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Simmons First Announces 145 Percent Increase in Core Earnings

PINE BLUFF, Ark., July 23, 2015 (GLOBE NEWSWIRE) -- Simmons First National Corporation (NASDAQ:SFNC) today announced record core earnings of $22.4 million for the second quarter of 2015, an increase of $13.3 million, or 145 percent, compared with the same quarter last year. Diluted core earnings per share were $0.76, an increase of $0.20, or 35.7 percent. Including the non-core items, net income was $20.0 million for the second quarter of 2015, an increase of $10.1 million, or 102 percent, compared with the same quarter last year. Diluted earnings per share were $0.71, an increase of $0.11, or 18.3 percent.

Year-to-date core earnings were $38.1 million, an increase of $21.5 million, or 129 percent, compared with the same period of 2014. Year-to-date diluted core earnings per share were $1.46, an increase of $0.44, or 43.1 percent. Year-to-date net income was $28.7 million, or $1.10 diluted earnings per share.

"We continue to make good progress with our efficiency initiatives, both in revenue enhancement and in expense control," commented George A. Makris, Jr., chairman and CEO. "Our core efficiency ratio was 58.5 percent for the quarter and our core ROA was 1.17 percent."

Loans

Total loans, including those acquired, were $4.8 billion at June 30, 2015, an increase of $2.4 billion, or 101 percent, compared with the same period in 2014. Legacy loans (all loans excluding acquired loans) grew $742 million, or 40.0 percent. Acquired loans increased by $1.7 billion, net of discounts.

Deposits

At June 30, 2015, total deposits were $6.2 billion, an increase of $2.5 billion, or 69.4 percent, compared with the same period in 2014. Total non-time deposits were $4.7 billion, or 77 percent of total deposits.

Net Interest Income

The company's net interest income for the second quarter of 2015 was $73.2 million, an increase of $32.8 million, or 81.1 percent, from the same period of 2014. This increase was driven by growth in the legacy loan portfolio and earning assets acquired through the Delta Trust, Community First and Liberty transactions. Net interest margin was 4.47 percent for the quarter ended June 30, 2015, a 13 basis-point increase from the same quarter of 2014. 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 acquired impaired loans. Each quarter, the company estimates the cash flows expected to be collected from the acquired impaired loans, and adjustments may or may not be required. The cash flows estimate has increased based on payment histories and reduced loss expectations of the loans. This resulted in increased interest income recognized during the quarter on certain loans and interest income that is spread on a level-yield basis over the remaining expected lives of the loans or loan pools. For loans covered under loss-sharing agreements with the FDIC, the increases in expected cash flows also reduce the amount of expected reimbursements, 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 Six Months Ended
June 30 June 30
(In thousands) 2015 2014 2015 2014
Impact on net interest income $ 3,223 $ 5,856 $ 9,325 $ 13,247
Non-interest income (2,941) (6,410) (5,686) (13,850)
Net impact to pre-tax income $ 282 $ (554) $ 3,639 $ (603)

Because these adjustments will be recognized over the remaining lives of the loans 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 $15.3 million and the remaining adjustment to the indemnification assets that will reduce non-interest income is $6.6 million. For the remainder of 2015, we expect to recognize $5.8 million of interest income and a $5.4 million reduction of non-interest income, for a net increase to pre-tax income of approximately $0.4 million. The accretable yield adjustments recorded in future periods will change as the company continues to evaluate expected cash flows from the acquired loans.

Non-Interest Income

Non-interest income for the second quarter was $25.3 million, an increase of $9.9 million compared with the second quarter of 2014. Losses on FDIC-covered assets decreased $3.2 million primarily due to lower indemnification asset amortization. The remaining increase in non-interest income was primarily due to additional trust income, service charge and fee income, mortgage lending and investment banking income resulting from the acquisitions.

Non-Interest Expense

Non-interest expense for the second quarter of 2015 was $65.2 million, an increase of $25.3 million compared with the same period in 2014. Included in the quarter were $2.7 million of branch right sizing expenses related to the closing of several underperforming branches. The remaining increase in non-interest expense was primarily due to incremental operating expenses of the acquired Delta Trust, Community First and Liberty franchises.

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 percent 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 June 30, 2015, acquired loans covered by loss share were carried at $93.1 million, OREO covered by loss share was carried at $12.8 million and the FDIC loss share indemnification asset was carried at $13.0 million. Acquired loans and OREO not covered by loss share were carried at $2.1 billion and $29.6 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.

At June 30, 2015, the allowance for loan losses was $30.6 million on legacy loans and $1.0 million on covered loans, and the loan credit mark was $83.3 million, for a total of $114.9 million of coverage. This equates to a total coverage ratio of 2.3 percent of gross loans. The ratio of credit mark and related allowance to acquired loans was 3.7 percent. The company's allowance for loan losses on legacy loans at June 30, 2015, was 1.17 percent of total loans and 180 percent of non-performing loans. Non-performing loans as a percent of total loans were 0.65 percent. Through the second quarter of 2015, the year-to-date annualized net charge-off ratio, excluding credit cards, was 0.09 percent, and the year-to-date annualized credit card charge-off ratio was 1.32 percent.

Capital

At June 30, 2015, common stockholders' equity was $1.0 billion, book value per share was $32.23 and tangible book value per share was $20.15. The company's ratio of stockholders' equity to total assets was 13.5 percent and its ratio of tangible common equity to tangible assets was 8.7 percent.

Simmons First National Corporation

Simmons First National Corporation is an Arkansas-based financial holding company with total assets of $7.6 billion and 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. CDT on Thursday, July 23, 2015. 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 71641971. 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 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
(Unaudited) 2015 2015 2014 2014 2014
(in thousands)
ASSETS
Cash and non-interest bearing balances due from banks $ 93,959 $ 108,424 $ 54,347 $ 73,554 $ 44,805
Interest bearing balances due from banks 173,130 423,986 281,562 210,742 377,855
Federal funds sold 49,570 178,418 -- 10,000 --
Cash and cash equivalents 316,659 710,828 335,909 294,296 422,660
Investment securities - held-to-maturity 860,664 902,423 777,587 822,730 799,963
Investment securities - available-for-sale 748,633 707,383 305,283 317,473 270,336
Mortgage loans held for sale 48,094 25,513 21,265 22,003 20,409
Assets held in trading accounts 6,481 6,528 6,987 6,819 6,881
Loans:
Legacy loans 2,611,229 2,115,380 2,053,721 1,963,378 1,868,842
Allowance for loan losses (30,567) (29,183) (29,028) (27,076) (27,530)
Loans acquired, not covered by FDIC loss share (net of discount and allowance) 2,108,306 2,418,440 575,980 676,056 398,967
Loans acquired, covered by FDIC loss share (net of discount and allowance) 93,121 102,468 106,933 118,158 121,524
Net loans 4,782,089 4,607,105 2,707,606 2,730,516 2,361,803
FDIC indemnification asset 13,020 15,965 22,663 25,694 30,508
Premises and equipment 191,335 198,106 122,966 115,639 113,541
Premises held for sale 6,587 -- 6,126 15,856 14,145
Foreclosed assets not covered by FDIC loss share 42,666 50,723 44,856 50,770 53,342
Foreclosed assets covered by FDIC loss share 12,833 12,010 11,793 15,212 16,951
Interest receivable 24,129 24,719 16,774 18,006 14,254
Bank owned life insurance 118,073 117,296 77,592 75,357 61,115
Goodwill 314,282 314,282 108,095 108,095 78,529
Other intangible assets 46,605 47,960 22,526 22,988 14,094
Other assets 82,208 74,959 55,326 49,768 47,310
Total assets $ 7,614,358 $ 7,815,800 $ 4,643,354 $ 4,691,222 $ 4,325,841
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts $ 1,141,285 $ 1,123,966 $ 889,260 $ 884,064 $ 838,543
Interest bearing transaction accounts and savings deposits 3,581,049 3,627,870 2,006,271 1,984,422 1,784,040
Time deposits less than $100,000 1,007,895 1,058,602 530,890 565,957 559,597
Time deposits greater than $100,000 439,793 464,270 434,297 474,472 459,545
Total deposits 6,170,022 6,274,708 3,860,718 3,908,915 3,641,725
Federal funds purchased and securities sold under agreements to repurchase 111,792 111,484 110,586 112,977 98,226
Other borrowings 171,321 284,386 114,682 123,396 115,602
Subordinated debentures 61,794 61,644 20,620 20,620 20,620
Accrued interest and other liabilities 74,324 69,841 42,429 41,309 35,533
Total liabilities 6,589,253 6,802,063 4,149,035 4,207,217 3,911,706
Stockholders' equity:
Preferred stock 30,852 30,852 -- -- --
Common stock 299 299 181 180 163
Surplus 640,895 639,493 156,568 155,592 90,010
Undivided profits 354,459 341,238 338,906 330,185 325,371
Accumulated other comprehensive income (loss)
Unrealized (depreciation) appreciation on AFS securities (1,400) 1,855 (1,336) (1,952) (1,409)
Total stockholders' equity 1,025,105 1,013,737 494,319 484,005 414,135
Total liabilities and stockholders' equity $ 7,614,358 $ 7,815,800 $ 4,643,354 $ 4,691,222 $ 4,325,841

Simmons First National Corporation SFNC
Consolidated Average Quarter-to-Date Balance Sheets
For the Quarters Ended Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
(Unaudited) 2015 2015 2014 2014 2014
(in thousands)
ASSETS
Cash and non-interest bearing balances due from banks $ 95,954 $ 68,322 $ 54,485 $ 50,980 $ 44,671
Interest bearing balances due from banks 308,756 371,195 299,054 288,258 456,931
Federal funds sold 75,922 56,846 6,486 6,794 985
Cash and cash equivalents 480,632 496,363 360,025 346,032 502,587
Investment securities - held-to-maturity 922,411 915,405 806,069 810,085 782,900
Investment securities - available-for-sale 733,415 370,102 318,879 300,927 265,194
Mortgage loans held for sale 37,656 14,655 17,241 24,942 15,299
Assets held in trading accounts 6,592 6,782 6,848 6,841 6,850
Loans:
Legacy loans 2,363,305 2,084,551 2,008,550 1,917,155 1,817,429
Allowance for loan losses (31,275) (30,072) (28,474) (27,470) (27,287)
Loans acquired, not covered by FDIC loss share (net of discount and allowance) 2,228,841 1,197,601 620,505 481,658 418,515
Loans acquired, covered by FDIC loss share (net of discount and allowance) 97,795 104,701 111,618 119,372 128,099
Net loans 4,658,666 3,356,781 2,712,199 2,490,715 2,336,756
FDIC indemnification asset 15,448 21,515 24,457 28,311 35,940
Premises and equipment 200,875 150,564 117,018 115,577 112,994
Premises held for sale 6,131 6,126 6,794 12,521 21,142
Foreclosed assets not covered by FDIC loss share 42,994 44,059 48,745 51,097 55,304
Foreclosed assets covered by FDIC loss share 12,313 11,902 13,964 16,073 18,330
Interest receivable 23,260 19,181 17,738 15,743 15,076
Bank owned life insurance 117,662 91,760 76,578 63,798 60,895
Goodwill 314,060 175,901 109,837 88,590 78,529
Other intangible assets 47,302 31,102 17,748 15,321 14,299
Other assets 76,275 58,536 50,566 52,234 48,583
Total assets $ 7,695,692 $ 5,770,734 $ 4,704,706 $ 4,438,807 $ 4,370,678
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts $ 1,088,474 $ 946,979 $ 895,470 $ 828,340 $ 823,552
Interest bearing transaction accounts and savings deposits 3,621,060 2,601,046 2,010,827 1,869,095 1,810,436
Time deposits less than $100,000 1,037,025 715,710 545,986 555,837 577,856
Time deposits greater than $100,000 451,183 438,782 458,117 457,489 472,009
Total deposits 6,197,742 4,702,517 3,910,400 3,710,761 3,683,853
Federal funds purchased and securities sold under agreements to repurchase 116,258 121,568 117,661 108,357 101,537
Other borrowings 179,080 183,953 121,691 117,664 116,082
Subordinated debentures 62,981 35,686 20,620 20,620 20,620
Accrued interest and other liabilities 70,312 43,825 38,869 38,950 34,637
Total liabilities 6,626,373 5,087,549 4,209,241 3,996,352 3,956,729
Stockholders' equity:
Preferred stock 30,885 10,970 -- -- --
Common stock 299 223 180 169 163
Surplus 640,172 328,830 155,672 111,551 89,552
Undivided profits 396,609 343,973 341,042 332,184 325,878
Accumulated other comprehensive income (loss)
Unrealized appreciation (depreciation) on AFS securities 1,354 (811) (1,429) (1,449) (1,644)
Total stockholders' equity 1,069,319 683,185 495,465 442,455 413,949
Total liabilities and stockholders' equity $ 7,695,692 $ 5,770,734 $ 4,704,706 $ 4,438,807 $ 4,370,678

Simmons First National Corporation SFNC
Consolidated Statements of Income - Quarter-to-Date
For the Quarters Ended Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
(Unaudited) 2015 2015 2014 2014 2014
(in thousands, except per share data)
INTEREST INCOME
Loans $ 70,438 $ 50,986 $ 45,248 $ 40,082 $ 38,622
Federal funds sold 73 29 13 12 2
Investment securities 8,050 5,879 5,325 4,717 4,766
Mortgage loans held for sale 375 148 188 269 168
Assets held in trading accounts 4 3 4 3 5
Interest bearing balances due from banks 229 210 167 132 279
TOTAL INTEREST INCOME 79,169 57,255 50,945 45,215 43,842
INTEREST EXPENSE
Time deposits 2,064 1,596 1,470 1,461 1,515
Other deposits 2,131 1,348 872 771 720
Federal funds purchased and securities sold under agreements to repurchase 57 64 61 55 31
Other borrowings 1,151 1,051 992 996 988
Subordinated debentures 559 234 160 160 160
TOTAL INTEREST EXPENSE 5,962 4,293 3,555 3,443 3,414
NET INTEREST INCOME 73,207 52,962 47,390 41,772 40,428
Provision for loan losses 3,006 1,171 3,607 1,128 1,602
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 70,201 51,791 43,783 40,644 38,826
NON-INTEREST INCOME
Trust income 2,070 2,251 2,182 1,838 1,553
Service charges on deposit accounts 8,031 6,363 6,552 6,238 6,792
Other service charges and fees 3,130 1,827 1,083 808 859
Mortgage lending income 3,449 2,262 1,457 1,812 1,262
Investment banking income 593 894 451 284 154
Debit and credit card fees 6,486 5,648 5,653 5,769 5,801
Bank owned life insurance income 746 572 727 411 377
Gain on sale of securities, net -- (38) (12) (18) 38
Net (loss) gain on assets covered by FDIC loss share agreements (3,056) (2,671) (3,013) (3,744) (6,268)
Other income 3,863 1,390 6,424 2,637 4,820
TOTAL NON-INTEREST INCOME 25,312 18,498 21,504 16,035 15,388
NON-INTEREST EXPENSE
Salaries and employee benefits 35,475 26,771 25,126 20,892 20,982
Occupancy expense, net 5,051 3,557 2,494 3,204 3,285
Furniture and equipment expense 3,241 3,268 2,732 2,363 2,215
Other real estate and foreclosure expense 1,017 381 1,395 1,864 375
Deposit insurance 1,096 870 724 877 1,085
Merger related costs 1,247 10,419 1,214 3,628 1,354
Other operating expenses 18,041 12,106 13,294 11,526 10,546
TOTAL NON-INTEREST EXPENSE 65,168 57,372 46,979 44,354 39,842
NET INCOME BEFORE INCOME TAXES 30,345 12,917 18,308 12,325 14,372
Provision for income taxes 10,250 4,182 5,669 3,537 4,464
NET INCOME 20,095 8,735 12,639 8,788 9,908
Preferred stock dividends 77 26 -- -- --
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 20,018 $ 8,709 $ 12,639 $ 8,788 $ 9,908
BASIC EARNINGS PER SHARE $ 0.71 $ 0.39 $ 0.72 $ 0.52 $ 0.61
DILUTED EARNINGS PER SHARE $ 0.71 $ 0.39 $ 0.72 $ 0.52 $ 0.60

Simmons First National Corporation SFNC
Consolidated Risk-Based Capital
For the Quarters Ended Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
(Unaudited) 2015 2015 2014 2014 2014
($ in thousands)
Tier 1 capital
Stockholders' equity $ 1,025,105 $ 1,013,737 $ 494,319 $ 482,642 $ 414,135
Trust preferred securities, net allowable 61,794 61,410 20,000 20,000 20,000
Disallowed intangible assets, net of deferred tax (342,590) (344,140) (112,545) (109,698) (74,003)
Unrealized (gain) loss on AFS securities 1,400 (1,855) 1,336 1,952 1,409
Other (10,297) (4,789) -- -- --
Total Tier 1 capital 735,412 724,363 403,110 394,896 361,541
Tier 2 capital
Qualifying unrealized gain on AFS equity securities -- -- 2 -- 47
Qualifying allowance for loan losses and reserve for unfunded commitments 34,284 32,600 32,073 29,167 29,621
Total Tier 2 capital 34,284 32,600 32,075 29,167 29,668
Total risk-based capital $ 769,696 $ 756,963 $ 435,185 $ 424,063 $ 391,209
Common equity
Tier 1 capital $ 735,412 $ 724,363 -- -- --
Less: Non-cumulative preferred stock (30,852) (30,852) -- -- --
Less: Trust preferred securities (61,794) (61,410) -- -- --
Total common equity $ 642,766 $ 632,101 -- -- --
Risk weighted assets $ 4,714,852 $ 4,659,065 $ 3,002,270 $ 3,063,801 $ 2,652,474
Adjusted average assets for leverage ratio $ 7,350,900 $ 5,428,706 $ 4,593,924 $ 4,331,488 $ 4,299,379
Ratios at end of quarter
Equity to assets 13.46% 12.97% 10.65% 10.29% 9.57%
Tangible common equity to tangible assets 8.73% 8.32% 8.06% 7.78% 7.59%
Common equity Tier 1 ratio (CET1) 13.63% 13.57% -- -- --
Tier 1 leverage ratio 10.00% 13.34% 8.77% 9.12% 8.41%
Tier 1 risk-based capital ratio 15.60% 15.55% 13.43% 12.89% 13.63%
Total risk-based capital ratio 16.32% 16.25% 14.50% 13.84% 14.75%

Simmons First National Corporation SFNC
Consolidated Loans and Investments
For the Quarters Ended Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
(Unaudited) 2015 2015 2014 2014 2014
(in thousands)
Legacy Loan Portfolio - End of Period (1)
Consumer
Credit cards $ 174,074 $ 171,413 $ 185,380 $ 175,822 $ 176,239
Student loans -- -- -- -- 398
Other consumer 160,828 107,486 103,402 105,508 105,998
Total consumer 334,902 278,899 288,782 281,330 282,635
Real Estate
Construction 199,707 178,929 181,968 163,364 163,412
Single-family residential 662,954 507,351 455,563 436,925 417,187
Other commercial 878,109 716,021 714,797 681,848 653,734
Total real estate 1,740,770 1,402,301 1,352,328 1,282,137 1,234,333
Commercial
Commercial 388,869 324,815 291,820 249,186 233,510
Agricultural 141,502 105,228 115,658 145,157 111,567
Total commercial 530,371 430,043 407,478 394,343 345,077
Other 5,186 4,137 5,133 5,568 6,796
Total Loans $ 2,611,229 $ 2,115,380 $ 2,053,721 $ 1,963,378 $ 1,868,841
(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 $ 361,744 $ 390,625 $ 418,914 $ 455,827 $ 449,201
Mortgage-backed securities 27,147 28,535 29,743 30,954 32,204
State and political subdivisions 470,698 482,316 328,310 335,329 317,938
Other securities 1,075 947 620 620 620
Total held-to-maturity 860,664 902,423 777,587 822,730 799,963
Available-for-Sale
U.S. Treasury $ 4,005 $ 4,008 $ 3,992 $ 3,991 $ 3,994
U.S. Government agencies 236,003 346,315 272,816 280,321 238,411
Mortgage-backed securities 464,857 312,011 1,572 32 1,958
State and political subdivisions 11,903 13,452 6,540 8,903 6,920
FHLB stock 13,619 15,256 5,126 5,623 4,966
Other securities 18,246 16,341 15,237 18,603 14,087
Total available-for-sale 748,633 707,383 305,283 317,473 270,336
Total investment securities $ 1,609,297 $ 1,609,806 $ 1,082,870 $ 1,140,203 $ 1,070,299
Fair value - HTM investment securities $ 863,513 $ 913,037 $ 780,534 $ 823,446 $ 802,597
Investment Securities - QTD Average
Taxable securities $ 1,163,708 $ 893,946 $ 782,062 $ 781,685 $ 722,084
Tax exempt securities 492,118 391,561 342,886 329,327 326,010
Total investment securities - QTD average $ 1,655,826 $ 1,285,507 $ 1,124,948 $ 1,111,012 $ 1,048,094

Simmons First National Corporation SFNC
Consolidated Loans and Credit Coverage
For the Quarters Ended Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
(Unaudited) 2015 2015 2014 2014 2014
($ in thousands)
LOANS
Legacy loans $ 2,611,229 $ 2,115,380 $ 2,053,721 $ 1,963,378 $ 1,868,841
Allowance for loan losses (legacy loans) (30,567) (29,183) (29,028) (27,076) (27,530)
Legacy loans (net of allowance) 2,580,662 2,086,197 2,024,693 1,936,302 1,841,311
Loans acquired, not covered by FDIC loss share 2,171,388 2,491,316 621,020 733,914 445,515
Credit discount (63,082) (72,876) (45,040) (57,858) (46,548)
Loans acquired, not covered (net of discount) 2,108,306 2,418,440 575,980 676,056 398,967
Loans acquired, covered by FDIC loss share 114,296 126,629 140,038 154,183 163,775
Credit discount (20,221) (23,207) (32,151) (36,025) (42,251)
Allowance for loan losses (acquired covered loans) (954) (954) (954) -- --
Loans acquired, covered (net of discount and allowance) 93,121 102,468 106,933 118,158 121,524
Net loans $ 4,782,089 $ 4,607,105 $ 2,707,606 $ 2,730,516 $ 2,361,802
Loan Coverage Ratios
Allowance for loan losses to legacy loans 1.17% 1.38% 1.41% 1.38% 1.47%
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 2.91% 2.93% 7.25% 7.88% 10.45%
Discount for credit losses on loans acquired, covered, to total loans acquired, covered, plus discount for credit losses on loans acquired, covered 18.53% 19.08% 23.64% 23.37% 25.80%
Total allowance and credit coverage 2.34% 2.67% 3.81% 4.24% 4.69%

Simmons First National Corporation SFNC
Consolidated Allowance and Asset Quality
For the Quarters Ended Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
(Unaudited) 2015 2015 2014 2014 2014
($ in thousands)
Allowance for Loan Losses (Legacy Loans)
Balance, beginning of quarter $ 29,183 $ 29,028 $ 27,076 $ 27,530 $ 26,983
Loans charged off
Credit cards 802 785 859 788 725
Other consumer 366 220 781 648 426
Real estate 333 293 200 534 1,144
Commercial -- 245 310 474 186
Total loans charged off 1,501 1,543 2,150 2,444 2,481
Recoveries of loans previously charged off
Credit cards 241 213 220 190 215
Other consumer 187 133 94 122 133
Real estate 46 12 56 379 1,062
Commercial 9 169 125 171 16
Total recoveries 483 527 495 862 1,426
Net loans charged off 1,018 1,016 1,655 1,582 1,055
Provision for loan losses 2,402 1,171 3,607 1,128 1,602
Balance, end of quarter $ 30,567 $ 29,183 $ 29,028 $ 27,076 $ 27,530
Non-performing assets (1) (2)
Non-performing loans
Nonaccrual loans
Real estate $ 12,726 $ 12,460 $ 10,152 $ 9,374 $ 8,166
Commercial 2,531 1,650 1,481 1,174 1,110
Consumer 308 401 405 664 877
Total nonaccrual loans 15,565 14,511 12,038 11,212 10,153
Loans past due 90 days or more
Government guaranteed student loans -- -- -- -- 323
Other loans 1,375 498 961 713 757
Total loans past due 90 days or more 1,375 498 961 713 1,080
Total non-performing loans 16,940 15,009 12,999 11,925 11,233
Other non-performing assets
Foreclosed assets held for sale 13,022 19,644 11,803 13,167 16,745
Acquired foreclosed assets held for sale, not covered by FDIC loss share agreements 29,644 31,079 33,053 37,603 36,597
Other non-performing assets 242 215 97 72 80
Total other non-performing assets 42,908 50,938 44,953 50,842 53,422
Total non-performing assets $ 59,848 $ 65,947 $ 57,952 $ 62,767 $ 64,655
Performing TDRs (troubled debt restructurings) $ 1,959 $ 2,227 $ 2,233 $ 2,234 $ 2,776
Ratios (1) (2)
Allowance for loan losses to total loans 1.17% 1.38% 1.41% 1.38% 1.47%
Allowance for loan losses to non-performing loans 180% 194% 223% 227% 245%
Non-performing loans to total loans 0.65% 0.71% 0.63% 0.61% 0.60%
Non-performing assets (including performing TDRs) to total assets 0.81% 0.87% 1.30% 1.39% 1.56%
Non-performing assets to total assets 0.79% 0.84% 1.25% 1.34% 1.49%
Non-performing assets to total assets (excluding Gov't guaranteed student loans) 0.79% 0.84% 1.25% 1.34% 1.49%
Annualized net charge offs to total loans 0.17% 0.20% 0.33% 0.33% 0.23%
Annualized net credit card charge offs to total credit card loans 1.31% 1.32% 1.41% 1.31% 1.14%
Annualized net charge offs to total loans (excluding credit cards) 0.08% 0.09% 0.22% 0.22% 0.13%
Past due loans >30 days (excluding nonaccrual) 0.43% 0.37% 0.48% 0.33% 0.34%
Past due loans >30 days (excluding nonaccrual) (excluding Gov't guaranteed student loans) 0.41% 0.37% 0.48% 0.33% 0.32%
(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 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
(Unaudited) 2015 2015 2014 2014 2014
ASSETS
Earning Assets
Interest bearing balances due from banks 0.30% 0.23% 0.22% 0.18% 0.24%
Investment securities 2.50% 2.44% 2.49% 2.29% 2.47%
Mortgage loans held for sale 3.99% 4.10% 4.33% 4.28% 4.40%
Assets held in trading accounts 0.24% 0.18% 0.23% 0.17% 0.29%
Loans, including acquired loans 6.03% 6.11% 6.55% 6.32% 6.55%
Total interest earning assets 4.82% 4.68% 4.98% 4.71% 4.69%
LIABILITIES
Interest bearing liabilities
Interest bearing transaction and savings accounts 0.24% 0.21% 0.17% 0.16% 0.16%
Time deposits 0.56% 0.56% 0.58% 0.57% 0.58%
Total interest bearing deposits 0.33% 0.32% 0.31% 0.31% 0.31%
Federal funds purchased and securities sold under agreement to repurchase 0.20% 0.21% 0.21% 0.20% 0.12%
Other borrowings 2.58% 2.32% 3.23% 3.36% 3.41%
Subordinated debentures 3.56% 2.66% 3.08% 3.08% 3.11%
Total interest bearing liabilities 0.44% 0.42% 0.43% 0.44% 0.44%
NET INTEREST MARGIN/SPREAD
Net interest spread 4.38% 4.26% 4.55% 4.27% 4.25%
Net interest margin - quarter-to-date 4.47% 4.34% 4.65% 4.36% 4.34%
Net interest margin - year-to-date 4.42% 4.34% 4.47% 4.41% 4.44%

Simmons First National Corporation SFNC
Consolidated - Selected Financial Data
For the Quarters Ended Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
(Unaudited) 2015 2015 2014 2014 2014
($ in thousands, except share data)
QUARTER-TO-DATE
Financial Highlights - Core (non-GAAP)
Core earnings (excludes nonrecurring items) (1) $ 22,444 $ 15,700 $ 11,387 $ 10,684 $ 9,153
Diluted core earnings per share (1) 0.76 0.70 0.64 0.63 0.56
Core net interest margin (FTE) (2) 3.87% 3.55% 3.63% 3.51% 3.49%
Core efficiency ratio (1) 58.51% 62.24% 64.32% 64.89% 68.15%
Core return on average assets (1) 1.17% 1.10% 0.96% 0.95% 0.84%
Core return on average common equity (1) 8.67% 9.47% 9.12% 9.58% 8.87%
Core return on tangible common equity (1) 13.80% 14.16% 12.65% 12.84% 11.78%
Financial Highlights - GAAP
Net Income $ 20,018 $ 8,709 $ 12,639 $ 8,788 $ 9,908
Diluted earnings per share 0.71 0.39 0.72 0.52 0.60
Return on average assets 1.04% 0.61% 1.07% 0.79% 0.91%
Return on average common equity 7.73% 5.25% 10.12% 7.88% 9.60%
Return on tangible common equity 12.36% 8.07% 14.00% 10.62% 12.72%
Net interest margin (FTE) 4.47% 4.34% 4.65% 4.36% 4.34%
FTE adjustment 2,303 1,857 1,751 1,702 1,695
Amortization of intangibles 1,388 899 565 454 452
Amortization of intangibles, net of taxes 844 546 343 276 275
Average earning assets 6,774,693 5,121,838 4,195,250 3,956,032 3,892,202
Average interest bearing liabilities 5,467,587 4,096,745 3,274,902 3,129,062 3,098,540
Average diluted shares outstanding 29,987,471 22,350,272 18,075,537 16,916,764 16,360,696
Cash dividends declared per common share 0.23 0.23 0.22 0.22 0.22
YEAR-TO-DATE
Financial Highlights - Core (non-GAAP)
Core earnings (excludes nonrecurring items) (1) $ 38,144 $ 15,700 $ 38,706 $ 27,319 $ 16,635
Diluted core earnings per share (1) 1.46 0.70 2.29 1.65 1.02
Core net interest margin (FTE) (2) 3.74% 3.55% 3.53% 3.49% 3.49%
Core efficiency ratio (1) 60.08% 62.24% 67.22% 68.41% 70.35%
Core return on average assets (1) 1.14% 1.10% 0.86% 0.83% 0.77%
Core return on average common equity (1) 8.99% 9.47% 8.79% 8.66% 8.15%
Core return on tangible common equity (1) 13.96% 14.16% 11.89% 11.57% 10.88%
Financial Highlights - GAAP
Net Income $ 28,727 $ 8,709 $ 35,688 $ 23,049 $ 14,261
Diluted earnings per share 1.10 0.39 2.11 1.39 0.87
Return on average assets 0.86% 0.61% 0.80% 0.70% 0.65%
Return on average common equity 6.77% 5.25% 8.11% 7.30% 6.95%
Return on tangible common equity 10.63% 8.07% 10.99% 9.82% 9.33%
Net interest margin (FTE) 4.42% 4.34% 4.47% 4.41% 4.44%
FTE adjustment 4,160 1,857 6,840 5,089 3,387
Amortization of intangibles 2,287 899 1,979 1,359 905
Amortization of intangibles, net of taxes 1,390 546 1,203 826 550
Average earning assets 5,948,265 5,121,838 3,975,903 3,903,290 3,876,918
Average interest bearing liabilities 4,782,167 4,096,745 3,176,716 3,143,984 3,151,446
Average diluted shares outstanding 26,203,942 22,350,272 16,922,026 16,532,689 16,336,901
Cash dividends declared per common share 0.46 0.23 0.88 0.66 0.44
END OF PERIOD
Book value per share $ 32.23 $ 31.89 $ 27.38 $ 26.82 $ 25.36
Tangible book value per share 20.15 19.76 20.15 19.72 19.69
Shares outstanding 29,894,903 29,850,034 18,052,488 17,992,261 16,331,341
Full-time equivalent employees 2,043 2,076 1,338 1,397 1,281
Total number of ATM's 186 179 124 129 120
Total number of financial centers 152 164 109 113 104
(1) Core earnings exclude 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 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
(Unaudited) 2015 2015 2014 2014 2014
(in thousands, except per share data)
QUARTER-TO-DATE
Net Income $ 20,018 $ 8,709 $ 12,639 $ 8,788 $ 9,908
Nonrecurring items
Gain on sale of merchant services -- -- -- -- (1,000)
Merger related costs 1,247 10,419 1,218 3,628 1,354
Change-in-control payments -- -- 885 -- --
Branch right sizing 2,745 35 (4,221) (705) (2,011)
Charter consolidation costs -- -- 42 196 414
Tax effect (1) (1,566) (3,463) 824 (1,223) 488
Net nonrecurring items 2,426 6,991 (1,252) 1,896 (755)
Core earnings (non-GAAP) $ 22,444 $ 15,700 $ 11,387 $ 10,684 $ 9,153
Diluted earnings per share $ 0.71 $ 0.39 $ 0.72 $ 0.52 $ 0.60
Nonrecurring items
Gain on sale of merchant services -- -- -- -- (0.06)
Merger related costs 0.03 0.47 0.07 0.21 0.08
Change-in-control payments -- -- 0.05 -- --
Branch right sizing 0.06 -- (0.24) (0.04) (0.12)
Charter consolidation costs -- -- -- 0.01 0.03
Tax effect (1) (0.04) (0.16) 0.04 (0.07) 0.03
Net nonrecurring items 0.05 0.31 (0.08) 0.11 (0.04)
Diluted core earnings per share (non-GAAP) $ 0.76 $ 0.70 $ 0.64 $ 0.63 $ 0.56
YEAR-TO-DATE
Net Income $ 28,727 $ 8,709 $ 35,687 $ 23,049 $ 14,261
Nonrecurring items
Gain on sale of merchant services -- -- (1,000) (1,000) (1,000)
Merger related costs 11,665 10,419 7,472 6,254 2,626
Change-in-control payments -- -- 885 -- --
Branch right sizing 2,780 35 (3,059) 1,162 1,867
Charter consolidation costs -- -- 652 610 414
Tax effect (1) (5,028) (3,463) (1,931) (2,745) (1,533)
Net nonrecurring items 9,417 6,991 3,019 4,281 2,374
Core earnings (non-GAAP) $ 38,144 $ 15,700 $ 38,706 $ 27,330 $ 16,635
Diluted earnings per share $ 1.10 $ 0.39 $ 2.11 $ 1.39 $ 0.87
Nonrecurring items
Gain on sale of merchant services -- -- (0.06) (0.06) (0.06)
Merger related costs 0.45 0.47 0.44 0.37 0.16
Change-in-control payments -- -- 0.05 -- --
Branch right sizing 0.11 -- (0.16) 0.08 0.12
Charter consolidation costs -- -- 0.04 0.04 0.03
Tax effect (1) (0.20) (0.16) (0.13) (0.17) (0.10)
Net nonrecurring items 0.36 0.31 0.18 0.26 0.15
Diluted core earnings per share (non-GAAP) $ 1.46 $ 0.70 $ 2.29 $ 1.65 $ 1.02
(1) Effective tax rate of 39.225%, adjusted for non-deductible merger related costs.

CONTACT: FOR MORE INFORMATION CONTACT: J. BURTON HICKS Chief of Staff and Investor Relations Officer Simmons First National Corporation (870) 541-1000

Source:Simmons First National Corporation