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Simmons Announces 48 Percent Increase in Core Earnings

PINE BLUFF, Ark., April 21, 2016 (GLOBE NEWSWIRE) -- Simmons First National Corporation (NASDAQ:SFNC) today announced core earnings of $23.2 million for the first quarter of 2016, an increase of $7.5 million, or 47.7 percent, compared with the same quarter last year. Diluted core earnings per share were $0.76, an increase of $0.06, or 8.6 percent.

Including the non-core items, net income was $23.5 million for the first quarter of 2016, an increase of $14.8 million, or 169.6 percent, compared with the same quarter last year. Diluted earnings per share were $0.77, an increase of $0.38, or 97.4 percent.

“We believe that our operating results reflect the successful integration of 12 separately chartered banks and two trust companies over the past two years. We continue to pursue growth opportunities and improvement in our organization as evidenced by our recent charter conversion to a state member bank,” said George A. Makris, Jr., chairman and CEO.

Loans

Total loans, including those acquired, were $4.9 billion at March 31, 2016, an increase of $290 million, or 6.3 percent, compared with the same period in 2015. Legacy loans (all loans excluding acquired loans) grew $1.4 billion, or 64.2 percent. On a linked quarter basis, total loan growth was $10.7 million. Adjusting for seasonality in the credit card and agricultural loan portfolios, loans grew by $31.4 million during the quarter.

Deposits

At March 31, 2016, total deposits were $6.1 billion, a decrease of $195 million, or 3.1 percent, compared with the same period in 2015. Total non-time deposits were $4.8 billion, or 78.9 percent of total deposits.

Net Interest Income

The company’s net interest income for the first quarter of 2016 was $70.2 million, an increase of $17.3 million, or 32.6 percent, from the same period of 2015. 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 4.41 percent for the quarter ended March 31, 2016, a 7 basis-point increase from the same quarter of 2015.

Included in interest income was the yield accretion recognized on acquired loans of $8.1 million and $10.0 million for the first quarter of 2016 and 2015, respectively. The company’s core net interest margin, excluding the accretion, was 3.92 percent for the first quarter of 2016, a 37 basis-point increase from the same quarter of 2015.

Non-Interest Income

Non-interest income for the first quarter was $29.5 million, an increase of $11.2 million compared with the first quarter of 2015. The increase in non-interest income was primarily due to additional service charge and fee income, mortgage lending and trust income resulting from the 2015 acquisitions and gains on sale of other real estate and investment securities. Additional trust income resulted from the completed acquisition of Ozark Trust. Included in the quarter was $594,000 of gain related to the early retirement of trust preferred securities. Losses on FDIC-covered assets decreased by $2.7 million with the elimination of indemnification asset amortization due to the company’s 2015 termination of loss-sharing agreements with the FDIC.

Non-Interest Expense

Non-interest expense for the first quarter of 2016 was $61.8 million. Included in the quarter were $107,000 of merger-related and branch right-sizing expenses.

Asset Quality

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 March 31, 2016, the allowance for loan losses for legacy loans was $32.7 million, with a $1.0 million allowance for acquired loans. The loan discount credit mark was $45.1 million, for a total of $78.8 million of coverage. This equates to a total coverage ratio of 1.6 percent of gross loans. The ratio of credit mark and related allowance to acquired loans was 3.1 percent.

The company's allowance for loan losses on legacy loans at March 31, 2016 was 0.94 percent of total loans and 93 percent of non-performing loans. In the legacy portfolio, non-performing loans as a percent of total loans were 1.01 percent. The increase in the non-performing ratio from the fourth quarter is primarily the result of a single credit totaling $13.5 million. Excluding this credit, the non-performing ratio was relatively unchanged from the previous quarter, at 0.62 percent versus 0.58 percent. The 2016 year-to-date net charge-off ratio, excluding credit cards, was 11 basis points, and the year-to-date credit card charge-off ratio was 1.46 percent.

Capital

At March 31, 2016, common stockholders' equity was $1.1 billion, book value per share was $35.35 and tangible book value per share was $22.84. 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 9.7 percent.

Simmons First National Corporation

Simmons First National Corporation is an Arkansas-based financial holding company with total assets of $7.5 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. CDT on Thursday, April 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 84913510. 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 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Unaudited) 2016 2015 2015 2015 2015
($ in thousands)
ASSETS
Cash and non-interest bearing balances due from banks$118,468 $97,656 $106,678 $69,770 $83,424
Interest bearing balances due from banks 100,593 154,606 284,645 173,130 423,986
Federal funds sold 4,000 - 9,675 49,570 178,418
Cash and cash equivalents 223,061 252,262 400,998 292,470 685,828
Interest bearing balances due from banks - time 11,188 14,107 16,504 24,189 25,000
Investment securities - held-to-maturity 674,502 705,373 776,294 861,596 902,423
Investment securities - available-for-sale 857,673 821,407 703,347 747,701 707,383
Mortgage loans held for sale 24,563 30,265 15,556 48,094 25,513
Assets held in trading accounts 7,074 4,422 6,292 6,481 6,528
Loans:
Legacy loans 3,472,691 3,246,454 2,839,278 2,611,229 2,115,380
Allowance for loan losses (32,681) (31,351) (30,380) (30,567) (29,183)
Loans acquired, not covered by FDIC loss share
(net of discount and allowance) 1,457,370 1,672,901 2,013,816 2,108,306 2,418,440
Loans acquired, covered by FDIC loss share
(net of discount and allowance) - - - 93,121 102,468
Net loans 4,897,380 4,888,004 4,822,714 4,782,089 4,607,105
FDIC indemnification asset - - - 13,020 15,965
Premises and equipment 192,327 193,618 190,182 191,335 198,106
Premises held for sale 2,364 923 923 6,587 -
Foreclosed assets not covered by FDIC loss share 41,126 44,820 48,073 42,666 50,723
Foreclosed assets covered by FDIC loss share - - - 12,833 12,010
Interest receivable 23,545 25,793 26,873 24,129 24,719
Bank owned life insurance 130,092 131,536 118,922 118,073 117,296
Goodwill 327,686 327,686 314,344 314,344 314,344
Other intangible assets 51,783 53,237 44,904 46,605 47,960
Other assets 72,589 66,205 73,768 82,146 74,897
Total assets$ 7,536,953 $ 7,559,658 $ 7,559,694 $ 7,614,358 $ 7,815,800
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts$1,274,816 $1,280,234 $1,212,724 $1,141,285 $1,123,966
Interest bearing transaction accounts and savings deposits 3,524,808 3,485,845 3,521,840 3,581,049 3,627,870
Time deposits less than $100,000 674,915 694,262 673,651 719,606 756,978
Time deposits greater than $100,000 605,236 625,755 681,585 728,082 765,894
Total deposits 6,079,775 6,086,096 6,089,800 6,170,022 6,274,708
Federal funds purchased and securities sold
under agreements to repurchase 97,429 99,398 110,437 111,792 111,484
Other borrowings 176,829 162,289 173,426 171,321 284,386
Subordinated debentures 60,077 60,570 61,906 61,794 61,644
Accrued interest and other liabilities 50,859 74,450 78,684 74,324 69,841
Total liabilities 6,464,969 6,482,803 6,514,253 6,589,253 6,802,063
Stockholders' equity:
Preferred stock - 30,852 30,852 30,852 30,852
Common stock 303 303 299 299 299
Surplus 665,850 662,378 642,400 640,895 639,493
Undivided profits 402,265 385,987 369,172 354,459 341,238
Accumulated other comprehensive income (loss):
Unrealized appreciation (depreciation) on AFS securities 3,566 (2,665) 2,718 (1,400) 1,855
Total stockholders' equity 1,071,984 1,076,855 1,045,441 1,025,105 1,013,737
Total liabilities and stockholders' equity$ 7,536,953 $ 7,559,658 $ 7,559,694 $ 7,614,358 $ 7,815,800

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) 2016 2015 2015 2015 2015
($ in thousands)
ASSETS
Cash and non-interest bearing balances due from banks$ 109,288 $ 103,204 $ 94,695 $ 69,137 $ 59,711
Interest bearing balances due from banks 154,755 232,446 206,467 308,756 371,195
Federal funds sold 1,839 1,930 19,086 75,922 56,846
Cash and cash equivalents 265,882 337,580 320,248 453,815 487,752
Interest bearing balances due from banks - time 12,626 15,484 20,251 26,817 8,611
Investment securities - held-to-maturity 691,170 733,349 728,437 922,877 915,405
Investment securities - available-for-sale 815,502 773,550 838,596 732,949 370,102
Mortgage loans held for sale 26,616 21,294 26,379 37,656 14,655
Assets held in trading accounts 5,196 6,150 6,401 6,592 6,782
Loans:
Legacy loans 3,324,549 2,898,987 2,725,254 2,363,305 2,084,551
Allowance for loan losses (31,992) (31,521) (31,709) (31,275) (30,072)
Loans acquired, not covered by FDIC loss share
(net of discount and allowance) 1,565,136 1,969,296 2,020,236 2,228,841 1,197,601
Loans acquired, covered by FDIC loss share
(net of discount and allowance) - - 89,578 97,795 104,701
Net loans 4,857,693 4,836,762 4,803,359 4,658,666 3,356,781
FDIC indemnification asset - - 10,838 15,448 21,515
Premises and equipment 193,543 192,414 191,107 200,875 150,564
Premises held for sale 1,414 923 5,775 6,131 6,126
Foreclosed assets not covered by FDIC loss share 43,815 46,860 40,273 42,994 44,059
Foreclosed assets covered by FDIC loss share - - 12,345 12,313 11,902
Interest receivable 23,736 25,999 24,403 23,260 19,181
Bank owned life insurance 131,895 128,339 118,489 117,662 91,760
Goodwill 327,677 320,216 314,282 314,060 175,901
Other intangible assets 52,498 44,302 45,712 47,302 31,102
Other assets 49,922 67,347 100,872 76,275 58,536
Total assets$ 7,499,185 $ 7,550,569 $ 7,607,767 $ 7,695,692 $ 5,770,734
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts$ 1,225,311 $ 1,295,713 $ 1,121,078 $ 1,088,474 $ 946,979
Interest bearing transaction accounts and savings deposits 3,484,571 3,442,857 3,600,930 3,621,060 2,601,046
Time deposits less than $100,000 685,382 689,368 694,872 739,748 573,867
Time deposits greater than $100,000 618,232 649,048 703,056 748,460 580,625
Total deposits 6,013,496 6,076,986 6,119,936 6,197,742 4,702,517
Federal funds purchased and securities sold
under agreements to repurchase 113,551 108,389 109,311 116,258 121,568
Other borrowings 184,000 167,167 197,832 179,080 183,953
Subordinated debentures 60,109 61,697 61,851 62,981 35,686
Accrued interest and other liabilities 53,240 73,768 74,696 70,312 43,825
Total liabilities 6,424,396 6,488,007 6,563,626 6,626,373 5,087,549
Stockholders' equity:
Preferred stock 9,493 30,852 30,852 30,885 10,970
Common stock 303 301 299 299 223
Surplus 664,926 651,824 641,738 640,172 328,830
Undivided profits 398,808 379,064 371,291 396,609 343,973
Accumulated other comprehensive income (loss):
Unrealized appreciation (depreciation) on AFS securities 1,259 521 (39) 1,354 (811)
Total stockholders' equity 1,074,789 1,062,562 1,044,141 1,069,319 683,185
Total liabilities and stockholders' equity$ 7,499,185 $ 7,550,569 $ 7,607,767 $ 7,695,692 $ 5,770,734

Simmons First National Corporation SFNC
Consolidated Statements of Income - Quarter-to-Date
For the Quarters Ended Mar 31Dec 31Sep 30Jun 30Mar 31
(Unaudited) 2016 2015 2015 2015 2015
($ in thousands, except per share data)
INTEREST INCOME
Loans$66,678 $70,511 $76,432 $70,438 $50,986
Federal funds sold 10 10 15 73 29
Investment securities 8,506 8,350 8,335 8,050 5,879
Mortgage loans held for sale 278 237 291 375 148
Assets held in trading accounts 6 6 4 4 3
Interest bearing balances due from banks 144 225 122 229 210
TOTAL INTEREST INCOME 75,622 79,339 85,199 79,169 57,255
INTEREST EXPENSE
Time deposits 1,636 1,858 1,936 2,064 1,596
Other deposits 2,018 2,105 2,222 2,131 1,348
Federal funds purchased and securities
sold under agreements to repurchase 65 60 55 57 64
Other borrowings 1,128 1,084 1,812 1,151 1,051
Subordinated debentures 543 481 498 559 234
TOTAL INTEREST EXPENSE 5,390 5,588 6,523 5,962 4,293
NET INTEREST INCOME 70,232 73,751 78,676 73,207 52,962
Provision for loan losses 2,823 3,230 1,615 3,006 1,171
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 67,409 70,521 77,061 70,201 51,791
NON-INTEREST INCOME
Trust income 3,631 2,725 2,215 2,070 2,251
Service charges on deposit accounts 7,316 8,104 8,488 8,031 6,363
Other service charges and fees 1,909 1,654 2,672 2,766 1,666
Mortgage lending income 3,792 2,298 3,446 3,449 2,262
Investment banking income 687 784 663 593 894
Debit and credit card fees 7,200 7,647 6,879 6,486 5,648
Bank owned life insurance income 997 614 748 746 572
Gain on sale of securities, net 329 305 40 - (38)
Net (loss) gain on assets covered by FDIC loss-share agreements - - (9,085) (3,056) (2,671)
Other income 3,642 4,518 7,006 3,863 1,390
TOTAL NON-INTEREST INCOME 29,503 28,649 23,072 24,948 18,337
NON-INTEREST EXPENSE
Salaries and employee benefits 34,773 39,523 37,000 35,111 26,610
Occupancy expense, net 4,471 3,418 4,812 5,051 3,557
Furniture and equipment expense 3,947 3,731 4,202 3,241 3,268
Other real estate and foreclosure expense 966 1,167 2,297 1,017 381
Deposit insurance 1,148 1,222 1,013 1,096 870
Merger-related costs 93 1,237 857 1,247 10,419
Other operating expenses 16,391 17,508 17,314 18,041 12,106
TOTAL NON-INTEREST EXPENSE 61,789 67,806 67,495 64,804 57,211
NET INCOME BEFORE INCOME TAXES 35,123 31,364 32,638 30,345 12,917
Provision for income taxes 11,618 7,505 10,963 10,250 4,182
NET INCOME 23,505 23,859 21,675 20,095 8,735
Preferred stock dividends 24 77 77 77 26
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 23,481 $ 23,782 $ 21,598 $ 20,018 $ 8,709
BASIC EARNINGS PER SHARE $ 0.77 $ 0.79 $ 0.72 $ 0.67 $ 0.39
DILUTED EARNINGS PER SHARE $ 0.77 $ 0.78 $ 0.72 $ 0.67 $ 0.39

Simmons First National Corporation SFNC
Consolidated Core Earnings - Quarter-to-Date (non-GAAP)
For the Quarters Ended Mar 31Dec 31Sep 30Jun 30Mar 31
(Unaudited) 2016 2015 2015 2015 2015
($ in thousands, except per share data)
INTEREST INCOME
Loans$66,678 $70,511 $76,432 $70,438 $50,986
Federal funds sold 10 10 15 73 29
Investment securities 8,506 8,350 8,335 8,050 5,879
Mortgage loans held for sale 278 237 291 375 148
Assets held in trading accounts 6 6 4 4 3
Interest bearing balances due from banks 144 225 122 229 210
TOTAL INTEREST INCOME 75,622 79,339 85,199 79,169 57,255
INTEREST EXPENSE
Time deposits 1,636 1,858 1,936 2,064 1,596
Other deposits 2,018 2,105 2,222 2,131 1,348
Federal funds purchased and securities
sold under agreements to repurchase 65 60 55 57 64
Other borrowings 1,128 1,084 1,812 1,151 1,051
Subordinated debentures 543 481 498 559 234
TOTAL INTEREST EXPENSE 5,390 5,588 6,523 5,962 4,293
NET INTEREST INCOME 70,232 73,751 78,676 73,207 52,962
Provision for loan losses 2,823 3,230 1,615 3,006 1,171
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 67,409 70,521 77,061 70,201 51,791
NON-INTEREST INCOME
Trust income 3,631 2,725 2,215 2,070 2,251
Service charges on deposit accounts 7,316 8,104 8,488 8,031 6,363
Other service charges and fees 1,909 1,654 2,672 2,766 1,666
Mortgage lending income 3,792 2,298 3,446 3,449 2,262
Investment banking income 687 784 663 593 894
Debit and credit card fees 7,200 7,647 6,879 6,486 5,648
Bank owned life insurance income 997 614 748 746 572
Gain on sale of securities, net 329 305 40 - (38)
Net (loss) gain on assets covered by FDIC loss-share agreements - - (1,609) (3,056) (2,671)
Other income 3,048 4,518 4,737 4,396 1,381
TOTAL NON-INTEREST INCOME 28,909 28,649 28,279 25,481 18,328
NON-INTEREST EXPENSE
Salaries and employee benefits 34,773 37,314 36,919 34,960 26,610
Occupancy expense, net 4,461 3,358 4,680 5,013 3,523
Furniture and equipment expense 3,947 3,731 4,172 3,209 3,268
Other real estate and foreclosure expense 966 1,167 2,297 1,017 381
Deposit insurance 1,148 1,222 1,013 1,096 870
Other operating expenses 16,387 17,508 17,094 16,050 12,097
TOTAL NON-INTEREST EXPENSE 61,682 64,300 66,175 61,345 46,749
CORE EARNINGS BEFORE INCOME TAXES (non-GAAP) 34,636 34,870 39,165 34,337 23,370
Provision for income taxes 11,427 8,880 13,523 11,816 7,644
CORE EARNINGS (non-GAAP) 23,209 25,990 25,642 22,521 15,726
Preferred stock dividends 24 77 77 77 26
CORE EARNINGS AVAILABLE TO COMMON S/H (non-GAAP) $23,185 $25,913 $25,565 $22,444 $15,700
BASIC CORE EARNINGS PER SHARE (non-GAAP) $0.76 $0.86 $0.85 $0.75 $0.71
DILUTED CORE EARNINGS PER SHARE (non-GAAP) $0.76 $0.86 $0.85 $0.75 $0.70

Simmons First National Corporation SFNC
Consolidated Risk-Based Capital
For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Unaudited) 2016 2015 2015 2015 2015
($ in thousands)
Tier 1 capital
Stockholders' equity$ 1,071,984 $ 1,076,855 $ 1,045,441 $ 1,025,105 $ 1,013,737
Trust preferred securities, net allowable 60,077 60,570 61,906 61,794 61,410
Disallowed intangible assets, net of deferred tax (335,166) (331,931) (314,735) (342,590) (344,140)
Unrealized loss (gain) on AFS securities (3,566) 2,665 (2,718) 1,400 (1,855)
Other - - - (10,297) (4,789)
Total Tier 1 capital 793,329 808,159 789,894 735,412 724,363
Tier 2 capital
Qualifying unrealized gain on AFS equity securities - - - - -
Qualifying allowance for loan losses and
reserve for unfunded commitments 36,398 35,068 34,097 34,284 32,600
Total Tier 2 capital 36,398 35,068 34,097 34,284 32,600
Total risk-based capital$ 829,727 $ 843,227 $ 823,991 $ 769,696 $ 756,963
Common equity
Tier 1 capital$ 793,329 $ 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 (60,077) (60,570) (61,906) (61,794) (61,410)
Total common equity$ 733,252 $ 716,737 $ 697,136 $ 642,766 $ 632,101
Risk weighted assets$ 5,293,395 $ 5,044,453 $ 4,986,641 $ 4,714,852 $ 4,659,065
Adjusted average assets for leverage ratio$ 7,167,839 $ 7,218,559 $ 7,293,113 $ 7,350,900 $ 5,428,706
Ratios at end of quarter
Equity to assets 14.22% 14.24% 13.83% 13.46% 12.97%
Tangible common equity to tangible assets 9.68% 9.26% 9.10% 8.73% 8.32%
Common equity Tier 1 ratio (CET1) 13.85% 14.21% 13.98% 13.63% 13.57%
Tier 1 leverage ratio 11.07% 11.20% 10.83% 10.00% 13.34%
Tier 1 risk-based capital ratio 14.99% 16.02% 15.84% 15.60% 15.55%
Total risk-based capital ratio 15.67% 16.72% 16.52% 16.32% 16.25%

Simmons First National Corporation SFNC
Consolidated Loans and Investments
For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Unaudited) 2016 2015 2015 2015 2015
($ in thousands)
Legacy Loan Portfolio - End of Period (1)
Consumer
Credit cards$ 167,803 $ 177,288 $ 171,701 $ 174,074 $ 171,413
Other consumer 227,480 208,380 182,472 160,828 107,486
Total consumer 395,283 385,668 354,173 334,902 278,899
Real Estate
Construction 300,042 279,740 253,761 199,707 178,929
Single-family residential 746,754 696,180 623,089 662,954 507,351
Other commercial 1,327,372 1,229,072 1,037,559 878,109 716,021
Total real estate 2,374,168 2,204,992 1,914,409 1,740,770 1,402,301
Commercial
Commercial 551,695 500,116 394,422 388,869 324,815
Agricultural 143,033 148,563 170,257 141,502 105,228
Total commercial 694,728 648,679 564,679 530,371 430,043
Other 8,512 7,115 6,017 5,186 4,137
Total Loans$ 3,472,691 $ 3,246,454 $ 2,839,278 $ 2,611,229 $ 2,115,380
(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$ 223,484 $ 237,139 $ 285,071 $ 361,744 $ 390,625
Mortgage-backed securities 23,734 24,774 25,913 27,146 28,535
State and political subdivisions 424,586 440,676 464,245 471,631 482,316
Other securities 2,698 2,784 1,065 1,075 947
Total held-to-maturity 674,502 705,373 776,294 861,596 902,423
Available-for-Sale
U.S. Treasury$ 4,302 $ 3,994 $ 4,008 $ 4,005 $ 4,008
U.S. Government agencies 78,308 120,237 153,576 236,003 346,315
Mortgage-backed securities 722,982 647,425 502,344 464,857 312,011
State and political subdivisions 11,260 9,874 10,976 10,971 13,452
FHLB stock 7,838 7,823 14,275 13,619 15,256
Other securities 32,983 32,054 18,168 18,246 16,341
Total available-for-sale 857,673 821,407 703,347 747,701 707,383
Total investment securities$ 1,532,175 $ 1,526,780 $ 1,479,641 $ 1,609,297 $ 1,609,806
Fair value - HTM investment securities$ 686,835 $ 713,371 $ 785,030 $ 863,349 $ 913,037
Investment Securities - QTD Average
Taxable securities$ 1,067,302 $ 1,043,268 $ 1,088,597 $ 1,163,708 $ 893,946
Tax exempt securities 439,370 463,631 478,436 492,118 391,561
Total investment securities - QTD average$ 1,506,672 $ 1,506,899 $ 1,567,033 $ 1,655,826 $ 1,285,507

Simmons First National Corporation SFNC
Consolidated Loans and Credit Coverage
For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Unaudited) 2016 2015 2015 2015 2015
($ in thousands)
LOANS
Legacy loans$ 3,472,691 $ 3,246,454 $ 2,839,278 $ 2,611,229 $ 2,115,380
Allowance for loan losses (legacy loans) (32,681) (31,351) (30,380) (30,567) (29,183)
Legacy loans (net of allowance) 3,440,010 3,215,103 2,808,898 2,580,662 2,086,197
Loans acquired, not covered by FDIC loss share 1,503,482 1,729,557 2,085,211 2,171,388 2,491,316
Credit discount (45,158) (55,702) (70,441) (63,082) (72,876)
Allowance for loan losses (loans acquired, not covered) (954) (954) (954) - -
Loans acquired, not covered (net of discount and allowance) 1,457,370 1,672,901 2,013,816 2,108,306 2,418,440
Loans acquired, covered by FDIC loss share - - - 114,296 126,629
Credit discount - - - (20,221) (23,207)
Allowance for loan losses (acquired covered loans) - - - (954) (954)
Loans acquired, covered (net of discount and allowance) - - - 93,121 102,468
Net loans$ 4,897,380 $ 4,888,004 $ 4,822,714 $ 4,782,089 $ 4,607,105
Loan Coverage Ratios
Allowance for loan losses to legacy loans 0.94% 0.97% 1.07% 1.17% 1.38%
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) 3.07% 3.28% 3.42% 3.69% 3.71%
Total allowance and credit coverage (non-GAAP) 1.58% 1.77% 2.07% 2.34% 2.67%

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) 2016 2015 2015 2015 2015
($ in thousands)
Allowance for Loan Losses (Legacy Loans)
Balance, beginning of quarter$ 31,351 $ 30,380 $ 30,567 $ 29,183 $ 29,028
Loans charged off
Credit cards 859 757 763 802 785
Other consumer 393 489 597 366 220
Real estate 229 845 109 333 293
Commercial 476 654 516 - 245
Total loans charged off 1,957 2,745 1,985 1,501 1,543
Recoveries of loans previously charged off
Credit cards 242 223 213 241 213
Other consumer 103 140 78 187 133
Real estate 112 120 25 46 12
Commercial 7 3 - 9 169
Total recoveries 464 486 316 483 527
Net loans charged off 1,493 2,259 1,669 1,018 1,016
Provision for loan losses 2,823 3,230 1,482 2,402 1,171
Balance, end of quarter$ 32,681 $ 31,351 $ 30,380 $ 30,567 $ 29,183
Non-performing assets (1) (2)
Non-performing loans
Nonaccrual loans 34,244 17,714 15,305 15,565 14,511
Loans past due 90 days or more 881 1,191 1,506 1,375 498
Total non-performing loans 35,125 18,905 16,811 16,940 15,009
Other non-performing assets
Foreclosed assets held for sale, not covered 41,126 44,820 48,073 42,666 50,723
Other non-performing assets 256 211 172 242 215
Total other non-performing assets 41,382 45,031 48,245 42,908 50,938
Total non-performing assets$ 76,507 $ 63,936 $ 65,056 $ 59,848 $ 65,947
Performing TDRs (troubled debt restructurings)$ 10,759 $ 3,031 $ 1,955 $ 1,959 $ 2,227
Ratios (1) (2)
Allowance for loan losses to total loans 0.94% 0.97% 1.07% 1.17% 1.38%
Allowance for loan losses to non-performing loans 93% 166% 181% 180% 194%
Non-performing loans to total loans 1.01% 0.58% 0.59% 0.65% 0.71%
Non-performing assets (including performing TDRs)
to total assets 1.16% 0.89% 0.89% 0.81% 0.87%
Non-performing assets to total assets 1.02% 0.85% 0.86% 0.79% 0.84%
Annualized net charge offs to total loans 0.18% 0.31% 0.24% 0.17% 0.20%
Annualized net credit card charge offs to
total credit card loans 1.46% 1.22% 1.26% 1.31% 1.32%
Annualized net charge offs to total loans
(excluding credit cards) 0.11% 0.25% 0.17% 0.08% 0.09%
(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) 2016 2015 2015 2015 2015
ASSETS
Earning Assets
Interest bearing balances due from banks 0.35% 0.36% 0.23% 0.30% 0.23%
Investment securities 2.82% 2.77% 2.65% 2.50% 2.44%
Mortgage loans held for sale 4.20% 4.42% 4.38% 3.99% 4.10%
Assets held in trading accounts 0.46% 0.39% 0.25% 0.24% 0.18%
Loans, including acquired loans 5.49% 5.75% 6.27% 6.03% 6.11%
Total interest earning assets 4.74% 4.86% 5.20% 4.82% 4.68%
LIABILITIES
Interest bearing liabilities
Interest bearing transaction and
savings accounts 0.23% 0.24% 0.24% 0.24% 0.21%
Time deposits 0.50% 0.55% 0.55% 0.56% 0.56%
Total interest bearing deposits 0.31% 0.33% 0.33% 0.33% 0.32%
Federal funds purchased and securities
sold under agreement to repurchase 0.23% 0.22% 0.20% 0.20% 0.21%
Other borrowings 2.47% 2.57% 3.63% 2.58% 2.32%
Subordinated debentures 3.63% 3.09% 3.19% 3.56% 2.66%
Total interest bearing liabilities 0.42% 0.43% 0.48% 0.44% 0.42%
NET INTEREST MARGIN/SPREAD
Net interest spread 4.32% 4.43% 4.72% 4.38% 4.26%
Net interest margin - quarter-to-date 4.41% 4.53% 4.82% 4.47% 4.34%
Net interest margin - year-to-date 4.41% 4.55% 4.58% 4.42% 4.34%

Simmons First National Corporation SFNC
Consolidated - Selected Financial Data
For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Unaudited) 2016 2015 2015 2015 2015
($ in thousands, except share data)
QUARTER-TO-DATE
Financial Highlights - Core (non-GAAP)
Core earnings (excludes nonrecurring items) (1)$ 23,185 $ 25,913 $ 25,565 $ 22,444 $ 15,700
Diluted core earnings per share (1) 0.76 0.86 0.85 0.75 0.70
Core net interest margin (FTE) (2) 3.92% 3.87% 3.93% 3.87% 3.55%
Core efficiency ratio (1) 58.73% 59.26% 57.40% 58.36% 62.13%
Core return on average assets (1) 1.24% 1.36% 1.33% 1.17% 1.10%
Core return on average common equity (1) 8.75% 9.96% 10.01% 8.67% 9.47%
Core return on tangible common equity (1) 14.13% 15.89% 15.99% 13.80% 14.16%
Financial Highlights - GAAP
Net Income$ 23,481 $ 23,782 $ 21,598 $ 20,018 $ 8,709
Diluted earnings per share 0.77 0.78 0.72 0.67 0.39
Return on average assets 1.26% 1.25% 1.13% 1.04% 0.61%
Return on average common equity 8.87% 9.15% 8.46% 7.73% 5.25%
Return on tangible common equity 14.30% 14.62% 13.58% 12.36% 8.07%
Net interest margin (FTE) 4.41% 4.53% 4.82% 4.47% 4.34%
FTE adjustment 2,084 2,185 2,172 2,303 1,857
Amortization of intangibles 1,455 1,337 1,265 1,388 899
Amortization of intangibles, net of taxes 884 813 769 844 546
Average earning assets 6,597,389 6,652,486 6,660,434 6,774,693 5,121,838
Average interest bearing liabilities 5,145,845 5,118,526 5,367,852 5,467,587 4,096,745
Average diluted shares outstanding 30,481,604 30,301,190 30,046,062 29,987,471 22,350,272
Cash dividends declared per common share 0.24 0.23 0.23 0.23 0.23
YEAR-TO-DATE
Financial Highlights - Core (non-GAAP)
Core earnings (excludes nonrecurring items) (1)$ 23,185 $ 89,622 $ 63,709 $ 38,144 $ 15,700
Diluted core earnings per share (1) 0.76 3.18 2.32 1.46 0.70
Core net interest margin (FTE) (2) 3.92% 3.82% 3.82% 3.74% 3.55%
Core efficiency ratio (1) 58.73% 59.01% 58.91% 59.94% 62.13%
Core return on average assets (1) 1.24% 1.25% 1.21% 1.14% 1.10%
Core return on average common equity (1) 8.75% 9.55% 9.39% 8.99% 9.47%
Core return on tangible common equity (1) 14.13% 15.05% 14.73% 13.96% 14.16%
Financial Highlights - GAAP
Net Income$ 23,481 $ 74,107 $ 50,325 $ 28,727 $ 8,709
Diluted earnings per share 0.77 2.63 1.83 1.10 0.39
Return on average assets 1.26% 1.03% 0.96% 0.86% 0.61%
Return on average common equity 8.87% 7.90% 7.41% 6.77% 5.25%
Return on tangible common equity 14.30% 12.53% 11.73% 10.63% 8.07%
Net interest margin (FTE) 4.41% 4.55% 4.58% 4.42% 4.34%
FTE adjustment 2,084 8,517 6,332 4,160 1,857
Amortization of intangibles 1,455 4,889 3,552 2,287 899
Amortization of intangibles, net of taxes 884 2,972 2,159 1,390 546
Average earning assets 6,597,389 6,305,966 6,170,521 5,948,265 5,121,838
Average interest bearing liabilities 5,145,845 5,000,858 4,977,397 4,782,167 4,096,745
Average diluted shares outstanding 30,481,604 28,209,661 27,497,813 26,203,942 22,350,272
Cash dividends declared per common share 0.24 0.92 0.69 0.46 0.23
END OF PERIOD
Book value per share$ 35.35 $ 34.55 $ 33.89 $ 33.26 $ 32.93
Tangible book value per share 22.84 21.97 21.89 21.19 20.79
Shares outstanding 30,324,499 30,278,432 29,939,698 29,894,903 29,850,034
Full-time equivalent employees 1,931 1,946 1,967 2,043 2,076
Total number of ATM's 185 182 183 186 179
Total number of financial centers 149 149 149 152 164
(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 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Unaudited) 2016 2015 2015 2015 2015
($ in thousands, except per share data)
QUARTER-TO-DATE
Net Income$ 23,481 $ 23,782 $ 21,598 $ 20,018 $ 8,709
Nonrecurring items
Accelerated vesting on retirement agreements - 2,209 - - -
Gain on sale of banking operations - - (2,110) - -
Gain from early retirement of trust preferred securities (594) - - - -
Loss on FDIC loss-share termination - - 7,476 - -
Merger-related costs 93 1,237 857 1,247 10,419
Branch right-sizing 14 60 304 2,745 35
Tax effect (1) 191 (1,375) (2,560) (1,566) (3,463)
Net nonrecurring items (296) 2,131 3,967 2,426 6,991
Core earnings (non-GAAP)$ 23,185 $ 25,913 $ 25,565 $ 22,444 $ 15,700
Diluted earnings per share$ 0.77 $ 0.78 $ 0.72 $ 0.67 $ 0.39
Nonrecurring items
Accelerated vesting on retirement agreements - 0.08 - - -
Gain on sale of banking operations - - (0.07) - -
Gain from early retirement of trust preferred securities (0.02) - - - -
Loss on FDIC loss-share termination - - 0.25 - -
Merger-related costs - 0.05 0.03 0.04 0.47
Branch right-sizing - - 0.01 0.09 -
Tax effect (1) 0.01 (0.05) (0.09) (0.05) (0.16)
Net nonrecurring items (0.01) 0.08 0.13 0.08 0.31
Core earnings (non-GAAP)$ 0.76 $ 0.86 $ 0.85 $ 0.75 $ 0.70
YEAR-TO-DATE
Net Income$ 23,481 $ 74,107 $ 50,325 $ 28,727 $ 8,709
Nonrecurring items
Accelerated vesting on retirement agreements - 2,209 - - -
Gain on sale of banking operations - (2,110) (2,110) - -
Gain from early retirement of trust preferred securities (594) - - - -
Loss on FDIC loss-share termination - 7,476 7,476 - -
Merger-related costs 93 13,760 12,523 11,666 10,419
Branch right-sizing 14 3,144 3,084 2,780 35
Tax effect (1) 191 (8,964) (7,589) (5,029) (3,463)
Net nonrecurring items (296) 15,515 13,384 9,417 6,991
Core earnings (non-GAAP)$ 23,185 $ 89,622 $ 63,709 $ 38,144 $ 15,700
Diluted earnings per share$ 0.77 $ 2.63 $ 1.83 $ 1.10 $ 0.39
Nonrecurring items
Accelerated vesting on retirement agreements - 0.08 - - -
Gain on sale of banking operations - (0.07) (0.07) - -
Gain from early retirement of trust preferred securities (0.02) - - - -
Loss on FDIC loss-share termination - 0.27 0.27 - -
Merger-related costs - 0.49 0.46 0.45 0.47
Branch right-sizing - 0.11 0.11 0.11 -
Tax effect (1) 0.01 (0.33) (0.28) (0.20) (0.16)
Net nonrecurring items (0.01) 0.55 0.49 0.36 0.31
Core earnings (non-GAAP)$ 0.76 $ 3.18 $ 2.32 $ 1.46 $ 0.70
(1) Effective tax rate of 39.225%, adjusted for non-deductible merger-related costs.


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

Source:Simmons First National Corporation