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Simmons Reports Fourth Quarter Net Income of $27 Million

PINE BLUFF, Ark., Jan. 18, 2017 (GLOBE NEWSWIRE) -- Simmons First National Corp. (NASDAQ:SFNC) today announced net income available to common shareholders of $27.0 million for the fourth quarter of 2016, an increase of $3.2 million, or 13.4 percent, compared with the same quarter last year. Diluted earnings per share were $0.85, an increase of $0.07, or 9.0 percent.

Included in fourth quarter 2016 results were $1.8 million in net after-tax merger-related and branch right-sizing costs. Excluding the impact of these items, core earnings were $28.8 million for the fourth quarter of 2016 and diluted core earnings per share were $0.91.

Year-to-date net income was $96.8 million, an increase of $22.7 million, or 30.6 percent, compared with the same period of 2015. Year-to-date diluted earnings per share were $3.13, an increase of $0.50, or 19.0 percent. Year-to-date core earnings were $101.4 million, or $3.28 diluted core earnings per share.

“We are very pleased with our results during the fourth quarter. Our associates are beginning to leverage our size and integrate more of our services in markets previously unserved,” said George A. Makris Jr., chairman and CEO. “We are excited about our future related to our previously announced mergers. Simmons Bank will enter new and very attractive markets as a result of the Bank SNB merger and will be able to expand in our current markets with the First South Bank merger. We look forward to significant growth from these mergers.”

Loans

Total loans, including those acquired, were $5.6 billion at Dec. 31, 2016, an increase of $714 million, or 14.5 percent, compared with the same period in 2016. Legacy loans (all loans excluding acquired loans) grew $1.1 billion, or 33.3 percent. On a linked quarter basis, total loan growth was $232 million, including a reduction in agricultural production loans of $53 million.

Deposits

At Dec. 31, 2016, total deposits were $6.7 billion, an increase of $649 million, or 10.7 percent, compared with the same period in 2015. Total non-time deposits were $5.4 billion, an increase of $682 million, or 14.3 percent, and comprised 81 percent of total deposits.

Net Interest Income

The company’s net interest income for the fourth quarter of 2016 was $74.3 million, an increase of $577,000, or 0.8 percent, from the same period of 2015. The net interest income was impacted by a $4.5 million decline in yield accretion on acquired loans. Included in interest income was the yield accretion recognized on acquired loans of $6.6 million and $11.1 million for the fourth quarter of 2016 and 2015, respectively. Net interest margin was 4.12 percent for the quarter ended Dec. 31, 2016, a 41 basis-point decline from the same quarter of 2015. The company’s core net interest margin, excluding the accretion, was 3.76 percent for the fourth quarter of 2016, an 11 basis-point decline from the same quarter of 2015.

Provision for Loan Losses

Provision for loan losses for the fourth quarter of 2016 was $4.3 million, an increase of $1.1 million compared with the fourth quarter of 2015. The provision increase was necessary in order to maintain an appropriate allowance for loan losses for the company’s growing legacy loan portfolio.

Non-Interest Income

Non-interest income for the fourth quarter was $36.1 million, an increase of $7.5 million compared with the fourth quarter of 2015. The increase in non-interest income was due to additional mortgage lending, trust income, debit and credit card income.

Non-Interest Expense

Non-interest expense for the fourth quarter of 2016 was $66.7 million, a decrease of $1.1 million compared with the fourth quarter of 2015. Included in the quarter were $2.8 million of merger-related expenses. Salaries and benefits decreased by $5.7 million, or 14.5 percent, compared with the same quarter of 2015. This decrease was partially offset by increases in occupancy expenses and other operating expenses related to our recent acquisition and the restructuring of our compliance and risk areas in preparation for growth.

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 Dec. 31, 2016, the allowance for loan losses for legacy loans was $36.3 million. The company's allowance for loan losses on legacy loans at Dec. 31, 2016 was 0.84 percent of total loans and 92 percent of non-performing loans. In the legacy portfolio, non-performing loans as a percent of total loans were 0.91 percent.

The allowance for loan losses for acquired loans was $1.0 million and the acquired loan discount credit mark was $35.5 million. The allowances for loan losses and credit marks provide a total of $72.7 million of coverage, which equates to a total coverage ratio of 1.3 percent of gross loans. The ratio of credit mark and related allowance to acquired loans was 2.7 percent.

The 2016 year-to-date net charge-off ratio, excluding credit cards, was 35 basis points, and the year-to-date credit card charge-off ratio was 1.28 percent.

Capital

At Dec. 31, 2016, common stockholders' equity was $1.2 billion, book value per share was $36.80 and tangible book value per share was $23.97. The company's ratio of stockholders' equity to total assets was 13.7 percent and its ratio of tangible common equity to tangible assets was 9.4 percent.

Simmons First National Corporation

Simmons First National Corp. is a financial holding company, headquartered in Pine Bluff, Ark., with total assets of $8.4 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 live conference call to review this information beginning at 11 a.m. CST on Thursday, Jan. 19, 2017. 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 Corp. conference call, conference ID 46453886. 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 non-core 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 Corp.’s financial results is included in its Form 10-K filing with the Securities and Exchange Commission.

Simmons First National Corporation SFNC
Consolidated End of Period Balance Sheets
For the Quarters Ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
(Unaudited) 2016 2016 2016 2016 2015
($ in thousands)
ASSETS
Cash and non-interest bearing balances due from banks $ 117,007 $ 112,572 $ 96,037 $ 118,468 $ 97,656
Interest bearing balances due from banks 168,652 324,951 151,570 100,593 154,606
Federal funds sold - 17,000 3,000 4,000 -
Cash and cash equivalents 285,659 454,523 250,607 223,061 252,262
Interest bearing balances due from banks - time 4,563 4,393 9,781 11,188 14,107
Investment securities - held-to-maturity 462,096 496,594 632,154 674,502 705,373
Investment securities - available-for-sale 1,157,354 1,024,206 821,372 857,673 821,407
Mortgage loans held for sale 27,788 28,069 30,529 24,563 30,265
Assets held in trading accounts 41 2,969 7,321 7,074 4,422
Loans:
Legacy loans 4,327,207 3,943,089 3,725,422 3,472,691 3,246,454
Allowance for loan losses (36,286) (34,094) (33,523) (32,681) (31,351)
Loans acquired (net of discount and allowance) 1,305,683 1,458,198 1,288,435 1,457,370 1,672,901
Net loans 5,596,604 5,367,193 4,980,334 4,897,380 4,888,004
Premises and equipment 199,359 192,523 183,362 192,327 193,618
Premises held for sale 6,052 6,732 6,167 2,364 923
Foreclosed assets 26,895 30,396 30,529 41,126 44,820
Interest receivable 27,788 27,390 24,150 23,545 25,793
Bank owned life insurance 138,620 138,298 130,943 130,092 131,536
Goodwill 348,505 348,769 327,686 327,686 327,686
Other intangible assets 52,959 54,268 50,329 51,783 53,237
Other assets 65,773 50,669 48,955 72,589 66,205
Total assets $ 8,400,056 $ 8,226,992 $ 7,534,219 $ 7,536,953 $ 7,559,658
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts $ 1,491,676 $ 1,473,420 $ 1,283,426 $ 1,274,816 $ 1,280,234
Interest bearing transaction accounts and savings deposits 3,956,483 3,815,939 3,538,808 3,524,808 3,485,845
Time deposits less than $100,000 686,780 653,105 643,081 674,915 694,262
Time deposits greater than $100,000 600,280 674,917 562,888 605,236 625,755
Total deposits 6,735,219 6,617,381 6,028,203 6,079,775 6,086,096
Federal funds purchased and securities sold
under agreements to repurchase 115,029 124,289 103,038 97,429 99,398
Other borrowings 273,159 215,276 191,827 176,829 162,289
Subordinated debentures 60,397 60,290 60,184 60,077 60,570
Accrued interest and other liabilities 65,141 62,615 60,256 50,859 74,450
Total liabilities 7,248,945 7,079,851 6,443,508 6,464,969 6,482,803
Stockholders' equity:
Preferred stock - - - - 30,852
Common stock 313 313 304 303 303
Surplus 711,976 710,132 668,306 665,850 662,378
Undivided profits 454,034 434,579 417,863 402,265 385,987
Accumulated other comprehensive income (loss):
Unrealized appreciation (depreciation) on AFS securities (15,212) 2,117 4,238 3,566 (2,665)
Total stockholders' equity 1,151,111 1,147,141 1,090,711 1,071,984 1,076,855
Total liabilities and stockholders' equity $ 8,400,056 $ 8,226,992 $ 7,534,219 $ 7,536,953 $ 7,559,658

Simmons First National Corporation SFNC
Consolidated Statements of Income - Quarter-to-Date
For the Quarters Ended Dec 31Sep 30Jun 30Mar 31Dec 31
(Unaudited) 2016 2016 2016 2016 2015
($ in thousands, except per share data)
INTEREST INCOME
Loans $ 70,887$ 65,078$ 63,009$ 66,678$ 70,511
Federal funds sold 11 19 17 10 10
Investment securities 8,700 7,774 8,499 8,506 8,350
Mortgage loans held for sale 230 299 295 278 237
Assets held in trading accounts 3 4 3 6 6
Interest bearing balances due from banks 234 244 77 144 225
TOTAL INTEREST INCOME 80,065 73,418 71,900 75,622 79,339
INTEREST EXPENSE
Time deposits 2,023 1,767 1,741 1,636 1,858
Other deposits 2,032 1,965 2,035 2,018 2,105
Federal funds purchased and securities
sold under agreements to repurchase 90 59 59 65 60
Other borrowings 1,034 1,048 938 1,128 1,084
Subordinated debentures 558 516 544 543 481
TOTAL INTEREST EXPENSE 5,737 5,355 5,317 5,390 5,588
NET INTEREST INCOME 74,328 68,063 66,583 70,232 73,751
Provision for loan losses 4,332 8,294 4,616 2,823 3,230
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 69,996 59,769 61,967 67,409 70,521
NON-INTEREST INCOME
Trust income 4,282 3,873 3,656 3,631 2,725
Service charges on deposit accounts 8,666 8,771 7,661 7,316 8,104
Other service charges and fees 1,593 1,840 1,571 1,909 1,654
Mortgage lending income 7,013 5,760 5,877 3,792 2,298
Investment banking income 472 1,131 1,181 687 784
Debit and credit card fees 8,027 7,825 7,688 7,200 7,647
Bank owned life insurance income 895 606 826 997 614
Gain on sale of securities, net 1,445 315 3,759 329 305
Other income 3,722 6,755 4,669 3,642 4,518
TOTAL NON-INTEREST INCOME 36,115 36,876 36,888 29,503 28,649
NON-INTEREST EXPENSE
Salaries and employee benefits 33,797 31,784 33,103 34,773 39,523
Occupancy expense, net 4,516 4,690 4,990 4,471 3,418
Furniture and equipment expense 4,387 4,272 4,077 3,947 3,731
Other real estate and foreclosure expense 679 1,849 967 966 1,167
Deposit insurance 89 1,136 1,096 1,148 1,222
Merger-related costs 2,846 1,524 372 93 1,237
Other operating expenses 20,411 17,179 19,532 16,391 17,508
TOTAL NON-INTEREST EXPENSE 66,725 62,434 64,137 61,789 67,806
NET INCOME BEFORE INCOME TAXES 39,386 34,211 34,718 35,123 31,364
Provision for income taxes 12,415 10,782 11,809 11,618 7,505
NET INCOME 26,971 23,429 22,909 23,505 23,859
Preferred stock dividends - - - 24 77
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 26,971$ 23,429$ 22,909$ 23,481$ 23,782
BASIC EARNINGS PER SHARE $ 0.86$ 0.77$ 0.75$ 0.77$ 0.79
DILUTED EARNINGS PER SHARE $ 0.85$ 0.76$ 0.75$ 0.77$ 0.78

Simmons First National Corporation SFNC
Consolidated Risk-Based Capital
For the Quarters Ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
(Unaudited) 2016 2016 2016 2016 2015
($ in thousands)
Tier 1 capital
Stockholders' equity $ 1,151,111 $ 1,147,141 $ 1,090,711 $ 1,071,984 $ 1,076,855
Trust preferred securities, net allowable 60,397 60,290 60,184 60,077 60,570
Disallowed intangible assets, net of deferred tax (354,028) (354,582) (334,395) (335,166) (331,931)
Unrealized loss (gain) on AFS securities 15,212 (2,117) (4,238) (3,566) 2,665
Other 15 - - - -
Total Tier 1 capital 872,707 850,732 812,262 793,329 808,159
Tier 2 capital
Qualifying allowance for loan losses and
reserve for unfunded commitments 40,241 38,050 37,240 36,398 35,068
Total Tier 2 capital 40,241 38,050 37,240 36,398 35,068
Total risk-based capital $ 912,948 $ 888,782 $ 849,502 $ 829,727 $ 843,227
Common equity
Tier 1 capital $ 872,707 $ 850,732 $ 812,262 $ 793,329 $ 808,159
Less: Non-cumulative preferred stock - - - - (30,852)
Less: Trust preferred securities (60,397) (60,290) (60,184) (60,077) (60,570)
Total common equity $ 812,310 $ 790,442 $ 752,078 $ 733,252 $ 716,737
Risk weighted assets $ 6,039,034 $ 5,724,052 $ 5,343,355 $ 5,293,395 $ 5,044,453
Adjusted average assets for leverage ratio $ 7,966,681 $ 7,355,702 $ 7,185,633 $ 7,167,839 $ 7,218,559
Ratios at end of quarter
Equity to assets 13.70% 13.94% 14.48% 14.22% 14.24%
Tangible common equity to tangible assets (1) 9.37% 9.51% 9.96% 9.68% 9.26%
Common equity Tier 1 ratio (CET1) 13.45% 13.81% 14.08% 13.85% 14.21%
Tier 1 leverage ratio 10.95% 11.57% 11.30% 11.07% 11.20%
Tier 1 risk-based capital ratio 14.45% 14.86% 15.20% 14.99% 16.02%
Total risk-based capital ratio 15.12% 15.53% 15.90% 15.67% 16.72%
(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 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
(Unaudited) 2016 2016 2016 2016 2015
($ in thousands)
Legacy Loan Portfolio - End of Period (1)
Consumer
Credit cards $ 184,591 $ 175,032 $ 171,468 $ 167,803 $ 177,288
Other consumer 303,972 275,947 248,018 227,480 208,380
Total consumer 488,563 450,979 419,486 395,283 385,668
Real Estate
Construction 336,759 304,082 330,666 300,042 279,740
Single-family residential 904,245 841,958 785,289 746,754 696,180
Other commercial 1,787,075 1,521,132 1,414,663 1,327,372 1,229,072
Total real estate 3,028,079 2,667,172 2,530,618 2,374,168 2,204,992
Commercial
Commercial 639,525 607,738 577,771 551,695 500,116
Agricultural 150,378 203,529 187,047 143,033 148,563
Total commercial 789,903 811,267 764,818 694,728 648,679
Other 20,662 13,671 10,500 8,512 7,115
Total Loans $ 4,327,207 $ 3,943,089 $ 3,725,422 $ 3,472,691 $ 3,246,454
(1) Excludes all acquired loans.
Investment Securities - End of Period
Held-to-Maturity
U.S. Government agencies $ 76,875 $ 80,849 $ 199,505 $ 223,484 $ 237,139
Mortgage-backed securities 19,773 21,454 22,612 23,734 24,774
State and political subdivisions 362,532 391,495 407,273 424,586 440,676
Other securities 2,916 2,796 2,765 2,698 2,784
Total held-to-maturity 462,096 496,594 632,155 674,502 705,373
Available-for-Sale
U.S. Treasury $ 300 $ 63,985 $ 4,305 $ 4,302 $ 3,994
U.S. Government agencies 137,771 148,781 58,113 78,308 120,237
Mortgage-backed securities 868,324 699,748 652,425 722,982 647,425
State and political subdivisions 102,943 67,019 64,836 11,260 9,874
FHLB stock 12,235 11,235 8,781 7,838 7,823
Other securities 35,781 33,438 32,911 32,983 32,054
Total available-for-sale 1,157,354 1,024,206 821,371 857,673 821,407
Total investment securities $ 1,619,450 $ 1,520,800 $ 1,453,526 $ 1,532,175 $ 1,526,780
Fair value - HTM investment securities $ 465,960 $ 508,910 $ 647,293 $ 686,835 $ 713,371
Investment Securities - QTD Average
Taxable securities $ 1,146,703 $ 963,150 $ 1,059,802 $ 1,067,302 $ 1,043,268
Tax exempt securities 467,757 466,782 443,492 439,370 463,631
Total investment securities - QTD average $ 1,614,460 $ 1,429,932 $ 1,503,294 $ 1,506,672 $ 1,506,899

Simmons First National Corporation SFNC
Consolidated Loans and Credit Coverage
For the Quarters Ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
(Unaudited) 2016 2016 2016 2016 2015
($ in thousands)
LOANS
Legacy loans $ 4,327,207 $ 3,943,089 $ 3,725,422 $ 3,472,691 $ 3,246,454
Allowance for loan losses (legacy loans) (36,286) (34,094) (33,523) (32,681) (31,351)
Legacy loans (net of allowance) 4,290,921 3,908,995 3,691,899 3,440,010 3,215,103
Loans acquired 1,342,099 1,502,051 1,327,683 1,503,482 1,729,557
Credit discount (35,462) (42,899) (38,294) (45,158) (55,702)
Allowance for loan losses (loans acquired) (954) (954) (954) (954) (954)
Loans acquired (net of discount and allowance) 1,305,683 1,458,198 1,288,435 1,457,370 1,672,901
Net loans $ 5,596,604 $ 5,367,193 $ 4,980,334 $ 4,897,380 $ 4,888,004
Loan Coverage Ratios
Allowance for loan losses to legacy loans 0.84% 0.86% 0.90% 0.94% 0.97%
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) 2.71% 2.92% 2.96% 3.07% 3.28%
Total allowance and credit coverage (non-GAAP) (1) 1.28% 1.43% 1.44% 1.58% 1.77%
(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 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
(Unaudited) 2016 2016 2016 2016 2015
($ in thousands)
Allowance for Loan Losses (Legacy Loans)
Balance, beginning of quarter $ 34,094 $ 33,523 $ 32,681 $ 31,351 $ 30,380
Loans charged off
Credit cards 935 699 702 859 757
Other consumer 493 600 489 393 489
Real estate 167 6,297 824 229 845
Commercial 913 284 2,283 476 654
Total loans charged off 2,508 7,880 4,298 1,957 2,745
Recoveries of loans previously charged off
Credit cards 213 199 253 242 223
Other consumer 158 106 149 103 140
Real estate 73 55 111 112 120
Commercial 28 12 318 7 3
Total recoveries 472 372 831 464 486
Net loans charged off 2,036 7,508 3,467 1,493 2,259
Provision for loan losses 4,228 8,079 4,309 2,823 3,230
Balance, end of quarter $ 36,286 $ 34,094 $ 33,523 $ 32,681 $ 31,351
Non-performing assets (1) (2)
Non-performing loans
Nonaccrual loans 39,104 37,392 43,305 34,244 17,714
Loans past due 90 days or more 299 144 227 881 1,191
Total non-performing loans 39,403 37,536 43,532 35,125 18,905
Other non-performing assets
Foreclosed assets held for sale (2) 26,895 30,396 30,529 41,126 44,820
Other non-performing assets 471 621 519 256 211
Total other non-performing assets 27,366 31,017 31,048 41,382 45,031
Total non-performing assets $ 66,769 $ 68,553 $ 74,580 $ 76,507 $ 63,936
Performing TDRs (troubled debt restructurings) $ 10,998 $ 13,604 $ 10,887 $ 10,759 $ 3,031
Ratios (1) (2)
Allowance for loan losses to total loans 0.84% 0.86% 0.90% 0.94% 0.97%
Allowance for loan losses to non-performing loans 92% 91% 77% 93% 166%
Non-performing loans to total loans 0.91% 0.95% 1.17% 1.01% 0.58%
Non-performing assets (including performing TDRs)
to total assets 0.93% 1.00% 1.13% 1.16% 0.89%
Non-performing assets to total assets 0.79% 0.83% 0.99% 1.02% 0.85%
Annualized net charge offs to total loans 0.20% 0.82% 0.39% 0.18% 0.31%
Annualized net credit card charge offs to
total credit card loans 1.66% 1.14% 1.07% 1.46% 1.22%
Annualized net charge offs to total loans
(excluding credit cards) 0.14% 0.81% 0.36% 0.11% 0.25%
(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
Dec 2016
Three Months Ended
Sep 2016
Three Months Ended
Dec 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$ 243,396$ 2340.38% $ 246,818$ 2440.39% $ 247,930$ 2250.36%
Federal funds sold 5,381 110.81% 6,431 191.18% 1,930 102.06%
Investment securities - taxable 1,236,864 5,6811.83% 1,038,437 4,7751.83% 1,053,874 4,9411.86%
Investment securities - non-taxable (FTE) 377,596 4,9595.22% 391,495 4,9265.01% 453,025 5,5704.88%
Mortgage loans held for sale 23,307 2303.93% 31,256 2993.81% 21,294 2374.42%
Assets held in trading accounts 1,774 30.67% 5,108 40.31% 6,150 60.39%
Loans, including acquired loans 5,484,918 70,9415.15% 5,105,474 65,1205.07% 4,868,283 70,5355.75%
Total interest earning assets (FTE) 7,373,236 82,0594.43% 6,825,019 75,3874.39% 6,652,486 81,5244.86%
Non-earning assets 935,222 878,818 898,083
Total assets$ 8,308,458 $ 7,703,837 $ 7,550,569
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Interest bearing transaction and
savings accounts$ 3,895,367$ 2,0320.21% $ 3,645,414$ 1,9650.21% $ 3,442,857$ 2,1050.24%
Time deposits 1,292,961 2,0230.62% 1,213,895 1,7670.58% 1,338,416 1,8580.55%
Total interest bearing deposits 5,188,328 4,0550.31% 4,859,309 3,7320.31% 4,781,273 3,9630.33%
Federal funds purchased and securities
sold under agreement to repurchase 124,323 900.29% 105,576 590.22% 108,389 600.22%
Other borrowings 203,615 1,0342.02% 192,453 1,0482.17% 167,167 1,0842.57%
Subordinated debentures 60,345 5583.68% 60,238 5163.41% 61,697 4813.09%
Total interest bearing liabilities 5,576,611 5,7370.41% 5,217,576 5,3550.41% 5,118,526 5,5880.43%
Non-interest bearing liabilities:
Non-interest bearing deposits 1,515,853 1,322,818 1,295,713
Other liabilities 59,061 49,191 73,768
Total liabilities 7,151,525 6,589,585 6,488,007
Stockholders' equity 1,156,933 1,114,252 1,062,562
Total liabilities and stockholders' equity$ 8,308,458 $ 7,703,837 $ 7,550,569
Net interest income (FTE) $ 76,322 $ 70,032 $ 75,936
Net interest spread (FTE) 4.02% 3.98% 4.43%
Net interest margin (FTE) - quarter-to-date 4.12% 4.08% 4.53%
Net interest margin (FTE) - year-to-date 4.19% 4.21% 4.55%
Core net interest margin (FTE) - quarter-to-date (1) 3.76% 3.79% 3.87%
Core loan yield (FTE) - quarter-to-date (1) 4.67% 4.69% 4.84%
Core net interest margin (FTE) - year-to-date (1) 3.83% 3.86% 3.82%
Core loan yield (FTE) - year-to-date (1) 4.72% 4.75% 5.01%
(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 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
(Unaudited) 2016 2016 2016 2016 2015
($ in thousands, except share data)
QUARTER-TO-DATE
Financial Highlights - GAAP
Net Income $ 26,971 $ 23,429 $ 22,909 $ 23,481 $ 23,782
Diluted earnings per share 0.85 0.76 0.75 0.77 0.78
Return on average assets 1.29% 1.21% 1.22% 1.26% 1.25%
Return on average common equity 9.27% 8.36% 8.48% 8.87% 9.15%
Return on tangible common equity 14.71% 13.26% 13.52% 14.30% 14.62%
Net interest margin (FTE) 4.12% 4.08% 4.14% 4.41% 4.53%
FTE adjustment 1,994 1,969 1,675 2,084 2,185
Amortization of intangibles 1,533 1,503 1,451 1,455 1,337
Amortization of intangibles, net of taxes 932 913 882 884 813
Average diluted shares outstanding 31,592,713 30,843,714 30,452,285 30,481,604 30,301,190
Cash dividends declared per common share 0.24 0.24 0.24 0.24 0.23
Financial Highlights - Core (non-GAAP)
Core earnings (excludes non-core items) (1) $ 28,751 $ 24,382 $ 25,091 $ 23,185 $ 25,913
Diluted core earnings per share (1) 0.91 0.79 0.82 0.76 0.86
Core net interest margin (FTE) (2) 3.76% 3.79% 3.86% 3.92% 3.87%
Efficiency ratio (1) 55.47% 53.94% 57.33% 58.73% 59.26%
Core return on average assets (1) 1.38% 1.26% 1.34% 1.24% 1.36%
Core return on average common equity (1) 9.89% 8.71% 9.29% 8.75% 9.96%
Core return on tangible common equity (1) 15.65% 13.78% 14.76% 14.13% 15.89%
YEAR-TO-DATE
Financial Highlights - GAAP
Net Income $ 96,790 $ 69,819 $ 46,390 $ 23,481 $ 74,107
Diluted earnings per share 3.13 2.28 1.52 0.77 2.63
Return on average assets 1.25% 1.23% 1.24% 1.26% 1.03%
Return on average common equity 8.75% 8.57% 8.67% 8.87% 7.90%
Return on tangible common equity 13.92% 13.68% 13.90% 14.30% 12.53%
Net interest margin (FTE) 4.19% 4.21% 4.28% 4.41% 4.55%
FTE adjustment 7,722 5,728 3,759 2,084 8,517
Amortization of intangibles 5,942 4,409 2,906 1,455 4,889
Amortization of intangibles, net of taxes 3,611 2,679 1,766 884 2,972
Average diluted shares outstanding 30,963,546 30,656,882 30,438,939 30,481,604 28,209,661
Cash dividends declared per common share 0.96 0.72 0.48 0.24 0.92
Financial Highlights - Core (non-GAAP)
Core earnings (excludes non-core items) (1) $ 101,409 $ 72,658 $ 48,276 $ 23,185 $ 89,622
Diluted core earnings per share (1) 3.28 2.37 1.59 0.76 3.18
Core net interest margin (FTE) (2) 3.83% 3.86% 3.89% 3.92% 3.82%
Efficiency ratio (1) 56.32% 56.62% 58.03% 58.73% 59.01%
Core return on average assets (1) 1.31% 1.28% 1.29% 1.24% 1.25%
Core return on average common equity (1) 9.17% 8.91% 9.02% 8.75% 9.55%
Core return on tangible common equity (1) 14.56% 14.22% 14.45% 14.13% 15.05%
END OF PERIOD
Book value per share $ 36.80 $ 36.69 $ 35.86 $ 35.35 $ 34.55
Tangible book value per share 23.97 23.80 23.43 22.84 21.97
Shares outstanding 31,279,401 31,267,614 30,415,980 30,324,499 30,278,432
Full-time equivalent employees 1,875 1,985 1,880 1,931 1,946
Total number of ATM's 186 186 174 185 182
Total number of financial centers 150 150 140 149 149
(1) Core earnings exclude non-core 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 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
(Unaudited) 2016 2016 2016 2016 2015
($ in thousands, except per share data)
QUARTER-TO-DATE
Net Income $ 26,971 $ 23,429 $ 22,909 $ 23,481 $ 23,782
Non-core items
Accelerated vesting on retirement agreements - - - - 2,209
Gain from early retirement of trust preferred securities - - - (594) -
Merger-related costs 2,846 1,524 372 93 1,237
Branch right-sizing 83 43 3,219 14 60
Tax effect (1) (1,149) (614) (1,409) 191 (1,375)
Net non-core items 1,780 953 2,182 (296) 2,131
Core earnings (non-GAAP) $ 28,751 $ 24,382 $ 25,091 $ 23,185 $ 25,913
Diluted earnings per share $ 0.85 $ 0.76 $ 0.75 $ 0.77 $ 0.78
Non-core items
Accelerated vesting on retirement agreements - - - - 0.08
Gain from early retirement of trust preferred securities - - - (0.02) -
Merger-related costs 0.09 0.05 0.01 - 0.05
Branch right-sizing - - 0.11 - -
Tax effect (1) (0.03) (0.02) (0.05) 0.01 (0.05)
Net non-core items 0.06 0.03 0.07 (0.01) 0.08
Core earnings (non-GAAP) $ 0.91 $ 0.79 $ 0.82 $ 0.76 $ 0.86
YEAR-TO-DATE
Net Income $ 96,790 $ 69,819 $ 46,390 $ 23,481 $ 74,107
Non-core 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) (594) (594) (594) -
Loss on FDIC loss-share termination - - - - 7,476
Merger-related costs 4,835 1,989 465 93 13,760
Branch right-sizing 3,359 3,276 3,233 14 3,144
Tax effect (1) (2,981) (1,832) (1,218) 191 (8,964)
Net non-core items 4,619 2,839 1,886 (296) 15,515
Core earnings (non-GAAP) $ 101,409 $ 72,658 $ 48,276 $ 23,185 $ 89,622
Diluted earnings per share $ 3.13 $ 2.28 $ 1.52 $ 0.77 $ 2.63
Non-core 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) (0.02) (0.02) (0.02) -
Loss on FDIC loss-share termination - - - - 0.27
Merger-related costs 0.16 0.06 0.02 - 0.49
Branch right-sizing 0.11 0.11 0.11 - 0.11
Tax effect (1) (0.10) (0.06) (0.04) 0.01 (0.33)
Net non-core items 0.15 0.09 0.07 (0.01) 0.55
Core earnings (non-GAAP) $ 3.28 $ 2.37 $ 1.59 $ 0.76 $ 3.18
(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) Dec 31 Sept 30 Jun 30 Mar 31 Dec 31
2016 2016 2016 2016 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$ 1,151,111 $ 1,147,141 $ 1,090,711 $ 1,071,984 $ 1,076,855
Preferred stock - - - - (30,852)
Total common stockholders' equity 1,151,111 1,147,141 1,090,711 1,071,984 1,046,003
Intangible assets:
Goodwill (348,505) (348,769) (327,686) (327,686) (327,686)
Other intangible assets (52,959) (54,268) (50,329) (51,783) (53,237)
Total intangibles (401,464) (403,037) (378,015) (379,469) (380,923)
Tangible common stockholders' equity$ 749,647 $ 744,104 $ 712,696 $ 692,515 $ 665,080
Total assets$ 8,400,056 $ 8,226,992 $ 7,534,219 $ 7,536,953 $ 7,559,658
Intangible assets:
Goodwill (348,505) (348,769) (327,686) (327,686) (327,686)
Other intangible assets (52,959) (54,268) (50,329) (51,783) (53,237)
Total intangibles (401,464) (403,037) (378,015) (379,469) (380,923)
Tangible assets$ 7,998,592 $ 7,823,955 $ 7,156,204 $ 7,157,484 $ 7,178,735
Ratio of equity to assets 13.70% 13.94% 14.48% 14.22% 14.24%
Ratio of tangible common equity to tangible assets 9.37% 9.51% 9.96% 9.68% 9.26%
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$ 35,462 $ 42,899 $ 38,294 $ 45,158 $ 55,702
Allowance for loan losses on acquired loans 954 954 954 954 954
Total credit discount and ALLL on acquired loans$ 36,416 $ 43,853 $ 39,248 $ 46,112 $ 56,656
Total loans acquired$ 1,342,099 $ 1,502,051 $ 1,327,683 $ 1,503,482 $ 1,729,557
Discount and ALLL on acquired loans to acquired loans 2.71% 2.92% 2.96% 3.07% 3.28%
Calculation of Total Allowance and Credit Coverage
Allowance for loan losses$ 36,286 $ 34,094 $ 33,523 $ 32,681 $ 31,351
Total credit discount and ALLL on acquired loans 36,416 43,853 39,248 46,112 56,656
Total allowance and credit discount$ 72,702 $ 77,947 $ 72,771 $ 78,793 $ 88,007
Total loans$ 5,669,306 $ 5,445,140 $ 5,053,105 $ 4,976,173 $ 4,976,011
Total allowance and credit coverage 1.28% 1.43% 1.44% 1.58% 1.77%
Calculation of Tangible Book Value per Share
Total common stockholders' equity$ 1,151,111 $ 1,147,141 $ 1,090,711 $ 1,071,984 $ 1,046,003
Intangible assets:
Goodwill (348,505) (348,769) (327,686) (327,686) (327,686)
Other intangible assets (52,959) (54,268) (50,329) (51,783) (53,237)
Total intangibles (401,464) (403,037) (378,015) (379,469) (380,923)
Tangible common stockholders' equity$ 749,647 $ 744,104 $ 712,696 $ 692,515 $ 665,080
Shares of common stock outstanding 31,279,401 31,267,614 30,415,980 30,324,499 30,278,432
Book value per common share$ 36.80 $ 36.69 $ 35.86 $ 35.35 $ 34.55
Tangible book value per common share$ 23.97 $ 23.80 $ 23.43 $ 22.84 $ 21.97

Simmons First National Corporation SFNC
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date
For the Quarters Ended
(Unaudited) Dec 31 Sept 30 Jun 30 Mar 31 Dec 31
2016 2016 2016 2016 2015
($ in thousands)
Calculation of Core Return on Average Assets
Net income available to common stockholders$ 26,971 $ 23,429 $ 22,909 $ 23,481 $ 23,782
Net non-core items, net of taxes, adjustment 1,780 953 2,182 (296) 2,131
Core earnings$ 28,751 $ 24,382 $ 25,091 $ 23,185 $ 25,913
Average total assets$ 8,308,458 $ 7,703,837 $ 7,522,133 $ 7,499,185 $ 7,550,569
Return on average assets 1.29% 1.21% 1.22% 1.26% 1.25%
Core return on average assets 1.38% 1.26% 1.34% 1.24% 1.36%
Calculation of Return on Tangible Common Equity
Net income available to common stockholders$ 26,971 $ 23,429 $ 22,909 $ 23,481 $ 23,782
Amortization of intangibles, net of taxes 932 913 882 884 813
Total income available to common stockholders$ 27,903 $ 24,342 $ 23,791 $ 24,365 $ 24,595
Net non-core items, net of taxes 1,780 953 2,182 (296) 2,131
Core earnings 28,751 24,382 25,091 23,185 25,913
Amortization of intangibles, net of taxes 932 913 882 884 813
Total core income available to common stockholders$ 29,683 $ 25,295 $ 25,973 $ 24,069 $ 26,726
Average common stockholders' equity$ 1,156,933 $ 1,114,252 $ 1,086,618 $ 1,065,296 $ 1,031,710
Average intangible assets:
Goodwill (348,597) (332,893) (327,686) (327,686) (320,216)
Other intangibles (53,646) (50,893) (51,043) (52,498) (44,302)
Total average intangibles (402,243) (383,786) (378,729) (380,184) (364,518)
Average tangible common stockholders' equity$ 754,690 $ 730,466 $ 707,889 $ 685,112 $ 667,192
Return on average common equity 9.27% 8.36% 8.48% 8.87% 9.15%
Return on tangible common equity 14.71% 13.26% 13.52% 14.30% 14.62%
Core return on average common equity 9.89% 8.71% 9.29% 8.75% 9.96%
Core return on tangible common equity 15.65% 13.78% 14.76% 14.13% 15.89%
Calculation of Efficiency Ratio (1)
Non-interest expense$ 66,725 $ 62,434 $ 64,137 $ 61,789 $ 67,806
Non-core non-interest expense adjustment (2,995) (1,742) (3,591) (107) (3,506)
Other real estate and foreclosure expense adjustment (669) (1,787) (967) (966) (1,167)
Amortization of intangibles adjustment (1,533) (1,503) (1,451) (1,455) (1,337)
Efficiency ratio numerator$ 61,528 $ 57,402 $ 58,128 $ 59,261 $ 61,796
Net-interest income$ 74,328 $ 68,063 $ 66,583 $ 70,232 $ 73,751
Non-interest income 36,115 36,876 36,888 29,503 28,649
Non-core non-interest income adjustment (66) (175) - (594) -
Fully tax-equivalent adjustment 1,994 1,969 1,675 2,084 2,185
(Gain) loss on sale of securities (1,445) (315) (3,759) (329) (305)
Efficiency ratio denominator$ 110,926 $ 106,418 $ 101,387 $ 100,896 $ 104,280
Efficiency ratio (1) 55.47% 53.94% 57.33% 58.73% 59.26%
Calculation of Core Net Interest Margin
Net interest income$ 74,328 $ 68,063 $ 66,583 $ 70,232 $ 73,751
Fully tax-equivalent adjustment 1,994 1,969 1,675 2,084 2,185
Fully tax-equivalent net interest income 76,322 70,032 68,258 72,316 75,936
Total accretable yield (6,552) (4,928) (4,700) (8,077) (11,076)
Core net interest income$ 69,770 $ 65,104 $ 63,558 $ 64,239 $ 64,860
Average earning assets$ 7,373,236 $ 6,825,019 $ 6,625,642 $ 6,597,389 $ 6,652,486
Net interest margin 4.12% 4.08% 4.14% 4.41% 4.53%
Core net interest margin 3.76% 3.79% 3.86% 3.92% 3.87%
Calculation of Core Loan Yield
Loan interest income$ 70,887 $ 65,078 $ 63,009 $ 66,678 $ 70,511
Total accretable yield (6,552) (4,928) (4,700) (8,077) (11,076)
Core loan interest income$ 64,335 $ 60,150 $ 58,309 $ 58,601 $ 59,435
Average loan balance$ 5,484,918 $ 5,105,474 $ 4,957,888 $ 4,889,685 $ 4,868,283
Core loan yield 4.67% 4.69% 4.73% 4.82% 4.84%
(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 non-core items.

Simmons First National Corporation SFNC
Reconciliation Of Non-GAAP Financial Measures - Year-to-Date
For the Quarters Ended
(Unaudited) Dec 31 Sept 30 Jun 30 Mar 31 Dec 31
2016 2016 2016 2016 2015
($ in thousands)
Calculation of Core Return on Average Assets
Net income available to common stockholders$ 96,790 $ 69,819 $ 46,390 $ 23,481 $ 74,107
Net non-core items, net of taxes, adjustment 4,619 2,839 1,886 (296) 15,515
Core earnings$ 101,409 $ 72,658 $ 48,276 $ 23,185 $ 89,622
Average total assets$ 7,760,233 $ 7,575,053 $ 7,510,657 $ 7,499,185 $ 7,164,788
Return on average assets 1.25% 1.23% 1.24% 1.26% 1.03%
Core return on average assets 1.31% 1.28% 1.29% 1.24% 1.25%
Calculation of Return on Tangible Common Equity
Net income available to common stockholders$ 96,790 $ 69,819 $ 46,390 $ 23,481 $ 74,107
Amortization of intangibles, net of taxes 3,611 2,679 1,766 884 2,972
Total income available to common stockholders$ 100,401 $ 72,498 $ 48,156 $ 24,365 $ 77,079
Net non-core items, net of taxes 4,619 2,839 1,886 (296) 15,515
Core earnings 101,409 72,658 48,276 23,185 89,622
Amortization of intangibles, net of taxes 3,611 2,679 1,766 884 2,972
Total core income available to common stockholders$ 105,020 $ 75,337 $ 50,042 $ 24,069 $ 92,594
Average common stockholders' equity$ 1,105,775 $ 1,088,723 $ 1,075,957 $ 1,065,296 $ 938,521
Average intangible assets:
Goodwill (332,974) (329,422) (327,686) (327,686) (281,133)
Other intangibles (51,710) (51,478) (51,771) (52,498) (42,104)
Total average intangibles (384,684) (380,900) (379,457) (380,184) (323,237)
Average tangible common stockholders' equity$ 721,091 $ 707,823 $ 696,500 $ 685,112 $ 615,284
Return on average common equity 8.75% 8.57% 8.67% 8.87% 7.90%
Return on tangible common equity 13.92% 13.68% 13.90% 14.30% 12.53%
Core return on average common equity 9.17% 8.91% 9.02% 8.75% 9.55%
Core return on tangible common equity 14.56% 14.22% 14.45% 14.13% 15.05%
Calculation of Efficiency Ratio (1)
Non-interest expense$ 255,085 $ 188,360 $ 125,931 $ 61,789 $ 256,970
Non-core non-interest expense adjustment (8,435) (5,440) (3,698) (107) (18,747)
Other real estate and foreclosure expense adjustment (4,389) (3,720) (1,934) (966) (4,861)
Amortization of intangibles adjustment (5,942) (4,409) (2,906) (1,455) (4,889)
Efficiency ratio numerator$ 236,319 $ 174,791 $ 117,393 $ 59,261 $ 228,473
Net-interest income$ 279,206 $ 204,878 $ 136,814 $ 70,232 $ 278,595
Non-interest income 139,382 103,267 66,397 29,503 94,661
Non-core non-interest income adjustment (835) (769) (594) (594) 5,731
Fully tax-equivalent adjustment 7,722 5,728 3,759 2,084 8,517
(Gain) loss on sale of securities (5,848) (4,403) (4,088) (329) (307)
Efficiency ratio denominator$ 419,627 $ 308,701 $ 202,288 $ 100,896 $ 387,197
Efficiency ratio (1) 56.32% 56.62% 58.03% 58.73% 59.01%
Calculation of Core Net Interest Margin
Net interest income$ 279,206 $ 204,878 $ 136,814 $ 70,232 $ 278,595
Fully tax-equivalent adjustment 7,722 5,728 3,759 2,084 8,517
Fully tax-equivalent net interest income 286,928 210,606 140,573 72,316 287,112
Total accretable yield (24,257) (17,705) (12,777) (8,077) (46,131)
Core net interest income$ 262,671 $ 192,901 $ 127,796 $ 64,239 $ 240,981
Average earning assets$ 6,855,322 $ 6,682,683 $ 6,611,516 $ 6,597,389 $ 6,305,966
Net interest margin 4.19% 4.21% 4.28% 4.41% 4.55%
Core net interest margin 3.83% 3.86% 3.89% 3.92% 3.82%
Calculation of Core Loan Yield
Loan interest income$ 265,652 $ 194,765 $ 129,688 $ 66,678 $ 268,367
Total accretable yield (24,257) (17,705) (12,777) (8,077) (46,131)
Core loan interest income$ 241,395 $ 177,060 $ 116,911 $ 58,601 $ 222,236
Average loan balance$ 5,109,492 $ 4,984,349 $ 4,923,787 $ 4,889,685 $ 4,434,074
Core loan yield 4.72% 4.75% 4.77% 4.82% 5.01%
(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 non-core 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