×

Simmons First Announces 128 Percent Increase in Core Earnings

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

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

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

Loans

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

Deposits

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

Net Interest Income

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

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

Non-Interest Income

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

Non-Interest Expense

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

Asset Quality

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

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

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

Capital

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

Simmons First National Corporation

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

Conference Call

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

Non-GAAP Financial Measures

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

Forward-Looking Statements

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



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


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


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


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



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


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


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


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


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


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


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


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

Source:Simmons First National Corporation