PINE BLUFF, Ark., Oct. 22, 2018 (GLOBE NEWSWIRE) -- Simmons First National Corporation (NASDAQ: SFNC) today announced record net income of $55.2 million for the quarter ended September 30, 2018, compared to $28.9 million for the same period in 2017, an increase of $26.3 million, or 91.3%. Diluted earnings per share were $0.59, an increase of $0.15, or 34.1%, from the same period in 2017.  Included in third quarter 2018 results were $1.3 million in net after-tax merger-related and branch right-sizing costs. Excluding the impact of these items, core earnings were $56.5 million for the quarter ended September 30, 2018, compared to $27.7 million for the quarter ended September 30, 2017, an increase of $28.8 million, or 103.7%. Core diluted earnings per share were $0.61, an increase of $0.18, or 41.9%, from the same period in 2017.

Year-to-date net income for the first nine months of 2018 was $160.1 million, or $1.72 diluted earnings per share, compared to $74.0 million, or $1.16 diluted earnings per share, for the same period in 2017. Excluding $3.7 million in net after-tax merger-related and branch right sizing costs, year-to-date core earnings for 2018 were $163.8 million, an increase of $86.8 million compared to the same period last year.

“We are proud to again report record earnings for this quarter building off the strong results in the first half of the year,” said George A. Makris, Jr., chairman and CEO.

Makris continued, “We continue to experience excellent organic growth in all of our markets.  We are also very pleased that we have been able to balance year-to-date loan yields with deposit costs in this rising-rate environment.”

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:		3rd Qtr 2018	2nd Qtr 2018	4th Qtr 2017	3rd Qtr 2017
Net income		$55.2 million	$53.6 million	$18.9 million	$28.9 million
Diluted earnings per share		$0.59	$0.58	$0.43	$0.44
Return on avg assets		1.37%	1.38%	0.54%	1.25%
Return on avg common equity		10.06%	10.05%	3.88%	9.12%
Return on tangible common equity		18.38%	18.70%	7.53%	14.47%
Core earnings(1)		$56.5 million	$54.7 million	$42.0 million	$27.7 million
Diluted core earnings per share(1)		$0.61	$0.59	$0.48	$0.43
Core return on avg assets(1)		1.40%	1.41%	1.20%	1.20%
Core return on avg common equity(1)		10.30%	10.26%	8.63%	8.77%
Core return on tangible common equity(1)		18.80%	19.06%	15.97%	13.93%
Efficiency ratio		53.47%	52.70%	51.36%	55.06%

1. Core earnings excludes non-core items, and is a non-GAAP measurement.

Loans

		3rd Qtr 2018	2nd Qtr 2018	4th Qtr 2017	3rd Qtr 2017
Total loans		$11.9 billion	$11.4 billion	$10.8 billion	$6.3 billion
Legacy loans (all loans excluding loans acquired)		$8.1 billion	$7.1 billion	$5.7 billion	$5.2 billion
Loans acquired		$3.8 billion	$4.3 billion	$5.1 billion	$1.1 billion

Total loans, including those acquired, were $11.9 billion at September 30, 2018. On a linked-quarter basis (September 30, 2018 compared to June 30, 2018), total loans increased $492.3 million, or 4.3%.  Total loans increased $1.1 billion, or 10.0%, since December 31, 2017.   

Deposits

		3rd Qtr 2018	2nd Qtr 2018	4th Qtr 2017	3rd Qtr 2017
Total deposits		$12.1 billion	$12.0 billion	$11.1 billion	$7.3 billion
Non-time deposits		$9.6 billion	$9.6 billion	$9.2 billion	$6.0 billion
Time deposits		$2.5 billion	$2.4 billion	$1.9 billion	$1.3 billion

Total deposits were $12.1 billion at September 30, 2018, an increase of $135 million, or 1.1%, compared to the previous quarter.  Total deposits increased $1.0 billion, or 9.0%, since December 31, 2017.

Net Interest Income

	3rd Qtr 2018	2nd Qtr 2018	1st Qtr 2018	4th Qtr 2017	3rd Qtr 2017
Loan yield (1)	5.54%	5.40%	5.38%	5.39%	4.91%
Core loan yield (1) (2)	5.19%	5.04%	4.95%	4.75%	4.72%
Security yield (1)	2.74%	2.75%	2.67%	2.62%	2.64%
Cost of interest bearing deposits	1.05%	0.84%	0.74%	0.63%	0.43%
Cost of borrowed funds	2.48%	2.38%	1.70%	1.78%	1.52%
Net interest margin (1)	3.98%	3.99%	4.17%	4.21%	3.91%
Core net interest margin (1) (2)	3.71%	3.70%	3.82%	3.70%	3.77%

1. Fully tax equivalent.
2. Core loan yield and core net interest margin exclude accretion, and are non-GAAP measurements.

The Company’s net interest income for the third quarter of 2018 was $143.0 million, an increase of $64.1 million, or 81.4%, from the same period of 2017. Included in interest income was the yield accretion recognized on loans acquired of $10.0 million and $2.9 million for the third quarters of 2018 and 2017, respectively. Yield accretion was $5.2 million higher than projected during the quarter due to accelerated cash flows of acquired loans. Based on its cash flow projections, the Company expects accretion for the fourth quarter of approximately $4.2 million.

Net interest margin was 3.98% for the quarter ended September 30, 2018, a 1 basis point decrease from the second quarter. The Company’s core net interest margin, excluding the accretion, was 3.71% for the third quarter of 2018, a 1 basis point increase from June 30, 2018.  Cost of interest bearing deposits was 1.05% for the third quarter of 2018, a 62 basis point increase from September 30, 2017 and a 21 basis point increase from June 30, 2018.

Since December 2017, the Federal Reserve Board increased the Fed Funds target rate by 75 basis points. The Company’s deposit beta was 56% and the core loan beta was 59%.   During this same period, loan yield has increased 15 basis points and core loan yield has increased 44 basis points while cost of interest bearing deposits has risen 42 basis points.  The cost of borrowed funds increased 70 basis points. The subordinated debt issuance at the end of the first quarter had a 5 basis point impact on the Company’s third quarter net interest margin. The timing of existing subordinated debt prepayment had an additional 1 basis point impact.

Non-Interest Income

Non-interest income for the third quarter 2018 was $33.7 million, a decrease of $4.3 million compared to the previous quarter. The decrease was primarily due to decreases in debit card fees and mortgage lending income.  The interchange rate cap as established by the Durbin amendment became effective for the Company July 1, 2018, resulting in a $3.3 million reduction in debit card fees for the third quarter when compared to the second quarter.

Mortgage lending income was $1.4 million less than the second quarter mainly due to a continued slow-down in transactions driven by the rising rate environment.  SBA income was flat from prior quarter due to management remaining selective in the Company’s loan sales as premium rates have lowered in recent months to the 6 to 7% range compared to 10% during the first quarter of the year.

Non-Interest Expense

Non-interest expense for the third quarter of 2018 was $100.3 million, an increase of $1.7 million compared to the previous quarter. Included in this quarter were $1.8 million of pre-tax merger-related expenses and branch rightsizing expenses. Excluding these expenses, core non-interest expense was $98.5 million, an increase of $1.5 million compared to the previous quarter.

Approximately $1.2 million in computer and software items were expensed during the quarter as part of the Company’s Next Generation Banking platform initiative.  An incremental $1.1 million was spent during the quarter, when compared to the previous quarter, primarily for marketing campaigns directed towards increasing deposits. Included in the quarter was $1.1 million of one-time 401k profit-sharing expense. These increases were partially offset by decreases in other categories related to cost savings from merger integrations.  The efficiency ratio for the third quarter 2018 was 53.47%.

The Company closed eight branch locations and two mobile branch locations during September, with expected annual cost savings of approximately $2.2 million related to these locations. Management continuously evaluates the Company’s branch network to determine the locations that are meeting the greatest needs of its customers.

Asset Quality

		3rd Qtr 2018	2nd Qtr 2018	4th Qtr 2017	3rd Qtr 2017
Allowance for loan losses to total loans		0.68%	0.73%	0.73%	0.82%
Allowance for loan losses to non-performing loans		136%	115%	90%	78%
Non-performing loans to total loans		0.50%	0.63%	0.81%	1.05%
Net charge-off ratio (annualized)		0.36%	0.17%	0.53%	0.32%
• Net charge-off ratio excluding loan sale		0.12%

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 September 30, 2018, the allowance for loan losses for legacy loans was $55.4 million. The allowance for loan losses for loans acquired was $1.3 million and the acquired loan discount credit mark was $54.0 million. The allowances for loan losses and credit marks provide a total of $110.7 million of coverage, which equates to a total coverage ratio of 0.9% of gross loans. The ratio of credit mark and related allowance to loans acquired was 1.5%.

Provision for loan losses for the third quarter of 2018 was $10.3 million, an increase of $1.3 million from the second quarter and $4.9 million from the same period last year. The increases are primarily due to strong legacy loan growth as well as increased migration from loans acquired to legacy loans resulting from new credit decisions being made on those loans during the third quarter.  An incremental $3.0 million was included in the provision during the quarter related to the accelerated cash flows on migrating acquired loans.

During September, the Company sold approximately $32 million of substandard rated loans that consisted of both legacy and acquired loans. The loans had adequate reserves, thus no provision expense was required.  However, the sale increased net charge-offs by approximately $4.6 million.

Foreclosed Assets and Other Real Estate Owned

At September 30, 2018, foreclosed assets and other real estate owned were $22.7 million, a decrease of $8.8 million, or 28.0%, compared to the same period in 2017 and a decrease of $7.8 million, or 25.7% from June 30, 2018. These decreases were partially offset by the addition of $2.8 million related to the closure of bank branches. The composition of these assets is divided into three types:      

		3rd Qtr 2018	2nd Qtr 2018	4th Qtr 2017	3rd Qtr 2017
Closed bank branches, branch sites & associate relocation		$9.6 million	$7.2 million	$9.8 million	$12.8 million
Foreclosed assets - acquired		$8.0 million	$13.2 million	$16.0 million	$11.1 million
Foreclosed assets - legacy		$5.1 million	$10.1 million	$6.3 million	$7.6 million

 

Capital

		3rd Qtr 2018	2nd Qtr 2018	4th Qtr 2017	3rd Qtr 2017
Stockholders’ equity to total assets		13.4%	13.3%	13.9%	13.2%
Tangible common equity to tangible assets		8.1%	7.9%	8.1%	9.1%
Regulatory tier 1 leverage ratio		8.7%	8.6%	9.2%	10.6%
Regulatory total risk-based capital ratio		13.1%	13.7%	11.4%	13.5%

At September 30, 2018, common stockholders' equity was $2.2 billion, book value per share was $23.66 and tangible book value per share was $13.48.   

Simmons First National Corporation

Simmons First National Corporation is a financial holding company, headquartered in Pine Bluff, Arkansas, with total assets of $16.3 billion as of September 30, 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 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, October 23, 2018. Interested persons can listen to this call by dialing toll-free 1-866-298-7926 (United States and Canada only) and asking for the Simmons First National Corporation conference call, conference ID 7878976. 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:
STEPHEN C. MASSANELLI
EVP, Chief Administrative Officer 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	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30
(Unaudited)		2018			2018			2018			2017			2017
($ in thousands)
ASSETS
Cash and non-interest bearing balances due from banks	$	125,231		$	162,567		$	170,811		$	205,025		$	108,675
Interest bearing balances due from banks and federal funds sold		388,573			781,279			688,853			393,017			323,615
Cash and cash equivalents		513,804			943,846			859,664			598,042			432,290
Interest bearing balances due from banks - time		3,954			2,974			3,069			3,314			4,059
Investment securities - held-to-maturity		323,306			333,503			352,756			368,058			406,033
Investment securities - available-for-sale		1,997,814			1,938,644			1,830,113			1,589,517			1,317,420
Mortgage loans held for sale		48,195			39,812			17,708			24,038			12,614
Assets held in trading accounts		-			-			-			-			49
Other assets held for sale		5,136			14,898			24,784			165,780			182,378
Loans:
Legacy loans		8,123,274			7,133,461			6,290,383			5,705,609			5,211,312
Allowance for loan losses		(55,358	)		(51,732	)		(47,207	)		(41,668	)		(42,717	)
Loans acquired, net of discount and allowance		3,734,921			4,232,434			4,696,945			5,074,076			1,092,039
Net loans		11,802,837			11,314,163			10,940,121			10,738,017			6,260,634
Premises and equipment		287,246			288,777			289,355			287,249			224,376
Foreclosed assets and other real estate owned		22,664			30,503			29,140			32,118			31,477
Interest receivable		51,509			44,266			42,129			43,528			30,749
Bank owned life insurance		192,680			191,575			186,473			185,984			148,984
Goodwill		845,687			845,687			845,687			842,651			375,731
Other intangible assets		93,975			96,720			99,504			106,071			55,501
Other assets		92,457			80,165			76,806			71,439			53,075
Total assets	$	16,281,264		$	16,165,533		$	15,597,309		$	15,055,806		$	9,535,370
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts	$	2,778,670		$	2,683,489		$	2,734,287		$	2,665,249		$	1,669,860
Interest bearing transaction accounts and savings deposits		6,776,330			6,916,520			6,720,754			6,494,896			4,344,779
Time deposits		2,533,506			2,353,439			2,201,874			1,932,730			1,310,951
Total deposits		12,088,506			11,953,448			11,656,915			11,092,875			7,325,590
Federal funds purchased and securities sold
under agreements to repurchase		109,213			99,801			120,909			122,444			121,687
Other borrowings		1,420,917			1,451,811			1,140,986			1,380,024			522,541
Subordinated notes and debentures		372,934			413,337			468,465			140,565			67,418
Other liabilities held for sale		424			1,840			2,781			157,366			176,964
Accrued interest and other liabilities		105,951			98,388			98,202			77,968			63,971
Total liabilities		14,097,945			14,018,625			13,488,258			12,971,242			8,278,171
Stockholders' equity:
Common stock		923			923			922			920			644
Surplus		1,597,261			1,594,342			1,590,086			1,586,034			763,121
Undivided profits		633,175			591,826			552,105			514,874			504,085
Accumulated other comprehensive loss:
Unrealized depreciation on AFS securities		(48,040	)		(40,183	)		(34,062	)		(17,264	)		(10,651	)
Total stockholders' equity		2,183,319			2,146,908			2,109,051			2,084,564			1,257,199
Total liabilities and stockholders' equity	$	16,281,264		$	16,165,533		$	15,597,309		$	15,055,806		$	9,535,370

 

Simmons First National Corporation											SFNC
Consolidated Statements of Income - Quarter-to-Date
For the Quarters Ended	Sep 30		Jun 30			Mar 31		Dec 31			Sep 30
(Unaudited)		2018		2018			2018		2017			2017
($ in thousands, except per share data)
INTEREST INCOME
Loans	$	162,438	$	150,253		$	143,350	$	132,617		$	77,457
Interest bearing balances due from banks and federal funds sold		1,405		1,414			1,009		947			650
Investment securities		14,640		14,296			12,622		11,456			9,218
Mortgage loans held for sale		501		305			158		175			159
TOTAL INTEREST INCOME		178,984		166,268			157,139		145,195			87,484
INTEREST EXPENSE
Time deposits		8,017		6,175			4,842		3,944			2,110
Other deposits		16,373		12,286			10,755		8,762			3,920
Federal funds purchased and securities
sold under agreements to repurchase		104		88			110		97			83
Other borrowings		6,240		5,141			5,139		3,993			1,875
Subordinated notes and debentures		5,282		5,741			1,327		1,480			677
TOTAL INTEREST EXPENSE		36,016		29,431			22,173		18,276			8,665
NET INTEREST INCOME		142,968		136,837			134,966		126,919			78,819
Provision for loan losses		10,345		9,033			9,150		9,601			5,462
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES		132,623		127,804			125,816		117,318			73,357
NON-INTEREST INCOME
Trust income		6,277		5,622			5,249		6,020			4,225
Service charges on deposit accounts		10,837		10,063			10,345		10,587			8,907
Other service charges and fees		1,201		2,017			2,750		2,774			2,433
Mortgage and SBA lending income		1,825		3,130			4,445		3,713			3,219
Investment banking income		664		814			834		786			680
Debit and credit card fees		6,820		10,105			8,796		8,801			8,864
Bank owned life insurance income		1,105		1,102			1,103		1,101			725
Gain (loss) on sale of securities, net		54		(7	)		6		(1,243	)		3
Other income		4,942		5,202			4,007		4,090			7,276
TOTAL NON-INTEREST INCOME		33,725		38,048			37,535		36,629			36,332
NON-INTEREST EXPENSE
Salaries and employee benefits		55,515		55,678			56,357		49,288			35,285
Occupancy expense, net		7,713		7,921			6,960		6,700			4,928
Furniture and equipment expense		3,761		4,020			4,403		5,533			4,840
Other real estate and foreclosure expense		538		1,382			1,020		865			1,071
Deposit insurance		2,248		1,856			2,128		1,216			1,020
Merger-related costs		804		1,465			1,711		14,044			752
Other operating expenses		29,674		26,185			25,494		30,844			18,263
TOTAL NON-INTEREST EXPENSE		100,253		98,507			98,073		108,490			66,159
NET INCOME BEFORE INCOME TAXES		66,095		67,345			65,278		45,457			43,530
Provision for income taxes		10,902		13,783			13,966		26,554			14,678
NET INCOME	$	55,193	$	53,562		$	51,312	$	18,903		$	28,852
BASIC EARNINGS PER SHARE	$	0.60	$	0.58		$	0.56	$	0.22		$	0.45
DILUTED EARNINGS PER SHARE	$	0.59	$	0.58		$	0.55	$	0.22		$	0.44

 

Simmons First National Corporation													SFNC
Consolidated Risk-Based Capital
For the Quarters Ended	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30
(Unaudited)		2018			2018			2018			2017			2017
($ in thousands)
Tier 1 capital
Stockholders' equity	$	2,183,319		$	2,146,908		$	2,109,051		$	2,084,564		$	1,257,199
Trust preferred securities, net allowable		-			-			-			-			67,418
Disallowed intangible assets, net of deferred tax		(914,788	)		(917,050	)		(918,161	)		(902,371	)		(401,419	)
Unrealized loss on AFS securities		48,040			40,183			34,062			17,264			10,651
Total Tier 1 capital		1,316,571			1,270,041			1,224,952			1,199,457			933,849
Tier 2 capital
Qualifying unrealized gain on AFS equity securities		1			1			8			1			1
Trust preferred securities and subordinated debt		372,934			413,337			468,466			140,565			-
Qualifying allowance for loan losses and
reserve for unfunded commitments		63,618			60,691			54,436			48,947			46,709
Total Tier 2 capital		436,553			474,029			522,910			189,513			46,710
Total risk-based capital	$	1,753,124		$	1,744,070		$	1,747,862		$	1,388,970		$	980,559
Common equity
Tier 1 capital	$	1,316,571		$	1,270,041		$	1,224,952		$	1,199,457		$	933,849
Less: Trust preferred securities		-			-			-			-			(67,418	)
Total common equity	$	1,316,571		$	1,270,041		$	1,224,952		$	1,199,457		$	866,431
Risk weighted assets	$	13,402,910		$	12,713,093		$	12,417,233		$	12,234,160		$	7,239,923
Adjusted average assets for leverage ratio	$	15,179,889		$	14,714,205		$	14,179,390		$	13,016,478		$	8,789,175
Ratios at end of quarter
Equity to assets		13.41	%		13.28	%		13.52	%		13.85	%		13.18	%
Tangible common equity to tangible assets (1)		8.11	%		7.91	%		7.94	%		8.05	%		9.07	%
Common equity Tier 1 ratio (CET1)		9.82	%		9.99	%		9.86	%		9.80	%		11.97	%
Tier 1 leverage ratio		8.67	%		8.63	%		8.64	%		9.21	%		10.62	%
Tier 1 risk-based capital ratio		9.82	%		9.99	%		9.86	%		9.80	%		12.90	%
Total risk-based capital ratio		13.08	%		13.72	%		14.08	%		11.35	%		13.54	%
(1) Calculations of tangible common equity to tangible assets and the reconciliations to GAAP are included in the
schedules accompanying this release.

 

Simmons First National Corporation									SFNC
Consolidated Loans and Investments
For the Quarters Ended	Sep 30		Jun 30		Mar 31		Dec 31		Sep 30
(Unaudited)		2018		2018		2018		2017		2017
($ in thousands)
Legacy Loan Portfolio - End of Period (1)
Consumer
Credit cards	$	182,137	$	180,352	$	176,602	$	185,422	$	176,316
Other consumer		259,581		277,330		284,285		280,094		317,946
Total consumer		441,718		457,682		460,887		465,516		494,262
Real Estate
Construction		1,229,888		967,720		786,077		614,155		515,274
Single-family residential		1,401,991		1,314,787		1,193,464		1,094,633		1,048,403
Other commercial		3,077,188		2,816,420		2,611,358		2,530,824		2,231,223
Total real estate		5,709,067		5,098,927		4,590,899		4,239,612		3,794,900
Commercial
Commercial		1,608,342		1,237,910		971,704		825,217		688,960
Agricultural		218,778		187,006		128,247		148,302		207,849
Total commercial		1,827,120		1,424,916		1,099,951		973,519		896,809
Other		145,369		151,936		138,646		26,962		25,341
Total Loans	$	8,123,274	$	7,133,461	$	6,290,383	$	5,705,609	$	5,211,312
(1) Excludes all acquired loans.
Investment Securities - End of Period
Held-to-Maturity
U.S. Government agencies	$	34,983	$	36,976	$	46,961	$	46,945	$	66,928
Mortgage-backed securities		13,933		14,645		15,404		16,132		16,972
State and political subdivisions		272,396		279,787		286,901		301,491		320,116
Other securities		1,994		2,095		3,490		3,490		2,017
Total held-to-maturity		323,306		333,503		352,756		368,058		406,033
Available-for-Sale
U.S. Government agencies	$	141,460	$	145,767	$	149,804	$	139,724	$	208,220
Mortgage-backed securities		1,419,626		1,395,231		1,356,179		1,187,317		959,698
State and political subdivisions		282,439		245,335		185,888		143,165		84,822
FHLB stock		72,579		72,042		58,177		58,914		24,415
Other securities		81,710		80,269		80,065		60,397		40,265
Total available-for-sale		1,997,814		1,938,644		1,830,113		1,589,517		1,317,420
Total investment securities	$	2,321,120	$	2,272,147	$	2,182,869	$	1,957,575	$	1,723,453
Fair value - HTM investment securities	$	322,838	$	334,857	$	354,649	$	373,298	$	412,140
Investment Securities - QTD Average
Taxable securities	$	1,775,193	$	1,750,172	$	1,618,270	$	1,569,173	$	1,229,172
Tax exempt securities		539,135		514,838		460,675		446,040		409,062
Total investment securities - QTD average	$	2,314,328	$	2,265,010	$	2,078,945	$	2,015,213	$	1,638,234

 

Simmons First National Corporation													SFNC
Consolidated Loans and Credit Coverage
For the Quarters Ended	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30
(Unaudited)		2018			2018			2018			2017			2017
($ in thousands)
LOANS
Legacy loans	$	8,123,274		$	7,133,461		$	6,290,383		$	5,705,609		$	5,211,312
Allowance for loan losses (legacy loans)		(55,358	)		(51,732	)		(47,207	)		(41,668	)		(42,717	)
Legacy loans (net of allowance)		8,067,916			7,081,729			6,243,176			5,663,941			5,168,595
Loans acquired		3,790,234			4,302,760			4,776,439			5,163,769			1,117,424
Credit discount		(53,968	)		(68,282	)		(79,087	)		(89,275	)		(24,994	)
Allowance for loan losses (loans acquired)		(1,345	)		(2,044	)		(407	)		(418	)		(391	)
Loans acquired (net of discount and allowance)		3,734,921			4,232,434			4,696,945			5,074,076			1,092,039
Net loans	$	11,802,837		$	11,314,163		$	10,940,121		$	10,738,017		$	6,260,634
Loan Coverage Ratios
Allowance for loan losses to legacy loans		0.68	%		0.73	%		0.75	%		0.73	%		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)		1.46	%		1.63	%		1.66	%		1.74	%		2.27	%
Total allowance and credit coverage (non-GAAP) (1)		0.93	%		1.07	%		1.14	%		1.21	%		1.08	%
(1) Calculations of the non-GAAP loan coverage ratios and the reconciliations to GAAP are included in the schedules accompanying
this release.

 

Simmons First National Corporation													SFNC
Consolidated Allowance and Asset Quality
For the Quarters Ended	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30
(Unaudited)		2018			2018			2018			2017			2017
($ in thousands)
Allowance for Loan Losses (Legacy Loans)
Balance, beginning of quarter	$	51,732		$	47,207		$	41,668		$	42,717		$	41,379
Loans charged off
Credit cards		919			1,012			999			943			1,017
Other consumer		1,321			1,366			1,056			781			819
Real estate		4,952			161			455			4,725			896
Commercial		592			790			1,761			4,754			2,442
Total loans charged off		7,784			3,329			4,271			11,203			5,174
Recoveries of loans previously charged off
Credit cards		229			286			263			233			275
Other consumer		176			133			94			468			445
Real estate		210			112			302			233			309
Commercial		450			59			69			20			21
Total recoveries		1,065			590			728			954			1,050
Net loans charged off		6,719			2,739			3,543			10,249			4,124
Provision for loan losses		10,345			7,264			9,082			9,200			5,462
Balance, end of quarter	$	55,358		$	51,732		$	47,207		$	41,668		$	42,717
Non-performing assets (1) (2)
Non-performing loans
Nonaccrual loans	$	40,505		$	44,548		$	47,395		$	45,642		$	54,439
Loans past due 90 days or more		281			303			336			520			232
Total non-performing loans		40,786			44,851			47,731			46,162			54,671
Other non-performing assets
Foreclosed assets and other real estate owned (2)		22,664			30,503			29,140			32,118			31,477
Other non-performing assets		524			573			794			675			639
Total other non-performing assets		23,188			31,076			29,934			32,793			32,116
Total non-performing assets	$	63,974		$	75,927		$	77,665		$	78,955		$	86,787
Performing TDRs (troubled debt restructurings)	$	8,413		$	6,367		$	6,459		$	7,107		$	9,212
Ratios (1) (2)
Allowance for loan losses to total loans		0.68	%		0.73	%		0.75	%		0.73	%		0.82	%
Allowance for loan losses to non-performing loans		136	%		115	%		99	%		90	%		78	%
Non-performing loans to total loans		0.50	%		0.63	%		0.76	%		0.81	%		1.05	%
Non-performing assets (including performing TDRs)
to total assets		0.44	%		0.51	%		0.54	%		0.57	%		1.01	%
Non-performing assets to total assets		0.39	%		0.47	%		0.50	%		0.52	%		0.91	%
Annualized net charge offs to total loans		0.36	%		0.17	%		0.24	%		0.53	%		0.32	%
Annualized net credit card charge offs to
total credit card loans		1.47	%		1.60	%		1.63	%		1.54	%		1.65	%
(1) Excludes all acquired loans, except for their inclusion in total assets.
(2) Includes acquired foreclosed assets and acquired other real estate owned.

 

Simmons First National Corporation																			SFNC
Consolidated - Average Balance Sheet and Net Interest Income Analysis
For the Quarters Ended
(Unaudited)
	Three Months Ended Sep 2018							Three Months Ended Jun 2018							Three Months Ended Sep 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	$	373,528	$	1,405	1.49	%		$	422,987	$	1,414	1.34	%		$	269,111	$	650	0.96	%
Investment securities - taxable		1,775,193		10,892	2.43	%			1,750,172		10,764	2.47	%			1,229,172		6,574	2.12	%
Investment securities - non-taxable (FTE)		539,135		5,064	3.73	%			514,838		4,771	3.72	%			409,062		4,341	4.21	%
Mortgage loans held for sale		43,554		501	4.56	%			28,688		305	4.26	%			13,388		159	4.71	%
Assets held in trading accounts		-		-	0.00	%			-		-	0.00	%			52		-	0.00	%
Loans, including acquired loans		11,641,843		162,515	5.54	%			11,159,872		150,322	5.40	%			6,261,507		77,511	4.91	%
Total interest earning assets (FTE)		14,373,253		180,377	4.98	%			13,876,557		167,576	4.84	%			8,182,292		89,235	4.33	%
Non-earning assets		1,667,631							1,704,140							993,315
Total assets	$	16,040,884						$	15,580,697						$	9,175,607
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Interest bearing transaction and
savings accounts	$	6,840,403	$	16,373	0.95	%		$	6,570,471	$	12,286	0.75	%		$	4,227,567	$	3,920	0.37	%
Time deposits		2,379,142		8,017	1.34	%			2,233,673		6,175	1.11	%			1,330,889		2,110	0.63	%
Total interest bearing deposits		9,219,545		24,390	1.05	%			8,804,144		18,461	0.84	%			5,558,456		6,030	0.43	%
Federal funds purchased and securities
sold under agreement to repurchase		107,770		104	0.38	%			107,205		88	0.33	%			115,583		83	0.28	%
Other borrowings		1,375,052		6,240	1.80	%			1,273,135		5,141	1.62	%			502,972		1,875	1.48	%
Subordinated notes and debentures		379,168		5,282	5.53	%			466,612		5,741	4.93	%			67,367		677	3.99	%
Total interest bearing liabilities		11,081,535		36,016	1.29	%			10,651,096		29,431	1.11	%			6,244,378		8,665	0.55	%
Non-interest bearing liabilities:
Non-interest bearing deposits		2,679,469							2,705,677							1,613,248
Other liabilities		103,315							86,827							62,287
Total liabilities		13,864,319							13,443,600							7,919,913
Stockholders' equity		2,176,565							2,137,097							1,255,694
Total liabilities and stockholders' equity	$	16,040,884						$	15,580,697						$	9,175,607
Net interest income (FTE)			$	144,361						$	138,145						$	80,570
Net interest spread (FTE)					3.69	%						3.73	%						3.78	%
Net interest margin (FTE) - quarter-to-date					3.98	%						3.99	%						3.91	%
Net interest margin (FTE) - year-to-date					4.04	%						4.08	%						3.99	%
Core net interest margin (FTE) - quarter-to-date (1)					3.71	%						3.70	%						3.77	%
Core loan yield (FTE) - quarter-to-date (1)					5.19	%						5.04	%						4.72	%
Core net interest margin (FTE) - year-to-date (1)					3.74	%						3.76	%						3.79	%
Core loan yield (FTE) - year-to-date (1)					5.06	%						4.99	%						4.65	%
(1) Calculations of core net interest margin and core loan yield and the reconciliations to GAAP are included in the schedules accompanying this release.

 

Simmons First National Corporation													SFNC
Consolidated - Selected Financial Data
For the Quarters Ended	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30
(Unaudited)		2018			2018			2018			2017			2017
($ in thousands, except share data)
QUARTER-TO-DATE
Financial Highlights - GAAP
Net Income	$	55,193		$	53,562		$	51,312		$	18,903		$	28,852
Diluted earnings per share		0.59			0.58			0.55			0.22			0.44
Return on average assets		1.37	%		1.38	%		1.38	%		0.54	%		1.25	%
Return on average common equity		10.06	%		10.05	%		9.90	%		3.88	%		9.12	%
Return on tangible common equity		18.38	%		18.70	%		18.77	%		7.53	%		14.47	%
Net interest margin (FTE)		3.98	%		3.99	%		4.17	%		4.21	%		3.91	%
FTE adjustment		1,393			1,308			1,130			1,925			1,751
Amortization of intangibles		2,745			2,785			2,837			2,839			1,724
Amortization of intangibles, net of taxes		2,027			2,057			2,096			1,725			1,048
Average diluted shares outstanding		92,840,851			92,733,140			92,638,765			87,036,044			64,847,592
Cash dividends declared per common share		0.15			0.15			0.15			0.13			0.13
Financial Highlights - Core (non-GAAP)
Core earnings (excludes non-core items) (1)	$	56,504		$	54,660		$	52,618		$	42,018		$	27,746
Diluted core earnings per share (1)		0.61			0.59			0.57			0.48			0.43
Core net interest margin (FTE) (2)		3.71	%		3.70	%		3.82	%		3.70	%		3.77	%
Accretable yield on acquired loans		10,006			10,113			11,294			15,684			2,890
Efficiency ratio (1)		53.47	%		52.70	%		53.24	%		51.36	%		55.06	%
Core return on average assets (1)		1.40	%		1.41	%		1.41	%		1.20	%		1.20	%
Core return on average common equity (1)		10.30	%		10.26	%		10.15	%		8.63	%		8.77	%
Core return on tangible common equity (1)		18.80	%		19.06	%		19.23	%		15.97	%		13.93	%
YEAR-TO-DATE
Financial Highlights - GAAP
Net Income	$	160,067		$	104,874		$	51,312		$	92,940		$	74,037
Diluted earnings per share		1.72			1.13			0.55			1.33			1.16
Return on average assets		1.37	%		1.38	%		1.38	%		0.92	%		1.12	%
Return on average common equity		10.01	%		9.98	%		9.90	%		6.68	%		8.18	%
Return on tangible common equity		18.61	%		18.73	%		18.77	%		11.26	%		12.97	%
Net interest margin (FTE)		4.04	%		4.08	%		4.17	%		4.07	%		3.99	%
FTE adjustment		3,831			2,438			1,130			7,723			5,798
Amortization of intangibles		8,367			5,622			2,837			7,666			4,827
Amortization of intangibles, net of taxes		6,180			4,153			2,096			4,659			2,934
Average diluted shares outstanding		92,796,860			92,692,234			92,638,765			69,852,920			64,014,270
Cash dividends declared per common share		0.45			0.30			0.15			0.50			0.38
Financial Highlights - Core (non-GAAP)
Core earnings (excludes non-core items) (1)	$	163,782		$	107,278		$	52,618		$	119,049		$	77,031
Diluted core earnings per share (1)		1.76			1.16			0.57			1.70			1.20
Core net interest margin (FTE) (2)		3.74	%		3.76	%		3.82	%		3.76	%		3.79	%
Accretable yield on acquired loans		31,413			21,407			11,294			27,793			12,109
Efficiency ratio (1)		53.14	%		52.97	%		53.24	%		55.27	%		57.25	%
Core return on average assets (1)		1.41	%		1.41	%		1.41	%		1.18	%		1.17	%
Core return on average common equity (1)		10.24	%		10.20	%		10.15	%		8.56	%		8.51	%
Core return on tangible common equity (1)		19.03	%		19.14	%		19.23	%		14.28	%		13.48	%
END OF PERIOD
Book value per share	$	23.66		$	23.26		$	22.86		$	22.65		$	19.51
Tangible book value per share		13.48			13.05			12.62			12.34			12.82
Shares outstanding		92,291,070			92,281,370			92,242,389			92,029,118			64,424,484
Full-time equivalent employees		2,635			2,659			2,626			2,640			1,942
Total number of financial centers		191			199			200			200			156
(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.

 

Simmons First National Corporation													SFNC
Consolidated - Reconciliation of Core Earnings (non-GAAP)
For the Quarters Ended	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30
(Unaudited)		2018			2018			2018			2017			2017
($ in thousands, except per share data)
QUARTER-TO-DATE
Net Income	$	55,193		$	53,562		$	51,312		$	18,903		$	28,852
Non-core items
Gain on sale of P&C insurance business		-			-			-			-			(3,708	)
Donation to Simmons Foundation		-			-			-			5,000			-
Merger-related costs		804			1,465			1,711			14,044			752
Branch right-sizing		970			22			57			116			435
Tax effect (1)		(463	)		(389	)		(462	)		(7,516	)		1,415
Net non-core items (before SAB 118 adjustment)		1,311			1,098			1,306			11,644			(1,106	)
SAB 118 adjustment (2)		-			-			-			11,471			-
Core earnings (non-GAAP)	$	56,504		$	54,660		$	52,618		$	42,018		$	27,746
Diluted earnings per share	$	0.59		$	0.58		$	0.55		$	0.22		$	0.44
Non-core items
Gain on sale of P&C insurance business		-			-			-			-			(0.06	)
Donation to Simmons Foundation		-			-			-			0.06			-
Merger-related costs		0.01			0.02			0.02			0.17			0.01
Branch right-sizing		0.01			-			-			-			0.01
Tax effect (1)		-			(0.01	)		-			(0.10	)		0.03
Net non-core items (before SAB 118 adjustment)		0.02			0.01			0.02			0.13			(0.01	)
SAB 118 adjustment (2)		-			-			-			0.13			-
Core earnings (non-GAAP)	$	0.61		$	0.59		$	0.57		$	0.48		$	0.43
YEAR-TO-DATE
Net Income	$	160,067		$	104,874		$	51,312		$	92,940		$	74,037
Non-core items
Gain on sale of P&C insurance business		-			-			-			(3,708	)		(3,708	)
Donation to Simmons Foundation		-			-			-			5,000			-
Merger-related costs		3,980			3,176			1,711			21,923			7,879
Branch right-sizing		1,049			79			57			169			53
Tax effect (1)		(1,314	)		(851	)		(462	)		(8,746	)		(1,230	)
Net non-core items (before SAB 118 adjustment)		3,715			2,404			1,306			14,638			2,994
SAB 118 adjustment (2)		-			-			-			11,471			-
Core earnings (non-GAAP)	$	163,782		$	107,278		$	52,618		$	119,049		$	77,031
Diluted earnings per share	$	1.72		$	1.13		$	0.55		$	1.33		$	1.16
Non-core items
Gain on sale of P&C insurance business		-			-			-			(0.04	)		(0.06	)
Donation to Simmons Foundation		-			-			-			0.07
Merger-related costs		0.04			0.04			0.02			0.31			0.12
Branch right-sizing		0.01			-			-			-			-
Tax effect (1)		(0.01	)		(0.01	)		-			(0.13	)		(0.02	)
Net non-core items (before SAB 118 adjustment)		0.04			0.03			0.02			0.21			0.04
SAB 118 adjustment (2)		-			-			-			0.16			-
Core earnings (non-GAAP)	$	1.76		$	1.16		$	0.57		$	1.70		$	1.20
(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.

 

Simmons First National Corporation													SFNC
Reconciliation Of Non-GAAP Financial Measures - End of Period
For the Quarters Ended
(Unaudited)	Sept 30			Jun 30			Mar 31			Dec 31			Sept 30
		2018			2018			2018			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	$	2,183,319		$	2,146,908		$	2,109,051		$	2,084,564		$	1,257,199
Intangible assets:
Goodwill		(845,687	)		(845,687	)		(845,687	)		(842,651	)		(375,731	)
Other intangible assets		(93,975	)		(96,720	)		(99,504	)		(106,071	)		(55,501	)
Total intangibles		(939,662	)		(942,407	)		(945,191	)		(948,722	)		(431,232	)
Tangible common stockholders' equity	$	1,243,657		$	1,204,501		$	1,163,860		$	1,135,842		$	825,967
Total assets	$	16,281,264		$	16,165,533		$	15,597,309		$	15,055,806		$	9,535,370
Intangible assets:
Goodwill		(845,687	)		(845,687	)		(845,687	)		(842,651	)		(375,731	)
Other intangible assets		(93,975	)		(96,720	)		(99,504	)		(106,071	)		(55,501	)
Total intangibles		(939,662	)		(942,407	)		(945,191	)		(948,722	)		(431,232	)
Tangible assets	$	15,341,602		$	15,223,126		$	14,652,118		$	14,107,084		$	9,104,138
Ratio of equity to assets		13.41	%		13.28	%		13.52	%		13.85	%		13.18	%
Ratio of tangible common equity to tangible assets		8.11	%		7.91	%		7.94	%		8.05	%		9.07	%
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	$	53,968		$	68,282		$	79,087		$	89,275		$	24,994
Allowance for loan losses on acquired loans		1,345			2,044			407			418			391
Total credit discount and ALLL on acquired loans	$	55,313		$	70,326		$	79,494		$	89,693		$	25,385
Total loans acquired	$	3,790,234		$	4,302,760		$	4,776,439		$	5,163,769		$	1,117,424
Discount and ALLL on acquired loans to acquired loans		1.46	%		1.63	%		1.66	%		1.74	%		2.27	%
Calculation of Total Allowance and Credit Coverage
Allowance for loan losses	$	55,358		$	51,732		$	47,207		$	41,668		$	42,717
Total credit discount and ALLL on acquired loans		55,313			70,326			79,494			89,693			25,385
Total allowance and credit discount	$	110,671		$	122,058		$	126,701		$	131,361		$	68,102
Total loans	$	11,913,508		$	11,436,221		$	11,066,822		$	10,869,378		$	6,328,736
Total allowance and credit coverage		0.93	%		1.07	%		1.14	%		1.21	%		1.08	%
Calculation of Tangible Book Value per Share
Total common stockholders' equity	$	2,183,319		$	2,146,908		$	2,109,051		$	2,084,564		$	1,257,199
Intangible assets:
Goodwill		(845,687	)		(845,687	)		(845,687	)		(842,651	)		(375,731	)
Other intangible assets		(93,975	)		(96,720	)		(99,504	)		(106,071	)		(55,501	)
Total intangibles		(939,662	)		(942,407	)		(945,191	)		(948,722	)		(431,232	)
Tangible common stockholders' equity	$	1,243,657		$	1,204,501		$	1,163,860		$	1,135,842		$	825,967
Shares of common stock outstanding		92,291,070			92,281,370			92,242,389			92,029,118			64,424,484
Book value per common share	$	23.66		$	23.26		$	22.86		$	22.65		$	19.51
Tangible book value per common share	$	13.48		$	13.05		$	12.62		$	12.34		$	12.82

 

Simmons First National Corporation													SFNC
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date
For the Quarters Ended
(Unaudited)	Sept 30			Jun 30			Mar 31			Dec 31			Sept 30
		2018			2018			2018			2017			2017
($ in thousands)
Calculation of Core Return on Average Assets
Net income	$	55,193		$	53,562		$	51,312		$	18,903		$	28,852
Net non-core items, net of taxes, adjustment		1,311			1,098			1,306			23,115			(1,106	)
Core earnings	$	56,504		$	54,660		$	52,618		$	42,018		$	27,746
Average total assets	$	16,040,884		$	15,580,697		$	15,088,210		$	13,897,778		$	9,175,607
Return on average assets		1.37	%		1.38	%		1.38	%		0.54	%		1.25	%
Core return on average assets		1.40	%		1.41	%		1.41	%		1.20	%		1.20	%
Calculation of Return on Tangible Common Equity
Net income	$	55,193		$	53,562		$	51,312		$	18,903		$	28,852
Amortization of intangibles, net of taxes		2,027			2,057			2,096			1,725			1,048
Total income available to common stockholders	$	57,220		$	55,619		$	53,408		$	20,628		$	29,900
Net non-core items, net of taxes		1,311			1,098			1,306			23,115			(1,106	)
Core earnings		56,504			54,660			52,618			42,018			27,746
Amortization of intangibles, net of taxes		2,027			2,057			2,096			1,725			1,048
Total core income available to common stockholders	$	58,531		$	56,717		$	54,714		$	43,743		$	28,794
Average common stockholders' equity	$	2,176,565		$	2,137,097		$	2,103,052		$	1,931,804		$	1,255,694
Average intangible assets:
Goodwill		(845,687	)		(845,687	)		(844,148	)		(731,661	)		(378,387	)
Other intangibles		(95,576	)		(98,152	)		(104,718	)		(113,770	)		(57,232	)
Total average intangibles		(941,263	)		(943,839	)		(948,866	)		(845,431	)		(435,619	)
Average tangible common stockholders' equity	$	1,235,302		$	1,193,258		$	1,154,186		$	1,086,373		$	820,075
Return on average common equity		10.06	%		10.05	%		9.90	%		3.88	%		9.12	%
Return on tangible common equity		18.38	%		18.70	%		18.77	%		7.53	%		14.47	%
Core return on average common equity		10.30	%		10.26	%		10.15	%		8.63	%		8.77	%
Core return on tangible common equity		18.80	%		19.06	%		19.23	%		15.97	%		13.93	%
Calculation of Efficiency Ratio (1)
Non-interest expense	$	100,253		$	98,507		$	98,073		$	108,490		$	66,159
Non-core non-interest expense adjustment		(1,774	)		(1,483	)		(1,772	)		(19,160	)		(862	)
Other real estate and foreclosure expense adjustment		(538	)		(1,382	)		(1,020	)		(865	)		(1,071	)
Amortization of intangibles adjustment		(2,745	)		(2,785	)		(2,837	)		(2,839	)		(1,724	)
Efficiency ratio numerator	$	95,196		$	92,857		$	92,444		$	85,626		$	62,502
Net-interest income	$	142,968		$	136,837		$	134,966		$	126,919		$	78,819
Non-interest income		33,725			38,048			37,535			36,629			36,332
Non-core non-interest income adjustment		-			4			(4	)		-			(3,383	)
Fully tax-equivalent adjustment		1,393			1,308			1,130			1,925			1,751
(Gain) loss on sale of securities		(54	)		7			(6	)		1,243			(3	)
Efficiency ratio denominator	$	178,032		$	176,204		$	173,621		$	166,716		$	113,516
Efficiency ratio (1)		53.47	%		52.70	%		53.24	%		51.36	%		55.06	%
Calculation of Core Net Interest Margin
Net interest income	$	142,968		$	136,837		$	134,966		$	126,919		$	78,819
Fully tax-equivalent adjustment		1,393			1,308			1,130			1,925			1,751
Fully tax-equivalent net interest income		144,361			138,145			136,096			128,844			80,570
Total accretable yield		(10,006	)		(10,113	)		(11,294	)		(15,684	)		(2,890	)
Core net interest income	$	134,355		$	128,032		$	124,802		$	113,160		$	77,680
Average earning assets	$	14,373,253		$	13,876,557		$	13,251,549		$	12,145,003		$	8,182,292
Net interest margin		3.98	%		3.99	%		4.17	%		4.21	%		3.91	%
Core net interest margin		3.71	%		3.70	%		3.82	%		3.70	%		3.77	%
Calculation of Core Loan Yield
Loan interest income	$	162,438		$	150,253		$	143,350		$	132,617		$	77,457
Total accretable yield		(10,006	)		(10,113	)		(11,294	)		(15,684	)		(2,890	)
Core loan interest income	$	152,432		$	140,140		$	132,056		$	116,933		$	74,567
Average loan balance	$	11,641,843		$	11,159,872		$	10,819,324		$	9,772,043		$	6,261,507
Core loan yield		5.19	%		5.04	%		4.95	%		4.75	%		4.72	%
(1) Efficiency ratio is noninterest expense before foreclosed property expense and amortization of intangibles as a percent of net interest income (fully
taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and non-core items.

 

Simmons First National Corporation													SFNC
Reconciliation Of Non-GAAP Financial Measures - Year-to-Date
For the Quarters Ended
(Unaudited)	Sept 30			Jun 30			Mar 31			Dec 31			Sept 30
		2018			2018			2018			2017			2017
($ in thousands)
Calculation of Core Return on Average Assets
Net income	$	160,067		$	104,874		$	51,312		$	92,940		$	74,037
Net non-core items, net of taxes, adjustment		3,715			2,404			1,306			26,109			2,994
Core earnings	$	163,782		$	107,278		$	52,618		$	119,049		$	77,031
Average total assets	$	15,573,762		$	15,334,453		$	15,088,210		$	10,074,951		$	8,800,675
Return on average assets		1.37	%		1.38	%		1.38	%		0.92	%		1.12	%
Core return on average assets		1.41	%		1.41	%		1.41	%		1.18	%		1.17	%
Calculation of Return on Tangible Common Equity
Net income	$	160,067		$	104,874		$	51,312		$	92,940		$	74,037
Amortization of intangibles, net of taxes		6,180			4,153			2,096			4,659			2,934
Total income available to common stockholders	$	166,247		$	109,027		$	53,408		$	97,599		$	76,971
Net non-core items, net of taxes		3,715			2,404			1,306			26,109			2,994
Core earnings		163,782			107,278			52,618			119,049			77,031
Amortization of intangibles, net of taxes		6,180			4,153			2,096			4,659			2,934
Total core income available to common stockholders	$	169,962		$	111,431		$	54,714		$	123,708		$	79,965
Average common stockholders' equity	$	2,138,818		$	2,120,075		$	2,103,052		$	1,390,815		$	1,210,487
Average intangible assets:
Goodwill		(845,180	)		(844,917	)		(844,148	)		(455,453	)		(363,383	)
Other intangibles		(99,448	)		(101,435	)		(104,718	)		(68,896	)		(53,941	)
Total average intangibles		(944,628	)		(946,352	)		(948,866	)		(524,349	)		(417,324	)
Average tangible common stockholders' equity	$	1,194,190		$	1,173,723		$	1,154,186		$	866,466		$	793,163
Return on average common equity		10.01	%		9.98	%		9.90	%		6.68	%		8.18	%
Return on tangible common equity		18.61	%		18.73	%		18.77	%		11.26	%		12.97	%
Core return on average common equity		10.24	%		10.20	%		10.15	%		8.56	%		8.51	%
Core return on tangible common equity		19.03	%		19.14	%		19.23	%		14.28	%		13.48	%
Calculation of Efficiency Ratio (1)
Non-interest expense	$	296,833		$	196,580		$	98,073		$	312,379		$	203,889
Non-core non-interest expense adjustment		(5,029	)		(3,255	)		(1,772	)		(27,357	)		(8,197	)
Other real estate and foreclosure expense adjustment		(2,940	)		(2,402	)		(1,020	)		(3,042	)		(2,177	)
Amortization of intangibles adjustment		(8,367	)		(5,622	)		(2,837	)		(7,666	)		(4,827	)
Efficiency ratio numerator	$	280,497		$	185,301		$	92,444		$	274,314		$	188,688
Net-interest income	$	414,771		$	271,803		$	134,966		$	354,930		$	228,011
Non-interest income		109,308			75,583			37,535			138,765			102,136
Non-core non-interest income adjustment		-			-			(4	)		(3,972	)		(3,972	)
Fully tax-equivalent adjustment		3,831			2,438			1,130			7,723			5,798
(Gain) loss on sale of securities		(53	)		1			(6	)		(1,059	)		(2,302	)
Efficiency ratio denominator	$	527,857		$	349,825		$	173,621		$	496,387		$	329,671
Efficiency ratio (1)		53.14	%		52.97	%		53.24	%		55.27	%		57.25	%
Calculation of Core Net Interest Margin
Net interest income	$	414,771		$	271,803		$	134,966		$	354,930		$	228,011
Fully tax-equivalent adjustment		3,831			2,438			1,130			7,723			5,798
Fully tax-equivalent net interest income		418,602			274,241			136,096			362,653			233,809
Total accretable yield		(31,413	)		(21,407	)		(11,294	)		(27,793	)		(12,109	)
Core net interest income	$	387,189		$	252,834		$	124,802		$	334,860		$	221,700
Average earning assets	$	13,837,639		$	13,564,056		$	13,251,549		$	8,908,418		$	7,829,548
Net interest margin		4.04	%		4.08	%		4.17	%		4.07	%		3.99	%
Core net interest margin		3.74	%		3.76	%		3.82	%		3.76	%		3.79	%
Calculation of Core Loan Yield
Loan interest income	$	456,041		$	293,603		$	143,350		$	352,351		$	219,734
Total accretable yield		(31,413	)		(21,407	)		(11,294	)		(27,793	)		(12,109	)
Core loan interest income	$	424,628		$	272,196		$	132,056		$	324,558		$	207,625
Average loan balance	$	11,209,992		$	10,989,600		$	10,819,324		$	6,918,293		$	5,967,036
Core loan yield		5.06	%		4.99	%		4.95	%		4.69	%		4.65	%
(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.

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