Simmons First Announces Third Quarter Earnings

PINE BLUFF, Ark., Oct. 25, 2012 (GLOBE NEWSWIRE) -- Simmons First National Corporation (Nasdaq:SFNC) today announced net income of $6.8 million and diluted earnings per share of $0.41 for the quarter ended September 30, 2012. Net income for the nine months ended September 30, 2012, was $19.7 million, or $1.16 diluted earnings per share.

On September 14, 2012, the Company announced that its wholly-owned bank subsidiary, Simmons First National Bank, entered into a purchase and assumption agreement with loss share arrangements with the FDIC to purchase $219 million in assets and assume substantially all of the deposits and other liabilities of Truman Bank of St. Louis, Missouri. Another $63 million in Truman Bank assets were acquired through a linked-bid loan sale agreement with the FDIC. The Company recognized a pre-tax bargain purchase gain of $1.1 million on this transaction and incurred pre-tax merger related costs of $815,000. After taxes, the combined non-recurring items from the transactions contributed $185,000 to net income, or $0.01 to diluted earnings per share.

"Excluding the non-recurring items from the Truman Bank acquisition, and other non-recurring items from 2011, quarterly core EPS decreased $0.02, or 4.8%, and year-to-date core EPS increased $0.07, or 6.5%. We are pleased with our third quarter earnings performance. We continue to benefit significantly from strong asset quality, which has resulted in a reduction in our provision for loan losses, and from our on-going efficiency initiatives that resulted in a decrease in our year-to-date non-interest expense," commented J. Thomas May, Chairman and CEO.

Loans

Total loans, including those acquired, were $1.9 billion at September 30, 2012, an increase of $56 million compared to the same period in 2011. "On a quarter over quarter basis, loans acquired in the Truman acquisition were $130 million net of discounts, FDIC covered loans from previous acquisitions declined $66 million, as expected, and legacy loans declined $8 million," commented May.

Legacy loans (excluding acquired loans) increased $8.7 million from the previous quarter end. "This increase was primarily driven by our commercial real estate and seasonality in our agricultural lending, somewhat mitigated by a slight decline in student loans and commercial loan portfolios," added May.

Deposits

At September 30, 2012, total deposits were $2.8 billion, an increase of $160 million, or 6.1%, compared to the same period in 2011. Deposits acquired in the Truman acquisition were $194 million at quarter end. Total non-time deposits totaled $1.9 billion, or 68% of total deposits.

Net Interest Income

The Company's net interest income for the third quarter of 2012 was $27.9 million, a $662,000 increase from the same period of 2011. Included in interest income for the period is the additional yield accretion recognized as a result of updated estimates of the cash flows of the loan pools acquired in the Company's 2010 FDIC-assisted transactions. Each quarter, the Company estimates the cash flows expected to be collected from the acquired loan pools, and adjustments may or may not be required. The cash flows estimate has increased based on payment histories and reduced loss expectations of the loan pools. This resulted in increased interest income that is spread on a level-yield basis over the remaining expected lives of the loan pools. The increases in expected cash flows also reduce the amount of expected reimbursements under the loss sharing agreements with the FDIC, which are recorded as indemnification assets. The impact of the adjustments on the Company's financial results for the current reporting period is shown below:

Three Months Ended Nine Months Ended
(In thousands) September 30, 2012 September 30, 2012
Impact on net interest income $ 2,915 $ 9,104
Non-interest income (2,729) (8,245)
Net impact to pre-tax income $ 186 $ 859

Because these adjustments will be recognized over the remaining lives of the loan pools and the remainder of the loss sharing agreements, respectively, they will impact future periods as well. The current estimate of the remaining accretable yield adjustment that will positively impact interest income is $18.0 million and the remaining adjustment to the indemnification assets that will reduce non-interest income is $15.8 million. Of the remaining adjustments, we expect to recognize $2.6 million of interest income and a $2.4 million reduction of non-interest income, for a net addition to pre-tax income of approximately $182,000 during the remainder of 2012. "While these items create some noise in the quarter, the bottom line is a positive impact of $186,000 for the third quarter and estimated $182,000 for rest of the year," said May. The accretable yield adjustments recorded in future periods will change as we continue to evaluate expected cash flows from the acquired loan pools. Net interest margin was 3.94% for the quarter ended September 30, 2012.

Non-Interest Income

Non-interest income for the third quarter was $11.8 million, compared to $13.7 million for the third quarter of 2011. "As previously discussed, there was a $2.7 million decrease due to reductions of the indemnification assets resulting from increased cash flows expected to be collected from the FDIC covered loan portfolios," reiterated May. "Excluding the indemnification asset adjustment and a non-recurring $1.1 million bargain purchase gain on the Truman Bank acquisition, non-interest income decreased $267,000, or 2.0%."

Non-Interest Expense

Non-interest expense for the third quarter of 2012 was $28.7 million, an increase of $1.1 million compared to the same period in 2011. "Included in the quarter were $815,000 in merger related expenses associated with the Truman Bank acquisition. Excluding the non-recurring item, non-interest expense for the quarter increased $271,000, or 1.0%. Obviously, we continue to have good expense control as a result of the implementation of our efficiency initiatives," added May.

Asset Quality

Beginning in 2010, the Company has acquired loans and foreclosed real estate ("OREO") through FDIC-assisted acquisitions. Through the loss share provisions of the purchase and assumption agreements, the FDIC agreed to reimburse the Company for 80% of the losses incurred on the disposition of covered loans and OREO. The acquired loans and OREO and any related FDIC loss share indemnification asset were presented in the Company's financial reports with a carrying value equal to the discounted net present value of expected future proceeds. At September 30, 2012, acquired loans covered by loss share were carried at $164 million, OREO covered by loss share was carried at $26 million and the FDIC loss share indemnification asset was carried at $60 million. Acquired loans and OREO not covered by loss share were carried at $73 million and $6.5 million, respectively. As a result of using the discounted net present value method of valuing these assets, and due to the significant protection against possible losses provided by the FDIC loss share indemnification, all acquired assets, with the exception of OREO not covered by loss share, are excluded from the computations of the asset quality ratios for the legacy loan portfolio, except for their inclusion in total assets.

The Company's allowance for loan losses was $28.1 million at September 30, 2012, or 1.73% of total loans and 238% of non-performing loans. Non-performing loans as a percent of total loans were 0.73% as of September 30, 2012, a decrease of 6 basis points from 0.79% as of June 30, 2012. "Because of the Truman Bank acquisition, we reflect an addition of $6.5 million to non-performing assets related to the Truman Bank non-covered OREO we acquired with a very conservative mark. Normalizing for the acquired OREO, our legacy non-performing assets decreased $1.7 million. Our legacy non-performing assets as a percent of total assets of 1.02% as of September 30, 2012 continues to compare favorably to the industry and our peer group," commented May. For the third quarter, the annualized net charge-off ratio, excluding credit cards, was 0.27%, and the annualized credit card charge-off ratio was 1.27%.

Capital

At September 30, 2012, stockholders' equity was $404 million, book value per share was $24.26 and tangible book value per share was $20.47. The Company's ratio of stockholders' equity to total assets was 11.8% and its ratio of tangible stockholders' equity to tangible assets was 10.2%, as of September 30, 2012.

"Our exceptional level of capital puts us in the 84th percentile of our peer group and allows us to actively pursue the right opportunities that meet our strategic plan regarding mergers and acquisitions," continued May. As of September 30, 2012, the Company's regulatory capital ratios remain significantly higher than regulatory "well capitalized" guidelines:

"Well Capitalized" SFNC
Tier 1 Leverage Ratio 5.00% 11.68%
Tier 1 Risk-Based Capital Ratio 6.00% 19.30%
Total Risk-Based Capital Ratio 10.00% 20.55%

Stock Repurchase Program

During 2012, the Company has repurchased approximately 608,000 shares at an average price of $24.16. Due to the substantial completion of the existing stock repurchase plan, on July 23, the Board of Directors approved a new stock repurchase program, authorizing the repurchase of up to 850,000 additional shares of stock, which is approximately 5% of the shares outstanding. The Company plans to continue to allocate its earnings, less dividends, to its stock repurchase program.

Missouri Bank Acquisition

Subsequent to quarter end, on October 19, the Company announced that its wholly-owned bank subsidiary, Simmons First National Bank, entered into a purchase and assumption agreement with loss share arrangements with the FDIC to purchase $201 million in assets and assume all of the deposits and substantially all other liabilities of Excel Bank of Sedalia, Missouri, at a discount of $21.0 million and no deposit premium. "Our fourth acquisition was strategic in that it complements the footprint we have been building in the Kansas and Missouri market," commented May on the recent acquisition. "We fully expect to pursue other opportunities to expand our footprint in that geographic region through additional FDIC and/or traditional acquisitions going forward."

Simmons First National Corporation

Simmons First National Corporation is an eight bank financial holding company with community banks in Pine Bluff, Lake Village, Jonesboro, Rogers, Searcy, Russellville, El Dorado and Hot Springs, Arkansas. The Company's eight banks conduct financial operations from 96 offices, of which 92 are financial centers, in 55 communities in Arkansas, Missouri and Kansas, including its recently acquired branches in Missouri. The Company's common stock trades on the NASDAQ Global Select Market under the symbol "SFNC".

The Simmons First National Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4819

Conference Call

Management will conduct a conference call to review this information beginning at 3:00 p.m. Central Time on Thursday, October 25, 2012. Interested persons can listen to this call by dialing 1-888-438-5535 (United States and Canada only) and asking for the Simmons First National Corporation conference call. A replay of the call will be available through 5:00 p.m. Central Time on October 31, 2012, by dialing 1-888-203-1112. The passcode for the replay is 4128323. In addition, the call will be available live or in recorded version on the Company's website at www.simmonsfirst.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 exclude the effects of the amortization of intangibles and include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant 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.

Forward Looking Statements

Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements of this type speak only as of the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors, including, but not limited to, economic conditions, credit quality, interest rates, loan demand and changes in the assumptions used in making the forward-looking statements, could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect Simmons First National Corporation's financial results is included in its Form 10-K filing with the Securities and Exchange Commission.

Simmons First National Corporation SFNC
Consolidated End of Period Balance Sheets
For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited) 2012 2012 2012 2011 2011
(in thousands)
ASSETS
Cash and non-interest bearing balances due from banks $ 40,356 $ 29,708 $ 34,314 $ 35,087 $ 33,408
Interest bearing balances due from banks 440,524 515,874 642,929 535,119 490,283
Federal funds sold 7,571 -- 750 -- --
Cash and cash equivalents 488,451 545,582 677,993 570,206 523,691
Investment securities - held-to-maturity 510,630 525,522 481,314 525,444 504,302
Investment securities - available-for-sale 205,051 166,966 176,466 172,212 140,579
Mortgage loans held for sale 23,980 15,495 24,351 22,976 21,037
Assets held in trading accounts 7,002 7,812 7,708 7,541 5,252
Loans:
Not covered by FDIC loss share agreements 1,623,401 1,614,736 1,543,653 1,579,769 1,631,541
Acquired, not covered by FDIC loss share agreements (net of discounts) 73,023 -- -- -- --
Covered by FDIC loss share agreements (net of discounts) 163,657 114,189 129,735 158,075 172,394
Allowance for loan losses (28,145) (28,397) (28,325) (30,108) (29,151)
Net loans 1,831,936 1,700,528 1,645,063 1,707,736 1,774,784
FDIC indemnification asset 59,547 35,038 39,978 47,683 51,223
Premises and equipment 85,969 85,171 85,784 86,486 86,972
Foreclosed assets not covered by FDIC loss share agreements 29,665 23,947 24,542 22,887 22,159
Foreclosed assets covered by FDIC loss share agreements 26,466 11,252 11,705 11,685 13,845
Interest receivable 15,253 12,975 13,319 15,126 16,195
Bank owned life insurance 51,681 51,326 50,934 50,579 50,175
Goodwill 60,605 60,605 60,605 60,605 60,605
Core deposit premiums 2,549 1,431 1,505 1,579 1,793
Other assets 16,195 13,494 18,786 17,384 20,736
Total assets $ 3,414,980 $ 3,257,144 $ 3,320,053 $ 3,320,129 $ 3,293,348
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts $ 543,380 $ 517,854 $ 521,202 $ 532,259 $ 531,025
Interest bearing transaction accounts and savings deposits 1,343,784 1,290,954 1,282,763 1,239,504 1,194,907
Time deposits less than $100,000 521,259 467,503 485,134 499,809 513,658
Time deposits greater than $100,000 386,872 352,973 365,478 378,825 395,224
Total deposits 2,795,295 2,629,284 2,654,577 2,650,397 2,634,814
Federal funds purchased and securities sold under agreements to repurchase 64,829 70,220 106,224 114,766 98,286
Other borrowings 88,852 90,866 90,312 90,170 92,052
Subordinated debentures 20,620 30,930 30,930 30,930 30,930
Accrued interest and other liabilities 41,136 28,431 28,698 25,955 29,607
Total liabilities 3,010,732 2,849,731 2,910,741 2,912,218 2,885,689
Stockholders' equity:
Common stock 167 170 172 172 173
Surplus 99,156 105,825 110,976 112,436 115,026
Undivided profits 304,343 300,917 297,776 294,864 291,830
Accumulated other comprehensive income
Unrealized appreciation on AFS securities 582 501 388 439 630
Total stockholders' equity 404,248 407,413 409,312 407,911 407,659
Total liabilities and stockholders' equity $ 3,414,980 $ 3,257,144 $ 3,320,053 $ 3,320,129 $ 3,293,348
Simmons First National Corporation SFNC
Consolidated Average Quarter-to-Date Balance Sheets
For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited) 2012 2012 2012 2011 2011
(in thousands)
ASSETS
Cash and non-interest bearing balances due from banks $ 36,603 $ 35,899 $ 37,469 $ 35,132 $ 35,202
Interest bearing balances due from banks 479,435 550,512 576,416 546,478 462,333
Federal funds sold 2,850 363 281 99 2,309
Cash and cash equivalents 518,888 586,774 614,166 581,709 499,844
Investment securities - held-to-maturity 496,102 508,293 496,002 501,812 460,951
Investment securities - available-for-sale 178,247 172,539 172,523 173,360 164,468
Mortgage loans held for sale 19,334 17,623 17,076 20,035 12,527
Assets held in trading accounts 7,780 7,831 6,845 7,375 7,428
Loans:
Not covered by FDIC loss share agreements 1,637,437 1,579,166 1,550,341 1,590,584 1,640,439
Acquired, not covered by FDIC loss share agreements (net of discounts) 12,700 -- -- -- --
Covered by FDIC loss share agreements (net of discounts) 117,809 120,695 141,563 168,506 180,884
Allowance for loan losses (29,228) (29,339) (30,896) (29,730) (28,299)
Net loans 1,738,718 1,670,522 1,661,008 1,729,360 1,793,024
FDIC indemnification asset 39,476 38,563 44,845 50,180 53,547
Premises and equipment 85,173 85,629 86,187 86,881 83,917
Foreclosed assets not covered by FDIC loss share agreements 24,945 24,322 23,279 22,702 22,292
Foreclosed assets covered by FDIC loss share agreements 14,521 12,079 13,048 12,409 13,467
Interest receivable 13,484 12,877 13,847 16,071 15,376
Bank owned life insurance 51,507 51,133 50,761 50,362 50,116
Goodwill 60,605 60,605 60,605 60,605 60,605
Core deposit premiums 1,614 1,467 1,541 1,685 1,917
Other assets 14,991 15,114 17,952 18,562 20,307
Total assets $ 3,265,385 $ 3,265,371 $ 3,279,685 $ 3,333,108 $ 3,259,786
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts $ 504,923 $ 502,884 $ 494,366 $ 535,663 $ 494,982
Interest bearing transaction accounts and savings deposits 1,291,141 1,282,616 1,252,972 1,228,495 1,201,174
Time deposits less than $100,000 477,275 477,588 492,354 508,847 518,855
Time deposits greater than $100,000 361,504 360,233 371,168 388,470 383,688
Total deposits 2,634,843 2,623,321 2,610,860 2,661,475 2,598,699
Federal funds purchased and securities sold under agreements to repurchase 72,381 82,738 108,841 107,750 93,067
Other borrowings 90,307 89,606 89,920 91,552 92,785
Subordinated debentures 30,594 30,930 30,930 30,930 30,930
Accrued interest and other liabilities 30,219 29,077 27,417 31,303 35,683
Total liabilities 2,858,344 2,855,672 2,867,968 2,923,010 2,851,164
Total stockholders' equity 407,041 409,699 411,717 410,098 408,622
Total liabilities and stockholders' equity $ 3,265,385 $ 3,265,371 $ 3,279,685 $ 3,333,108 $ 3,259,786
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) 2012 2012 2012 2011 2011
(in thousands, except per share data)
INTEREST INCOME
Loans not covered by loss share agreements $ 23,192 $ 22,358 $ 22,272 $ 23,370 $ 24,366
Loans covered by FDIC loss share agreements 5,041 4,994 5,973 4,513 3,917
Federal funds sold 2 1 -- 1 3
Investment securities 3,027 3,313 3,275 3,568 3,539
Mortgage loans held for sale 171 164 153 198 130
Assets held in trading accounts 12 13 12 7 8
Interest bearing balances due from banks 267 349 303 324 243
TOTAL INTEREST INCOME 31,712 31,192 31,988 31,981 32,206
INTEREST EXPENSE
Time deposits 1,863 2,004 2,269 2,577 2,738
Other deposits 658 676 696 779 856
Federal funds purchased and securities sold under agreements to repurchase 69 77 99 118 113
Other borrowings 792 799 815 826 842
Subordinated debentures 389 385 391 384 378
TOTAL INTEREST EXPENSE 3,771 3,941 4,270 4,684 4,927
NET INTEREST INCOME 27,941 27,251 27,718 27,297 27,279
Provision for loan losses 1,299 775 771 2,831 2,842
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 26,642 26,476 26,947 24,466 24,437
NON-INTEREST INCOME
Trust income 1,440 1,240 1,309 1,416 1,370
Service charges on deposit accounts 4,368 3,930 3,865 4,289 4,450
Other service charges and fees 684 738 792 699 695
Mortgage lending income 1,705 1,445 1,294 1,464 1,249
Investment banking income 560 442 699 294 203
Credit card fees 4,104 4,207 4,079 4,318 4,303
Bank owned life insurance income 355 368 355 403 261
Gain on FDIC-assisted transactions 1,120 -- -- -- --
Net gain (loss) on assets covered by FDIC loss share agreements (2,689) (2,153) (2,665) (826) 287
Other income 165 876 995 786 871
TOTAL NON-INTEREST INCOME 11,812 11,093 10,723 12,843 13,689
NON-INTEREST EXPENSE
Salaries and employee benefits 15,911 16,590 16,824 15,973 15,533
Occupancy expense, net 2,182 2,029 2,081 1,930 2,224
Furniture and equipment expense 1,835 1,608 1,604 1,721 1,763
Other real estate and foreclosure expense 280 194 207 146 215
Deposit insurance 444 457 571 295 211
Merger related costs 815 -- -- -- --
Other operating expenses 7,219 7,366 7,350 8,381 7,654
TOTAL NON-INTEREST EXPENSE 28,686 28,244 28,637 28,446 27,600
NET INCOME BEFORE INCOME TAXES 9,768 9,325 9,033 8,863 10,526
Provision for income taxes 3,008 2,789 2,678 2,558 3,269
NET INCOME $ 6,760 $ 6,536 $ 6,355 $ 6,305 $ 7,257
BASIC EARNINGS PER SHARE $ 0.41 $ 0.38 $ 0.37 $ 0.37 $ 0.42
DILUTED EARNINGS PER SHARE $ 0.41 $ 0.38 $ 0.37 $ 0.37 $ 0.42
Simmons First National Corporation SFNC
Consolidated Statements of Income - Year-to-Date
For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited) 2012 2012 2012 2011 2011
(in thousands, except per share data)
INTEREST INCOME
Loans not covered by loss share agreements $ 67,822 $ 44,630 $ 22,272 $ 95,713 $ 72,343
Loans covered by FDIC loss share agreements 16,009 10,967 5,973 17,118 12,605
Federal funds sold 4 1 -- 6 5
Investment securities 9,615 6,588 3,275 14,583 11,015
Mortgage loans held for sale 487 317 153 503 305
Assets held in trading accounts 37 25 12 33 26
Interest bearing balances due from banks 919 652 303 1,100 776
TOTAL INTEREST INCOME 94,893 63,180 31,988 129,056 97,075
INTEREST EXPENSE
Time deposits 6,136 4,273 2,269 11,314 8,737
Other deposits 2,029 1,372 696 3,611 2,832
Federal funds purchased and securities sold under agreements to repurchase 248 176 99 450 332
Other borrowings 2,406 1,613 815 3,512 2,686
Subordinated debentures 1,166 777 391 1,509 1,125
TOTAL INTEREST EXPENSE 11,985 8,211 4,270 20,396 15,712
NET INTEREST INCOME 82,908 54,969 27,718 108,660 81,363
Provision for loan losses 2,846 1,546 771 11,676 8,845
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 80,062 53,423 26,947 96,984 72,518
NON-INTEREST INCOME
Trust income 3,988 2,549 1,309 5,375 3,959
Service charges on deposit accounts 12,163 7,795 3,865 16,808 12,519
Other service charges and fees 2,211 1,530 792 2,980 2,281
Mortgage lending income 4,441 2,739 1,294 4,188 2,724
Investment banking income 1,700 1,141 699 1,478 1,184
Credit card fees 12,390 8,286 4,079 16,828 12,510
Bank owned life insurance income 1,078 723 355 1,481 1,078
Gain on FDIC-assisted transactions 1,120 -- -- -- --
Net gain (loss) on assets covered by FDIC loss share agreements (7,507) (4,818) (2,665) 154 980
Other income 2,037 1,871 995 4,173 3,387
TOTAL NON-INTEREST INCOME 33,621 21,816 10,723 53,465 40,622
NON-INTEREST EXPENSE
Salaries and employee benefits 49,323 33,414 16,824 65,058 49,085
Occupancy expense, net 6,291 4,110 2,081 8,443 6,513
Furniture and equipment expense 5,047 3,212 1,604 6,633 4,912
Other real estate and foreclosure expense 681 401 207 678 532
Deposit insurance 1,472 1,028 571 2,387 2,092
Merger related costs 815 -- -- 357 357
Other operating expenses 21,928 14,716 7,350 31,094 22,713
TOTAL NON-INTEREST EXPENSE 85,557 56,881 28,637 114,650 86,204
NET INCOME BEFORE INCOME TAXES 28,126 18,358 9,033 35,799 26,936
Provision for income taxes 8,475 5,467 2,678 10,425 7,867
NET INCOME $ 19,651 $ 12,891 $ 6,355 $ 25,374 $ 19,069
BASIC EARNINGS PER SHARE $ 1.16 $ 0.75 $ 0.37 $ 1.47 $ 1.10
DILUTED EARNINGS PER SHARE $ 1.16 $ 0.75 $ 0.37 $ 1.47 $ 1.10
Simmons First National Corporation SFNC
Consolidated Risk-Based Capital
For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited) 2012 2012 2012 2011 2011
(in thousands)
Tier 1 capital
Stockholders' equity $ 404,248 $ 407,413 $ 409,312 $ 407,911 $ 407,659
Trust preferred securities, net allowable 20,000 30,000 30,000 30,000 30,000
Disallowed intangible assets, net of deferred tax (48,053) (47,235) (47,607) (47,889) (48,403)
Unrealized gain on AFS securities (582) (501) (388) (439) (630)
Total Tier 1 capital 375,613 389,677 391,317 389,583 388,626
Tier 2 capital
Qualifying unrealized gain on AFS equity securities 14 15 14 9 6
Qualifying allowance for loan losses 24,395 22,910 22,096 22,682 23,337
Total Tier 2 capital 24,409 22,925 22,110 22,691 23,343
Total risk-based capital $ 400,022 $ 412,602 $ 413,427 $ 412,274 $ 411,969
Risk weighted assets $ 1,946,344 $ 1,825,808 $ 1,759,932 $ 1,805,585 $ 1,859,657
Adjusted average assets for leverage ratio $ 3,216,488 $ 3,217,291 $ 3,231,257 $ 3,284,379 $ 3,210,283
Ratios at end of quarter
Equity to assets 11.84% 12.51% 12.33% 12.29% 12.38%
Tangible common equity to tangible assets 10.18% 10.81% 10.66% 10.61% 10.69%
Tier 1 leverage ratio 11.68% 12.11% 12.11% 11.86% 12.11%
Tier 1 risk-based capital ratio 19.30% 21.34% 22.23% 21.58% 20.90%
Total risk-based capital ratio 20.55% 22.60% 23.49% 22.83% 22.15%
Simmons First National Corporation SFNC
Consolidated Loans and Investments
For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited) 2012 2012 2012 2011 2011
(in thousands)
Legacy Loan Portfolio - End of Period (1)
Consumer
Credit cards $ 175,760 $ 176,325 $ 175,013 $ 189,970 $ 182,886
Student loans 36,441 39,823 44,059 47,419 50,620
Other consumer 107,604 107,284 110,001 109,211 112,947
Total consumer 319,805 323,432 329,073 346,600 346,453
Real Estate
Construction 128,423 117,235 109,979 109,825 113,317
Single-family residential 355,976 355,978 349,009 355,094 353,917
Other commercial 546,224 550,418 537,807 536,372 550,410
Total real estate 1,030,623 1,023,631 996,795 1,001,291 1,017,644
Commercial
Commercial 138,719 140,868 144,772 141,422 138,724
Agricultural 130,727 122,245 69,598 85,728 123,873
Total commercial 269,446 263,113 214,370 227,150 262,597
Other 3,527 4,560 3,415 4,728 4,847
Total Loans $ 1,623,401 $ 1,614,736 $ 1,543,653 $ 1,579,769 $ 1,631,541
(1) Excludes all acquired loans, including those covered by FDIC loss share agreements.
Investment Securities - End of Period
Held-to-Maturity
U.S. Treasury $ -- $ -- $ 4,000 $ 4,000 $ 4,000
U.S. Government agencies 303,640 315,493 267,991 308,779 291,795
Mortgage-backed securities 51 56 59 62 67
State and political subdivisions 206,319 209,043 208,334 211,673 207,510
Other securities 620 930 930 930 930
Total held-to-maturity 510,630 525,522 481,314 525,444 504,302
Available-for-Sale
U.S. Government agencies 164,467 148,837 157,631 153,627 121,939
Mortgage-backed securities 24,333 2,493 2,528 2,557 2,624
FHLB stock 5,788 5,578 6,241 6,237 6,231
Other securities 10,463 10,058 10,066 9,791 9,785
Total available-for-sale 205,051 166,966 176,466 172,212 140,579
Total investment securities $ 715,681 $ 692,488 $ 657,780 $ 697,656 $ 644,881
Fair value - HTM investment securities $ 516,419 $ 531,499 $ 486,743 $ 532,206 $ 511,617
Investment Securities - QTD Average
Taxable securities $ 467,988 $ 471,826 $ 459,164 $ 466,369 $ 418,179
Tax exempt securities 206,361 209,006 209,361 208,803 207,240
Total investment securities - QTD average $ 674,349 $ 680,832 $ 668,525 $ 675,172 $ 625,419
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) 2012 2012 2012 2011 2011
(in thousands)
Allowance for Loan Losses
Balance, beginning of quarter $ 28,397 $ 28,325 $ 30,108 $ 29,151 $ 27,796
Loans charged off
Credit cards 806 829 997 1,262 1,140
Other consumer 358 252 226 530 450
Real estate 773 78 2,539 885 255
Commercial 86 165 129 226 345
Total loans charged off 2,023 1,324 3,891 2,903 2,190
Recoveries of loans previously charged off
Credit cards 242 212 210 244 261
Other consumer 107 135 156 100 219
Real estate 61 248 930 436 151
Commercial 62 26 41 249 72
Total recoveries 472 621 1,337 1,029 703
Net loans charged off 1,551 703 2,554 1,874 1,487
Provision for loan losses 1,299 775 771 2,831 2,842
Balance, end of quarter $ 28,145 $ 28,397 $ 28,325 $ 30,108 $ 29,151
Non-performing assets (1) (2)
Non-performing loans
Nonaccrual loans
Real estate $ 6,197 $ 6,851 $ 6,898 $ 10,315 $ 12,810
Commercial 894 676 942 1,253 1,177
Consumer 1,389 1,462 1,299 1,339 1,356
Total nonaccrual loans 8,480 8,989 9,139 12,907 15,343
Loans past due 90 days or more
Government guaranteed student loans 2,324 3,275 3,434 2,483 2,496
Other loans 1,001 509 606 785 777
Total loans past due 90 days or more 3,325 3,784 4,040 3,268 3,273
Total non-performing loans 11,805 12,773 13,179 16,175 18,616
Other non-performing assets
Foreclosed assets held for sale 23,126 23,947 24,542 22,887 22,159
Acquired foreclosed assets held for sale, not covered by FDIC loss share agreements 6,539 -- -- -- --
Other non-performing assets 60 -- 1 -- 191
Total other non-performing assets 29,725 23,947 24,543 22,887 22,350
Total non-performing assets $ 41,530 $ 36,720 $ 37,722 $ 39,062 $ 40,966
Performing TDRs (troubled debt restructurings) $ 10,995 $ 11,492 $ 11,531 $ 11,391 $ 10,393
Ratios (1) (2)
Allowance for loan losses to total loans 1.73% 1.76% 1.83% 1.91% 1.79%
Allowance for loan losses to non-performing loans 238% 222% 215% 186% 157%
Non-performing loans to total loans 0.73% 0.79% 0.85% 1.02% 1.14%
Non-performing assets (including performing TDRs) to total assets 1.54% 1.48% 1.48% 1.52% 1.56%
Non-performing assets to total assets 1.22% 1.13% 1.14% 1.18% 1.24%
Non-performing assets to total assets (excluding Gov't guaranteed student loans) 1.15% 1.03% 1.03% 1.10% 1.17%
Annualized net charge offs to total loans 0.38% 0.18% 0.66% 0.47% 0.36%
Annualized net credit card charge offs to total credit card loans 1.27% 1.42% 1.75% 2.20% 1.94%
Annualized net charge offs to total loans (excluding credit cards) 0.27% 0.02% 0.52% 0.24% 0.17%
Past due loans >30 days (excluding nonaccrual) 0.75% 0.68% 0.83% 0.82% 0.71%
Past due loans >30 days (excluding nonaccrual) (excluding Gov't guaranteed student loans) 0.48% 0.42% 0.47% 0.56% 0.46%
(1) Excludes all acquired loans, including those covered by FDIC loss share agreements, except for their inclusion in total assets.
(2) Excludes acquired foreclosed assets covered by FDIC loss share agreements, except for their inclusion in total assets.
Simmons First National Corporation SFNC
Consolidated - Net Interest Income Analysis
For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited) 2012 2012 2012 2011 2011
ASSETS
Earning Assets
Interest bearing balances due from banks 0.22% 0.25% 0.21% 0.24% 0.21%
Investment securities 2.46% 2.66% 2.69% 2.81% 3.02%
Mortgage loans held for sale 3.52% 3.74% 3.60% 3.92% 4.12%
Assets held in trading accounts 0.61% 0.67% 0.71% 0.38% 0.43%
Loans, including covered loans* 6.40% 6.47% 6.72% 6.29% 6.16%
Total interest earning assets 4.45% 4.41% 4.51% 4.38% 4.53%
LIABILITIES
Interest bearing liabilities
Interest bearing transaction and savings accounts 0.20% 0.21% 0.22% 0.25% 0.28%
Time deposits 0.88% 0.96% 1.06% 1.14% 1.20%
Total interest bearing deposits 0.47% 0.51% 0.56% 0.63% 0.68%
Federal funds purchased and securities sold under agreement to repurchase 0.38% 0.37% 0.37% 0.43% 0.48%
Other borrowings 3.49% 3.59% 3.65% 3.58% 3.60%
Subordinated debentures 5.06% 5.01% 5.08% 4.93% 4.85%
Total interest bearing liabilities 0.65% 0.68% 0.73% 0.79% 0.84%
NET INTEREST MARGIN/SPREAD
Net interest spread 3.80% 3.73% 3.78% 3.59% 3.69%
Net interest margin - quarter-to-date 3.94% 3.87% 3.93% 3.76% 3.86%
Net interest margin - year-to-date 3.91% 3.90% 3.93% 3.85% 3.87%
* Covered loans are loans covered by FDIC loss share agreements.
Simmons First National Corporation SFNC
Consolidated - Selected Financial Data
For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited) 2012 2012 2012 2011 2011
(in thousands, except share data)
QUARTER-TO-DATE
Diluted earnings per share $ 0.41 $ 0.38 $ 0.37 $ 0.37 $ 0.42
Core earnings (excludes nonrecurring items) (non-GAAP) 6,575 6,536 6,355 6,305 7,257
Diluted core earnings per share (non-GAAP) 0.40 0.38 0.37 0.37 0.42
Cash dividends declared per common share 0.20 0.20 0.20 0.19 0.19
Cash dividends declared - amount 3,334 3,395 3,444 3,271 3,296
Return on average stockholders' equity 6.61% 6.42% 6.21% 6.10% 7.05%
Return on tangible equity 7.85% 7.61% 7.36% 7.34% 8.47%
Return on average assets 0.82% 0.81% 0.78% 0.75% 0.88%
Net interest margin (FTE) 3.94% 3.87% 3.93% 3.76% 3.86%
FTE adjustment - investments 1,138 1,196 1,192 1,219 1,221
FTE adjustment - loans 11 12 11 12 12
Amortization of intangibles 74 74 74 214 222
Amortization of intangibles, net of taxes 45 45 45 130 135
Average shares outstanding 16,756,589 17,044,160 17,215,027 17,250,718 17,348,460
Average earning assets 2,938,994 2,957,022 2,961,047 3,008,249 2,931,339
Average interest bearing liabilities 2,323,202 2,323,711 2,346,185 2,356,044 2,320,499
YEAR-TO-DATE
Diluted earnings per share $ 1.16 $ 0.75 $ 0.37 $ 1.47 $ 1.10
Core earnings (excludes nonrecurring items) (non-GAAP) 19,466 12,891 6,355 24,988 18,683
Diluted core earnings per share (non-GAAP) 1.15 0.75 0.37 1.45 1.08
Cash dividends declared per common share 0.60 0.40 0.20 0.76 0.57
Cash dividends declared - amount 10,173 6,839 3,444 13,156 9,885
Return on average stockholders' equity 6.41% 6.31% 6.21% 6.25% 6.30%
Return on tangible equity 7.61% 7.49% 7.36% 7.54% 7.61%
Return on average assets 0.80% 0.79% 0.78% 0.77% 0.78%
Net interest margin (FTE) 3.91% 3.90% 3.93% 3.85% 3.87%
FTE adjustment - investments 3,526 2,388 1,192 4,920 3,701
FTE adjustment - loans 34 23 11 50 38
Amortization of intangibles 222 148 74 884 670
Amortization of intangibles, net of taxes 135 90 45 537 407
Average shares outstanding 17,004,351 17,129,593 17,215,027 17,309,488 17,329,293
Average diluted shares outstanding 17,007,623 17,134,232 17,223,085 17,317,850 17,338,676
Average earning assets 2,952,324 2,959,034 2,961,047 2,954,285 2,936,297
Average interest bearing liabilities 2,331,032 2,334,948 2,346,185 2,362,028 2,364,023
END OF PERIOD
Book value per share $ 24.26 $ 24.03 $ 23.82 $ 23.70 $ 23.52
Tangible book value per share 20.47 20.37 20.21 20.09 19.92
Shares outstanding 16,660,278 16,956,991 17,182,526 17,212,317 17,329,775
Full-time equivalent employees 1,073 1,074 1,077 1,083 1,070
Total number of ATM's 106 102 102 102 102
Total number of financial centers 88 84 84 84 84
Parent company only - investment in subsidiaries 387,944 386,441 384,713 381,236 379,331
Parent company only - intangible assets 133 133 133 133 133
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) 2012 2012 2012 2011 2011
(in thousands, except per share data)
QUARTER-TO-DATE
Net Income $ 6,760 $ 6,536 $ 6,355 $ 6,305 $ 7,257
Nonrecurring items
Gain on FDIC assisted transactions (1,120) -- -- -- --
Merger related costs 815 -- -- -- --
Tax effect 120 -- -- -- --
Net nonrecurring items (185) -- -- -- --
Core earnings (non-GAAP) $ 6,575 $ 6,536 $ 6,355 $ 6,305 $ 7,257
Diluted earnings per share $ 0.41 $ 0.38 $ 0.37 $ 0.37 $ 0.42
Nonrecurring items
Gain on FDIC assisted transactions (0.07) -- -- -- --
Merger related costs 0.05 -- -- -- --
Tax effect 0.01 -- -- -- --
Net nonrecurring items (0.01) -- -- -- --
Diluted core earnings per share (non-GAAP) $ 0.40 $ 0.38 $ 0.37 $ 0.37 $ 0.42
YEAR-TO-DATE
Net Income $ 19,651 $ 12,891 $ 6,355 $ 25,374 $ 19,069
Nonrecurring items
Gain on sale of MasterCard stock (1) -- -- -- (1,132) (1,132)
Gain on FDIC assisted transactions (1,120) -- -- -- --
Merger related costs 815 -- -- 357 357
Branch right sizing -- -- -- 141 141
Tax effect 120 -- -- 248 248
Net nonrecurring items (185) -- -- (386) (386)
Core earnings (non-GAAP) $ 19,466 $ 12,891 $ 6,355 $ 24,988 $ 18,683
Diluted earnings per share $ 1.16 $ 0.75 $ 0.37 $ 1.47 $ 1.10
Nonrecurring items
Gain on sale of MasterCard stock (1) -- -- -- (0.07) (0.07)
Gain on FDIC assisted transactions (0.07) -- -- -- --
Merger related costs 0.05 -- -- 0.02 0.02
Branch right sizing -- -- -- 0.01 0.01
Tax effect 0.01 -- -- 0.02 0.02
Net nonrecurring items (0.01) -- -- (0.02) (0.02)
Diluted core earnings per share (non-GAAP) $ 1.15 $ 0.75 $ 0.37 $ 1.45 $ 1.08
(1) Gain from liquidation of Class B shares received as part of MasterCard's 2006 IPO.
CONTACT: DAVID W. GARNER Senior Vice President and Investor Relations Officer Simmons First National Corporation (870) 541-1000

Source:Simmons First National Corporation