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Simmons Reports First Quarter Net Income of $22 Million

PINE BLUFF, Ark., April 19, 2017 (GLOBE NEWSWIRE) -- Simmons First National Corp. (NASDAQ:SFNC) today announced net income available to common shareholders of $22.1 million for the first quarter of 2017, a decrease of $1.4 million compared with the same quarter last year. Diluted earnings per share were $0.70, a decrease of $0.07.

Included in first quarter 2017 results were $412,000 in net after-tax merger-related and branch right-sizing costs. Excluding the impact of these items, core earnings were $22.5 million for the quarter and diluted core earnings per share were $0.71.

“We are satisfied with our operating results during the first quarter,” said George A. Makris Jr., chairman and CEO. “We continue to experience excellent loan growth throughout our market. While our core expense control remains relatively stable, our non-interest income experienced some usual seasonal declines along with a softer mortgage market during the first quarter. As we prepare for the $10 billion asset threshold, we have managed to offset most of our increases in audit and regulatory affairs expenses with economies gained because of our size and scale.

“We are excited about our previously announced mergers. As we have indicated, Simmons Bank will enter new and very attractive markets as a result of the Bank SNB and Southwest Bank mergers and will be able to expand in our current markets with the First South Bank merger. We look forward to closing these mergers and integrating these new markets.”

Loans

Total loans, including those acquired, were $5.8 billion at March 31, 2017, an increase of $847 million, or 17.2 percent, compared with the same period in 2016. Legacy loans (all loans excluding acquired loans) grew $1.2 billion, or 33.4 percent. On a linked quarter basis, total loan growth was $144 million, including a seasonal reduction in credit card and agricultural production loans of $22.5 million.

Deposits

At March 31, 2017, total deposits were $6.8 billion, an increase of $709 million, or 11.7 percent, compared with the same period in 2016. Total non-time deposits were $5.5 billion, an increase of $743 million, or 15.5 percent, and comprised 82 percent of total deposits.

Net Interest Income

The company’s net interest income for the first quarter of 2017 was $72.4 million, an increase of $2.1 million, or 3.1 percent, from the same period of 2016. The net interest income was negatively impacted by a $3.7 million decline in yield accretion on acquired loans. Included in interest income was the yield accretion recognized on acquired loans of $4.4 million and $8.1 million for the first quarter of 2017 and 2016, respectively. Net interest margin was 4.04 percent for the quarter ended March 31, 2017, a 37 basis-point decline from the same quarter of 2016. The company’s core net interest margin, excluding the accretion, was 3.80 percent for the first quarter of 2017, a 12 basis-point decline from the same quarter of 2016.

Provision for Loan Losses

Provision for loan losses for the first quarter of 2017 was $4.3 million, an increase of $1.5 million compared with the first quarter of 2016. 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 first quarter was $30.1 million, an increase of $557,000 compared with the first quarter of 2016. The increase in non-interest income was due to additional trust income, service charge income, debit and credit card income resulting from internal growth and as a result of our most recent acquisition.

Non-Interest Expense

Non-interest expense for the first quarter of 2017 was $66.3 million, an increase of $4.5 million compared with the first quarter of 2016. Included in the quarter were $678,000 of merger-related expenses and branch rightsizing costs. Increases in occupancy expenses and other operating expenses are related to our most recent acquisition. The increases in professional services are related to the continued preparations for crossing the $10 billion asset threshold as a result of closing our three pending acquisitions.

Asset Quality

All acquired loans are recorded at their discounted net present value; therefore, they are excluded from the computations of the asset quality ratios for the legacy loan portfolio, except for their inclusion in total assets.

At March 31, 2017, the allowance for loan losses for legacy loans was $37.9 million. The company's allowance for loan losses on legacy loans at March 31, 2017 was 0.82 percent of total loans and 71 percent of non-performing loans. In the legacy portfolio, non-performing loans as a percent of total loans were 1.15 percent.

The allowance for loan losses for acquired loans was $435,000 and the acquired loan discount credit mark was $28.9 million. The allowances for loan losses and credit marks provide a total of $67.2 million of coverage, which equates to a total coverage ratio of 1.2 percent of gross loans. The ratio of credit mark and related allowance to acquired loans was 2.5 percent.

The 2017 annualized net charge-off ratio was 18 basis points. Excluding credit cards, the net charge-off ratio was 11 basis points.

“In February, we executed a sale of 11 substandard loans, which were primarily acquired loans, with a net principal balance of $11 million,” Makris said. “We recognized a loss of $676,000 on this sale. We continually explore options to manage the problem assets remaining from the acquired FDIC and Metropolitan portfolios as well as options to further reduce problem loans and expect to execute additional sales of assets.”

Capital

At March 31, 2017, common stockholders' equity was $1.2 billion, book value per share was $37.30 and tangible book value per share was $24.51. The company's ratio of stockholders' equity to total assets was 13.6 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 $8.6 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. CDT on Thursday, Apr. 20, 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 2974437. 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 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Unaudited) 2017 2016
2016
2016
2016
($ in thousands)
ASSETS
Cash and non-interest bearing balances due from banks $103,875 $117,007 $112,572 $96,037 $118,468
Interest bearing balances due from banks 201,406 168,652 324,951 151,570 100,593
Federal funds sold - - 17,000 3,000 4,000
Cash and cash equivalents 305,281 285,659 454,523 250,607 223,061
Interest bearing balances due from banks - time 4,563 4,563 4,393 9,781 11,188
Investment securities - held-to-maturity 431,176 462,096 496,594 632,154 674,502
Investment securities - available-for-sale 1,257,813 1,157,354 1,024,206 821,372 857,673
Mortgage loans held for sale 9,754 27,788 28,069 30,529 24,563
Assets held in trading accounts 55 41 2,969 7,321 7,074
Loans:
Legacy loans 4,632,905 4,327,207 3,943,089 3,725,422 3,472,691
Allowance for loan losses (37,865) (36,286) (34,094) (33,523) (32,681)
Loans acquired (net of discount and allowance)
Net loans 5,739,331 5,596,604 5,367,193 4,980,334 4,897,380
Premises and equipment 221,880 199,359 192,523 183,362 192,327
Premises held for sale 4,611 6,052 6,732 6,167 2,364
Foreclosed assets 26,421 26,895 30,396 30,529 41,126
Interest receivable 26,089 27,788 27,390 24,150 23,545
Bank owned life insurance 139,439 138,620 138,298 130,943 130,092
Goodwill 350,035 348,505 348,769 327,686 327,686
Other intangible assets 51,408 52,959 54,268 50,329 51,783
Other assets 58,782 65,773 50,669 48,955 72,589
Total assets $ 8,626,638 $ 8,400,056 $ 8,226,992 $ 7,534,219 $ 7,536,953
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts $1,554,675 $1,491,676 $1,473,420 $1,283,426 $1,274,816
Interest bearing transaction accounts and savings deposits 3,987,730 3,956,483 3,815,939 3,538,808 3,524,808
Time deposits less than $100,000 653,538 686,780 653,105 643,081 674,915
Time deposits greater than $100,000 592,345 600,280 674,917 562,888 605,236
Total deposits 6,788,288 6,735,219 6,617,381 6,028,203 6,079,775
Federal funds purchased and securities sold
under agreements to repurchase 110,007 115,029 124,289 103,038 97,429
Other borrowings 441,074 273,159 215,276 191,827 176,829
Subordinated debentures 60,503 60,397 60,290 60,184 60,077
Accrued interest and other liabilities 55,877 65,141 62,615 60,256 50,859
Total liabilities 7,455,749 7,248,945 7,079,851 6,443,508 6,464,969
Stockholders' equity:
Preferred stock - - - - -
Common stock 314 313 313 304 303
Surplus 716,564 711,976 710,132 668,306 665,850
Undivided profits 468,309 454,034 434,579 417,863 402,265
Accumulated other comprehensive income (loss):
Unrealized appreciation (depreciation) on AFS securities (14,298) (15,212) 2,117 4,238 3,566
Total stockholders' equity 1,170,889 1,151,111 1,147,141 1,090,711 1,071,984
Total liabilities and stockholders' equity $ 8,626,638 $ 8,400,056 $ 8,226,992 $ 7,534,219 $ 7,536,953
Page 1

Simmons First National Corporation SFNC
Consolidated Statements of Income - Quarter-to-Date
For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Unaudited) 2017 2016 2016 2016 2016
($ in thousands, except per share data)
INTEREST INCOME
Loans $68,728 $70,887 $65,078 $63,009 $66,678
Federal funds sold 5 11 19 17 10
Investment securities 9,451 8,700 7,774 8,499 8,506
Mortgage loans held for sale 126 230 299 295 278
Assets held in trading accounts - 3 4 3 6
Interest bearing balances due from banks 117 234 244 77 144
TOTAL INTEREST INCOME 78,427 80,065 73,418 71,900 75,622
INTEREST EXPENSE
Time deposits 2,015 2,023 1,767 1,741 1,636
Other deposits 2,189 2,032 1,965 2,035 2,018
Federal funds purchased and securities
sold under agreements to repurchase 75 90 59 59 65
Other borrowings 1,194 1,034 1,048 938 1,128
Subordinated debentures 574 558 516 544 543
TOTAL INTEREST EXPENSE 6,047 5,737 5,355 5,317 5,390
NET INTEREST INCOME 72,380 74,328 68,063 66,583 70,232
Provision for loan losses 4,307 4,332 8,294 4,616 2,823
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 68,073 69,996 59,769 61,967 67,409
NON-INTEREST INCOME
Trust income 4,212 4,282 3,873 3,656 3,631
Service charges on deposit accounts 8,102 8,666 8,771 7,661 7,316
Other service charges and fees 2,197 4,026 3,261 2,718 2,867
Mortgage and SBA lending income 2,423 4,580 4,339 4,730 2,834
Investment banking income 690 472 1,131 1,181 687
Debit and credit card fees 7,934 8,027 7,825 7,688 7,200
Bank owned life insurance income 818 895 606 826 997
Gain on sale of securities, net 63 1,445 315 3,759 329
Other income 3,621 3,722 6,755 4,669 3,642
TOTAL NON-INTEREST INCOME 30,060 36,115 36,876 36,888 29,503
NON-INTEREST EXPENSE
Salaries and employee benefits 35,536 33,797 31,784 33,103 34,773
Occupancy expense, net 4,663 4,516 4,690 4,990 4,471
Furniture and equipment expense 4,443 4,387 4,272 4,077 3,947
Other real estate and foreclosure expense 589 679 1,849 967 966
Deposit insurance 680 89 1,136 1,096 1,148
Merger-related costs 524 2,846 1,524 372 93
Other operating expenses 19,887 20,411 17,179 19,532 16,391
TOTAL NON-INTEREST EXPENSE 66,322 66,725 62,434 64,137 61,789
NET INCOME BEFORE INCOME TAXES 31,811 39,386 34,211 34,718 35,123
Provision for income taxes 9,691 12,415 10,782 11,809 11,618
NET INCOME 22,120 26,971 23,429 22,909 23,505
Preferred stock dividends - - - - 24
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 22,120 $ 26,971 $ 23,429 $ 22,909 $ 23,481
BASIC EARNINGS PER SHARE $ 0.71 $ 0.86 $ 0.77 $ 0.75 $ 0.77
DILUTED EARNINGS PER SHARE $ 0.70 $ 0.85 $ 0.76 $ 0.75 $ 0.77
Page 2

Simmons First National Corporation SFNC
Consolidated Risk-Based Capital
For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Unaudited) 2017
2016
2016
2016
2016
($ in thousands)
Tier 1 capital
Stockholders' equity $1,170,889 $1,151,111 $1,147,141 $1,090,711 $1,071,984
Trust preferred securities, net allowable 60,503 60,397 60,290 60,184 60,077
Disallowed intangible assets, net of deferred tax (361,944) (354,028) (354,582) (334,395) (335,166)
Unrealized loss (gain) on AFS securities 14,298 15,212 (2,117) (4,238) (3,566)
Other - 15 - - -
Total Tier 1 capital 883,746 872,707 850,732 812,262 793,329
Tier 2 capital
Qualifying allowance for loan losses and
reserve for unfunded commitments 41,303 40,241 38,050 37,240 36,398
Total Tier 2 capital 41,305 40,241 38,050 37,240 36,398
Total risk-based capital $ 925,051 $ 912,948 $ 888,782 $ 849,502 $ 829,727
Common equity
Tier 1 capital $883,746 $872,707 $850,732 $812,262 $793,329
Less: Trust preferred securities (60,503) (60,397) (60,290) (60,184) (60,077)
Total common equity $ 823,243 $ 812,310 $ 790,442 $ 752,078 $ 733,252
Risk weighted assets $ 6,425,150 $ 6,039,034 $ 5,724,052 $ 5,343,355 $ 5,293,395
Adjusted average assets for leverage ratio $ 8,076,525 $ 7,966,681 $ 7,355,702 $ 7,185,633 $ 7,167,839
Ratios at end of quarter
Equity to assets 13.57% 13.70% 13.94% 14.48% 14.22%
Tangible common equity to tangible assets (1) 9.35% 9.37% 9.51% 9.96% 9.68%
Common equity Tier 1 ratio (CET1) 12.81% 13.45% 13.81% 14.08% 13.85%
Tier 1 leverage ratio 10.94% 10.95% 11.57% 11.30% 11.07%
Tier 1 risk-based capital ratio 13.75% 14.45% 14.86% 15.20% 14.99%
Total risk-based capital ratio 14.40% 15.12% 15.53% 15.90% 15.67%
(1) Calculations of tangible common equity to tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release.
Page 3

Simmons First National Corporation SFNC
Consolidated Loans and Investments
For the Quarters Ended Mar 31
Dec 31
Sep 30
Jun 30
Mar 31
(Unaudited) 2017 2016 2016 2016 2016
($ in thousands)
Legacy Loan Portfolio - End of Period (1)
Consumer
Credit cards $171,947 $184,591 $175,032 $171,468 $167,803
Other consumer 349,200 303,972 275,947 248,018 227,480
Total consumer 521,147 488,563 450,979 419,486 395,283
Real Estate
Construction 365,051 336,759 304,082 330,666 300,042
Single-family residential 957,717 904,245 841,958 785,289 746,754
Other commercial 1,959,677 1,787,075 1,521,132 1,414,663 1,327,372
Total real estate 3,282,445 3,028,079 2,667,172 2,530,618 2,374,168
Commercial
Commercial 657,606 639,525 607,738 577,771 551,695
Agricultural 141,125 150,378 203,529 187,047 143,033
Total commercial 798,731 789,903 811,267 764,818 694,728
Other 30,582 20,662 13,671 10,500 8,512
Total Loans $ 4,632,905 $ 4,327,207 $ 3,943,089 $ 3,725,422 $ 3,472,691
(1) Excludes all acquired loans.
Investment Securities - End of Period
Held-to-Maturity
U.S. Government agencies $68,895 $76,875 $80,849 $199,505 $223,484
Mortgage-backed securities 18,743 19,773 21,454 22,612 23,734
State and political subdivisions 341,854 362,532 391,495 407,273 424,586
Other securities 1,684 2,916 2,796 2,765 2,698
Total held-to-maturity 431,176 462,096 496,594 632,155 674,502
Available-for-Sale
U.S. Treasury $- $300 $63,985 $4,305 $4,302
U.S. Government agencies 142,356 137,771 148,781 58,113 78,308
Mortgage-backed securities 927,277 868,324 699,748 652,425 722,982
State and political subdivisions 130,747 102,943 67,019 64,836 11,260
FHLB stock 19,149 12,235 11,235 8,781 7,838
Other securities 38,285 35,781 33,438 32,911 32,983
Total available-for-sale 1,257,814 1,157,354 1,024,206 821,371 857,673
Total investment securities $1,688,990 $1,619,450 $1,520,800 $1,453,526 $1,532,175
Fair value - HTM investment securities $435,701 $465,960 $508,910 $647,293 $686,835
Investment Securities - QTD Average
Taxable securities $1,185,794 $1,146,703 $963,150 $1,059,802 $1,067,302
Tax exempt securities 455,481 467,757 466,782 443,492 439,370
Total investment securities - QTD average $1,641,275 $1,614,460 $1,429,932 $1,503,294 $1,506,672
Page 4

Simmons First National Corporation SFNC
Consolidated Loans and Credit Coverage
For the Quarters Ended Mar 31
Dec 31
Sep 30
Jun 30
Mar 31
(Unaudited) 2017 2016 2016 2016 2016
($ in thousands)
LOANS
Legacy loans$4,632,905 $4,327,207 $3,943,089 $3,725,422 $3,472,691
Allowance for loan losses (legacy loans) (37,865) (36,286) (34,094) (33,523) (32,681)
Legacy loans (net of allowance) 4,595,040 4,290,921 3,908,995 3,691,899 3,440,010
Loans acquired 1,173,667 1,342,099 1,502,051 1,327,683 1,503,482
Credit discount (28,941) (35,462) (42,899) (38,294) (45,158)
Allowance for loan losses (loans acquired) (435) (954) (954) (954) (954)
Loans acquired (net of discount and allowance) 1,144,291 1,305,683 1,458,198 1,288,435 1,457,370
Net loans$ 5,739,331 $ 5,596,604 $ 5,367,193 $ 4,980,334 $ 4,897,380
Loan Coverage Ratios
Allowance for loan losses to legacy loans 0.82% 0.84% 0.86% 0.90% 0.94%
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) 2.50% 2.71% 2.92% 2.96% 3.07%
Total allowance and credit coverage (non-GAAP) (1) 1.16% 1.28% 1.43% 1.44% 1.58%
(1) Calculations of the non-GAAP loan coverage ratios and the reconciliations to GAAP are included in the schedules accompanying this release.
Page 5

Simmons First National Corporation SFNC
Consolidated Allowance and Asset Quality
For the Quarters Ended Mar 31
Dec 31
Sep 30
Jun 30
Mar 31
(Unaudited) 2017
2016
2016
2016
2016
($ in thousands)
Allowance for Loan Losses (Legacy Loans)
Balance, beginning of quarter$36,286 $34,094 $33,523 $32,681 $31,351
Loans charged off
Credit cards 1,044 935 699 702 859
Other consumer 1,174 493 600 489 393
Real estate 656 167 6,297 824 229
Commercial 292 913 284 2,283 476
Total loans charged off 3,166 2,508 7,880 4,298 1,957
Recoveries of loans previously charged off
Credit cards 236 213 199 253 242
Other consumer 690 158 106 149 103
Real estate 232 73 55 111 112
Commercial 30 28 12 318 7
Total recoveries 1,188 472 372 831 464
Net loans charged off 1,978 2,036 7,508 3,467 1,493
Provision for loan losses 3,557 4,228 8,079 4,309 2,823
Balance, end of quarter$37,865 $36,286 $34,094 $33,523 $32,681
Non-performing assets (1) (2)
Non-performing loans
Nonaccrual loans 52,913 39,104 37,392 43,305 34,244
Loans past due 90 days or more 231 299 144 227 881
Total non-performing loans 53,144 39,403 37,536 43,532 35,125
Other non-performing assets
Foreclosed assets held for sale (2) 26,421 26,895 30,396 30,529 41,126
Other non-performing assets 352 471 621 519 256
Total other non-performing assets 26,773 27,366 31,017 31,048 41,382
Total non-performing assets$79,917 $66,769 $68,553 $74,580 $76,507
Performing TDRs (troubled debt restructurings)$10,833 $10,998 $13,604 $10,887 $10,759
Ratios (1) (2)
Allowance for loan losses to total loans 0.82% 0.84% 0.86% 0.90% 0.94%
Allowance for loan losses to non-performing loans 71% 92% 91% 77% 93%
Non-performing loans to total loans 1.15% 0.91% 0.95% 1.17% 1.01%
Non-performing assets (including performing TDRs)
to total assets 1.05% 0.93% 1.00% 1.13% 1.16%
Non-performing assets to total assets 0.93% 0.79% 0.83% 0.99% 1.02%
Annualized net charge offs to total loans 0.18% 0.20% 0.82% 0.39% 0.18%
Annualized net credit card charge offs to
total credit card loans 1.84% 1.66% 1.14% 1.07% 1.46%
Annualized net charge offs to total loans
(excluding credit cards) 0.11% 0.14% 0.81% 0.36% 0.11%
(1) Excludes all acquired loans, except for their inclusion in total assets.
(2) Includes acquired foreclosed assets held for sale.
Page 6

Simmons First National Corporation SFNC
Consolidated - Average Balance Sheet and Net Interest Income Analysis
For the Quarters Ended
(Unaudited)
Three Months Ended
Mar 2017
Three Months Ended
Dec 2016
Three Months Ended
Mar 2016
($ 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$131,079 $117 0.36% $243,396 $234 0.38% $167,381 $144 0.35%
Federal funds sold 249 5 8.14% 5,381 11 0.81% 1,839 10 2.19%
Investment securities - taxable 1,292,441 6,477 2.03% 1,236,864 5,681 1.83% 1,076,855 5,311 1.98%
Investment securities - non-taxable (FTE) 348,834 4,884 5.68% 377,596 4,959 5.22% 429,817 5,249 4.91%
Mortgage loans held for sale 11,473 126 4.45% 23,307 230 3.93% 26,616 278 4.20%
Assets held in trading accounts 48 - 0.00% 1,774 3 0.67% 5,196 6 0.46%
Loans, including acquired loans 5,685,585 68,783 4.91% 5,484,918 70,941 5.15% 4,889,685 66,708 5.49%
Total interest earning assets (FTE) 7,469,709 80,392 4.36% 7,373,236 82,059 4.43% 6,597,389 77,706 4.74%
Non-earning assets 944,761 935,222 901,796
Total assets$ 8,414,470 $ 8,308,458 $ 7,499,185
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Interest bearing transaction and
savings accounts$3,950,169 $2,189 0.22% $3,895,367 $2,032 0.21% $3,484,571 $2,018 0.23%
Time deposits 1,262,430 2,015 0.65% 1,292,961 2,023 0.62% 1,303,614 1,636 0.50%
Total interest bearing deposits 5,212,599 4,204 0.33% 5,188,328 4,055 0.31% 4,788,185 3,654 0.31%
Federal funds purchased and securities
sold under agreement to repurchase 111,474 75 0.27% 124,323 90 0.29% 113,551 65 0.23%
Other borrowings 345,664 1,194 1.40% 203,615 1,034 2.02% 184,000 1,128 2.47%
Subordinated debentures 60,452 574 3.85% 60,345 558 3.68% 60,109 543 3.63%
Total interest bearing liabilities 5,730,189 6,047 0.43% 5,576,611 5,737 0.41% 5,145,845 5,390 0.42%
Non-interest bearing liabilities:
Non-interest bearing deposits 1,466,501 1,515,853 1,225,311
Other liabilities 51,307 59,061 53,240
Total liabilities 7,247,997 7,151,525 6,424,396
Stockholders' equity 1,166,473 1,156,933 1,074,789
Total liabilities and stockholders' equity$ 8,414,470 $ 8,308,458 $ 7,499,185
Net interest income (FTE) $ 74,345 $ 76,322 $ 72,316
Net interest spread (FTE) 3.93% 4.02% 4.32%
Net interest margin (FTE) - quarter-to-date 4.04% 4.12% 4.41%
Net interest margin (FTE) - year-to-date 4.04% 4.19% 4.41%
Core net interest margin (FTE) - quarter-to-date (1) 3.80% 3.76% 3.92%
Core loan yield (FTE) - quarter-to-date (1) 4.59% 4.67% 4.82%
Core net interest margin (FTE) - year-to-date (1) 3.80% 3.83% 3.92%
Core loan yield (FTE) - year-to-date (1) 4.59% 4.72% 4.82%
(1) Calculations of core net interest margin and core loan yield and the reconciliations to GAAP are included in the schedules accompanying this release.
Page 7

Simmons First National Corporation SFNC
Consolidated - Selected Financial Data
For the Quarters Ended Mar 31
Dec 31
Sep 30
Jun 30
Mar 31
(Unaudited) 2017
2016
2016
2016
2016
($ in thousands, except share data)
QUARTER-TO-DATE
Financial Highlights - GAAP
Net Income$22,120 $26,971 $23,429 $22,909 $23,481
Diluted earnings per share 0.70 0.85 0.76 0.75 0.77
Return on average assets 1.07% 1.29% 1.21% 1.22% 1.26%
Return on average common equity 7.69% 9.27% 8.36% 8.48% 8.87%
Return on tangible common equity 12.22% 14.71% 13.26% 13.52% 14.30%
Net interest margin (FTE) 4.04% 4.12% 4.08% 4.14% 4.41%
FTE adjustment 1,965 1,994 1,969 1,675 2,084
Amortization of intangibles 1,550 1,533 1,503 1,451 1,455
Amortization of intangibles, net of taxes 942 932 913 882 884
Average diluted shares outstanding 31,612,900 31,592,713 30,843,714 30,452,285 30,481,604
Cash dividends declared per common share 0.25 0.24 0.24 0.24 0.24
Financial Highlights - Core (non-GAAP)
Core earnings (excludes non-core items) (1)$22,532 $28,751 $24,382 $25,091 $23,185
Diluted core earnings per share (1) 0.71 0.91 0.79 0.82 0.76
Core net interest margin (FTE) (2) 3.80% 3.76% 3.79% 3.86% 3.92%
Efficiency ratio (1) 60.92% 55.47% 53.94% 57.33% 58.73%
Core return on average assets (1) 1.09% 1.38% 1.26% 1.34% 1.24%
Core return on average common equity (1) 7.83% 9.89% 8.71% 9.29% 8.75%
Core return on tangible common equity (1) 12.44% 15.65% 13.78% 14.76% 14.13%
YEAR-TO-DATE
Financial Highlights - GAAP
Net Income$22,120 $96,790 $69,819 $46,390 $23,481
Diluted earnings per share 0.70 3.13 2.28 1.52 0.77
Return on average assets 1.07% 1.25% 1.23% 1.24% 1.26%
Return on average common equity 7.69% 8.75% 8.57% 8.67% 8.87%
Return on tangible common equity 12.22% 13.92% 13.68% 13.90% 14.30%
Net interest margin (FTE) 4.04% 4.19% 4.21% 4.28% 4.41%
FTE adjustment 1,965 7,722 5,728 3,759 2,084
Amortization of intangibles 1,550 5,942 4,409 2,906 1,455
Amortization of intangibles, net of taxes 942 3,611 2,679 1,766 884
Average diluted shares outstanding 31,612,900 30,963,546 30,656,882 30,438,939 30,481,604
Cash dividends declared per common share 0.25 0.96 0.72 0.48 0.24
Financial Highlights - Core (non-GAAP)
Core earnings (excludes non-core items) (1)$22,532 $101,409 $72,658 $48,276 $23,185
Diluted core earnings per share (1) 0.71 3.28 2.37 1.59 0.76
Core net interest margin (FTE) (2) 3.80% 3.83% 3.86% 3.89% 3.92%
Efficiency ratio (1) 60.92% 56.32% 56.62% 58.03% 58.73%
Core return on average assets (1) 1.09% 1.31% 1.28% 1.29% 1.24%
Core return on average common equity (1) 7.83% 9.17% 8.91% 9.02% 8.75%
Core return on tangible common equity (1) 12.44% 14.56% 14.22% 14.45% 14.13%
END OF PERIOD
Book value per share$37.30 $36.80 $36.69 $35.86 $35.35
Tangible book value per share 24.51 23.97 23.80 23.43 22.84
Shares outstanding 31,388,357 31,277,723 31,267,614 30,415,980 30,324,499
Full-time equivalent employees 1,876 1,875 1,985 1,880 1,931
Total number of ATM's 187 186 186 174 185
Total number of financial centers 151 150 150 140 149
(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.
Page 8

Simmons First National Corporation SFNC
Consolidated - Reconciliation of Core Earnings (non-GAAP)
For the Quarters Ended Mar 31
Dec 31
Sep 30
Jun 30
Mar 31
(Unaudited) 2017
2016
2016
2016
2016
($ in thousands, except per share data)
QUARTER-TO-DATE
Net Income$22,120 $26,971 $23,429 $22,909 $23,481
Non-core items
Gain from early retirement of trust preferred securities - - - - (594)
Merger-related costs 524 2,846 1,524 372 93
Branch right-sizing 154 83 43 3,219 14
Tax effect (1) (266) (1,149) (614) (1,409) 191
Net non-core items 412 1,780 953 2,182 (296)
Core earnings (non-GAAP)$22,532 $28,751 $24,382 $25,091 $23,185
Diluted earnings per share$0.70 $0.85 $0.76 $0.75 $0.77
Non-core items
Gain from early retirement of trust preferred securities - - - - (0.02)
Merger-related costs 0.02 0.09 0.05 0.01 -
Branch right-sizing - - - 0.11 -
Tax effect (1) (0.01) (0.03) (0.02) (0.05) 0.01
Net non-core items 0.01 0.06 0.03 0.07 (0.01)
Core earnings (non-GAAP)$0.71 $0.91 $0.79 $0.82 $0.76
YEAR-TO-DATE
Net Income$22,120 $96,790 $69,819 $46,390 $23,481
Non-core items
Gain from early retirement of trust preferred securities - (594) (594) (594) (594)
Merger-related costs 524 4,835 1,989 465 93
Branch right-sizing 154 3,359 3,276 3,233 14
Tax effect (1) (266) (2,981) (1,832) (1,218) 191
Net non-core items 412 4,619 2,839 1,886 (296)
Core earnings (non-GAAP)$22,532 $101,409 $72,658 $48,276 $23,185
Diluted earnings per share$0.70 $3.13 $2.28 $1.52 $0.77
Non-core items
Gain from early retirement of trust preferred securities - (0.02) (0.02) (0.02) (0.02)
Merger-related costs 0.02 0.16 0.06 0.02 -
Branch right-sizing - 0.11 0.11 0.11 -
Tax effect (1) (0.01) (0.10) (0.06) (0.04) 0.01
Net non-core items 0.01 0.15 0.09 0.07 (0.01)
Core earnings (non-GAAP)$0.71 $3.28 $2.37 $1.59 $0.76
(1) Effective tax rate of 39.225%, adjusted for non-deductible merger-related costs.
Page 9

Simmons First National Corporation SFNC
Reconciliation Of Non-GAAP Financial Measures - End of Period
For the Quarters Ended
(Unaudited) Mar 31
Dec 31
Sept 30
Jun 30
Mar 31
2017 2016 2016 2016 2016
($ in thousands, except per share data)
Calculation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets
Total stockholders' equity$ 1,170,889 $ 1,151,111 $ 1,147,141 $ 1,090,711 $ 1,071,984
Preferred stock - - - - -
Total common stockholders' equity 1,170,889 1,151,111 1,147,141 1,090,711 1,071,984
Intangible assets:
Goodwill (350,035) (348,505) (348,769) (327,686) (327,686)
Other intangible assets (51,408) (52,959) (54,268) (50,329) (51,783)
Total intangibles (401,443) (401,464) (403,037) (378,015) (379,469)
Tangible common stockholders' equity$ 769,446 $ 749,647 $ 744,104 $ 712,696 $ 692,515
Total assets$ 8,626,638 $ 8,400,056 $ 8,226,992 $ 7,534,219 $ 7,536,953
Intangible assets:
Goodwill (350,035) (348,505) (348,769) (327,686) (327,686)
Other intangible assets (51,408) (52,959) (54,268) (50,329) (51,783)
Total intangibles (401,443) (401,464) (403,037) (378,015) (379,469)
Tangible assets$ 8,225,195 $ 7,998,592 $ 7,823,955 $ 7,156,204 $ 7,157,484
Ratio of equity to assets 13.57% 13.70% 13.94% 14.48% 14.22%
Ratio of tangible common equity to tangible assets 9.35% 9.37% 9.51% 9.96% 9.68%
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$ 28,941 $ 35,462 $ 42,899 $ 38,294 $ 45,158
Allowance for loan losses on acquired loans 435 954 954 954 954
Total credit discount and ALLL on acquired loans$ 29,376 $ 36,416 $ 43,853 $ 39,248 $ 46,112
Total loans acquired$ 1,173,667 $ 1,342,099 $ 1,502,051 $ 1,327,683 $ 1,503,482
Discount and ALLL on acquired loans to acquired loans 2.50% 2.71% 2.92% 2.96% 3.07%
Calculation of Total Allowance and Credit Coverage
Allowance for loan losses$ 37,865 $ 36,286 $ 34,094 $ 33,523 $ 32,681
Total credit discount and ALLL on acquired loans 29,376 36,416 43,853 39,248 46,112
Total allowance and credit discount$ 67,241 $ 72,702 $ 77,947 $ 72,771 $ 78,793
Total loans$ 5,806,572 $ 5,669,306 $ 5,445,140 $ 5,053,105 $ 4,976,173
Total allowance and credit coverage 1.16% 1.28% 1.43% 1.44% 1.58%
Calculation of Tangible Book Value per Share
Total common stockholders' equity$ 1,170,889 $ 1,151,111 $ 1,147,141 $ 1,090,711 $ 1,071,984
Intangible assets:
Goodwill (350,035) (348,505) (348,769) (327,686) (327,686)
Other intangible assets (51,408) (52,959) (54,268) (50,329) (51,783)
Total intangibles (401,443) (401,464) (403,037) (378,015) (379,469)
Tangible common stockholders' equity$ 769,446 $ 749,647 $ 744,104 $ 712,696 $ 692,515
Shares of common stock outstanding 31,388,357 31,277,723 31,267,614 30,415,980 30,324,499
Book value per common share$ 37.30 $ 36.80 $ 36.69 $ 35.86 $ 35.35
Tangible book value per common share$ 24.51 $ 23.97 $ 23.80 $ 23.43 $ 22.84
Page 10

Simmons First National Corporation SFNC
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date
For the Quarters Ended
(Unaudited) Mar 31
Dec 31
Sept 30
Jun 30
Mar 31
2017
2016
2016
2016
2016
($ in thousands)
Calculation of Core Return on Average Assets
Net income available to common stockholders$22,120 $26,971 $23,429 $22,909 $23,481
Net non-core items, net of taxes, adjustment 412 1,780 953 2,182 (296)
Core earnings$22,532 $28,751 $24,382 $25,091 $23,185
Average total assets$8,414,470 $8,308,458 $7,703,837 $7,522,133 $7,499,185
Return on average assets 1.07% 1.29% 1.21% 1.22% 1.26%
Core return on average assets 1.09% 1.38% 1.26% 1.34% 1.24%
Calculation of Return on Tangible Common Equity
Net income available to common stockholders$22,120 $26,971 $23,429 $22,909 $23,481
Amortization of intangibles, net of taxes 942 932 913 882 884
Total income available to common stockholders$23,062 $27,903 $24,342 $23,791 $24,365
Net non-core items, net of taxes 412 1,780 953 2,182 (296)
Core earnings 22,532 28,751 24,382 25,091 23,185
Amortization of intangibles, net of taxes 942 932 913 882 884
Total core income available to common stockholders$23,474 $29,683 $25,295 $25,973 $24,069
Average common stockholders' equity$1,166,473 $1,156,933 $1,114,252 $1,086,618 $1,065,296
Average intangible assets:
Goodwill (348,837) (348,597) (332,893) (327,686) (327,686)
Other intangibles (52,169) (53,646) (50,893) (51,043) (52,498)
Total average intangibles (401,006) (402,243) (383,786) (378,729) (380,184)
Average tangible common stockholders' equity$765,467 $754,690 $730,466 $707,889 $685,112
Return on average common equity 7.69% 9.27% 8.36% 8.48% 8.87%
Return on tangible common equity 12.22% 14.71% 13.26% 13.52% 14.30%
Core return on average common equity 7.83% 9.89% 8.71% 9.29% 8.75%
Core return on tangible common equity 12.44% 15.65% 13.78% 14.76% 14.13%
Calculation of Efficiency Ratio (1)
Non-interest expense$66,322 $66,725 $62,434 $64,137 $61,789
Non-core non-interest expense adjustment (635) (2,995) (1,742) (3,591) (107)
Other real estate and foreclosure expense adjustment (550) (669) (1,787) (967) (966)
Amortization of intangibles adjustment (1,550) (1,533) (1,503) (1,451) (1,455)
Efficiency ratio numerator$63,587 $61,528 $57,402 $58,128 $59,261
Net-interest income$72,380 $74,328 $68,063 $66,583 $70,232
Non-interest income 30,060 36,115 36,876 36,888 29,503
Non-core non-interest income adjustment 43 (66) (175) - (594)
Fully tax-equivalent adjustment 1,965 1,994 1,969 1,675 2,084
(Gain) loss on sale of securities (63) (1,445) (315) (3,759) (329)
Efficiency ratio denominator$104,385 $110,926 $106,418 $101,387 $100,896
Efficiency ratio (1) 60.92% 55.47% 53.94% 57.33% 58.73%
Calculation of Core Net Interest Margin
Net interest income$72,380 $74,328 $68,063 $66,583 $70,232
Fully tax-equivalent adjustment 1,965 1,994 1,969 1,675 2,084
Fully tax-equivalent net interest income 74,345 76,322 70,032 68,258 72,316
Total accretable yield (4,427) (6,552) (4,928) (4,700) (8,077)
Core net interest income$69,918 $69,770 $65,104 $63,558 $64,239
Average earning assets$7,469,709 $7,373,236 $6,825,019 $6,625,642 $6,597,389
Net interest margin 4.04% 4.12% 4.08% 4.14% 4.41%
Core net interest margin 3.80% 3.76% 3.79% 3.86% 3.92%
Calculation of Core Loan Yield
Loan interest income$68,728 $70,887 $65,078 $63,009 $66,678
Total accretable yield (4,427) (6,552) (4,928) (4,700) (8,077)
Core loan interest income$64,301 $64,335 $60,150 $58,309 $58,601
Average loan balance$5,685,585 $5,484,918 $5,105,474 $4,957,888 $4,889,685
Core loan yield 4.59% 4.67% 4.69% 4.73% 4.82%
(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.
Page 11

Simmons First National Corporation SFNC
Reconciliation Of Non-GAAP Financial Measures - Year-to-Date
For the Quarters Ended
(Unaudited) Mar 31
Dec 31
Sept 30
Jun 30
Mar 31
2017
2016
2016
2016
2016
($ in thousands)
Calculation of Core Return on Average Assets
Net income available to common stockholders$22,120 $96,790 $69,819 $46,390 $23,481
Net non-core items, net of taxes, adjustment 412 4,619 2,839 1,886 (296)
Core earnings$ 22,532 $ 101,409 $ 72,658 $ 48,276 $ 23,185
Average total assets$ 8,414,470 $ 7,760,233 $ 7,575,053 $ 7,510,657 $ 7,499,185
Return on average assets 1.07% 1.25% 1.23% 1.24% 1.26%
Core return on average assets 1.09% 1.31% 1.28% 1.29% 1.24%
Calculation of Return on Tangible Common Equity
Net income available to common stockholders$22,120 $96,790 $69,819 $46,390 $23,481
Amortization of intangibles, net of taxes 942 3,611 2,679 1,766 884
Total income available to common stockholders$ 23,062 $ 100,401 $ 72,498 $ 48,156 $ 24,365
Net non-core items, net of taxes 412 4,619 2,839 1,886 (296)
Core earnings 22,532 101,409 72,658 48,276 23,185
Amortization of intangibles, net of taxes 942 3,611 2,679 1,766 884
Total core income available to common stockholders$ 23,474 $ 105,020 $ 75,337 $ 50,042 $ 24,069
Average common stockholders' equity$1,166,473 $1,105,775 $1,088,723 $1,075,957 $1,065,296
Average intangible assets:
Goodwill (348,837) (332,974) (329,422) (327,686) (327,686)
Other intangibles (52,169) (51,710) (51,478) (51,771) (52,498)
Total average intangibles (401,006) (384,684) (380,900) (379,457) (380,184)
Average tangible common stockholders' equity$ 765,467 $ 721,091 $ 707,823 $ 696,500 $ 685,112
Return on average common equity 7.69% 8.75% 8.57% 8.67% 8.87%
Return on tangible common equity 12.22% 13.92% 13.68% 13.90% 14.30%
Core return on average common equity 7.83% 9.17% 8.91% 9.02% 8.75%
Core return on tangible common equity 12.44% 14.56% 14.22% 14.45% 14.13%
Calculation of Efficiency Ratio (1)
Non-interest expense$66,322 $255,085 $188,360 $125,931 $61,789
Non-core non-interest expense adjustment (635) (8,435) (5,440) (3,698) (107)
Other real estate and foreclosure expense adjustment (550) (4,389) (3,720) (1,934) (966)
Amortization of intangibles adjustment (1,550) (5,942) (4,409) (2,906) (1,455)
Efficiency ratio numerator$ 63,587 $ 236,319 $ 174,791 $ 117,393 $ 59,261
Net-interest income$72,380 $279,206 $204,878 $136,814 $70,232
Non-interest income 30,060 139,382 103,267 66,397 29,503
Non-core non-interest income adjustment 43 (835) (769) (594) (594)
Fully tax-equivalent adjustment 1,965 7,722 5,728 3,759 2,084
(Gain) loss on sale of securities (63) (5,848) (4,403) (4,088) (329)
Efficiency ratio denominator$ 104,385 $ 419,627 $ 308,701 $ 202,288 $ 100,896
Efficiency ratio (1) 60.92% 56.32% 56.62% 58.03% 58.73%
Calculation of Core Net Interest Margin
Net interest income$72,380 $279,206 $204,878 $136,814 $70,232
Fully tax-equivalent adjustment 1,965 7,722 5,728 3,759 2,084
Fully tax-equivalent net interest income 74,345 286,928 210,606 140,573 72,316
Total accretable yield (4,427) (24,257) (17,705) (12,777) (8,077)
Core net interest income$ 69,918 $ 262,671 $ 192,901 $ 127,796 $ 64,239
Average earning assets$ 7,469,709 $ 6,855,322 $ 6,682,683 $ 6,611,516 $ 6,597,389
Net interest margin 4.04% 4.19% 4.21% 4.28% 4.41%
Core net interest margin 3.80% 3.83% 3.86% 3.89% 3.92%
Calculation of Core Loan Yield
Loan interest income$68,728 $265,652 $194,765 $129,688 $66,678
Total accretable yield (4,427) (24,257) (17,705) (12,777) (8,077)
Core loan interest income$ 64,301 $ 241,395 $ 177,060 $ 116,911 $ 58,601
Average loan balance$ 5,685,585 $ 5,109,492 $ 4,984,349 $ 4,923,787 $ 4,889,685
Core loan yield 4.59% 4.72% 4.75% 4.77% 4.82%
(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.
Page 12

FOR MORE INFORMATION CONTACT: DAVID W. GARNER EVP and Investor Relations Officer Simmons First National Corporation (870) 541-1000

Source:Simmons First National Corporation