Simmons First Announces 27% Increase in Fourth Quarter Earnings

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| Source: Simmons First National Corporation

PINE BLUFF, Ark., Jan. 24, 2013 (GLOBE NEWSWIRE) -- Simmons First National Corporation (Nasdaq:SFNC) today announced fourth quarter 2012 net income of $8.0 million, a 27.4% increase compared to $6.3 million for the same quarter in 2011. Diluted earnings per share were $0.48, an $0.11, or 29.8% increase over the same period in 2011. For the year ended December 31, 2012, net income was $27.7 million, or $1.64 diluted earnings per share, compared to $1.47 per share for 2011, an increase of $0.17, or 11.6%.

On October 19, 2012, the Company announced that its wholly-owned bank subsidiary, Simmons First National Bank, entered into a purchase and assumption agreement with loss share arrangements with the FDIC to purchase $180 million in assets and assume substantially all of the deposits and other liabilities of Excel Bank of Sedalia, Missouri. The Company recognized a pre-tax bargain purchase gain of $2.3 million on this transaction and incurred pre-tax merger related costs of $1.1 million. After taxes, the combined non-recurring items from the transactions contributed $735,000 to net income, or $0.04 to diluted earnings per share.

"There are many positives with our earnings announcement. Personally I believe the 27% net income growth is a major accomplishment. Even more significant is the way it was accomplished through the execution of our strategic plan, which resulted in the deployment of our excess capital in two strategic acquisitions, continued improvement in our asset quality numbers that were already strong and new initiatives that were introduced in all eight of our banks that resulted in good growth in our loan portfolios and customer relationships," commented J. Thomas May, Chairman and CEO.

Loans

Total loans, including those acquired, were $1.9 billion at December 31, 2012, an increase of $184.3 million, or 10.6%, compared to the same period in 2011. Loans acquired in FDIC-assisted acquisitions grew $135.6 million, net of discounts, and legacy loans (excluding acquired loans) grew $48.7 million, or 3.1%. "This was the second consecutive quarter of organic loan growth. While not enough to call a trend, we believe it is very positive in that the growth is coming throughout our markets in Arkansas, Kansas and Missouri. Needless to say, the economy remains in a slow recovery, which makes this growth even more significant," added May.

Deposits

At December 31, 2012, total deposits were $2.9 billion, an increase of $224 million, or 8.4%, compared to the same period in 2011. Deposits acquired in the Excel acquisition were $117 million at quarter end. Total non-time deposits totaled $2.0 billion, or 70% of total deposits.

Net Interest Income

The Company's net interest income for the fourth quarter of 2012 was $30.6 million, an increase of $3.3 million, or 12.1%, from the same period of 2011. Net interest margin was 3.99% for the quarter ended December 31, 2012. Included in interest income for the period is the additional yield accretion recognized as a result of updated estimates of the cash flows of the loan pools acquired in the Company's 2010 FDIC-assisted transactions. Each quarter, the Company estimates the cash flows expected to be collected from the acquired loan pools, and adjustments may or may not be required. The cash flows estimate has increased based on payment histories and reduced loss expectations of the loan pools. This resulted in increased interest income that is spread on a level-yield basis over the remaining expected lives of the loan pools. The increases in expected cash flows also reduce the amount of expected reimbursements under the loss sharing agreements with the FDIC, which are recorded as indemnification assets. The impact of the adjustments on the Company's financial results for the current reporting period is shown below:

 

  Three Months Ended Year Ended
(In thousands) December 31, 2012 December 31, 2012
  2012 2011 2012 2011
Impact on net interest income $ 2,647 $ 1,124 $ 11,751 $ 1,124
Non-interest income (2,510) (978) (10,755) (978)
Net impact to pre-tax income $ 137 $ 146 $ 997 $ 146

Because these adjustments will be recognized over the remaining lives of the loan pools and the remainder of the loss sharing agreements, respectively, they will impact future periods as well. The current estimate of the remaining accretable yield adjustment that will positively impact interest income is $19.2 million and the remaining adjustment to the indemnification assets that will reduce non-interest income is $16.8 million. Of the remaining adjustments, we expect to recognize $9.6 million of interest income and a $9.1 million reduction of non-interest income, for a net addition to pre-tax income of approximately $540,000 during 2013. The accretable yield adjustments recorded in future periods will change as the Company continues to evaluate expected cash flows from the acquired loan pools.

Non-Interest Income

Non-interest income for the fourth quarter was $14.8 million, compared to $12.8 million for the fourth quarter of 2011. "There was a $1.5 million incremental decrease in non-interest income compared to the fourth quarter last year due to reductions of the indemnification assets resulting from increased cash flows expected to be collected from the FDIC covered loan portfolios," reiterated May. "Excluding the indemnification asset adjustment and a non-recurring $2.3 million bargain purchase gain on the Excel Bank acquisition, non-interest income increased $1.1 million, or 8.9%."

Non-Interest Expense

Non-interest expense for the fourth quarter of 2012 was $32.2 million, an increase of $3.7 million compared to the same period in 2011. "Included in the quarter were $1.1 million in merger related expenses and $2.4 million in normal operating expenses attributable to our FDIC-assisted acquisitions. Normalized for these acquisition related items, non-interest expense for the quarter increased by only 1%. Obviously, we continue to have good expense control as a result of the implementation of our efficiency initiatives," added May.

Asset Quality

Beginning in 2010, the Company has acquired loans and foreclosed real estate ("OREO") through FDIC-assisted acquisitions. Through the loss share provisions of the purchase and assumption agreements, the FDIC agreed to reimburse the Company for 80% of the losses incurred on the disposition of covered loans and OREO. The acquired loans and OREO and any related FDIC loss share indemnification asset were presented in the Company's financial reports with a carrying value equal to the discounted net present value of expected future proceeds. At December 31, 2012, acquired loans covered by loss share were carried at $211 million, OREO covered by loss share was carried at $28 million and the FDIC loss share indemnification asset was carried at $75 million. Acquired loans and OREO not covered by loss share were carried at $83 million and $12 million, respectively. As a result of  using the discounted net present value method of valuing these assets, and due to the significant protection against possible losses provided by the FDIC loss share indemnification, all acquired assets, with the exception of OREO not covered by loss share, are excluded from the computations of the asset quality ratios for the legacy loan portfolio, except for their inclusion in total assets.

The Company's allowance for loan losses was $27.9 million at December 31, 2012, or 1.71% of total loans and 232% of non-performing loans. Non-performing loans as a percent of total loans were 0.74% as of December 31, 2012 compared to 0.73% as of September 30, 2012. "Included in our non-performing assets was $11.8 million, net of a credit mark, of non-covered OREO we acquired in our two recent FDIC-assisted transactions. Normalizing for the acquired OREO, our legacy non-performing assets decreased $1.2 million for the previous quarter. Our legacy non-performing assets as a percent of total assets of 0.96% as of December 31, 2012 continues to compare favorably to the industry and our peer group," commented May. For the fourth quarter, the annualized net charge-off ratio, excluding credit cards, was 0.24%, and the annualized credit card charge-off ratio was 1.54%.

Capital

At December 31, 2012, stockholders' equity was $406 million, book value per share was $24.55 and tangible book value per share was $20.66. The Company's ratio of stockholders' equity to total assets was 11.5% and its ratio of tangible common equity to tangible assets was 9.9%, as of December 31, 2012.

"Our exceptional level of capital puts us in the 82nd percentile of our peer group and allows us to actively pursue the right opportunities that meet our strategic plan regarding mergers and acquisitions," continued May. As of December 31, 2012, the Company's regulatory capital ratios remain significantly higher than regulatory "well capitalized" guidelines:

  "Well Capitalized"  SFNC
Tier 1 Leverage Ratio 5.00% 10.81%
Tier 1 Risk-Based Capital Ratio 6.00% 19.08%
Total Risk-Based Capital Ratio 10.00% 20.34%

Stock Repurchase Program

During 2012, the Company repurchased approximately 726,000 shares at an average price of $24.24. The Company plans to continue to allocate its earnings, less dividends, to its stock repurchase program.

Simmons First National Corporation

Simmons First National Corporation is an eight bank financial holding company with community banks in Pine Bluff, Lake Village, Jonesboro, Rogers, Searcy, Russellville, El Dorado and Hot Springs, Arkansas. The Company's eight banks conduct financial operations from 96 offices, of which 92 are financial centers, in 55 communities in Arkansas, Missouri and Kansas, including its recently acquired branches in Missouri. The Company's common stock trades on the NASDAQ Global Select Market under the symbol "SFNC".

The Simmons First National Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4819

Conference Call

Management will conduct a conference call to review this information beginning at 3:00 p.m. Central Time on Thursday, January 24, 2013. Interested persons can listen to this call by dialing 1-888-438-5524 (United States and Canada only) and asking for the Simmons First National Corporation conference call. A replay of the call will be available through 5:00 p.m. Central Time on January 30, 2013, by dialing 1-888-203-1112. The passcode for the replay is 1242917. In addition, the call will be available live or in recorded version on the Company's website at www.simmonsfirst.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 exclude the effects of the amortization of intangibles and include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant 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. 

Forward Looking Statements

Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements of this type speak only as of the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors, including, but not limited to, economic conditions, credit quality, interest rates, loan demand and changes in the assumptions used in making the forward-looking statements, 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 filing with the Securities and Exchange Commission.

 

           
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)   2012   2012   2012   2012   2011 
(in thousands)          
ASSETS           
Cash and non-interest bearing balances due from banks   $ 47,470  $ 40,356  $ 29,708  $ 34,314  $ 35,087
Interest bearing balances due from banks   467,984  440,524  515,874  642,929  535,119
Federal funds sold   22,343  7,571  --   750  -- 
Cash and cash equivalents   537,797  488,451  545,582  677,993  570,206
Investment securities - held-to-maturity   496,141  510,630  525,522  481,314  525,444
Investment securities - available-for-sale   191,342  205,051  166,966  176,466  172,212
Mortgage loans held for sale   25,367  23,980  15,495  24,351  22,976
Assets held in trading accounts   6,224  7,002  7,812  7,708  7,541
Loans:           
Not covered by FDIC loss share agreements   1,628,513  1,623,401  1,614,736  1,543,653  1,579,769
Acquired, not covered by FDIC loss share agreements           
(net of discounts)   82,764  73,023  --   --   -- 
Covered by FDIC loss share agreements (net of discounts)   210,842  163,657  114,189  129,735  158,075
Allowance for loan losses   (27,882)  (28,145)  (28,397)  (28,325)  (30,108)
Net loans   1,894,237  1,831,936  1,700,528  1,645,063  1,707,736
FDIC indemnification asset   75,286  59,547  35,038  39,978  47,683
Premises and equipment   87,557  85,969  85,171  85,784  86,486
Foreclosed assets not covered by FDIC loss share agreements   33,352  29,665  23,947  24,542  22,887
Foreclosed assets covered by FDIC loss share agreements   27,620  26,466  11,252  11,705  11,685
Interest receivable   14,530  15,253  12,975  13,319  15,126
Bank owned life insurance   52,066  51,681  51,326  50,934  50,579
Goodwill   60,605  60,605  60,605  60,605  60,605
Core deposit premiums   3,760  2,549  1,431  1,505  1,579
Other assets   21,605  16,195  13,494  18,786  17,384
Total assets   $ 3,527,489  $ 3,414,980  $ 3,257,144  $ 3,320,053  $ 3,320,129
           
LIABILITIES AND STOCKHOLDERS' EQUITY           
Deposits:           
Non-interest bearing transaction accounts   $ 576,655  $ 543,380  $ 517,854  $ 521,202  $ 532,259
Interest bearing transaction accounts and savings deposits   1,421,137  1,343,784  1,290,954  1,282,763  1,239,504
Time deposits less than $100,000   505,773  521,259  467,503  485,134  499,809
Time deposits greater than $100,000   370,598  386,872  352,973  365,478  378,825
Total deposits   2,874,163  2,795,295  2,629,284  2,654,577  2,650,397
Federal funds purchased and securities sold under agreements to repurchase   104,078  64,829  70,220  106,224  114,766
 Other borrowings   89,441  88,852  90,866  90,312  90,170
 Subordinated debentures   20,620  20,620  30,930  30,930  30,930
 Accrued interest and other liabilities   33,125  41,136  28,431  28,698  25,955
Total liabilities   3,121,427  3,010,732  2,849,731  2,910,741  2,912,218
           
Stockholders' equity:           
Common stock   165  167  170  172  172
Surplus   96,587  99,156  105,825  110,976  112,436
Undivided profits   309,053  304,343  300,917  297,776  294,864
Accumulated other comprehensive income           
Unrealized appreciation on AFS securities   257  582  501  388  439
Total stockholders' equity   406,062  404,248  407,413  409,312  407,911
Total liabilities and stockholders' equity   $ 3,527,489  $ 3,414,980  $ 3,257,144  $ 3,320,053  $ 3,320,129
           
 
           
           
Simmons First National Corporation           SFNC 
Consolidated Average Quarter-to-Date Balance Sheets         
For the Quarters Ended   Dec 31   Sep 30   Jun 30   Mar 31   Dec 31 
(Unaudited)   2012   2012   2012   2012   2011 
(in thousands)          
ASSETS           
Cash and non-interest bearing balances due from banks   $ 43,691  $ 36,603  $ 35,899  $ 37,469  $ 35,132
Interest bearing balances due from banks   490,532  479,435  550,512  576,416  546,478
Federal funds sold   8,931  2,850  363  281  99
Cash and cash equivalents   543,154  518,888  586,774  614,166  581,709
Investment securities - held-to-maturity   511,203  496,102  508,293  496,002  501,812
Investment securities - available-for-sale   194,815  178,247  172,539  172,523  173,360
Mortgage loans held for sale   17,804  19,334  17,623  17,076  20,035
Assets held in trading accounts   7,701  7,780  7,831  6,845  7,375
Loans:           
Not covered by FDIC loss share agreements   1,633,710  1,637,437  1,579,166  1,550,341  1,590,584
Acquired, not covered by FDIC loss share agreements           
(net of discounts)   82,764  12,700  --   --   -- 
Covered by FDIC loss share agreements (net of discounts)   218,135  117,809  120,695  141,563  168,506
Allowance for loan losses   (28,660)  (29,228)  (29,339)  (30,896)  (29,730)
Net loans   1,905,949  1,738,718  1,670,522  1,661,008  1,729,360
FDIC indemnification asset   66,994  39,476  38,563  44,845  50,180
Premises and equipment   87,784  85,173  85,629  86,187  86,881
Foreclosed assets not covered by FDIC loss share agreements   34,883  24,945  24,322  23,279  22,702
Foreclosed assets covered by FDIC loss share agreements   29,779  14,521  12,079  13,048  12,409
Interest receivable   15,154  13,484  12,877  13,847  16,071
Bank owned life insurance   51,864  51,507  51,133  50,761  50,362
Goodwill   60,605  60,605  60,605  60,605  60,605
Core deposit premiums   2,955  1,614  1,467  1,541  1,685
Other assets   3,574  14,991  15,114  17,952  18,562
Total assets   $ 3,534,218  $ 3,265,385  $ 3,265,371  $ 3,279,685  $ 3,333,108
           
LIABILITIES AND STOCKHOLDERS' EQUITY           
Deposits:           
Non-interest bearing transaction accounts   $ 570,800  $ 504,923  $ 502,884  $ 494,366  $ 535,663
Interest bearing transaction accounts and savings deposits   1,405,956  1,291,141  1,282,616  1,252,972  1,228,495
Time deposits less than $100,000   523,050  477,275  477,588  492,354  508,847
Time deposits greater than $100,000   380,843  361,504  360,233  371,168  388,470
Total deposits   2,880,649  2,634,843  2,623,321  2,610,860  2,661,475
Federal funds purchased and securities sold under agreements to repurchase   101,815  72,381  82,738  108,841  107,750
Other borrowings   89,617  90,307  89,606  89,920  91,552
Subordinated debentures   20,620  30,594  30,930  30,930  30,930
Accrued interest and other liabilities   33,227  30,219  29,077  27,417  31,303
Total liabilities   3,125,928  2,858,344  2,855,672  2,867,968  2,923,010
Total stockholders' equity   408,290  407,041  409,699  411,717  410,098
Total liabilities and stockholders' equity   $ 3,534,218  $ 3,265,385  $ 3,265,371  $ 3,279,685  $ 3,333,108
           
 
           
           
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)   2012   2012   2012   2012   2011 
(in thousands, except per share data)          
INTEREST INCOME           
Loans not covered by loss share agreements   $ 23,912  $ 23,192  $ 22,358  $ 22,272  $ 23,370
Loans covered by FDIC loss share agreements   6,759  5,041  4,994  5,973  4,513
Federal funds sold   4  2  1  --   1
Investment securities   3,106  3,027  3,313  3,275  3,568
Mortgage loans held for sale   149  171  164  153  198
Assets held in trading accounts   11  12  13  12  7
Interest bearing balances due from banks   301  267  349  303  324
TOTAL INTEREST INCOME   34,242  31,712  31,192  31,988  31,981
INTEREST EXPENSE           
Time deposits   1,807  1,863  2,004  2,269  2,577
Other deposits   652  658  676  696  779
Federal funds purchased and securities sold under agreements to repurchase   65  69  77  99  118
Other borrowings   948  792  799  815  826
Subordinated debentures   163  389  385  391  384
TOTAL INTEREST EXPENSE   3,635  3,771  3,941  4,270  4,684
NET INTEREST INCOME   30,607  27,941  27,251  27,718  27,297
Provision for loan losses   1,295  1,299  775  771  2,831
NET INTEREST INCOME AFTER PROVISION           
FOR LOAN LOSSES   29,312  26,642  26,476  26,947  24,466
NON-INTEREST INCOME           
Trust income   1,484  1,440  1,240  1,309  1,416
Service charges on deposit accounts   4,645  4,368  3,930  3,865  4,289
Other service charges and fees   747  684  738  792  699
Mortgage lending income   1,553  1,705  1,445  1,294  1,464
Investment banking income   337  560  442  699  294
Credit card fees   4,655  4,104  4,207  4,079  4,318
Bank owned life insurance income   385  355  368  355  403
Gain on sale of securities   2  --   --   --   -- 
Gain on FDIC-assisted transactions   2,291  1,120  --   --   -- 
Net gain (loss) on assets covered by FDIC loss share agreements   (2,286)  (2,689)  (2,153)  (2,665)  (826)
Other income   930  165  876  995  786
TOTAL NON-INTEREST INCOME   14,743  11,812  11,093  10,723  12,843
NON-INTEREST EXPENSE           
Salaries and employee benefits   17,674  15,911  16,590  16,824  15,973
Occupancy expense, net   2,311  2,182  2,029  2,081  1,930
Furniture and equipment expense   1,835  1,835  1,608  1,604  1,721
Other real estate and foreclosure expense   311  280  194  207  146
Deposit insurance   614  444  457  571  295
Merger related costs   1,081  815  --   --   -- 
Other operating expenses   8,340  7,219  7,366  7,350  8,381
TOTAL NON-INTEREST EXPENSE   32,166  28,686  28,244  28,637  28,446
NET INCOME BEFORE INCOME TAXES   11,889  9,768  9,325  9,033  8,863
Provision for income taxes   3,856  3,008  2,789  2,678  2,558
NET INCOME   $ 8,033  $ 6,760  $ 6,536  $ 6,355  $ 6,305
BASIC EARNINGS PER SHARE   $ 0.48  $ 0.41  $ 0.38  $ 0.37  $ 0.37
DILUTED EARNINGS PER SHARE   $ 0.48  $ 0.41  $ 0.38  $ 0.37  $ 0.37
           
  
           
           
Simmons First National Corporation           SFNC 
Consolidated Statements of Income - Year-to-Date           
For the Quarters Ended  Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
(Unaudited)   2012   2012   2012   2012   2011 
(in thousands, except per share data)          
INTEREST INCOME           
Loans not covered by loss share agreements   $ 91,734  $ 67,822  $ 44,630  $ 22,272  $ 95,713
Loans covered by FDIC loss share agreements   22,767  16,009  10,967  5,973  17,118
Federal funds sold   7  4  1  --   6
Investment securities   12,721  9,615  6,588  3,275  14,583
Mortgage loans held for sale   637  487  317  153  503
Assets held in trading accounts   48  37  25  12  33
Interest bearing balances due from banks   1,220  919  652  303  1,100
TOTAL INTEREST INCOME   129,134  94,893  63,180  31,988  129,056
INTEREST EXPENSE           
Time deposits   7,943  6,136  4,273  2,269  11,314
Other deposits   2,682  2,029  1,372  696  3,611
Federal funds purchased and securities sold under agreements to repurchase   310  248  176  99  450
Other borrowings   3,354  2,406  1,613  815  3,512
Subordinated debentures   1,328  1,166  777  391  1,509
TOTAL INTEREST EXPENSE   15,617  11,985  8,211  4,270  20,396
NET INTEREST INCOME   113,517  82,908  54,969  27,718  108,660
Provision for loan losses   4,140  2,846  1,546  771  11,676
NET INTEREST INCOME AFTER PROVISION           
FOR LOAN LOSSES   109,377  80,062  53,423  26,947  96,984
NON-INTEREST INCOME           
Trust income   5,473  3,988  2,549  1,309  5,375
Service charges on deposit accounts   16,808  12,163  7,795  3,865  16,808
Other service charges and fees   2,961  2,211  1,530  792  2,980
Mortgage lending income   5,997  4,441  2,739  1,294  4,188
Investment banking income   2,038  1,700  1,141  699  1,478
Credit card fees   17,045  12,390  8,286  4,079  16,828
Bank owned life insurance income   1,463  1,078  723  355  1,481
Gain on sale of securities   2  --   --   --   -- 
Gain on FDIC-assisted transactions   3,411  1,120  --   --   -- 
Net gain (loss) on assets covered by FDIC loss share agreements   (9,793)  (7,507)  (4,818)  (2,665)  154
Other income   2,966  2,037  1,871  995  4,173
TOTAL NON-INTEREST INCOME   48,371  33,621  21,816  10,723  53,465
NON-INTEREST EXPENSE           
Salaries and employee benefits   66,999  49,323  33,414  16,824  65,058
Occupancy expense, net   8,603  6,291  4,110  2,081  8,443
Furniture and equipment expense   6,882  5,047  3,212  1,604  6,633
Other real estate and foreclosure expense   992  681  401  207  678
Deposit insurance   2,086  1,472  1,028  571  2,387
Merger related costs   1,896  815  --   --   357
Other operating expenses   30,275  21,928  14,716  7,350  31,094
TOTAL NON-INTEREST EXPENSE   117,733  85,557  56,881  28,637  114,650
NET INCOME BEFORE INCOME TAXES   40,015  28,126  18,358  9,033  35,799
Provision for income taxes   12,331  8,475  5,467  2,678  10,425
NET INCOME   $ 27,684  $ 19,651  $ 12,891  $ 6,355  $ 25,374
BASIC EARNINGS PER SHARE   $ 1.64  $ 1.16  $ 0.75  $ 0.37  $ 1.47
DILUTED EARNINGS PER SHARE   $ 1.64  $ 1.16  $ 0.75  $ 0.37  $ 1.47
           
 
         
         
Simmons First National Corporation         SFNC 
Consolidated Risk-Based Capital           
For the Quarters Ended   Dec 31   Sep 30   Jun 30   Mar 31   Dec 31 
(Unaudited)   2012   2012   2012   2012   2011 
(in thousands)          
Tier 1 capital          
Stockholders' equity   $ 406,062  $ 404,248  $ 407,413  $ 409,312  $ 407,911
Trust preferred securities, net allowable   20,000  20,000  30,000  30,000  30,000
Disallowed intangible assets, net of deferred tax   (48,966)  (48,053)  (47,235)  (47,607)  (47,889)
Unrealized gain on AFS securities   (257)  (582)  (501)  (388)  (439)
           
Total Tier 1 capital   376,839  375,613  389,677  391,317  389,583
           
Tier 2 capital          
Qualifying unrealized gain on AFS equity securities   19  14  15  14  9
Qualifying allowance for loan losses   24,743  24,395  22,910  22,096  22,682
           
Total Tier 2 capital   24,762  24,409  22,925  22,110  22,691
           
Total risk-based capital   $ 401,601  $ 400,022  $ 412,602  $ 413,427  $ 412,274
           
Risk weighted assets   $ 1,974,800  $ 1,946,344  $ 1,825,808  $ 1,759,932  $ 1,805,585
           
Adjusted average assets for leverage ratio   $ 3,484,504  $ 3,216,488  $ 3,217,291  $ 3,231,257  $ 3,284,379
           
Ratios at end of quarter          
Equity to assets  11.51% 11.84% 12.51% 12.33% 12.29%
Tangible common equity to tangible assets  9.87% 10.18% 10.81% 10.66% 10.61%
Tier 1 leverage ratio  10.81% 11.68% 12.11% 12.11% 11.86%
Tier 1 risk-based capital ratio  19.08% 19.30% 21.34% 22.23% 21.58%
Total risk-based capital ratio  20.34% 20.55% 22.60% 23.49% 22.83%
           
  
           
           
 Simmons First National Corporation           SFNC 
 Consolidated Loans and Investments           
 For the Quarters Ended   Dec 31   Sep 30   Jun 30   Mar 31   Dec 31 
 (Unaudited)   2012   2012   2012   2012   2011 
(in thousands)          
Legacy Loan Portfolio - End of Period (1)          
 Consumer           
 Credit cards   $ 185,536  $ 175,760  $ 176,325  $ 175,013  $ 189,970
 Student loans   34,145  36,441  39,823  44,059  47,419
 Other consumer   105,319  107,604  107,284  110,001  109,211
 Total consumer   325,000  319,805  323,432  329,073  346,600
 Real Estate           
 Construction   138,132  128,423  117,235  109,979  109,825
 Single-family residential   356,907  355,976  355,978  349,009  355,094
 Other commercial   568,166  546,224  550,418  537,807  536,372
 Total real estate   1,063,205  1,030,623  1,023,631  996,795  1,001,291
 Commercial           
 Commercial   141,336  138,719  140,868  144,772  141,422
 Agricultural   93,805  130,727  122,245  69,598  85,728
 Total commercial   235,141  269,446  263,113  214,370  227,150
 Other   5,167  3,527  4,560  3,415  4,728
 Total Loans   $ 1,628,513  $ 1,623,401  $ 1,614,736  $ 1,543,653  $ 1,579,769
           
 (1) Excludes all acquired loans, including those covered by FDIC loss share agreements.       
           
Investment Securities - End of Period          
 Held-to-Maturity           
 U.S. Treasury   $ --   $ --   $ --   $ 4,000  $ 4,000
 U.S. Government agencies   288,098  303,640  315,493  267,991  308,779
 Mortgage-backed securities   49  51  56  59  62
 State and political subdivisions   207,374  206,319  209,043  208,334  211,673
 Other securities   620  620  930  930  930
 Total held-to-maturity   496,141  510,630  525,522  481,314  525,444
 Available-for-Sale           
 U.S. Government agencies   152,481  164,467  148,837  157,631  153,627
 Mortgage-backed securities   20,634  24,333  2,493  2,528  2,557
 State and political subdivisions   2,988  --   --   --   -- 
 FHLB stock   5,498  5,788  5,578  6,241  6,237
 Other securities   9,741  10,463  10,058  10,066  9,791
 Total available-for-sale   191,342  205,051  166,966  176,466  172,212
 Total investment securities   $ 687,483  $ 715,681  $ 692,488  $ 657,780  $ 697,656
 Fair value - HTM investment securities   $ 500,578  $ 516,419  $ 531,499  $ 486,743  $ 532,206
           
Investment Securities - QTD Average          
 Taxable securities   $ 495,917  $ 467,988  $ 471,826  $ 459,164  $ 466,369
 Tax exempt securities   210,101  206,361  209,006  209,361  208,803
 Total investment securities - QTD average   $ 706,018  $ 674,349  $ 680,832  $ 668,525  $ 675,172
           
  
           
           
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)   2012   2012   2012   2012   2011 
(in thousands)          
Allowance for Loan Losses          
Balance, beginning of quarter   $ 28,145  $ 28,397  $ 28,325  $ 30,108  $ 29,151
Loans charged off           
Credit cards   884  806  829  997  1,262
Other consumer   362  358  252  226  530
Real estate   705  773  78  2,539  885
Commercial   163  86  165  129  226
Total loans charged off   2,114  2,023  1,324  3,891  2,903
           
Recoveries of loans previously charged off           
Credit cards   194  242  212  210  244
Other consumer   177  107  135  156  100
Real estate   144  61  248  930  436
Commercial   41  62  26  41  249
Total recoveries   556  472  621  1,337  1,029
Net loans charged off   1,558  1,551  703  2,554  1,874
Provision for loan losses   1,295  1,299  775  771  2,831
Balance, end of quarter   $ 27,882  $ 28,145  $ 28,397  $ 28,325  $ 30,108
           
Non-performing assets (1) (2)          
Non-performing loans           
Nonaccrual loans           
Real estate   $ 7,135  $ 6,197  $ 6,851  $ 6,898  $ 10,315
Commercial   618  894  676  942  1,253
Consumer   1,370  1,389  1,462  1,299  1,339
Total nonaccrual loans   9,123  8,480  8,989  9,139  12,907
Loans past due 90 days or more           
Government guaranteed student loans   2,234  2,324  3,275  3,434  2,483
Other loans   681  1,001  509  606  785
Total loans past due 90 days or more   2,915  3,325  3,784  4,040  3,268
Total non-performing loans   12,038  11,805  12,773  13,179  16,175
Other non-performing assets           
Foreclosed assets held for sale   21,556  23,126  23,947  24,542  22,887
Acquired foreclosed assets held for sale, not covered  by FDIC loss share agreements   11,796  6,539  --   --   -- 
 Other non-performing assets   221  60  --   1  -- 
Total other non-performing assets   33,573  29,725  23,947  24,543  22,887
Total non-performing assets   $ 45,611  $ 41,530  $ 36,720  $ 37,722  $ 39,062
Performing TDRs (troubled debt restructurings)   $ 11,015  $ 10,995  $ 11,492  $ 11,531  $ 11,391
           
Ratios (1) (2)          
Allowance for loan losses to total loans  1.71% 1.73% 1.76% 1.83% 1.91%
Allowance for loan losses to non-performing loans  232% 238% 222% 215% 186%
Non-performing loans to total loans  0.74% 0.73% 0.79% 0.85% 1.02%
Non-performing assets (including performing TDRs)  to total assets  1.61% 1.54% 1.48% 1.48% 1.52%
Non-performing assets to total assets  1.29% 1.22% 1.13% 1.14% 1.18%
Non-performing assets to total assets (excluding Gov't guaranteed student loans)  1.23% 1.15% 1.03% 1.03% 1.10%
Annualized net charge offs to total loans  0.38% 0.38% 0.18% 0.66% 0.47%
Annualized net credit card charge offs to total credit card loans  1.54% 1.27% 1.42% 1.75% 2.20%
Annualized net charge offs to total loans (excluding credit cards)  0.24% 0.27% 0.02% 0.52% 0.24%
Past due loans >30 days (excluding nonaccrual)  0.63% 0.75% 0.68% 0.83% 0.82%
Past due loans >30 days (excluding nonaccrual) (excluding Gov't guaranteed student loans)  0.44% 0.48% 0.42% 0.47% 0.56%
           
 (1) Excludes all acquired loans, including those covered by FDIC loss share agreements, except for their inclusion in total assets. 
 (2) Excludes acquired foreclosed assets covered by FDIC loss share agreements, except for their inclusion in total assets.   
 
 
         
         
 Simmons First National Corporation         SFNC 
 Consolidated - Net Interest Income Analysis         
 For the Quarters Ended   Dec 31   Sep 30   Jun 30   Mar 31   Dec 31 
 (Unaudited)   2012   2012   2012   2012   2011 
           
ASSETS          
           
Earning Assets          
 Interest bearing balances due from banks 0.24% 0.22% 0.25% 0.21% 0.24%
 Investment securities 2.39% 2.46% 2.66% 2.69% 2.81%
 Mortgage loans held for sale 3.33% 3.52% 3.74% 3.60% 3.92%
 Assets held in trading accounts 0.57% 0.61% 0.67% 0.71% 0.38%
 Loans, including covered loans* 6.59% 6.40% 6.47% 6.72% 6.29%
 Total interest earning assets 4.45% 4.45% 4.41% 4.51% 4.38%
           
           
LIABILITIES          
           
Interest bearing liabilities          
 Interest bearing transaction and savings accounts 0.18% 0.20% 0.21% 0.22% 0.25%
 Time deposits 0.80% 0.88% 0.96% 1.06% 1.14%
 Total interest bearing deposits 0.42% 0.47% 0.51% 0.56% 0.63%
Federal funds purchased and securities sold under agreement to repurchase 0.25% 0.38% 0.37% 0.37% 0.43%
 Other borrowings 4.21% 3.49% 3.59% 3.65% 3.58%
 Subordinated debentures 3.14% 5.06% 5.01% 5.08% 4.93%
 Total interest bearing liabilities 0.57% 0.65% 0.68% 0.73% 0.79%
           
NET INTEREST MARGIN/SPREAD          
           
 Net interest spread 3.88% 3.80% 3.73% 3.78% 3.59%
 Net interest margin - quarter-to-date 3.99% 3.94% 3.87% 3.93% 3.76%
 Net interest margin - year-to-date 3.93% 3.91% 3.90% 3.93% 3.85%
           
* Covered loans are loans covered by FDIC loss share agreements.      
           
 
         
         
Simmons First National Corporation         SFNC 
Consolidated - Selected Financial Data           
For the Quarters Ended   Dec 31   Sep 30   Jun 30   Mar 31   Dec 31 
(Unaudited)   2012   2012   2012   2012   2011 
(in thousands, except share data)          
QUARTER-TO-DATE          
Diluted earnings per share   $ 0.48  $ 0.41  $ 0.38  $ 0.37  $ 0.37
Core earnings (excludes nonrecurring items) (non-GAAP)   7,404  6,575  6,536  6,355  6,305
Diluted core earnings per share (non-GAAP)   0.44  0.40  0.38  0.37  0.37
Cash dividends declared per common share   0.20  0.20  0.20  0.20  0.19
Cash dividends declared - amount   3,323  3,334  3,395  3,444  3,271
Return on average stockholders' equity  7.83% 6.61% 6.42% 6.21% 6.10%
Return on tangible equity  9.36% 7.85% 7.61% 7.36% 7.34%
Return on average assets  0.90% 0.82% 0.81% 0.78% 0.75%
Net interest margin (FTE)  3.99% 3.94% 3.87% 3.93% 3.76%
FTE adjustment - investments   1,134  1,138  1,196  1,192  1,219
FTE adjustment - loans   11  11  12  11  12
Amortization of intangibles   126  74  74  74  214
Amortization of intangibles, net of taxes   77  45  45  45  130
Average shares outstanding   16,624,637  16,756,589  17,044,160  17,215,027  17,250,718
Average earning assets   3,165,595  2,938,994  2,957,022  2,961,047  3,008,249
Average interest bearing liabilities   2,521,901  2,323,202  2,323,711  2,346,185  2,356,044
           
YEAR-TO-DATE          
Diluted earnings per share   $ 1.64  $ 1.16  $ 0.75  $ 0.37  $ 1.47
Core earnings (excludes nonrecurring items) (non-GAAP)   26,870  19,466  12,891  6,355  24,988
Diluted core earnings per share (non-GAAP)   1.59  1.15  0.75  0.37  1.45
Cash dividends declared per common share   0.80  0.60  0.40  0.20  0.76
Cash dividends declared - amount   13,496  10,173  6,839  3,444  13,156
Return on average stockholders' equity  6.77% 6.41% 6.31% 6.21% 6.25%
Return on tangible equity  8.05% 7.61% 7.49% 7.36% 7.54%
Return on average assets  0.83% 0.80% 0.79% 0.78% 0.77%
Net interest margin (FTE)  3.93% 3.91% 3.90% 3.93% 3.85%
FTE adjustment - investments   4,660  3,526  2,388  1,192  4,920
FTE adjustment - loans   45  34  23  11  50
Amortization of intangibles   348  222  148  74  884
Amortization of intangibles, net of taxes   212  135  90  45  537
Average shares outstanding   16,908,904  17,004,351  17,129,593  17,215,027  17,309,488
Average diluted shares outstanding   16,911,363  17,007,623  17,134,232  17,223,085  17,317,850
Average earning assets   3,008,840  2,952,324  2,959,034  2,961,047  2,954,285
Average interest bearing liabilities   2,378,748  2,331,032  2,334,948  2,346,185  2,362,028
           
END OF PERIOD          
Book value per share   $ 24.55  $ 24.26  $ 24.03  $ 23.82  $ 23.70
Tangible book value per share   20.66  20.47  20.37  20.21  20.09
Shares outstanding   16,542,778  16,660,278  16,956,991  17,182,526  17,212,317
Full-time equivalent employees   1,068  1,073  1,074  1,077  1,083
Total number of ATM's   110  106  102  102  102
Total number of financial centers   92  88  84  84  84
Parent company only - investment in subsidiaries   368,847  387,944  386,441  384,713  381,236
Parent company only - intangible assets   133  133  133  133  133
           
 
         
         
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)   2012   2012   2012   2012   2011 
(in thousands, except per share data)          
QUARTER-TO-DATE          
Net Income   $ 8,033  $ 6,760  $ 6,536  $ 6,355  $ 6,305
Nonrecurring items           
Gain on FDIC assisted transactions  (2,291)  (1,120)  --   --   -- 
Merger related costs  1,081  815  --   --   -- 
FHLB prepayment penalties  175  --   --   --   -- 
Tax effect  406  120  --   --   -- 
Net nonrecurring items   (629)  (185)  --   --   -- 
Core earnings (non-GAAP)   $ 7,404  $ 6,575  $ 6,536  $ 6,355  $ 6,305
           
Diluted earnings per share   $ 0.48  $ 0.41  $ 0.38  $ 0.37  $ 0.37
Nonrecurring items           
Gain on FDIC assisted transactions  (0.14)  (0.07)  --   --   -- 
Merger related costs  0.07  0.05  --   --   -- 
FHLB prepayment penalties  0.01  --   --   --   -- 
Tax effect  0.02  0.01  --   --   -- 
Net nonrecurring items   (0.04)  (0.01)  --   --   -- 
Diluted core earnings per share (non-GAAP)   $ 0.44  $ 0.40  $ 0.38  $ 0.37  $ 0.37
           
YEAR-TO-DATE          
Net Income   $ 27,684  $ 19,651  $ 12,891  $ 6,355  $ 25,374
Nonrecurring items           
Gain on sale of MasterCard stock (1)  --   --   --   --   (1,132)
Gain on FDIC assisted transactions  (3,411)  (1,120)  --   --   -- 
Merger related costs  1,896  815  --   --   357
FHLB prepayment penalties  175  --   --   --   -- 
Branch right sizing  --   --   --   --   141
Tax effect  526  120  --   --   248
Net nonrecurring items   (814)  (185)  --   --   (386)
Core earnings (non-GAAP)   $ 26,870  $ 19,466  $ 12,891  $ 6,355  $ 24,988
           
Diluted earnings per share   $ 1.64  $ 1.16  $ 0.75  $ 0.37  $ 1.47
Nonrecurring items           
Gain on sale of MasterCard stock (1)  --   --   --   --   (0.07)
Gain on FDIC assisted transactions  (0.21)  (0.07)  --   --   -- 
Merger related costs  0.12  0.05  --   --   0.02
FHLB prepayment penalties  0.01  --   --   --   -- 
Branch right sizing  --   --   --   --   0.01
Tax effect  0.03  0.01  --   --   0.02
Net nonrecurring items   (0.05)  (0.01)  --   --   (0.02)
Diluted core earnings per share (non-GAAP)   $ 1.59  $ 1.15  $ 0.75  $ 0.37  $ 1.45
           
(1) Gain from liquidation of Class B shares received as part of MasterCard's 2006 IPO.       
           
 
DAVID W. GARNER
Senior Vice President and Investor Relations Officer
Simmons First National Corporation
(870) 541-1000