.23	%	$	3,621,060	$	2,131		0.24	%
Time deposits		1,242,805		1,741		0.56	%		1,303,614		1,636		0.50	%		1,488,208		2,064		0.56	%
Total interest bearing deposits		4,769,083		3,776		0.32	%		4,788,185		3,654		0.31	%		5,109,268		4,195		0.33	%
Federal funds purchased and securities
sold under agreement to repurchase		104,668		59		0.23	%		113,551		65		0.23	%		116,258		57		0.20	%
Other borrowings		172,268		938		2.19	%		184,000		1,128		2.47	%		179,080		1,151		2.58	%
Subordinated debentures		60,132		544		3.64	%		60,109		543		3.63	%		62,981		559		3.56	%
Total interest bearing liabilities		5,106,151		5,317		0.42	%		5,145,845		5,390		0.42	%		5,467,587		5,962		0.44	%
Non-interest bearing liabilities:
Non-interest bearing deposits		1,271,878							1,225,311							1,088,474
Other liabilities		57,486							53,240							70,312
Total liabilities		6,435,515							6,424,396							6,626,373
Stockholders’ equity		1,086,618							1,074,789							1,069,319
Total liabilities and stockholders’ equity	$	7,522,133						$	7,499,185						$	7,695,692
Net interest income (FTE)			$	68,689						$	72,316						$	75,510
Net interest spread (FTE)						4.07	%						4.32	%						4.38	%
Net interest margin (FTE) – quarter-to-date						4.17	%						4.41	%						4.47	%

Net interest margin (FTE) – year-to-date						4.29	%						4.41	%						4.42	%

Core net interest margin (FTE) – quarter-to-date (1)						3.88	%						3.92	%						3.87	%
Core loan yield (FTE) – quarter-to-date (1)						4.73	%						4.82	%						5.16	%

Core net interest margin (FTE) – year-to-date (1)						3.90	%						3.92	%						3.74	%
Core loan yield (FTE) – year-to-date (1)						4.77	%						4.82	%						5.06	%

(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	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30
(Unaudited)		2016			2016			2015			2015			2015
($ in thousands, except share data)
QUARTER-TO-DATE
Financial Highlights – GAAP
Net Income	$	22,909		$	23,481		$	23,782		$	21,598		$	20,018
Diluted earnings per share		0.75			0.77			0.78			0.72			0.67
Return on average assets		1.22	%		1.26	%		1.25	%		1.13	%		1.04	%
Return on average common equity		8.48	%		8.87	%		9.15	%		8.46	%		7.73	%
Return on tangible common equity		13.52	%		14.30	%		14.62	%		13.58	%		12.36	%
Net interest margin (FTE)		4.17	%		4.41	%		4.53	%		4.82	%		4.47	%
FTE adjustment		2,105			2,084			2,185			2,172			2,303
Amortization of intangibles		1,451			1,455			1,337			1,265			1,388
Amortization of intangibles, net of taxes		882			884			813			769			844
Average diluted shares outstanding		30,452,285			30,481,604			30,301,190			30,046,062			29,987,471
Cash dividends declared per common share		0.24			0.24			0.23			0.23			0.23
Financial Highlights – Core (non-GAAP)
Core earnings (excludes nonrecurring items) (1)	$	25,091		$	23,185		$	25,913		$	25,565		$	22,444
Diluted core earnings per share (1)		0.82			0.76			0.86			0.85			0.75
Core net interest margin (FTE) (2)		3.88	%		3.92	%		3.87	%		3.93	%		3.87	%
Efficiency ratio (1)		57.09	%		58.73	%		59.26	%		57.40	%		58.36	%
Core return on average assets (1)		1.34	%		1.24	%		1.36	%		1.33	%		1.17	%
Core return on average common equity (1)		9.29	%		8.75	%		9.96	%		10.01	%		8.67	%
Core return on tangible common equity (1)		14.76	%		14.13	%		15.89	%		15.99	%		13.80	%
YEAR-TO-DATE
Financial Highlights – GAAP
Net Income	$	46,390		$	23,481		$	74,107		$	50,325		$	28,727
Diluted earnings per share		1.52			0.77			2.63			1.83			1.10
Return on average assets		1.24	%		1.26	%		1.03	%		0.96	%		0.86	%
Return on average common equity		8.67	%		8.87	%		7.90	%		7.41	%		6.77	%
Return on tangible common equity		13.90	%		14.30	%		12.53	%		11.73	%		10.63	%
Net interest margin (FTE)		4.29	%		4.41	%		4.55	%		4.58	%		4.42	%
FTE adjustment		4,189			2,084			8,517			6,332			4,160
Amortization of intangibles		2,906			1,455			4,889			3,552			2,287
Amortization of intangibles, net of taxes		1,766			884			2,972			2,159			1,390
Average diluted shares outstanding		30,438,939			30,481,604			28,209,661			27,497,813			26,203,942
Cash dividends declared per common share		0.48			0.24			0.92			0.69			0.46
Financial Highlights – Core (non-GAAP)
Core earnings (excludes nonrecurring items) (1)	$	48,276		$	23,185		$	89,622		$	63,709		$	38,144
Diluted core earnings per share (1)		1.59			0.76			3.18			2.32			1.46
Core net interest margin (FTE) (2)		3.90	%		3.92	%		3.82	%		3.82	%		3.74	%
Efficiency ratio (1)		57.91	%		58.73	%		59.01	%		58.91	%		59.94	%
Core return on average assets (1)		1.29	%		1.24	%		1.25	%		1.21	%		1.14	%
Core return on average common equity (1)		9.02	%		8.75	%		9.55	%		9.39	%		8.99	%
Core return on tangible common equity (1)		14.45	%		14.13	%		15.05	%		14.73	%		13.96	%
END OF PERIOD
Book value per share	$	35.86		$	35.35		$	34.55		$	33.89		$	33.26
Tangible book value per share		23.43			22.84			21.97			21.89			21.19
Shares outstanding		30,415,980			30,324,499			30,278,432			29,939,698			29,894,903
Full-time equivalent employees		1,880			1,931			1,946			1,967			2,043
Total number of ATM’s		174			185			182			183			186
Total number of financial centers		140			149			149			149			152

(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	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30
(Unaudited)		2016			2016			2015			2015			2015
($ in thousands, except per share data)
QUARTER-TO-DATE
Net Income	$	22,909		$	23,481		$	23,782		$	21,598		$	20,018
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		372			93			1,237			857			1,247
Branch right-sizing		3,219			14			60			304			2,745
Tax effect ⁽¹⁾		(1,409	)		191			(1,375	)		(2,560	)		(1,566	)
Net nonrecurring items		2,182			(296	)		2,131			3,967			2,426
Core earnings (non-GAAP)	$	25,091		$	23,185		$	25,913		$	25,565		$	22,444

Diluted earnings per share	$	0.75		$	0.77		$	0.78		$	0.72		$	0.67
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		0.01			–			0.05			0.03			0.04
Branch right-sizing		0.11			–			–			0.01			0.09
Tax effect ⁽¹⁾		(0.05	)		0.01			(0.05	)		(0.09	)		(0.05	)
Net nonrecurring items		0.07			(0.01	)		0.08			0.13			0.08
Core earnings (non-GAAP)	$	0.82		$	0.76		$	0.86		$	0.85		$	0.75

YEAR-TO-DATE
Net Income	$	46,390		$	23,481		$	74,107		$	50,325		$	28,727
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	)		–			–			–
Loss on FDIC loss-share termination		–			–			7,476			7,476			–
Merger-related costs		465			93			13,760			12,523			11,666
Branch right-sizing		3,233			14			3,144			3,084			2,780
Tax effect ⁽¹⁾		(1,218	)		191			(8,964	)		(7,589	)		(5,029	)
Net nonrecurring items		1,886			(296	)		15,515			13,384			9,417
Core earnings (non-GAAP)	$	48,276		$	23,185		$	89,622		$	63,709		$	38,144

Diluted earnings per share	$	1.52		$	0.77		$	2.63		$	1.83		$	1.10
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	)		–			–			–
Loss on FDIC loss-share termination		–			–			0.27			0.27			–
Merger-related costs		0.02			–			0.49			0.46			0.45
Branch right-sizing		0.11			–			0.11			0.11			0.11
Tax effect ⁽¹⁾		(0.04	)		0.01			(0.33	)		(0.28	)		(0.20	)
Net nonrecurring items		0.07			(0.01	)		0.55			0.49			0.36
Core earnings (non-GAAP)	$	1.59		$	0.76		$	3.18		$	2.32		$	1.46

(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)	Jun 30			Mar 31			Dec 31			Sept 30			Jun 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	$	1,090,711		$	1,071,984		$	1,076,855		$	1,045,441		$	1,025,105
Less preferred stock		–			–			(30,852	)		(30,852	)		(30,852	)
Total common stockholders’ equity		1,090,711			1,071,984			1,046,003			1,014,589			994,253
Less intangible assets:
Goodwill		(327,686	)		(327,686	)		(327,686	)		(314,344	)		(314,344	)
Other intangible assets		(50,329	)		(51,783	)		(53,237	)		(44,904	)		(46,605	)
Total intangibles		(378,015	)		(379,469	)		(380,923	)		(359,248	)		(360,949	)
Tangible common stockholders’ equity	$	712,696		$	692,515		$	665,080		$	655,341		$	633,304

Total assets	$	7,534,219		$	7,536,953		$	7,559,658		$	7,559,694		$	7,614,358
Less intangible assets:
Goodwill		(327,686	)		(327,686	)		(327,686	)		(314,344	)		(314,344	)
Other intangible assets		(50,329	)		(51,783	)		(53,237	)		(44,904	)		(46,605	)
Total intangibles		(378,015	)		(379,469	)		(380,923	)		(359,248	)		(360,949	)
Tangible assets	$	7,156,204		$	7,157,484		$	7,178,735		$	7,200,446		$	7,253,409

Ratio of equity to assets		14.48	%		14.22	%		14.24	%		13.83	%		13.46	%
Ratio of tangible common equity to tangible assets		9.96	%		9.68	%		9.26	%		9.10	%		8.73	%

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	$	38,294		$	45,158		$	55,702		$	70,441		$	83,303
Allowance for loan losses on acquired loans		954			954			954			954			954
Total credit discount and ALLL on acquired loans	$	39,248		$	46,112		$	56,656		$	71,395		$	84,257
Total loans acquired	$	1,327,683		$	1,503,482		$	1,729,557		$	2,085,211		$	2,285,684
Discount and ALLL on acquired loans to acquired loans		2.96	%		3.07	%		3.28	%		3.42	%		3.69	%

Calculation of Total Allowance and Credit Coverage

Allowance for loan losses	$	33,523		$	32,681		$	31,351		$	30,380		$	30,567
Total credit discount and ALLL on acquired loans		39,248			46,112			56,656			71,395			84,257
Total allowance and credit discount	$	72,771		$	78,793		$	88,007		$	101,775		$	114,824
Total loans	$	5,053,105		$	4,976,173		$	4,976,011		$	4,924,489		$	4,896,913
Total allowance and credit coverage		1.44	%		1.58	%		1.77	%		2.07	%		2.34	%

Calculation of Tangible Book Value per Share

Total common stockholders’ equity	$	1,090,711		$	1,071,984		$	1,046,003		$	1,014,589		$	994,253
Less intangible assets:
Goodwill		(327,686	)		(327,686	)		(327,686	)		(314,344	)		(314,344	)
Other intangible assets		(50,329	)		(51,783	)		(53,237	)		(44,904	)		(46,605	)
Total intangibles		(378,015	)		(379,469	)		(380,923	)		(359,248	)		(360,949	)
Tangible common stockholders’ equity	$	712,696		$	692,515		$	665,080		$	655,341		$	633,304
Shares of common stock outstanding		30,415,980			30,324,499			30,278,432			29,939,698			29,894,903
Book value per common share	$	35.86		$	35.35		$	34.55		$	33.89		$	33.26
Tangible book value per common share	$	23.43		$	22.84		$	21.97		$	21.89		$	21.19

Simmons First National Corporation													SFNC
Reconciliation Of Non-GAAP Financial Measures – Quarter-to-Date
For the Quarters Ended
(Unaudited)	Jun 30			Mar 31			Dec 31			Sept 30			Jun 30
		2016			2016			2016			2015			2015
($ in thousands)
Calculation of Core Return on Average Assets

Net income available to common stockholders	$	22,909		$	23,481		$	23,782		$	21,598		$	20,018
Net nonrecurring items, net of taxes, adjustment		2,182			(296	)		2,131			3,967			2,426
Core earnings	$	25,091		$	23,185		$	25,913		$	25,565		$	22,444

Average total assets	$	7,522,133		$	7,499,185		$	7,550,569		$	7,607,767		$	7,695,692

Return on average assets		1.22	%		1.26	%		1.25	%		1.13	%		1.04	%
Core return on average assets		1.34	%		1.24	%		1.36	%		1.33	%		1.17	%

Calculation of Return on Tangible Common Equity

Net income available to common stockholders	$	22,909		$	23,481		$	23,782		$	21,598		$	20,018
Amortization of intangibles, net of taxes		882			884			813			769			844
Total income available to common stockholders	$	23,791		$	24,365		$	24,595		$	22,367		$	20,862

Net nonrecurring items, net of taxes		2,182			(296	)		2,131			3,967			2,426
Core earnings		25,091			23,185			25,913			25,565			22,444
Amortization of intangibles, net of taxes		882			884			813			769			844
Total core income available to common stockholders	$	25,973		$	24,069		$	26,726		$	26,334		$	23,288

Average common stockholders’ equity	$	1,086,618		$	1,065,296		$	1,031,710		$	1,013,289		$	1,038,434
Less average intangible assets:
Goodwill		(327,686	)		(327,686	)		(320,216	)		(314,344	)		(314,344	)
Other intangibles		(51,043	)		(52,498	)		(44,302	)		(45,712	)		(47,302	)
Total average intangibles		(378,729	)		(380,184	)		(364,518	)		(360,056	)		(361,646	)
Average tangible common stockholders’ equity	$	707,889		$	685,112		$	667,192		$	653,233		$	676,788

Return on average common equity		8.48	%		8.87	%		9.15	%		8.46	%		7.73	%
Return on tangible common equity		13.52	%		14.30	%		14.62	%		13.58	%		12.36	%
Core return on average common equity		9.29	%		8.75	%		9.96	%		10.01	%		8.67	%
Core return on tangible common equity		14.76	%		14.13	%		15.89	%		15.99	%		13.80	%

Calculation of Efficiency Ratio *(1)*

Non-interest expense	$	64,137		$	61,789		$	67,806		$	67,495		$	64,804
Nonrecurring non-interest expense adjustment		(3,591	)		(107	)		(3,506	)		(1,320	)		(3,459	)
Less other real estate and foreclosure expense		(967	)		(966	)		(1,167	)		(2,297	)		(1,017	)
Less amortization of intangibles		(1,451	)		(1,455	)		(1,337	)		(1,265	)		(1,388	)
Efficiency ratio numerator	$	58,128		$	59,261		$	61,796		$	62,613		$	58,940

Net-interest income	$	66,583		$	70,232		$	73,751		$	78,676		$	73,207
Plus non-interest income		36,888			29,503			28,649			23,072			24,948
Nonrecurring non-interest income adjustment		–			(594	)		–			5,207			533
Plus fully tax-equivalent adjustment		2,105			2,084			2,185			2,172			2,303
(Gain) loss on sale of securities		(3,759	)		(329	)		(305	)		(40	)		–
Efficiency ratio denominator	$	101,817		$	100,896		$	104,280		$	109,087		$	100,991

Efficiency ratio (1)		57.09	%		58.73	%		59.26	%		57.40	%		58.36	%

Calculation of Core Net Interest Margin

Net interest income	$	66,583		$	70,232		$	73,751		$	78,676		$	73,207
FTE adjustment		2,105			2,084			2,185			2,172			2,303
Total accretable yield		(4,700	)		(8,077	)		(11,076	)		(14,928	)		(10,133	)
Core net interest income	$	63,988		$	64,239		$	64,860		$	65,920		$	65,377
Average earning assets	$	6,625,642		$	6,597,389		$	6,652,486		$	6,660,434		$	6,774,693

Core net interest margin		3.88	%		3.92	%		3.87	%		3.93	%		3.87	%

Calculation of Core Loan Yield

Loan interest income	$	63,009		$	66,678		$	70,511		$	76,432		$	70,438
Total accretable yield		(4,700	)		(8,077	)		(11,076	)		(14,928	)		(10,133	)
Core loan interest income	$	58,309		$	58,601		$	59,435		$	61,504		$	60,305
Average loan balance	$	4,957,888		$	4,889,685		$	4,868,283		$	4,835,068		$	4,689,941

Core loan yield		4.73	%		4.82	%		4.84	%		5.05	%		5.16	%

(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)	Jun 30			Mar 31			Dec 31			Sept 30			Jun 30
		2016			2016			2016			2015			2015
($ in thousands)
Calculation of Core Return on Average Assets

Net income available to common stockholders	$	46,390		$	23,481		$	74,107		$	50,325		$	28,727
Net nonrecurring items, net of taxes, adjustment		1,886			(296	)		15,515			13,384			9,417
Core earnings	$	48,276		$	23,185		$	89,622		$	63,709		$	38,144

Average total assets	$	7,510,657		$	7,499,185		$	7,164,788		$	7,036,535		$	6,734,980

Return on average assets		1.24	%		1.26	%		1.03	%		0.96	%		0.86	%
Core return on average assets		1.29	%		1.24	%		1.25	%		1.21	%		1.14	%

Calculation of Return on Tangible Common Equity

Net income available to common stockholders	$	46,390		$	23,481		$	74,107		$	50,325		$	28,727
Amortization of intangibles, net of taxes		1,766			884			2,972			2,159			1,390
Total income available to common stockholders	$	48,156		$	24,365		$	77,079		$	52,484		$	30,117

Net nonrecurring items, net of taxes		1,886			(296	)		15,515			13,384			9,417
Core earnings		48,276			23,185			89,622			63,709			38,144
Amortization of intangibles, net of taxes		1,766			884			2,972			2,159			1,390
Total core income available to common stockholders	$	50,042		$	24,069		$	92,594		$	65,868		$	39,534

Average common stockholders’ equity	$	1,075,957		$	1,065,296		$	938,521		$	907,458		$	855,325
Less average intangible assets:
Goodwill		(327,686	)		(327,686	)		(281,133	)		(268,106	)		(244,980	)
Other intangibles		(51,771	)		(52,498	)		(42,104	)		(41,372	)		(39,202	)
Total average intangibles		(379,457	)		(380,184	)		(323,237	)		(309,478	)		(284,182	)
Average tangible common stockholders’ equity	$	696,500		$	685,112		$	615,284		$	597,980		$	571,143

Return on average common equity		8.67	%		8.87	%		7.90	%		7.41	%		6.77	%
Return on tangible common equity		13.90	%		14.30	%		12.53	%		11.73	%		10.63	%
Core return on average common equity		9.02	%		8.75	%		9.55	%		9.39	%		8.99	%
Core return on tangible common equity		14.45	%		14.13	%		15.05	%		14.73	%		13.96	%

Calculation of Efficiency Ratio *(1)*

Non-interest expense	$	125,931		$	61,789		$	256,970		$	189,166		$	122,011
Nonrecurring non-interest expense adjustment		(3,698	)		(107	)		(18,747	)		(15,241	)		(13,922	)
Less other real estate and foreclosure expense		(1,934	)		(966	)		(4,861	)		(3,694	)		(1,398	)
Less amortization of intangibles		(2,906	)		(1,455	)		(4,889	)		(3,552	)		(2,287	)
Efficiency ratio numerator	$	117,393		$	59,261		$	228,473		$	166,679		$	104,404

Net-interest income	$	136,814		$	70,232		$	278,595		$	204,844		$	126,168
Plus non-interest income		66,397			29,503			94,661			66,014			43,282
Nonrecurring non-interest income adjustment		(594	)		(594	)		5,731			5,731			523
Plus fully tax-equivalent adjustment		4,189			2,084			8,517			6,332			4,160
(Gain) loss on sale of securities		(4,088	)		(329	)		(307	)		(2	)		38
Efficiency ratio denominator	$	202,718		$	100,896		$	387,197		$	282,919		$	174,171

Efficiency ratio (1)		57.91	%		58.73	%		59.01	%		58.91	%		59.94	%

Calculation of Core Net Interest Margin

Net interest income	$	136,814		$	70,232		$	278,595		$	204,844		$	126,168
FTE adjustment		4,189			2,084			8,517			6,332			4,160
Total accretable yield		(12,777	)		(8,077	)		(46,131	)		(35,055	)		(20,127	)
Core net interest income	$	128,226		$	64,239		$	240,981		$	176,121		$	110,201
Average earning assets	$	6,611,516		$	6,597,389		$	6,305,966		$	6,170,521		$	5,948,265

Core net interest margin		3.90	%		3.92	%		3.82	%		3.82	%		3.74	%

Calculation of Core Loan Yield

Loan interest income	$	129,688		$	66,678		$	268,367		$	197,857		$	121,424
Total accretable yield		(12,777	)		(8,077	)		(46,131	)		(35,055	)		(20,127	)
Core loan interest income	$	116,911		$	58,601		$	222,236		$	162,802		$	101,297
Average loan balance	$	4,923,787		$	4,889,685		$	4,434,074		$	4,289,339		$	4,038,397

Core loan yield		4.77	%		4.82	%		5.01	%		5.07	%		5.06	%

(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