SIMMONS FIRST NATIONAL CORP - 10-Q Quarterly Report

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

Form 10-Q

QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934


For Quarter Ended March 31, 2005	Commission File Number 06253

SIMMONS FIRST NATIONAL CORPORATION

(Exact name of registrant as specified in its charter)


Arkansas	71-0407808

(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)


501 Main Street Pine Bluff, Arkansas	71601

(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code	870-541-1000

Not Applicable

Former name, former address and former fiscal year, if changed since last report

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period) and (2) has been subject to such filing requirements for the past 90 days.

YES x NO o

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

YES x NO o

The number of shares outstanding of the registrant’s common stock as of April 26, 2005 was 14,374,334.

SIMMONS FIRST NATIONAL CORPORATION

INDEX


		Page No.
Part I: Financial Information

Item 1.	Consolidated Balance Sheets — March 31, 2005 and December 31, 2004	3-4

	Consolidated Statements of Income — Three months ended March 31, 2005 and 2004	5

	Consolidated Statements of Cash Flows — Three months ended March 31, 2005 and 2004	6

	Consolidated Statements of Stockholders ’ Equity — Three months ended March 31, 2005 and 2004	7

	Condensed Notes to Consolidated Financial Statements	8-17

	Report of Independent Registered Public Accounting Firm	18

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19-39

Item 3.	Quantitative and Qualitative Disclosure About Market Risk	40-42

Item 4.	Controls and Procedures	43

Part II: Other Information

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	44-45

Item 6.	Exhibits	46-47

Signatures		48

Part I: Financial Information

Item 1: Consolidated Financial Statements and Condensed Notes to Financial Statements

Simmons First National Corporation
Consolidated Balance Sheets
March 31, 2005 and December 31, 2004

ASSETS

(In thousands, except share data)	March 31, 2005			December 31, 2004

	(Unaudited)
Cash and non-interest bearing balances due from banks	$	67,615		$	72,032
Interest bearing balances due from banks		22,030			36,249
Federal funds sold		56,580			45,450

Cash and cash equivalents		146,225			153,731

Investment securities		558,984			542,058
Mortgage loans held for sale		11,641			9,246
Assets held in trading accounts		4,718			4,916
Loans		1,586,483			1,571,376
Allowance for loan losses		(26,422	)		(26,508	)

Net loans		1,560,061			1,544,868

Premises and equipment		57,685			57,211
Foreclosed assets held for sale, net		1,340			1,839
Interest receivable		15,276			14,248
Goodwill		60,454			60,454
Core deposit premiums		5,621			5,829
Other assets		20,505			19,544


TOTAL ASSETS	$	2,442,510		$	2,413,944

See Condensed Notes to Consolidated Financial Statements.

Simmons First National Corporation
Consolidated Balance Sheets
March 31, 2005 and December 31, 2004

LIABILITIES AND STOCKHOLDERS’ EQUITY

(In thousands, except share data)	March 31, 2005			December 31, 2004

	(Unaudited)
LIABILITIES
Non-interest bearing transaction accounts	$	296,347		$	293,137
Interest bearing transaction accounts and savings deposits		773,365			769,296
Time deposits		938,649			896,762

Total deposits		2,008,361			1,959,195
Federal funds purchased and securities sold under agreements to repurchase		89,991			104,785
Short-term debt		907			2,373
Long-term debt		92,513			94,663
Accrued interest and other liabilities		18,466			14,706

Total liabilities		2,210,238			2,175,722

STOCKHOLDERS’ EQUITY
Capital stock
Class A, common, par value $0.01 a share, authorized 30,000,000 shares, 14,381,434 issued and outstanding at 2005 and 14,621,707 at 2004		144			146
Surplus		56,315			62,826
Undivided profits		180,075			176,374
Accumulated other comprehensive loss
Unrealized depreciation on available-for-sale securities, net of income tax credits of $2,555 at 2005 and income tax credits of $673 at 2004		(4,262	)		(1,124	)

Total stockholders’ equity		232,272			238,222


TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,442,510		$	2,413,944

See Condensed Notes to Consolidated Financial Statements.

Simmons First National Corporation
Consolidated Statements of Income
Three Months Ended March 31, 2005 and 2004

	Three Months Ended March 31,
(In thousands, except per share data)	2005		2004

	(Unaudited)
INTEREST INCOME
Loans	$	25,413	$	22,732
Federal funds sold		327		195
Investment securities		4,574		4,114
Mortgage loans held for sale		119		112
Assets held in trading accounts		25		3
Interest bearing balances due from banks		196		118

TOTAL INTEREST INCOME		30,654		27,274


INTEREST EXPENSE
Deposits		6,913		5,466
Federal funds purchased and securities sold under agreements to repurchase		545		252
Short-term debt		14		16
Long-term debt		1,089		1,425

TOTAL INTEREST EXPENSE		8,561		7,159


NET INTEREST INCOME		22,093		20,115
Provision for loan losses		2,221		2,144

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		19,872		17,971


NON-INTEREST INCOME
Trust income		1,385		1,400
Service charges on deposit accounts		3,414		3,227
Other service charges and fees		584		545
Income on sale of mortgage loans, net of commissions		682		751
Income on investment banking, net of commissions		58		215
Credit card fees		2,340		2,310
Premiums on sale of student loans		634		607
Other income		974		592
Gain (loss) on sale of securities, net		—		—

TOTAL NON-INTEREST INCOME		10,071		9,647


NON-INTEREST EXPENSE
Salaries and employee benefits		12,831		11,805
Occupancy expense, net		1,436		1,318
Furniture and equipment expense		1,449		1,358
Loss on foreclosed assets		48		44
Deposit insurance		73		69
Other operating expenses		5,578		5,098

TOTAL NON-INTEREST EXPENSE		21,415		19,692

INCOME BEFORE INCOME TAXES		8,528		7,926
Provision for income taxes		2,668		2,515

NET INCOME	$	5,860	$	5,411

BASIC EARNINGS PER SHARE	$	0.41	$	0.38

DILUTED EARNINGS PER SHARE	$	0.40	$	0.37

See Condensed Notes to Consolidated Financial Statements.

Simmons First National Corporation
Consolidated Statements of Cash Flows
Three Months Ended March 31, 2005 and 2004

(In thousands)	March 31, 2005			March 31, 2004

OPERATING ACTIVITIES	(Unaudited)

Net income	$	5,860		$	5,411
Items not requiring (providing) cash
Depreciation and amortization		1,344			1,295
Provision for loan losses		2,221			2,144
Net amortization of investment securities		344			38
Deferred income taxes		(112	)		(362	)
Changes in
Interest receivable		(1,028	)		(210	)
Mortgage loans held for sale		(2,395	)		(1,116	)
Assets held in trading accounts		198			(115	)
Other assets		(737	)		2,979
Accrued interest and other liabilities		868			13,602
Income taxes payable		2,780			1,504

Net cash provided by operating activities		9,343			25,170


INVESTING ACTIVITIES
Net origination of loans		(19,774	)		(17,972	)
Purchase of Alliance Bancorporation, Inc., net		—			(7,818	)
Purchase of premises and equipment, net		(1,610	)		(1,351	)
Proceeds from sale of foreclosed assets		2,859			857
Proceeds from maturities of available-for-sale securities		15,382			22,902
Purchases of available-for-sale securities		(39,335	)		(11,741	)
Proceeds from maturities of held-to-maturity securities		13,887			92,558
Purchases of held-to-maturity securities		(10,342	)		(88,630	)

Net cash used in investing activities		(38,933	)		(11,195	)


FINANCING ACTIVITIES
Net increase in deposits		49,166			10,282
Net repayment of short-term debt		(1,466	)		(576	)
Dividends paid		(2,159	)		(1,977	)
Proceeds from issuance of long-term debt		562			2,600
Repayment of long-term debt		(2,712	)		(1,040	)
Net decrease in federal funds purchased and securities sold under agreements to repurchase		(14,794	)		(20,417	)
Issuance (repurchase) of common stock, net		(6,513	)		179

Net cash provided by (used in) financing activities		22,084			(10,949	)


INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(7,506	)		3,026
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR		153,731			201,615

CASH AND CASH EQUIVALENTS, END OF PERIOD	$	146,225		$	204,641

See Condensed Notes to Consolidated Financial Statements.

Simmons First National Corporation
Consolidated Statements of Stockholders’ Equity
Three Months Ended March 31, 2005 and 2004

(In thousands, except share data)	Common Stock		Surplus		Accumulated Other Comprehensive Income (Loss)			Undivided Profits		Total


Balance, December 31, 2003	$	14,102	$	35,988	$	(286	)	$	160,191	$	209,995
Comprehensive income
Net income		—		—		—			5,411		5,411
Change in unrealized depreciation on available-for-sale securities, net of income taxes of $1,033