0001171843-18-007104.txt : 20181022 0001171843-18-007104.hdr.sgml : 20181022 20181022170116 ACCESSION NUMBER: 0001171843-18-007104 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20181022 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20181022 DATE AS OF CHANGE: 20181022 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SIMMONS FIRST NATIONAL CORP CENTRAL INDEX KEY: 0000090498 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 710407808 STATE OF INCORPORATION: AR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-06253 FILM NUMBER: 181132733 BUSINESS ADDRESS: STREET 1: 501 MAIN STREET STREET 2: C/O SIMMONS FIRST NATIONAL CORP CITY: PINE BLUFF STATE: AR ZIP: 71601 BUSINESS PHONE: 8705411000 MAIL ADDRESS: STREET 1: 501 MAIN STREET STREET 2: C/O SIMMONS FIRST NATIONAL CORP CITY: PINE BLUFF STATE: AR ZIP: 71601 8-K 1 f8k_102218.htm FORM 8-K
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________

Form 8-K
_____________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event Reported): October 22, 2018

Simmons First National Corporation
(Exact Name of Registrant as Specified in Charter)

Arkansas 000-06253 71-0407808
(State or Other Jurisdiction of Incorporation) (Commission File Number) (I.R.S. Employer Identification Number)

 

501 Main Street, Pine Bluff, Arkansas 71601
(Address of Principal Executive Offices) (Zip Code)

(870) 541-1000
(Registrant's telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

  [ ]   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  [ ]   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
  [ ]   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
  [ ]   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company [   ]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [   ]

 
 

Item 2.02. Results of Operations and Financial Condition.

On October 22, 2018, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

Exhibit 99.1. Press release dated October 22, 2018

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

  Simmons First National Corporation
     
   
Date: October 22, 2018 By:  /s/ Robert A. Fehlman        
    Robert A. Fehlman
    Senior Executive Vice President, Chief Financial Officer and Treasurer
   

EX-99.1 2 exh_991.htm EXHIBIT 99.1

EXHIBIT 99.1

 

 

For Immediate Release:  October 22, 2018

 

SIMMONS REPORTS RECORD EARNINGS FOR THIRD QUARTER 2018

 

Pine Bluff, AR – Simmons First National Corporation (NASDAQ: SFNC) today announced record net income of $55.2 million for the quarter ended September 30, 2018, compared to $28.9 million for the same period in 2017, an increase of $26.3 million, or 91.3%. Diluted earnings per share were $0.59, an increase of $0.15, or 34.1%, from the same period in 2017. Included in third quarter 2018 results were $1.3 million in net after-tax merger-related and branch right-sizing costs. Excluding the impact of these items, core earnings were $56.5 million for the quarter ended September 30, 2018, compared to $27.7 million for the quarter ended September 30, 2017, an increase of $28.8 million, or 103.7%. Core diluted earnings per share were $0.61, an increase of $0.18, or 41.9%, from the same period in 2017.

 

Year-to-date net income for the first nine months of 2018 was $160.1 million, or $1.72 diluted earnings per share, compared to $74.0 million, or $1.16 diluted earnings per share, for the same period in 2017. Excluding $3.7 million in net after-tax merger-related and branch right sizing costs, year-to-date core earnings for 2018 were $163.8 million, an increase of $86.8 million compared to the same period last year.

 

“We are proud to again report record earnings for this quarter building off the strong results in the first half of the year,” said George A. Makris, Jr., chairman and CEO.

 

Makris continued, “We continue to experience excellent organic growth in all of our markets. We are also very pleased that we have been able to balance year-to-date loan yields with deposit costs in this rising-rate environment.”

 

The Company completed a 2-for-1 stock split effective February 8, 2018. Financial statements, including earnings per share as well as other share-related disclosures, have been adjusted to include the impact of the stock split on all periods presented.

 

 

Selected Highlights:  3rd Qtr 2018  2nd Qtr 2018  4th Qtr 2017  3rd Qtr 2017
             
Net income  $55.2 million  $53.6 million  $18.9 million  $28.9 million
Diluted earnings per share  $0.59  $0.58  $0.43  $0.44
Return on avg assets  1.37%  1.38%  0.54%  1.25%
Return on avg common equity  10.06%  10.05%  3.88%  9.12%
Return on tangible common equity  18.38%  18.70%  7.53%  14.47%
             
Core earnings(1)  $56.5 million  $54.7 million  $42.0 million  $27.7 million
Diluted core earnings per share(1)  $0.61  $0.59  $0.48  $0.43
Core return on avg assets(1)  1.40%  1.41%  1.20%  1.20%
Core return on avg common equity(1)  10.30%  10.26%  8.63%  8.77%
Core return on tangible common equity(1)  18.80%  19.06%  15.97%  13.93%
             
Efficiency ratio  53.47%  52.70%  51.36%  55.06%

 

(1)Core earnings excludes non-core items, and is a non-GAAP measurement.

 

 

 

 

 

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

 

 

Loans

 

   3rd Qtr 2018  2nd Qtr 2018  4th Qtr 2017  3rd Qtr 2017
             
Total loans  $11.9 billion  $11.4 billion  $10.8 billion  $6.3 billion
Legacy loans (all loans excluding loans acquired)  $8.1 billion  $7.1 billion  $5.7 billion  $5.2 billion
Loans acquired  $3.8 billion  $4.3 billion  $5.1 billion  $1.1 billion

 

Total loans, including those acquired, were $11.9 billion at September 30, 2018. On a linked-quarter basis (September 30, 2018 compared to June 30, 2018), total loans increased $492.3 million, or 4.3%. Total loans increased $1.1 billion, or 10.0%, since December 31, 2017.

 

Deposits

 

   3rd Qtr 2018  2nd Qtr 2018  4th Qtr 2017  3rd Qtr 2017
             
Total deposits  $12.1 billion  $12.0 billion  $11.1 billion  $7.3 billion
Non-time deposits  $9.6 billion  $9.6 billion  $9.2 billion  $6.0 billion
Time deposits  $2.5 billion  $2.4 billion  $1.9 billion  $1.3 billion

 

Total deposits were $12.1 billion at September 30, 2018, an increase of $135 million, or 1.1%, compared to the previous quarter. Total deposits increased $1.0 billion, or 9.0%, since December 31, 2017.

 

Net Interest Income

 

   3rd Qtr
2018		  2nd Qtr
2018		  1st Qtr
2018		  4th Qtr
2017		  3rd Qtr
2017
Loan yield (1)  5.54%  5.40%  5.38%  5.39%  4.91%
Core loan yield (1) (2)  5.19%  5.04%  4.95%  4.75%  4.72%
Security yield (1)  2.74%  2.75%  2.67%  2.62%  2.64%
Cost of interest bearing deposits  1.05%  0.84%  0.74%  0.63%  0.43%
Cost of borrowed funds  2.48%  2.38%  1.70%  1.78%  1.52%
Net interest margin (1)  3.98%  3.99%  4.17%  4.21%  3.91%
Core net interest margin (1) (2)  3.71%  3.70%  3.82%  3.70%  3.77%

 

(1)Fully tax equivalent.
(2)Core loan yield and core net interest margin exclude accretion, and are non-GAAP measurements.

 

The Company’s net interest income for the third quarter of 2018 was $143.0 million, an increase of $64.1 million, or 81.4%, from the same period of 2017. Included in interest income was the yield accretion recognized on loans acquired of $10.0 million and $2.9 million for the third quarters of 2018 and 2017, respectively. Yield accretion was $5.2 million higher than projected during the quarter due to accelerated cash flows of acquired loans. Based on its cash flow projections, the Company expects accretion for the fourth quarter of approximately $4.2 million.

 

Net interest margin was 3.98% for the quarter ended September 30, 2018, a 1 basis point decrease from the second quarter. The Company’s core net interest margin, excluding the accretion, was 3.71% for the third quarter of 2018, a 1 basis point increase from June 30, 2018. Cost of interest bearing deposits was 1.05% for the third quarter of 2018, a 62 basis point increase from September 30, 2017 and a 21 basis point increase from June 30, 2018.

 

Since December 2017, the Federal Reserve Board increased the Fed Funds target rate by 75 basis points. The Company’s deposit beta was 56% and the core loan beta was 59%. During this same period, loan yield has increased 15 basis points and core loan yield has increased 44 basis points while cost of interest bearing deposits has risen 42 basis points. The cost of borrowed funds increased 70 basis points. The subordinated debt issuance at the end of the first quarter had a 5 basis point impact on the Company’s third quarter net interest margin. The timing of existing subordinated debt prepayment had an additional 1 basis point impact.

 

 

 

Non-Interest Income

 

Non-interest income for the third quarter 2018 was $33.7 million, a decrease of $4.3 million compared to the previous quarter. The decrease was primarily due to decreases in debit card fees and mortgage lending income. The interchange rate cap as established by the Durbin amendment became effective for the Company July 1, 2018, resulting in a $3.3 million reduction in debit card fees for the third quarter when compared to the second quarter.

 

Mortgage lending income was $1.4 million less than the second quarter mainly due to a continued slow-down in transactions driven by the rising rate environment. SBA income was flat from prior quarter due to management remaining selective in the Company’s loan sales as premium rates have lowered in recent months to the 6 to 7% range compared to 10% during the first quarter of the year.

 

Non-Interest Expense

 

Non-interest expense for the third quarter of 2018 was $100.3 million, an increase of $1.7 million compared to the previous quarter. Included in this quarter were $1.8 million of pre-tax merger-related expenses and branch rightsizing expenses. Excluding these expenses, core non-interest expense was $98.5 million, an increase of $1.5 million compared to the previous quarter.

 

Approximately $1.2 million in computer and software items were expensed during the quarter as part of the Company’s Next Generation Banking platform initiative. An incremental $1.1 million was spent during the quarter, when compared to the previous quarter, primarily for marketing campaigns directed towards increasing deposits. Included in the quarter was $1.1 million of one-time 401k profit-sharing expense. These increases were partially offset by decreases in other categories related to cost savings from merger integrations. The efficiency ratio for the third quarter 2018 was 53.47%.

 

The Company closed eight branch locations and two mobile branch locations during September, with expected annual cost savings of approximately $2.2 million related to these locations. Management continuously evaluates the Company’s branch network to determine the locations that are meeting the greatest needs of its customers.

 

Asset Quality

 

   3rd Qtr 2018  2nd Qtr 2018  4th Qtr 2017  3rd Qtr 2017
             
Allowance for loan losses to total loans  0.68%  0.73%  0.73%  0.82%
Allowance for loan losses to non-performing loans  136%  115%  90%  78%
Non-performing loans to total loans  0.50%  0.63%  0.81%  1.05%
Net charge-off ratio (annualized)  0.36%  0.17%  0.53%  0.32%
- Net charge-off ratio excluding loan sale  0.12%         

 

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

 

At September 30, 2018, the allowance for loan losses for legacy loans was $55.4 million. The allowance for loan losses for loans acquired was $1.3 million and the acquired loan discount credit mark was $54.0 million. The allowances for loan losses and credit marks provide a total of $110.7 million of coverage, which equates to a total coverage ratio of 0.9% of gross loans. The ratio of credit mark and related allowance to loans acquired was 1.5%.

 

Provision for loan losses for the third quarter of 2018 was $10.3 million, an increase of $1.3 million from the second quarter and $4.9 million from the same period last year. The increases are primarily due to strong legacy loan growth as well as increased migration from loans acquired to legacy loans resulting from new credit decisions being made on those loans during the third quarter. An incremental $3.0 million was included in the provision during the quarter related to the accelerated cash flows on migrating acquired loans.

 

During September, the Company sold approximately $32 million of substandard rated loans that consisted of both legacy and acquired loans. The loans had adequate reserves, thus no provision expense was required. However, the sale increased net charge-offs by approximately $4.6 million.

 

 

 

Foreclosed Assets and Other Real Estate Owned

 

At September 30, 2018, foreclosed assets and other real estate owned were $22.7 million, a decrease of $8.8 million, or 28.0%, compared to the same period in 2017 and a decrease of $7.8 million, or 25.7% from June 30, 2018. These decreases were partially offset by the addition of $2.8 million related to the closure of bank branches. The composition of these assets is divided into three types:

 

   3rd Qtr 2018  2nd Qtr 2018  4th Qtr 2017  3rd Qtr 2017
             
Closed bank branches, branch sites &            
associate relocation  $9.6 million  $7.2 million  $9.8 million  $12.8 million
Foreclosed assets - acquired  $8.0 million  $13.2 million  $16.0 million  $11.1 million
Foreclosed assets - legacy  $5.1 million  $10.1 million  $6.3 million  $7.6 million

 

Capital

 

   3rd Qtr 2018  2nd Qtr 2018  4th Qtr 2017  3rd Qtr 2017
             
Stockholders’ equity to total assets  13.4%  13.3%  13.9%  13.2%
Tangible common equity to tangible assets  8.1%  7.9%  8.1%  9.1%
Regulatory tier 1 leverage ratio  8.7%  8.6%  9.2%  10.6%
Regulatory total risk-based capital ratio  13.1%  13.7%  11.4%  13.5%

 

At September 30, 2018, common stockholders' equity was $2.2 billion, book value per share was $23.66 and tangible book value per share was $13.48.

 

Simmons First National Corporation

 

Simmons First National Corporation is a financial holding company, headquartered in Pine Bluff, Arkansas, with total assets of $16.3 billion as of September 30, 2018 conducting financial operations throughout Arkansas, Colorado, Kansas, Missouri, Oklahoma, Tennessee and Texas. The Company, through its subsidiaries, offers comprehensive financial solutions delivered with a client-centric approach. The Company’s common stock trades on the NASDAQ Market under the symbol “SFNC.”

 

Conference Call

 

Management will conduct a live conference call to review this information beginning at 9:00 a.m. CDT on Tuesday, October 23, 2018. Interested persons can listen to this call by dialing toll-free 1-866-298-7926 (United States and Canada only) and asking for the Simmons First National Corporation conference call, conference ID 7878976. In addition, the call will be available live or in recorded version on the Company’s website at www.simmonsbank.com.

 

Non-GAAP Financial Measures

 

This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles (GAAP). The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance. These measures typically adjust GAAP performance measures to include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant non-core activities or nonrecurring transactions. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

 

 

 

Forward-Looking Statements

 

Statements in this news release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any forward-looking statement speaks only as of the date of this news release, and we undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors, including, but not limited to, economic conditions, credit quality, interest rates, loan demand, changes in the assumptions used in making the forward-looking statements, and the Company’s ability to manage and successfully integrate its mergers and acquisitions could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect Simmons First National Corporation’s financial results is included in its Form 10-K filing with the Securities and Exchange Commission.

 

####

 

FOR MORE INFORMATION CONTACT:

STEPHEN C. MASSANELLI

EVP, Chief Administrative Officer 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)  2018  2018  2018  2017  2017
($ in thousands)               
ASSETS                         
Cash and non-interest bearing balances due from banks  $125,231   $162,567   $170,811   $205,025   $108,675 
Interest bearing balances due from banks and federal funds sold   388,573    781,279    688,853    393,017    323,615 
Cash and cash equivalents   513,804    943,846    859,664    598,042    432,290 
Interest bearing balances due from banks - time   3,954    2,974    3,069    3,314    4,059 
Investment securities - held-to-maturity   323,306    333,503    352,756    368,058    406,033 
Investment securities - available-for-sale   1,997,814    1,938,644    1,830,113    1,589,517    1,317,420 
Mortgage loans held for sale   48,195    39,812    17,708    24,038    12,614 
Assets held in trading accounts   -    -    -    -    49 
Other assets held for sale   5,136    14,898    24,784    165,780    182,378 
Loans:                         
Legacy loans   8,123,274    7,133,461    6,290,383    5,705,609    5,211,312 
Allowance for loan losses   (55,358)   (51,732)   (47,207)   (41,668)   (42,717)
Loans acquired, net of discount and allowance   3,734,921    4,232,434    4,696,945    5,074,076    1,092,039 
Net loans   11,802,837    11,314,163    10,940,121    10,738,017    6,260,634 
Premises and equipment   287,246    288,777    289,355    287,249    224,376 
Foreclosed assets and other real estate owned   22,664    30,503    29,140    32,118    31,477 
Interest receivable   51,509    44,266    42,129    43,528    30,749 
Bank owned life insurance   192,680    191,575    186,473    185,984    148,984 
Goodwill   845,687    845,687    845,687    842,651    375,731 
Other intangible assets   93,975    96,720    99,504    106,071    55,501 
Other assets   92,457    80,165    76,806    71,439    53,075 
Total assets  $16,281,264   $16,165,533   $15,597,309   $15,055,806   $9,535,370 
                          
LIABILITIES AND STOCKHOLDERS' EQUITY                         
Deposits:                         
Non-interest bearing transaction accounts  $2,778,670   $2,683,489   $2,734,287   $2,665,249   $1,669,860 
Interest bearing transaction accounts and savings deposits   6,776,330    6,916,520    6,720,754    6,494,896    4,344,779 
Time deposits   2,533,506    2,353,439    2,201,874    1,932,730    1,310,951 
Total deposits   12,088,506    11,953,448    11,656,915    11,092,875    7,325,590 
Federal funds purchased and securities sold                         
under agreements to repurchase   109,213    99,801    120,909    122,444    121,687 
Other borrowings   1,420,917    1,451,811    1,140,986    1,380,024    522,541 
Subordinated notes and debentures   372,934    413,337    468,465    140,565    67,418 
Other liabilities held for sale   424    1,840    2,781    157,366    176,964 
Accrued interest and other liabilities   105,951    98,388    98,202    77,968    63,971 
Total liabilities   14,097,945    14,018,625    13,488,258    12,971,242    8,278,171 
                          
Stockholders' equity:                         
Common stock   923    923    922    920    644 
Surplus   1,597,261    1,594,342    1,590,086    1,586,034    763,121 
Undivided profits   633,175    591,826    552,105    514,874    504,085 
Accumulated other comprehensive loss:                         
Unrealized depreciation on AFS securities   (48,040)   (40,183)   (34,062)   (17,264)   (10,651)
Total stockholders' equity   2,183,319    2,146,908    2,109,051    2,084,564    1,257,199 
Total liabilities and stockholders' equity  $16,281,264   $16,165,533   $15,597,309   $15,055,806   $9,535,370 

 

Page 1

 

Simmons First National Corporation              SFNC
Consolidated Statements of Income - Quarter-to-Date               
For the Quarters Ended  Sep 30  Jun 30  Mar 31  Dec 31  Sep 30
(Unaudited)  2018  2018  2018  2017  2017
($ in thousands, except per share data)               
INTEREST INCOME                         
Loans  $162,438   $150,253   $143,350   $132,617   $77,457 
Interest bearing balances due from banks and federal funds sold   1,405    1,414    1,009    947    650 
Investment securities   14,640    14,296    12,622    11,456    9,218 
Mortgage loans held for sale   501    305    158    175    159 
TOTAL INTEREST INCOME   178,984    166,268    157,139    145,195    87,484 
INTEREST EXPENSE                         
Time deposits   8,017    6,175    4,842    3,944    2,110 
Other deposits   16,373    12,286    10,755    8,762    3,920 
Federal funds purchased and securities                         
sold under agreements to repurchase   104    88    110    97    83 
Other borrowings   6,240    5,141    5,139    3,993    1,875 
Subordinated notes and debentures   5,282    5,741    1,327    1,480    677 
TOTAL INTEREST EXPENSE   36,016    29,431    22,173    18,276    8,665 
NET INTEREST INCOME   142,968    136,837    134,966    126,919    78,819 
Provision for loan losses   10,345    9,033    9,150    9,601    5,462 
NET INTEREST INCOME AFTER PROVISION                         
FOR LOAN LOSSES   132,623    127,804    125,816    117,318    73,357 
NON-INTEREST INCOME                         
Trust income   6,277    5,622    5,249    6,020    4,225 
Service charges on deposit accounts   10,837    10,063    10,345    10,587    8,907 
Other service charges and fees   1,201    2,017    2,750    2,774    2,433 
Mortgage and SBA lending income   1,825    3,130    4,445    3,713    3,219 
Investment banking income   664    814    834    786    680 
Debit and credit card fees   6,820    10,105    8,796    8,801    8,864 
Bank owned life insurance income   1,105    1,102    1,103    1,101    725 
Gain (loss) on sale of securities, net   54    (7)   6    (1,243)   3 
Other income   4,942    5,202    4,007    4,090    7,276 
TOTAL NON-INTEREST INCOME   33,725    38,048    37,535    36,629    36,332 
NON-INTEREST EXPENSE                         
Salaries and employee benefits   55,515    55,678    56,357    49,288    35,285 
Occupancy expense, net   7,713    7,921    6,960    6,700    4,928 
Furniture and equipment expense   3,761    4,020    4,403    5,533    4,840 
Other real estate and foreclosure expense   538    1,382    1,020    865    1,071 
Deposit insurance   2,248    1,856    2,128    1,216    1,020 
Merger-related costs   804    1,465    1,711    14,044    752 
Other operating expenses   29,674    26,185    25,494    30,844    18,263 
TOTAL NON-INTEREST EXPENSE   100,253    98,507    98,073    108,490    66,159 
NET INCOME BEFORE INCOME TAXES   66,095    67,345    65,278    45,457    43,530 
Provision for income taxes   10,902    13,783    13,966    26,554    14,678 
NET INCOME  $55,193   $53,562   $51,312   $18,903   $28,852 
BASIC EARNINGS PER SHARE  $0.60   $0.58   $0.56   $0.22   $0.45 
DILUTED EARNINGS PER SHARE  $0.59   $0.58   $0.55   $0.22   $0.44 

 

Page 2

 

Simmons First National Corporation           SFNC
Consolidated Risk-Based Capital               
For the Quarters Ended  Sep 30  Jun 30  Mar 31  Dec 31  Sep 30
(Unaudited)  2018  2018  2018  2017  2017
($ in thousands)               
Tier 1 capital                         
Stockholders' equity  $2,183,319   $2,146,908   $2,109,051   $2,084,564   $1,257,199 
Trust preferred securities, net allowable   -    -    -    -    67,418 
Disallowed intangible assets, net of deferred tax   (914,788)   (917,050)   (918,161)   (902,371)   (401,419)
Unrealized loss on AFS securities   48,040    40,183    34,062    17,264    10,651 
Total Tier 1 capital   1,316,571    1,270,041    1,224,952    1,199,457    933,849 
                          
Tier 2 capital                         
Qualifying unrealized gain on AFS equity securities   1    1    8    1    1 
Trust preferred securities and subordinated debt   372,934    413,337    468,466    140,565    - 
Qualifying allowance for loan losses and                         
reserve for unfunded commitments   63,618    60,691    54,436    48,947    46,709 
Total Tier 2 capital   436,553    474,029    522,910    189,513    46,710 
Total risk-based capital  $1,753,124   $1,744,070   $1,747,862   $1,388,970   $980,559 
                          
Common equity                         
Tier 1 capital  $1,316,571   $1,270,041   $1,224,952   $1,199,457   $933,849 
Less: Trust preferred securities   -    -    -    -    (67,418)
Total common equity  $1,316,571   $1,270,041   $1,224,952   $1,199,457   $866,431 
                          
Risk weighted assets  $13,402,910   $12,713,093   $12,417,233   $12,234,160   $7,239,923 
                          
Adjusted average assets for leverage ratio  $15,179,889   $14,714,205   $14,179,390   $13,016,478   $8,789,175 
                          
Ratios at end of quarter                         
Equity to assets   13.41%   13.28%   13.52%   13.85%   13.18%
Tangible common equity to tangible assets (1)   8.11%   7.91%   7.94%   8.05%   9.07%
Common equity Tier 1 ratio (CET1)   9.82%   9.99%   9.86%   9.80%   11.97%
Tier 1 leverage ratio   8.67%   8.63%   8.64%   9.21%   10.62%
Tier 1 risk-based capital ratio   9.82%   9.99%   9.86%   9.80%   12.90%
Total risk-based capital ratio   13.08%   13.72%   14.08%   11.35%   13.54%

 

(1) Calculations of tangible common equity to tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release.

 

Page 3

 

Simmons First National Corporation           SFNC
Consolidated Loans and Investments               
For the Quarters Ended  Sep 30  Jun 30  Mar 31  Dec 31  Sep 30
(Unaudited)  2018  2018  2018  2017  2017
($ in thousands)               
Legacy Loan Portfolio - End of Period (1)                         
Consumer                         
Credit cards  $182,137   $180,352   $176,602   $185,422   $176,316 
Other consumer   259,581    277,330    284,285    280,094    317,946 
Total consumer   441,718    457,682    460,887    465,516    494,262 
Real Estate                         
Construction   1,229,888    967,720    786,077    614,155    515,274 
Single-family residential   1,401,991    1,314,787    1,193,464    1,094,633    1,048,403 
Other commercial   3,077,188    2,816,420    2,611,358    2,530,824    2,231,223 
Total real estate   5,709,067    5,098,927    4,590,899    4,239,612    3,794,900 
Commercial                         
Commercial   1,608,342    1,237,910    971,704    825,217    688,960 
Agricultural   218,778    187,006    128,247    148,302    207,849 
Total commercial   1,827,120    1,424,916    1,099,951    973,519    896,809 
Other   145,369    151,936    138,646    26,962    25,341 
Total Loans  $8,123,274   $7,133,461   $6,290,383   $5,705,609   $5,211,312 
                          
(1) Excludes all acquired loans.                         
                          
Investment Securities - End of Period                         
Held-to-Maturity                         
U.S. Government agencies  $34,983   $36,976   $46,961   $46,945   $66,928 
Mortgage-backed securities   13,933    14,645    15,404    16,132    16,972 
State and political subdivisions   272,396    279,787    286,901    301,491    320,116 
Other securities   1,994    2,095    3,490    3,490    2,017 
Total held-to-maturity   323,306    333,503    352,756    368,058    406,033 
Available-for-Sale                         
U.S. Government agencies  $141,460   $145,767   $149,804   $139,724   $208,220 
Mortgage-backed securities   1,419,626    1,395,231    1,356,179    1,187,317    959,698 
State and political subdivisions   282,439    245,335    185,888    143,165    84,822 
FHLB stock   72,579    72,042    58,177    58,914    24,415 
Other securities   81,710    80,269    80,065    60,397    40,265 
Total available-for-sale   1,997,814    1,938,644    1,830,113    1,589,517    1,317,420 
Total investment securities  $2,321,120   $2,272,147   $2,182,869   $1,957,575   $1,723,453 
Fair value - HTM investment securities  $322,838   $334,857   $354,649   $373,298   $412,140 
                          
Investment Securities - QTD Average                         
Taxable securities  $1,775,193   $1,750,172   $1,618,270   $1,569,173   $1,229,172 
Tax exempt securities   539,135    514,838    460,675    446,040    409,062 
Total investment securities - QTD average  $2,314,328   $2,265,010   $2,078,945   $2,015,213   $1,638,234 

 

Page 4

 

Simmons First National Corporation              SFNC
Consolidated Loans and Credit Coverage               
For the Quarters Ended  Sep 30  Jun 30  Mar 31  Dec 31  Sep 30
(Unaudited)  2018  2018  2018  2017  2017
($ in thousands)               
LOANS                         
Legacy loans  $8,123,274   $7,133,461   $6,290,383   $5,705,609   $5,211,312 
Allowance for loan losses (legacy loans)   (55,358)   (51,732)   (47,207)   (41,668)   (42,717)
Legacy loans (net of allowance)   8,067,916    7,081,729    6,243,176    5,663,941    5,168,595 
Loans acquired   3,790,234    4,302,760    4,776,439    5,163,769    1,117,424 
Credit discount   (53,968)   (68,282)   (79,087)   (89,275)   (24,994)
Allowance for loan losses (loans acquired)   (1,345)   (2,044)   (407)   (418)   (391)
Loans acquired (net of discount and allowance)   3,734,921    4,232,434    4,696,945    5,074,076    1,092,039 
Net loans  $11,802,837   $11,314,163   $10,940,121   $10,738,017   $6,260,634 
                          
                          
Loan Coverage Ratios                         
Allowance for loan losses to legacy loans   0.68%   0.73%   0.75%   0.73%   0.82%
                          
Discount for credit losses and allowance on loans acquired                         
to total loans acquired plus discount for credit losses                         
and allowance on loans acquired (non-GAAP) (1)   1.46%   1.63%   1.66%   1.74%   2.27%
                          
Total allowance and credit coverage (non-GAAP) (1)   0.93%   1.07%   1.14%   1.21%   1.08%

 

(1) Calculations of the non-GAAP loan coverage ratios and the reconciliations to GAAP are included in the schedules accompanying this release.

 

Page 5

 

Simmons First National Corporation           SFNC
Consolidated Allowance and Asset Quality               
For the Quarters Ended  Sep 30  Jun 30  Mar 31  Dec 31  Sep 30
(Unaudited)  2018  2018  2018  2017  2017
($ in thousands)               
Allowance for Loan Losses (Legacy Loans)                         
Balance, beginning of quarter  $51,732   $47,207   $41,668   $42,717   $41,379 
Loans charged off                         
Credit cards   919    1,012    999    943    1,017 
Other consumer   1,321    1,366    1,056    781    819 
Real estate   4,952    161    455    4,725    896 
Commercial   592    790    1,761    4,754    2,442 
Total loans charged off   7,784    3,329    4,271    11,203    5,174 
                          
Recoveries of loans previously charged off                         
Credit cards   229    286    263    233    275 
Other consumer   176    133    94    468    445 
Real estate   210    112    302    233    309 
Commercial   450    59    69    20    21 
Total recoveries   1,065    590    728    954    1,050 
Net loans charged off   6,719    2,739    3,543    10,249    4,124 
Provision for loan losses   10,345    7,264    9,082    9,200    5,462 
Balance, end of quarter  $55,358   $51,732   $47,207   $41,668   $42,717 
                          
Non-performing assets (1) (2)                         
Non-performing loans                         
Nonaccrual loans  $40,505   $44,548   $47,395   $45,642   $54,439 
Loans past due 90 days or more   281    303    336    520    232 
Total non-performing loans   40,786    44,851    47,731    46,162    54,671 
Other non-performing assets                         
Foreclosed assets and other real estate owned (2)   22,664    30,503    29,140    32,118    31,477 
Other non-performing assets   524    573    794    675    639 
Total other non-performing assets   23,188    31,076    29,934    32,793    32,116 
Total non-performing assets  $63,974   $75,927   $77,665   $78,955   $86,787 
Performing TDRs (troubled debt restructurings)  $8,413   $6,367   $6,459   $7,107   $9,212 
                          
Ratios (1) (2)                         
Allowance for loan losses to total loans   0.68%   0.73%   0.75%   0.73%   0.82%
Allowance for loan losses to non-performing loans   136%   115%   99%   90%   78%
Non-performing loans to total loans   0.50%   0.63%   0.76%   0.81%   1.05%
Non-performing assets (including performing TDRs)                         
to total assets   0.44%   0.51%   0.54%   0.57%   1.01%
Non-performing assets to total assets   0.39%   0.47%   0.50%   0.52%   0.91%
Annualized net charge offs to total loans   0.36%   0.17%   0.24%   0.53%   0.32%
Annualized net credit card charge offs to                         
total credit card loans   1.47%   1.60%   1.63%   1.54%   1.65%

 

(1) Excludes all acquired loans, except for their inclusion in total assets.

(2) Includes acquired foreclosed assets and acquired other real estate owned.

 

Page 6

 

Simmons First National Corporation     SFNC
Consolidated - Average Balance Sheet and Net Interest Income Analysis      
For the Quarters Ended               
(Unaudited)                           
   Three Months Ended
Sep 2018		  Three Months Ended
Jun 2018		  Three Months Ended
Sep 2017
($ in thousands)  Average
Balance		  Income/
Expense		  Yield/
Rate		  Average
Balance		  Income/
Expense		  Yield/
Rate		  Average
Balance		  Income/
Expense		  Yield/
Rate
ASSETS                           
Earning assets:                                             
Interest bearing balances due from banks                                             
and federal funds sold  $373,528   $1,405    1.49%  $422,987   $1,414    1.34%  $269,111   $650    0.96%
Investment securities - taxable   1,775,193    10,892    2.43%   1,750,172    10,764    2.47%   1,229,172    6,574    2.12%
Investment securities - non-taxable (FTE)   539,135    5,064    3.73%   514,838    4,771    3.72%   409,062    4,341    4.21%
Mortgage loans held for sale   43,554    501    4.56%   28,688    305    4.26%   13,388    159    4.71%
Assets held in trading accounts   -    -    0.00%   -    -    0.00%   52    -    0.00%
Loans, including acquired loans   11,641,843    162,515    5.54%   11,159,872    150,322    5.40%   6,261,507    77,511    4.91%
Total interest earning assets (FTE)   14,373,253    180,377    4.98%   13,876,557    167,576    4.84%   8,182,292    89,235    4.33%
Non-earning assets   1,667,631              1,704,140              993,315           
Total assets  $16,040,884             $15,580,697             $9,175,607           
                                              
LIABILITIES AND STOCKHOLDERS' EQUITY           
Interest bearing liabilities:                                             
Interest bearing transaction and                                             
savings accounts  $6,840,403   $16,373    0.95%  $6,570,471   $12,286    0.75%  $4,227,567   $3,920    0.37%
Time deposits   2,379,142    8,017    1.34%   2,233,673    6,175    1.11%   1,330,889    2,110    0.63%
Total interest bearing deposits   9,219,545    24,390    1.05%   8,804,144    18,461    0.84%   5,558,456    6,030    0.43%
Federal funds purchased and securities                                             
sold under agreement to repurchase   107,770    104    0.38%   107,205    88    0.33%   115,583    83    0.28%
Other borrowings   1,375,052    6,240    1.80%   1,273,135    5,141    1.62%   502,972    1,875    1.48%
Subordinated notes and debentures   379,168    5,282    5.53%   466,612    5,741    4.93%   67,367    677    3.99%
Total interest bearing liabilities   11,081,535    36,016    1.29%   10,651,096    29,431    1.11%   6,244,378    8,665    0.55%
Non-interest bearing liabilities:                                             
Non-interest bearing deposits   2,679,469              2,705,677              1,613,248           
Other liabilities   103,315              86,827              62,287           
Total liabilities   13,864,319              13,443,600              7,919,913           
Stockholders' equity   2,176,565              2,137,097              1,255,694           
Total liabilities and stockholders' equity  $16,040,884             $15,580,697             $9,175,607           
Net interest income (FTE)       $144,361             $138,145             $80,570      
Net interest spread (FTE)             3.69%             3.73%             3.78%
Net interest margin (FTE) - quarter-to-date             3.98%             3.99%             3.91%
                                              
Net interest margin (FTE) - year-to-date             4.04%             4.08%             3.99%
                                              
Core net interest margin (FTE) - quarter-to-date (1)             3.71%             3.70%             3.77%
Core loan yield (FTE) - quarter-to-date (1)             5.19%             5.04%             4.72%
                                              
Core net interest margin (FTE) - year-to-date (1)             3.74%             3.76%             3.79%
Core loan yield (FTE) - year-to-date (1)             5.06%             4.99%             4.65%

 

(1) Calculations of core net interest margin and core loan yield and the reconciliations to GAAP are included in the schedules accompanying this release.

 

Page 7

 

Simmons First National Corporation           SFNC
Consolidated - Selected Financial Data               
For the Quarters Ended  Sep 30  Jun 30  Mar 31  Dec 31  Sep 30
(Unaudited)  2018  2018  2018  2017  2017
($ in thousands, except share data)               
QUARTER-TO-DATE                         
Financial Highlights - GAAP                         
Net Income  $55,193   $53,562   $51,312   $18,903   $28,852 
Diluted earnings per share   0.59    0.58    0.55    0.22    0.44 
Return on average assets   1.37%   1.38%   1.38%   0.54%   1.25%
Return on average common equity   10.06%   10.05%   9.90%   3.88%   9.12%
Return on tangible common equity   18.38%   18.70%   18.77%   7.53%   14.47%
Net interest margin (FTE)   3.98%   3.99%   4.17%   4.21%   3.91%
FTE adjustment   1,393    1,308    1,130    1,925    1,751 
Amortization of intangibles   2,745    2,785    2,837    2,839    1,724 
Amortization of intangibles, net of taxes   2,027    2,057    2,096    1,725    1,048 
Average diluted shares outstanding   92,840,851    92,733,140    92,638,765    87,036,044    64,847,592 
Cash dividends declared per common share   0.15    0.15    0.15    0.13    0.13 
Financial Highlights - Core (non-GAAP)                         
Core earnings (excludes non-core items) (1)  $56,504   $54,660   $52,618   $42,018   $27,746 
Diluted core earnings per share (1)   0.61    0.59    0.57    0.48    0.43 
Core net interest margin (FTE) (2)   3.71%   3.70%   3.82%   3.70%   3.77%
Accretable yield on acquired loans   10,006    10,113    11,294    15,684    2,890 
Efficiency ratio (1)   53.47%   52.70%   53.24%   51.36%   55.06%
Core return on average assets (1)   1.40%   1.41%   1.41%   1.20%   1.20%
Core return on average common equity (1)   10.30%   10.26%   10.15%   8.63%   8.77%
Core return on tangible common equity (1)   18.80%   19.06%   19.23%   15.97%   13.93%
YEAR-TO-DATE                         
Financial Highlights - GAAP                         
Net Income  $160,067   $104,874   $51,312   $92,940   $74,037 
Diluted earnings per share   1.72    1.13    0.55    1.33    1.16 
Return on average assets   1.37%   1.38%   1.38%   0.92%   1.12%
Return on average common equity   10.01%   9.98%   9.90%   6.68%   8.18%
Return on tangible common equity   18.61%   18.73%   18.77%   11.26%   12.97%
Net interest margin (FTE)   4.04%   4.08%   4.17%   4.07%   3.99%
FTE adjustment   3,831    2,438    1,130    7,723    5,798 
Amortization of intangibles   8,367    5,622    2,837    7,666    4,827 
Amortization of intangibles, net of taxes   6,180    4,153    2,096    4,659    2,934 
Average diluted shares outstanding   92,796,860    92,692,234    92,638,765    69,852,920    64,014,270 
Cash dividends declared per common share   0.45    0.30    0.15    0.50    0.38 
Financial Highlights - Core (non-GAAP)                         
Core earnings (excludes non-core items) (1)  $163,782   $107,278   $52,618   $119,049   $77,031 
Diluted core earnings per share (1)   1.76    1.16    0.57    1.70    1.20 
Core net interest margin (FTE) (2)   3.74%   3.76%   3.82%   3.76%   3.79%
Accretable yield on acquired loans   31,413    21,407    11,294    27,793    12,109 
Efficiency ratio (1)   53.14%   52.97%   53.24%   55.27%   57.25%
Core return on average assets (1)   1.41%   1.41%   1.41%   1.18%   1.17%
Core return on average common equity (1)   10.24%   10.20%   10.15%   8.56%   8.51%
Core return on tangible common equity (1)   19.03%   19.14%   19.23%   14.28%   13.48%
END OF PERIOD                         
Book value per share  $23.66   $23.26   $22.86   $22.65   $19.51 
Tangible book value per share   13.48    13.05    12.62    12.34    12.82 
Shares outstanding   92,291,070    92,281,370    92,242,389    92,029,118    64,424,484 
Full-time equivalent employees   2,635    2,659    2,626    2,640    1,942 
Total number of financial centers   191    199    200    200    156 

 

(1) Core earnings exclude non-core items, which is a non-GAAP measurement. Reconciliations to GAAP are included in the  schedules accompanying this release.

(2) Excludes accretable yield adjustment on loans, which is a non-GAAP measurement. Reconciliations to GAAP are included in  the schedules accompanying this release.

 

Page 8

 

Simmons First National Corporation           SFNC
Consolidated - Reconciliation of Core Earnings (non-GAAP)         
For the Quarters Ended  Sep 30  Jun 30  Mar 31  Dec 31  Sep 30
(Unaudited)  2018  2018  2018  2017  2017
($ in thousands, except per share data)               
QUARTER-TO-DATE                         
 Net Income  $55,193   $53,562   $51,312   $18,903   $28,852 
 Non-core items                         
Gain on sale of P&C insurance business   -    -    -    -    (3,708)
Donation to Simmons Foundation   -    -    -    5,000    - 
Merger-related costs   804    1,465    1,711    14,044    752 
Branch right-sizing   970    22    57    116    435 
Tax effect (1)   (463)   (389)   (462)   (7,516)   1,415 
 Net non-core items (before SAB 118 adjustment)   1,311    1,098    1,306    11,644    (1,106)
SAB 118 adjustment (2)   -    -    -    11,471    - 
 Core earnings (non-GAAP)  $56,504   $54,660   $52,618   $42,018   $27,746 
                          
 Diluted earnings per share  $0.59   $0.58   $0.55   $0.22   $0.44 
 Non-core items                         
Gain on sale of P&C insurance business   -    -    -    -    (0.06)
Donation to Simmons Foundation   -    -    -    0.06    - 
Merger-related costs   0.01    0.02    0.02    0.17    0.01 
Branch right-sizing   0.01    -    -    -    0.01 
Tax effect (1)   -    (0.01)   -    (0.10)   0.03 
 Net non-core items (before SAB 118 adjustment)   0.02    0.01    0.02    0.13    (0.01)
SAB 118 adjustment (2)   -    -    -    0.13    - 
 Core earnings (non-GAAP)  $0.61   $0.59   $0.57   $0.48   $0.43 
                          
YEAR-TO-DATE                         
 Net Income  $160,067   $104,874   $51,312   $92,940   $74,037 
 Non-core items                         
Gain on sale of P&C insurance business   -    -    -    (3,708)   (3,708)
Donation to Simmons Foundation   -    -    -    5,000    - 
Merger-related costs   3,980    3,176    1,711    21,923    7,879 
Branch right-sizing   1,049    79    57    169    53 
Tax effect (1)   (1,314)   (851)   (462)   (8,746)   (1,230)
 Net non-core items (before SAB 118 adjustment)   3,715    2,404    1,306    14,638    2,994 
SAB 118 adjustment (2)   -    -    -    11,471    - 
 Core earnings (non-GAAP)  $163,782   $107,278   $52,618   $119,049   $77,031 
                          
 Diluted earnings per share  $1.72   $1.13   $0.55   $1.33   $1.16 
 Non-core items                         
Gain on sale of P&C insurance business   -    -    -    (0.04)   (0.06)
Donation to Simmons Foundation   -    -    -    0.07      
Merger-related costs   0.04    0.04    0.02    0.31    0.12 
Branch right-sizing   0.01    -    -    -    - 
Tax effect (1)   (0.01)   (0.01)   -    (0.13)   (0.02)
 Net non-core items (before SAB 118 adjustment)   0.04    0.03    0.02    0.21    0.04 
SAB 118 adjustment (2)   -    -    -    0.16    - 
 Core earnings (non-GAAP)  $1.76   $1.16   $0.57   $1.70   $1.20 

 

(1) Effective tax rate of 26.135% for 2018 and 39.225% for prior years, adjusted for non-deductible merger-related costs and  deferred tax items on P&C insurance sale.

(2) Tax adjustment to revalue deferred tax assets and liabilities to account for the future impact of lower corporate tax  rates resulting from the "Tax Cuts and Jobs Act", signed into law on December 22, 2017.     

 

Page 9

 

Simmons First National Corporation              SFNC
Reconciliation Of Non-GAAP Financial Measures - End of Period         
For the Quarters Ended               
(Unaudited)  Sept 30  Jun 30  Mar 31  Dec 31  Sept 30
   2018  2018  2018  2017  2017
($ in thousands, except per share data)               
                
Calculation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets      
                
Total common stockholders' equity  $2,183,319   $2,146,908   $2,109,051   $2,084,564   $1,257,199 
Intangible assets:                         
Goodwill   (845,687)   (845,687)   (845,687)   (842,651)   (375,731)
Other intangible assets   (93,975)   (96,720)   (99,504)   (106,071)   (55,501)
Total intangibles   (939,662)   (942,407)   (945,191)   (948,722)   (431,232)
Tangible common stockholders' equity  $1,243,657   $1,204,501   $1,163,860   $1,135,842   $825,967 
                          
Total assets  $16,281,264   $16,165,533   $15,597,309   $15,055,806   $9,535,370 
Intangible assets:                         
Goodwill   (845,687)   (845,687)   (845,687)   (842,651)   (375,731)
Other intangible assets   (93,975)   (96,720)   (99,504)   (106,071)   (55,501)
Total intangibles   (939,662)   (942,407)   (945,191)   (948,722)   (431,232)
Tangible assets  $15,341,602   $15,223,126   $14,652,118   $14,107,084   $9,104,138 
                          
Ratio of equity to assets   13.41%   13.28%   13.52%   13.85%   13.18%
Ratio of tangible common equity to tangible assets   8.11%   7.91%   7.94%   8.05%   9.07%
                          
Calculation of Discount for credit losses and allowance on loans acquired to total loans acquired plus           
discount for credit losses and allowance on loans acquired                         
                          
Credit discount on acquired loans  $53,968   $68,282   $79,087   $89,275   $24,994 
Allowance for loan losses on acquired loans   1,345    2,044    407    418    391 
Total credit discount and ALLL on acquired loans  $55,313   $70,326   $79,494   $89,693   $25,385 
Total loans acquired  $3,790,234   $4,302,760   $4,776,439   $5,163,769   $1,117,424 
Discount and ALLL on acquired loans to acquired loans   1.46%   1.63%   1.66%   1.74%   2.27%
                          
Calculation of Total Allowance and Credit Coverage                         
                          
Allowance for loan losses  $55,358   $51,732   $47,207   $41,668   $42,717 
Total credit discount and ALLL on acquired loans   55,313    70,326    79,494    89,693    25,385 
Total allowance and credit discount  $110,671   $122,058   $126,701   $131,361   $68,102 
Total loans  $11,913,508   $11,436,221   $11,066,822   $10,869,378   $6,328,736 
Total allowance and credit coverage   0.93%   1.07%   1.14%   1.21%   1.08%
                          
Calculation of Tangible Book Value per Share                         
                          
Total common stockholders' equity  $2,183,319   $2,146,908   $2,109,051   $2,084,564   $1,257,199 
Intangible assets:                         
Goodwill   (845,687)   (845,687)   (845,687)   (842,651)   (375,731)
Other intangible assets   (93,975)   (96,720)   (99,504)   (106,071)   (55,501)
Total intangibles   (939,662)   (942,407)   (945,191)   (948,722)   (431,232)
Tangible common stockholders' equity  $1,243,657   $1,204,501   $1,163,860   $1,135,842   $825,967 
Shares of common stock outstanding   92,291,070    92,281,370    92,242,389    92,029,118    64,424,484 
Book value per common share  $23.66   $23.26   $22.86   $22.65   $19.51 
Tangible book value per common share  $13.48   $13.05   $12.62   $12.34   $12.82 

 

Page 10

 

Simmons First National Corporation              SFNC
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date         
For the Quarters Ended               
(Unaudited)  Sept 30  Jun 30  Mar 31  Dec 31  Sept 30
   2018  2018  2018  2017  2017
($ in thousands)               
Calculation of Core Return on Average Assets               
                
Net income  $55,193   $53,562   $51,312   $18,903   $28,852 
Net non-core items, net of taxes, adjustment   1,311    1,098    1,306    23,115    (1,106)
Core earnings  $56,504   $54,660   $52,618   $42,018   $27,746 
                          
Average total assets  $16,040,884   $15,580,697   $15,088,210   $13,897,778   $9,175,607 
                          
Return on average assets   1.37%   1.38%   1.38%   0.54%   1.25%
Core return on average assets   1.40%   1.41%   1.41%   1.20%   1.20%
                          
Calculation of Return on Tangible Common Equity                         
                          
Net income  $55,193   $53,562   $51,312   $18,903   $28,852 
Amortization of intangibles, net of taxes   2,027    2,057    2,096    1,725    1,048 
Total income available to common stockholders  $57,220   $55,619   $53,408   $20,628   $29,900 
                          
Net non-core items, net of taxes   1,311    1,098    1,306    23,115    (1,106)
Core earnings   56,504    54,660    52,618    42,018    27,746 
Amortization of intangibles, net of taxes   2,027    2,057    2,096    1,725    1,048 
Total core income available to common stockholders  $58,531   $56,717   $54,714   $43,743   $28,794 
                          
Average common stockholders' equity  $2,176,565   $2,137,097   $2,103,052   $1,931,804   $1,255,694 
Average intangible assets:                         
Goodwill   (845,687)   (845,687)   (844,148)   (731,661)   (378,387)
Other intangibles   (95,576)   (98,152)   (104,718)   (113,770)   (57,232)
Total average intangibles   (941,263)   (943,839)   (948,866)   (845,431)   (435,619)
Average tangible common stockholders' equity  $1,235,302   $1,193,258   $1,154,186   $1,086,373   $820,075 
                          
Return on average common equity   10.06%   10.05%   9.90%   3.88%   9.12%
Return on tangible common equity   18.38%   18.70%   18.77%   7.53%   14.47%
Core return on average common equity   10.30%   10.26%   10.15%   8.63%   8.77%
Core return on tangible common equity   18.80%   19.06%   19.23%   15.97%   13.93%
                          
Calculation of Efficiency Ratio (1)                         
                          
Non-interest expense  $100,253   $98,507   $98,073   $108,490   $66,159 
Non-core non-interest expense adjustment   (1,774)   (1,483)   (1,772)   (19,160)   (862)
Other real estate and foreclosure expense adjustment   (538)   (1,382)   (1,020)   (865)   (1,071)
Amortization of intangibles adjustment   (2,745)   (2,785)   (2,837)   (2,839)   (1,724)
Efficiency ratio numerator  $95,196   $92,857   $92,444   $85,626   $62,502 
                          
Net-interest income  $142,968   $136,837   $134,966   $126,919   $78,819 
Non-interest income   33,725    38,048    37,535    36,629    36,332 
Non-core non-interest income adjustment   -    4    (4)   -    (3,383)
Fully tax-equivalent adjustment   1,393    1,308    1,130    1,925    1,751 
(Gain) loss on sale of securities   (54)   7    (6)   1,243    (3)
Efficiency ratio denominator  $178,032   $176,204   $173,621   $166,716   $113,516 
                          
Efficiency ratio (1)   53.47%   52.70%   53.24%   51.36%   55.06%
                          
Calculation of Core Net Interest Margin                         
                          
Net interest income  $142,968   $136,837   $134,966   $126,919   $78,819 
Fully tax-equivalent adjustment   1,393    1,308    1,130    1,925    1,751 
Fully tax-equivalent net interest income   144,361    138,145    136,096    128,844    80,570 
                          
Total accretable yield   (10,006)   (10,113)   (11,294)   (15,684)   (2,890)
Core net interest income  $134,355   $128,032   $124,802   $113,160   $77,680 
Average earning assets  $14,373,253   $13,876,557   $13,251,549   $12,145,003   $8,182,292 
                          
Net interest margin   3.98%   3.99%   4.17%   4.21%   3.91%
Core net interest margin   3.71%   3.70%   3.82%   3.70%   3.77%
                          
Calculation of Core Loan Yield                         
                          
Loan interest income  $162,438   $150,253   $143,350   $132,617   $77,457 
Total accretable yield   (10,006)   (10,113)   (11,294)   (15,684)   (2,890)
Core loan interest income  $152,432   $140,140   $132,056   $116,933   $74,567 
Average loan balance  $11,641,843   $11,159,872   $10,819,324   $9,772,043   $6,261,507 
                          
Core loan yield   5.19%   5.04%   4.95%   4.75%   4.72%

 

(1) Efficiency ratio is noninterest expense before foreclosed property expense and amortization of intangibles as a percent of net interest income (fully

taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and non-core items.  

 

Page 11

 

Simmons First National Corporation              SFNC
Reconciliation Of Non-GAAP Financial Measures - Year-to-Date            
For the Quarters Ended               
(Unaudited)  Sept 30  Jun 30  Mar 31  Dec 31  Sept 30
   2018  2018  2018  2017  2017
($ in thousands)               
Calculation of Core Return on Average Assets               
                
Net income  $160,067   $104,874   $51,312   $92,940   $74,037 
Net non-core items, net of taxes, adjustment   3,715    2,404    1,306    26,109    2,994 
Core earnings  $163,782   $107,278   $52,618   $119,049   $77,031 
                          
Average total assets  $15,573,762   $15,334,453   $15,088,210   $10,074,951   $8,800,675 
                          
Return on average assets   1.37%   1.38%   1.38%   0.92%   1.12%
Core return on average assets   1.41%   1.41%   1.41%   1.18%   1.17%
                          
Calculation of Return on Tangible Common Equity                         
                          
Net income  $160,067   $104,874   $51,312   $92,940   $74,037 
Amortization of intangibles, net of taxes   6,180    4,153    2,096    4,659    2,934 
Total income available to common stockholders  $166,247   $109,027   $53,408   $97,599   $76,971 
                          
Net non-core items, net of taxes   3,715    2,404    1,306    26,109    2,994 
Core earnings   163,782    107,278    52,618    119,049    77,031 
Amortization of intangibles, net of taxes   6,180    4,153    2,096    4,659    2,934 
Total core income available to common stockholders  $169,962   $111,431   $54,714   $123,708   $79,965 
                          
Average common stockholders' equity  $2,138,818   $2,120,075   $2,103,052   $1,390,815   $1,210,487 
Average intangible assets:                         
Goodwill   (845,180)   (844,917)   (844,148)   (455,453)   (363,383)
Other intangibles   (99,448)   (101,435)   (104,718)   (68,896)   (53,941)
Total average intangibles   (944,628)   (946,352)   (948,866)   (524,349)   (417,324)
Average tangible common stockholders' equity  $1,194,190   $1,173,723   $1,154,186   $866,466   $793,163 
                          
Return on average common equity   10.01%   9.98%   9.90%   6.68%   8.18%
Return on tangible common equity   18.61%   18.73%   18.77%   11.26%   12.97%
Core return on average common equity   10.24%   10.20%   10.15%   8.56%   8.51%
Core return on tangible common equity   19.03%   19.14%   19.23%   14.28%   13.48%
                          
Calculation of Efficiency Ratio (1)                         
                          
Non-interest expense  $296,833   $196,580   $98,073   $312,379   $203,889 
Non-core non-interest expense adjustment   (5,029)   (3,255)   (1,772)   (27,357)   (8,197)
Other real estate and foreclosure expense adjustment   (2,940)   (2,402)   (1,020)   (3,042)   (2,177)
Amortization of intangibles adjustment   (8,367)   (5,622)   (2,837)   (7,666)   (4,827)
Efficiency ratio numerator  $280,497   $185,301   $92,444   $274,314   $188,688 
                          
Net-interest income  $414,771   $271,803   $134,966   $354,930   $228,011 
Non-interest income   109,308    75,583    37,535    138,765    102,136 
Non-core non-interest income adjustment   -    -    (4)   (3,972)   (3,972)
Fully tax-equivalent adjustment   3,831    2,438    1,130    7,723    5,798 
(Gain) loss on sale of securities   (53)   1    (6)   (1,059)   (2,302)
Efficiency ratio denominator  $527,857   $349,825   $173,621   $496,387   $329,671 
                          
Efficiency ratio (1)   53.14%   52.97%   53.24%   55.27%   57.25%
                          
Calculation of Core Net Interest Margin                         
                          
Net interest income  $414,771   $271,803   $134,966   $354,930   $228,011 
Fully tax-equivalent adjustment   3,831    2,438    1,130    7,723    5,798 
Fully tax-equivalent net interest income   418,602    274,241    136,096    362,653    233,809 
                          
Total accretable yield   (31,413)   (21,407)   (11,294)   (27,793)   (12,109)
Core net interest income  $387,189   $252,834   $124,802   $334,860   $221,700 
Average earning assets  $13,837,639   $13,564,056   $13,251,549   $8,908,418   $7,829,548 
                          
Net interest margin   4.04%   4.08%   4.17%   4.07%   3.99%
Core net interest margin   3.74%   3.76%   3.82%   3.76%   3.79%
                          
Calculation of Core Loan Yield                         
                          
Loan interest income  $456,041   $293,603   $143,350   $352,351   $219,734 
Total accretable yield   (31,413)   (21,407)   (11,294)   (27,793)   (12,109)
Core loan interest income  $424,628   $272,196   $132,056   $324,558   $207,625 
Average loan balance  $11,209,992   $10,989,600   $10,819,324   $6,918,293   $5,967,036 
                          
Core loan yield   5.06%   4.99%   4.95%   4.69%   4.65%

 

(1) Efficiency ratio is noninterest expense before foreclosed property expense and amortization of intangibles as a percent of net interest income (fully

taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and non-core items.  

 

Page 12

 

 

 

 

 

 GRAPHIC 3 logo.jpg GRAPHIC begin 644 logo.jpg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end