Simmons First Announces 43% Increase in Core Earnings

By GlobeNewswire,  July 17, 2014, 09:15:00 AM EDT


PINE BLUFF, Ark., July 17, 2014 (GLOBE NEWSWIRE) -- Simmons First National Corporation (Nasdaq:SFNC) today announced record core earnings of $9.2 million for the second quarter of 2014, an increase of $2.7 million, or 42.8%, compared to the same quarter last year. Diluted core earnings per share were a record $0.56, an increase of $0.17, or 43.6%. Core earnings exclude $755,000 in net after-tax earnings. Including the non-core items, net income was $9.9 million and diluted earnings per share were $0.60.

Year-to-date core earnings were $16.6 million, an increase of $4.1 million, or 33.2%, compared to the same period of 2013. Year-to-date diluted core earnings per share were $1.02, an increase of $0.26, or 34.2%. Year-to-date net income was $14.2 million, or $0.87 diluted earnings per share.

"The second quarter was a landmark quarter for Simmons. We announced two acquisitions totaling approximately $3 billion in assets and reported record core earnings and record core earnings per share for the quarter," commented George A. Makris, Jr., Chairman and CEO.

Loans

Total loans, including those acquired, were $2.4 billion at June 30, 2014, an increase of $512 million, or 27.3%, compared to the same period in 2013. Acquired loans increased by $293 million, net of discounts, while legacy loans (all loans excluding acquired loans) grew $218 million, or 13.2%. "We are encouraged by the double digit legacy loan growth during the second quarter. We continue to achieve nice loan growth in virtually every market we serve," added Makris.

Deposits

At June 30, 2014, total deposits were $3.6 billion, an increase of $829 million, or 29.5%, compared to the same period in 2013. Total non-time deposits totaled $2.6 billion, or 72% of total deposits.

Net Interest Income

The Company's net interest income for the second quarter of 2014 was $40.4 million, an increase of $10.8 million, or 36.7%, from the same period of 2013. This increase was driven by growth in the legacy loan portfolio and earning assets acquired through the Metropolitan transaction, offset by a decrease in accretable yield on acquired loans. Net interest margin was 4.34% for the quarter ended June 30, 2014, a 38 basis point increase from the same quarter of 2013. Included in interest income for both periods was the additional yield accretion recognized as a result of updated estimates of the cash flows of the loan pools acquired in the Company's 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 Six Months Ended
(In thousands) June 30 June 30
  2014 2013 2014 2013
Impact on net interest income  $ 5,856  $ 3,150  $ 13,247  $ 6,097
Non-interest income (6,410) (3,062) (13,850) (5,890)
Net impact to pre-tax income  $ (554)  $ 88  $ (603)  $ 207

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 $25.1 million and the remaining adjustment to the indemnification assets that will reduce non-interest income is $18.6 million. Of the remaining adjustments, we expect to recognize $9.6 million of interest income and a $10.6 million reduction of non-interest income, for a net reduction to pre-tax income of approximately $1.0 million during the remainder of 2014. 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 second quarter was $15.4 million, an increase of $4.1 million compared to the second quarter of 2013. Included in non-interest income were $2.3 million in gains from the sale of branches that were closed as part the integration of Metropolitan and a $1.0 million dollar gain from the sale of the Company's merchant services business. Offsetting these gains was a $3.3 million incremental reduction in non-interest income from the adjustment to the indemnification assets. Normalized for the nonrecurring gains and the indemnification asset adjustments, non-interest income for the second quarter increased by $3.9 million, primarily from additional service charge and fee income from the Metropolitan acquisition.

Non-Interest Expense

Non-interest expense for the second quarter of 2014 was $39.8 million, an increase of $9.5 million compared to the same period in 2013. Merger related costs for the quarter exceeded those of the same period last year by $1.8 million. Also included in the quarter were $300 thousand of expenses associated with the maintenance of closed branches and $414 thousand of charter consolidation costs from the systems conversion of the three subsidiary banks that were merged into Simmons First National Bank in May. Excluding the nonrecurring expenses, non-interest expense increased by $7.0 million compared to last year, primarily due to incremental operating expenses from the Metropolitan acquisition.

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 June 30, 2014, acquired loans covered by loss share were carried at $122 million, OREO covered by loss share was carried at $17 million and the FDIC loss share indemnification asset was carried at $31 million. Acquired loans and OREO not covered by loss share were carried at $399 million and $37 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.

"It is important to remember that the acquired non-covered loans are protected by a credit mark and the acquired covered loans are protected by a credit mark and 80% loss coverage by the FDIC," explained Makris. "At June 30, 2014, the allowance for loan losses was $27.5 million and the loan credit mark was $88.8 million, for a total of $116.3 million of coverage. This equates to a total coverage ratio of 4.7% of gross loans. The ratio of credit mark to acquired loans was 14.6%." The Company's allowance for loan losses at June 30, 2014, was 1.47% of total loans and 245% of non-performing loans. Non-performing loans as a percent of total loans were 0.60%. Non-performing assets decreased $5.4 million from the previous quarter to $64.7 million. Through the second quarter of 2014, the year-to-date annualized net charge-off ratio, excluding credit cards, was 0.17%, and the year-to-date annualized credit card charge-off ratio was 1.17%.

Capital

At June 30, 2014, stockholders' equity was $414 million, book value per share was $25.36 and tangible book value per share was $19.69. The Company's ratio of stockholders' equity to total assets was 9.6% and its ratio of tangible common equity to tangible assets was 7.6%.

Simmons First National Corporation

Simmons First National Corporation is an Arkansas based financial holding company with pro forma assets totaling $8.0 billion and 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 3:00 p.m. Central Time on Thursday, July 17, 2014. 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 64281536. 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 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   Jun 30   Mar 31   Dec 31   Sep 30   Jun 30 
(Unaudited)   2014   2014   2013   2013   2013 
(in thousands)          
ASSETS           
Cash and non-interest bearing balances due from banks   $ 44,805  $ 48,018  $ 69,827  $ 37,752  $ 38,494
Interest bearing balances due from banks   377,855  474,118  469,553  320,368  420,740
Federal funds sold   --   --   --   18,365  -- 
Cash and cash equivalents   422,660  522,136  539,380  376,485  459,234
Investment securities - held-to-maturity   799,963  776,615  745,688  581,768  555,464
Investment securities - available-for-sale   270,336  264,974  212,277  179,937  177,531
Mortgage loans held for sale   20,409  16,717  9,494  10,605  14,454
Assets held in trading accounts   6,881  6,865  8,978  8,744  8,739
Loans:           
Legacy loans   1,868,842  1,779,609  1,742,638  1,741,161  1,650,395
Allowance for loan losses   (27,530)  (26,983)  (27,442)  (27,533)  (27,398)
Loans acquired, not covered by FDIC loss share (net of discount)   398,967  450,289  515,644  68,133  63,500
Loans acquired, covered by FDIC loss share (net of discount)   121,524  137,879  146,653  148,884  163,736
Net loans   2,361,803  2,340,794  2,377,493  1,930,645  1,850,233
FDIC indemnification asset   30,508  39,239  48,791  61,500  67,744
Premises and equipment   113,541  111,888  119,614  87,065  88,164
Premises held for sale   14,145  23,779  19,466  --   -- 
Foreclosed assets not covered by FDIC loss share   53,342  57,476  64,820  26,203  30,390
Foreclosed assets covered by FDIC loss share   16,951  18,171  20,585  23,260  22,990
Interest receivable   14,254  15,102  15,654  15,635  12,637
Bank owned life insurance   61,115  60,714  60,384  60,040  59,710
Goodwill   78,529  78,529  78,906  60,605  60,605
Other intangible assets   14,094  14,519  14,972  5,420  3,487
Other assets   47,310  49,129  46,598  13,797  10,387
Total assets   $ 4,325,841  $ 4,396,647  $ 4,383,100  $ 3,441,709  $ 3,421,769
           
LIABILITIES AND STOCKHOLDERS' EQUITY           
Deposits:           
Non-interest bearing transaction accounts   $ 838,543  $ 838,050  $ 718,438  $ 580,063  $ 565,433
Interest bearing transaction accounts and savings deposits   1,784,040  1,793,330  1,862,618  1,453,139  1,428,422
Time deposits less than $100,000   559,597  589,798  611,729  454,325  467,778
Time deposits greater than $100,000   459,545  485,870  504,782  351,271  351,486
Total deposits   3,641,725  3,707,048  3,697,567  2,838,798  2,813,119
Federal funds purchased and securities sold  under agreements to repurchase   98,226  104,643  107,887  62,311  79,063
Other borrowings   115,602  116,970  117,090  75,987  77,659
Subordinated debentures   20,620  20,620  20,620  20,620  20,620
Accrued interest and other liabilities   35,533  40,694  36,104  40,959  29,458
Total liabilities   3,911,706  3,989,975  3,979,268  3,038,675  3,019,919
           
Stockholders' equity:           
Common stock   163  163  162  162  163
Surplus   90,010  89,274  88,095  87,279  89,434
Undivided profits   325,371  319,354  318,577  318,194  314,663
Accumulated other comprehensive income           
Unrealized appreciation on AFS securities   (1,409)  (2,119)  (3,002)  (2,601)  (2,410)
Total stockholders' equity   414,135  406,672  403,832  403,034  401,850
Total liabilities and stockholders' equity   $ 4,325,841  $ 4,396,647  $ 4,383,100  $ 3,441,709  $ 3,421,769
           
Simmons First National Corporation           SFNC 
Consolidated Average Quarter-to-Date Balance Sheets         
For the Quarters Ended   Jun 30   Mar 31   Dec 31   Sep 30   Jun 30 
(Unaudited)   2014   2014   2013   2013   2013 
(in thousands)          
ASSETS           
Cash and non-interest bearing balances due from banks   $ 44,671  $ 68,770  $ 50,473  $ 39,067  $ 41,030
Interest bearing balances due from banks   456,931  507,936  428,551  365,504  527,787
Federal funds sold   985  385  2,616  3,719  1,922
Cash and cash equivalents   502,587  577,091  481,640  408,290  570,739
Investment securities - held-to-maturity   782,900  749,126  657,736  567,579  511,008
Investment securities - available-for-sale   265,194  223,203  220,292  178,351  182,227
Mortgage loans held for sale   15,299  6,668  6,666  12,171  14,154
Assets held in trading accounts   6,850  7,212  8,881  8,731  8,292
Loans:           
Legacy loans   1,817,429  1,719,294  1,734,469  1,705,204  1,616,036
Allowance for loan losses   (27,287)  (27,771)  (27,806)  (27,735)  (28,219)
Loans acquired, not covered by FDIC loss share (net of discount)   418,515  505,031  261,577  61,372  72,663
Loans acquired, covered by FDIC loss share (net of discount)   128,099  142,777  145,742  156,392  172,415
Net loans   2,336,756  2,339,331  2,113,982  1,895,233  1,832,895
FDIC indemnification asset   35,940  46,154  57,587  65,478  70,442
Premises and equipment   112,994  119,626  87,310  88,044  88,210
Premises held for sale   21,142  19,514  212  --   -- 
Foreclosed assets not covered by FDIC loss share   55,304  63,453  50,680  27,368  29,399
Foreclosed assets covered by FDIC loss share   18,330  19,901  22,529  22,392  25,603
Interest receivable   15,076  14,882  15,707  13,739  12,524
Bank owned life insurance   60,895  60,552  60,209  59,878  59,523
Goodwill   78,529  78,901  60,804  60,605  60,605
Other intangible assets   14,299  14,765  5,526  3,439  3,554
Other assets   48,583  45,458  33,324  12,122  13,435
Total assets   $ 4,370,678  $ 4,385,837  $ 3,883,085  $ 3,423,420  $ 3,482,610
           
LIABILITIES AND STOCKHOLDERS' EQUITY           
Deposits:           
Non-interest bearing transaction accounts   $ 823,552  $ 735,101  $ 665,644  $ 559,461  $ 560,804
Interest bearing transaction accounts and savings deposits   1,810,436  1,854,510  1,620,244  1,444,058  1,456,258
Time deposits less than $100,000   577,856  601,046  517,603  461,101  475,428
Time deposits greater than $100,000   472,009  495,574  409,361  358,307  359,155
Total deposits   3,683,853  3,686,231  3,212,852  2,822,927  2,851,645
Federal funds purchased and securities sold under agreements to repurchase   101,537  115,018  98,359  67,924  89,879
Other borrowings   116,082  117,588  108,693  75,704  80,090
Subordinated debentures   20,620  20,620  20,620  20,620  20,620
Accrued interest and other liabilities   34,637  36,967  33,117  31,867  32,146
Total liabilities   3,956,729  3,976,424  3,473,641  3,019,042  3,074,380
Total stockholders' equity   413,949  409,413  409,444  404,378  408,230
Total liabilities and stockholders' equity   $ 4,370,678  $ 4,385,837  $ 3,883,085  $ 3,423,420  $ 3,482,610
           
Simmons First National Corporation          SFNC 
Consolidated Statements of Income - Quarter-to-Date          
For the Quarters Ended Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
(Unaudited)  2014   2014   2013   2013   2013 
(in thousands, except per share data)          
INTEREST INCOME          
Legacy loans   $ 22,733  $ 21,554  $ 22,463  $ 22,332  $ 21,207
Loans acquired   15,889  18,577  16,151  8,283  7,864
Federal funds sold   2  1  5  6  5
Investment securities   4,766  4,549  3,951  3,428  3,019
Mortgage loans held for sale   168  69  72  122  118
Assets held in trading accounts   5  5  6  6  6
Interest bearing balances due from banks   279  279  251  234  352
TOTAL INTEREST INCOME   43,842  45,034  42,899  34,411  32,571
INTEREST EXPENSE           
Time deposits   1,515  1,577  1,479  1,392  1,479
Other deposits   720  692  646  601  603
Federal funds purchased and securities sold under agreements to repurchase   31  53  55  46  53
Other borrowings   988  1,010  929  646  692
Subordinated debentures   160  157  161  162  162
TOTAL INTEREST EXPENSE   3,414  3,489  3,270  2,847  2,989
NET INTEREST INCOME   40,428  41,545  39,629  31,564  29,582
Provision for loan losses   1,602  908  1,084  1,081  1,034
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES   38,826  40,637  38,545  30,483  28,548
NON-INTEREST INCOME           
Trust income   1,553  1,537  1,608  1,448  1,342
Service charges on deposit accounts   6,792  6,068  5,497  4,603  4,474
Other service charges and fees   859  1,866  1,164  728  791
Mortgage lending income   1,262  810  916  1,122  1,338
Investment banking income   154  181  421  240  696
Credit card fees   5,801  4,600  4,592  4,400  4,341
Bank owned life insurance income   377  330  347  328  366
Gain on sale of securities, net   38  --   42  --   (193)
Net (loss) gain on assets covered by FDIC loss share agreements   (6,268)  (7,370)  (7,988)  (3,443)  (2,615)
Other income   4,820  1,176  1,118  887  733
TOTAL NON-INTEREST INCOME   15,388  9,198  7,717  10,313  11,273
NON-INTEREST EXPENSE           
Salaries and employee benefits   20,982  22,464  19,933  17,701  17,937
Occupancy expense, net   3,285  3,890  2,544  2,485  2,450
Furniture and equipment expense   2,215  2,014  2,257  1,613  2,030
Other real estate and foreclosure expense   375  873  562  385  59
Deposit insurance   1,085  668  620  595  492
Merger related costs   1,354  1,272  6,413  190  (467)
Other operating expenses   10,546  13,370  9,349  7,934  7,818
TOTAL NON-INTEREST EXPENSE   39,842  44,551  41,678  30,903  30,319
NET INCOME BEFORE INCOME TAXES   14,372  5,284  4,584  9,893  9,502
Provision for income taxes   4,464  932  798  2,961  2,926
NET INCOME   $ 9,908  $ 4,352  $ 3,786  $ 6,932  $ 6,576
BASIC EARNINGS PER SHARE   $ 0.61  $ 0.27  $ 0.23  $ 0.43  $ 0.40
DILUTED EARNINGS PER SHARE   $ 0.60  $ 0.27  $ 0.23  $ 0.43  $ 0.40
           
Simmons First National Corporation         SFNC 
Consolidated Risk-Based Capital           
For the Quarters Ended   Jun 30   Mar 31   Dec 31   Sep 30   Jun 30 
(Unaudited)   2014   2014   2013   2013   2013 
($ in thousands)          
Tier 1 capital          
Stockholders' equity   $ 414,135  $ 406,672  $ 403,832  $ 403,034  $ 401,850
Trust preferred securities, net allowable   20,000  20,000  20,000  20,000  20,000
Disallowed intangible assets, net of deferred tax   (74,003)  (74,477)  (75,501)  (49,727)  (48,091)
Unrealized gain on AFS securities   1,409  2,119  3,002  2,601  2,410
           
Total Tier 1 capital   361,541  354,314  351,333  375,908  376,169
           
Tier 2 capital          
Qualifying unrealized gain on AFS equity securities   47  42  45  40  35
Qualifying allowance for loan losses   29,621  28,846  28,967  25,633  24,818
           
Total Tier 2 capital   29,668  28,888  29,012  25,673  24,853
           
Total risk-based capital   $ 391,209  $ 383,202  $ 380,345  $ 401,581  $ 401,022
           
Risk weighted assets   $ 2,652,474  $ 2,651,970  $ 2,697,630  $ 2,047,198  $ 1,981,341
           
Adjusted average assets for leverage ratio   $ 4,299,379  $ 4,315,279  $ 3,811,793  $ 3,378,676  $ 3,434,844
           
Ratios at end of quarter          
Equity to assets  9.57% 9.25% 9.21% 11.71% 11.74%
Tangible common equity to tangible assets  7.59% 7.29% 7.23% 9.98% 10.06%
Tier 1 leverage ratio  8.41% 8.21% 9.22% 11.13% 10.95%
Tier 1 risk-based capital ratio  13.63% 13.36% 13.02% 18.36% 18.99%
Total risk-based capital ratio  14.75% 14.45% 14.10% 19.62% 20.24%
           
Simmons First National Corporation         SFNC 
Consolidated Loans and Investments           
For the Quarters Ended   Jun 30   Mar 31   Dec 31   Sep 30   Jun 30 
(Unaudited)   2014   2014   2013   2013   2013 
(in thousands)          
Legacy Loan Portfolio - End of Period (1)          
Consumer           
Credit cards   $ 176,239  $ 172,609  $ 184,935  $ 177,463  $ 173,536
Student loans   398  24,415  25,906  28,392  30,106
Other consumer   105,998  104,185  98,851  101,399  103,765
Total consumer   282,635  301,209  309,692  307,254  307,407
Real Estate           
Construction   163,412  168,147  146,458  161,024  142,902
Single-family residential   417,187  402,588  392,285  375,703  364,239
Other commercial   653,734  644,772  626,333  602,463  572,110
Total real estate   1,234,333  1,215,507  1,165,076  1,139,190  1,079,251
Commercial           
Commercial   233,510  186,303  164,329  154,508  152,122
Agricultural   111,567  72,239  98,886  135,633  107,113
Total commercial   345,077  258,542  263,215  290,141  259,235
Other   6,796  4,351  4,655  4,576  4,502
Total Loans   $ 1,868,841  $ 1,779,609  $ 1,742,638  $ 1,741,161  $ 1,650,395
           
(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   $ 449,201  $ 425,616  $ 395,198  $ 313,052  $ 313,050
Mortgage-backed securities   32,204  33,323  34,425  41  43
State and political subdivisions   317,938  317,056  315,445  268,055  241,751
Other securities  620  620  620  620  620
Total held-to-maturity  799,963  776,615  745,688  581,768  555,464
Available-for-Sale           
U.S. Treasury   $ 3,994  $ 3,981  $ 3,985  $ --   $ -- 
U.S. Government agencies   238,411  231,949  178,217  163,127  159,390
Mortgage-backed securities   1,958  1,833  1,891  1,994  2,078
State and political subdivisions   6,920  7,367  7,861  1,263  1,262
FHLB stock   4,966  5,168  6,002  5,085  5,353
Other securities   14,087  14,676  14,321  8,468  9,448
Total available-for-sale   270,336  264,974  212,277  179,937  177,531
Total investment securities  $ 1,070,299  $ 1,041,589  $ 957,965  $ 761,705  $ 732,995
Fair value - HTM investment securities  $ 802,597  $ 771,114  $ 731,705  $ 570,703  $ 543,154
           
Investment Securities - QTD Average          
Taxable securities   $ 722,084  $ 649,329  $ 583,389  $ 490,801  $ 478,946
Tax exempt securities  326,010  323,000  294,639  255,129  214,289
Total investment securities - QTD average  $ 1,048,094  $ 972,329  $ 878,028  $ 745,930  $ 693,235
           
Simmons First National Corporation       SFNC 
Consolidated Loans and Credit Coverage       
For the Quarters Ended   Jun 30   Mar 31   Dec 31 
(Unaudited)   2014   2014   2013 
($ in thousands)       
LOANS       
Legacy loans   $ 1,868,842  $ 1,779,609  $ 1,742,638
Allowance for loan losses   (27,530)  (26,983)  (27,442)
Legacy loans (net of allowance)   1,841,312  1,752,626  1,715,196
Loans acquired, not covered by FDIC loss share   445,515  495,915  566,895
Credit discount   (46,548)  (45,626)  (51,251)
Loans acquired, not covered (net of discount)   398,967  450,289  515,644
Loans acquired, covered by FDIC loss share   163,775  188,755  209,459
Credit discount   (42,251)  (50,876)  (62,806)
Loans acquired, covered (net of discount)   121,524  137,879  146,653
Net loans   $ 2,361,803  $ 2,340,794  $ 2,377,493
       
       
Loan Coverage Ratios      
Allowance for loan losses to legacy loans  1.47% 1.52% 1.57%
       
Discount for credit losses on loans acquired, not covered, to total loans acquired, not covered, plus discount for  credit losses on loans acquired, not covered  10.45% 9.20% 9.04%
       
Discount for credit losses on loans acquired, covered,  to total loans acquired, covered, plus discount for credit losses on loans acquired, covered  25.80% 26.95% 29.98%
       
Total allowance and credit coverage  4.69% 5.01% 5.62%
       
Simmons First National Corporation         SFNC 
Consolidated Allowance and Asset Quality           
For the Quarters Ended   Jun 30   Mar 31   Dec 31   Sep 30   Jun 30 
(Unaudited)   2014   2014   2013   2013   2013 
($ in thousands)          
Allowance for Loan Losses          
Balance, beginning of quarter   $ 26,983  $ 27,442  $ 27,533  $ 27,398  $ 27,735
Loans charged off           
Credit cards   725  816  841  770  743
Other consumer   426  148  428  449  310
Real estate   1,144  1,035  255  247  887
Commercial   186  82  133  20  133
Total loans charged off   2,481  2,081  1,657  1,486  2,073
           
Recoveries of loans previously charged off           
Credit cards   215  271  226  235  204
Other consumer   133  121  166  114  116
Real estate   1,062  308  78  151  295
Commercial   16  14  12  40  87
Total recoveries   1,426  714  482  540  702
Net loans charged off   1,055  1,367  1,175  946  1,371
Provision for loan losses   1,602  908  1,084  1,081  1,034
Balance, end of quarter   $ 27,530  $ 26,983  $ 27,442  $ 27,533  $ 27,398
           
Non-performing assets (1) (2)          
Non-performing loans           
Nonaccrual loans           
Real estate   $ 8,166  $ 8,075  $ 4,799  $ 4,157  $ 4,327
Commercial   1,110  1,054  495  525  526
Consumer   877  883  967  1,293  1,410
Total nonaccrual loans   10,153  10,012  6,261  5,975  6,263
Loans past due 90 days or more           
Government guaranteed student loans   323  1,965  2,264  2,966  2,254
Other loans   757  517  687  725  879
Total loans past due 90 days or more   1,080  2,482  2,951  3,691  3,133
Total non-performing loans   11,233  12,494  9,212  9,666  9,396
Other non-performing assets           
Foreclosed assets held for sale   16,745  17,357  19,361  20,493  21,804
Acquired foreclosed assets held for sale, not covered by FDIC loss share agreements   36,597  40,119  45,459  5,710  8,586
Other non-performing assets   80  60  75  60  80
Total other non-performing assets   53,422  57,536  64,895  26,263  30,470
Total non-performing assets   $ 64,655  $ 70,030  $ 74,107  $ 35,929  $ 39,866
Performing TDRs (troubled debt restructurings)   $ 2,776  $ 8,655  $ 9,497  $ 9,584  $ 10,473
           
Ratios (1) (2)          
Allowance for loan losses to total loans  1.47% 1.52% 1.57% 1.58% 1.66%
Allowance for loan losses to non-performing loans  245% 216% 298% 285% 292%
Non-performing loans to total loans  0.60% 0.70% 0.53% 0.56% 0.57%
Non-performing assets (including performing TDRs) to total assets  1.56% 1.79% 1.91% 1.32% 1.47%
Non-performing assets to total assets  1.49% 1.59% 1.69% 1.04% 1.17%
Non-performing assets to total assets (excluding Gov't guaranteed student loans)  1.49% 1.55% 1.64% 0.96% 1.10%
Annualized net charge offs to total loans  0.23% 0.32% 0.27% 0.22% 0.34%
Annualized net credit card charge offs to total credit card loans  1.14% 1.20% 1.31% 1.21% 1.25%
Annualized net charge offs to total loans (excluding credit cards)  0.13% 0.22% 0.14% 0.11% 0.23%
Past due loans >30 days (excluding nonaccrual)  0.34% 0.61% 0.57% 0.62% 0.54%
Past due loans >30 days (excluding nonaccrual) (excluding Gov't guaranteed student loans)  0.32% 0.45% 0.41% 0.36% 0.35%
           
(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   Jun 30   Mar 31   Dec 31   Sep 30   Jun 30 
(Unaudited)   2014   2014   2013   2013   2013 
           
ASSETS          
           
Earning Assets          
Interest bearing balances due from banks 0.24% 0.22% 0.23% 0.25% 0.27%
Investment securities 2.47% 2.60% 2.44% 2.52% 2.37%
Mortgage loans held for sale 4.40% 4.20% 4.29% 3.98% 3.34%
Assets held in trading accounts 0.29% 0.28% 0.27% 0.27% 0.29%
Loans, including acquired loans 6.55% 6.88% 7.16% 6.32% 6.27%
Total interest earning assets 4.69% 4.91% 5.08% 4.63% 4.35%
           
LIABILITIES          
           
Interest bearing liabilities          
Interest bearing transaction and savings accounts 0.16% 0.15% 0.16% 0.17% 0.17%
Time deposits 0.58% 0.58% 0.63% 0.67% 0.71%
Total interest bearing deposits 0.31% 0.31% 0.33% 0.35% 0.36%
Federal funds purchased and securities sold under agreement to repurchase 0.12% 0.19% 0.22% 0.27% 0.24%
Other borrowings 3.41% 3.48% 3.39% 3.39% 3.47%
Subordinated debentures 3.11% 3.09% 3.10% 3.12% 3.15%
Total interest bearing liabilities 0.44% 0.44% 0.47% 0.47% 0.48%
           
NET INTEREST MARGIN/SPREAD          
           
Net interest spread 4.25% 4.47% 4.61% 4.16% 3.87%
Net interest margin - quarter-to-date 4.34% 4.54% 4.70% 4.27% 3.96%
Net interest margin - year-to-date 4.44% 4.54% 4.21% 4.08% 3.98%
           
Simmons First National Corporation         SFNC 
Consolidated - Selected Financial Data           
For the Quarters Ended   Jun 30   Mar 31   Dec 31   Sep 30   Jun 30 
(Unaudited)   2014   2014   2013   2013   2013 
($ in thousands, except share data)          
QUARTER-TO-DATE          
Diluted earnings per share   $ 0.60  $ 0.27  $ 0.23  $ 0.43  $ 0.40
Core earnings (excludes nonrecurring items) (non-GAAP)   9,153  7,482  7,749  7,371  6,409
Diluted core earnings per share (non-GAAP)   0.56  0.46  0.48  0.45  0.39
Cash dividends declared per common share   0.22  0.22  0.21  0.21  0.21
Cash dividends declared - amount   3,589  3,575  3,403  3,401  3,434
Return on average stockholders' equity  9.60% 4.31% 3.67% 6.80% 6.46%
Return on tangible equity  12.72% 5.94% 4.51% 8.18% 7.76%
Return on average assets  0.91% 0.40% 0.39% 0.80% 0.76%
Net interest margin (FTE)  4.34% 4.54% 4.70% 4.27% 3.96%
FTE adjustment - investments   1,687  1,682  1,442  1,313  1,083
FTE adjustment - loans   8  10  17  11  12
Amortization of intangibles   452  453  192  135  137
Amortization of intangibles, net of taxes   275  275  117  82  83
Average shares outstanding   16,318,003  16,270,149  16,210,480  16,220,199  16,414,893
Average earning assets   3,892,202  3,861,632  3,466,530  3,059,023  3,106,504
Average interest bearing liabilities   3,098,540  3,204,356  2,774,880  2,427,714  2,481,430
           
YEAR-TO-DATE          
Diluted earnings per share   $ 0.87  $ 0.27  $ 1.42  $ 1.19  $ 0.76
Core earnings (excludes nonrecurring items) (non-GAAP)   16,635  7,482  27,612  19,863  12,492
Diluted core earnings per share (non-GAAP)   1.02  0.46  1.69  1.21  0.76
Cash dividends declared per common share   0.44  0.22  0.84  0.63  0.42
Cash dividends declared - amount   7,164  3,575  13,707  10,304  6,903
Return on average stockholders' equity  6.99% 4.31% 5.33% 6.39% 6.18%
Return on tangible equity  9.38% 5.94% 6.36% 7.68% 7.43%
Return on average assets  0.66% 0.40% 0.64% 0.75% 0.72%
Net interest margin (FTE)  4.44% 4.54% 4.21% 4.08% 3.98%
FTE adjustment - investments   3,369  1,682  4,900  3,458  2,145
FTE adjustment - loans   18  10  51  34  23
Amortization of intangibles   905  453  601  409  274
Amortization of intangibles, net of taxes   550  275  365  248  166
Average shares outstanding   16,294,208  16,270,149  16,339,335  16,382,758  16,465,385
Average diluted shares outstanding   16,336,901  16,309,868  16,352,167  16,388,393  16,468,814
Average earning assets   3,876,918  3,861,632  3,224,094  3,105,706  3,129,048
Average interest bearing liabilities   3,151,446  3,204,356  2,551,653  2,477,899  2,503,992
           
END OF PERIOD          
Book value per share   $ 25.36  $ 24.93  $ 24.89  $ 24.88  $ 24.67
Tangible book value per share   19.69  19.23  19.10  20.80  20.74
Shares outstanding   16,331,341  16,311,263  16,226,256  16,198,964  16,289,239
Full-time equivalent employees   1,281  1,321  1,343  1,097  1,114
Total number of ATM's   120  120  157  106  110
Total number of financial centers   104  104  131  87  92
Parent company only - investment in subsidiaries   449,591  453,067  452,688  371,531  369,965
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   Jun 30   Mar 31   Dec 31   Sep 30   Jun 30 
(Unaudited)   2014   2014   2013   2013   2013 
(in thousands, except per share data)          
QUARTER-TO-DATE          
Net Income   $ 9,908  $ 4,352  $ 3,786  $ 6,932  $ 6,576
Nonrecurring items           
Gain on sale of merchant services  (1,000)  --   --   --   -- 
Merger related costs  1,354  1,272  6,413  190  (467)
Loss on sale of securities  --   --   --   --   193
Branch right sizing  (2,011)  3,878  108  533  -- 
Charter consolidation costs  414  --   --   --   -- 
Tax effect  488  (2,020)  (2,558)  (284)  107
Net nonrecurring items   (755)  3,130  3,963  439  (167)
Core earnings (non-GAAP)   $ 9,153  $ 7,482  $ 7,749  $ 7,371  $ 6,409
           
Diluted earnings per share   $ 0.60  $ 0.27  $ 0.23  $ 0.43  $ 0.40
Nonrecurring items           
Gain on sale of merchant services  (0.06)  --   --   --   -- 
Merger related costs  0.08  0.08  0.40  0.01  (0.03)
Loss on sale of securities  --   --   --   --   0.01
Branch right sizing  (0.12)  0.24  0.01  0.03  -- 
Charter consolidation costs  0.03  --   --   --   -- 
Tax effect  0.03  (0.13)  (0.16)  (0.02)  0.01
Net nonrecurring items   (0.04)  0.19  0.25  0.02  (0.01)
Diluted core earnings per share (non-GAAP)   $ 0.56  $ 0.46  $ 0.48  $ 0.45  $ 0.39
           
YEAR-TO-DATE          
Net Income   $ 14,260  $ 4,352  $ 23,231  $ 19,445  $ 12,513
Nonrecurring items           
Gain on sale of merchant services  (1,000)  --   --   --   -- 
Merger related costs  2,626  1,272  6,376  (37)  (227)
Loss on sale of securities  --   --   193  193  193
Branch right sizing  1,867  3,878  641  533  -- 
Charter consolidation costs  414  --   --   --   -- 
Tax effect  (1,532)  (2,020)  (2,829)  (271)  13
Net nonrecurring items   2,375  3,130  4,381  418  (21)
Core earnings (non-GAAP)   $ 16,635  $ 7,482  $ 27,612  $ 19,863  $ 12,492
           
Diluted earnings per share   $ 0.87  $ 0.27  $ 1.42  $ 1.19  $ 0.76
Nonrecurring items           
Gain on sale of merchant services  (0.06)  --   --   --   -- 
Merger related costs  0.16  0.08  0.39  (0.01)  (0.02)
Loss on sale of securities  --   --   0.01  0.01  0.01
Branch right sizing  0.12  0.24  0.04  0.03  -- 
Charter consolidation costs  0.03  --   --   --   -- 
Tax effect  (0.10)  (0.13)  (0.17)  (0.01)  0.01
Net nonrecurring items   0.15  0.19  0.27  0.02  -- 
Diluted core earnings per share (non-GAAP)   $ 1.02  $ 0.46  $ 1.69  $ 1.21  $ 0.76
CONTACT: FOR MORE INFORMATION CONTACT:
         DAVID W. GARNER
         Executive Vice President and Investor Relations Officer
         Simmons First National Corporation
         (870) 541-1000

Source: Simmons First National Corporation

This article appears in: News Headlines

Referenced Stocks: SFNC


Latest News Video





Most Active by Volume

Company Last Sale Change Net / %
BABA $ 93.89 unch
YHOO $ 40.93 1.16 ▼ 2.74%
MSFT $ 47.52 0.84 ▲ 1.80%
RAD $ 5.35 0.06 ▼ 1.11%
BAC $ 16.95 0.09 ▼ 0.53%
ORCL $ 39.80 1.75 ▼ 4.21%
SIRI $ 3.57 0.07 ▼ 1.79%
AAPL $ 100.96 0.83 ▼ 0.82%

As of 9/19/2014, 04:15 PM