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CST: 26/08/2019 00:36:02   

Simmons Reports First Quarter 2019 Earnings

125 Days ago

PINE BLUFF, Ark., April 22, 2019 (GLOBE NEWSWIRE) -- Simmons First National Corporation (NASDAQ: SFNC) today announced net income of $47.7 million for the quarter ended March 31, 2019, compared to $51.3 million for the same period in 2018, a decrease of $3.6 million, or 7.1%. Diluted earnings per share were $0.51, a decrease of $0.04, or 7.3%, from the same period in 2018. Included in first quarter 2019 results was $1.4 million in net after-tax merger-related, early retirement program and branch right-sizing costs.

Excluding the impact of these items, core earnings were $49.1 million for the quarter ended March 31, 2019, compared to $52.6 million for the quarter ended March 31, 2018, a decrease of $3.5 million, or 6.7%. Core diluted earnings per share were $0.53, a decrease of $0.04, or 7.0%, from the same period in 2018.

“We had solid operating results in the first quarter. Revenue was affected by three significant items compared to the first quarter of 2018.  Accretion income was down $4.6 million; debit card interchange income, primarily as a result of the Durbin rate cap, was down $2.8 million; and the gain on sale of securities was up $2.7 million, resulting in a net decrease of $4.7 million from the previous year,” said George A. Makris Jr., Chairman and CEO.

Makris continued, “We would also like to welcome our newest customers and associates from the Reliance Bank merger into the Simmons family. We closed the transaction Friday, April 12, 2019, and performed the systems conversion over that weekend. We are excited about our growth opportunities in the St. Louis market due to our increased presence.”

       
Selected Highlights: 1st QTR 2019 4th QTR 2018 1st QTR 2018
Net income $47.7 million $55.6 million $51.3 million
Diluted earnings per share $0.51 $0.60 $0.55
Return on avg assets 1.19% 1.35% 1.38%
Return on avg common equity 8.60% 9.98% 9.90%
Return on tangible common equity 15.34% 17.96% 18.77%
       
Core earnings(1) $49.1 million $56.5 million $52.6 million
Diluted core earnings per share(1) $0.53 $0.61 $0.57
Core return on avg assets(1) 1.22% 1.37% 1.41%
Core return on avg common equity(1) 8.85% 10.13% 10.15%
Core return on tangible common equity(1) 15.76% 18.21% 19.23%
       
Efficiency ratio(2) 56.76% 51.99% 53.24%
  1. Core earnings excludes non-core items, and is a non-GAAP measurement.
  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.

Loans

(In billions) 1st Qtr 2019 4th Qtr 2018 1st Qtr 2018
Total loans $11.7 $11.7 $11.0
Legacy loans (excludes loans acquired) $8.7 $8.4 $6.3
Loans acquired $3.0 $3.3 $4.7
       

Total loans, including those acquired, were $11.7 billion at March 31, 2019 an increase of $753.4 million, or 6.9%, compared to $11.0 billion at March 31, 2018. On a linked-quarter basis (March 31, 2019 compared to December 31, 2018), total loans remained flat at $11.7 billion. The seasonal decrease in the credit card and agricultural portfolios was $40.4 million. Loans approved and ready to close totaled $473.3 million at March 31, 2019 compared to $277.5 million as of year-end.  “Based on our current loan pipeline, we estimate loan growth in the 5% range for 2019,” said Makris.    

Deposits

(In billions) 1st Qtr 2019 4th Qtr 2018 1st Qtr 2018
Total deposits $12.0 $12.4 $11.7
Non-time deposits $9.3 $9.5 $9.5
Time deposits $2.7 $2.9 $2.2
       

Total deposits were $12.0 billion at March 31, 2019, an increase of $332.6 million, or 2.9%, since March 31, 2018.  Total deposits decreased $409.2 million, or 3.3%, compared to December 31, 2018.  During the quarter, brokered and public fund deposits decreased $557.2 million while core deposits increased $148.0 million. “Our cash balance was reduced as we eliminated some high cost deposits.  We are very pleased with our growth in core deposits as we continue to emphasize relationship banking,” said Makris.

Net Interest Income

  1st Qtr
2019
4th Qtr
2018
3rd Qtr
2018
2nd Qtr
2018
1st Qtr
2018
Loan yield (1) 5.53% 5.39% 5.54% 5.40% 5.38%
Core loan yield (1) (2) 5.29% 5.25% 5.19% 5.04% 4.95%
Security yield (1) 3.09% 2.87% 2.74% 2.75% 2.67%
Cost of interest bearing deposits 1.31% 1.20% 1.05% 0.84% 0.74%
Cost of deposits (3) 1.02% 0.93% 0.81% 0.64% 0.56%
Cost of borrowed funds 2.73% 2.64% 2.48% 2.38% 1.70%
Net interest margin (1) 3.85% 3.76% 3.98% 3.99% 4.17%
Core net interest margin (1) (2) 3.67% 3.66% 3.71% 3.70% 3.82%
  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 first quarter of 2019 was $137.0 million, an increase of $2.1 million, or 1.5%, from the same period of 2018. Included in interest income was the yield accretion recognized on loans acquired of $6.7 million and $11.3 million for the first quarters of 2019 and 2018, respectively. 

Net interest margin was 3.85% for the quarter ended March 31, 2019, a 9 basis point increase from the fourth quarter 2018. The Company’s core net interest margin, excluding the accretion, was 3.67% for the first quarter of 2019, a 1 basis point increase from the fourth quarter of 2018.  Cost of interest bearing deposits was 1.31% for the first quarter of 2019, an 11 basis point increase from prior quarter.

Non-Interest Income

Non-interest income for the first quarter of 2019 was $33.8 million, a decrease of $3.8 million compared to the same period in the previous year. The decrease was primarily due to reductions in debit card fees and mortgage and SBA lending premium income. The interchange rate cap as established by the Durbin amendment became effective for the Company July 1, 2018, resulting in a $2.8 million reduction in debit card fees when compared to the first quarter of last year.  

Mortgage and SBA lending premium income decreased $1.1 million when compared to the same quarter in 2018. Mortgage lending income during the first quarter of 2019 was lower by $649,000 compared to 2018 and SBA premium income decreased by $476,000 due to fewer loan sales in the current quarter compared to the first quarter of 2018.  

During the first quarter, the Company sold approximately $197 million in securities which resulted in a gain of $2.7 million, as part of a bond portfolio analysis of expected cash flow changes.

Non-Interest Expense

Non-interest expense for the first quarter of 2019 was $101.4 million, an increase of $3.3 million compared to the first quarter of 2018. Included in this quarter were $1.9 million of pre-tax merger-related, early retirement program and branch right-sizing costs. Excluding these expenses, core non-interest expense was $99.5 million for the first quarter of 2019, an increase of $3.2 million compared to the same period in 2018.  Software and technology costs increased approximately $1.8 million over the same period in the prior year.  The Company’s Next Generation Banking technology initiative is progressing on schedule and the incremental IT expenditures during the first quarter were primarily related to this initiative.

During the first quarter, the Company offered qualifying associates an early retirement option resulting in $355,000 of non-core expense.  The Company projects an additional $2.5 million of expense related to these retirements in the second quarter of 2019 and expects ongoing net savings of approximately $4.4 million beginning in the third quarter of 2019.

The efficiency ratio for the first quarter of 2019 was 56.76% compared to 53.24% for the same period in 2018.

Asset Quality

  1st Qtr
2019
4th Qtr
2018
3rd Qtr
2018
2nd Qtr
2018
1st Qtr
2018
Allowance for loan losses to total loans 0.68% 0.67% 0.68% 0.73% 0.75%
Allowance for loan losses to non-performing loans 97% 164% 136% 115% 99%
Non-performing loans to total loans 0.70% 0.41% 0.50% 0.63% 0.76%
Net charge-off ratio (annualized) 0.20% 0.35% 0.36% 0.17% 0.24%
 -  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 March 31, 2019, the allowance for loan losses for legacy loans was $59.2 million. The allowance for loan losses for loans acquired was $1.3 million and the acquired loan discount credit mark was $42.4 million. The allowances for loan losses and credit marks provide a total of $103.0 million of coverage, which equates to a total coverage ratio of 0.87% of gross loans. The ratio of credit mark and related allowance to loans acquired was 1.41%.

During the quarter, the Company identified loans specific to the acquired portfolio of Bank SNB’s Dallas market which were poorly structured or were poorly managed post-funding, and were primarily linked to an individual lender.  As a result, the Company made a provision for acquired loans of $2.0 million related to the Bank SNB acquired pool of loans.  

Makris stated, “We have carefully reviewed these loans for potential losses and believe we have adequately identified any risk associated with the loans.  Unfortunately, based on purchase accounting rules, the credit mark associated with the declining Bank SNB acquired pool is a standalone amount not related to Simmons’ overall allowance for loan losses and must be managed specific to that pool of loans.”

Provision for loan losses for the first quarter of 2019 was $9.3 million, essentially flat when compared to March 31, 2018 and $335,000 less than the fourth quarter of 2018.

Foreclosed Assets and Other Real Estate Owned

At March 31, 2019, foreclosed assets and other real estate owned were $19.0 million, a decrease of $10.2 million, or 35.0%, compared to the same period in 2018 and a decrease of $6.6 million, or 25.9% from December 31, 2018. The composition of these assets is divided into three types: 

           
 

($ in millions)
1st Qtr
2019
4th Qtr
2018
3rd Qtr
2018
2nd Qtr
2018
1st Qtr
2018
Closed bank branches, branch sites & associate relocation $7.6 $8.0 $9.6 $7.2 $8.1
Foreclosed assets - acquired $6.2 $11.5 $8.0 $13.2 $14.9
Foreclosed assets - legacy $5.2 $6.1 $5.1 $10.1 $6.1
           

Capital

  1st Qtr
2019
4th Qtr
2018
3rd Qtr
2018
2nd Qtr
2018
1st Qtr
2018
Stockholders’ equity to total assets 14.3% 13.6% 13.4% 13.3% 13.5%
Tangible common equity to tangible assets 9.0% 8.4% 8.1% 7.9% 7.9%
Regulatory tier 1 leverage ratio 9.1% 8.8% 8.7% 8.6% 8.6%
Regulatory total risk-based capital ratio 13.6% 13.3% 13.1% 13.7% 14.1%
           

At March 31, 2019, common stockholders' equity was $2.3 billion. Book value per share was $24.87 and tangible book value per share was $14.78 at March 31, 2019, compared to $22.86 and $12.62, respectively, at March 31, 2018.

Simmons First National Corporation

Simmons First National Corporation is a financial holding company headquartered in Pine Bluff, Arkansas, with total assets of approximately $16.1 billion as of March 31, 2019, 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. CDT on Tuesday, April 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 4557809. 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, 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     Mar 31       Dec 31       Sep 30       Jun 30       Mar 31  
  (Unaudited)     2019       2018       2018       2018       2018  
($ in thousands)          
  ASSETS            
Cash and non-interest bearing balances due from banks  $   151,112     $   171,792     $   125,231     $   162,567     $   170,811  
Interest bearing balances due from banks and federal funds sold      340,049         661,666         388,573         781,279         688,853  
Cash and cash equivalents      491,161         833,458         513,804         943,846         859,664  
 Interest bearing balances due from banks - time      4,684         4,934         3,954         2,974         3,069  
 Investment securities - held-to-maturity      61,435         289,194         323,306         333,503         352,756  
 Investment securities - available-for-sale      2,240,111         2,151,752         1,997,814         1,938,644         1,830,113  
 Mortgage loans held for sale      18,480         26,799         48,195         39,812         17,708  
 Other assets held for sale      397         1,790         5,136         14,898         24,784  
 Loans:           
Legacy loans      8,684,550         8,430,388         8,123,274         7,133,461         6,290,383  
Allowance for loan losses      (59,243 )       (56,599 )       (55,358 )       (51,732 )       (47,207 )
Loans acquired, net of discount and allowance      3,056,187         3,292,783         3,734,921         4,232,434         4,696,945  
Net loans      11,681,494         11,666,572         11,802,837         11,314,163         10,940,121  
Premises and equipment      333,740         295,060         287,246         288,777         289,355  
Foreclosed assets and other real estate owned      18,952         25,565         22,664         30,503         29,140  
Interest receivable      51,796         49,938         51,509         44,266         42,129  
Bank owned life insurance      192,736         193,170         192,680         191,575         186,473  
Goodwill      845,687         845,687         845,687         845,687         845,687  
Other intangible assets      88,694         91,334         93,975         96,720         99,504  
Other assets      62,272         68,084         92,457         80,165         76,806  
Total assets  $   16,091,639     $   16,543,337     $   16,281,264     $   16,165,533     $   15,597,309  
           
           
LIABILITIES AND STOCKHOLDERS' EQUITY            
 Deposits:           
Non-interest bearing transaction accounts  $   2,674,034     $   2,672,405     $   2,778,670     $   2,683,489     $   2,734,287  
Interest bearing transaction accounts and savings deposits      6,666,823         6,830,191         6,776,330         6,916,520         6,720,754  
Time deposits      2,648,674         2,896,156         2,533,506         2,353,439         2,201,874  
 Total deposits      11,989,531         12,398,752         12,088,506         11,953,448         11,656,915  
 Federal funds purchased and securities sold           
under agreements to repurchase      120,213         95,792         109,213         99,801         120,909  
Other borrowings      1,169,989         1,345,450         1,420,917         1,451,811         1,140,986  
Subordinated notes and debentures      354,041         353,950         372,934         413,337         468,465  
Other liabilities held for sale      162         162         424         1,840         2,781  
Accrued interest and other liabilities      155,382         102,797         105,951         98,388         98,202  
Total liabilities      13,789,318         14,296,903         14,097,945         14,018,625         13,488,258  
           
           
Stockholders' equity:           
Common stock      926         923         923         923         922  
Surplus      1,599,566         1,597,944         1,597,261         1,594,342         1,590,086  
Undivided profits      707,829         674,941         633,175         591,826         552,105  
Accumulated other comprehensive loss:           
Unrealized depreciation on AFS securities      (6,000 )       (27,374 )       (48,040 )       (40,183 )       (34,062 )
Total stockholders' equity      2,302,321         2,246,434         2,183,319         2,146,908         2,109,051  
Total liabilities and stockholders' equity  $   16,091,639     $   16,543,337     $   16,281,264     $   16,165,533     $   15,597,309  
           
           

 

  Simmons First National Corporation             SFNC    
  Consolidated Statements of Income - Quarter-to-Date              
  For the Quarters Ended   Mar 31    Dec 31    Sep 30    Jun 30     Mar 31 
  (Unaudited)     2019      2018      2018      2018       2018  
($ in thousands, except per share data)            
INTEREST INCOME              
Loans  $   159,440   $   159,996   $   162,438   $   150,253     $   143,350  
Interest bearing balances due from banks and federal funds sold      2,154       2,168       1,405       1,414         1,009  
Investment securities      17,312       15,760       14,640       14,296         12,622  
Mortgage loans held for sale      210       372       501       305         158  
TOTAL INTEREST INCOME      179,116       178,296       178,984       166,268         157,139  
             
INTEREST EXPENSE              
Time deposits      12,320       11,273       8,017       6,175         4,842  
Other deposits      18,430       17,489       16,373       12,286         10,755  
Federal funds purchased and securities             
sold under agreements to repurchase      136       121       104       88         110  
Other borrowings      6,793       7,134       6,240       5,141         5,139  
Subordinated notes and debentures      4,411       4,498       5,282       5,741         1,327  
TOTAL INTEREST EXPENSE      42,090       40,515       36,016       29,431         22,173  
NET INTEREST INCOME       137,026       137,781       142,968       136,837         134,966  
Provision for loan losses      9,285       9,620       10,345       9,033         9,150  
NET INTEREST INCOME AFTER PROVISION              
FOR LOAN LOSSES       127,741       128,161       132,623       127,804         125,816  
NON-INTEREST INCOME              
Trust income      5,708       5,980       6,277       5,622         5,249  
Service charges on deposit accounts      10,068       11,263       10,837       10,063         10,345  
Other service charges and fees      1,289       1,501       1,201       2,017         2,750  
Mortgage and SBA lending income      3,320       1,643       1,825       3,130         4,445  
Investment banking income      618       829       664       814         834  
Debit and credit card fees      6,098       6,547       6,820       10,105         8,796  
Bank owned life insurance income      795       1,105       1,105       1,102         1,103  
Gain (loss) on sale of securities, net      2,740       8       54       (7 )       6  
Other income      3,125       5,712       4,942       5,202         4,007  
TOTAL NON-INTEREST INCOME      33,761       34,588       33,725       38,048         37,535  
NON-INTEREST EXPENSE              
Salaries and employee benefits      56,367       49,193       55,515       55,678         56,357  
Occupancy expense, net      7,475       7,016       7,713       7,921         6,960  
Furniture and equipment expense      3,358       4,139       3,761       4,020         4,403  
Other real estate and foreclosure expense      637       1,540       538       1,382         1,020  
Deposit insurance      2,040       2,489       2,248       1,856         2,128  
Merger-related costs      1,470       797       804       1,465         1,711  
Other operating expenses      30,062       30,222       29,674       26,185         25,494  
TOTAL NON-INTEREST EXPENSE      101,409       95,396       100,253       98,507         98,073  
NET INCOME BEFORE INCOME TAXES       60,093       67,353       66,095       67,345         65,278  
Provision for income taxes      12,398       11,707       10,902       13,783         13,966  
NET INCOME   $   47,695   $   55,646   $   55,193   $   53,562     $   51,312  
BASIC EARNINGS PER SHARE   $   0.52   $   0.60   $   0.60   $   0.58     $   0.56  
DILUTED EARNINGS PER SHARE   $   0.51   $   0.60   $   0.59   $   0.58     $   0.55  
             

 

  Simmons First National Corporation           SFNC  
  Consolidated Risk-Based Capital            
  For the Quarters Ended     Mar 31       Dec 31       Sep 30       Jun 30       Mar 31  
  (Unaudited)     2019       2018       2018       2018       2018  
($ in thousands)          
Tier 1 capital          
Stockholders' equity $   2,302,321     $   2,246,434     $   2,183,319     $   2,146,908     $   2,109,051  
Trust preferred securities, net allowable     -          -          -          -          -   
Disallowed intangible assets, net of deferred tax     (910,122 )       (912,428 )       (914,788 )       (917,050 )       (918,161 )
Unrealized loss on AFS securities     6,000         27,374         48,040         40,183         34,062  
Total Tier 1 capital     1,398,199         1,361,380         1,316,571         1,270,041         1,224,952  
           
           
Tier 2 capital          
Qualifying unrealized gain on AFS equity securities     -          -          1         1         8  
Trust preferred securities and subordinated debt     354,041         353,950         372,934         413,337         468,466  
Qualifying allowance for loan losses and          
reserve for unfunded commitments     67,771         63,608         63,618         60,691         54,436  
Total Tier 2 capital     421,812         417,558         436,553         474,029         522,910  
Total risk-based capital $   1,820,011     $   1,778,938     $   1,753,124     $   1,744,070     $   1,747,862  
           
Common equity          
Tier 1 capital $   1,398,199     $   1,361,380     $   1,316,571     $   1,270,041     $   1,224,952  
Less: Trust preferred securities     -          -          -          -          -   
Total common equity $   1,398,199     $   1,361,380     $   1,316,571     $   1,270,041     $   1,224,952  
           
           
Risk weighted assets $   13,364,636     $   13,326,832     $   13,402,910     $   12,713,093     $   12,417,233  
           
           
Adjusted average assets for leverage ratio $   15,423,961     $   15,512,042     $   15,179,889     $   14,714,205     $   14,179,390  
           
           
Ratios at end of quarter          
Equity to assets   14.31 %     13.58 %     13.41 %     13.28 %     13.52 %
Tangible common equity to tangible assets (1)   9.02 %     8.39 %     8.11 %     7.91 %     7.94 %
Common equity Tier 1 ratio (CET1)   10.46 %     10.22 %     9.82 %     9.99 %     9.86 %
Tier 1 leverage ratio   9.07 %     8.78 %     8.67 %     8.63 %     8.64 %
Tier 1 risk-based capital ratio   10.46 %     10.22 %     9.82 %     9.99 %     9.86 %
Total risk-based capital ratio   13.62 %     13.35 %     13.08 %     13.72 %     14.08 %
           
(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     Mar 31       Dec 31      Sep 30      Jun 30      Mar 31   
  (Unaudited)     2019      2018      2018      2018      2018    
($ in thousands)            
Legacy Loan Portfolio - End of Period (1)            
 Consumer             
  Credit cards  $   181,549   $   204,173   $   182,137   $   180,352   $   176,602  
  Other consumer      213,659       201,297       259,581       277,330       284,285  
 Total consumer      395,208       405,470       441,718       457,682       460,887  
 Real Estate             
  Construction      1,376,162       1,300,723       1,229,888       967,720       786,077  
  Single-family residential      1,431,407       1,440,443       1,401,991       1,314,787       1,193,464  
  Other commercial      3,355,109       3,225,287       3,077,188       2,816,420       2,611,358  
 Total real estate      6,162,678       5,966,453       5,709,067       5,098,927       4,590,899  
 Commercial             
  Commercial      1,801,422       1,774,909       1,608,342       1,237,910       971,704  
  Agricultural      147,216       164,514       218,778       187,006       128,247  
 Total commercial      1,948,638       1,939,423       1,827,120       1,424,916       1,099,951  
 Other      178,026       119,042       145,369       151,936       138,646  
  Total Loans  $   8,684,550   $   8,430,388   $   8,123,274   $   7,133,461   $   6,290,383  
             
             
  (1) Excludes all acquired loans.              
             
Investment Securities - End of Period            
  Held-to-Maturity              
  U.S. Government agencies  $   12,996   $   16,990   $   34,983   $   36,976   $   46,961  
  Mortgage-backed securities      12,847       13,346       13,933       14,645       15,404  
  State and political subdivisions      33,597       256,863       272,396       279,787       286,901  
  Other securities      1,995       1,995       1,994       2,095       3,490  
  Total held-to-maturity      61,435       289,194       323,306       333,503       352,756  
             
  Available-for-Sale              
  U.S. Government agencies  $   161,577   $   154,301   $   141,460   $   145,767   $   149,804  
  Mortgage-backed securities      1,345,677       1,522,900       1,419,626       1,395,231       1,356,179  
  State and political subdivisions      580,790       314,843       282,439       245,335       185,888  
  FHLB stock      65,220       73,105       72,579       72,042       58,177  
  Other securities      86,847       86,603       81,710       80,269       80,065  
  Total available-for-sale      2,240,111       2,151,752       1,997,814       1,938,644       1,830,113  
  Total investment securities  $   2,301,546   $   2,440,946   $   2,321,120   $   2,272,147   $   2,182,869  
  Fair value - HTM investment securities  $   61,956   $   290,830   $   322,838   $   334,857   $   354,649  
             
             
Investment Securities - QTD Average            
 Taxable securities  $   1,880,694   $   1,815,203   $   1,775,193   $   1,750,172   $   1,618,270  
 Tax exempt securities      590,941       551,185       539,135       514,838       460,675  
  Total investment securities - QTD average  $   2,471,635   $   2,366,388   $   2,314,328   $   2,265,010   $   2,078,945  
             
             


  Simmons First National Corporation             SFNC  
  Consolidated Loans and Credit Coverage            
  For the Quarters Ended     Mar 31       Dec 31       Sep 30       Jun 30       Mar 31  
  (Unaudited)     2019       2018       2018       2018       2018  
  ($ in thousands)            
LOANS          
Legacy loans $   8,684,550     $   8,430,388     $   8,123,274     $   7,133,461     $   6,290,383  
Allowance for loan losses (legacy loans)     (59,243 )       (56,599 )       (55,358 )       (51,732 )       (47,207 )
Legacy loans (net of allowance)     8,625,307         8,373,789         8,067,916         7,081,729         6,243,176  
Loans acquired     3,099,915         3,342,175         3,790,234         4,302,760         4,776,439  
Credit discount     (42,416 )       (49,297 )       (53,968 )       (68,282 )       (79,087 )
Allowance for loan losses (loans acquired)     (1,312 )       (95 )       (1,345 )       (2,044 )       (407 )
Loans acquired (net of discount and allowance)     3,056,187         3,292,783         3,734,921         4,232,434         4,696,945  
Net loans $   11,681,494     $   11,666,572     $   11,802,837     $   11,314,163     $   10,940,121  
           
           
           
Loan Coverage Ratios            
Allowance for loan losses to legacy loans   0.68 %     0.67 %     0.68 %     0.73 %     0.75 %
           
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)   1.41 %     1.48 %     1.46 %     1.63 %     1.66 %
           
Total allowance and credit coverage (non-GAAP) (1)   0.87 %     0.90 %     0.93 %     1.07 %     1.14 %
           
(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     Mar 31       Dec 31       Sep 30       Jun 30       Mar 31 
  (Unaudited)     2019       2018       2018       2018       2018   
($ in thousands)          
Allowance for Loan Losses (Legacy Loans)          
 Balance, beginning of quarter  $   56,599     $   55,358     $   51,732     $   47,207     $   41,668  
 Loans charged off           
  Credit cards      1,142         1,121         919         1,012         999  
  Other consumer      1,533         2,894         1,321         1,366         1,056  
  Real estate      374         337         4,952         161         455  
  Commercial      1,968         3,480         592         790         1,761  
  Total loans charged off      5,017         7,832         7,784         3,329         4,271  
           
 Recoveries of loans previously charged off           
  Credit cards      240         227         229         286         263  
  Other consumer      300         154         176         133         94  
  Real estate      142         367         210         112         302  
  Commercial      158         167         450         59         69  
  Total recoveries      840         915         1,065         590         728  
  Net loans charged off      4,177         6,917         6,719         2,739         3,543  
 Provision for loan losses      6,821         8,158         10,345         7,264         9,082  
 Balance, end of quarter  $   59,243     $   56,599     $   55,358     $   51,732     $   47,207  
           
           
Non-performing assets (1) (2)          
 Non-performing loans           
  Nonaccrual loans  $   60,925     $   34,201     $   40,505     $   44,548     $   47,395  
  Loans past due 90 days or more      281         224         281         303         336  
  Total non-performing loans      61,206         34,425         40,786         44,851         47,731  
           
           
 Other non-performing assets           
  Foreclosed assets and other real estate owned (2)     18,952         25,565         22,664         30,503         29,140  
  Other non-performing assets      505         553         524         573         794  
  Total other non-performing assets      19,457         26,118         23,188         31,076         29,934  
  Total non-performing assets  $   80,663     $   60,543     $   63,974     $   75,927     $   77,665  
 Performing TDRs (troubled debt restructurings)  $   6,297     $   6,369     $   8,413     $   6,367     $   6,459  
           
Ratios (1) (2)          
 Allowance for loan losses to total loans    0.68 %     0.67 %     0.68 %     0.73 %     0.75 %
 Allowance for loan losses to non-performing loans    97 %     164 %     136 %     115 %     99 %
 Non-performing loans to total loans    0.70 %     0.41 %     0.50 %     0.63 %     0.76 %
 Non-performing assets (including performing TDRs)           
  to total assets    0.54 %     0.40 %     0.44 %     0.51 %     0.54 %
 Non-performing assets to total assets    0.50 %     0.37 %     0.39 %     0.47 %     0.50 %
 Annualized net charge offs to total loans    0.20 %     0.35 %     0.36 %     0.17 %     0.24 %
 Annualized net credit card charge offs to           
  total credit card loans    1.92 %     1.86 %     1.47 %     1.60 %     1.63 %
           
  (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
Mar 2019  
    Three Months Ended
Dec 2018  
    Three Months Ended
Mar 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 $   394,462   $   2,154   2.21 %   $   499,961   $   2,168   1.72 %   $   338,505   $   1,009   1.21 %
Investment securities - taxable     1,880,694       12,989   2.80 %       1,815,200       11,828   2.59 %       1,618,270       9,599   2.41 %
Investment securities - non-taxable (FTE)     590,941       5,834   4.00 %       551,188       5,313   3.82 %       460,675       4,083   3.59 %
Mortgage loans held for sale     17,733       210   4.80 %       30,851       372   4.78 %       14,775       158   4.34 %
Loans, including acquired loans     11,710,075       159,530   5.53 %       11,788,838       160,081   5.39 %       10,819,324       143,420   5.38 %
Total interest earning assets (FTE)     14,593,905       180,717   5.02 %       14,686,038       179,762   4.86 %       13,251,549       158,269   4.84 %
Non-earning assets     1,708,292           1,671,715           1,836,661    
Total assets $   16,302,197       $   16,357,753       $   15,088,210    
                       
LIABILITIES AND STOCKHOLDERS' EQUITY                    
Interest bearing liabilities:                      
Interest bearing transaction and savings accounts $   6,749,032   $   18,430   1.11 %   $   6,770,217   $   17,489   1.02 %   $   6,579,295   $   10,755   0.66 %
Time deposits     2,781,592       12,320   1.80 %       2,752,113       11,273   1.63 %       2,003,668       4,842   0.98 %
Total interest bearing deposits     9,530,624       30,750   1.31 %       9,522,330       28,762   1.20 %       8,582,963       15,597   0.74 %
Federal funds purchased and securities sold under agreement to repurchase     109,302       136   0.50 %       108,687       121   0.44 %       120,443       110   0.37 %
Other borrowings     1,224,255       6,793   2.25 %       1,302,453       7,134   2.17 %       1,282,527       5,139   1.63 %
Subordinated notes and debentures     353,996       4,411   5.05 %       353,906       4,498   5.04 %       162,813       1,327   3.31 %
Total interest bearing liabilities     11,218,177       42,090   1.52 %       11,287,376       40,515   1.42 %       10,148,746       22,173   0.89 %
Non-interest bearing liabilities:                      
Non-interest bearing deposits     2,707,715           2,768,437           2,632,182    
Other liabilities     127,407           90,723           204,230    
Total liabilities     14,053,299           14,146,536           12,985,158    
Stockholders' equity     2,248,898           2,211,217           2,103,052    
Total liabilities and stockholders' equity $   16,302,197       $   16,357,753       $   15,088,210    
Net interest income (FTE)     $   138,627         $   139,247         $   136,096  
Net interest spread (FTE)       3.50 %         3.44 %         3.95 %
Net interest margin (FTE) - quarter-to-date       3.85 %         3.76 %         4.17 %
                       
Net interest margin (FTE) - year-to-date       3.85 %         3.97 %         4.17 %
                       
Core net interest margin (FTE) - quarter-to-date (1)       3.67 %         3.66 %         3.82 %
Core loan yield (FTE) - quarter-to-date (1)       5.29 %         5.25 %         4.95 %
                       
Core net interest margin (FTE) - year-to-date (1)       3.67 %         3.72 %         3.82 %
Core loan yield (FTE) - year-to-date (1)       5.29 %         5.11 %         4.95 %
                       
(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     Mar 31       Dec 31       Sep 30       Jun 30       Mar 31  
  (Unaudited)     2019       2018       2018       2018       2018  
($ in thousands, except share data)          
QUARTER-TO-DATE          
Financial Highlights - GAAP          
Net Income $   47,695     $   55,646     $   55,193     $   53,562     $   51,312  
Diluted earnings per share     0.51         0.60         0.59         0.58         0.55  
Return on average assets   1.19 %     1.35 %     1.37 %     1.38 %     1.38 %
Return on average common equity   8.60 %     9.98 %     10.06 %     10.05 %     9.90 %
Return on tangible common equity   15.34 %     17.96 %     18.38 %     18.70 %     18.77 %
Net interest margin (FTE)   3.85 %     3.76 %     3.98 %     3.99 %     4.17 %
FTE adjustment     1,601         1,466         1,393         1,308         1,130  
Amortization of intangibles     2,641         2,642         2,745         2,785         2,837  
Amortization of intangibles, net of taxes     1,951         1,952         2,027         2,057         2,096  
Average diluted shares outstanding     92,870,813         92,897,105         92,840,851         92,733,140         92,638,765  
Cash dividends declared per common share     0.16         0.15         0.15         0.15         0.15  
Financial Highlights - Core (non-GAAP)          
Core earnings (excludes non-core items) (1) $   49,076     $   56,451     $   56,504     $   54,660     $   52,618  
Diluted core earnings per share (1)     0.53         0.61         0.61         0.59         0.57  
Core net interest margin (FTE) (2)   3.67 %     3.66 %     3.71 %     3.70 %     3.82 %
Accretable yield on acquired loans     6,660         3,850         10,006         10,113         11,294  
Efficiency ratio (1)   56.76 %     51.99 %     53.47 %     52.70 %     53.24 %
Core return on average assets (1)   1.22 %     1.37 %     1.40 %     1.41 %     1.41 %
Core return on average common equity (1)   8.85 %     10.13 %     10.30 %     10.26 %     10.15 %
Core return on tangible common equity (1)   15.76 %     18.21 %     18.80 %     19.06 %     19.23 %
YEAR-TO-DATE          
Financial Highlights - GAAP          
Net Income $   47,695     $   215,713     $   160,067     $   104,874     $   51,312  
Diluted earnings per share     0.51         2.32         1.72         1.13         0.55  
Return on average assets   1.19 %     1.37 %     1.37 %     1.38 %     1.38 %
Return on average common equity   8.60 %     10.00 %     10.01 %     9.98 %     9.90 %
Return on tangible common equity   15.34 %     18.44 %     18.61 %     18.73 %     18.77 %
Net interest margin (FTE)   3.85 %     3.97 %     4.04 %     4.08 %     4.17 %
FTE adjustment     1,601         5,297         3,831         2,438         1,130  
Amortization of intangibles     2,641         11,009         8,367         5,622         2,837  
Amortization of intangibles, net of taxes     1,951         8,132         6,180         4,153         2,096  
Average diluted shares outstanding     92,870,813         92,830,485         92,796,860         92,692,234         92,638,765  
Cash dividends declared per common share     0.16         0.60         0.45         0.30         0.15  
Financial Highlights - Core (non-GAAP)          
Core earnings (excludes non-core items) (1) $   49,076     $   220,233     $   163,782     $   107,278     $   52,618  
Diluted core earnings per share (1)     0.53         2.37         1.76         1.16         0.57  
Core net interest margin (FTE) (2)   3.67 %     3.72 %     3.74 %     3.76 %     3.82 %
Accretable yield on acquired loans     6,660         35,263         31,413         21,407         11,294  
Efficiency ratio (1)   56.76 %     52.85 %     53.14 %     52.97 %     53.24 %
Core return on average assets (1)   1.22 %     1.40 %     1.41 %     1.41 %     1.41 %
Core return on average common equity (1)   8.85 %     10.21 %     10.24 %     10.20 %     10.15 %
Core return on tangible common equity (1)   15.76 %     18.81 %     19.03 %     19.14 %     19.23 %
END OF PERIOD          
Book value per share $   24.87     $   24.33     $   23.66     $   23.26     $   22.86  
Tangible book value per share     14.78         14.18         13.48         13.05         12.62  
Shares outstanding     92,568,361         92,347,643         92,291,070         92,281,370         92,242,389  
Full-time equivalent employees     2,602         2,654         2,635         2,659         2,626  
Total number of financial centers     191         191         191         199         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     Mar 31       Dec 31       Sep 30       Jun 30       Mar 31  
  (Unaudited)     2019       2018       2018       2018       2018  
($ in thousands, except per share data)          
QUARTER-TO-DATE          
 Net Income  $   47,695     $   55,646     $   55,193     $   53,562     $   51,312  
 Non-core items           
Merger-related costs     1,470         797         804         1,465         1,711  
Early retirement program     355         -          -          -          -   
Branch right-sizing     45         292         970         22         57  
Tax effect (1)     (489 )       (284 )       (463 )       (389 )       (462 )
Net non-core items     1,381         805         1,311         1,098         1,306  
 Core earnings (non-GAAP)  $   49,076     $   56,451     $   56,504     $   54,660     $   52,618  
           
           
 Diluted earnings per share  $   0.51     $   0.60     $   0.59     $   0.58     $   0.55  
 Non-core items           
Merger-related costs     0.02         0.01         0.01         0.02         0.02  
Early retirement program     0.01         -          -          -          -   
Branch right-sizing     -          -          0.01         -          -   
Tax effect (1)     (0.01 )       -          -          (0.01 )       -   
Net non-core items     0.02         0.01         0.02         0.01         0.02  
 Core earnings (non-GAAP)  $   0.53     $   0.61     $   0.61     $   0.59     $   0.57  
           
           
YEAR-TO-DATE          
 Net Income  $   47,695     $   215,713     $   160,067     $   104,874     $   51,312  
 Non-core items           
Merger-related costs     1,470         4,777         3,980         3,176         1,711  
Early retirement program     355         -          -          -          -   
Branch right-sizing     45         1,341         1,049         79         57  
Tax effect (1)     (489 )       (1,598 )       (1,314 )       (851 )       (462 )
Net non-core items     1,381         4,520         3,715         2,404         1,306  
 Core earnings (non-GAAP)  $   49,076     $   220,233     $   163,782     $   107,278     $   52,618  
           
           
 Diluted earnings per share  $   0.51     $   2.32     $   1.72     $   1.13     $   0.55  
 Non-core items           
Merger-related costs     0.02         0.05         0.04         0.04         0.02  
Early retirement program     0.01         -          -          -          -   
Branch right-sizing     -          0.02         0.01         -          -   
Tax effect (1)     (0.01 )       (0.02 )       (0.01 )       (0.01 )       -   
Net non-core items     0.02         0.05         0.04         0.03         0.02  
 Core earnings (non-GAAP)  $   0.53     $   2.37     $   1.76     $   1.16     $   0.57  
           
           
  (1) Effective tax rate of 26.135%. 
           


Simmons First National Corporation           SFNC  
  Reconciliation Of Non-GAAP Financial Measures - End of Period        
  For the Quarters Ended            
  (Unaudited)     Mar 31       Dec 31       Sept 30       Jun 30       Mar 31  
    2019       2018       2018       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 $   2,302,321     $   2,246,434     $   2,183,319     $   2,146,908     $   2,109,051  
Intangible assets:          
  Goodwill     (845,687 )       (845,687 )       (845,687 )       (845,687 )       (845,687 )
  Other intangible assets     (88,694 )       (91,334 )       (93,975 )       (96,720 )       (99,504 )
Total intangibles     (934,381 )       (937,021 )       (939,662 )       (942,407 )       (945,191 )
Tangible common stockholders' equity $   1,367,940     $   1,309,413     $   1,243,657     $   1,204,501     $   1,163,860  
           
           
Total assets $   16,091,639     $   16,543,337     $   16,281,264     $   16,165,533     $   15,597,309  
Intangible assets:          
  Goodwill     (845,687 )       (845,687 )       (845,687 )       (845,687 )       (845,687 )
  Other intangible assets     (88,694 )       (91,334 )       (93,975 )       (96,720 )       (99,504 )
Total intangibles     (934,381 )       (937,021 )       (939,662 )       (942,407 )       (945,191 )
Tangible assets $   15,157,258     $   15,606,316     $   15,341,602     $   15,223,126     $   14,652,118  
           
           
Ratio of equity to assets   14.31 %     13.58 %     13.41 %     13.28 %     13.52 %
Ratio of tangible common equity to tangible assets   9.02 %     8.39 %     8.11 %     7.91 %     7.94 %
           
           
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 $   42,416     $   49,297     $   53,968     $   68,282     $   79,087  
Allowance for loan losses on acquired loans     1,312         95         1,345         2,044         407  
Total credit discount and ALLL on acquired loans $   43,728     $   49,392     $   55,313     $   70,326     $   79,494  
Total loans acquired $   3,099,915     $   3,342,175     $   3,790,234     $   4,302,760     $   4,776,439  
Discount and ALLL on acquired loans to acquired loans   1.41 %     1.48 %     1.46 %     1.63 %     1.66 %
           
           
Calculation of Total Allowance and Credit Coverage          
           
Allowance for loan losses $   59,243     $   56,599     $   55,358     $   51,732     $   47,207  
Total credit discount and ALLL on acquired loans     43,728         49,392         55,313         70,326         79,494  
Total allowance and credit discount $   102,971     $   105,991     $   110,671     $   122,058     $   126,701  
Total loans $   11,784,465     $   11,772,563     $   11,913,508     $   11,436,221     $   11,066,822  
Total allowance and credit coverage   0.87 %     0.90 %     0.93 %     1.07 %     1.14 %
           
           
Calculation of Tangible Book Value per Share          
           
Total common stockholders' equity $   2,302,321     $   2,246,434     $   2,183,319     $   2,146,908     $   2,109,051  
Intangible assets:          
  Goodwill     (845,687 )       (845,687 )       (845,687 )       (845,687 )       (845,687 )
  Other intangible assets     (88,694 )       (91,334 )       (93,975 )       (96,720 )       (99,504 )
Total intangibles     (934,381 )       (937,021 )       (939,662 )       (942,407 )       (945,191 )
Tangible common stockholders' equity $   1,367,940     $   1,309,413     $   1,243,657     $   1,204,501     $   1,163,860  
Shares of common stock outstanding     92,568,361         92,347,643         92,291,070         92,281,370         92,242,389  
Book value per common share $   24.87     $   24.33     $   23.66     $   23.26     $   22.86  
Tangible book value per common share $   14.78     $   14.18     $   13.48     $   13.05     $   12.62  
           
           


Simmons First National Corporation           SFNC  
  Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date        
  For the Quarters Ended            
  (Unaudited)     Mar 31       Dec 31       Sept 30       Jun 30       Mar 31  
    2019       2018       2018