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CST: 14/10/2019 11:30:17   

Simmons Reports Record 2018 Results

264 Days ago

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 2018 YTD 2017 4th Qtr 2018 3rd Qtr 2018 4th 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 assets 1.37%   0.92%   1.35%   1.37%   0.54%
Return on avg common equity 10.00%   6.68%   9.98%   10.06%   3.88%
Return on tangible common equity 18.44%   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 ratio 52.85%   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 2018 3rd Qtr 2018 4th 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 2018 3rd Qtr 2018 4th 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 deposits 1.20% 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 funds 2.64% 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 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%
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 assets 13.6% 13.4% 13.3% 13.5% 13.9%
Tangible common equity to tangible assets 8.4% 8.1% 7.9% 7.9% 8.1%
Regulatory tier 1 leverage ratio 8.8% 8.7% 8.6% 8.6% 9.2%
Regulatory total risk-based capital ratio 13.3% 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)