Exhibit 99.1
| For Immediate Release: | October 22, 2019 |
SIMMONS REPORTS THIRD QUARTER 2019 EARNINGS AND ANNOUNCES SHARE REPURCHASE PROGRAM
Pine Bluff, AR – Simmons First National Corporation (NASDAQ: SFNC) today announced net income of $81.8 million for the quarter ended September 30, 2019, compared to $55.2 million for the same period in 2018, an increase of $26.6 million, or 48.3%. Diluted earnings per share were $0.84, an increase of $0.25, or 42.4%, compared to the third quarter 2018. Included in third quarter 2019 results were $2.1 million in net after-tax merger-related, early retirement program and branch right-sizing costs. Excluding the impact of these items, core earnings were $84.0 million for the quarter ended September 30, 2019, compared to $56.5 million for the quarter ended September 30, 2018, an increase of $27.5 million, or 48.6%. Core diluted earnings per share were $0.87, an increase of $0.26, or 42.6%, from the same period in 2018.
Year-to-date net income for the first nine months of 2019 was $185.1 million, or $1.94 diluted earnings per share, compared to $160.1 million, or $1.72 diluted earnings per share, for the same period in 2018. Excluding $13.4 million in net after-tax merger-related, early retirement program and branch right-sizing costs, year-to-date core earnings for 2019 were $198.5 million, an increase of $34.7 million compared to the same period last year. Core diluted earnings per share were $2.08, an increase of $0.32, or 18.2%, from the same period in 2018.
The Company had several notable events that affected its operating results for the third quarter 2019:
| • | Sale of $114 million of primarily CRE loans resulting in a net loss of $5.1 million. |
| • | Sale of Visa Inc. class B common stock resulting in a gain of $42.9 million. |
| • | Related to the Visa stock sale gain, contribution of $4 million to the Simmons First Foundation, so it may continue its work to provide community development grants throughout the Company’s footprint. |
| • | Provision expense increased $15 million primarily related to the charge-off of a participation interest in a shared national credit to White Star Petroleum, LLC (“White Star”) (discussed further below). |
| ($ in millions) | Pre-tax |
After-tax (1) | Income Statement Line Item | |||||||
| Loss on sale of primarily CRE loans | ($5.1) | ($3.8) | Other income | |||||||
| Gain on sale of Visa Inc. class B common stock | $42.9 | $31.7 | Other income | |||||||
| Contribution to Simmons First Foundation | ($4.0) | ($3.0) | Other operating expenses | |||||||
| Additional provision for White Star charge-off | ($15.0) | ($11.1) | Provision for loan losses | |||||||
| (1) | Effective tax rate of 26.135% used for after-tax calculations. |
“We are very pleased with our operating results this quarter,” said George A. Makris, Jr., chairman and CEO of Simmons First National Corporation. “We continue to have very strong loan demand opportunities although our customers are displaying cautious optimism regarding the uncertainty in the world economy today and interest rate adjustments that may not appear to be related precisely to economic data.
“We are beginning to see significant results from our Next Generation Banking technology investment. We have successfully converted our system processing to a hosted environment increasing the security and reliability of our systems. Also, on October 16th, we launched our new mobile banking app. The customer response has been phenomenal. We will continue to expand our digital offerings over the coming months.”
P.O. BOX 7009 501 MAIN STREET PINE BLUFF, ARKANSAS 71611-7009 (870) 541-1000 www.simmonsbank.com
Makris continued, “I have mentioned for some time now that asset quality is one of our top priorities, and the loss we experienced as a result of the White Star bankruptcy is certainly disappointing. In response to it, we have, among other things, made changes to our credit underwriting and approval processes that are consistent with the conservative credit culture at Simmons.
“We are on target to complete our previously announced acquisition of The Landrum Company on October 31 with an expected system conversion during the 1st quarter of 2020. We are excited about the expanded market presence in several states because of this merger.”
| Selected Highlights: | 3rd Qtr 2019 | 2nd Qtr 2019 | 3rd Qtr 2018 | |||
| Net income | $81.8 million | $55.6 million | $55.2 million | |||
| Diluted earnings per share | $0.84 | $0.58 | $0.59 | |||
| Return on avg assets | 1.83% | 1.28% | 1.37% | |||
| Return on avg common equity | 13.70% | 9.48% | 10.06% | |||
| Return on tangible common equity | 24.89% | 17.40% | 18.38% | |||
| Core earnings (1) | $84.0 million | $65.5 million | $56.5 million | |||
| Diluted core earnings per share (1) | $0.87 | $0.68 | $0.61 | |||
| Core return on avg assets (1) | 1.88% | 1.51% | 1.40% | |||
| Core return on avg common equity (1) | 14.06% | 11.16% | 10.30% | |||
| Core return on tangible common equity (1) | 25.52% | 20.36% | 18.80% | |||
| Efficiency ratio (2) | 43.77% | 49.88% | 53.47% |
| (1) | Core earnings excludes non-core items, and is a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below. |
| (2) | Efficiency ratio is noninterest expense before foreclosed property expense, amortization of intangibles as a percent of net interest income (fully taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and non-core items, and is a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below. |
Loans
| ($ in billions) | 3rd Qtr 2019 | 2nd Qtr 2019 | 3rd Qtr 2018 | |||
| Total loans | $13.0 | $13.1 | $11.9 | |||
| Legacy loans (excludes loans acquired) | $9.6 | $9.3 | $8.1 | |||
| Loans acquired | $3.4 | $3.9 | $3.8 |
Total loans, including those acquired, were $13.0 billion at September 30, 2019, an increase of $1.1 billion, or 9.7%, compared to $11.9 billion at September 30, 2018, primarily due to the Reliance Bank merger completed in the second quarter 2019. On a linked-quarter basis (September 30, 2019 compared to June 30, 2019), total loans decreased $124.1 million, or 0.9%, primarily due to a reduction in the CRE portfolio. During the third quarter 2019, the Company reduced its real estate portfolio by $165 million as part of an effort to manage its CRE concentration.
Deposits
| ($ in billions) | 3rd Qtr 2019 | 2nd Qtr 2019 | 3rd Qtr 2018 | |||
| Total deposits | $13.5 | $13.5 | $12.1 | |||
| Non-time deposits | $10.4 | $10.2 | $9.6 | |||
| Time deposits | $3.1 | $3.3 | $2.5 |
Total deposits were $13.5 billion at September 30, 2019, an increase of $1.4 billion, or 11.4%, since September 30, 2018, primarily due to the Reliance Bank merger completed during the second quarter 2019. Total deposits remained flat compared to June 30, 2019 as a result of the increase in non-time deposits being completely offset by a decrease in time deposits.
Net Interest Income
| 3rd Qtr 2019 | 2nd Qtr 2019 | 1st Qtr 2019 | 4th Qtr 2018 | 3rd Qtr 2018 | ||||||
| Loan yield (1) | 5.47% | 5.58% | 5.53% | 5.39% | 5.54% | |||||
| Core loan yield (1) (2) | 5.19% | 5.26% | 5.29% | 5.25% | 5.19% | |||||
| Security yield (1) | 2.83% | 3.02% | 3.09% | 2.87% | 2.74% | |||||
| Cost of interest bearing deposits | 1.40% | 1.37% | 1.31% | 1.20% | 1.05% | |||||
| Cost of deposits (3) | 1.09% | 1.07% | 1.02% | 0.93% | 0.81% | |||||
| Cost of borrowed funds | 2.52% | 2.50% | 2.73% | 2.64% | 2.48% | |||||
| Net interest margin (1) | 3.81% | 3.92% | 3.85% | 3.76% | 3.98% | |||||
| Core net interest margin (1) (2) | 3.58% | 3.66% | 3.67% | 3.66% | 3.71% |
| (1) | Fully tax equivalent. |
| (2) | Core loan yield and core net interest margin exclude accretion, and are non-GAAP measurements. |
| (3) | Includes non-interest bearing deposits. |
The Company’s net interest income for the third quarter of 2019 was $150.2 million, an increase of $7.2 million, or 5.0%, from the same period of 2018. Included in interest income was the yield accretion recognized on loans acquired of $9.3 million and $10.0 million for the third quarters of 2019 and 2018, respectively. Of this quarter’s yield accretion, $4.4 million, or 48%, was accretable credit mark related and $4.9 million, or 52%, was interest mark related.
Net interest margin (FTE) was 3.81% for the quarter ended September 30, 2019, an 11 basis point decrease from the second quarter of 2019. The Company’s core net interest margin, which excludes the accretion, was 3.58% for the third quarter of 2019, an 8 basis point decrease from the second quarter of 2019. The decrease in the net interest margin during the third quarter of 2019 was due to a timing difference between the Company’s ability to manage the rate decrease in its variable rate loan portfolio and its repricing of interest bearing deposits.
Non-Interest Income
Non-interest income for the third quarter of 2019 was $83.8 million, an increase of $50.1 million compared to the same period in the previous year. The majority of the increase was related to the gain on sale of the Visa Inc. class B common stock of $42.9 million recorded in Other Income. In addition, as part of a plan to rebalance its investment portfolio, the Company sold approximately $89 million of bonds during the quarter resulting in a gain on the sale of securities of $7.3 million.
| Selected Non-Interest
Income Items ($ in millions) | 3rd Qtr 2019 | 2nd Qtr 2019 | 1st Qtr 2019 | 4th Qtr 2018 | 3rd Qtr 2018 | |||||
| Service charges on deposit accounts | $10.8 | $10.6 | $10.1 | $11.3 | $10.8 | |||||
| Mortgage lending income | $4.5 | $3.7 | $2.8 | $1.5 | $1.5 | |||||
| SBA lending income | $1.0 | $0.9 | $0.5 | $0.2 | $0.3 | |||||
| Debit and credit card fees | $7.1 | $7.2 | $6.1 | $6.5 | $6.8 | |||||
| Gain (loss) on sale of securities | $7.4 | $2.8 | $2.7 | - | $0.1 | |||||
| Other income | $43.8 | $5.1 | $3.1 | $5.7 | $4.9 |
Non-Interest Expense
Non-interest expense for the third quarter of 2019 was $106.9 million, an increase of $6.6 million compared to the third quarter of 2018. Included in this quarter were $2.9 million of pre-tax non-core items, that mostly consisted of merger-related costs. Excluding these expenses, core non-interest expense was $104.0 million for the third quarter of 2019, an increase of $5.5 million compared to the same period in 2018. The increase is primarily due to the $4 million donation to the Simmons First Foundation and incremental software and technology costs of $2.2 million due to the Company’s Next Generation Banking technology initiative.
| Selected Non-Interest
Expense Items ($ in millions) | 3rd Qtr 2019 | 2nd Qtr 2019 | 1st Qtr 2019 | 4th Qtr 2018 | 3rd Qtr 2018 | |||||
| Salaries and employee benefits | $52.1 | $56.1 | $56.4 | $49.2 | $55.5 | |||||
| Merger related costs | $2.6 | $7.5 | $1.5 | $0.8 | $0.8 | |||||
| Other operating expenses | $37.9 | $32.9 | $30.1 | $30.2 | $29.7 | |||||
| Core salaries and employee benefits | $51.9 | $53.2 | $56.0 | $49.1 | $55.5 | |||||
| Core merger related costs | - | - | - | - | - | |||||
| Core other operating expenses | $37.8 | $30.0 | $30.1 | $30.3 | $28.7 |
The efficiency ratio for the third quarter of 2019 was 43.77% compared to 53.47% for the same period in 2018.
Asset Quality
| 3rd Qtr 2019 | 2nd Qtr 2019 | 1st Qtr 2019 | 4th Qtr 2018 | 3rd Qtr 2018 | ||||||
| Allowance for loan losses to total loans | 0.68% | 0.68% | 0.68% | 0.67% | 0.68% | |||||
| Allowance for loan losses to non-performing loans | 91% | 101% | 97% | 164% | 136% | |||||
| Non-performing loans to total loans | 0.76% | 0.67% | 0.70% | 0.41% | 0.50% | |||||
| Net charge-off ratio (annualized) | 0.78% | 0.14% | 0.20% | 0.35% | 0.36% | |||||
| Net charge-off ratio YTD (annualized) | 0.38% | 0.17% | 0.20% | 0.28% | 0.26% |
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, 2019, the allowance for loan losses for legacy loans was $66.0 million. The allowance for loan losses for loans acquired was $597,000 and the acquired loan discount mark was $60.4 million. The allowance for loan losses and discount mark provides a total of $127.0 million of coverage, which equates to a total coverage ratio of 0.97% of gross loans. The ratio of discount mark and related allowance to loans acquired was 1.78%.
Provision for loan losses for the third quarter of 2019 was $22.0 million, increases of $11.6 million when compared to September 30, 2018 and $14.9 million when compared to the second quarter of 2019. The sequential increase in the provision for loan losses was due to recording a special provision of $15.0 million during the third quarter, specifically related to the White Star charge-off.
Simmons Bank was a participant in a shared national credit (“SNC”) to White Star. White Star became the subject of bankruptcy proceedings earlier this year, and on September 30, 2019, the bankruptcy court handling the matter authorized the sale of White Star assets through a proceeding under Section 363 of the U.S. Bankruptcy Code to a third party. Our portion of the SNC was $19.1 million. Based on the anticipated net proceeds from the pending bankruptcy sale, our loss recognized in the third quarter was $14.7 million.
Foreclosed Assets and Other Real Estate Owned
At September 30, 2019, foreclosed assets and other real estate owned were $19.6 million, a decrease of $3.1 million, or 13.6%, compared to the same period in 2018 and a decrease of $5.2 million, or 20.9%, from June 30, 2019. The composition of these assets is divided into three types:
| ($ in millions) | 3rd Qtr 2019 | 2nd Qtr 2019 | 1st Qtr 2019 | 4th Qtr 2018 | 3rd Qtr 2018 | |||||
| Closed bank branches, branch sites & associate relocation | $5.9 | $6.5 | $7.6 | $8.0 | $9.6 | |||||
| Foreclosed assets - acquired | $10.1 | $13.3 | $6.2 | $11.5 | $8.0 | |||||
| Foreclosed assets - legacy | $3.6 | $5.0 | $5.2 | $6.1 | $5.1 |
Capital
| 3rd Qtr 2019 | 2nd Qtr 2019 | 1st Qtr 2019 | 4th Qtr 2018 | 3rd Qtr 2018 | ||||||
| Stockholders’ equity to total assets | 14.3% | 13.8% | 14.3% | 13.6% | 13.4% | |||||
| Tangible common equity to tangible assets | 9.1% | 8.5% | 9.0% | 8.4% | 8.1% | |||||
| Regulatory tier 1 leverage ratio | 9.1% | 8.9% | 9.1% | 8.8% | 8.7% | |||||
| Regulatory total risk-based capital ratio | 13.2% | 12.7% | 13.6% | 13.3% | 13.1% |
At September 30, 2019, common stockholders' equity was $2.5 billion. Book value per share was $26.36 and tangible book value per share was $15.73 at September 30, 2019, compared to $23.66 and $13.48, respectively, at September 30, 2018.
Current Expected Credit Losses (“CECL”)
In 2016, new accounting guidance was issued that introduced a new credit loss methodology, the CECL methodology, which requires earlier recognition of credit losses, while also providing additional transparency about credit risk.
The CECL methodology utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for loans, held-to-maturity debt securities and other receivables measured at amortized cost at the time the financial asset is originated or acquired. The allowance for credit losses is adjusted each period for changes in expected lifetime credit losses. This methodology replaces the multiple existing impairment methods in current guidance, which generally require that a loss be incurred before it is recognized. Within the life cycle of a loan or other financial asset, this new guidance will generally result in the earlier recognition of the provision for credit losses and the related allowance for credit losses than current practice. For available-for-sale debt securities that the Company intends to hold and where fair value is less than cost, credit-related impairment, if any, will be recognized through an allowance for credit losses and adjusted each period for changes in credit risk. The CECL guidance will be effective for the Company as of January 1, 2020.
The CECL methodology represents a significant change from existing guidance and is expected to result in material changes to the Company’s accounting for financial instruments. The Company is continuing to evaluate the effect that the new CECL methodology will have on its consolidated financial statements and related disclosures. Based on a preliminary analysis performed, the Company estimates that the allowance for credit losses will increase by approximately 130% to 170% over the allowance based on June 30, 2019 loan balances. When purchase discounts are considered, the increase is expected to be 10% to 30% over the June 30, 2019 total credit coverage ratio. These estimates are based upon the Company’s analysis of current macroeconomic conditions, assumptions and forecasts at this point in time and do not include the impact of the Company’s pending merger with The Landrum Company. These estimates are subject to change based on continuing review and challenge of the models, methodologies and judgements. The impact at adoption will also be influenced by the loan portfolio composition and quality at the adoption date, as well as, macroeconomic conditions and forecast at that time. The impact will be reflected as an adjustment to beginning retained earnings, net of income taxes, at adoption. Federal banking regulatory agencies have provided relief for an initial capital decrease at adoption by allowing the impact to be phased-in over three years on a straight-line basis. The adoption of CECL in 2020 could also impact the Company’s ongoing earnings, perhaps materially.
Implementation efforts have been underway, including model development and validation, fulfillment of additional data needs for new disclosures and reporting requirements, and drafting of accounting policies. Model validations and user acceptance testing commenced in the first quarter of 2019, with loss forecast modeling taking place in the third quarter of 2019. The Company intends to utilize a single macroeconomic scenario in estimating expected credit losses. Reasonable and supportable forecast periods and methods to revert to historical averages to arrive at lifetime expected credit losses vary by product. The Company has completed decisions around model methodologies and relevant elections are being finalized.
Share Repurchase Program
The Company also announced today that its board of directors has authorized a new stock repurchase program (“Program”) under which the Company may repurchase up to $60,000,000 of its Class A common stock currently issued and outstanding. The Program will terminate on October 31, 2021 (unless terminated sooner). The new Program replaces the Company’s existing stock repurchase program, which was announced on July 23, 2012.
“By leveraging our strong balance sheet to responsibly reduce our number of outstanding shares, we expect to be able to both increase shareholder value and maintain sufficient resources to fund our operations and growth opportunities as they arise,” said George Makris, Jr., Simmons’ chairman and chief executive officer. “We believe our stock, particularly at current trading prices, continues to be an attractive investment, and the action of our board demonstrates our commitment to, and confidence in, the company’s future.”
Under the Program, the Company may repurchase shares of its common stock through open market and privately negotiated transactions or otherwise. The timing, pricing, and amount of any repurchases under the Program will be determined by the Company’s management at its discretion based on a variety of factors, including, but not limited to, trading volume and market price of the Company’s common stock, corporate considerations, the Company’s working capital and investment requirements, general market and economic conditions, and legal requirements. The Program does not obligate the Company to repurchase any common stock and may be modified, discontinued, or suspended at any time without prior notice. The Company anticipates funding for this Program to come from available sources of liquidity, including cash on hand and future cash flow.
Simmons First National Corporation
Simmons First National Corporation is a financial holding company headquartered in Pine Bluff, Arkansas, with total consolidated assets of approximately $17.8 billion as of September 30, 2019, conducting financial operations in Arkansas, Colorado, Illinois, 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 today, Tuesday, October 22, 2019. 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 2285967. 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 adjust GAAP performance measures to, among other things, include the tax benefit associated with revenue items that are tax-exempt, as well as exclude from income available to common shareholders certain expenses related to significant non-core activities, including merger-related expenses, expenses related to the Company’s early retirement program, and branch right-sizing expenses. In addition, the Company also presents certain figures based on tangible common stockholders’ equity, which excludes goodwill and other intangible assets. The Company’s management believes that these non-GAAP financial measures are useful to investors because they present the results of the Company’s ongoing operations without the effect of mergers or other items not central to the Company’s ongoing business, as well as normalizing for tax effects. Management, therefore, 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
Some of the statements in this news release may not be based on historical facts and should be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by reference to future periods or by the use of forward-looking terminology, such as “believe,” “budget,” “expect,” “foresee,” “anticipate,” “intend,” “indicate,” “target,” “estimate,” “plan,” “project,” “continue,” “contemplate,” “positions,” “prospects,” “predict,” or “potential,” by future conditional verbs such as “will,” “would,” “should,” “could,” “might” or “may,” or by variations of such words or by similar expressions. These forward-looking statements include, without limitation, statements relating to Simmons’ future growth, revenue, assets, asset quality, profitability, net interest margin, non-interest revenue, share repurchase program, the adequacy of the allowance for loan losses, and the effect of certain new accounting standards (including, without limitation, the CECL methodology and its anticipated effect on the provision and allowance for credit losses) on the Company’s financial statements. Any forward-looking statement speaks only as of the date of this news release, and Simmons undertakes 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 are based on various assumptions and involve inherent risk and uncertainties. Various factors, including, but not limited to, changes in economic conditions, credit quality, interest rates, loan demand, deposit flows, real estate values, the assumptions used in making the forward-looking statements, the securities markets generally or the price of Simmons common stock specifically, information technology affecting the financial industry, the assumptions, forecasts, models, and methodology used to calculate the expected impact of CECL on the Company’s financial 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 for the year ended December 31, 2018, which has been filed with, and is available from, the Securities and Exchange Commission.
####
FOR MORE INFORMATION CONTACT:
Stephen C. Massanelli
EVP, Chief Administrative Officer and Investor Relations Officer
Simmons First National Corporation
steve.massanelli@simmonsbank.com
| 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) | 2019 | 2019 | 2019 | 2018 | 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and non-interest bearing balances due from banks | $ | 161,440 | $ | 145,491 | $ | 151,112 | $ | 171,792 | $ | 125,231 | ||||||||||
| Interest bearing balances due from banks and federal funds sold | 368,530 | 509,765 | 340,049 | 661,666 | 388,573 | |||||||||||||||
| Cash and cash equivalents | 529,970 | 655,256 | 491,161 | 833,458 | 513,804 | |||||||||||||||
| Interest bearing balances due from banks - time | 5,041 | 5,041 | 4,684 | 4,934 | 3,954 | |||||||||||||||
| Investment securities - held-to-maturity | 42,237 | 47,455 | 61,435 | 289,194 | 323,306 | |||||||||||||||
| Investment securities - available-for-sale | 2,356,134 | 2,342,387 | 2,240,111 | 2,151,752 | 1,997,814 | |||||||||||||||
| Mortgage loans held for sale | 50,099 | 34,999 | 18,480 | 26,799 | 48,195 | |||||||||||||||
| Other assets held for sale | 383 | 397 | 397 | 1,790 | 5,136 | |||||||||||||||
| Loans: | ||||||||||||||||||||
| Legacy loans | 9,643,365 | 9,262,497 | 8,684,550 | 8,430,388 | 8,123,274 | |||||||||||||||
| Allowance for loan losses | (65,993 | ) | (63,067 | ) | (59,243 | ) | (56,599 | ) | (55,358 | ) | ||||||||||
| Loans acquired, net of discount and allowance | 3,359,587 | 3,864,516 | 3,056,187 | 3,292,783 | 3,734,921 | |||||||||||||||
| Net loans | 12,936,959 | 13,063,946 | 11,681,494 | 11,666,572 | 11,802,837 | |||||||||||||||
| Premises and equipment | 378,678 | 370,551 | 333,740 | 295,060 | 287,246 | |||||||||||||||
| Foreclosed assets and other real estate owned | 19,576 | 24,761 | 18,952 | 25,565 | 22,664 | |||||||||||||||
| Interest receivable | 53,966 | 54,781 | 51,796 | 49,938 | 51,509 | |||||||||||||||
| Bank owned life insurance | 234,655 | 233,345 | 192,736 | 193,170 | 192,680 | |||||||||||||||
| Goodwill | 926,648 | 926,450 | 845,687 | 845,687 | 845,687 | |||||||||||||||
| Other intangible assets | 101,149 | 104,096 | 88,694 | 91,334 | 93,975 | |||||||||||||||
| Other assets | 123,016 | 73,970 | 62,272 | 68,084 | 92,457 | |||||||||||||||
| Total assets | $ | 17,758,511 | $ | 17,937,435 | $ | 16,091,639 | $ | 16,543,337 | $ | 16,281,264 | ||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Non-interest bearing transaction accounts | $ | 3,044,330 | $ | 2,954,032 | $ | 2,674,034 | $ | 2,672,405 | $ | 2,778,670 | ||||||||||
| Interest bearing transaction accounts and savings deposits | 7,337,571 | 7,258,005 | 6,666,823 | 6,830,191 | 6,776,330 | |||||||||||||||
| Time deposits | 3,086,108 | 3,304,176 | 2,648,674 | 2,896,156 | 2,533,506 | |||||||||||||||
| Total deposits | 13,468,009 | 13,516,213 | 11,989,531 | 12,398,752 | 12,088,506 | |||||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 116,536 | 130,470 | 120,213 | 95,792 | 109,213 | |||||||||||||||
| Other borrowings | 1,098,395 | 1,324,094 | 1,169,989 | 1,345,450 | 1,420,917 | |||||||||||||||
| Subordinated notes and debentures | 354,223 | 354,132 | 354,041 | 353,950 | 372,934 | |||||||||||||||
| Other liabilities held for sale | - | 162 | 162 | 162 | 424 | |||||||||||||||
| Accrued interest and other liabilities | 174,277 | 142,851 | 155,382 | 102,797 | 105,951 | |||||||||||||||
| Total liabilities | 15,211,440 | 15,467,922 | 13,789,318 | 14,296,903 | 14,097,945 | |||||||||||||||
| Stockholders' equity: | ||||||||||||||||||||
| Common stock | 966 | 966 | 926 | 923 | 923 | |||||||||||||||
| Surplus | 1,708,058 | 1,705,262 | 1,599,566 | 1,597,944 | 1,597,261 | |||||||||||||||
| Undivided profits | 814,338 | 747,969 | 707,829 | 674,941 | 633,175 | |||||||||||||||
| Accumulated other comprehensive income (loss): | ||||||||||||||||||||
| Unrealized accretion (depreciation) on AFS securities | 23,709 | 15,316 | (6,000 | ) | (27,374 | ) | (48,040 | ) | ||||||||||||
| Total stockholders' equity | 2,547,071 | 2,469,513 | 2,302,321 | 2,246,434 | 2,183,319 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 17,758,511 | $ | 17,937,435 | $ | 16,091,639 | $ | 16,543,337 | $ | 16,281,264 | ||||||||||
| 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) | 2019 | 2019 | 2019 | 2018 | 2018 | |||||||||||||||
| ($ in thousands, except per share data) | ||||||||||||||||||||
| INTEREST INCOME | ||||||||||||||||||||
| Loans | $ | 179,971 | $ | 178,122 | $ | 159,440 | $ | 159,996 | $ | 162,438 | ||||||||||
| Interest bearing balances due from banks and federal funds sold | 1,586 | 1,121 | 2,154 | 2,168 | 1,405 | |||||||||||||||
| Investment securities | 15,367 | 16,594 | 17,312 | 15,760 | 14,640 | |||||||||||||||
| Mortgage loans held for sale | 382 | 332 | 210 | 372 | 501 | |||||||||||||||
| TOTAL INTEREST INCOME | 197,306 | 196,169 | 179,116 | 178,296 | 178,984 | |||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||
| Time deposits | 15,573 | 14,606 | 12,320 | 11,273 | 8,017 | |||||||||||||||
| Other deposits | 21,363 | 20,190 | 18,430 | 17,489 | 16,373 | |||||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 249 | 257 | 136 | 121 | 104 | |||||||||||||||
| Other borrowings | 5,381 | 6,219 | 6,793 | 7,134 | 6,240 | |||||||||||||||
| Subordinated notes and debentures | 4,576 | 4,541 | 4,411 | 4,498 | 5,282 | |||||||||||||||
| TOTAL INTEREST EXPENSE | 47,142 | 45,813 | 42,090 | 40,515 | 36,016 | |||||||||||||||
| NET INTEREST INCOME | 150,164 | 150,356 | 137,026 | 137,781 | 142,968 | |||||||||||||||
| Provision for loan losses | 21,973 | 7,079 | 9,285 | 9,620 | 10,345 | |||||||||||||||
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 128,191 | 143,277 | 127,741 | 128,161 | 132,623 | |||||||||||||||
| NON-INTEREST INCOME | ||||||||||||||||||||
| Trust income | 6,108 | 5,794 | 5,708 | 5,980 | 6,277 | |||||||||||||||
| Service charges on deposit accounts | 10,825 | 10,557 | 10,068 | 11,263 | 10,837 | |||||||||||||||
| Other service charges and fees | 1,308 | 1,312 | 1,289 | 1,501 | 1,201 | |||||||||||||||
| Mortgage lending income | 4,509 | 3,656 | 2,823 | 1,457 | 1,521 | |||||||||||||||
| SBA lending income | 956 | 895 | 497 | 186 | 304 | |||||||||||||||
| Investment banking income | 513 | 360 | 618 | 829 | 664 | |||||||||||||||
| Debit and credit card fees | 7,059 | 7,212 | 6,098 | 6,547 | 6,820 | |||||||||||||||
| Bank owned life insurance income | 1,302 | 1,260 | 795 | 1,105 | 1,105 | |||||||||||||||
| Gain on sale of securities, net | 7,374 | 2,823 | 2,740 | 8 | 54 | |||||||||||||||
| Other income | 43,821 | 5,137 | 3,125 | 5,712 | 4,942 | |||||||||||||||
| TOTAL NON-INTEREST INCOME | 83,775 | 39,006 | 33,761 | 34,588 | 33,725 | |||||||||||||||
| NON-INTEREST EXPENSE | ||||||||||||||||||||
| Salaries and employee benefits | 52,065 | 56,128 | 56,367 | 49,193 | 55,515 | |||||||||||||||
| Occupancy expense, net | 8,342 | 6,919 | 7,475 | 7,016 | 7,713 | |||||||||||||||
| Furniture and equipment expense | 4,898 | 4,206 | 3,358 | 4,139 | 3,761 | |||||||||||||||
| Other real estate and foreclosure expense | 1,125 | 591 | 637 | 1,540 | 538 | |||||||||||||||
| Deposit insurance | (2 | ) | 2,510 | 2,040 | 2,489 | 2,248 | ||||||||||||||
| Merger-related costs | 2,556 | 7,522 | 1,470 | 797 | 804 | |||||||||||||||
| Other operating expenses | 37,881 | 32,867 | 30,062 | 30,222 | 29,674 | |||||||||||||||
| TOTAL NON-INTEREST EXPENSE | 106,865 | 110,743 | 101,409 | 95,396 | 100,253 | |||||||||||||||
| NET INCOME BEFORE INCOME TAXES | 105,101 | 71,540 | 60,093 | 67,353 | 66,095 | |||||||||||||||
| Provision for income taxes | 23,275 | 15,616 | 12,398 | 11,707 | 10,902 | |||||||||||||||
| NET INCOME | 81,826 | 55,924 | 47,695 | 55,646 | 55,193 | |||||||||||||||
| Preferred stock dividends | - | 326 | - | - | - | |||||||||||||||
| NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 81,826 | $ | 55,598 | $ | 47,695 | $ | 55,646 | $ | 55,193 | ||||||||||
| BASIC EARNINGS PER SHARE | $ | 0.85 | $ | 0.58 | $ | 0.52 | $ | 0.60 | $ | 0.60 | ||||||||||
| DILUTED EARNINGS PER SHARE | $ | 0.84 | $ | 0.58 | $ | 0.51 | $ | 0.60 | $ | 0.59 | ||||||||||
| 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) | 2019 | 2019 | 2019 | 2018 | 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||||||
| Tier 1 capital | ||||||||||||||||||||
| Stockholders' equity | $ | 2,547,071 | $ | 2,469,513 | $ | 2,302,321 | $ | 2,246,434 | $ | 2,183,319 | ||||||||||
| Disallowed intangible assets, net of deferred tax | (1,013,309 | ) | (1,001,676 | ) | (910,122 | ) | (912,428 | ) | (914,788 | ) | ||||||||||
| Unrealized (gain) loss on AFS securities | (23,709 | ) | (15,316 | ) | 6,000 | 27,374 | 48,040 | |||||||||||||
| Total Tier 1 capital | 1,510,053 | 1,452,521 | 1,398,199 | 1,361,380 | 1,316,571 | |||||||||||||||
| Tier 2 capital | ||||||||||||||||||||
| Qualifying unrealized gain on AFS equity securities | - | - | - | - | 1 | |||||||||||||||
| Trust preferred securities and subordinated debt | 354,223 | 354,132 | 354,041 | 353,950 | 372,934 | |||||||||||||||
| Qualifying allowance for loan losses and reserve for unfunded commitments | 74,455 | 72,044 | 67,771 | 63,608 | 63,618 | |||||||||||||||
| Total Tier 2 capital | 428,678 | 426,176 | 421,812 | 417,558 | 436,553 | |||||||||||||||
| Total risk-based capital | $ | 1,938,731 | $ | 1,878,697 | $ | 1,820,011 | $ | 1,778,938 | $ | 1,753,124 | ||||||||||
| Risk weighted assets | $ | 14,725,571 | $ | 14,825,253 | $ | 13,364,636 | $ | 13,326,832 | $ | 13,402,910 | ||||||||||
| Adjusted average assets for leverage ratio | $ | 16,681,527 | $ | 16,382,520 | $ | 15,423,961 | $ | 15,512,042 | $ | 15,179,889 | ||||||||||
| Ratios at end of quarter | ||||||||||||||||||||
| Equity to assets | 14.34 | % | 13.77 | % | 14.31 | % | 13.58 | % | 13.41 | % | ||||||||||
| Tangible common equity to tangible assets (1) | 9.08 | % | 8.51 | % | 9.02 | % | 8.39 | % | 8.11 | % | ||||||||||
| Common equity Tier 1 ratio (CET1) | 10.25 | % | 9.80 | % | 10.46 | % | 10.22 | % | 9.82 | % | ||||||||||
| Tier 1 leverage ratio | 9.05 | % | 8.87 | % | 9.07 | % | 8.78 | % | 8.67 | % | ||||||||||
| Tier 1 risk-based capital ratio | 10.25 | % | 9.80 | % | 10.46 | % | 10.22 | % | 9.82 | % | ||||||||||
| Total risk-based capital ratio | 13.17 | % | 12.67 | % | 13.62 | % | 13.35 | % | 13.08 | % | ||||||||||
(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) | 2019 | 2019 | 2019 | 2018 | 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||||||
| Legacy Loan Portfolio - End of Period (1) | ||||||||||||||||||||
| Consumer | ||||||||||||||||||||
| Credit cards | $ | 195,083 | $ | 187,919 | $ | 181,549 | $ | 204,173 | $ | 182,137 | ||||||||||
| Other consumer | 208,643 | 207,445 | 213,659 | 201,297 | 259,581 | |||||||||||||||
| Total consumer | 403,726 | 395,364 | 395,208 | 405,470 | 441,718 | |||||||||||||||
| Real Estate | ||||||||||||||||||||
| Construction | 1,712,858 | 1,540,352 | 1,376,162 | 1,300,723 | 1,229,888 | |||||||||||||||
| Single-family residential | 1,448,455 | 1,444,525 | 1,431,407 | 1,440,443 | 1,401,991 | |||||||||||||||
| Other commercial | 3,630,708 | 3,531,273 | 3,355,109 | 3,225,287 | 3,077,188 | |||||||||||||||
| Total real estate | 6,792,021 | 6,516,150 | 6,162,678 | 5,966,453 | 5,709,067 | |||||||||||||||
| Commercial | ||||||||||||||||||||
| Commercial | 1,894,819 | 1,871,695 | 1,801,422 | 1,774,909 | 1,608,342 | |||||||||||||||
| Agricultural | 213,753 | 191,922 | 147,216 | 164,514 | 218,778 | |||||||||||||||
| Total commercial | 2,108,572 | 2,063,617 | 1,948,638 | 1,939,423 | 1,827,120 | |||||||||||||||
| Other | 339,046 | 287,366 | 178,026 | 119,042 | 145,369 | |||||||||||||||
| Total Loans | $ | 9,643,365 | $ | 9,262,497 | $ | 8,684,550 | $ | 8,430,388 | $ | 8,123,274 | ||||||||||
| (1) Excludes all acquired loans. | ||||||||||||||||||||
| Investment Securities - End of Period | ||||||||||||||||||||
| Held-to-Maturity | ||||||||||||||||||||
| U.S. Government agencies | $ | - | $ | 999 | $ | 12,996 | $ | 16,990 | $ | 34,983 | ||||||||||
| Mortgage-backed securities | 11,549 | 12,225 | 12,847 | 13,346 | 13,933 | |||||||||||||||
| State and political subdivisions | 28,692 | 32,236 | 33,597 | 256,863 | 272,396 | |||||||||||||||
| Other securities | 1,996 | 1,995 | 1,995 | 1,995 | 1,994 | |||||||||||||||
| Total held-to-maturity | 42,237 | 47,455 | 61,435 | 289,194 | 323,306 | |||||||||||||||
| Available-for-Sale | ||||||||||||||||||||
| U.S. Government agencies | $ | 178,139 | $ | 197,656 | $ | 161,577 | $ | 154,301 | $ | 141,460 | ||||||||||
| Mortgage-backed securities | 1,337,794 | 1,345,760 | 1,345,677 | 1,522,900 | 1,419,626 | |||||||||||||||
| State and political subdivisions | 681,202 | 636,558 | 580,790 | 314,843 | 282,439 | |||||||||||||||
| FHLB stock | 62,403 | 66,588 | 65,220 | 73,105 | 72,579 | |||||||||||||||
| Other securities | 96,596 | 95,825 | 86,847 | 86,603 | 81,710 | |||||||||||||||
| Total available-for-sale | 2,356,134 | 2,342,387 | 2,240,111 | 2,151,752 | 1,997,814 | |||||||||||||||
| Total investment securities | $ | 2,398,371 | $ | 2,389,842 | $ | 2,301,546 | $ | 2,440,946 | $ | 2,321,120 | ||||||||||
| Fair value - HTM investment securities | $ | 43,302 | $ | 48,640 | $ | 61,956 | $ | 290,830 | $ | 322,838 | ||||||||||
| Investment Securities - QTD Average | ||||||||||||||||||||
| Taxable securities | $ | 1,712,672 | $ | 1,793,799 | $ | 1,880,694 | $ | 1,815,203 | $ | 1,775,193 | ||||||||||
| Tax exempt securities | 681,505 | 624,898 | 590,941 | 551,185 | 539,135 | |||||||||||||||
| Total investment securities - QTD average | $ | 2,394,177 | $ | 2,418,697 | $ | 2,471,635 | $ | 2,366,388 | $ | 2,314,328 | ||||||||||
| 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) | 2019 | 2019 | 2019 | 2018 | 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||||||
| LOANS | ||||||||||||||||||||
| Legacy loans | $ | 9,643,365 | $ | 9,262,497 | $ | 8,684,550 | $ | 8,430,388 | $ | 8,123,274 | ||||||||||
| Allowance for loan losses (legacy loans) | (65,993 | ) | (63,067 | ) | (59,243 | ) | (56,599 | ) | (55,358 | ) | ||||||||||
| Legacy loans (net of allowance) | 9,577,372 | 9,199,430 | 8,625,307 | 8,373,789 | 8,067,916 | |||||||||||||||
| Loans acquired | 3,420,563 | 3,939,126 | 3,099,915 | 3,342,175 | 3,790,234 | |||||||||||||||
| Credit discount | (60,379 | ) | (73,498 | ) | (42,416 | ) | (49,297 | ) | (53,968 | ) | ||||||||||
| Allowance for loan losses (loans acquired) | (597 | ) | (1,112 | ) | (1,312 | ) | (95 | ) | (1,345 | ) | ||||||||||
| Loans acquired (net of discount and allowance) | 3,359,587 | 3,864,516 | 3,056,187 | 3,292,783 | 3,734,921 | |||||||||||||||
| Net loans | $ | 12,936,959 | $ | 13,063,946 | $ | 11,681,494 | $ | 11,666,572 | $ | 11,802,837 | ||||||||||
| Loan Coverage Ratios | ||||||||||||||||||||
| Allowance for loan losses to legacy loans | 0.68 | % | 0.68 | % | 0.68 | % | 0.67 | % | 0.68 | % | ||||||||||
| 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) |
|
|
1.78 |
% |
|
|
1.89 |
% |
|
|
1.41 |
% |
|
|
1.48 |
% |
|
|
1.46 |
% |
| Total allowance and credit coverage (non-GAAP) (1) | 0.97 | % | 1.04 | % | 0.87 | % | 0.90 | % | 0.93 | % | ||||||||||
(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) | 2019 | 2019 | 2019 | 2018 | 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||||||
| Allowance for Loan Losses (Legacy Loans) | ||||||||||||||||||||
| Balance, beginning of quarter | $ | 63,067 | $ | 59,243 | $ | 56,599 | $ | 55,358 | $ | 51,732 | ||||||||||
| Loans charged off | ||||||||||||||||||||
| Credit cards | 1,117 | 1,039 | 1,142 | 1,121 | 919 | |||||||||||||||
| Other consumer | 1,059 | 905 | 1,533 | 2,894 | 1,321 | |||||||||||||||
| Real estate | 907 | 271 | 374 | 337 | 4,952 | |||||||||||||||
| Commercial | 17,729 | 1,867 | 1,968 | 3,480 | 592 | |||||||||||||||
| Total loans charged off | 20,812 | 4,082 | 5,017 | 7,832 | 7,784 | |||||||||||||||
| Recoveries of loans previously charged off | ||||||||||||||||||||
| Credit cards | 223 | 271 | 240 | 227 | 229 | |||||||||||||||
| Other consumer | 1,422 | 331 | 300 | 154 | 176 | |||||||||||||||
| Real estate | 55 | 153 | 142 | 367 | 210 | |||||||||||||||
| Commercial | 65 | 72 | 158 | 167 | 450 | |||||||||||||||
| Total recoveries | 1,765 | 827 | 840 | 915 | 1,065 | |||||||||||||||
| Net loans charged off | 19,047 | 3,255 | 4,177 | 6,917 | 6,719 | |||||||||||||||
| Provision for loan losses | 21,973 | 7,079 | 6,821 | 8,158 | 10,345 | |||||||||||||||
| Balance, end of quarter | $ | 65,993 | $ | 63,067 | $ | 59,243 | $ | 56,599 | $ | 55,358 | ||||||||||
| Non-performing assets (1) (2) | ||||||||||||||||||||
| Non-performing loans | ||||||||||||||||||||
| Nonaccrual loans | $ | 72,721 | $ | 61,956 | $ | 60,925 | $ | 34,201 | $ | 40,505 | ||||||||||
| Loans past due 90 days or more | 155 | 267 | 281 | 224 | 281 | |||||||||||||||
| Total non-performing loans | 72,876 | 62,223 | 61,206 | 34,425 | 40,786 | |||||||||||||||
| Other non-performing assets | ||||||||||||||||||||
| Foreclosed assets and other real estate owned (2) | 19,576 | 24,761 | 18,952 | 25,565 | 22,664 | |||||||||||||||
| Other non-performing assets | 540 | 613 | 505 | 553 | 524 | |||||||||||||||
| Total other non-performing assets | 20,116 | 25,374 | 19,457 | 26,118 | 23,188 | |||||||||||||||
| Total non-performing assets | $ | 92,992 | $ | 87,597 | $ | 80,663 | $ | 60,543 | $ | 63,974 | ||||||||||
| Performing TDRs (troubled debt restructurings) | $ | 6,519 | $ | 6,246 | $ | 6,297 | $ | 6,369 | $ | 8,413 | ||||||||||
| Ratios (1) (2) | ||||||||||||||||||||
| Allowance for loan losses to total loans | 0.68 | % | 0.68 | % | 0.68 | % | 0.67 | % | 0.68 | % | ||||||||||
| Allowance for loan losses to non-performing loans | 91 | % | 101 | % | 97 | % | 164 | % | 136 | % | ||||||||||
| Non-performing loans to total loans | 0.76 | % | 0.67 | % | 0.70 | % | 0.41 | % | 0.50 | % | ||||||||||
| Non-performing assets (including performing TDRs) to total assets | 0.56 | % | 0.52 | % | 0.54 | % | 0.40 | % | 0.44 | % | ||||||||||
| Non-performing assets to total assets | 0.52 | % | 0.49 | % | 0.50 | % | 0.37 | % | 0.39 | % | ||||||||||
| Annualized net charge offs to total loans | 0.78 | % | 0.14 | % | 0.20 | % | 0.35 | % | 0.36 | % | ||||||||||
| Annualized net credit card charge offs to total credit card loans | 1.82 | % | 1.63 | % | 1.92 | % | 1.86 | % | 1.47 | % | ||||||||||
(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 2019 | Three Months Ended Jun 2019 | Three Months Ended Sep 2018 | ||||||||||||||||||||||||||||||||||
| ($ 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 | $ | 344,761 | $ | 1,586 | 1.83 | % | $ | 276,370 | $ | 1,121 | 1.63 | % | $ | 373,528 | $ | 1,405 | 1.49 | % | ||||||||||||||||||
| Investment securities - taxable | 1,712,672 | 10,414 | 2.41 | % | 1,793,799 | 11,994 | 2.68 | % | 1,775,193 | 10,892 | 2.43 | % | ||||||||||||||||||||||||
| Investment securities - non-taxable (FTE) | 681,505 | 6,687 | 3.89 | % | 624,898 | 6,209 | 3.99 | % | 539,135 | 5,064 | 3.73 | % | ||||||||||||||||||||||||
| Mortgage loans held for sale | 39,551 | 382 | 3.83 | % | 32,030 | 332 | 4.16 | % | 43,554 | 501 | 4.56 | % | ||||||||||||||||||||||||
| Loans, including acquired loans | 13,052,943 | 180,080 | 5.47 | % | 12,813,274 | 178,219 | 5.58 | % | 11,641,843 | 162,515 | 5.54 | % | ||||||||||||||||||||||||
| Total interest earning assets (FTE) | 15,831,432 | 199,149 | 4.99 | % | 15,540,371 | 197,875 | 5.11 | % | 14,373,253 | 180,377 | 4.98 | % | ||||||||||||||||||||||||
| Non-earning assets | 1,889,166 | 1,842,501 | 1,667,631 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 17,720,598 | $ | 17,382,872 | $ | 16,040,884 | ||||||||||||||||||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||||||
| Interest bearing liabilities: | ||||||||||||||||||||||||||||||||||||
| Interest bearing transaction and savings accounts | $ | 7,322,395 | $ | 21,363 | 1.16 | % | $ | 7,139,356 | $ | 20,190 | 1.13 | % | $ | 6,840,403 | $ | 16,373 | 0.95 | % | ||||||||||||||||||
| Time deposits | 3,122,422 | 15,573 | 1.98 | % | 3,072,246 | 14,606 | 1.91 | % | 2,379,142 | 8,017 | 1.34 | % | ||||||||||||||||||||||||
| Total interest bearing deposits | 10,444,817 | 36,936 | 1.40 | % | 10,211,602 | 34,796 | 1.37 | % | 9,219,545 | 24,390 | 1.05 | % | ||||||||||||||||||||||||
| Federal funds purchased and securities sold under agreement to repurchase | 123,883 | 249 | 0.80 | % | 133,242 | 257 | 0.77 | % | 107,770 | 104 | 0.38 | % | ||||||||||||||||||||||||
| Other borrowings | 1,127,886 | 5,381 | 1.89 | % | 1,277,450 | 6,219 | 1.95 | % | 1,375,052 | 6,240 | 1.80 | % | ||||||||||||||||||||||||
| Subordinated notes and debentures | 354,178 | 4,576 | 5.13 | % | 354,088 | 4,541 | 5.14 | % | 379,168 | 5,282 | 5.53 | % | ||||||||||||||||||||||||
| Total interest bearing liabilities | 12,050,764 | 47,142 | 1.55 | % | 11,976,382 | 45,813 | 1.53 | % | 11,081,535 | 36,016 | 1.29 | % | ||||||||||||||||||||||||
| Non-interest bearing liabilities: | ||||||||||||||||||||||||||||||||||||
| Non-interest bearing deposits | 3,012,544 | 2,834,452 | 2,679,469 | |||||||||||||||||||||||||||||||||
| Other liabilities | 288,517 | 207,500 | 103,315 | |||||||||||||||||||||||||||||||||
| Total liabilities | 15,351,825 | 15,018,334 | 13,864,319 | |||||||||||||||||||||||||||||||||
| Stockholders' equity | 2,368,773 | 2,364,538 | 2,176,565 | |||||||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 17,720,598 | $ | 17,382,872 | $ | 16,040,884 | ||||||||||||||||||||||||||||||
| Net interest income (FTE) | $ | 152,007 | $ | 152,062 | $ | 144,361 | ||||||||||||||||||||||||||||||
| Net interest spread (FTE) | 3.44 | % | 3.58 | % | 3.69 | % | ||||||||||||||||||||||||||||||
| Net interest margin (FTE) - quarter-to-date | 3.81 | % | 3.92 | % | 3.98 | % | ||||||||||||||||||||||||||||||
| Net interest margin (FTE) - year-to-date | 3.86 | % | 3.89 | % | 4.04 | % | ||||||||||||||||||||||||||||||
| Core net interest margin (FTE) - quarter-to-date (1) | 3.58 | % | 3.66 | % | 3.71 | % | ||||||||||||||||||||||||||||||
| Core loan yield (FTE) - quarter-to-date (1) | 5.19 | % | 5.26 | % | 5.19 | % | ||||||||||||||||||||||||||||||
| Core net interest margin (FTE) - year-to-date (1) | 3.63 | % | 3.66 | % | 3.74 | % | ||||||||||||||||||||||||||||||
| Core loan yield (FTE) - year-to-date (1) | 5.24 | % | 5.27 | % | 5.06 | % | ||||||||||||||||||||||||||||||
(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) | 2019 | 2019 | 2019 | 2018 | 2018 | |||||||||||||||
| ($ in thousands, except share data) | ||||||||||||||||||||
| QUARTER-TO-DATE | ||||||||||||||||||||
| Financial Highlights - GAAP | ||||||||||||||||||||
| Net Income | $ | 81,826 | $ | 55,598 | $ | 47,695 | $ | 55,646 | $ | 55,193 | ||||||||||
| Diluted earnings per share | 0.84 | 0.58 | 0.51 | 0.60 | 0.59 | |||||||||||||||
| Return on average assets | 1.83 | % | 1.28 | % | 1.19 | % | 1.35 | % | 1.37 | % | ||||||||||
| Return on average common equity | 13.70 | % | 9.48 | % | 8.60 | % | 9.98 | % | 10.06 | % | ||||||||||
| Return on tangible common equity | 24.89 | % | 17.40 | % | 15.34 | % | 17.96 | % | 18.38 | % | ||||||||||
| Net interest margin (FTE) | 3.81 | % | 3.92 | % | 3.85 | % | 3.76 | % | 3.98 | % | ||||||||||
| FTE adjustment | 1,843 | 1,706 | 1,601 | 1,466 | 1,393 | |||||||||||||||
| Amortization of intangibles | 2,947 | 2,947 | 2,641 | 2,642 | 2,745 | |||||||||||||||
| Amortization of intangibles, net of taxes | 2,176 | 2,177 | 1,951 | 1,952 | 2,027 | |||||||||||||||
| Average diluted shares outstanding | 96,968,775 | 96,367,857 | 92,870,813 | 92,897,105 | 92,840,851 | |||||||||||||||
| Cash dividends declared per common share | 0.16 | 0.16 | 0.16 | 0.15 | 0.15 | |||||||||||||||
| Financial Highlights - Core (non-GAAP) | ||||||||||||||||||||
| Core earnings (excludes non-core items) (1) | $ | 83,963 | $ | 65,453 | $ | 49,076 | $ | 56,451 | $ | 56,504 | ||||||||||
| Diluted core earnings per share (1) | 0.87 | 0.68 | 0.53 | 0.61 | 0.61 | |||||||||||||||
| Core net interest margin (FTE) (2) | 3.58 | % | 3.66 | % | 3.67 | % | 3.66 | % | 3.71 | % | ||||||||||
| Accretable yield on acquired loans | 9,322 | 10,162 | 6,660 | 3,850 | 10,006 | |||||||||||||||
| Efficiency ratio (1) | 43.77 | % | 49.88 | % | 56.76 | % | 51.99 | % | 53.47 | % | ||||||||||
| Core return on average assets (1) | 1.88 | % | 1.51 | % | 1.22 | % | 1.37 | % | 1.40 | % | ||||||||||
| Core return on average common equity (1) | 14.06 | % | 11.16 | % | 8.85 | % | 10.13 | % | 10.30 | % | ||||||||||
| Core return on tangible common equity (1) | 25.52 | % | 20.36 | % | 15.76 | % | 18.21 | % | 18.80 | % | ||||||||||
| YEAR-TO-DATE | ||||||||||||||||||||
| Financial Highlights - GAAP | ||||||||||||||||||||
| Net Income | $ | 185,119 | $ | 103,293 | $ | 47,695 | $ | 215,713 | $ | 160,067 | ||||||||||
| Diluted earnings per share | 1.94 | 1.09 | 0.51 | 2.32 | 1.72 | |||||||||||||||
| Return on average assets | 1.44 | % | 1.24 | % | 1.19 | % | 1.37 | % | 1.37 | % | ||||||||||
| Return on average common equity | 10.65 | % | 9.05 | % | 8.60 | % | 10.00 | % | 10.01 | % | ||||||||||
| Return on tangible common equity | 19.27 | % | 16.38 | % | 15.34 | % | 18.44 | % | 18.61 | % | ||||||||||
| Net interest margin (FTE) | 3.86 | % | 3.89 | % | 3.85 | % | 3.97 | % | 4.04 | % | ||||||||||
| FTE adjustment | 5,150 | 3,307 | 1,601 | 5,297 | 3,831 | |||||||||||||||
| Amortization of intangibles | 8,535 | 5,588 | 2,641 | 11,009 | 8,367 | |||||||||||||||
| Amortization of intangibles, net of taxes | 6,304 | 4,128 | 1,951 | 8,132 | 6,180 | |||||||||||||||
| Average diluted shares outstanding | 95,450,732 | 94,588,739 | 92,870,813 | 92,830,485 | 92,796,860 | |||||||||||||||
| Cash dividends declared per common share | 0.48 | 0.32 | 0.16 | 0.60 | 0.45 | |||||||||||||||
| Financial Highlights - Core (non-GAAP) | ||||||||||||||||||||
| Core earnings (excludes non-core items) (1) | $ | 198,492 | $ | 114,529 | $ | 49,076 | $ | 220,233 | $ | 163,782 | ||||||||||
| Diluted core earnings per share (1) | 2.08 | 1.21 | 0.53 | 2.37 | 1.76 | |||||||||||||||
| Core net interest margin (FTE) (2) | 3.63 | % | 3.66 | % | 3.67 | % | 3.72 | % | 3.74 | % | ||||||||||
| Accretable yield on acquired loans | 26,144 | 16,822 | 6,660 | 35,263 | 31,413 | |||||||||||||||
| Efficiency ratio (1) | 49.49 | % | 53.14 | % | 56.76 | % | 52.85 | % | 53.14 | % | ||||||||||
| Core return on average assets (1) | 1.55 | % | 1.37 | % | 1.22 | % | 1.40 | % | 1.41 | % | ||||||||||
| Core return on average common equity (1) | 11.42 | % | 10.04 | % | 8.85 | % | 10.21 | % | 10.24 | % | ||||||||||
| Core return on tangible common equity (1) | 20.62 | % | 18.09 | % | 15.76 | % | 18.81 | % | 19.03 | % | ||||||||||
| END OF PERIOD | ||||||||||||||||||||
| Book value per share | $ | 26.36 | $ | 25.57 | $ | 24.87 | $ | 24.33 | $ | 23.66 | ||||||||||
| Tangible book value per share | 15.73 | 14.90 | 14.78 | 14.18 | 13.48 | |||||||||||||||
| Shares outstanding | 96,613,855 | 96,590,656 | 92,568,361 | 92,347,643 | 92,291,070 | |||||||||||||||
| Full-time equivalent employees | 2,701 | 2,700 | 2,602 | 2,654 | 2,635 | |||||||||||||||
| Total number of financial centers | 212 | 212 | 191 | 191 | 191 | |||||||||||||||
(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) | 2019 | 2019 | 2019 | 2018 | 2018 | |||||||||||||||
| ($ in thousands, except per share data) | ||||||||||||||||||||
| QUARTER-TO-DATE | ||||||||||||||||||||
| Net Income | $ | 81,826 | $ | 55,598 | $ | 47,695 | $ | 55,646 | $ | 55,193 | ||||||||||
| Non-core items | ||||||||||||||||||||
| Merger-related costs | 2,556 | 7,522 | 1,470 | 797 | 804 | |||||||||||||||
| Early retirement program | 177 | 2,932 | 355 | - | - | |||||||||||||||
| Branch right-sizing | 160 | 2,887 | 45 | 292 | 970 | |||||||||||||||
| Tax effect (1) | (756 | ) | (3,486 | ) | (489 | ) | (284 | ) | (463 | ) | ||||||||||
| Net non-core items | 2,137 | 9,855 | 1,381 | 805 | 1,311 | |||||||||||||||
| Core earnings (non-GAAP) | $ | 83,963 | $ | 65,453 | $ | 49,076 | $ | 56,451 | $ | 56,504 | ||||||||||
| Diluted earnings per share | $ | 0.84 | $ | 0.58 | $ | 0.51 | $ | 0.60 | $ | 0.59 | ||||||||||
| Non-core items | ||||||||||||||||||||
| Merger-related costs | 0.04 | 0.08 | 0.02 | 0.01 | 0.01 | |||||||||||||||
| Early retirement program | - | 0.03 | 0.01 | - | - | |||||||||||||||
| Branch right-sizing | - | 0.03 | - | - | 0.01 | |||||||||||||||
| Tax effect (1) | (0.01 | ) | (0.04 | ) | (0.01 | ) | - | - | ||||||||||||
| Net non-core items | 0.03 | 0.10 | 0.02 | 0.01 | 0.02 | |||||||||||||||
| Core earnings (non-GAAP) | $ | 0.87 | $ | 0.68 | $ | 0.53 | $ | 0.61 | $ | 0.61 | ||||||||||
| YEAR-TO-DATE | ||||||||||||||||||||
| Net Income | $ | 185,119 | $ | 103,293 | $ | 47,695 | $ | 215,713 | $ | 160,067 | ||||||||||
| Non-core items | ||||||||||||||||||||
| Merger-related costs | 11,548 | 8,992 | 1,470 | 4,777 | 3,980 | |||||||||||||||
| Early retirement program | 3,464 | 3,287 | 355 | - | - | |||||||||||||||
| Branch right-sizing | 3,092 | 2,932 | 45 | 1,341 | 1,049 | |||||||||||||||
| Tax effect (1) | (4,731 | ) | (3,975 | ) | (489 | ) | (1,598 | ) | (1,314 | ) | ||||||||||
| Net non-core items | 13,373 | 11,236 | 1,381 | 4,520 | 3,715 | |||||||||||||||
| Core earnings (non-GAAP) | $ | 198,492 | $ | 114,529 | $ | 49,076 | $ | 220,233 | $ | 163,782 | ||||||||||
| Diluted earnings per share | $ | 1.94 | $ | 1.09 | $ | 0.51 | $ | 2.32 | $ | 1.72 | ||||||||||
| Non-core items | ||||||||||||||||||||
| Merger-related costs | 0.12 | 0.10 | 0.02 | 0.05 | 0.04 | |||||||||||||||
| Early retirement program | 0.04 | 0.03 | 0.01 | - | - | |||||||||||||||
| Branch right-sizing | 0.03 | 0.03 | - | 0.02 | 0.01 | |||||||||||||||
| Tax effect (1) | (0.05 | ) | (0.04 | ) | (0.01 | ) | (0.02 | ) | (0.01 | ) | ||||||||||
| Net non-core items | 0.14 | 0.12 | 0.02 | 0.05 | 0.04 | |||||||||||||||
| Core earnings (non-GAAP) | $ | 2.08 | $ | 1.21 | $ | 0.53 | $ | 2.37 | $ | 1.76 | ||||||||||
| (1) Effective tax rate of 26.135%. | ||||||||||||||||||||
| Reconciliation of Selected Non-Core Non-Interest Expense Items (non-GAAP) | ||||||||||||||||||||
| QUARTER-TO-DATE | ||||||||||||||||||||
| Salaries and employee benefits | $ | 52,065 | $ | 56,128 | $ | 56,367 | $ | 49,193 | $ | 55,515 | ||||||||||
| Non-core items (1) | (176 | ) | (2,937 | ) | (351 | ) | (118 | ) | - | |||||||||||
| Core salaries and employee benefits (non-GAAP) | $ | 51,889 | $ | 53,191 | $ | 56,016 | $ | 49,075 | $ | 55,515 | ||||||||||
| Merger related costs | $ | 2,556 | $ | 7,522 | $ | 1,470 | $ | 797 | $ | 804 | ||||||||||
| Non-core items (1) | (2,556 | ) | (7,522 | ) | (1,470 | ) | (797 | ) | (804 | ) | ||||||||||
| Core merger related costs (non-GAAP) | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
| Other operating expenses | $ | 37,881 | $ | 32,867 | $ | 30,062 | $ | 30,222 | $ | 29,674 | ||||||||||
| Non-core items (1) | (90 | ) | (2,834 | ) | (10 | ) | 70 | (957 | ) | |||||||||||
| Core other operating expenses (non-GAAP) | $ | 37,791 | $ | 30,033 | $ | 30,052 | $ | 30,292 | $ | 28,717 | ||||||||||
(1) Non-core items include merger related costs, early retirement program expenses and branch right sizing costs.
| 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 | |||||||||||||||
| 2019 | 2019 | 2019 | 2018 | 2018 | ||||||||||||||||
| ($ 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 | $ | 2,547,071 | $ | 2,469,513 | $ | 2,302,321 | $ | 2,246,434 | $ | 2,183,319 | ||||||||||
| Intangible assets: | ||||||||||||||||||||
| Goodwill | (926,648 | ) | (926,450 | ) | (845,687 | ) | (845,687 | ) | (845,687 | ) | ||||||||||
| Other intangible assets | (101,149 | ) | (104,096 | ) | (88,694 | ) | (91,334 | ) | (93,975 | ) | ||||||||||
| Total intangibles | (1,027,797 | ) | (1,030,546 | ) | (934,381 | ) | (937,021 | ) | (939,662 | ) | ||||||||||
| Tangible common stockholders' equity | $ | 1,519,274 | $ | 1,438,967 | $ | 1,367,940 | $ | 1,309,413 | $ | 1,243,657 | ||||||||||
| Total assets | $ | 17,758,511 | $ | 17,937,435 | $ | 16,091,639 | $ | 16,543,337 | $ | 16,281,264 | ||||||||||
| Intangible assets: | ||||||||||||||||||||
| Goodwill | (926,648 | ) | (926,450 | ) | (845,687 | ) | (845,687 | ) | (845,687 | ) | ||||||||||
| Other intangible assets | (101,149 | ) | (104,096 | ) | (88,694 | ) | (91,334 | ) | (93,975 | ) | ||||||||||
| Total intangibles | (1,027,797 | ) | (1,030,546 | ) | (934,381 | ) | (937,021 | ) | (939,662 | ) | ||||||||||
| Tangible assets | $ | 16,730,714 | $ | 16,906,889 | $ | 15,157,258 | $ | 15,606,316 | $ | 15,341,602 | ||||||||||
| Ratio of equity to assets | 14.34 | % | 13.77 | % | 14.31 | % | 13.58 | % | 13.41 | % | ||||||||||
| Ratio of tangible common equity to tangible assets | 9.08 | % | 8.51 | % | 9.02 | % | 8.39 | % | 8.11 | % | ||||||||||
| 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 | $ | 60,379 | $ | 73,498 | $ | 42,416 | $ | 49,297 | $ | 53,968 | ||||||||||
| Allowance for loan losses on acquired loans | 597 | 1,112 | 1,312 | 95 | 1,345 | |||||||||||||||
| Total credit discount and ALLL on acquired loans | $ | 60,976 | $ | 74,610 | $ | 43,728 | $ | 49,392 | $ | 55,313 | ||||||||||
| Total loans acquired | $ | 3,420,563 | $ | 3,939,126 | $ | 3,099,915 | $ | 3,342,175 | $ | 3,790,234 | ||||||||||
| Discount and ALLL on acquired loans to acquired loans | 1.78 | % | 1.89 | % | 1.41 | % | 1.48 | % | 1.46 | % | ||||||||||
| Calculation of Total Allowance and Credit Coverage | ||||||||||||||||||||
| Allowance for loan losses | $ | 65,993 | $ | 63,067 | $ | 59,243 | $ | 56,599 | $ | 55,358 | ||||||||||
| Total credit discount and ALLL on acquired loans | 60,976 | 74,610 | 43,728 | 49,392 | 55,313 | |||||||||||||||
| Total allowance and credit discount | $ | 126,969 | $ | 137,677 | $ | 102,971 | $ | 105,991 | $ | 110,671 | ||||||||||
| Total loans | $ | 13,063,928 | $ | 13,201,623 | $ | 11,784,465 | $ | 11,772,563 | $ | 11,913,508 | ||||||||||
| Total allowance and credit coverage | 0.97 | % | 1.04 | % | 0.87 | % | 0.90 | % | 0.93 | % | ||||||||||
| Calculation of Tangible Book Value per Share | ||||||||||||||||||||
| Total common stockholders' equity | $ | 2,547,071 | $ | 2,469,513 | $ | 2,302,321 | $ | 2,246,434 | $ | 2,183,319 | ||||||||||
| Intangible assets: | ||||||||||||||||||||
| Goodwill | (926,648 | ) | (926,450 | ) | (845,687 | ) | (845,687 | ) | (845,687 | ) | ||||||||||
| Other intangible assets | (101,149 | ) | (104,096 | ) | (88,694 | ) | (91,334 | ) | (93,975 | ) | ||||||||||
| Total intangibles | (1,027,797 | ) | (1,030,546 | ) | (934,381 | ) | (937,021 | ) | (939,662 | ) | ||||||||||
| Tangible common stockholders' equity | $ | 1,519,274 | $ | 1,438,967 | $ | 1,367,940 | $ | 1,309,413 | $ | 1,243,657 | ||||||||||
| Shares of common stock outstanding | 96,613,855 | 96,590,656 | 92,568,361 | 92,347,643 | 92,291,070 | |||||||||||||||
| Book value per common share | $ | 26.36 | $ | 25.57 | $ | 24.87 | $ | 24.33 | $ | 23.66 | ||||||||||
| Tangible book value per common share | $ | 15.73 | $ | 14.90 | $ | 14.78 | $ | 14.18 | $ | 13.48 | ||||||||||
| 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 | |||||||||||||||
| 2019 | 2019 | 2019 | 2018 | 2018 | ||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||
| Calculation of Core Return on Average Assets | ||||||||||||||||||||
| Net income | $ | 81,826 | $ | 55,598 | $ | 47,695 | $ | 55,646 | $ | 55,193 | ||||||||||
| Net non-core items, net of taxes, adjustment | 2,137 | 9,855 | 1,381 | 805 | 1,311 | |||||||||||||||
| Core earnings | $ | 83,963 | $ | 65,453 | $ | 49,076 | $ | 56,451 | $ | 56,504 | ||||||||||
| Average total assets | $ | 17,720,598 | $ | 17,382,872 | $ | 16,302,197 | $ | 16,357,753 | $ | 16,040,884 | ||||||||||
| Return on average assets | 1.83 | % | 1.28 | % | 1.19 | % | 1.35 | % | 1.37 | % | ||||||||||
| Core return on average assets | 1.88 | % | 1.51 | % | 1.22 | % | 1.37 | % | 1.40 | % | ||||||||||
| Calculation of Return on Tangible Common Equity | ||||||||||||||||||||
| Net income | $ | 81,826 | $ | 55,598 | $ | 47,695 | $ | 55,646 | $ | 55,193 | ||||||||||
| Amortization of intangibles, net of taxes | 2,176 | 2,177 | 1,951 | 1,952 | 2,027 | |||||||||||||||
| Total income available to common stockholders | $ | 84,002 | $ | 57,775 | $ | 49,646 | $ | 57,598 | $ | 57,220 | ||||||||||
| Net non-core items, net of taxes | 2,137 | 9,855 | 1,381 | 805 | 1,311 | |||||||||||||||
| Core earnings | 83,963 | 65,453 | 49,076 | 56,451 | 56,504 | |||||||||||||||
| Amortization of intangibles, net of taxes | 2,176 | 2,177 | 1,951 | 1,952 | 2,027 | |||||||||||||||
| Total core income available to common stockholders | $ | 86,139 | $ | 67,630 | $ | 51,027 | $ | 58,403 | $ | 58,531 | ||||||||||
| Average common stockholders' equity | $ | 2,368,773 | $ | 2,351,603 | $ | 2,248,898 | $ | 2,211,217 | $ | 2,176,565 | ||||||||||
| Average intangible assets: | ||||||||||||||||||||
| Goodwill | (926,687 | ) | (915,445 | ) | (845,687 | ) | (845,687 | ) | (845,687 | ) | ||||||||||
| Other intangibles | (103,028 | ) | (104,050 | ) | (90,317 | ) | (92,990 | ) | (95,576 | ) | ||||||||||
| Total average intangibles | (1,029,715 | ) | (1,019,495 | ) | (936,004 | ) | (938,677 | ) | (941,263 | ) | ||||||||||
| Average tangible common stockholders' equity | $ | 1,339,058 | $ | 1,332,108 | $ | 1,312,894 | $ | 1,272,540 | $ | 1,235,302 | ||||||||||
| Return on average common equity | 13.70 | % | 9.48 | % | 8.60 | % | 9.98 | % | 10.06 | % | ||||||||||
| Return on tangible common equity | 24.89 | % | 17.40 | % | 15.34 | % | 17.96 | % | 18.38 | % | ||||||||||
| Core return on average common equity | 14.06 | % | 11.16 | % | 8.85 | % | 10.13 | % | 10.30 | % | ||||||||||
| Core return on tangible common equity | 25.52 | % | 20.36 | % | 15.76 | % | 18.21 | % | 18.80 | % | ||||||||||
| Calculation of Efficiency Ratio (1) | ||||||||||||||||||||
| Non-interest expense | $ | 106,865 | $ | 110,743 | $ | 101,409 | $ | 95,396 | $ | 100,253 | ||||||||||
| Non-core non-interest expense adjustment | (2,893 | ) | (13,341 | ) | (1,870 | ) | (1,089 | ) | (1,774 | ) | ||||||||||
| Other real estate and foreclosure expense adjustment | (1,057 | ) | (563 | ) | (599 | ) | (1,300 | ) | (538 | ) | ||||||||||
| Amortization of intangibles adjustment | (2,947 | ) | (2,947 | ) | (2,641 | ) | (2,642 | ) | (2,745 | ) | ||||||||||
| Efficiency ratio numerator | $ | 99,968 | $ | 93,892 | $ | 96,299 | $ | 90,365 | $ | 95,196 | ||||||||||
| Net-interest income | $ | 150,164 | $ | 150,356 | $ | 137,026 | $ | 137,781 | $ | 142,968 | ||||||||||
| Non-interest income | 83,775 | 39,006 | 33,761 | 34,588 | 33,725 | |||||||||||||||
| Fully tax-equivalent adjustment | 1,843 | 1,706 | 1,601 | 1,466 | 1,393 | |||||||||||||||
| Gain on sale of securities | (7,374 | ) | (2,823 | ) | (2,740 | ) | (8 | ) | (54 | ) | ||||||||||
| Efficiency ratio denominator | $ | 228,408 | $ | 188,245 | $ | 169,648 | $ | 173,827 | $ | 178,032 | ||||||||||
| Efficiency ratio (1) | 43.77 | % | 49.88 | % | 56.76 | % | 51.99 | % | 53.47 | % | ||||||||||
| Calculation of Core Net Interest Margin | ||||||||||||||||||||
| Net interest income | $ | 150,164 | $ | 150,356 | $ | 137,026 | $ | 137,781 | $ | 142,968 | ||||||||||
| Fully tax-equivalent adjustment | 1,843 | 1,706 | 1,601 | 1,466 | 1,393 | |||||||||||||||
| Fully tax-equivalent net interest income | 152,007 | 152,062 | 138,627 | 139,247 | 144,361 | |||||||||||||||
| Total accretable yield | (9,322 | ) | (10,162 | ) | (6,660 | ) | (3,850 | ) | (10,006 | ) | ||||||||||
| Core net interest income | $ | 142,685 | $ | 141,900 | $ | 131,967 | $ | 135,397 | $ | 134,355 | ||||||||||
| Average earning assets | $ | 15,831,432 | $ | 15,540,371 | $ | 14,593,905 | $ | 14,686,038 | $ | 14,373,253 | ||||||||||
| Net interest margin | 3.81 | % | 3.92 | % | 3.85 | % | 3.76 | % | 3.98 | % | ||||||||||
| Core net interest margin | 3.58 | % | 3.66 | % | 3.67 | % | 3.66 | % | 3.71 | % | ||||||||||
| Calculation of Core Loan Yield | ||||||||||||||||||||
| Loan interest income | $ | 179,971 | $ | 178,122 | $ | 159,440 | $ | 159,996 | $ | 162,438 | ||||||||||
| Total accretable yield | (9,322 | ) | (10,162 | ) | (6,660 | ) | (3,850 | ) | (10,006 | ) | ||||||||||
| Core loan interest income | $ | 170,649 | $ | 167,960 | $ | 152,780 | $ | 156,146 | $ | 152,432 | ||||||||||
| Average loan balance | $ | 13,052,943 | $ | 12,813,274 | $ | 11,710,075 | $ | 11,788,838 | $ | 11,641,843 | ||||||||||
| Core loan yield | 5.19 | % | 5.26 | % | 5.29 | % | 5.25 | % | 5.19 | % | ||||||||||
(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 | |||||||||||||||
| 2019 | 2019 | 2019 | 2018 | 2018 | ||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||
| Calculation of Core Return on Average Assets | ||||||||||||||||||||
| Net income | $ | 185,119 | $ | 103,293 | $ | 47,695 | $ | 215,713 | $ | 160,067 | ||||||||||
| Net non-core items, net of taxes, adjustment | 13,373 | 11,236 | 1,381 | 4,520 | 3,715 | |||||||||||||||
| Core earnings | $ | 198,492 | $ | 114,529 | $ | 49,076 | $ | 220,233 | $ | 163,782 | ||||||||||
| Average total assets | $ | 17,140,419 | $ | 16,845,528 | $ | 16,302,197 | $ | 15,771,362 | $ | 15,573,762 | ||||||||||
| Return on average assets | 1.44 | % | 1.24 | % | 1.19 | % | 1.37 | % | 1.37 | % | ||||||||||
| Core return on average assets | 1.55 | % | 1.37 | % | 1.22 | % | 1.40 | % | 1.41 | % | ||||||||||
| Calculation of Return on Tangible Common Equity | ||||||||||||||||||||
| Net income | $ | 185,119 | $ | 103,293 | $ | 47,695 | $ | 215,713 | $ | 160,067 | ||||||||||
| Amortization of intangibles, net of taxes | 6,304 | 4,128 | 1,951 | 8,132 | 6,180 | |||||||||||||||
| Total income available to common stockholders | $ | 191,423 | $ | 107,421 | $ | 49,646 | $ | 223,845 | $ | 166,247 | ||||||||||
| Net non-core items, net of taxes | 13,373 | 11,236 | 1,381 | 4,520 | 3,715 | |||||||||||||||
| Core earnings | 198,492 | 114,529 | 49,076 | 220,233 | 163,782 | |||||||||||||||
| Amortization of intangibles, net of taxes | 6,304 | 4,128 | 1,951 | 8,132 | 6,180 | |||||||||||||||
| Total core income available to common stockholders | $ | 204,796 | $ | 118,657 | $ | 51,027 | $ | 228,365 | $ | 169,962 | ||||||||||
| Average common stockholders' equity | $ | 2,323,530 | $ | 2,300,535 | $ | 2,248,898 | $ | 2,157,097 | $ | 2,138,818 | ||||||||||
| Average intangible assets: | ||||||||||||||||||||
| Goodwill | (896,236 | ) | (880,759 | ) | (845,688 | ) | (845,308 | ) | (845,180 | ) | ||||||||||
| Other intangibles | (99,178 | ) | (97,221 | ) | (90,316 | ) | (97,820 | ) | (99,448 | ) | ||||||||||
| Total average intangibles | (995,414 | ) | (977,980 | ) | (936,004 | ) | (943,128 | ) | (944,628 | ) | ||||||||||
| Average tangible common stockholders' equity | $ | 1,328,116 | $ | 1,322,555 | $ | 1,312,894 | $ | 1,213,969 | $ | 1,194,190 | ||||||||||
| Return on average common equity | 10.65 | % | 9.05 | % | 8.60 | % | 10.00 | % | 10.01 | % | ||||||||||
| Return on tangible common equity | 19.27 | % | 16.38 | % | 15.34 | % | 18.44 | % | 18.61 | % | ||||||||||
| Core return on average common equity | 11.42 | % | 10.04 | % | 8.85 | % | 10.21 | % | 10.24 | % | ||||||||||
| Core return on tangible common equity | 20.62 | % | 18.09 | % | 15.76 | % | 18.81 | % | 19.03 | % | ||||||||||
| Calculation of Efficiency Ratio (1) | ||||||||||||||||||||
| Non-interest expense | $ | 319,017 | $ | 212,152 | $ | 101,409 | $ | 392,229 | $ | 296,833 | ||||||||||
| Non-core non-interest expense adjustment | (18,104 | ) | (15,211 | ) | (1,870 | ) | (6,118 | ) | (5,029 | ) | ||||||||||
| Other real estate and foreclosure expense adjustment | (2,219 | ) | (1,162 | ) | (599 | ) | (4,240 | ) | (2,940 | ) | ||||||||||
| Amortization of intangibles adjustment | (8,535 | ) | (5,588 | ) | (2,641 | ) | (11,009 | ) | (8,367 | ) | ||||||||||
| Efficiency ratio numerator | $ | 290,159 | $ | 190,191 | $ | 96,299 | $ | 370,862 | $ | 280,497 | ||||||||||
| Net-interest income | $ | 437,546 | $ | 287,382 | $ | 137,026 | $ | 552,552 | $ | 414,771 | ||||||||||
| Non-interest income | 156,542 | 72,767 | 33,761 | 143,896 | 109,308 | |||||||||||||||
| Fully tax-equivalent adjustment | 5,150 | 3,307 | 1,601 | 5,297 | 3,831 | |||||||||||||||
| Gain on sale of securities | (12,937 | ) | (5,563 | ) | (2,740 | ) | (61 | ) | (53 | ) | ||||||||||
| Efficiency ratio denominator | $ | 586,301 | $ | 357,893 | $ | 169,648 | $ | 701,684 | $ | 527,857 | ||||||||||
| Efficiency ratio (1) | 49.49 | % | 53.14 | % | 56.76 | % | 52.85 | % | 53.14 | % | ||||||||||
| Calculation of Core Net Interest Margin | ||||||||||||||||||||
| Net interest income | $ | 437,546 | $ | 287,382 | $ | 137,026 | $ | 552,552 | $ | 414,771 | ||||||||||
| Fully tax-equivalent adjustment | 5,150 | 3,307 | 1,601 | 5,297 | 3,831 | |||||||||||||||
| Fully tax-equivalent net interest income | 442,696 | 290,689 | 138,627 | 557,849 | 418,602 | |||||||||||||||
| Total accretable yield | (26,144 | ) | (16,822 | ) | (6,660 | ) | (35,263 | ) | (31,413 | ) | ||||||||||
| Core net interest income | $ | 416,552 | $ | 273,867 | $ | 131,967 | $ | 522,586 | $ | 387,189 | ||||||||||
| Average earning assets | $ | 15,326,432 | $ | 15,069,751 | $ | 14,593,905 | $ | 14,036,614 | $ | 13,837,639 | ||||||||||
| Net interest margin | 3.86 | % | 3.89 | % | 3.85 | % | 3.97 | % | 4.04 | % | ||||||||||
| Core net interest margin | 3.63 | % | 3.66 | % | 3.67 | % | 3.72 | % | 3.74 | % | ||||||||||
| Calculation of Core Loan Yield | ||||||||||||||||||||
| Loan interest income | $ | 517,533 | $ | 337,562 | $ | 159,440 | $ | 616,037 | $ | 456,041 | ||||||||||
| Total accretable yield | (26,144 | ) | (16,822 | ) | (6,660 | ) | (35,263 | ) | (31,413 | ) | ||||||||||
| Core loan interest income | $ | 491,389 | $ | 320,740 | $ | 152,780 | $ | 580,774 | $ | 424,628 | ||||||||||
| Average loan balance | $ | 12,530,348 | $ | 12,264,724 | $ | 11,710,075 | $ | 11,355,890 | $ | 11,209,992 | ||||||||||
| Core loan yield | 5.24 | % | 5.27 | % | 5.29 | % | 5.11 | % | 5.06 | % | ||||||||||
(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.
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