SIMMONS FIRST NATIONAL CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - FORM 8-K - SIMMONS FIRST NATIONAL CORP	f8k_071714.htm

EXHIBIT 99.1

FOR IMMEDIATE RELEASE:

July 17, 2014

SIMMONS FIRST ANNOUNCES 43% INCREASE IN CORE EARNINGS

Pine Bluff, AR – Simmons First National Corporation (NASDAQ-GS: SFNC) today announced record core earnings of $9.2 million for the second quarter of 2014, an increase of $2.7 million, or 42.8%, compared to the same quarter last year. Diluted core earnings per share were a record $0.56, an increase of $0.17, or 43.6%. Core earnings exclude $755,000 in net after-tax earnings. Including the non-core items, net income was $9.9 million and diluted earnings per share were $0.60.

Year-to-date core earnings were $16.6 million, an increase of $4.1 million, or 33.2%, compared to the same period of 2013. Year-to-date diluted core earnings per share were $1.02, an increase of $0.26, or 34.2%. Year-to-date net income was $14.2 million, or $0.87 diluted earnings per share.

“The second quarter was a landmark quarter for Simmons. We announced two acquisitions totaling approximately $3 billion in assets and reported record core earnings and record core earnings per share for the quarter,” commented George A. Makris, Jr., Chairman and CEO.

Loans

Total loans, including those acquired, were $2.4 billion at June 30, 2014, an increase of $512 million, or 27.3%, compared to the same period in 2013. Acquired loans increased by $293 million, net of discounts, while legacy loans (all loans excluding acquired loans) grew $218 million, or 13.2%. “We are encouraged by the double digit legacy loan growth during the second quarter. We continue to achieve nice loan growth in virtually every market we serve,” added Makris.

Deposits

At June 30, 2014, total deposits were $3.6 billion, an increase of $829 million, or 29.5%, compared to the same period in 2013. Total non-time deposits totaled $2.6 billion, or 72% of total deposits.

Net Interest Income

The Company’s net interest income for the second quarter of 2014 was $40.4 million, an increase of $10.8 million, or 36.7%, from the same period of 2013. This increase was driven by growth in the legacy loan portfolio and earning assets acquired through the Metropolitan transaction, offset by a decrease in accretable yield on acquired loans. Net interest margin was 4.34% for the quarter ended June 30, 2014, a 38 basis point increase from the same quarter of 2013. Included in interest income for both periods was the additional yield accretion recognized as a result of updated estimates of the cash flows of the loan pools acquired in the Company’s FDIC-assisted transactions. Each quarter, the Company estimates the cash flows expected to be collected from the acquired loan pools, and adjustments may or may not be required. The cash flows estimate has increased based on payment histories and reduced loss expectations of the loan pools. This resulted in increased interest income that is spread on a level-yield basis over the remaining expected lives of the loan pools. The increases in expected cash flows also reduce the amount of expected reimbursements under the loss sharing agreements with the FDIC, which are recorded as indemnification assets.

The impact of the adjustments on the Company’s financial results for the current reporting period is shown below:

	Three Months Ended						Six Months Ended
(In thousands)	June 30						June 30
	2014			2013			2014			2013
Impact on net interest income	$	5,856		$	3,150		$	13,247		$	6,097
Non-interest income		(6,410	)		(3,062	)		(13,850	)		(5,890	)

Net impact to pre-tax income	$	(554	)	$	88		$	(603	)	$	207

Because these adjustments will be recognized over the remaining lives of the loan pools and the remainder of the loss sharing agreements, respectively, they will impact future periods as well. The current estimate of the remaining accretable yield adjustment that will positively impact interest income is $25.1 million and the remaining adjustment to the indemnification assets that will reduce non-interest income is $18.6 million. Of the remaining adjustments, we expect to recognize $9.6 million of interest income and a $10.6 million reduction of non-interest income, for a net reduction to pre-tax income of approximately $1.0 million during the remainder of 2014. The accretable yield adjustments recorded in future periods will change as the Company continues to evaluate expected cash flows from the acquired loan pools.

Non-Interest Income

Non-interest income for the second quarter was $15.4 million, an increase of $4.1 million compared to the second quarter of 2013. Included in non-interest income were $2.3 million in gains from the sale of branches that were closed as part the integration of Metropolitan and a $1.0 million dollar gain from the sale of the Company’s merchant services business. Offsetting these gains was a $3.3 million incremental reduction in non-interest income from the adjustment to the indemnification assets. Normalized for the nonrecurring gains and the indemnification asset adjustments, non-interest income for the second quarter increased by $3.9 million, primarily from additional service charge and fee income from the Metropolitan acquisition.

Non-Interest Expense

Non-interest expense for the second quarter of 2014 was $39.8 million, an increase of $9.5 million compared to the same period in 2013. Merger related costs for the quarter exceeded those of the same period last year by $1.8 million. Also included in the quarter were $300 thousand of expenses associated with the maintenance of closed branches and $414 thousand of charter consolidation costs from the systems conversion of the three subsidiary banks that were merged into Simmons First National Bank in May. Excluding the nonrecurring expenses, non-interest expense increased by $7.0 million compared to last year, primarily due to incremental operating expenses from the Metropolitan acquisition.

Asset Quality

Beginning in 2010, the Company has acquired loans and foreclosed real estate (“OREO”) through FDIC-assisted acquisitions. Through the loss share provisions of the purchase and assumption agreements, the FDIC agreed to reimburse the Company for 80% of the losses incurred on the disposition of covered loans and OREO. The acquired loans and OREO and any related FDIC loss share indemnification asset were presented in the Company's financial reports with a carrying value equal to the discounted net present value of expected future proceeds. At June 30, 2014, acquired loans covered by loss share were carried at $122 million, OREO covered by loss share was carried at $17 million and the FDIC loss share indemnification asset was carried at $31 million. Acquired loans and OREO not covered by loss share were carried at $399 million and $37 million, respectively. As a result of using the discounted net present value method of valuing these assets, and due to the significant protection against possible losses provided by the FDIC loss share indemnification, all acquired assets, with the exception of OREO not covered by loss share, are excluded from the computations of the asset quality ratios for the legacy loan portfolio, except for their inclusion in total assets.

“It is important to remember that the acquired non-covered loans are protected by a credit mark and the acquired covered loans are protected by a credit mark and 80% loss coverage by the FDIC,” explained Makris. “At June 30, 2014, the allowance for loan losses was $27.5 million and the loan credit mark was $88.8 million, for a total of $116.3 million of coverage. This equates to a total coverage ratio of 4.7% of gross loans. The ratio of credit mark to acquired loans was 14.6%.” The Company's allowance for loan losses at June 30, 2014, was 1.47% of total loans and 245% of non-performing loans. Non-performing loans as a percent of total loans were 0.60%. Non-performing assets decreased $5.4 million from the previous quarter to $64.7 million. Through the second quarter of 2014, the year-to-date annualized net charge-off ratio, excluding credit cards, was 0.17%, and the year-to-date annualized credit card charge-off ratio was 1.17%.

Capital

At June 30, 2014, stockholders' equity was $414 million, book value per share was $25.36 and tangible book value per share was $19.69. The Company's ratio of stockholders' equity to total assets was 9.6% and its ratio of tangible common equity to tangible assets was 7.6%.

Simmons First National Corporation

Simmons First National Corporation is an Arkansas based financial holding company with pro forma assets totaling $8.0 billion and conducting financial operations throughout Arkansas, Kansas, Missouri and Tennessee. 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 3:00 p.m. Central Time on Thursday, July 17, 2014. 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 64281536. 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.

Forward Looking Statements

Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements of this type speak only as of 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.

####

FOR MORE INFORMATION CONTACT:

DAVID W. GARNER

Executive Vice President 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	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30
(Unaudited)	2014			2014			2013			2013			2013
(in thousands)
ASSETS
Cash and non-interest bearing balances due from banks	$	44,805		$	48,018		$	69,827		$	37,752		$	38,494
Interest bearing balances due from banks		377,855			474,118			469,553			320,368			420,740
Federal funds sold		-			-			-			18,365			-
Cash and cash equivalents		422,660			522,136			539,380			376,485			459,234
Investment securities - held-to-maturity		799,963			776,615			745,688			581,768			555,464
Investment securities - available-for-sale		270,336			264,974			212,277			179,937			177,531
Mortgage loans held for sale		20,409			16,717			9,494			10,605			14,454
Assets held in trading accounts		6,881			6,865			8,978			8,744			8,739
Loans:
Legacy loans		1,868,842			1,779,609			1,742,638			1,741,161			1,650,395
Allowance for loan losses		(27,530	)		(26,983	)		(27,442	)		(27,533	)		(27,398	)
Loans acquired, not covered by FDIC loss share
(net of discount)		398,967			450,289			515,644			68,133			63,500
Loans acquired, covered by FDIC loss share (net of discount)		121,524			137,879			146,653			148,884			163,736
Net loans		2,361,803			2,340,794			2,377,493			1,930,645			1,850,233
FDIC indemnification asset		30,508			39,239			48,791			61,500			67,744
Premises and equipment		113,541			111,888			119,614			87,065			88,164
Premises held for sale		14,145			23,779			19,466			-			-
Foreclosed assets not covered by FDIC loss share		53,342			57,476			64,820			26,203			30,390
Foreclosed assets covered by FDIC loss share		16,951			18,171			20,585			23,260			22,990
Interest receivable		14,254			15,102			15,654			15,635			12,637
Bank owned life insurance		61,115			60,714			60,384			60,040			59,710
Goodwill		78,529			78,529			78,906			60,605			60,605
Other intangible assets		14,094			14,519			14,972			5,420			3,487
Other assets		47,310			49,129			46,598			13,797			10,387
Total assets	$	4,325,841		$	4,396,647		$	4,383,100		$	3,441,709		$	3,421,769

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts	$	838,543		$	838,050		$	718,438		$	580,063		$	565,433
Interest bearing transaction accounts and savings deposits		1,784,040			1,793,330			1,862,618			1,453,139			1,428,422
Time deposits less than $100,000		559,597			589,798			611,729			454,325			467,778
Time deposits greater than $100,000		459,545			485,870			504,782			351,271			351,486
Total deposits		3,641,725			3,707,048			3,697,567			2,838,798			2,813,119
Federal funds purchased and securities sold
under agreements to repurchase		98,226			104,643			107,887			62,311			79,063
Other borrowings		115,602			116,970			117,090			75,987			77,659
Subordinated debentures		20,620			20,620			20,620			20,620			20,620
Accrued interest and other liabilities		35,533			40,694			36,104			40,959			29,458
Total liabilities		3,911,706			3,989,975			3,979,268			3,038,675			3,019,919

Stockholders' equity:
Common stock		163			163			162			162			163
Surplus		90,010			89,274			88,095			87,279			89,434
Undivided profits		325,371			319,354			318,577			318,194			314,663
Accumulated other comprehensive income
Unrealized appreciation on AFS securities		(1,409	)		(2,119	)		(3,002	)		(2,601	)		(2,410	)
Total stockholders' equity		414,135			406,672			403,832			403,034			401,850
Total liabilities and stockholders' equity	$	4,325,841		$	4,396,647		$	4,383,100		$	3,441,709		$	3,421,769

Page 1

Simmons First National Corporation													SFNC
Consolidated Average Quarter-to-Date Balance Sheets
For the Quarters Ended	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30
(Unaudited)	2014			2014			2013			2013			2013
(in thousands)
ASSETS
Cash and non-interest bearing balances due from banks	$	44,671		$	68,770		$	50,473		$	39,067		$	41,030
Interest bearing balances due from banks		456,931			507,936			428,551			365,504			527,787
Federal funds sold		985			385			2,616			3,719			1,922
Cash and cash equivalents		502,587			577,091			481,640			408,290			570,739
Investment securities - held-to-maturity		782,900			749,126			657,736			567,579			511,008
Investment securities - available-for-sale		265,194			223,203			220,292			178,351			182,227
Mortgage loans held for sale		15,299			6,668			6,666			12,171			14,154
Assets held in trading accounts		6,850			7,212			8,881			8,731			8,292
Loans:
Legacy loans		1,817,429			1,719,294			1,734,469			1,705,204			1,616,036
Allowance for loan losses		(27,287	)		(27,771	)		(27,806	)		(27,735	)		(28,219	)
Loans acquired, not covered by FDIC loss share
(net of discount)		418,515			505,031			261,577			61,372			72,663
Loans acquired, covered by FDIC loss share (net of discount)		128,099			142,777			145,742			156,392			172,415
Net loans		2,336,756			2,339,331			2,113,982			1,895,233			1,832,895
FDIC indemnification asset		35,940			46,154			57,587			65,478			70,442
Premises and equipment		112,994			119,626			87,310			88,044			88,210
Premises held for sale		21,142			19,514			212			-			-
Foreclosed assets not covered by FDIC loss share		55,304			63,453			50,680			27,368			29,399
Foreclosed assets covered by FDIC loss share		18,330			19,901			22,529			22,392			25,603
Interest receivable		15,076			14,882			15,707			13,739			12,524
Bank owned life insurance		60,895			60,552			60,209			59,878			59,523
Goodwill		78,529			78,901			60,804			60,605			60,605
Other intangible assets		14,299			14,765			5,526			3,439			3,554
Other assets		48,583			45,458			33,324			12,122			13,435
Total assets	$	4,370,678		$	4,385,837		$	3,883,085		$	3,423,420		$	3,482,610

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts	$	823,552		$	735,101		$	665,644		$	559,461		$	560,804
Interest bearing transaction accounts and savings deposits		1,810,436			1,854,510			1,620,244			1,444,058			1,456,258
Time deposits less than $100,000		577,856			601,046			517,603			461,101			475,428
Time deposits greater than $100,000		472,009			495,574			409,361			358,307			359,155
Total deposits		3,683,853			3,686,231			3,212,852			2,822,927			2,851,645
Federal funds purchased and securities sold
under agreements to repurchase		101,537			115,018			98,359			67,924			89,879
Other borrowings		116,082			117,588			108,693			75,704			80,090
Subordinated debentures		20,620			20,620			20,620			20,620			20,620
Accrued interest and other liabilities		34,637			36,967			33,117			31,867			32,146
Total liabilities		3,956,729			3,976,424			3,473,641			3,019,042			3,074,380
Total stockholders' equity		413,949			409,413			409,444			404,378			408,230
Total liabilities and stockholders' equity	$	4,370,678		$	4,385,837		$	3,883,085		$	3,423,420		$	3,482,610

Page 2

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)	2014			2014			2013			2013			2013
(in thousands, except per share data)
INTEREST INCOME
Legacy loans	$	22,733		$	21,554		$	22,463		$	22,332		$	21,207
Loans acquired		15,889			18,577			16,151			8,283			7,864
Federal funds sold		2			1			5			6			5
Investment securities		4,766			4,549			3,951			3,428			3,019
Mortgage loans held for sale		168			69			72			122			118
Assets held in trading accounts		5			5			6			6			6
Interest bearing balances due from banks		279			279			251			234			352
TOTAL INTEREST INCOME		43,842			45,034			42,899			34,411			32,571
INTEREST EXPENSE
Time deposits		1,515			1,577			1,479			1,392			1,479
Other deposits		720			692			646			601			603
Federal funds purchased and securities
sold under agreements to repurchase		31			53			55			46			53
Other borrowings		988			1,010			929			646			692
Subordinated debentures		160			157			161			162			162
TOTAL INTEREST EXPENSE		3,414			3,489			3,270			2,847			2,989
NET INTEREST INCOME		40,428			41,545			39,629			31,564			29,582
Provision for loan losses		1,602			908			1,084			1,081			1,034
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES		38,826			40,637			38,545			30,483			28,548
NON-INTEREST INCOME
Trust income		1,553			1,537			1,608			1,448			1,342
Service charges on deposit accounts		6,792			6,068			5,497			4,603			4,474
Other service charges and fees		859			1,866			1,164			728			791
Mortgage lending income		1,262			810			916			1,122			1,338
Investment banking income		154			181			421			240			696
Credit card fees		5,801			4,600			4,592			4,400			4,341
Bank owned life insurance income		377			330			347			328			366
Gain on sale of securities, net		38			-			42			-			(193	)
Net (loss) gain on assets covered by FDIC loss share agreements		(6,268	)		(7,370	)		(7,988	)		(3,443	)		(2,615	)
Other income		4,820			1,176			1,118			887			733
TOTAL NON-INTEREST INCOME		15,388			9,198			7,717			10,313			11,273
NON-INTEREST EXPENSE
Salaries and employee benefits		20,982			22,464			19,933			17,701			17,937
Occupancy expense, net		3,285			3,890			2,544			2,485			2,450
Furniture and equipment expense		2,215			2,014			2,257			1,613			2,030
Other real estate and foreclosure expense		375			873			562			385			59
Deposit insurance		1,085			668			620			595			492
Merger related costs		1,354			1,272			6,413			190			(467	)
Other operating expenses		10,546			13,370			9,349			7,934			7,818
TOTAL NON-INTEREST EXPENSE		39,842			44,551			41,678			30,903			30,319
NET INCOME BEFORE INCOME TAXES		14,372			5,284			4,584			9,893			9,502
Provision for income taxes		4,464			932			798			2,961			2,926
NET INCOME	$	9,908		$	4,352		$	3,786		$	6,932		$	6,576
BASIC EARNINGS PER SHARE	$	0.61		$	0.27		$	0.23		$	0.43		$	0.40
DILUTED EARNINGS PER SHARE	$	0.60		$	0.27		$	0.23		$	0.43		$	0.40

Page 3

Simmons First National Corporation													SFNC
Consolidated Statements of Income - Year-to-Date
For the Quarters Ended	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30
(Unaudited)	2014			2014			2013			2013			2013
(in thousands, except per share data)
INTEREST INCOME
Legacy loans	$	44,285		$	21,554		$	88,594		$	66,129		$	43,797
Loans acquired		34,468			18,577			39,577			23,428			15,145
Federal funds sold		3			1			19			14			8
Investment securities		9,315			4,549			13,300			9,349			5,921
Mortgage loans held for sale		237			69			467			395			273
Assets held in trading accounts		10			5			29			23			17
Interest bearing balances due from banks		558			279			1,127			875			642
TOTAL INTEREST INCOME		88,876			45,034			143,113			100,213			65,803
INTEREST EXPENSE
Time deposits		3,091			1,577			5,938			4,460			3,067
Other deposits		1,414			692			2,461			1,814			1,214
Federal funds purchased and securities
sold under agreements to repurchase		84			53			219			165			118
Other borrowings		1,998			1,010			3,001			2,072			1,426
Subordinated debentures		317			157			644			483			321
TOTAL INTEREST EXPENSE		6,904			3,489			12,263			8,994			6,146
NET INTEREST INCOME		81,972			41,545			130,850			91,219			59,657
Provision for loan losses		2,510			908			4,118			3,034			1,953
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES		79,462			40,637			126,732			88,185			57,704
NON-INTEREST INCOME
Trust income		3,091			1,537			5,842			4,234			2,786
Service charges on deposit accounts		12,860			6,068			18,815			13,318			8,715
Other service charges and fees		2,727			1,866			3,458			2,294			1,566
Mortgage lending income		2,074			810			4,592			3,677			2,554
Investment banking income		336			181			1,811			1,390			1,150
Credit card fees		10,401			4,600			17,372			12,779			8,380
Bank owned life insurance income		705			330			1,319			974			644
Gain on sale of securities, net		38			-			(151	)		(193	)		(193	)
Net (loss) gain on assets covered by FDIC loss share agreements		(13,639	)		(7,370	)		(16,188	)		(8,200	)		(4,757	)
Other income		5,984			1,176			3,746			2,626			1,741
TOTAL NON-INTEREST INCOME		24,577			9,198			40,616			32,899			22,586
NON-INTEREST EXPENSE
Salaries and employee benefits		43,447			22,464			74,078			54,146			36,444
Occupancy expense, net		7,155			3,890			10,034			7,490			5,005
Furniture and equipment expense		4,229			2,014			7,623			5,367			3,753
Other real estate and foreclosure expense		1,248			873			1,337			775			390
Deposit insurance		1,753			668			2,482			1,862			1,267
Merger related costs		2,627			1,272			6,376			(37	)		(227	)
Other operating expenses		23,923			13,370			32,882			23,529			15,599
TOTAL NON-INTEREST EXPENSE		84,382			44,551			134,812			93,132			62,231
NET INCOME BEFORE INCOME TAXES		19,657			5,284			32,536			27,952			18,059
Provision for income taxes		5,396			932			9,305			8,507			5,546
NET INCOME	$	14,261		$	4,352		$	23,231		$	19,445		$	12,513
BASIC EARNINGS PER SHARE	$	0.88		$	0.27		$	1.42		$	1.19		$	0.76
DILUTED EARNINGS PER SHARE	$	0.87		$	0.27		$	1.42		$	1.19		$	0.76

Page 4

Simmons First National Corporation													SFNC
Consolidated Risk-Based Capital
For the Quarters Ended	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30
(Unaudited)	2014			2014			2013			2013			2013
($ in thousands)
Tier 1 capital
Stockholders' equity	$	414,135		$	406,672		$	403,832		$	403,034		$	401,850
Trust preferred securities, net allowable		20,000			20,000			20,000			20,000			20,000
Disallowed intangible assets, net of deferred tax		(74,003	)		(74,477	)		(75,501	)		(49,727	)		(48,091	)
Unrealized gain on AFS securities		1,409			2,119			3,002			2,601			2,410

Total Tier 1 capital		361,541			354,314			351,333			375,908			376,169

Tier 2 capital
Qualifying unrealized gain on AFS equity securities		47			42			45			40			35
Qualifying allowance for loan losses		29,621			28,846			28,967			25,633			24,818

Total Tier 2 capital		29,668			28,888			29,012			25,673			24,853

Total risk-based capital	$	391,209		$	383,202		$	380,345		$	401,581		$	401,022

Risk weighted assets	$	2,652,474		$	2,651,970		$	2,697,630		$	2,047,198		$	1,981,341

Adjusted average assets for leverage ratio	$	4,299,379		$	4,315,279		$	3,811,793		$	3,378,676		$	3,434,844

Ratios at end of quarter
Equity to assets		9.57	%		9.25	%		9.21	%		11.71	%		11.74	%
Tangible common equity to tangible assets		7.59	%		7.29	%		7.23	%		9.98	%		10.06	%
Tier 1 leverage ratio		8.41	%		8.21	%		9.22	%		11.13	%		10.95	%
Tier 1 risk-based capital ratio		13.63	%		13.36	%		13.02	%		18.36	%		18.99	%
Total risk-based capital ratio		14.75	%		14.45	%		14.10	%		19.62	%		20.24	%

Page 5

Simmons First National Corporation									SFNC
Consolidated Loans and Investments
For the Quarters Ended	Jun 30		Mar 31		Dec 31		Sep 30		Jun 30
(Unaudited)	2014		2014		2013		2013		2013
(in thousands)
Legacy Loan Portfolio - End of Period (1)
Consumer
Credit cards	$	176,239	$	172,609	$	184,935	$	177,463	$	173,536
Student loans		398		24,415		25,906		28,392		30,106
Other consumer		105,998		104,185		98,851		101,399		103,765
Total consumer		282,635		301,209		309,692		307,254		307,407
Real Estate
Construction		163,412		168,147		146,458		161,024		142,902
Single-family residential		417,187		402,588		392,285		375,703		364,239
Other commercial		653,734		644,772		626,333		602,463		572,110
Total real estate		1,234,333		1,215,507		1,165,076		1,139,190		1,079,251
Commercial
Commercial		233,510		186,303		164,329		154,508		152,122
Agricultural		111,567		72,239		98,886		135,633		107,113
Total commercial		345,077		258,542		263,215		290,141		259,235
Other		6,796		4,351		4,655		4,576		4,502
Total Loans	$	1,868,841	$	1,779,609	$	1,742,638	$	1,741,161	$	1,650,395

(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	$	449,201	$	425,616	$	395,198	$	313,052	$	313,050
Mortgage-backed securities		32,204		33,323		34,425		41		43
State and political subdivisions		317,938		317,056		315,445		268,055		241,751
Other securities		620		620		620		620		620
Total held-to-maturity		799,963		776,615		745,688		581,768		555,464
Available-for-Sale
U.S. Treasury	$	3,994	$	3,981	$	3,985	$	-	$	-
U.S. Government agencies		238,411		231,949		178,217		163,127		159,390
Mortgage-backed securities		1,958		1,833		1,891		1,994		2,078
State and political subdivisions		6,920		7,367		7,861		1,263		1,262
FHLB stock		4,966		5,168		6,002		5,085		5,353
Other securities		14,087		14,676		14,321		8,468		9,448
Total available-for-sale		270,336		264,974		212,277		179,937		177,531
Total investment securities	$	1,070,299	$	1,041,589	$	957,965	$	761,705	$	732,995
Fair value - HTM investment securities	$	802,597	$	771,114	$	731,705	$	570,703	$	543,154

Investment Securities - QTD Average
Taxable securities	$	722,084	$	649,329	$	583,389	$	490,801	$	478,946
Tax exempt securities		326,010		323,000		294,639		255,129		214,289
Total investment securities - QTD average	$	1,048,094	$	972,329	$	878,028	$	745,930	$	693,235

Page 6

Simmons First National Corporation							SFNC
Consolidated Loans and Credit Coverage
For the Quarters Ended	Jun 30			Mar 31			Dec 31
(Unaudited)	2014			2014			2013
($ in thousands)
LOANS
Legacy loans	$	1,868,842		$	1,779,609		$	1,742,638
Allowance for loan losses		(27,530	)		(26,983	)		(27,442	)
Legacy loans (net of allowance)		1,841,312			1,752,626			1,715,196
Loans acquired, not covered by FDIC loss share		445,515			495,915			566,895
Credit discount		(46,548	)		(45,626	)		(51,251	)
Loans acquired, not covered (net of discount)		398,967			450,289			515,644
Loans acquired, covered by FDIC loss share		163,775			188,755			209,459
Credit discount		(42,251	)		(50,876	)		(62,806	)
Loans acquired, covered (net of discount)		121,524			137,879			146,653
Net loans	$	2,361,803		$	2,340,794		$	2,377,493


Loan Coverage Ratios
Allowance for loan losses to legacy loans		1.47	%		1.52	%		1.57	%

Discount for credit losses on loans acquired, not covered,
to total loans acquired, not covered, plus discount for
credit losses on loans acquired, not covered		10.45	%		9.20	%		9.04	%

Discount for credit losses on loans acquired, covered,
to total loans acquired, covered, plus discount for
credit losses on loans acquired, covered		25.80	%		26.95	%		29.98	%

Total allowance and credit coverage		4.69	%		5.01	%		5.62	%

Page 7

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)	2014			2014			2013			2013			2013
($ in thousands)
Allowance for Loan Losses
Balance, beginning of quarter	$	26,983		$	27,442		$	27,533		$	27,398		$	27,735
Loans charged off
Credit cards		725			816			841			770			743
Other consumer		426			148			428			449			310
Real estate		1,144			1,035			255			247			887
Commercial		186			82			133			20			133
Total loans charged off		2,481			2,081			1,657			1,486			2,073

Recoveries of loans previously charged off
Credit cards		215			271			226			235			204
Other consumer		133			121			166			114			116
Real estate		1,062			308			78			151			295
Commercial		16			14			12			40			87
Total recoveries		1,426			714			482			540			702
Net loans charged off		1,055			1,367			1,175			946			1,371
Provision for loan losses		1,602			908			1,084			1,081			1,034
Balance, end of quarter	$	27,530		$	26,983		$	27,442		$	27,533		$	27,398

Non-performing assets (1) (2)
Non-performing loans
Nonaccrual loans
Real estate	$	8,166		$	8,075		$	4,799		$	4,157		$	4,327
Commercial		1,110			1,054			495			525			526
Consumer		877			883			967			1,293			1,410
Total nonaccrual loans		10,153			10,012			6,261			5,975			6,263
Loans past due 90 days or more
Government guaranteed student loans		323			1,965			2,264			2,966			2,254
Other loans		757			517			687			725			879
Total loans past due 90 days or more		1,080			2,482			2,951			3,691			3,133
Total non-performing loans		11,233			12,494			9,212			9,666			9,396
Other non-performing assets
Foreclosed assets held for sale		16,745			17,357			19,361			20,493			21,804
Acquired foreclosed assets held for sale, not covered
by FDIC loss share agreements		36,597			40,119			45,459			5,710			8,586
Other non-performing assets		80			60			75			60			80
Total other non-performing assets		53,422			57,536			64,895			26,263			30,470
Total non-performing assets	$	64,655		$	70,030		$	74,107		$	35,929		$	39,866
Performing TDRs (troubled debt restructurings)	$	2,776		$	8,655		$	9,497		$	9,584		$	10,473

Ratios (1) (2)
Allowance for loan losses to total loans		1.47	%		1.52	%		1.57	%		1.58	%		1.66	%
Allowance for loan losses to non-performing loans		245	%		216	%		298	%		285	%		292	%
Non-performing loans to total loans		0.60	%		0.70	%		0.53	%		0.56	%		0.57	%
Non-performing assets (including performing TDRs)
to total assets		1.56	%		1.79	%		1.91	%		1.32	%		1.47	%
Non-performing assets to total assets		1.49	%		1.59	%		1.69	%		1.04	%		1.17	%
Non-performing assets to total assets
(excluding Gov't guaranteed student loans)		1.49	%		1.55	%		1.64	%		0.96	%		1.10	%
Annualized net charge offs to total loans		0.23	%		0.32	%		0.27	%		0.22	%		0.34	%
Annualized net credit card charge offs to
total credit card loans		1.14	%		1.20	%		1.31	%		1.21	%		1.25	%
Annualized net charge offs to total loans
(excluding credit cards)		0.13	%		0.22	%		0.14	%		0.11	%		0.23	%
Past due loans >30 days (excluding nonaccrual)		0.34	%		0.61	%		0.57	%		0.62	%		0.54	%
Past due loans >30 days (excluding nonaccrual)
(excluding Gov't guaranteed student loans)		0.32	%		0.45	%		0.41	%		0.36	%		0.35	%

(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.

Page 8

Simmons First National Corporation													SFNC
Consolidated - Net Interest Income Analysis
For the Quarters Ended	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30
(Unaudited)	2014			2014			2013			2013			2013

ASSETS

Earning Assets
Interest bearing balances due from banks		0.24	%		0.22	%		0.23	%		0.25	%		0.27	%
Investment securities		2.47	%		2.60	%		2.44	%		2.52	%		2.37	%
Mortgage loans held for sale		4.40	%		4.20	%		4.29	%		3.98	%		3.34	%
Assets held in trading accounts		0.29	%		0.28	%		0.27	%		0.27	%		0.29	%
Loans, including acquired loans		6.55	%		6.88	%		7.16	%		6.32	%		6.27	%
Total interest earning assets		4.69	%		4.91	%		5.08	%		4.63	%		4.35	%

LIABILITIES

Interest bearing liabilities
Interest bearing transaction and
savings accounts		0.16	%		0.15	%		0.16	%		0.17	%		0.17	%
Time deposits		0.58	%		0.58	%		0.63	%		0.67	%		0.71	%
Total interest bearing deposits		0.31	%		0.31	%		0.33	%		0.35	%		0.36	%
Federal funds purchased and securities
sold under agreement to repurchase		0.12	%		0.19	%		0.22	%		0.27	%		0.24	%
Other borrowings		3.41	%		3.48	%		3.39	%		3.39	%		3.47	%
Subordinated debentures		3.11	%		3.09	%		3.10	%		3.12	%		3.15	%
Total interest bearing liabilities		0.44	%		0.44	%		0.47	%		0.47	%		0.48	%

NET INTEREST MARGIN/SPREAD

Net interest spread		4.25	%		4.47	%		4.61	%		4.16	%		3.87	%
Net interest margin - quarter-to-date		4.34	%		4.54	%		4.70	%		4.27	%		3.96	%
Net interest margin - year-to-date		4.44	%		4.54	%		4.21	%		4.08	%		3.98	%

Page 9

Simmons First National Corporation													SFNC
Consolidated - Selected Financial Data
For the Quarters Ended	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30
(Unaudited)	2014			2014			2013			2013			2013
($ in thousands, except share data)
QUARTER-TO-DATE
Diluted earnings per share	$	0.60		$	0.27		$	0.23		$	0.43		$	0.40
Core earnings (excludes nonrecurring items) (non-GAAP)		9,153			7,482			7,749			7,371			6,409
Diluted core earnings per share (non-GAAP)		0.56			0.46			0.48			0.45			0.39
Cash dividends declared per common share		0.22			0.22			0.21			0.21			0.21
Cash dividends declared - amount		3,589			3,575			3,403			3,401			3,434
Return on average stockholders' equity		9.60	%		4.31	%		3.67	%		6.80	%		6.46	%
Return on tangible equity		12.72	%		5.94	%		4.51	%		8.18	%		7.76	%
Return on average assets		0.91	%		0.40	%		0.39	%		0.80	%		0.76	%
Net interest margin (FTE)		4.34	%		4.54	%		4.70	%		4.27	%		3.96	%
FTE adjustment - investments		1,687			1,682			1,442			1,313			1,083
FTE adjustment - loans		8			10			17			11			12
Amortization of intangibles		452			453			192			135			137
Amortization of intangibles, net of taxes		275			275			117			82			83
Average shares outstanding		16,318,003			16,270,149			16,210,480			16,220,199			16,414,893
Average earning assets		3,892,202			3,861,632			3,466,530			3,059,023			3,106,504
Average interest bearing liabilities		3,098,540			3,204,356			2,774,880			2,427,714			2,481,430

YEAR-TO-DATE
Diluted earnings per share	$	0.87		$	0.27		$	1.42		$	1.19		$	0.76
Core earnings (excludes nonrecurring items) (non-GAAP)		16,635			7,482			27,612			19,863			12,492
Diluted core earnings per share (non-GAAP)		1.02			0.46			1.69			1.21			0.76
Cash dividends declared per common share		0.44			0.22			0.84			0.63			0.42
Cash dividends declared - amount		7,164			3,575			13,707			10,304			6,903
Return on average stockholders' equity		6.99	%		4.31	%		5.33	%		6.39	%		6.18	%
Return on tangible equity		9.38	%		5.94	%		6.36	%		7.68	%		7.43	%
Return on average assets		0.66	%		0.40	%		0.64	%		0.75	%		0.72	%
Net interest margin (FTE)		4.44	%		4.54	%		4.21	%		4.08	%		3.98	%
FTE adjustment - investments		3,369			1,682			4,900			3,458			2,145
FTE adjustment - loans		18			10			51			34			23
Amortization of intangibles		905			453			601			409			274
Amortization of intangibles, net of taxes		550			275			365			248			166
Average shares outstanding		16,294,208			16,270,149			16,339,335			16,382,758			16,465,385
Average diluted shares outstanding		16,336,901			16,309,868			16,352,167			16,388,393			16,468,814
Average earning assets		3,876,918			3,861,632			3,224,094			3,105,706			3,129,048
Average interest bearing liabilities		3,151,446			3,204,356			2,551,653			2,477,899			2,503,992

END OF PERIOD
Book value per share	$	25.36		$	24.93		$	24.89		$	24.88		$	24.67
Tangible book value per share		19.69			19.23			19.10			20.80			20.74
Shares outstanding		16,331,341			16,311,263			16,226,256			16,198,964			16,289,239
Full-time equivalent employees		1,281			1,321			1,343			1,097			1,114
Total number of ATM's		120			120			157			106			110
Total number of financial centers		104			104			131			87			92
Parent company only - investment in subsidiaries		449,591			453,067			452,688			371,531			369,965
Parent company only - intangible assets		133			133			133			133			133

Page 10

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)	2014			2014			2013			2013			2013
(in thousands, except per share data)
QUARTER-TO-DATE
Net Income	$	9,908		$	4,352		$	3,786		$	6,932		$	6,576
Nonrecurring items
Gain on sale of merchant services		(1,000	)		-			-			-			-
Merger related costs		1,354			1,272			6,413			190			(467	)
Loss on sale of securities		-			-			-			-			193
Branch right sizing		(2,011	)		3,878			108			533			-
Charter consolidation costs		414			-			-			-			-
Tax effect		488			(2,020	)		(2,558	)		(284	)		107
Net nonrecurring items		(755	)		3,130			3,963			439			(167	)
Core earnings (non-GAAP)	$	9,153		$	7,482		$	7,749		$	7,371		$	6,409

Diluted earnings per share	$	0.60		$	0.27		$	0.23		$	0.43		$	0.40
Nonrecurring items
Gain on sale of merchant services		(0.06	)		-			-			-			-
Merger related costs		0.08			0.08			0.40			0.01			(0.03	)
Loss on sale of securities		-			-			-			-			0.01
Branch right sizing		(0.12	)		0.24			0.01			0.03			-
Charter consolidation costs		0.03			-			-			-			-
Tax effect		0.03			(0.13	)		(0.16	)		(0.02	)		0.01
Net nonrecurring items		(0.04	)		0.19			0.25			0.02			(0.01	)
Diluted core earnings per share (non-GAAP)	$	0.56		$	0.46		$	0.48		$	0.45		$	0.39

YEAR-TO-DATE
Net Income	$	14,260		$	4,352		$	23,231		$	19,445		$	12,513
Nonrecurring items
Gain on sale of merchant services		(1,000	)		-			-			-			-
Merger related costs		2,626			1,272			6,376			(37	)		(227	)
Loss on sale of securities		-			-			193			193			193
Branch right sizing		1,867			3,878			641			533			-
Charter consolidation costs		414			-			-			-			-
Tax effect		(1,532	)		(2,020	)		(2,829	)		(271	)		13
Net nonrecurring items		2,375			3,130			4,381			418			(21	)
Core earnings (non-GAAP)	$	16,635		$	7,482		$	27,612		$	19,863		$	12,492

Diluted earnings per share	$	0.87		$	0.27		$	1.42		$	1.19		$	0.76
Nonrecurring items
Gain on sale of merchant services		(0.06	)		-			-			-			-
Merger related costs		0.16			0.08			0.39			(0.01	)		(0.02	)
Loss on sale of securities		-			-			0.01			0.01			0.01
Branch right sizing		0.12			0.24			0.04			0.03			-
Charter consolidation costs		0.03			-			-			-			-
Tax effect		(0.10	)		(0.13	)		(0.17	)		(0.01	)		0.01
Net nonrecurring items		0.15			0.19			0.27			0.02			-
Diluted core earnings per share (non-GAAP)	$	1.02		$	0.46		$	1.69		$	1.21		$	0.76

Page 11

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