PINE BLUFF, Ark., Jan. 22, 2019 (GLOBE NEWSWIRE) -- Simmons First National Corporation (NASDAQ: SFNC) today announced record net income of $215.7 million for the year ended December 31, 2018, compared to $92.9 million for 2017, an increase of $122.8 million, or 132.1%. Diluted earnings per share were $2.32 for 2018, an increase of $0.99, or 74.4%, compared to prior year.  Included in the 2018 results were $4.5 million in net after-tax merger-related and branch right-sizing costs. Excluding the impact of these items, core earnings were $220.2 million for the year ended December 31, 2018, compared to $119.0 million for 2017, an increase of $101.2 million, or 85.0%. Core diluted earnings per share were $2.37, an increase of $0.67, or 39.4%, from the same period in 2017.

Fourth quarter 2018 net income was $55.6 million, or $0.60 diluted earnings per share, compared to $18.9 million, or $0.22 diluted earnings per share, for the same period in 2017. Excluding $805,000 in net after-tax merger-related and branch right sizing costs, fourth quarter 2018 core earnings were $56.5 million, an increase of $14.4 million compared to the same period in 2017.

“We had a remarkable year,” said George A. Makris, Jr., chairman and CEO.

Makris continued, “In addition to producing record financial results, we completed two successful system conversions for the banks acquired in late 2017 and a 2-for-1 stock split. We also announced yet another acquisition that will be completed this year. Throughout 2018, we experienced excellent organic growth in all our markets and balanced year-to-date loan yields with deposit costs in a rising-rate environment, all the while sustaining our reputable asset quality.

“This past year, we focused on improving our delivery of products and services to our customers throughout our existing footprint. We will carry this momentum into 2019 as we continue to focus on improving our business processes, expanding our customer relationships and closing our acquisition of Reliance Bancshares.”

Selected Highlights:YTD 2018YTD 20174th Qtr 20183rd Qtr 20184th Qtr 2017
          
Net income$215.7 million $92.9 million $55.6 million $55.2 million $18.9 million
Diluted earnings per share$2.32 $1.33 $0.60 $0.59 $0.22
Return on avg assets1.37% 0.92% 1.35% 1.37% 0.54%
Return on avg common equity10.00% 6.68% 9.98% 10.06% 3.88%
Return on tangible common equity18.44% 11.26% 17.96% 18.38% 7.53%
          
Core earnings(1)$220.2 million $119.0 million $56.5 million $56.5 million $42.0 million
Diluted core earnings per share(1)$2.37 $1.70 $0.61 $0.61 $0.48
Core return on avg assets(1)1.40% 1.18% 1.37% 1.40% 1.20%
Core return on avg common equity(1)10.21% 8.56% 10.13% 10.30% 8.63%
Core return on tangible common equity(1)18.81% 14.28% 18.21% 18.80% 15.97%
          
Efficiency ratio52.85% 55.27% 51.99% 53.47% 51.36%

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


Loans

($ in billions)4th Qtr 20183rd Qtr 20184th Qtr 2017
Total loans$11.7$11.9$10.8
Legacy loans (excludes loans acquired)$8.4$8.1$5.7
Loans acquired$3.3$3.8$5.1

Total loans, including those acquired, were $11.7 billion at December 31, 2018 an increase of $943.5 million, or 8.8%, compared to $10.8 billion at December 31, 2017. On a linked-quarter basis (December 31, 2018 compared to September 30, 2018), total loans decreased $135.0 million, or 1.1%. The seasonal decrease in our agricultural portfolios and mortgage warehouse lines of credit was $85.9 million and the continuing decrease in our liquidating portfolios was $18.6 million. The remaining decline was due to loan payoffs greater than new loan fundings during the quarter. “Based on our current loan pipeline, we estimate loan growth in the 7% to 7.5% range for 2019,” said Makris.     

Deposits

($ in billions)4th Qtr 20183rd Qtr 20184th Qtr 2017
Total deposits$12.4$12.1$11.1
Non-time deposits$9.5$9.6$9.2
Time deposits$2.9$2.5$1.9

Total deposits were $12.4 billion at December 31, 2018, an increase of $1.3 billion, or 11.8%, since December 31, 2017.  Total deposits increased $310.2 million, or 2.6%, compared to the previous quarter. 

Net Interest Income

 4th Qtr
2018
3rd Qtr
2018
2nd Qtr
2018
1st Qtr
2018
4th Qtr
2017
Loan yield (1)5.39%5.54%5.40%5.38%5.39%
Core loan yield (1) (2)5.25%5.19%5.04%4.95%4.75%
Security yield (1)2.87%2.74%2.75%2.67%2.62%
Cost of interest bearing deposits1.20%1.05%0.84%0.74%0.63%
Cost of deposits (3)0.93%0.81%0.64%0.56%0.48%
Cost of borrowed funds2.64%2.48%2.38%1.70%1.78%
Net interest margin (1)3.76%3.98%3.99%4.17%4.21%
Core net interest margin (1) (2)3.66%3.71%3.70%3.82%3.70%

(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 fourth quarter of 2018 was $137.8 million, an increase of $10.9 million, or 8.6%, from the same period of 2017. Included in interest income was the yield accretion recognized on loans acquired of $3.9 million and $15.7 million for the fourth quarters of 2018 and 2017, respectively.  

Net interest margin was 3.76% for the quarter ended December 31, 2018, a 22 basis point decrease from the third quarter. The Company’s core net interest margin, excluding the accretion, was 3.66% for the fourth quarter of 2018, a 5 basis point decrease from September 30, 2018.  Cost of interest bearing deposits was 1.20% for the fourth quarter of 2018, a 15 basis point increase from September 30, 2018.

Makris stated, “Since December 2017, the Federal Reserve Board has increased the Fed Funds target rate by 100 basis points.  During this same period, loan yield has remained even and core loan yield has increased 50 basis points while cost of deposits has risen 45 basis points.  In addition, the cost of borrowed funds increased 86 basis points during this period.”

Non-Interest Income

Non-interest income for 2018 was $143.9 million, an increase of $5.1 million compared to the previous year. The increase was primarily due to additional trust income and service charges on deposit accounts from our 2017 acquisitions.  These increases were partially offset by reductions in debit card fees and SBA lending income.  The interchange rate cap as established by the Durbin amendment became effective for the Company July 1, 2018, resulting in a $5.9 million reduction in debit card fees for the last six months of 2018.   

SBA lending premium income decreased $1.8 million when compared to 2017 as a result of management remaining selective in its decisions regarding loan sales as premium rates have continued to be lower in recent months compared to the first quarter of 2018.   

For the fourth quarter 2018, non-interest income was $34.6 million, a decrease of $2.0 million compared to $36.6 million during the same period of 2017 primarily the result of the interchange rate cap.  

Non-Interest Expense

Non-interest expense for 2018 was $392.2 million, an increase of $79.9 million compared to the previous year. Included in 2018 were $6.1 million of pre-tax merger-related expenses and branch rightsizing expenses. Excluding these expenses, core non-interest expense was $386.1 million, an increase of $101.1 million compared to 2017 core non-interest expense. Incremental increases in non-interest expense categories over previous year are primarily the result of our acquisitions in the fourth quarter of 2017.

Non-interest expense for the fourth quarter of 2018 was $95.4 million, a decrease of $4.9 million compared to the previous quarter. Included in this quarter were $1.1 million of pre-tax merger-related expenses and branch rightsizing expenses.   Excluding these expenses, core non-interest expense was $94.3 million, a decrease of $4.2 million compared to the previous quarter. The fourth quarter results include the positive impact of the true-up of year to date accruals on incentive plans.

The efficiency ratio for 2018 was 52.85% compared to 55.27% for 2017.

Asset Quality

 4th Qtr
2018
3rd Qtr
2018
2nd Qtr
2018
1st Qtr
2018
4th Qtr
2017
Allowance for loan losses to total loans0.67%0.68%0.73%0.75%0.73%
Allowance for loan losses to non-performing loans164%136%115%99%90%
Non-performing loans to total loans0.41%0.50%0.63%0.76%0.81%
Net charge-off ratio (annualized)0.35%0.36%0.17%0.24%0.53%
 -  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 December 31, 2018, the allowance for loan losses for legacy loans was $56.6 million. The allowance for loan losses for loans acquired was $95,000 and the acquired loan discount credit mark was $49.3 million. The allowances for loan losses and credit marks provide a total of $106.0 million of coverage, which equates to a total coverage ratio of 0.90% of gross loans. The ratio of credit mark and related allowance to loans acquired was 1.48%.

Provision for loan losses for 2018 was $38.1 million, an increase of $11.8 million from 2017. 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 2018.  Provision for loan losses for the fourth quarter 2018 was $9.6 million, a decrease of $725,000 from the third quarter 2018 and an increase of $19,000 from the same period in 2017.

Foreclosed Assets and Other Real Estate Owned

At December 31, 2018, foreclosed assets and other real estate owned were $25.6 million, a decrease of $6.6 million, or 20.4%, compared to the same period in 2017 and an increase of $2.9 million, or 12.8% from September 30, 2018. The composition of these assets is divided into three types:      

($ in millions)4th Qtr
2018
3rd Qtr
2018
2nd Qtr
2018
1st Qtr
2018
4th Qtr
2017
Closed bank branches, branch sites & associate relocation$8.0$9.6$7.2$8.1$9.8
Foreclosed assets - acquired$11.5$8.0$13.2$14.9$16.0
Foreclosed assets - legacy$6.1$5.1$10.1$6.1$6.3

Capital

 4th Qtr
2018
3rd Qtr
2018
2nd Qtr
2018
1st Qtr
2018
4th Qtr
2017
Stockholders’ equity to total assets13.6%13.4%13.3%13.5%13.9%
Tangible common equity to tangible assets8.4%8.1%7.9%7.9%8.1%
Regulatory tier 1 leverage ratio8.8%8.7%8.6%8.6%9.2%
Regulatory total risk-based capital ratio13.3%13.1%13.7%14.1%11.4%

At December 31, 2018, common stockholders' equity was $2.2 billion. Book value per share was $24.33 and tangible book value per share was $14.18 at December 31, 2018, compared to $22.65 and $12.34, respectively, at December 31, 2017.

Simmons First National Corporation

Simmons First National Corporation is a financial holding company headquartered in Pine Bluff, Arkansas, with total assets of approximately $16.5 billion as of December 31, 2018, conducting financial operations in 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. CST on Wednesday, January 23, 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 4279795. 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

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, allowance for loan losses, and the effect of certain new accounting standards on Simmons’ 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, 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, 2017, 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  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31 
 (Unaudited)   2018    2018    2018    2018    2017  
($ in thousands)               
 ASSETS                
 Cash and non-interest bearing balances due from banks $  171,792 $  125,231 $  162,567 $  170,811 $  205,025 
 Interest bearing balances due from banks and federal funds sold    661,666    388,573    781,279    688,853    393,017 
  Cash and cash equivalents    833,458    513,804    943,846    859,664    598,042 
 Interest bearing balances due from banks - time    4,934    3,954    2,974    3,069    3,314 
 Investment securities - held-to-maturity    289,194    323,306    333,503    352,756    368,058 
 Investment securities - available-for-sale    2,151,752    1,997,814    1,938,644    1,830,113    1,589,517 
 Mortgage loans held for sale    26,799    48,195    39,812    17,708    24,038 
 Other assets held for sale    1,790    5,136    14,898    24,784    165,780 
 Loans:                
 Legacy loans    8,430,388    8,123,274    7,133,461    6,290,383    5,705,609 
 Allowance for loan losses    (56,599)   (55,358)   (51,732)   (47,207)   (41,668)
 Loans acquired, net of discount and allowance    3,292,783    3,734,921    4,232,434    4,696,945    5,074,076 
 Net loans    11,666,572    11,802,837    11,314,163    10,940,121    10,738,017 
 Premises and equipment    295,060    287,246    288,777    289,355    287,249 
 Foreclosed assets and other real estate owned    25,565    22,664    30,503    29,140    32,118 
 Interest receivable    49,938    51,509    44,266    42,129    43,528 
 Bank owned life insurance    193,170    192,680    191,575    186,473    185,984 
 Goodwill    845,687    845,687    845,687    845,687    842,651 
 Other intangible assets    91,334    93,975    96,720    99,504    106,071 
 Other assets    68,084    92,457    80,165    76,806    71,439 
 Total assets $  16,543,337 $  16,281,264 $  16,165,533 $  15,597,309 $  15,055,806 
                
 LIABILITIES AND STOCKHOLDERS' EQUITY                
 Deposits:                
 Non-interest bearing transaction accounts $  2,672,405 $  2,778,670 $  2,683,489 $  2,734,287 $  2,665,249 
 Interest bearing transaction accounts and savings deposits    6,830,191    6,776,330    6,916,520    6,720,754    6,494,896 
 Time deposits    2,896,156    2,533,506    2,353,439    2,201,874    1,932,730 
  Total deposits    12,398,752    12,088,506    11,953,448    11,656,915    11,092,875 
 Federal funds purchased and securities sold                
 under agreements to repurchase    95,792    109,213    99,801    120,909    122,444 
 Other borrowings    1,345,450    1,420,917    1,451,811    1,140,986    1,380,024 
 Subordinated notes and debentures    353,950    372,934    413,337    468,465    140,565 
 Other liabilities held for sale    162    424    1,840    2,781    157,366 
 Accrued interest and other liabilities    102,797    105,951    98,388    98,202    77,968 
 Total liabilities    14,296,903    14,097,945    14,018,625    13,488,258    12,971,242 
                
 Stockholders' equity:                
 Common stock    923    923    923    922    920 
 Surplus    1,597,944    1,597,261    1,594,342    1,590,086    1,586,034 
 Undivided profits    674,941    633,175    591,826    552,105    514,874 
 Accumulated other comprehensive loss:                
 Unrealized depreciation on AFS securities    (27,374)   (48,040)   (40,183)   (34,062)   (17,264)
 Total stockholders' equity    2,246,434    2,183,319    2,146,908    2,109,051    2,084,564 
 Total liabilities and stockholders' equity $  16,543,337 $  16,281,264 $  16,165,533 $  15,597,309 $  15,055,806 
                

 

 Simmons First National Corporation      SFNC 
 Consolidated Statements of Income - Quarter-to-Date      
 For the Quarters Ended Dec 31
 Sep 30 Jun 30 Mar 31 Dec 31 
 (Unaudited)  2018   2018   2018   2018   2017  
($ in thousands, except per share data)               
 INTEREST INCOME                
Loans$159,996 $162,438 $150,253 $143,350 $132,617 
Interest bearing balances due from banks and federal funds sold 2,168  1,405  1,414  1,009  947 
Investment securities 15,760  14,640  14,296  12,622  11,456 
Mortgage loans held for sale 372  501  305  158  175 
TOTAL INTEREST INCOME 178,296  178,984  166,268  157,139  145,195 
INTEREST EXPENSE                
Time deposits 11,273  8,017  6,175  4,842  3,944 
Other deposits 17,489  16,373  12,286  10,755  8,762 
Federal funds purchased and securities               
sold under agreements to repurchase 121  104  88  110  97 
Other borrowings 7,134  6,240  5,141  5,139  3,993 
Subordinated notes and debentures 4,498  5,282  5,741  1,327  1,480 
TOTAL INTEREST EXPENSE 40,515  36,016  29,431  22,173  18,276 
NET INTEREST INCOME  137,781  142,968  136,837  134,966  126,919 
Provision for loan losses 9,620  10,345  9,033  9,150  9,601 
NET INTEREST INCOME AFTER PROVISION                
FOR LOAN LOSSES  128,161  132,623  127,804  125,816  117,318 
 NON-INTEREST INCOME                
Trust income 5,980  6,277  5,622  5,249  6,020 
Service charges on deposit accounts 11,263  10,837  10,063  10,345  10,587 
Other service charges and fees 1,501  1,201  2,017  2,750  2,774 
Mortgage and SBA lending income 1,643  1,825  3,130  4,445  3,713 
Investment banking income 829  664  814  834  786 
Debit and credit card fees 6,547  6,820  10,105  8,796  8,801 
Bank owned life insurance income 1,105  1,105  1,102  1,103  1,101 
Gain (loss) on sale of securities, net 8  54  (7) 6  (1,243)
Other income 5,712  4,942  5,202  4,007  4,090 
TOTAL NON-INTEREST INCOME 34,588  33,725  38,048  37,535  36,629 
 NON-INTEREST EXPENSE                
Salaries and employee benefits 49,193  55,515  55,678  56,357  49,288 
Occupancy expense, net 7,016  7,713  7,921  6,960  6,700 
Furniture and equipment expense 4,139  3,761  4,020  4,403  5,533 
Other real estate and foreclosure expense 1,540  538  1,382  1,020  865 
Deposit insurance 2,489  2,248  1,856  2,128  1,216 
Merger-related costs 797  804  1,465  1,711  14,044 
Other operating expenses 30,222  29,674  26,185  25,494  30,844 
TOTAL NON-INTEREST EXPENSE 95,396  100,253  98,507  98,073  108,490 
 NET INCOME BEFORE INCOME TAXES  67,353  66,095  67,345  65,278  45,457 
Provision for income taxes 11,707  10,902  13,783  13,966  26,554 
 NET INCOME $55,646 $55,193 $53,562 $51,312 $18,903 
 BASIC EARNINGS PER SHARE $0.60 $0.60 $0.58 $0.56 $0.22 
 DILUTED EARNINGS PER SHARE $0.60 $0.59 $0.58 $0.55 $0.22 
                

 

 Simmons First National Corporation     SFNC 
 Consolidated Risk-Based Capital      
 For the Quarters Ended  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31 
 (Unaudited)   2018    2018    2018    2018    2017  
($ in thousands)               
Tier 1 capital               
Stockholders' equity$2,246,434 $2,183,319 $2,146,908 $2,109,051 $2,084,564 
Trust preferred securities, net allowable -  -  -  -  - 
Disallowed intangible assets, net of deferred tax (912,024) (914,788) (917,050) (918,161) (902,371)
Unrealized loss on AFS securities   27,374    48,040    40,183    34,062    17,264 
Total Tier 1 capital   1,361,784    1,316,571    1,270,041    1,224,952    1,199,457 
                
Tier 2 capital               
Qualifying unrealized gain on AFS equity securities -  1  1  8  1 
Trust preferred securities and subordinated debt 353,950  372,934  413,337  468,466  140,565 
Qualifying allowance for loan losses and               
reserve for unfunded commitments   57,157    63,618    60,691    54,436    48,947 
Total Tier 2 capital   411,107    436,553    474,029    522,910    189,513 
Total risk-based capital$  1,772,891 $  1,753,124 $  1,744,070 $  1,747,862 $  1,388,970 
                
Common equity               
Tier 1 capital$1,361,784 $1,316,571 $1,270,041 $1,224,952 $1,199,457 
Less: Trust preferred securities   -     -     -     -     -  
Total common equity$  1,361,784 $  1,316,571 $  1,270,041 $  1,224,952 $  1,199,457 
                
Risk weighted assets$  13,327,282 $  13,402,910 $  12,713,093 $  12,417,233 $  12,234,160 
                
Adjusted average assets for leverage ratio$  15,512,448 $  15,179,889 $  14,714,205 $  14,179,390 $  13,016,478 
                
Ratios at end of quarter               
Equity to assets 13.58% 13.41% 13.28% 13.52% 13.85%
Tangible common equity to tangible assets (1) 8.39% 8.11% 7.91% 7.94% 8.05%
Common equity Tier 1 ratio (CET1) 10.22% 9.82% 9.99% 9.86% 9.80%
Tier 1 leverage ratio 8.78% 8.67% 8.63% 8.64% 9.21%
Tier 1 risk-based capital ratio 10.22% 9.82% 9.99% 9.86% 9.80%
Total risk-based capital ratio 13.30% 13.08% 13.72% 14.08% 11.35%
      
(1) Calculations of tangible common equity to tangible assets and the reconciliations to GAAP are included in the
schedules accompanying this release.     
      

 

 Simmons First National Corporation     SFNC  
 Consolidated Loans and Investments       
 For the Quarters Ended  Dec 31 
  Sep 30    Jun 30  Mar 31   Dec 31  
 (Unaudited)  2018 
  2018    2018  2018    2017 
($ in thousands)               
Legacy Loan Portfolio - End of Period (1)               
Consumer               
Credit cards$204,173 $182,137 $180,352 $176,602 $185,422 
Other consumer   201,297    259,581    277,330    284,285    280,094 
Total consumer 405,470  441,718  457,682  460,887  465,516 
Real Estate               
Construction 1,300,723  1,229,888  967,720  786,077  614,155 
Single-family residential 1,440,443  1,401,991  1,314,787  1,193,464  1,094,633 
Other commercial   3,225,287    3,077,188    2,816,420    2,611,358    2,530,824 
Total real estate 5,966,453  5,709,067  5,098,927  4,590,899  4,239,612 
Commercial               
Commercial 1,774,909  1,608,342  1,237,910  971,704  825,217 
Agricultural   164,514    218,778    187,006    128,247    148,302 
Total commercial 1,939,423  1,827,120  1,424,916  1,099,951  973,519 
Other   119,042    145,369    151,936    138,646    26,962 
Total Loans$  8,430,388 $  8,123,274 $  7,133,461 $  6,290,383 $  5,705,609 
                
 (1) Excludes all acquired loans.                
                
Investment Securities - End of Period               
Held-to-Maturity                
U.S. Government agencies$16,990 $34,983 $36,976 $46,961 $46,945 
Mortgage-backed securities 13,346  13,933  14,645  15,404  16,132 
State and political subdivisions 256,863  272,396  279,787  286,901  301,491 
Other securities   1,995    1,994    2,095    3,490    3,490 
Total held-to-maturity   289,194    323,306    333,503    352,756    368,058 
Available-for-Sale                
U.S. Government agencies$154,301 $141,460 $145,767 $149,804 $139,724 
Mortgage-backed securities 1,522,900  1,419,626  1,395,231  1,356,179  1,187,317 
State and political subdivisions 314,843  282,439  245,335  185,888  143,165 
FHLB stock 73,105  72,579  72,042  58,177  58,914 
Other securities   86,603    81,710    80,269    80,065    60,397 
Total available-for-sale   2,151,752    1,997,814    1,938,644    1,830,113    1,589,517 
Total investment securities$  2,440,946 $  2,321,120 $  2,272,147 $  2,182,869 $  1,957,575 
Fair value - HTM investment securities$  290,830 $  322,838 $  334,857 $  354,649 $  373,298 
                
Investment Securities - QTD Average               
Taxable securities$1,815,203 $1,775,193 $1,750,172 $1,618,270 $1,569,173 
Tax exempt securities   551,185    539,135    514,838    460,675    446,040 
Total investment securities - QTD average$  2,366,388 $  2,314,328 $  2,265,010 $  2,078,945 $  2,015,213 
                

 

 Simmons First National Corporation      SFNC 
 Consolidated Loans and Credit Coverage      
 For the Quarters Ended  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31 
 (Unaudited)   2018    2018    2018    2018    2017  
 ($ in thousands)                
LOANS               
Legacy loans$  8,430,388 $  8,123,274 $  7,133,461 $  6,290,383 $  5,705,609 
Allowance for loan losses (legacy loans)   (56,599)   (55,358)   (51,732)   (47,207)   (41,668)
Legacy loans (net of allowance)   8,373,789    8,067,916    7,081,729    6,243,176    5,663,941 
Loans acquired   3,342,175    3,790,234    4,302,760    4,776,439    5,163,769 
Credit discount   (49,297)   (53,968)   (68,282)   (79,087)   (89,275)
Allowance for loan losses (loans acquired)   (95)   (1,345)   (2,044)   (407)   (418)
Loans acquired (net of discount and allowance)   3,292,783    3,734,921    4,232,434    4,696,945    5,074,076 
Net loans$  11,666,572 $  11,802,837 $  11,314,163 $  10,940,121 $  10,738,017 
                
                
Loan Coverage Ratios                
Allowance for loan losses to legacy loans 0.67% 0.68% 0.73% 0.75% 0.73%
                
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) 1.48% 1.46% 1.63% 1.66% 1.74%
                
Total allowance and credit coverage (non-GAAP) (1) 0.90% 0.93% 1.07% 1.14% 1.21%
                
(1) Calculations of the non-GAAP loan coverage ratios and the reconciliations to GAAP are included in the schedules accompanying
this release.     
      

 

 Simmons First National Corporation     SFNC 
 Consolidated Allowance and Asset Quality      
 For the Quarters Ended  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31 
 (Unaudited)   2018    2018    2018    2018    2017  
($ in thousands)               
Allowance for Loan Losses (Legacy Loans)               
Balance, beginning of quarter$  55,358 $  51,732 $  47,207 $  41,668 $  42,717 
Loans charged off               
Credit cards 1,121  919    1,012    999    943 
Other consumer 2,894  1,321    1,366    1,056    781 
Real estate 337  4,952    161    455    4,725 
Commercial   3,480    592    790    1,761    4,754 
Total loans charged off   7,832    7,784    3,329    4,271    11,203 
                
Recoveries of loans previously charged off               
Credit cards 227  229    286    263    233 
Other consumer 154  176    133    94    468 
Real estate 367  210    112    302    233 
Commercial   167    450    59    69    20 
Total recoveries   915    1,065    590    728    954 
Net loans charged off 6,917  6,719    2,739    3,543    10,249 
Provision for loan losses   8,158    10,345    7,264    9,082    9,200 
Balance, end of quarter$  56,599 $  55,358 $  51,732 $  47,207 $  41,668 
                
Non-performing assets (1) (2)               
Non-performing loans               
Nonaccrual loans$34,201 $40,505 $  44,548 $  47,395 $  45,642 
Loans past due 90 days or more   224    281    303    336    520 
Total non-performing loans   34,425    40,786    44,851    47,731    46,162 
Other non-performing assets               
Foreclosed assets and other real estate owned (2) 25,565  22,664    30,503    29,140    32,118 
Other non-performing assets   553    524    573    794    675 
Total other non-performing assets   26,118    23,188    31,076    29,934    32,793 
Total non-performing assets$  60,543 $  63,974 $  75,927 $  77,665 $  78,955 
Performing TDRs (troubled debt restructurings)$6,369 $8,413 $  6,367 $  6,459 $  7,107 
                
Ratios (1) (2)               
Allowance for loan losses to total loans 0.67% 0.68% 0.73% 0.75% 0.73%
Allowance for loan losses to non-performing loans 164% 136% 115% 99% 90%
Non-performing loans to total loans 0.41% 0.50% 0.63% 0.76% 0.81%
Non-performing assets (including performing TDRs)               
to total assets 0.40% 0.44% 0.51% 0.54% 0.57%
Non-performing assets to total assets 0.37% 0.39% 0.47% 0.50% 0.52%
Annualized net charge offs to total loans 0.35% 0.36% 0.17% 0.24% 0.53%
Annualized net credit card charge offs to               
total credit card loans 1.86% 1.47% 1.60% 1.63% 1.54%
                
 (1) Excludes all acquired loans, except for their inclusion in total assets.    
 (2) Includes acquired foreclosed assets and acquired other real estate owned.    
      

 

 Simmons First National Corporation           SFNC 
 Consolidated - Average Balance Sheet and Net Interest Income Analysis        
 For the Quarters Ended            
 (Unaudited)            
  Three Months Ended
Dec 2018 
  Three Months Ended
Sep 2018 
  Three Months Ended
Dec 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$499,961 $2,168 1.72% $373,528 $1,405 1.49% $342,589 $947 1.10%
Investment securities - taxable 1,815,200  11,828 2.59%  1,775,193  10,892 2.43%  1,569,173  8,592 2.17%
Investment securities - non-taxable (FTE) 551,188  5,313 3.82%  539,135  5,064 3.73%  446,040  4,702 4.18%
Mortgage loans held for sale 30,851  372 4.78%  43,554  501 4.56%  15,144  175 4.58%
Assets held in trading accounts -  - 0.00%  -  - 0.00%  14  - 0.00%
Loans, including acquired loans   11,788,838    160,081 5.39%    11,641,843    162,515 5.54%    9,772,043    132,704 5.39%
Total interest earning assets (FTE) 14,686,038    179,762 4.86%  14,373,253    180,377 4.98%  12,145,003    147,120 4.81%
Non-earning assets   1,671,715        1,667,631        1,752,775    
Total assets$  16,357,753     $  16,040,884     $  13,897,778    
                     
LIABILITIES AND STOCKHOLDERS' EQUITY                    
Interest bearing liabilities:                    
Interest bearing transaction and                    
savings accounts$6,770,217 $17,489 1.02% $6,840,403 $16,373 0.95% $6,132,456 $8,762 0.57%
Time deposits   2,752,113    11,273 1.63%    2,379,142    8,017 1.34%    1,852,148    3,944 0.84%
Total interest bearing deposits 9,522,330  28,762 1.20%  9,219,545  24,390 1.05%  7,984,604  12,706 0.63%
Federal funds purchased and securities                   
sold under agreement to repurchase 108,687  121 0.44%  107,770  104 0.38%  126,432  97 0.30%
Other borrowings 1,302,453  7,134 2.17%  1,375,052  6,240 1.80%  988,614  3,993 1.60%
Subordinated notes and debentures   353,906    4,498 5.04%    379,168    5,282 5.53%    127,680    1,480 4.60%
Total interest bearing liabilities 11,287,376    40,515 1.42%  11,081,535    36,016 1.29%  9,227,330    18,276 0.79%
Non-interest bearing liabilities:                    
Non-interest bearing deposits 2,768,437      2,679,469      2,476,235    
Other liabilities   90,723        103,315        262,409    
Total liabilities 14,146,536      13,864,319      11,965,974    
Stockholders' equity   2,211,217        2,176,565        1,931,804    
Total liabilities and stockholders' equity$  16,357,753     $  16,040,884     $  13,897,778    
Net interest income (FTE)   $  139,247     $  144,361     $  128,844 
Net interest spread (FTE)      3.44%       3.69%       4.02%
Net interest margin (FTE) - quarter-to-date      3.76%       3.98%       4.21%
                     
Net interest margin (FTE) - year-to-date      3.97%       4.04%       4.07%
                     
Core net interest margin (FTE) - quarter-to-date (1)      3.66%       3.71%       3.70%
Core loan yield (FTE) - quarter-to-date (1)      5.25%       5.19%       4.75%
                     
Core net interest margin (FTE) - year-to-date (1)      3.72%       3.74%       3.76%
Core loan yield (FTE) - year-to-date (1)      5.11%       5.06%       4.69%
                   
(1) Calculations of core net interest margin and core loan yield and the reconciliations to GAAP are included in the schedules accompanying this release. 
            

 

 Simmons First National Corporation     SFNC
 Consolidated - Selected Financial Data      
 For the Quarters Ended  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31 
 (Unaudited)   2018    2018    2018    2018    2017  
($ in thousands, except share data)               
QUARTER-TO-DATE               
Financial Highlights - GAAP               
Net Income$  55,646 $  55,193 $  53,562 $  51,312 $  18,903 
Diluted earnings per share   0.60    0.59    0.58    0.55    0.22 
Return on average assets 1.35% 1.37% 1.38% 1.38% 0.54%
Return on average common equity 9.98% 10.06% 10.05% 9.90% 3.88%
Return on tangible common equity 17.96% 18.38% 18.70% 18.77% 7.53%
Net interest margin (FTE) 3.76% 3.98% 3.99% 4.17% 4.21%
FTE adjustment   1,466    1,393    1,308    1,130    1,925 
Amortization of intangibles   2,642    2,745    2,785    2,837    2,839 
Amortization of intangibles, net of taxes   1,952    2,027    2,057    2,096    1,725 
Average diluted shares outstanding   92,897,105    92,840,851    92,733,140    92,638,765    87,036,044 
Cash dividends declared per common share   0.15    0.15    0.15    0.15    0.13 
Financial Highlights - Core (non-GAAP)               
Core earnings (excludes non-core items) (1)$  56,451 $  56,504 $  54,660 $  52,618 $  42,018 
Diluted core earnings per share (1)   0.61    0.61    0.59    0.57    0.48 
Core net interest margin (FTE) (2) 3.66% 3.71% 3.70% 3.82% 3.70%
Accretable yield on acquired loans   3,850    10,006    10,113    11,294    15,684 
Efficiency ratio (1) 51.99% 53.47% 52.70% 53.24% 51.36%
Core return on average assets (1) 1.37% 1.40% 1.41% 1.41% 1.20%
Core return on average common equity (1) 10.13% 10.30% 10.26% 10.15% 8.63%
Core return on tangible common equity (1) 18.21% 18.80% 19.06% 19.23% 15.97%
YEAR-TO-DATE               
Financial Highlights - GAAP               
Net Income$  215,713 $  160,067 $  104,874 $  51,312 $  92,940 
Diluted earnings per share   2.32    1.72    1.13    0.55    1.33 
Return on average assets 1.37% 1.37% 1.38% 1.38% 0.92%
Return on average common equity 10.00% 10.01% 9.98% 9.90% 6.68%
Return on tangible common equity 18.44% 18.61% 18.73% 18.77% 11.26%
Net interest margin (FTE) 3.97% 4.04% 4.08% 4.17% 4.07%
FTE adjustment   5,297    3,831    2,438    1,130    7,723 
Amortization of intangibles   11,009    8,367    5,622    2,837    7,666 
Amortization of intangibles, net of taxes   8,132    6,180    4,153    2,096    4,659 
Average diluted shares outstanding   92,830,485    92,796,860    92,692,234    92,638,765    69,852,920 
Cash dividends declared per common share   0.60    0.45    0.30    0.15    0.50 
Financial Highlights - Core (non-GAAP)               
Core earnings (excludes non-core items) (1)$  220,233 $  163,782 $  107,278 $  52,618 $  119,049 
Diluted core earnings per share (1)   2.37    1.76    1.16    0.57    1.70 
Core net interest margin (FTE) (2) 3.72% 3.74% 3.76% 3.82% 3.76%
Accretable yield on acquired loans   35,263    31,413    21,407    11,294    27,793 
Efficiency ratio (1) 52.85% 53.14% 52.97% 53.24% 55.27%
Core return on average assets (1) 1.40% 1.41% 1.41% 1.41% 1.18%
Core return on average common equity (1) 10.21% 10.24% 10.20% 10.15% 8.56%
Core return on tangible common equity (1) 18.81% 19.03% 19.14% 19.23% 14.28%
END OF PERIOD               
Book value per share$  24.33 $  23.66 $  23.26 $  22.86 $  22.65 
Tangible book value per share   14.18    13.48    13.05    12.62    12.34 
Shares outstanding   92,347,643    92,291,070    92,281,370    92,242,389    92,029,118 
Full-time equivalent employees   2,654    2,635    2,659    2,626    2,640 
Total number of financial centers   191    191    199    200    200 
      
 (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.      
      

 

 Simmons First National Corporation     SFNC
 Consolidated - Reconciliation of Core Earnings (non-GAAP)    
 For the Quarters Ended  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31 
 (Unaudited)   2018    2018    2018    2018    2017  
($ in thousands, except per share data)               
QUARTER-TO-DATE               
 Net Income $  55,646 $  55,193 $  53,562 $  51,312 $  18,903 
 Non-core items                
Donation to Simmons Foundation   -     -     -     -     5,000 
Merger-related costs   797    804    1,465    1,711    14,044 
Branch right-sizing   292    970    22    57    116 
Tax effect (1)   (284)   (463)   (389)   (462)   (7,516)
 Net non-core items (before SAB 118 adjustment)    805    1,311    1,098    1,306    11,644 
SAB 118 adjustment (2)   -     -     -     -     11,471 
 Core earnings (non-GAAP) $  56,451 $  56,504 $  54,660 $  52,618 $  42,018 
                
 Diluted earnings per share $  0.60 $  0.59 $  0.58 $  0.55 $  0.22 
 Non-core items                
Donation to Simmons Foundation   -     -     -     -     0.06 
Merger-related costs   0.01    0.01    0.02    0.02    0.17 
Branch right-sizing   -     0.01    -     -     -  
Tax effect (1)   -     -     (0.01)   -     (0.10)
 Net non-core items (before SAB 118 adjustment)    0.01    0.02    0.01    0.02    0.13 
SAB 118 adjustment (2)   -     -     -     -     0.13 
 Core earnings (non-GAAP) $  0.61 $  0.61 $  0.59 $  0.57 $  0.48 
                
YEAR-TO-DATE               
 Net Income $  215,713 $  160,067 $  104,874 $  51,312 $  92,940 
 Non-core items                
Gain on sale of P&C insurance business   -     -     -     -     (3,708)
Donation to Simmons Foundation   -     -     -     -     5,000 
Merger-related costs   4,777    3,980    3,176    1,711    21,923 
Branch right-sizing   1,341    1,049    79    57    169 
Tax effect (1)   (1,598)   (1,314)   (851)   (462)   (8,746)
 Net non-core items (before SAB 118 adjustment)    4,520    3,715    2,404    1,306    14,638 
SAB 118 adjustment (2)   -     -     -     -     11,471 
 Core earnings (non-GAAP) $  220,233 $  163,782 $  107,278 $  52,618 $  119,049 
                
 Diluted earnings per share $  2.32 $  1.72 $  1.13 $  0.55 $  1.33 
 Non-core items                
Gain on sale of P&C insurance business   -     -     -     -     (0.04)
Donation to Simmons Foundation   -     -     -     -     0.07 
Merger-related costs   0.05    0.04    0.04    0.02    0.31 
Branch right-sizing   0.01    0.01    -     -     -  
Tax effect (1)   (0.02)   (0.01)   (0.01)   -     (0.13)
 Net non-core items (before SAB 118 adjustment)    0.04    0.04    0.03    0.02    0.21 
SAB 118 adjustment (2)   -     -     -     -     0.16 
 Core earnings (non-GAAP) $  2.36 $  1.76 $  1.16 $  0.57 $  1.70 
                
 (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.   
      

 

Simmons First National Corporation     SFNC 
 Reconciliation Of Non-GAAP Financial Measures - End of Period    
 For the Quarters Ended      
 (Unaudited)  Dec 31  Sept 30  Jun 30  Mar 31  Dec 31 
   2018    2018    2018    2018    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$2,246,434 $2,183,319 $2,146,908 $  2,109,051 $  2,084,564 
Intangible assets:               
Goodwill (845,687) (845,687) (845,687)   (845,687)   (842,651)
Other intangible assets (91,334) (93,975) (96,720)   (99,504)   (106,071)
Total intangibles (937,021) (939,662) (942,407)   (945,191)   (948,722)
Tangible common stockholders' equity$1,309,413 $1,243,657 $1,204,501 $  1,163,860 $  1,135,842 
                
Total assets$16,543,337 $16,281,264 $16,165,533 $  15,597,309 $  15,055,806 
Intangible assets:               
Goodwill (845,687) (845,687) (845,687)   (845,687)   (842,651)
Other intangible assets (91,334) (93,975) (96,720)   (99,504)   (106,071)
Total intangibles (937,021) (939,662) (942,407)   (945,191)   (948,722)
Tangible assets$15,606,316 $15,341,602 $15,223,126 $  14,652,118 $  14,107,084 
                
Ratio of equity to assets 13.58% 13.41% 13.28% 13.52% 13.85%
Ratio of tangible common equity to tangible assets 8.39% 8.11% 7.91% 7.94% 8.05%
                
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$49,297 $53,968 $68,282 $  79,087 $  89,275 
Allowance for loan losses on acquired loans 95  1,345  2,044    407    418 
Total credit discount and ALLL on acquired loans$49,392 $55,313 $70,326 $  79,494 $  89,693 
Total loans acquired$3,342,175 $3,790,234 $4,302,760 $  4,776,439 $  5,163,769 
Discount and ALLL on acquired loans to acquired loans 1.48% 1.46% 1.63% 1.66% 1.74%
                
Calculation of Total Allowance and Credit Coverage               
                
Allowance for loan losses$56,599 $55,358 $51,732 $  47,207 $  41,668 
Total credit discount and ALLL on acquired loans 49,392  55,313  70,326    79,494    89,693 
Total allowance and credit discount$105,991 $110,671 $122,058 $  126,701 $  131,361 
Total loans$11,772,563 $11,913,508 $11,436,221 $  11,066,822 $  10,869,378 
Total allowance and credit coverage 0.90% 0.93% 1.07% 1.14% 1.21%
                
Calculation of Tangible Book Value per Share               
                
Total common stockholders' equity$2,246,434 $2,183,319 $2,146,908 $  2,109,051 $  2,084,564 
Intangible assets:               
Goodwill (845,687) (845,687) (845,687)   (845,687)   (842,651)
Other intangible assets (91,334) (93,975) (96,720)   (99,504)   (106,071)
Total intangibles (937,021) (939,662) (942,407)   (945,191)   (948,722)
Tangible common stockholders' equity$1,309,413 $1,243,657 $1,204,501 $  1,163,860 $  1,135,842 
Shares of common stock outstanding 92,347,643  92,291,070  92,281,370    92,242,389    92,029,118 
Book value per common share$24.33 $23.66 $23.26 $  22.86 $  22.65 
Tangible book value per common share$14.18 $13.48 $13.05 $  12.62 $  12.34 
                

 

Simmons First National Corporation     SFNC
 Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date    
 For the Quarters Ended      
 (Unaudited)  Dec 31  Sept 30  Jun 30  Mar 31  Dec 31 
   2018    2018    2018    2018    2017  
($ in thousands)               
Calculation of Core Return on Average Assets               
                
Net income$  55,646 $  55,193 $  53,562 $  51,312 $  18,903 
Net non-core items, net of taxes, adjustment   805    1,311    1,098    1,306    23,115 
Core earnings$  56,451 $  56,504 $  54,660 $  52,618 $  42,018 
                
Average total assets$  16,357,753 $  16,040,884 $  15,580,697 $  15,088,210 $  13,897,778 
                
Return on average assets 1.35% 1.37% 1.38% 1.38% 0.54%
Core return on average assets 1.37% 1.40% 1.41% 1.41% 1.20%
                
Calculation of Return on Tangible Common Equity               
                
Net income$  55,646 $  55,193 $  53,562 $  51,312 $  18,903 
Amortization of intangibles, net of taxes   1,952    2,027    2,057    2,096    1,725 
Total income available to common stockholders$  57,598 $  57,220 $  55,619 $  53,408 $  20,628 
                
Net non-core items, net of taxes   805    1,311    1,098    1,306    23,115 
Core earnings   56,451    56,504    54,660    52,618    42,018 
Amortization of intangibles, net of taxes   1,952    2,027    2,057    2,096    1,725 
Total core income available to common stockholders$  58,403 $  58,531 $  56,717 $  54,714 $  43,743 
                
Average common stockholders' equity$  2,211,217 $  2,176,565 $  2,137,097 $  2,103,052 $  1,931,804 
Average intangible assets:               
Goodwill   (845,687)   (845,687)   (845,687)   (844,148)   (731,661)
Other intangibles   (92,990)   (95,576)   (98,152)   (104,718)   (113,770)
Total average intangibles   (938,677)   (941,263)   (943,839)   (948,866)   (845,431)
Average tangible common stockholders' equity$  1,272,540 $  1,235,302 $  1,193,258 $  1,154,186 $  1,086,373 
                
Return on average common equity 9.98% 10.06% 10.05% 9.90% 3.88%
Return on tangible common equity 17.96% 18.38% 18.70% 18.77% 7.53%
Core return on average common equity 10.13% 10.30% 10.26% 10.15% 8.63%
Core return on tangible common equity 18.21% 18.80% 19.06% 19.23% 15.97%
                
Calculation of Efficiency Ratio (1)               
                
Non-interest expense$  95,396 $  100,253 $  98,507 $  98,073 $  108,490 
Non-core non-interest expense adjustment   (1,089)   (1,774)   (1,483)   (1,772)   (19,160)
Other real estate and foreclosure expense adjustment   (1,300)   (538)   (1,382)   (1,020)   (865)
Amortization of intangibles adjustment   (2,642)   (2,745)   (2,785)   (2,837)   (2,839)
Efficiency ratio numerator$  90,365 $  95,196 $  92,857 $  92,444 $  85,626 
                
Net-interest income$  137,781 $  142,968 $  136,837 $  134,966 $  126,919 
Non-interest income   34,588    33,725    38,048    37,535    36,629 
Non-core non-interest income adjustment   -     -     4    (4)   -  
Fully tax-equivalent adjustment   1,466    1,393    1,308    1,130    1,925 
(Gain) loss on sale of securities   (8)   (54)   7    (6)   1,243 
Efficiency ratio denominator$  173,827 $  178,032 $  176,204 $  173,621 $  166,716 
                
Efficiency ratio (1) 51.99% 53.47% 52.70% 53.24% 51.36%
                
Calculation of Core Net Interest Margin               
                
Net interest income$  137,781 $  142,968 $  136,837 $  134,966 $  126,919 
Fully tax-equivalent adjustment   1,466    1,393    1,308    1,130    1,925 
Fully tax-equivalent net interest income   139,247    144,361    138,145    136,096    128,844 
                
Total accretable yield   (3,850)   (10,006)   (10,113)   (11,294)   (15,684)
Core net interest income$  135,397 $  134,355 $  128,032 $  124,802 $  113,160 
Average earning assets$  14,686,038 $  14,373,253 $  13,876,557 $  13,251,549 $  12,145,003 
                
Net interest margin 3.76% 3.98% 3.99% 4.17% 4.21%
Core net interest margin 3.66% 3.71% 3.70% 3.82% 3.70%
                
Calculation of Core Loan Yield               
                
Loan interest income$  159,996 $  162,438 $  150,253 $  143,350 $  132,617 
Total accretable yield   (3,850)   (10,006)   (10,113)   (11,294)   (15,684)
Core loan interest income$  156,146 $  152,432 $  140,140 $  132,056 $  116,933 
Average loan balance$  11,788,838 $  11,641,843 $  11,159,872 $  10,819,324 $  9,772,043 
                
Core loan yield 5.25% 5.19% 5.04% 4.95% 4.75%
                
(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. 
      

 

Simmons First National Corporation     SFNC
 Reconciliation Of Non-GAAP Financial Measures - Year-to-Date     
 For the Quarters Ended      
 (Unaudited)  Dec 31  Sept 30  Jun 30  Mar 31  Dec 31 
   2018    2018    2018    2018    2017  
($ in thousands)               
Calculation of Core Return on Average Assets               
                
Net income$  215,713 $  160,067 $  104,874 $  51,312 $  92,940 
Net non-core items, net of taxes, adjustment   4,520    3,715    2,404    1,306    26,109 
Core earnings$  220,233 $  163,782 $  107,278 $  52,618 $  119,049 
                
Average total assets$  15,771,362 $  15,573,762 $  15,334,453 $  15,088,210 $  10,074,951 
                
Return on average assets 1.37% 1.37% 1.38% 1.38% 0.92%
Core return on average assets 1.40% 1.41% 1.41% 1.41% 1.18%
                
Calculation of Return on Tangible Common Equity               
                
Net income$  215,713 $  160,067 $  104,874 $  51,312 $  92,940 
Amortization of intangibles, net of taxes   8,132    6,180    4,153    2,096    4,659 
Total income available to common stockholders$  223,845 $  166,247 $  109,027 $  53,408 $  97,599 
                
Net non-core items, net of taxes   4,520    3,715    2,404    1,306    26,109 
Core earnings   220,233    163,782    107,278    52,618    119,049 
Amortization of intangibles, net of taxes   8,132    6,180    4,153    2,096    4,659 
Total core income available to common stockholders$  228,365 $  169,962 $  111,431 $  54,714 $  123,708 
                
Average common stockholders' equity$  2,157,097 $  2,138,818 $  2,120,075 $  2,103,052 $  1,390,815 
Average intangible assets:               
Goodwill   (845,308)   (845,180)   (844,917)   (844,148)   (455,453)
Other intangibles   (97,820)   (99,448)   (101,435)   (104,718)   (68,896)
Total average intangibles   (943,128)   (944,628)   (946,352)   (948,866)   (524,349)
Average tangible common stockholders' equity$  1,213,969 $  1,194,190 $  1,173,723 $  1,154,186 $  866,466 
                
Return on average common equity 10.00% 10.01% 9.98% 9.90% 6.68%
Return on tangible common equity 18.44% 18.61% 18.73% 18.77% 11.26%
Core return on average common equity 10.21% 10.24% 10.20% 10.15% 8.56%
Core return on tangible common equity 18.81% 19.03% 19.14% 19.23% 14.28%
                
Calculation of Efficiency Ratio (1)               
                
Non-interest expense$  392,229 $  296,833 $  196,580 $  98,073 $  312,379 
Non-core non-interest expense adjustment   (6,118)   (5,029)   (3,255)   (1,772)   (27,357)
Other real estate and foreclosure expense adjustment   (4,240)   (2,940)   (2,402)   (1,020)   (3,042)
Amortization of intangibles adjustment   (11,009)   (8,367)   (5,622)   (2,837)   (7,666)
Efficiency ratio numerator$  370,862 $  280,497 $  185,301 $  92,444 $  274,314 
                
Net-interest income$  552,552 $  414,771 $  271,803 $  134,966 $  354,930 
Non-interest income   143,896    109,308    75,583    37,535    138,765 
Non-core non-interest income adjustment   -     -     -     (4)   (3,972)
Fully tax-equivalent adjustment   5,297    3,831    2,438    1,130    7,723 
(Gain) loss on sale of securities   (61)   (53)   1    (6)   (1,059)
Efficiency ratio denominator$  701,684 $  527,857 $  349,825 $  173,621 $  496,387 
                
Efficiency ratio (1) 52.85% 53.14% 52.97% 53.24% 55.27%
                
Calculation of Core Net Interest Margin               
                
Net interest income$  552,552 $  414,771 $  271,803 $  134,966 $  354,930 
Fully tax-equivalent adjustment   5,297    3,831    2,438    1,130    7,723 
Fully tax-equivalent net interest income   557,849    418,602    274,241    136,096    362,653 
                
Total accretable yield   (35,263)   (31,413)   (21,407)   (11,294)   (27,793)
Core net interest income$  522,586 $  387,189 $  252,834 $  124,802 $  334,860 
Average earning assets$  14,036,614 $  13,837,639 $  13,564,056 $  13,251,549 $  8,908,418 
                
Net interest margin 3.97% 4.04% 4.08% 4.17% 4.07%
Core net interest margin 3.72% 3.74% 3.76% 3.82% 3.76%
                
Calculation of Core Loan Yield               
                
Loan interest income$  616,037 $  456,041 $  293,603 $  143,350 $  352,351 
Total accretable yield   (35,263)   (31,413)   (21,407)   (11,294)   (27,793)
Core loan interest income$  580,774 $  424,628 $  272,196 $  132,056 $  324,558 
Average loan balance$  11,355,890 $  11,209,992 $  10,989,600 $  10,819,324 $  6,918,293 
                
Core loan yield 5.11% 5.06% 4.99% 4.95% 4.69%
                
(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.