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Simmons Reports Fourth Quarter 2017 Earnings

PINE BLUFF, Ark., Jan. 22, 2018 (GLOBE NEWSWIRE) -- Simmons First National Corporation (NASDAQ:SFNC) today announced net income available to common shareholders of $18.9 million, or $0.43 per diluted share, for the quarter ended December 31, 2017, compared to $27.0 million, or $0.85 per diluted share, for the same period in 2016. Included in fourth quarter 2017 results was $14.2 million in merger-related and branch right-sizing costs, a $5.0 million donation to Simmons Foundation and a one-time tax adjustment of $11.5 million.

As a result of the “Tax Cuts and Jobs Act” that was signed into law on December 22, 2017, the Company was required to revalue its deferred tax assets and deferred tax liabilities to account for the future impact of lower corporate tax rates on these deferred amounts. The analysis resulted in a one-time non-cash charge to the income statement of $11.5 million.

Excluding the net after-tax impact of these items, core earnings were $42.0 million, or $0.97 per diluted share, for the quarter ended December 31, 2017, compared to $28.8 million, or $0.91 per diluted share, for the quarter ended December 31, 2016.

Year-to-date net income was $92.9 million, or $2.66 diluted earnings per share. Excluding the net after-tax merger-related and branch right-sizing costs, tax adjustment and the gain on sale of insurance lines recorded in the prior quarter, year-to-date core earnings were $119.0 million, or $3.41 diluted core earnings per share.

On October 19, 2017, Simmons First National Corporation 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. The systems conversions are planned during the first half of 2018, at which time the subsidiary banks will be merged into Simmons Bank.

“We welcome our newest associates from Bank SNB and Southwest Bank and are pleased with our integration efforts thus far. We look forward to continued growth and profitability in their legacy markets,” said George A. Makris, Jr., chairman and CEO.

Makris continued, “The effect of the tax law changes has allowed us the opportunity to consider an increased investment in our associates which will include, among a variety of initiatives, an increase in the profit-sharing component of our 401(k) plan and increased consideration for our high-performing associates; an investment in technology of up to $100 million over 5 years to improve our delivery of products and services to our customers; an investment in our communities as evidenced by our $5 million contribution to our Foundation to support CRA qualified community development grants throughout our footprint; and finally a strategy to provide a return on the investment of our shareholders through retention and deployment of additional capital to grow our business while at the same time increasing the dividend we distribute to our shareholders.

“These investments reflect our optimism for Simmons and we believe will help us achieve the growth potential we envision for our company,” said Makris.

“Late last week we announced a 2 for 1 stock split which we believe will create investment opportunities for a wide variety of investors. Our retail ownership is approximately 50% and we believe it is a valuable dynamic to have owners as customers and vice-versa. We also announced a 20% increase in our dividend over the previous quarter.”

Financial statements, including earnings per share as well as other share-related disclosures, reported after the stock split record date of January 30, 2018, will include the impact of the stock split on all periods presented.

Selected Highlights: 4th Qtr 2017 3rd Qtr 2017 4th Qtr 2016
Net income $18.9 million $28.9 million $27.0 million
Diluted earnings per share $0.43 $0.89 $0.85
Return on avg assets 0.54% 1.25% 1.29%
Return on avg common equity 3.88% 9.12% 9.27%
Return on tangible common equity 7.53% 14.47% 14.71%
Net interest margin(1) 4.21% 3.91% 4.12%
Core earnings(2) $42.0 million $27.7 million $28.8 million
Diluted core earnings per share(2) $0.97 $0.86 $0.91
Core return on avg assets(2) 1.20% 1.20% 1.38%
Core return on avg common equity(2) 8.63% 8.77% 9.89%
Core return on tangible common equity(2) 15.97% 13.93% 15.65%
Core net interest margin(1)(2) 3.70% 3.77% 3.76%
Efficiency ratio 51.36% 55.06% 55.47%
(1) Fully tax equivalent.
(2) Core earnings excludes non-core items, which is a non-GAAP measurement.


Loans
4th Qtr 2017 3rd Qtr 2017 4th Qtr 2016
Total loans $10.8 billion $6.3 billion $5.6 billion
Legacy loans (all loans excluding loans acquired) $5.7 billion $5.2 billion $4.3 billion
Loans acquired $5.1 billion $1.1 billion $1.3 billion

Total loans, including those acquired, were $10.8 billion at December 31, 2017, an increase of $5.2 billion, or 91.4% from December 31, 2016.

On a linked-quarter basis (December 31, 2017 compared to September 30, 2017), total loans increased $4.5 billion, or 71.0%. The increase was due to:

  • $4.2 billion increase in loans acquired on October 19th
  • $193 million net increase in loans at Southwest Bank since merger
  • $54 million net increase in loans at Bank SNB since merger
  • $118 million net increase in loans at Simmons Bank
  • $26 million decrease in liquidating portfolio (indirect lending and consumer finance)
  • $65 million decrease from seasonal agricultural loan payoffs

Deposits
4th Qtr 2017 3rd Qtr 2017 4th Qtr 2016
Total deposits $11.1 billion $7.3 billion $6.7 billion
Non-time deposits $9.2 billion $6.0 billion $5.4 billion
Time deposits $1.9 billion $1.3 billion $1.3 billion

At December 31, 2017, total deposits were $11.1 billion, an increase of 64.7%, compared to the same period in 2016. The increase is from the recent acquisitions and growth in core deposits. Total non-time deposits increased 68.1% compared to the same period in 2016, and comprised 82.6% of total deposits.

Net Interest Income

The Company’s net interest income for the fourth quarter of 2017 was $126.9 million, an increase of $52.6 million, or 70.8%, from the same period of 2016. Included in interest income was the yield accretion recognized on loans acquired of $15.7 million and $6.6 million for the fourth quarters of 2017 and 2016, respectively. Net interest margin was 4.21% for the quarter ended December 31, 2017, a 9 basis point increase from the same quarter of 2016. The Company’s core net interest margin, excluding the accretion, was 3.70% for the fourth quarter of 2017, a 6 basis point decline from December 31, 2016 and a 7 basis point decrease from September 30, 2017. Cost of interest bearing deposits was 0.63% for the fourth quarter of 2017, a 32 basis point increase from December 31, 2016 and a 20 basis point increase from September 30, 2017.

Non-Interest Income

Non-interest income for the fourth quarter 2017 was $36.6 million, an increase of $514,000 compared to the fourth quarter of 2016. The increase was primarily due to additional trust income, service charge and fee income resulting from the acquisitions. These increases were partially offset by the following items included in non-interest income:

  • $315,000 decrease in insurance income, due to the sale of the property and casualty lines of business in the third quarter of 2017
  • $566,000 decrease in the gain on sale of SBA loans
  • $2.7 million decrease in gain on sale of securities

Non-Interest Expense

Non-interest expense for the fourth quarter of 2017 was $108.5 million, an increase of $41.8 million compared to the fourth quarter of 2016. Included in this quarter were $14.2 million of merger-related expenses and branch rightsizing costs. Also included was a $5 million donation to Simmons Foundation. Excluding these expenses, core non-interest expense was $89.3 million.

The increases during the quarter were driven by incremental increases in operating expenses related to the additions of Bank SNB and Southwest Bank during the quarter and First South Bank which closed earlier in 2017. The efficiency ratio for the fourth quarter 2017 was 51.36%.

Asset Quality
4th Qtr 2017 3rd Qtr 2017 4th Qtr 2016
Allowance for loan losses on loans to total loans 0.73% 0.82% 0.84%
Allowance for loan losses on loans to non-performing loans 90% 78% 92%
Non-performing loans to total loans 0.81% 1.05% 0.91%
Net charge-off ratio (annualized) 0.53% 0.32% 0.20%
Net charge-off ratio excluding credit cards 0.51% 0.27% 0.14%

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 December 31, 2017, the allowance for loan losses for legacy loans was $41.7 million. The allowance for loan losses for loans acquired was $418,000 and the acquired loan discount credit mark was $89.3 million. The allowances for loan losses and credit marks provide a total of $131.4 million of coverage, which equates to a total coverage ratio of 1.2% of gross loans. The ratio of credit mark and related allowance to loans acquired was 1.7%.

Provision for loan losses for the fourth quarter of 2017 was $9.6 million, an increase of $5.3 million compared to December 31, 2016.

Foreclosed Assets and Other Real Estate Owned

At December 31, 2017, foreclosed assets and other real estate owned were $32.1 million, an increase of $5.2 million, or 19.4%, compared to the same period in 2016. The composition of these assets is divided into three types:

4th Qtr 2017 3rd Qtr 2017 4th Qtr 2016
Closed bank branches, branch sites & associate relocation $9.8 million $12.8 million $6.1 million
Legacy loans (all loans excluding loans acquired) $16.0 million $11.1 million $12.0 million
Loans acquired $6.3 million $7.6 million $8.8 million


Capital
4th Qtr 2017 3rd Qtr 2017 4th Qtr 2016
Stockholders’ equity to total assets 13.9% 13.2% 13.7%
Tangible common equity to tangible assets 8.1% 9.1% 9.4%
Regulatory tier 1 leverage ratio 9.2% 10.6% 11.0%
Regulatory total risk-based capital ratio 11.6% 13.5% 15.1%

At December 31, 2017, common stockholders' equity was $2.1 billion, book value per share was $45.30 and tangible book value per share was $24.68.

Simmons First National Corporation

Simmons First National Corporation is a financial holding company, headquartered in Pine Bluff, Arkansas, with total assets of $15.1 billion as of December 31, 2017 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 9:00 a.m. CST on Tuesday, January 23, 2018. Interested persons can listen to this call by dialing toll-free 1-866-298-7926 (United States and Canada only) and asking for the Simmons First National Corporation conference call, conference ID 9490927. 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 manage and successfully integrate its 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 Corporation’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 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
(Unaudited) 2017 2017 2017 2017 2016
($ in thousands)
ASSETS
Cash and non-interest bearing balances due from banks$205,025 $108,675 $112,567 $103,875 $117,007
Interest bearing balances due from banks and federal funds sold 393,017 323,615 217,047 201,406 168,652
Cash and cash equivalents 598,042 432,290 329,614 305,281 285,659
Interest bearing balances due from banks - time 3,314 4,059 6,057 4,563 4,563
Investment securities - held-to-maturity 368,058 406,033 419,003 431,176 462,096
Investment securities - available-for-sale 1,589,517 1,317,420 1,190,600 1,257,813 1,157,354
Mortgage loans held for sale 24,038 12,614 16,266 9,754 27,788
Assets held in trading accounts - 49 50 55 41
Other assets held for sale 165,780 182,378 - - -
Loans:
Legacy loans 5,705,609 5,211,312 5,000,572 4,632,905 4,327,207
Allowance for loan losses (41,668) (42,717) (41,379) (37,865) (36,286)
Loans acquired, net of discount and allowance 5,074,076 1,092,039 1,224,739 1,144,291 1,305,683
Net loans 10,738,017 6,260,634 6,183,932 5,739,331 5,596,604
Premises and equipment 287,249 224,376 230,641 221,880 199,359
Premises held for sale - - - 4,611 6,052
Foreclosed assets and other real estate owned 32,118 31,477 26,012 26,421 26,895
Interest receivable 43,528 30,749 27,337 26,089 27,788
Bank owned life insurance 185,984 148,984 148,134 139,439 138,620
Goodwill 842,651 375,731 379,437 350,035 348,505
Other intangible assets 106,071 55,501 58,528 51,408 52,959
Other assets 71,439 53,075 52,697 58,782 65,773
Total assets$ 15,055,806 $ 9,535,370 $ 9,068,308 $ 8,626,638 $ 8,400,056
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts $ 2,665,249 $ 1,669,860 $ 1,650,986 $ 1,554,675 $ 1,491,676
Interest bearing transaction accounts and savings deposits 6,494,896 4,344,779 4,141,426 3,987,730 3,956,483
Time deposits less than $100,000 1,196,760 675,186 645,855 653,538 686,780
Time deposits greater than $100,000 735,970 635,765 665,268 592,345 600,280
Total deposits 11,092,875 7,325,590 7,103,535 6,788,288 6,735,219
Federal funds purchased and securities sold
under agreements to repurchase 122,444 121,687 121,419 110,007 115,029
Other borrowings 1,380,024 522,541 474,962 441,074 273,159
Subordinated debentures 140,565 67,418 67,312 60,503 60,397
Other liabilities held for sale 157,366 176,964 - - -
Accrued interest and other liabilities 77,968 63,971 67,004 55,877 65,141
Total liabilities 12,971,242 8,278,171 7,834,232 7,455,749 7,248,945
Stockholders' equity:
Common stock 460 322 322 314 313
Surplus 1,586,494 763,443 761,754 716,564 711,976
Undivided profits 511,858 504,085 483,322 468,309 454,034
Accumulated other comprehensive income (loss):
Unrealized appreciation (depreciation) on AFS securities (14,248) (10,651) (11,322) (14,298) (15,212)
Total stockholders' equity 2,084,564 1,257,199 1,234,076 1,170,889 1,151,111
Total liabilities and stockholders' equity $ 15,055,806 $ 9,535,370 $ 9,068,308 $ 8,626,638 $ 8,400,056
Page 1


Simmons First National Corporation SFNC
Consolidated Statements of Income - Quarter-to-Date
For the Quarters Ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
(Unaudited) 2017 2017 2017 2017 2016
($ in thousands, except per share data)
INTEREST INCOME
Loans$132,617 $77,457 $73,549 $68,728 $70,887
Interest bearing balances due from banks and federal funds sold 947 650 214 122 245
Investment securities 11,456 9,218 9,990 9,451 8,700
Mortgage loans held for sale 175 159 145 126 230
Assets held in trading accounts - - - - 3
TOTAL INTEREST INCOME 145,195 87,484 83,898 78,427 80,065
INTEREST EXPENSE
Time deposits 3,944 2,110 1,832 1,758 2,023
Other deposits 8,762 3,920 2,984 2,446 2,032
Federal funds purchased and securities
sold under agreements to repurchase 97 83 92 75 90
Other borrowings 3,993 1,875 1,559 1,194 1,034
Subordinated debentures 1,480 677 619 574 558
TOTAL INTEREST EXPENSE 18,276 8,665 7,086 6,047 5,737
NET INTEREST INCOME 126,919 78,819 76,812 72,380 74,328
Provision for loan losses 9,601 5,462 7,023 4,307 4,332
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 117,318 73,357 69,789 68,073 69,996
NON-INTEREST INCOME
Trust income 6,020 4,225 4,113 4,212 4,282
Service charges on deposit accounts 10,587 8,907 8,483 8,102 8,666
Other service charges and fees 2,774 2,433 2,515 2,197 4,026
Mortgage and SBA lending income 3,713 3,219 3,961 2,423 4,580
Investment banking income 786 680 637 690 472
Debit and credit card fees 8,801 8,864 8,659 7,934 8,027
Bank owned life insurance income 1,101 725 859 818 895
(Loss) gain on sale of securities, net (1,243) 3 2,236 63 1,445
Other income 4,090 7,276 4,281 3,621 3,722
TOTAL NON-INTEREST INCOME 36,629 36,332 35,744 30,060 36,115
NON-INTEREST EXPENSE
Salaries and employee benefits 49,288 35,285 34,205 35,536 33,797
Occupancy expense, net 6,700 4,928 4,868 4,663 4,516
Furniture and equipment expense 5,533 4,840 4,550 4,443 4,387
Other real estate and foreclosure expense 865 1,071 517 589 679
Deposit insurance 1,216 1,020 780 680 89
Merger-related costs 14,044 752 6,603 524 2,846
Other operating expenses 30,844 18,263 19,885 19,887 20,411
TOTAL NON-INTEREST EXPENSE 108,490 66,159 71,408 66,322 66,725
NET INCOME BEFORE INCOME TAXES 45,457 43,530 34,125 31,811 39,386
Provision for income taxes 26,554 14,678 11,060 9,691 12,415
NET INCOME $ 18,903 $ 28,852 $ 23,065 $ 22,120 $ 26,971
BASIC EARNINGS PER SHARE $ 0.44 $ 0.90 $ 0.72 $ 0.71 $ 0.86
DILUTED EARNINGS PER SHARE $ 0.43 $ 0.89 $ 0.72 $ 0.70 $ 0.85
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Simmons First National Corporation SFNC
Consolidated Risk-Based Capital
For the Quarters Ended
(Unaudited) Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
2017 2017 2017 2017 2016
($ in thousands)
Tier 1 capital
Stockholders' equity$2,084,564 $1,257,199 $1,234,076 $1,170,889 $1,151,111
Trust preferred securities, net allowable - 67,418 67,312 60,503 60,397
Disallowed intangible assets, net of deferred tax (902,371) (401,419) (406,990) (361,944) (354,028)
Unrealized loss on AFS securities 17,264 10,651 11,322 14,298 15,212
Other - - - - 15
Total Tier 1 capital 1,199,457 933,849 905,720 883,746 872,707
Tier 2 capital
Qualifying unrealized gain on AFS equity securities 1 1 1 2 -
Trust preferred securities and subordinated debt 140,565 - - - -
Qualifying allowance for loan losses and
reserve for unfunded commitments 48,947 46,709 45,369 41,303 40,241
Total Tier 2 capital 189,513 46,710 45,370 41,305 40,241
Total risk-based capital$1,388,970 $980,559 $951,090 $925,051 $912,948
Common equity
Tier 1 capital$1,199,457 $933,849 $905,720 $883,746 $872,707
Less: Trust preferred securities - (67,418) (67,312) (60,503) (60,397)
Total common equity$1,199,457 $866,431 $838,408 $823,243 $812,310
Risk weighted assets$11,930,764 $7,239,923 $6,925,727 $6,425,150 $6,039,034
Adjusted average assets for leverage ratio$ 13,016,478 $ 8,789,175 $ 8,424,763 $ 8,076,525 $ 7,966,681
Ratios at end of quarter
Equity to assets 13.85% 13.18% 13.61% 13.57% 13.70%
Tangible common equity to tangible assets (1) 8.05% 9.07% 9.22% 9.35% 9.37%
Common equity Tier 1 ratio (CET1) 10.05% 11.97% 12.11% 12.81% 13.45%
Tier 1 leverage ratio 9.21% 10.62% 10.75% 10.94% 10.95%
Tier 1 risk-based capital ratio 10.05% 12.90% 13.08% 13.75% 14.45%
Total risk-based capital ratio 11.64% 13.54% 13.73% 14.40% 15.12%
(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 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
(Unaudited) 2017 2017 2017 2017 2016
($ in thousands)
Legacy Loan Portfolio - End of Period (1)
Consumer
Credit cards$185,422 $176,316 $176,953 $171,947 $184,591
Other consumer 280,094 317,946 366,136 349,200 303,972
Total consumer 465,516 494,262 543,089 521,147 488,563
Real Estate
Construction 614,155 515,274 457,896 365,051 336,759
Single-family residential 1,094,633 1,048,403 1,014,412 957,717 904,245
Other commercial 2,530,824 2,231,223 2,089,707 1,959,677 1,787,075
Total real estate 4,239,612 3,794,900 3,562,015 3,282,445 3,028,079
Commercial
Commercial 825,217 688,960 ��678,932 657,606 639,525
Agricultural 148,302 207,849 191,345 141,125 150,378
Total commercial 973,519 896,809 870,277 798,731 789,903
Other 26,962 25,341 25,191 30,582 20,662
Total Loans$ 5,705,609 $ 5,211,312 $ 5,000,572 $ 4,632,905 $ 4,327,207
(1) Excludes all acquired loans.
Investment Securities - End of Period
Held-to-Maturity
U.S. Government agencies$46,945 $66,928 $67,912 $68,895 $76,875
Mortgage-backed securities 16,132 16,972 17,882 18,743 19,773
State and political subdivisions 301,491 320,116 331,249 341,854 362,532
Other securities 3,490 2,017 1,960 1,684 2,916
Total held-to-maturity 368,058 406,033 419,003 431,176 462,096
Available-for-Sale
U.S. Treasury$- $- $19,997 $- $300
U.S. Government agencies 139,724 208,220 147,619 142,356 137,771
Mortgage-backed securities 1,187,317 959,698 878,205 927,277 868,324
State and political subdivisions 143,165 84,822 83,672 130,747 102,943
FHLB stock 58,914 24,415 21,772 19,149 12,235
Other securities 60,397 40,265 39,335 38,285 35,781
Total available-for-sale 1,589,517 1,317,420 1,190,600 1,257,814 1,157,354
Total investment securities$ 1,957,575 $ 1,723,453 $ 1,609,603 $ 1,688,990 $ 1,619,450
Fair value - HTM investment securities$ 373,298 $ 412,140 $ 425,263 $ 435,701 $ 465,960
Investment Securities - QTD Average
Taxable securities$1,569,173 $1,229,172 $1,244,071 $1,185,794 $1,146,703
Tax exempt securities 446,040 409,062 467,420 455,481 467,757
Total investment securities - QTD average$ 2,015,213 $ 1,638,234 $ 1,711,491 $ 1,641,275 $ 1,614,460
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Simmons First National Corporation SFNC
Consolidated Loans and Credit Coverage
For the Quarters Ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
(Unaudited) 2017 2017 2017 2017 2016
($ in thousands)
LOANS
Legacy loans $ 5,705,609 $ 5,211,312 $ 5,000,572 $ 4,632,905 $ 4,327,207
Allowance for loan losses (legacy loans) (41,668) (42,717) (41,379) (37,865) (36,286)
Legacy loans (net of allowance) 5,663,941 5,168,595 4,959,193 4,595,040 4,290,921
Loans acquired 5,163,769 1,117,424 1,253,539 1,173,667 1,342,099
Credit discount (89,275) (24,994) (28,409) (28,941) (35,462)
Allowance for loan losses (loans acquired) (418) (391) (391) (435) (954)
Loans acquired (net of discount and allowance) 5,074,076 1,092,039 1,224,739 1,144,291 1,305,683
Net loans $ 10,738,017 $ 6,260,634 $ 6,183,932 $ 5,739,331 $ 5,596,604
Loan Coverage Ratios
Allowance for loan losses to legacy loans 0.73% 0.82% 0.83% 0.82% 0.84%
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) 1.74% 2.27% 2.30% 2.50% 2.71%
Total allowance and credit coverage (non-GAAP) (1) 1.21% 1.08% 1.12% 1.16% 1.28%
(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 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
(Unaudited) 2017 2017 2017 2017 2016
($ in thousands)
Allowance for Loan Losses (Legacy Loans)
Balance, beginning of quarter $ 42,717 $ 41,379 $ 37,865 $ 36,286 $ 34,094
Loans charged off
Credit cards 943 1,017 901 1,044 935
Other consumer 781 819 993 1,174 493
Real estate 4,725 896 1,712 656 167
Commercial 4,754 2,442 349 292 913
Total loans charged off 11,203 5,174 3,955 3,166 2,508
Recoveries of loans previously charged off
Credit cards 233 275 277 236 213
Other consumer 468 445 636 690 158
Real estate 233 309 216 232 73
Commercial 20 21 32 30 28
Total recoveries 954 1,050 1,161 1,188 472
Net loans charged off 10,249 4,124 2,794 1,978 2,036
Provision for loan losses 9,200 5,462 6,308 3,557 4,228
Balance, end of quarter $ 41,668 $ 42,717 $ 41,379 $ 37,865 $ 36,286
Non-performing assets (1) (2)
Non-performing loans
Nonaccrual loans 45,642 54,439 57,127 52,913 39,104
Loans past due 90 days or more 520 232 281 231 299
Total non-performing loans 46,162 54,671 57,408 53,144 39,403
Other non-performing assets
Foreclosed assets and other real estate owned (2) 32,118 31,477 26,012 26,421 26,895
Other non-performing assets 675 639 485 352 471
Total other non-performing assets 32,793 32,116 26,497 26,773 27,366
Total non-performing assets $ 78,955 $ 86,787 $ 83,905 $ 79,917 $ 66,769
Performing TDRs (troubled debt restructurings) $ 7,107 $ 9,212 $ 8,794 $ 10,833 $ 10,998
Ratios (1) (2)
Allowance for loan losses to total loans 0.73% 0.82% 0.83% 0.82% 0.84%
Allowance for loan losses to non-performing loans 90% 78% 72% 71% 92%
Non-performing loans to total loans 0.81% 1.05% 1.15% 1.15% 0.91%
Non-performing assets (including performing TDRs)
to total assets 0.57% 1.01% 1.02% 1.05% 0.93%
Non-performing assets to total assets 0.52% 0.91% 0.93% 0.93% 0.79%
Annualized net charge offs to total loans 0.53% 0.32% 0.23% 0.18% 0.20%
Annualized net credit card charge offs to
total credit card loans 1.54% 1.65% 1.42% 1.84% 1.66%
Annualized net charge offs to total loans
(excluding credit cards) 0.51% 0.27% 0.19% 0.11% 0.14%
(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
Dec 2017
Three Months Ended
Sep 2017
Three Months Ended
Dec 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 342,589 9471.10% 269,111 6500.96% 248,777 2450.39%
Investment securities - taxable 1,702,531 8,5922.00% 1,313,333 6,5741.99% 1,236,864 5,6811.83%
Investment securities - non-taxable (FTE) 312,682 4,7025.97% 324,901 4,3415.30% 377,596 4,9595.22%
Mortgage loans held for sale 15,144 1754.58% 13,388 1594.71% 23,307 2303.93%
Assets held in trading accounts 14 - 0.00% 52 - 0.00% 1,774 30.67%
Loans, including acquired loans 9,772,043 132,7045.39% 6,261,507 77,5114.91% 5,484,918 70,9415.15%
Total interest earning assets (FTE) 12,145,003 147,1204.81% 8,182,292 89,2354.33% 7,373,236 82,0594.43%
Non-earning assets 1,752,775 993,315 935,222
Total assets$ 13,897,778 $ 9,175,607 $ 8,308,458
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Interest bearing transaction and
savings accounts$ 6,132,456$ 8,7620.57% $ 4,227,567$ 3,9200.37% $ 3,895,367$ 2,0320.21%
Time deposits 1,852,148 3,9440.84% 1,330,889 2,1100.63% 1,292,961 2,0230.62%
Total interest bearing deposits 7,984,604 12,7060.63% 5,558,456 6,0300.43% 5,188,328 4,0550.31%
Federal funds purchased and securities
sold under agreement to repurchase 126,432 970.30% 115,583 830.28% 124,323 900.29%
Other borrowings 988,614 3,9931.60% 502,972 1,8751.48% 203,615 1,0342.02%
Subordinated debentures 127,680 1,4804.60% 67,367 6773.99% 60,345 5583.68%
Total interest bearing liabilities 9,227,330 18,2760.79% 6,244,378 8,6650.55% 5,576,611 5,7370.41%
Non-interest bearing liabilities:
Non-interest bearing deposits 2,476,235 1,613,248 1,515,853
Other liabilities 262,409 62,287 59,061
Total liabilities 11,965,974 7,919,913 7,151,525
Stockholders' equity 1,931,804 1,255,694 1,156,933
Total liabilities and stockholders' equity$ 13,897,778 $ 9,175,607 $ 8,308,458
Net interest income (FTE) $ 128,844 $ 80,570 $ 76,322
Net interest spread (FTE) 4.02% 3.78% 4.02%
Net interest margin (FTE) - quarter-to-date 4.21% 3.91% 4.12%
Net interest margin (FTE) - year-to-date 4.07% 3.99% 4.19%
Core net interest margin (FTE) - quarter-to-date (1) 3.70% 3.77% 3.76%
Core loan yield (FTE) - quarter-to-date (1) 4.75% 4.72% 4.67%
Core net interest margin (FTE) - year-to-date (1) 3.76% 3.79% 3.83%
Core loan yield (FTE) - year-to-date (1) 4.69% 4.65% 4.72%
(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 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
(Unaudited) 2017 2017 2017 2017 2016
($ in thousands, except share data)
QUARTER-TO-DATE
Financial Highlights - GAAP
Net Income $ 18,903 $ 28,852 $ 23,065 $ 22,120 $ 26,971
Diluted earnings per share 0.43 0.89 0.72 0.70 0.85
Return on average assets 0.54% 1.25% 1.05% 1.07% 1.29%
Return on average common equity 3.88% 9.12% 7.65% 7.69% 9.27%
Return on tangible common equity 7.53% 14.47% 12.13% 12.22% 14.71%
Net interest margin (FTE) 4.21% 3.91% 4.04% 4.04% 4.12%
FTE adjustment 1,925 1,751 2,082 1,965 1,994
Amortization of intangibles 2,839 1,724 1,553 1,550 1,533
Amortization of intangibles, net of taxes 1,725 1,048 944 942 932
Average diluted shares outstanding 43,518,022 32,423,796 32,025,780 31,612,900 31,592,713
Cash dividends declared per common share 0.25 0.25 0.25 0.25 0.24
Financial Highlights - Core (non-GAAP)
Core earnings (excludes non-core items) (1) $ 42,018 $ 27,746 $ 26,753 $ 22,532 $ 28,751
Diluted core earnings per share (1) 0.97 0.86 0.84 0.71 0.91
Core net interest margin (FTE) (2) 3.70% 3.77% 3.79% 3.80% 3.76%
Accretable yield on acquired loans 15,684 2,890 4,792 4,427 6,552
Efficiency ratio (1) 51.36% 55.06% 56.04% 60.92% 55.47%
Core return on average assets (1) 1.20% 1.20% 1.22% 1.09% 1.38%
Core return on average common equity (1) 8.63% 8.77% 8.87% 7.83% 9.89%
Core return on tangible common equity (1) 15.97% 13.93% 13.99% 12.44% 15.65%
YEAR-TO-DATE
Financial Highlights - GAAP
Net Income $ 92,940 $ 74,037 $ 45,185 $ 22,120 $ 96,790
Diluted earnings per share 2.66 2.31 1.42 0.70 3.13
Return on average assets 0.92% 1.12% 1.06% 1.07% 1.25%
Return on average common equity 6.68% 8.18% 7.67% 7.69% 8.75%
Return on tangible common equity 11.26% 12.97% 12.17% 12.22% 13.92%
Net interest margin (FTE) 4.07% 3.99% 4.04% 4.04% 4.19%
FTE adjustment 7,723 5,798 4,047 1,965 7,722
Amortization of intangibles 7,666 4,827 3,103 1,550 5,942
Amortization of intangibles, net of taxes 4,659 2,934 1,886 942 3,611
Average diluted shares outstanding 34,926,460 32,007,135 31,794,363 31,612,900 30,963,546
Cash dividends declared per common share 1.00 0.75 0.50 0.25 0.96
Financial Highlights - Core (non-GAAP)
Core earnings (excludes non-core items) (1) $ 119,049 $ 77,031 $ 49,285 $ 22,532 $ 101,409
Diluted core earnings per share (1) 3.41 2.41 1.55 0.71 3.28
Core net interest margin (FTE) (2) 3.76% 3.79% 3.79% 3.80% 3.83%
Accretable yield on acquired loans 27,793 12,109 9,219 4,427 24,257
Efficiency ratio (1) 55.27% 57.25% 58.40% 60.92% 56.32%
Core return on average assets (1) 1.18% 1.17% 1.15% 1.09% 1.31%
Core return on average common equity (1) 8.56% 8.51% 8.37% 7.83% 9.17%
Core return on tangible common equity (1) 14.28% 13.48% 13.23% 12.44% 14.56%
END OF PERIOD
Book value per share $ 45.30 $ 39.03 $ 38.31 $ 37.30 $ 36.80
Tangible book value per share 24.68 25.64 24.71 24.51 23.97
Shares outstanding 46,014,559 32,212,242 32,212,832 31,388,357 31,277,723
Full-time equivalent employees 2,640 1,942 1,919 1,876 1,875
Total number of financial centers 200 156 161 151 150
(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 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
(Unaudited) 2017 2017 2017 2017 2016
($ in thousands, except per share data)
QUARTER-TO-DATE
Net Income $ 18,903 $ 28,852 $ 23,065 $ 22,120 $ 26,971
Non-core items
Gain on sale of P&C insurance business - (3,708) - - -
Donation to Simmons Foundation 5,000 - - - -
Merger-related costs 14,044 752 6,603 524 2,846
Branch right-sizing 116 435 (536) 154 83
Tax effect (1) (7,516) 1,415 (2,379) (266) (1,149)
Net non-core items (before SAB 118 adjustment) 11,644 (1,106) 3,688 412 1,780
SAB 118 adjustment (2) 11,471 - - - -
Core earnings (non-GAAP) $ 42,018 $ 27,746 $ 26,753 $ 22,532 $ 28,751
Diluted earnings per share $ 0.43 $ 0.89 $ 0.72 $ 0.70 $ 0.85
Non-core items
Gain on sale of P&C insurance business - (0.11) - - -
Donation to Simmons Foundation 0.11 - - - -
Merger-related costs 0.33 0.02 0.21 0.02 0.09
Branch right-sizing - 0.01 (0.02) - -
Tax effect (1) (0.16) 0.05 (0.07) (0.01) (0.03)
Net non-core items (before SAB 118 adjustment) 0.28 (0.03) 0.12 0.01 0.06
SAB 118 adjustment (2) 0.26 - - - -
Core earnings (non-GAAP) $ 0.97 $ 0.86 $ 0.84 $ 0.71 $ 0.91
YEAR-TO-DATE
Net Income $ 92,940 $ 74,037 $ 45,185 $ 22,120 $ 96,790
Non-core items
Gain from early retirement of trust preferred securities - - - - (594)
Gain on sale of P&C insurance business (3,708) (3,708) - - -
Donation to Simmons Foundation 5,000 - - - -
Merger-related costs 21,923 7,879 7,127 524 4,835
Branch right-sizing 169 53 (382) 154 3,359
Tax effect (1) (8,746) (1,230) (2,645) (266) (2,981)
Net non-core items (before SAB 118 adjustment) 14,638 2,994 4,100 412 4,619
SAB 118 adjustment (2) 11,471 - - - -
Core earnings (non-GAAP) $ 119,049 $ 77,031 $ 49,285 $ 22,532 $ 101,409
Diluted earnings per share $ 2.66 $ 2.31 $ 1.42 $ 0.70 $ 3.13
Non-core items
Gain from early retirement of trust preferred securities - - - - (0.02)
Gain on sale of P&C insurance business (0.10) (0.11)
Donation to Simmons Foundation 0.14
Merger-related costs 0.63 0.25 0.22 0.02 0.16
Branch right-sizing - - (0.01) - 0.11
Tax effect (1) (0.25) (0.04) (0.08) (0.01) (0.10)
Net non-core items (before SAB 118 adjustment) 0.42 0.10 0.13 0.01 0.15
SAB 118 adjustment (2) 0.33 - - - -
Core earnings (non-GAAP) $ 3.41 $ 2.41 $ 1.55 $ 0.71 $ 3.28
(1) Effective tax rate of 39.225%, adjusted for non-deductible merger-related costs and deferred tax items on P&C insurance sale.
(2) Tax adjustment to revalue deferred tax assets and liabilites to account for the future impact of lower corporate tax
rates resulting from the "Tax Cuts and Jobs Act", signed into law on December 22, 2017.
Page 9


Simmons First National Corporation SFNC
Reconciliation Of Non-GAAP Financial Measures - End of Period
For the Quarters Ended
(Unaudited) Dec 31 Sept 30 Jun 30 Mar 31 Dec 31
2017 2017 2017 2017 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$ 2,084,564 $ 1,257,199 $ 1,234,076 $ 1,170,889 $ 1,151,111
Intangible assets:
Goodwill (842,651) (375,731) (379,437) (350,035) (348,505)
Other intangible assets (106,071) (55,501) (58,528) (51,408) (52,959)
Total intangibles (948,722) (431,232) (437,965) (401,443) (401,464)
Tangible common stockholders' equity$ 1,135,842 $ 825,967 $ 796,111 $ 769,446 $ 749,647
Total assets$ 15,055,806 $ 9,535,370 $ 9,068,308 $ 8,626,638 $ 8,400,056
Intangible assets:
Goodwill (842,651) (375,731) (379,437) (350,035) (348,505)
Other intangible assets (106,071) (55,501) (58,528) (51,408) (52,959)
Total intangibles (948,722) (431,232) (437,965) (401,443) (401,464)
Tangible assets$ 14,107,084 $ 9,104,138 $ 8,630,343 $ 8,225,195 $ 7,998,592
Ratio of equity to assets 13.85% 13.18% 13.61% 13.57% 13.70%
Ratio of tangible common equity to tangible assets 8.05% 9.07% 9.22% 9.35% 9.37%
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$ 89,275 $ 24,994 $ 28,409 $ 28,941 $ 35,462
Allowance for loan losses on acquired loans 418 391 391 435 954
Total credit discount and ALLL on acquired loans$ 89,693 $ 25,385 $ 28,800 $ 29,376 $ 36,416
Total loans acquired$ 5,163,769 $ 1,117,424 $ 1,253,539 $ 1,173,667 $ 1,342,099
Discount and ALLL on acquired loans to acquired loans 1.74% 2.27% 2.30% 2.50% 2.71%
Calculation of Total Allowance and Credit Coverage
Allowance for loan losses$ 41,668 $ 42,717 $ 41,379 $ 37,865 $ 36,286
Total credit discount and ALLL on acquired loans 89,693 25,385 28,800 29,376 36,416
Total allowance and credit discount$ 131,361 $ 68,102 $ 70,179 $ 67,241 $ 72,702
Total loans$ 10,869,378 $ 6,328,736 $ 6,254,155 $ 5,806,572 $ 5,669,306
Total allowance and credit coverage 1.21% 1.08% 1.12% 1.16% 1.28%
Calculation of Tangible Book Value per Share
Total common stockholders' equity$ 2,084,564 $ 1,257,199 $ 1,234,076 $ 1,170,889 $ 1,151,111
Intangible assets:
Goodwill (842,651) (375,731) (379,437) (350,035) (348,505)
Other intangible assets (106,071) (55,501) (58,528) (51,408) (52,959)
Total intangibles (948,722) (431,232) (437,965) (401,443) (401,464)
Tangible common stockholders' equity$ 1,135,842 $ 825,967 $ 796,111 $ 769,446 $ 749,647
Shares of common stock outstanding 46,014,559 32,212,242 32,212,832 31,388,357 31,277,723
Book value per common share$ 45.30 $ 39.03 $ 38.31 $ 37.30 $ 36.80
Tangible book value per common share$ 24.68 $ 25.64 $ 24.71 $ 24.51 $ 23.97
Page 10


Simmons First National Corporation SFNC
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date
For the Quarters Ended
(Unaudited) Dec 31 Sept 30 Jun 30 Mar 31 Dec 31
2017 2017 2017 2017 2016
($ in thousands)
Calculation of Core Return on Average Assets
Net income$ 18,903 $ 28,852 $ 23,065 $ 22,120 $ 26,971
Net non-core items, net of taxes, adjustment 23,115 (1,106) 3,688 412 1,780
Core earnings$ 42,018 $ 27,746 $ 26,753 $ 22,532 $ 28,751
Average total assets$ 13,897,778 $ 9,175,607 $ 8,812,460 $ 8,414,470 $ 8,308,458
Return on average assets 0.54% 1.25% 1.05% 1.07% 1.29%
Core return on average assets 1.20% 1.20% 1.22% 1.09% 1.38%
Calculation of Return on Tangible Common Equity
Net income$ 18,903 $ 28,852 $ 23,065 $ 22,120 $ 26,971
Amortization of intangibles, net of taxes 1,725 1,048 944 942 932
Total income available to common stockholders$ 20,628 $ 29,900 $ 24,009 $ 23,062 $ 27,903
Net non-core items, net of taxes 23,115 (1,106) 3,688 412 1,780
Core earnings 42,018 27,746 26,753 22,532 28,751
Amortization of intangibles, net of taxes 1,725 1,048 944 942 932
Total core income available to common stockholders$ 43,743 $ 28,794 $ 27,697 $ 23,474 $ 29,683
Average common stockholders' equity$ 1,931,804 $ 1,255,694 $ 1,209,343 $ 1,166,473 $ 1,156,933
Average intangible assets:
Goodwill (731,661) (378,387) (362,925) (348,837) (348,597)
Other intangibles (113,770) (57,232) (52,419) (52,169) (53,646)
Total average intangibles (845,431) (435,619) (415,344) (401,006) (402,243)
Average tangible common stockholders' equity$ 1,086,373 $ 820,075 $ 793,999 $ 765,467 $ 754,690
Return on average common equity 3.88% 9.12% 7.65% 7.69% 9.27%
Return on tangible common equity 7.53% 14.47% 12.13% 12.22% 14.71%
Core return on average common equity 8.63% 8.77% 8.87% 7.83% 9.89%
Core return on tangible common equity 15.97% 13.93% 13.99% 12.44% 15.65%
Calculation of Efficiency Ratio (1)
Non-interest expense$ 108,490 $ 66,159 $ 71,408 $ 66,322 $ 66,725
Non-core non-interest expense adjustment (19,160) (862) (6,700) (635) (2,995)
Other real estate and foreclosure expense adjustment (865) (1,071) (517) (550) (669)
Amortization of intangibles adjustment (2,839) (1,724) (1,553) (1,550) (1,533)
Efficiency ratio numerator$ 85,626 $ 62,502 $ 62,638 $ 63,587 $ 61,528
Net-interest income$ 126,919 $ 78,819 $ 76,812 $ 72,380 $ 74,328
Non-interest income 36,629 36,332 35,744 30,060 36,115
Non-core non-interest income adjustment - (3,383) (632) 43 (66)
Fully tax-equivalent adjustment 1,925 1,751 2,082 1,965 1,994
(Gain) loss on sale of securities 1,243 (3) (2,236) (63) (1,445)
Efficiency ratio denominator$ 166,716 $ 113,516 $ 111,770 $ 104,385 $ 110,926
Efficiency ratio (1) 51.36% 55.06% 56.04% 60.92% 55.47%
Calculation of Core Net Interest Margin
Net interest income$ 126,919 $ 78,819 $ 76,812 $ 72,380 $ 74,328
Fully tax-equivalent adjustment 1,925 1,751 2,082 1,965 1,994
Fully tax-equivalent net interest income 128,844 80,570 78,894 74,345 76,322
Total accretable yield (15,684) (2,890) (4,792) (4,427) (6,552)
Core net interest income$ 113,160 $ 77,680 $ 74,102 $ 69,918 $ 69,770
Average earning assets$ 12,145,003 $ 8,182,292 $ 7,841,208 $ 7,469,709 $ 7,373,236
Net interest margin 4.21% 3.91% 4.04% 4.04% 4.12%
Core net interest margin 3.70% 3.77% 3.79% 3.80% 3.76%
Calculation of Core Loan Yield
Loan interest income$ 132,617 $ 77,457 $ 73,549 $ 68,728 $ 70,887
Total accretable yield (15,684) (2,890) (4,792) (4,427) (6,552)
Core loan interest income$ 116,933 $ 74,567 $ 68,757 $ 64,301 $ 64,335
Average loan balance$ 9,772,043 $ 6,261,507 $ 5,954,019 $ 5,685,585 $ 5,484,918
Core loan yield 4.75% 4.72% 4.63% 4.59% 4.67%
(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) Dec 31 Sept 30 Jun 30 Mar 31 Dec 31
2017 2017 2017 2017 2016
($ in thousands)
Calculation of Core Return on Average Assets
Net income$ 92,940 $ 74,037 $ 45,185 $ 22,120 $ 96,790
Net non-core items, net of taxes, adjustment 26,109 2,994 4,100 412 4,619
Core earnings$ 119,049 $ 77,031 $ 49,285 $ 22,532 $ 101,409
Average total assets$ 10,074,951 $ 8,800,675 $ 8,613,240 $ 8,414,470 $ 7,760,233
Return on average assets 0.92% 1.12% 1.06% 1.07% 1.25%
Core return on average assets 1.18% 1.17% 1.15% 1.09% 1.31%
Calculation of Return on Tangible Common Equity
Net income$ 92,940 $ 74,037 $ 45,185 $ 22,120 $ 96,790
Amortization of intangibles, net of taxes 4,659 2,934 1,886 942 3,611
Total income available to common stockholders$ 97,599 $ 76,971 $ 47,071 $ 23,062 $ 100,401
Net non-core items, net of taxes 26,109 2,994 4,100 412 4,619
Core earnings 119,049 77,031 49,285 22,532 101,409
Amortization of intangibles, net of taxes 4,659 2,934 1,886 942 3,611
Total core income available to common stockholders$ 123,708 $ 79,965 $ 51,171 $ 23,474 $ 105,020
Average common stockholders' equity$ 1,390,815 $ 1,210,487 $ 1,187,906 $ 1,166,473 $ 1,105,775
Average intangible assets:
Goodwill (455,453) (363,383) (355,881) (348,837) (332,974)
Other intangibles (68,896) (53,941) (52,294) (52,169) (51,710)
Total average intangibles (524,349) (417,324) (408,175) (401,006) (384,684)
Average tangible common stockholders' equity$ 866,466 $ 793,163 $ 779,731 $ 765,467 $ 721,091
Return on average common equity 6.68% 8.18% 7.67% 7.69% 8.75%
Return on tangible common equity 11.26% 12.97% 12.17% 12.22% 13.92%
Core return on average common equity 8.56% 8.51% 8.37% 7.83% 9.17%
Core return on tangible common equity 14.28% 13.48% 13.23% 12.44% 14.56%
Calculation of Efficiency Ratio (1)
Non-interest expense$ 312,379 $ 203,889 $ 137,730 $ 66,322 $ 255,085
Non-core non-interest expense adjustment (27,357) (8,197) (7,335) (635) (8,435)
Other real estate and foreclosure expense adjustment (3,042) (2,177) (1,067) (550) (4,389)
Amortization of intangibles adjustment (7,666) (4,827) (3,103) (1,550) (5,942)
Efficiency ratio numerator$ 274,314 $ 188,688 $ 126,225 $ 63,587 $ 236,319
Net-interest income$ 354,930 $ 228,011 $ 149,192 $ 72,380 $ 279,206
Non-interest income 138,765 102,136 65,804 30,060 139,382
Non-core non-interest income adjustment (3,972) (3,972) (589) 43 (835)
Fully tax-equivalent adjustment 7,723 5,798 4,047 1,965 7,722
(Gain) loss on sale of securities (1,059) (2,302) (2,299) (63) (5,848)
Efficiency ratio denominator$ 496,387 $ 329,671 $ 216,155 $ 104,385 $ 419,627
Efficiency ratio (1) 55.27% 57.25% 58.40% 60.92% 56.32%
Calculation of Core Net Interest Margin
Net interest income$ 354,930 $ 228,011 $ 149,192 $ 72,380 $ 279,206
Fully tax-equivalent adjustment 7,723 5,798 4,047 1,965 7,722
Fully tax-equivalent net interest income 362,653 233,809 153,239 74,345 286,928
Total accretable yield (27,793) (12,109) (9,219) (4,427) (24,257)
Core net interest income$ 334,860 $ 221,700 $ 144,020 $ 69,918 $ 262,671
Average earning assets$ 8,908,418 $ 7,829,548 $ 7,653,177 $ 7,469,709 $ 6,855,322
Net interest margin 4.07% 3.99% 4.04% 4.04% 4.19%
Core net interest margin 3.76% 3.79% 3.79% 3.80% 3.83%
Calculation of Core Loan Yield
Loan interest income$ 352,351 $ 219,734 $ 142,277 $ 68,728 $ 265,652
Total accretable yield (27,793) (12,109) (9,219) (4,427) (24,257)
Core loan interest income$ 324,558 $ 207,625 $ 133,058 $ 64,301 $ 241,395
Average loan balance$ 6,918,293 $ 5,967,036 $ 5,819,803 $ 5,685,585 $ 5,109,492
Core loan yield 4.69% 4.65% 4.61% 4.59% 4.72%
(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