Simmons Reports Third Quarter 2017 Earnings

PINE BLUFF, Ark., Oct. 22, 2017 (GLOBE NEWSWIRE) — Simmons First National Corp. (NASDAQ:SFNC) today announced net income available to common shareholders of $28.9 million, or $0.89 per diluted share, for the quarter ended September 30, 2017, compared to $23.4 million, or $0.76 per diluted share, for the same period in 2016, a 17.1% increase. Included in third quarter 2017 results was $721,000 in net after-tax merger-related and branch right-sizing costs as well as a $1.8 million gain on the sale of insurance lines.

Excluding the impact of these items, core earnings were $27.7 million, or $0.86 per diluted share, for the quarter ended September 30, 2017, compared to $24.4 million, or $0.79 per diluted share, for the quarter ended September 30, 2016, an 8.9% increase.

Year-to-date net income was $74.0 million, or $2.31 diluted earnings per share. Excluding the net after-tax merger-related and branch right-sizing costs and the insurance gain, year-to-date core earnings were $77.0 million, or $2.41 diluted core earnings per share.

On October 19, 2017, Simmons First National Corp. completed the acquisitions of Southwest Bancorp, Inc. (NASDAQ:OKSB), headquartered in Stillwater, OK., including its wholly-owned bank subsidiary, Bank SNB, and First Texas BHC, Inc., headquartered in Ft. Worth, TX, including its wholly-owned subsidiary, Southwest Bank. With the completion of these acquisitions, the proforma combined total assets of the company are approximately $14.2 billion. The systems conversions are planned during the first half of 2018, at which time the subsidiary banks will be merged into Simmons Bank.

Simmons Bank was the successful bidder at a public auction held to discharge certain indebtedness owed to the Bank and became the sole shareholder of Heartland Bank in Little Rock, AR, on August 28, 2017. Heartland Bank remains a separately chartered state bank. Simmons is evaluating the next steps with respect to the institution.

On September 1, 2017, the insurance affiliates of the Company completed the sale of their property and casualty insurance business lines and an after-tax gain of $1.8 million was recognized on the transaction. Tangible common equity was positively impacted by $7.2 million due to a reduction in intangible assets related to the sold business.

Additionally, during the quarter, the Company completed its conversion and integration of First South Bank with and into its subsidiary, Simmons Bank.

“The third quarter was certainly an exciting and eventful quarter for us,” said George A. Makris, Jr., chairman and CEO. “We are pleased with the operating results from the third quarter and I am extremely proud of our associates’ ability to manage the significant transactions during the quarter while producing outstanding results. We are also excited to welcome the associates of Bank SNB and Southwest Bank to the Simmons family. We look forward to a great partnership.”

Selected Highlights:	3rd Qtr 2017	2nd Qtr 2017	3rd Qtr 2016

Net income	$28.9 million	$23.1 million	$23.4 million
Diluted earnings per share	$0.89	$0.72	$0.76
Return on avg assets	1.25%	1.05%	1.21%
Return on avg common equity	9.12%	7.65%	8.36%
Return on tangible common equity	14.47%	12.13%	13.26%
Net interest margin⁽¹⁾	3.91%	4.04%	4.08%

Core earnings⁽²⁾	$27.7 million	$26.8 million	$24.4 million
Diluted core earnings per share⁽²⁾	$0.86	$0.84	$0.79
Core return on avg assets⁽²⁾	1.20%	1.22%	1.26%
Core return on avg common equity⁽²⁾	8.77%	8.87%	8.71%
Core return on tangible common equity⁽²⁾	13.93%	13.99%	13.78%
Core net interest margin⁽¹⁾⁽²⁾	3.77%	3.79%	3.79%

Efficiency ratio	55.06%	56.04%	53.94%
(1) Fully tax equivalent.
(2) Core earnings excludes non-core items, which is a non-GAAP measurement.

Loans

	3rd Qtr 2017	2nd Qtr 2017	3rd Qtr 2016

Total loans	$6.3 billion	$6.2 billion	$5.4 billion
Legacy loans (all loans excluding loans acquired)	$5.2 billion	$5.0 billion	$3.9 billion
Loans acquired	$1.1 billion	$1.2 billion	$1.5 billion

Total loans, including those acquired, were $6.3 billion at September 30, 2017, an increase of $902.1 million, or 16.7% from September 30, 2016.

On a linked-quarter basis (September 30, 2017 compared to June 30, 2017), total loans increased $78.0 million, or 1.3%. The increase was due to:

$30 million decrease in liquidating portfolio (indirect lending and consumer finance)
$13 million increase from participations purchased from Southwest Bank
$228 million in net legacy loan growth including $36 million of migrated loans (acquired to legacy)
$133 million decrease in the existing acquired loan portfolio including migration

Deposits

	3rd Qtr 2017	2nd Qtr 2017	3rd Qtr 2016

Total deposits	$7.3 billion	$7.1 billion	$6.6 billion
Non-time deposits	$6.0 billion	$5.8 billion	$5.3 billion
Time deposits	$1.3 billion	$1.3 billion	$1.3 billion

At September 30, 2017, total deposits were $7.3 billion, an increase of 10.7%, compared to the same period in 2016. The increase is from recent acquisitions and growth in core deposits. Total non-time deposits increased 13.7% compared to the same period in 2016, and comprised 82% of total deposits.

Net Interest Income

The Company’s net interest income for the third quarter of 2017 was $78.8 million, an increase of $10.8 million, or 15.8%, from the same period of 2016. Included in interest income was the yield accretion recognized on loans acquired of $2.9 million and $4.9 million for the third quarter of 2017 and 2016, respectively. Net interest margin was 3.91% for the quarter ended September 30, 2017, a 17 basis point decline from the same quarter of 2016. The Company’s core net interest margin, excluding the accretion, was 3.77% for the third quarter of 2017, a 2 basis point decline from September 30, 2016 and a 2 basis point decrease from June 30, 2017. Cost of interest bearing deposits were 0.43% for the third quarter of 2017, a 12 basis point increase from September 30, 2016 and a 7 basis point increase from June 30, 2017.

Non-Interest Income

Non-interest income for the third quarter was $36.3 million, a decrease of $544,000 compared with the third quarter of 2016. Included in non-interest income were the following items:

$3.7 million gain on sale of property and casualty insurance business lines
$325,000 loss on the sale of fixed assets
$1.2 million decrease in mortgage revenue due to decline in demand in the industry
$451,000 decrease in investment banking revenue, due to the exit from the institutional division of the broker dealer line of business in the third quarter of 2016
$312,000 decrease in gain on sale of securities
$2.0 million decrease in other income due to recovery of charged off loans acquired in third quarter of 2016

Non-Interest Expense

Non-interest expense for the third quarter of 2017 was $66.2 million, an increase of $3.7 million compared to the third quarter of 2016. Included in this quarter were $862,000 of merger-related expenses and branch rightsizing costs. Excluding these expenses, core non-interest expense was $65.3 million.

The increases during the quarter were driven by incremental increases in operating expenses related to the additions of First South Bank which closed during 2017 and Citizens Bank which closed in September 2016. These increases were partially offset by a $716,000 decrease in other real estate and foreclosure expense. The efficiency ratio for the third quarter was 55.06%.

Asset Quality

	3rd Qtr 2017	2nd Qtr 2017	3rd Qtr 2016

Allowance for loan losses on loans to total loans	0.82%	0.83%	0.86%
Allowance for loan losses on loans to non-performing loans	78%	72%	91%
Non-performing loans to total loans	1.05%	1.15%	0.95%
Net charge-off ratio (annualized)	0.32%	0.23%	0.82%
Net charge-off ratio excluding credit cards	0.27%	0.19%	0.81%

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

At September 30, 2017, the allowance for loan losses for legacy loans was $42.7 million. The allowance for loan losses for loans acquired was $391,000 and the acquired loan discount credit mark was $25.0 million. The allowances for loan losses and credit marks provide a total of $68.1 million of coverage, which equates to a total coverage ratio of 1.1% of gross loans. The ratio of credit mark and related allowance to loans acquired was 2.3%.

Provision for loan losses for the third quarter of 2017 was $5.5 million, a decrease of $2.8 million compared to September 30, 2016.

Foreclosed Assets and Other Real Estate Owned

At September 30, 2017, foreclosed assets and other real estate owned were $31.5 million, an increase of $1.1 million, or 3.6%, compared to the same period in 2016. The composition of these assets is divided in to three types:

	3rd Qtr 2017	2nd Qtr 2017	3rd Qtr 2016

Closed bank branches, branch sites & associate relocation	$12.8 million	$8.7 million	$6.1 million
Foreclosed assets – acquired	$11.1 million	$12.0 million	$15.2 million
Foreclosed assets – legacy	$7.6 million	$5.3 million	$9.1 million

Arkansas State banking laws require that former bank branches and vacant land that was previously held for potential bank branches be classified as foreclosed assets and other real estate owned at the time they are no longer used for bank operations. Due to this requirement, foreclosed assets and other real estate owned increased during the quarter by $4.1 million as a result of branch closures during the conversion of First South Bank in to Simmons Bank.

Capital

	3rd Qtr 2017	2nd Qtr 2017	3rd Qtr 2016

Stockholders’ equity to total assets	13.2%	13.6%	13.9%
Tangible common equity to tangible assets	9.1%	9.2%	9.5%
Regulatory tier 1 leverage ratio	10.6%	10.8%	11.6%
Regulatory total risk-based capital ratio	13.6%	13.7%	15.5%

At September 30, 2017, common stockholders’ equity was $1.3 billion, book value per share was $39.03 and tangible book value per share was $25.64.

Simmons First National Corporation

Simmons First National Corp. is a financial holding company, headquartered in Pine Bluff, Ark., with total assets of $9.5 billion as of September 30, 2017 and proforma assets of approximately $14.2 billion conducting financial operations throughout Arkansas, Colorado, Kansas, Missouri, Oklahoma, Tennessee and Texas. The Company, through its subsidiaries, offers comprehensive financial solutions delivered with a client-centric approach. The Company’s common stock trades on the NASDAQ Global Select Market under the symbol “SFNC.”

Conference Call

Management will conduct a live conference call to review this information beginning at 9:30 a.m. CDT on Monday, October 23, 2017. 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 Corp. conference call, conference ID 84536260. In addition, the call will be available live or in recorded version on the Company’s website at www.simmonsbank.com.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles (GAAP). The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance. These measures typically adjust GAAP performance measures to include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant non-core activities or nonrecurring transactions. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

Forward-Looking Statements

Statements in this news release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any forward-looking statement speaks only as of the date of this news release, and we undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors, including, but not limited to, economic conditions, credit quality, interest rates, loan demand, changes in the assumptions used in making the forward-looking statements, and the Company’s ability to obtain regulatory approvals and meet other closing conditions associated with the above-described mergers and acquisitions could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect Simmons First National Corp.’s financial results is included in its Form 10-K filing with the Securities and Exchange Commission.

FOR MORE INFORMATION CONTACT:
DAVID W. GARNER
EVP and Investor Relations Officer
Simmons First National Corporation
(870) 541-1000

Simmons First National Corporation													SFNC
Consolidated End of Period Balance Sheets
For the Quarters Ended	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30
(Unaudited)		2017			2017			2017			2016			2016
($ in thousands)
ASSETS
Cash and non-interest bearing balances due from banks	$	108,675		$	112,567		$	103,875		$	117,007		$	112,572
Interest bearing balances due from banks and federal funds sold		323,615			217,047			201,406			168,652			341,951
Cash and cash equivalents		432,290			329,614			305,281			285,659			454,523
Interest bearing balances due from banks – time		4,059			6,057			4,563			4,563			4,393
Investment securities – held-to-maturity		406,033			419,003			431,176			462,096			496,594
Investment securities – available-for-sale		1,317,420			1,190,600			1,257,813			1,157,354			1,024,206
Mortgage loans held for sale		12,614			16,266			9,754			27,788			28,069
Assets held in trading accounts		49			50			55			41			2,969
Other assets held for sale		182,378			–			–			–			–
Loans:
Legacy loans		5,211,312			5,000,572			4,632,905			4,327,207			3,943,089
Allowance for loan losses		(42,717	)		(41,379	)		(37,865	)		(36,286	)		(34,094	)
Loans acquired, net of discount and allowance		1,092,039			1,224,739			1,144,291			1,305,683			1,458,198
Net loans		6,260,634			6,183,932			5,739,331			5,596,604			5,367,193
Premises and equipment		224,376			230,641			221,880			199,359			192,523
Premises held for sale		–			–			4,611			6,052			6,732
Foreclosed assets and other real estate owned		31,477			26,012			26,421			26,895			30,396
Interest receivable		30,749			27,337			26,089			27,788			27,390
Bank owned life insurance		148,984			148,134			139,439			138,620			138,298
Goodwill		375,731			379,437			350,035			348,505			348,769
Other intangible assets		55,501			58,528			51,408			52,959			54,268
Other assets		53,075			52,697			58,782			65,773			50,669
Total assets	$	9,535,370		$	9,068,308		$	8,626,638		$	8,400,056		$	8,226,992

LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Non-interest bearing transaction accounts	$	1,669,860		$	1,650,986		$	1,554,675		$	1,491,676		$	1,473,420
Interest bearing transaction accounts and savings deposits		4,344,779			4,141,426			3,987,730			3,956,483			3,815,939
Time deposits less than $100,000		675,186			645,855			653,538			686,780			653,105
Time deposits greater than $100,000		635,765			665,268			592,345			600,280			674,917
Total deposits		7,325,590			7,103,535			6,788,288			6,735,219			6,617,381
Federal funds purchased and securities sold
under agreements to repurchase		121,687			121,419			110,007			115,029			124,289
Other borrowings		522,541			474,962			441,074			273,159			215,276
Subordinated debentures		67,418			67,312			60,503			60,397			60,290
Other liabilities held for sale		176,964			–			–			–			–
Accrued interest and other liabilities		63,971			67,004			55,877			65,141			62,615
Total liabilities		8,278,171			7,834,232			7,455,749			7,248,945			7,079,851

Stockholders’ equity:
Common stock		322			322			314			313			313
Surplus		763,443			761,754			716,564			711,976			710,132
Undivided profits		504,085			483,322			468,309			454,034			434,579
Accumulated other comprehensive income (loss):
Unrealized appreciation (depreciation) on AFS securities		(10,651	)		(11,322	)		(14,298	)		(15,212	)		2,117
Total stockholders’ equity		1,257,199			1,234,076			1,170,889			1,151,111			1,147,141
Total liabilities and stockholders’ equity	$	9,535,370		$	9,068,308		$	8,626,638		$	8,400,056		$	8,226,992

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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)		2017		2017		2017		2016		2016
($ in thousands, except per share data)
INTEREST INCOME
Loans	$	77,457	$	73,549	$	68,728	$	70,887	$	65,078
Interest bearing balances due from banks and federal funds sold		650		214		122		245		263
Investment securities		9,218		9,990		9,451		8,700		7,774
Mortgage loans held for sale		159		145		126		230		299
Assets held in trading accounts		–		–		–		3		4
TOTAL INTEREST INCOME		87,484		83,898		78,427		80,065		73,418
INTEREST EXPENSE
Time deposits		2,110		1,832		1,758		2,023		1,767
Other deposits		3,920		2,984		2,446		2,032		1,965
Federal funds purchased and securities
sold under agreements to repurchase		83		92		75		90		59
Other borrowings		1,875		1,559		1,194		1,034		1,048
Subordinated debentures		677		619		574		558		516
TOTAL INTEREST EXPENSE		8,665		7,086		6,047		5,737		5,355
NET INTEREST INCOME		78,819		76,812		72,380		74,328		68,063
Provision for loan losses		5,462		7,023		4,307		4,332		8,294
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES		73,357		69,789		68,073		69,996		59,769
NON-INTEREST INCOME
Trust income		4,225		4,113		4,212		4,282		3,873
Service charges on deposit accounts		8,907		8,483		8,102		8,666		8,771
Other service charges and fees		2,433		2,515		2,197		4,026		3,261
Mortgage and SBA lending income		3,219		3,961		2,423		4,580		4,339
Investment banking income		680		637		690		472		1,131
Debit and credit card fees		8,864		8,659		7,934		8,027		7,825
Bank owned life insurance income		725		859		818		895		606
Gain on sale of securities, net		3		2,236		63		1,445		315
Other income		7,276		4,281		3,621		3,722		6,755
TOTAL NON-INTEREST INCOME		36,332		35,744		30,060		36,115		36,876
NON-INTEREST EXPENSE
Salaries and employee benefits		35,285		34,205		35,536		33,797		31,784
Occupancy expense, net		4,928		4,868		4,663		4,516		4,690
Furniture and equipment expense		4,840		4,550		4,443		4,387		4,272
Other real estate and foreclosure expense		1,071		517		589		679		1,849
Deposit insurance		1,020		780		680		89		1,136
Merger-related costs		752		6,603		524		2,846		1,524
Other operating expenses		18,263		19,885		19,887		20,411		17,179
TOTAL NON-INTEREST EXPENSE		66,159		71,408		66,322		66,725		62,434
NET INCOME BEFORE INCOME TAXES		43,530		34,125		31,811		39,386		34,211
Provision for income taxes		14,678		11,060		9,691		12,415		10,782
NET INCOME	$	28,852	$	23,065	$	22,120	$	26,971	$	23,429
BASIC EARNINGS PER SHARE	$	0.90	$	0.72	$	0.71	$	0.86	$	0.77
DILUTED EARNINGS PER SHARE	$	0.89	$	0.72	$	0.70	$	0.85	$	0.76

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Simmons First National Corporation													SFNC
Consolidated Risk-Based Capital
For the Quarters Ended	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30
(Unaudited)		2017			2017			2017			2016			2016
($ in thousands)
Tier 1 capital
Stockholders’ equity	$	1,257,199		$	1,234,076		$	1,170,889		$	1,151,111		$	1,147,141
Trust preferred securities, net allowable		67,418			67,312			60,503			60,397			60,290
Disallowed intangible assets, net of deferred tax		(401,419	)		(406,990	)		(361,944	)		(354,028	)		(354,582	)
Unrealized loss (gain) on AFS securities		10,651			11,322			14,298			15,212			(2,117	)
Other		–			–			–			15			–
Total Tier 1 capital		933,849			905,720			883,746			872,707			850,732

Tier 2 capital
Qualifying unrealized gain on AFS equity securities		1			1			2			–			–
Qualifying allowance for loan losses and
reserve for unfunded commitments		46,709			45,369			41,303			40,241			38,050
Total Tier 2 capital		46,710			45,370			41,305			40,241			38,050
Total risk-based capital	$	980,559		$	951,090		$	925,051		$	912,948		$	888,782

Common equity
Tier 1 capital	$	933,849		$	905,720		$	883,746		$	872,707		$	850,732
Less: Trust preferred securities		(67,418	)		(67,312	)		(60,503	)		(60,397	)		(60,290	)
Total common equity	$	866,431		$	838,408		$	823,243		$	812,310		$	790,442

Risk weighted assets	$	7,225,846		$	6,925,727		$	6,425,150		$	6,039,034		$	5,724,052

Adjusted average assets for leverage ratio	$	8,794,433		$	8,424,763		$	8,076,525		$	7,966,681		$	7,355,702

Ratios at end of quarter
Equity to assets		13.18	%		13.61	%		13.57	%		13.70	%		13.94	%
Tangible common equity to tangible assets (1)		9.07	%		9.22	%		9.35	%		9.37	%		9.51	%
Common equity Tier 1 ratio (CET1)		11.99	%		12.11	%		12.81	%		13.45	%		13.81	%
Tier 1 leverage ratio		10.62	%		10.75	%		10.94	%		10.95	%		11.57	%
Tier 1 risk-based capital ratio		12.92	%		13.08	%		13.75	%		14.45	%		14.86	%
Total risk-based capital ratio		13.57	%		13.73	%		14.40	%		15.12	%		15.53	%


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

Page 3

Simmons First National Corporation									SFNC
Consolidated Loans and Investments
For the Quarters Ended	Sep 30		Jun 30		Mar 31		Dec 31		Sep 30
(Unaudited)		2017		2017		2017		2016		2016
($ in thousands)
Legacy Loan Portfolio – End of Period⁽¹⁾
Consumer
Credit cards	$	176,316	$	176,953	$	171,947	$	184,591	$	175,032
Other consumer		317,946		366,136		349,200		303,972		275,947
Total consumer		494,262		543,089		521,147		488,563		450,979
Real Estate
Construction		515,274		457,896		365,051		336,759		304,082
Single-family residential		1,048,403		1,014,412		957,717		904,245		841,958
Other commercial		2,231,223		2,089,707		1,959,677		1,787,075		1,521,132
Total real estate		3,794,900		3,562,015		3,282,445		3,028,079		2,667,172
Commercial
Commercial		688,960		678,932		657,606		639,525		607,738
Agricultural		207,849		191,345		141,125		150,378		203,529
Total commercial		896,809		870,277		798,731		789,903		811,267
Other		25,341		25,191		30,582		20,662		13,671
Total Loans	$	5,211,312	$	5,000,572	$	4,632,905	$	4,327,207	$	3,943,089

(1) Excludes all acquired loans.

Investment Securities – End of Period
Held-to-Maturity
U.S. Government agencies	$	66,928	$	67,912	$	68,895	$	76,875	$	80,849
Mortgage-backed securities		16,972		17,882		18,743		19,773		21,454
State and political subdivisions		320,116		331,249		341,854		362,532		391,495
Other securities		2,017		1,960		1,684		2,916		2,796
Total held-to-maturity		406,033		419,003		431,176		462,096		496,594
Available-for-Sale
U.S. Treasury	$	–	$	19,997	$	–	$	300	$	63,985
U.S. Government agencies		208,220		147,619		142,356		137,771		148,781
Mortgage-backed securities		959,698		878,205		927,277		868,324		699,748
State and political subdivisions		84,822		83,672		130,747		102,943		67,019
FHLB stock		24,415		21,772		19,149		12,235		11,235
Other securities		40,265		39,335		38,285		35,781		33,438
Total available-for-sale		1,317,420		1,190,600		1,257,814		1,157,354		1,024,206
Total investment securities	$	1,723,453	$	1,609,603	$	1,688,990	$	1,619,450	$	1,520,800
Fair value – HTM investment securities	$	412,140	$	425,263	$	435,701	$	465,960	$	508,910

Investment Securities – QTD Average
Taxable securities	$	1,229,172	$	1,244,071	$	1,185,794	$	1,146,703	$	963,150
Tax exempt securities		409,062		467,420		455,481		467,757		466,782
Total investment securities – QTD average	$	1,638,234	$	1,711,491	$	1,641,275	$	1,614,460	$	1,429,932

Page 4

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)	2017			2017			2017			2016			2016
($ in thousands)
LOANS
Legacy loans	$	5,211,312		$	5,000,572		$	4,632,905		$	4,327,207		$	3,943,089
Allowance for loan losses (legacy loans)		(42,717	)		(41,379	)		(37,865	)		(36,286	)		(34,094	)
Legacy loans (net of allowance)		5,168,595			4,959,193			4,595,040			4,290,921			3,908,995
Loans acquired		1,117,424			1,253,539			1,173,667			1,342,099			1,502,051
Credit discount		(24,994	)		(28,409	)		(28,941	)		(35,462	)		(42,899	)
Allowance for loan losses (loans acquired)		(391	)		(391	)		(435	)		(954	)		(954	)
Loans acquired (net of discount and allowance)		1,092,039			1,224,739			1,144,291			1,305,683			1,458,198
Net loans	$	6,260,634		$	6,183,932		$	5,739,331		$	5,596,604		$	5,367,193


Loan Coverage Ratios
Allowance for loan losses to legacy loans		0.82	%		0.83	%		0.82	%		0.84	%		0.86	%

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)		2.27	%		2.30	%		2.50	%		2.71	%		2.92	%

Total allowance and credit coverage (non-GAAP) (1)		1.08	%		1.12	%		1.16	%		1.28	%		1.43	%


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

Page 5

Simmons First National Corporation													SFNC
Consolidated Allowance and Asset Quality
For the Quarters Ended	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30
(Unaudited)		2017			2017			2017			2016			2016
($ in thousands)
Allowance for Loan Losses (Legacy Loans)
Balance, beginning of quarter	$	41,379		$	37,865		$	36,286		$	34,094		$	33,523
Loans charged off
Credit cards		1,017			901			1,044			935			699
Other consumer		819			993			1,174			493			600
Real estate		896			1,712			656			167			6,297
Commercial		2,442			349			292			913			284
Total loans charged off		5,174			3,955			3,166			2,508			7,880

Recoveries of loans previously charged off
Credit cards		275			277			236			213			199
Other consumer		445			636			690			158			106
Real estate		309			216			232			73			55
Commercial		21			32			30			28			12
Total recoveries		1,050			1,161			1,188			472			372
Net loans charged off		4,124			2,794			1,978			2,036			7,508
Provision for loan losses		5,462			6,308			3,557			4,228			8,079
Balance, end of quarter	$	42,717		$	41,379		$	37,865		$	36,286		$	34,094

Non-performing assets^{(1) (2)}
Non-performing loans
Nonaccrual loans		54,439			57,127			52,913			39,104			37,392
Loans past due 90 days or more		232			281			231			299			144
Total non-performing loans		54,671			57,408			53,144			39,403			37,536
Other non-performing assets
Foreclosed assets and other real estate owned ⁽²⁾		31,477			26,012			26,421			26,895			30,396
Other non-performing assets		639			485			352			471			621
Total other non-performing assets		32,116			26,497			26,773			27,366			31,017
Total non-performing assets	$	86,787		$	83,905		$	79,917		$	66,769		$	68,553
Performing TDRs (troubled debt restructurings)	$	9,212		$	8,794		$	10,833		$	10,998		$	13,604

Ratios^{(1) (2)}
Allowance for loan losses to total loans		0.82	%		0.83	%		0.82	%		0.84	%		0.86	%
Allowance for loan losses to non-performing loans		78	%		72	%		71	%		92	%		91	%
Non-performing loans to total loans		1.05	%		1.15	%		1.15	%		0.91	%		0.95	%
Non-performing assets (including performing TDRs)
to total assets		1.01	%		1.02	%		1.05	%		0.93	%		1.00	%
Non-performing assets to total assets		0.91	%		0.93	%		0.93	%		0.79	%		0.83	%
Annualized net charge offs to total loans		0.32	%		0.23	%		0.18	%		0.20	%		0.82	%
Annualized net credit card charge offs to
total credit card loans		1.63	%		1.42	%		1.84	%		1.66	%		1.14	%
Annualized net charge offs to total loans
(excluding credit cards)		0.27	%		0.19	%		0.11	%		0.14	%		0.81	%

(1) Excludes all acquired loans, except for their inclusion in total assets.
(2) Includes acquired foreclosed assets and acquired other real estate owned.

Page 6

Simmons First National Corporation																	SFNC
Consolidated – Average Balance Sheet and Net Interest Income Analysis
For the Quarters Ended
(Unaudited)
	Three Months Ended Sep 2017						Three Months Ended Jun 2017						Three Months Ended Sep 2016
($ 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
Federal funds sold		269,111		650	0.96	%		163,396		214	0.53	%		253,249		263	0.41	%
Investment securities – taxable		1,313,333		6,574	1.99	%		1,374,261		6,874	2.01	%		1,038,437		4,775	1.83	%
Investment securities – non-taxable (FTE)		324,901		4,341	5.30	%		337,230		5,118	6.09	%		391,495		4,926	5.01	%
Mortgage loans held for sale		13,388		159	4.71	%		12,250		145	4.75	%		31,256		299	3.81	%
Assets held in trading accounts		52		–	0.00	%		52		–	0.00	%		5,108		4	0.31	%
Loans, including acquired loans		6,261,507		77,511	4.91	%		5,954,019		73,629	4.96	%		5,105,474		65,120	5.07	%
Total interest earning assets (FTE)		8,182,292		89,235	4.33	%		7,841,208		85,980	4.40	%		6,825,019		75,387	4.39	%
Non-earning assets		993,315						971,252						878,818
Total assets	$	9,175,607					$	8,812,460					$	7,703,837

LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest bearing liabilities:
Interest bearing transaction and
savings accounts	$	4,227,567	$	3,920	0.37	%	$	4,069,179	$	2,984	0.29	%	$	3,645,414	$	1,965	0.21	%
Time deposits		1,330,889		2,110	0.63	%		1,277,336		1,832	0.58	%		1,213,895		1,767	0.58	%
Total interest bearing deposits		5,558,456		6,030	0.43	%		5,346,515		4,816	0.36	%		4,859,309		3,732	0.31	%
Federal funds purchased and securities
sold under agreement to repurchase		115,583		83	0.28	%		115,101		92	0.32	%		105,576		59	0.22	%
Other borrowings		502,972		1,875	1.48	%		434,584		1,559	1.44	%		192,453		1,048	2.17	%
Subordinated debentures		67,367		677	3.99	%		64,019		619	3.88	%		60,238		516	3.41	%
Total interest bearing liabilities		6,244,378		8,665	0.55	%		5,960,219		7,086	0.48	%		5,217,576		5,355	0.41	%
Non-interest bearing liabilities:
Non-interest bearing deposits		1,613,248						1,597,550						1,322,818
Other liabilities		62,287						45,348						49,191
Total liabilities		7,919,913						7,603,117						6,589,585
Stockholders’ equity		1,255,694						1,209,343						1,114,252
Total liabilities and stockholders’ equity	$	9,175,607					$	8,812,460					$	7,703,837
Net interest income (FTE)			$	80,570					$	78,894					$	70,032
Net interest spread (FTE)					3.78	%					3.92	%					3.98	%
Net interest margin (FTE) – quarter-to-date					3.91	%					4.04	%					4.08	%

Net interest margin (FTE) – year-to-date					3.99	%					4.04	%					4.21	%

Core net interest margin (FTE) – quarter-to-date (1)					3.77	%					3.79	%					3.79	%
Core loan yield (FTE) – quarter-to-date (1)					4.72	%					4.63	%					4.69	%

Core net interest margin (FTE) – year-to-date (1)					3.79	%					3.79	%					3.86	%
Core loan yield (FTE) – year-to-date (1)					4.65	%					4.61	%					4.75	%

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

Page 7

Simmons First National Corporation													SFNC
Consolidated – Selected Financial Data
For the Quarters Ended	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30
(Unaudited)		2017			2017			2017			2016			2016
($ in thousands, except share data)
QUARTER-TO-DATE
Financial Highlights – GAAP
Net Income	$	28,852		$	23,065		$	22,120		$	26,971		$	23,429
Diluted earnings per share		0.89			0.72			0.70			0.85			0.76
Return on average assets		1.25	%		1.05	%		1.07	%		1.29	%		1.21	%
Return on average common equity		9.12	%		7.65	%		7.69	%		9.27	%		8.36	%
Return on tangible common equity		14.47	%		12.13	%		12.22	%		14.71	%		13.26	%
Net interest margin (FTE)		3.91	%		4.04	%		4.04	%		4.12	%		4.08	%
FTE adjustment		1,751			2,082			1,965			1,994			1,969
Amortization of intangibles		1,724			1,553			1,550			1,533			1,503
Amortization of intangibles, net of taxes		1,048			944			942			932			913
Average diluted shares outstanding		32,423,796			32,025,780			31,612,900			31,592,713			30,843,714
Cash dividends declared per common share		0.25			0.25			0.25			0.24			0.24
Financial Highlights – Core (non-GAAP)
Core earnings (excludes non-core items) (1)	$	27,746		$	26,753		$	22,532		$	28,751		$	24,382
Diluted core earnings per share (1)		0.86			0.84			0.71			0.91			0.79
Core net interest margin (FTE) (2)		3.77	%		3.79	%		3.80	%		3.76	%		3.79	%
Accretable yield on acquired loans		2,890			4,792			4,427			6,552			4,928
Efficiency ratio (1)		55.06	%		56.04	%		60.92	%		55.47	%		53.94	%
Core return on average assets (1)		1.20	%		1.22	%		1.09	%		1.38	%		1.26	%
Core return on average common equity (1)		8.77	%		8.87	%		7.83	%		9.89	%		8.71	%
Core return on tangible common equity (1)		13.93	%		13.99	%		12.44	%		15.65	%		13.78	%
YEAR-TO-DATE
Financial Highlights – GAAP
Net Income	$	74,037		$	45,185		$	22,120		$	96,790		$	69,819
Diluted earnings per share		2.31			1.42			0.70			3.13			2.28
Return on average assets		1.12	%		1.06	%		1.07	%		1.25	%		1.23	%
Return on average common equity		8.18	%		7.67	%		7.69	%		8.75	%		8.57	%
Return on tangible common equity		12.97	%		12.17	%		12.22	%		13.92	%		13.68	%
Net interest margin (FTE)		3.99	%		4.04	%		4.04	%		4.19	%		4.21	%
FTE adjustment		5,798			4,047			1,965			7,722			5,728
Amortization of intangibles		4,827			3,103			1,550			5,942			4,409
Amortization of intangibles, net of taxes		2,934			1,886			942			3,611			2,679
Average diluted shares outstanding		32,007,135			31,794,363			31,612,900			30,963,546			30,656,882
Cash dividends declared per common share		0.75			0.50			0.25			0.96			0.72
Financial Highlights – Core (non-GAAP)
Core earnings (excludes non-core items) (1)	$	77,031		$	49,285		$	22,532		$	101,409		$	72,658
Diluted core earnings per share (1)		2.41			1.55			0.71			3.28			2.37
Core net interest margin (FTE) (2)		3.79	%		3.79	%		3.80	%		3.83	%		3.86	%
Accretable yield on acquired loans		12,109			9,219			4,427			24,257			17,705
Efficiency ratio (1)		57.25	%		58.40	%		60.92	%		56.32	%		56.62	%
Core return on average assets (1)		1.17	%		1.15	%		1.09	%		1.31	%		1.28	%
Core return on average common equity (1)		8.51	%		8.37	%		7.83	%		9.17	%		8.91	%
Core return on tangible common equity (1)		13.48	%		13.23	%		12.44	%		14.56	%		14.22	%
END OF PERIOD
Book value per share	$	39.03		$	38.31		$	37.30		$	36.80		$	36.69
Tangible book value per share		25.64			24.71			24.51			23.97			23.80
Shares outstanding		32,212,242			32,212,832			31,388,357			31,277,723			31,267,614
Full-time equivalent employees		1,942			1,919			1,876			1,875			1,985
Total number of ATM’s		192			197			187			186			186
Total number of financial centers		156			161			151			150			150

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

Page 8

Simmons First National Corporation													SFNC
Consolidated – Reconciliation of Core Earnings (non-GAAP)
For the Quarters Ended	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30
(Unaudited)		2017			2017			2017			2016			2016
($ in thousands, except per share data)
QUARTER-TO-DATE
Net Income	$	28,852		$	23,065		$	22,120		$	26,971		$	23,429
Non-core items
Gain on sale of P&C insurance business		(3,708	)		–			–			–			–
Merger-related costs		752			6,603			524			2,846			1,524
Branch right-sizing		435			(536	)		154			83			43
Tax effect ⁽¹⁾		1,415			(2,379	)		(266	)		(1,149	)		(614	)
Net non-core items		(1,106	)		3,688			412			1,780			953
Core earnings (non-GAAP)	$	27,746		$	26,753		$	22,532		$	28,751		$	24,382

Diluted earnings per share	$	0.89		$	0.72		$	0.70		$	0.85		$	0.76
Non-core items
Gain on sale of P&C insurance business		(0.11	)		–			–			–			–
Merger-related costs		0.02			0.21			0.02			0.09			0.05
Branch right-sizing		0.01			(0.02	)		–			–			–
Tax effect ⁽¹⁾		0.05			(0.07	)		(0.01	)		(0.03	)		(0.02	)
Net non-core items		(0.03	)		0.12			0.01			0.06			0.03
Core earnings (non-GAAP)	$	0.86		$	0.84		$	0.71		$	0.91		$	0.79

YEAR-TO-DATE
Net Income	$	74,037		$	45,185		$	22,120		$	96,790		$	69,819
Non-core items
Gain from early retirement of trust preferred securities		–			–			–			(594	)		(594	)
Gain on sale of P&C insurance business		(3,708	)		–			–			–			–
Merger-related costs		7,879			7,127			524			4,835			1,989
Branch right-sizing		53			(382	)		154			3,359			3,276
Tax effect ⁽¹⁾		(1,230	)		(2,645	)		(266	)		(2,981	)		(1,832	)
Net non-core items		2,994			4,100			412			4,619			2,839
Core earnings (non-GAAP)	$	77,031		$	49,285		$	22,532		$	101,409		$	72,658

Diluted earnings per share	$	2.31		$	1.42		$	0.70		$	3.13		$	2.28
Non-core items
Gain from early retirement of trust preferred securities		–			–			–			(0.02	)		(0.02	)
Gain on sale of P&C insurance business		(0.11	)
Merger-related costs		0.25			0.22			0.02			0.16			0.06
Branch right-sizing		–			(0.01	)		–			0.11			0.11
Tax effect ⁽¹⁾		(0.04	)		(0.08	)		(0.01	)		(0.10	)		(0.06	)
Net non-core items		0.10			0.13			0.01			0.15			0.09
Core earnings (non-GAAP)	$	2.41		$	1.55		$	0.71		$	3.28		$	2.37

(1) Effective tax rate of 39.225%, adjusted for non-deductible merger-related costs and deferred tax items on P&C insurance sale.

Page 9

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
		2017			2017			2017			2016			2016
($ in thousands, except per share data)

Calculation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets

Total common stockholders’ equity	$	1,257,199		$	1,234,076		$	1,170,889		$	1,151,111		$	1,147,141
Intangible assets:
Goodwill		(375,731	)		(379,437	)		(350,035	)		(348,505	)		(348,769	)
Other intangible assets		(55,501	)		(58,528	)		(51,408	)		(52,959	)		(54,268	)
Total intangibles		(431,232	)		(437,965	)		(401,443	)		(401,464	)		(403,037	)
Tangible common stockholders’ equity	$	825,967		$	796,111		$	769,446		$	749,647		$	744,104

Total assets	$	9,535,370		$	9,068,308		$	8,626,638		$	8,400,056		$	8,226,992
Intangible assets:
Goodwill		(375,731	)		(379,437	)		(350,035	)		(348,505	)		(348,769	)
Other intangible assets		(55,501	)		(58,528	)		(51,408	)		(52,959	)		(54,268	)
Total intangibles		(431,232	)		(437,965	)		(401,443	)		(401,464	)		(403,037	)
Tangible assets	$	9,104,138		$	8,630,343		$	8,225,195		$	7,998,592		$	7,823,955

Ratio of equity to assets		13.18	%		13.61	%		13.57	%		13.70	%		13.94	%
Ratio of tangible common equity to tangible assets		9.07	%		9.22	%		9.35	%		9.37	%		9.51	%

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	$	24,994		$	28,409		$	28,941		$	35,462		$	42,899
Allowance for loan losses on acquired loans		391			391			435			954			954
Total credit discount and ALLL on acquired loans	$	25,385		$	28,800		$	29,376		$	36,416		$	43,853
Total loans acquired	$	1,117,424		$	1,253,539		$	1,173,667		$	1,342,099		$	1,502,051
Discount and ALLL on acquired loans to acquired loans		2.27	%		2.30	%		2.50	%		2.71	%		2.92	%

Calculation of Total Allowance and Credit Coverage

Allowance for loan losses	$	42,717		$	41,379		$	37,865		$	36,286		$	34,094
Total credit discount and ALLL on acquired loans		25,385			28,800			29,376			36,416			43,853
Total allowance and credit discount	$	68,102		$	70,179		$	67,241		$	72,702		$	77,947
Total loans	$	6,328,736		$	6,254,155		$	5,806,572		$	5,669,306		$	5,445,140
Total allowance and credit coverage		1.08	%		1.12	%		1.16	%		1.28	%		1.43	%

Calculation of Tangible Book Value per Share

Total common stockholders’ equity	$	1,257,199		$	1,234,076		$	1,170,889		$	1,151,111		$	1,147,141
Intangible assets:
Goodwill		(375,731	)		(379,437	)		(350,035	)		(348,505	)		(348,769	)
Other intangible assets		(55,501	)		(58,528	)		(51,408	)		(52,959	)		(54,268	)
Total intangibles		(431,232	)		(437,965	)		(401,443	)		(401,464	)		(403,037	)
Tangible common stockholders’ equity	$	825,967		$	796,111		$	769,446		$	749,647		$	744,104
Shares of common stock outstanding		32,212,242			32,212,832			31,388,357			31,277,723			31,267,614
Book value per common share	$	39.03		$	38.31		$	37.30		$	36.80		$	36.69
Tangible book value per common share	$	25.64		$	24.71		$	24.51		$	23.97		$	23.80

Page 10

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
		2017			2017			2017			2016			2016
($ in thousands)
Calculation of Core Return on Average Assets

Net income	$	28,852		$	23,065		$	22,120		$	26,971		$	23,429
Net non-core items, net of taxes, adjustment		(1,106	)		3,688			412			1,780			953
Core earnings	$	27,746		$	26,753		$	22,532		$	28,751		$	24,382

Average total assets	$	9,175,607		$	8,812,460		$	8,414,470		$	8,308,458		$	7,703,837

Return on average assets		1.25	%		1.05	%		1.07	%		1.29	%		1.21	%
Core return on average assets		1.20	%		1.22	%		1.09	%		1.38	%		1.26	%

Calculation of Return on Tangible Common Equity

Net income	$	28,852		$	23,065		$	22,120		$	26,971		$	23,429
Amortization of intangibles, net of taxes		1,048			944			942			932			913
Total income available to common stockholders	$	29,900		$	24,009		$	23,062		$	27,903		$	24,342

Net non-core items, net of taxes		(1,106	)		3,688			412			1,780			953
Core earnings		27,746			26,753			22,532			28,751			24,382
Amortization of intangibles, net of taxes		1,048			944			942			932			913
Total core income available to common stockholders	$	28,794		$	27,697		$	23,474		$	29,683		$	25,295

Average common stockholders’ equity	$	1,255,694		$	1,209,343		$	1,166,473		$	1,156,933		$	1,114,252
Average intangible assets:
Goodwill		(378,387	)		(362,925	)		(348,837	)		(348,597	)		(332,893	)
Other intangibles		(57,232	)		(52,419	)		(52,169	)		(53,646	)		(50,893	)
Total average intangibles		(435,619	)		(415,344	)		(401,006	)		(402,243	)		(383,786	)
Average tangible common stockholders’ equity	$	820,075		$	793,999		$	765,467		$	754,690		$	730,466

Return on average common equity		9.12	%		7.65	%		7.69	%		9.27	%		8.36	%
Return on tangible common equity		14.47	%		12.13	%		12.22	%		14.71	%		13.26	%
Core return on average common equity		8.77	%		8.87	%		7.83	%		9.89	%		8.71	%
Core return on tangible common equity		13.93	%		13.99	%		12.44	%		15.65	%		13.78	%

Calculation of Efficiency Ratio *(1)*

Non-interest expense	$	66,159		$	71,408		$	66,322		$	66,725		$	62,434
Non-core non-interest expense adjustment		(862	)		(6,700	)		(635	)		(2,995	)		(1,742	)
Other real estate and foreclosure expense adjustment		(1,071	)		(517	)		(550	)		(669	)		(1,787	)
Amortization of intangibles adjustment		(1,724	)		(1,553	)		(1,550	)		(1,533	)		(1,503	)
Efficiency ratio numerator	$	62,502		$	62,638		$	63,587		$	61,528		$	57,402

Net-interest income	$	78,819		$	76,812		$	72,380		$	74,328		$	68,063
Non-interest income		36,332			35,744			30,060			36,115			36,876
Non-core non-interest income adjustment		(3,383	)		(632	)		43			(66	)		(175	)
Fully tax-equivalent adjustment		1,751			2,082			1,965			1,994			1,969
(Gain) loss on sale of securities		(3	)		(2,236	)		(63	)		(1,445	)		(315	)
Efficiency ratio denominator	$	113,516		$	111,770		$	104,385		$	110,926		$	106,418

Efficiency ratio (1)		55.06	%		56.04	%		60.92	%		55.47	%		53.94	%

Calculation of Core Net Interest Margin

Net interest income	$	78,819		$	76,812		$	72,380		$	74,328		$	68,063
Fully tax-equivalent adjustment		1,751			2,082			1,965			1,994			1,969
Fully tax-equivalent net interest income		80,570			78,894			74,345			76,322			70,032

Total accretable yield		(2,890	)		(4,792	)		(4,427	)		(6,552	)		(4,928	)
Core net interest income	$	77,680		$	74,102		$	69,918		$	69,770		$	65,104
Average earning assets	$	8,182,292		$	7,841,208		$	7,469,709		$	7,373,236		$	6,825,019

Net interest margin		3.95	%		4.04	%		4.04	%		4.12	%		4.08	%
Core net interest margin		3.81	%		3.79	%		3.80	%		3.76	%		3.79	%

Calculation of Core Loan Yield

Loan interest income	$	77,457		$	73,549		$	68,728		$	70,887		$	65,078
Total accretable yield		(2,890	)		(4,792	)		(4,427	)		(6,552	)		(4,928	)
Core loan interest income	$	74,567		$	68,757		$	64,301		$	64,335		$	60,150
Average loan balance	$	6,261,507		$	5,954,019		$	5,685,585		$	5,484,918		$	5,105,474

Core loan yield		4.78	%		4.63	%		4.59	%		4.67	%		4.69	%

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

Page 11

Simmons First National Corporation													SFNC
Reconciliation Of Non-GAAP Financial Measures – Year-to-Date
For the Quarters Ended
(Unaudited)	Sept 30			Jun 30			Mar 31			Dec 31			Sept 30
		2017			2017			2017			2016			2016
($ in thousands)
Calculation of Core Return on Average Assets

Net income	$	74,037		$	45,185		$	22,120		$	96,790		$	69,819
Net non-core items, net of taxes, adjustment		2,994			4,100			412			4,619			2,839
Core earnings	$	77,031		$	49,285		$	22,532		$	101,409		$	72,658

Average total assets	$	8,800,675		$	8,613,240		$	8,414,470		$	7,760,233		$	7,575,053

Return on average assets		1.12	%		1.06	%		1.07	%		1.25	%		1.23	%
Core return on average assets		1.17	%		1.15	%		1.09	%		1.31	%		1.28	%

Calculation of Return on Tangible Common Equity

Net income	$	74,037		$	45,185		$	22,120		$	96,790		$	69,819
Amortization of intangibles, net of taxes		2,934			1,886			942			3,611			2,679
Total income available to common stockholders	$	76,971		$	47,071		$	23,062		$	100,401		$	72,498

Net non-core items, net of taxes		2,994			4,100			412			4,619			2,839
Core earnings		77,031			49,285			22,532			101,409			72,658
Amortization of intangibles, net of taxes		2,934			1,886			942			3,611			2,679
Total core income available to common stockholders	$	79,965		$	51,171		$	23,474		$	105,020		$	75,337

Average common stockholders’ equity	$	1,210,487		$	1,187,906		$	1,166,473		$	1,105,775		$	1,088,723
Average intangible assets:
Goodwill		(363,383	)		(355,881	)		(348,837	)		(332,974	)		(329,422	)
Other intangibles		(53,941	)		(52,294	)		(52,169	)		(51,710	)		(51,478	)
Total average intangibles		(417,324	)		(408,175	)		(401,006	)		(384,684	)		(380,900	)
Average tangible common stockholders’ equity	$	793,163		$	779,731		$	765,467		$	721,091		$	707,823

Return on average common equity		8.18	%		7.67	%		7.69	%		8.75	%		8.57	%
Return on tangible common equity		12.97	%		12.17	%		12.22	%		13.92	%		13.68	%
Core return on average common equity		8.51	%		8.37	%		7.83	%		9.17	%		8.91	%
Core return on tangible common equity		13.48	%		13.23	%		12.44	%		14.56	%		14.22	%

Calculation of Efficiency Ratio *(1)*

Non-interest expense	$	203,889		$	137,730		$	66,322		$	255,085		$	188,360
Non-core non-interest expense adjustment		(8,197	)		(7,335	)		(635	)		(8,435	)		(5,440	)
Other real estate and foreclosure expense adjustment		(2,177	)		(1,067	)		(550	)		(4,389	)		(3,720	)
Amortization of intangibles adjustment		(4,827	)		(3,103	)		(1,550	)		(5,942	)		(4,409	)
Efficiency ratio numerator	$	188,688		$	126,225		$	63,587		$	236,319		$	174,791

Net-interest income	$	228,011		$	149,192		$	72,380		$	279,206		$	204,878
Non-interest income		102,136			65,804			30,060			139,382			103,267
Non-core non-interest income adjustment		(3,972	)		(589	)		43			(835	)		(769	)
Fully tax-equivalent adjustment		5,798			4,047			1,965			7,722			5,728
(Gain) loss on sale of securities		(2,302	)		(2,299	)		(63	)		(5,848	)		(4,403	)
Efficiency ratio denominator	$	329,671		$	216,155		$	104,385		$	419,627		$	308,701

Efficiency ratio (1)		57.25	%		58.40	%		60.92	%		56.32	%		56.62	%

Calculation of Core Net Interest Margin

Net interest income	$	228,011		$	149,192		$	72,380		$	279,206		$	204,878
Fully tax-equivalent adjustment		5,798			4,047			1,965			7,722			5,728
Fully tax-equivalent net interest income		233,809			153,239			74,345			286,928			210,606

Total accretable yield		(12,109	)		(9,219	)		(4,427	)		(24,257	)		(17,705	)
Core net interest income	$	221,700		$	144,020		$	69,918		$	262,671		$	192,901
Average earning assets	$	7,829,548		$	7,653,177		$	7,469,709		$	6,855,322		$	6,682,683

Net interest margin		3.99	%		4.04	%		4.04	%		4.19	%		4.21	%
Core net interest margin		3.79	%		3.79	%		3.80	%		3.83	%		3.86	%

Calculation of Core Loan Yield

Loan interest income	$	219,734		$	142,277		$	68,728		$	265,652		$	194,765
Total accretable yield		(12,109	)		(9,219	)		(4,427	)		(24,257	)		(17,705	)
Core loan interest income	$	207,625		$	133,058		$	64,301		$	241,395		$	177,060
Average loan balance	$	5,967,036		$	5,819,803		$	5,685,585		$	5,109,492		$	4,984,349

Core loan yield		4.65	%		4.61	%		4.59	%		4.72	%		4.75	%

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

Page 12