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Simmons Reports Second Quarter Net Income of $22.9 Million, or $0.75 per share

PINE BLUFF, Ark., July 20, 2016 (GLOBE NEWSWIRE) -- Simmons First National Corporation (NASDAQ:SFNC) today announced net income available to common shareholders of $22.9 million for the second quarter of 2016, an increase of $2.9 million, or 14.4 percent, compared with the same quarter last year. Diluted earnings per share were $0.75, an increase of $0.08, or 11.9 percent.

Included in second quarter 2016 results were $2.2 million of after-tax expenses related to noncore items. Excluding the impact of these items, core earnings were $25.1 million for the second quarter of 2016, an increase of $2.6 million, or 11.8 percent, compared with the same quarter last year. Diluted core earnings per share were $0.82, an increase of $0.07, or 9.3 percent.

Year-to-date net income was $46.4 million, an increase of $17.7 million, or 61.5 percent, compared with the same period of 2015. Year-to-date diluted earnings per share was $1.52, an increase of $0.42, or 38.2 percent. Year-to-date core earnings were $48.3 million, or $1.59 diluted core earnings per share.

“We are pleased with the results from the second quarter as we continue to absorb the acquisitions from the previous two years. Competitive pressures and artificially low interest rates continue to put pressure on our net interest income but we have done a good job of diversifying our revenue through other lines of business such as our trust operations, mortgage lending, credit card services, and other wealth management offerings. We will continue to focus on improving our efficiency throughout the remainder of the year,” said George A. Makris, Jr., chairman and CEO. “We also look forward to the completion of the merger with Citizens Bank in Athens, Tenn. later this year and the opportunity to welcome them to the Simmons family.”

Loans

Total loans, including those acquired, were $5.0 billion at June 30, 2016, an increase of $201 million, or 4.2 percent, compared with the same period in 2015. Legacy loans (all loans excluding acquired loans) grew $1.1 billion, or 42.7 percent. On a linked quarter basis, total loan growth was $83.8 million.

Deposits

At June 30, 2016, total deposits were $6.0 billion, a decrease of $142 million, or 2.3 percent, compared with the same period in 2015. Total non-time deposits were $4.8 billion, an increase of $100 million, or 2.1 percent, and comprised 80% of total deposits.

Net Interest Income

The company’s net interest income for the second quarter of 2016 was $66.6 million, a decrease of $6.6 million, or 9.0 percent, from the same period of 2015. This decrease was primarily driven by a $5.4 million decline in yield accretion on acquired loans. Included in interest income was the yield accretion recognized on acquired loans of $4.7 million and $10.1 million for the second quarter of 2016 and 2015, respectively. Net interest margin was 4.17 percent for the quarter ended June 30, 2016, a 30 basis-point decline from the same quarter of 2015. The company’s core net interest margin, excluding the accretion, was 3.88 percent for the second quarter of 2016, a 1 basis-point increase from the same quarter of 2015.

Non-Interest Income

Non-interest income for the second quarter was $36.9 million, an increase of $11.9 million compared with the second quarter of 2015. The increase in non-interest income was primarily due to gains recorded on the sale of securities that totaled $3.4 million as part of the bond portfolio rebalancing strategy.

The elimination of indemnification asset amortization due to the company’s 2015 termination of loss-sharing agreements with the FDIC resulted in a decrease of $3.1 million in losses on FDIC-covered assets in the second quarter compared with the same period in 2015. The remaining increase in non-interest income was due to additional mortgage lending, trust income and investment banking revenue.

Non-Interest Expense

Non-interest expense for the second quarter of 2016 was $64.1 million, a decrease of $667,000 compared with the second quarter of 2015. Included in the quarter were $372,000 of merger-related expenses and $3.2 million of branch right-sizing expenses related to the closure of ten underperforming branches during the second quarter of 2016.

Salaries and benefits decreased by $2.0 million to $33.1 million in the current quarter of 2016, compared with $35.1 million in the same quarter of 2015. This decrease of 5.7% is a result of the company’s ongoing efficiency initiatives around expense control. This decrease was partially offset by an increase of $836,000 in furniture and equipment expense primarily related to maintenance contracts and equipment rent.

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 June 30, 2016, the allowance for loan losses for legacy loans was $33.5 million. The company's allowance for loan losses on legacy loans at June 30, 2016 was 0.90 percent of total loans and 77 percent of non-performing loans. In the legacy portfolio, non-performing loans as a percent of total loans were 1.17 percent.

The allowance for loan losses for acquired loans was $1.0 million and the acquired loan discount credit mark was $38.3 million. The allowances for loan losses and credit marks provide a total of $72.8 million of coverage, which equates to a total coverage ratio of 1.4 percent of gross loans. The ratio of credit mark and related allowance to acquired loans was 3.0 percent.

The 2016 year-to-date net charge-off ratio, excluding credit cards, was 24 basis points, and the year-to-date credit card charge-off ratio was 1.25 percent.

Capital

At June 30, 2016, common stockholders' equity was $1.1 billion, book value per share was $35.86 and tangible book value per share was $23.43. The company's ratio of stockholders' equity to total assets was 14.48 percent and its ratio of tangible common equity to tangible assets was 10.0 percent.

Simmons First National Corporation

Simmons First National Corporation is a financial holding company headquartered in Pine Bluff, Arkansas, with total assets of $7.5 billion. The company conducts financial operations in Arkansas, Kansas, Missouri and Tennessee. The company’s wholly owned subsidiary, Simmons Bank, offers comprehensive financial solutions delivered with client-centric approach. 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 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 42603491. 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. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

Forward-Looking Statements

Statements in this news release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any forward-looking statement speaks only as of the date of this news release, and we undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors, including, but not limited to, economic conditions, credit quality, interest rates, loan demand 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) 2016 2016 2015 2015 2015
($ in thousands)
ASSETS
Cash and non-interest bearing balances due from banks$ 96,037 $ 118,468 $ 97,656 $ 106,678 $ 69,770
Interest bearing balances due from banks 151,570 100,593 154,606 284,645 173,130
Federal funds sold 3,000 4,000 - 9,675 49,570
Cash and cash equivalents 250,607 223,061 252,262 400,998 292,470
Interest bearing balances due from banks - time 9,781 11,188 14,107 16,504 24,189
Investment securities - held-to-maturity 632,154 674,502 705,373 776,294 861,596
Investment securities - available-for-sale 821,372 857,673 821,407 703,347 747,701
Mortgage loans held for sale 30,529 24,563 30,265 15,556 48,094
Assets held in trading accounts 7,321 7,074 4,422 6,292 6,481
Loans:
Legacy loans 3,725,422 3,472,691 3,246,454 2,839,278 2,611,229
Allowance for loan losses (33,523) (32,681) (31,351) (30,380) (30,567)
Loans acquired, not covered by FDIC loss share
(net of discount and allowance) 1,288,435 1,457,370 1,672,901 2,013,816 2,108,306
Loans acquired, covered by FDIC loss share
(net of discount and allowance) - - - - 93,121
Net loans 4,980,334 4,897,380 4,888,004 4,822,714 4,782,089
FDIC indemnification asset - - - - 13,020
Premises and equipment 183,362 192,327 193,618 190,182 191,335
Premises held for sale 6,167 2,364 923 923 6,587
Foreclosed assets not covered by FDIC loss share 30,529 41,126 44,820 48,073 42,666
Foreclosed assets covered by FDIC loss share - - - - 12,833
Interest receivable 24,150 23,545 25,793 26,873 24,129
Bank owned life insurance 130,943 130,092 131,536 118,922 118,073
Goodwill 327,686 327,686 327,686 314,344 314,344
Other intangible assets 50,329 51,783 53,237 44,904 46,605
Other assets 48,955 72,589 66,205 73,768 82,146
Total assets$ 7,534,219 $ 7,536,953 $ 7,559,658 $ 7,559,694 $ 7,614,358
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts$ 1,283,426 $ 1,274,816 $ 1,280,234 $ 1,212,724 $ 1,141,285
Interest bearing transaction accounts and savings deposits 3,538,808 3,524,808 3,485,845 3,521,840 3,581,049
Time deposits less than $100,000 643,081 674,915 694,262 673,651 719,606
Time deposits greater than $100,000 562,888 605,236 625,755 681,585 728,082
Total deposits 6,028,203 6,079,775 6,086,096 6,089,800 6,170,022
Federal funds purchased and securities sold
under agreements to repurchase 103,038 97,429 99,398 110,437 111,792
Other borrowings 191,827 176,829 162,289 173,426 171,321
Subordinated debentures 60,184 60,077 60,570 61,906 61,794
Accrued interest and other liabilities 60,256 50,859 74,450 78,684 74,324
Total liabilities 6,443,508 6,464,969 6,482,803 6,514,253 6,589,253
Stockholders' equity:
Preferred stock - - 30,852 30,852 30,852
Common stock 304 303 303 299 299
Surplus 668,306 665,850 662,378 642,400 640,895
Undivided profits 417,863 402,265 385,987 369,172 354,459
Accumulated other comprehensive income (loss):
Unrealized appreciation (depreciation) on AFS securities 4,238 3,566 (2,665) 2,718 (1,400)
Total stockholders' equity 1,090,711 1,071,984 1,076,855 1,045,441 1,025,105
Total liabilities and stockholders' equity$7,534,219 $7,536,953 $7,559,658 $7,559,694 $7,614,358

Simmons First National Corporation SFNC
Consolidated Statements of Income - Quarter-to-Date
For the Quarters Ended Jun 30Mar 31Dec 31Sep 30Jun 30
(Unaudited) 2016 2016 2015 2015 2015
($ in thousands, except per share data)
INTEREST INCOME
Loans$ 63,009 $ 66,678 $ 70,511 $ 76,432 $ 70,438
Federal funds sold 17 10 10 15 73
Investment securities 8,499 8,506 8,350 8,335 8,050
Mortgage loans held for sale 295 278 237 291 375
Assets held in trading accounts 3 6 6 4 4
Interest bearing balances due from banks 77 144 225 122 229
TOTAL INTEREST INCOME 71,900 75,622 79,339 85,199 79,169
INTEREST EXPENSE
Time deposits 1,741 1,636 1,858 1,936 2,064
Other deposits 2,035 2,018 2,105 2,222 2,131
Federal funds purchased and securities
sold under agreements to repurchase 59 65 60 55 57
Other borrowings 938 1,128 1,084 1,812 1,151
Subordinated debentures 544 543 481 498 559
TOTAL INTEREST EXPENSE 5,317 5,390 5,588 6,523 5,962
NET INTEREST INCOME 66,583 70,232 73,751 78,676 73,207
Provision for loan losses 4,616 2,823 3,230 1,615 3,006
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 61,967 67,409 70,521 77,061 70,201
NON-INTEREST INCOME
Trust income 3,656 3,631 2,725 2,215 2,070
Service charges on deposit accounts 7,661 7,316 8,104 8,488 8,031
Other service charges and fees 1,571 1,909 1,654 2,672 2,766
Mortgage lending income 5,877 3,792 2,298 3,446 3,449
Investment banking income 1,181 687 784 663 593
Debit and credit card fees 7,688 7,200 7,647 6,879 6,486
Bank owned life insurance income 826 997 614 748 746
Gain on sale of securities, net 3,759 329 305 40 -
Net (loss) gain on assets covered by FDIC loss-share agreements - - - (9,085) (3,056)
Other income 4,669 3,642 4,518 7,006 3,863
TOTAL NON-INTEREST INCOME 36,888 29,503 28,649 23,072 24,948
NON-INTEREST EXPENSE
Salaries and employee benefits 33,103 34,773 39,523 37,000 35,111
Occupancy expense, net 4,990 4,471 3,418 4,812 5,051
Furniture and equipment expense 4,077 3,947 3,731 4,202 3,241
Other real estate and foreclosure expense 967 966 1,167 2,297 1,017
Deposit insurance 1,096 1,148 1,222 1,013 1,096
Merger-related costs 372 93 1,237 857 1,247
Other operating expenses 19,532 16,391 17,508 17,314 18,041
TOTAL NON-INTEREST EXPENSE 64,137 61,789 67,806 67,495 64,804
NET INCOME BEFORE INCOME TAXES 34,718 35,123 31,364 32,638 30,345
Provision for income taxes 11,809 11,618 7,505 10,963 10,250
NET INCOME 22,909 23,505 23,859 21,675 20,095
Preferred stock dividends - 24 77 77 77
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 22,909 $ 23,481 $ 23,782 $ 21,598 $ 20,018
BASIC EARNINGS PER SHARE $ 0.75 $ 0.77 $ 0.79 $ 0.72 $ 0.67
DILUTED EARNINGS PER SHARE $ 0.75 $ 0.77 $ 0.78 $ 0.72 $ 0.67

Simmons First National Corporation SFNC
Consolidated Core Earnings - Quarter-to-Date (non-GAAP) (1)
For the Quarters Ended Jun 30Mar 31Dec 31Sep 30Jun 30
(Unaudited) 2016 2016 2015 2015 2015
($ in thousands, except per share data)
INTEREST INCOME
Loans$ 63,009 $ 66,678 $ 70,511 $ 76,432 $ 70,438
Federal funds sold 17 10 10 15 73
Investment securities 8,499 8,506 8,350 8,335 8,050
Mortgage loans held for sale 295 278 237 291 375
Assets held in trading accounts 3 6 6 4 4
Interest bearing balances due from banks 77 144 225 122 229
TOTAL INTEREST INCOME 71,900 75,622 79,339 85,199 79,169
INTEREST EXPENSE
Time deposits 1,741 1,636 1,858 1,936 2,064
Other deposits 2,035 2,018 2,105 2,222 2,131
Federal funds purchased and securities
sold under agreements to repurchase 59 65 60 55 57
Other borrowings 938 1,128 1,084 1,812 1,151
Subordinated debentures 544 543 481 498 559
TOTAL INTEREST EXPENSE 5,317 5,390 5,588 6,523 5,962
NET INTEREST INCOME 66,583 70,232 73,751 78,676 73,207
Provision for loan losses 4,616 2,823 3,230 1,615 3,006
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 61,967 67,409 70,521 77,061 70,201
NON-INTEREST INCOME
Trust income 3,656 3,631 2,725 2,215 2,070
Service charges on deposit accounts 7,661 7,316 8,104 8,488 8,031
Other service charges and fees 1,571 1,909 1,654 2,672 2,766
Mortgage lending income 5,877 3,792 2,298 3,446 3,449
Investment banking income 1,181 687 784 663 593
Debit and credit card fees 7,688 7,200 7,647 6,879 6,486
Bank owned life insurance income 826 997 614 748 746
Gain on sale of securities, net 3,759 329 305 40 -
Net (loss) gain on assets covered by FDIC loss-share agreements - - - (1,609) (3,056)
Other income 4,669 3,048 4,518 4,737 4,396
TOTAL NON-INTEREST INCOME 36,888 28,909 28,649 28,279 25,481
NON-INTEREST EXPENSE
Salaries and employee benefits 33,103 34,773 37,314 36,919 34,960
Occupancy expense, net 4,945 4,461 3,358 4,680 5,013
Furniture and equipment expense 4,077 3,947 3,731 4,172 3,209
Other real estate and foreclosure expense 967 966 1,167 2,297 1,017
Deposit insurance 1,096 1,148 1,222 1,013 1,096
Other operating expenses 16,358 16,387 17,508 17,094 16,050
TOTAL NON-INTEREST EXPENSE 60,546 61,682 64,300 66,175 61,345
CORE EARNINGS BEFORE INCOME TAXES (non-GAAP) (1) 38,309 34,636 34,870 39,165 34,337
Provision for income taxes 13,218 11,427 8,880 13,523 11,816
CORE EARNINGS (non-GAAP) (1) 25,091 23,209 25,990 25,642 22,521
Preferred stock dividends - 24 77 77 77
CORE EARNINGS AVAILABLE TO COMMON S/H (non-GAAP) (1) $ 25,091 $ 23,185 $ 25,913 $ 25,565 $ 22,444
BASIC CORE EARNINGS PER SHARE (non-GAAP) (1) $ 0.83 $ 0.76 $ 0.86 $ 0.85 $ 0.75
DILUTED CORE EARNINGS PER SHARE (non-GAAP) (1) $ 0.82 $ 0.76 $ 0.86 $ 0.85 $ 0.75
(1) Calculations of core earnings and core earnings per share and the reconciliations to GAAP are included in the schedules accompanying this release.

Simmons First National Corporation SFNC
Consolidated Risk-Based Capital
For the Quarters Ended Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
(Unaudited) 2016 2016 2015 2015 2015
($ in thousands)
Tier 1 capital
Stockholders' equity$1,090,711 $1,071,984 $1,076,855 $1,045,441 $1,025,105
Trust preferred securities, net allowable 60,184 60,077 60,570 61,906 61,794
Disallowed intangible assets, net of deferred tax (334,395) (335,166) (331,931) (314,735) (342,590)
Unrealized loss (gain) on AFS securities (4,238) (3,566) 2,665 (2,718) 1,400
Other - - - - (10,297)
Total Tier 1 capital 812,262 793,329 808,159 789,894 735,412
Tier 2 capital
Qualifying unrealized gain on AFS equity securities - - - - -
Qualifying allowance for loan losses and
reserve for unfunded commitments 37,240 36,398 35,068 34,097 34,284
Total Tier 2 capital 37,240 36,398 35,068 34,097 34,284
Total risk-based capital$849,502 $829,727 $843,227 $823,991 $769,696
Common equity
Tier 1 capital$812,262 $793,329 $808,159 $789,894 $735,412
Less: Non-cumulative preferred stock - - (30,852) (30,852) (30,852)
Less: Trust preferred securities (60,184) (60,077) (60,570) (61,906) (61,794)
Total common equity$752,078 $733,252 $716,737 $697,136 $642,766
Risk weighted assets$5,343,355 $5,293,395 $5,044,453 $4,986,641 $4,714,852
Adjusted average assets for leverage ratio$7,185,633 $7,167,839 $7,218,559 $7,293,113 $7,350,900
Ratios at end of quarter
Equity to assets 14.48% 14.22% 14.24% 13.83% 13.46%
Tangible common equity to tangible assets (1) 9.96% 9.68% 9.26% 9.10% 8.73%
Common equity Tier 1 ratio (CET1) 14.08% 13.85% 14.21% 13.98% 13.63%
Tier 1 leverage ratio 11.30% 11.07% 11.20% 10.83% 10.00%
Tier 1 risk-based capital ratio 15.20% 14.99% 16.02% 15.84% 15.60%
Total risk-based capital ratio 15.90% 15.67% 16.72% 16.52% 16.32%
(1) Calculations of tangible common equity to tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release.

Simmons First National Corporation SFNC
Consolidated Loans and Investments
For the Quarters Ended Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
(Unaudited) 2016 2016 2015 2015 2015
($ in thousands)
Legacy Loan Portfolio - End of Period (1)
Consumer
Credit cards$171,468 $167,803 $177,288 $171,701 $174,074
Other consumer 248,018 227,480 208,380 182,472 160,828
Total consumer 419,486 395,283 385,668 354,173 334,902
Real Estate
Construction 330,666 300,042 279,740 253,761 199,707
Single-family residential 785,289 746,754 696,180 623,089 662,954
Other commercial 1,414,663 1,327,372 1,229,072 1,037,559 878,109
Total real estate 2,530,618 2,374,168 2,204,992 1,914,409 1,740,770
Commercial
Commercial 577,771 551,695 500,116 394,422 388,869
Agricultural 187,047 143,033 148,563 170,257 141,502
Total commercial 764,818 694,728 648,679 564,679 530,371
Other 10,500 8,512 7,115 6,017 5,186
Total Loans$3,725,422 $3,472,691 $3,246,454 $2,839,278 $2,611,229
(1) Excludes all acquired loans, including those covered by FDIC loss-share agreements.
Investment Securities - End of Period
Held-to-Maturity
U.S. Government agencies$ 199,505 $ 223,484 $ 237,139 $ 285,071 $ 361,744
Mortgage-backed securities 22,612 23,734 24,774 25,913 27,146
State and political subdivisions 407,273 424,586 440,676 464,245 471,631
Other securities 2,764 2,698 2,784 1,065 1,075
Total held-to-maturity 632,154 674,502 705,373 776,294 861,596
Available-for-Sale
U.S. Treasury$ 4,305 $ 4,302 $ 3,994 $ 4,008 $ 4,005
U.S. Government agencies 58,113 78,308 120,237 153,576 236,003
Mortgage-backed securities 652,425 722,982 647,425 502,344 464,857
State and political subdivisions 64,836 11,260 9,874 10,976 10,971
FHLB stock 8,781 7,838 7,823 14,275 13,619
Other securities 32,912 32,983 32,054 18,168 18,246
Total available-for-sale 821,372 857,673 821,407 703,347 747,701
Total investment securities$ 1,453,526 $ 1,532,175 $ 1,526,780 $ 1,479,641 $ 1,609,297
Fair value - HTM investment securities$ 647,293 $ 686,835 $ 713,371 $ 785,030 $ 863,349
Investment Securities - QTD Average
Taxable securities$ 1,059,802 $ 1,067,302 $ 1,043,268 $ 1,088,597 $ 1,163,708
Tax exempt securities 443,492 439,370 463,631 478,436 492,118
Total investment securities - QTD average$ 1,503,294 $ 1,506,672 $ 1,506,899 $ 1,567,033 $ 1,655,826

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) 2016 2016 2015 2015 2015
($ in thousands)
LOANS
Legacy loans$3,725,422 $3,472,691 $3,246,454 $2,839,278 $2,611,229
Allowance for loan losses (legacy loans) (33,523) (32,681) (31,351) (30,380) (30,567)
Legacy loans (net of allowance) 3,691,899 3,440,010 3,215,103 2,808,898 2,580,662
Loans acquired, not covered by FDIC loss share 1,327,683 1,503,482 1,729,557 2,085,211 2,171,388
Credit discount (38,294) (45,158) (55,702) (70,441) (63,082)
Allowance for loan losses (loans acquired, not covered) (954) (954) (954) (954) -
Loans acquired, not covered (net of discount and allowance) 1,288,435 1,457,370 1,672,901 2,013,816 2,108,306
Loans acquired, covered by FDIC loss share - - - - 114,296
Credit discount - - - - (20,221)
Allowance for loan losses (acquired covered loans) - - - - (954)
Loans acquired, covered (net of discount and allowance) - - - - 93,121
Net loans$ 4,980,334 $ 4,897,380 $ 4,888,004 $ 4,822,714 $ 4,782,089
Loan Coverage Ratios
Allowance for loan losses to legacy loans 0.90% 0.94% 0.97% 1.07% 1.17%
Discount for credit losses and allowance on loans acquired
to total loans acquired plus discount for credit losses
and allowance on loans acquired (non-GAAP) (1) 2.96% 3.07% 3.28% 3.42% 3.69%
Total allowance and credit coverage (non-GAAP) (1) 1.44% 1.58% 1.77% 2.07% 2.34%
(1) Calculations of the non-GAAP loan coverage ratios and the reconciliations to GAAP are included in the schedules accompanying this release.

Simmons First National Corporation SFNC
Consolidated Allowance and Asset Quality
For the Quarters Ended Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
(Unaudited) 2016 2016 2015 2015 2015
($ in thousands)
Allowance for Loan Losses (Legacy Loans)
Balance, beginning of quarter$ 32,681 $ 31,351 $ 30,380 $ 30,567 $ 29,183
Loans charged off
Credit cards 702 859 757 763 802
Other consumer 489 393 489 597 366
Real estate 824 229 845 109 333
Commercial 2,283 476 654 516 -
Total loans charged off 4,298 1,957 2,745 1,985 1,501
Recoveries of loans previously charged off
Credit cards 253 242 223 213 241
Other consumer 149 103 140 78 187
Real estate 111 112 120 25 46
Commercial 318 7 3 - 9
Total recoveries 831 464 486 316 483
Net loans charged off 3,467 1,493 2,259 1,669 1,018
Provision for loan losses 4,309 2,823 3,230 1,482 2,402
Balance, end of quarter$ 33,523 $ 32,681 $ 31,351 $ 30,380 $ 30,567
Non-performing assets (1) (2)
Non-performing loans
Nonaccrual loans 43,305 34,244 17,714 15,305 15,565
Loans past due 90 days or more 227 881 1,191 1,506 1,375
Total non-performing loans 43,532 35,125 18,905 16,811 16,940
Other non-performing assets
Foreclosed assets held for sale, not covered 30,529 41,126 44,820 48,073 42,666
Other non-performing assets 519 256 211 172 242
Total other non-performing assets 31,048 41,382 45,031 48,245 42,908
Total non-performing assets$ 74,580 $ 76,507 $ 63,936 $ 65,056 $ 59,848
Performing TDRs (troubled debt restructurings)$ 10,887 $ 10,759 $ 3,031 $ 1,955 $ 1,959
Ratios (1) (2)
Allowance for loan losses to total loans 0.90% 0.94% 0.97% 1.07% 1.17%
Allowance for loan losses to non-performing loans 77% 93% 166% 181% 180%
Non-performing loans to total loans 1.17% 1.01% 0.58% 0.59% 0.65%
Non-performing assets (including performing TDRs)
to total assets 1.13% 1.16% 0.89% 0.89% 0.81%
Non-performing assets to total assets 0.99% 1.02% 0.85% 0.86% 0.79%
Annualized net charge offs to total loans 0.39% 0.18% 0.31% 0.24% 0.17%
Annualized net credit card charge offs to
total credit card loans 1.07% 1.46% 1.22% 1.26% 1.31%
Annualized net charge offs to total loans
(excluding credit cards) 0.36% 0.11% 0.25% 0.17% 0.08%
(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 - Average Balance Sheet and Net Interest Income Analysis
For the Quarters Ended
(Unaudited)
Three Months Ended
Jun 2016
Three Months Ended
Mar 2016
Three Months Ended
Jun 2015
($ in thousands) Average
Balance
Income/
Expense
Yield/
Rate
Average
Balance
Income/
Expense
Yield/
Rate
Average
Balance
Income/
Expense
Yield/
Rate
ASSETS
Earning assets:
Interest bearing balances due from banks$126,114 $77 0.25% $167,381 $144 0.35% $308,756 $229 0.30%
Federal funds sold 2,570 17 2.66% 1,839 10 2.19% 75,922 73 0.39%
Investment securities - taxable 1,087,179 5,273 1.95% 1,076,855 5,311 1.98% 1,295,466 4,479 1.39%
Investment securities - non-taxable (FTE) 416,115 5,300 5.12% 429,817 5,249 4.91% 360,360 5,849 6.51%
Mortgage loans held for sale 28,844 295 4.11% 26,616 278 4.20% 37,656 375 3.99%
Assets held in trading accounts 6,932 3 0.17% 5,196 6 0.46% 6,592 4 0.24%
Loans, including acquired loans 4,957,888 63,041 5.11% 4,889,685 66,708 5.49% 4,689,941 70,463 6.03%
Total interest earning assets (FTE) 6,625,642 74,006 4.49% 6,597,389 77,706 4.74% 6,774,693 81,472 4.82%
Non-earning assets 896,491 901,796 920,999
Total assets$ 7,522,133 $ 7,499,185 $ 7,695,692
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Interest bearing transaction and
savings accounts$3,526,278 $2,035 0.23% $3,484,571 $2,018 0.23% $3,621,060 $2,131 0.24%
Time deposits 1,242,805 1,741 0.56% 1,303,614 1,636 0.50% 1,488,208 2,064 0.56%
Total interest bearing deposits 4,769,083 3,776 0.32% 4,788,185 3,654 0.31% 5,109,268 4,195 0.33%
Federal funds purchased and securities
sold under agreement to repurchase 104,668 59 0.23% 113,551 65 0.23% 116,258 57 0.20%
Other borrowings 172,268 938 2.19% 184,000 1,128 2.47% 179,080 1,151 2.58%
Subordinated debentures 60,132 544 3.64% 60,109 543 3.63% 62,981 559 3.56%
Total interest bearing liabilities 5,106,151 5,317 0.42% 5,145,845 5,390 0.42% 5,467,587 5,962 0.44%
Non-interest bearing liabilities:
Non-interest bearing deposits 1,271,878 1,225,311 1,088,474
Other liabilities 57,486 53,240 70,312
Total liabilities 6,435,515 6,424,396 6,626,373
Stockholders' equity 1,086,618 1,074,789 1,069,319
Total liabilities and stockholders' equity$ 7,522,133 $ 7,499,185 $ 7,695,692
Net interest income (FTE) $ 68,689 $ 72,316 $ 75,510
Net interest spread (FTE) 4.07% 4.32% 4.38%
Net interest margin (FTE) - quarter-to-date 4.17% 4.41% 4.47%
Net interest margin (FTE) - year-to-date 4.29% 4.41% 4.42%
Core net interest margin (FTE) - quarter-to-date (1) 3.88% 3.92% 3.87%
Core loan yield (FTE) - quarter-to-date (1) 4.73% 4.82% 5.16%
Core net interest margin (FTE) - year-to-date (1) 3.90% 3.92% 3.74%
Core loan yield (FTE) - year-to-date (1) 4.77% 4.82% 5.06%
(1) Calculations of core net interest margin and core loan yield and the reconciliations to GAAP are included in the schedules accompanying this release.

Simmons First National Corporation SFNC
Consolidated - Selected Financial Data
For the Quarters Ended Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
(Unaudited) 2016 2016 2015 2015 2015
($ in thousands, except share data)
QUARTER-TO-DATE
Financial Highlights - GAAP
Net Income$ 22,909 $ 23,481 $ 23,782 $ 21,598 $ 20,018
Diluted earnings per share 0.75 0.77 0.78 0.72 0.67
Return on average assets 1.22% 1.26% 1.25% 1.13% 1.04%
Return on average common equity 8.48% 8.87% 9.15% 8.46% 7.73%
Return on tangible common equity 13.52% 14.30% 14.62% 13.58% 12.36%
Net interest margin (FTE) 4.17% 4.41% 4.53% 4.82% 4.47%
FTE adjustment 2,105 2,084 2,185 2,172 2,303
Amortization of intangibles 1,451 1,455 1,337 1,265 1,388
Amortization of intangibles, net of taxes 882 884 813 769 844
Average diluted shares outstanding 30,452,285 30,481,604 30,301,190 30,046,062 29,987,471
Cash dividends declared per common share 0.24 0.24 0.23 0.23 0.23
Financial Highlights - Core (non-GAAP)
Core earnings (excludes nonrecurring items) (1)$ 25,091 $ 23,185 $ 25,913 $ 25,565 $ 22,444
Diluted core earnings per share (1) 0.82 0.76 0.86 0.85 0.75
Core net interest margin (FTE) (2) 3.88% 3.92% 3.87% 3.93% 3.87%
Efficiency ratio (1) 57.09% 58.73% 59.26% 57.40% 58.36%
Core return on average assets (1) 1.34% 1.24% 1.36% 1.33% 1.17%
Core return on average common equity (1) 9.29% 8.75% 9.96% 10.01% 8.67%
Core return on tangible common equity (1) 14.76% 14.13% 15.89% 15.99% 13.80%
YEAR-TO-DATE
Financial Highlights - GAAP
Net Income$ 46,390 $ 23,481 $ 74,107 $ 50,325 $ 28,727
Diluted earnings per share 1.52 0.77 2.63 1.83 1.10
Return on average assets 1.24% 1.26% 1.03% 0.96% 0.86%
Return on average common equity 8.67% 8.87% 7.90% 7.41% 6.77%
Return on tangible common equity 13.90% 14.30% 12.53% 11.73% 10.63%
Net interest margin (FTE) 4.29% 4.41% 4.55% 4.58% 4.42%
FTE adjustment 4,189 2,084 8,517 6,332 4,160
Amortization of intangibles 2,906 1,455 4,889 3,552 2,287
Amortization of intangibles, net of taxes 1,766 884 2,972 2,159 1,390
Average diluted shares outstanding 30,438,939 30,481,604 28,209,661 27,497,813 26,203,942
Cash dividends declared per common share 0.48 0.24 0.92 0.69 0.46
Financial Highlights - Core (non-GAAP)
Core earnings (excludes nonrecurring items) (1)$ 48,276 $ 23,185 $ 89,622 $ 63,709 $ 38,144
Diluted core earnings per share (1) 1.59 0.76 3.18 2.32 1.46
Core net interest margin (FTE) (2) 3.90% 3.92% 3.82% 3.82% 3.74%
Efficiency ratio (1) 57.91% 58.73% 59.01% 58.91% 59.94%
Core return on average assets (1) 1.29% 1.24% 1.25% 1.21% 1.14%
Core return on average common equity (1) 9.02% 8.75% 9.55% 9.39% 8.99%
Core return on tangible common equity (1) 14.45% 14.13% 15.05% 14.73% 13.96%
END OF PERIOD
Book value per share$ 35.86 $ 35.35 $ 34.55 $ 33.89 $ 33.26
Tangible book value per share 23.43 22.84 21.97 21.89 21.19
Shares outstanding 30,415,980 30,324,499 30,278,432 29,939,698 29,894,903
Full-time equivalent employees 1,880 1,931 1,946 1,967 2,043
Total number of ATM's 174 185 182 183 186
Total number of financial centers 140 149 149 149 152
(1) Core earnings exclude nonrecurring items, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release.
(2) Excludes accretable yield adjustment on loans, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release.

Simmons First National Corporation SFNC
Consolidated - Reconciliation of Core Earnings (non-GAAP)
For the Quarters Ended Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
(Unaudited) 2016 2016 2015 2015 2015
($ in thousands, except per share data)
QUARTER-TO-DATE
Net Income$ 22,909 $ 23,481 $ 23,782 $ 21,598 $ 20,018
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 372 93 1,237 857 1,247
Branch right-sizing 3,219 14 60 304 2,745
Tax effect (1) (1,409) 191 (1,375) (2,560) (1,566)
Net nonrecurring items 2,182 (296) 2,131 3,967 2,426
Core earnings (non-GAAP)$ 25,091 $ 23,185 $ 25,913 $ 25,565 $ 22,444
Diluted earnings per share$ 0.75 $ 0.77 $ 0.78 $ 0.72 $ 0.67
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 0.01 - 0.05 0.03 0.04
Branch right-sizing 0.11 - - 0.01 0.09
Tax effect (1) (0.05) 0.01 (0.05) (0.09) (0.05)
Net nonrecurring items 0.07 (0.01) 0.08 0.13 0.08
Core earnings (non-GAAP)$ 0.82 $ 0.76 $ 0.86 $ 0.85 $ 0.75
YEAR-TO-DATE
Net Income$ 46,390 $ 23,481 $ 74,107 $ 50,325 $ 28,727
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) (594) - - -
Loss on FDIC loss-share termination - - 7,476 7,476 -
Merger-related costs 465 93 13,760 12,523 11,666
Branch right-sizing 3,233 14 3,144 3,084 2,780
Tax effect (1) (1,218) 191 (8,964) (7,589) (5,029)
Net nonrecurring items 1,886 (296) 15,515 13,384 9,417
Core earnings (non-GAAP)$ 48,276 $ 23,185 $ 89,622 $ 63,709 $ 38,144
Diluted earnings per share$ 1.52 $ 0.77 $ 2.63 $ 1.83 $ 1.10
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) (0.02) - - -
Loss on FDIC loss-share termination - - 0.27 0.27 -
Merger-related costs 0.02 - 0.49 0.46 0.45
Branch right-sizing 0.11 - 0.11 0.11 0.11
Tax effect (1) (0.04) 0.01 (0.33) (0.28) (0.20)
Net nonrecurring items 0.07 (0.01) 0.55 0.49 0.36
Core earnings (non-GAAP)$ 1.59 $ 0.76 $ 3.18 $ 2.32 $ 1.46
(1) Effective tax rate of 39.225%, adjusted for non-deductible merger-related costs.

Simmons First National Corporation SFNC
Reconciliation Of Non-GAAP Financial Measures - End of Period
For the Quarters Ended
(Unaudited) Jun 30 Mar 31 Dec 31 Sept 30 Jun 30
2016 2016 2016 2015 2015
($ in thousands, except per share data)
Calculation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets
Total stockholders' equity$ 1,090,711 $ 1,071,984 $ 1,076,855 $ 1,045,441 $ 1,025,105
Less preferred stock - - (30,852) (30,852) (30,852)
Total common stockholders' equity 1,090,711 1,071,984 1,046,003 1,014,589 994,253
Less intangible assets:
Goodwill (327,686) (327,686) (327,686) (314,344) (314,344)
Other intangible assets (50,329) (51,783) (53,237) (44,904) (46,605)
Total intangibles (378,015) (379,469) (380,923) (359,248) (360,949)
Tangible common stockholders' equity$ 712,696 $ 692,515 $ 665,080 $ 655,341 $ 633,304
Total assets$ 7,534,219 $ 7,536,953 $ 7,559,658 $ 7,559,694 $ 7,614,358
Less intangible assets:
Goodwill (327,686) (327,686) (327,686) (314,344) (314,344)
Other intangible assets (50,329) (51,783) (53,237) (44,904) (46,605)
Total intangibles (378,015) (379,469) (380,923) (359,248) (360,949)
Tangible assets$ 7,156,204 $ 7,157,484 $ 7,178,735 $ 7,200,446 $ 7,253,409
Ratio of equity to assets 14.48% 14.22% 14.24% 13.83% 13.46%
Ratio of tangible common equity to tangible assets 9.96% 9.68% 9.26% 9.10% 8.73%
Calculation of Discount for credit losses and allowance on loans acquired to total loans acquired plus
discount for credit losses and allowance on loans acquired
Credit discount on acquired loans$ 38,294 $ 45,158 $ 55,702 $ 70,441 $ 83,303
Allowance for loan losses on acquired loans 954 954 954 954 954
Total credit discount and ALLL on acquired loans$ 39,248 $ 46,112 $ 56,656 $ 71,395 $ 84,257
Total loans acquired$ 1,327,683 $ 1,503,482 $ 1,729,557 $ 2,085,211 $ 2,285,684
Discount and ALLL on acquired loans to acquired loans 2.96% 3.07% 3.28% 3.42% 3.69%
Calculation of Total Allowance and Credit Coverage
Allowance for loan losses$ 33,523 $ 32,681 $ 31,351 $ 30,380 $ 30,567
Total credit discount and ALLL on acquired loans 39,248 46,112 56,656 71,395 84,257
Total allowance and credit discount$ 72,771 $ 78,793 $ 88,007 $ 101,775 $ 114,824
Total loans$ 5,053,105 $ 4,976,173 $ 4,976,011 $ 4,924,489 $ 4,896,913
Total allowance and credit coverage 1.44% 1.58% 1.77% 2.07% 2.34%
Calculation of Tangible Book Value per Share
Total common stockholders' equity$ 1,090,711 $ 1,071,984 $ 1,046,003 $ 1,014,589 $ 994,253
Less intangible assets:
Goodwill (327,686) (327,686) (327,686) (314,344) (314,344)
Other intangible assets (50,329) (51,783) (53,237) (44,904) (46,605)
Total intangibles (378,015) (379,469) (380,923) (359,248) (360,949)
Tangible common stockholders' equity$ 712,696 $ 692,515 $ 665,080 $ 655,341 $ 633,304
Shares of common stock outstanding 30,415,980 30,324,499 30,278,432 29,939,698 29,894,903
Book value per common share$ 35.86 $ 35.35 $ 34.55 $ 33.89 $ 33.26
Tangible book value per common share$ 23.43 $ 22.84 $ 21.97 $ 21.89 $ 21.19

Simmons First National Corporation SFNC
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date
For the Quarters Ended
(Unaudited) Jun 30 Mar 31 Dec 31 Sept 30 Jun 30
2016 2016 2016 2015 2015
($ in thousands)
Calculation of Core Return on Average Assets
Net income available to common stockholders$ 22,909 $ 23,481 $ 23,782 $ 21,598 $ 20,018
Net nonrecurring items, net of taxes, adjustment 2,182 (296) 2,131 3,967 2,426
Core earnings$ 25,091 $ 23,185 $ 25,913 $ 25,565 $ 22,444
Average total assets$ 7,522,133 $ 7,499,185 $ 7,550,569 $ 7,607,767 $ 7,695,692
Return on average assets 1.22% 1.26% 1.25% 1.13% 1.04%
Core return on average assets 1.34% 1.24% 1.36% 1.33% 1.17%
Calculation of Return on Tangible Common Equity
Net income available to common stockholders$ 22,909 $ 23,481 $ 23,782 $ 21,598 $ 20,018
Amortization of intangibles, net of taxes 882 884 813 769 844
Total income available to common stockholders$ 23,791 $ 24,365 $ 24,595 $ 22,367 $ 20,862
Net nonrecurring items, net of taxes 2,182 (296) 2,131 3,967 2,426
Core earnings 25,091 23,185 25,913 25,565 22,444
Amortization of intangibles, net of taxes 882 884 813 769 844
Total core income available to common stockholders$ 25,973 $ 24,069 $ 26,726 $ 26,334 $ 23,288
Average common stockholders' equity$ 1,086,618 $ 1,065,296 $ 1,031,710 $ 1,013,289 $ 1,038,434
Less average intangible assets:
Goodwill (327,686) (327,686) (320,216) (314,344) (314,344)
Other intangibles (51,043) (52,498) (44,302) (45,712) (47,302)
Total average intangibles (378,729) (380,184) (364,518) (360,056) (361,646)
Average tangible common stockholders' equity$ 707,889 $ 685,112 $ 667,192 $ 653,233 $ 676,788
Return on average common equity 8.48% 8.87% 9.15% 8.46% 7.73%
Return on tangible common equity 13.52% 14.30% 14.62% 13.58% 12.36%
Core return on average common equity 9.29% 8.75% 9.96% 10.01% 8.67%
Core return on tangible common equity 14.76% 14.13% 15.89% 15.99% 13.80%
Calculation of Efficiency Ratio (1)
Non-interest expense$ 64,137 $ 61,789 $ 67,806 $ 67,495 $ 64,804
Nonrecurring non-interest expense adjustment (3,591) (107) (3,506) (1,320) (3,459)
Less other real estate and foreclosure expense (967) (966) (1,167) (2,297) (1,017)
Less amortization of intangibles (1,451) (1,455) (1,337) (1,265) (1,388)
Efficiency ratio numerator$ 58,128 $ 59,261 $ 61,796 $ 62,613 $ 58,940
Net-interest income$ 66,583 $ 70,232 $ 73,751 $ 78,676 $ 73,207
Plus non-interest income 36,888 29,503 28,649 23,072 24,948
Nonrecurring non-interest income adjustment - (594) - 5,207 533
Plus fully tax-equivalent adjustment 2,105 2,084 2,185 2,172 2,303
(Gain) loss on sale of securities (3,759) (329) (305) (40) -
Efficiency ratio denominator$ 101,817 $ 100,896 $ 104,280 $ 109,087 $ 100,991
Efficiency ratio (1) 57.09% 58.73% 59.26% 57.40% 58.36%
Calculation of Core Net Interest Margin
Net interest income$ 66,583 $ 70,232 $ 73,751 $ 78,676 $ 73,207
FTE adjustment 2,105 2,084 2,185 2,172 2,303
Total accretable yield (4,700) (8,077) (11,076) (14,928) (10,133)
Core net interest income$ 63,988 $ 64,239 $ 64,860 $ 65,920 $ 65,377
Average earning assets$ 6,625,642 $ 6,597,389 $ 6,652,486 $ 6,660,434 $ 6,774,693
Core net interest margin 3.88% 3.92% 3.87% 3.93% 3.87%
Calculation of Core Loan Yield
Loan interest income$ 63,009 $ 66,678 $ 70,511 $ 76,432 $ 70,438
Total accretable yield (4,700) (8,077) (11,076) (14,928) (10,133)
Core loan interest income$ 58,309 $ 58,601 $ 59,435 $ 61,504 $ 60,305
Average loan balance$ 4,957,888 $ 4,889,685 $ 4,868,283 $ 4,835,068 $ 4,689,941
Core loan yield 4.73% 4.82% 4.84% 5.05% 5.16%
(1) Efficiency ratio is noninterest expense before foreclosed property expense and amortization of intangibles as a percent of net interest income (fully
taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and nonrecurring items.

Simmons First National Corporation SFNC
Reconciliation Of Non-GAAP Financial Measures - Year-to-Date
For the Quarters Ended
(Unaudited) Jun 30 Mar 31 Dec 31 Sept 30 Jun 30
2016 2016 2016 2015 2015
($ in thousands)
Calculation of Core Return on Average Assets
Net income available to common stockholders$ 46,390 $ 23,481 $ 74,107 $ 50,325 $ 28,727
Net nonrecurring items, net of taxes, adjustment 1,886 (296) 15,515 13,384 9,417
Core earnings$ 48,276 $ 23,185 $ 89,622 $ 63,709 $ 38,144
Average total assets$ 7,510,657 $ 7,499,185 $ 7,164,788 $ 7,036,535 $ 6,734,980
Return on average assets 1.24% 1.26% 1.03% 0.96% 0.86%
Core return on average assets 1.29% 1.24% 1.25% 1.21% 1.14%
Calculation of Return on Tangible Common Equity
Net income available to common stockholders$ 46,390 $ 23,481 $ 74,107 $ 50,325 $ 28,727
Amortization of intangibles, net of taxes 1,766 884 2,972 2,159 1,390
Total income available to common stockholders$ 48,156 $ 24,365 $ 77,079 $ 52,484 $ 30,117
Net nonrecurring items, net of taxes 1,886 (296) 15,515 13,384 9,417
Core earnings 48,276 23,185 89,622 63,709 38,144
Amortization of intangibles, net of taxes 1,766 884 2,972 2,159 1,390
Total core income available to common stockholders$ 50,042 $ 24,069 $ 92,594 $ 65,868 $ 39,534
Average common stockholders' equity$ 1,075,957 $ 1,065,296 $ 938,521 $ 907,458 $ 855,325
Less average intangible assets:
Goodwill (327,686) (327,686) (281,133) (268,106) (244,980)
Other intangibles (51,771) (52,498) (42,104) (41,372) (39,202)
Total average intangibles (379,457) (380,184) (323,237) (309,478) (284,182)
Average tangible common stockholders' equity$ 696,500 $ 685,112 $ 615,284 $ 597,980 $ 571,143
Return on average common equity 8.67% 8.87% 7.90% 7.41% 6.77%
Return on tangible common equity 13.90% 14.30% 12.53% 11.73% 10.63%
Core return on average common equity 9.02% 8.75% 9.55% 9.39% 8.99%
Core return on tangible common equity 14.45% 14.13% 15.05% 14.73% 13.96%
Calculation of Efficiency Ratio (1)
Non-interest expense$ 125,931 $ 61,789 $ 256,970 $ 189,166 $ 122,011
Nonrecurring non-interest expense adjustment (3,698) (107) (18,747) (15,241) (13,922)
Less other real estate and foreclosure expense (1,934) (966) (4,861) (3,694) (1,398)
Less amortization of intangibles (2,906) (1,455) (4,889) (3,552) (2,287)
Efficiency ratio numerator$ 117,393 $ 59,261 $ 228,473 $ 166,679 $ 104,404
Net-interest income$ 136,814 $ 70,232 $ 278,595 $ 204,844 $ 126,168
Plus non-interest income 66,397 29,503 94,661 66,014 43,282
Nonrecurring non-interest income adjustment (594) (594) 5,731 5,731 523
Plus fully tax-equivalent adjustment 4,189 2,084 8,517 6,332 4,160
(Gain) loss on sale of securities (4,088) (329) (307) (2) 38
Efficiency ratio denominator$ 202,718 $ 100,896 $ 387,197 $ 282,919 $ 174,171
Efficiency ratio (1) 57.91% 58.73% 59.01% 58.91% 59.94%
Calculation of Core Net Interest Margin
Net interest income$ 136,814 $ 70,232 $ 278,595 $ 204,844 $ 126,168
FTE adjustment 4,189 2,084 8,517 6,332 4,160
Total accretable yield (12,777) (8,077) (46,131) (35,055) (20,127)
Core net interest income$ 128,226 $ 64,239 $ 240,981 $ 176,121 $ 110,201
Average earning assets$ 6,611,516 $ 6,597,389 $ 6,305,966 $ 6,170,521 $ 5,948,265
Core net interest margin 3.90% 3.92% 3.82% 3.82% 3.74%
Calculation of Core Loan Yield
Loan interest income$ 129,688 $ 66,678 $ 268,367 $ 197,857 $ 121,424
Total accretable yield (12,777) (8,077) (46,131) (35,055) (20,127)
Core loan interest income$ 116,911 $ 58,601 $ 222,236 $ 162,802 $ 101,297
Average loan balance$ 4,923,787 $ 4,889,685 $ 4,434,074 $ 4,289,339 $ 4,038,397
Core loan yield 4.77% 4.82% 5.01% 5.07% 5.06%
(1) Efficiency ratio is noninterest expense before foreclosed property expense and amortization of intangibles as a percent of net interest income (fully
taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and nonrecurring items.


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

Source:Simmons First National Corporation