Market Overview

Simmons Reports Fourth Quarter 2017 Earnings

Share:

PINE BLUFF, Ark., Jan. 22, 2018 (GLOBE NEWSWIRE) -- Simmons First National Corporation (NASDAQ:SFNC) today announced net income available to common shareholders of $18.9 million, or $0.43 per diluted share, for the quarter ended December 31, 2017, compared to $27.0 million, or $0.85 per diluted share, for the same period in 2016.  Included in fourth quarter 2017 results was $14.2 million in merger-related and branch right-sizing costs, a $5.0 million donation to Simmons Foundation and a one-time tax adjustment of $11.5 million.

As a result of the "Tax Cuts and Jobs Act" that was signed into law on December 22, 2017, the Company was required to revalue its deferred tax assets and deferred tax liabilities to account for the future impact of lower corporate tax rates on these deferred amounts. The analysis resulted in a one-time non-cash charge to the income statement of $11.5 million.

Excluding the net after-tax impact of these items, core earnings were $42.0 million, or $0.97 per diluted share, for the quarter ended December 31, 2017, compared to $28.8 million, or $0.91 per diluted share, for the quarter ended December 31, 2016.

Year-to-date net income was $92.9 million, or $2.66 diluted earnings per share. Excluding the net after-tax merger-related and branch right-sizing costs, tax adjustment and the gain on sale of insurance lines recorded in the prior quarter, year-to-date core earnings were $119.0 million, or $3.41 diluted core earnings per share.

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

"We welcome our newest associates from Bank SNB and Southwest Bank and are pleased with our integration efforts thus far. We look forward to continued growth and profitability in their legacy markets," said George A. Makris, Jr., chairman and CEO.

Makris continued, "The effect of the tax law changes has allowed us the opportunity to consider an increased investment in our associates which will include, among a variety of initiatives, an increase in the profit-sharing component of our 401(k) plan and increased consideration for our high-performing associates; an investment in technology of up to $100 million over 5 years to improve our delivery of products and services to our customers; an investment in our communities as evidenced by our $5 million contribution to our Foundation to support CRA qualified community development grants throughout our footprint; and finally a strategy to provide a return on the investment of our shareholders through retention and deployment of additional capital to grow our business while at the same time increasing the dividend we distribute to our shareholders.

"These investments reflect our optimism for Simmons and we believe will help us achieve the growth potential we envision for our company," said Makris.

"Late last week we announced a 2 for 1 stock split which we believe will create investment opportunities for a wide variety of investors. Our retail ownership is approximately 50% and we believe it is a valuable dynamic to have owners as customers and vice-versa. We also announced a 20% increase in our dividend over the previous quarter."

Financial statements, including earnings per share as well as other share-related disclosures, reported after the stock split record date of January 30, 2018, will include the impact of the stock split on all periods presented.

Selected Highlights:   4th Qtr 2017   3rd Qtr 2017   4th Qtr 2016
                 
Net income   $18.9 million   $28.9 million   $27.0 million
Diluted earnings per share   $0.43   $0.89   $0.85
Return on avg assets   0.54%   1.25%   1.29%
Return on avg common equity   3.88%   9.12%   9.27%
Return on tangible common equity   7.53%   14.47%   14.71%
Net interest margin(1)   4.21%   3.91%   4.12%
             
Core earnings(2)   $42.0 million   $27.7 million   $28.8 million
Diluted core earnings per share(2)   $0.97   $0.86   $0.91
Core return on avg assets(2)   1.20%   1.20%   1.38%
Core return on avg common equity(2)   8.63%   8.77%   9.89%
Core return on tangible common equity(2)   15.97%   13.93%   15.65%
Core net interest margin(1)(2)   3.70%   3.77%   3.76%
               
Efficiency ratio   51.36%   55.06%   55.47%
(1) Fully tax equivalent.  
(2) Core earnings excludes non-core items, which is a non-GAAP measurement.  
   


Loans            
    4th Qtr 2017    3rd Qtr 2017   4th Qtr 2016
               
Total loans   $10.8 billion   $6.3 billion   $5.6 billion
Legacy loans (all loans excluding loans acquired)   $5.7 billion   $5.2 billion   $4.3 billion
Loans acquired   $5.1 billion   $1.1 billion   $1.3 billion
             

Total loans, including those acquired, were $10.8 billion at December 31, 2017, an increase of $5.2 billion, or 91.4% from December 31, 2016. 

On a linked-quarter basis (December 31, 2017 compared to September 30, 2017), total loans increased $4.5 billion, or 71.0%.  The increase was due to:

  • $4.2 billion increase in loans acquired on October 19th
  • $193 million net increase in loans at Southwest Bank since merger
  • $54 million net increase in loans at Bank SNB since merger
  • $118 million net increase in loans at Simmons Bank
  • $26 million decrease in liquidating portfolio (indirect lending and consumer finance)
  • $65 million decrease from seasonal agricultural loan payoffs
Deposits            
    4th Qtr 2017    3rd Qtr 2017   4th Qtr 2016
             
Total deposits   $11.1 billion   $7.3 billion   $6.7 billion
Non-time deposits   $9.2 billion   $6.0 billion   $5.4 billion
Time deposits   $1.9 billion   $1.3 billion   $1.3 billion
             

At December 31, 2017, total deposits were $11.1 billion, an increase of 64.7%, compared to the same period in 2016. The increase is from the recent acquisitions and growth in core deposits.  Total non-time deposits increased 68.1% compared to the same period in 2016, and comprised 82.6% of total deposits.

Net Interest Income

The Company's net interest income for the fourth quarter of 2017 was $126.9 million, an increase of $52.6 million, or 70.8%, from the same period of 2016. Included in interest income was the yield accretion recognized on loans acquired of $15.7 million and $6.6 million for the fourth quarters of 2017 and 2016, respectively. Net interest margin was 4.21% for the quarter ended December 31, 2017, a 9 basis point increase from the same quarter of 2016. The Company's core net interest margin, excluding the accretion, was 3.70% for the fourth quarter of 2017, a 6 basis point decline from December 31, 2016 and a 7 basis point decrease from September 30, 2017.  Cost of interest bearing deposits was 0.63% for the fourth quarter of 2017, a 32 basis point increase from December 31, 2016 and a 20 basis point increase from September 30, 2017.

Non-Interest Income

Non-interest income for the fourth quarter 2017 was $36.6 million, an increase of $514,000 compared to the fourth quarter of 2016. The increase was primarily due to additional trust income, service charge and fee income resulting from the acquisitions. These increases were partially offset by the following items included in non-interest income:

  • $315,000 decrease in insurance income, due to the sale of the property and casualty lines of business in the third quarter of 2017
  • $566,000 decrease in the gain on sale of SBA loans
  • $2.7 million decrease in gain on sale of securities

Non-Interest Expense

Non-interest expense for the fourth quarter of 2017 was $108.5 million, an increase of $41.8 million compared to the fourth quarter of 2016. Included in this quarter were $14.2 million of merger-related expenses and branch rightsizing costs. Also included was a $5 million donation to Simmons Foundation.  Excluding these expenses, core non-interest expense was $89.3 million.

The increases during the quarter were driven by incremental increases in operating expenses related to the additions of Bank SNB and Southwest Bank during the quarter and First South Bank which closed earlier in 2017. The efficiency ratio for the fourth quarter 2017 was 51.36%.

Asset Quality            
             
    4th Qtr 2017     3rd Qtr 2017     4th Qtr 2016
                   
Allowance for loan losses on loans to total loans   0.73 %   0.82 %   0.84 %
Allowance for loan losses on loans to non-performing loans   90 %   78 %   92 %
Non-performing loans to total loans   0.81 %   1.05 %   0.91 %
Net charge-off ratio (annualized)   0.53 %   0.32 %   0.20 %
Net charge-off ratio excluding credit cards   0.51 %   0.27 %   0.14 %

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

At December 31, 2017, the allowance for loan losses for legacy loans was $41.7 million. The allowance for loan losses for loans acquired was $418,000 and the acquired loan discount credit mark was $89.3 million. The allowances for loan losses and credit marks provide a total of $131.4 million of coverage, which equates to a total coverage ratio of 1.2% of gross loans. The ratio of credit mark and related allowance to loans acquired was 1.7%.

Provision for loan losses for the fourth quarter of 2017 was $9.6 million, an increase of $5.3 million compared to December 31, 2016.

Foreclosed Assets and Other Real Estate Owned

At December 31, 2017, foreclosed assets and other real estate owned were $32.1 million, an increase of $5.2 million, or 19.4%, compared to the same period in 2016. The composition of these assets is divided into three types:    

             
    4th Qtr 2017    3rd Qtr 2017   4th Qtr 2016
               
Closed bank branches, branch sites & associate relocation   $9.8 million   $12.8 million   $6.1 million
Legacy loans (all loans excluding loans acquired)   $16.0 million   $11.1 million   $12.0 million
Loans acquired   $6.3 million   $7.6 million   $8.8 million
             
             


Capital            
    4th Qtr 2017    3rd Qtr 2017   4th Qtr 2016
                   
Stockholders' equity to total assets   13.9%   13.2%   13.7%
Tangible common equity to tangible assets   8.1%   9.1%   9.4%
Regulatory tier 1 leverage ratio   9.2%   10.6%   11.0%
Regulatory total risk-based capital ratio   11.6%   13.5%   15.1%
                   

At December 31, 2017, common stockholders' equity was $2.1 billion, book value per share was $45.30 and tangible book value per share was $24.68.  

Simmons First National Corporation

Simmons First National Corporation is a financial holding company, headquartered in Pine Bluff, Arkansas, with total assets of $15.1 billion as of December 31, 2017 conducting financial operations throughout Arkansas, Colorado, Kansas, Missouri, Oklahoma, Tennessee and Texas.  The Company, through its subsidiaries, offers comprehensive financial solutions delivered with a client-centric approach. The Company's common stock trades on the NASDAQ Global Select Market under the symbol "SFNC."

Conference Call

Management will conduct a live conference call to review this information beginning at 9:00 a.m. CST on Tuesday, January 23, 2018. 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 9490927. In addition, the call will be available live or in recorded version on the Company's website at www.simmonsbank.com.

Non-GAAP Financial Measures

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

Forward-Looking Statements

Statements in this news release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any forward-looking statement speaks only as of the date of this news release, and we undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors, including, but not limited to, economic conditions, credit quality, interest rates, loan demand, changes in the assumptions used in making the forward-looking statements, and the Company's ability to manage and successfully integrate its mergers and acquisitions could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect Simmons First National 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
EVP and Investor Relations Officer
Simmons First National Corporation
(870) 541-1000

           
           
Simmons First National Corporation           SFNC 
 Consolidated End of Period Balance Sheets           
 For the Quarters Ended   Dec 31   Sep 30   Jun 30   Mar 31   Dec 31 
 (Unaudited)     2017         2017         2017         2017         2016   
($ in thousands)                                      
 ASSETS                                       
Cash and non-interest bearing balances due from banks $ 205,025     $ 108,675     $ 112,567     $ 103,875     $ 117,007  
Interest bearing balances due from banks and federal funds sold   393,017       323,615       217,047       201,406       168,652  
Cash and cash equivalents   598,042       432,290       329,614       305,281       285,659  
Interest bearing balances due from banks - time   3,314       4,059       6,057       4,563       4,563  
Investment securities - held-to-maturity   368,058       406,033       419,003       431,176       462,096  
Investment securities - available-for-sale   1,589,517       1,317,420       1,190,600       1,257,813       1,157,354  
Mortgage loans held for sale   24,038       12,614       16,266       9,754       27,788  
Assets held in trading accounts   -       49       50       55       41  
Other assets held for sale   165,780       182,378       -       -       -  
Loans:                                      
Legacy loans   5,705,609       5,211,312       5,000,572       4,632,905       4,327,207  
Allowance for loan losses   (41,668 )     (42,717 )     (41,379 )     (37,865 )     (36,286 )
Loans acquired, net of discount and allowance     5,074,076         1,092,039         1,224,739         1,144,291         1,305,683  
Net loans   10,738,017       6,260,634       6,183,932       5,739,331       5,596,604  
Premises and equipment   287,249       224,376       230,641       221,880       199,359  
Premises held for sale   -       -       -       4,611       6,052  
Foreclosed assets and other real estate owned   32,118       31,477       26,012       26,421       26,895  
Interest receivable   43,528       30,749       27,337       26,089       27,788  
Bank owned life insurance   185,984       148,984       148,134       139,439       138,620  
Goodwill   842,651       375,731       379,437       350,035       348,505  
Other intangible assets   106,071       55,501       58,528       51,408       52,959  
Other assets     71,439         53,075         52,697         58,782         65,773  
Total assets $   15,055,806     $   9,535,370     $   9,068,308     $   8,626,638     $   8,400,056  
                                       
 LIABILITIES AND STOCKHOLDERS' EQUITY                                       
Deposits:                                      
 Non-interest bearing transaction accounts  $   2,665,249     $   1,669,860     $   1,650,986     $   1,554,675     $   1,491,676  
 Interest bearing transaction accounts and savings deposits      6,494,896         4,344,779         4,141,426         3,987,730         3,956,483  
 Time deposits less than $100,000      1,196,760         675,186         645,855         653,538         686,780  
 Time deposits greater than $100,000      735,970         635,765         665,268         592,345         600,280  
Total deposits      11,092,875         7,325,590         7,103,535         6,788,288         6,735,219  
 Federal funds purchased and securities sold                                       
 under agreements to repurchase      122,444         121,687         121,419         110,007         115,029  
 Other borrowings      1,380,024         522,541         474,962         441,074         273,159  
 Subordinated debentures      140,565         67,418         67,312         60,503         60,397  
 Other liabilities held for sale      157,366         176,964         -          -          -   
 Accrued interest and other liabilities      77,968         63,971         67,004         55,877         65,141  
 Total liabilities      12,971,242         8,278,171         7,834,232         7,455,749         7,248,945  
                                       
 Stockholders' equity:                                       
 Common stock      460         322         322         314         313  
 Surplus      1,586,494         763,443         761,754         716,564         711,976  
 Undivided profits      511,858         504,085         483,322         468,309         454,034  
 Accumulated other comprehensive income (loss):                                       
 Unrealized appreciation (depreciation) on AFS securities      (14,248 )       (10,651 )       (11,322 )       (14,298 )       (15,212 )
 Total stockholders' equity      2,084,564         1,257,199         1,234,076         1,170,889         1,151,111  
 Total liabilities and stockholders' equity  $   15,055,806     $   9,535,370     $   9,068,308     $   8,626,638     $   8,400,056  
                                       
 Page 1 
           
           


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)     2017         2017         2017         2017        2016   
($ in thousands, except per share data)                                      
 INTEREST INCOME                                       
Loans $ 132,617     $ 77,457     $ 73,549     $ 68,728     $ 70,887  
Interest bearing balances due from banks and federal funds sold   947       650       214       122       245  
Investment securities   11,456       9,218       9,990       9,451       8,700  
Mortgage loans held for sale   175       159       145       126       230  
Assets held in trading accounts     -          -          -          -          3  
TOTAL INTEREST INCOME     145,195         87,484         83,898         78,427         80,065  
 INTEREST EXPENSE                                       
Time deposits   3,944       2,110       1,832       1,758       2,023  
Other deposits   8,762       3,920       2,984       2,446       2,032  
Federal funds purchased and securities                                      
sold under agreements to repurchase   97       83       92       75       90  
Other borrowings   3,993       1,875       1,559       1,194       1,034  
Subordinated debentures     1,480         677         619         574         558  
TOTAL INTEREST EXPENSE     18,276         8,665         7,086         6,047         5,737  
 NET INTEREST INCOME      126,919         78,819         76,812         72,380         74,328  
Provision for loan losses     9,601         5,462         7,023         4,307         4,332  
 NET INTEREST INCOME AFTER PROVISION                                       
  FOR LOAN LOSSES      117,318         73,357         69,789         68,073         69,996  
 NON-INTEREST INCOME                                       
Trust income     6,020         4,225         4,113         4,212         4,282  
Service charges on deposit accounts     10,587         8,907         8,483         8,102         8,666  
Other service charges and fees     2,774         2,433         2,515         2,197         4,026  
Mortgage and SBA lending income     3,713         3,219         3,961         2,423         4,580  
Investment banking income     786         680         637         690         472  
Debit and credit card fees     8,801         8,864         8,659         7,934         8,027  
Bank owned life insurance income     1,101         725         859         818         895  
(Loss) gain on sale of securities, net     (1,243 )       3         2,236         63         1,445  
Other income     4,090         7,276         4,281         3,621         3,722  
TOTAL NON-INTEREST INCOME     36,629         36,332         35,744         30,060         36,115  
 NON-INTEREST EXPENSE                                       
Salaries and employee benefits     49,288         35,285         34,205         35,536         33,797  
Occupancy expense, net     6,700         4,928         4,868         4,663         4,516  
Furniture and equipment expense     5,533         4,840         4,550         4,443         4,387  
Other real estate and foreclosure expense     865         1,071         517         589         679  
Deposit insurance     1,216         1,020         780         680         89  
  Merger-related costs      14,044         752         6,603         524         2,846  
  Other operating expenses      30,844         18,263         19,885         19,887         20,411  
  TOTAL NON-INTEREST EXPENSE      108,490         66,159         71,408         66,322         66,725  
 NET INCOME BEFORE INCOME TAXES      45,457         43,530         34,125         31,811         39,386  
Provision for income taxes      26,554         14,678         11,060         9,691         12,415  
 NET INCOME  $   18,903     $   28,852     $   23,065     $   22,120     $   26,971  
 BASIC EARNINGS PER SHARE  $   0.44     $   0.90     $   0.72     $   0.71     $   0.86  
 DILUTED EARNINGS PER SHARE  $   0.43     $   0.89     $   0.72     $   0.70     $   0.85  
                                       
 Page 2   
             


Simmons First National Corporation         SFNC 
 Consolidated Risk-Based Capital           
 For the Quarters Ended           
(Unaudited)     Dec 31        Sep 30         Jun 30       Mar 31        Dec 31   
     2017         2017         2017         2017         2016   
($ in thousands)                                      
Tier 1 capital                                      
Stockholders' equity $ 2,084,564     $ 1,257,199     $ 1,234,076     $ 1,170,889     $ 1,151,111  
Trust preferred securities, net allowable   -       67,418       67,312       60,503       60,397  
Disallowed intangible assets, net of deferred tax   (902,371 )     (401,419 )     (406,990 )     (361,944 )     (354,028 )
Unrealized loss on AFS securities   17,264       10,651       11,322       14,298       15,212  
Other   -       -       -       -       15  
Total Tier 1 capital   1,199,457       933,849       905,720       883,746       872,707  
                                       
Tier 2 capital                                      
Qualifying unrealized gain on AFS equity securities   1       1       1       2       -  
Trust preferred securities and subordinated debt   140,565       -       -       -       -  
Qualifying allowance for loan losses and                                      
reserve for unfunded commitments   48,947       46,709       45,369       41,303       40,241  
Total Tier 2 capital   189,513       46,710       45,370       41,305       40,241  
Total risk-based capital $ 1,388,970     $ 980,559     $ 951,090     $ 925,051     $ 912,948  
                                       
Common equity                                      
Tier 1 capital $ 1,199,457     $ 933,849     $ 905,720     $ 883,746     $ 872,707  
Less: Trust preferred securities   -       (67,418 )     (67,312 )     (60,503 )     (60,397 )
Total common equity $ 1,199,457     $ 866,431     $ 838,408     $ 823,243     $ 812,310  
                                       
Risk weighted assets $ 11,930,764     $ 7,239,923     $ 6,925,727     $ 6,425,150     $ 6,039,034  
                                       
Adjusted average assets for leverage ratio $   13,016,478     $   8,789,175     $   8,424,763     $   8,076,525     $   7,966,681  
                                       
Ratios at end of quarter                                      
Equity to assets    13.85 %     13.18 %     13.61 %     13.57 %     13.70 %
Tangible common equity to tangible assets (1)    8.05 %     9.07 %     9.22 %     9.35 %     9.37 %
Common equity Tier 1 ratio (CET1)    10.05 %     11.97 %     12.11 %     12.81 %     13.45 %
Tier 1 leverage ratio    9.21 %     10.62 %     10.75 %     10.94 %     10.95 %
Tier 1 risk-based capital ratio    10.05 %     12.90 %     13.08 %     13.75 %     14.45 %
Total risk-based capital ratio    11.64 %     13.54 %     13.73 %     14.40 %     15.12 %
                                       
                                       
(1) Calculations of tangible common equity to tangible assets and the reconciliations to GAAP are included in the
schedules accompanying this release.          
 Page 3 
           
           


 Simmons First National Corporation         SFNC   
 Consolidated Loans and Investments             
 For the Quarters Ended     Dec 31       Sep 30      Jun 30       Mar 31       Dec 31   
 (Unaudited)     2017       2017       2017       2017       2016   
($ in thousands)                              
Legacy Loan Portfolio - End of Period (1)                              
Consumer                              
Credit cards $ 185,422   $ 176,316   $ 176,953   $ 171,947   $ 184,591  
Other consumer     280,094       317,946       366,136       349,200       303,972  
Total consumer   465,516     494,262     543,089     521,147     488,563  
Real Estate                              
Construction   614,155     515,274     457,896     365,051     336,759  
Single-family residential   1,094,633     1,048,403     1,014,412     957,717     904,245  
Other commercial     2,530,824       2,231,223       2,089,707       1,959,677       1,787,075  
Total real estate   4,239,612     3,794,900     3,562,015     3,282,445     3,028,079  
Commercial                              
Commercial   825,217     688,960     678,932     657,606     639,525  
Agricultural     148,302       207,849       191,345       141,125       150,378  
Total commercial   973,519     896,809     870,277     798,731     789,903  
Other     26,962       25,341       25,191       30,582       20,662  
Total Loans $   5,705,609   $   5,211,312   $   5,000,572   $   4,632,905   $   4,327,207  
                               
 (1) Excludes all acquired loans.                               
                               
Investment Securities - End of Period                              
 Held-to-Maturity                               
U.S. Government agencies $ 46,945   $ 66,928   $ 67,912   $ 68,895   $ 76,875  
Mortgage-backed securities   16,132     16,972     17,882     18,743     19,773  
State and political subdivisions   301,491     320,116     331,249     341,854     362,532  
Other securities     3,490       2,017       1,960       1,684       2,916  
Total held-to-maturity     368,058       406,033       419,003       431,176       462,096  
 Available-for-Sale                               
U.S. Treasury $ -   $ -   $ 19,997   $ -   $ 300  
U.S. Government agencies   139,724     208,220     147,619     142,356     137,771  
Mortgage-backed securities   1,187,317     959,698     878,205     927,277     868,324  
State and political subdivisions   143,165     84,822     83,672     130,747     102,943  
FHLB stock   58,914     24,415     21,772     19,149     12,235  
Other securities     60,397       40,265       39,335       38,285       35,781  
Total available-for-sale     1,589,517       1,317,420       1,190,600       1,257,814       1,157,354  
Total investment securities $   1,957,575   $   1,723,453   $   1,609,603   $   1,688,990   $   1,619,450  
Fair value - HTM investment securities $   373,298   $   412,140   $   425,263   $   435,701   $   465,960  
                               
Investment Securities - QTD Average                              
Taxable securities $ 1,569,173   $ 1,229,172   $ 1,244,071   $ 1,185,794   $ 1,146,703  
Tax exempt securities     446,040       409,062       467,420       455,481       467,757  
Total investment securities - QTD average $   2,015,213   $   1,638,234   $   1,711,491   $   1,641,275   $   1,614,460  
                               
 Page 4   
             


 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)     2017       2017       2017      2017       2016     
 ($ in thousands)                                 
 LOANS             
 Legacy loans  $   5,705,609   $   5,211,312   $   5,000,572   $   4,632,905   $   4,327,207    
 Allowance for loan losses (legacy loans)      (41,668 )     (42,717 )     (41,379 )     (37,865 )     (36,286 )  
 Legacy loans (net of allowance)      5,663,941       5,168,595       4,959,193       4,595,040       4,290,921    
 Loans acquired      5,163,769       1,117,424       1,253,539       1,173,667       1,342,099    
 Credit discount      (89,275 )     (24,994 )     (28,409 )     (28,941 )     (35,462 )  
 Allowance for loan losses (loans acquired)      (418 )     (391 )     (391 )     (435 )     (954 )  
 Loans acquired (net of discount and allowance)      5,074,076       1,092,039       1,224,739       1,144,291       1,305,683    
 Net loans  $   10,738,017   $   6,260,634   $   6,183,932   $   5,739,331   $   5,596,604    
                                 
             
Loan Coverage Ratios             
 Allowance for loan losses to legacy loans    0.73 %   0.82 %   0.83 %   0.82 %   0.84 %  
             
 Discount for credit losses and allowance on loans acquired             
 to total loans acquired plus discount for credit losses             
 and allowance on loans acquired (non-GAAP) (1)    1.74 %   2.27 %   2.30 %   2.50 %   2.71 %  
             
 Total allowance and credit coverage (non-GAAP) (1)    1.21 %   1.08 %   1.12 %   1.16 %   1.28 %  
             
             
(1) Calculations of the non-GAAP loan coverage ratios and the reconciliations to GAAP are included in the schedules accompanying  
this release.            
             
 Page 5 
             


 Simmons First National Corporation         SFNC 
 Consolidated Allowance and Asset Quality           
 For the Quarters Ended   Dec 31   Sep 30   Jun 30   Mar 31   Dec 31 
 (Unaudited)     2017       2017       2017       2017       2016   
($ in thousands)                              
Allowance for Loan Losses (Legacy Loans)          
 Balance, beginning of quarter  $   42,717   $   41,379   $   37,865   $   36,286   $   34,094  
 Loans charged off                               
  Credit cards      943       1,017       901       1,044       935  
  Other consumer      781       819       993       1,174       493  
  Real estate      4,725       896       1,712       656       167  
  Commercial      4,754       2,442       349       292       913  
  Total loans charged off      11,203       5,174       3,955       3,166       2,508  
                               
 Recoveries of loans previously charged off           
  Credit cards      233       275       277       236       213  
  Other consumer      468       445       636       690       158  
  Real estate      233       309       216       232       73  
  Commercial      20       21       32       30       28  
  Total recoveries      954       1,050       1,161       1,188       472  
  Net loans charged off      10,249       4,124       2,794       1,978       2,036  
 Provision for loan losses      9,200       5,462       6,308       3,557       4,228  
 Balance, end of quarter  $   41,668   $   42,717   $   41,379   $   37,865   $   36,286  
                               
Non-performing assets (1) (2)          
 Non-performing loans           
  Nonaccrual loans      45,642       54,439       57,127       52,913       39,104  
  Loans past due 90 days or more      520       232       281       231       299  
  Total non-performing loans      46,162       54,671       57,408       53,144       39,403  
 Other non-performing assets                               
  Foreclosed assets and other real estate owned (2)     32,118       31,477       26,012       26,421       26,895  
  Other non-performing assets      675       639       485       352       471  
  Total other non-performing assets      32,793       32,116       26,497       26,773       27,366  
  Total non-performing assets  $   78,955   $   86,787   $   83,905   $   79,917   $   66,769  
 Performing TDRs (troubled debt restructurings)  $   7,107   $   9,212   $   8,794   $   10,833   $   10,998  
           
Ratios (1) (2)          
 Allowance for loan losses to total loans    0.73 %   0.82 %   0.83 %   0.82 %   0.84 %
 Allowance for loan losses to non-performing loans    90 %   78 %   72 %   71 %   92 %
 Non-performing loans to total loans    0.81 %   1.05 %   1.15 %   1.15 %   0.91 %
 Non-performing assets (including performing TDRs)           
  to total assets    0.57 %   1.01 %   1.02 %   1.05 %   0.93 %
 Non-performing assets to total assets    0.52 %   0.91 %   0.93 %   0.93 %   0.79 %
 Annualized net charge offs to total loans    0.53 %   0.32 %   0.23 %   0.18 %   0.20 %
 Annualized net credit card charge offs to           
  total credit card loans    1.54 %   1.65 %   1.42 %   1.84 %   1.66 %
 Annualized net charge offs to total loans           
  (excluding credit cards)    0.51 %   0.27 %   0.19 %   0.11 %   0.14 %
           
 (1) Excludes all acquired loans, except for their inclusion in total assets.       
 (2) Includes acquired foreclosed assets and acquired other real estate owned.       
 Page 6 
           


 Simmons First National Corporation                     SFNC 
 Consolidated - Average Balance Sheet and Net Interest Income Analysis               
 For the Quarters Ended                       
 (Unaudited)                       
   Three Months Ended
Dec 2017 
   Three Months Ended
Sep 2017 
   Three Months Ended
Dec 2016 
 ($ in thousands)  Average
Balance
Income/
Expense
Yield/
Rate
  Average
Balance
Income/
Expense
Yield/
Rate
  Average
Balance
Income/
Expense
Yield/
Rate
ASSETS                      
Earning assets:                      
  Interest bearing balances due from banks                      
  Federal funds sold     342,589     947 1.10 %       269,111     650 0.96 %       248,777     245 0.39 %
  Investment securities - taxable     1,702,531     8,592 2.00 %       1,313,333     6,574 1.99 %       1,236,864     5,681 1.83 %
  Investment securities - non-taxable (FTE)     312,682     4,702 5.97 %       324,901     4,341 5.30 %       377,596     4,959 5.22 %
  Mortgage loans held for sale     15,144     175 4.58 %       13,388     159 4.71 %       23,307     230 3.93 %
  Assets held in trading accounts     14     -  0.00 %       52     -  0.00 %       1,774     3 0.67 %
  Loans, including acquired loans     9,772,043     132,704 5.39 %       6,261,507     77,511 4.91 %       5,484,918     70,941 5.15 %
  Total interest earning assets (FTE)     12,145,003     147,120 4.81 %       8,182,292     89,235 4.33 %       7,373,236     82,059 4.43 %
  Non-earning assets     1,752,775           993,315           935,222    
  Total assets $   13,897,778       $   9,175,607       $   8,308,458    
                       
LIABILITIES AND STOCKHOLDERS' EQUITY                    
Interest bearing liabilities:                      
  Interest bearing transaction and                      
  savings accounts $   6,132,456 $   8,762 0.57 %   $   4,227,567 $   3,920 0.37 %   $   3,895,367 $   2,032 0.21 %
  Time deposits     1,852,148     3,944 0.84 %       1,330,889     2,110 0.63 %       1,292,961     2,023 0.62 %
  Total interest bearing deposits     7,984,604     12,706 0.63 %       5,558,456     6,030 0.43 %       5,188,328     4,055 0.31 %
  Federal funds purchased and securities                      
  sold under agreement to repurchase     126,432     97 0.30 %       115,583     83 0.28 %       124,323     90 0.29 %
  Other borrowings     988,614     3,993 1.60 %       502,972     1,875 1.48 %       203,615     1,034 2.02 %
  Subordinated debentures     127,680     1,480 4.60 %       67,367     677 3.99 %       60,345     558 3.68 %
  Total interest bearing liabilities     9,227,330     18,276 0.79 %       6,244,378     8,665 0.55 %       5,576,611     5,737 0.41 %
Non-interest bearing liabilities:                      
  Non-interest bearing deposits     2,476,235           1,613,248           1,515,853    
  Other liabilities     262,409           62,287           59,061    
  Total liabilities     11,965,974           7,919,913           7,151,525    
Stockholders' equity     1,931,804           1,255,694           1,156,933    
  Total liabilities and stockholders' equity $   13,897,778       $   9,175,607       $   8,308,458    
Net interest income (FTE)   $   128,844       $   80,570       $   76,322  
Net interest spread (FTE)     4.02 %       3.78 %       4.02 %
Net interest margin (FTE) - quarter-to-date     4.21 %       3.91 %       4.12 %
                       
Net interest margin (FTE) - year-to-date     4.07 %       3.99 %       4.19 %
                       
Core net interest margin (FTE) - quarter-to-date (1)     3.70 %       3.77 %       3.76 %
Core loan yield (FTE) - quarter-to-date (1)     4.75 %       4.72 %       4.67 %
                       
Core net interest margin (FTE) - year-to-date (1)     3.76 %       3.79 %       3.83 %
Core loan yield (FTE) - year-to-date (1)     4.69 %       4.65 %       4.72 %
                       
(1) Calculations of core net interest margin and core loan yield and the reconciliations to GAAP are included in the schedules accompanying this release.
Page 7
                       


 Simmons First National Corporation         SFNC   
 Consolidated - Selected Financial Data             
 For the Quarters Ended   Dec 31   Sep 30   Jun 30   Mar 31   Dec 31   
 (Unaudited)    2017      2017      2017      2017     2016    
($ in thousands, except share data)                                
QUARTER-TO-DATE            
Financial Highlights - GAAP            
 Net Income  $   18,903   $   28,852   $   23,065   $   22,120   $   26,971    
 Diluted earnings per share      0.43       0.89       0.72       0.70       0.85    
 Return on average assets    0.54 %   1.25 %   1.05 %   1.07 %   1.29 %  
 Return on average common equity    3.88 %   9.12 %   7.65 %   7.69 %   9.27 %  
 Return on tangible common equity    7.53 %   14.47 %   12.13 %   12.22 %   14.71 %  
 Net interest margin (FTE)    4.21 %   3.91 %   4.04 %   4.04 %   4.12 %  
 FTE adjustment      1,925       1,751       2,082       1,965       1,994    
 Amortization of intangibles      2,839       1,724       1,553       1,550       1,533    
 Amortization of intangibles, net of taxes      1,725       1,048       944       942       932    
 Average diluted shares outstanding      43,518,022       32,423,796       32,025,780       31,612,900       31,592,713    
 Cash dividends declared per common share      0.25       0.25       0.25       0.25       0.24    
Financial Highlights - Core (non-GAAP)            
 Core earnings (excludes non-core items) (1)  $   42,018   $   27,746   $   26,753   $   22,532   $   28,751    
 Diluted core earnings per share (1)      0.97       0.86       0.84       0.71       0.91    
 Core net interest margin (FTE) (2)    3.70 %   3.77 %   3.79 %   3.80 %   3.76 %  
 Accretable yield on acquired loans      15,684       2,890       4,792       4,427       6,552    
 Efficiency ratio (1)    51.36 %   55.06 %   56.04 %   60.92 %   55.47 %  
 Core return on average assets (1)    1.20 %   1.20 %   1.22 %   1.09 %   1.38 %  
 Core return on average common equity (1)    8.63 %   8.77 %   8.87 %   7.83 %   9.89 %  
 Core return on tangible common equity (1)    15.97 %   13.93 %   13.99 %   12.44 %   15.65 %  
YEAR-TO-DATE            
Financial Highlights - GAAP            
 Net Income  $   92,940   $   74,037   $   45,185   $   22,120   $   96,790    
 Diluted earnings per share      2.66       2.31       1.42       0.70       3.13    
 Return on average assets    0.92 %   1.12 %   1.06 %   1.07 %   1.25 %  
 Return on average common equity    6.68 %   8.18 %   7.67 %   7.69 %   8.75 %  
 Return on tangible common equity    11.26 %   12.97 %   12.17 %   12.22 %   13.92 %  
 Net interest margin (FTE)    4.07 %   3.99 %   4.04 %   4.04 %   4.19 %  
 FTE adjustment      7,723       5,798       4,047       1,965       7,722    
 Amortization of intangibles      7,666       4,827       3,103       1,550       5,942    
 Amortization of intangibles, net of taxes      4,659       2,934       1,886       942       3,611    
 Average diluted shares outstanding      34,926,460       32,007,135       31,794,363       31,612,900       30,963,546    
 Cash dividends declared per common share      1.00       0.75       0.50       0.25       0.96    
Financial Highlights - Core (non-GAAP)            
 Core earnings (excludes non-core items) (1)  $   119,049   $   77,031   $   49,285   $   22,532   $   101,409    
 Diluted core earnings per share (1)      3.41       2.41       1.55       0.71       3.28    
 Core net interest margin (FTE) (2)    3.76 %   3.79 %   3.79 %   3.80 %   3.83 %  
 Accretable yield on acquired loans      27,793       12,109       9,219       4,427       24,257    
 Efficiency ratio (1)    55.27 %   57.25 %   58.40 %   60.92 %   56.32 %  
 Core return on average assets (1)    1.18 %   1.17 %   1.15 %   1.09 %   1.31 %  
 Core return on average common equity (1)    8.56 %   8.51 %   8.37 %   7.83 %   9.17 %  
 Core return on tangible common equity (1)    14.28 %   13.48 %   13.23 %   12.44 %   14.56 %  
END OF PERIOD            
 Book value per share  $   45.30   $   39.03   $   38.31   $   37.30   $   36.80    
 Tangible book value per share      24.68       25.64       24.71       24.51       23.97    
 Shares outstanding      46,014,559       32,212,242       32,212,832       31,388,357       31,277,723    
 Full-time equivalent employees      2,640       1,942       1,919       1,876       1,875    
 Total number of financial centers      200       156       161       151       150    
             
 (1) Core earnings exclude non-core items, which is a non-GAAP measurement. Reconciliations to GAAP are included in the   
 schedules accompanying this release.             
 (2) Excludes accretable yield adjustment on loans, which is a non-GAAP measurement. Reconciliations to GAAP are included in   
 the schedules accompanying this release.             
             
 Page 8   
             


 Simmons First National Corporation         SFNC     
 Consolidated - Reconciliation of Core Earnings (non-GAAP)           
 For the Quarters Ended   Dec 31   Sep 30   Jun 30   Mar 31   Dec 31     
 (Unaudited)     2017       2017       2017       2017       2016       
($ in thousands, except per share data)              
QUARTER-TO-DATE              
 Net Income  $   18,903   $   28,852   $   23,065   $   22,120   $   26,971      
 Non-core items               
Gain on sale of P&C insurance business     -        (3,708 )     -        -        -       
Donation to Simmons Foundation     5,000       -        -        -        -       
Merger-related costs     14,044       752       6,603       524       2,846      
Branch right-sizing     116       435       (536 )     154       83      
Tax effect (1)     (7,516 )     1,415       (2,379 )     (266 )     (1,149 )    
 Net non-core items (before SAB 118 adjustment)      11,644       (1,106 )     3,688       412       1,780      
SAB 118 adjustment (2)     11,471       -        -        -        -       
 Core earnings (non-GAAP)  $   42,018   $   27,746   $   26,753   $   22,532   $   28,751      
                                   
 Diluted earnings per share  $   0.43   $   0.89   $   0.72   $   0.70   $   0.85      
 Non-core items               
Gain on sale of P&C insurance business     -        (0.11 )     -        -        -       
Donation to Simmons Foundation     0.11       -        -        -        -       
Merger-related costs     0.33       0.02       0.21       0.02       0.09      
Branch right-sizing     -        0.01       (0.02 )     -        -       
Tax effect (1)     (0.16 )     0.05       (0.07 )     (0.01 )     (0.03 )    
 Net non-core items (before SAB 118 adjustment)      0.28       (0.03 )     0.12       0.01       0.06      
SAB 118 adjustment (2)     0.26       -        -        -        -       
 Core earnings (non-GAAP)  $   0.97   $   0.86   $   0.84   $   0.71   $   0.91      
                                   
YEAR-TO-DATE              
 Net Income  $   92,940   $   74,037   $   45,185   $   22,120   $   96,790      
 Non-core items               
Gain from early retirement of trust preferred securities     -        -        -        -        (594 )    
Gain on sale of P&C insurance business     (3,708 )     (3,708 )     -        -        -       
Donation to Simmons Foundation     5,000       -        -        -        -       
Merger-related costs     21,923       7,879       7,127       524       4,835      
Branch right-sizing     169       53       (382 )     154       3,359      
Tax effect (1)     (8,746 )     (1,230 )     (2,645 )     (266 )     (2,981 )    
 Net non-core items (before SAB 118 adjustment)      14,638       2,994       4,100       412       4,619      
SAB 118 adjustment (2)     11,471       -        -        -        -       
 Core earnings (non-GAAP)  $   119,049   $   77,031   $   49,285   $   22,532   $   101,409      
                                   
 Diluted earnings per share  $   2.66   $   2.31   $   1.42   $   0.70   $   3.13      
 Non-core items               
Gain from early retirement of trust preferred securities     -        -        -        -        (0.02 )    
Gain on sale of P&C insurance business     (0.10 )     (0.11 )          
Donation to Simmons Foundation     0.14              
Merger-related costs     0.63       0.25       0.22       0.02       0.16      
Branch right-sizing     -        -        (0.01 )     -        0.11      
Tax effect (1)     (0.25 )     (0.04 )     (0.08 )     (0.01 )     (0.10 )    
 Net non-core items (before SAB 118 adjustment)      0.42       0.10       0.13       0.01       0.15      
SAB 118 adjustment (2)     0.33       -        -        -        -       
 Core earnings (non-GAAP)  $   3.41   $   2.41   $   1.55   $   0.71   $   3.28      
                                   
 (1) Effective tax rate of 39.225%, adjusted for non-deductible merger-related costs and deferred tax items on P&C insurance sale.   
 (2) Tax adjustment to revalue deferred tax assets and liabilites to account for the future impact of lower corporate tax     
 rates resulting from the "Tax Cuts and Jobs Act", signed into law on December 22, 2017.         
 Page 9     
               


Simmons First National Corporation          SFNC   
 Reconciliation Of Non-GAAP Financial Measures - End of Period         
 For the Quarters Ended             
 (Unaudited)   Dec 31   Sept 30   Jun 30   Mar 31   Dec 31   
     2017       2017       2017       2017       2016     
($ in thousands, except per share data)            
             
Calculation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets      
             
Total common stockholders' equity $   2,084,564   $   1,257,199   $   1,234,076   $   1,170,889   $   1,151,111    
Intangible assets:            
  Goodwill     (842,651 )     (375,731 )     (379,437 )     (350,035 )     (348,505 )  
  Other intangible assets     (106,071 )     (55,501 )     (58,528 )     (51,408 )     (52,959 )  
Total intangibles     (948,722 )     (431,232 )     (437,965 )     (401,443 )     (401,464 )  
Tangible common stockholders' equity $   1,135,842   $   825,967   $   796,111   $   769,446   $   749,647    
                                 
Total assets $   15,055,806   $   9,535,370   $   9,068,308   $   8,626,638   $   8,400,056    
Intangible assets:            
  Goodwill     (842,651 )     (375,731 )     (379,437 )     (350,035 )     (348,505 )  
  Other intangible assets     (106,071 )     (55,501 )     (58,528 )     (51,408 )     (52,959 )  
Total intangibles     (948,722 )     (431,232 )     (437,965 )     (401,443 )     (401,464 )  
Tangible assets $   14,107,084   $   9,104,138   $   8,630,343   $   8,225,195   $   7,998,592    
                                 
Ratio of equity to assets   13.85 %   13.18 %   13.61 %   13.57 %   13.70 %  
Ratio of tangible common equity to tangible assets   8.05 %   9.07 %   9.22 %   9.35 %   9.37 %  
                                 
Calculation of Discount for credit losses and allowance on loans acquired to total loans acquired plus       
  discount for credit losses and allowance on loans acquired            
             
Credit discount on acquired loans $   89,275   $   24,994   $   28,409   $   28,941   $   35,462    
Allowance for loan losses on acquired loans     418       391       391       435       954    
Total credit discount and ALLL on acquired loans $   89,693   $   25,385   $   28,800   $   29,376   $   36,416    
Total loans acquired $   5,163,769   $   1,117,424   $   1,253,539   $   1,173,667   $   1,342,099    
Discount and ALLL on acquired loans to acquired loans   1.74 %   2.27 %   2.30 %   2.50 %   2.71 %  
                                 
Calculation of Total Allowance and Credit Coverage            
             
Allowance for loan losses $   41,668   $   42,717   $   41,379   $   37,865   $   36,286    
Total credit discount and ALLL on acquired loans     89,693       25,385       28,800       29,376       36,416    
Total allowance and credit discount $   131,361   $   68,102   $   70,179   $   67,241   $   72,702    
Total loans $   10,869,378   $   6,328,736   $   6,254,155   $   5,806,572   $   5,669,306    
Total allowance and credit coverage   1.21 %   1.08 %   1.12 %   1.16 %   1.28 %  
                                 
Calculation of Tangible Book Value per Share            
             
Total common stockholders' equity $   2,084,564   $   1,257,199   $   1,234,076   $   1,170,889   $   1,151,111    
Intangible assets:            
  Goodwill     (842,651 )     (375,731 )     (379,437 )     (350,035 )     (348,505 )  
  Other intangible assets     (106,071 )     (55,501 )     (58,528 )     (51,408 )     (52,959 )  
Total intangibles     (948,722 )     (431,232 )     (437,965 )     (401,443 )     (401,464 )  
Tangible common stockholders' equity $   1,135,842   $   825,967   $   796,111   $   769,446   $   749,647    
Shares of common stock outstanding     46,014,559       32,212,242       32,212,832       31,388,357       31,277,723    
Book value per common share $   45.30   $   39.03   $   38.31   $   37.30   $   36.80    
Tangible book value per common share $   24.68   $   25.64   $   24.71   $   24.51   $   23.97    
                                 
 Page 10   


Simmons First National Corporation          SFNC   
 Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date         
 For the Quarters Ended             
 (Unaudited)   Dec 31   Sept 30   Jun 30   Mar 31   Dec 31   
     2017       2017       2017       2017       2016     
($ in thousands)            
Calculation of Core Return on Average Assets            
             
Net income $   18,903   $   28,852   $   23,065   $   22,120   $   26,971    
Net non-core items, net of taxes, adjustment     23,115       (1,106 )     3,688       412       1,780    
Core earnings $   42,018   $   27,746   $   26,753   $   22,532   $   28,751    
                                 
Average total assets $   13,897,778   $   9,175,607   $   8,812,460   $   8,414,470   $   8,308,458    
                                 
Return on average assets   0.54 %   1.25 %   1.05 %   1.07 %   1.29 %  
Core return on average assets   1.20 %   1.20 %   1.22 %   1.09 %   1.38 %  
                                 
Calculation of Return on Tangible Common Equity            
             
Net income $   18,903   $   28,852   $   23,065   $   22,120   $   26,971    
Amortization of intangibles, net of taxes     1,725       1,048       944       942       932    
Total income available to common stockholders $   20,628   $   29,900   $   24,009   $   23,062   $   27,903    
                                 
Net non-core items, net of taxes     23,115       (1,106 )     3,688       412       1,780    
Core earnings     42,018       27,746       26,753       22,532       28,751    
Amortization of intangibles, net of taxes     1,725       1,048       944       942       932    
Total core income available to common stockholders $   43,743   $   28,794   $   27,697   $   23,474   $   29,683    
                                 
Average common stockholders' equity $   1,931,804   $   1,255,694   $   1,209,343   $   1,166,473   $   1,156,933    
Average intangible assets:            
  Goodwill     (731,661 )     (378,387 )     (362,925 )     (348,837 )     (348,597 )  
  Other intangibles     (113,770 )     (57,232 )     (52,419 )     (52,169 )     (53,646 )  
Total average intangibles     (845,431 )     (435,619 )     (415,344 )     (401,006 )     (402,243 )  
Average tangible common stockholders' equity $   1,086,373   $   820,075   $   793,999   $   765,467   $   754,690    
                                 
Return on average common equity   3.88 %   9.12 %   7.65 %   7.69 %   9.27 %  
Return on tangible common equity   7.53 %   14.47 %   12.13 %   12.22 %   14.71 %  
Core return on average common equity   8.63 %   8.77 %   8.87 %   7.83 %   9.89 %  
Core return on tangible common equity   15.97 %   13.93 %   13.99 %   12.44 %   15.65 %  
                                 
Calculation of Efficiency Ratio (1)            
             
Non-interest expense $   108,490   $   66,159   $   71,408   $   66,322   $   66,725    
Non-core non-interest expense adjustment     (19,160 )     (862 )     (6,700 )     (635 )     (2,995 )  
Other real estate and foreclosure expense adjustment     (865 )     (1,071 )     (517 )     (550 )     (669 )  
Amortization of intangibles adjustment     (2,839 )     (1,724 )     (1,553 )     (1,550 )     (1,533 )  
Efficiency ratio numerator $   85,626   $   62,502   $   62,638   $   63,587   $   61,528    
                                 
Net-interest income $   126,919   $   78,819   $   76,812   $   72,380   $   74,328    
Non-interest income     36,629       36,332       35,744       30,060       36,115    
Non-core non-interest income adjustment     -        (3,383 )     (632 )     43       (66 )  
Fully tax-equivalent adjustment     1,925       1,751       2,082       1,965       1,994    
(Gain) loss on sale of securities     1,243       (3 )     (2,236 )     (63 )     (1,445 )  
Efficiency ratio denominator $   166,716   $   113,516   $   111,770   $   104,385   $   110,926    
                                 
Efficiency ratio (1)   51.36 %   55.06 %   56.04 %   60.92 %   55.47 %  
                                 
Calculation of Core Net Interest Margin            
             
Net interest income $   126,919   $   78,819   $   76,812   $   72,380   $   74,328    
Fully tax-equivalent adjustment     1,925       1,751       2,082       1,965       1,994    
Fully tax-equivalent net interest income     128,844       80,570       78,894       74,345       76,322    
                                 
Total accretable yield     (15,684 )     (2,890 )     (4,792 )     (4,427 )     (6,552 )  
Core net interest income $   113,160   $   77,680   $   74,102   $   69,918   $   69,770    
Average earning assets $   12,145,003   $   8,182,292   $   7,841,208   $   7,469,709   $   7,373,236    
                                 
Net interest margin   4.21 %   3.91 %   4.04 %   4.04 %   4.12 %  
Core net interest margin   3.70 %   3.77 %   3.79 %   3.80 %   3.76 %  
                                 
Calculation of Core Loan Yield            
             
Loan interest income $   132,617   $   77,457   $   73,549   $   68,728   $   70,887    
Total accretable yield     (15,684 )     (2,890 )     (4,792 )     (4,427 )     (6,552 )  
Core loan interest income $   116,933   $   74,567   $   68,757   $   64,301   $   64,335    
Average loan balance $   9,772,043   $   6,261,507   $   5,954,019   $   5,685,585   $   5,484,918    
                                 
Core loan yield   4.75 %   4.72 %   4.63 %   4.59 %   4.67 %  
                                 
(1) Efficiency ratio is noninterest expense before foreclosed property expense and amortization of intangibles as a percent of net interest income (fully  
taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and non-core items.    
             
 Page 11   


Simmons First National Corporation          SFNC   
 Reconciliation Of Non-GAAP Financial Measures - Year-to-Date           
 For the Quarters Ended             
 (Unaudited)   Dec 31   Sept 30   Jun 30   Mar 31   Dec 31   
     2017       2017       2017       2017       2016     
($ in thousands)            
Calculation of Core Return on Average Assets            
             
Net income $   92,940   $   74,037   $   45,185   $   22,120   $   96,790    
Net non-core items, net of taxes, adjustment     26,109       2,994       4,100       412       4,619    
Core earnings $   119,049   $   77,031   $   49,285   $   22,532   $   101,409    
                                 
Average total assets $   10,074,951   $   8,800,675   $   8,613,240   $   8,414,470   $   7,760,233    
                                 
Return on average assets   0.92 %   1.12 %   1.06 %   1.07 %   1.25 %  
Core return on average assets   1.18 %   1.17 %   1.15 %   1.09 %   1.31 %  
                                 
Calculation of Return on Tangible Common Equity            
             
Net income $   92,940   $   74,037   $   45,185   $   22,120   $   96,790    
Amortization of intangibles, net of taxes     4,659       2,934       1,886       942       3,611    
Total income available to common stockholders $   97,599   $   76,971   $   47,071   $   23,062   $   100,401    
                                 
Net non-core items, net of taxes     26,109       2,994       4,100       412       4,619    
Core earnings     119,049       77,031       49,285       22,532       101,409    
Amortization of intangibles, net of taxes     4,659       2,934       1,886       942       3,611    
Total core income available to common stockholders $   123,708   $   79,965   $   51,171   $   23,474   $   105,020    
                                 
Average common stockholders' equity $   1,390,815   $   1,210,487   $   1,187,906   $   1,166,473   $   1,105,775    
Average intangible assets:                                
  Goodwill     (455,453 )     (363,383 )     (355,881 )     (348,837 )     (332,974 )  
  Other intangibles     (68,896 )     (53,941 )     (52,294 )     (52,169 )     (51,710 )  
Total average intangibles     (524,349 )     (417,324 )     (408,175 )     (401,006 )     (384,684 )  
Average tangible common stockholders' equity $   866,466   $   793,163   $   779,731   $   765,467   $   721,091    
                                 
Return on average common equity   6.68 %   8.18 %   7.67 %   7.69 %   8.75 %  
Return on tangible common equity   11.26 %   12.97 %   12.17 %   12.22 %   13.92 %  
Core return on average common equity   8.56 %   8.51 %   8.37 %   7.83 %   9.17 %  
Core return on tangible common equity   14.28 %   13.48 %   13.23 %   12.44 %   14.56 %  
                                 
Calculation of Efficiency Ratio (1)            
             
Non-interest expense $   312,379   $   203,889   $   137,730   $   66,322   $   255,085    
Non-core non-interest expense adjustment     (27,357 )     (8,197 )     (7,335 )     (635 )     (8,435 )  
Other real estate and foreclosure expense adjustment     (3,042 )     (2,177 )     (1,067 )     (550 )     (4,389 )  
Amortization of intangibles adjustment     (7,666 )     (4,827 )     (3,103 )     (1,550 )     (5,942 )  
Efficiency ratio numerator $   274,314   $   188,688   $   126,225   $   63,587   $   236,319    
                                 
Net-interest income $   354,930   $   228,011   $   149,192   $   72,380   $   279,206    
Non-interest income     138,765       102,136       65,804       30,060       139,382    
Non-core non-interest income adjustment     (3,972 )     (3,972 )     (589 )     43       (835 )  
Fully tax-equivalent adjustment     7,723       5,798       4,047       1,965       7,722    
(Gain) loss on sale of securities     (1,059 )     (2,302 )     (2,299 )     (63 )     (5,848 )  
Efficiency ratio denominator $   496,387   $   329,671   $   216,155   $   104,385   $   419,627    
                                 
Efficiency ratio (1)   55.27 %   57.25 %   58.40 %   60.92 %   56.32 %  
                                 
Calculation of Core Net Interest Margin            
             
Net interest income $   354,930   $   228,011   $   149,192   $   72,380   $   279,206    
Fully tax-equivalent adjustment     7,723       5,798       4,047       1,965       7,722    
Fully tax-equivalent net interest income     362,653       233,809       153,239       74,345       286,928    
                                 
Total accretable yield     (27,793 )     (12,109 )     (9,219 )     (4,427 )     (24,257 )  
Core net interest income $   334,860   $   221,700   $   144,020   $   69,918   $   262,671    
Average earning assets $   8,908,418   $   7,829,548   $   7,653,177   $   7,469,709   $   6,855,322    
                                 
Net interest margin   4.07 %   3.99 %   4.04 %   4.04 %   4.19 %  
Core net interest margin   3.76 %   3.79 %   3.79 %   3.80 %   3.83 %  
                                 
Calculation of Core Loan Yield            
             
Loan interest income $   352,351   $   219,734   $   142,277   $   68,728   $   265,652    
Total accretable yield     (27,793 )     (12,109 )     (9,219 )     (4,427 )     (24,257 )  
Core loan interest income $   324,558   $   207,625   $   133,058   $   64,301   $   241,395    
Average loan balance $   6,918,293   $   5,967,036   $   5,819,803   $   5,685,585   $   5,109,492    
                                 
Core loan yield   4.69 %   4.65 %   4.61 %   4.59 %   4.72 %  
                                 
(1) Efficiency ratio is noninterest expense before foreclosed property expense and amortization of intangibles as a percent of net interest income (fully  
taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and non-core items.    
             
 Page 12   

Primary Logo

View Comments and Join the Discussion!