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Simmons First Announces First Quarter Earnings

PINE BLUFF, Ark., April 18, 2013 (GLOBE NEWSWIRE) -- Simmons First National Corporation (Nasdaq:SFNC) today announced core first quarter 2013 net income of $6.1 million and diluted core earnings per share of $0.37. Core earnings exclude $146,000 in after-tax merger related expenses associated with the Company's 2012 FDIC-assisted acquisitions. Including the merger related expenses, net income for the first quarter of 2013 was $5.9 million, or $0.36 diluted earnings per share.

"Considering interest rates continue at historical lows and due to the seasonality that we experience in the first quarter each year, we were pleased with our overall earnings performance. More so, we were pleased with the positive trends in our balance sheet, as reflected in our normalized organic loan growth of approximately 4%, which enabled us to produce a net interest margin of 4.01%. The organic loan growth, coupled with strong asset quality, bodes well for the balance of the year," commented J. Thomas May, Chairman and CEO.

Loans

Total loans, including those acquired, were $1.8 billion at March 31, 2013, an increase of $176.6 million, or 10.7%, compared to the same period in 2012. Loans acquired in FDIC-assisted acquisitions grew $130.5 million, net of discounts, and legacy loans (excluding acquired loans) grew $45.4 million, or 2.9%. "This was the second consecutive quarter of organic loan growth. While still not enough to call a trend, we believe it is very positive in that the growth is coming throughout our markets in Arkansas, Kansas and Missouri. Needless to say, the economy remains in a slow recovery, which makes this growth even more significant," added May.

Deposits

At March 31, 2013, total deposits were $2.9 billion, an increase of $238 million, or 9.0%, compared to the same period in 2012. Total non-time deposits totaled $2.0 billion, or 71% of total deposits.

Net Interest Income

The Company's net interest income for the first quarter of 2013 was $30.1 million, an increase of $2.4 million, or 8.5%, from the same period of 2012. Net interest margin was 4.01% for the quarter ended March 31, 2013. Included in interest income for both periods was 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
(In thousands) March 31
2013 2012
Impact on net interest income $ 2,947 $ 3,184
Non-interest income (2,828) (2,778)
Net impact to pre-tax income $ 119 $ 406

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 $22.1 million and the remaining adjustment to the indemnification assets that will reduce non-interest income is $19.1 million. Of the remaining adjustments, we expect to recognize $8.5 million of interest income and an $8.2 million reduction of non-interest income, for a net addition to pre-tax income of approximately $270,000, during the remainder of 2013. The accretable yield adjustments recorded in future periods will change as the Company continues to evaluate expected cash flows from the acquired loan pools.

Non-Interest Income

Non-interest income for the first quarter was $11.3 million, an increase of $590,000, or 5.5%, compared to the first quarter of 2012.

Non-Interest Expense

Non-interest expense for the first quarter of 2013 was $31.9 million, an increase of $3.3 million compared to the same period in 2012. "Included in the quarter were $240,000 in merger related expenses and $2.9 million in normal operating expenses attributable to our 2012 FDIC-assisted acquisitions. Normalized for these acquisition related items, non-interest expense for the quarter increased by only 0.4%. Obviously, we continue to have excellent 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 March 31, 2013, acquired loans covered by loss share were carried at $182 million, OREO covered by loss share was carried at $28 million and the FDIC loss share indemnification asset was carried at $71 million. Acquired loans and OREO not covered by loss share were carried at $79 million and $9 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 $27.7 million at March 31, 2013, or 1.75% of total loans and 237% of non-performing loans. Non-performing loans as a percent of total loans were 0.74% as of March 31, 2013, unchanged from December 31, 2012. "Included in our non-performing assets was $9.5 million, net of a credit mark, of non-covered OREO we acquired in our two recent FDIC-assisted transactions. Normalizing for the acquired OREO, our legacy non-performing assets decreased $0.6 million from the previous quarter. Our legacy non-performing assets as a percent of total assets of 0.94% as of March 31, 2013 continues to compare favorably to the industry and our peer group," commented May. For the first quarter, the annualized net charge-off ratio, excluding credit cards, was 0.11%, and the annualized credit card charge-off ratio was 1.53%.

Capital

At March 31, 2013, stockholders' equity was $406 million, book value per share was $24.62 and tangible book value per share was $20.73. The Company's ratio of stockholders' equity to total assets was 11.5% and its ratio of tangible common equity to tangible assets was 9.8%, as of March 31, 2013.

"Our exceptional level of capital puts us in the 80th 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 March 31, 2013, the Company's regulatory capital ratios remain significantly higher than regulatory "well capitalized" guidelines:

"Well Capitalized" SFNC
Tier 1 Leverage Ratio 5.00% 10.83%
Tier 1 Risk-Based Capital Ratio 6.00% 19.63%
Total Risk-Based Capital Ratio 10.00% 20.88%

Stock Repurchase Program

During the first quarter of 2013, the Company repurchased approximately 94,000 shares at an average price of $25.59. The Company plans to continue to allocate its earnings, less dividends, to its stock repurchase program.

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. The Company's common stock trades on the NASDAQ Global Select Market under the symbol "SFNC".

Conference Call

Management will conduct a conference call to review this information beginning at 3:00 p.m. Central Time on Thursday, April 18, 2013. Interested persons can listen to this call by dialing toll-free 1-888-428-9480 (United States and Canada only) and asking for the Simmons First National Corporation conference call. 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 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Unaudited) 2013 2012 2012 2012 2012
(in thousands)
ASSETS
Cash and non-interest bearing balances due from banks $ 40,006 $ 47,470 $ 40,356 $ 29,708 $ 34,314
Interest bearing balances due from banks 602,992 467,984 440,524 515,874 642,929
Federal funds sold -- 22,343 7,571 -- 750
Cash and cash equivalents 642,998 537,797 488,451 545,582 677,993
Investment securities - held-to-maturity 488,513 496,141 510,630 525,522 481,314
Investment securities - available-for-sale 192,165 191,342 205,051 166,966 176,466
Mortgage loans held for sale 19,100 25,367 23,980 15,495 24,351
Assets held in trading accounts 8,368 6,224 7,002 7,812 7,708
Loans:
Loans 1,589,077 1,628,513 1,623,401 1,614,736 1,543,653
Allowance for loan losses (27,735) (27,882) (28,145) (28,397) (28,325)
Loans acquired, not covered by FDIC loss share
(net of discount) 78,745 82,764 73,023 -- --
Loans acquired, covered by FDIC loss share (net of discount) 181,537 210,842 163,657 114,189 129,735
Net loans 1,821,624 1,894,237 1,831,936 1,700,528 1,645,063
FDIC indemnification asset 71,002 75,286 59,547 35,038 39,978
Premises and equipment 87,934 87,557 85,969 85,171 85,784
Foreclosed assets not covered by FDIC loss share 30,714 33,352 29,665 23,947 24,542
Foreclosed assets covered by FDIC loss share 28,003 27,620 26,466 11,252 11,705
Interest receivable 13,027 14,530 15,253 12,975 13,319
Bank owned life insurance 59,344 52,066 51,681 51,326 50,934
Goodwill 60,605 60,605 60,605 60,605 60,605
Core deposit premiums 3,624 3,760 2,549 1,431 1,505
Other assets 16,540 21,605 16,195 13,494 18,786
Total assets $ 3,543,561 $ 3,527,489 $ 3,414,980 $ 3,257,144 $ 3,320,053
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts $ 592,442 $ 576,655 $ 543,380 $ 517,854 $ 521,202
Interest bearing transaction accounts and savings deposits 1,456,005 1,421,137 1,343,784 1,290,954 1,282,763
Time deposits less than $100,000 482,688 505,773 521,259 467,503 485,134
Time deposits greater than $100,000 361,529 370,598 386,872 352,973 365,478
Total deposits 2,892,664 2,874,163 2,795,295 2,629,284 2,654,577
Federal funds purchased and securities sold
under agreements to repurchase 108,227 104,078 64,829 70,220 106,224
Other borrowings 81,646 89,441 88,852 90,866 90,312
Subordinated debentures 20,620 20,620 20,620 30,930 30,930
Accrued interest and other liabilities 33,950 33,125 41,136 28,431 28,698
Total liabilities 3,137,107 3,121,427 3,010,732 2,849,731 2,910,741
Stockholders' equity:
Common stock 165 165 167 170 172
Surplus 94,723 96,587 99,156 105,825 110,976
Undivided profits 311,521 309,053 304,343 300,917 297,776
Accumulated other comprehensive income
Unrealized appreciation on AFS securities 45 257 582 501 388
Total stockholders' equity 406,454 406,062 404,248 407,413 409,312
Total liabilities and stockholders' equity $ 3,543,561 $ 3,527,489 $ 3,414,980 $ 3,257,144 $ 3,320,053
Simmons First National Corporation SFNC
Consolidated Average Quarter-to-Date Balance Sheets
For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Unaudited) 2013 2012 2012 2012 2012
(in thousands)
ASSETS
Cash and non-interest bearing balances due from banks $ 42,334 $ 43,691 $ 36,603 $ 35,899 $ 37,469
Interest bearing balances due from banks 560,759 490,532 479,435 550,512 576,416
Federal funds sold 8,487 8,931 2,850 363 281
Cash and cash equivalents 611,580 543,154 518,888 586,774 614,166
Investment securities - held-to-maturity 497,152 511,203 496,102 508,293 496,002
Investment securities - available-for-sale 191,981 194,815 178,247 172,539 172,523
Mortgage loans held for sale 19,442 17,804 19,334 17,623 17,076
Assets held in trading accounts 8,525 7,701 7,780 7,831 6,845
Loans:
Loans 1,588,299 1,633,710 1,637,437 1,579,166 1,550,341
Allowance for loan losses (27,999) (28,660) (29,228) (29,339) (30,896)
Loans acquired, not covered by FDIC loss share
(net of discount) 80,755 82,764 12,700 -- --
Loans acquired, covered by FDIC loss share (net of discount) 196,190 218,135 117,809 120,695 141,563
Net loans 1,837,245 1,905,949 1,738,718 1,670,522 1,661,008
FDIC indemnification asset 74,205 66,994 39,476 38,563 44,845
Premises and equipment 87,571 87,784 85,173 85,629 86,187
Foreclosed assets not covered by FDIC loss share 32,102 34,883 24,945 24,322 23,279
Foreclosed assets covered by FDIC loss share 27,812 29,779 14,521 12,079 13,048
Interest receivable 13,370 15,154 13,484 12,877 13,847
Bank owned life insurance 52,706 51,864 51,507 51,133 50,761
Goodwill 60,605 60,605 60,605 60,605 60,605
Core deposit premiums 3,693 2,955 1,614 1,467 1,541
Other assets 20,827 3,574 14,991 15,114 17,952
Total assets $ 3,538,816 $ 3,534,218 $ 3,265,385 $ 3,265,371 $ 3,279,685
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts $ 567,588 $ 570,800 $ 504,923 $ 502,884 $ 494,366
Interest bearing transaction accounts and savings deposits 1,446,533 1,405,956 1,291,141 1,282,616 1,252,972
Time deposits less than $100,000 494,196 523,050 477,275 477,588 492,354
Time deposits greater than $100,000 364,496 380,843 361,504 360,233 371,168
Total deposits 2,872,813 2,880,649 2,634,843 2,623,321 2,610,860
Federal funds purchased and securities sold
under agreements to repurchase 118,131 101,815 72,381 82,738 108,841
Other borrowings 83,872 89,617 90,307 89,606 89,920
Subordinated debentures 20,620 20,620 30,594 30,930 30,930
Accrued interest and other liabilities 34,486 33,227 30,219 29,077 27,417
Total liabilities 3,129,922 3,125,928 2,858,344 2,855,672 2,867,968
Total stockholders' equity 408,894 408,290 407,041 409,699 411,717
Total liabilities and stockholders' equity $ 3,538,816 $ 3,534,218 $ 3,265,385 $ 3,265,371 $ 3,279,685
Simmons First National Corporation SFNC
Consolidated Statements of Income - Quarter-to-Date
For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Unaudited) 2013 2012 2012 2012 2012
(in thousands, except per share data)
INTEREST INCOME
Loans not covered by loss share $ 23,696 $ 23,912 $ 23,192 $ 22,358 $ 22,272
Loans covered by FDIC loss share 6,175 6,759 5,041 4,994 5,973
Federal funds sold 3 4 2 1 --
Investment securities 2,902 3,106 3,027 3,313 3,275
Mortgage loans held for sale 155 149 171 164 153
Assets held in trading accounts 11 11 12 13 12
Interest bearing balances due from banks 290 301 267 349 303
TOTAL INTEREST INCOME 33,232 34,242 31,712 31,192 31,988
INTEREST EXPENSE
Time deposits 1,588 1,807 1,863 2,004 2,269
Other deposits 611 652 658 676 696
Federal funds purchased and securities
sold under agreements to repurchase 65 65 69 77 99
Other borrowings 734 948 792 799 815
Subordinated debentures 159 163 389 385 391
TOTAL INTEREST EXPENSE 3,157 3,635 3,771 3,941 4,270
NET INTEREST INCOME 30,075 30,607 27,941 27,251 27,718
Provision for loan losses 919 1,295 1,299 775 771
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 29,156 29,312 26,642 26,476 26,947
NON-INTEREST INCOME
Trust income 1,444 1,484 1,440 1,240 1,309
Service charges on deposit accounts 4,241 4,645 4,368 3,930 3,865
Other service charges and fees 775 747 684 738 792
Mortgage lending income 1,216 1,553 1,705 1,445 1,294
Investment banking income 454 337 560 442 699
Credit card fees 4,039 4,655 4,104 4,207 4,079
Bank owned life insurance income 278 385 355 368 355
Gain on sale of securities, net -- 2 -- -- --
Gain on FDIC-assisted transactions -- 2,291 1,120 -- --
Net (loss) gain on assets covered by FDIC loss share agreements (2,142) (2,286) (2,689) (2,153) (2,665)
Other income 1,008 930 165 876 995
TOTAL NON-INTEREST INCOME 11,313 14,743 11,812 11,093 10,723
NON-INTEREST EXPENSE
Salaries and employee benefits 18,507 17,674 15,911 16,590 16,824
Occupancy expense, net 2,555 2,311 2,182 2,029 2,081
Furniture and equipment expense 1,723 1,835 1,835 1,608 1,604
Other real estate and foreclosure expense 331 311 280 194 207
Deposit insurance 775 614 444 457 571
Merger related costs 240 1,081 815 -- --
Other operating expenses 7,781 8,340 7,219 7,366 7,350
TOTAL NON-INTEREST EXPENSE 31,912 32,166 28,686 28,244 28,637
NET INCOME BEFORE INCOME TAXES 8,557 11,889 9,768 9,325 9,033
Provision for income taxes 2,620 3,856 3,008 2,789 2,678
NET INCOME $ 5,937 $ 8,033 $ 6,760 $ 6,536 $ 6,355
BASIC EARNINGS PER SHARE $ 0.36 $ 0.48 $ 0.41 $ 0.38 $ 0.37
DILUTED EARNINGS PER SHARE $ 0.36 $ 0.48 $ 0.41 $ 0.38 $ 0.37
Simmons First National Corporation SFNC
Consolidated Risk-Based Capital
For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Unaudited) 2013 2012 2012 2012 2012
(in thousands)
Tier 1 capital
Stockholders' equity $ 406,454 $ 406,062 $ 404,248 $ 407,413 $ 409,312
Trust preferred securities, net allowable 20,000 20,000 20,000 30,000 30,000
Disallowed intangible assets, net of deferred tax (48,529) (48,966) (48,053) (47,235) (47,607)
Unrealized gain on AFS securities (45) (257) (582) (501) (388)
Total Tier 1 capital 377,880 376,839 375,613 389,677 391,317
Tier 2 capital
Qualifying unrealized gain on AFS equity securities 28 19 14 15 14
Qualifying allowance for loan losses 24,129 24,743 24,395 22,910 22,096
Total Tier 2 capital 24,157 24,762 24,409 22,925 22,110
Total risk-based capital $ 402,037 $ 401,601 $ 400,022 $ 412,602 $ 413,427
Risk weighted assets $ 1,925,199 $ 1,974,800 $ 1,946,344 $ 1,825,808 $ 1,759,932
Adjusted average assets for leverage ratio $ 3,490,102 $ 3,484,504 $ 3,216,488 $ 3,217,291 $ 3,231,257
Ratios at end of quarter
Equity to assets 11.47% 11.51% 11.84% 12.51% 12.33%
Tangible common equity to tangible assets 9.84% 9.87% 10.18% 10.81% 10.66%
Tier 1 leverage ratio 10.83% 10.81% 11.68% 12.11% 12.11%
Tier 1 risk-based capital ratio 19.63% 19.08% 19.30% 21.34% 22.23%
Total risk-based capital ratio 20.88% 20.34% 20.55% 22.60% 23.49%
Simmons First National Corporation SFNC
Consolidated Loans and Investments
For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Unaudited) 2013 2012 2012 2012 2012
(in thousands)
Legacy Loan Portfolio - End of Period (1)
Consumer
Credit cards $ 171,599 $ 185,536 $ 175,760 $ 176,325 $ 175,013
Student loans 31,835 34,145 36,441 39,823 44,059
Other consumer 102,297 105,319 107,604 107,284 110,001
Total consumer 305,731 325,000 319,805 323,432 329,073
Real Estate
Construction 136,099 138,132 128,423 117,235 109,979
Single-family residential 355,479 356,907 355,976 355,978 349,009
Other commercial 569,686 568,166 546,224 550,418 537,807
Total real estate 1,061,264 1,063,205 1,030,623 1,023,631 996,795
Commercial
Commercial 150,427 141,336 138,719 140,868 144,772
Agricultural 68,028 93,805 130,727 122,245 69,598
Total commercial 218,455 235,141 269,446 263,113 214,370
Other 3,627 5,167 3,527 4,560 3,415
Total Loans $ 1,589,077 $ 1,628,513 $ 1,623,401 $ 1,614,736 $ 1,543,653
(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
U.S. Government agencies 288,480 288,098 303,640 315,493 267,991
Mortgage-backed securities 45 49 51 56 59
State and political subdivisions 199,368 207,374 206,319 209,043 208,334
Other securities 620 620 620 930 930
Total held-to-maturity 488,513 496,141 510,630 525,522 481,314
Available-for-Sale
U.S. Government agencies 159,846 152,481 164,467 148,837 157,631
Mortgage-backed securities 15,891 20,634 24,333 2,493 2,528
State and political subdivisions 1,417 2,988 -- -- --
FHLB stock 5,325 5,498 5,788 5,578 6,241
Other securities 9,686 9,741 10,463 10,058 10,066
Total available-for-sale 192,165 191,342 205,051 166,966 176,466
Total investment securities $ 680,678 $ 687,483 $ 715,681 $ 692,488 $ 657,780
Fair value - HTM investment securities $ 491,556 $ 500,578 $ 516,419 $ 531,499 $ 486,743
Investment Securities - QTD Average
Taxable securities $ 485,711 $ 495,917 $ 467,988 $ 471,826 $ 459,164
Tax exempt securities 203,422 210,101 206,361 209,006 209,361
Total investment securities - QTD average $ 689,133 $ 706,018 $ 674,349 $ 680,832 $ 668,525
Simmons First National Corporation SFNC
Consolidated Allowance and Asset Quality
For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Unaudited) 2013 2012 2012 2012 2012
(in thousands)
Allowance for Loan Losses
Balance, beginning of quarter $ 27,882 $ 28,145 $ 28,397 $ 28,325 $ 30,108
Loans charged off
Credit cards 909 884 806 829 997
Other consumer 374 362 358 252 226
Real estate 239 705 773 78 2,539
Commercial 96 163 86 165 129
Total loans charged off 1,618 2,114 2,023 1,324 3,891
Recoveries of loans previously charged off
Credit cards 236 194 242 212 210
Other consumer 195 177 107 135 156
Real estate 68 144 61 248 930
Commercial 53 41 62 26 41
Total recoveries 552 556 472 621 1,337
Net loans charged off 1,066 1,558 1,551 703 2,554
Provision for loan losses 919 1,295 1,299 775 771
Balance, end of quarter $ 27,735 $ 27,882 $ 28,145 $ 28,397 $ 28,325
Non-performing assets (1) (2)
Non-performing loans
Nonaccrual loans
Real estate $ 6,963 $ 7,135 $ 6,197 $ 6,851 $ 6,898
Commercial 602 618 894 676 942
Consumer 1,203 1,370 1,389 1,462 1,299
Total nonaccrual loans 8,768 9,123 8,480 8,989 9,139
Loans past due 90 days or more
Government guaranteed student loans 2,283 2,234 2,324 3,275 3,434
Other loans 661 681 1,001 509 606
Total loans past due 90 days or more 2,944 2,915 3,325 3,784 4,040
Total non-performing loans 11,712 12,038 11,805 12,773 13,179
Other non-performing assets
Foreclosed assets held for sale 21,253 21,556 23,126 23,947 24,542
Acquired foreclosed assets held for sale, not covered
by FDIC loss share agreements 9,461 11,796 6,539
Other non-performing assets 238 221 60 -- 1
Total other non-performing assets 30,952 33,573 29,725 23,947 24,543
Total non-performing assets $ 42,664 $ 45,611 $ 41,530 $ 36,720 $ 37,722
Performing TDRs (troubled debt restructurings) $ 10,745 $ 11,015 $ 10,995 $ 11,492 $ 11,531
Ratios (1) (2)
Allowance for loan losses to total loans 1.75% 1.71% 1.73% 1.76% 1.83%
Allowance for loan losses to non-performing loans 237% 232% 238% 222% 215%
Non-performing loans to total loans 0.74% 0.74% 0.73% 0.79% 0.85%
Non-performing assets (including performing TDRs)
to total assets 1.51% 1.61% 1.54% 1.48% 1.48%
Non-performing assets to total assets 1.20% 1.29% 1.22% 1.13% 1.14%
Non-performing assets to total assets
(excluding Gov't guaranteed student loans) 1.14% 1.23% 1.15% 1.03% 1.03%
Annualized net charge offs to total loans 0.27% 0.38% 0.38% 0.18% 0.66%
Annualized net credit card charge offs to
total credit card loans 1.53% 1.54% 1.27% 1.42% 1.75%
Annualized net charge offs to total loans
(excluding credit cards) 0.11% 0.24% 0.27% 0.02% 0.52%
Past due loans >30 days (excluding nonaccrual) 0.64% 0.63% 0.75% 0.68% 0.83%
Past due loans >30 days (excluding nonaccrual)
(excluding Gov't guaranteed student loans) 0.40% 0.44% 0.48% 0.42% 0.47%
(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 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Unaudited) 2013 2012 2012 2012 2012
ASSETS
Earning Assets
Interest bearing balances due from banks 0.21% 0.24% 0.22% 0.25% 0.21%
Investment securities 2.33% 2.39% 2.46% 2.66% 2.69%
Mortgage loans held for sale 3.23% 3.33% 3.52% 3.74% 3.60%
Assets held in trading accounts 0.52% 0.57% 0.61% 0.67% 0.71%
Loans, including covered loans* 6.79% 6.59% 6.40% 6.47% 6.72%
Total interest earning assets 4.41% 4.45% 4.45% 4.41% 4.51%
LIABILITIES
Interest bearing liabilities
Interest bearing transaction and
savings accounts 0.17% 0.18% 0.20% 0.21% 0.22%
Time deposits 0.75% 0.80% 0.88% 0.96% 1.06%
Total interest bearing deposits 0.39% 0.42% 0.47% 0.51% 0.56%
Federal funds purchased and securities
sold under agreement to repurchase 0.22% 0.25% 0.38% 0.37% 0.37%
Other borrowings 3.55% 4.21% 3.49% 3.59% 3.65%
Subordinated debentures 3.13% 3.14% 5.06% 5.01% 5.08%
Total interest bearing liabilities 0.51% 0.57% 0.65% 0.68% 0.73%
NET INTEREST MARGIN/SPREAD
Net interest spread 3.90% 3.88% 3.80% 3.73% 3.78%
Net interest margin - quarter-to-date 4.01% 3.99% 3.94% 3.87% 3.93%
Net interest margin - year-to-date 4.01% 3.93% 3.91% 3.90% 3.93%
* Covered loans are loans covered by FDIC loss share agreements.
Simmons First National Corporation SFNC
Consolidated - Selected Financial Data
For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Unaudited) 2013 2012 2012 2012 2012
($ in thousands, except share data)
QUARTER-TO-DATE
Diluted earnings per share $ 0.36 $ 0.48 $ 0.41 $ 0.38 $ 0.37
Core earnings (excludes nonrecurring items) (non-GAAP) 6,083 7,404 6,575 6,536 6,355
Diluted core earnings per share (non-GAAP) 0.37 0.44 0.40 0.38 0.37
Cash dividends declared per common share 0.21 0.20 0.20 0.20 0.20
Cash dividends declared - amount 3,469 3,323 3,334 3,395 3,444
Return on average stockholders' equity 5.89% 7.83% 6.61% 6.42% 6.21%
Return on tangible equity 7.09% 9.36% 7.85% 7.61% 7.36%
Return on average assets 0.68% 0.90% 0.82% 0.81% 0.78%
Net interest margin (FTE) 4.01% 3.99% 3.94% 3.87% 3.93%
FTE adjustment - investments 1,062 1,134 1,138 1,196 1,192
FTE adjustment - loans 11 11 11 12 11
Amortization of intangibles 137 126 74 74 74
Amortization of intangibles, net of taxes 83 77 45 45 45
Average shares outstanding 16,516,438 16,624,637 16,756,589 17,044,160 17,215,027
Average earning assets 3,151,590 3,165,595 2,938,994 2,957,022 2,961,047
Average interest bearing liabilities 2,527,848 2,521,901 2,323,202 2,323,711 2,346,185
YEAR-TO-DATE
Diluted earnings per share $ 0.36 $ 1.64 $ 1.16 $ 0.75 $ 0.37
Core earnings (excludes nonrecurring items) (non-GAAP) 6,083 26,870 19,466 12,891 6,355
Diluted core earnings per share (non-GAAP) 0.37 1.59 1.15 0.75 0.37
Cash dividends declared per common share 0.21 0.80 0.60 0.40 0.20
Cash dividends declared - amount 3,469 13,496 10,173 6,839 3,444
Return on average stockholders' equity 5.89% 6.77% 6.41% 6.31% 6.21%
Return on tangible equity 7.09% 8.05% 7.61% 7.49% 7.36%
Return on average assets 0.68% 0.83% 0.80% 0.79% 0.78%
Net interest margin (FTE) 4.01% 3.93% 3.91% 3.90% 3.93%
FTE adjustment - investments 1,062 4,660 3,526 2,388 1,192
FTE adjustment - loans 11 45 34 23 11
Amortization of intangibles 137 348 222 148 74
Amortization of intangibles, net of taxes 83 212 135 90 45
Average shares outstanding 16,516,438 16,908,904 17,004,351 17,129,593 17,215,027
Average diluted shares outstanding 16,520,398 16,911,363 17,007,623 17,134,232 17,223,085
Average earning assets 3,151,590 3,008,840 2,952,324 2,959,034 2,961,047
Average interest bearing liabilities 2,527,848 2,378,748 2,331,032 2,334,948 2,346,185
END OF PERIOD
Book value per share $ 24.62 $ 24.55 $ 24.26 $ 24.03 $ 23.82
Tangible book value per share 20.73 20.66 20.47 20.37 20.21
Shares outstanding 16,509,666 16,542,778 16,660,278 16,956,991 17,182,526
Full-time equivalent employees 1,112 1,068 1,073 1,074 1,077
Total number of ATM's 110 110 106 102 102
Total number of financial centers 92 92 88 84 84
Parent company only - investment in subsidiaries 370,728 368,847 387,944 386,441 384,713
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 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Unaudited) 2013 2012 2012 2012 2012
(in thousands, except per share data)
QUARTER-TO-DATE
Net Income $ 5,937 $ 8,033 $ 6,760 $ 6,536 $ 6,355
Nonrecurring items
Gain on FDIC assisted transactions -- (2,291) (1,120) -- --
Merger related costs 240 1,081 815 -- --
FHLB prepayment penalties -- 175 -- -- --
Tax effect (94) 406 120 -- --
Net nonrecurring items 146 (629) (185) -- --
Core earnings (non-GAAP) $ 6,083 $ 7,404 $ 6,575 $ 6,536 $ 6,355
Diluted earnings per share $ 0.36 $ 0.48 $ 0.41 $ 0.38 $ 0.37
Nonrecurring items
Gain on FDIC assisted transactions -- (0.14) (0.07) -- --
Merger related costs 0.01 0.07 0.05 -- --
FHLB prepayment penalties -- 0.01 -- -- --
Tax effect -- 0.02 0.01 -- --
Net nonrecurring items 0.01 (0.04) (0.01) -- --
Diluted core earnings per share (non-GAAP) $ 0.37 $ 0.44 $ 0.40 $ 0.38 $ 0.37
YEAR-TO-DATE
Net Income $ 5,937 $ 27,684 $ 19,651 $ 12,891 $ 6,355
Nonrecurring items
Gain on FDIC assisted transactions -- (3,411) (1,120) -- --
Merger related costs 240 1,896 815 -- --
FHLB prepayment penalties -- 175 -- -- --
Tax effect (94) 526 120 -- --
Net nonrecurring items 146 (814) (185) -- --
Core earnings (non-GAAP) $ 6,083 $ 26,870 $ 19,466 $ 12,891 $ 6,355
Diluted earnings per share $ 0.36 $ 1.64 $ 1.16 $ 0.75 $ 0.37
Nonrecurring items
Gain on FDIC assisted transactions -- (0.21) (0.07) -- --
Merger related costs 0.01 0.12 0.05 -- --
FHLB prepayment penalties -- 0.01 -- -- --
Tax effect -- 0.03 0.01 -- --
Net nonrecurring items 0.01 (0.05) (0.01) -- --
Diluted core earnings per share (non-GAAP) $ 0.37 $ 1.59 $ 1.15 $ 0.75 $ 0.37

CONTACT: DAVID W. GARNER Senior Vice President and Investor Relations Officer Simmons First National Corporation (870) 541-1000

Source:Simmons First National Corporation