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Press Release

Simmons Reports Third Quarter 2019 Earnings and Announces Share Repurchase Program

Company Release - 10/22/2019 8:30 AM ET

PINE BLUFF, Ark., Oct. 22, 2019 (GLOBE NEWSWIRE) -- Simmons First National Corporation (NASDAQ: SFNC) today announced net income of $81.8 million for the quarter ended September 30, 2019, compared to $55.2 million for the same period in 2018, an increase of $26.6 million, or 48.3%. Diluted earnings per share were $0.84, an increase of $0.25, or 42.4%, compared to the third quarter 2018. Included in third quarter 2019 results were $2.1 million in net after-tax merger-related, early retirement program and branch right-sizing costs. Excluding the impact of these items, core earnings were $84.0 million for the quarter ended September 30, 2019, compared to $56.5 million for the quarter ended September 30, 2018, an increase of $27.5 million, or 48.6%. Core diluted earnings per share were $0.87, an increase of $0.26, or 42.6%, from the same period in 2018.

Year-to-date net income for the first nine months of 2019 was $185.1 million, or $1.94 diluted earnings per share, compared to $160.1 million, or $1.72 diluted earnings per share, for the same period in 2018. Excluding $13.4 million in net after-tax merger-related, early retirement program and branch right-sizing costs, year-to-date core earnings for 2019 were $198.5 million, an increase of $34.7 million compared to the same period last year. Core diluted earnings per share were $2.08, an increase of $0.32, or 18.2%, from the same period in 2018.

The Company had several notable events that affected its operating results for the third quarter 2019:

  • Sale of $114 million of primarily CRE loans resulting in a net loss of $5.1 million.
  • Sale of Visa Inc. class B common stock resulting in a gain of $42.9 million.
  • Related to the Visa stock sale gain, contribution of $4 million to the Simmons First Foundation, so it may continue its work to provide community development grants throughout the Company’s footprint.
  • Provision expense increased $15 million primarily related to the charge-off of a participation interest in a shared national credit to White Star Petroleum, LLC (“White Star”) (discussed further below).
($ in millions) Pre-tax After-tax (1)Income Statement Line
Loss on sale of primarily CRE loans($5.1)($3.8)Other income
Gain on sale of Visa Inc. class B common stock$42.9 $31.7 Other income
Contribution to Simmons First Foundation($4.0)($3.0)Other operating expenses
Additional provision for White Star charge-off($15.0)($11.1)Provision for loan losses

(1) Effective tax rate of 26.135% used for after-tax calculations.

“We are very pleased with our operating results this quarter,” said George A. Makris, Jr., chairman and CEO of Simmons First National Corporation. “We continue to have very strong loan demand opportunities although our customers are displaying cautious optimism regarding the uncertainty in the world economy today and interest rate adjustments that may not appear to be related precisely to economic data.

“We are beginning to see significant results from our Next Generation Banking technology investment. We have successfully converted our system processing to a hosted environment increasing the security and reliability of our systems. Also, on October 16th, we launched our new mobile banking app.  The customer response has been phenomenal. We will continue to expand our digital offerings over the coming months.”

Makris continued, “I have mentioned for some time now that asset quality is one of our top priorities, and the loss we experienced as a result of the White Star bankruptcy is certainly disappointing. In response to it, we have, among other things, made changes to our credit underwriting and approval processes that are consistent with the conservative credit culture at Simmons.

“We are on target to complete our previously announced acquisition of The Landrum Company on October 31 with an expected system conversion during the 1st quarter of 2020.  We are excited about the expanded market presence in several states because of this merger.”

Selected Highlights:3rd Qtr 20192nd Qtr 20193rd Qtr 2018
Net income$81.8 million$55.6 million$55.2 million
Diluted earnings per share$0.84 $0.58 $0.59 
Return on avg assets1.83% 1.28% 1.37% 
Return on avg common equity13.70% 9.48% 10.06% 
Return on tangible common equity24.89% 17.40% 18.38% 
Core earnings (1)$84.0 million$65.5 million$56.5 million
Diluted core earnings per share (1)$0.87 $0.68 $0.61 
Core return on avg assets (1)1.88% 1.51% 1.40% 
Core return on avg common equity (1)14.06% 11.16% 10.30% 
Core return on tangible common equity (1)25.52% 20.36% 18.80% 
Efficiency ratio (2)43.77% 49.88% 53.47% 

(1) Core earnings excludes non-core items, and is a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
(2) Efficiency ratio is noninterest expense before foreclosed property expense, amortization of intangibles as a percent of net interest income (fully taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and non-core items, and is a non-GAAP measurement.  Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.


($ in billions)3rd Qtr 20192nd Qtr 20193rd Qtr 2018
Total loans$13.0$13.1$11.9
Legacy loans (excludes loans acquired)$9.6$9.3$8.1
Loans acquired$3.4$3.9$3.8

Total loans, including those acquired, were $13.0 billion at September 30, 2019, an increase of $1.1 billion, or 9.7%, compared to $11.9 billion at September 30, 2018, primarily due to the Reliance Bank merger completed in the second quarter 2019. On a linked-quarter basis (September 30, 2019 compared to June 30, 2019), total loans decreased $124.1 million, or 0.9%, primarily due to a reduction in the CRE portfolio. During the third quarter 2019, the Company reduced its real estate portfolio by $165 million as part of an effort to manage its CRE concentration.


($ in billions)3rd Qtr 20192nd Qtr 20193rd Qtr 2018
Total deposits$13.5$13.5$12.1
Non-time deposits$10.4$10.2$9.6
Time deposits$3.1$3.3$2.5

Total deposits were $13.5 billion at September 30, 2019, an increase of $1.4 billion, or 11.4%, since September 30, 2018, primarily due to the Reliance Bank merger completed during the second quarter 2019. Total deposits remained flat compared to June 30, 2019 as a result of the increase in non-time deposits being completely offset by a decrease in time deposits.

Net Interest Income

 3rd Qtr
2nd Qtr
1st Qtr
4th Qtr
3rd Qtr
Loan yield (1)5.47%5.58%5.53%5.39%5.54%
Core loan yield (1) (2)5.19%5.26%5.29%5.25%5.19%
Security yield (1)2.83%3.02%3.09%2.87%2.74%
Cost of interest bearing deposits1.40%1.37%1.31%1.20%1.05%
Cost of deposits (3)1.09%1.07%1.02%0.93%0.81%
Cost of borrowed funds2.52%2.50%2.73%2.64%2.48%
Net interest margin (1)3.81%3.92%3.85%3.76%3.98%
Core net interest margin (1) (2)3.58%3.66%3.67%3.66%3.71%

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

The Company’s net interest income for the third quarter of 2019 was $150.2 million, an increase of $7.2 million, or 5.0%, from the same period of 2018. Included in interest income was the yield accretion recognized on loans acquired of $9.3 million and $10.0 million for the third quarters of 2019 and 2018, respectively. Of this quarter’s yield accretion, $4.4 million, or 48%, was accretable credit mark related and $4.9 million, or 52%, was interest mark related.

Net interest margin (FTE) was 3.81% for the quarter ended September 30, 2019, an 11 basis point decrease from the second quarter of 2019. The Company’s core net interest margin, which excludes the accretion, was 3.58% for the third quarter of 2019, an 8 basis point decrease from the second quarter of 2019. The decrease in the net interest margin during the third quarter of 2019 was due to a timing difference between the Company’s ability to manage the rate decrease in its variable rate loan portfolio and its repricing of interest bearing deposits.

Non-Interest Income

Non-interest income for the third quarter of 2019 was $83.8 million, an increase of $50.1 million compared to the same period in the previous year. The majority of the increase was related to the gain on sale of the Visa Inc. class B common stock of $42.9 million recorded in Other Income. In addition, as part of a plan to rebalance its investment portfolio, the Company sold approximately $89 million of bonds during the quarter resulting in a gain on the sale of securities of $7.3 million.

Selected Non-Interest Income Items
($ in millions)
3rd Qtr
2nd Qtr
1st Qtr
4th Qtr
3rd Qtr
Service charges on deposit accounts$10.8$10.6$10.1$11.3$10.8
Mortgage lending income$4.5$3.7$2.8$1.5$1.5
SBA lending income$1.0$0.9$0.5$0.2$0.3
Debit and credit card fees$7.1$7.2$6.1$6.5$6.8
Gain (loss) on sale of securities$7.4$2.8$2.7-$0.1
Other income$43.8$5.1$3.1$5.7$4.9

Non-Interest Expense

Non-interest expense for the third quarter of 2019 was $106.9 million, an increase of $6.6 million compared to the third quarter of 2018. Included in this quarter were $2.9 million of pre-tax non-core items, that mostly consisted of merger-related costs. Excluding these expenses, core non-interest expense was $104.0 million for the third quarter of 2019, an increase of $5.5 million compared to the same period in 2018. The increase is primarily due to the $4 million donation to the Simmons First Foundation and incremental software and technology costs of $2.2 million due to the Company’s Next Generation Banking technology initiative.

Selected Non-Interest Expense Items
($ in millions)
3rd Qtr
2nd Qtr
1st Qtr
4th Qtr
3rd Qtr
Salaries and employee benefits$52.1$56.1$56.4$49.2$55.5
Merger related costs$2.6$7.5$1.5$0.8$0.8
Other operating expenses$37.9$32.9$30.1$30.2$29.7
Core salaries and employee benefits$51.9$53.2$56.0$49.1$55.5
Core merger related costs-----
Core other operating expenses$37.8$30.0$30.1$30.3$28.7

The efficiency ratio for the third quarter of 2019 was 43.77% compared to 53.47% for the same period in 2018.

Asset Quality

 3rd Qtr
2nd Qtr
1st Qtr
4th Qtr
3rd Qtr
Allowance for loan losses to total loans0.68%0.68%0.68%0.67%0.68%
Allowance for loan losses to non-performing loans91%101%97%164%136%
Non-performing loans to total loans0.76%0.67%0.70%0.41%0.50%
Net charge-off ratio (annualized)0.78%0.14%0.20%0.35%0.36%
Net charge-off ratio YTD (annualized)0.38%0.17%0.20%0.28%0.26%

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

At September 30, 2019, the allowance for loan losses for legacy loans was $66.0 million. The allowance for loan losses for loans acquired was $597,000 and the acquired loan discount mark was $60.4 million. The allowance for loan losses and discount mark provides a total of $127.0 million of coverage, which equates to a total coverage ratio of 0.97% of gross loans. The ratio of discount mark and related allowance to loans acquired was 1.78%.

Provision for loan losses for the third quarter of 2019 was $22.0 million, increases of $11.6 million when compared to September 30, 2018 and $14.9 million when compared to the second quarter of 2019. The sequential increase in the provision for loan losses was due to recording a special provision of $15.0 million during the third quarter, specifically related to the White Star charge-off.

Simmons Bank was a participant in a shared national credit (“SNC”) to White Star. White Star became the subject of bankruptcy proceedings earlier this year, and on September 30, 2019, the bankruptcy court handling the matter authorized the sale of White Star assets through a proceeding under Section 363 of the U.S. Bankruptcy Code to a third party.  Our portion of the SNC was $19.1 million.  Based on the anticipated net proceeds from the pending bankruptcy sale, our loss recognized in the third quarter was $14.7 million. 

Foreclosed Assets and Other Real Estate Owned

At September 30, 2019, foreclosed assets and other real estate owned were $19.6 million, a decrease of $3.1 million, or 13.6%, compared to the same period in 2018 and a decrease of $5.2 million, or 20.9%, from June 30, 2019. The composition of these assets is divided into three types: 

($ in millions)3rd Qtr
2nd Qtr
1st Qtr
4th Qtr
3rd Qtr
Closed bank branches, branch sites & associate relocation$5.9$6.5$7.6$8.0$9.6
Foreclosed assets - acquired$10.1$13.3$6.2$11.5$8.0
Foreclosed assets - legacy$3.6$5.0$5.2$6.1$5.1


 3rd Qtr
2nd Qtr
1st Qtr
4th Qtr
3rd Qtr
Stockholders’ equity to total assets14.3%13.8%14.3%13.6%13.4%
Tangible common equity to tangible assets9.1%8.5%9.0%8.4%8.1%
Regulatory tier 1 leverage ratio9.1%8.9%9.1%8.8%8.7%
Regulatory total risk-based capital ratio13.2%12.7%13.6%13.3%13.1%

At September 30, 2019, common stockholders' equity was $2.5 billion. Book value per share was $26.36 and tangible book value per share was $15.73 at September 30, 2019, compared to $23.66 and $13.48, respectively, at September 30, 2018.

Current Expected Credit Losses (“CECL”)

In 2016, new accounting guidance was issued that introduced a new credit loss methodology, the CECL methodology, which requires earlier recognition of credit losses, while also providing additional transparency about credit risk.

The CECL methodology utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for loans, held-to-maturity debt securities and other receivables measured at amortized cost at the  time the financial asset is originated or acquired. The allowance for credit losses is adjusted each period for changes in expected lifetime credit losses. This methodology replaces the multiple existing impairment methods in current guidance, which generally require that a loss be incurred before it is recognized. Within the life cycle of a loan or other financial asset, this new guidance will generally result in the earlier recognition of the provision for credit losses and the related allowance for credit losses than current practice. For available-for-sale debt securities that the Company intends to hold and where fair value is less than cost, credit-related impairment, if any, will be recognized through an allowance for credit losses and adjusted each period for changes in credit risk. The CECL guidance will be effective for the Company as of January 1, 2020.

The CECL methodology represents a significant change from existing guidance and is expected to result in material changes to the Company’s accounting for financial instruments. The Company is continuing to evaluate the effect that the new CECL methodology will have on its consolidated financial statements and related disclosures. Based on a preliminary analysis performed, the Company estimates that the allowance for credit losses will increase by approximately 130% to 170% over the allowance based on June 30, 2019 loan balances. When purchase discounts are considered, the increase is expected to be 10% to 30% over the June 30, 2019 total credit coverage ratio. These estimates are based upon the Company’s analysis of current macroeconomic conditions, assumptions and forecasts at this point in time and do not include the impact of the Company’s pending merger with The Landrum Company. These estimates are subject to change based on continuing review and challenge of the models, methodologies and judgements. The impact at adoption will also be influenced by the loan portfolio composition and quality at the adoption date, as well as, macroeconomic conditions and forecast at that time. The impact will be reflected as an adjustment to beginning retained earnings, net of income taxes, at adoption. Federal banking regulatory agencies have provided relief for an initial capital decrease at adoption by allowing the impact to be phased-in over three years on a straight-line basis. The adoption of CECL in 2020 could also impact the Company’s ongoing earnings, perhaps materially.

Implementation efforts have been underway, including model development and validation, fulfillment of additional data needs for new disclosures and reporting requirements, and drafting of accounting policies. Model validations and user acceptance testing commenced in the first quarter of 2019, with loss forecast modeling taking place in the third quarter of 2019. The Company intends to utilize a single macroeconomic scenario in estimating expected credit losses. Reasonable and supportable forecast periods and methods to revert to historical averages to arrive at lifetime expected credit losses vary by product. The Company has completed decisions around model methodologies and relevant elections are being finalized.

Share Repurchase Program

The Company also announced today that its board of directors has authorized a new stock repurchase program (“Program”) under which the Company may repurchase up to $60,000,000 of its Class A common stock currently issued and outstanding.  The Program will terminate on October 31, 2021 (unless terminated sooner).  The new Program replaces the Company’s existing stock repurchase program, which was announced on July 23, 2012.

“By leveraging our strong balance sheet to responsibly reduce our number of outstanding shares, we expect to be able to both increase shareholder value and maintain sufficient resources to fund our operations and growth opportunities as they arise,” said George Makris, Jr., Simmons’ chairman and chief executive officer.  “We believe our stock, particularly at current trading prices, continues to be an attractive investment, and the action of our board demonstrates our commitment to, and confidence in, the company’s future.”

Under the Program, the Company may repurchase shares of its common stock through open market and privately negotiated transactions or otherwise. The timing, pricing, and amount of any repurchases under the Program will be determined by the Company’s management at its discretion based on a variety of factors, including, but not limited to, trading volume and market price of the Company’s common stock, corporate considerations, the Company’s working capital and investment requirements, general market and economic conditions, and legal requirements. The Program does not obligate the Company to repurchase any common stock and may be modified, discontinued, or suspended at any time without prior notice. The Company anticipates funding for this Program to come from available sources of liquidity, including cash on hand and future cash flow.

Simmons First National Corporation

Simmons First National Corporation is a financial holding company headquartered in Pine Bluff, Arkansas, with total consolidated assets of approximately $17.8 billion as of September 30, 2019, conducting financial operations in Arkansas, Colorado, Illinois, Kansas, Missouri, Oklahoma, Tennessee and Texas. The Company, through its subsidiaries, offers comprehensive financial solutions delivered with a client-centric approach. The Company’s common stock trades on the NASDAQ Market under the symbol “SFNC.”

Conference Call

Management will conduct a live conference call to review this information beginning at 9:00 a.m. CDT today, Tuesday, October 22, 2019. Interested persons can listen to this call by dialing toll-free 1-866-298-7926 (United States and Canada only) and asking for the Simmons First National Corporation conference call, conference ID 2285967. In addition, the call will be available live or in recorded version on the Company’s website at

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles (GAAP). The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance. These measures adjust GAAP performance measures to, among other things, include the tax benefit associated with revenue items that are tax-exempt, as well as exclude from income available to common shareholders certain expenses related to significant non-core activities, including merger-related expenses, expenses related to the Company’s early retirement program, and branch right-sizing expenses.  In addition, the Company also presents certain figures based on tangible common stockholders’ equity, which excludes goodwill and other intangible assets. The Company’s management believes that these non-GAAP financial measures are useful to investors because they present the results of the Company’s ongoing operations without the effect of mergers or other items not central to the Company’s ongoing business, as well as normalizing for tax effects. Management, therefore, believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

Forward-Looking Statements

Some of the statements in this news release may not be based on historical facts and should be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by reference to future periods or by the use of forward-looking terminology, such as “believe,” “budget,” “expect,” “foresee,” “anticipate,” “intend,” “indicate,” “target,” “estimate,” “plan,” “project,” “continue,” “contemplate,” “positions,” “prospects,” “predict,” or “potential,” by future conditional verbs such as “will,” “would,” “should,” “could,” “might” or “may,” or by variations of such words or by similar expressions. These forward-looking statements include, without limitation, statements relating to Simmons’ future growth, revenue, assets, asset quality, profitability, net interest margin, non-interest revenue, share repurchase program, the adequacy of the allowance for loan losses, and the effect of certain new accounting standards (including, without limitation, the CECL methodology and its anticipated effect on the provision and allowance for credit losses) on the Company’s financial statements. Any forward-looking statement speaks only as of the date of this news release, and Simmons undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release. By nature, forward-looking statements are based on various assumptions and involve inherent risk and uncertainties. Various factors, including, but not limited to, changes in economic conditions, credit quality, interest rates, loan demand, deposit flows, real estate values, the assumptions used in making the forward-looking statements, the securities markets generally or the price of Simmons common stock specifically, information technology affecting the financial industry, the assumptions, forecasts, models, and methodology used to calculate the expected impact of CECL on the Company’s financial statements, and the Company’s ability to manage and successfully integrate its mergers and acquisitions could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect Simmons First National Corporation’s financial results is included in its Form 10-K for the year ended December 31, 2018, which has been filed with, and is available from, the Securities and Exchange Commission.

Stephen C. Massanelli
EVP, Chief Administrative Officer and Investor Relations Officer
Simmons First National Corporation

Simmons First National Corporation    SFNC
Consolidated End of Period Balance Sheets     
For the Quarters EndedSep 30
 Jun 30
 Mar 31
 Dec 31
 Sep 30
(Unaudited)2019 2019 2019 2018 2018 
($ in thousands)     
Cash and non-interest bearing balances due from banks$161,440 $145,491 $151,112 $171,792 $125,231 
Interest bearing balances due from banks and federal funds sold 368,530  509,765  340,049  661,666  388,573 
Cash and cash equivalents 529,970  655,256  491,161  833,458  513,804 
Interest bearing balances due from banks - time 5,041  5,041  4,684  4,934  3,954 
Investment securities - held-to-maturity 42,237  47,455  61,435  289,194  323,306 
Investment securities - available-for-sale 2,356,134  2,342,387  2,240,111  2,151,752  1,997,814 
Mortgage loans held for sale 50,099  34,999  18,480  26,799  48,195 
Other assets held for sale 383  397  397  1,790  5,136 
Legacy loans 9,643,365  9,262,497  8,684,550  8,430,388  8,123,274 
Allowance for loan losses (65,993) (63,067) (59,243) (56,599) (55,358)
Loans acquired, net of discount and allowance 3,359,587  3,864,516  3,056,187  3,292,783  3,734,921 
Net loans 12,936,959  13,063,946  11,681,494  11,666,572  11,802,837 
Premises and equipment 378,678  370,551  333,740  295,060  287,246 
Foreclosed assets and other real estate owned 19,576  24,761  18,952  25,565  22,664 
Interest receivable 53,966  54,781  51,796  49,938  51,509 
Bank owned life insurance 234,655  233,345  192,736  193,170  192,680 
Goodwill 926,648  926,450  845,687  845,687  845,687 
Other intangible assets 101,149  104,096  88,694  91,334  93,975 
Other assets 123,016  73,970  62,272  68,084  92,457 
Total assets$17,758,511 $17,937,435 $16,091,639 $16,543,337 $16,281,264 
Non-interest bearing transaction accounts$3,044,330 $2,954,032 $2,674,034 $2,672,405 $2,778,670 
Interest bearing transaction accounts and savings deposits 7,337,571  7,258,005  6,666,823  6,830,191  6,776,330 
Time deposits 3,086,108  3,304,176  2,648,674  2,896,156  2,533,506 
Total deposits 13,468,009  13,516,213  11,989,531  12,398,752  12,088,506 
Federal funds purchased and securities sold     
under agreements to repurchase 116,536  130,470  120,213  95,792  109,213 
Other borrowings 1,098,395  1,324,094  1,169,989  1,345,450  1,420,917 
Subordinated notes and debentures 354,223  354,132  354,041  353,950  372,934 
Other liabilities held for sale -  162  162  162  424 
Accrued interest and other liabilities 174,277  142,851  155,382  102,797  105,951 
Total liabilities 15,211,440  15,467,922  13,789,318  14,296,903  14,097,945 
Stockholders' equity:               
Common stock 966  966  926  923  923 
Surplus 1,708,058  1,705,262  1,599,566  1,597,944  1,597,261 
Undivided profits 814,338  747,969  707,829  674,941  633,175 
Accumulated other comprehensive income (loss):     
Unrealized accretion (depreciation) on AFS securities 23,709  15,316  (6,000) (27,374) (48,040)
Total stockholders' equity 2,547,071  2,469,513  2,302,321  2,246,434  2,183,319 
Total liabilities and stockholders' equity$17,758,511 $17,937,435 $16,091,639 $16,543,337 $16,281,264 

Simmons First National Corporation    SFNC
Consolidated Statements of Income - Quarter-to-Date    
For the Quarters EndedSep 30
 Jun 30
 Mar 31
 Dec 31
 Sep 30
(Unaudited)2019 2019
 2018 2018
($ in thousands, except per share data)     
Loans$179,971 $178,122 $159,440 $159,996 $162,438
Interest bearing balances due from banks and federal funds sold 1,586  1,121  2,154  2,168  1,405
Investment securities 15,367  16,594  17,312  15,760  14,640
Mortgage loans held for sale 382  332  210  372  501
TOTAL INTEREST INCOME 197,306  196,169  179,116  178,296  178,984
Time deposits 15,573  14,606  12,320  11,273  8,017
Other deposits 21,363  20,190  18,430  17,489  16,373
Federal funds purchased and securities     
sold under agreements to repurchase 249  257  136  121  104
Other borrowings 5,381  6,219  6,793  7,134  6,240
Subordinated notes and debentures 4,576  4,541  4,411  4,498  5,282
TOTAL INTEREST EXPENSE 47,142  45,813  42,090  40,515  36,016
NET INTEREST INCOME 150,164  150,356  137,026  137,781  142,968
Provision for loan losses 21,973  7,079  9,285  9,620  10,345
FOR LOAN LOSSES 128,191  143,277  127,741  128,161  132,623
Trust income 6,108  5,794  5,708  5,980  6,277
Service charges on deposit accounts 10,825  10,557  10,068  11,263  10,837
Other service charges and fees 1,308  1,312  1,289  1,501  1,201
Mortgage lending income 4,509  3,656  2,823  1,457  1,521
SBA lending income 956  895  497  186  304
Investment banking income 513  360  618  829  664
Debit and credit card fees 7,059  7,212  6,098  6,547  6,820
Bank owned life insurance income 1,302  1,260  795  1,105  1,105
Gain on sale of securities, net 7,374  2,823  2,740  8  54
Other income 43,821  5,137  3,125  5,712  4,942
TOTAL NON-INTEREST INCOME 83,775  39,006  33,761  34,588  33,725
Salaries and employee benefits 52,065  56,128  56,367  49,193  55,515
Occupancy expense, net 8,342  6,919  7,475  7,016  7,713
Furniture and equipment expense 4,898  4,206  3,358  4,139  3,761
Other real estate and foreclosure expense 1,125  591  637  1,540  538
Deposit insurance (2) 2,510  2,040  2,489  2,248
Merger-related costs 2,556  7,522  1,470  797  804
Other operating expenses 37,881  32,867  30,062  30,222  29,674
TOTAL NON-INTEREST EXPENSE 106,865  110,743  101,409  95,396  100,253
NET INCOME BEFORE INCOME TAXES 105,101  71,540  60,093  67,353  66,095
Provision for income taxes 23,275  15,616  12,398  11,707  10,902
NET INCOME 81,826  55,924  47,695  55,646  55,193
Preferred stock dividends -  326  -  -  -
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$81,826 $55,598 $47,695 $55,646 $55,193
BASIC EARNINGS PER SHARE$0.85 $0.58 $0.52 $0.60 $0.60
DILUTED EARNINGS PER SHARE$0.84 $0.58 $0.51 $0.60 $0.59

Simmons First National Corporation   SFNC
Consolidated Risk-Based Capital     
For the Quarters EndedSep 30
 Jun 30
 Mar 31
 Dec 31
 Sep 30
(Unaudited)2019 2019 2019 2018 2018 
($ in thousands)     
Tier 1 capital     
Stockholders' equity$2,547,071 $2,469,513 $2,302,321 $2,246,434 $2,183,319 
Disallowed intangible assets, net of deferred tax (1,013,309) (1,001,676) (910,122) (912,428) (914,788)
Unrealized (gain) loss on AFS securities (23,709) (15,316) 6,000  27,374  48,040 
Total Tier 1 capital 1,510,053  1,452,521  1,398,199  1,361,380  1,316,571 
Tier 2 capital     
Qualifying unrealized gain on AFS equity securities -  -  -  -  1 
Trust preferred securities and subordinated debt 354,223  354,132  354,041  353,950  372,934 
Qualifying allowance for loan losses and     
reserve for unfunded commitments 74,455  72,044  67,771  63,608  63,618 
Total Tier 2 capital 428,678  426,176  421,812  417,558  436,553 
Total risk-based capital$1,938,731 $1,878,697 $1,820,011 $1,778,938 $1,753,124 
Risk weighted assets$14,725,571 $14,825,253 $13,364,636 $13,326,832 $13,402,910 
Adjusted average assets for leverage ratio$16,681,527 $16,382,520 $15,423,961 $15,512,042 $15,179,889 
Ratios at end of quarter     
Equity to assets 14.34% 13.77% 14.31% 13.58% 13.41%
Tangible common equity to tangible assets (1) 9.08% 8.51% 9.02% 8.39% 8.11%
Common equity Tier 1 ratio (CET1) 10.25% 9.80% 10.46% 10.22% 9.82%
Tier 1 leverage ratio 9.05% 8.87% 9.07% 8.78% 8.67%
Tier 1 risk-based capital ratio 10.25% 9.80% 10.46% 10.22% 9.82%
Total risk-based capital ratio 13.17% 12.67% 13.62% 13.35% 13.08%
(1) Calculations of tangible common equity to tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release.

Simmons First National Corporation   SFNC
Consolidated Loans and Investments     
For the Quarters EndedSep 30
 Jun 30
 Mar 31
 Dec 31
 Sep 30
(Unaudited)2019 2019 2019 2018 2018
($ in thousands)     
Legacy Loan Portfolio - End of Period (1)     
Credit cards$195,083 $187,919 $181,549 $204,173 $182,137
Other consumer 208,643  207,445  213,659  201,297  259,581
Total consumer 403,726  395,364  395,208  405,470  441,718
Real Estate     
Construction 1,712,858  1,540,352  1,376,162  1,300,723  1,229,888
Single-family residential 1,448,455  1,444,525  1,431,407  1,440,443  1,401,991
Other commercial 3,630,708  3,531,273  3,355,109  3,225,287  3,077,188
Total real estate 6,792,021