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Simmons Reports Third Quarter Net Income of $23.4 Million

PINE BLUFF, Ark., Oct. 19, 2016 (GLOBE NEWSWIRE) -- Simmons First National Corporation (NASDAQ:SFNC) today announced net income available to common shareholders of $23.4 million for the third quarter of 2016, an increase of $1.8 million, or 8.5 percent, compared with the same quarter last year. Diluted earnings per share were $0.76, an increase of $0.04, or 5.6 percent.

Included in third quarter 2016 results were $953,000 of after-tax expenses related to noncore items. Excluding the impact of these items, core earnings were $24.4 million for the third quarter of 2016 and diluted core earnings per share were $0.79.

Year-to-date net income was $69.8 million, an increase of $19.5 million, or 38.7 percent, compared with the same period of 2015. Year-to-date diluted earnings per share were $2.28, an increase of $0.45, or 24.6 percent. Year-to-date core earnings were $72.7 million, or $2.37 diluted core earnings per share.

On September 9, 2016, Simmons First National Corporation completed the acquisition of Citizens National Bank (“Citizens”), headquartered in Athens, Tenn. The systems conversion will take place on October 21, 2016, at which time nine Citizens branches will be merged into Simmons Bank.

“We welcome our newest associates from Citizens National Bank into the Simmons family. We look forward to continued growth in our east Tennessee markets,” said George A. Makris, Jr., chairman and CEO, “Our operating performance continues to produce good results. Our efficiency ratio for the third quarter was 53.8 percent, our return on assets was 1.21 percent, our return on equity was 8.4 percent, and our return on tangible common equity was 13.3 percent. I’m very proud of the accomplishments of our associates.”

Loans

Total loans, including those acquired, were $5.4 billion at September 30, 2016, an increase of $548 million, or 11.3 percent, compared with the same period in 2015. Legacy loans (all loans excluding acquired loans) grew $1.1 billion, or 38.9 percent. On a linked quarter basis, total loan growth was $387 million.

Deposits

At September 30, 2016, total deposits were $6.6 billion, an increase of $528 million, or 8.7 percent, compared with the same period in 2015. Total non-time deposits were $5.3 billion, an increase of $555 million, or 11.7 percent, and comprised 80 percent of total deposits.

Net Interest Income

The company’s net interest income for the third quarter of 2016 was $68.1 million, a decrease of $10.6 million, or 13.5 percent, from the same period of 2015. This decrease was primarily driven by a $10.0 million decline in yield accretion on acquired loans. Included in interest income was the yield accretion recognized on acquired loans of $4.9 million and $14.9 million for the third quarter of 2016 and 2015, respectively. Net interest margin was 4.09 percent for the quarter ended September 30, 2016, a 73 basis-point decline from the same quarter of 2015. The company’s core net interest margin, excluding the accretion, was 3.81 percent for the third quarter of 2016, a 12 basis-point decline from the same quarter of 2015.

Provision for Loan Losses

Provision for loan losses for the third quarter of 2016 was $8.3 million, an increase of $6.7 million compared with the third quarter of 2015. During the quarter, a single charge-off of $5.4 million was recorded in relation to a nonaccrual loan acquired from Metropolitan National Bank. The loan was charged down to the appraised liquidation value of the collateral and the charged-off amount was added back to the allowance for loan losses during the quarter, resulting in the increase in provision. Management will discuss this loan during the company’s earnings conference call tomorrow.

Non-Interest Income

Non-interest income for the third quarter was $36.9 million, an increase of $13.8 million compared with the third quarter of 2015. 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 $9.1 million in losses on FDIC-covered assets in the third quarter compared to the same period in 2015.

The remaining increase in non-interest income was due to additional mortgage lending, trust income, debit and credit card income and investment banking revenue.

Non-Interest Expense

Non-interest expense for the third quarter of 2016 was $62.4 million, a decrease of $5.1 million compared with the third quarter of 2015. Included in the quarter were $1.5 million of merger-related expenses. Salaries and benefits decreased by $5.2 million, or 14.1 percent, compared with the same quarter of 2015.

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 September 30, 2016, the allowance for loan losses for legacy loans was $34.1 million. The company's allowance for loan losses on legacy loans at September 30, 2016 was 0.86 percent of total loans and 91 percent of non-performing loans. In the legacy portfolio, non-performing loans as a percent of total loans were 0.95 percent.

The allowance for loan losses for acquired loans was $1.0 million and the acquired loan discount credit mark was $42.9 million. The allowances for loan losses and credit marks provide a total of $77.9 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 2.9 percent.

The 2016 year-to-date net charge-off ratio, excluding credit cards, was 44 basis points, and the year-to-date credit card charge-off ratio was 1.22 percent.

Capital

At September 30, 2016, common stockholders' equity was $1.1 billion, book value per share was $36.69 and tangible book value per share was $23.80. The company's ratio of stockholders' equity to total assets was 13.94 percent and its ratio of tangible common equity to tangible assets was 9.5 percent.

Simmons First National Corporation

Simmons First National Corporation is a financial holding company, headquartered in Pine Bluff, Ark., with total assets of $8.2 billion conducting financial operations throughout Arkansas, Kansas, Missouri and Tennessee. The company through its subsidiaries offers comprehensive financial solutions delivered with a 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, October 20, 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 87389332. In addition, the call will be available live or in recorded version on the company’s website at www.simmonsbank.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 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited) 2016 2016 2016 2015 2015
($ in thousands)
ASSETS
Cash and non-interest bearing balances due from banks$112,572 $96,037 $118,468 $97,656 $106,678
Interest bearing balances due from banks 324,951 151,570 100,593 154,606 284,645
Federal funds sold 17,000 3,000 4,000 - 9,675
Cash and cash equivalents 454,523 250,607 223,061 252,262 400,998
Interest bearing balances due from banks - time 4,393 9,781 11,188 14,107 16,504
Investment securities - held-to-maturity 496,594 632,154 674,502 705,373 776,294
Investment securities - available-for-sale 1,024,206 821,372 857,673 821,407 703,347
Mortgage loans held for sale 28,069 30,529 24,563 30,265 15,556
Assets held in trading accounts 2,969 7,321 7,074 4,422 6,292
Loans:
Legacy loans 3,943,089 3,725,422 3,472,691 3,246,454 2,839,278
Allowance for loan losses (34,094) (33,523) (32,681) (31,351) (30,380)
Loans acquired
(net of discount and allowance) 1,458,198 1,288,435 1,457,370 1,672,901 2,013,816
Net loans 5,367,193 4,980,334 4,897,380 4,888,004 4,822,714
Premises and equipment 192,523 183,362 192,327 193,618 190,182
Premises held for sale 6,732 6,167 2,364 923 923
Foreclosed assets 30,396 30,529 41,126 44,820 48,073
Interest receivable 27,390 24,150 23,545 25,793 26,873
Bank owned life insurance 138,298 130,943 130,092 131,536 118,922
Goodwill 348,769 327,686 327,686 327,686 314,344
Other intangible assets 54,268 50,329 51,783 53,237 44,904
Other assets 50,669 48,955 72,589 66,205 73,768
Total assets$ 8,226,992 $ 7,534,219 $ 7,536,953 $ 7,559,658 $ 7,559,694
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts$1,473,420 $1,283,426 $1,274,816 $1,280,234 $1,212,724
Interest bearing transaction accounts and savings deposits 3,815,939 3,538,808 3,524,808 3,485,845 3,521,840
Time deposits less than $100,000 653,105 643,081 674,915 694,262 673,651
Time deposits greater than $100,000 674,917 562,888 605,236 625,755 681,585
Total deposits 6,617,381 6,028,203 6,079,775 6,086,096 6,089,800
Federal funds purchased and securities sold
under agreements to repurchase 124,289 103,038 97,429 99,398 110,437
Other borrowings 215,276 191,827 176,829 162,289 173,426
Subordinated debentures 60,290 60,184 60,077 60,570 61,906
Accrued interest and other liabilities 62,615 60,256 50,859 74,450 78,684
Total liabilities 7,079,851 6,443,508 6,464,969 6,482,803 6,514,253
Stockholders' equity:
Preferred stock - - - 30,852 30,852
Common stock 313 304 303 303 299
Surplus 710,132 668,306 665,850 662,378 642,400
Undivided profits 434,579 417,863 402,265 385,987 369,172
Accumulated other comprehensive income (loss):
Unrealized appreciation (depreciation) on AFS securities 2,117 4,238 3,566 (2,665) 2,718
Total stockholders' equity 1,147,141 1,090,711 1,071,984 1,076,855 1,045,441
Total liabilities and stockholders' equity$ 8,226,992 $ 7,534,219 $ 7,536,953 $ 7,559,658 $ 7,559,694


Simmons First National Corporation SFNC
Consolidated Statements of Income - Quarter-to-Date
For the Quarters Ended Sep 30Jun 30Mar 31Dec 31Sep 30
(Unaudited) 2016 2016 2016 2015 2015
($ in thousands, except per share data)
INTEREST INCOME
Loans$65,078 $63,009 $66,678 $70,511 $76,432
Federal funds sold 19 17 10 10 15
Investment securities 7,774 8,499 8,506 8,350 8,335
Mortgage loans held for sale 299 295 278 237 291
Assets held in trading accounts 4 3 6 6 4
Interest bearing balances due from banks 244 77 144 225 122
TOTAL INTEREST INCOME 73,418 71,900 75,622 79,339 85,199
INTEREST EXPENSE
Time deposits 1,767 1,741 1,636 1,858 1,936
Other deposits 1,965 2,035 2,018 2,105 2,222
Federal funds purchased and securities
sold under agreements to repurchase 59 59 65 60 55
Other borrowings 1,048 938 1,128 1,084 1,812
Subordinated debentures 516 544 543 481 498
TOTAL INTEREST EXPENSE 5,355 5,317 5,390 5,588 6,523
NET INTEREST INCOME 68,063 66,583 70,232 73,751 78,676
Provision for loan losses 8,294 4,616 2,823 3,230 1,615
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 59,769 61,967 67,409 70,521 77,061
NON-INTEREST INCOME
Trust income 3,873 3,656 3,631 2,725 2,215
Service charges on deposit accounts 8,771 7,661 7,316 8,104 8,488
Other service charges and fees 1,840 1,571 1,909 1,654 2,672
Mortgage lending income 5,760 5,877 3,792 2,298 3,446
Investment banking income 1,131 1,181 687 784 663
Debit and credit card fees 7,825 7,688 7,200 7,647 6,879
Bank owned life insurance income 606 826 997 614 748
Gain on sale of securities, net 315 3,759 329 305 40
Net (loss) gain on assets covered by FDIC loss-share agreements - - - - (9,085)
Other income 6,755 4,669 3,642 4,518 7,006
TOTAL NON-INTEREST INCOME 36,876 36,888 29,503 28,649 23,072
NON-INTEREST EXPENSE
Salaries and employee benefits 31,784 33,103 34,773 39,523 37,000
Occupancy expense, net 4,690 4,990 4,471 3,418 4,812
Furniture and equipment expense 4,272 4,077 3,947 3,731 4,202
Other real estate and foreclosure expense 1,849 967 966 1,167 2,297
Deposit insurance 1,136 1,096 1,148 1,222 1,013
Merger-related costs 1,524 372 93 1,237 857
Other operating expenses 17,179 19,532 16,391 17,508 17,314
TOTAL NON-INTEREST EXPENSE 62,434 64,137 61,789 67,806 67,495
NET INCOME BEFORE INCOME TAXES 34,211 34,718 35,123 31,364 32,638
Provision for income taxes 10,782 11,809 11,618 7,505 10,963
NET INCOME 23,429 22,909 23,505 23,859 21,675
Preferred stock dividends - - 24 77 77
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 23,429 $ 22,909 $ 23,481 $ 23,782 $ 21,598
BASIC EARNINGS PER SHARE $ 0.77 $ 0.75 $ 0.77 $ 0.79 $ 0.72
DILUTED EARNINGS PER SHARE $ 0.76 $ 0.75 $ 0.77 $ 0.78 $ 0.72


Simmons First National Corporation SFNC
Consolidated Core Earnings - Quarter-to-Date (non-GAAP) (1)
For the Quarters Ended Sep 30Jun 30Mar 31Dec 31Sep 30
(Unaudited) 2016 2016 2016 2015 2015
($ in thousands, except per share data)
INTEREST INCOME
Loans$65,078 $63,009 $66,678 $70,511 $76,432
Federal funds sold 19 17 10 10 15
Investment securities 7,774 8,499 8,506 8,350 8,335
Mortgage loans held for sale 299 295 278 237 291
Assets held in trading accounts 4 3 6 6 4
Interest bearing balances due from banks 244 77 144 225 122
TOTAL INTEREST INCOME 73,418 71,900 75,622 79,339 85,199
INTEREST EXPENSE
Time deposits 1,767 1,741 1,636 1,858 1,936
Other deposits 1,965 2,035 2,018 2,105 2,222
Federal funds purchased and securities
sold under agreements to repurchase 59 59 65 60 55
Other borrowings 1,048 938 1,128 1,084 1,812
Subordinated debentures 516 544 543 481 498
TOTAL INTEREST EXPENSE 5,355 5,317 5,390 5,588 6,523
NET INTEREST INCOME 68,063 66,583 70,232 73,751 78,676
Provision for loan losses 8,294 4,616 2,823 3,230 1,615
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 59,769 61,967 67,409 70,521 77,061
NON-INTEREST INCOME
Trust income 3,873 3,656 3,631 2,725 2,215
Service charges on deposit accounts 8,771 7,661 7,316 8,104 8,488
Other service charges and fees 1,840 1,571 1,909 1,654 2,672
Mortgage lending income 5,760 5,877 3,792 2,298 3,446
Investment banking income 1,131 1,181 687 784 663
Debit and credit card fees 7,825 7,688 7,200 7,647 6,879
Bank owned life insurance income 606 826 997 614 748
Gain on sale of securities, net 315 3,759 329 305 40
Net (loss) gain on assets covered by FDIC loss-share agreements - - - - (1,609)
Other income 6,580 4,669 3,048 4,518 4,737
TOTAL NON-INTEREST INCOME 36,701 36,888 28,909 28,649 28,279
NON-INTEREST EXPENSE
Salaries and employee benefits 31,784 33,103 34,773 37,314 36,919
Occupancy expense, net 4,595 4,945 4,461 3,358 4,680
Furniture and equipment expense 4,270 4,077 3,947 3,731 4,172
Other real estate and foreclosure expense 1,787 967 966 1,167 2,297
Deposit insurance 1,136 1,096 1,148 1,222 1,013
Other operating expenses 17,120 16,358 16,387 17,508 17,094
TOTAL NON-INTEREST EXPENSE 60,692 60,546 61,682 64,300 66,175
CORE EARNINGS BEFORE INCOME TAXES (non-GAAP) (1) 35,778 38,309 34,636 34,870 39,165
Provision for income taxes 11,396 13,218 11,427 8,880 13,523
CORE EARNINGS (non-GAAP) (1) 24,382 25,091 23,209 25,990 25,642
Preferred stock dividends - - 24 77 77
CORE EARNINGS AVAILABLE TO COMMON S/H (non-GAAP) (1) $ 24,382 $ 25,091 $ 23,185 $ 25,913 $ 25,565
BASIC CORE EARNINGS PER SHARE (non-GAAP) (1) $ 0.80 $ 0.83 $ 0.76 $ 0.86 $ 0.85
DILUTED CORE EARNINGS PER SHARE (non-GAAP) (1) $ 0.79 $ 0.82 $ 0.76 $ 0.86 $ 0.85
(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 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited) 2016 2016 2016 2015 2015
($ in thousands)
Tier 1 capital
Stockholders' equity$1,147,141 $1,090,711 $1,071,984 $1,076,855 $1,045,441
Trust preferred securities, net allowable 60,290 60,184 60,077 60,570 61,906
Disallowed intangible assets, net of deferred tax (354,582) (334,395) (335,166) (331,931) (314,735)
Unrealized loss (gain) on AFS securities (2,117) (4,238) (3,566) 2,665 (2,718)
Total Tier 1 capital 850,732 812,262 793,329 808,159 789,894
Tier 2 capital
Qualifying allowance for loan losses and
reserve for unfunded commitments 38,050 37,240 36,398 35,068 34,097
Total Tier 2 capital 38,050 37,240 36,398 35,068 34,097
Total risk-based capital$ 888,782 $ 849,502 $ 829,727 $ 843,227 $ 823,991
Common equity
Tier 1 capital$850,732 $812,262 $793,329 $808,159 $789,894
Less: Non-cumulative preferred stock - - - (30,852) (30,852)
Less: Trust preferred securities (60,290) (60,184) (60,077) (60,570) (61,906)
Total common equity$ 790,442 $ 752,078 $ 733,252 $ 716,737 $ 697,136
Risk weighted assets$ 5,724,052 $ 5,343,355 $ 5,293,395 $ 5,044,453 $ 4,986,641
Adjusted average assets for leverage ratio$ 7,355,702 $ 7,185,633 $ 7,167,839 $ 7,218,559 $ 7,293,113
Ratios at end of quarter
Equity to assets 13.94% 14.48% 14.22% 14.24% 13.83%
Tangible common equity to tangible assets (1) 9.51% 9.96% 9.68% 9.26% 9.10%
Common equity Tier 1 ratio (CET1) 13.81% 14.08% 13.85% 14.21% 13.98%
Tier 1 leverage ratio 11.57% 11.30% 11.07% 11.20% 10.83%
Tier 1 risk-based capital ratio 14.86% 15.20% 14.99% 16.02% 15.84%
Total risk-based capital ratio 15.53% 15.90% 15.67% 16.72% 16.52%
(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 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited) 2016 2016 2016 2015 2015
($ in thousands)
Legacy Loan Portfolio - End of Period (1)
Consumer
Credit cards$175,032 $171,468 $167,803 $177,288 $171,701
Other consumer 275,947 248,018 227,480 208,380 182,472
Total consumer 450,979 419,486 395,283 385,668 354,173
Real Estate
Construction 304,082 330,666 300,042 279,740 253,761
Single-family residential 841,958 785,289 746,754 696,180 623,089
Other commercial 1,521,132 1,414,663 1,327,372 1,229,072 1,037,559
Total real estate 2,667,172 2,530,618 2,374,168 2,204,992 1,914,409
Commercial
Commercial 607,738 577,771 551,695 500,116 394,422
Agricultural 203,529 187,047 143,033 148,563 170,257
Total commercial 811,267 764,818 694,728 648,679 564,679
Other 13,671 10,500 8,512 7,115 6,017
Total Loans$ 3,943,089 $ 3,725,422 $ 3,472,691 $ 3,246,454 $ 2,839,278
(1) Excludes all acquired loans.
Investment Securities - End of Period
Held-to-Maturity
U.S. Government agencies$80,849 $199,505 $223,484 $237,139 $285,071
Mortgage-backed securities 21,454 22,612 23,734 24,774 25,913
State and political subdivisions 391,495 407,273 424,586 440,676 464,245
Other securities 2,796 2,764 2,698 2,784 1,065
Total held-to-maturity 496,594 632,154 674,502 705,373 776,294
Available-for-Sale
U.S. Treasury$63,985 $4,305 $4,302 $3,994 $4,008
U.S. Government agencies 148,781 58,113 78,308 120,237 153,576
Mortgage-backed securities 699,748 652,425 722,982 647,425 502,344
State and political subdivisions 67,019 64,836 11,260 9,874 10,976
FHLB stock 11,235 8,781 7,838 7,823 14,275
Other securities 33,438 32,912 32,983 32,054 18,168
Total available-for-sale 1,024,206 821,372 857,673 821,407 703,347
Total investment securities$ 1,520,800 $ 1,453,526 $ 1,532,175 $ 1,526,780 $ 1,479,641
Fair value - HTM investment securities$ 508,910 $ 647,293 $ 686,835 $ 713,371 $ 785,030
Investment Securities - QTD Average
Taxable securities$963,150 $1,059,802 $1,067,302 $1,043,268 $1,088,597
Tax exempt securities 466,782 443,492 439,370 463,631 478,436
Total investment securities - QTD average$ 1,429,932 $ 1,503,294 $ 1,506,672 $ 1,506,899 $ 1,567,033


Simmons First National Corporation SFNC
Consolidated Loans and Credit Coverage
For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited) 2016 2016 2016 2015 2015
($ in thousands)
LOANS
Legacy loans$3,943,089 $3,725,422 $3,472,691 $3,246,454 $2,839,278
Allowance for loan losses (legacy loans) (34,094) (33,523) (32,681) (31,351) (30,380)
Legacy loans (net of allowance) 3,908,995 3,691,899 3,440,010 3,215,103 2,808,898
Loans acquired 1,502,051 1,327,683 1,503,482 1,729,557 2,085,211
Credit discount (42,899) (38,294) (45,158) (55,702) (70,441)
Allowance for loan losses (loans acquired) (954) (954) (954) (954) (954)
Loans acquired (net of discount and allowance) 1,458,198 1,288,435 1,457,370 1,672,901 2,013,816
Net loans$ 5,367,193 $ 4,980,334 $ 4,897,380 $ 4,888,004 $ 4,822,714
Loan Coverage Ratios
Allowance for loan losses to legacy loans 0.86% 0.90% 0.94% 0.97% 1.07%
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) 2.92% 2.96% 3.07% 3.28% 3.42%
Total allowance and credit coverage (non-GAAP) (1) 1.43% 1.44% 1.58% 1.77% 2.07%
(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 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited) 2016 2016 2016 2015 2015
($ in thousands)
Allowance for Loan Losses (Legacy Loans)
Balance, beginning of quarter$ 33,523 $ 32,681 $ 31,351 $ 30,380 $ 30,567
Loans charged off
Credit cards 699 702 859 757 763
Other consumer 600 489 393 489 597
Real estate 6,297 824 229 845 109
Commercial 284 2,283 476 654 516
Total loans charged off 7,880 4,298 1,957 2,745 1,985
Recoveries of loans previously charged off
Credit cards 199 253 242 223 213
Other consumer 106 149 103 140 78
Real estate 55 111 112 120 25
Commercial 12 318 7 3 -
Total recoveries 372 831 464 486 316
Net loans charged off 7,508 3,467 1,493 2,259 1,669
Provision for loan losses 8,079 4,309 2,823 3,230 1,482
Balance, end of quarter$ 34,094 $ 33,523 $ 32,681 $ 31,351 $ 30,380
Non-performing assets (1) (2)
Non-performing loans
Nonaccrual loans 37,392 43,305 34,244 17,714 15,305
Loans past due 90 days or more 144 227 881 1,191 1,506
Total non-performing loans 37,536 43,532 35,125 18,905 16,811
Other non-performing assets
Foreclosed assets held for sale (2) 30,396 30,529 41,126 44,820 48,073
Other non-performing assets 621 519 256 211 172
Total other non-performing assets 31,017 31,048 41,382 45,031 48,245
Total non-performing assets$ 68,553 $ 74,580 $ 76,507 $ 63,936 $ 65,056
Performing TDRs (troubled debt restructurings)$13,604 $10,887 $10,759 $3,031 $1,955
Ratios (1) (2)
Allowance for loan losses to total loans 0.86% 0.90% 0.94% 0.97% 1.07%
Allowance for loan losses to non-performing loans 91% 77% 93% 166% 181%
Non-performing loans to total loans 0.95% 1.17% 1.01% 0.58% 0.59%
Non-performing assets (including performing TDRs)
to total assets 1.00% 1.13% 1.16% 0.89% 0.89%
Non-performing assets to total assets 0.83% 0.99% 1.02% 0.85% 0.86%
Annualized net charge offs to total loans 0.82% 0.39% 0.18% 0.31% 0.24%
Annualized net credit card charge offs to
total credit card loans 1.14% 1.07% 1.46% 1.22% 1.26%
Annualized net charge offs to total loans
(excluding credit cards) 0.81% 0.36% 0.11% 0.25% 0.17%
(1) Excludes all acquired loans, except for their inclusion in total assets.
(2) Includes acquired foreclosed assets held for sale.


Simmons First National Corporation SFNC
Consolidated - Average Balance Sheet and Net Interest Income Analysis
For the Quarters Ended
(Unaudited)
Three Months Ended
Sep 2016
Three Months Ended
Jun 2016
Three Months Ended
Sep 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$246,818 $244 0.39% $126,114 $77 0.25% $206,467 $122 0.23%
Federal funds sold 6,431 19 1.18% 2,570 17 2.66% 19,086 15 0.31%
Investment securities - taxable 1,038,437 4,445 1.70% 1,087,179 5,273 1.95% 1,209,985 4,901 1.61%
Investment securities - non-taxable (FTE) 391,495 5,468 5.56% 416,115 5,300 5.12% 357,048 5,582 6.20%
Mortgage loans held for sale 31,256 299 3.81% 28,844 295 4.11% 26,379 291 4.38%
Assets held in trading accounts 5,108 4 0.31% 6,932 3 0.17% 6,401 4 0.25%
Loans, including acquired loans 5,105,474 65,120 5.07% 4,957,888 63,041 5.11% 4,835,068 76,456 6.27%
Total interest earning assets (FTE) 6,825,019 75,599 4.41% 6,625,642 74,006 4.49% 6,660,434 87,371 5.20%
Non-earning assets 878,818 896,491 947,333
Total assets$ 7,703,837 $ 7,522,133 $ 7,607,767
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Interest bearing transaction and
savings accounts$3,645,414 $1,965 0.21% $3,526,278 $2,035 0.23% $3,600,930 $2,222 0.24%
Time deposits 1,213,895 1,767 0.58% 1,242,805 1,741 0.56% 1,397,928 1,936 0.55%
Total interest bearing deposits 4,859,309 3,732 0.31% 4,769,083 3,776 0.32% 4,998,858 4,158 0.33%
Federal funds purchased and securities
sold under agreement to repurchase 105,576 59 0.22% 104,668 59 0.23% 109,311 55 0.20%
Other borrowings 192,453 1,048 2.17% 172,268 938 2.19% 197,832 1,812 3.63%
Subordinated debentures 60,238 516 3.41% 60,132 544 3.64% 61,851 498 3.19%
Total interest bearing liabilities 5,217,576 5,355 0.41% 5,106,151 5,317 0.42% 5,367,852 6,523 0.48%
Non-interest bearing liabilities:
Non-interest bearing deposits 1,322,818 1,271,878 1,121,078
Other liabilities 49,191 57,486 74,696
Total liabilities 6,589,585 6,435,515 6,563,626
Stockholders' equity 1,114,252 1,086,618 1,044,141
Total liabilities and stockholders' equity$ 7,703,837 $ 7,522,133 $ 7,607,767
Net interest income (FTE) $ 70,244 $ 68,689 $ 80,848
Net interest spread (FTE) 4.00% 4.07% 4.72%
Net interest margin (FTE) - quarter-to-date 4.09% 4.17% 4.82%
Net interest margin (FTE) - year-to-date 4.22% 4.29% 4.58%
Core net interest margin (FTE) - quarter-to-date (1) 3.81% 3.88% 3.93%
Core loan yield (FTE) - quarter-to-date (1) 4.69% 4.73% 5.05%
Core net interest margin (FTE) - year-to-date (1) 3.87% 3.90% 3.82%
Core loan yield (FTE) - year-to-date (1) 4.75% 4.77% 5.07%
(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 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited) 2016 2016 2016 2015 2015
($ in thousands, except share data)
QUARTER-TO-DATE
Financial Highlights - GAAP
Net Income$23,429 $22,909 $23,481 $23,782 $21,598
Diluted earnings per share 0.76 0.75 0.77 0.78 0.72
Return on average assets 1.21% 1.22% 1.26% 1.25% 1.13%
Return on average common equity 8.36% 8.48% 8.87% 9.15% 8.46%
Return on tangible common equity 13.26% 13.52% 14.30% 14.62% 13.58%
Net interest margin (FTE) 4.09% 4.17% 4.41% 4.53% 4.82%
FTE adjustment 2,181 2,105 2,084 2,185 2,172
Amortization of intangibles 1,503 1,451 1,455 1,337 1,265
Amortization of intangibles, net of taxes 913 882 884 813 769
Average diluted shares outstanding 30,843,714 30,452,285 30,481,604 30,301,190 30,046,062
Cash dividends declared per common share 0.24 0.24 0.24 0.23 0.23
Financial Highlights - Core (non-GAAP)
Core earnings (excludes nonrecurring items) (1)$24,382 $25,091 $23,185 $25,913 $25,565
Diluted core earnings per share (1) 0.79 0.82 0.76 0.86 0.85
Core net interest margin (FTE) (2) 3.81% 3.88% 3.92% 3.87% 3.93%
Efficiency ratio (1) 53.83% 57.09% 58.73% 59.26% 57.40%
Core return on average assets (1) 1.26% 1.34% 1.24% 1.36% 1.33%
Core return on average common equity (1) 8.71% 9.29% 8.75% 9.96% 10.01%
Core return on tangible common equity (1) 13.78% 14.76% 14.13% 15.89% 15.99%
YEAR-TO-DATE
Financial Highlights - GAAP
Net Income$69,819 $46,390 $23,481 $74,107 $50,325
Diluted earnings per share 2.28 1.52 0.77 2.63 1.83
Return on average assets 1.23% 1.24% 1.26% 1.03% 0.96%
Return on average common equity 8.57% 8.67% 8.87% 7.90% 7.41%
Return on tangible common equity 13.68% 13.90% 14.30% 12.53% 11.73%
Net interest margin (FTE) 4.22% 4.29% 4.41% 4.55% 4.58%
FTE adjustment 6,370 4,189 2,084 8,517 6,332
Amortization of intangibles 4,409 2,906 1,455 4,889 3,552
Amortization of intangibles, net of taxes 2,679 1,766 884 2,972 2,159
Average diluted shares outstanding 30,656,882 30,438,939 30,481,604 28,209,661 27,497,813
Cash dividends declared per common share 0.72 0.48 0.24 0.92 0.69
Financial Highlights - Core (non-GAAP)
Core earnings (excludes nonrecurring items) (1)$72,658 $48,276 $23,185 $89,622 $63,709
Diluted core earnings per share (1) 2.37 1.59 0.76 3.18 2.32
Core net interest margin (FTE) (2) 3.87% 3.90% 3.92% 3.82% 3.82%
Efficiency ratio (1) 56.50% 57.91% 58.73% 59.01% 58.91%
Core return on average assets (1) 1.28% 1.29% 1.24% 1.25% 1.21%
Core return on average common equity (1) 8.91% 9.02% 8.75% 9.55% 9.39%
Core return on tangible common equity (1) 14.22% 14.45% 14.13% 15.05% 14.73%
END OF PERIOD
Book value per share$36.69 $35.86 $35.35 $34.55 $33.89
Tangible book value per share 23.80 23.43 22.84 21.97 21.89
Shares outstanding 31,267,614 30,415,980 30,324,499 30,278,432 29,939,698
Full-time equivalent employees 1,985 1,880 1,931 1,946 1,967
Total number of ATM's 186 174 185 182 183
Total number of financial centers 150 140 149 149 149
(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 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited) 2016 2016 2016 2015 2015
($ in thousands, except per share data)
QUARTER-TO-DATE
Net Income$23,429 $22,909 $23,481 $23,782 $21,598
Nonrecurring items
Accelerated vesting on retirement agreements - - - 2,209 -
Gain on sale of banking operations - - - - (2,110)
Gain from early retirement of trust preferred securities - - (594) - -
Loss on FDIC loss-share termination - - - - 7,476
Merger-related costs 1,524 372 93 1,237 857
Branch right-sizing 43 3,219 14 60 304
Tax effect (1) (614) (1,409) 191 (1,375) (2,560)
Net nonrecurring items 953 2,182 (296) 2,131 3,967
Core earnings (non-GAAP)$ 24,382 $ 25,091 $ 23,185 $ 25,913 $ 25,565
Diluted earnings per share$0.76 $0.75 $0.77 $0.78 $0.72
Nonrecurring items
Accelerated vesting on retirement agreements - - - 0.08 -
Gain on sale of banking operations - - - - (0.07)
Gain from early retirement of trust preferred securities - - (0.02) - -
Loss on FDIC loss-share termination - - - - 0.25
Merger-related costs 0.05 0.01 - 0.05 0.03
Branch right-sizing - 0.11 - - 0.01
Tax effect (1) (0.02) (0.05) 0.01 (0.05) (0.09)
Net nonrecurring items 0.03 0.07 (0.01) 0.08 0.13
Core earnings (non-GAAP)$ 0.79 $ 0.82 $ 0.76 $ 0.86 $ 0.85
YEAR-TO-DATE
Net Income$69,819 $46,390 $23,481 $74,107 $50,325
Nonrecurring items
Accelerated vesting on retirement agreements - - - 2,209 -
Gain on sale of banking operations - - - (2,110) (2,110)
Gain from early retirement of trust preferred securities (594) (594) (594) - -
Loss on FDIC loss-share termination - - - 7,476 7,476
Merger-related costs 1,989 465 93 13,760 12,523
Branch right-sizing 3,276 3,233 14 3,144 3,084
Tax effect (1) (1,832) (1,218) 191 (8,964) (7,589)
Net nonrecurring items 2,839 1,886 (296) 15,515 13,384
Core earnings (non-GAAP)$ 72,658 $ 48,276 $ 23,185 $ 89,622 $ 63,709
Diluted earnings per share$2.28 $1.52 $0.77 $2.63 $1.83
Nonrecurring items
Accelerated vesting on retirement agreements - - - 0.08 -
Gain on sale of banking operations - - - (0.07) (0.07)
Gain from early retirement of trust preferred securities (0.02) (0.02) (0.02) - -
Loss on FDIC loss-share termination - - - 0.27 0.27
Merger-related costs 0.06 0.02 - 0.49 0.46
Branch right-sizing 0.11 0.11 - 0.11 0.11
Tax effect (1) (0.06) (0.04) 0.01 (0.33) (0.28)
Net nonrecurring items 0.09 0.07 (0.01) 0.55 0.49
Core earnings (non-GAAP)$ 2.37 $ 1.59 $ 0.76 $ 3.18 $ 2.32
(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) Sept 30 Jun 30 Mar 31 Dec 31 Sept 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$1,147,141 $1,090,711 $1,071,984 $1,076,855 $1,045,441
Preferred stock - - - (30,852) (30,852)
Total common stockholders' equity 1,147,141 1,090,711 1,071,984 1,046,003 1,014,589
Intangible assets:
Goodwill (348,769) (327,686) (327,686) (327,686) (314,344)
Other intangible assets (54,268) (50,329) (51,783) (53,237) (44,904)
Total intangibles (403,037) (378,015) (379,469) (380,923) (359,248)
Tangible common stockholders' equity$ 744,104 $ 712,696 $ 692,515 $ 665,080 $ 655,341
Total assets$8,226,992 $7,534,219 $7,536,953 $7,559,658 $7,559,694
Intangible assets:
Goodwill (348,769) (327,686) (327,686) (327,686) (314,344)
Other intangible assets (54,268) (50,329) (51,783) (53,237) (44,904)
Total intangibles (403,037) (378,015) (379,469) (380,923) (359,248)
Tangible assets$ 7,823,955 $ 7,156,204 $ 7,157,484 $ 7,178,735 $ 7,200,446
Ratio of equity to assets 13.94% 14.48% 14.22% 14.24% 13.83%
Ratio of tangible common equity to tangible assets 9.51% 9.96% 9.68% 9.26% 9.10%
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$42,899 $38,294 $45,158 $55,702 $70,441
Allowance for loan losses on acquired loans 954 954 954 954 954
Total credit discount and ALLL on acquired loans$ 43,853 $ 39,248 $ 46,112 $ 56,656 $ 71,395
Total loans acquired$ 1,502,051 $ 1,327,683 $ 1,503,482 $ 1,729,557 $ 2,085,211
Discount and ALLL on acquired loans to acquired loans 2.92% 2.96% 3.07% 3.28% 3.42%
Calculation of Total Allowance and Credit Coverage
Allowance for loan losses$34,094 $33,523 $32,681 $31,351 $30,380
Total credit discount and ALLL on acquired loans 43,853 39,248 46,112 56,656 71,395
Total allowance and credit discount$ 77,947 $ 72,771 $ 78,793 $ 88,007 $ 101,775
Total loans$ 5,445,140 $ 5,053,105 $ 4,976,173 $ 4,976,011 $ 4,924,489
Total allowance and credit coverage 1.43% 1.44% 1.58% 1.77% 2.07%
Calculation of Tangible Book Value per Share
Total common stockholders' equity$1,147,141 $1,090,711 $1,071,984 $1,046,003 $1,014,589
Intangible assets:
Goodwill (348,769) (327,686) (327,686) (327,686) (314,344)
Other intangible assets (54,268) (50,329) (51,783) (53,237) (44,904)
Total intangibles (403,037) (378,015) (379,469) (380,923) (359,248)
Tangible common stockholders' equity$ 744,104 $ 712,696 $ 692,515 $ 665,080 $ 655,341
Shares of common stock outstanding 31,267,614 30,415,980 30,324,499 30,278,432 29,939,698
Book value per common share$ 36.69 $ 35.86 $ 35.35 $ 34.55 $ 33.89
Tangible book value per common share$ 23.80 $ 23.43 $ 22.84 $ 21.97 $ 21.89


Simmons First National Corporation SFNC
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date
For the Quarters Ended
(Unaudited) Sept 30 Jun 30 Mar 31 Dec 31 Sept 30
2016 2016 2016 2015 2015
($ in thousands)
Calculation of Core Return on Average Assets
Net income available to common stockholders$23,429 $22,909 $23,481 $23,782 $21,598
Net nonrecurring items, net of taxes, adjustment 953 2,182 (296) 2,131 3,967
Core earnings$ 24,382 $ 25,091 $ 23,185 $ 25,913 $ 25,565
Average total assets$ 7,703,837 $ 7,522,133 $ 7,499,185 $ 7,550,569 $ 7,607,767
Return on average assets 1.21% 1.22% 1.26% 1.25% 1.13%
Core return on average assets 1.26% 1.34% 1.24% 1.36% 1.33%
Calculation of Return on Tangible Common Equity
Net income available to common stockholders$23,429 $22,909 $23,481 $23,782 $21,598
Amortization of intangibles, net of taxes 913 882 884 813 769
Total income available to common stockholders$ 24,342 $ 23,791 $ 24,365 $ 24,595 $ 22,367
Net nonrecurring items, net of taxes 953 2,182 (296) 2,131 3,967
Core earnings 24,382 25,091 23,185 25,913 25,565
Amortization of intangibles, net of taxes 913 882 884 813 769
Total core income available to common stockholders$ 25,295 $ 25,973 $ 24,069 $ 26,726 $ 26,334
Average common stockholders' equity$1,114,252 $1,086,618 $1,065,296 $1,031,710 $1,013,289
Average intangible assets:
Goodwill (332,893) (327,686) (327,686) (320,216) (314,344)
Other intangibles (50,893) (51,043) (52,498) (44,302) (45,712)
Total average intangibles (383,786) (378,729) (380,184) (364,518) (360,056)
Average tangible common stockholders' equity$ 730,466 $ 707,889 $ 685,112 $ 667,192 $ 653,233
Return on average common equity 8.36% 8.48% 8.87% 9.15% 8.46%
Return on tangible common equity 13.26% 13.52% 14.30% 14.62% 13.58%
Core return on average common equity 8.71% 9.29% 8.75% 9.96% 10.01%
Core return on tangible common equity 13.78% 14.76% 14.13% 15.89% 15.99%
Calculation of Efficiency Ratio (1)
Non-interest expense$62,434 $64,137 $61,789 $67,806 $67,495
Nonrecurring non-interest expense adjustment (1,742) (3,591) (107) (3,506) (1,320)
Other real estate and foreclosure expense adjustment (1,787) (967) (966) (1,167) (2,297)
Amortization of intangibles adjustment (1,503) (1,451) (1,455) (1,337) (1,265)
Efficiency ratio numerator$ 57,402 $ 58,128 $ 59,261 $ 61,796 $ 62,613
Net-interest income$68,063 $66,583 $70,232 $73,751 $78,676
Non-interest income 36,876 36,888 29,503 28,649 23,072
Nonrecurring non-interest income adjustment (175) - (594) - 5,207
Fully tax-equivalent adjustment 2,181 2,105 2,084 2,185 2,172
(Gain) loss on sale of securities (315) (3,759) (329) (305) (40)
Efficiency ratio denominator$ 106,630 $ 101,817 $ 100,896 $ 104,280 $ 109,087
Efficiency ratio (1) 53.83% 57.09% 58.73% 59.26% 57.40%
Calculation of Core Net Interest Margin
Net interest income$68,063 $66,583 $70,232 $73,751 $78,676
Fully tax-equivalent adjustment 2,181 2,105 2,084 2,185 2,172
Fully tax-equivalent net interest income 70,244 68,688 72,316 75,936 80,848
Total accretable yield (4,928) (4,700) (8,077) (11,076) (14,928)
Core net interest income$ 65,316 $ 63,988 $ 64,239 $ 64,860 $ 65,920
Average earning assets$ 6,825,019 $ 6,625,642 $ 6,597,389 $ 6,652,486 $ 6,660,434
Net interest margin 4.09% 4.17% 4.41% 4.53% 4.82%
Core net interest margin 3.81% 3.88% 3.92% 3.87% 3.93%
Calculation of Core Loan Yield
Loan interest income$65,078 $63,009 $66,678 $70,511 $76,432
Total accretable yield (4,928) (4,700) (8,077) (11,076) (14,928)
Core loan interest income$ 60,150 $ 58,309 $ 58,601 $ 59,435 $ 61,504
Average loan balance$ 5,105,474 $ 4,957,888 $ 4,889,685 $ 4,868,283 $ 4,835,068
Core loan yield 4.69% 4.73% 4.82% 4.84% 5.05%
(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) Sept 30 Jun 30 Mar 31 Dec 31 Sept 30
2016 2016 2016 2015 2015
($ in thousands)
Calculation of Core Return on Average Assets
Net income available to common stockholders$69,819 $46,390 $23,481 $74,107 $50,325
Net nonrecurring items, net of taxes, adjustment 2,839 1,886 (296) 15,515 13,384
Core earnings$ 72,658 $ 48,276 $ 23,185 $ 89,622 $ 63,709
Average total assets$ 7,575,053 $ 7,510,657 $ 7,499,185 $ 7,164,788 $ 7,036,535
Return on average assets 1.23% 1.24% 1.26% 1.03% 0.96%
Core return on average assets 1.28% 1.29% 1.24% 1.25% 1.21%
Calculation of Return on Tangible Common Equity
Net income available to common stockholders$69,819 $46,390 $23,481 $74,107 $50,325
Amortization of intangibles, net of taxes 2,679 1,766 884 2,972 2,159
Total income available to common stockholders$ 72,498 $ 48,156 $ 24,365 $ 77,079 $ 52,484
Net nonrecurring items, net of taxes 2,839 1,886 (296) 15,515 13,384
Core earnings 72,658 48,276 23,185 89,622 63,709
Amortization of intangibles, net of taxes 2,679 1,766 884 2,972 2,159
Total core income available to common stockholders$ 75,337 $ 50,042 $ 24,069 $ 92,594 $ 65,868
Average common stockholders' equity$1,088,723 $1,075,957 $1,065,296 $938,521 $907,458
Average intangible assets:
Goodwill (329,422) (327,686) (327,686) (281,133) (268,106)
Other intangibles (51,478) (51,771) (52,498) (42,104) (41,372)
Total average intangibles (380,900) (379,457) (380,184) (323,237) (309,478)
Average tangible common stockholders' equity$ 707,823 $ 696,500 $ 685,112 $ 615,284 $ 597,980
Return on average common equity 8.57% 8.67% 8.87% 7.90% 7.41%
Return on tangible common equity 13.68% 13.90% 14.30% 12.53% 11.73%
Core return on average common equity 8.91% 9.02% 8.75% 9.55% 9.39%
Core return on tangible common equity 14.22% 14.45% 14.13% 15.05% 14.73%
Calculation of Efficiency Ratio (1)
Non-interest expense$188,360 $125,931 $61,789 $256,970 $189,166
Nonrecurring non-interest expense adjustment (5,440) (3,698) (107) (18,747) (15,241)
Other real estate and foreclosure expense adjustment (3,720) (1,934) (966) (4,861) (3,694)
Amortization of intangibles adjustment (4,409) (2,906) (1,455) (4,889) (3,552)
Efficiency ratio numerator$ 174,791 $ 117,393 $ 59,261 $ 228,473 $ 166,679
Net-interest income$204,878 $136,814 $70,232 $278,595 $204,844
Non-interest income 103,267 66,397 29,503 94,661 66,014
Nonrecurring non-interest income adjustment (769) (594) (594) 5,731 5,731
Fully tax-equivalent adjustment 6,370 4,189 2,084 8,517 6,332
(Gain) loss on sale of securities (4,403) (4,088) (329) (307) (2)
Efficiency ratio denominator$ 309,343 $ 202,718 $ 100,896 $ 387,197 $ 282,919
Efficiency ratio (1) 56.50% 57.91% 58.73% 59.01% 58.91%
Calculation of Core Net Interest Margin
Net interest income$204,878 $136,814 $70,232 $278,595 $204,844
Fully tax-equivalent adjustment 6,370 4,189 2,084 8,517 6,332
Fully tax-equivalent net interest income 211,248 141,003 72,316 287,112 211,176
Total accretable yield (17,705) (12,777) (8,077) (46,131) (35,055)
Core net interest income$ 193,543 $ 128,226 $ 64,239 $ 240,981 $ 176,121
Average earning assets$ 6,682,683 $ 6,611,516 $ 6,597,389 $ 6,305,966 $ 6,170,521
Net interest margin 4.22% 4.29% 4.41% 4.55% 4.58%
Core net interest margin 3.87% 3.90% 3.92% 3.82% 3.82%
Calculation of Core Loan Yield
Loan interest income$194,765 $129,688 $66,678 $268,367 $197,857
Total accretable yield (17,705) (12,777) (8,077) (46,131) (35,055)
Core loan interest income$ 177,060 $ 116,911 $ 58,601 $ 222,236 $ 162,802
Average loan balance$ 4,984,349 $ 4,923,787 $ 4,889,685 $ 4,434,074 $ 4,289,339
Core loan yield 4.75% 4.77% 4.82% 5.01% 5.07%
(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