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Simmons Reports Third Quarter 2017 Earnings

PINE BLUFF, Ark., Oct. 22, 2017 (GLOBE NEWSWIRE) -- Simmons First National Corp. (NASDAQ:SFNC) today announced net income available to common shareholders of $28.9 million, or $0.89 per diluted share, for the quarter ended September 30, 2017, compared to $23.4 million, or $0.76 per diluted share, for the same period in 2016, a 17.1% increase. Included in third quarter 2017 results was $721,000 in net after-tax merger-related and branch right-sizing costs as well as a $1.8 million gain on the sale of insurance lines.

Excluding the impact of these items, core earnings were $27.7 million, or $0.86 per diluted share, for the quarter ended September 30, 2017, compared to $24.4 million, or $0.79 per diluted share, for the quarter ended September 30, 2016, an 8.9% increase.

Year-to-date net income was $74.0 million, or $2.31 diluted earnings per share. Excluding the net after-tax merger-related and branch right-sizing costs and the insurance gain, year-to-date core earnings were $77.0 million, or $2.41 diluted core earnings per share.

On October 19, 2017, Simmons First National Corp. completed the acquisitions of Southwest Bancorp, Inc. (NASDAQ:OKSB), headquartered in Stillwater, OK., including its wholly-owned bank subsidiary, Bank SNB, and First Texas BHC, Inc., headquartered in Ft. Worth, TX, including its wholly-owned subsidiary, Southwest Bank. With the completion of these acquisitions, the proforma combined total assets of the company are approximately $14.2 billion. The systems conversions are planned during the first half of 2018, at which time the subsidiary banks will be merged into Simmons Bank.

Simmons Bank was the successful bidder at a public auction held to discharge certain indebtedness owed to the Bank and became the sole shareholder of Heartland Bank in Little Rock, AR, on August 28, 2017. Heartland Bank remains a separately chartered state bank. Simmons is evaluating the next steps with respect to the institution.

On September 1, 2017, the insurance affiliates of the Company completed the sale of their property and casualty insurance business lines and an after-tax gain of $1.8 million was recognized on the transaction. Tangible common equity was positively impacted by $7.2 million due to a reduction in intangible assets related to the sold business.

Additionally, during the quarter, the Company completed its conversion and integration of First South Bank with and into its subsidiary, Simmons Bank.

“The third quarter was certainly an exciting and eventful quarter for us,” said George A. Makris, Jr., chairman and CEO. “We are pleased with the operating results from the third quarter and I am extremely proud of our associates’ ability to manage the significant transactions during the quarter while producing outstanding results. We are also excited to welcome the associates of Bank SNB and Southwest Bank to the Simmons family. We look forward to a great partnership.”

Selected Highlights:3rd Qtr 20172nd Qtr 2017 3rd Qtr 2016
Net income$28.9 million$23.1 million$23.4 million
Diluted earnings per share$0.89 $0.72 $0.76
Return on avg assets 1.25% 1.05% 1.21%
Return on avg common equity 9.12% 7.65% 8.36%
Return on tangible common equity 14.47% 12.13% 13.26%
Net interest margin(1) 3.91% 4.04% 4.08%
Core earnings(2)$27.7 million$26.8 million$24.4 million
Diluted core earnings per share(2)$0.86 $0.84 $0.79
Core return on avg assets(2) 1.20% 1.22% 1.26%
Core return on avg common equity(2) 8.77% 8.87% 8.71%
Core return on tangible common equity(2) 13.93% 13.99% 13.78%
Core net interest margin(1)(2) 3.77% 3.79% 3.79%
Efficiency ratio 55.06% 56.04% 53.94%
(1) Fully tax equivalent.
(2) Core earnings excludes non-core items, which is a non-GAAP measurement.


Loans

3rd Qtr 2017 2nd Qtr 2017 3rd Qtr 2016
Total loans$6.3 billion$6.2 billion$5.4 billion
Legacy loans (all loans excluding loans acquired) $5.2 billion$5.0 billion$3.9 billion
Loans acquired$1.1 billion$1.2 billion$1.5 billion

Total loans, including those acquired, were $6.3 billion at September 30, 2017, an increase of $902.1 million, or 16.7% from September 30, 2016.

On a linked-quarter basis (September 30, 2017 compared to June 30, 2017), total loans increased $78.0 million, or 1.3%. The increase was due to:

  • $30 million decrease in liquidating portfolio (indirect lending and consumer finance)
  • $13 million increase from participations purchased from Southwest Bank
  • $228 million in net legacy loan growth including $36 million of migrated loans (acquired to legacy)
  • $133 million decrease in the existing acquired loan portfolio including migration

Deposits

3rd Qtr 2017 2nd Qtr 2017 3rd Qtr 2016
Total deposits$7.3 billion$7.1 billion$6.6 billion
Non-time deposits $6.0 billion$5.8 billion$5.3 billion
Time deposits$1.3 billion$1.3 billion$1.3 billion

At September 30, 2017, total deposits were $7.3 billion, an increase of 10.7%, compared to the same period in 2016. The increase is from recent acquisitions and growth in core deposits. Total non-time deposits increased 13.7% compared to the same period in 2016, and comprised 82% of total deposits.

Net Interest Income

The Company’s net interest income for the third quarter of 2017 was $78.8 million, an increase of $10.8 million, or 15.8%, from the same period of 2016. Included in interest income was the yield accretion recognized on loans acquired of $2.9 million and $4.9 million for the third quarter of 2017 and 2016, respectively. Net interest margin was 3.91% for the quarter ended September 30, 2017, a 17 basis point decline from the same quarter of 2016. The Company’s core net interest margin, excluding the accretion, was 3.77% for the third quarter of 2017, a 2 basis point decline from September 30, 2016 and a 2 basis point decrease from June 30, 2017. Cost of interest bearing deposits were 0.43% for the third quarter of 2017, a 12 basis point increase from September 30, 2016 and a 7 basis point increase from June 30, 2017.

Non-Interest Income

Non-interest income for the third quarter was $36.3 million, a decrease of $544,000 compared with the third quarter of 2016. Included in non-interest income were the following items:

  • $3.7 million gain on sale of property and casualty insurance business lines
  • $325,000 loss on the sale of fixed assets
  • $1.2 million decrease in mortgage revenue due to decline in demand in the industry
  • $451,000 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
  • $312,000 decrease in gain on sale of securities
  • $2.0 million decrease in other income due to recovery of charged off loans acquired in third quarter of 2016

Non-Interest Expense

Non-interest expense for the third quarter of 2017 was $66.2 million, an increase of $3.7 million compared to the third quarter of 2016. Included in this quarter were $862,000 of merger-related expenses and branch rightsizing costs. Excluding these expenses, core non-interest expense was $65.3 million.

The increases during the quarter were driven by incremental increases in operating expenses related to the additions of First South Bank which closed during 2017 and Citizens Bank which closed in September 2016. These increases were partially offset by a $716,000 decrease in other real estate and foreclosure expense. The efficiency ratio for the third quarter was 55.06%.

Asset Quality

3rd Qtr 2017 2nd Qtr 2017 3rd Qtr 2016
Allowance for loan losses on loans to total loans0.82% 0.83% 0.86%
Allowance for loan losses on loans to non-performing loans 78% 72%91%
Non-performing loans to total loans1.05% 1.15% 0.95%
Net charge-off ratio (annualized)0.32% 0.23% 0.82%
Net charge-off ratio excluding credit cards 0.27% 0.19% 0.81%

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

At September 30, 2017, the allowance for loan losses for legacy loans was $42.7 million. The allowance for loan losses for loans acquired was $391,000 and the acquired loan discount credit mark was $25.0 million. The allowances for loan losses and credit marks provide a total of $68.1 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 loans acquired was 2.3%.

Provision for loan losses for the third quarter of 2017 was $5.5 million, a decrease of $2.8 million compared to September 30, 2016.

Foreclosed Assets and Other Real Estate Owned

At September 30, 2017, foreclosed assets and other real estate owned were $31.5 million, an increase of $1.1 million, or 3.6%, compared to the same period in 2016. The composition of these assets is divided in to three types:

3rd Qtr 2017 2nd Qtr 2017 3rd Qtr 2016
Closed bank branches, branch sites & associate relocation $12.8 million$8.7 million$6.1 million
Foreclosed assets - acquired$11.1 million$12.0 million$15.2 million
Foreclosed assets - legacy$7.6 million$5.3 million$9.1 million

Arkansas State banking laws require that former bank branches and vacant land that was previously held for potential bank branches be classified as foreclosed assets and other real estate owned at the time they are no longer used for bank operations. Due to this requirement, foreclosed assets and other real estate owned increased during the quarter by $4.1 million as a result of branch closures during the conversion of First South Bank in to Simmons Bank.

Capital

3rd Qtr 2017 2nd Qtr 2017 3rd Qtr 2016
Stockholders’ equity to total assets13.2% 13.6% 13.9%
Tangible common equity to tangible assets 9.1% 9.2% 9.5%
Regulatory tier 1 leverage ratio10.6% 10.8% 11.6%
Regulatory total risk-based capital ratio13.6% 13.7% 15.5%

At September 30, 2017, common stockholders' equity was $1.3 billion, book value per share was $39.03 and tangible book value per share was $25.64.

Simmons First National Corporation

Simmons First National Corp. is a financial holding company, headquartered in Pine Bluff, Ark., with total assets of $9.5 billion as of September 30, 2017 and proforma assets of approximately $14.2 billion conducting financial operations throughout Arkansas, Colorado, Kansas, Missouri, Oklahoma, Tennessee and Texas. 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 9:30 a.m. CDT on Monday, October 23, 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 84536260. 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.

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


Simmons First National Corporation SFNC
Consolidated End of Period Balance Sheets
For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited) 2017 2017 2017 2016 2016
($ in thousands)
ASSETS
Cash and non-interest bearing balances due from banks$ 108,675 $ 112,567 $ 103,875 $ 117,007 $ 112,572
Interest bearing balances due from banks and federal funds sold 323,615 217,047 201,406 168,652 341,951
Cash and cash equivalents 432,290 329,614 305,281 285,659 454,523
Interest bearing balances due from banks - time 4,059 6,057 4,563 4,563 4,393
Investment securities - held-to-maturity 406,033 419,003 431,176 462,096 496,594
Investment securities - available-for-sale 1,317,420 1,190,600 1,257,813 1,157,354 1,024,206
Mortgage loans held for sale 12,614 16,266 9,754 27,788 28,069
Assets held in trading accounts 49 50 55 41 2,969
Other assets held for sale 182,378 - - - -
Loans:
Legacy loans 5,211,312 5,000,572 4,632,905 4,327,207 3,943,089
Allowance for loan losses (42,717) (41,379) (37,865) (36,286) (34,094)
Loans acquired, net of discount and allowance 1,092,039 1,224,739 1,144,291 1,305,683 1,458,198
Net loans 6,260,634 6,183,932 5,739,331 5,596,604 5,367,193
Premises and equipment 224,376 230,641 221,880 199,359 192,523
Premises held for sale - - 4,611 6,052 6,732
Foreclosed assets and other real estate owned 31,477 26,012 26,421 26,895 30,396
Interest receivable 30,749 27,337 26,089 27,788 27,390
Bank owned life insurance 148,984 148,134 139,439 138,620 138,298
Goodwill 375,731 379,437 350,035 348,505 348,769
Other intangible assets 55,501 58,528 51,408 52,959 54,268
Other assets 53,075 52,697 58,782 65,773 50,669
Total assets$ 9,535,370 $ 9,068,308 $ 8,626,638 $ 8,400,056 $ 8,226,992
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts$ 1,669,860 $ 1,650,986 $ 1,554,675 $ 1,491,676 $ 1,473,420
Interest bearing transaction accounts and savings deposits 4,344,779 4,141,426 3,987,730 3,956,483 3,815,939
Time deposits less than $100,000 675,186 645,855 653,538 686,780 653,105
Time deposits greater than $100,000 635,765 665,268 592,345 600,280 674,917
Total deposits 7,325,590 7,103,535 6,788,288 6,735,219 6,617,381
Federal funds purchased and securities sold
under agreements to repurchase 121,687 121,419 110,007 115,029 124,289
Other borrowings 522,541 474,962 441,074 273,159 215,276
Subordinated debentures 67,418 67,312 60,503 60,397 60,290
Other liabilities held for sale 176,964 - - - -
Accrued interest and other liabilities 63,971 67,004 55,877 65,141 62,615
Total liabilities 8,278,171 7,834,232 7,455,749 7,248,945 7,079,851
Stockholders' equity:
Common stock 322 322 314 313 313
Surplus 763,443 761,754 716,564 711,976 710,132
Undivided profits 504,085 483,322 468,309 454,034 434,579
Accumulated other comprehensive income (loss):
Unrealized appreciation (depreciation) on AFS securities (10,651) (11,322) (14,298) (15,212) 2,117
Total stockholders' equity 1,257,199 1,234,076 1,170,889 1,151,111 1,147,141
Total liabilities and stockholders' equity $ 9,535,370 $ 9,068,308 $ 8,626,638 $ 8,400,056 $ 8,226,992
Page 1

Simmons First National Corporation SFNC
Consolidated Statements of Income - Quarter-to-Date
For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited) 2017 2017 2017 2016 2016
($ in thousands, except per share data)
INTEREST INCOME
Loans$ 77,457 $ 73,549 $ 68,728 $ 70,887 $ 65,078
Interest bearing balances due from banks and federal funds sold 650 214 122 245 263
Investment securities 9,218 9,990 9,451 8,700 7,774
Mortgage loans held for sale 159 145 126 230 299
Assets held in trading accounts - - - 3 4
TOTAL INTEREST INCOME 87,484 83,898 78,427 80,065 73,418
INTEREST EXPENSE
Time deposits 2,110 1,832 1,758 2,023 1,767
Other deposits 3,920 2,984 2,446 2,032 1,965
Federal funds purchased and securities
sold under agreements to repurchase 83 92 75 90 59
Other borrowings 1,875 1,559 1,194 1,034 1,048
Subordinated debentures 677 619 574 558 516
TOTAL INTEREST EXPENSE 8,665 7,086 6,047 5,737 5,355
NET INTEREST INCOME 78,819 76,812 72,380 74,328 68,063
Provision for loan losses 5,462 7,023 4,307 4,332 8,294
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 73,357 69,789 68,073 69,996 59,769
NON-INTEREST INCOME
Trust income 4,225 4,113 4,212 4,282 3,873
Service charges on deposit accounts 8,907 8,483 8,102 8,666 8,771
Other service charges and fees 2,433 2,515 2,197 4,026 3,261
Mortgage and SBA lending income 3,219 3,961 2,423 4,580 4,339
Investment banking income 680 637 690 472 1,131
Debit and credit card fees 8,864 8,659 7,934 8,027 7,825
Bank owned life insurance income 725 859 818 895 606
Gain on sale of securities, net 3 2,236 63 1,445 315
Other income 7,276 4,281 3,621 3,722 6,755
TOTAL NON-INTEREST INCOME 36,332 35,744 30,060 36,115 36,876
NON-INTEREST EXPENSE
Salaries and employee benefits 35,285 34,205 35,536 33,797 31,784
Occupancy expense, net 4,928 4,868 4,663 4,516 4,690
Furniture and equipment expense 4,840 4,550 4,443 4,387 4,272
Other real estate and foreclosure expense 1,071 517 589 679 1,849
Deposit insurance 1,020 780 680 89 1,136
Merger-related costs 752 6,603 524 2,846 1,524
Other operating expenses 18,263 19,885 19,887 20,411 17,179
TOTAL NON-INTEREST EXPENSE 66,159 71,408 66,322 66,725 62,434
NET INCOME BEFORE INCOME TAXES 43,530 34,125 31,811 39,386 34,211
Provision for income taxes 14,678 11,060 9,691 12,415 10,782
NET INCOME $ 28,852 $ 23,065 $ 22,120 $ 26,971 $ 23,429
BASIC EARNINGS PER SHARE $ 0.90 $ 0.72 $ 0.71 $ 0.86 $ 0.77
DILUTED EARNINGS PER SHARE $ 0.89 $ 0.72 $ 0.70 $ 0.85 $ 0.76
Page 2

Simmons First National Corporation SFNC
Consolidated Risk-Based Capital
For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited) 2017 2017 2017 2016 2016
($ in thousands)
Tier 1 capital
Stockholders' equity$ 1,257,199 $ 1,234,076 $ 1,170,889 $ 1,151,111 $ 1,147,141
Trust preferred securities, net allowable 67,418 67,312 60,503 60,397 60,290
Disallowed intangible assets, net of deferred tax (401,419) (406,990) (361,944) (354,028) (354,582)
Unrealized loss (gain) on AFS securities 10,651 11,322 14,298 15,212 (2,117)
Other - - - 15 -
Total Tier 1 capital 933,849 905,720 883,746 872,707 850,732
Tier 2 capital
Qualifying unrealized gain on AFS equity securities 1 1 2 - -
Qualifying allowance for loan losses and
reserve for unfunded commitments 46,709 45,369 41,303 40,241 38,050
Total Tier 2 capital 46,710 45,370 41,305 40,241 38,050
Total risk-based capital$ 980,559 $ 951,090 $ 925,051 $ 912,948 $ 888,782
Common equity
Tier 1 capital$ 933,849 $ 905,720 $ 883,746 $ 872,707 $ 850,732
Less: Trust preferred securities (67,418) (67,312) (60,503) (60,397) (60,290)
Total common equity$ 866,431 $ 838,408 $ 823,243 $ 812,310 $ 790,442
Risk weighted assets$ 7,225,846 $ 6,925,727 $ 6,425,150 $ 6,039,034 $ 5,724,052
Adjusted average assets for leverage ratio $ 8,794,433 $ 8,424,763 $ 8,076,525 $ 7,966,681 $ 7,355,702
Ratios at end of quarter
Equity to assets 13.18% 13.61% 13.57% 13.70% 13.94%
Tangible common equity to tangible assets (1) 9.07% 9.22% 9.35% 9.37% 9.51%
Common equity Tier 1 ratio (CET1) 11.99% 12.11% 12.81% 13.45% 13.81%
Tier 1 leverage ratio 10.62% 10.75% 10.94% 10.95% 11.57%
Tier 1 risk-based capital ratio 12.92% 13.08% 13.75% 14.45% 14.86%
Total risk-based capital ratio 13.57% 13.73% 14.40% 15.12% 15.53%
(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 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited) 2017 2017 2017 2016 2016
($ in thousands)
Legacy Loan Portfolio - End of Period (1)
Consumer
Credit cards$ 176,316 $ 176,953 $ 171,947 $ 184,591 $ 175,032
Other consumer 317,946 366,136 349,200 303,972 275,947
Total consumer 494,262 543,089 521,147 488,563 450,979
Real Estate
Construction 515,274 457,896 365,051 336,759 304,082
Single-family residential 1,048,403 1,014,412 957,717 904,245 841,958
Other commercial 2,231,223 2,089,707 1,959,677 1,787,075 1,521,132
Total real estate 3,794,900 3,562,015 3,282,445 3,028,079 2,667,172
Commercial
Commercial 688,960 678,932 657,606 639,525 607,738
Agricultural 207,849 191,345 141,125 150,378 203,529
Total commercial 896,809 870,277 798,731 789,903 811,267
Other 25,341 25,191 30,582 20,662 13,671
Total Loans$ 5,211,312 $ 5,000,572 $ 4,632,905 $ 4,327,207 $ 3,943,089
(1) Excludes all acquired loans.
Investment Securities - End of Period
Held-to-Maturity
U.S. Government agencies$ 66,928 $ 67,912 $ 68,895 $ 76,875 $ 80,849
Mortgage-backed securities 16,972 17,882 18,743 19,773 21,454
State and political subdivisions 320,116 331,249 341,854 362,532 391,495
Other securities 2,017 1,960 1,684 2,916 2,796
Total held-to-maturity 406,033 419,003 431,176 462,096 496,594
Available-for-Sale
U.S. Treasury$ - $ 19,997 $ - $ 300 $ 63,985
U.S. Government agencies 208,220 147,619 142,356 137,771 148,781
Mortgage-backed securities 959,698 878,205 927,277 868,324 699,748
State and political subdivisions 84,822 83,672 130,747 102,943 67,019
FHLB stock 24,415 21,772 19,149 12,235 11,235
Other securities 40,265 39,335 38,285 35,781 33,438
Total available-for-sale 1,317,420 1,190,600 1,257,814 1,157,354 1,024,206
Total investment securities$ 1,723,453 $ 1,609,603 $ 1,688,990 $ 1,619,450 $ 1,520,800
Fair value - HTM investment securities$ 412,140 $ 425,263 $ 435,701 $ 465,960 $ 508,910
Investment Securities - QTD Average
Taxable securities$ 1,229,172 $ 1,244,071 $ 1,185,794 $ 1,146,703 $ 963,150
Tax exempt securities 409,062 467,420 455,481 467,757 466,782
Total investment securities - QTD average$ 1,638,234 $ 1,711,491 $ 1,641,275 $ 1,614,460 $ 1,429,932
Page 4

Simmons First National Corporation SFNC
Consolidated Loans and Credit Coverage
For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited) 2017
2017
2017
2016
2016
($ in thousands)
LOANS
Legacy loans$ 5,211,312 $ 5,000,572 $ 4,632,905 $ 4,327,207 $ 3,943,089
Allowance for loan losses (legacy loans) (42,717) (41,379) (37,865) (36,286) (34,094)
Legacy loans (net of allowance) 5,168,595 4,959,193 4,595,040 4,290,921 3,908,995
Loans acquired 1,117,424 1,253,539 1,173,667 1,342,099 1,502,051
Credit discount (24,994) (28,409) (28,941) (35,462) (42,899)
Allowance for loan losses (loans acquired) (391) (391) (435) (954) (954)
Loans acquired (net of discount and allowance) 1,092,039 1,224,739 1,144,291 1,305,683 1,458,198
Net loans$ 6,260,634 $ 6,183,932 $ 5,739,331 $ 5,596,604 $ 5,367,193
Loan Coverage Ratios
Allowance for loan losses to legacy loans 0.82% 0.83% 0.82% 0.84% 0.86%
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) 2.27% 2.30% 2.50% 2.71% 2.92%
Total allowance and credit coverage (non-GAAP) (1) 1.08% 1.12% 1.16% 1.28% 1.43%
(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 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited) 2017 2017 2017 2016 2016
($ in thousands)
Allowance for Loan Losses (Legacy Loans)
Balance, beginning of quarter$ 41,379 $ 37,865 $ 36,286 $ 34,094 $ 33,523
Loans charged off
Credit cards 1,017 901 1,044 935 699
Other consumer 819 993 1,174 493 600
Real estate 896 1,712 656 167 6,297
Commercial 2,442 349 292 913 284
Total loans charged off 5,174 3,955 3,166 2,508 7,880
Recoveries of loans previously charged off
Credit cards 275 277 236 213 199
Other consumer 445 636 690 158 106
Real estate 309 216 232 73 55
Commercial 21 32 30 28 12
Total recoveries 1,050 1,161 1,188 472 372
Net \loans charged off 4,124 2,794 1,978 2,036 7,508
Provision for loan losses 5,462 6,308 3,557 4,228 8,079
Balance, end of quarter$ 42,717 $ 41,379 $ 37,865 $ 36,286 $ 34,094
Non-performing assets (1) (2)
Non-performing loans
Nonaccrual loans 54,439 57,127 52,913 39,104 37,392
Loans past due 90 days or more 232 281 231 299 144
Total non-performing loans 54,671 57,408 53,144 39,403 37,536
Other non-performing assets
Foreclosed assets and other real estate owned (2) 31,477 26,012 26,421 26,895 30,396
Other non-performing assets 639 485 352 471 621
Total other non-performing assets 32,116 26,497 26,773 27,366 31,017
Total non-performing assets$ 86,787 $ 83,905 $ 79,917 $ 66,769 $ 68,553
Performing TDRs (troubled debt restructurings)$ 9,212 $ 8,794 $ 10,833 $ 10,998 $ 13,604
Ratios (1) (2)
Allowance for loan losses to total loans 0.82% 0.83% 0.82% 0.84% 0.86%
Allowance for loan losses to non-performing loans 78% 72% 71% 92% 91%
Non-performing loans to total loans 1.05% 1.15% 1.15% 0.91% 0.95%
Non-performing assets (including performing TDRs)
to total assets 1.01% 1.02% 1.05% 0.93% 1.00%
Non-performing assets to total assets 0.91% 0.93% 0.93% 0.79% 0.83%
Annualized net charge offs to total loans 0.32% 0.23% 0.18% 0.20% 0.82%
Annualized net credit card charge offs to
total credit card loans 1.63% 1.42% 1.84% 1.66% 1.14%
Annualized net charge offs to total loans
(excluding credit cards) 0.27% 0.19% 0.11% 0.14% 0.81%
(1) Excludes all acquired loans, except for their inclusion in total assets.
(2) Includes acquired foreclosed assets and acquired other real estate owned.
Page 6

Simmons First National Corporation SFNC
Consolidated - Average Balance Sheet and Net Interest Income Analysis
For the Quarters Ended
(Unaudited)
Three Months Ended
Sep 2017
Three Months Ended
Jun 2017
Three Months Ended
Sep 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
Federal funds sold 269,111 650 0.96% 163,396 214 0.53% 253,249 263 0.41%
Investment securities - taxable 1,313,333 6,574 1.99% 1,374,261 6,874 2.01% 1,038,437 4,775 1.83%
Investment securities - non-taxable (FTE) 324,901 4,341 5.30% 337,230 5,118 6.09% 391,495 4,926 5.01%
Mortgage loans held for sale 13,388 159 4.71% 12,250 145 4.75% 31,256 299 3.81%
Assets held in trading accounts 52 - 0.00% 52 - 0.00% 5,108 4 0.31%
Loans, including acquired loans 6,261,507 77,511 4.91% 5,954,019 73,629 4.96% 5,105,474 65,120 5.07%
Total interest earning assets (FTE) 8,182,292 89,235 4.33% 7,841,208 85,980 4.40% 6,825,019 75,387 4.39%
Non-earning assets 993,315 971,252 878,818
Total assets$ 9,175,607 $ 8,812,460 $ 7,703,837
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Interest bearing transaction and
savings accounts$ 4,227,567 $ 3,920 0.37% $ 4,069,179 $ 2,984 0.29% $ 3,645,414 $ 1,965 0.21%
Time deposits 1,330,889 2,110 0.63% 1,277,336 1,832 0.58% 1,213,895 1,767 0.58%
Total interest bearing deposits 5,558,456 6,030 0.43% 5,346,515 4,816 0.36% 4,859,309 3,732 0.31%
Federal funds purchased and securities
sold under agreement to repurchase 115,583 83 0.28% 115,101 92 0.32% 105,576 59 0.22%
Other borrowings 502,972 1,875 1.48% 434,584 1,559 1.44% 192,453 1,048 2.17%
Subordinated debentures 67,367 677 3.99% 64,019 619 3.88% 60,238 516 3.41%
Total interest bearing liabilities 6,244,378 8,665 0.55% 5,960,219 7,086 0.48% 5,217,576 5,355 0.41%
Non-interest bearing liabilities:
Non-interest bearing deposits 1,613,248 1,597,550 1,322,818
Other liabilities 62,287 45,348 49,191
Total liabilities 7,919,913 7,603,117 6,589,585
Stockholders' equity 1,255,694 1,209,343 1,114,252
Total liabilities and stockholders' equity$ 9,175,607 $ 8,812,460 $ 7,703,837
Net interest income (FTE) $ 80,570 $ 78,894 $ 70,032
Net interest spread (FTE) 3.78% 3.92% 3.98%
Net interest margin (FTE) - quarter-to-date 3.91% 4.04% 4.08%
Net interest margin (FTE) - year-to-date 3.99% 4.04% 4.21%
Core net interest margin (FTE) - quarter-to-date (1) 3.77% 3.79% 3.79%
Core loan yield (FTE) - quarter-to-date (1) 4.72% 4.63% 4.69%
Core net interest margin (FTE) - year-to-date (1) 3.79% 3.79% 3.86%
Core loan yield (FTE) - year-to-date (1) 4.65% 4.61% 4.75%
(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 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited) 2017 2017 2017 2016 2016
($ in thousands, except share data)
QUARTER-TO-DATE
Financial Highlights - GAAP
Net Income $ 28,852 $ 23,065 $ 22,120 $ 26,971 $ 23,429
Diluted earnings per share 0.89 0.72 0.70 0.85 0.76
Return on average assets 1.25% 1.05% 1.07% 1.29% 1.21%
Return on average common equity 9.12% 7.65% 7.69% 9.27% 8.36%
Return on tangible common equity 14.47% 12.13% 12.22% 14.71% 13.26%
Net interest margin (FTE) 3.91% 4.04% 4.04% 4.12% 4.08%
FTE adjustment 1,751 2,082 1,965 1,994 1,969
Amortization of intangibles 1,724 1,553 1,550 1,533 1,503
Amortization of intangibles, net of taxes 1,048 944 942 932 913
Average diluted shares outstanding 32,423,796 32,025,780 31,612,900 31,592,713 30,843,714
Cash dividends declared per common share 0.25 0.25 0.25 0.24 0.24
Financial Highlights - Core (non-GAAP)
Core earnings (excludes non-core items) (1) $ 27,746 $ 26,753 $ 22,532 $ 28,751 $ 24,382
Diluted core earnings per share (1) 0.86 0.84 0.71 0.91 0.79
Core net interest margin (FTE) (2) 3.77% 3.79% 3.80% 3.76% 3.79%
Accretable yield on acquired loans 2,890 4,792 4,427 6,552 4,928
Efficiency ratio (1) 55.06% 56.04% 60.92% 55.47% 53.94%
Core return on average assets (1) 1.20% 1.22% 1.09% 1.38% 1.26%
Core return on average common equity (1) 8.77% 8.87% 7.83% 9.89% 8.71%
Core return on tangible common equity (1) 13.93% 13.99% 12.44% 15.65% 13.78%
YEAR-TO-DATE
Financial Highlights - GAAP
Net Income $ 74,037 $ 45,185 $ 22,120 $ 96,790 $ 69,819
Diluted earnings per share 2.31 1.42 0.70 3.13 2.28
Return on average assets 1.12% 1.06% 1.07% 1.25% 1.23%
Return on average common equity 8.18% 7.67% 7.69% 8.75% 8.57%
Return on tangible common equity 12.97% 12.17% 12.22% 13.92% 13.68%
Net interest margin (FTE) 3.99% 4.04% 4.04% 4.19% 4.21%
FTE adjustment 5,798 4,047 1,965 7,722 5,728
Amortization of intangibles 4,827 3,103 1,550 5,942 4,409
Amortization of intangibles, net of taxes 2,934 1,886 942 3,611 2,679
Average diluted shares outstanding 32,007,135 31,794,363 31,612,900 30,963,546 30,656,882
Cash dividends declared per common share 0.75 0.50 0.25 0.96 0.72
Financial Highlights - Core (non-GAAP)
Core earnings (excludes non-core items) (1) $ 77,031 $ 49,285 $ 22,532 $ 101,409 $ 72,658
Diluted core earnings per share (1) 2.41 1.55 0.71 3.28 2.37
Core net interest margin (FTE) (2) 3.79% 3.79% 3.80% 3.83% 3.86%
Accretable yield on acquired loans 12,109 9,219 4,427 24,257 17,705
Efficiency ratio (1) 57.25% 58.40% 60.92% 56.32% 56.62%
Core return on average assets (1) 1.17% 1.15% 1.09% 1.31% 1.28%
Core return on average common equity (1) 8.51% 8.37% 7.83% 9.17% 8.91%
Core return on tangible common equity (1) 13.48% 13.23% 12.44% 14.56% 14.22%
END OF PERIOD
Book value per share $ 39.03 $ 38.31 $ 37.30 $ 36.80 $ 36.69
Tangible book value per share 25.64 24.71 24.51 23.97 23.80
Shares outstanding 32,212,242 32,212,832 31,388,357 31,277,723 31,267,614
Full-time equivalent employees 1,942 1,919 1,876 1,875 1,985
Total number of ATM's 192 197 187 186 186
Total number of financial centers 156 161 151 150 150
(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 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited) 2017 2017 2017 2016 2016
($ in thousands, except per share data)
QUARTER-TO-DATE
Net Income $ 28,852 $ 23,065 $ 22,120 $ 26,971 $ 23,429
Non-core items
Gain on sale of P&C insurance business (3,708) - - - -
Merger-related costs 752 6,603 524 2,846 1,524
Branch right-sizing 435 (536) 154 83 43
Tax effect (1) 1,415 (2,379) (266) (1,149) (614)
Net non-core items (1,106) 3,688 412 1,780 953
Core earnings (non-GAAP) $ 27,746 $ 26,753 $ 22,532 $ 28,751 $ 24,382
Diluted earnings per share $ 0.89 $ 0.72 $ 0.70 $ 0.85 $ 0.76
Non-core items
Gain on sale of P&C insurance business (0.11) - - - -
Merger-related costs 0.02 0.21 0.02 0.09 0.05
Branch right-sizing 0.01 (0.02) - - -
Tax effect (1) 0.05 (0.07) (0.01) (0.03) (0.02)
Net non-core items (0.03) 0.12 0.01 0.06 0.03
Core earnings (non-GAAP) $ 0.86 $ 0.84 $ 0.71 $ 0.91 $ 0.79
YEAR-TO-DATE
Net Income $ 74,037 $ 45,185 $ 22,120 $ 96,790 $ 69,819
Non-core items
Gain from early retirement of trust preferred securities - - - (594) (594)
Gain on sale of P&C insurance business (3,708) - - - -
Merger-related costs 7,879 7,127 524 4,835 1,989
Branch right-sizing 53 (382) 154 3,359 3,276
Tax effect (1) (1,230) (2,645) (266) (2,981) (1,832)
Net non-core items 2,994 4,100 412 4,619 2,839
Core earnings (non-GAAP) $ 77,031 $ 49,285 $ 22,532 $ 101,409 $ 72,658
Diluted earnings per share $ 2.31 $ 1.42 $ 0.70 $ 3.13 $ 2.28
Non-core items
Gain from early retirement of trust preferred securities - - - (0.02) (0.02)
Gain on sale of P&C insurance business (0.11)
Merger-related costs 0.25 0.22 0.02 0.16 0.06
Branch right-sizing - (0.01) - 0.11 0.11
Tax effect (1) (0.04) (0.08) (0.01) (0.10) (0.06)
Net non-core items 0.10 0.13 0.01 0.15 0.09
Core earnings (non-GAAP) $ 2.41 $ 1.55 $ 0.71 $ 3.28 $ 2.37
(1) Effective tax rate of 39.225%, adjusted for non-deductible merger-related costs and deferred tax items on P&C insurance sale.
Page 9

Simmons First National Corporation SFNC
Reconciliation Of Non-GAAP Financial Measures - End of Period
For the Quarters Ended
(Unaudited) Sept 30 Jun 30 Mar 31 Dec 31 Sept 30
2017 2017 2017 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$ 1,257,199 $ 1,234,076 $ 1,170,889 $ 1,151,111 $ 1,147,141
Intangible assets:
Goodwill (375,731) (379,437) (350,035) (348,505) (348,769)
Other intangible assets (55,501) (58,528) (51,408) (52,959) (54,268)
Total intangibles (431,232) (437,965) (401,443) (401,464) (403,037)
Tangible common stockholders' equity$ 825,967 $ 796,111 $ 769,446 $ 749,647 $ 744,104
Total assets$ 9,535,370 $ 9,068,308 $ 8,626,638 $ 8,400,056 $ 8,226,992
Intangible assets:
Goodwill (375,731) (379,437) (350,035) (348,505) (348,769)
Other intangible assets (55,501) (58,528) (51,408) (52,959) (54,268)
Total intangibles (431,232) (437,965) (401,443) (401,464) (403,037)
Tangible assets$ 9,104,138 $ 8,630,343 $ 8,225,195 $ 7,998,592 $ 7,823,955
Ratio of equity to assets 13.18% 13.61% 13.57% 13.70% 13.94%
Ratio of tangible common equity to tangible assets 9.07% 9.22% 9.35% 9.37% 9.51%
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$ 24,994 $ 28,409 $ 28,941 $ 35,462 $ 42,899
Allowance for loan losses on acquired loans 391 391 435 954 954
Total credit discount and ALLL on acquired loans$ 25,385 $ 28,800 $ 29,376 $ 36,416 $ 43,853
Total loans acquired$ 1,117,424 $ 1,253,539 $ 1,173,667 $ 1,342,099 $ 1,502,051
Discount and ALLL on acquired loans to acquired loans 2.27% 2.30% 2.50% 2.71% 2.92%
Calculation of Total Allowance and Credit Coverage
Allowance for loan losses$ 42,717 $ 41,379 $ 37,865 $ 36,286 $ 34,094
Total credit discount and ALLL on acquired loans 25,385 28,800 29,376 36,416 43,853
Total allowance and credit discount$ 68,102 $ 70,179 $ 67,241 $ 72,702 $ 77,947
Total loans$ 6,328,736 $ 6,254,155 $ 5,806,572 $ 5,669,306 $ 5,445,140
Total allowance and credit coverage 1.08% 1.12% 1.16% 1.28% 1.43%
Calculation of Tangible Book Value per Share
Total common stockholders' equity$ 1,257,199 $ 1,234,076 $ 1,170,889 $ 1,151,111 $ 1,147,141
Intangible assets:
Goodwill (375,731) (379,437) (350,035) (348,505) (348,769)
Other intangible assets (55,501) (58,528) (51,408) (52,959) (54,268)
Total intangibles (431,232) (437,965) (401,443) (401,464) (403,037)
Tangible common stockholders' equity$ 825,967 $ 796,111 $ 769,446 $ 749,647 $ 744,104
Shares of common stock outstanding 32,212,242 32,212,832 31,388,357 31,277,723 31,267,614
Book value per common share$ 39.03 $ 38.31 $ 37.30 $ 36.80 $ 36.69
Tangible book value per common share$ 25.64 $ 24.71 $ 24.51 $ 23.97 $ 23.80
Page 10

Simmons First National Corporation SFNC
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date
For the Quarters Ended
(Unaudited) Sept 30 Jun 30 Mar 31 Dec 31 Sept 30
2017 2017 2017 2016 2016
($ in thousands)
Calculation of Core Return on Average Assets
Net income$ 28,852 $ 23,065 $ 22,120 $ 26,971 $ 23,429
Net non-core items, net of taxes, adjustment (1,106) 3,688 412 1,780 953
Core earnings$ 27,746 $ 26,753 $ 22,532 $ 28,751 $ 24,382
Average total assets$ 9,175,607 $ 8,812,460 $ 8,414,470 $ 8,308,458 $ 7,703,837
Return on average assets 1.25% 1.05% 1.07% 1.29% 1.21%
Core return on average assets 1.20% 1.22% 1.09% 1.38% 1.26%
Calculation of Return on Tangible Common Equity
Net income$ 28,852 $ 23,065 $ 22,120 $ 26,971 $ 23,429
Amortization of intangibles, net of taxes 1,048 944 942 932 913
Total income available to common stockholders$ 29,900 $ 24,009 $ 23,062 $ 27,903 $ 24,342
Net non-core items, net of taxes (1,106) 3,688 412 1,780 953
Core earnings 27,746 26,753 22,532 28,751 24,382
Amortization of intangibles, net of taxes 1,048 944 942 932 913
Total core income available to common stockholders$ 28,794 $ 27,697 $ 23,474 $ 29,683 $ 25,295
Average common stockholders' equity$ 1,255,694 $ 1,209,343 $ 1,166,473 $ 1,156,933 $ 1,114,252
Average intangible assets:
Goodwill (378,387) (362,925) (348,837) (348,597) (332,893)
Other intangibles (57,232) (52,419) (52,169) (53,646) (50,893)
Total average intangibles (435,619) (415,344) (401,006) (402,243) (383,786)
Average tangible common stockholders' equity$ 820,075 $ 793,999 $ 765,467 $ 754,690 $ 730,466
Return on average common equity 9.12% 7.65% 7.69% 9.27% 8.36%
Return on tangible common equity 14.47% 12.13% 12.22% 14.71% 13.26%
Core return on average common equity 8.77% 8.87% 7.83% 9.89% 8.71%
Core return on tangible common equity 13.93% 13.99% 12.44% 15.65% 13.78%
Calculation of Efficiency Ratio (1)
Non-interest expense$ 66,159 $ 71,408 $ 66,322 $ 66,725 $ 62,434
Non-core non-interest expense adjustment (862) (6,700) (635) (2,995) (1,742)
Other real estate and foreclosure expense adjustment (1,071) (517) (550) (669) (1,787)
Amortization of intangibles adjustment (1,724) (1,553) (1,550) (1,533) (1,503)
Efficiency ratio numerator$ 62,502 $ 62,638 $ 63,587 $ 61,528 $ 57,402
Net-interest income$ 78,819 $ 76,812 $ 72,380 $ 74,328 $ 68,063
Non-interest income 36,332 35,744 30,060 36,115 36,876
Non-core non-interest income adjustment (3,383) (632) 43 (66) (175)
Fully tax-equivalent adjustment 1,751 2,082 1,965 1,994 1,969
(Gain) loss on sale of securities (3) (2,236) (63) (1,445) (315)
Efficiency ratio denominator$ 113,516 $ 111,770 $ 104,385 $ 110,926 $ 106,418
Efficiency ratio (1) 55.06% 56.04% 60.92% 55.47% 53.94%
Calculation of Core Net Interest Margin
Net interest income$ 78,819 $ 76,812 $ 72,380 $ 74,328 $ 68,063
Fully tax-equivalent adjustment 1,751 2,082 1,965 1,994 1,969
Fully tax-equivalent net interest income 80,570 78,894 74,345 76,322 70,032
Total accretable yield (2,890) (4,792) (4,427) (6,552) (4,928)
Core net interest income$ 77,680 $ 74,102 $ 69,918 $ 69,770 $ 65,104
Average earning assets$ 8,182,292 $ 7,841,208 $ 7,469,709 $ 7,373,236 $ 6,825,019
Net interest margin 3.95% 4.04% 4.04% 4.12% 4.08%
Core net interest margin 3.81% 3.79% 3.80% 3.76% 3.79%
Calculation of Core Loan Yield
Loan interest income$ 77,457 $ 73,549 $ 68,728 $ 70,887 $ 65,078
Total accretable yield (2,890) (4,792) (4,427) (6,552) (4,928)
Core loan interest income$ 74,567 $ 68,757 $ 64,301 $ 64,335 $ 60,150
Average loan balance$ 6,261,507 $ 5,954,019 $ 5,685,585 $ 5,484,918 $ 5,105,474
Core loan yield 4.78% 4.63% 4.59% 4.67% 4.69%
(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) Sept 30 Jun 30 Mar 31 Dec 31 Sept 30
2017 2017 2017 2016 2016
($ in thousands)
Calculation of Core Return on Average Assets
Net income$ 74,037 $ 45,185 $ 22,120 $ 96,790 $ 69,819
Net non-core items, net of taxes, adjustment 2,994 4,100 412 4,619 2,839
Core earnings$ 77,031 $ 49,285 $ 22,532 $ 101,409 $ 72,658
Average total assets$ 8,800,675 $ 8,613,240 $ 8,414,470 $ 7,760,233 $ 7,575,053
Return on average assets 1.12% 1.06% 1.07% 1.25% 1.23%
Core return on average assets 1.17% 1.15% 1.09% 1.31% 1.28%
Calculation of Return on Tangible Common Equity
Net income$ 74,037 $ 45,185 $ 22,120 $ 96,790 $ 69,819
Amortization of intangibles, net of taxes 2,934 1,886 942 3,611 2,679
Total income available to common stockholders$ 76,971 $ 47,071 $ 23,062 $ 100,401 $ 72,498
Net non-core items, net of taxes 2,994 4,100 412 4,619 2,839
Core earnings 77,031 49,285 22,532 101,409 72,658
Amortization of intangibles, net of taxes 2,934 1,886 942 3,611 2,679
Total core income available to common stockholders$ 79,965 $ 51,171 $ 23,474 $ 105,020 $ 75,337
Average common stockholders' equity$ 1,210,487 $ 1,187,906 $ 1,166,473 $ 1,105,775 $ 1,088,723
Average intangible assets:
Goodwill (363,383) (355,881) (348,837) (332,974) (329,422)
Other intangibles (53,941) (52,294) (52,169) (51,710) (51,478)
Total average intangibles (417,324) (408,175) (401,006) (384,684) (380,900)
Average tangible common stockholders' equity$ 793,163 $ 779,731 $ 765,467 $ 721,091 $ 707,823
Return on average common equity 8.18% 7.67% 7.69% 8.75% 8.57%
Return on tangible common equity 12.97% 12.17% 12.22% 13.92% 13.68%
Core return on average common equity 8.51% 8.37% 7.83% 9.17% 8.91%
Core return on tangible common equity 13.48% 13.23% 12.44% 14.56% 14.22%
Calculation of Efficiency Ratio (1)
Non-interest expense$ 203,889 $ 137,730 $ 66,322 $ 255,085 $ 188,360
Non-core non-interest expense adjustment (8,197) (7,335) (635) (8,435) (5,440)
Other real estate and foreclosure expense adjustment (2,177) (1,067) (550) (4,389) (3,720)
Amortization of intangibles adjustment (4,827) (3,103) (1,550) (5,942) (4,409)
Efficiency ratio numerator$ 188,688 $ 126,225 $ 63,587 $ 236,319 $ 174,791
Net-interest income$ 228,011 $ 149,192 $ 72,380 $ 279,206 $ 204,878
Non-interest income 102,136 65,804 30,060 139,382 103,267
Non-core non-interest income adjustment (3,972) (589) 43 (835) (769)
Fully tax-equivalent adjustment 5,798 4,047 1,965 7,722 5,728
(Gain) loss on sale of securities (2,302) (2,299) (63) (5,848) (4,403)
Efficiency ratio denominator$ 329,671 $ 216,155 $ 104,385 $ 419,627 $ 308,701
Efficiency ratio (1) 57.25% 58.40% 60.92% 56.32% 56.62%
Calculation of Core Net Interest Margin
Net interest income$ 228,011 $ 149,192 $ 72,380 $ 279,206 $ 204,878
Fully tax-equivalent adjustment 5,798 4,047 1,965 7,722 5,728
Fully tax-equivalent net interest income 233,809 153,239 74,345 286,928 210,606
Total accretable yield (12,109) (9,219) (4,427) (24,257) (17,705)
Core net interest income$ 221,700 $ 144,020 $ 69,918 $ 262,671 $ 192,901
Average earning assets$ 7,829,548 $ 7,653,177 $ 7,469,709 $ 6,855,322 $ 6,682,683
Net interest margin 3.99% 4.04% 4.04% 4.19% 4.21%
Core net interest margin 3.79% 3.79% 3.80% 3.83% 3.86%
Calculation of Core Loan Yield
Loan interest income$ 219,734 $ 142,277 $ 68,728 $ 265,652 $ 194,765
Total accretable yield (12,109) (9,219) (4,427) (24,257) (17,705)
Core loan interest income$ 207,625 $ 133,058 $ 64,301 $ 241,395 $ 177,060
Average loan balance$ 5,967,036 $ 5,819,803 $ 5,685,585 $ 5,109,492 $ 4,984,349
Core loan yield 4.65% 4.61% 4.59% 4.72% 4.75%
(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

Source:Simmons First National Corporation