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Press Release

Simmons Reports Record 2019 Earnings

Company Release - 1/23/2020 8:30 AM ET

PINE BLUFF, Ark., Jan. 23, 2020 (GLOBE NEWSWIRE) -- Simmons First National Corporation (NASDAQ: SFNC) today announced net income of $237.8 million for the year ended December 31, 2019, compared to $215.7 million for 2018, an increase of $22.1 million, or 10.3%. Diluted earnings per share were $2.41 for 2019, an increase of $0.09, or 3.9%, compared to prior year. Included in the 2019 results were $31.7 million in net after-tax merger-related, early retirement program and branch right-sizing costs. Excluding the impact of these items, core earnings were $269.6 million for the year ended December 31, 2019, compared to $220.2 million for 2018, an increase of $49.3 million, or 22.4%. Core diluted earnings per share were $2.73, an increase of $0.36, or 15.2%, from the same period in 2018.

Fourth quarter 2019 net income was $52.7 million, or $0.49 diluted earnings per share, compared to $55.6 million, or $0.60 diluted earnings per share, for the same period in 2018. Excluding $18.4 million in net after-tax merger-related and branch right-sizing costs, fourth quarter 2019 core earnings were $71.1 million, an increase of $14.6 million compared to the same period last year. Core diluted earnings per share were $0.66, an increase of $0.05, or 8.2%, from the same period in 2018.

“We are very proud of our results for 2019,” said George A. Makris, Jr., chairman and CEO of Simmons First National Corporation. “Not only did we produce excellent financial results, we welcomed new associates from Reliance Bank in St. Louis and Landmark Bank in Columbia, MO to the Simmons family.

“From time to time we tend to be focused more on specific metrics within our financial performance and lose sight of the bigger picture results. In retrospect, our performance in 2019 was remarkable. We achieved a return on assets of 1.33% and a core return on assets of 1.51%, which exceeded our target of 1.50%. We produced a 9.9% return on common equity with an 18.0% return on tangible common equity and a 20.3% core return on tangible common equity. We operated at an efficiency ratio of 50.3%, which is within our target range of 50-55%. Our construction and development concentration went from 105% at the end of the second quarter to 98% at year-end while our commercial real estate concentration was lowered from 333% at the end of the second quarter to 293% at year-end – both ratios now below the regulatory guidelines. And importantly, our book value per share rose 8.1% while our tangible book value per share rose 12.1% during a time when we completed two acquisitions – Reliance Bank in St. Louis and Landmark Bank in Columbia, MO – which added $4.9 billion in assets and we repurchased $10 million of our stock.”

Makris continued, “During 2020, we will continue to implement our technology initiatives, including the expansion of our digital offerings, and adjust our business strategy to take advantage of our successful growth over the past few years. I am extremely optimistic about the future of Simmons Bank.”

Selected Highlights:YTD 2019YTD 20184th Qtr 20194th Qtr 2018
Net income$237.8 million$215.7 million$52.7 million$55.6 million
Diluted earnings per share$2.41 $2.32 $0.49 $0.60 
Return on avg assets1.33% 1.37% 1.04% 1.35% 
Return on avg common equity9.93% 10.00% 8.01% 9.98% 
Return on tangible common equity (1)17.99% 18.44% 14.62% 17.96% 
     
Core earnings (2)$269.6 million$220.2 million$71.1 million$56.5 million
Core diluted earnings per share (2)$2.73 $2.37 $0.66 $0.61 
Core return on avg assets (2)1.51% 1.40% 1.41% 1.37% 
Core return on avg common equity (2)11.25% 10.21% 10.80% 10.13% 
Core return on tangible common equity (1)(2)20.31% 18.81% 19.50% 18.21% 
     
Efficiency ratio (3)50.33% 52.85% 52.63% 51.99% 
  1. Return on tangible common equity excludes goodwill and other intangible assets, and is a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
  2. 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.
  3. Efficiency ratio is noninterest expense before foreclosed property expense, amortization of intangibles as a percent of net interest income (fully taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and non-core items, and is a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

Loans

($ in billions)4th Qtr 20193rd Qtr 20194th Qtr 2018
Total loans$14.4$13.0$11.7
Legacy loans (excludes loans acquired)$9.6$9.6$8.4
Loans acquired$4.8$3.4$3.3

Total loans, including those acquired, were $14.4 billion at December 31, 2019, an increase of $2.7 billion, or 23.0%, compared to December 31, 2018, primarily due to The Landrum Company and Reliance Bank mergers completed during the fourth and second quarters of 2019, respectively. On a linked-quarter basis (December 31, 2019 compared to September 30, 2019), total loans increased $1.4 billion, or 10.9%, from the fourth quarter merger. The increase was partially offset by the reclassification of $260 million in loan balances associated with the branches held for sale in south Texas.

Deposits

($ in billions)4th Qtr 20193rd Qtr 20194th Qtr 2018
Total deposits$16.1$13.5$12.4
Non-time deposits$12.8$10.4$9.5
Time deposits$3.3$3.1$2.9

Total deposits were $16.1 billion at December 31, 2019, an increase of $3.7 billion, or 29.9%, since December 31, 2018, primarily due to the 2019 mergers partially offset by the reclassification of $160 million of deposits associated with the branches held for sale.

Net Interest Income

 4th Qtr
2019
3rd Qtr
2019
2nd Qtr
2019
1st Qtr
2019
4th Qtr
2018
Loan yield (1)5.43%5.47%5.58%5.53%5.39%
Core loan yield (1) (2)5.00%5.19%5.26%5.29%5.25%
Security yield (1)2.67%2.83%3.02%3.09%2.87%
Cost of interest bearing deposits1.22%1.40%1.37%1.31%1.20%
Cost of deposits (3)0.94%1.09%1.07%1.02%0.93%
Cost of borrowed funds2.30%2.52%2.50%2.73%2.64%
Net interest margin (1)3.76%3.81%3.92%3.85%3.76%
Core net interest margin (1) (2)3.43%3.58%3.66%3.67%3.66%
  1. Fully tax equivalent using an effective tax rate of 26.135%.
  2. Core loan yield and core net interest margin exclude accretion, and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
  3. Includes non-interest bearing deposits.

The Company’s net interest income for the fourth quarter of 2019 was $167.7 million, an increase of $29.9 million, or 21.7%, from the same period of 2018. Included in interest income was the yield accretion recognized on loans acquired of $15.1 million and $3.9 million for the fourth quarters of 2019 and 2018, respectively. Of this quarter’s yield accretion, 52% was accretable credit mark related and 48% was interest mark related.

Net interest margin (FTE) was 3.76% for the quarter ended December 31, 2019, while core net interest margin, which excludes the accretion, was 3.43% for the same period.

Non-Interest Income

Non-interest income for 2019 was $201.5 million, an increase of $57.6 million compared to the previous year. The increase was primarily due to the gain on sale of the Visa Inc. class B common stock of $42.9 million that was completed during the third quarter 2019. Additionally, during 2019 the Company was focused on rebalancing its investment portfolio and consequently recognized additional gains on the sale of securities.

Non-interest income for the fourth quarter of 2019 was $45.0 million, an increase of $10.4 million compared to the same period in the previous year. The increase was due to additional income within most non-interest income categories as a result of The Landrum Company and Reliance Bank mergers completed during 2019.

Selected Non-Interest Income Items
($ in millions)

YTD 2019

YTD 2018
 
4th Qtr 2019

4th Qtr 2018
Service charges on deposit accounts$44.8$42.5$13.3$11.3
Mortgage lending income$15.0$9.2$4.0$1.5
SBA lending income$2.7$1.8$0.3$0.2
Debit and credit card fees$29.3$32.3$8.9$6.5
Gain on sale of securities$13.3$0.1$0.4 -
Other income$58.5$19.9$6.4$5.7

Non-Interest Expense

Non-interest expense for 2019 was $461.1 million, an increase of $68.9 million compared to the previous year. Included in 2019 were $43.0 million of pre-tax non-core items, that mostly consisted of merger-related costs. Excluding these expenses, core non-interest expense was $418.1 million, an increase of $32.0 million compared to 2018 core non-interest expense. The increase was primarily due to the incremental costs associated with the 2019 mergers and the Next Generation Banking (“NGB”) technology initiative. The Company recognized an additional $11.4 million in software and technology expense related to its NGB initiative in 2019.

Non-interest expense for the fourth quarter of 2019 was $142.1 million, an increase of $46.7 million compared to the fourth quarter of 2018. Included in this quarter were $24.9 million of pre-tax non-core items. Excluding these expenses, core non-interest expense was $117.2 million for the fourth quarter of 2019, an increase of $22.9 million compared to the same period in 2018, primarily the result of the 2019 mergers and additional software and technology costs related to the NGB initiative.

The efficiency ratio for 2019 was 50.33% compared to 52.85% for 2018.

Selected Non-Interest Expense Items
($ in millions)
 
YTD 2019

YTD 2018

4th Qtr 2019

4th Qtr 2018
Salaries and employee benefits$227.8$216.7$63.2$49.2
Merger related costs$36.4$4.8$24.8$0.8
Other operating expenses$138.9$111.6$38.0$30.2
     
Core salaries and employee benefits(1)$224.3$216.6$63.2$49.1
Core merger related costs(1) - - - -
Core other operating expenses(1)$135.9$110.7$38.0$30.3

(1)     Core figures exclude non-core items, and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

Asset Quality

 4th Qtr
2019
3rd Qtr
2019
2nd Qtr
2019
1st Qtr
2019
4th Qtr
2018
Allowance for loan losses to total loans0.70%0.68%0.68%0.68%0.67%
Allowance for loan losses to non-performing loans95%91%101%97%164%
Non-performing loans to total loans0.74%0.76%0.67%0.70%0.41%
Net charge-off ratio (annualized)0.12%0.78%0.14%0.20%0.35%
Net charge-off ratio YTD (annualized)0.31%0.38%0.17%0.20%0.28%

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, 2019, the allowance for loan losses for legacy loans was $67.8 million. The allowance for loan losses for loans acquired was $444,000 and the acquired loan discount mark was $87.3 million. The allowance for loan losses and discount mark provides a total of $155.5 million of coverage, which equates to a total coverage ratio of 1.07% of gross loans. The ratio of discount mark and related allowance to loans acquired was 1.80%.

Provision for loan losses for 2019 was $43.2 million, an increase of $5.1 million from 2018. Provision for loan losses for the fourth quarter 2019 was $4.9 million, a decrease of $4.7 million when compared to the same period of 2018.

Foreclosed Assets and Other Real Estate Owned

At December 31, 2019, foreclosed assets and other real estate owned were $19.1 million, a decrease of $6.4 million, or 25.2%, compared to year end 2018. The composition of these assets is divided into three types:     

 

($ in millions)
4th Qtr
2019
3rd Qtr
2019
2nd Qtr
2019
1st Qtr
2019
4th Qtr
2018
Closed bank branches, branch sites & associate relocation$5.7$5.9$6.5$7.6$8.0
Foreclosed assets - acquired$10.3$10.1$13.3$6.2$11.5
Foreclosed assets – legacy$3.1$3.6$5.0$5.2$6.1

Capital

 4th Qtr
2019
3rd Qtr
2019
2nd Qtr
2019
1st Qtr
2019
4th Qtr
2018
Stockholders’ equity to total assets14.1%14.3%13.8%14.3%13.6%
Tangible common equity to tangible assets9.0%9.1%8.5%9.0%8.4%
Regulatory tier 1 leverage ratio9.6%9.1%8.9%9.1%8.8%
Regulatory total risk-based capital ratio13.6%13.2%12.7%13.6%13.3%

At December 31, 2019, common stockholders' equity was $3.0 billion. Book value per share was $26.30 and tangible book value per share was $15.89 at December 31, 2019, compared to $24.33 and $14.18, respectively, at December 31, 2018. The ratio of tangible common equity to tangible assets was 9.0% at December 31, 2019, compared to 8.4% from the previous year-end.

During the fourth quarter of 2019, the Company repurchased approximately 400,000 shares at an average price of $25.97.

Management Changes

The Company also announced today that Marty Casteel, a Company director and senior executive vice president, as well as the chairman, president, and chief executive officer of the Company’s subsidiary bank, Simmons Bank, will retire from his employment with the Company and Simmons Bank, effective March 31, 2020. Casteel will continue to serve as a director of both the Company and Simmons Bank. “For over thirty years, Marty has been a critical component of Simmons’ success,” said Makris. “With deep knowledge, experience, and integrity, Marty has provided incredible leadership to our organization and masterfully overseen its recent transformation through acquisitions with great care and compassion for all involved. I am personally extremely grateful for his presence and counsel during my tenure with this company, and I am thankful Marty has agreed to remain affiliated with it as a director. On behalf of everyone at Simmons, I’d like to congratulate Marty on a job very well done and wish him the best as he begins his next chapter.” Upon Casteel’s retirement, Makris will assume the role of chairman, president, and chief executive officer of Simmons Bank, in addition to his current role as chairman and chief executive officer of the Company.

In addition, the Company announced that Patrick Burrow, executive vice president and general counsel, will retire, effective March 31, 2020. “As the company’s first general counsel,” Makris noted, “and prior to that, its longtime outside counsel, Pat has been a steady source of legal advice for our organization and its associates. He has played a significant role in many of the company’s strategic transactions, and I am thankful for his service to Simmons. As with Marty, we wish him the best and congratulate him on his retirement.”

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 replaces the current incurred loss methodology with a lifetime “expected credit loss” measurement objective for loans, held-to-maturity debt securities and other receivables measured at amortized cost at the time the financial asset is originated or acquired. This standard requires the consideration of historical loss experience and current conditions adjusted for reasonable and supportable economic forecasts. The Company has elected to utilize a blended macroeconomic scenario using a one-year forecast horizon with a subsequent reversion to historical loss experience. 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. The CECL guidance was 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 additional analysis performed during the fourth quarter of 2019, the Company currently estimates that the allowance for credit losses will be approximately 1.35% to 1.45% of total loans upon adoption. This estimate is based upon the Company’s analysis of current conditions, assumptions and economic forecasts at this point in time. The estimate is subject to change based on continuing review and challenge of the models, methodologies and judgements. The impact will be reflected as an adjustment to beginning retained earnings, net of income taxes. Federal banking regulatory agencies have provided relief for an initial regulatory 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.

Simmons First National Corporation

Simmons First National Corporation is a financial holding company headquartered in Pine Bluff, Arkansas, with total consolidated assets of approximately $21.3 billion as of December 31, 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. CST today, Thursday, January 23, 2020. 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 9397974. In addition, the call will be available live or in recorded version on the Company’s website at www.simmonsbank.com.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles (GAAP). The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance. These measures adjust GAAP performance measures to, among other things, include the tax benefit associated with revenue items that are tax-exempt, as well as exclude from income available to common shareholders certain expenses related to significant non-core activities, including merger-related expenses, expenses related to the Company’s early retirement program, and branch right-sizing expenses. In addition, the Company also presents certain figures based on tangible common stockholders’ equity and tangible book value, which exclude 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 Company’s ability to recruit and retain key employees, 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, the Company’s ability to manage and successfully integrate its mergers and acquisitions, cyber threats, attacks or events, reliance on third parties for key services and other factors, many of which are beyond the control of the Company, 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 Dec 31  Sep 30  Jun 30  Mar 31  Dec 31 
(Unaudited) 2019  2019  2019  2019  2018 
($ in thousands)     
ASSETS     
Cash and non-interest bearing balances due from banks$277,208 $161,440 $145,491 $151,112 $171,792 
Interest bearing balances due from banks and federal funds sold 719,415  368,530  509,765  340,049  661,666 
  Cash and cash equivalents 996,623  529,970  655,256  491,161  833,458 
Interest bearing balances due from banks - time 4,554  5,041  5,041  4,684  4,934 
Investment securities - held-to-maturity 40,927  42,237  47,455  61,435  289,194 
Investment securities - available-for-sale 3,453,338  2,356,134  2,342,387  2,240,111  2,151,752 
Mortgage loans held for sale 58,102  50,099  34,999  18,480  26,799 
Other assets held for sale 260,332  383  397  397  1,790 
Loans:     
Legacy loans 9,630,076  9,643,365  9,262,497  8,684,550  8,430,388 
Allowance for loan losses (67,800) (65,993) (63,067) (59,243) (56,599)
Loans acquired, net of discount and allowance 4,795,184  3,359,587  3,864,516  3,056,187  3,292,783 
Net loans 14,357,460  12,936,959  13,063,946  11,681,494  11,666,572 
Premises and equipment 492,384  378,678  370,551  333,740  295,060 
Foreclosed assets and other real estate owned 19,121  19,576  24,761  18,952  25,565 
Interest receivable 62,707  53,966  54,781  51,796  49,938 
Bank owned life insurance 254,152  234,655  233,345  192,736  193,170 
Goodwill 1,055,520  926,648  926,450  845,687  845,687 
Other intangible assets 127,340  101,149  104,096  88,694  91,334 
Other assets 76,583  123,016  73,970  62,272  68,084 
Total assets$21,259,143 $17,758,511 $17,937,435 $16,091,639 $16,543,337 
      
LIABILITIES AND STOCKHOLDERS' EQUITY     
Deposits:     
Non-interest bearing transaction accounts$3,741,093 $3,044,330 $2,954,032 $2,674,034 $2,672,405 
Interest bearing transaction accounts and savings deposits 9,090,878  7,337,571  7,258,005  6,666,823  6,830,191 
Time deposits 3,276,969  3,086,108  3,304,176  2,648,674  2,896,156 
  Total deposits 16,108,940  13,468,009  13,516,213  11,989,531  12,398,752 
Federal funds purchased and securities sold     
under agreements to repurchase 150,145  116,536  130,470  120,213  95,792 
Other borrowings 1,297,599  1,098,395  1,324,094  1,169,989  1,345,450 
Subordinated notes and debentures 388,260  354,223  354,132  354,041  353,950 
Other liabilities held for sale 159,853  -  162  162  162 
Accrued interest and other liabilities 165,409  174,277  142,851  155,382  102,797 
Total liabilities 18,270,206  15,211,440  15,467,922  13,789,318  14,296,903 
      
Stockholders' equity:     
Preferred stock 767  -  -  -  - 
Common stock 1,136  966  966  926  923 
Surplus 2,117,282  1,708,058  1,705,262  1,599,566  1,597,944 
Undivided profits 848,861  814,338  747,969  707,829  674,941 
Accumulated other comprehensive income (loss):     
Unrealized accretion (depreciation) on AFS securities 20,891  23,709  15,316  (6,000) (27,374)
Total stockholders' equity 2,988,937  2,547,071  2,469,513  2,302,321  2,246,434 
Total liabilities and stockholders' equity$21,259,143 $17,758,511 $17,937,435 $16,091,639 $16,543,337 
      



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) 2019  2019 2019 2019 2018 
($ in thousands, except per share data)      
INTEREST INCOME      
  Loans$193,402 $179,971$178,122$159,440$159,996 
  Interest bearing balances due from banks and federal funds sold 2,625  1,586 1,121 2,154 2,168 
  Investment securities 17,625  15,367 16,594 17,312 15,760 
  Mortgage loans held for sale 402  382 332 210 372 
  TOTAL INTEREST INCOME 214,054  197,306 196,169 179,116 178,296 
INTEREST EXPENSE      
  Time deposits 16,198  15,573 14,606 12,320 11,273 
  Other deposits 20,331  21,363 20,190 18,430 17,489 
  Federal funds purchased and securities      
  sold under agreements to repurchase 368  249 257 136 121 
  Other borrowings 4,615  5,381 6,219 6,793 7,134 
  Subordinated notes and debentures 4,813  4,576 4,541 4,411 4,498 
  TOTAL INTEREST EXPENSE 46,325  47,142 45,813 42,090 40,515 
NET INTEREST INCOME 167,729  150,164 150,356 137,026 137,781 
  Provision for loan losses 4,903  21,973 7,079 9,285 9,620 
NET INTEREST INCOME AFTER PROVISION      
  FOR LOAN LOSSES 162,826  128,191 143,277 127,741 128,161 
NON-INTEREST INCOME      
  Trust income 7,430  6,108 5,794 5,708 5,980 
  Service charges on deposit accounts 13,332  10,825 10,557 10,068 11,263 
  Other service charges and fees 1,915  1,308 1,312 1,289 1,501 
  Mortgage lending income 4,029  4,509 3,656 2,823 1,457 
  SBA lending income 321  956 895 497 186 
  Investment banking income 822  513 360 618 829 
  Debit and credit card fees 8,920  7,059 7,212 6,098 6,547 
  Bank owned life insurance income 1,411  1,302 1,260 795 1,105 
  Gain on sale of securities, net 377  7,374 2,823 2,740 8 
  Other income 6,410  43,821 5,137 3,125 5,712 
  TOTAL NON-INTEREST INCOME 44,967  83,775 39,006 33,761 34,588 
NON-INTEREST EXPENSE      
  Salaries and employee benefits 63,235  52,065 56,128 56,367 49,193 
  Occupancy expense, net 9,272  8,342 6,919 7,475 7,016 
  Furniture and equipment expense 5,758  4,898 4,206 3,358 4,139 
  Other real estate and foreclosure expense 1,089  1,125 591 637 1,540 
  Deposit insurance (134) - 2,510 2,040 2,489 
  Merger-related costs 24,831  2,556 7,522 1,470 797 
  Other operating expenses 38,044  37,879 32,867 30,062 30,222 
  TOTAL NON-INTEREST EXPENSE 142,095  106,865 110,743 101,409 95,396 
NET INCOME BEFORE INCOME TAXES 65,698  105,101 71,540 60,093 67,353 
  Provision for income taxes 12,976  23,275 15,616 12,398 11,707 
NET INCOME 52,722  81,826 55,924 47,695 55,646 
  Preferred stock dividends -  - 326 - - 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$52,722 $81,826$55,598$47,695$55,646 
BASIC EARNINGS PER SHARE$0.49 $0.85$0.58$0.52$0.60 
DILUTED EARNINGS PER SHARE$0.49 $0.84$0.58$0.51$0.60 
       



Simmons First National Corporation   SFNC
Consolidated Risk-Based Capital     
For the Quarters Ended Dec 31  Sep 30  Jun 30  Mar 31  Dec 31 
(Unaudited) 2019  2019  2019  2019  2018 
($ in thousands)     
Tier 1 capital     
  Stockholders' equity$2,988,937 $2,547,071 $2,469,513 $2,302,321 $2,246,434 
  Disallowed intangible assets, net of deferred tax (1,155,405) (1,013,309) (1,001,676) (910,122) (912,428)
  Unrealized (gain) loss on AFS securities (20,891) (23,709) (15,316) 6,000  27,374 
  Total Tier 1 capital 1,812,641  1,510,053  1,452,521  1,398,199  1,361,380 
      
Tier 2 capital     
  Qualifying unrealized gain on AFS equity securities -  -  -  -  - 
  Trust preferred securities and subordinated debt 388,260  354,223  354,132  354,041  353,950 
  Qualifying allowance for loan losses and     
  reserve for unfunded commitments 76,644  74,455  72,044  67,771  63,608 
  Total Tier 2 capital 464,904  428,678  426,176  421,812  417,558 
  Total risk-based capital$2,277,545 $1,938,731 $1,878,697 $1,820,011 $1,778,938 
      
Risk weighted assets$16,731,384 $14,725,571 $14,825,253 $13,364,636 $13,326,832 
      
Adjusted average assets for leverage ratio$18,848,103 $16,681,527 $16,382,520 $15,423,961 $15,512,042 
      
Ratios at end of quarter     
  Equity to assets 14.06% 14.34% 13.77% 14.31% 13.58%
Tangible common equity to tangible assets (1) 8.99% 9.08% 8.51% 9.02% 8.39%
  Common equity Tier 1 ratio (CET1) 10.83% 10.25% 9.80% 10.46% 10.22%
  Tier 1 leverage ratio 9.62% 9.05% 8.87% 9.07% 8.78%
  Tier 1 risk-based capital ratio 10.83% 10.25% 9.80% 10.46% 10.22%
  Total risk-based capital ratio 13.61% 13.17% 12.67% 13.62% 13.35%
      
(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) 2019 2019 2019 2019 2018 
($ in thousands)      
Legacy Loan Portfolio - End of Period (1)      
Consumer      
  Credit cards$204,802$195,083$187,919$181,549$204,173 
  Other consumer 191,946 208,643 207,445 213,659 201,297 
Total consumer 396,748 403,726 395,364 395,208 405,470 
Real Estate      
  Construction 1,760,894 1,712,858 1,540,352 1,376,162 1,300,723 
  Single-family residential 1,444,620 1,448,455 1,444,525 1,431,407 1,440,443 
  Other commercial 3,678,908 3,630,708 3,531,273 3,355,109 3,225,287 
Total real estate 6,884,422 6,792,021 6,516,150 6,162,678 5,966,453 
Commercial      
  Commercial 1,909,796 1,894,819 1,871,695 1,801,422 1,774,909 
  Agricultural 163,396 213,753 191,922 147,216 164,514 
Total commercial 2,073,192 2,108,572 2,063,617 1,948,638 1,939,423 
Other 275,714 339,046 287,366 178,026 119,042 
  Total Loans$9,630,076$9,643,365$9,262,497$8,684,550$8,430,388 
       
(1) Excludes all acquired loans.      
       
Investment Securities - End of Period      
Held-to-Maturity      
  U.S. Government agencies$-$-$999$12,996$16,990 
  Mortgage-backed securities 10,796 11,549 12,225 12,847 13,346 
  State and political subdivisions 27,082 28,692 32,236 33,597 256,863 
  Other securities 3,049 1,996 1,995 1,995 1,995 
  Total held-to-maturity 40,927 42,237 47,455 61,435 289,194 
Available-for-Sale      
  U.S.Treasury$449,729$-$-$-$- 
  U.S. Government agencies 194,249 178,139 197,656 161,577 154,301 
  Mortgage-backed securities 1,742,945 1,337,794 1,345,760 1,345,677 1,522,900 
  State and political subdivisions 880,524 681,202 636,558 580,790 314,843 
  FHLB stock 66,285 62,403 66,588 65,220 73,105 
  Other securities 119,606 96,596 95,825 86,847 86,603 
  Total available-for-sale 3,453,338 2,356,134 2,342,387 2,240,111 2,151,752 
  Total investment securities$3,494,265$2,398,371$2,389,842$2,301,546$2,440,946 
  Fair value - HTM investment securities$41,855$43,302$48,640$61,956$290,830 
       
Investment Securities - QTD Average      
Taxable securities$2,099,266$1,712,672$1,793,799$1,880,694$1,815,203 
Tax exempt securities 825,000 681,505 624,898 590,941 551,185 
  Total investment securities - QTD average$2,924,266$2,394,177$2,418,697$2,471,635$2,366,388 
       



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) 2019  2019  2019  2019  2018  
($ in thousands)      
LOANS      
Legacy loans$9,630,076 $9,643,365 $9,262,497 $8,684,550 $8,430,388  
Allowance for loan losses (legacy loans) (67,800) (65,993) (63,067) (59,243) (56,599) 
Legacy loans (net of allowance) 9,562,276  9,577,372  9,199,430  8,625,307  8,373,789  
Loans acquired 4,882,919  3,420,563  3,939,126  3,099,915  3,342,175  
Credit discount (87,291) (60,379) (73,498) (42,416) (49,297) 
Allowance for loan losses (loans acquired) (444) (597) (1,112) (1,312) (95) 
Loans acquired (net of discount and allowance) 4,795,184  3,359,587  3,864,516  3,056,187  3,292,783  
Net loans$14,357,460 $12,936,959 $13,063,946 $11,681,494 $11,666,572  
       
       
Loan Coverage Ratios       
Allowance for loan losses to legacy loans 0.70% 0.68% 0.68% 0.68% 0.67% 
       
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) 1.80% 1.78% 1.89% 1.41% 1.48% 
       
Total allowance and credit coverage (non-GAAP) (1) 1.07% 0.97% 1.04% 0.87% 0.90% 
       
(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) 2019  2019  2019  2019  2018 
($ in thousands)     
Allowance for Loan Losses (Legacy Loans)     
Balance, beginning of quarter$65,993 $63,067 $59,243 $56,599 $55,358 
Loans charged off     
  Credit cards 1,287  1,117  1,039  1,142  1,121 
  Other consumer 1,397  1,059  905  1,533  2,894 
  Real estate 767  907  271  374  337 
  Commercial 459  17,729  1,867  1,968  3,480 
  Total loans charged off 3,910  20,812  4,082  5,017  7,832 
      
Recoveries of loans previously charged off     
  Credit cards 287  223  271  240  227 
  Other consumer 304  1,422  331  300  154 
  Real estate 146  55  153  142  367 
  Commercial 77  65  72  158  167 
  Total recoveries 814  1,765  827  840  915 
  Net loans charged off 3,096  19,047  3,255  4,177  6,917 
Provision for loan losses 4,903  21,973  7,079  6,821  8,158 
Balance, end of quarter$67,800 $65,993 $63,067 $59,243 $56,599 
      
Non-performing assets (1) (2)     
Non-performing loans     
  Nonaccrual loans$70,836 $72,721 $61,956 $60,925 $34,201 
  Loans past due 90 days or more 259  155  267  281  224 
  Total non-performing loans 71,095  72,876  62,223  61,206  34,425 
Other non-performing assets     
Foreclosed assets and other real estate owned (2) 19,121  19,576  24,761  18,952  25,565 
  Other non-performing assets 1,964  540  613  505  553 
  Total other non-performing assets 21,085  20,116  25,374  19,457  26,118 
  Total non-performing assets$92,180 $92,992 $87,597 $80,663 $60,543 
Performing TDRs (troubled debt restructurings)$4,411 $6,519 $6,246 $6,297 $6,369 
      
Ratios (1) (2)     
Allowance for loan losses to total loans 0.70% 0.68% 0.68% 0.68% 0.67%
Allowance for loan losses to non-performing loans 95% 91% 101% 97% 164%
Non-performing loans to total loans 0.74% 0.76% 0.67% 0.70% 0.41%
Non-performing assets (including performing TDRs)