Market Overview

Simmons Reports Record Earnings for First Quarter 2018

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PINE BLUFF, Ark., April 23, 2018 (GLOBE NEWSWIRE) -- Simmons First National Corporation (NASDAQ-GS:SFNC) today announced record net income of $51.3 million for the quarter ended March 31, 2018, compared to $22.1 million for the same period in 2017, an increase of $29.2 million, or 132.0%. Diluted earnings per share were $0.55, an increase of $0.20, or 57.1%, from the same period in 2017.  Included in first quarter 2018 results was $1.3 million in net after-tax merger-related and branch right-sizing costs.

Excluding the impact of these items, core earnings were $52.6 million for the quarter ended March 31, 2018, compared to $22.5 million for the quarter ended March 31, 2017, an increase of $30.1 million, or 133.5%. Diluted earnings per share were $0.57, an increase of $0.21, or 58.3%, from the same period in 2017.

During the quarter, the Company completed its conversion of Southwest Bank with and into its subsidiary, Simmons Bank, as well as completed its offering of $330 million aggregate principal amount of 5.00% Fixed-to-Floating Rate Subordinated Notes due 2028 (the "Notes").  The Notes will bear a fixed interest rate of 5.00% per year in years 1-5, payable semi-annually in arrears, and a floating rate equal to three-month LIBOR plus 215 basis points in years 6-10, payable quarterly in arrears.  The Notes were offered to the public at 100% of their face amount.  The Company expects to use approximately $222 million of the net proceeds from the sale of the Notes to repay outstanding indebtedness and the remainder for general corporate purposes.

"We are off to a productive start for 2018," said George A. Makris, Jr., chairman and CEO.

Makris continued, "The conversion of Southwest Bank is now complete and we look forward to continuing to serve our new customers in the Texas markets.  We remain focused on the Bank SNB conversion and anticipate it will also be a smooth transition for our customers.  We are excited about building a stronger and more diverse organization."

The Company completed a 2-for-1 stock split effective February 8, 2018.  Financial statements, including earnings per share as well as other share-related disclosures, have been adjusted to include the impact of the stock split on all periods presented.

Selected Highlights: 1st Qtr 2018   4th Qtr 2017   1st Qtr 2017
           
Net income $51.3 million   $18.9 million   $22.1 million
Diluted earnings per share $0.55   $0.22   $0.35
Return on avg assets 1.38%   0.54%   1.07%
Return on avg common equity 9.90%   3.88%   7.69%
Return on tangible common equity 18.77%   7.53%   12.22%
Net interest margin(1) 4.17%   4.21%   4.04%
           
Core earnings(2) $52.6 million   $42.0 million   $22.5 million
Diluted core earnings per share(2) $0.57   $0.48   $0.36
Core return on avg assets(2) 1.41%   1.20%   1.09%
Core return on avg common equity(2) 10.15%   8.63%   7.83%
Core return on tangible common equity(2) 19.23%   15.97%   12.44%
Core net interest margin(1)(2) 3.82%   3.70%   3.80%
           
Efficiency ratio 53.24%   51.36%   60.92%
(1) Fully tax equivalent.          
(2) Core earnings excludes non-core items, which is a non-GAAP measurement.          
           

Loans

  1st Qtr 2018   4th Qtr 2017   1st Qtr 2017
           
Total loans $11.0 billion   $10.8 billion   $5.8 billion
Legacy loans (all loans excluding loans acquired) $6.3 billion   $5.7 billion   $4.6 billion
Loans acquired $4.7 billion   $5.1 billion   $1.2 billion
           

Total loans, including those acquired, were $11.0 billion at March 31, 2018, an increase of $5.2 billion, or 90.2% from March 31, 2017. 

On a linked-quarter basis (March 31, 2018 compared to December 31, 2017), total loans increased $207.6 million, or 1.9%.  The increase was due to:

  • $126 million net increase in loans at Simmons Bank which includes:
    • Southwest Bank loans that merged into Simmons Bank as of February 20, 2018
    • $25 million decrease in liquidating portfolio (indirect lending and consumer finance)
    • $24 million decrease from seasonal agricultural loan payoffs
  • $82 million net increase in loans at Bank SNB

Deposits

  1st Qtr 2018   4th Qtr 2017   1st Qtr 2017
           
Total deposits $11.7 billion   $11.1 billion   $6.8 billion
Non-time deposits $9.5 billion   $9.2 billion   $5.5 billion
Time deposits $2.2 billion   $1.9 billion   $1.3 billion
           

At March 31, 2018, total deposits were $11.7 billion, an increase of 71.7%, compared to the same period in 2017 and a 5.1% increase from December 31, 2017. The increase is from the recent acquisitions and growth in core deposits.  Total non-time deposits increased 70.6% compared to the same period in 2017, and comprised 81.1% of total deposits.

"We continue to focus on core deposits as a funding source for growth. We believe we have an opportunity to capitalize on the successes of the first quarter, especially in our new markets," said Makris.

Net Interest Income

The Company's net interest income for the first quarter of 2018 was $135.0 million, an increase of $62.6 million, or 86.5%, from the same period of 2017. Included in interest income was the yield accretion recognized on loans acquired of $11.3 million and $4.4 million for the first quarters of 2018 and 2017, respectively. Yield accretion was $2.7 million higher than projected due to accelerated cash flows of acquired loans. Based on our cash flow projections, we expect total accretion for 2018 to be in the range of $25 million to $28 million with more accretion income during the first part of the year and declining during the latter part of 2018.

Net interest margin was 4.17% for the quarter ended March 31, 2018, a 13 basis point increase from the same quarter of 2017. The Company's core net interest margin, excluding the accretion, was 3.82% for the first quarter of 2018, a 2 basis point increase from March 31, 2017 and a 12 basis point increase from December 31, 2017.  Cost of interest bearing deposits was 0.74% for the first quarter of 2018, a 41 basis point increase from March 31, 2017 and an 11 basis point increase from December 31, 2017.

Non-Interest Income

Non-interest income for the first quarter 2018 was $37.5 million, an increase of $7.5 million compared to the first quarter of 2017. The increase was primarily due to additional mortgage income, trust income, service charge and fee income resulting from the acquisitions.

Non-Interest Expense

Non-interest expense for the first quarter of 2018 was $98.1 million, an increase of $31.8 million compared to the first quarter of 2017. Included in this quarter were $1.3 million of net after-tax merger-related expenses and branch rightsizing costs.  Excluding these expenses, core non-interest expense was $96.3 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 fourth quarter of 2017. The efficiency ratio for the first quarter 2018 was 53.24%.

Asset Quality

  1st Qtr 2018   4th Qtr 2017   1st Qtr 2017
           
Allowance for loan losses to total loans 0.75%   0.73%   0.82%
Allowance for loan losses to non-performing loans 99%   90%   71%
Non-performing loans to total loans 0.76%   0.81%   1.15%
Net charge-off ratio (annualized) 0.24%   0.53%   0.18%
Net charge-off ratio excluding credit cards 0.20%   0.51%   0.11%
           

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 March 31, 2018, the allowance for loan losses for legacy loans was $47.2 million. The allowance for loan losses for loans acquired was $407,000 and the acquired loan discount credit mark was $79.1 million. The allowances for loan losses and credit marks provide a total of $126.7 million of coverage, which equates to a total coverage ratio of 1.1% of gross loans. The ratio of credit mark and related allowance to loans acquired was 1.7%.

Provision for loan losses for the first quarter of 2018 was $9.2 million, an increase of $4.8 million compared to March 31, 2017. The provision increase was due to increased loan migration during the quarter from the fourth quarter of 2017 acquisitions, which is consistent with our previous guidance.

Foreclosed Assets and Other Real Estate Owned

At March 31, 2018, foreclosed assets and other real estate owned were $29.1 million, an increase of $2.7 million, or 10.3%, compared to the same period in 2017 and a decrease of $3.0 million, or 9.3% from December 31, 2017. The composition of these assets is divided into three types:

  1st Qtr 2018   4th Qtr 2017   1st Qtr 2017
           
Closed bank branches, branch sites & associate relocation $8.1 million   $9.8 million   $5.8 million
Foreclosed assets - acquired $14.9 million   $16.0 million   $15.1 million
Foreclosed assets - legacy $6.1 million   $6.3 million   $5.5 million
           
Capital          
  1st Qtr 2018   4th Qtr 2017   1st Qtr 2017
           
Stockholders' equity to total assets 13.5%   13.9%   13.6%
Tangible common equity to tangible assets 7.9%   8.1%   9.4%
Regulatory tier 1 leverage ratio 8.6%   9.2%   10.9%
Regulatory total risk-based capital ratio 13.8%   11.4%   14.4%
           

At March 31, 2018, common stockholders' equity was $2.1 billion, book value per share was $22.86 and tangible book value per share was $12.62.  Asset growth due to the subordinated debt offering caused Tangible Common Equity to temporarily dip below 8%.  With the anticipated pay off of approximately $104 million in parent company debt during the second and third quarters, along with earnings growth, this ratio will increase to a range of 8-9% which reflects a normal operating range for the Company.

Simmons First National Corporation

Simmons First National Corporation is a financial holding company, headquartered in Pine Bluff, Arkansas, with total assets of $15.6 billion as of March 31, 2018 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. CDT on Tuesday, April 24, 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 4198919. 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  Mar 31
   Dec 31
   Sep 30
   Jun 30
   Mar 31 
(Unaudited)  2018
  2017
  2017
  2017
  2017
($ in thousands)                       
ASSETS           
Cash and non-interest bearing balances due from banks $ 170,811   $ 205,025   $ 108,675   $ 112,567   $ 103,875  
Interest bearing balances due from banks and federal funds sold   688,853     393,017     323,615     217,047     201,406  
Cash and cash equivalents   859,664     598,042     432,290     329,614     305,281  
Interest bearing balances due from banks - time   3,069     3,314     4,059     6,057     4,563  
Investment securities - held-to-maturity   352,756     368,058     406,033     419,003     431,176  
Investment securities - available-for-sale   1,830,113     1,589,517     1,317,420     1,190,600     1,257,813  
Mortgage loans held for sale   17,708     24,038     12,614     16,266     9,754  
Assets held in trading accounts   -     -     49     50     55  
Other assets held for sale   24,784     165,780     182,378     -     -  
Loans:          
Legacy loans   6,290,383     5,705,609     5,211,312     5,000,572     4,632,905  
Allowance for loan losses   (47,207 )   (41,668 )   (42,717 )   (41,379 )   (37,865 )
Loans acquired, net of discount and allowance   4,696,945     5,074,076     1,092,039     1,224,739     1,144,291  
Net loans   10,940,121     10,738,017     6,260,634     6,183,932     5,739,331  
Premises and equipment   289,355     287,249     224,376     230,641     221,880  
Premises held for sale   -     -     -     -     4,611  
Foreclosed assets and other real estate owned   29,140     32,118     31,477     26,012     26,421  
Interest receivable   42,129     43,528     30,749     27,337     26,089  
Bank owned life insurance   186,473     185,984     148,984     148,134     139,439  
Goodwill   845,687     842,651     375,731     379,437     350,035  
Other intangible assets   99,504     106,071     55,501     58,528     51,408  
Other assets   76,806     71,439     53,075     52,697     58,782  
Total assets $ 15,597,309   $ 15,055,806   $ 9,535,370   $ 9,068,308   $ 8,626,638  
                               
 LIABILITIES AND STOCKHOLDERS' EQUITY           
Deposits:          
Non-interest bearing transaction accounts $ 2,734,287   $ 2,665,249   $ 1,669,860   $ 1,650,986   $ 1,554,675  
Interest bearing transaction accounts and savings deposits   6,720,754     6,494,896     4,344,779     4,141,426     3,987,730  
Time deposits less than $100,000   1,166,717     1,196,760     675,186     645,855     653,538  
Time deposits greater than $100,000     1,035,157       735,970       635,765       665,268       592,345  
Total deposits   11,656,915     11,092,875     7,325,590     7,103,535     6,788,288  
Federal funds purchased and securities sold          
under agreements to repurchase   120,909     122,444     121,687     121,419     110,007  
Other borrowings   1,140,986     1,380,024     522,541     474,962     441,074  
Subordinated notes and debentures   468,465     140,565     67,418     67,312     60,503  
Other liabilities held for sale   2,781     157,366     176,964     -     -  
Accrued interest and other liabilities     98,202       77,968       63,971       67,004       55,877  
Total liabilities     13,488,258       12,971,242       8,278,171       7,834,232       7,455,749  
                               
Stockholders' equity:          
Common stock   922     920     644     644     628  
Surplus   1,590,547     1,586,034     763,121     761,432     716,250  
Undivided profits   551,644     514,874     504,085     483,322     468,309  
Accumulated other comprehensive loss:          
Unrealized depreciation on AFS securities     (34,062 )     (17,264 )     (10,651 )     (11,322 )     (14,298 )
Total stockholders' equity     2,109,051       2,084,564       1,257,199       1,234,076       1,170,889  
Total liabilities and stockholders' equity $   15,597,309   $   15,055,806   $   9,535,370   $   9,068,308   $   8,626,638  
                               
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Simmons First National Corporation  SFNC 
Consolidated Statements of Income - Quarter-to-Date
For the Quarters Ended  Mar 31
  Dec 31
  Sep 30
  Jun 30
  Mar 31
(Unaudited)  2018   2017   2017   2017   2017
($ in thousands, except per share data)                             
INTEREST INCOME           
  Loans  $ 143,350   $ 132,617   $ 77,457   $   73,549   $   68,728
  Interest bearing balances due from banks and federal funds sold    1,009     947     650       214       122
  Investment securities    12,622     11,456       9,218       9,990       9,451
  Mortgage loans held for sale    158     175       159       145       126
  TOTAL INTEREST INCOME    157,139     145,195       87,484       83,898       78,427
INTEREST EXPENSE                             
  Time deposits    4,842     3,944       2,110       1,832       1,758
  Other deposits    10,755     8,762       3,920       2,984       2,446
  Federal funds purchased and securities           
  sold under agreements to repurchase    110     97       83       92       75
  Other borrowings    5,139     3,993       1,875       1,559       1,194
  Subordinated notes and debentures    1,327     1,480       677       619       574
  TOTAL INTEREST EXPENSE    22,173     18,276       8,665       7,086       6,047
NET INTEREST INCOME    134,966     126,919       78,819       76,812       72,380
  Provision for loan losses    9,150     9,601       5,462       7,023       4,307
NET INTEREST INCOME AFTER PROVISION                             
  FOR LOAN LOSSES      125,816       117,318       73,357       69,789       68,073
NON-INTEREST INCOME                             
  Trust income      5,249       6,020       4,225       4,113       4,212
  Service charges on deposit accounts      10,345       10,587       8,907       8,483       8,102
  Other service charges and fees      2,750       2,774       2,433       2,515       2,197
  Mortgage and SBA lending income      4,445       3,713       3,219       3,961       2,423
  Investment banking income      834       786       680       637       690
  Debit and credit card fees      8,796       8,801       8,864       8,659       7,934
  Bank owned life insurance income      1,103       1,101       725       859       818
  Gain (loss) on sale of securities, net      6       (1,243 )     3       2,236       63
  Other income      4,007       4,090       7,276       4,281       3,621
  TOTAL NON-INTEREST INCOME      37,535       36,629       36,332       35,744       30,060
NON-INTEREST EXPENSE                             
  Salaries and employee benefits      56,357       49,288       35,285       34,205       35,536
  Occupancy expense, net      6,960       6,700       4,928       4,868       4,663
  Furniture and equipment expense      4,403       5,533       4,840       4,550       4,443
  Other real estate and foreclosure expense      1,020       865       1,071       517       589
  Deposit insurance      2,128       1,216       1,020       780       680
  Merger-related costs      1,711       14,044       752       6,603       524
  Other operating expenses      25,494       30,844       18,263       19,885       19,887
  TOTAL NON-INTEREST EXPENSE      98,073       108,490       66,159       71,408       66,322
NET INCOME BEFORE INCOME TAXES      65,278       45,457       43,530       34,125       31,811
  Provision for income taxes      13,966       26,554       14,678       11,060       9,691
NET INCOME  $   51,312   $   18,903   $   28,852   $   23,065   $   22,120
BASIC EARNINGS PER SHARE  $   0.56   $   0.22   $   0.45   $   0.36   $   0.35
DILUTED EARNINGS PER SHARE  $   0.55   $   0.22   $   0.44   $   0.36   $   0.35
                             
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Simmons First National Corporation  SFNC 
Consolidated Risk-Based Capital
For the Quarters Ended   Mar 31
   Dec 31
   Sep 30
   Jun 30
   Mar 31
(Unaudited)  2018   2017   2017   2017   2017
($ in thousands)                                       
Tier 1 capital          
Stockholders' equity $ 2,109,051     $ 2,084,564     $ 1,257,199     $ 1,234,076     $ 1,170,889  
Trust preferred securities, net allowable   -       -       67,418       67,312       60,503  
Disallowed intangible assets, net of deferred tax   (918,162 )     (902,371 )     (401,419 )     (406,990 )     (361,944 )
Unrealized loss on AFS securities   34,062       17,264       10,651       11,322       14,298  
Total Tier 1 capital   1,224,951       1,199,457       933,849       905,720       883,746  
                                       
Tier 2 capital          
Qualifying unrealized gain on AFS equity securities   1       1       1       1       2  
Trust preferred securities and subordinated debt   468,465       140,565       -       -       -  
Qualifying allowance for loan losses and          
reserve for unfunded commitments   54,436       48,947       46,709       45,369       41,303  
Total Tier 2 capital   522,902       189,513       46,710       45,370       41,305  
Total risk-based capital $ 1,747,853     $ 1,388,970     $ 980,559     $ 951,090     $ 925,051  
                                       
Common equity          
Tier 1 capital $ 1,224,951     $ 1,199,457     $ 933,849     $ 905,720     $ 883,746  
Less: Trust preferred securities   -       -       (67,418 )     (67,312 )     (60,503 )
Total common equity $ 1,224,951     $ 1,199,457     $ 866,431     $ 838,408     $ 823,243  
                                       
Risk weighted assets $ 12,700,874     $ 12,234,160     $ 7,239,923     $ 6,925,727     $ 6,425,150  
                                       
Adjusted average assets for leverage ratio $ 14,209,148     $ 13,016,478     $ 8,789,175     $ 8,424,763     $ 8,076,525  
                                       
Ratios at end of quarter          
Equity to assets   13.52 %     13.85 %     13.18 %     13.61 %     13.57 %
Tangible common equity to tangible assets (1)   7.94 %     8.05 %     9.07 %     9.22 %     9.35 %
Common equity Tier 1 ratio (CET1)   9.64 %     9.80 %     11.97 %     12.11 %     12.81 %
Tier 1 leverage ratio   8.62 %     9.21 %     10.62 %     10.75 %     10.94 %
Tier 1 risk-based capital ratio   9.64 %     9.80 %     12.90 %     13.08 %     13.75 %
Total risk-based capital ratio   13.76 %     11.35 %     13.54 %     13.73 %     14.40 %
           
           
(1) Calculations of tangible common equity to tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release.
 
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Simmons First National Corporation  SFNC 
Consolidated Loans and Investments           
For the Quarters Ended   Mar 31
   Dec 31
   Sep 30
   Jun 30
   Mar 31
(Unaudited)   2018   2017   2017   2017   2017
($ in thousands)                             
Legacy Loan Portfolio - End of Period (1)          
Consumer          
Credit cards $ 176,602   $ 185,422   $ 176,316   $ 176,953   $ 171,947
Other consumer   284,285     280,094     317,946     366,136     349,200
Total consumer   460,887     465,516     494,262     543,089     521,147
Real Estate          
Construction   786,077     614,155     515,274     457,896     365,051
Single-family residential   1,193,464     1,094,633     1,048,403     1,014,412     957,717
Other commercial   2,611,358     2,530,824     2,231,223     2,089,707     1,959,677
Total real estate   4,590,899     4,239,612     3,794,900     3,562,015     3,282,445
Commercial          
Commercial   971,704     825,217     688,960     678,932     657,606
Agricultural   128,247     148,302     207,849     191,345     141,125
Total commercial   1,099,951     973,519     896,809     870,277     798,731
Other   138,646     26,962     25,341     25,191     30,582
Total Loans $ 6,290,383   $ 5,705,609   $ 5,211,312   $ 5,000,572   $ 4,632,905
                             
(1) Excludes all acquired loans.           
           
Investment Securities - End of Period          
Held-to-Maturity           
U.S. Government agencies $ 46,961   $ 46,945   $ 66,928   $ 67,912   $ 68,895
Mortgage-backed securities   15,404     16,132     16,972     17,882     18,743
State and political subdivisions   286,901     301,491     320,116     331,249     341,854
Other securities   3,490     3,490     2,017     1,960     1,684
Total held-to-maturity   352,756     368,058     406,033     419,003     431,176
Available-for-Sale                             
U.S. Treasury $ -   $ -   $ -   $ 19,997   $ -
U.S. Government agencies   149,804     139,724     208,220     147,619     142,356
Mortgage-backed securities   1,356,179     1,187,317     959,698     878,205     927,277
State and political subdivisions   185,888     143,165     84,822     83,672     130,747
FHLB stock   58,177     58,914     24,415     21,772     19,149
Other securities   80,065     60,397     40,265     39,335     38,285
Total available-for-sale   1,830,113     1,589,517     1,317,420     1,190,600     1,257,814
Total investment securities $ 2,182,869   $ 1,957,575   $ 1,723,453   $ 1,609,603   $ 1,688,990
Fair value - HTM investment securities $ 354,649   $ 373,298   $ 412,140   $ 425,263   $ 435,701
                             
Investment Securities - QTD Average          
Taxable securities $ 1,618,270   $ 1,569,173   $ 1,229,172   $ 1,244,071   $ 1,185,794
Tax exempt securities   460,675     446,040     409,062     467,420     455,481
Total investment securities - QTD average $ 2,078,945   $ 2,015,213   $ 1,638,234   $ 1,711,491   $ 1,641,275
                             
           
 Page 4 
 


Simmons First National Corporation           SFNC 
Consolidated Loans and Credit Coverage           
For the Quarters Ended  Mar 31
  Dec 31
  Sep 30
  Jun 30
  Mar 31 
(Unaudited)  2018   2017   2017   2017   2017
($ in thousands)           
LOANS           
Legacy loans $ 6,290,383     $ 5,705,609     $ 5,211,312     $ 5,000,572     $ 4,632,905  
Allowance for loan losses (legacy loans)   (47,207 )     (41,668 )     (42,717 )     (41,379 )     (37,865 )
Legacy loans (net of allowance)   6,243,176       5,663,941       5,168,595       4,959,193       4,595,040  
Loans acquired   4,776,439       5,163,769       1,117,424       1,253,539       1,173,667  
Credit discount   (79,087 )     (89,275 )     (24,994 )     (28,409 )     (28,941 )
Allowance for loan losses (loans acquired)   (407 )     (418 )     (391 )     (391 )     (435 )
Loans acquired (net of discount and allowance)   4,696,945       5,074,076       1,092,039       1,224,739       1,144,291  
Net loans $ 10,940,121     $ 10,738,017     $ 6,260,634     $ 6,183,932     $ 5,739,331  
                                       
           
Loan Coverage Ratios           
Allowance for loan losses to legacy loans   0.75 %     0.73 %     0.82 %     0.83 %     0.82 %
           
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)   1.66 %     1.74 %     2.27 %     2.30 %     2.50 %
           
Total allowance and credit coverage (non-GAAP) (1)   1.14 %     1.21 %     1.08 %     1.12 %     1.16 %
           
           
(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  Mar 31
  Dec 31
  Sep 30
  Jun 30
  Mar 31
(Unaudited)  2018   2017   2017   2017   2017
($ in thousands)                                       
Allowance for Loan Losses (Legacy Loans)          
Balance, beginning of quarter $ 41,668     $ 42,717     $ 41,379     $ 37,865     $ 36,286  
Loans charged off                                      
Credit cards   999       943       1,017       901       1,044  
Other consumer   1,056       781       819       993       1,174  
Real estate   455       4,725       896       1,712       656  
Commercial   1,761       4,754       2,442       349       292  
Total loans charged off   4,271       11,203       5,174       3,955       3,166  
                                       
Recoveries of loans previously charged off          
Credit cards   263       233       275       277       236  
Other consumer   94       468       445       636       690  
Real estate   302       233       309       216       232  
Commercial   69       20       21       32       30  
Total recoveries   728       954       1,050       1,161       1,188  
Net loans charged off   3,543       10,249       4,124       2,794       1,978  
Provision for loan losses   9,082       9,200       5,462       6,308       3,557  
Balance, end of quarter $ 47,207     $ 41,668     $ 42,717     $ 41,379     $ 37,865  
                                       
Non-performing assets (1) (2)          
Non-performing loans          
Nonaccrual loans 47,395     45,642     54,439     57,127     52,913  
Loans past due 90 days or more   336       520       232       281       231  
Total non-performing loans   47,731       46,162       54,671       57,408       53,144  
Other non-performing assets                                      
Foreclosed assets and other real estate owned (2)   29,140       32,118       31,477       26,012       26,421  
Other non-performing assets   794       675       639       485       352  
Total other non-performing assets   29,934       32,793       32,116       26,497       26,773  
Total non-performing assets $ 77,665     $ 78,955     $ 86,787     $ 83,905     $ 79,917  
Performing TDRs (troubled debt restructurings) $ 6,459     $ 7,107     $ 9,212     $ 8,794     $ 10,833  
                                       
Ratios (1) (2)          
Allowance for loan losses to total loans   0.75 %     0.73 %     0.82 %     0.83 %     0.82 %
Allowance for loan losses to non-performing loans   99 %     90 %     78 %     72 %     71 %
Non-performing loans to total loans   0.76 %     0.81 %     1.05 %     1.15 %     1.15 %
Non-performing assets (including performing TDRs)          
to total assets   0.54 %     0.57 %     1.01 %     1.02 %     1.05 %
Non-performing assets to total assets   0.50 %     0.52 %     0.91 %     0.93 %     0.93 %
Annualized net charge offs to total loans   0.24 %     0.53 %     0.32 %     0.23 %     0.18 %
Annualized net credit card charge offs to          
total credit card loans   1.63 %     1.54 %     1.65 %     1.42 %     1.84 %
Annualized net charge offs to total loans          
(excluding credit cards)   0.20 %     0.51 %     0.27 %     0.19 %     0.11 %
           
 (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
Mar 2018
  Three Months Ended
Dec 2017
  Three Months Ended
Mar 2017
 ($ 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  
and federal funds sold 338,505   1,009   1.21 %   342,589   947   1.10 %   131,328   122   0.38 %
investment securities - taxable   1,785,874     9,599   2.18 %     1,702,531     8,592   2.00 %     1,292,441     6,477   2.03 %
Investment securities - non-taxable (FTE)   293,071     4,083   5.65 %     312,682     4,702   5.97 %     348,834     4,884   5.68 %
Mortgage loans held for sale   14,775     158   4.34 %     15,144     175   4.58 %     11,473     126   4.45 %
Assets held in trading accounts   -     -   0.00 %     14     -   0.00 %     48     -   0.00 %
Loans, including acquired loans     10,819,324       143,420   5.38 %       9,772,043       132,704   5.39 %       5,685,585       68,783   4.91 %
Total interest earning assets (FTE)   13,251,549       158,269   4.84 %     12,145,003       147,120   4.81 %     7,469,709       80,392   4.36 %
Non-earning assets     1,836,661                   1,752,775                   944,761            
Total assets $   15,088,210         $   13,897,778         $   8,414,470      
                                   
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:                      
Interest bearing transaction and savings accounts $ 6,579,295   $ 10,755   0.66 %   $ 6,132,456   $ 8,762   0.57 %   $ 3,950,169   $ 2,446   0.25 %
Time deposits     2,003,668       4,842   0.98 %       1,852,148       3,944   0.84 %       1,262,430       1,758   0.56 %
Total interest bearing deposits   8,582,963     15,597   0.74 %     7,984,604     12,706   0.63 %     5,212,599     4,204   0.33 %
Federal funds purchased and securities                       
sold under agreement to repurchase   120,443     110   0.37 %     126,432     97   0.30 %     111,474     75   0.27 %
Other borrowings   1,282,527     5,139   1.63 %     988,614     3,993   1.60 %     345,664     1,194   1.40 %
Subordinated notes and debentures     162,813       1,327   3.31 %       127,680       1,480   4.60 %       60,452       574   3.85 %
Total interest bearing liabilities   10,148,746       22,173   0.89 %     9,227,330       18,276   0.79 %     5,730,189       6,047   0.43 %
Non-interest bearing liabilities:                                        
Non-interest bearing deposits   2,632,182           2,476,235           1,466,501      
Other liabilities     204,230             262,409             51,307      
Total liabilities   12,985,158           11,965,974           7,247,997      
Stockholders' equity     2,103,052             1,931,804             1,166,473      
Total liabilities and stockholders' equity $   15,088,210         $   13,897,778         $   8,414,470      
Net interest income (FTE)       $   136,096             $   128,844             $   74,345    
Net interest spread (FTE)         3.95 %           4.02 %           3.93 %
Net interest margin (FTE) - quarter-to-date     4.17 %       4.21 %       4.04 %
                       
Net interest margin (FTE) - year-to-date     4.17 %       4.07 %       4.04 %
                       
Core net interest margin (FTE) - quarter-to-date (1)     3.82 %       3.70 %       3.80 %
Core loan yield (FTE) - quarter-to-date (1)     4.95 %       4.75 %       4.59 %
                       
Core net interest margin (FTE) - year-to-date (1)     3.82 %       3.76 %       3.80 %
Core loan yield (FTE) - year-to-date (1)     4.95 %       4.69 %       4.59 %
                       
(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  Mar 31
  Dec 31
  Sep 30
  Jun 30
  Mar 31
(Unaudited)  2018    2017    2017    2017    2017 
($ in thousands, except share data)                               
QUARTER-TO-DATE          
Financial Highlights - GAAP          
Net Income $ 51,312   $ 18,903   $ 28,852   $ 23,065   $ 22,120  
Diluted earnings per share   0.55     0.22     0.44     0.36     0.35  
Return on average assets   1.38%     0.54%     1.25%     1.05%     1.07%  
Return on average common equity   9.90%     3.88%     9.12%     7.65%     7.69%  
Return on tangible common equity   18.77%     7.53%     14.47%     12.13%     12.22%  
Net interest margin (FTE)   4.17%     4.21%     3.91%     4.04%     4.04%  
FTE adjustment   1,130     1,925     1,751     2,082     1,965  
Amortization of intangibles   2,837     2,839     1,724     1,553     1,550  
Amortization of intangibles, net of taxes   2,096     1,725     1,048     944     942  
Average diluted shares outstanding   92,638,765     87,036,044     64,847,592     64,051,560     63,225,800  
Cash dividends declared per common share   0.15     0.13     0.13     0.13     0.13  
Financial Highlights - Core (non-GAAP)          
Core earnings (excludes non-core items) (1) $ 52,618   $ 42,018   $ 27,746   $ 26,753   $ 22,532  
Diluted core earnings per share (1)   0.57     0.48     0.43     0.42     0.36  
Core net interest margin (FTE) (2)   3.82%     3.70%     3.77%     3.79%     3.80%  
Accretable yield on acquired loans   11,294     15,684     2,890     4,792     4,427  
Efficiency ratio (1)   53.24%     51.36%     55.06%     56.04%     60.92%  
Core return on average assets (1)   1.41%     1.20%     1.20%     1.22%     1.09%  
Core return on average common equity (1)   10.15%     8.63%     8.77%     8.87%     7.83%  
Core return on tangible common equity (1)   19.23%     15.97%     13.93%     13.99%     12.44%  
YEAR-TO-DATE          
Financial Highlights - GAAP          
Net Income $ 51,312   $ 92,940   $ 74,037   $ 45,185   $ 22,120  
Diluted earnings per share   0.55     1.33     1.16     0.71     0.35  
Return on average assets   1.38%     0.92%     1.12%     1.06%     1.07%  
Return on average common equity   9.90%     6.68%     8.18%     7.67%     7.69%  
Return on tangible common equity   18.77%     11.26%     12.97%     12.17%     12.22%  
Net interest margin (FTE)   4.17%     4.07%     3.99%     4.04%     4.04%  
FTE adjustment   1,130     7,723     5,798     4,047     1,965  
Amortization of intangibles   2,837     7,666     4,827     3,103     1,550  
Amortization of intangibles, net of taxes   2,096     4,659     2,934     1,886     942  
Average diluted shares outstanding   92,638,765     69,852,920     64,014,270     63,588,726     63,225,800  
Cash dividends declared per common share   0.15     0.50     0.38     0.25     0.13  
Financial Highlights - Core (non-GAAP)          
Core earnings (excludes non-core items) (1) $ 52,618   $ 119,049   $ 77,031   $ 49,285   $ 22,532  
Diluted core earnings per share (1)   0.57     1.70     1.20     0.78     0.36  
Core net interest margin (FTE) (2)   3.82%     3.76%     3.79%     3.79%     3.80%  
Accretable yield on acquired loans   11,294     27,793     12,109     9,219     4,427  
Efficiency ratio (1)   53.24%     55.27%     57.25%     58.40%     60.92%  
Core return on average assets (1)   1.41%     1.18%     1.17%     1.15%     1.09%  
Core return on average common equity (1)   10.15%     8.56%     8.51%     8.37%     7.83%  
Core return on tangible common equity (1)   19.23%     14.28%     13.48%     13.23%     12.44%  
END OF PERIOD          
Book value per share $ 22.86   $ 22.65   $ 19.51   $ 19.16   $ 18.65  
Tangible book value per share   12.62     12.34     12.82     12.36     12.26  
Shares outstanding   92,242,389     92,029,118     64,424,484     64,425,664     62,776,714  
Full-time equivalent employees   2,626     2,640     1,942     1,919     1,876  
Total number of financial centers   200     200     156     161     151  
           
 (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 Mar 31
  Dec 31
  Sep 30
  Jun 30
  Mar 31
(Unaudited)   2018    2017    2017   2017   2017
($ in thousands, except per share data)                                       
QUARTER-TO-DATE          
Net Income $ 51,312     $ 18,903     $ 28,852     $ 23,065     $ 22,120  
Non-core items          
Gain on sale of P&C insurance business   -       -       (3,708 )     -       -  
Donation to Simmons Foundation   -       5,000       -       -       -  
Merger-related costs   1,711       14,044       752       6,603       524  
Branch right-sizing   57       116       435       (536 )     154  
Tax effect (1)   (462 )     (7,516 )     1,415       (2,379 )     (266 )
Net non-core items (before SAB 118 adjustment)   1,306       11,644       (1,106 )     3,688       412  
SAB 118 adjustment (2)   -       11,471       -       -       -  
Core earnings (non-GAAP) $ 52,618     $ 42,018     $ 27,746     $ 26,753     $ 22,532  
                                       
Diluted earnings per share $ 0.55     $ 0.22     $ 0.44     $ 0.36     $ 0.35  
Non-core items          
Gain on sale of P&C insurance business   -       -       (0.06 )     -       -  
Donation to Simmons Foundation   -       0.06       -       -       -  
Merger-related costs   0.02       0.17       0.01       0.11       0.01  
Branch right-sizing   -       -       0.01       (0.01 )     -  
Tax effect (1)   -       (0.10 )     0.03       (0.04 )     -  
Net non-core items (before SAB 118 adjustment)   0.02       0.13       (0.01 )     0.06       0.01  
SAB 118 adjustment (2)   -       0.13       -       -       -  
Core earnings (non-GAAP) $ 0.57     $ 0.48     $ 0.43     $ 0.42     $ 0.36  
                                       
YEAR-TO-DATE          
Net Income $ 51,312     $ 92,940     $ 74,037     $ 45,185     $ 22,120  
Non-core items          
Gain from early retirement of trust preferred securities   -       -       -       -       -  
Gain on sale of P&C insurance business   -       (3,708 )     (3,708 )     -       -  
Donation to Simmons Foundation   -       5,000       -       -       -  
Merger-related costs   1,711       21,923       7,879       7,127       524  
Branch right-sizing   57       169       53       (382 )     154  
Tax effect (1)   (462 )     (8,746 )     (1,230 )     (2,645 )     (266 )
Net non-core items (before SAB 118 adjustment)   1,306       14,638       2,994       4,100       412  
SAB 118 adjustment (2)   -       11,471       -       -       -  
Core earnings (non-GAAP) $ 52,618     $ 119,049     $ 77,031     $ 49,285     $ 22,532  
                                       
Diluted earnings per share $ 0.55     $ 1.33     $ 1.16     $ 0.71     $ 0.35  
Non-core items          
Gain from early retirement of trust preferred securities   -       -       -       -       -  
Gain on sale of P&C insurance business   -       (0.04 )     (0.06 )     -       -  
Donation to Simmons Foundation   -       0.07          
Merger-related costs   0.02       0.31       0.12       0.12       0.01  
Branch right-sizing   -       -       -       (0.01 )     -  
Tax effect (1)   -       (0.13 )     (0.02 )     (0.04 )     -  
Net non-core items (before SAB 118 adjustment)   0.02       0.21       0.04       0.07       0.01  
SAB 118 adjustment (2)   -       0.16       -       -       -  
Core earnings (non-GAAP) $ 0.57     $ 1.70     $ 1.20     $ 0.78     $ 0.36  
                                       
 (1) Effective tax rate of 26.135% for 2018 and 39.225% for prior years, 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 liabilities 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) Mar 31
  Dec 31
  Sept 30
  Jun 30
  Mar 31
  2018
  2017
  2017
  2017
  2017
($ 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 $ 2,109,051     $ 2,084,564     $ 1,257,199     $ 1,234,076     $ 1,170,889  
Intangible assets:          
Goodwill   (845,687 )     (842,651 )     (375,731 )     (379,437 )     (350,035 )
Other intangible assets   (99,504 )     (106,071 )     (55,501 )     (58,528 )     (51,408 )
Total intangibles   (945,191 )     (948,722 )     (431,232 )     (437,965 )     (401,443 )
Tangible common stockholders' equity $ 1,163,860     $ 1,135,842     $ 825,967     $ 796,111     $ 769,446  
                                       
Total assets $ 15,597,309     $ 15,055,806     $ 9,535,370     $ 9,068,308     $ 8,626,638  
Intangible assets:          
Goodwill   (845,687 )     (842,651 )     (375,731 )     (379,437 )     (350,035 )
Other intangible assets   (99,504 )     (106,071 )     (55,501 )     (58,528 )     (51,408 )
Total intangibles   (945,191 )     (948,722 )     (431,232 )     (437,965 )     (401,443 )
Tangible assets $ 14,652,118     $ 14,107,084     $ 9,104,138     $ 8,630,343     $ 8,225,195  
                                       
Ratio of equity to assets   13.52%       13.85%       13.18%       13.61%       13.57%  
Ratio of tangible common equity to tangible assets   7.94%       8.05%       9.07%       9.22%       9.35%  
           
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 $ 79,087     $ 89,275     $ 24,994     $ 28,409     $ 28,941  
Allowance for loan losses on acquired loans   407       418       391       391       435  
Total credit discount and ALLL on acquired loans $ 79,494     $ 89,693     $ 25,385     $ 28,800     $ 29,376  
Total loans acquired $ 4,776,439     $ 5,163,769     $ 1,117,424     $ 1,253,539     $ 1,173,667  
Discount and ALLL on acquired loans to acquired loans   1.66%       1.74%       2.27%       2.30%       2.50%  
           
Calculation of Total Allowance and Credit Coverage          
           
Allowance for loan losses $ 47,207     $ 41,668     $ 42,717     $ 41,379     $ 37,865  
Total credit discount and ALLL on acquired loans   79,494       89,693       25,385       28,800       29,376  
Total allowance and credit discount $ 126,701     $ 131,361     $ 68,102     $ 70,179     $ 67,241  
Total loans $ 11,066,822     $ 10,869,378     $ 6,328,736     $ 6,254,155     $ 5,806,572  
Total allowance and credit coverage   1.14%       1.21%       1.08%       1.12%       1.16%  
           
Calculation of Tangible Book Value per Share          
           
Total common stockholders' equity $ 2,109,051     $ 2,084,564     $ 1,257,199     $ 1,234,076     $ 1,170,889  
Intangible assets:          
Goodwill   (845,687 )     (842,651 )     (375,731 )     (379,437 )     (350,035 )
Other intangible assets   (99,504 )     (106,071 )     (55,501 )     (58,528 )     (51,408 )
Total intangibles   (945,191 )     (948,722 )     (431,232 )     (437,965 )     (401,443 )
Tangible common stockholders' equity $ 1,163,860     $ 1,135,842     $ 825,967     $ 796,111     $ 769,446  
Shares of common stock outstanding   92,242,389       92,029,118       64,424,484       64,425,664       62,776,714  
Book value per common share $ 22.86     $ 22.65     $ 19.51     $ 19.16     $ 18.65  
Tangible book value per common share $ 12.62     $ 12.34     $ 12.82     $ 12.36     $ 12.26  
                                       
 Page 10 
 


Simmons First National Corporation  SFNC 
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date
For the Quarters Ended
(Unaudited)  Mar 31
  Dec 31
  Sept 30
  Jun 30
  Mar 31
  2018
  2017
  2017
  2017
  2017
($ in thousands)                                       
Calculation of Core Return on Average Assets          
           
Net income $ 51,312     $ 18,903     $ 28,852     $ 23,065     $ 22,120  
Net non-core items, net of taxes, adjustment   1,306       23,115       (1,106 )     3,688       412  
Core earnings $ 52,618     $ 42,018     $ 27,746     $ 26,753     $ 22,532  
                                       
Average total assets $ 15,088,210     $ 13,897,778     $ 9,175,607     $ 8,812,460     $ 8,414,470  
                                       
Return on average assets   1.38%       0.54%       1.25%       1.05%       1.07%  
Core return on average assets   1.41%       1.20%       1.20%       1.22%       1.09%  
           
Calculation of Return on Tangible Common Equity          
           
Net income $ 51,312     $ 18,903     $ 28,852     $ 23,065     $ 22,120  
Amortization of intangibles, net of taxes   2,096       1,725       1,048       944       942  
Total income available to common stockholders $ 53,408     $ 20,628     $ 29,900     $ 24,009     $ 23,062  
                                       
Net non-core items, net of taxes   1,306       23,115       (1,106 )     3,688       412  
Core earnings   52,618       42,018       27,746       26,753       22,532  
Amortization of intangibles, net of taxes   2,096       1,725       1,048       944       942  
Total core income available to common stockholders $ 54,714     $ 43,743     $ 28,794     $ 27,697     $ 23,474  
                                       
Average common stockholders' equity $ 2,103,052     $ 1,931,804     $ 1,255,694     $ 1,209,343     $ 1,166,473  
Average intangible assets:          
Goodwill   (844,148 )     (731,661 )     (378,387 )     (362,925 )     (348,837 )
Other intangibles   (104,718 )     (113,770 )     (57,232 )     (52,419 )     (52,169 )
Total average intangibles   (948,866 )     (845,431 )     (435,619 )     (415,344 )     (401,006 )
Average tangible common stockholders' equity $ 1,154,186     $ 1,086,373     $ 820,075     $ 793,999     $ 765,467  
                                       
Return on average common equity   9.90%       3.88%       9.12%       7.65%       7.69%  
Return on tangible common equity   18.77%       7.53%       14.47%       12.13%       12.22%  
Core return on average common equity   10.15%       8.63%       8.77%       8.87%       7.83%  
Core return on tangible common equity   19.23%       15.97%       13.93%       13.99%       12.44%  
                                       
Calculation of Efficiency Ratio (1)          
           
Non-interest expense $ 98,073     $ 108,490     $ 66,159     $ 71,408     $ 66,322  
Non-core non-interest expense adjustment   (1,772 )     (19,160 )     (862 )     (6,700 )     (635 )
Other real estate and foreclosure expense adjustment   (1,020 )     (865 )     (1,071 )     (517 )     (550 )
Amortization of intangibles adjustment   (2,837 )     (2,839 )     (1,724 )     (1,553 )     (1,550 )
Efficiency ratio numerator $ 92,444     $ 85,626     $ 62,502     $ 62,638     $ 63,587  
                                       
Net-interest income $ 134,966     $ 126,919     $ 78,819     $ 76,812     $ 72,380  
Non-interest income   37,535       36,629       36,332       35,744       30,060  
Non-core non-interest income adjustment   (4 )     -       (3,383 )     (632 )     43  
Fully tax-equivalent adjustment   1,130       1,925       1,751       2,082       1,965  
(Gain) loss on sale of securities   (6 )     1,243       (3 )     (2,236 )     (63 )
Efficiency ratio denominator $ 173,621     $ 166,716     $ 113,516     $ 111,770     $ 104,385  
                                       
Efficiency ratio (1)   53.24%       51.36%       55.06%       56.04%       60.92%  
                                       
Calculation of Core Net Interest Margin          
           
Net interest income $ 134,966     $ 126,919     $ 78,819     $ 76,812     $ 72,380  
Fully tax-equivalent adjustment   1,130       1,925       1,751       2,082       1,965  
Fully tax-equivalent net interest income   136,096       128,844       80,570       78,894       74,345  
           
Total accretable yield   (11,294 )     (15,684 )     (2,890 )     (4,792 )     (4,427 )
Core net interest income $ 124,802     $ 113,160     $ 77,680     $ 74,102     $ 69,918  
Average earning assets $ 13,251,549     $ 12,145,003     $ 8,182,292     $ 7,841,208     $ 7,469,709  
                                       
Net interest margin   4.17%       4.21%       3.91%       4.04%       4.04%  
Core net interest margin   3.82%       3.70%       3.77%       3.79%       3.80%  
                                       
Calculation of Core Loan Yield          
           
Loan interest income $ 143,350     $ 132,617     $ 77,457     $ 73,549     $ 68,728  
Total accretable yield   (11,294 )     (15,684 )     (2,890 )     (4,792 )     (4,427 )
Core loan interest income $ 132,056     $ 116,933     $ 74,567     $ 68,757     $ 64,301  
Average loan balance $ 10,819,324     $ 9,772,043     $ 6,261,507     $ 5,954,019     $ 5,685,585  
                                       
Core loan yield   4.95%       4.75%       4.72%       4.63%       4.59%  
                                       
(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) Mar 31
  Dec 31
  Sept 30
  Jun 30
  Mar 31
  2018   2017   2017   2017   2017
($ in thousands)                                       
Calculation of Core Return on Average Assets          
           
Net income $ 51,312     $ 92,940     $ 74,037     $ 45,185     $ 22,120  
Net non-core items, net of taxes, adjustment   1,306       26,109       2,994       4,100       412  
Core earnings $ 52,618     $ 119,049     $ 77,031     $ 49,285     $ 22,532  
                                       
Average total assets $ 15,088,210     $ 10,074,951     $ 8,800,675     $ 8,613,240     $ 8,414,470  
                                       
Return on average assets   1.38%       0.92%       1.12%       1.06%       1.07%  
Core return on average assets   1.41%       1.18%       1.17%       1.15%       1.09%  
                                       
Calculation of Return on Tangible Common Equity          
           
Net income $ 51,312     $ 92,940     $ 74,037     $ 45,185     $ 22,120  
Amortization of intangibles, net of taxes   2,096       4,659       2,934       1,886       942  
Total income available to common stockholders $ 53,408     $ 97,599     $ 76,971     $ 47,071     $ 23,062  
                                       
Net non-core items, net of taxes   1,306       26,109       2,994       4,100       412  
Core earnings   52,618       119,049       77,031       49,285       22,532  
Amortization of intangibles, net of taxes   2,096       4,659       2,934       1,886       942  
Total core income available to common stockholders $ 54,714     $ 123,708     $ 79,965     $ 51,171     $ 23,474  
                                       
Average common stockholders' equity $ 2,103,052     $ 1,390,815     $ 1,210,487     $ 1,187,906     $ 1,166,473  
Average intangible assets:          
Goodwill   (844,148 )     (455,453 )     (363,383 )     (355,881 )     (348,837 )
Other intangibles   (104,718 )     (68,896 )     (53,941 )     (52,294 )     (52,169 )
Total average intangibles   (948,866 )     (524,349 )     (417,324 )     (408,175 )     (401,006 )
Average tangible common stockholders' equity $ 1,154,186     $ 866,466     $ 793,163     $ 779,731     $ 765,467  
                                       
Return on average common equity   9.90%       6.68%       8.18%       7.67%       7.69%  
Return on tangible common equity   18.77%       11.26%       12.97%       12.17%       12.22%  
Core return on average common equity   10.15%       8.56%       8.51%       8.37%       7.83%  
Core return on tangible common equity   19.23%       14.28%       13.48%       13.23%       12.44%  
                                       
Calculation of Efficiency Ratio (1)          
           
Non-interest expense $ 98,073     $ 312,379     $ 203,889     $ 137,730     $ 66,322  
Non-core non-interest expense adjustment   (1,772 )     (27,357 )     (8,197 )     (7,335 )     (635 )
Other real estate and foreclosure expense adjustment   (1,020 )     (3,042 )     (2,177 )     (1,067 )     (550 )
Amortization of intangibles adjustment   (2,837 )     (7,666 )     (4,827 )     (3,103 )     (1,550 )
Efficiency ratio numerator $ 92,444     $ 274,314     $ 188,688     $ 126,225     $ 63,587  
                                       
Net-interest income $ 134,966     $ 354,930     $ 228,011     $ 149,192     $ 72,380  
Non-interest income   37,535       138,765       102,136       65,804       30,060  
Non-core non-interest income adjustment   (4 )     (3,972 )     (3,972 )     (589 )     43  
Fully tax-equivalent adjustment   1,130       7,723       5,798       4,047       1,965  
(Gain) loss on sale of securities   (6 )     (1,059 )     (2,302 )     (2,299 )     (63 )
Efficiency ratio denominator $ 173,621     $ 496,387     $ 329,671     $ 216,155     $ 104,385  
                                       
Efficiency ratio (1)   53.24%       55.27%       57.25%       58.40%       60.92%  
                                       
Calculation of Core Net Interest Margin          
           
Net interest income $ 134,966     $ 354,930     $ 228,011     $ 149,192     $ 72,380  
Fully tax-equivalent adjustment   1,130       7,723       5,798       4,047       1,965  
Fully tax-equivalent net interest income   136,096       362,653       233,809       153,239       74,345  
           
Total accretable yield   (11,294 )     (27,793 )     (12,109 )     (9,219 )     (4,427 )
Core net interest income $ 124,802     $ 334,860     $ 221,700     $ 144,020     $ 69,918  
Average earning assets $ 13,251,549     $ 8,908,418     $ 7,829,548     $ 7,653,177     $ 7,469,709  
                                       
Net interest margin   4.17%       4.07%       3.99%       4.04%       4.04%  
Core net interest margin   3.82%       3.76%       3.79%       3.79%       3.80%  
                                       
Calculation of Core Loan Yield          
           
Loan interest income $ 143,350     $ 352,351     $ 219,734     $ 142,277     $ 68,728  
Total accretable yield   (11,294 )     (27,793 )     (12,109 )     (9,219 )     (4,427 )
Core loan interest income $ 132,056     $ 324,558     $ 207,625     $ 133,058     $ 64,301  
Average loan balance $ 10,819,324     $ 6,918,293     $ 5,967,036     $ 5,819,803     $ 5,685,585  
                                       
Core loan yield   4.95%       4.69%       4.65%       4.61%       4.59%  
           
(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

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