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Simmons Reports 2017 Second Quarter Earnings

PINE BLUFF, Ark., July 19, 2017 (GLOBE NEWSWIRE) -- Simmons First National Corp. (NASDAQ-GS:SFNC) today announced net income available to common shareholders of $23.1 million, or $0.72 per diluted share, for the quarter ended June 30, 2017, compared to $22.9 million, or $0.75 per diluted share, for the quarter ended June 30, 2016. Included in second quarter 2017 results were $3.7 million in net after-tax merger-related and branch right-sizing costs. Excluding the impact of these items, core earnings were $26.8 million, or $0.84 per diluted share, for the quarter ended June 30, 2017, compared to $25.1 million, or $0.82 per diluted share, for the quarter ended June 30, 2016. Year-to-date net income was $45.2 million, or $1.42 diluted core earnings per share. Excluding $4.1 million in net after-tax merger-related and branch right-sizing costs, year-to-date core earnings were $49.3 million, or $1.55 diluted core earnings per share.

On May 15, 2017, Simmons First National Corp. completed the acquisition of Hardeman County Investment Company, Inc., headquartered in Jackson, Tenn., including its wholly-owned bank subsidiary, First South Bank. The systems conversion will take place on September 5, 2017, at which time the First South Bank will be merged into Simmons Bank.

“We welcome our newest associates from the First South Bank merger into the Simmons family. We look forward to continued growth in our Tennessee markets,” said George A. Makris Jr., Chairman and CEO of Simmons First National Corp. “We are also very excited about our previously announced mergers with Southwest Bancorp, Inc. (Bank SNB) and First Texas BHC, Inc. (Southwest Bank) and the new and attractive markets they serve.”

“We had solid results in the second quarter. Our loan growth continues to be strong. We are experiencing some upward pressure on cost of funds which is currently prohibiting an expansion in the net interest margin. We continue to expand our risk management programs in anticipation of surpassing $10 billion in assets within the next few months. All-in-all, we feel we are well-prepared for continued growth both organically and through acquisitions,” Makris said.

Selected Highlights: 2nd Qtr 2017 1st Qtr 2017 2nd Qtr 2016
Net income $23.1 million $22.1 million $22.9 million
Diluted earnings per share $.72 $.70 $.75
Return on avg assets 1.05% 1.07% 1.22%
Return on avg common equity 7.65% 7.69% 8.48%
Return on tangible common equity 12.13% 12.22% 13.52%
Net interest margin(1) 4.04% 4.04% 4.14%
Core earnings(2) $26.8 million $22.5 million $25.1 million
Diluted core earnings per share(2) $.84 $.71 $.82
Core return on avg assets(2) 1.22% 1.09% 1.34%
Core return on avg common equity(2) 8.87% 7.83% 9.29%
Core return on tangible common equity(2) 13.99% 12.44% 14.76%
Core net interest margin(1)(2) 3.79% 3.80% 3.86%
Efficiency ratio 56.04% 60.92% 57.33%
(1) Fully tax equivalent.
(2) Core earnings excludes non-core items, which is a non-GAAP measurement.

Loans

Total loans, including those acquired, were $6.2 billion at June 30, 2017, an increase of $1.2 billion, or 24.2% from June 30, 2016. Legacy loans (all loans excluding acquired loans) were $5.0 billion at June 30, 2017, an increase of $1.3 billion, or 34.2% from June 30, 2016. Acquired loans were $1.2 billion at June 30, 2017, a decrease of $63.7 million, or 4.9% from June 30, 2016.

On a linked-quarter basis (June 30, 2017 compared to March 31, 2017), total loans increased $448 million, or 7.8%. The increase was due to:

  • $253 million increase from loans acquired from the First South Bank acquisition
  • $26 million decrease in liquidating portfolio (indirect lending and consumer finance)
  • $35 million increase from participations purchased from Southwest Bank
  • $270 million in legacy loan growth (strong growth in Springfield, Northwest Arkansas, Kansas City, St. Louis and Little Rock)
  • $84 million decrease in the existing acquired loan portfolio due to migration (acquired to legacy), normal loan paydowns and loan sales

Deposits

At June 30, 2017, total deposits were $7.1 billion, an increase of $1.1 billion, or 17.8%, compared with the same period in 2016. The majority of this increase is from deposits acquired in acquisitions. Total non-time deposits were $5.8 billion, an increase of $1.0 billion, or 20.1% compared to the same period in 2016, and comprised 82% of total deposits.

Net Interest Income

The Company’s net interest income for the second quarter of 2017 was $76.8 million, an increase of $10.2 million, or 15.4%, from the same period of 2016. Included in interest income was the yield accretion recognized on acquired loans of $4.8 million and $4.7 million for the second quarter of 2017 and 2016, respectively. Net interest margin was 4.04% for the quarter ended June 30, 2017, a 10 basis point decline from the same quarter of 2016. The Company’s core net interest margin, excluding the accretion, was 3.79% for the second quarter of 2017, a 7 basis point decline from June 30, 2016 and a 1 basis point decrease from March 31, 2017. Cost of interest bearing deposits were 0.36% for the second quarter of 2017, a 4 basis point increase from June 30, 2016 and a 3 basis point increase from March 31, 2017.

Provision for Loan Losses

Provision for loan losses for the second quarter of 2017 was $7.0 million, an increase of $2.4 million compared with June 30, 2016. The increase was a result of a provision of $714,000 for acquired loans due to a loan sale during the quarter and a provision due to much higher than expected loan growth during the quarter.

Non-Interest Income

Non-interest income for the second quarter was $35.7 million, a decrease of $1.1 million compared with the second quarter of 2016. The decrease was driven primarily by the net of the following:

  • $835,000 decrease in mortgage revenue due to decline in demand in the industry. SBA revenue was flat compared to 2016, but increased $912,000 from the first quarter 2017.
  • $544,000 decrease in investment banking revenue, due to the exit from the institutional division of the broker dealer line of business in the third quarter of 2016.
  • $1.5 million decrease in gain on sale of securities. During the quarter, the Company sold approximate $150 million in securities to provide liquidity for the strong loan demand. The sale resulted in a $2.2 million pre-tax gain.
  • Trust income, service charges on deposits and debit card fees increased from organic growth and the impact from our recent acquisitions.

Non-Interest Expense

Non-interest expense for the second quarter of 2017 was $71.4 million, an increase of $7.3 million compared to the second quarter of 2016. Included in this quarter were $6.7 million of merger-related expenses and branch rightsizing costs. Excluding these expenses, core non-interest expense was $64.7 million.

Included in the second quarter of 2017 expenses were operating expenses related to the additions of First South Bank which closed during the quarter and Citizens Bank which closed in September 2016. The increase in other operating expense was primarily driven by increased professional services. Professional services increased $1 million, which was primarily related to the continued preparations for crossing the $10 billion asset threshold. The efficiency ratio for the second quarter was 56.04%.

Asset Quality

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

At June 30, 2017, the allowance for loan losses for legacy loans was $41.4 million. The Company's allowance for loan losses on legacy loans at June 30, 2017 was 0.83% of total loans and 72% of non-performing loans. In the legacy portfolio, non-performing loans as a percent of total loans were 1.15%.

The allowance for loan losses for acquired loans was $391,000 and the acquired loan discount credit mark was $28.4 million. The allowances for loan losses and credit marks provide a total of $70.2 million of coverage, which equates to a total coverage ratio of 1.1% of gross loans. The ratio of credit mark and related allowance to acquired loans was 2.3%.

The 2017 annualized net charge-off ratio was 21 basis points. Excluding credit cards, the net charge-off ratio was 15 basis points.

Loan Sale

During the quarter, 35 classified loans were sold with a discounted principal balance of $13.8 million, which included $7.3 million of legacy loans and $6.5 million of acquired loans. The acquired loan portion of the sale resulted in a benefit of $1.4 million accretion income and a $714,000 increase in provision expense for acquired loans, resulting in a net benefit of approximately $700,000.

Capital

At June 30, 2017, common stockholders' equity was $1.2 billion, book value per share was $38.31 and tangible book value per share was $24.71. The Company's ratio of stockholders' equity to total assets was 13.6% and its ratio of tangible common equity to tangible assets was 9.2%. Regulatory tier 1 leverage ratio was 10.8% and regulatory total risk-based capital ratio was 13.7%.

Pending Acquisition Update

The Company previously announced the acquisition of Southwest Bancorp, Inc. (NASDAQ-GS:OKSB) in Stillwater, OK and First Texas BHC, Inc. in Ft. Worth, TX. The merger applications for these transactions were filed on July 14, 2017. Conversion and integration plans are in process. Subject to regulatory approval and the satisfaction of other closing conditions, the Company anticipates a closing date as early as October 2017 or as late as January 2018.

Simmons First National Corporation

Simmons First National Corp. is a financial holding company, headquartered in Pine Bluff, Ark., with total assets of $9.1 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, July 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 40252860. 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, changes in the assumptions used in making the forward-looking statements, and the Company’s ability to obtain regulatory approvals and meet other closing conditions associated with the above-described mergers and acquisitions 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 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
(Unaudited) 2017
2017
2016
2016
2016
($ in thousands)
ASSETS
Cash and non-interest bearing balances due from banks $127,600 $103,875 $117,007 $112,572 $96,037
Interest bearing balances due from banks 212,547 201,406 168,652 324,951 151,570
Federal funds sold 4,500 - - 17,000 3,000
Cash and cash equivalents 344,647 305,281 285,659 454,523 250,607
Interest bearing balances due from banks - time 6,057 4,563 4,563 4,393 9,781
Investment securities - held-to-maturity 419,003 431,176 462,096 496,594 632,154
Investment securities - available-for-sale 1,190,600 1,257,813 1,157,354 1,024,206 821,372
Mortgage loans held for sale 16,266 9,754 27,788 28,069 30,529
Assets held in trading accounts 50 55 41 2,969 7,321
Loans:
Legacy loans 5,000,572 4,632,905 4,327,207 3,943,089 3,725,422
Allowance for loan losses (41,379) (37,865) (36,286) (34,094) (33,523)
Loans acquired, net of discount and allowance 1,224,739 1,144,291 1,305,683 1,458,198 1,288,435
Net loans 6,183,932 5,739,331 5,596,604 5,367,193 4,980,334
Premises and equipment 230,641 221,880 199,359 192,523 183,362
Premises held for sale - 4,611 6,052 6,732 6,167
Foreclosed assets 26,012 26,421 26,895 30,396 30,529
Interest receivable 27,337 26,089 27,788 27,390 24,150
Bank owned life insurance 148,134 139,439 138,620 138,298 130,943
Goodwill 379,437 350,035 348,505 348,769 327,686
Other intangible assets 58,528 51,408 52,959 54,268 50,329
Other assets 37,664 58,782 65,773 50,669 48,955
Total assets $ 9,068,308 $ 8,626,638 $ 8,400,056 $ 8,226,992 $ 7,534,219
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts $1,650,986 $1,554,675 $1,491,676 $1,473,420 $1,283,426
Interest bearing transaction accounts and savings deposits 4,141,426 3,987,730 3,956,483 3,815,939 3,538,808
Time deposits less than $100,000 645,855 653,538 686,780 653,105 643,081
Time deposits greater than $100,000 665,268 592,345 600,280 674,917 562,888
Total deposits 7,103,535 6,788,288 6,735,219 6,617,381 6,028,203
Federal funds purchased and securities sold
under agreements to repurchase 121,419 110,007 115,029 124,289 103,038
Other borrowings 474,962 441,074 273,159 215,276 191,827
Subordinated debentures 67,312 60,503 60,397 60,290 60,184
Accrued interest and other liabilities 67,004 55,877 65,141 62,615 60,256
Total liabilities 7,834,232 7,455,749 7,248,945 7,079,851 6,443,508
Stockholders' equity:
Common stock 322 314 313 313 304
Surplus 714,435 716,564 711,976 710,132 668,306
Undivided profits 530,641 468,309 454,034 434,579 417,863
Accumulated other comprehensive income (loss):
Unrealized appreciation (depreciation) on AFS securities (11,322) (14,298) (15,212) 2,117 4,238
Total stockholders' equity 1,234,076 1,170,889 1,151,111 1,147,141 1,090,711
Total liabilities and stockholders' equity $ 9,068,308 $ 8,626,638 $ 8,400,056 $ 8,226,992 $ 7,534,219
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Simmons First National Corporation SFNC
Consolidated Statements of Income - Quarter-to-Date
For the Quarters Ended Jun 30Mar 31Dec 31Sep 30Jun 30
(Unaudited) 2017 2017 2016 2016 2016
($ in thousands, except per share data)
INTEREST INCOME
Loans $73,549 $68,728 $70,887 $65,078 $63,009
Federal funds sold 13 1 11 19 17
Investment securities 9,990 9,451 8,700 7,774 8,499
Mortgage loans held for sale 145 126 230 299 295
Assets held in trading accounts - - 3 4 3
Interest bearing balances due from banks 201 121 234 244 77
TOTAL INTEREST INCOME 83,898 78,427 80,065 73,418 71,900
INTEREST EXPENSE
Time deposits 1,832 1,758 2,023 1,767 1,741
Other deposits 2,984 2,446 2,032 1,965 2,035
Federal funds purchased and securities
sold under agreements to repurchase 92 75 90 59 59
Other borrowings 1,559 1,194 1,034 1,048 938
Subordinated debentures 619 574 558 516 544
TOTAL INTEREST EXPENSE 7,086 6,047 5,737 5,355 5,317
NET INTEREST INCOME 76,812 72,380 74,328 68,063 66,583
Provision for loan losses 7,023 4,307 4,332 8,294 4,616
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 69,789 68,073 69,996 59,769 61,967
NON-INTEREST INCOME
Trust income 4,113 4,212 4,282 3,873 3,656
Service charges on deposit accounts 8,483 8,102 8,666 8,771 7,661
Other service charges and fees 2,515 2,197 4,026 3,261 2,718
Mortgage and SBA lending income 3,961 2,423 4,580 4,339 4,730
Investment banking income 637 690 472 1,131 1,181
Debit and credit card fees 8,659 7,934 8,027 7,825 7,688
Bank owned life insurance income 859 818 895 606 826
Gain on sale of securities, net 2,236 63 1,445 315 3,759
Other income 4,281 3,621 3,722 6,755 4,669
TOTAL NON-INTEREST INCOME 35,744 30,060 36,115 36,876 36,888
NON-INTEREST EXPENSE
Salaries and employee benefits 34,205 35,536 33,797 31,784 33,103
Occupancy expense, net 4,868 4,663 4,516 4,690 4,990
Furniture and equipment expense 4,550 4,443 4,387 4,272 4,077
Other real estate and foreclosure expense 517 589 679 1,849 967
Deposit insurance 780 680 89 1,136 1,096
Merger-related costs 6,603 524 2,846 1,524 372
Other operating expenses 19,885 19,887 20,411 17,179 19,532
TOTAL NON-INTEREST EXPENSE 71,408 66,322 66,725 62,434 64,137
NET INCOME BEFORE INCOME TAXES 34,125 31,811 39,386 34,211 34,718
Provision for income taxes 11,060 9,691 12,415 10,782 11,809
NET INCOME $ 23,065 $ 22,120 $ 26,971 $ 23,429 $ 22,909
BASIC EARNINGS PER SHARE $ 0.72 $ 0.71 $ 0.86 $ 0.77 $ 0.75
DILUTED EARNINGS PER SHARE $ 0.72 $ 0.70 $ 0.85 $ 0.76 $ 0.75
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Simmons First National Corporation SFNC
Consolidated Risk-Based Capital
For the Quarters Ended Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
(Unaudited) 2017
2017
2016
2016
2016
($ in thousands)
Tier 1 capital
Stockholders' equity $1,234,076 $1,170,889 $1,151,111 $1,147,141 $1,090,711
Trust preferred securities, net allowable 67,312 60,503 60,397 60,290 60,184
Disallowed intangible assets, net of deferred tax (406,990) (361,944) (354,028) (354,582) (334,395)
Unrealized loss (gain) on AFS securities 11,322 14,298 15,212 (2,117) (4,238)
Other - - 15 - -
Total Tier 1 capital 905,720 883,746 872,707 850,732 812,262
Tier 2 capital
Qualifying unrealized gain on AFS equity securities 1 2 - - -
Qualifying allowance for loan losses and
reserve for unfunded commitments 45,369 41,303 40,241 38,050 37,240
Total Tier 2 capital 45,370 41,305 40,241 38,050 37,240
Total risk-based capital $951,090 $925,051 $912,948 $888,782 $849,502
Common equity
Tier 1 capital $905,720 $883,746 $872,707 $850,732 $812,262
Less: Trust preferred securities (67,312) (60,503) (60,397) (60,290) (60,184)
Total common equity $838,408 $823,243 $812,310 $790,442 $752,078
Risk weighted assets $6,925,727 $6,425,150 $6,039,034 $5,724,052 $5,343,355
Adjusted average assets for leverage ratio $8,424,763 $8,076,525 $7,966,681 $7,355,702 $7,185,633
Ratios at end of quarter
Equity to assets 13.61% 13.57% 13.70% 13.94% 14.48%
Tangible common equity to tangible assets (1) 9.22% 9.35% 9.37% 9.51% 9.96%
Common equity Tier 1 ratio (CET1) 12.11% 12.81% 13.45% 13.81% 14.08%
Tier 1 leverage ratio 10.75% 10.94% 10.95% 11.57% 11.30%
Tier 1 risk-based capital ratio 13.08% 13.75% 14.45% 14.86% 15.20%
Total risk-based capital ratio 13.73% 14.40% 15.12% 15.53% 15.90%
(1) Calculations of tangible common equity to tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release.
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Simmons First National Corporation SFNC
Consolidated Loans and Investments
For the Quarters Ended Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
(Unaudited) 2017 2017 2016 2016 2016
($ in thousands)
Legacy Loan Portfolio - End of Period (1)
Consumer
Credit cards $176,953 $171,947 $184,591 $175,032 $171,468
Other consumer 366,136 349,200 303,972 275,947 248,018
Total consumer 543,089 521,147 488,563 450,979 419,486
Real Estate
Construction 457,896 365,051 336,759 304,082 330,666
Single-family residential 1,014,412 957,717 904,245 841,958 785,289
Other commercial 2,089,707 1,959,677 1,787,075 1,521,132 1,414,663
Total real estate 3,562,015 3,282,445 3,028,079 2,667,172 2,530,618
Commercial
Commercial 678,932 657,606 639,525 607,738 577,771
Agricultural 191,345 141,125 150,378 203,529 187,047
Total commercial 870,277 798,731 789,903 811,267 764,818
Other 25,191 30,582 20,662 13,671 10,500
Total Loans $ 5,000,572 $ 4,632,905 $ 4,327,207 $ 3,943,089 $ 3,725,422
(1) Excludes all acquired loans.
Investment Securities - End of Period
Held-to-Maturity
U.S. Government agencies $67,912 $68,895 $76,875 $80,849 $199,505
Mortgage-backed securities 17,882 18,743 19,773 21,454 22,612
State and political subdivisions 331,249 341,854 362,532 391,495 407,273
Other securities 1,960 1,684 2,916 2,796 2,765
Total held-to-maturity 419,003 431,176 462,096 496,594 632,155
Available-for-Sale
U.S. Treasury $19,997 $- $300 $63,985 $4,305
U.S. Government agencies 147,619 142,356 137,771 148,781 58,113
Mortgage-backed securities 878,205 927,277 868,324 699,748 652,425
State and political subdivisions 83,672 130,747 102,943 67,019 64,836
FHLB stock 21,772 19,149 12,235 11,235 8,781
Other securities 39,335 38,285 35,781 33,438 32,911
Total available-for-sale 1,190,600 1,257,814 1,157,354 1,024,206 821,371
Total investment securities $ 1,609,603 $ 1,688,990 $ 1,619,450 $ 1,520,800 $ 1,453,526
Fair value - HTM investment securities $ 425,263 $ 435,701 $ 465,960 $ 508,910 $ 647,293
Investment Securities - QTD Average
Taxable securities $1,244,071 $1,185,794 $1,146,703 $963,150 $1,059,802
Tax exempt securities 467,420 455,481 467,757 466,782 443,492
Total investment securities - QTD average $ 1,711,491 $ 1,641,275 $ 1,614,460 $ 1,429,932 $ 1,503,294
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Simmons First National Corporation SFNC
Consolidated Loans and Credit Coverage
For the Quarters Ended Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
(Unaudited) 2017
2017
2016
2016
2016
($ in thousands)
LOANS
Legacy loans $5,000,572 $4,632,905 $4,327,207 $3,943,089 $3,725,422
Allowance for loan losses (legacy loans) (41,379) (37,865) (36,286) (34,094) (33,523)
Legacy loans (net of allowance) 4,959,193 4,595,040 4,290,921 3,908,995 3,691,899
Loans acquired 1,253,539 1,173,667 1,342,099 1,502,051 1,327,683
Credit discount (28,409) (28,941) (35,462) (42,899) (38,294)
Allowance for loan losses (loans acquired) (391) (435) (954) (954) (954)
Loans acquired (net of discount and allowance) 1,224,739 1,144,291 1,305,683 1,458,198 1,288,435
Net loans $ 6,183,932 $ 5,739,331 $ 5,596,604 $ 5,367,193 $ 4,980,334
Loan Coverage Ratios
Allowance for loan losses to legacy loans 0.83% 0.82% 0.84% 0.86% 0.90%
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) 2.30% 2.50% 2.71% 2.92% 2.96%
Total allowance and credit coverage (non-GAAP) (1) 1.12% 1.16% 1.28% 1.43% 1.44%
(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 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
(Unaudited) 2017
2017
2016
2016
2016
($ in thousands)
Allowance for Loan Losses (Legacy Loans)
Balance, beginning of quarter $ 37,865 $ 36,286 $ 34,094 $ 33,523 $ 32,681
Loans charged off
Credit cards 901 1,044 935 699 702
Other consumer 993 1,174 493 600 489
Real estate 1,712 656 167 6,297 824
Commercial 349 292 913 284 2,283
Total loans charged off 3,955 3,166 2,508 7,880 4,298
Recoveries of loans previously charged off
Credit cards 277 236 213 199 253
Other consumer 636 690 158 106 149
Real estate 216 232 73 55 111
Commercial 32 30 28 12 318
Total recoveries 1,161 1,188 472 372 831
Net loans charged off 2,794 1,978 2,036 7,508 3,467
Provision for loan losses 6,308 3,557 4,228 8,079 4,309
Balance, end of quarter $ 41,379 $ 37,865 $ 36,286 $ 34,094 $ 33,523
Non-performing assets (1) (2)
Non-performing loans
Nonaccrual loans 57,127 52,913 39,104 37,392 43,305
Loans past due 90 days or more 281 231 299 144 227
Total non-performing loans 57,408 53,144 39,403 37,536 43,532
Other non-performing assets
Foreclosed assets held for sale (2) 26,012 26,421 26,895 30,396 30,529
Other non-performing assets 485 352 471 621 519
Total other non-performing assets 26,497 26,773 27,366 31,017 31,048
Total non-performing assets $ 83,905 $ 79,917 $ 66,769 $ 68,553 $ 74,580
Performing TDRs (troubled debt restructurings) $8,794 $10,833 $10,998 $13,604 $10,887
Ratios (1) (2)
Allowance for loan losses to total loans 0.83% 0.82% 0.84% 0.86% 0.90%
Allowance for loan losses to non-performing loans 72% 71% 92% 91% 77%
Non-performing loans to total loans 1.15% 1.15% 0.91% 0.95% 1.17%
Non-performing assets (including performing TDRs)
to total assets 1.02% 1.05% 0.93% 1.00% 1.13%
Non-performing assets to total assets 0.93% 0.93% 0.79% 0.83% 0.99%
Annualized net charge offs to total loans 0.23% 0.18% 0.20% 0.82% 0.39%
Annualized net credit card charge offs to
total credit card loans 1.42% 1.84% 1.66% 1.14% 1.07%
Annualized net charge offs to total loans
(excluding credit cards) 0.19% 0.11% 0.14% 0.81% 0.36%
(1) Excludes all acquired loans, except for their inclusion in total assets.
(2) Includes acquired foreclosed assets held for sale.
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Simmons First National Corporation SFNC
Consolidated - Average Balance Sheet and Net Interest Income Analysis
For the Quarters Ended
(Unaudited)
Three Months Ended
Jun 2017
Three Months Ended
Mar 2017
Three Months Ended
Jun 2016
($ 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 $160,318 $201 0.50% $131,079 $121 0.37% $126,114 $77 0.25%
Federal funds sold 3,078 13 1.69% 249 1 1.63% 2,570 17 2.66%
Investment securities - taxable 1,374,261 6,874 2.01% 1,292,441 6,477 2.03% 1,087,179 5,939 2.20%
Investment securities - non-taxable (FTE) 337,230 5,118 6.09% 348,834 4,884 5.68% 416,115 4,203 4.06%
Mortgage loans held for sale 12,250 145 4.75% 11,473 126 4.45% 28,844 295 4.11%
Assets held in trading accounts 52 - 0.00% 48 - 0.00% 6,932 3 0.17%
Loans, including acquired loans 5,954,019 73,629 4.96% 5,685,585 68,783 4.91% 4,957,888 63,041 5.11%
Total interest earning assets (FTE) 7,841,208 85,980 4.40% 7,469,709 80,392 4.36% 6,625,642 73,575 4.47%
Non-earning assets 971,252 944,761 896,491
Total assets $ 8,812,460 $ 8,414,470 $ 7,522,133
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Interest bearing transaction and
savings accounts $4,069,179 $2,984 0.29% $3,950,169 $2,446 0.25% $3,526,278 $2,035 0.23%
Time deposits 1,277,336 1,832 0.58% 1,262,430 1,758 0.56% 1,242,805 1,741 0.56%
Total interest bearing deposits 5,346,515 4,816 0.36% 5,212,599 4,204 0.33% 4,769,083 3,776 0.32%
Federal funds purchased and securities
sold under agreement to repurchase 115,101 92 0.32% 111,474 75 0.27% 104,668 59 0.23%
Other borrowings 434,584 1,559 1.44% 345,664 1,194 1.40% 172,268 938 2.19%
Subordinated debentures 64,019 619 3.88% 60,452 574 3.85% 60,132 544 3.64%
Total interest bearing liabilities 5,960,219 7,086 0.48% 5,730,189 6,047 0.43% 5,106,151 5,317 0.42%
Non-interest bearing liabilities:
Non-interest bearing deposits 1,597,550 1,466,501 1,271,878
Other liabilities 45,348 51,307 57,486
Total liabilities 7,603,117 7,247,997 6,435,515
Stockholders' equity 1,209,343 1,166,473 1,086,618
Total liabilities and stockholders' equity $ 8,812,460 $ 8,414,470 $ 7,522,133
Net interest income (FTE) $ 78,894 $ 74,345 $ 68,258
Net interest spread (FTE) 3.92% 3.93% 4.05%
Net interest margin (FTE) - quarter-to-date 4.04% 4.04% 4.14%
Net interest margin (FTE) - year-to-date 4.04% 4.04% 4.28%
Core net interest margin (FTE) - quarter-to-date (1) 3.79% 3.80% 3.86%
Core loan yield (FTE) - quarter-to-date (1) 4.63% 4.59% 4.73%
Core net interest margin (FTE) - year-to-date (1) 3.79% 3.80% 3.89%
Core loan yield (FTE) - year-to-date (1) 4.61% 4.59% 4.77%
(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 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
(Unaudited) 2017
2017
2016
2016
2016
($ in thousands, except share data)
QUARTER-TO-DATE
Financial Highlights - GAAP
Net Income $23,065 $22,120 $26,971 $23,429 $22,909
Diluted earnings per share 0.72 0.70 0.85 0.76 0.75
Return on average assets 1.05% 1.07% 1.29% 1.21% 1.22%
Return on average common equity 7.65% 7.69% 9.27% 8.36% 8.48%
Return on tangible common equity 12.13% 12.22% 14.71% 13.26% 13.52%
Net interest margin (FTE) 4.04% 4.04% 4.12% 4.08% 4.14%
FTE adjustment 2,082 1,965 1,994 1,969 1,675
Amortization of intangibles 1,553 1,550 1,533 1,503 1,451
Amortization of intangibles, net of taxes 944 942 932 913 882
Average diluted shares outstanding 32,025,780 31,612,900 31,592,713 30,843,714 30,452,285
Cash dividends declared per common share 0.25 0.25 0.24 0.24 0.24
Financial Highlights - Core (non-GAAP)
Core earnings (excludes non-core items) (1) $26,753 $22,532 $28,751 $24,382 $25,091
Diluted core earnings per share (1) 0.84 0.71 0.91 0.79 0.82
Core net interest margin (FTE) (2) 3.79% 3.80% 3.76% 3.79% 3.86%
Accretable yield on acquired loans 4,792 4,427 6,552 4,928 4,700
Efficiency ratio (1) 56.04% 60.92% 55.47% 53.94% 57.33%
Core return on average assets (1) 1.22% 1.09% 1.38% 1.26% 1.34%
Core return on average common equity (1) 8.87% 7.83% 9.89% 8.71% 9.29%
Core return on tangible common equity (1) 13.99% 12.44% 15.65% 13.78% 14.76%
YEAR-TO-DATE
Financial Highlights - GAAP
Net Income $45,185 $22,120 $96,790 $69,819 $46,390
Diluted earnings per share 1.42 0.70 3.13 2.28 1.52
Return on average assets 1.06% 1.07% 1.25% 1.23% 1.24%
Return on average common equity 7.67% 7.69% 8.75% 8.57% 8.67%
Return on tangible common equity 12.17% 12.22% 13.92% 13.68% 13.90%
Net interest margin (FTE) 4.04% 4.04% 4.19% 4.21% 4.28%
FTE adjustment 4,047 1,965 7,722 5,728 3,759
Amortization of intangibles 3,103 1,550 5,942 4,409 2,906
Amortization of intangibles, net of taxes 1,886 942 3,611 2,679 1,766
Average diluted shares outstanding 31,794,363 31,612,900 30,963,546 30,656,882 30,438,939
Cash dividends declared per common share 0.50 0.25 0.96 0.72 0.48
Financial Highlights - Core (non-GAAP)
Core earnings (excludes non-core items) (1) $49,285 $22,532 $101,409 $72,658 $48,276
Diluted core earnings per share (1) 1.55 0.71 3.28 2.37 1.59
Core net interest margin (FTE) (2) 3.79% 3.80% 3.83% 3.86% 3.89%
Accretable yield on acquired loans 9,219 4,427 24,257 17,705 12,777
Efficiency ratio (1) 58.40% 60.92% 56.32% 56.62% 58.03%
Core return on average assets (1) 1.15% 1.09% 1.31% 1.28% 1.29%
Core return on average common equity (1) 8.37% 7.83% 9.17% 8.91% 9.02%
Core return on tangible common equity (1) 13.23% 12.44% 14.56% 14.22% 14.45%
END OF PERIOD
Book value per share $38.31 $37.30 $36.80 $36.69 $35.86
Tangible book value per share 24.71 24.51 23.97 23.80 23.43
Shares outstanding 32,212,832 31,388,357 31,277,723 31,267,614 30,415,980
Full-time equivalent employees 1,919 1,876 1,875 1,985 1,880
Total number of ATM's 197 187 186 186 174
Total number of financial centers 161 151 150 150 140
(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 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
(Unaudited) 2017
2017
2016
2016
2016
($ in thousands, except per share data)
QUARTER-TO-DATE
Net Income $23,065 $22,120 $26,971 $23,429 $22,909
Non-core items
Merger-related costs 6,603 524 2,846 1,524 372
Branch right-sizing (536) 154 83 43 3,219
Tax effect (1) (2,379) (266) (1,149) (614) (1,409)
Net non-core items 3,688 412 1,780 953 2,182
Core earnings (non-GAAP) $ 26,753 $ 22,532 $ 28,751 $ 24,382 $ 25,091
Diluted earnings per share $0.72 $0.70 $0.85 $0.76 $0.75
Non-core items
Merger-related costs 0.21 0.02 0.09 0.05 0.01
Branch right-sizing (0.02) - - - 0.11
Tax effect (1) (0.07) (0.01) (0.03) (0.02) (0.05)
Net non-core items 0.12 0.01 0.06 0.03 0.07
Core earnings (non-GAAP) $ 0.84 $ 0.71 $ 0.91 $ 0.79 $ 0.82
YEAR-TO-DATE
Net Income $45,185 $22,120 $96,790 $69,819 $46,390
Non-core items
Gain from early retirement of trust preferred securities - - (594) (594) (594)
Merger-related costs 7,127 524 4,835 1,989 465
Branch right-sizing (382) 154 3,359 3,276 3,233
Tax effect (1) (2,645) (266) (2,981) (1,832) (1,218)
Net non-core items 4,100 412 4,619 2,839 1,886
Core earnings (non-GAAP) $ 49,285 $ 22,532 $ 101,409 $ 72,658 $ 48,276
Diluted earnings per share $1.42 $0.70 $3.13 $2.28 $1.52
Non-core items
Gain from early retirement of trust preferred securities - - (0.02) (0.02) (0.02)
Merger-related costs 0.22 0.02 0.16 0.06 0.02
Branch right-sizing (0.01) - 0.11 0.11 0.11
Tax effect (1) (0.08) (0.01) (0.10) (0.06) (0.04)
Net non-core items 0.13 0.01 0.15 0.09 0.07
Core earnings (non-GAAP) $ 1.55 $ 0.71 $ 3.28 $ 2.37 $ 1.59
(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) Jun 30 Mar 31 Dec 31 Sept 30 Jun 30
2017
2017
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 common stockholders' equity $1,234,076 $1,170,889 $1,151,111 $1,147,141 $1,090,711
Intangible assets:
Goodwill (379,437) (350,035) (348,505) (348,769) (327,686)
Other intangible assets (58,528) (51,408) (52,959) (54,268) (50,329)
Total intangibles (437,965) (401,443) (401,464) (403,037) (378,015)
Tangible common stockholders' equity $ 796,111 $ 769,446 $ 749,647 $ 744,104 $ 712,696
Total assets $9,068,308 $8,626,638 $8,400,056 $8,226,992 $7,534,219
Intangible assets:
Goodwill (379,437) (350,035) (348,505) (348,769) (327,686)
Other intangible assets (58,528) (51,408) (52,959) (54,268) (50,329)
Total intangibles (437,965) (401,443) (401,464) (403,037) (378,015)
Tangible assets $ 8,630,343 $ 8,225,195 $ 7,998,592 $ 7,823,955 $ 7,156,204
Ratio of equity to assets 13.61% 13.57% 13.70% 13.94% 14.48%
Ratio of tangible common equity to tangible assets 9.22% 9.35% 9.37% 9.51% 9.96%
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 $28,409 $28,941 $35,462 $42,899 $38,294
Allowance for loan losses on acquired loans 391 435 954 954 954
Total credit discount and ALLL on acquired loans $ 28,800 $ 29,376 $ 36,416 $ 43,853 $ 39,248
Total loans acquired $ 1,253,539 $ 1,173,667 $ 1,342,099 $ 1,502,051 $ 1,327,683
Discount and ALLL on acquired loans to acquired loans 2.30% 2.50% 2.71% 2.92% 2.96%
Calculation of Total Allowance and Credit Coverage
Allowance for loan losses $41,379 $37,865 $36,286 $34,094 $33,523
Total credit discount and ALLL on acquired loans 28,800 29,376 36,416 43,853 39,248
Total allowance and credit discount $ 70,179 $ 67,241 $ 72,702 $ 77,947 $ 72,771
Total loans $ 6,254,155 $ 5,806,572 $ 5,669,306 $ 5,445,140 $ 5,053,105
Total allowance and credit coverage 1.12% 1.16% 1.28% 1.43% 1.44%
Calculation of Tangible Book Value per Share
Total common stockholders' equity $1,234,076 $1,170,889 $1,151,111 $1,147,141 $1,090,711
Intangible assets:
Goodwill (379,437) (350,035) (348,505) (348,769) (327,686)
Other intangible assets (58,528) (51,408) (52,959) (54,268) (50,329)
Total intangibles (437,965) (401,443) (401,464) (403,037) (378,015)
Tangible common stockholders' equity $ 796,111 $ 769,446 $ 749,647 $ 744,104 $ 712,696
Shares of common stock outstanding 32,212,832 31,388,357 31,277,723 31,267,614 30,415,980
Book value per common share $ 38.31 $ 37.30 $ 36.80 $ 36.69 $ 35.86
Tangible book value per common share $ 24.71 $ 24.51 $ 23.97 $ 23.80 $ 23.43
Page 10

Simmons First National Corporation SFNC
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date
For the Quarters Ended
(Unaudited) Jun 30Mar 31Dec 31Sept 30Jun 30
2017
2017
2016
2016
2016
($ in thousands)
Calculation of Core Return on Average Assets
Net income $23,065 $22,120 $26,971 $23,429 $22,909
Net non-core items, net of taxes, adjustment 3,688 412 1,780 953 2,182
Core earnings $ 26,753 $ 22,532 $ 28,751 $ 24,382 $ 25,091
Average total assets $ 8,812,460 $ 8,414,470 $ 8,308,458 $ 7,703,837 $ 7,522,133
Return on average assets 1.05% 1.07% 1.29% 1.21% 1.22%
Core return on average assets 1.22% 1.09% 1.38% 1.26% 1.34%
Calculation of Return on Tangible Common Equity
Net income $23,065 $22,120 $26,971 $23,429 $22,909
Amortization of intangibles, net of taxes 944 942 932 913 882
Total income available to common stockholders $ 24,009 $ 23,062 $ 27,903 $ 24,342 $ 23,791
Net non-core items, net of taxes 3,688 412 1,780 953 2,182
Core earnings 26,753 22,532 28,751 24,382 25,091
Amortization of intangibles, net of taxes 944 942 932 913 882
Total core income available to common stockholders $ 27,697 $ 23,474 $ 29,683 $ 25,295 $ 25,973
Average common stockholders' equity $1,209,343 $1,166,473 $1,156,933 $1,114,252 $1,086,618
Average intangible assets:
Goodwill (362,925) (348,837) (348,597) (332,893) (327,686)
Other intangibles (52,419) (52,169) (53,646) (50,893) (51,043)
Total average intangibles (415,344) (401,006) (402,243) (383,786) (378,729)
Average tangible common stockholders' equity $ 793,999 $ 765,467 $ 754,690 $ 730,466 $ 707,889
Return on average common equity 7.65% 7.69% 9.27% 8.36% 8.48%
Return on tangible common equity 12.13% 12.22% 14.71% 13.26% 13.52%
Core return on average common equity 8.87% 7.83% 9.89% 8.71% 9.29%
Core return on tangible common equity 13.99% 12.44% 15.65% 13.78% 14.76%
Calculation of Efficiency Ratio (1)
Non-interest expense $71,408 $66,322 $66,725 $62,434 $64,137
Non-core non-interest expense adjustment (6,700) (635) (2,995) (1,742) (3,591)
Other real estate and foreclosure expense adjustment (517) (550) (669) (1,787) (967)
Amortization of intangibles adjustment (1,553) (1,550) (1,533) (1,503) (1,451)
Efficiency ratio numerator $ 62,638 $ 63,587 $ 61,528 $ 57,402 $ 58,128
Net-interest income $76,812 $72,380 $74,328 $68,063 $66,583
Non-interest income 35,744 30,060 36,115 36,876 36,888
Non-core non-interest income adjustment (632) 43 (66) (175) -
Fully tax-equivalent adjustment 2,082 1,965 1,994 1,969 1,675
(Gain) loss on sale of securities (2,236) (63) (1,445) (315) (3,759)
Efficiency ratio denominator $ 111,770 $ 104,385 $ 110,926 $ 106,418 $ 101,387
Efficiency ratio (1) 56.04% 60.92% 55.47% 53.94% 57.33%
Calculation of Core Net Interest Margin
Net interest income $76,812 $72,380 $74,328 $68,063 $66,583
Fully tax-equivalent adjustment 2,082 1,965 1,994 1,969 1,675
Fully tax-equivalent net interest income 78,894 74,345 76,322 70,032 68,258
Total accretable yield (4,792) (4,427) (6,552) (4,928) (4,700)
Core net interest income $ 74,102 $ 69,918 $ 69,770 $ 65,104 $ 63,558
Average earning assets $ 7,841,208 $ 7,469,709 $ 7,373,236 $ 6,825,019 $ 6,625,642
Net interest margin 4.04% 4.04% 4.12% 4.08% 4.14%
Core net interest margin 3.79% 3.80% 3.76% 3.79% 3.86%
Calculation of Core Loan Yield
Loan interest income $73,549 $68,728 $70,887 $65,078 $63,009
Total accretable yield (4,792) (4,427) (6,552) (4,928) (4,700)
Core loan interest income $ 68,757 $ 64,301 $ 64,335 $ 60,150 $ 58,309
Average loan balance $ 5,954,019 $ 5,685,585 $ 5,484,918 $ 5,105,474 $ 4,957,888
Core loan yield 4.63% 4.59% 4.67% 4.69% 4.73%
(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) Jun 30 Mar 31 Dec 31 Sept 30 Jun 30
2017
2017
2016
2016
2016
($ in thousands)
Calculation of Core Return on Average Assets
��
Net income $45,185 $22,120 $96,790 $69,819 $46,390
Net non-core items, net of taxes, adjustment 4,100 412 4,619 2,839 1,886
Core earnings $ 49,285 $ 22,532 $ 101,409 $ 72,658 $ 48,276
Average total assets $ 8,613,240 $ 8,414,470 $ 7,760,233 $ 7,575,053 $ 7,510,657
Return on average assets 1.06% 1.07% 1.25% 1.23% 1.24%
Core return on average assets 1.15% 1.09% 1.31% 1.28% 1.29%
Calculation of Return on Tangible Common Equity
Net income $45,185 $22,120 $96,790 $69,819 $46,390
Amortization of intangibles, net of taxes 1,886 942 3,611 2,679 1,766
Total income available to common stockholders $ 47,071 $ 23,062 $ 100,401 $ 72,498 $ 48,156
Net non-core items, net of taxes 4,100 412 4,619 2,839 1,886
Core earnings 49,285 22,532 101,409 72,658 48,276
Amortization of intangibles, net of taxes 1,886 942 3,611 2,679 1,766
Total core income available to common stockholders $ 51,171 $ 23,474 $ 105,020 $ 75,337 $ 50,042
Average common stockholders' equity $1,187,906 $1,166,473 $1,105,775 $1,088,723 $1,075,957
Average intangible assets:
Goodwill (355,881) (348,837) (332,974) (329,422) (327,686)
Other intangibles (52,294) (52,169) (51,710) (51,478) (51,771)
Total average intangibles (408,175) (401,006) (384,684) (380,900) (379,457)
Average tangible common stockholders' equity $ 779,731 $ 765,467 $ 721,091 $ 707,823 $ 696,500
Return on average common equity 7.67% 7.69% 8.75% 8.57% 8.67%
Return on tangible common equity 12.17% 12.22% 13.92% 13.68% 13.90%
Core return on average common equity 8.37% 7.83% 9.17% 8.91% 9.02%
Core return on tangible common equity 13.23% 12.44% 14.56% 14.22% 14.45%
Calculation of Efficiency Ratio (1)
Non-interest expense $137,730 $66,322 $255,085 $188,360 $125,931
Non-core non-interest expense adjustment (7,335) (635) (8,435) (5,440) (3,698)
Other real estate and foreclosure expense adjustment (1,067) (550) (4,389) (3,720) (1,934)
Amortization of intangibles adjustment (3,103) (1,550) (5,942) (4,409) (2,906)
Efficiency ratio numerator $ 126,225 $ 63,587 $ 236,319 $ 174,791 $ 117,393
Net-interest income $149,192 $72,380 $279,206 $204,878 $136,814
Non-interest income 65,804 30,060 139,382 103,267 66,397
Non-core non-interest income adjustment (589) 43 (835) (769) (594)
Fully tax-equivalent adjustment 4,047 1,965 7,722 5,728 3,759
(Gain) loss on sale of securities (2,299) (63) (5,848) (4,403) (4,088)
Efficiency ratio denominator $ 216,155 $ 104,385 $ 419,627 $ 308,701 $ 202,288
Efficiency ratio (1) 58.40% 60.92% 56.32% 56.62% 58.03%
Calculation of Core Net Interest Margin
Net interest income $149,192 $72,380 $279,206 $204,878 $136,814
Fully tax-equivalent adjustment 4,047 1,965 7,722 5,728 3,759
Fully tax-equivalent net interest income 153,239 74,345 286,928 210,606 140,573
Total accretable yield (9,219) (4,427) (24,257) (17,705) (12,777)
Core net interest income $ 144,020 $ 69,918 $ 262,671 $ 192,901 $ 127,796
Average earning assets $ 7,653,177 $ 7,469,709 $ 6,855,322 $ 6,682,683 $ 6,611,516
Net interest margin 4.04% 4.04% 4.19% 4.21% 4.28%
Core net interest margin 3.79% 3.80% 3.83% 3.86% 3.89%
Calculation of Core Loan Yield
Loan interest income $142,277 $68,728 $265,652 $194,765 $129,688
Total accretable yield (9,219) (4,427) (24,257) (17,705) (12,777)
Core loan interest income $ 133,058 $ 64,301 $ 241,395 $ 177,060 $ 116,911
Average loan balance $ 5,819,803 $ 5,685,585 $ 5,109,492 $ 4,984,349 $ 4,923,787
Core loan yield 4.61% 4.59% 4.72% 4.75% 4.77%
(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