EX-99.1 2 exh_991.htm EXHIBIT 99.1

Exhibit 99.1

 

 

FOR IMMEDIATE RELEASE: October 22, 2015

 

SIMMONS FIRST ANNOUNCES 139 PERCENT INCREASE IN CORE EARNINGS

 

Pine Bluff, AR – Simmons First National Corporation (NASDAQ-GS: SFNC) today announced record core earnings of $25.6 million for the third quarter of 2015, an increase of $14.9 million, or 139 percent, compared with the same quarter last year. Diluted core earnings per share were $0.85, an increase of $0.22, or 34.9 percent. Including the non-core items, net income was $21.6 million for the third quarter of 2015, an increase of $12.8 million, or 146 percent, compared with the same quarter last year. Diluted earnings per share were $0.72, an increase of $0.20, or 38.5 percent.

 

Year-to-date core earnings were $63.7 million, an increase of $36.4 million, or 133 percent, compared with the same period of 2014. Year-to-date diluted core earnings per share were $2.32, an increase of $0.67, or 40.6 percent. Year-to-date net income was $50.3 million, or $1.83 diluted earnings per share.

 

“We continue to make good progress with our efficiency initiatives, both in revenue enhancement and in expense control,” said George A. Makris, Jr., chairman and CEO. “Our core efficiency ratio was 57.5 percent for the quarter and our core ROA was 1.33 percent.”

 

Loans

 

Total loans, including those acquired, were $4.9 billion at Sept. 30, 2015, an increase of $2.1 billion, or 76.0 percent, compared with the same period in 2014. Legacy loans (all loans excluding acquired loans) grew $876 million, or 44.6 percent. Acquired loans increased by $1.2 billion, net of discounts.

 

Deposits

 

At Sept. 30, 2015, total deposits were $6.1 billion, an increase of $2.2 billion, or 55.8 percent, compared with the same period in 2014. Total non-time deposits were $4.7 billion, or 78 percent of total deposits.

 

Net Interest Income

 

The company’s net interest income for the third quarter of 2015 was $78.7 million, an increase of $36.9 million, or 88.4 percent, from the same period of 2014. This increase was driven by growth in the legacy loan portfolio and earning assets acquired through the Delta Trust, Community First and Liberty transactions. Net interest margin was 4.82 percent for the quarter ended Sept. 30, 2015, a 46 basis-point increase from the same quarter of 2014.

 

Included in interest income was the yield accretion recognized on acquired loans of $14.9 million and $8.5 million for the third quarter of 2015 and 2014, respectively. The company’s core net interest margin, excluding the accretion, was 3.93 percent for the third quarter of 2015, a 42 basis-point increase from the same quarter of 2014.

 

 

P.O. BOX 7009 501 MAIN STREET PINE BLUFF, ARKANSAS 71611-7009 (870) 541-1000 www.simmonsfirst.com

 

Non-Interest Income

 

Non-interest income for the third quarter was $23.5 million, an increase of $7.5 million compared with the third quarter of 2014. The increase in non-interest income was primarily due to additional trust income, service charge and fee income, mortgage lending and investment banking income resulting from the acquisitions, gains on sale of other real estate and gain on the sale of our Salina, Kan., banking operations. Losses on FDIC-covered assets increased $5.3 million primarily due to a $7.5 million charge for termination of the loss-share agreements, partially offset by a $2.1 million decrease in indemnification asset amortization.

 

Non-Interest Expense

 

Non-interest expense for the third quarter of 2015 was $67.9 million, an increase of $23.6 million compared with the same period in 2014. Included in the quarter were $1.2 million of merger-related and branch right-sizing expenses. The increase in non-interest expense was primarily due to incremental operating expenses of the acquired Delta Trust, Community First and Liberty franchises, somewhat offset by the company’s ongoing efficiency initiatives.

 

Asset Quality

 

During the third quarter, the company entered into an agreement with the FDIC to terminate all of its remaining loss-sharing agreements. As a result, all FDIC-acquired assets are now classified as non-covered. All acquired loans are recorded at their discounted net present value; therefore, they are excluded from the computations of the asset quality ratios for the legacy loan portfolio, except for their inclusion in total assets.

 

At Sept. 30, 2015, the allowance for loan losses for legacy loans was $30.4 million and $1.0 million for acquired loans. The loan discount credit mark was $70.4 million, for a total of $101.8 million of coverage. This equates to a total coverage ratio of 2.1 percent of gross loans. The ratio of credit mark and related allowance to acquired loans was 3.4 percent.

 

The company's allowance for loan losses on legacy loans at Sept. 30, 2015, was 1.07 percent of total loans and 181 percent of non-performing loans. In the legacy portfolio, non-performing loans as a percent of total loans were 0.59 percent. Through the third quarter of 2015, the year-to-date annualized net charge-off ratio, excluding credit cards, was 0.12 percent, and the year-to-date annualized credit card charge-off ratio was 1.30 percent.

 

Capital

 

At Sept. 30, 2015, common stockholders' equity was $1.0 billion, book value per share was $33.89 and tangible book value per share was $21.89. The company's ratio of stockholders' equity to total assets was 13.8 percent and its ratio of tangible common equity to tangible assets was 9.1 percent.

 

Simmons First National Corporation

 

Simmons First National Corporation is an Arkansas-based financial holding company with total assets of $7.6 billion and conducting financial operations throughout Arkansas, Kansas, Missouri and Tennessee. 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 p.m. CDT on Thursday, Oct. 22, 2015. 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 48225101. 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 news 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 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 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. 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.

 

####

 

FOR MORE INFORMATION CONTACT:

J. BURTON HICKS

Chief of Staff and Investor Relations Officer

Simmons First National Corporation

(870) 541-1000

 

 

 

 

 

 
Simmons First National Corporation           SFNC 
Consolidated End of Period Balance Sheets           
For the Quarters Ended  Sep 30  Jun 30  Mar 31  Dec 31  Sep 30
(Unaudited)  2015  2015  2015  2014  2014
($ in thousands)               
 ASSETS                         
 Cash and non-interest bearing balances due from banks  $106,678   $69,770   $83,424   $54,347   $73,554 
 Interest bearing balances due from banks   284,645    173,130    423,986    281,562    210,742 
 Federal funds sold   9,675    49,570    178,418    -    10,000 
 Cash and cash equivalents   400,998    292,470    685,828    335,909    294,296 
 Interest bearing balances due from banks   16,504    24,189    25,000    -    - 
 Investment securities - held-to-maturity   776,294    861,596    902,423    777,587    822,730 
 Investment securities - available-for-sale   703,347    747,701    707,383    305,283    317,473 
 Mortgage loans held for sale   15,556    48,094    25,513    21,265    22,003 
 Assets held in trading accounts   6,292    6,481    6,528    6,987    6,819 
 Loans:                         
 Legacy loans   2,839,278    2,611,229    2,115,380    2,053,721    1,963,378 
 Allowance for loan losses   (30,380)   (30,567)   (29,183)   (29,028)   (27,076)
 Loans acquired, not covered by FDIC loss share                         
 (net of discount and allowance)   2,013,816    2,108,306    2,418,440    575,980    676,056 
 Loans acquired, covered by FDIC loss share                         
 (net of discount and allowance)   -    93,121    102,468    106,933    118,158 
 Net loans   4,822,714    4,782,089    4,607,105    2,707,606    2,730,516 
 FDIC indemnification asset   -    13,020    15,965    22,663    25,694 
 Premises and equipment   190,182    191,335    198,106    122,966    115,639 
 Premises held for sale   923    6,587    -    6,126    15,856 
 Foreclosed assets not covered by FDIC loss share   48,073    42,666    50,723    44,856    50,770 
 Foreclosed assets covered by FDIC loss share   -    12,833    12,010    11,793    15,212 
 Interest receivable   26,873    24,129    24,719    16,774    18,006 
 Bank owned life insurance   118,922    118,073    117,296    77,592    75,357 
 Goodwill   314,282    314,282    314,282    108,095    108,095 
 Other intangible assets   44,904    46,605    47,960    22,526    22,988 
 Other assets   73,830    82,208    74,959    55,326    49,768 
 Total assets  $7,559,694   $7,614,358   $7,815,800   $4,643,354   $4,691,222 
                          
 LIABILITIES AND STOCKHOLDERS' EQUITY                         
 Deposits:                         
 Non-interest bearing transaction accounts  $1,212,724   $1,141,285   $1,123,966   $889,260   $884,064 
 Interest bearing transaction accounts and savings deposits   3,521,840    3,581,049    3,627,870    2,006,271    1,984,422 
 Time deposits less than $100,000   673,651    719,606    756,978    530,890    565,957 
 Time deposits greater than $100,000   681,585    728,082    765,894    434,297    474,472 
 Total deposits   6,089,800    6,170,022    6,274,708    3,860,718    3,908,915 
 Federal funds purchased and securities sold                         
 under agreements to repurchase   110,437    111,792    111,484    110,586    112,977 
 Other borrowings   173,426    171,321    284,386    114,682    123,396 
 Subordinated debentures   61,906    61,794    61,644    20,620    20,620 
 Accrued interest and other liabilities   78,684    74,324    69,841    42,429    41,309 
 Total liabilities   6,514,253    6,589,253    6,802,063    4,149,035    4,207,217 
                          
 Stockholders' equity:                         
 Preferred stock   30,852    30,852    30,852    -    - 
 Common stock   299    299    299    181    180 
 Surplus   642,400    640,895    639,493    156,568    155,592 
 Undivided profits   369,172    354,459    341,238    338,906    330,185 
 Accumulated other comprehensive income (loss):                         
 Unrealized (depreciation) appreciation on AFS securities   2,718    (1,400)   1,855    (1,336)   (1,952)
 Total stockholders' equity   1,045,441    1,025,105    1,013,737    494,319    484,005 
 Total liabilities and stockholders' equity  $7,559,694   $7,614,358   $7,815,800   $4,643,354   $4,691,222 

 

Page 1 

 
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)  2015  2015  2015  2014  2014
($ in thousands)               
 ASSETS                         
 Cash and non-interest bearing balances due from banks  $94,695   $69,137   $59,711   $54,485   $50,980 
 Interest bearing balances due from banks   206,467    308,756    371,195    299,054    288,258 
 Federal funds sold   19,086    75,922    56,846    6,486    6,794 
 Cash and cash equivalents   320,248    453,815    487,752    360,025    346,032 
 Interest bearing balances due from banks   20,251    26,817    8,611    -    -
 Investment securities - held-to-maturity   728,437    922,877    915,405    806,069    810,085 
 Investment securities - available-for-sale   838,596    732,949    370,102    318,879    300,927 
 Mortgage loans held for sale   26,379    37,656    14,655    17,241    24,942 
 Assets held in trading accounts   6,401    6,592    6,782    6,848    6,841 
 Loans:                         
 Legacy loans   2,725,254    2,363,305    2,084,551    2,008,550    1,917,155 
 Allowance for loan losses   (31,709)   (31,275)   (30,072)   (28,474)   (27,470)
 Loans acquired, not covered by FDIC loss share                         
 (net of discount and allowance)   2,020,236    2,228,841    1,197,601    620,505    481,658 
 Loans acquired, covered by FDIC loss share                         
 (net of discount and allowance)   89,578    97,795    104,701    111,618    119,372 
 Net loans   4,803,359    4,658,666    3,356,781    2,712,199    2,490,715 
 FDIC indemnification asset   10,838    15,448    21,515    24,457    28,311 
 Premises and equipment   191,107    200,875    150,564    117,018    115,577 
 Premises held for sale   5,775    6,131    6,126    6,794    12,521 
 Foreclosed assets not covered by FDIC loss share   40,273    42,994    44,059    48,745    51,097 
 Foreclosed assets covered by FDIC loss share   12,345    12,313    11,902    13,964    16,073 
 Interest receivable   24,403    23,260    19,181    17,738    15,743 
 Bank owned life insurance   118,489    117,662    91,760    76,578    63,798 
 Goodwill   314,282    314,060    175,901    109,837    88,590 
 Other intangible assets   45,712    47,302    31,102    17,748    15,321 
 Other assets   100,872    76,275    58,536    50,566    52,234 
 Total assets  $7,607,767   $7,695,692   $5,770,734   $4,704,706   $4,438,807 
                          
 LIABILITIES AND STOCKHOLDERS' EQUITY                         
 Deposits:                         
 Non-interest bearing transaction accounts  $1,121,078   $1,088,474   $946,979   $895,470   $828,340 
 Interest bearing transaction accounts and savings deposits   3,600,930    3,621,060    2,601,046    2,010,827    1,869,095 
 Time deposits less than $100,000   694,872    739,748    573,867    545,986    555,837 
 Time deposits greater than $100,000   703,056    748,460    580,625    458,117    457,489 
 Total deposits   6,119,936    6,197,742    4,702,517    3,910,400    3,710,761 
 Federal funds purchased and securities sold                         
 under agreements to repurchase   109,311    116,258    121,568    117,661    108,357 
 Other borrowings   197,832    179,080    183,953    121,691    117,664 
 Subordinated debentures   61,851    62,981    35,686    20,620    20,620 
 Accrued interest and other liabilities   74,696    70,312    43,825    38,869    38,950 
 Total liabilities   6,563,626    6,626,373    5,087,549    4,209,241    3,996,352 
                          
 Stockholders' equity:                         
 Preferred stock   30,852    30,885    10,970    -    - 
 Common stock   299    299    223    180    169 
 Surplus   641,738    640,172    328,830    155,672    111,551 
 Undivided profits   371,291    396,609    343,973    341,042    332,184 
 Accumulated other comprehensive income (loss):                         
 Unrealized appreciation (depreciation) on AFS securities   (39)   1,354    (811)   (1,429)   (1,449)
 Total stockholders' equity   1,044,141    1,069,319    683,185    495,465    442,455 
 Total liabilities and stockholders' equity  $7,607,767   $7,695,692   $5,770,734   $4,704,706   $4,438,807 

 

Page 2 

 
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)  2015  2015  2015  2014  2014
($ in thousands, except per share data)               
 INTEREST INCOME                         
    Loans  $76,432   $70,438   $50,986   $45,248   $40,082 
    Federal funds sold   15    73    29    13    12 
    Investment securities   8,335    8,050    5,879    5,325    4,717 
    Mortgage loans held for sale   291    375    148    188    269 
    Assets held in trading accounts   4    4    3    4    3 
    Interest bearing balances due from banks   122    229    210    167    132 
            TOTAL INTEREST INCOME   85,199    79,169    57,255    50,945    45,215 
 INTEREST EXPENSE                         
    Time deposits   1,936    2,064    1,596    1,470    1,461 
    Other deposits   2,222    2,131    1,348    872    771 
    Federal funds purchased and securities                         
      sold under agreements to repurchase   55    57    64    61    55 
    Other borrowings   1,812    1,151    1,051    992    996 
    Subordinated debentures   498    559    234    160    160 
            TOTAL INTEREST EXPENSE   6,523    5,962    4,293    3,555    3,443 
 NET INTEREST INCOME   78,676    73,207    52,962    47,390    41,772 
    Provision for loan losses   1,615    3,006    1,171    3,607    1,128 
 NET INTEREST INCOME AFTER PROVISION                         
    FOR LOAN LOSSES   77,061    70,201    51,791    43,783    40,644 
 NON-INTEREST INCOME                         
    Trust income   2,215    2,070    2,251    2,182    1,838 
    Service charges on deposit accounts   8,488    8,031    6,363    6,552    6,238 
    Other service charges and fees   3,089    3,130    1,827    1,083    808 
    Mortgage lending income   3,446    3,449    2,262    1,457    1,812 
    Investment banking income   663    593    894    451    284 
    Debit and credit card fees   6,879    6,486    5,648    5,653    5,769 
    Bank owned life insurance income   748    746    572    727    411 
    Gain on sale of securities, net   40    -    (38)   (12)   (18)
    Net (loss) gain on assets covered by FDIC loss-share agreements   (9,085)   (3,056)   (2,671)   (3,013)   (3,744)
    Other income   7,006    3,863    1,390    6,424    2,637 
            TOTAL NON-INTEREST INCOME   23,489    25,312    18,498    21,504    16,035 
 NON-INTEREST EXPENSE                         
    Salaries and employee benefits   37,417    35,475    26,771    25,126    20,892 
    Occupancy expense, net   4,812    5,051    3,557    2,494    3,204 
    Furniture and equipment expense   4,202    3,241    3,268    2,732    2,363 
    Other real estate and foreclosure expense   2,297    1,017    381    1,395    1,864 
    Deposit insurance   1,013    1,096    870    724    877 
    Merger-related costs   857    1,247    10,419    1,214    3,628 
    Other operating expenses   17,314    18,041    12,106    13,294    11,526 
            TOTAL NON-INTEREST EXPENSE   67,912    65,168    57,372    46,979    44,354 
 NET INCOME BEFORE INCOME TAXES   32,638    30,345    12,917    18,308    12,325 
    Provision for income taxes   10,963    10,250    4,182    5,669    3,537 
 NET INCOME   21,675    20,095    8,735    12,639    8,788 
    Preferred stock dividends   77    77    26    -    - 
 NET INCOME AVAILABLE TO COMMON SHAREHOLDERS  $21,598   $20,018   $8,709   $12,639   $8,788 
 BASIC EARNINGS PER SHARE  $0.72   $0.67   $0.39   $0.72   $0.52 
 DILUTED EARNINGS PER SHARE  $0.72   $0.67   $0.39   $0.72   $0.52 

 

Page 3 

 
Simmons First National Corporation         SFNC 
Consolidated Risk-Based Capital           
For the Quarters Ended  Sep 30  Jun 30  Mar 31  Dec 31  Sep 30
(Unaudited)  2015  2015  2015  2014  2014
($ in thousands)               
Tier 1 capital                         
    Stockholders' equity  $1,045,441   $1,025,105   $1,013,737   $494,319   $482,642 
    Trust preferred securities, net allowable   61,906    61,794    61,410    20,000    20,000 
    Disallowed intangible assets, net of deferred tax   (314,735)   (342,590)   (344,140)   (112,545)   (109,698)
    Unrealized (gain) loss on AFS securities   (2,718)   1,400    (1,855)   1,336    1,952 
    Other   -    (10,297)   (4,789)   -    - 
       Total Tier 1 capital   789,894    735,412    724,363    403,110    394,896 
                          
Tier 2 capital                         
    Qualifying unrealized gain on AFS equity securities   -    -    -    2    - 
    Qualifying allowance for loan losses and                         
       reserve for unfunded commitments   34,097    34,284    32,600    32,073    29,167 
       Total Tier 2 capital   34,097    34,284    32,600    32,075    29,167 
       Total risk-based capital  $823,991   $769,696   $756,963   $435,185   $424,063 
                          
Common equity                         
    Tier 1 capital  $789,894   $735,412   $724,363    -    - 
    Less: Non-cumulative preferred stock   (30,852)   (30,852)   (30,852)   -    - 
    Less: Trust preferred securities   (61,906)   (61,794)   (61,410)   -    - 
       Total common equity  $697,136   $642,766   $632,101    -    - 
                          
 Risk weighted assets  $4,986,641   $4,714,852   $4,659,065   $3,002,270   $3,063,801 
                          
 Adjusted average assets for leverage ratio  $7,293,113   $7,350,900   $5,428,706   $4,593,924   $4,331,488 
                          
Ratios at end of quarter                         
    Equity to assets   13.83%   13.46%   12.97%   10.65%   10.29%
    Tangible common equity to tangible assets   9.10%   8.73%   8.32%   8.06%   7.78%
    Common equity Tier 1 ratio (CET1)   13.98%   13.63%   13.57%   -    - 
    Tier 1 leverage ratio   10.83%   10.00%   13.34%   8.77%   9.12%
    Tier 1 risk-based capital ratio   15.84%   15.60%   15.55%   13.43%   12.89%
    Total risk-based capital ratio   16.52%   16.32%   16.25%   14.50%   13.84%

 

 

Page 4 

 
Simmons First National Corporation         SFNC 
Consolidated Loans and Investments           
For the Quarters Ended  Sep 30  Jun 30  Mar 31  Dec 31  Sep 30
(Unaudited)  2015  2015  2015  2014  2014
($ in thousands)               
Legacy Loan Portfolio - End of Period (1)                         
 Consumer                         
    Credit cards  $171,701   $174,074   $171,413   $185,380   $175,822 
    Student loans   -    -    -    -    - 
    Other consumer   182,472    160,828    107,486    103,402    105,508 
 Total consumer   354,173    334,902    278,899    288,782    281,330 
 Real Estate                         
    Construction   253,761    199,707    178,929    181,968    163,364 
    Single-family residential   623,089    662,954    507,351    455,563    436,925 
    Other commercial   1,037,559    878,109    716,021    714,797    681,848 
 Total real estate   1,914,409    1,740,770    1,402,301    1,352,328    1,282,137 
 Commercial                         
    Commercial   394,422    388,869    324,815    291,820    249,186 
    Agricultural   170,257    141,502    105,228    115,658    145,157 
 Total commercial   564,679    530,371    430,043    407,478    394,343 
 Other   6,017    5,186    4,137    5,133    5,568 
 Total Loans  $2,839,278   $2,611,229   $2,115,380   $2,053,721   $1,963,378 
                          
 (1) Excludes all acquired loans, including those covered by FDIC loss-share agreements.
                          
Investment Securities - End of Period                         
 Held-to-Maturity                         
    U.S. Government agencies  $285,071   $361,744   $390,625   $418,914   $455,827 
    Mortgage-backed securities   25,913    27,146    28,535    29,743    30,954 
    State and political subdivisions   464,245    471,631    482,316    328,310    335,329 
    Other securities   1,065    1,075    947    620    620 
       Total held-to-maturity   776,294    861,596    902,423    777,587    822,730 
 Available-for-Sale                         
    U.S. Treasury  $4,008   $4,005   $4,008   $3,992   $3,991 
    U.S. Government agencies   153,576    236,003    346,315    272,816    280,321 
    Mortgage-backed securities   502,344    464,857    312,011    1,572    32 
    State and political subdivisions   10,976    10,971    13,452    6,540    8,903 
    FHLB stock   14,275    13,619    15,256    5,126    5,623 
    Other securities   18,168    18,246    16,341    15,237    18,603 
       Total available-for-sale   703,347    747,701    707,383    305,283    317,473 
       Total investment securities  $1,479,641   $1,609,297   $1,609,806   $1,082,870   $1,140,203 
       Fair value - HTM investment securities  $785,030   $863,349   $913,037   $780,534   $823,446 
                          
Investment Securities - QTD Average                         
 Taxable securities  $1,088,597   $1,163,708   $893,946   $782,062   $781,685 
 Tax exempt securities   478,436    492,118    391,561    342,886    329,327 
    Total investment securities - QTD average  $1,567,033   $1,655,826   $1,285,507   $1,124,948   $1,111,012 

 

 

Page 5 

 
Simmons First National Corporation           SFNC 
Consolidated Loans and Credit Coverage           
For the Quarters Ended  Sep 30  Jun 30  Mar 31  Dec 31  Sep 30
(Unaudited)  2015  2015  2015  2014  2014
($ in thousands)               
 LOANS                         
 Legacy loans  $2,839,278   $2,611,229   $2,115,380   $2,053,721   $1,963,378 
 Allowance for loan losses (legacy loans)   (30,380)   (30,567)   (29,183)   (29,028)   (27,076)
 Legacy loans (net of allowance)   2,808,898    2,580,662    2,086,197    2,024,693    1,936,302 
 Loans acquired, not covered by FDIC loss share   2,085,211    2,171,388    2,491,316    621,020    733,914 
 Credit discount   (70,441)   (63,082)   (72,876)   (45,040)   (57,858)
 Allowance for loan losses (loans acquired, not covered)   (954)   -    -    -    - 
 Loans acquired, not covered (net of discount and allowance)   2,013,816    2,108,306    2,418,440    575,980    676,056 
 Loans acquired, covered by FDIC loss share   -    114,296    126,629    140,038    154,183 
 Credit discount   -    (20,221)   (23,207)   (32,151)   (36,025)
 Allowance for loan losses (acquired covered loans)   -    (954)   (954)   (954)   - 
 Loans acquired, covered (net of discount and allowance)   -    93,121    102,468    106,933    118,158 
 Net loans  $4,822,714   $4,782,089   $4,607,105   $2,707,606   $2,730,516 
                          
                          
Loan Coverage Ratios                         
 Allowance for loan losses to legacy loans   1.07%   1.17%   1.38%   1.41%   1.38%
                          
 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)   3.42%   3.69%   3.71%   10.27%   10.57%
                          
 Total allowance and credit coverage (non-GAAP)   2.07%   2.34%   2.67%   3.81%   4.24%

 

 

Page 6 

 
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)  2015  2015  2015  2014  2014
($ in thousands)               
Allowance for Loan Losses (Legacy Loans)                         
 Balance, beginning of quarter  $30,567   $29,183   $29,028   $27,076   $27,530 
 Loans charged off                         
    Credit cards   763    802    785    859    788 
    Other consumer   597    366    220    781    648 
    Real estate   109    333    293    200    534 
    Commercial   516    -    245    310    474 
       Total loans charged off   1,985    1,501    1,543    2,150    2,444 
                          
 Recoveries of loans previously charged off                         
    Credit cards   213    241    213    220    190 
    Other consumer   78    187    133    94    122 
    Real estate   25    46    12    56    379 
    Commercial   -    9    169    125    171 
       Total recoveries   316    483    527    495    862 
    Net loans charged off   1,669    1,018    1,016    1,655    1,582 
 Provision for loan losses   1,482    2,402    1,171    3,607    1,128 
 Balance, end of quarter  $30,380   $30,567   $29,183   $29,028   $27,076 
                          
Non-performing assets (1) (2)                         
 Non-performing loans                         
    Nonaccrual loans   15,305    15,565    14,511    12,038    11,212 
    Loans past due 90 days or more   1,506    1,375    498    961    713 
       Total non-performing loans   16,811    16,940    15,009    12,999    11,925 
 Other non-performing assets                         
    Foreclosed assets held for sale, not covered   48,073    42,666    50,723    44,856    50,770 
    Other non-performing assets   172    242    215    97    72 
       Total other non-performing assets   48,245    42,908    50,938    44,953    50,842 
          Total non-performing assets  $65,056   $59,848   $65,947   $57,952   $62,767 
 Performing TDRs (troubled debt restructurings)  $1,955   $1,959   $2,227   $2,233   $2,234 
                          
Ratios (1) (2)                         
 Allowance for loan losses to total loans   1.07%   1.17%   1.38%   1.41%   1.38%
 Allowance for loan losses to non-performing loans   181%   180%   194%   223%   227%
 Non-performing loans to total loans   0.59%   0.65%   0.71%   0.63%   0.61%
 Non-performing assets (including performing TDRs)                         
   to total assets   0.89%   0.81%   0.87%   1.30%   1.39%
 Non-performing assets to total assets   0.86%   0.79%   0.84%   1.25%   1.34%
 Annualized net charge offs to total loans   0.24%   0.17%   0.20%   0.33%   0.33%
 Annualized net credit card charge offs to                         
   total credit card loans   1.26%   1.31%   1.32%   1.41%   1.31%
 Annualized net charge offs to total loans                         
   (excluding credit cards)   0.17%   0.08%   0.09%   0.22%   0.22%
           
 (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. 

 

Page 7 

 

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)  2015  2015  2015  2014  2014
                
ASSETS                         
                          
Earning Assets                         
   Interest bearing balances due from banks   0.23%   0.30%   0.23%   0.22%   0.18%
   Investment securities   2.65%   2.50%   2.44%   2.49%   2.29%
   Mortgage loans held for sale   4.38%   3.99%   4.10%   4.33%   4.28%
   Assets held in trading accounts   0.25%   0.24%   0.18%   0.23%   0.17%
   Loans, including acquired loans   6.27%   6.03%   6.11%   6.55%   6.32%
      Total interest earning assets   5.20%   4.82%   4.68%   4.98%   4.71%
                          
LIABILITIES                         
                          
Interest bearing liabilities                         
   Interest bearing transaction and                         
     savings accounts   0.24%   0.24%   0.21%   0.17%   0.16%
   Time deposits   0.55%   0.56%   0.56%   0.58%   0.57%
      Total interest bearing deposits   0.33%   0.33%   0.32%   0.31%   0.31%
   Federal funds purchased and securities                         
     sold under agreement to repurchase   0.20%   0.20%   0.21%   0.21%   0.20%
   Other borrowings   3.63%   2.58%   2.32%   3.23%   3.36%
   Subordinated debentures   3.19%   3.56%   2.66%   3.08%   3.08%
      Total interest bearing liabilities   0.48%   0.44%   0.42%   0.43%   0.44%
                          
NET INTEREST MARGIN/SPREAD                         
                          
   Net interest spread   4.72%   4.38%   4.26%   4.55%   4.27%
   Net interest margin - quarter-to-date   4.82%   4.47%   4.34%   4.65%   4.36%
   Net interest margin - year-to-date   4.58%   4.42%   4.34%   4.47%   4.41%

 

 

Page 8 

 
Simmons First National Corporation         SFNC 
Consolidated - Selected Financial Data           
For the Quarters Ended  Sep 30  Jun 30  Mar 31  Dec 31  Sep 30
(Unaudited)  2015  2015  2015  2014  2014
($ in thousands, except share data)               
QUARTER-TO-DATE                         
Financial Highlights - Core (non-GAAP)                         
 Core earnings (excludes nonrecurring items) (1)  $25,565   $22,444   $15,700   $11,387   $10,684 
 Diluted core earnings per share (1)   0.85    0.75    0.70    0.64    0.63 
 Core net interest margin (FTE) (2)   3.93%   3.87%   3.55%   3.63%   3.51%
 Core efficiency ratio (1)   57.54%   58.51%   62.24%   64.32%   64.89%
 Core return on average assets (1)   1.33%   1.17%   1.10%   0.96%   0.95%
 Core return on average common equity (1)   10.01%   8.67%   9.47%   9.12%   9.58%
 Core return on tangible common equity (1)   15.99%   13.80%   14.16%   12.65%   12.84%
Financial Highlights - GAAP                         
 Net Income  $21,598   $20,018   $8,709   $12,639   $8,788 
 Diluted earnings per share   0.72    0.67    0.39    0.72    0.52 
 Return on average assets   1.13%   1.04%   0.61%   1.07%   0.79%
 Return on average common equity   8.46%   7.73%   5.25%   10.12%   7.88%
 Return on tangible common equity   13.58%   12.36%   8.07%   14.00%   10.62%
 Net interest margin (FTE)   4.82%   4.47%   4.34%   4.65%   4.36%
 FTE adjustment   2,172    2,303    1,857    1,751    1,702 
 Amortization of intangibles   1,265    1,388    899    565    454 
 Amortization of intangibles, net of taxes   769    844    546    343    276 
 Average earning assets   6,660,434    6,774,693    5,121,838    4,195,250    3,956,032 
 Average interest bearing liabilities   5,367,852    5,467,587    4,096,745    3,274,902    3,129,062 
 Average diluted shares outstanding   30,046,062    29,987,471    22,350,272    18,075,537    16,916,764 
 Cash dividends declared per common share   0.23    0.23    0.23    0.22    0.22 
YEAR-TO-DATE                         
Financial Highlights - Core (non-GAAP)                         
 Core earnings (excludes nonrecurring items) (1)  $63,709   $38,144   $15,700   $38,706   $27,319 
 Diluted core earnings per share (1)   2.32    1.46    0.70    2.29    1.65 
 Core net interest margin (FTE) (2)   3.82%   3.74%   3.55%   3.53%   3.49%
 Core efficiency ratio (1)   59.05%   60.08%   62.24%   67.22%   68.41%
 Core return on average assets (1)   1.21%   1.14%   1.10%   0.86%   0.83%
 Core return on average common equity (1)   9.39%   8.99%   9.47%   8.79%   8.66%
 Core return on tangible common equity (1)   14.73%   13.96%   14.16%   11.89%   11.57%
Financial Highlights - GAAP                         
 Net Income  $50,325   $28,727   $8,709   $35,688   $23,049 
 Diluted earnings per share   1.83    1.10    0.39    2.11    1.39 
 Return on average assets   0.96%   0.86%   0.61%   0.80%   0.70%
 Return on average common equity   7.41%   6.77%   5.25%   8.11%   7.30%
 Return on tangible common equity   11.73%   10.63%   8.07%   10.99%   9.82%
 Net interest margin (FTE)   4.58%   4.42%   4.34%   4.47%   4.41%
 FTE adjustment   6,332    4,160    1,857    6,840    5,089 
 Amortization of intangibles   3,552    2,287    899    1,979    1,359 
 Amortization of intangibles, net of taxes   2,159    1,390    546    1,203    826 
 Average earning assets   6,170,521    5,948,265    5,121,838    3,975,903    3,903,290 
 Average interest bearing liabilities   4,977,397    4,782,167    4,096,745    3,176,716    3,143,984 
 Average diluted shares outstanding   27,497,813    26,203,942    22,350,272    16,922,026    16,532,689 
 Cash dividends declared per common share   0.69    0.46    0.23    0.88    0.66 
END OF PERIOD                         
 Book value per share  $33.89   $33.26   $32.93   $27.38   $26.82 
 Tangible book value per share   21.89    21.19    20.79    20.15    19.72 
 Shares outstanding   29,939,698    29,894,903    29,850,034    18,052,488    17,992,261 
 Full-time equivalent employees   1,967    2,043    2,076    1,338    1,397 
 Total number of ATM's   183    186    179    124    129 
 Total number of financial centers   149    152    164    109    113 
           
  (1) Core earnings exclude nonrecurring items, which is a non-GAAP measurement       
  (2) Excludes accretable yield adjustment on loans, which is a non-GAAP measurement       

 

Page 9 

 

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)  2015  2015  2015  2014  2014
($ in thousands, except per share data)               
QUARTER-TO-DATE                         
 Net Income  $21,598   $20,018   $8,709   $12,639   $8,788 
 Nonrecurring items                         
Gain on sale of banking operations   (2,110)   -    -    -    - 
Loss on FDIC loss-share termination   7,476    -    -    -    - 
Merger-related costs   857    1,247    10,418    1,218    3,628 
Change-in-control payments   -    -    -    885    - 
Branch right-sizing   304    2,745    35    (4,221)   (705)
Charter consolidation costs   -    -    -    42    196 
Tax effect (1)   (2,560)   (1,566)   (3,462)   824    (1,223)
 Net nonrecurring items   3,967    2,426    6,991    (1,252)   1,896 
 Core earnings (non-GAAP)  $25,565   $22,444   $15,700   $11,387   $10,684 
                          
 Diluted earnings per share  $0.72   $0.67   $0.39   $0.72   $0.52 
 Nonrecurring items                         
Gain on sale of banking operations   (0.07)   -    -    -    - 
Loss on FDIC loss-share termination   0.25    -    -    -    - 
Merger-related costs   0.03    0.04    0.47    0.07    0.21 
Change-in-control payments   -    -    -    0.05    - 
Branch right-sizing   0.01    0.09    -    (0.24)   (0.04)
Charter consolidation costs   -    -    -    -    0.01 
Tax effect (1)   (0.09)   (0.05)   (0.16)   0.04    (0.07)
 Net nonrecurring items   0.13    0.08    0.31    (0.08)   0.11 
 Core earnings (non-GAAP)  $0.85   $0.75   $0.70   $0.64   $0.63 
                          
YEAR-TO-DATE                         
 Net Income  $50,325   $28,727   $8,709   $35,687   $23,049 
 Nonrecurring items                         
Gain on sale of merchant services   -    -    -    (1,000)   (1,000)
Gain on sale of banking operations   (2,110)   -    -    -    - 
Loss on FDIC loss-share termination   7,476    -    -    -    - 
Merger-related costs   12,522    11,665    10,418    7,472    6,254 
Change-in-control payments   -    -    -    885    - 
Branch right-sizing   3,084    2,780    35    (3,059)   1,162 
Charter consolidation costs   -    -    -    652    610 
Tax effect (1)   (7,588)   (5,028)   (3,462)   (1,931)   (2,745)
 Net nonrecurring items   13,384    9,417    6,991    3,019    4,281 
 Core earnings (non-GAAP)  $63,709   $38,144   $15,700   $38,706   $27,330 
                          
 Diluted earnings per share  $1.83   $1.10   $0.39   $2.11   $1.39 
 Nonrecurring items                         
Gain on sale of merchant services   -    -    -    (0.06)   (0.06)
Gain on sale of banking operations   (0.07)   -    -    -    - 
Loss on FDIC loss-share termination   0.27    -    -    -    - 
Merger-related costs   0.46    0.45    0.47    0.44    0.37 
Change-in-control payments   -    -    -    0.05    - 
Branch right-sizing   0.11    0.11    -    (0.16)   0.08 
Charter consolidation costs   -    -    -    0.04    0.04 
Tax effect (1)   (0.28)   (0.20)   (0.16)   (0.13)   (0.17)
 Net nonrecurring items   0.49    0.36    0.31    0.18    0.26 
 Core earnings (non-GAAP)  $2.32   $1.46   $0.70   $2.29   $1.65 
           
 (1) Effective tax rate of 39.225%, adjusted for non-deductible merger-related costs.       

 

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