Exhibit 99.1

 

 

 

 

FOR IMMEDIATE RELEASE:

January 21, 2016

 

SIMMONS FIRST ANNOUNCES 128 PERCENT INCREASE IN CORE EARNINGS

 

Pine Bluff, AR – Simmons First National Corporation (NASDAQ-GS: SFNC) today announced record core earnings of $25.9 million for the fourth quarter of 2015, an increase of $14.5 million, or 127.6 percent, compared with the same quarter last year. Diluted core earnings per share were a record $0.86, an increase of $0.22, or 34.4 percent. Including the non-core items, net income was $23.8 million for the fourth quarter of 2015, an increase of $11.1 million, or 88.2 percent, compared with the same quarter last year. Diluted earnings per share were $0.78, an increase of $0.06, or 8.3 percent.

 

Year-to-date core earnings were $89.6 million, an increase of $50.9 million, or 131.5 percent, compared with the same period of 2014. Year-to-date diluted core earnings per share were $3.18, an increase of $0.89, or 38.9 percent. Year-to-date net income was $74.1 million, or $2.63 diluted earnings per share.

 

“We are very proud of our team for achieving record operating results in 2015. The hard work by all of our associates, especially those new to Simmons, has established a firm base on which to build. We look forward to continued momentum into 2016,” said George A. Makris, Jr., chairman and CEO.

 

Loans

 

Total loans, including those acquired, were $4.9 billion at Dec. 31, 2015, an increase of $2.2 billion, or 79.7 percent, compared with the same period in 2014. Legacy loans (all loans excluding acquired loans) grew $1.2 billion, or 58.1 percent. Acquired loans increased by $990 million, net of discounts.

 

Deposits

 

At Dec. 31, 2015, total deposits were $6.1 billion, an increase of $2.2 billion, or 57.6 percent, compared with the same period in 2014. Total non-time deposits were $4.8 billion, or 78.3 percent of total deposits.

 

Net Interest Income

 

The company’s net interest income for the fourth quarter of 2015 was $73.8 million, an increase of $26.4 million, or 55.6 percent, from the same period of 2014. This increase was driven by growth in the legacy loan portfolio and earning assets acquired through the Community First and Liberty transactions. Net interest margin was 4.54 percent for the quarter ended Dec. 31, 2015, an 11 basis-point decline from the same quarter of 2014.

 

Included in interest income was the yield accretion recognized on acquired loans of $11.1 million and $10.8 million for the fourth quarter of 2015 and 2014, respectively. The company’s core net interest margin, excluding the accretion, was 3.88 percent for the fourth quarter of 2015, a 25 basis-point increase from the same quarter of 2014.

 

Non-Interest Income

 

Non-interest income for the fourth quarter was $28.9 million, an increase of $7.4 million compared with the fourth quarter of 2014. The increase in non-interest income was primarily due to additional service charge and fee income, mortgage lending and investment banking income resulting from the acquisitions and gains on sale of other real estate and investment securities. Additional trust income resulted from the completed acquisition of Ozark Trust. Losses on FDIC-covered assets decreased by $3.0 million with the elimination of indemnification asset amortization due to the company’s September termination of loss-sharing agreements with the FDIC.

 

Non-Interest Expense

 

Non-interest expense for the fourth quarter of 2015 was $68.0 million, an increase of $21.1 million compared with the same period in 2014. Included in the quarter were $1.3 million of merger-related and branch right-sizing expenses. The company also incurred $2.2 million of costs related to early termination agreements executed during the quarter. The remaining increase in non-interest expense was primarily due to incremental operating expenses of the acquired Community First, Liberty and Ozark Trust franchises, somewhat offset by the company’s ongoing efficiency initiatives.

 

Asset Quality

 

During the third quarter, the company entered into an agreement with the FDIC to terminate all of its remaining loss-sharing agreements. As a result, all FDIC-acquired assets are now classified as non-covered. All acquired loans are recorded at their discounted net present value; therefore, they are excluded from the computations of the asset quality ratios for the legacy loan portfolio, except for their inclusion in total assets.

 

At Dec. 31, 2015, the allowance for loan losses for legacy loans was $31.4 million, with a $1.0 million allowance for acquired loans. The loan discount credit mark was $55.7 million, for a total of $88.1 million of coverage. This equates to a total coverage ratio of 1.8 percent of gross loans. The ratio of credit mark and related allowance to acquired loans was 3.3 percent.

 

The company's allowance for loan losses on legacy loans at Dec. 31, 2015, was 0.97 percent of total loans and 166 percent of non-performing loans. In the legacy portfolio, non-performing loans as a percent of total loans were 0.58 percent. The 2015 year-to-date net charge-off ratio, excluding credit cards, was 0.16 percent, and the year-to-date credit card charge-off ratio was 1.28 percent.

 

Capital

 

At Dec. 31, 2015, common stockholders' equity was $1.1 billion, book value per share was $34.49 and tangible book value per share was $21.97. The company's ratio of stockholders' equity to total assets was 14.22 percent and its ratio of tangible common equity to tangible assets was 9.3 percent.

 

Simmons First National Corporation

 

Simmons First National Corporation is an Arkansas-based financial holding company with total assets of $7.6 billion, 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 p.m. CST on Thursday, Jan. 21, 2016. Interested persons can listen to this call by dialing toll-free 1-866-298-7926 (United States and Canada only) and asking for the Simmons First National Corporation conference call, conference ID 14837859. 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 news 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 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. 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:

J. BURTON HICKS

Senior 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		Dec 31				Sep 30				Jun 30				Mar 31				Dec 31
(Unaudited)		2015				2015				2015				2015				2014
($ in thousands)
ASSETS
Cash and non-interest bearing balances due from banks		$	97,656			$	106,678			$	69,770			$	83,424			$	54,347
Interest bearing balances due from banks			154,606				284,645				173,130				423,986				281,562
Federal funds sold			-				9,675				49,570				178,418				-
Cash and cash equivalents			252,262				400,998				292,470				685,828				335,909
Interest bearing balances due from banks - time			14,107				16,504				24,189				25,000				-
Investment securities - held-to-maturity			705,373				776,294				861,596				902,423				777,587
Investment securities - available-for-sale			821,407				703,347				747,701				707,383				305,283
Mortgage loans held for sale			30,265				15,556				48,094				25,513				21,265
Assets held in trading accounts			4,422				6,292				6,481				6,528				6,987
Loans:
Legacy loans			3,246,454				2,839,278				2,611,229				2,115,380				2,053,721
Allowance for loan losses			(31,351	)			(30,380	)			(30,567	)			(29,183	)			(29,028	)
Loans acquired, not covered by FDIC loss share
(net of discount and allowance)			1,672,901				2,013,816				2,108,306				2,418,440				575,980
Loans acquired, covered by FDIC loss share
(net of discount and allowance)			-				-				93,121				102,468				106,933
Net loans			4,888,004				4,822,714				4,782,089				4,607,105				2,707,606
FDIC indemnification asset			-				-				13,020				15,965				22,663
Premises and equipment			193,618				190,182				191,335				198,106				122,966
Premises held for sale			923				923				6,587				-				6,126
Foreclosed assets not covered by FDIC loss share			44,820				48,073				42,666				50,723				44,856
Foreclosed assets covered by FDIC loss share			-				-				12,833				12,010				11,793
Interest receivable			25,793				26,873				24,129				24,719				16,774
Bank owned life insurance			131,536				118,922				118,073				117,296				77,592
Goodwill			325,782				314,282				314,282				314,282				108,095
Other intangible assets			53,237				44,904				46,605				47,960				22,526
Other assets			66,267				73,830				82,208				74,959				55,326
Total assets		$	7,557,816			$	7,559,694			$	7,614,358			$	7,815,800			$	4,643,354
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts		$	1,280,234			$	1,212,724			$	1,141,285			$	1,123,966			$	889,260
Interest bearing transaction accounts and savings deposits			3,485,845				3,521,840				3,581,049				3,627,870				2,006,271
Time deposits less than $100,000			694,262				673,651				719,606				756,978				530,890
Time deposits greater than $100,000			625,755				681,585				728,082				765,894				434,297
Total deposits			6,086,096				6,089,800				6,170,022				6,274,708				3,860,718
Federal funds purchased and securities sold
under agreements to repurchase			99,398				110,437				111,792				111,484				110,586
Other borrowings			162,289				173,426				171,321				284,386				114,682
Subordinated debentures			60,570				61,906				61,794				61,644				20,620
Accrued interest and other liabilities			74,450				78,684				74,324				69,841				42,429
Total liabilities			6,482,803				6,514,253				6,589,253				6,802,063				4,149,035
Stockholders' equity:
Preferred stock			30,852				30,852				30,852				30,852				-
Common stock			303				299				299				299				181
Surplus			660,536				642,400				640,895				639,493				156,568
Undivided profits			385,987				369,172				354,459				341,238				338,906
Accumulated other comprehensive (loss) income:
Unrealized (depreciation) appreciation on AFS securities			(2,665	)			2,718				(1,400	)			1,855				(1,336	)
Total stockholders' equity			1,075,013				1,045,441				1,025,105				1,013,737				494,319
Total liabilities and stockholders' equity		$	7,557,816			$	7,559,694			$	7,614,358			$	7,815,800			$	4,643,354

 

Simmons First National Corporation																		SFNC
Consolidated Average Quarter-to-Date Balance Sheets
For the Quarters Ended		Dec 31				Sep 30				Jun 30				Mar 31				Dec 31
(Unaudited)		2015				2015				2015				2015				2014
($ in thousands)
ASSETS
Cash and non-interest bearing balances due from banks		$	103,204			$	94,695			$	69,137			$	59,711			$	54,485
Interest bearing balances due from banks			232,446				206,467				308,756				371,195				299,054
Federal funds sold			1,930				19,086				75,922				56,846				6,486
Cash and cash equivalents			337,580				320,248				453,815				487,752				360,025
Interest bearing balances due from banks - time			15,484				20,251				26,817				8,611				-
Investment securities - held-to-maturity			733,349				728,437				922,877				915,405				806,069
Investment securities - available-for-sale			773,550				838,596				732,949				370,102				318,879
Mortgage loans held for sale			21,294				26,379				37,656				14,655				17,241
Assets held in trading accounts			6,150				6,401				6,592				6,782				6,848
Loans:
Legacy loans			2,898,987				2,725,254				2,363,305				2,084,551				2,008,550
Allowance for loan losses			(31,521	)			(31,709	)			(31,275	)			(30,072	)			(28,474	)
Loans acquired, not covered by FDIC loss share
(net of discount and allowance)			1,969,296				2,020,236				2,228,841				1,197,601				620,505
Loans acquired, covered by FDIC loss share
(net of discount and allowance)			-				89,578				97,795				104,701				111,618
Net loans			4,836,762				4,803,359				4,658,666				3,356,781				2,712,199
FDIC indemnification asset			-				10,838				15,448				21,515				24,457
Premises and equipment			192,414				191,107				200,875				150,564				117,018
Premises held for sale			923				5,775				6,131				6,126				6,794
Foreclosed assets not covered by FDIC loss share			46,860				40,273				42,994				44,059				48,745
Foreclosed assets covered by FDIC loss share			-				12,345				12,313				11,902				13,964
Interest receivable			25,999				24,403				23,260				19,181				17,738
Bank owned life insurance			128,339				118,489				117,662				91,760				76,578
Goodwill			320,216				314,282				314,060				175,901				109,837
Other intangible assets			44,302				45,712				47,302				31,102				17,748
Other assets			67,347				100,872				76,275				58,536				50,566
Total assets		$	7,550,569			$	7,607,767			$	7,695,692			$	5,770,734			$	4,704,706
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts		$	1,295,713			$	1,121,078			$	1,088,474			$	946,979			$	895,470
Interest bearing transaction accounts and savings deposits			3,442,857				3,600,930				3,621,060				2,601,046				2,010,827
Time deposits less than $100,000			689,368				694,872				739,748				573,867				545,986
Time deposits greater than $100,000			649,048				703,056				748,460				580,625				458,117
Total deposits			6,076,986				6,119,936				6,197,742				4,702,517				3,910,400
Federal funds purchased and securities sold
under agreements to repurchase			108,389				109,311				116,258				121,568				117,661
Other borrowings			167,167				197,832				179,080				183,953				121,691
Subordinated debentures			61,697				61,851				62,981				35,686				20,620
Accrued interest and other liabilities			73,768				74,696				70,312				43,825				38,869
Total liabilities			6,488,007				6,563,626				6,626,373				5,087,549				4,209,241
Stockholders' equity:
Preferred stock			30,852				30,852				30,885				10,970				-
Common stock			301				299				299				223				180
Surplus			651,824				641,738				640,172				328,830				155,672
Undivided profits			379,064				371,291				396,609				343,973				341,042
Accumulated other comprehensive income (loss):
Unrealized appreciation (depreciation) on AFS securities			521				(39	)			1,354				(811	)			(1,429	)
Total stockholders' equity			1,062,562				1,044,141				1,069,319				683,185				495,465
Total liabilities and stockholders' equity		$	7,550,569			$	7,607,767			$	7,695,692			$	5,770,734			$	4,704,706

 

Simmons First National Corporation																		SFNC
Consolidated Statements of Income - Quarter-to-Date
For the Quarters Ended		Dec 31				Sep 30				Jun 30				Mar 31				Dec 31
(Unaudited)		2015				2015				2015				2015				2014
($ in thousands, except per share data)
INTEREST INCOME
Loans		$	70,511			$	76,432			$	70,438			$	50,986			$	45,248
Federal funds sold			10				15				73				29				13
Investment securities			8,350				8,335				8,050				5,879				5,325
Mortgage loans held for sale			237				291				375				148				188
Assets held in trading accounts			6				4				4				3				4
Interest bearing balances due from banks			225				122				229				210				167
TOTAL INTEREST INCOME			79,339				85,199				79,169				57,255				50,945
INTEREST EXPENSE
Time deposits			1,858				1,936				2,064				1,596				1,470
Other deposits			2,105				2,222				2,131				1,348				872
Federal funds purchased and securities
sold under agreements to repurchase			60				55				57				64				61
Other borrowings			1,084				1,812				1,151				1,051				992
Subordinated debentures			481				498				559				234				160
TOTAL INTEREST EXPENSE			5,588				6,523				5,962				4,293				3,555
NET INTEREST INCOME			73,751				78,676				73,207				52,962				47,390
Provision for loan losses			3,230				1,615				3,006				1,171				3,607
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES			70,521				77,061				70,201				51,791				43,783
NON-INTEREST INCOME
Trust income			2,725				2,215				2,070				2,251				2,182
Service charges on deposit accounts			8,104				8,488				8,031				6,363				6,552
Other service charges and fees			1,877				3,089				3,130				1,827				1,083
Mortgage lending income			2,298				3,446				3,449				2,262				1,457
Investment banking income			784				663				593				894				451
Debit and credit card fees			7,647				6,879				6,486				5,648				5,653
Bank owned life insurance income			614				748				746				572				727
Gain on sale of securities, net			305				40				-				(38	)			(12	)
Net (loss) gain on assets covered by FDIC loss-share agreements			-				(9,085	)			(3,056	)			(2,671	)			(3,013	)
Other income			4,518				7,006				3,863				1,390				6,424
TOTAL NON-INTEREST INCOME			28,872				23,489				25,312				18,498				21,504
NON-INTEREST EXPENSE
Salaries and employee benefits			39,746				37,417				35,475				26,771				25,126
Occupancy expense, net			3,418				4,812				5,051				3,557				2,494
Furniture and equipment expense			3,731				4,202				3,241				3,268				2,732
Other real estate and foreclosure expense			1,167				2,297				1,017				381				1,395
Deposit insurance			1,222				1,013				1,096				870				724
Merger-related costs			1,237				857				1,247				10,419				1,218
Other operating expenses			17,508				17,314				18,041				12,106				13,290
TOTAL NON-INTEREST EXPENSE			68,029				67,912				65,168				57,372				46,979
NET INCOME BEFORE INCOME TAXES			31,364				32,638				30,345				12,917				18,308
Provision for income taxes			7,505				10,963				10,250				4,182				5,669
NET INCOME			23,859				21,675				20,095				8,735				12,639
Preferred stock dividends			77				77				77				26				-
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS		$	23,782			$	21,598			$	20,018			$	8,709			$	12,639
BASIC EARNINGS PER SHARE		$	0.79			$	0.72			$	0.67			$	0.39			$	0.72
DILUTED EARNINGS PER SHARE		$	0.78			$	0.72			$	0.67			$	0.39			$	0.72

 

Simmons First National Corporation																		SFNC
Consolidated Core Earnings - Quarter-to-Date (non-GAAP)
For the Quarters Ended		Dec 31				Sep 30				Jun 30				Mar 31				Dec 31
(Unaudited)		2015				2015				2015				2015				2014
($ in thousands, except per share data)
INTEREST INCOME
Loans		$	70,511			$	76,432			$	70,438			$	50,986			$	45,248
Federal funds sold			10				15				73				29				13
Investment securities			8,350				8,335				8,050				5,879				5,325
Mortgage loans held for sale			237				291				375				148				188
Assets held in trading accounts			6				4				4				3				4
Interest bearing balances due from banks			225				122				229				210				167
TOTAL INTEREST INCOME			79,339				85,199				79,169				57,255				50,945
INTEREST EXPENSE
Time deposits			1,858				1,936				2,064				1,596				1,470
Other deposits			2,105				2,222				2,131				1,348				872
Federal funds purchased and securities
sold under agreements to repurchase			60				55				57				64				61
Other borrowings			1,084				1,812				1,151				1,051				992
Subordinated debentures			481				498				559				234				160
TOTAL INTEREST EXPENSE			5,588				6,523				5,962				4,293				3,555
NET INTEREST INCOME			73,751				78,676				73,207				52,962				47,390
Provision for loan losses			3,230				1,615				3,006				1,171				3,607
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES			70,521				77,061				70,201				51,791				43,783
NON-INTEREST INCOME
Trust income			2,725				2,215				2,070				2,251				2,182
Service charges on deposit accounts			8,104				8,488				8,031				6,363				6,552
Other service charges and fees			1,877				3,089				3,130				1,827				1,083
Mortgage lending income			2,298				3,446				3,449				2,262				1,457
Investment banking income			784				663				593				894				451
Debit and credit card fees			7,647				6,879				6,486				5,648				5,653
Bank owned life insurance income			614				748				746				572				727
Gain on sale of securities, net			305				40				-				(38	)			(12	)
Net (loss) gain on assets covered by FDIC loss-share agreements			-				(1,609	)			(3,056	)			(2,671	)			(3,013	)
Other income			4,518				4,737				4,396				1,381				1,811
TOTAL NON-INTEREST INCOME			28,872				28,696				25,845				18,489				16,891
NON-INTEREST EXPENSE
Salaries and employee benefits			37,537				37,336				35,324				26,771				24,241
Occupancy expense, net			3,358				4,680				5,013				3,523				2,631
Furniture and equipment expense			3,731				4,172				3,209				3,268				2,730
Other real estate and foreclosure expense			1,167				2,297				1,017				381				1,395
Deposit insurance			1,222				1,013				1,096				870				724
Merger-related costs			-				-				-				-				-
Other operating expenses			17,508				17,094				16,050				12,097				12,711
TOTAL NON-INTEREST EXPENSE			64,523				66,592				61,709				46,910				44,432
CORE EARNINGS BEFORE INCOME TAXES (non-GAAP)			34,870				39,165				34,337				23,370				16,242
Provision for income taxes			8,880				13,523				11,816				7,644				4,855
CORE EARNINGS (non-GAAP)			25,990				25,642				22,521				15,726				11,387
Preferred stock dividends			77				77				77				26				-
CORE EARNINGS AVAILABLE TO COMMON S/H (non-GAAP)		$	25,913			$	25,565			$	22,444			$	15,700			$	11,387
BASIC CORE EARNINGS PER SHARE (non-GAAP)		$	0.86			$	0.85			$	0.75			$	0.71			$	0.64
DILUTED CORE EARNINGS PER SHARE (non-GAAP)		$	0.86			$	0.85			$	0.75			$	0.70			$	0.64

 

Simmons First National Corporation																		SFNC
Consolidated Risk-Based Capital
For the Quarters Ended		Dec 31				Sep 30				Jun 30				Mar 31				Dec 31
(Unaudited)		2015				2015				2015				2015				2014
($ in thousands)
Tier 1 capital
Stockholders' equity		$	1,075,013			$	1,045,441			$	1,025,105			$	1,013,737			$	494,319
Trust preferred securities, net allowable			60,570				61,906				61,794				61,410				20,000
Disallowed intangible assets, net of deferred tax			(330,089	)			(314,735	)			(342,590	)			(344,140	)			(112,545	)
Unrealized loss (gain) on AFS securities			2,665				(2,718	)			1,400				(1,855	)			1,336
Other			-				-				(10,297	)			(4,789	)			-
Total Tier 1 capital			808,159				789,894				735,412				724,363				403,110
Tier 2 capital
Qualifying unrealized gain on AFS equity securities			-				-				-				-				2
Qualifying allowance for loan losses and
reserve for unfunded commitments			35,068				34,097				34,284				32,600				32,073
Total Tier 2 capital			35,068				34,097				34,284				32,600				32,075
Total risk-based capital		$	843,227			$	823,991			$	769,696			$	756,963			$	435,185
Common equity
Tier 1 capital		$	808,159			$	789,894			$	735,412			$	724,363			$	-
Less: Non-cumulative preferred stock			(30,852	)			(30,852	)			(30,852	)			(30,852	)			-
Less: Trust preferred securities			(60,570	)			(61,906	)			(61,794	)			(61,410	)			-
Total common equity		$	716,737			$	697,136			$	642,766			$	632,101			$	-
Risk weighted assets		$	5,042,611			$	4,986,641			$	4,714,852			$	4,659,065			$	3,002,270
Adjusted average assets for leverage ratio		$	7,218,559			$	7,293,113			$	7,350,900			$	5,428,706			$	4,593,924
Ratios at end of quarter
Equity to assets			14.22	%			13.83	%			13.46	%			12.97	%			10.65	%
Tangible common equity to tangible assets			9.27	%			9.10	%			8.73	%			8.32	%			8.06	%
Common equity Tier 1 ratio (CET1)			14.21	%			13.98	%			13.63	%			13.57	%			-
Tier 1 leverage ratio			11.20	%			10.83	%			10.00	%			13.34	%			8.77	%
Tier 1 risk-based capital ratio			16.03	%			15.84	%			15.60	%			15.55	%			13.43	%
Total risk-based capital ratio			16.72	%			16.52	%			16.32	%			16.25	%			14.50	%

 

Simmons First National Corporation																		SFNC
Consolidated Loans and Investments
For the Quarters Ended		Dec 31				Sep 30				Jun 30				Mar 31				Dec 31
(Unaudited)		2015				2015				2015				2015				2014
($ in thousands)
Legacy Loan Portfolio - End of Period (1)
Consumer
Credit cards		$	177,288			$	171,701			$	174,074			$	171,413			$	185,380
Other consumer			208,380				182,472				160,828				107,486				103,402
Total consumer			385,668				354,173				334,902				278,899				288,782
Real Estate
Construction			279,740				253,761				199,707				178,929				181,968
Single-family residential			696,180				623,089				662,954				507,351				455,563
Other commercial			1,229,072				1,037,559				878,109				716,021				714,797
Total real estate			2,204,992				1,914,409				1,740,770				1,402,301				1,352,328
Commercial
Commercial			500,116				394,422				388,869				324,815				291,820
Agricultural			148,563				170,257				141,502				105,228				115,658
Total commercial			648,679				564,679				530,371				430,043				407,478
Other			7,115				6,017				5,186				4,137				5,133
Total Loans		$	3,246,454			$	2,839,278			$	2,611,229			$	2,115,380			$	2,053,721
(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		$	237,139			$	285,071			$	361,744			$	390,625			$	418,914
Mortgage-backed securities			24,774				25,913				27,146				28,535				29,743
State and political subdivisions			440,676				464,245				471,631				482,316				328,310
Other securities			2,784				1,065				1,075				947				620
Total held-to-maturity			705,373				776,294				861,596				902,423				777,587
Available-for-Sale
U.S. Treasury		$	3,994			$	4,008			$	4,005			$	4,008			$	3,992
U.S. Government agencies			120,237				153,576				236,003				346,315				272,816
Mortgage-backed securities			647,425				502,344				464,857				312,011				1,572
State and political subdivisions			9,874				10,976				10,971				13,452				6,540
FHLB stock			7,823				14,275				13,619				15,256				5,126
Other securities			32,054				18,168				18,246				16,341				15,237
Total available-for-sale			821,407				703,347				747,701				707,383				305,283
Total investment securities		$	1,526,780			$	1,479,641			$	1,609,297			$	1,609,806			$	1,082,870
Fair value - HTM investment securities		$	713,371			$	785,030			$	863,349			$	913,037			$	780,534
Investment Securities - QTD Average
Taxable securities		$	1,043,268			$	1,088,597			$	1,163,708			$	893,946			$	782,062
Tax exempt securities			463,631				478,436				492,118				391,561				342,886
Total investment securities - QTD average		$	1,506,899			$	1,567,033			$	1,655,826			$	1,285,507			$	1,124,948

  

Simmons First National Corporation																		SFNC
Consolidated Loans and Credit Coverage
For the Quarters Ended		Dec 31				Sep 30				Jun 30				Mar 31				Dec 31
(Unaudited)		2015				2015				2015				2015				2014
($ in thousands)
LOANS
Legacy loans		$	3,246,454			$	2,839,278			$	2,611,229			$	2,115,380			$	2,053,721
Allowance for loan losses (legacy loans)			(31,351	)			(30,380	)			(30,567	)			(29,183	)			(29,028	)
Legacy loans (net of allowance)			3,215,103				2,808,898				2,580,662				2,086,197				2,024,693
Loans acquired, not covered by FDIC loss share			1,729,557				2,085,211				2,171,388				2,491,316				621,020
Credit discount			(55,702	)			(70,441	)			(63,082	)			(72,876	)			(45,040	)
Allowance for loan losses (loans acquired, not covered)			(954	)			(954	)			-				-				-
Loans acquired, not covered (net of discount and allowance)			1,672,901				2,013,816				2,108,306				2,418,440				575,980
Loans acquired, covered by FDIC loss share			-				-				114,296				126,629				140,038
Credit discount			-				-				(20,221	)			(23,207	)			(32,151	)
Allowance for loan losses (acquired covered loans)			-				-				(954	)			(954	)			(954	)
Loans acquired, covered (net of discount and allowance)			-				-				93,121				102,468				106,933
Net loans		$	4,888,004			$	4,822,714			$	4,782,089			$	4,607,105			$	2,707,606
Loan Coverage Ratios
Allowance for loan losses to legacy loans			0.97	%			1.07	%			1.17	%			1.38	%			1.41	%
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)			3.28	%			3.42	%			3.69	%			3.71	%			10.27	%
Total allowance and credit coverage (non-GAAP)			1.77	%			2.07	%			2.34	%			2.67	%			3.81	%

 

 

Simmons First National Corporation																		SFNC
Consolidated Allowance and Asset Quality
For the Quarters Ended		Dec 31				Sep 30				Jun 30				Mar 31				Dec 31
(Unaudited)		2015				2015				2015				2015				2014
($ in thousands)
Allowance for Loan Losses (Legacy Loans)
Balance, beginning of quarter		$	30,380			$	30,567			$	29,183			$	29,028			$	27,076
Loans charged off
Credit cards			757				763				802				785				859
Other consumer			489				597				366				220				781
Real estate			845				109				333				293				200
Commercial			654				516				-				245				310
Total loans charged off			2,745				1,985				1,501				1,543				2,150
Recoveries of loans previously charged off
Credit cards			223				213				241				213				220
Other consumer			140				78				187				133				94
Real estate			120				25				46				12				56
Commercial			3				-				9				169				125
Total recoveries			486				316				483				527				495
Net loans charged off			2,259				1,669				1,018				1,016				1,655
Provision for loan losses			3,230				1,482				2,402				1,171				3,607
Balance, end of quarter		$	31,351			$	30,380			$	30,567			$	29,183			$	29,028
Non-performing assets (1) (2)
Non-performing loans
Nonaccrual loans			17,714				15,305				15,565				14,511				12,038
Loans past due 90 days or more			1,191				1,506				1,375				498				961
Total non-performing loans			18,905				16,811				16,940				15,009				12,999
Other non-performing assets
Foreclosed assets held for sale, not covered			44,820				48,073				42,666				50,723				44,856
Other non-performing assets			211				172				242				215				97
Total other non-performing assets			45,031				48,245				42,908				50,938				44,953
Total non-performing assets		$	63,936			$	65,056			$	59,848			$	65,947			$	57,952
Performing TDRs (troubled debt restructurings)		$	2,530			$	1,955			$	1,959			$	2,227			$	2,233
Ratios (1) (2)
Allowance for loan losses to total loans			0.97	%			1.07	%			1.17	%			1.38	%			1.41	%
Allowance for loan losses to non-performing loans			166	%			181	%			180	%			194	%			223	%
Non-performing loans to total loans			0.58	%			0.59	%			0.65	%			0.71	%			0.63	%
Non-performing assets (including performing TDRs)
to total assets			0.88	%			0.89	%			0.81	%			0.87	%			1.30	%
Non-performing assets to total assets			0.85	%			0.86	%			0.79	%			0.84	%			1.25	%
Annualized net charge offs to total loans			0.31	%			0.24	%			0.17	%			0.20	%			0.33	%
Annualized net credit card charge offs to
total credit card loans			1.22	%			1.26	%			1.31	%			1.32	%			1.41	%
Annualized net charge offs to total loans
(excluding credit cards)			0.25	%			0.17	%			0.08	%			0.09	%			0.22	%

 

(1)

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

(2)

Excludes acquired foreclosed assets covered by FDIC loss-share agreements, except for their inclusion in total assets.

 

Simmons First National Corporation																		SFNC
Consolidated - Net Interest Income Analysis
For the Quarters Ended		Dec 31				Sep 30				Jun 30				Mar 31				Dec 31
(Unaudited)		2015				2015				2015				2015				2014
ASSETS
Earning Assets
Interest bearing balances due from banks			0.36	%			0.23	%			0.30	%			0.23	%			0.22	%
Investment securities			2.77	%			2.65	%			2.50	%			2.44	%			2.49	%
Mortgage loans held for sale			4.42	%			4.38	%			3.99	%			4.10	%			4.33	%
Assets held in trading accounts			0.39	%			0.25	%			0.24	%			0.18	%			0.23	%
Loans, including acquired loans			5.75	%			6.27	%			6.03	%			6.11	%			6.55	%
Total interest earning assets			4.87	%			5.20	%			4.82	%			4.68	%			4.98	%
LIABILITIES
Interest bearing liabilities
Interest bearing transaction and
savings accounts			0.24	%			0.24	%			0.24	%			0.21	%			0.17	%
Time deposits			0.55	%			0.55	%			0.56	%			0.56	%			0.58	%
Total interest bearing deposits			0.33	%			0.33	%			0.33	%			0.32	%			0.31	%
Federal funds purchased and securities
sold under agreement to repurchase			0.22	%			0.20	%			0.20	%			0.21	%			0.21	%
Other borrowings			2.57	%			3.63	%			2.58	%			2.32	%			3.23	%
Subordinated debentures			3.09	%			3.19	%			3.56	%			2.66	%			3.08	%
Total interest bearing liabilities			0.43	%			0.48	%			0.44	%			0.42	%			0.43	%
NET INTEREST MARGIN/SPREAD
Net interest spread			4.44	%			4.72	%			4.38	%			4.26	%			4.55	%
Net interest margin - quarter-to-date			4.54	%			4.82	%			4.47	%			4.34	%			4.65	%
Net interest margin - year-to-date			4.57	%			4.58	%			4.42	%			4.34	%			4.47	%

  

Simmons First National Corporation																		SFNC
Consolidated - Selected Financial Data
For the Quarters Ended		Dec 31				Sep 30				Jun 30				Mar 31				Dec 31
(Unaudited)		2015				2015				2015				2015				2014
($ in thousands, except share data)
QUARTER-TO-DATE
Financial Highlights - Core (non-GAAP)
Core earnings (excludes nonrecurring items) (1)		$	25,913			$	25,565			$	22,444			$	15,700			$	11,387
Diluted core earnings per share (1)			0.86				0.85				0.75				0.70				0.64
Core net interest margin (FTE) (2)			3.88	%			3.93	%			3.87	%			3.55	%			3.63	%
Core efficiency ratio (1)			59.35	%			57.54	%			58.51	%			62.24	%			64.32	%
Core return on average assets (1)			1.36	%			1.33	%			1.17	%			1.10	%			0.96	%
Core return on average common equity (1)			9.96	%			10.01	%			8.67	%			9.47	%			9.12	%
Core return on tangible common equity (1)			15.89	%			15.99	%			13.80	%			14.16	%			12.65	%
Financial Highlights - GAAP
Net Income		$	23,782			$	21,598			$	20,018			$	8,709			$	12,639
Diluted earnings per share			0.78				0.72				0.67				0.39				0.72
Return on average assets			1.25	%			1.13	%			1.04	%			0.61	%			1.07	%
Return on average common equity			9.15	%			8.46	%			7.73	%			5.25	%			10.12	%
Return on tangible common equity			14.62	%			13.58	%			12.36	%			8.07	%			14.00	%
Net interest margin (FTE)			4.54	%			4.82	%			4.47	%			4.34	%			4.65	%
FTE adjustment			2,185				2,172				2,303				1,857				1,751
Amortization of intangibles			1,337				1,265				1,388				899				565
Amortization of intangibles, net of taxes			813				769				844				546				343
Average earning assets			6,637,002				6,660,434				6,774,693				5,121,838				4,195,250
Average interest bearing liabilities			5,118,526				5,367,852				5,467,587				4,096,745				3,274,902
Average diluted shares outstanding			30,301,190				30,046,062				29,987,471				22,350,272				18,075,537
Cash dividends declared per common share			0.23				0.23				0.23				0.23				0.22
YEAR-TO-DATE
Financial Highlights - Core (non-GAAP)
Core earnings (excludes nonrecurring items) (1)		$	89,622			$	63,709			$	38,144			$	15,700			$	38,707
Diluted core earnings per share (1)			3.18				2.32				1.46				0.70				2.29
Core net interest margin (FTE) (2)			3.83	%			3.82	%			3.74	%			3.55	%			3.53	%
Core efficiency ratio (1)			59.08	%			59.05	%			60.08	%			62.24	%			67.22	%
Core return on average assets (1)			1.25	%			1.21	%			1.14	%			1.10	%			0.86	%
Core return on average common equity (1)			9.55	%			9.39	%			8.99	%			9.47	%			8.79	%
Core return on tangible common equity (1)			15.05	%			14.73	%			13.96	%			14.16	%			11.89	%
Financial Highlights - GAAP
Net Income		$	74,107			$	50,325			$	28,727			$	8,709			$	35,688
Diluted earnings per share			2.63				1.83				1.10				0.39				2.11
Return on average assets			1.03	%			0.96	%			0.86	%			0.61	%			0.80	%
Return on average common equity			7.90	%			7.41	%			6.77	%			5.25	%			8.11	%
Return on tangible common equity			12.53	%			11.73	%			10.63	%			8.07	%			10.99	%
Net interest margin (FTE)			4.57	%			4.58	%			4.42	%			4.34	%			4.47	%
FTE adjustment			8,517				6,332				4,160				1,857				6,840
Amortization of intangibles			4,889				3,552				2,287				899				1,979
Amortization of intangibles, net of taxes			2,972				2,159				1,390				546				1,203
Average earning assets			6,287,141				6,170,521				5,948,265				5,121,838				3,975,903
Average interest bearing liabilities			5,000,858				4,977,397				4,782,167				4,096,745				3,176,716
Average diluted shares outstanding			28,209,661				27,497,813				26,203,942				22,350,272				16,922,026
Cash dividends declared per common share			0.92				0.69				0.46				0.23				0.88
END OF PERIOD
Book value per share		$	34.49			$	33.89			$	33.26			$	32.93			$	27.38
Tangible book value per share			21.97				21.89				21.19				20.79				20.15
Shares outstanding			30,278,432				29,939,698				29,894,903				29,850,034				18,052,488
Full-time equivalent employees			1,946				1,967				2,043				2,076				1,338
Total number of ATM's			182				183				186				179				124
Total number of financial centers			149				149				152				164				109

 

(1)

Core earnings excludes nonrecurring items, which is a non-GAAP measurement

(2)

Excludes accretable yield adjustment on loans, which is a non-GAAP measurement

  

Simmons First National Corporation																		SFNC
Consolidated - Reconciliation of Core Earnings (non-GAAP)
For the Quarters Ended		Dec 31				Sep 30				Jun 30				Mar 31				Dec 31
(Unaudited)		2015				2015				2015				2015				2014
($ in thousands, except per share data)
QUARTER-TO-DATE
Net Income		$	23,782			$	21,598			$	20,018			$	8,709			$	12,639
Nonrecurring items
Accelerated vesting on retirement agreements			2,209				-				-				-				-
Gain on sale of banking operations			-				(2,110	)			-				-				-
Loss on FDIC loss-share termination			-				7,476				-				-				-
Merger-related costs			1,237				857				1,247				10,419				1,218
Change-in-control payments			-				-				-				-				885
Branch right-sizing			60				304				2,745				35				(4,221	)
Charter consolidation costs			-				-				-				-				42
Tax effect (1)			(1,375	)			(2,560	)			(1,566	)			(3,463	)			824
Net nonrecurring items			2,131				3,967				2,426				6,991				(1,252	)
Core earnings (non-GAAP)		$	25,913			$	25,565			$	22,444			$	15,700			$	11,387
Diluted earnings per share		$	0.78			$	0.72			$	0.67			$	0.39			$	0.72
Nonrecurring items
Accelerated vesting on retirement agreements			0.08				-				-				-				-
Gain on sale of banking operations			-				(0.07	)			-				-				-
Loss on FDIC loss-share termination			-				0.25				-				-				-
Merger-related costs			0.05				0.03				0.04				0.47				0.07
Change-in-control payments			-				-				-				-				0.05
Branch right-sizing			-				0.01				0.09				-				(0.24	)
Charter consolidation costs			-				-				-				-				-
Tax effect (1)			(0.05	)			(0.09	)			(0.05	)			(0.16	)			0.04
Net nonrecurring items			0.08				0.13				0.08				0.31				(0.08	)
Core earnings (non-GAAP)		$	0.86			$	0.85			$	0.75			$	0.70			$	0.64
YEAR-TO-DATE
Net Income		$	74,107			$	50,325			$	28,727			$	8,709			$	35,688
Nonrecurring items
Accelerated vesting on retirement agreements			2,209				-				-				-				-
Gain on sale of merchant services			-				-				-				-				(1,000	)
Gain on sale of banking operations			(2,110	)			(2,110	)			-				-				-
Loss on FDIC loss-share termination			7,476				7,476				-				-				-
Merger-related costs			13,760				12,523				11,666				10,419				7,470
Change-in-control payments			-				-				-				-				885
Branch right-sizing			3,144				3,084				2,780				35				(3,059	)
Charter consolidation costs			-				-				-				-				652
Tax effect (1)			(8,964	)			(7,589	)			(5,029	)			(3,463	)			(1,929	)
Net nonrecurring items			15,515				13,384				9,417				6,991				3,019
Core earnings (non-GAAP)		$	89,622			$	63,709			$	38,144			$	15,700			$	38,707
Diluted earnings per share		$	2.63			$	1.83			$	1.10			$	0.39			$	2.11
Nonrecurring items
Accelerated vesting on retirement agreements			0.08				-				-				-				-
Gain on sale of merchant services			-				-				-				-				(0.06	)
Gain on sale of banking operations			(0.07	)			(0.07	)			-				-				-
Loss on FDIC loss-share termination			0.27				0.27				-				-				-
Merger-related costs			0.49				0.46				0.45				0.47				0.44
Change-in-control payments			-				-				-				-				0.05
Branch right-sizing			0.11				0.11				0.11				-				(0.16	)
Charter consolidation costs			-				-				-				-				0.04
Tax effect (1)			(0.33	)			(0.28	)			(0.20	)			(0.16	)			(0.13	)
Net nonrecurring items			0.55				0.49				0.36				0.31				0.18
Core earnings (non-GAAP)		$	3.18			$	2.32			$	1.46			$	0.70			$	2.29

 

(1)

Effective tax rate of 39.225%, adjusted for non-deductible merger-related costs.

 

Page 11