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Simmons First Announces First Quarter Earnings

Simmons First National Corporation

PINE BLUFF, Ark., April 17, 2014 (GLOBE NEWSWIRE) -- Simmons First National Corporation (Nasdaq:SFNC) today announced first quarter 2014 core earnings of $7.5 million, an increase of $1.4 million, or 23.0%, compared to the same quarter last year. Diluted core earnings per share were $0.46, an increase of $0.09, or 24.3%. Core earnings exclude $3.1 million in after-tax non-interest merger related expenses and branch right sizing costs. Including the non-core expenses, net income was $4.4 million and diluted earnings per share were $0.27.

"We are pleased with the core earnings results for the first quarter. As a result of our fourth quarter acquisition of Metropolitan National Bank, our recently announced acquisition of Delta Trust & Bank, other possible acquisitions and efficiency initiatives, we have and will continue to recognize one-time revenue and expense items which may skew our short-term business results but provide long-term performance benefits. Our focus continues to be improvement in core operating income," commented George A. Makris, Jr., Chairman and CEO.

Loans

Total loans, including those acquired, were $2.4 billion at March 31, 2014, an increase of $518 million, or 28.0%, compared to the same period in 2013. Acquired loans increased by $328 million, net of discounts, while legacy loans (all loans excluding acquired loans) grew $191 million, or 12.0%. "We are encouraged by the continued growth in our legacy loan portfolio during the first quarter. We have experienced nice loan growth in virtually every market we serve," added Makris.

Deposits

At March 31, 2014, total deposits were $3.7 billion, an increase of $814 million, or 28.2%, compared to the same period in 2013. Total non-time deposits totaled $2.6 billion, or 71% of total deposits.

Net Interest Income

The Company's net interest income for the first quarter of 2014 was $41.5 million, an increase of $11.5 million, or 38.1%, from the same period of 2013. This increase was driven by growth in the legacy loan portfolio, earning assets acquired through the Metropolitan transaction and an increase in accretable yield on acquired loans. Net interest margin was 4.54% for the quarter ended March 31, 2014, a 53 basis point increase from the same quarter of 2013. Included in interest income for both periods was the additional yield accretion recognized as a result of updated estimates of the cash flows of the loan pools acquired in the Company's FDIC-assisted transactions. Each quarter, the Company estimates the cash flows expected to be collected from the acquired loan pools, and adjustments may or may not be required. The cash flows estimate has increased based on payment histories and reduced loss expectations of the loan pools. This resulted in increased interest income that is spread on a level-yield basis over the remaining expected lives of the loan pools. The increases in expected cash flows also reduce the amount of expected reimbursements under the loss sharing agreements with the FDIC, which are recorded as indemnification assets.

The impact of the adjustments on the Company's financial results for the current reporting period is shown below:

Three Months Ended
(In thousands) March 31
2014 2013
Impact on net interest income $ 7,391 $ 2,947
Non-interest income (7,441) (2,828)
Net impact to pre-tax income $ (50) $ 119

Because these adjustments will be recognized over the remaining lives of the loan pools and the remainder of the loss sharing agreements, respectively, they will impact future periods as well. The current estimate of the remaining accretable yield adjustment that will positively impact interest income is $27.1 million and the remaining adjustment to the indemnification assets that will reduce non-interest income is $20.4 million. Of the remaining adjustments, we expect to recognize $13.9 million of interest income and a $14.4 million reduction of non-interest income, for a net reduction to pre-tax income of approximately $514,000, during the remainder of 2014. The accretable yield adjustments recorded in future periods will change as the Company continues to evaluate expected cash flows from the acquired loan pools.

Non-Interest Income

Non-interest income for the first quarter was $9.2 million, a decrease of $2.1 million, compared to the first quarter of 2013. The reduction in non-interest income was due to the $4.6 million incremental reduction in non-interest income from the adjustment to the indemnification assets. Normalized for the indemnification asset adjustments, non-interest income for the quarter increased by $2.5 million, or 17.7%, primarily from additional service charge and fee income from the Metropolitan acquisition.

Non-Interest Expense

Non-interest expense for the first quarter of 2014 was $44.6 million, an increase of $12.6 million compared to the same period in 2013. "In March we completed the branch consolidation plan related to the Metropolitan acquisition. During the quarter, we recorded branch right sizing costs of $3.9 million associated with the closure of eleven legacy Simmons branches," noted Makris. "Also included in the quarter were $1.3 million of various merger costs related to Metropolitan and the recently announced acquisition of Delta Trust & Bank."

Asset Quality

Beginning in 2010, the Company has acquired loans and foreclosed real estate ("OREO") through FDIC-assisted acquisitions. Through the loss share provisions of the purchase and assumption agreements, the FDIC agreed to reimburse the Company for 80% of the losses incurred on the disposition of covered loans and OREO. The acquired loans and OREO and any related FDIC loss share indemnification asset were presented in the Company's financial reports with a carrying value equal to the discounted net present value of expected future proceeds. At March 31, 2014, acquired loans covered by loss share were carried at $138 million, OREO covered by loss share was carried at $18 million and the FDIC loss share indemnification asset was carried at $39 million. Acquired loans and OREO not covered by loss share were carried at $450 million and $40 million, respectively. As a result of using the discounted net present value method of valuing these assets, and due to the significant protection against possible losses provided by the FDIC loss share indemnification, all acquired assets, with the exception of OREO not covered by loss share, are excluded from the computations of the asset quality ratios for the legacy loan portfolio, except for their inclusion in total assets.

"It is important to remember that the acquired non-covered loans are protected by a credit mark and the acquired covered loans are protected by a credit mark and 80% loss coverage by the FDIC," explained Makris. "At March 31, 2014, the allowance for loan losses was $27.0 million and the loan credit mark was $96.5 million, for a total of $123.5 million of coverage. This equates to a total coverage ratio of 5.0% of gross loans. The ratio of credit mark to acquired loans was 14.1%." The Company's allowance for loan losses at March 31, 2014, was 1.52% of total loans and 216% of non-performing loans. Non-performing loans as a percent of total loans were 0.70%. Non-performing assets decreased $4.1 million from the previous quarter to $70.0 million. For the first quarter of 2014, the annualized net charge-off ratio, excluding credit cards, was 0.22%, and the annualized credit card charge-off ratio was 1.20%.

Capital

At March 31, 2014, stockholders' equity was $407 million, book value per share was $24.93 and tangible book value per share was $19.23. The Company's ratio of stockholders' equity to total assets was 9.3% and its ratio of tangible common equity to tangible assets was 7.3%.

Simmons First National Corporation

Simmons First National Corporation is a $4.4 billion Arkansas based financial holding company conducting financial operations throughout Arkansas, Kansas and Missouri. 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 3:00 p.m. Central Time on Thursday, April 17, 2014. 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 21404149. In addition, the call will be available live or in recorded version on the Company's website at www.simmonsfirst.com.

Non-GAAP Financial Measures

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

Forward Looking Statements

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

Simmons First National Corporation SFNC
Consolidated End of Period Balance Sheets
For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Unaudited) 2014 2013 2013 2013 2013
(in thousands)
ASSETS
Cash and non-interest bearing balances due from banks $ 48,018 $ 69,827 $ 37,752 $ 38,494 $ 40,006
Interest bearing balances due from banks 474,118 469,553 320,368 420,740 602,992
Federal funds sold -- -- 18,365 -- --
Cash and cash equivalents 522,136 539,380 376,485 459,234 642,998
Investment securities - held-to-maturity 776,615 745,688 581,768 555,464 488,513
Investment securities - available-for-sale 264,974 212,277 179,937 177,531 192,165
Mortgage loans held for sale 16,717 9,494 10,605 14,454 19,100
Assets held in trading accounts 6,865 8,978 8,744 8,739 8,368
Loans:
Legacy loans 1,779,609 1,742,638 1,741,161 1,650,395 1,589,077
Allowance for loan losses (26,983) (27,442) (27,533) (27,398) (27,735)
Loans acquired, not covered by FDIC loss share
(net of discount) 450,289 515,644 68,133 63,500 78,745
Loans acquired, covered by FDIC loss share (net of discount) 137,879 146,653 148,884 163,736 181,537
Net loans 2,340,794 2,377,493 1,930,645 1,850,233 1,821,624
FDIC indemnification asset 39,239 48,791 61,500 67,744 71,002
Premises and equipment 111,888 119,614 87,065 88,164 87,934
Premises held for sale 23,779 19,466 -- -- --
Foreclosed assets not covered by FDIC loss share 57,476 64,820 26,203 30,390 30,714
Foreclosed assets covered by FDIC loss share 18,171 20,585 23,260 22,990 28,003
Interest receivable 15,102 15,654 15,635 12,637 13,027
Bank owned life insurance 60,714 60,384 60,040 59,710 59,344
Goodwill 78,529 78,906 60,605 60,605 60,605
Other intangible assets 14,519 14,972 5,420 3,487 3,624
Other assets 49,129 46,598 13,797 10,387 16,540
Total assets $ 4,396,647 $ 4,383,100 $ 3,441,709 $ 3,421,769 $ 3,543,561
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts $ 838,050 $ 718,438 $ 580,063 $ 565,433 $ 592,442
Interest bearing transaction accounts and savings deposits 1,793,330 1,862,618 1,453,139 1,428,422 1,456,005
Time deposits less than $100,000 589,798 611,729 454,325 467,778 482,688
Time deposits greater than $100,000 485,870 504,782 351,271 351,486 361,529
Total deposits 3,707,048 3,697,567 2,838,798 2,813,119 2,892,664
Federal funds purchased and securities sold under agreements to repurchase 104,643 107,887 62,311 79,063 108,227
Other borrowings 116,970 117,090 75,987 77,659 81,646
Subordinated debentures 20,620 20,620 20,620 20,620 20,620
Accrued interest and other liabilities 40,694 36,104 40,959 29,458 33,950
Total liabilities 3,989,975 3,979,268 3,038,675 3,019,919 3,137,107
Stockholders' equity:
Common stock 163 162 162 163 165
Surplus 89,274 88,095 87,279 89,434 94,723
Undivided profits 319,354 318,577 318,194 314,663 311,521
Accumulated other comprehensive income
Unrealized appreciation on AFS securities (2,119) (3,002) (2,601) (2,410) 45
Total stockholders' equity 406,672 403,832 403,034 401,850 406,454
Total liabilities and stockholders' equity $ 4,396,647 $ 4,383,100 $ 3,441,709 $ 3,421,769 $ 3,543,561
Simmons First National Corporation SFNC
Consolidated Average Quarter-to-Date Balance Sheets
For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Unaudited) 2014 2013 2013 2013 2013
(in thousands)
ASSETS
Cash and non-interest bearing balances due from banks $ 68,770 $ 50,473 $ 39,067 $ 41,030 $ 42,334
Interest bearing balances due from banks 507,936 428,551 365,504 527,787 560,759
Federal funds sold 385 2,616 3,719 1,922 8,487
Cash and cash equivalents 577,091 481,640 408,290 570,739 611,580
Investment securities - held-to-maturity 749,126 657,736 567,579 511,008 497,152
Investment securities - available-for-sale 223,203 220,292 178,351 182,227 191,981
Mortgage loans held for sale 6,668 6,666 12,171 14,154 19,442
Assets held in trading accounts 7,212 8,881 8,731 8,292 8,525
Loans:
Legacy loans 1,719,294 1,734,469 1,705,204 1,616,036 1,588,299
Allowance for loan losses (27,771) (27,806) (27,735) (28,219) (27,999)
Loans acquired, not covered by FDIC loss share
(net of discount) 505,031 261,577 61,372 72,663 80,755
Loans acquired, covered by FDIC loss share (net of discount) 142,777 145,742 156,392 172,415 196,190
Net loans 2,339,331 2,113,982 1,895,233 1,832,895 1,837,245
FDIC indemnification asset 46,154 57,587 65,478 70,442 74,205
Premises and equipment 119,626 87,310 88,044 88,210 87,571
Premises held for sale 19,514 212 -- -- --
Foreclosed assets not covered by FDIC loss share 63,453 50,680 27,368 29,399 32,102
Foreclosed assets covered by FDIC loss share 19,901 22,529 22,392 25,603 27,812
Interest receivable 14,882 15,707 13,739 12,524 13,370
Bank owned life insurance 60,552 60,209 59,878 59,523 52,706
Goodwill 78,901 60,804 60,605 60,605 60,605
Other intangible assets 14,765 5,526 3,439 3,554 3,693
Other assets 45,458 33,324 12,122 13,435 20,827
Total assets $ 4,385,837 $ 3,883,085 $ 3,423,420 $ 3,482,610 $ 3,538,816
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts $ 735,101 $ 665,644 $ 559,461 $ 560,804 $ 567,588
Interest bearing transaction accounts and savings deposits 1,854,510 1,620,244 1,444,058 1,456,258 1,446,533
Time deposits less than $100,000 601,046 517,603 461,101 475,428 494,196
Time deposits greater than $100,000 495,574 409,361 358,307 359,155 364,496
Total deposits 3,686,231 3,212,852 2,822,927 2,851,645 2,872,813
Federal funds purchased and securities sold under agreements to repurchase 115,018 98,359 67,924 89,879 118,131
Other borrowings 117,588 108,693 75,704 80,090 83,872
Subordinated debentures 20,620 20,620 20,620 20,620 20,620
Accrued interest and other liabilities 36,967 33,117 31,867 32,146 34,486
Total liabilities 3,976,424 3,473,641 3,019,042 3,074,380 3,129,922
Total stockholders' equity 409,413 409,444 404,378 408,230 408,894
Total liabilities and stockholders' equity $ 4,385,837 $ 3,883,085 $ 3,423,420 $ 3,482,610 $ 3,538,816
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) 2014 2013 2013 2013 2013
(in thousands, except per share data)
INTEREST INCOME
Legacy loans $ 21,554 $ 22,463 $ 22,464 $ 22,331 $ 21,207
Loans acquired 18,577 16,151 16,151 8,283 7,864
Federal funds sold 1 5 6 5 3
Investment securities 4,549 3,951 3,428 3,019 2,902
Mortgage loans held for sale 69 72 122 118 155
Assets held in trading accounts 5 6 6 6 11
Interest bearing balances due from banks 279 251 234 352 290
TOTAL INTEREST INCOME 45,034 42,899 34,411 32,571 33,232
INTEREST EXPENSE
Time deposits 1,577 1,479 1,392 1,479 1,588
Other deposits 692 646 601 603 611
Federal funds purchased and securities sold under agreements to repurchase 53 55 46 53 65
Other borrowings 1,010 929 646 692 734
Subordinated debentures 157 161 162 162 159
TOTAL INTEREST EXPENSE 3,489 3,270 2,847 2,989 3,157
NET INTEREST INCOME 41,545 39,629 31,564 29,582 30,075
Provision for loan losses 908 1,084 1,081 1,034 919
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 40,637 38,545 30,483 28,548 29,156
NON-INTEREST INCOME
Trust income 1,537 1,608 1,448 1,342 1,444
Service charges on deposit accounts 6,068 5,497 4,603 4,474 4,241
Other service charges and fees 1,866 1,164 728 791 775
Mortgage lending income 810 916 1,122 1,338 1,216
Investment banking income 181 421 240 696 454
Credit card fees 4,600 4,592 4,400 4,341 4,039
Bank owned life insurance income 330 347 328 366 278
Gain on sale of securities, net -- 42 -- (193) --
Net (loss) gain on assets covered by FDIC loss share agreements (7,370) (7,988) (3,443) (2,615) (2,142)
Other income 1,176 1,118 887 733 1,008
TOTAL NON-INTEREST INCOME 9,198 7,717 10,313 11,273 11,313
NON-INTEREST EXPENSE
Salaries and employee benefits 22,464 19,933 17,701 17,937 18,507
Occupancy expense, net 3,890 2,544 2,485 2,450 2,555
Furniture and equipment expense 2,014 2,257 1,613 2,030 1,723
Other real estate and foreclosure expense 873 562 385 59 331
Deposit insurance 668 620 595 492 775
Merger related costs 1,272 6,413 190 (467) 240
Other operating expenses 13,370 9,349 7,934 7,818 7,781
TOTAL NON-INTEREST EXPENSE 44,551 41,678 30,903 30,319 31,912
NET INCOME BEFORE INCOME TAXES 5,284 4,584 9,893 9,502 8,557
Provision for income taxes 932 798 2,961 2,926 2,620
NET INCOME $ 4,352 $ 3,786 $ 6,932 $ 6,576 $ 5,937
BASIC EARNINGS PER SHARE $ 0.27 $ 0.23 $ 0.43 $ 0.40 $ 0.36
DILUTED EARNINGS PER SHARE $ 0.27 $ 0.23 $ 0.43 $ 0.40 $ 0.36
Simmons First National Corporation SFNC
Consolidated Risk-Based Capital
For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Unaudited) 2014 2013 2013 2013 2013
(in thousands)
Tier 1 capital
Stockholders' equity $ 406,672 $ 403,832 $ 403,034 $ 401,850 $ 406,454
Trust preferred securities, net allowable 20,000 20,000 20,000 20,000 20,000
Disallowed intangible assets, net of deferred tax (74,477) (75,501) (49,727) (48,091) (48,529)
Unrealized loss (gain) on AFS securities 2,119 3,002 2,601 2,410 (45)
Total Tier 1 capital 354,314 351,333 375,908 376,169 377,880
Tier 2 capital
Qualifying unrealized gain on AFS equity securities 42 45 40 35 28
Qualifying allowance for loan losses 28,846 28,967 25,633 24,818 24,129
Total Tier 2 capital 28,888 29,012 25,673 24,853 24,157
Total risk-based capital $ 383,202 $ 380,345 $ 401,581 $ 401,022 $ 402,037
Risk weighted assets $ 2,651,970 $ 2,697,630 $ 2,047,198 $ 1,981,341 $ 1,925,199
Adjusted average assets for leverage ratio $ 4,315,279 $ 3,811,793 $ 3,378,676 $ 3,434,844 $ 3,490,102
Ratios at end of quarter
Equity to assets 9.25% 9.21% 11.71% 11.74% 11.47%
Tangible common equity to tangible assets 7.29% 7.23% 9.98% 10.06% 9.84%
Tier 1 leverage ratio 8.21% 9.22% 11.13% 10.95% 10.83%
Tier 1 risk-based capital ratio 13.36% 13.02% 18.36% 18.99% 19.63%
Total risk-based capital ratio 14.45% 14.10% 19.62% 20.24% 20.88%
Simmons First National Corporation SFNC
Consolidated Loans and Investments
For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Unaudited) 2014 2013 2013 2013 2013
(in thousands)
Legacy Loan Portfolio - End of Period (1)
Consumer
Credit cards $ 172,609 $ 184,935 $ 177,463 $ 173,536 $ 171,599
Student loans 24,415 25,906 28,392 30,106 31,835
Other consumer 104,185 98,851 101,399 103,765 102,297
Total consumer 301,209 309,692 307,254 307,407 305,731
Real Estate
Construction 168,147 146,458 161,024 142,902 136,099
Single-family residential 402,588 392,285 375,703 364,239 355,479
Other commercial 644,772 626,333 602,463 572,110 569,686
Total real estate 1,215,507 1,165,076 1,139,190 1,079,251 1,061,264
Commercial
Commercial 186,303 164,329 154,508 152,122 150,427
Agricultural 72,239 98,886 135,633 107,113 68,028
Total commercial 258,542 263,215 290,141 259,235 218,455
Other 4,351 4,655 4,576 4,502 3,627
Total Loans $ 1,779,609 $ 1,742,638 $ 1,741,161 $ 1,650,395 $ 1,589,077
(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 $ 425,616 $ 395,198 $ 313,052 $ 313,050 $ 288,480
Mortgage-backed securities 33,323 34,425 41 43 45
State and political subdivisions 317,056 315,445 268,055 241,751 199,368
Other securities 620 620 620 620 620
Total held-to-maturity 776,615 745,688 581,768 555,464 488,513
Available-for-Sale
U.S. Government agencies 231,949 178,217 163,127 159,390 159,846
Mortgage-backed securities 1,833 1,891 1,994 2,078 15,891
State and political subdivisions 7,367 7,861 1,263 1,262 1,417
FHLB stock 5,168 6,002 5,085 5,353 5,325
Other securities 14,676 14,321 8,468 9,448 9,686
Total available-for-sale 264,974 212,277 179,937 177,531 192,165
Total investment securities $ 1,041,589 $ 957,965 $ 761,705 $ 732,995 $ 680,678
Fair value - HTM investment securities $ 771,114 $ 731,705 $ 570,703 $ 543,154 $ 491,556
Investment Securities - QTD Average
Taxable securities $ 649,329 $ 583,389 $ 490,801 $ 478,946 $ 485,711
Tax exempt securities 323,000 294,639 255,129 214,289 203,422
Total investment securities - QTD average $ 972,329 $ 878,028 $ 745,930 $ 693,235 $ 689,133
Simmons First National Corporation SFNC
Consolidated Loans and Credit Coverage
For the Quarters Ended Mar 31 Dec 31
(Unaudited) 2014 2013
(in thousands)
LOANS
Legacy loans $ 1,779,609 $ 1,742,638
Allowance for loan losses (26,983) (27,442)
Legacy loans (net of allowance) 1,752,626 1,715,196
Loans acquired, not covered by FDIC loss share 495,915 566,895
Credit discount (45,626) (51,251)
Loans acquired, not covered (net of discount) 450,289 515,644
Loans acquired, covered by FDIC loss share 188,755 209,459
Credit discount (50,876) (62,806)
Loans acquired, covered (net of discount) 137,879 146,653
Net loans $ 2,340,794 $ 2,377,493
Loan Coverage Ratios
Allowance for loan losses to legacy loans 1.52% 1.57%
Discount for credit losses on loans acquired, not covered, to total loans acquired, not covered, plus discount for credit losses on loans acquired, not covered 9.20% 9.04%
Discount for credit losses on loans acquired, covered, to total loans acquired, covered, plus discount for credit losses on loans acquired, covered 26.95% 29.98%
Total allowance and credit coverage 5.01% 5.62%
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) 2014 2013 2013 2013 2013
(in thousands)
Allowance for Loan Losses
Balance, beginning of quarter $ 27,442 $ 27,533 $ 27,398 $ 27,735 $ 27,882
Loans charged off
Credit cards 816 841 770 743 909
Other consumer 148 428 449 310 374
Real estate 1,035 255 247 887 239
Commercial 82 133 20 133 96
Total loans charged off 2,081 1,657 1,486 2,073 1,618
Recoveries of loans previously charged off
Credit cards 271 226 235 204 236
Other consumer 121 166 114 116 195
Real estate 308 78 151 295 68
Commercial 14 12 40 87 53
Total recoveries 714 482 540 702 552
Net loans charged off 1,367 1,175 946 1,371 1,066
Provision for loan losses 908 1,084 1,081 1,034 919
Balance, end of quarter $ 26,983 $ 27,442 $ 27,533 $ 27,398 $ 27,735
Non-performing assets (1) (2)
Non-performing loans
Nonaccrual loans
Real estate $ 8,075 $ 4,799 $ 4,157 $ 4,327 $ 6,963
Commercial 1,054 495 525 526 602
Consumer 883 967 1,293 1,410 1,203
Total nonaccrual loans 10,012 6,261 5,975 6,263 8,768
Loans past due 90 days or more
Government guaranteed student loans 1,965 2,264 2,966 2,254 2,283
Other loans 517 687 725 879 661
Total loans past due 90 days or more 2,482 2,951 3,691 3,133 2,944
Total non-performing loans 12,494 9,212 9,666 9,396 11,712
Other non-performing assets
Foreclosed assets held for sale 17,357 19,361 20,493 21,804 21,253
Acquired foreclosed assets held for sale, not covered by FDIC loss share agreements 40,119 45,459 5,710 8,586 9,461
Other non-performing assets 60 75 60 80 238
Total other non-performing assets 57,536 64,895 26,263 30,470 30,952
Total non-performing assets $ 70,030 $ 74,107 $ 35,929 $ 39,866 $ 42,664
Performing TDRs (troubled debt restructurings) $ 8,655 $ 9,497 $ 9,584 $ 10,473 $ 10,745
Ratios (1) (2)
Allowance for loan losses to total loans 1.52% 1.57% 1.58% 1.66% 1.75%
Allowance for loan losses to non-performing loans 216% 298% 285% 292% 237%
Non-performing loans to total loans 0.70% 0.53% 0.56% 0.57% 0.74%
Non-performing assets (including performing TDRs) to total assets 1.79% 1.91% 1.32% 1.47% 1.51%
Non-performing assets to total assets 1.59% 1.69% 1.04% 1.17% 1.20%
Non-performing assets to total assets
(excluding Gov't guaranteed student loans) 1.55% 1.64% 0.96% 1.10% 1.14%
Annualized net charge offs to total loans 0.32% 0.27% 0.22% 0.34% 0.27%
Annualized net credit card charge offs to total credit card loans 1.20% 1.31% 1.21% 1.25% 1.53%
Annualized net charge offs to total loans
(excluding credit cards) 0.22% 0.14% 0.11% 0.23% 0.11%
Past due loans >30 days (excluding nonaccrual) 0.61% 0.57% 0.62% 0.54% 0.64%
Past due loans >30 days (excluding nonaccrual)
(excluding Gov't guaranteed student loans) 0.45% 0.41% 0.36% 0.35% 0.40%
(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 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Unaudited) 2014 2013 2013 2013 2013
ASSETS
Earning Assets
Interest bearing balances due from banks 0.22% 0.23% 0.25% 0.27% 0.21%
Investment securities 2.60% 2.44% 2.52% 2.37% 2.33%
Mortgage loans held for sale 4.20% 4.29% 3.98% 3.34% 3.23%
Assets held in trading accounts 0.28% 0.27% 0.27% 0.29% 0.52%
Loans, including acquired loans 6.88% 7.16% 6.32% 6.27% 6.32%
Total interest earning assets 4.91% 5.08% 4.63% 4.35% 4.41%
LIABILITIES
Interest bearing liabilities
Interest bearing transaction and savings accounts 0.15% 0.16% 0.17% 0.17% 0.17%
Time deposits 0.58% 0.63% 0.67% 0.71% 0.75%
Total interest bearing deposits 0.31% 0.33% 0.35% 0.36% 0.39%
Federal funds purchased and securities sold under agreement to repurchase 0.19% 0.22% 0.27% 0.24% 0.22%
Other borrowings 3.48% 3.39% 3.39% 3.47% 3.55%
Subordinated debentures 3.09% 3.10% 3.12% 3.15% 3.13%
Total interest bearing liabilities 0.44% 0.47% 0.47% 0.48% 0.51%
NET INTEREST MARGIN/SPREAD
Net interest spread 4.47% 4.61% 4.16% 3.87% 3.90%
Net interest margin - quarter-to-date 4.54% 4.70% 4.27% 3.96% 4.01%
Net interest margin - year-to-date 4.54% 4.21% 4.08% 3.98% 4.01%
Simmons First National Corporation SFNC
Consolidated - Selected Financial Data
For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Unaudited) 2014 2013 2013 2013 2013
($ in thousands, except share data)
QUARTER-TO-DATE
Diluted earnings per share $ 0.27 $ 0.23 $ 0.43 $ 0.40 $ 0.36
Core earnings (excludes nonrecurring items) (non-GAAP) 7,482 7,749 7,371 6,409 6,083
Diluted core earnings per share (non-GAAP) 0.46 0.48 0.45 0.39 0.37
Cash dividends declared per common share 0.22 0.21 0.21 0.21 0.21
Cash dividends declared - amount 3,575 3,403 3,401 3,434 3,469
Return on average stockholders' equity 4.31% 3.67% 6.80% 6.46% 5.89%
Return on tangible equity 5.87% 4.51% 8.18% 7.76% 7.09%
Return on average assets 0.40% 0.39% 0.80% 0.76% 0.68%
Net interest margin (FTE) 4.54% 4.70% 4.27% 3.96% 4.01%
FTE adjustment - investments 1,682 1,442 1,313 1,083 1,062
FTE adjustment - loans 10 17 11 12 11
Amortization of intangibles 364 192 135 137 137
Amortization of intangibles, net of taxes 221 117 82 83 83
Average shares outstanding 16,270,149 16,210,480 16,220,199 16,414,893 16,516,438
Average earning assets 3,861,632 3,466,530 3,059,023 3,106,504 3,151,590
Average interest bearing liabilities 3,204,356 2,774,880 2,427,714 2,481,430 2,527,848
YEAR-TO-DATE
Diluted earnings per share $ 0.27 $ 1.42 $ 1.19 $ 0.76 $ 0.36
Core earnings (excludes nonrecurring items) (non-GAAP) 7,482 27,612 19,863 12,492 6,083
Diluted core earnings per share (non-GAAP) 0.46 1.69 1.21 0.76 0.37
Cash dividends declared per common share 0.22 0.84 0.63 0.42 0.21
Cash dividends declared - amount 3,575 13,707 10,304 6,903 3,469
Return on average stockholders' equity 4.31% 5.33% 6.39% 6.18% 5.89%
Return on tangible equity 5.87% 6.36% 7.68% 7.43% 7.09%
Return on average assets 0.40% 0.64% 0.75% 0.72% 0.68%
Net interest margin (FTE) 4.54% 4.21% 4.08% 3.98% 4.01%
FTE adjustment - investments 1,682 4,900 3,458 2,145 1,062
FTE adjustment - loans 10 51 34 23 11
Amortization of intangibles 364 601 409 274 137
Amortization of intangibles, net of taxes 221 365 248 166 83
Average shares outstanding 16,270,149 16,339,335 16,382,758 16,465,385 16,516,438
Average diluted shares outstanding 16,309,868 16,352,167 16,388,393 16,468,814 16,520,398
Average earning assets 3,861,632 3,224,094 3,105,706 3,129,048 3,151,590
Average interest bearing liabilities 3,204,356 2,551,653 2,477,899 2,503,992 2,527,848
END OF PERIOD
Book value per share $ 24.93 $ 24.89 $ 24.88 $ 24.67 $ 24.62
Tangible book value per share 19.23 19.10 20.80 20.74 20.73
Shares outstanding 16,311,263 16,226,256 16,198,964 16,289,239 16,509,666
Full-time equivalent employees 1,321 1,343 1,097 1,114 1,112
Total number of ATM's 120 157 106 110 110
Total number of financial centers 104 131 87 92 92
Parent company only - investment in subsidiaries 453,067 452,688 371,531 369,965 370,728
Parent company only - intangible assets 133 133 133 133 133
Simmons First National Corporation SFNC
Consolidated - Reconciliation of Core Earnings (non-GAAP)
For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Unaudited) 2014 2013 2013 2013 2013
(in thousands, except per share data)
QUARTER-TO-DATE
Net Income $ 4,352 $ 3,786 $ 6,932 $ 6,576 $ 5,937
Nonrecurring items
Merger related costs 1,272 6,413 190 (467) 240
Loss on sale of securities -- -- -- 193 --
Branch right sizing 3,878 108 533 -- --
Tax effect (2,020) (2,558) (284) 107 (94)
Net nonrecurring items 3,130 3,963 439 (167) 146
Core earnings (non-GAAP) $ 7,482 $ 7,749 $ 7,371 $ 6,409 $ 6,083
Diluted earnings per share $ 0.27 $ 0.23 $ 0.43 $ 0.40 $ 0.36
Nonrecurring items
Merger related costs 0.08 0.40 0.01 (0.03) 0.01
Loss on sale of securities -- -- -- 0.01 --
Branch right sizing 0.24 0.01 0.03 -- --
Tax effect (0.13) (0.16) (0.02) 0.01 --
Net nonrecurring items 0.19 0.25 0.02 (0.01) 0.01
Diluted core earnings per share (non-GAAP) $ 0.46 $ 0.48 $ 0.45 $ 0.39 $ 0.37
YEAR-TO-DATE
Net Income $ 4,352 $ 23,231 $ 19,445 $ 12,513 $ 5,937
Nonrecurring items
Merger related costs 1,272 6,376 (37) (227) 240
Loss on sale of securities -- 193 193 193 --
Branch right sizing 3,878 641 533 -- --
Tax effect (2,020) (2,829) (271) 13 (94)
Net nonrecurring items 3,130 4,381 418 (21) 146
Core earnings (non-GAAP) $ 7,482 $ 27,612 $ 19,863 $ 12,492 $ 6,083
Diluted earnings per share $ 0.27 $ 1.42 $ 1.19 $ 0.76 $ 0.36
Nonrecurring items
Merger related costs 0.08 0.39 (0.01) (0.02) 0.01
Loss on sale of securities -- 0.01 0.01 0.01 --
Branch right sizing 0.24 0.04 0.03 -- --
Tax effect (0.13) (0.17) (0.01) 0.01 --
Net nonrecurring items 0.19 0.27 0.02 -- 0.01
Diluted core earnings per share (non-GAAP) $ 0.46 $ 1.69 $ 1.21 $ 0.76 $ 0.37

CONTACT: DAVID W. GARNER Executive Vice President and Investor Relations Officer Simmons First National Corporation (870) 541-1000

Source:Simmons First National Corporation