Simmons Announces 48 Percent Increase in Core Earnings

PINE BLUFF, Ark., April 21, 2016 (GLOBE NEWSWIRE) -- Simmons First National Corporation (NASDAQ:SFNC) today announced core earnings of $23.2 million for the first quarter of 2016, an increase of $7.5 million, or 47.7 percent, compared with the same quarter last year. Diluted core earnings per share were $0.76, an increase of $0.06, or 8.6 percent.

Including the non-core items, net income was $23.5 million for the first quarter of 2016, an increase of $14.8 million, or 169.6 percent, compared with the same quarter last year. Diluted earnings per share were $0.77, an increase of $0.38, or 97.4 percent.

“We believe that our operating results reflect the successful integration of 12 separately chartered banks and two trust companies over the past two years. We continue to pursue growth opportunities and improvement in our organization as evidenced by our recent charter conversion to a state member bank,” said George A. Makris, Jr., chairman and CEO.

Loans

Total loans, including those acquired, were $4.9 billion at March 31, 2016, an increase of $290 million, or 6.3 percent, compared with the same period in 2015. Legacy loans (all loans excluding acquired loans) grew $1.4 billion, or 64.2 percent. On a linked quarter basis, total loan growth was $10.7 million. Adjusting for seasonality in the credit card and agricultural loan portfolios, loans grew by $31.4 million during the quarter.

Deposits

At March 31, 2016, total deposits were $6.1 billion, a decrease of $195 million, or 3.1 percent, compared with the same period in 2015. Total non-time deposits were $4.8 billion, or 78.9 percent of total deposits.

Net Interest Income

The company’s net interest income for the first quarter of 2016 was $70.2 million, an increase of $17.3 million, or 32.6 percent, from the same period of 2015. This increase was driven by growth in the legacy loan portfolio and earning assets acquired through the Community First and Liberty transactions. Net interest margin was 4.41 percent for the quarter ended March 31, 2016, a 7 basis-point increase from the same quarter of 2015.

Included in interest income was the yield accretion recognized on acquired loans of $8.1 million and $10.0 million for the first quarter of 2016 and 2015, respectively. The company’s core net interest margin, excluding the accretion, was 3.92 percent for the first quarter of 2016, a 37 basis-point increase from the same quarter of 2015.

Non-Interest Income

Non-interest income for the first quarter was $29.5 million, an increase of $11.2 million compared with the first quarter of 2015. The increase in non-interest income was primarily due to additional service charge and fee income, mortgage lending and trust income resulting from the 2015 acquisitions and gains on sale of other real estate and investment securities. Additional trust income resulted from the completed acquisition of Ozark Trust. Included in the quarter was $594,000 of gain related to the early retirement of trust preferred securities. Losses on FDIC-covered assets decreased by $2.7 million with the elimination of indemnification asset amortization due to the company’s 2015 termination of loss-sharing agreements with the FDIC.

Non-Interest Expense

Non-interest expense for the first quarter of 2016 was $61.8 million. Included in the quarter were $107,000 of merger-related and branch right-sizing expenses.

Asset Quality

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

At March 31, 2016, the allowance for loan losses for legacy loans was $32.7 million, with a $1.0 million allowance for acquired loans. The loan discount credit mark was $45.1 million, for a total of $78.8 million of coverage. This equates to a total coverage ratio of 1.6 percent of gross loans. The ratio of credit mark and related allowance to acquired loans was 3.1 percent.

The company's allowance for loan losses on legacy loans at March 31, 2016 was 0.94 percent of total loans and 93 percent of non-performing loans. In the legacy portfolio, non-performing loans as a percent of total loans were 1.01 percent. The increase in the non-performing ratio from the fourth quarter is primarily the result of a single credit totaling $13.5 million. Excluding this credit, the non-performing ratio was relatively unchanged from the previous quarter, at 0.62 percent versus 0.58 percent. The 2016 year-to-date net charge-off ratio, excluding credit cards, was 11 basis points, and the year-to-date credit card charge-off ratio was 1.46 percent.

Capital

At March 31, 2016, common stockholders' equity was $1.1 billion, book value per share was $35.35 and tangible book value per share was $22.84. The company's ratio of stockholders' equity to total assets was 14.22 percent and its ratio of tangible common equity to tangible assets was 9.7 percent.

Simmons First National Corporation

Simmons First National Corporation is an Arkansas-based financial holding company with total assets of $7.5 billion, conducting financial operations throughout Arkansas, Kansas, Missouri and Tennessee. The company's common stock trades on the NASDAQ Global Select Market under the symbol "SFNC".

Conference Call

Management will conduct a conference call to review this information beginning at 3 p.m. CDT on Thursday, April 21, 2016. 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 84913510. 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 news release contains financial information determined by methods other than in accordance with generally accepted accounting principles (GAAP). The company’s management uses these non-GAAP financial measures in their analysis of the company’s performance. These measures typically adjust GAAP performance measures to include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant 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 news 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	Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
(Unaudited)		2016			2015			2015			2015			2015
($ in thousands)
ASSETS
Cash and non-interest bearing balances due from banks	$	118,468		$	97,656		$	106,678		$	69,770		$	83,424
Interest bearing balances due from banks		100,593			154,606			284,645			173,130			423,986
Federal funds sold		4,000			-			9,675			49,570			178,418
Cash and cash equivalents		223,061			252,262			400,998			292,470			685,828
Interest bearing balances due from banks - time		11,188			14,107			16,504			24,189			25,000
Investment securities - held-to-maturity		674,502			705,373			776,294			861,596			902,423
Investment securities - available-for-sale		857,673			821,407			703,347			747,701			707,383
Mortgage loans held for sale		24,563			30,265			15,556			48,094			25,513
Assets held in trading accounts		7,074			4,422			6,292			6,481			6,528
Loans:
Legacy loans		3,472,691			3,246,454			2,839,278			2,611,229			2,115,380
Allowance for loan losses		(32,681	)		(31,351	)		(30,380	)		(30,567	)		(29,183	)
Loans acquired, not covered by FDIC loss share
(net of discount and allowance)		1,457,370			1,672,901			2,013,816			2,108,306			2,418,440
Loans acquired, covered by FDIC loss share
(net of discount and allowance)		-			-			-			93,121			102,468
Net loans		4,897,380			4,888,004			4,822,714			4,782,089			4,607,105
FDIC indemnification asset		-			-			-			13,020			15,965
Premises and equipment		192,327			193,618			190,182			191,335			198,106
Premises held for sale		2,364			923			923			6,587			-
Foreclosed assets not covered by FDIC loss share		41,126			44,820			48,073			42,666			50,723
Foreclosed assets covered by FDIC loss share		-			-			-			12,833			12,010
Interest receivable		23,545			25,793			26,873			24,129			24,719
Bank owned life insurance		130,092			131,536			118,922			118,073			117,296
Goodwill		327,686			327,686			314,344			314,344			314,344
Other intangible assets		51,783			53,237			44,904			46,605			47,960
Other assets		72,589			66,205			73,768			82,146			74,897
Total assets	$	7,536,953		$	7,559,658		$	7,559,694		$	7,614,358		$	7,815,800

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts	$	1,274,816		$	1,280,234		$	1,212,724		$	1,141,285		$	1,123,966
Interest bearing transaction accounts and savings deposits		3,524,808			3,485,845			3,521,840			3,581,049			3,627,870
Time deposits less than $100,000		674,915			694,262			673,651			719,606			756,978
Time deposits greater than $100,000		605,236			625,755			681,585			728,082			765,894
Total deposits		6,079,775			6,086,096			6,089,800			6,170,022			6,274,708
Federal funds purchased and securities sold
under agreements to repurchase		97,429			99,398			110,437			111,792			111,484
Other borrowings		176,829			162,289			173,426			171,321			284,386
Subordinated debentures		60,077			60,570			61,906			61,794			61,644
Accrued interest and other liabilities		50,859			74,450			78,684			74,324			69,841
Total liabilities		6,464,969			6,482,803			6,514,253			6,589,253			6,802,063

Stockholders' equity:
Preferred stock		-			30,852			30,852			30,852			30,852
Common stock		303			303			299			299			299
Surplus		665,850			662,378			642,400			640,895			639,493
Undivided profits		402,265			385,987			369,172			354,459			341,238
Accumulated other comprehensive income (loss):
Unrealized appreciation (depreciation) on AFS securities		3,566			(2,665	)		2,718			(1,400	)		1,855
Total stockholders' equity		1,071,984			1,076,855			1,045,441			1,025,105			1,013,737
Total liabilities and stockholders' equity	$	7,536,953		$	7,559,658		$	7,559,694		$	7,614,358		$	7,815,800

Simmons First National Corporation													SFNC
Consolidated Average Quarter-to-Date Balance Sheets
For the Quarters Ended	Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
(Unaudited)		2016			2015			2015			2015			2015
($ in thousands)
ASSETS
Cash and non-interest bearing balances due from banks	$	109,288		$	103,204		$	94,695		$	69,137		$	59,711
Interest bearing balances due from banks		154,755			232,446			206,467			308,756			371,195
Federal funds sold		1,839			1,930			19,086			75,922			56,846
Cash and cash equivalents		265,882			337,580			320,248			453,815			487,752
Interest bearing balances due from banks - time		12,626			15,484			20,251			26,817			8,611
Investment securities - held-to-maturity		691,170			733,349			728,437			922,877			915,405
Investment securities - available-for-sale		815,502			773,550			838,596			732,949			370,102
Mortgage loans held for sale		26,616			21,294			26,379			37,656			14,655
Assets held in trading accounts		5,196			6,150			6,401			6,592			6,782
Loans:
Legacy loans		3,324,549			2,898,987			2,725,254			2,363,305			2,084,551
Allowance for loan losses		(31,992	)		(31,521	)		(31,709	)		(31,275	)		(30,072	)
Loans acquired, not covered by FDIC loss share
(net of discount and allowance)		1,565,136			1,969,296			2,020,236			2,228,841			1,197,601
Loans acquired, covered by FDIC loss share
(net of discount and allowance)		-			-			89,578			97,795			104,701
Net loans		4,857,693			4,836,762			4,803,359			4,658,666			3,356,781
FDIC indemnification asset		-			-			10,838			15,448			21,515
Premises and equipment		193,543			192,414			191,107			200,875			150,564
Premises held for sale		1,414			923			5,775			6,131			6,126
Foreclosed assets not covered by FDIC loss share		43,815			46,860			40,273			42,994			44,059
Foreclosed assets covered by FDIC loss share		-			-			12,345			12,313			11,902
Interest receivable		23,736			25,999			24,403			23,260			19,181
Bank owned life insurance		131,895			128,339			118,489			117,662			91,760
Goodwill		327,677			320,216			314,282			314,060			175,901
Other intangible assets		52,498			44,302			45,712			47,302			31,102
Other assets		49,922			67,347			100,872			76,275			58,536
Total assets	$	7,499,185		$	7,550,569		$	7,607,767		$	7,695,692		$	5,770,734

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts	$	1,225,311		$	1,295,713		$	1,121,078		$	1,088,474		$	946,979
Interest bearing transaction accounts and savings deposits		3,484,571			3,442,857			3,600,930			3,621,060			2,601,046
Time deposits less than $100,000		685,382			689,368			694,872			739,748			573,867
Time deposits greater than $100,000		618,232			649,048			703,056			748,460			580,625
Total deposits		6,013,496			6,076,986			6,119,936			6,197,742			4,702,517
Federal funds purchased and securities sold
under agreements to repurchase		113,551			108,389			109,311			116,258			121,568
Other borrowings		184,000			167,167			197,832			179,080			183,953
Subordinated debentures		60,109			61,697			61,851			62,981			35,686
Accrued interest and other liabilities		53,240			73,768			74,696			70,312			43,825
Total liabilities		6,424,396			6,488,007			6,563,626			6,626,373			5,087,549

Stockholders' equity:
Preferred stock		9,493			30,852			30,852			30,885			10,970
Common stock		303			301			299			299			223
Surplus		664,926			651,824			641,738			640,172			328,830
Undivided profits		398,808			379,064			371,291			396,609			343,973
Accumulated other comprehensive income (loss):
Unrealized appreciation (depreciation) on AFS securities		1,259			521			(39	)		1,354			(811	)
Total stockholders' equity		1,074,789			1,062,562			1,044,141			1,069,319			683,185
Total liabilities and stockholders' equity	$	7,499,185		$	7,550,569		$	7,607,767		$	7,695,692		$	5,770,734

Simmons First National Corporation											SFNC
Consolidated Statements of Income - Quarter-to-Date
For the Quarters Ended	Mar 31		Dec 31		Sep 30			Jun 30			Mar 31
(Unaudited)		2016		2015		2015			2015			2015
($ in thousands, except per share data)
INTEREST INCOME
Loans	$	66,678	$	70,511	$	76,432		$	70,438		$	50,986
Federal funds sold		10		10		15			73			29
Investment securities		8,506		8,350		8,335			8,050			5,879
Mortgage loans held for sale		278		237		291			375			148
Assets held in trading accounts		6		6		4			4			3
Interest bearing balances due from banks		144		225		122			229			210
TOTAL INTEREST INCOME		75,622		79,339		85,199			79,169			57,255
INTEREST EXPENSE
Time deposits		1,636		1,858		1,936			2,064			1,596
Other deposits		2,018		2,105		2,222			2,131			1,348
Federal funds purchased and securities
sold under agreements to repurchase		65		60		55			57			64
Other borrowings		1,128		1,084		1,812			1,151			1,051
Subordinated debentures		543		481		498			559			234
TOTAL INTEREST EXPENSE		5,390		5,588		6,523			5,962			4,293
NET INTEREST INCOME		70,232		73,751		78,676			73,207			52,962
Provision for loan losses		2,823		3,230		1,615			3,006			1,171
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES		67,409		70,521		77,061			70,201			51,791
NON-INTEREST INCOME
Trust income		3,631		2,725		2,215			2,070			2,251
Service charges on deposit accounts		7,316		8,104		8,488			8,031			6,363
Other service charges and fees		1,909		1,654		2,672			2,766			1,666
Mortgage lending income		3,792		2,298		3,446			3,449			2,262
Investment banking income		687		784		663			593			894
Debit and credit card fees		7,200		7,647		6,879			6,486			5,648
Bank owned life insurance income		997		614		748			746			572
Gain on sale of securities, net		329		305		40			-			(38	)
Net (loss) gain on assets covered by FDIC loss-share agreements		-		-		(9,085	)		(3,056	)		(2,671	)
Other income		3,642		4,518		7,006			3,863			1,390
TOTAL NON-INTEREST INCOME		29,503		28,649		23,072			24,948			18,337
NON-INTEREST EXPENSE
Salaries and employee benefits		34,773		39,523		37,000			35,111			26,610
Occupancy expense, net		4,471		3,418		4,812			5,051			3,557
Furniture and equipment expense		3,947		3,731		4,202			3,241			3,268
Other real estate and foreclosure expense		966		1,167		2,297			1,017			381
Deposit insurance		1,148		1,222		1,013			1,096			870
Merger-related costs		93		1,237		857			1,247			10,419
Other operating expenses		16,391		17,508		17,314			18,041			12,106
TOTAL NON-INTEREST EXPENSE		61,789		67,806		67,495			64,804			57,211
NET INCOME BEFORE INCOME TAXES		35,123		31,364		32,638			30,345			12,917
Provision for income taxes		11,618		7,505		10,963			10,250			4,182
NET INCOME		23,505		23,859		21,675			20,095			8,735
Preferred stock dividends		24		77		77			77			26
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	23,481	$	23,782	$	21,598		$	20,018		$	8,709
BASIC EARNINGS PER SHARE	$	0.77	$	0.79	$	0.72		$	0.67		$	0.39
DILUTED EARNINGS PER SHARE	$	0.77	$	0.78	$	0.72		$	0.67		$	0.39

Simmons First National Corporation											SFNC
Consolidated Core Earnings - Quarter-to-Date (non-GAAP)
For the Quarters Ended	Mar 31		Dec 31		Sep 30			Jun 30			Mar 31
(Unaudited)		2016		2015		2015			2015			2015
($ in thousands, except per share data)
INTEREST INCOME
Loans	$	66,678	$	70,511	$	76,432		$	70,438		$	50,986
Federal funds sold		10		10		15			73			29
Investment securities		8,506		8,350		8,335			8,050			5,879
Mortgage loans held for sale		278		237		291			375			148
Assets held in trading accounts		6		6		4			4			3
Interest bearing balances due from banks		144		225		122			229			210
TOTAL INTEREST INCOME		75,622		79,339		85,199			79,169			57,255
INTEREST EXPENSE
Time deposits		1,636		1,858		1,936			2,064			1,596
Other deposits		2,018		2,105		2,222			2,131			1,348
Federal funds purchased and securities
sold under agreements to repurchase		65		60		55			57			64
Other borrowings		1,128		1,084		1,812			1,151			1,051
Subordinated debentures		543		481		498			559			234
TOTAL INTEREST EXPENSE		5,390		5,588		6,523			5,962			4,293
NET INTEREST INCOME		70,232		73,751		78,676			73,207			52,962
Provision for loan losses		2,823		3,230		1,615			3,006			1,171
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES		67,409		70,521		77,061			70,201			51,791
NON-INTEREST INCOME
Trust income		3,631		2,725		2,215			2,070			2,251
Service charges on deposit accounts		7,316		8,104		8,488			8,031			6,363
Other service charges and fees		1,909		1,654		2,672			2,766			1,666
Mortgage lending income		3,792		2,298		3,446			3,449			2,262
Investment banking income		687		784		663			593			894
Debit and credit card fees		7,200		7,647		6,879			6,486			5,648
Bank owned life insurance income		997		614		748			746			572
Gain on sale of securities, net		329		305		40			-			(38	)
Net (loss) gain on assets covered by FDIC loss-share agreements		-		-		(1,609	)		(3,056	)		(2,671	)
Other income		3,048		4,518		4,737			4,396			1,381
TOTAL NON-INTEREST INCOME		28,909		28,649		28,279			25,481			18,328
NON-INTEREST EXPENSE
Salaries and employee benefits		34,773		37,314		36,919			34,960			26,610
Occupancy expense, net		4,461		3,358		4,680			5,013			3,523
Furniture and equipment expense		3,947		3,731		4,172			3,209			3,268
Other real estate and foreclosure expense		966		1,167		2,297			1,017			381
Deposit insurance		1,148		1,222		1,013			1,096			870
Other operating expenses		16,387		17,508		17,094			16,050			12,097
TOTAL NON-INTEREST EXPENSE		61,682		64,300		66,175			61,345			46,749
CORE EARNINGS BEFORE INCOME TAXES (non-GAAP)		34,636		34,870		39,165			34,337			23,370
Provision for income taxes		11,427		8,880		13,523			11,816			7,644
CORE EARNINGS (non-GAAP)		23,209		25,990		25,642			22,521			15,726
Preferred stock dividends		24		77		77			77			26
CORE EARNINGS AVAILABLE TO COMMON S/H (non-GAAP)	$	23,185	$	25,913	$	25,565		$	22,444		$	15,700
BASIC CORE EARNINGS PER SHARE (non-GAAP)	$	0.76	$	0.86	$	0.85		$	0.75		$	0.71
DILUTED CORE EARNINGS PER SHARE (non-GAAP)	$	0.76	$	0.86	$	0.85		$	0.75		$	0.70

Simmons First National Corporation													SFNC
Consolidated Risk-Based Capital
For the Quarters Ended	Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
(Unaudited)		2016			2015			2015			2015			2015
($ in thousands)
Tier 1 capital
Stockholders' equity	$	1,071,984		$	1,076,855		$	1,045,441		$	1,025,105		$	1,013,737
Trust preferred securities, net allowable		60,077			60,570			61,906			61,794			61,410
Disallowed intangible assets, net of deferred tax		(335,166	)		(331,931	)		(314,735	)		(342,590	)		(344,140	)
Unrealized loss (gain) on AFS securities		(3,566	)		2,665			(2,718	)		1,400			(1,855	)
Other		-			-			-			(10,297	)		(4,789	)
Total Tier 1 capital		793,329			808,159			789,894			735,412			724,363

Tier 2 capital
Qualifying unrealized gain on AFS equity securities		-			-			-			-			-
Qualifying allowance for loan losses and
reserve for unfunded commitments		36,398			35,068			34,097			34,284			32,600
Total Tier 2 capital		36,398			35,068			34,097			34,284			32,600
Total risk-based capital	$	829,727		$	843,227		$	823,991		$	769,696		$	756,963

Common equity
Tier 1 capital	$	793,329		$	808,159		$	789,894		$	735,412		$	724,363
Less: Non-cumulative preferred stock		-			(30,852	)		(30,852	)		(30,852	)		(30,852	)
Less: Trust preferred securities		(60,077	)		(60,570	)		(61,906	)		(61,794	)		(61,410	)
Total common equity	$	733,252		$	716,737		$	697,136		$	642,766		$	632,101

Risk weighted assets	$	5,293,395		$	5,044,453		$	4,986,641		$	4,714,852		$	4,659,065

Adjusted average assets for leverage ratio	$	7,167,839		$	7,218,559		$	7,293,113		$	7,350,900		$	5,428,706

Ratios at end of quarter
Equity to assets		14.22	%		14.24	%		13.83	%		13.46	%		12.97	%
Tangible common equity to tangible assets		9.68	%		9.26	%		9.10	%		8.73	%		8.32	%
Common equity Tier 1 ratio (CET1)		13.85	%		14.21	%		13.98	%		13.63	%		13.57	%
Tier 1 leverage ratio		11.07	%		11.20	%		10.83	%		10.00	%		13.34	%
Tier 1 risk-based capital ratio		14.99	%		16.02	%		15.84	%		15.60	%		15.55	%
Total risk-based capital ratio		15.67	%		16.72	%		16.52	%		16.32	%		16.25	%

Simmons First National Corporation									SFNC
Consolidated Loans and Investments
For the Quarters Ended	Mar 31		Dec 31		Sep 30		Jun 30		Mar 31
(Unaudited)		2016		2015		2015		2015		2015
($ in thousands)
Legacy Loan Portfolio - End of Period⁽¹⁾
Consumer
Credit cards	$	167,803	$	177,288	$	171,701	$	174,074	$	171,413
Other consumer		227,480		208,380		182,472		160,828		107,486
Total consumer		395,283		385,668		354,173		334,902		278,899
Real Estate
Construction		300,042		279,740		253,761		199,707		178,929
Single-family residential		746,754		696,180		623,089		662,954		507,351
Other commercial		1,327,372		1,229,072		1,037,559		878,109		716,021
Total real estate		2,374,168		2,204,992		1,914,409		1,740,770		1,402,301
Commercial
Commercial		551,695		500,116		394,422		388,869		324,815
Agricultural		143,033		148,563		170,257		141,502		105,228
Total commercial		694,728		648,679		564,679		530,371		430,043
Other		8,512		7,115		6,017		5,186		4,137
Total Loans	$	3,472,691	$	3,246,454	$	2,839,278	$	2,611,229	$	2,115,380

(1) Excludes all acquired loans, including those covered by FDIC loss-share agreements.

Investment Securities - End of Period
Held-to-Maturity
U.S. Government agencies	$	223,484	$	237,139	$	285,071	$	361,744	$	390,625
Mortgage-backed securities		23,734		24,774		25,913		27,146		28,535
State and political subdivisions		424,586		440,676		464,245		471,631		482,316
Other securities		2,698		2,784		1,065		1,075		947
Total held-to-maturity		674,502		705,373		776,294		861,596		902,423
Available-for-Sale
U.S. Treasury	$	4,302	$	3,994	$	4,008	$	4,005	$	4,008
U.S. Government agencies		78,308		120,237		153,576		236,003		346,315
Mortgage-backed securities		722,982		647,425		502,344		464,857		312,011
State and political subdivisions		11,260		9,874		10,976		10,971		13,452
FHLB stock		7,838		7,823		14,275		13,619		15,256
Other securities		32,983		32,054		18,168		18,246		16,341
Total available-for-sale		857,673		821,407		703,347		747,701		707,383
Total investment securities	$	1,532,175	$	1,526,780	$	1,479,641	$	1,609,297	$	1,609,806
Fair value - HTM investment securities	$	686,835	$	713,371	$	785,030	$	863,349	$	913,037

Investment Securities - QTD Average
Taxable securities	$	1,067,302	$	1,043,268	$	1,088,597	$	1,163,708	$	893,946
Tax exempt securities		439,370		463,631		478,436		492,118		391,561
Total investment securities - QTD average	$	1,506,672	$	1,506,899	$	1,567,033	$	1,655,826	$	1,285,507

Simmons First National Corporation													SFNC
Consolidated Loans and Credit Coverage
For the Quarters Ended	Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
(Unaudited)		2016			2015			2015			2015			2015
($ in thousands)
LOANS
Legacy loans	$	3,472,691		$	3,246,454		$	2,839,278		$	2,611,229		$	2,115,380
Allowance for loan losses (legacy loans)		(32,681	)		(31,351	)		(30,380	)		(30,567	)		(29,183	)
Legacy loans (net of allowance)		3,440,010			3,215,103			2,808,898			2,580,662			2,086,197
Loans acquired, not covered by FDIC loss share		1,503,482			1,729,557			2,085,211			2,171,388			2,491,316
Credit discount		(45,158	)		(55,702	)		(70,441	)		(63,082	)		(72,876	)
Allowance for loan losses (loans acquired, not covered)		(954	)		(954	)		(954	)		-			-
Loans acquired, not covered (net of discount and allowance)		1,457,370			1,672,901			2,013,816			2,108,306			2,418,440
Loans acquired, covered by FDIC loss share		-			-			-			114,296			126,629
Credit discount		-			-			-			(20,221	)		(23,207	)
Allowance for loan losses (acquired covered loans)		-			-			-			(954	)		(954	)
Loans acquired, covered (net of discount and allowance)		-			-			-			93,121			102,468
Net loans	$	4,897,380		$	4,888,004		$	4,822,714		$	4,782,089		$	4,607,105

Loan Coverage Ratios
Allowance for loan losses to legacy loans		0.94	%		0.97	%		1.07	%		1.17	%		1.38	%

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)		3.07	%		3.28	%		3.42	%		3.69	%		3.71	%

Total allowance and credit coverage (non-GAAP)		1.58	%		1.77	%		2.07	%		2.34	%		2.67	%

Simmons First National Corporation													SFNC
Consolidated Allowance and Asset Quality
For the Quarters Ended	Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
(Unaudited)		2016			2015			2015			2015			2015
($ in thousands)
Allowance for Loan Losses (Legacy Loans)
Balance, beginning of quarter	$	31,351		$	30,380		$	30,567		$	29,183		$	29,028
Loans charged off
Credit cards		859			757			763			802			785
Other consumer		393			489			597			366			220
Real estate		229			845			109			333			293
Commercial		476			654			516			-			245
Total loans charged off		1,957			2,745			1,985			1,501			1,543

Recoveries of loans previously charged off
Credit cards		242			223			213			241			213
Other consumer		103			140			78			187			133
Real estate		112			120			25			46			12
Commercial		7			3			-			9			169
Total recoveries		464			486			316			483			527
Net loans charged off		1,493			2,259			1,669			1,018			1,016
Provision for loan losses		2,823			3,230			1,482			2,402			1,171
Balance, end of quarter	$	32,681		$	31,351		$	30,380		$	30,567		$	29,183

Non-performing assets^{(1) (2)}
Non-performing loans
Nonaccrual loans		34,244			17,714			15,305			15,565			14,511
Loans past due 90 days or more		881			1,191			1,506			1,375			498
Total non-performing loans		35,125			18,905			16,811			16,940			15,009
Other non-performing assets
Foreclosed assets held for sale, not covered		41,126			44,820			48,073			42,666			50,723
Other non-performing assets		256			211			172			242			215
Total other non-performing assets		41,382			45,031			48,245			42,908			50,938
Total non-performing assets	$	76,507		$	63,936		$	65,056		$	59,848		$	65,947
Performing TDRs (troubled debt restructurings)	$	10,759		$	3,031		$	1,955		$	1,959		$	2,227

Ratios^{(1) (2)}
Allowance for loan losses to total loans		0.94	%		0.97	%		1.07	%		1.17	%		1.38	%
Allowance for loan losses to non-performing loans		93	%		166	%		181	%		180	%		194	%
Non-performing loans to total loans		1.01	%		0.58	%		0.59	%		0.65	%		0.71	%
Non-performing assets (including performing TDRs)
to total assets		1.16	%		0.89	%		0.89	%		0.81	%		0.87	%
Non-performing assets to total assets		1.02	%		0.85	%		0.86	%		0.79	%		0.84	%
Annualized net charge offs to total loans		0.18	%		0.31	%		0.24	%		0.17	%		0.20	%
Annualized net credit card charge offs to
total credit card loans		1.46	%		1.22	%		1.26	%		1.31	%		1.32	%
Annualized net charge offs to total loans
(excluding credit cards)		0.11	%		0.25	%		0.17	%		0.08	%		0.09	%

(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	Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
(Unaudited)		2016			2015			2015			2015			2015

ASSETS

Earning Assets
Interest bearing balances due from banks		0.35	%		0.36	%		0.23	%		0.30	%		0.23	%
Investment securities		2.82	%		2.77	%		2.65	%		2.50	%		2.44	%
Mortgage loans held for sale		4.20	%		4.42	%		4.38	%		3.99	%		4.10	%
Assets held in trading accounts		0.46	%		0.39	%		0.25	%		0.24	%		0.18	%
Loans, including acquired loans		5.49	%		5.75	%		6.27	%		6.03	%		6.11	%
Total interest earning assets		4.74	%		4.86	%		5.20	%		4.82	%		4.68	%

LIABILITIES

Interest bearing liabilities
Interest bearing transaction and
savings accounts		0.23	%		0.24	%		0.24	%		0.24	%		0.21	%
Time deposits		0.50	%		0.55	%		0.55	%		0.56	%		0.56	%
Total interest bearing deposits		0.31	%		0.33	%		0.33	%		0.33	%		0.32	%
Federal funds purchased and securities
sold under agreement to repurchase		0.23	%		0.22	%		0.20	%		0.20	%		0.21	%
Other borrowings		2.47	%		2.57	%		3.63	%		2.58	%		2.32	%
Subordinated debentures		3.63	%		3.09	%		3.19	%		3.56	%		2.66	%
Total interest bearing liabilities		0.42	%		0.43	%		0.48	%		0.44	%		0.42	%

NET INTEREST MARGIN/SPREAD

Net interest spread		4.32	%		4.43	%		4.72	%		4.38	%		4.26	%
Net interest margin - quarter-to-date		4.41	%		4.53	%		4.82	%		4.47	%		4.34	%
Net interest margin - year-to-date		4.41	%		4.55	%		4.58	%		4.42	%		4.34	%

Simmons First National Corporation													SFNC
Consolidated - Selected Financial Data
For the Quarters Ended	Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
(Unaudited)		2016			2015			2015			2015			2015
($ in thousands, except share data)
QUARTER-TO-DATE
Financial Highlights - Core (non-GAAP)
Core earnings (excludes nonrecurring items) (1)	$	23,185		$	25,913		$	25,565		$	22,444		$	15,700
Diluted core earnings per share (1)		0.76			0.86			0.85			0.75			0.70
Core net interest margin (FTE) (2)		3.92	%		3.87	%		3.93	%		3.87	%		3.55	%
Core efficiency ratio (1)		58.73	%		59.26	%		57.40	%		58.36	%		62.13	%
Core return on average assets (1)		1.24	%		1.36	%		1.33	%		1.17	%		1.10	%
Core return on average common equity (1)		8.75	%		9.96	%		10.01	%		8.67	%		9.47	%
Core return on tangible common equity (1)		14.13	%		15.89	%		15.99	%		13.80	%		14.16	%
Financial Highlights - GAAP
Net Income	$	23,481		$	23,782		$	21,598		$	20,018		$	8,709
Diluted earnings per share		0.77			0.78			0.72			0.67			0.39
Return on average assets		1.26	%		1.25	%		1.13	%		1.04	%		0.61	%
Return on average common equity		8.87	%		9.15	%		8.46	%		7.73	%		5.25	%
Return on tangible common equity		14.30	%		14.62	%		13.58	%		12.36	%		8.07	%
Net interest margin (FTE)		4.41	%		4.53	%		4.82	%		4.47	%		4.34	%
FTE adjustment		2,084			2,185			2,172			2,303			1,857
Amortization of intangibles		1,455			1,337			1,265			1,388			899
Amortization of intangibles, net of taxes		884			813			769			844			546
Average earning assets		6,597,389			6,652,486			6,660,434			6,774,693			5,121,838
Average interest bearing liabilities		5,145,845			5,118,526			5,367,852			5,467,587			4,096,745
Average diluted shares outstanding		30,481,604			30,301,190			30,046,062			29,987,471			22,350,272
Cash dividends declared per common share		0.24			0.23			0.23			0.23			0.23
YEAR-TO-DATE
Financial Highlights - Core (non-GAAP)
Core earnings (excludes nonrecurring items) (1)	$	23,185		$	89,622		$	63,709		$	38,144		$	15,700
Diluted core earnings per share (1)		0.76			3.18			2.32			1.46			0.70
Core net interest margin (FTE) (2)		3.92	%		3.82	%		3.82	%		3.74	%		3.55	%
Core efficiency ratio (1)		58.73	%		59.01	%		58.91	%		59.94	%		62.13	%
Core return on average assets (1)		1.24	%		1.25	%		1.21	%		1.14	%		1.10	%
Core return on average common equity (1)		8.75	%		9.55	%		9.39	%		8.99	%		9.47	%
Core return on tangible common equity (1)		14.13	%		15.05	%		14.73	%		13.96	%		14.16	%
Financial Highlights - GAAP
Net Income	$	23,481		$	74,107		$	50,325		$	28,727		$	8,709
Diluted earnings per share		0.77			2.63			1.83			1.10			0.39
Return on average assets		1.26	%		1.03	%		0.96	%		0.86	%		0.61	%
Return on average common equity		8.87	%		7.90	%		7.41	%		6.77	%		5.25	%
Return on tangible common equity		14.30	%		12.53	%		11.73	%		10.63	%		8.07	%
Net interest margin (FTE)		4.41	%		4.55	%		4.58	%		4.42	%		4.34	%
FTE adjustment		2,084			8,517			6,332			4,160			1,857
Amortization of intangibles		1,455			4,889			3,552			2,287			899
Amortization of intangibles, net of taxes		884			2,972			2,159			1,390			546
Average earning assets		6,597,389			6,305,966			6,170,521			5,948,265			5,121,838
Average interest bearing liabilities		5,145,845			5,000,858			4,977,397			4,782,167			4,096,745
Average diluted shares outstanding		30,481,604			28,209,661			27,497,813			26,203,942			22,350,272
Cash dividends declared per common share		0.24			0.92			0.69			0.46			0.23
END OF PERIOD
Book value per share	$	35.35		$	34.55		$	33.89		$	33.26		$	32.93
Tangible book value per share		22.84			21.97			21.89			21.19			20.79
Shares outstanding		30,324,499			30,278,432			29,939,698			29,894,903			29,850,034
Full-time equivalent employees		1,931			1,946			1,967			2,043			2,076
Total number of ATM's		185			182			183			186			179
Total number of financial centers		149			149			149			152			164

(1) Core earnings exclude nonrecurring items, which is a non-GAAP measurement
(2) Excludes accretable yield adjustment on loans, which is a non-GAAP measurement

Simmons First National Corporation													SFNC
Consolidated - Reconciliation of Core Earnings (non-GAAP)
For the Quarters Ended	Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
(Unaudited)		2016			2015			2015			2015			2015
($ in thousands, except per share data)
QUARTER-TO-DATE
Net Income	$	23,481		$	23,782		$	21,598		$	20,018		$	8,709
Nonrecurring items
Accelerated vesting on retirement agreements		-			2,209			-			-			-
Gain on sale of banking operations		-			-			(2,110	)		-			-
Gain from early retirement of trust preferred securities		(594	)		-			-			-			-
Loss on FDIC loss-share termination		-			-			7,476			-			-
Merger-related costs		93			1,237			857			1,247			10,419
Branch right-sizing		14			60			304			2,745			35
Tax effect ⁽¹⁾		191			(1,375	)		(2,560	)		(1,566	)		(3,463	)
Net nonrecurring items		(296	)		2,131			3,967			2,426			6,991
Core earnings (non-GAAP)	$	23,185		$	25,913		$	25,565		$	22,444		$	15,700

Diluted earnings per share	$	0.77		$	0.78		$	0.72		$	0.67		$	0.39
Nonrecurring items
Accelerated vesting on retirement agreements		-			0.08			-			-			-
Gain on sale of banking operations		-			-			(0.07	)		-			-
Gain from early retirement of trust preferred securities		(0.02	)		-			-			-			-
Loss on FDIC loss-share termination		-			-			0.25			-			-
Merger-related costs		-			0.05			0.03			0.04			0.47
Branch right-sizing		-			-			0.01			0.09			-
Tax effect ⁽¹⁾		0.01			(0.05	)		(0.09	)		(0.05	)		(0.16	)
Net nonrecurring items		(0.01	)		0.08			0.13			0.08			0.31
Core earnings (non-GAAP)	$	0.76		$	0.86		$	0.85		$	0.75		$	0.70

YEAR-TO-DATE
Net Income	$	23,481		$	74,107		$	50,325		$	28,727		$	8,709
Nonrecurring items
Accelerated vesting on retirement agreements		-			2,209			-			-			-
Gain on sale of banking operations		-			(2,110	)		(2,110	)		-			-
Gain from early retirement of trust preferred securities		(594	)		-			-			-			-
Loss on FDIC loss-share termination		-			7,476			7,476			-			-
Merger-related costs		93			13,760			12,523			11,666			10,419
Branch right-sizing		14			3,144			3,084			2,780			35
Tax effect ⁽¹⁾		191			(8,964	)		(7,589	)		(5,029	)		(3,463	)
Net nonrecurring items		(296	)		15,515			13,384			9,417			6,991
Core earnings (non-GAAP)	$	23,185		$	89,622		$	63,709		$	38,144		$	15,700

Diluted earnings per share	$	0.77		$	2.63		$	1.83		$	1.10		$	0.39
Nonrecurring items
Accelerated vesting on retirement agreements		-			0.08			-			-			-
Gain on sale of banking operations		-			(0.07	)		(0.07	)		-			-
Gain from early retirement of trust preferred securities		(0.02	)		-			-			-			-
Loss on FDIC loss-share termination		-			0.27			0.27			-			-
Merger-related costs		-			0.49			0.46			0.45			0.47
Branch right-sizing		-			0.11			0.11			0.11			-
Tax effect ⁽¹⁾		0.01			(0.33	)		(0.28	)		(0.20	)		(0.16	)
Net nonrecurring items		(0.01	)		0.55			0.49			0.36			0.31
Core earnings (non-GAAP)	$	0.76		$	3.18		$	2.32		$	1.46		$	0.70

(1) Effective tax rate of 39.225%, adjusted for non-deductible merger-related costs.

Simmons Announces 48 Percent Increase in Core Earnings

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