PINE BLUFF, Ark., Jan. 21, 2016 (GLOBE NEWSWIRE) -- Simmons First National Corporation (NASDAQ:SFNC) today announced record core earnings of $25.9 million for the fourth quarter of 2015, an increase of $14.5 million, or 127.6 percent, compared with the same quarter last year. Diluted core earnings per share were a record $0.86, an increase of $0.22, or 34.4 percent. Including the non-core items, net income was $23.8 million for the fourth quarter of 2015, an increase of $11.1 million, or 88.2 percent, compared with the same quarter last year. Diluted earnings per share were $0.78, an increase of $0.06, or 8.3 percent.

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

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

Loans

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

Deposits

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

Net Interest Income

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

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

Non-Interest Income

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

Non-Interest Expense

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

Asset Quality

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

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

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

Capital

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

Simmons First National Corporation

Simmons First National Corporation is an Arkansas-based financial holding company with total assets of $7.6 billion, conducting financial operations throughout Arkansas, Kansas, Missouri and Tennessee. The company's common stock trades on the NASDAQ Global Select Market under the symbol "SFNC".

Conference Call

Management will conduct a conference call to review this information beginning at 3 p.m. CST on Thursday, Jan. 21, 2016. Interested persons can listen to this call by dialing toll-free 1-866-298-7926 (United States and Canada only) and asking for the Simmons First National Corporation conference call, conference ID 14837859. In addition, the call will be available live or in recorded version on the company’s website at www.simmonsfirst.com.

Non-GAAP Financial Measures

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

Forward-Looking Statements

Statements in this news release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements of this type speak only as of the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors, including, but not limited to, economic conditions, credit quality, interest rates, loan demand and changes in the assumptions used in making the forward-looking statements, could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect Simmons First National Corporation’s financial results is included in its Form 10-K filing with the Securities and Exchange Commission.

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Simmons First National Corporation													SFNC
Consolidated - Reconciliation of Core Earnings (non-GAAP)
For the Quarters Ended	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31
(Unaudited)		2015			2015			2015			2015			2014
($ in thousands, except per share data)
QUARTER-TO-DATE
Net Income	$	23,782		$	21,598		$	20,018		$	8,709		$	12,639
Nonrecurring items
Accelerated vesting on retirement agreements		2,209			-			-			-			-
Gain on sale of banking operations		-			(2,110	)		-			-			-
Loss on FDIC loss-share termination		-			7,476			-			-			-
Merger-related costs		1,237			857			1,247			10,419			1,218
Change-in-control payments		-			-			-			-			885
Branch right-sizing		60			304			2,745			35			(4,221	)
Charter consolidation costs		-			-			-			-			42
Tax effect (1)		(1,375	)		(2,560	)		(1,566	)		(3,463	)		824
Net nonrecurring items		2,131			3,967			2,426			6,991			(1,252	)
Core earnings (non-GAAP)	$	25,913		$	25,565		$	22,444		$	15,700		$	11,387
Diluted earnings per share	$	0.78		$	0.72		$	0.67		$	0.39		$	0.72
Nonrecurring items
Accelerated vesting on retirement agreements		0.08			-			-			-			-
Gain on sale of banking operations		-			(0.07	)		-			-			-
Loss on FDIC loss-share termination		-			0.25			-			-			-
Merger-related costs		0.05			0.03			0.04			0.47			0.07
Change-in-control payments		-			-			-			-			0.05
Branch right-sizing		-			0.01			0.09			-			(0.24	)
Charter consolidation costs		-			-			-			-			-
Tax effect (1)		(0.05	)		(0.09	)		(0.05	)		(0.16	)		0.04
Net nonrecurring items		0.08			0.13			0.08			0.31			(0.08	)
Core earnings (non-GAAP)	$	0.86		$	0.85		$	0.75		$	0.70		$	0.64
YEAR-TO-DATE
Net Income	$	74,107		$	50,325		$	28,727		$	8,709		$	35,688
Nonrecurring items
Accelerated vesting on retirement agreements		2,209			-			-			-			-
Gain on sale of merchant services		-			-			-			-			(1,000	)
Gain on sale of banking operations		(2,110	)		(2,110	)		-			-			-
Loss on FDIC loss-share termination		7,476			7,476			-			-			-
Merger-related costs		13,760			12,523			11,666			10,419			7,470
Change-in-control payments		-			-			-			-			885
Branch right-sizing		3,144			3,084			2,780			35			(3,059	)
Charter consolidation costs		-			-			-			-			652
Tax effect (1)		(8,964	)		(7,589	)		(5,029	)		(3,463	)		(1,929	)
Net nonrecurring items		15,515			13,384			9,417			6,991			3,019
Core earnings (non-GAAP)	$	89,622		$	63,709		$	38,144		$	15,700		$	38,707
Diluted earnings per share	$	2.63		$	1.83		$	1.10		$	0.39		$	2.11
Nonrecurring items
Accelerated vesting on retirement agreements		0.08			-			-			-			-
Gain on sale of merchant services		-			-			-			-			(0.06	)
Gain on sale of banking operations		(0.07	)		(0.07	)		-			-			-
Loss on FDIC loss-share termination		0.27			0.27			-			-			-
Merger-related costs		0.49			0.46			0.45			0.47			0.44
Change-in-control payments		-			-			-			-			0.05
Branch right-sizing		0.11			0.11			0.11			-			(0.16	)
Charter consolidation costs		-			-			-			-			0.04
Tax effect (1)		(0.33	)		(0.28	)		(0.20	)		(0.16	)		(0.13	)
Net nonrecurring items		0.55			0.49			0.36			0.31			0.18
Core earnings (non-GAAP)	$	3.18		$	2.32		$	1.46		$	0.70		$	2.29
(1) Effective tax rate of 39.225%, adjusted for non-deductible merger-related costs.

FOR MORE INFORMATION CONTACT:
J. BURTON HICKS
Senior Vice President and Investor Relations Officer
Simmons First National Corporation
(870) 541-1000

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