Simmons First Announces Record Net Income of $37.1 Million for 2010
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PINE BLUFF, Ark., Jan. 27, 2011 (GLOBE NEWSWIRE) -- Simmons First National
Corporation (Nasdaq:SFNC) today announced net income of $37.1 million for the
year ended December 31, 2010, an increase of $11.9 million, or 47% compared to
the same period in 2009. Diluted earnings per share for the year ended 2010 were
$2.15, compared to $1.74 for 2009.
Net income for the fourth quarter 2010 was $16.6 million, or $0.96 diluted
earnings per share, compared to net income of $6.8 million, or $0.44 diluted
earnings per share for the same period in 2009. This represents an increase of
$9.8 million in net income and $0.52 diluted earnings per share.
On October 15, 2010, 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 substantially
all of the assets and to assume substantially all of the deposits and certain
other liabilities of Security Savings Bank ("SSB") in Olathe, Kansas. In the
fourth quarter 2010, the Company recognized a pre-tax bargain purchase gain of
$18.3 million on this transaction and incurred pre-tax merger related costs of
$2.0 million. As part of the Company's acquisition strategy, the investment
portfolio was liquidated resulting in a pre-tax gain of $317,000. Additionally,
in order to utilize some of the Company's excess liquidity, $58.4 million in
FHLB advances were paid off, which resulted in a one-time pre-payment expense of
$594,000. After taxes, the combined fourth quarter 2010 non-recurring items
contributed $9.7 million to net income, or $0.56 to diluted earnings per share.
On May 14, 2010, 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 substantially all of the
assets and to assume substantially all of the deposits and certain other
liabilities of Southwest Community Bank ("SWCB") in Springfield, Missouri. In
the second quarter 2010, the Company recognized a pre-tax bargain purchase gain
of $3.0 million on this transaction and incurred pre-tax merger related costs of
$0.4 million. After taxes, these non-recurring items contributed $1.6 million to
net income, or $0.09 to diluted earnings per share, for the second quarter and
the year ended 2010.
Excluding all non-recurring items, fourth quarter core earnings were $6.8
million, or $0.40 diluted core earnings per share and excluding all
non-recurring items for the year ended December 31, 2010, core earnings were
$26.0 million, or $1.51 diluted core earnings per share.
"We are excited about our expansion beyond the borders of Arkansas into Missouri
and Kansas. We are pleased with our 2010 results, which resulted in a
significant bargain purchase gain on two acquisitions, record net interest
income, good expense control through our efficiency initiatives and continued
good asset quality compared to the rest of the industry," commented J. Thomas
May, Chairman and CEO. "As expected, while the impact of our November 2009 stock
offering was dilutive to 2010 by approximately $0.25; however, the excess
capital positions us to continue to take advantage of unprecedented acquisition
opportunities through FDIC assisted transactions of failed banks. We have seen
the dilutive impact of the offering over the past five quarters; in contrast,
going forward we will see the accretive impact from our two acquisitions
beginning in the first quarter of 2011."
Total assets were $3.3 billion at December 31, 2010, an increase of 7.2% from
$3.1 billion at December 31, 2009.
Loans
Total loans, excluding those covered by FDIC loss share agreements, were $1.7
billion at December 31, 2010, a decrease of 10.2% from the same period in 2009.
"As expected, we saw a $53 million decrease in our Student Loan Portfolio as a
result of the irrational decision by the administration and congress to
eliminate the private sector from providing student loans. Additionally, like
the rest of the industry, we continue to experience weak loan demand as a result
of the recession. We believe loan demand is likely to remain soft throughout
2011, but we are committed and positioned to meet the borrowing needs of our
consumer and business customers," commented May. Loans covered by FDIC loss
share agreements, which provide 80% guaranteed protection against credit risk on
those covered assets, were $232 million at December 31, 2010.
Deposits
At December 31, 2010, total deposits were $2.6 billion, an increase of $177
million, or 7.3% compared to the same period in 2009. The December 31, 2010,
deposits include $231 million of previously acquired deposits in Missouri and
Kansas. "In both acquisitions, we made a strategic decision to redeem brokered
deposits and reduce non-core deposits by lowering interest rates to manage cost
of funds and utilize excess liquidity. As expected, since the acquisition date,
deposits have decreased $79 million in Springfield and $125 million in Kansas.
We are very pleased with our non-time deposits as a percent of total deposits,
which is a very favorable 63%," commented May.
Net Interest Income
The Company's net interest income for the fourth quarter of 2010 increased 4.2%
to a record $26.3 million compared to the same period of 2009. Net interest
margin decreased 17 basis points to 3.60% from the fourth quarter of 2009. The
decrease was the result of the impact from the pre-payment of FHLB advances
related to the SSB transaction, the decrease in the loan portfolio and a higher
level of liquidity than planned. The yield on earning assets was 4.52%, a
decrease of 45 basis points from the fourth quarter of 2009 and the rate on the
cost of funds was 1.12%, a decrease of 30 basis points.
Non-Interest Income
Non-interest income for the fourth quarter increased $20.7 million, or 160.3%,
to $33.7 million compared to $12.9 million for the fourth quarter of 2009.
Excluding the bargain purchase gains and securities gains, non-interest income
increased $2.1 million, or 16.58% from the fourth quarter of 2009. This increase
is primarily the result of volume increases in both mortgage refinancing and
credit card operations.
Non-Interest Expense
Non-interest expense for the fourth quarter of 2010 was $30.5 million, an
increase of 18.15% from $25.8 million for the fourth quarter of 2009. Included
in fourth quarter 2010 non-interest expense is $2.0 million in merger related
costs associated with the previously mentioned FDIC assisted acquisitions and
incremental operating expenses related to the acquisitions in Missouri and
Kansas. Excluding the non-recurring items and additional expenses related to the
acquisitions, non-interest expense increased $133,000, or 0.5%. "Obviously, we
are beginning to see the positive impact from our efficiency initiatives,"
according to May.
Asset Quality
During 2010, the Company acquired substantially all of the loans and foreclosed
real estate ("OREO") of SWCB and SSB. 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 such loans and OREO. The loans
and OREO covered by the FDIC loss share agreements and the related FDIC loss
share receivable were presented in the Company's financial reports as "covered"
assets (i.e., covered by the FDIC loss share agreements) with a carrying value
equal to the discounted net present value of expected future proceeds. At
December 31, 2010, loans covered by loss share were carried at $232 million (net
of discount), OREO covered by loss share was carried at $9 million (net of
discount) and the FDIC loss share receivable was carried at $60 million. As a
result of the FDIC loss share indemnification related to these assets and the
discounted net present value method of valuing these assets, such assets are
excluded from the computations of the following asset quality ratios, except for
their inclusion in total assets.
Nonperforming assets as a percent of total assets were 1.12% as of December 31,
2010, a decrease from 1.23% as of September 30, 2010. Nonperforming loans as a
percent of total loans were 0.83% as of December 31, 2010, an increase of 8
basis points from 0.75% as of September 30, 2010. These ratios include
approximately $1.7 million of Government guaranteed student loans that were over
90 days past due at the end of the quarter. Excluding the guaranteed past due
student loans, non-performing assets as a percent of total assets were 1.07% and
non-performing loans as a percent of total loans were 0.72%.
Excluding credit cards, the Company's annualized net charge-off ratio was 0.52%
for the fourth quarter of 2010. The credit card annualized net charge-off ratio
decreased to 2.14%, compared to 2.24% for the third quarter of 2010. The
Company's credit card loss ratio is more than 600 basis points below the most
recently published credit card charge-off industry average of over 8.5%.
For the fourth quarter of 2010, the Company's provision for loan losses was $3.7
million, compared to $3.4 million for the third quarter of 2010 and $2.8 million
for the fourth quarter of 2009. The Company's allowance for loan losses was
$26.4 million at December 31, 2010, or 1.57% of total loans and 190% of
non-performing loans.
Capital
At December 31, 2010, stockholders' equity was $397 million, book value per
share was $23.01, and tangible book value per share was $19.36. The Company's
ratio of stockholders' equity to total assets was 12.0% and its ratio of
tangible stockholders' equity to tangible assets was 10.28%, as of December 31,
2010.
"Our exceptional level of capital puts us in the 97th 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, 2010, the Company's regulatory capital ratios remain significantly
higher than regulatory "well capitalized" guidelines:
"Well
Capitalized" SFNC
------------ ------
Tier 1 Leverage Ratio 5.00% 11.33%
Tier 1 Risk-Based Capital Ratio 6.00% 20.05%
Total Risk-Based Capital Ratio 10.00% 21.30%
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. Including the recently
acquired Kansas locations, the Company's eight banks conduct financial
operations from 89 offices, of which 85 are financial centers, in 47 communities
in Arkansas, Missouri and Kansas. 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 27, 2011. Interested persons can
listen to this call by dialing 1-800-854-4175 (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 February 4,
2011, by dialing 1-800-642-1687. The passcode for the replay is 33464347. 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) 2010 2010 2010 2010
2009
------------ ------------ ------------ ------------
------------
(in thousands)
ASSETS
Cash and
non-interest
bearing balances
due from banks $ 33,717 $ 77,874 $ 80,883 $ 61,975
$ 71,575
Interest bearing
balances due from
banks 418,343 247,300 161,443 365,396
282,010
Federal funds sold -- 750 2,750 --
--
------------ ------------ ------------ ------------
------------
Cash and cash
equivalents 452,060 325,924 245,076 427,371
353,585
Investment
securities -
held-to-maturity 465,183 461,548 436,018 432,004
464,061
Investment
securities -
available-for-sale 148,479 183,942 224,031 156,096
182,854
Mortgage loans
held for sale 17,237 25,383 18,298 6,930
8,397
Assets held in
trading accounts 7,577 7,412 7,827 7,521
6,886
Loans 1,683,464 1,739,554 1,822,028 1,849,960
1,874,989
Allowance for
loan losses (26,416) (25,682) (25,881) (25,047)
(25,016)
------------ ------------ ------------ ------------
------------
Net loans 1,657,048 1,713,872 1,796,147 1,824,913
1,849,973
Covered assets:
Loans, net of
discount 231,600 38,160 39,346 --
--
Other real
estate owned,
net of discount 8,717 2,650 3,609 --
--
FDIC
indemnification
asset 60,235 9,600 12,614 --
--
Premises and
equipment 77,199 77,967 76,349 77,408
78,126
Foreclosed assets
held for sale, net 23,204 23,903 20,091 18,744
9,179
Interest
receivable 17,363 16,884 16,264 16,421
17,881
Bank owned life
insurance 49,072 48,662 48,258 47,667
40,920
Goodwill 60,605 60,605 60,605 60,605
60,605
Core deposit
premiums 2,463 1,194 1,381 1,568
1,769
Other assets 38,390 20,451 19,211 20,251
19,086
------------ ------------ ------------ ------------
------------
Total assets $ 3,316,432 $ 3,018,157 $ 3,025,125 $ 3,097,499 $
3,093,322
============ ============ ============ ============
============
LIABILITIES AND
STOCKHOLDERS'
EQUITY
Deposits:
Non-interest
bearing
transaction
accounts $ 428,750 $ 374,494 $ 358,171 $ 385,495
$ 363,154
Interest bearing
transaction
accounts and
savings deposits 1,220,133 1,146,433 1,172,746 1,167,836
1,156,264
Time deposits
less than
$100,000 599,537 483,285 496,809 482,181
492,217
Time deposits
greater than
$100,000 360,349 377,957 365,868 392,757
420,537
------------ ------------ ------------ ------------
------------
Total deposits 2,608,769 2,382,169 2,393,594 2,428,269
2,432,172
Federal funds
purchased and
securities sold
under agreements
to repurchase 109,139 85,561 84,456 131,750
105,910
Short-term debt 1,033 1,728 3,202 3,263
3,640
Long-term debt 164,324 136,829 138,893 139,183
159,823
Accrued interest
and other
liabilities 35,796 27,901 25,836 21,780
20,530
------------ ------------ ------------ ------------
------------
Total
liabilities 2,919,061 2,634,188 2,645,981 2,724,245
2,722,075
------------ ------------ ------------ ------------
------------
Stockholders'
equity:
Preferred stock -- -- -- --
--
Common stock 173 172 172 172
171
Surplus 114,040 113,376 112,851 112,250
111,694
Undivided profits 282,646 269,369 265,021 260,310
258,620
Accumulated other
comprehensive
income
Unrealized
appreciation on
AFS securities 512 1,052 1,100 522
762
------------ ------------ ------------ ------------
------------
Total
stockholders'
equity 397,371 383,969 379,144 373,254
371,247
------------ ------------ ------------ ------------
------------
Total
liabilities
and
stockholders'
equity $ 3,316,432 $ 3,018,157 $ 3,025,125 $ 3,097,499 $
3,093,322
============ ============ ============ ============
============
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) 2010 2010 2010 2010
2009
------------ ------------ ------------ ------------
------------
(in thousands)
ASSETS
Cash and
non-interest
bearing balances
due from banks $ 71,780 $ 75,606 $ 76,983 $ 75,267
$ 74,862
Interest bearing
balances due from
banks 400,174 159,996 240,847 290,990
292,219
Federal funds sold 1,208 3,477 1,044 1,015
1,280
------------ ------------ ------------ ------------
------------
Cash and cash
equivalents 473,162 239,079 318,874 367,272
368,361
Investment
securities -
held-to-maturity 462,328 457,368 421,878 453,740
408,431
Investment
securities -
available-for-sale 180,634 197,419 228,972 186,503
172,290
Mortgage loans
held for sale 27,832 19,842 13,560 5,815
8,603
Assets held in
trading accounts 7,615 7,438 7,092 6,968
8,260
Loans 1,697,937 1,809,902 1,831,766 1,863,850
1,898,629
Allowance for
loan losses (23,316) (26,396) (25,584) (25,849)
(26,021)
------------ ------------ ------------ ------------
------------
Net loans 1,674,621 1,783,506 1,806,182 1,838,001
1,872,608
Covered assets:
Loans, net of
discount 256,619 38,956 24,074 --
--
Other real
estate owned,
net of discount 12,978 3,056 2,632 --
--
FDIC
indemnification
asset 32,008 12,601 4,544 --
--
Premises and
equipment 77,876 76,673 77,330 77,939
78,636
Foreclosed assets
held for sale, net 23,658 22,540 18,727 9,238
7,049
Interest
receivable 18,325 15,451 16,928 17,005
20,582
Bank owned life
insurance 48,868 48,463 47,915 42,023
40,761
Goodwill 60,605 60,605 60,605 60,605
60,605
Core deposit
premiums 1,612 1,300 1,484 1,684
1,869
Other assets 20,515 18,800 20,415 18,308
7,605
------------ ------------ ------------ ------------
------------
Total assets $ 3,379,256 $ 3,003,097 $ 3,071,212 $ 3,085,101 $
3,055,660
============ ============ ============ ============
============
LIABILITIES AND
STOCKHOLDERS'
EQUITY
Deposits:
Non-interest
bearing
transaction
accounts $ 416,343 $ 363,599 $ 366,340 $ 357,483
$ 347,279
Interest bearing
transaction
accounts and
savings deposits 1,239,736 1,143,827 1,176,180 1,166,643
1,159,372
Time deposits
less than
$100,000 617,288 493,890 500,070 491,603
507,236
Time deposits
greater than
$100,000 364,481 366,375 385,736 409,137
412,132
------------ ------------ ------------ ------------
------------
Total deposits 2,637,848 2,367,691 2,428,326 2,424,866
2,426,019
------------ ------------ ------------ ------------
------------
Federal funds
purchased and
securities sold
under agreements
to repurchase 111,594 82,708 98,995 114,376
105,295
Short-term debt 2,094 3,241 3,455 3,751
3,802
Long-term debt 166,774 137,631 138,375 145,387
160,215
Accrued interest
and other
liabilities 67,113 27,600 22,890 21,386
25,487
------------ ------------ ------------ ------------
------------
Total
liabilities 2,985,423 2,618,871 2,692,041 2,709,766
2,720,818
------------ ------------ ------------ ------------
------------
Total
stockholders'
equity 393,833 384,226 379,171 375,335
334,842
------------ ------------ ------------ ------------
------------
Total
liabilities
and
stockholders'
equity $ 3,379,256 $ 3,003,097 $ 3,071,212 $ 3,085,101 $
3,055,660
============ ============ ============ ============
============
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) 2010 2010 2010
2010 2009
--------- --------- ---------
--------- ---------
(in thousands, except per share data)
INTEREST INCOME
Loans $ 25,649 $ 26,934 $ 26,691 $
26,788 $ 28,275
Covered loans 3,127 864 213
-- --
Federal funds sold 3 6 2
4 2
Investment securities 4,030 4,182 4,465
4,531 5,029
Mortgage loans held for sale, net of
unrealized gains (losses) 286 210 149
70 119
Assets held in trading accounts 10 7 11
2 7
Interest bearing balances due from
banks 234 123 173
191 204
--------- --------- ---------
--------- ---------
TOTAL INTEREST INCOME 33,339 32,326 31,704
31,586 33,636
--------- --------- ---------
--------- ---------
INTEREST EXPENSE
Time deposits 3,500 3,369 3,522
3,919 4,643
Other deposits 1,156 1,236 1,317
1,518 1,866
Federal funds purchased and
securities
sold under agreements to repurchase 134 126 123
149 172
Short-term debt 13 15 15
15 15
Long-term debt 2,260 1,524 1,522
1,573 1,719
--------- --------- ---------
--------- ---------
TOTAL INTEREST EXPENSE 7,063 6,270 6,499
7,174 8,415
--------- --------- ---------
--------- ---------
NET INTEREST INCOME 26,276 26,056 25,205
24,412 25,221
Provision for loan losses 3,733 3,407 3,758
3,231 2,767
--------- --------- ---------
--------- ---------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 22,543 22,649 21,447
21,181 22,454
--------- --------- ---------
--------- ---------
NON-INTEREST INCOME
Trust income 1,416 1,343 1,170
1,250 1,317
Service charges on deposit accounts 4,272 4,388 4,739
4,301 4,883
Other service charges and fees 716 646 671
779 634
Income on sale of mortgage loans,
net of commissions 2,033 1,242 932
603 834
Income on investment banking, net of
commissions 486 369 776
605 469
Credit card fees 4,448 3,972 4,043
3,677 3,897
Premiums on sale of student loans -- 1,979 545
-- --
Bank owned life insurance income 410 404 566
290 300
Gain on sale of securities 317 -- --
-- --
Gain on FDIC assisted transactions 18,277 -- 3,037
-- --
Other income 1,286 479 769
695 597
--------- --------- ---------
--------- ---------
TOTAL NON-INTEREST INCOME 33,661 14,822 17,248
12,200 12,931
--------- --------- ---------
--------- ---------
NON-INTEREST EXPENSE
Salaries and employee benefits 15,692 14,809 15,064
15,166 14,619
Occupancy expense, net 2,176 1,906 1,844
1,882 1,898
Furniture and equipment expense 1,530 1,542 1,526
1,495 1,572
Other real estate and foreclosure
expense 298 304 314
58 161
Deposit insurance 914 885 1,059
955 687
Merger related costs 2,034 134 443
-- --
Other operating expenses 7,846 7,178 7,026
7,240 6,869
--------- --------- ---------
--------- ---------
TOTAL NON-INTEREST EXPENSE 30,490 26,758 27,276
26,796 25,806
--------- --------- ---------
--------- ---------
NET INCOME BEFORE INCOME TAXES 25,714 10,713 11,419
6,585 9,579
Provision for income taxes 9,154 3,093 3,438
1,629 2,774
--------- --------- ---------
--------- ---------
NET INCOME $ 16,560 $ 7,620 $ 7,981 $
4,956 $ 6,805
========= ========= =========
========= =========
BASIC EARNINGS PER SHARE $ 0.96 $ 0.45 $ 0.46 $
0.29 $ 0.44
========= ========= =========
========= =========
DILUTED EARNINGS PER SHARE $ 0.96 $ 0.44 $ 0.46 $
0.29 $ 0.44
========= ========= =========
========= =========
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) 2010 2010 2010
2010 2009
---------- --------- ---------
--------- ----------
(in thousands, except per share data)
INTEREST INCOME
Loans $ 106,062 $ 80,413 $ 53,479 $
26,788 $ 113,648
Covered loans 4,204 1,077 213
-- --
Federal funds sold 15 12 7
4 27
Investment securities 17,208 13,178 8,997
4,531 21,791
Mortgage loans held for sale, net of
unrealized gains (losses) 715 429 218
70 608
Assets held in trading accounts 30 20 13
2 20
Interest bearing balances due from
banks 721 487 364
191 439
---------- --------- ---------
--------- ----------
TOTAL INTEREST INCOME 128,955 95,616 63,291
31,586 136,533
---------- --------- ---------
--------- ----------
INTEREST EXPENSE
Time deposits 14,310 10,810 7,441
3,919 22,794
Other deposits 5,227 4,071 2,835
1,518 8,252
Federal funds purchased and
securities sold under agreements to
repurchase 532 398 273
149 769
Short-term debt 58 45 30
15 33
Long-term debt 6,879 4,619 3,095
1,573 6,958
---------- --------- ---------
--------- ----------
TOTAL INTEREST EXPENSE 27,006 19,943 13,674
7,174 38,806
---------- --------- ---------
--------- ----------
NET INTEREST INCOME 101,949 75,673 49,617
24,412 97,727
Provision for loan losses 14,129 10,396 6,990
3,231 10,316
---------- --------- ---------
--------- ----------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 87,820 65,277 42,627
21,181 87,411
---------- --------- ---------
--------- ----------
NON-INTEREST INCOME
Trust income 5,179 3,763 2,420
1,250 5,227
Service charges on deposit accounts 17,700 13,428 9,040
4,301 17,944
Other service charges and fees 2,812 2,096 1,451
779 2,668
Income on sale of mortgage loans,
net of commissions 4,810 2,777 1,535
603 4,032
Income on investment banking, net of
commissions 2,236 1,750 1,381
605 2,153
Credit card fees 16,140 11,692 7,720
3,677 14,392
Premiums on sale of student loans 2,524 2,524 545
-- 2,333
Bank owned life insurance income 1,670 1,260 857
290 1,270
Gain on sale of securities 317 -- --
-- 144
Gain on FDIC assisted transactions 21,314 3,037 3,037
-- --
Other income 3,229 1,943 1,463
695 2,548
---------- --------- ---------
--------- ----------
TOTAL NON-INTEREST INCOME 77,931 44,270 29,449
12,200 52,711
---------- --------- ---------
--------- ----------
NON-INTEREST EXPENSE
Salaries and employee benefits 60,731 45,039 30,230
15,166 58,317
Occupancy expense, net 7,808 5,632 3,726
1,882 7,457
Furniture and equipment expense 6,093 4,563 3,021
1,495 6,195
Other real estate and foreclosure
expense 974 676 372
58 453
Deposit insurance 3,813 2,899 2,014
955 4,642
Merger related costs 2,611 577 443
-- --
Other operating expenses 29,290 21,444 14,265
7,240 27,658
---------- --------- ---------
--------- ----------
TOTAL NON-INTEREST EXPENSE 111,320 80,830 54,071
26,796 104,722
---------- --------- ---------
--------- ----------
NET INCOME BEFORE INCOME TAXES 54,431 28,717 18,005
6,585 35,400
Provision for income taxes 17,314 8,160 5,068
1,629 10,190
---------- --------- ---------
--------- ----------
NET INCOME $ 37,117 $ 20,557 $ 12,937 $
4,956 $ 25,210
========== ========= =========
========= ==========
BASIC EARNINGS PER SHARE $ 2.16 $ 1.20 $ 0.75 $
0.29 $ 1.75
========== ========= =========
========= ==========
DILUTED EARNINGS PER SHARE $ 2.15 $ 1.19 $ 0.75 $
0.29 $ 1.74
========== ========= =========
========= ==========
Simmons First National
Corporation
SFNC
Consolidated
Risk-Based
Capital
For the
Quarters Ended Dec 31 Sep 30 Jun 30 Mar 31 Dec
31
(Unaudited) 2010 2010 2010 2010
2009
------------ ------------ ------------ ------------
------------
(in thousands)
Tier 1 capital
Stockholders'
equity $ 397,371 $ 383,969 $ 379,144 $ 373,254 $
371,247
Trust
preferred
securities,
net allowable 30,000 30,000 30,000 30,000
30,000
Disallowed
intangible
assets, net
of deferred
tax (49,953) (48,986) (49,476) (50,503)
(51,128)
Unrealized
gain on AFS
securities (512) (1,052) (1,100) (522)
(762)
------------ ------------ ------------ ------------
------------
Total Tier
1 capital 376,906 363,931 358,568 352,229
349,357
------------ ------------ ------------ ------------
------------
Tier 2 capital
Qualifying
unrealized
gain on AFS
equity
securities 7 4 1 8
5
Qualifying
allowance for
loan losses 23,553 23,729 23,737 23,574
24,405
------------ ------------ ------------ ------------
------------
Total Tier
2 capital 23,560 23,733 23,738 23,582
24,410
------------ ------------ ------------ ------------
------------
Total
risk-based
capital $ 400,466 $ 387,664 $ 382,306 $ 375,811 $
373,767
============ ============ ============ ============
============
Risk weighted
assets $ 1,879,832 $ 1,894,845 $ 1,895,258 $ 1,882,902 $
1,950,227
============ ============ ============ ============
============
Adjusted
average assets
for leverage
ratio $ 3,327,825 $ 2,952,227 $ 3,020,704 $ 3,033,367 $
3,002,275
============ ============ ============ ============
============
Ratios at end
of quarter
Equity to
assets 11.98% 12.72% 12.53% 12.05%
12.00%
Tangible
common equity
to tangible
assets 10.28% 10.90% 10.70% 10.25%
10.19%
Tier 1
leverage
ratio 11.33% 12.33% 11.87% 11.61%
11.64%
Tier 1
risk-based
capital ratio 20.05% 19.21% 18.92% 18.71%
17.91%
Total
risk-based
capital ratio 21.30% 20.46% 20.17% 19.96%
19.17%
Simmons First National
Corporation
SFNC
Consolidated Loans
and Investments
For the Quarters
Ended Dec 31 Sep 30 Jun 30 Mar 31
Dec 31
(Unaudited) 2010 2010 2010 2010
2009
------------ ------------ ------------ ------------
------------
(in thousands)
Loan Portfolio -
End of Period (1)
Consumer
Credit cards $ 190,329 $ 181,774 $ 180,591 $ 177,959
$ 189,154
Student loans 61,305 64,989 133,012 153,291
114,296
Other consumer 118,581 123,062 127,343 131,735
139,647
------------ ------------ ------------ ------------
------------
Total consumer 370,215 369,825 440,946 462,985
443,097
Real Estate
Construction 153,772 150,137 153,869 173,080
180,759
Single-family
residential 364,442 375,150 386,570 389,257
392,208
Other commercial 548,360 566,370 574,859 592,728
596,517
------------ ------------ ------------ ------------
------------
Total real
estate 1,066,574 1,091,657 1,115,298 1,155,065
1,169,484
Commercial
Commercial 150,501 146,258 151,817 155,970
168,206
Agricultural 86,171 121,716 104,247 65,964
84,866
Financial
institutions -- -- -- 4,093
3,885
------------ ------------ ------------ ------------
------------
Total
commercial 236,672 267,974 256,064 226,027
256,957
Other 10,004 10,098 9,720 5,883
5,451
------------ ------------ ------------ ------------
------------
Total Loans $ 1,683,465 $ 1,739,554 $ 1,822,028 $ 1,849,960 $
1,874,989
============ ============ ============ ============
============
(1) Excludes loans covered by
FDIC loss share agreements.
Investment
Securities - End
of Period
Held-to-Maturity
U.S. Treasury $ 4,000 $ 4,000 $ 4,000 $ --
$ --
U.S. Government
agencies 249,844 250,927 224,928 221,885
254,229
Mortgage-backed
securities 78 81 84 88
90
State and
political
subdivisions 210,331 205,610 206,076 209,101
208,812
Other securities 930 930 930 930
930
------------ ------------ ------------ ------------
------------
Total
held-to-maturit
y 465,183 461,548 436,018 432,004
464,061
------------ ------------ ------------ ------------
------------
Available-for-Sal
e
U.S. Treasury -- -- 300 4,008
4,329
U.S. Government
agencies 125,469 166,624 206,497 135,038
161,524
Mortgage-backed
securities 2,789 2,993 3,008 2,996
2,972
FHLB stock 11,508 7,549 7,490 7,484
7,477
Other securities 8,713 6,776 6,736 6,570
6,552
------------ ------------ ------------ ------------
------------
Total
available-for-s
ale 148,479 183,942 224,031 156,096
182,854
------------ ------------ ------------ ------------
------------
Total
investment
securities $ 613,662 $ 645,490 $ 660,049 $ 588,100
$ 646,915
============ ============ ============ ============
============
Fair value -
HTM investment
securities $ 466,907 $ 469,101 $ 440,603 $ 435,810
$ 465,665
============ ============ ============ ============
============
Investment
Securities - QTD
Average
Taxable
securities $ 435,839 $ 448,978 $ 443,946 $ 432,736
$ 370,538
Tax exempt
securities 207,123 205,809 206,904 207,507
210,183
------------ ------------ ------------ ------------
------------
Total investment
securities - QTD
average $ 642,962 $ 654,787 $ 650,850 $ 640,243
$ 580,721
============ ============ ============ ============
============
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) 2010 2010 2010 2010 2009
--------- --------- --------- --------- ---------
(in thousands)
Allowance for
Loan Losses
Balance,
beginning of
quarter $ 25,682 $ 25,881 $ 25,047 $ 25,016 $ 25,830
--------- --------- --------- --------- ---------
Loans charged
off
Credit cards 1,218 1,329 1,339 1,435 1,353
Other
consumer 560 559 852 500 1,048
Real estate 1,361 3,548 2,254 2,401 1,245
Commercial 567 164 288 227 633
--------- --------- --------- --------- ---------
Total loans
charged off 3,706 5,600 4,733 4,563 4,279
--------- --------- --------- --------- ---------
Recoveries of
loans
previously
charged off
Credit cards 225 308 273 229 263
Other
consumer 128 150 313 293 118
Real estate 275 1,512 1,169 701 141
Commercial 79 24 54 140 176
--------- --------- --------- --------- ---------
Total
recoveries 707 1,994 1,809 1,363 698
--------- --------- --------- --------- ---------
Net loans
charged off 2,999 3,606 2,924 3,200 3,581
Provision for
loan losses 3,733 3,407 3,758 3,231 2,767
--------- --------- --------- --------- ---------
Balance, end
of quarter $ 26,416 $ 25,682 $ 25,881 $ 25,047 $ 25,016
========= ========= ========= ========= =========
Non-performing
assets (1)
Non-performin
g loans
Nonaccrual
loans
Real estate $ 8,345 7,588 10,930 8,442 18,358
Commercial 1,314 1,160 1,091 1,673 1,776
Consumer 1,527 1,251 1,403 1,604 1,860
--------- --------- --------- --------- ---------
Total
nonaccrual
loans 11,186 9,999 13,424 11,719 21,994
Loans past
due 90 days
or more
Government
guaranteed
student
loans 1,736 2,154 3,230 2,464 1,939
Other loans 969 891 644 1,132 1,383
--------- --------- --------- --------- ---------
Total
loans past
due 90
days or
more 2,705 3,045 3,874 3,596 3,322
--------- --------- --------- --------- ---------
Total
non-perfo
rming
loans 13,891 13,044 17,298 15,315 25,316
--------- --------- --------- --------- ---------
Other
non-performin
g assets
Foreclosed
assets held
for sale 23,204 23,903 20,091 18,744 9,179
Other
non-performi
ng assets 109 104 128 15 20
--------- --------- --------- --------- ---------
Total other
non-perform
ing assets 23,313 24,007 20,219 18,759 9,199
--------- --------- --------- --------- ---------
Total
non-perfor
ming
assets $ 37,204 $ 37,051 $ 37,517 $ 34,074 $ 34,515
========= ========= ========= ========= =========
Ratios (1)
Allowance for
loan losses
to total
loans 1.57% 1.48% 1.42% 1.35% 1.33%
Allowance for
loan losses
to
non-performin
g loans 190.17% 196.89% 149.62% 163.55% 98.81%
Non-performin
g loans to
total loans 0.83% 0.75% 0.95% 0.83% 1.35%
Non-performin
g assets to
total assets 1.12% 1.23% 1.24% 1.10% 1.12%
Non-performin
g assets to
total assets
(excluding
Gov't
guaranteed
student
loans) 1.07% 1.16% 1.13% 1.02% 1.05%
Annualized
net charge
offs to total
loans 0.70% 0.79% 0.64% 0.70% 0.75%
Annualized
net credit
card charge
offs to total
credit card
loans 2.14% 2.24% 2.41% 2.71% 2.41%
Annualized
net charge
offs to total
loans
(excluding
credit cards) 0.52% 0.63% 0.45% 0.48% 0.57%
Past due
loans >30
days
(excluding
nonaccrual) 0.95% 0.74% 0.56% 1.02% 0.81%
(1) Excludes assets covered by FDIC loss share agreements, except for
their inclusion in total assets.
Simmons First National Corporation SFNC
Consolidated - Net Interest Income
Analysis
Dec Sep Jun Mar
For the Quarters Ended 31 30 30 31 Dec 31
(Unaudited) 2010 2010 2010 2010 2009
----- ----- ----- ----- ------
ASSETS
Earning Assets
Interest bearing balances due from
banks 0.23% 0.31% 0.29% 0.27% 0.28%
Federal funds sold 0.99% 0.68% 0.77% 1.60% 0.62%
Investment securities 3.24% 3.29% 3.52% 3.66% 4.30%
Mortgage loans held for sale 4.08% 4.20% 4.41% 4.88% 5.49%
Assets held in trading accounts 0.52% 0.37% 0.62% 0.12% 0.34%
Loans, including covered loans (1) 5.84% 5.97% 5.82% 5.83% 5.92%
Total interest earning assets 4.52% 4.94% 4.77% 4.74% 4.97%
LIABILITIES
Interest bearing liabilities
Interest bearing transaction and
savings accounts 0.37% 0.43% 0.45% 0.53% 0.64%
Time deposits 1.41% 1.55% 1.59% 1.76% 2.00%
Total interest bearing deposits 0.83% 0.91% 0.94% 1.07% 1.24%
Federal funds purchased and
securities sold under agreement
to repurchase 0.48% 0.60% 0.50% 0.53% 0.65%
Short-term debt 2.46% 1.84% 1.74% 1.62% 1.57%
Long-term debt 5.38% 4.39% 4.41% 4.39% 4.26%
Total interest bearing
liabilities 1.12% 1.12% 1.13% 1.25% 1.42%
NET INTEREST MARGIN/SPREAD
Net interest spread 3.40% 3.82% 3.64% 3.49% 3.55%
Net interest margin -
quarter-to-date 3.60% 4.02% 3.83% 3.71% 3.77%
Net interest margin - year-to-date 3.78% 3.85% 3.77% 3.71% 3.78%
(1) 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) 2010 2010 2010
2010 2009
----------- ----------- -----------
----------- -----------
(in thousands, except share data)
QUARTER-TO-DATE
Diluted earnings per share $ 0.96 $ 0.44 $ 0.46
$ 0.29 $ 0.44
Core earnings (excludes
nonrecurring items) (non-GAAP) 6,856 7,701 6,528
4,956 6,805
Diluted core earnings per share
(non-GAAP) 0.40 0.44 0.38
0.29 0.44
Cash dividends declared per
common share 0.19 0.19 0.19
0.19 0.19
Cash dividends declared - amount 3,282 3,273 3,270
3,266 3,248
Return on average stockholders'
equity 16.68% 7.87% 8.44%
5.36% 8.06%
Return on tangible equity 19.97% 9.52% 10.24%
6.58% 10.10%
Return on average assets 1.94% 1.01% 1.04%
0.65% 0.88%
Net interest margin (FTE) 3.60% 4.02% 3.83%
3.71% 3.77%
FTE adjustment - investments 1,216 1,243 1,245
1,250 1,265
FTE adjustment - loans 14 14 14
16 37
Amortization of intangibles 211 187 187
201 201
Amortization of intangibles, net
of taxes 128 114 114
127 127
Average shares outstanding 17,255,366 17,220,572 17,199,705
17,139,732 15,432,821
Average earning assets 3,034,347 2,694,398 2,769,233
2,808,881 2,789,712
Average interest bearing
liabilities 2,501,967 2,227,672 2,302,811
2,330,897 2,348,052
YEAR-TO-DATE
Diluted earnings per share $ 2.15 $ 1.19 $ 0.75
$ 0.29 $ 1.74
Core earnings (excludes
nonrecurring items) (non-GAAP) 26,041 19,185 11,484
4,956 25,210
Diluted core earnings per share
(non-GAAP) 1.51 1.11 0.67
0.29 1.74
Cash dividends declared per
common share 0.76 0.57 0.38
0.19 0.76
Return on average stockholders'
equity 9.69% 7.24% 6.92%
5.36% 8.26%
Return on tangible equity 11.71% 8.80% 8.43%
6.58% 10.61%
Return on average assets 1.18% 0.90% 0.85%
0.65% 0.85%
Net interest margin (FTE) 3.78% 3.85% 3.77%
3.71% 3.78%
FTE adjustment - investments 4,954 3,738 2,495
1,250 4,737
FTE adjustment - loans 58 44 30
16 198
Amortization of intangibles 786 575 388
201 806
Amortization of intangibles, net
of taxes 483 355 241
127 508
Average shares outstanding 17,204,200 17,186,957 17,169,872
17,139,732 14,375,323
Average diluted shares
outstanding 17,264,900 17,248,878 17,237,990
17,212,980 14,465,718
Average earning assets 2,826,718 2,757,509 2,789,058
2,808,881 2,713,330
Average interest bearing
liabilities 2,340,838 2,287,127 2,316,854
2,330,897 2,302,839
END OF PERIOD
Book value per share $ 23.01 $ 22.28 $ 22.03
$ 21.72 $ 21.72
Tangible book value per share 19.36 18.70 18.43
18.10 18.07
Shares outstanding 17,271,594 17,230,920 17,209,973
17,186,263 17,093,931
Full-time equivalent employees 1,075 1,029 1,045
1,057 1,091
Total number of ATM's 103 93 93
93 93
Total number of financial
centers 85 85 76
84 84
Parent company only - investment
in subsidiaries 370,402 322,730 319,814
305,182 303,183
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) 2010 2010 2010 2010
2009
--------- --------- ---------
-------- ---------
(in thousands, except per share data)
QUARTER-TO-DATE
Net Income $ 16,560 $ 7,620 $ 7,981 $
4,956 $ 6,805
Nonrecurring items
Gain on FDIC assisted transactions (18,277) -- (3,037)
-- --
Merger related costs 2,034 134 443
-- --
Gains from sale of securities (1) (318) -- --
-- --
FHLB prepayment penalties (2) 594 -- --
-- --
Branch right sizing -- -- 372
-- --
Tax effect (3) 6,263 (53) 769
-- --
--------- --------- ---------
-------- ---------
Net nonrecurring items (9,704) 81 (1,453)
-- --
--------- --------- ---------
-------- ---------
Core earnings (non-GAAP) $ 6,856 $ 7,701 $ 6,528 $
4,956 $ 6,805
========= ========= =========
======== =========
Diluted earnings per share $ 0.96 $ 0.44 $ 0.46 $
0.29 $ 0.44
Nonrecurring items
Gain on FDIC assisted transactions (1.05) -- (0.18)
-- --
Merger related costs 0.12 -- 0.03
-- --
Gains from sale of securities (1) (0.02) -- --
-- --
FHLB prepayment penalties (2) 0.03 -- --
-- --
Branch right sizing -- -- 0.02
-- --
Tax effect (3) 0.36 -- 0.05
-- --
--------- --------- ---------
-------- ---------
Net nonrecurring items (0.56) -- (0.08)
-- --
--------- --------- ---------
-------- ---------
Diluted core earnings per share
(non-GAAP) $ 0.40 $ 0.44 $ 0.38 $
0.29 $ 0.44
========= ========= =========
======== =========
YEAR-TO-DATE
Net Income $ 37,117 $ 20,557 $ 12,937 $
4,956 $ 25,210
Nonrecurring items
Gain on FDIC assisted transactions (21,314) (3,037) (3,037)
-- --
Merger related costs 2,611 577 443
-- --
Gains from sale of securities (1) (318) -- --
-- --
FHLB prepayment penalties (2) 594 -- --
-- --
Branch right sizing 372 372 372
-- --
Tax effect (3) 6,979 716 769
-- --
--------- --------- ---------
-------- ---------
Net nonrecurring items (11,076) (1,372) (1,453)
-- --
--------- --------- ---------
-------- ---------
Core earnings (non-GAAP) $ 26,041 $ 19,185 $ 11,484 $
4,956 $ 25,210
========= ========= =========
======== =========
Diluted earnings per share $ 2.15 $ 1.19 $ 0.75 $
0.29 $ 1.74
Nonrecurring items
Gain on FDIC assisted transactions (1.23) (0.18) (0.18)
-- --
Merger related costs 0.15 0.03 0.03
-- --
Gains from sale of securities (1) (0.02) -- --
-- --
FHLB prepayment penalties (2) 0.03 -- --
-- --
Branch right sizing 0.02 0.02 0.02
-- --
Tax effect (3) 0.41 0.05 0.05
-- --
--------- --------- ---------
-------- ---------
Net nonrecurring items (0.64) (0.08) (0.08)
-- --
--------- --------- ---------
-------- ---------
Diluted core earnings per share
(non-GAAP) $ 1.51 $ 1.11 $ 0.67 $
0.29 $ 1.74
========= ========= =========
======== =========
(1) Gains from sale of securities marked for sale at time of FDIC assisted
transaction.
(2) Penalties for prepayment of FHLB advances marked for sale at time of FDIC
assisted
transaction.
(3) Effective tax rate of 39.225%, adjusted for additional fair value
deduction related to
donation of closed branch.
CONTACT: David W. Garner
Senior Vice President and Investor Relations Officer
Simmons First National Corporation
(870) 541-1000
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