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Simmons First Announces Third Quarter Earnings

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PINE BLUFF, Ark., Oct. 25, 2012 (GLOBE NEWSWIRE) -- Simmons First National Corporation (Nasdaq: SFNC) today announced net income of $6.8 million and diluted earnings per share of $0.41 for the quarter ended September 30, 2012. Net income for the nine months ended September 30, 2012, was $19.7 million, or $1.16 diluted earnings per share.

On September 14, 2012, the Company announced that its wholly-owned bank subsidiary, Simmons First National Bank, entered into a purchase and assumption agreement with loss share arrangements with the FDIC to purchase $219 million in assets and assume substantially all of the deposits and other liabilities of Truman Bank of St. Louis, Missouri. Another $63 million in Truman Bank assets were acquired through a linked-bid loan sale agreement with the FDIC. The Company recognized a pre-tax bargain purchase gain of $1.1 million on this transaction and incurred pre-tax merger related costs of $815,000. After taxes, the combined non-recurring items from the transactions contributed $185,000 to net income, or $0.01 to diluted earnings per share.

"Excluding the non-recurring items from the Truman Bank acquisition, and other non-recurring items from 2011, quarterly core EPS decreased $0.02, or 4.8%, and year-to-date core EPS increased $0.07, or 6.5%. We are pleased with our third quarter earnings performance. We continue to benefit significantly from strong asset quality, which has resulted in a reduction in our provision for loan losses, and from our on-going efficiency initiatives that resulted in a decrease in our year-to-date non-interest expense," commented J. Thomas May, Chairman and CEO.

Loans

Total loans, including those acquired, were $1.9 billion at September 30, 2012, an increase of $56 million compared to the same period in 2011. "On a quarter over quarter basis, loans acquired in the Truman acquisition were $130 million net of discounts, FDIC covered loans from previous acquisitions declined $66 million, as expected, and legacy loans declined $8 million," commented May.

Legacy loans (excluding acquired loans) increased $8.7 million from the previous quarter end. "This increase was primarily driven by our commercial real estate and seasonality in our agricultural lending, somewhat mitigated by a slight decline in student loans and commercial loan portfolios," added May.

Deposits

At September 30, 2012, total deposits were $2.8 billion, an increase of $160 million, or 6.1%, compared to the same period in 2011. Deposits acquired in the Truman acquisition were $194 million at quarter end. Total non-time deposits totaled $1.9 billion, or 68% of total deposits.

Net Interest Income

The Company's net interest income for the third quarter of 2012 was $27.9 million, a $662,000 increase from the same period of 2011. Included in interest income for the period is the additional yield accretion recognized as a result of updated estimates of the cash flows of the loan pools acquired in the Company's 2010 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 Nine Months Ended
(In thousands) September 30, 2012 September 30, 2012
     
Impact on net interest income $ 2,915 $ 9,104
     
Non-interest income (2,729) (8,245)
     
Net impact to pre-tax income $ 186 $ 859

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 $18.0 million and the remaining adjustment to the indemnification assets that will reduce non-interest income is $15.8 million. Of the remaining adjustments, we expect to recognize $2.6 million of interest income and a $2.4 million reduction of non-interest income, for a net addition to pre-tax income of approximately $182,000 during the remainder of 2012. "While these items create some noise in the quarter, the bottom line is a positive impact of $186,000 for the third quarter and estimated $182,000 for rest of the year," said May. The accretable yield adjustments recorded in future periods will change as we continue to evaluate expected cash flows from the acquired loan pools. Net interest margin was 3.94% for the quarter ended September 30, 2012.

Non-Interest Income

Non-interest income for the third quarter was $11.8 million, compared to $13.7 million for the third quarter of 2011. "As previously discussed, there was a $2.7 million decrease due to reductions of the indemnification assets resulting from increased cash flows expected to be collected from the FDIC covered loan portfolios," reiterated May. "Excluding the indemnification asset adjustment and a non-recurring $1.1 million bargain purchase gain on the Truman Bank acquisition, non-interest income decreased $267,000, or 2.0%."

Non-Interest Expense

Non-interest expense for the third quarter of 2012 was $28.7 million, an increase of $1.1 million compared to the same period in 2011. "Included in the quarter were $815,000 in merger related expenses associated with the Truman Bank acquisition. Excluding the non-recurring item, non-interest expense for the quarter increased $271,000, or 1.0%. Obviously, we continue to have good expense control as a result of the implementation of our efficiency initiatives," added May.

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 September 30, 2012, acquired loans covered by loss share were carried at $164 million, OREO covered by loss share was carried at $26 million and the FDIC loss share indemnification asset was carried at $60 million. Acquired loans and OREO not covered by loss share were carried at $73 million and $6.5 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.

The Company's allowance for loan losses was $28.1 million at September 30, 2012, or 1.73% of total loans and 238% of non-performing loans. Non-performing loans as a percent of total loans were 0.73% as of September 30, 2012, a decrease of 6 basis points from 0.79% as of June 30, 2012. "Because of the Truman Bank acquisition, we reflect an addition of $6.5 million to non-performing assets related to the Truman Bank non-covered OREO we acquired with a very conservative mark. Normalizing for the acquired OREO, our legacy non-performing assets decreased $1.7 million. Our legacy non-performing assets as a percent of total assets of 1.02% as of September 30, 2012 continues to compare favorably to the industry and our peer group," commented May. For the third quarter, the annualized net charge-off ratio, excluding credit cards, was 0.27%, and the annualized credit card charge-off ratio was 1.27%.

Capital

At September 30, 2012, stockholders' equity was $404 million, book value per share was $24.26 and tangible book value per share was $20.47. The Company's ratio of stockholders' equity to total assets was 11.8% and its ratio of tangible stockholders' equity to tangible assets was 10.2%, as of September 30, 2012.

"Our exceptional level of capital puts us in the 84th percentile of our peer group and allows us to actively pursue the right opportunities that meet our strategic plan regarding mergers and acquisitions," continued May. As of September 30, 2012, the Company's regulatory capital ratios remain significantly higher than regulatory "well capitalized" guidelines:

  "Well Capitalized"  SFNC
     
Tier 1 Leverage Ratio 5.00% 11.68%
     
Tier 1 Risk-Based Capital Ratio 6.00% 19.30%
     
Total Risk-Based Capital Ratio 10.00% 20.55%

Stock Repurchase Program

During 2012, the Company has repurchased approximately 608,000 shares at an average price of $24.16. Due to the substantial completion of the existing stock repurchase plan, on July 23, the Board of Directors approved a new stock repurchase program, authorizing the repurchase of up to 850,000 additional shares of stock, which is approximately 5% of the shares outstanding. The Company plans to continue to allocate its earnings, less dividends, to its stock repurchase program.

Missouri Bank Acquisition

Subsequent to quarter end, on October 19, the Company announced that its wholly-owned bank subsidiary, Simmons First National Bank, entered into a purchase and assumption agreement with loss share arrangements with the FDIC to purchase $201 million in assets and assume all of the deposits and substantially all other liabilities of Excel Bank of Sedalia, Missouri, at a discount of $21.0 million and no deposit premium. "Our fourth acquisition was strategic in that it complements the footprint we have been building in the Kansas and Missouri market," commented May on the recent acquisition. "We fully expect to pursue other opportunities to expand our footprint in that geographic region through additional FDIC and/or traditional acquisitions going forward."

Simmons First National Corporation

Simmons First National Corporation is an eight bank financial holding company with community banks in Pine Bluff, Lake Village, Jonesboro, Rogers, Searcy, Russellville, El Dorado and Hot Springs, Arkansas. The Company's eight banks conduct financial operations from 96 offices, of which 92 are financial centers, in 55 communities in Arkansas, Missouri and Kansas, including its recently acquired branches in Missouri. The Company's common stock trades on the NASDAQ Global Select Market under the symbol "SFNC".

The Simmons First National Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4819

Conference Call

Management will conduct a conference call to review this information beginning at 3:00 p.m. Central Time on Thursday, October 25, 2012. Interested persons can listen to this call by dialing 1-888-438-5535 (United States and Canada only) and asking for the Simmons First National Corporation conference call. A replay of the call will be available through 5:00 p.m. Central Time on October 31, 2012, by dialing 1-888-203-1112. The passcode for the replay is 4128323. 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 exclude the effects of the amortization of intangibles and 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.

 

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)  2012  2012  2012  2011  2011
(in thousands)          
ASSETS          
Cash and non-interest bearing balances due from banks  $ 40,356  $ 29,708  $ 34,314  $ 35,087  $ 33,408
Interest bearing balances due from banks  440,524  515,874  642,929  535,119  490,283
Federal funds sold  7,571  --   750  --   -- 
Cash and cash equivalents  488,451  545,582  677,993  570,206  523,691
Investment securities - held-to-maturity  510,630  525,522  481,314  525,444  504,302
Investment securities - available-for-sale  205,051  166,966  176,466  172,212  140,579
Mortgage loans held for sale  23,980  15,495  24,351  22,976  21,037
Assets held in trading accounts  7,002  7,812  7,708  7,541  5,252
Loans:          
Not covered by FDIC loss share agreements  1,623,401  1,614,736  1,543,653  1,579,769  1,631,541
Acquired, not covered by FDIC loss share agreements (net of discounts)  73,023  --   --    --   -- 
Covered by FDIC loss share agreements (net of discounts)  163,657  114,189  129,735  158,075  172,394
Allowance for loan losses  (28,145)  (28,397)  (28,325)  (30,108)  (29,151)
Net loans  1,831,936  1,700,528  1,645,063  1,707,736  1,774,784
FDIC indemnification asset  59,547  35,038   39,978  47,683  51,223
Premises and equipment  85,969  85,171  85,784  86,486  86,972
Foreclosed assets not covered by FDIC loss share agreements  29,665  23,947  24,542  22,887  22,159
Foreclosed assets covered by FDIC loss share agreements  26,466  11,252  11,705  11,685  13,845
Interest receivable  15,253  12,975  13,319  15,126  16,195
Bank owned life insurance  51,681  51,326  50,934  50,579  50,175
Goodwill  60,605  60,605  60,605  60,605  60,605
Core deposit premiums  2,549  1,431  1,505  1,579  1,793
Other assets  16,195  13,494  18,786  17,384  20,736
Total assets  $ 3,414,980  $ 3,257,144  $ 3,320,053  $ 3,320,129  $ 3,293,348
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
Deposits:          
Non-interest bearing transaction accounts  $ 543,380  $ 517,854  $ 521,202  $ 532,259  $ 531,025
Interest bearing transaction accounts and savings deposits  1,343,784  1,290,954  1,282,763  1,239,504  1,194,907
Time deposits less than $100,000  521,259  467,503  485,134  499,809  513,658
Time deposits greater than $100,000  386,872  352,973  365,478  378,825  395,224
Total deposits  2,795,295  2,629,284  2,654,577  2,650,397  2,634,814
Federal funds purchased and securities sold under agreements to repurchase  64,829  70,220  106,224  114,766  98,286
Other borrowings  88,852  90,866   90,312  90,170  92,052
Subordinated debentures  20,620  30,930  30,930  30,930  30,930
Accrued interest and other liabilities  41,136   28,431  28,698  25,955  29,607
Total liabilities  3,010,732  2,849,731  2,910,741  2,912,218  2,885,689
           
Stockholders' equity:          
Common stock   167  170  172  172  173
Surplus  99,156  105,825  110,976  112,436  115,026
Undivided profits  304,343  300,917  297,776  294,864  291,830
Accumulated other comprehensive income          
Unrealized appreciation on AFS securities  582  501  388   439  630
Total stockholders' equity  404,248  407,413  409,312  407,911  407,659
Total liabilities and stockholders' equity  $ 3,414,980  $ 3,257,144  $ 3,320,053  $ 3,320,129  $ 3,293,348
     
     
Simmons First National Corporation    SFNC
Consolidated Average Quarter-to-Date Balance Sheets        
For the Quarters Ended  Sep 30  Jun 30  Mar 31  Dec 31  Sep 30
(Unaudited)  2012  2012  2012  2011  2011
(in thousands)          
ASSETS          
Cash and non-interest bearing balances due from banks  $ 36,603  $ 35,899  $  37,469  $ 35,132  $ 35,202
Interest bearing balances due from banks  479,435  550,512  576,416  546,478  462,333
Federal funds sold  2,850  363  281  99  2,309
Cash and cash equivalents  518,888  586,774  614,166  581,709  499,844
Investment securities - held-to-maturity   496,102  508,293  496,002  501,812  460,951
Investment securities - available-for-sale  178,247  172,539  172,523  173,360  164,468
Mortgage loans held for sale  19,334  17,623  17,076  20,035  12,527
Assets held in trading accounts  7,780  7,831  6,845  7,375   7,428
Loans:          
Not covered by FDIC loss share agreements  1,637,437  1,579,166  1,550,341  1,590,584  1,640,439
Acquired, not covered by FDIC loss share agreements (net of discounts)  12,700  --   --   --   -- 
Covered by FDIC loss share agreements (net of discounts)  117,809  120,695  141,563  168,506  180,884
Allowance for loan losses  (29,228)  (29,339)  (30,896)  (29,730)  (28,299)
Net loans  1,738,718  1,670,522  1,661,008  1,729,360  1,793,024
FDIC indemnification asset  39,476  38,563  44,845  50,180  53,547
Premises and equipment  85,173  85,629  86,187  86,881  83,917
Foreclosed assets not covered by FDIC loss share agreements  24,945  24,322  23,279  22,702  22,292
Foreclosed assets covered by FDIC loss share agreements   14,521  12,079  13,048  12,409  13,467
Interest receivable  13,484  12,877  13,847  16,071  15,376
Bank owned life insurance   51,507  51,133  50,761  50,362  50,116
Goodwill  60,605  60,605  60,605  60,605  60,605
Core deposit premiums  1,614  1,467  1,541  1,685  1,917
Other assets  14,991  15,114  17,952  18,562  20,307
Total assets  $ 3,265,385  $ 3,265,371  $ 3,279,685  $ 3,333,108  $ 3,259,786
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
Deposits:          
Non-interest bearing transaction accounts  $ 504,923  $ 502,884  $ 494,366  $ 535,663  $ 494,982
Interest bearing transaction accounts and savings deposits  1,291,141  1,282,616  1,252,972  1,228,495  1,201,174
Time deposits less than $100,000  477,275  477,588   492,354  508,847  518,855
Time deposits greater than $100,000  361,504  360,233  371,168  388,470  383,688
Total deposits  2,634,843  2,623,321  2,610,860  2,661,475  2,598,699
Federal funds purchased and securities sold under agreements to repurchase  72,381  82,738  108,841  107,750  93,067
Other borrowings  90,307  89,606  89,920  91,552  92,785
Subordinated debentures  30,594  30,930  30,930  30,930  30,930
Accrued interest and other liabilities  30,219  29,077  27,417  31,303  35,683
Total liabilities  2,858,344  2,855,672  2,867,968  2,923,010  2,851,164
Total stockholders' equity  407,041  409,699  411,717  410,098  408,622
Total liabilities and stockholders' equity  $ 3,265,385  $ 3,265,371  $ 3,279,685  $ 3,333,108  $ 3,259,786
     
     
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)  2012  2012  2012  2011  2011
(in thousands, except per share data)          
INTEREST INCOME          
Loans not covered by loss share agreements  $ 23,192  $ 22,358  $ 22,272  $ 23,370  $ 24,366
Loans covered by FDIC loss share agreements  5,041  4,994  5,973  4,513  3,917
Federal funds sold  2  1   --   1  3
Investment securities  3,027  3,313  3,275  3,568  3,539
Mortgage loans held for sale  171  164  153  198  130
Assets held in trading accounts  12  13  12  7  8
Interest bearing balances due from banks  267  349  303  324  243
TOTAL INTEREST INCOME  31,712  31,192  31,988  31,981  32,206
INTEREST EXPENSE          
Time deposits  1,863  2,004  2,269  2,577  2,738
Other deposits  658  676  696  779  856
Federal funds purchased and securities sold under agreements to repurchase  69  77  99  118  113
Other borrowings  792  799  815  826  842
Subordinated debentures  389  385  391  384   378
TOTAL INTEREST EXPENSE  3,771  3,941  4,270  4,684  4,927
NET INTEREST INCOME  27,941  27,251  27,718  27,297   27,279
Provision for loan losses  1,299  775  771  2,831  2,842
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES  26,642   26,476  26,947  24,466  24,437
NON-INTEREST INCOME          
Trust income  1,440  1,240  1,309  1,416  1,370
Service charges on deposit accounts  4,368  3,930  3,865  4,289  4,450
Other service charges and fees  684  738  792  699  695
Mortgage lending income  1,705  1,445  1,294  1,464  1,249
Investment banking income  560  442  699   294  203
Credit card fees  4,104  4,207  4,079  4,318  4,303
Bank owned life insurance income  355  368   355  403  261
Gain on FDIC-assisted transactions  1,120  --   --   --   -- 
Net gain (loss) on assets covered by FDIC loss share agreements  (2,689)  (2,153)  (2,665)  (826)  287
Other income  165  876  995   786  871
TOTAL NON-INTEREST INCOME  11,812  11,093  10,723  12,843  13,689
NON-INTEREST EXPENSE          
Salaries and employee benefits  15,911  16,590  16,824  15,973  15,533
Occupancy expense, net  2,182  2,029  2,081  1,930  2,224
Furniture and equipment expense  1,835  1,608  1,604  1,721  1,763
Other real estate and foreclosure expense  280  194  207  146  215
Deposit insurance  444  457  571  295  211
Merger related costs  815  --   --   --    -- 
Other operating expenses  7,219  7,366  7,350  8,381  7,654
TOTAL NON-INTEREST EXPENSE  28,686  28,244  28,637   28,446  27,600
NET INCOME BEFORE INCOME TAXES  9,768  9,325  9,033  8,863  10,526
Provision for income taxes  3,008  2,789  2,678  2,558  3,269
NET INCOME  $ 6,760  $ 6,536  $ 6,355  $ 6,305  $ 7,257
BASIC EARNINGS PER SHARE  $ 0.41  $ 0.38  $ 0.37  $  0.37  $ 0.42
DILUTED EARNINGS PER SHARE  $ 0.41  $ 0.38  $ 0.37  $ 0.37  $ 0.42
     
     
Simmons First National Corporation    SFNC
Consolidated Statements of Income - Year-to-Date          
For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited)  2012  2012  2012  2011  2011
(in thousands, except per share data)          
INTEREST INCOME          
Loans not covered by loss share agreements  $ 67,822  $ 44,630  $ 22,272  $ 95,713  $ 72,343
Loans covered by FDIC loss share agreements  16,009  10,967  5,973  17,118  12,605
Federal funds sold  4  1  --   6  5
Investment securities  9,615  6,588  3,275  14,583  11,015
Mortgage loans held for sale  487  317  153  503  305
Assets held in trading accounts  37  25  12  33  26
Interest bearing balances due from banks  919  652  303   1,100  776
TOTAL INTEREST INCOME  94,893  63,180  31,988  129,056  97,075
INTEREST EXPENSE          
Time deposits  6,136   4,273  2,269  11,314  8,737
Other deposits  2,029  1,372  696  3,611  2,832
Federal funds purchased and securities sold under agreements to repurchase  248  176  99  450  332
Other borrowings  2,406  1,613  815  3,512   2,686
Subordinated debentures  1,166  777  391  1,509  1,125
TOTAL INTEREST EXPENSE  11,985  8,211  4,270  20,396  15,712
NET INTEREST INCOME  82,908  54,969  27,718  108,660  81,363
Provision for loan losses  2,846  1,546  771  11,676  8,845
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES  80,062  53,423  26,947  96,984  72,518
NON-INTEREST INCOME          
Trust income  3,988  2,549  1,309  5,375  3,959
Service charges on deposit accounts  12,163  7,795  3,865  16,808  12,519
Other service charges and fees  2,211  1,530  792  2,980  2,281
Mortgage lending income  4,441  2,739  1,294  4,188  2,724
Investment banking income  1,700  1,141  699  1,478  1,184
Credit card fees  12,390  8,286  4,079  16,828  12,510
Bank owned life insurance income  1,078  723  355  1,481  1,078
Gain on FDIC-assisted transactions  1,120  --    --   --   -- 
Net gain (loss) on assets covered by FDIC loss share agreements  (7,507)  (4,818)  (2,665)  154  980
Other income   2,037  1,871  995  4,173  3,387
TOTAL NON-INTEREST INCOME  33,621  21,816  10,723  53,465  40,622
NON-INTEREST EXPENSE          
Salaries and employee benefits  49,323  33,414  16,824  65,058  49,085
Occupancy expense, net  6,291  4,110  2,081  8,443   6,513
Furniture and equipment expense  5,047  3,212  1,604  6,633  4,912
Other real estate and foreclosure expense  681  401   207  678  532
Deposit insurance  1,472  1,028  571  2,387  2,092
Merger related costs  815  --   --   357  357
Other operating expenses  21,928  14,716  7,350  31,094  22,713
TOTAL NON-INTEREST EXPENSE  85,557  56,881  28,637  114,650  86,204
NET INCOME BEFORE INCOME TAXES  28,126  18,358  9,033  35,799  26,936
Provision for income taxes  8,475  5,467  2,678  10,425  7,867
NET INCOME  $ 19,651  $ 12,891  $ 6,355  $ 25,374  $ 19,069
BASIC EARNINGS PER SHARE  $ 1.16  $ 0.75  $ 0.37  $ 1.47  $ 1.10
DILUTED EARNINGS PER SHARE  $ 1.16  $ 0.75  $ 0.37  $ 1.47  $ 1.10
     
     
Simmons First National Corporation    SFNC
Consolidated Risk-Based Capital          
For the Quarters Ended  Sep 30  Jun 30  Mar 31  Dec 31  Sep 30
(Unaudited)  2012  2012  2012  2011  2011
(in thousands)          
Tier 1 capital          
Stockholders' equity  $ 404,248  $ 407,413  $ 409,312  $ 407,911  $ 407,659
Trust preferred securities, net allowable  20,000   30,000  30,000  30,000  30,000
Disallowed intangible assets, net of deferred tax  (48,053)  (47,235)  (47,607)  (47,889)  (48,403)
Unrealized gain on AFS securities  (582)  (501)  (388)  (439)  (630)
           
Total Tier 1 capital  375,613  389,677  391,317  389,583  388,626
           
Tier 2 capital          
Qualifying unrealized gain on AFS equity securities  14  15  14  9   6
Qualifying allowance for loan losses  24,395  22,910  22,096  22,682  23,337
           
Total Tier 2 capital  24,409   22,925  22,110  22,691  23,343
           
Total risk-based capital  $ 400,022  $ 412,602  $ 413,427  $ 412,274  $ 411,969
           
Risk weighted assets  $ 1,946,344  $ 1,825,808  $ 1,759,932  $ 1,805,585  $ 1,859,657
           
Adjusted average assets for leverage ratio  $ 3,216,488  $ 3,217,291  $ 3,231,257  $ 3,284,379  $  3,210,283
           
Ratios at end of quarter          
Equity to assets 11.84% 12.51% 12.33% 12.29% 12.38%
Tangible common equity to tangible assets 10.18% 10.81% 10.66% 10.61% 10.69%
Tier 1 leverage ratio 11.68% 12.11% 12.11% 11.86% 12.11%
Tier 1 risk-based capital ratio 19.30% 21.34% 22.23% 21.58% 20.90%
Total risk-based capital ratio 20.55% 22.60% 23.49% 22.83% 22.15%
     
     
Simmons First National Corporation    SFNC
Consolidated Loans and Investments          
For the Quarters Ended  Sep 30  Jun 30  Mar 31  Dec 31  Sep 30
(Unaudited)  2012  2012  2012  2011  2011
(in thousands)          
Legacy Loan Portfolio - End of Period (1)          
Consumer          
Credit cards  $ 175,760  $ 176,325  $ 175,013  $ 189,970  $ 182,886
Student loans  36,441  39,823  44,059  47,419  50,620
Other consumer  107,604  107,284  110,001  109,211  112,947
Total consumer  319,805  323,432  329,073  346,600  346,453
Real Estate          
Construction  128,423  117,235  109,979  109,825  113,317
Single-family residential  355,976  355,978  349,009  355,094  353,917
Other commercial  546,224  550,418  537,807  536,372   550,410
Total real estate  1,030,623  1,023,631  996,795  1,001,291  1,017,644
Commercial          
Commercial  138,719  140,868  144,772   141,422  138,724
Agricultural  130,727  122,245  69,598  85,728  123,873
Total commercial  269,446  263,113  214,370  227,150  262,597
Other  3,527  4,560  3,415  4,728  4,847
Total Loans  $ 1,623,401  $ 1,614,736  $ 1,543,653  $ 1,579,769  $ 1,631,541
           
(1) Excludes all acquired loans, including those covered by FDIC loss share agreements.    
           
Investment Securities - End of Period          
Held-to-Maturity          
U.S. Treasury  $ --   $ --   $ 4,000  $ 4,000  $ 4,000
U.S. Government agencies  303,640  315,493  267,991  308,779  291,795
Mortgage-backed securities  51  56  59  62  67
State and political subdivisions  206,319  209,043  208,334  211,673  207,510
Other securities  620  930  930  930  930
Total held-to-maturity  510,630   525,522  481,314  525,444  504,302
Available-for-Sale          
U.S. Government agencies  164,467  148,837  157,631  153,627  121,939
Mortgage-backed securities  24,333  2,493  2,528  2,557  2,624
FHLB stock  5,788  5,578  6,241  6,237   6,231
Other securities  10,463  10,058  10,066  9,791  9,785
Total available-for-sale  205,051  166,966  176,466   172,212  140,579
Total investment securities  $ 715,681  $ 692,488  $ 657,780  $ 697,656  $ 644,881
Fair value - HTM investment securities  $ 516,419  $  531,499  $ 486,743  $ 532,206  $ 511,617
           
Investment Securities - QTD Average          
Taxable securities  $ 467,988  $ 471,826  $ 459,164  $ 466,369  $ 418,179
Tax exempt securities  206,361  209,006  209,361  208,803  207,240
Total investment securities - QTD average  $ 674,349  $ 680,832  $ 668,525  $ 675,172  $ 625,419
     
     
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)  2012  2012  2012  2011  2011
(in thousands)          
Allowance for Loan Losses          
Balance, beginning of quarter  $ 28,397  $ 28,325  $ 30,108  $ 29,151  $ 27,796
Loans charged off          
Credit cards  806  829  997  1,262  1,140
Other consumer  358   252  226  530  450
Real estate  773  78  2,539  885  255
Commercial  86  165  129  226  345
Total loans charged off  2,023  1,324  3,891  2,903  2,190
           
Recoveries of loans previously charged off          
Credit cards  242  212  210  244  261
Other consumer  107  135  156  100  219
Real estate  61  248  930  436  151
Commercial  62   26  41  249  72
Total recoveries  472  621  1,337  1,029  703
Net loans charged off  1,551  703  2,554  1,874  1,487
Provision for loan losses  1,299  775  771  2,831   2,842
Balance, end of quarter  $ 28,145  $ 28,397  $ 28,325  $ 30,108  $ 29,151
           
Non-performing assets (1) (2)          
Non-performing loans          
Nonaccrual loans          
Real estate  $ 6,197  $ 6,851  $ 6,898  $ 10,315  $ 12,810
Commercial  894  676  942  1,253  1,177
Consumer  1,389  1,462  1,299  1,339  1,356
Total nonaccrual loans  8,480  8,989  9,139  12,907  15,343
Loans past due 90 days or more          
Government guaranteed student loans  2,324  3,275  3,434  2,483  2,496
Other loans  1,001  509  606  785  777
Total loans past due 90 days or more  3,325  3,784  4,040   3,268  3,273
Total non-performing loans  11,805  12,773  13,179  16,175  18,616
Other non-performing assets          
Foreclosed assets held for sale  23,126  23,947  24,542  22,887  22,159
Acquired foreclosed assets held for sale, not covered by FDIC loss share agreements   6,539  --   --   --   -- 
Other non-performing assets  60  --   1  --    191
Total other non-performing assets  29,725  23,947  24,543  22,887  22,350
Total non-performing assets  $ 41,530  $ 36,720  $ 37,722  $ 39,062  $ 40,966
Performing TDRs (troubled debt restructurings)  $ 10,995  $ 11,492  $ 11,531  $ 11,391  $ 10,393
           
Ratios (1) (2)          
Allowance for loan losses to total loans 1.73% 1.76% 1.83% 1.91% 1.79%
Allowance for loan losses to non-performing loans 238% 222% 215% 186% 157%
Non-performing loans to total loans 0.73% 0.79% 0.85% 1.02% 1.14%
Non-performing assets (including performing TDRs) to total assets 1.54% 1.48% 1.48% 1.52% 1.56%
Non-performing assets to total assets 1.22% 1.13% 1.14% 1.18% 1.24%
Non-performing assets to total assets (excluding Gov't guaranteed student loans) 1.15% 1.03% 1.03% 1.10% 1.17%
Annualized net charge offs to total loans 0.38% 0.18% 0.66% 0.47% 0.36%
Annualized net credit card charge offs to total credit card loans 1.27% 1.42% 1.75% 2.20% 1.94%
Annualized net charge offs to total loans (excluding credit cards) 0.27% 0.02% 0.52% 0.24% 0.17%
Past due loans >30 days (excluding nonaccrual) 0.75% 0.68% 0.83% 0.82% 0.71%
Past due loans >30 days (excluding nonaccrual) (excluding Gov't guaranteed student loans) 0.48% 0.42% 0.47% 0.56% 0.46%
           
 (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  Sep 30  Jun 30  Mar 31  Dec 31  Sep 30
(Unaudited)  2012  2012  2012  2011  2011
           
ASSETS          
           
Earning Assets          
Interest bearing balances due from banks 0.22% 0.25% 0.21% 0.24% 0.21%
Investment securities 2.46% 2.66% 2.69% 2.81% 3.02%
Mortgage loans held for sale 3.52% 3.74% 3.60% 3.92% 4.12%
Assets held in trading accounts 0.61% 0.67% 0.71% 0.38% 0.43%
Loans, including covered loans* 6.40% 6.47% 6.72% 6.29% 6.16%
Total interest earning assets 4.45% 4.41% 4.51% 4.38% 4.53%
           
           
LIABILITIES          
           
Interest bearing liabilities          
Interest bearing transaction and savings accounts 0.20% 0.21% 0.22% 0.25% 0.28%
Time deposits 0.88% 0.96% 1.06% 1.14% 1.20%
Total interest bearing deposits 0.47% 0.51% 0.56% 0.63% 0.68%
Federal funds purchased and securities sold under agreement to repurchase 0.38% 0.37% 0.37% 0.43% 0.48%
Other borrowings 3.49% 3.59% 3.65% 3.58% 3.60%
Subordinated debentures 5.06% 5.01% 5.08% 4.93% 4.85%
Total interest bearing liabilities 0.65% 0.68% 0.73% 0.79% 0.84%
           
NET INTEREST MARGIN/SPREAD          
           
Net interest spread 3.80% 3.73% 3.78% 3.59% 3.69%
Net interest margin - quarter-to-date 3.94% 3.87% 3.93% 3.76% 3.86%
Net interest margin - year-to-date 3.91% 3.90% 3.93% 3.85% 3.87%
           
* Covered loans are loans covered by FDIC loss share agreements.
     
     
Simmons First National Corporation    SFNC
Consolidated - Selected Financial Data          
For the Quarters Ended  Sep 30  Jun 30  Mar 31  Dec 31  Sep 30
(Unaudited)  2012  2012  2012  2011  2011
(in thousands, except share data)          
QUARTER-TO-DATE          
Diluted earnings per share  $ 0.41  $ 0.38  $ 0.37  $ 0.37  $ 0.42
Core earnings (excludes nonrecurring items) (non-GAAP)  6,575  6,536  6,355  6,305  7,257
Diluted core earnings per share (non-GAAP)  0.40   0.38  0.37  0.37  0.42
Cash dividends declared per common share  0.20  0.20  0.20  0.19  0.19
Cash dividends declared - amount  3,334  3,395  3,444  3,271  3,296
Return on average stockholders' equity 6.61% 6.42% 6.21% 6.10% 7.05%
Return on tangible equity 7.85% 7.61% 7.36% 7.34% 8.47%
Return on average assets 0.82% 0.81% 0.78% 0.75% 0.88%
Net interest margin (FTE) 3.94% 3.87% 3.93% 3.76% 3.86%
FTE adjustment - investments   1,138  1,196  1,192  1,219  1,221
FTE adjustment - loans  11  12  11  12  12
Amortization of intangibles  74  74  74  214  222
Amortization of intangibles, net of taxes  45  45   45  130  135
Average shares outstanding  16,756,589  17,044,160  17,215,027  17,250,718  17,348,460
Average earning assets  2,938,994  2,957,022  2,961,047  3,008,249  2,931,339
Average interest bearing liabilities  2,323,202  2,323,711  2,346,185  2,356,044  2,320,499
           
YEAR-TO-DATE          
Diluted earnings per share  $ 1.16  $ 0.75  $ 0.37  $ 1.47  $ 1.10
Core earnings (excludes nonrecurring items) (non-GAAP)  19,466  12,891   6,355  24,988  18,683
Diluted core earnings per share (non-GAAP)  1.15  0.75  0.37  1.45  1.08
Cash dividends declared per common share  0.60  0.40  0.20  0.76  0.57
Cash dividends declared - amount  10,173  6,839   3,444  13,156  9,885
Return on average stockholders' equity 6.41% 6.31% 6.21% 6.25% 6.30%
Return on tangible equity 7.61% 7.49% 7.36% 7.54% 7.61%
Return on average assets 0.80% 0.79% 0.78% 0.77% 0.78%
Net interest margin (FTE) 3.91% 3.90% 3.93% 3.85% 3.87%
FTE adjustment - investments  3,526  2,388  1,192  4,920  3,701
FTE adjustment - loans  34  23  11  50  38
Amortization of intangibles  222  148  74   884  670
Amortization of intangibles, net of taxes  135  90  45  537  407
Average shares outstanding  17,004,351  17,129,593  17,215,027  17,309,488  17,329,293
Average diluted shares outstanding  17,007,623  17,134,232  17,223,085  17,317,850  17,338,676
Average earning assets   2,952,324  2,959,034  2,961,047  2,954,285  2,936,297
Average interest bearing liabilities  2,331,032  2,334,948  2,346,185  2,362,028  2,364,023
           
END OF PERIOD          
Book value per share  $ 24.26  $ 24.03  $ 23.82  $ 23.70  $ 23.52
Tangible book value per share  20.47  20.37  20.21  20.09  19.92
Shares outstanding  16,660,278  16,956,991  17,182,526  17,212,317  17,329,775
Full-time equivalent employees  1,073  1,074  1,077  1,083  1,070
Total number of ATM's  106  102  102  102  102
Total number of financial centers  88  84  84  84  84
Parent company only - investment in subsidiaries  387,944  386,441  384,713  381,236  379,331
Parent company only - intangible assets  133  133  133  133  133
     
     
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)  2012  2012  2012  2011  2011
(in thousands, except per share data)          
QUARTER-TO-DATE          
Net Income  $ 6,760  $ 6,536  $ 6,355  $ 6,305  $ 7,257
Nonrecurring items          
Gain on FDIC assisted transactions  (1,120)  --   --   --   -- 
Merger related costs  815  --   --    --   -- 
Tax effect  120  --   --   --   -- 
Net nonrecurring items  (185)  --   --   --   -- 
Core earnings (non-GAAP)  $ 6,575  $ 6,536  $ 6,355  $ 6,305  $ 7,257
           
Diluted earnings per share  $  0.41  $ 0.38  $ 0.37  $ 0.37  $ 0.42
Nonrecurring items          
Gain on FDIC assisted transactions  (0.07)  --   --    --   -- 
Merger related costs  0.05  --   --   --   -- 
Tax effect  0.01  --    --   --   -- 
Net nonrecurring items  (0.01)  --   --   --   -- 
Diluted core earnings per share (non-GAAP)  $ 0.40  $ 0.38  $ 0.37  $ 0.37  $ 0.42
           
YEAR-TO-DATE          
Net Income  $ 19,651  $ 12,891  $ 6,355  $ 25,374  $ 19,069
Nonrecurring items          
Gain on sale of MasterCard stock (1)  --   --   --   (1,132)  (1,132)
Gain on FDIC assisted transactions  (1,120)  --   --   --   -- 
Merger related costs  815  --   --   357  357
Branch right sizing  --   --   --   141  141
Tax effect  120  --   --   248   248
Net nonrecurring items  (185)  --   --   (386)  (386)
Core earnings (non-GAAP)  $ 19,466  $ 12,891  $ 6,355  $ 24,988  $ 18,683
           
Diluted earnings per share  $ 1.16  $ 0.75  $ 0.37  $ 1.47  $ 1.10
Nonrecurring items          
Gain on sale of MasterCard stock (1)  --   --   --   (0.07)  (0.07)
Gain on FDIC assisted transactions  (0.07)  --   --   --    -- 
Merger related costs  0.05  --   --   0.02  0.02
Branch right sizing  --   --   --   0.01  0.01
Tax effect  0.01  --   --   0.02  0.02
Net nonrecurring items  (0.01)  --    --   (0.02)  (0.02)
Diluted core earnings per share (non-GAAP)  $ 1.15  $ 0.75  $ 0.37  $ 1.45  $ 1.08
           
 (1) Gain from liquidation of Class B shares received as part of MasterCard's 2006 IPO.
CONTACT: DAVID W. GARNER Senior Vice President and Investor Relations Officer Simmons First National Corporation (870) 541-1000

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