SFNC Simmons First National Corporation

Simmons First National Corporation (NASDAQ-GS: SFNC) today announced record earnings for the three and nine-month periods ended September 30, 2006. Net income for the third quarter was $7.4 million, or $0.51 diluted earnings per share, compared to $0.50 per share for the same period in 2005. For the nine-month period ended September 30, 2006, net income was $20.7 million, an increase of $591,000 from the same period in 2005. Diluted earnings per share for the nine-month period were $1.43, an increase of $0.06, or 4.4% over the same period in 2005. �Given the current interest rate environment and the competition for deposits, we are relatively pleased with this quarter�s earnings report,� said J. Thomas May, Chairman and Chief Executive Officer. �We, like the rest of the industry, continue to be challenged with margin compression. During this period of an inverted yield curve, we were still able to achieve earnings growth due to the strength of the Company�s asset quality and reduced credit card charge-offs and the related reduction in the provision for loan losses.� The Company�s net interest margin decreased 10 basis points to 3.91% from the second quarter of 2006. �We expect to see continuing competitive pressure in deposit repricing in the short term. This repricing leads us to anticipate a flat to slightly compressed margin for the balance of 2006,� stated Mr. May. The Company�s loan portfolio totaled $1.8 billion at September 30, 2006, an increase of $79 million, or 4.6% over the same period last year. The growth was primarily attributable to increased demand in the real estate loan portfolio. Deposits were $2.1 billion at September 30, 2006, a $101�million, or 4.9% increase from September 30, 2005. Asset quality remained strong with the allowance for loan losses as a percent of total loans at 1.45% as of September 30, 2006. Non-performing loans equaled 0.61% of total loans, while the allowance for loan losses equaled 239% of non-performing loans. The Company�s annualized net charge-offs to total loans for the third quarter of 2006 was 0.20%. Excluding credit cards, the annualized net charge-offs to total loans for the third quarter was 0.13%. Total assets for the Company were $2.7 billion at September 30, 2006, an increase of $80 million from September 30, 2005. Stockholders� equity at September 30, 2006 was $255 million, a $13.4�million increase from September 30, 2005. Simmons First National Corporation is an Arkansas based financial holding company with eight community banks in Pine Bluff, Lake Village, Jonesboro, Rogers, Searcy, Russellville, El Dorado and Hot Springs, Arkansas. The Company�s eight banks conduct financial operations from 84�offices, of which 81 are financial centers, in 46 communities. CONFERENCE CALL Management will conduct a conference call to review this information at 3:00 p.m. Central Time on Thursday, October 19, 2006. Interested parties can listen to this call by calling 1-800-854-4175 (United�States and Canada only) and asking for the Simmons First National Corporation conference call. A recorded playback of the call will be available the next morning by calling 1-800-642-1687. The passcode for this playback is 7329400 and the recording will be available through the end of business October 31, 2006. In addition, the call will be available live or in recorded version on the Company�s website at www.simmonsfirst.com under the �webcast� icon. GENERAL 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 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 (Unaudited) 2006� 2006� 2006� 2005� 2005� (In thousands) ASSETS Cash and non-interest bearing balances due from banks $ 77,724� $ 89,275� $ 89,400� $ 75,461� $ 83,088� Interest bearing balances due from banks 19,599� 26,265� 34,200� 14,397� 48,206� Federal funds sold 49,340� 22,570� 8,620� 11,715� 16,825� Cash and cash equivalents 146,663� 138,110� 132,220� 101,573� 148,119� � Investment securities - held-to-maturity 172,944� 164,612� 148,733� 150,299� 151,123� Investment securities - available-for-sale 358,561� 363,217� 380,617� 371,490� 388,848� Mortgage loans held for sale 6,591� 13,248� 6,853� 7,857� 9,417� Assets held in trading accounts 4,574� 4,606� 4,646� 4,631� 4,731� � Loans 1,788,517� 1,738,628� 1,691,020� 1,718,107� 1,709,372� Allowance for loan losses (25,879) (26,174) (26,463) (26,923) (27,330) Net loans 1,762,638� 1,712,454� 1,664,557� 1,691,184� 1,682,042� � Premises and equipment 66,769� 65,686� 65,040� 63,360� 61,354� Foreclosed assets held for sale, net 1,413� 1,740� 1,666� 1,540� 2,120� Interest receivable 21,953� 18,571� 17,066� 18,754� 18,555� Bank owned life insurance 35,708� 33,985� 33,570� 33,269� 32,952� Goodwill 60,605� 60,605� 60,605� 60,605� 60,454� Core deposit premiums 4,406� 4,613� 4,822� 5,029� 5,207� Other assets 14,117� 15,809� 18,075� 14,177� 12,120� � TOTAL ASSETS $ 2,656,942� $ 2,597,256� $ 2,538,470� $ 2,523,768� $ 2,577,042� � LIABILITIES Non-interest bearing transaction accounts $ 302,700� $ 330,946� $ 328,477� $ 331,113� $ 305,506� Interest bearing transaction accounts and savings deposits 745,649� 761,346� 757,368� 749,925� 758,906� Time deposits less than $100,000 664,105� 623,609� 618,790� 614,742� 606,025� Time deposits greater than $100,000 436,022� 394,489� 389,021� 364,178� 377,290� Total deposits 2,148,476� 2,110,390� 2,093,656� 2,059,958� 2,047,727� Federal funds purchased and securities sold under agreements to repurchase 85,535� 89,684� 91,817� 107,223� 92,320� Short-term debt 61,850� 45,054� 2,245� 8,031� 92,747� Long-term debt - parent company 2,000� 4,000� 4,000� 4,000� 4,000� Long-term FHLB debt - affiliate banks 49,243� 48,143� 48,163� 52,090� 52,066� Subordinated debt issued to capital trusts 30,930� 30,930� 30,930� 30,930� 30,930� Accrued interest and other liabilities 24,316� 21,876� 22,448� 17,451� 16,081� TOTAL LIABILITIES 2,402,350� 2,350,077� 2,293,259� 2,279,683� 2,335,871� � STOCKHOLDERS' EQUITY Capital stock 142� 142� 143� 143� 143� Surplus 49,068� 49,607� 51,380� 53,723� 54,429� Undivided profits 208,200� 203,165� 198,287� 194,579� 190,047� Accumulated other comprehensive income (loss) Unrealized appreciation (depreciation) on AFS securities (2,818) (5,735) (4,599) (4,360) (3,448) TOTAL STOCKHOLDERS' EQUITY 254,592� 247,179� 245,211� 244,085� 241,171� � TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,656,942� $ 2,597,256� $ 2,538,470� $ 2,523,768� $ 2,577,042� Simmons First National Corporation SFNC Consolidated Average Quarter-to-Date Balance Sheets � For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 (Unaudited) 2006� 2006� 2006� 2005� 2005� (In thousands) ASSETS Cash and non-interest bearing balances due from banks $ 78,708� $ 77,064� $ 77,676� $ 85,534� $ 78,418� Interest bearing balances due from banks 16,851� 21,929� 27,968� 16,426� 16,384� Federal funds sold 22,966� 16,138� 16,235� 6,353� 29,375� Cash and cash equivalents 118,525� 115,131� 121,879� 108,313� 124,177� � Investment securities - held-to-maturity 167,182� 157,252� 147,697� 147,779� 150,654� Investment securities - available-for-sale 360,584� 373,434� 378,026� 384,346� 390,580� Mortgage loans held for sale 8,368� 8,426� 6,570� 8,056� 11,395� Assets held in trading accounts 4,598� 4,575� 4,632� 4,688� 4,711� � Loans 1,769,131� 1,716,396� 1,696,855� 1,714,132� 1,689,883� Allowance for loan losses (26,255) (26,997) (27,589) (27,308) (27,512) Net loans 1,742,876� 1,689,399� 1,669,266� 1,686,824� 1,662,371� � Premises and equipment 66,044� 65,485� 64,560� 62,633� 60,497� Foreclosed assets held for sale, net 1,525� 1,664� 1,738� 2,028� 1,870� Interest receivable 20,922� 18,092� 18,030� 19,121� 17,038� Bank owned life insurance 35,226� 33,778� 33,408� 33,102� 32,832� Goodwill 60,605� 60,605� 60,605� 60,554� 60,454� Core deposit premiums 4,527� 4,733� 4,942� 5,138� 5,326� Other assets 13,215� 12,688� 12,046� 11,718� 12,809� � TOTAL ASSETS $ 2,604,197� $ 2,545,262� $ 2,523,399� $ 2,534,300� $ 2,534,714� � LIABILITIES Non-interest bearing transaction accounts $ 302,490� $ 311,102� $ 316,118� $ 314,491� $ 303,387� Interest bearing transaction accounts and savings deposits 722,920� 751,262� 747,046� 748,902� 751,877� Time deposits less than $100,000 658,182� 624,395� 618,730� 612,344� 584,009� Time deposits greater than $100,000 416,693� 394,492� 378,426� 372,170� 372,549� Total deposits 2,100,285� 2,081,251� 2,060,320� 2,047,907� 2,011,822� Federal funds purchased and securities sold under agreements to repurchase 93,670� 96,041� 109,299� 109,065� 92,508� Short-term debt 54,119� 15,804� 5,744� 30,435� 82,463� Long-term debt 80,826� 82,957� 83,961� 85,808� 88,242� Accrued interest and other liabilities 22,804� 20,486� 18,011� 16,859� 18,120� TOTAL LIABILITIES 2,351,704� 2,296,539� 2,277,335� 2,290,074� 2,293,155� � TOTAL STOCKHOLDERS' EQUITY 252,493� 248,723� 246,064� 244,226� 241,559� � TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,604,197� $ 2,545,262� $ 2,523,399� $ 2,534,300� $ 2,534,714� Simmons First National Corporation SFNC Consolidated Statements of Income - Quarter-to-Date � For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 (Unaudited) 2006� 2006� 2006� 2005� 2005� (In thousands, except per share data) INTEREST INCOME Loans $ 33,924� $ 31,694� $ 30,087� $ 30,425� $ 29,225� Federal funds sold 325� 192� 175� 63� 262� Investment securities 5,183� 4,978� 4,830� 4,751� 4,693� Mortgage loans held for sale, net of unrealized gains (losses) 141� 128� 100� 131� 168� Assets held in trading accounts 14� 19� 25� 24� 25� Interest bearing balances due from banks 229� 259� 297� 162� 119� TOTAL INTEREST INCOME 39,816� 37,270� 35,514� 35,556� 34,492� INTEREST EXPENSE Time deposits 11,381� 9,732� 8,724� 8,051� 7,031� Other deposits 3,023� 2,909� 2,544� 2,268� 2,015� Federal funds purchased and securities sold under agreements to repurchase 1,152� 1,064� 1,104� 1,016� 815� Short-term debt 761� 225� 96� 311� 646� Long-term debt 1,122� 1,148� 1,094� 1,095� 1,113� TOTAL INTEREST EXPENSE 17,439� 15,078� 13,562� 12,741� 11,620� NET INTEREST INCOME 22,377� 22,192� 21,952� 22,815� 22,872� Provision for loan losses 602� 789� 1,708� 1,630� 1,736� NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 21,775� 21,403� 20,244� 21,185� 21,136� NON-INTEREST INCOME Trust income 1,435� 1,293� 1,367� 1,425� 1,430� Service charges on deposit accounts 3,973� 4,209� 3,763� 4,097� 4,154� Other service charges and fees 596� 592� 658� 507� 472� Income on sale of mortgage loans, net of commissions 763� 755� 676� 698� 827� Income on investment banking, net of commissions 55� 90� 107� 51� 146� Credit card fees 2,755� 2,699� 2,458� 2,709� 2,619� Premiums on sale of student loans 413� 659� 736� 251� 295� Bank owned life insurance income 382� 415� 301� 317� 279� Other income 654� 804� 546� 623� 518� Gain (loss) on sale of securities, net of taxes -� -� -� -� -� TOTAL NON-INTEREST INCOME 11,026� 11,516� 10,612� 10,678� 10,740� NON-INTEREST EXPENSE Salaries and employee benefits 13,298� 13,466� 13,505� 13,039� 12,703� Occupancy expense, net 1,612� 1,541� 1,520� 1,527� 1,483� Furniture and equipment expense 1,407� 1,456� 1,418� 1,482� 1,421� Loss on foreclosed assets 32� 40� 33� 31� 57� Deposit insurance 64� 71� 69� 65� 72� Other operating expenses 5,725� 5,727� 5,580� 5,835� 5,490� TOTAL NON-INTEREST EXPENSE 22,138� 22,301� 22,125� 21,979� 21,226� NET INCOME BEFORE INCOME TAXES 10,663� 10,618� 8,731� 9,884� 10,650� Provision for income taxes 3,219� 3,322� 2,743� 3,059� 3,316� NET INCOME $ 7,444� $ 7,296� $ 5,988� $ 6,825� $ 7,334� BASIC EARNINGS PER SHARE $ 0.53� $ 0.51� $ 0.42� $ 0.48� $ 0.51� DILUTED EARNINGS PER SHARE $ 0.51� $ 0.51� $ 0.41� $ 0.47� $ 0.50� Simmons First National Corporation SFNC Consolidated Statements of Income - Year-to-Date � For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 (Unaudited) 2006� 2006� 2006� 2005� 2005� (In thousands, except per share data) INTEREST INCOME Loans $ 95,705� $ 61,781� $ 30,087� $ 112,238� $ 81,813� Federal funds sold 692� 367� 175� 925� 863� Investment securities 14,991� 9,808� 4,830� 18,677� 13,926� Mortgage loans held for sale, net of unrealized gains (losses) 369� 228� 100� 552� 421� Assets held in trading accounts 58� 44� 25� 99� 74� Interest bearing balances due from banks 785� 556� 297� 580� 418� TOTAL INTEREST INCOME 112,600� 72,784� 35,514� 133,071� 97,515� INTEREST EXPENSE Time deposits 29,837� 18,456� 8,724� 26,431� 18,381� Other deposits 8,476� 5,453� 2,544� 7,777� 5,508� Federal funds purchased and securities sold under agreements to repurchase 3,320� 2,168� 1,104� 3,104� 2,088� Short-term debt 1,082� 321� 96� 1,101� 790� Long-term debt 3,364� 2,242� 1,094� 4,401� 3,306� TOTAL INTEREST EXPENSE 46,079� 28,640� 13,562� 42,814� 30,073� NET INTEREST INCOME 66,521� 44,144� 21,952� 90,257� 67,442� Provision for loan losses 3,099� 2,497� 1,708� 7,526� 5,895� NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 63,422� 41,647� 20,244� 82,731� 61,547� NON-INTEREST INCOME Trust income 4,095� 2,660� 1,367� 5,589� 4,164� Service charges on deposit accounts 11,945� 7,972� 3,763� 15,818� 11,721� Other service charges and fees 1,846� 1,250� 658� 2,017� 1,511� Income on sale of mortgage loans, net of commissions 2,194� 1,431� 676� 2,919� 2,221� Income on investment banking, net of commissions 252� 197� 107� 416� 364� Credit card fees 7,912� 5,157� 2,458� 10,252� 7,543� Premiums on sale of student loans 1,808� 1,395� 736� 1,822� 1,572� Bank owned life insurance income 1,059� 716� 301� 953� 636� Other income 2,043� 1,350� 546� 2,700� 2,078� Gain (loss) on sale of securities, net of taxes -� -� -� (168) (168) TOTAL NON-INTEREST INCOME 33,154� 22,128� 10,612� 42,318� 31,642� NON-INTEREST EXPENSE Salaries and employee benefits 40,269� 26,971� 13,505� 51,270� 38,231� Occupancy expense, net 4,673� 3,061� 1,520� 5,840� 4,314� Furniture and equipment expense 4,281� 2,874� 1,418� 5,758� 4,277� Loss on foreclosed assets 105� 73� 33� 191� 160� Deposit insurance 204� 140� 69� 279� 214� Other operating expenses 17,032� 11,307� 5,580� 22,246� 16,412� TOTAL NON-INTEREST EXPENSE 66,564� 44,426� 22,125� 85,584� 63,608� NET INCOME BEFORE INCOME TAXES 30,012� 19,349� 8,731� 39,465� 29,581� Provision for income taxes 9,284� 6,065� 2,743� 12,503� 9,444� NET INCOME $ 20,728� $ 13,284� $ 5,988� $ 26,962� $ 20,137� BASIC EARNINGS PER SHARE $ 1.46� $ 0.93� $ 0.42� $ 1.88� $ 1.40� DILUTED EARNINGS PER SHARE $ 1.43� $ 0.92� $ 0.41� $ 1.84� $ 1.37� Simmons First National Corporation SFNC Consolidated Risk-Based Capital � For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 (Unaudited) 2006� 2006� 2006� 2005� 2005� (In thousands) Tier 1 capital Stockholders' equity $ 254,592� $ 247,179� $ 245,211� $ 244,085� $ 241,171� Trust preferred securities, net allowable 30,000� 30,000� 30,000� 30,000� 30,000� Disallowed intangible assets, net of def. tax (64,557) (64,781) (65,084) (65,047) (65,271) Unrealized loss (gain) on AFS securities 2,818� 5,735� 4,599� 4,360� 3,448� Other -� -� -� -� -� � Total Tier 1 capital 222,853� 218,133� 214,726� 213,398� 209,348� � Tier 2 capital Qualifying unrealized gain on AFS securities 177� 173� 317� 338� 357� Qualifying allowance for loan losses 23,103� 22,359� 21,468� 21,815� 21,952� � Total Tier 2 capital 23,280� 22,532� 21,785� 22,153� 22,309� � Total risk-based capital $ 246,133� $ 240,665� $ 236,511� $ 235,551� $ 231,657� � Risk weighted assets $ 1,843,931� $ 1,783,411� $ 1,716,446� $ 1,740,005� $ 1,750,783� � Adjusted average assets for leverage ratio $ 2,547,134� $ 2,488,304� $ 2,465,348� $ 2,475,659� $ 2,473,854� � Ratios at end of quarter Leverage ratio 8.75% 8.77% 8.71% 8.62% 8.46% Tier 1 capital 12.09% 12.23% 12.51% 12.26% 11.96% Total risk-based capital 13.35% 13.49% 13.78% 13.54% 13.23% Simmons First National Corporation SFNC Consolidated Loans and Investments � For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 (Unaudited) 2006� 2006� 2006� 2005� 2005� (In thousands) Loan Portfolio - End of Period Consumer Credit cards $ 133,607� $ 132,464� $ 129,833� $ 143,058� $ 138,077� Student loans 86,875� 77,085� 91,090� 89,818� 89,759� Other consumer 146,039� 140,631� 140,958� 138,051� 136,626� Real Estate Construction 267,604� 248,834� 242,145� 238,898� 227,063� Single-family residential 364,657� 348,782� 341,795� 340,847� 338,466� Other commercial 494,512� 487,288� 473,559� 479,684� 462,978� Unearned income (4) (5) (5) (8) (8) Commercial Commercial 175,576� 188,480� 181,174� 184,920� 177,682� Agricultural 103,301� 86,244� 59,944� 68,761� 105,107� Financial institutions 576� 16,152� 16,158� 20,499� 21,219� Other 15,774� 12,673� 14,369� 13,579� 12,403� � Total Loans $ 1,788,517� $ 1,738,628� $ 1,691,020� $ 1,718,107� $ 1,709,372� � Investment Securities - End of Period � Held-to-Maturity U.S. Treasury $ 1,001� $ 1,002� $ 1,003� $ 1,004� $ 2,007� U.S. Government agencies 53,000� 42,000� 32,000� 28,000� 25,999� Mortgage-backed securities 161� 167� 180� 187� 197� State and political subdivisions 116,481� 116,770� 113,512� 117,148� 120,424� Other securities 2,301� 4,673� 2,038� 3,960� 2,496� Total held-to-maturity 172,944� 164,612� 148,733� 150,299� 151,123� Available-for-Sale U.S. Treasury 6,749� 7,398� 10,201� 10,887� 17,363� U.S. Government agencies 331,709� 335,618� 350,688� 340,990� 346,309� Mortgage-backed securities 3,095� 3,074� 3,264� 3,309� 3,442� State and political subdivisions 1,373� 1,373� 2,139� 3,053� 3,169� FHLB stock 7,674� 7,693� 6,150� 6,044� 11,320� Other securities 7,961� 8,061� 8,175� 7,207� 7,245� Total available-for-sale 358,561� 363,217� 380,617� 371,490� 388,848� � Total investment securities $ 531,505� $ 527,829� $ 529,350� $ 521,789� $ 539,971� � Fair Value - HTM investment securities $ 172,951� $ 161,655� $ 147,589� $ 149,173� $ 151,192� � Investment Securities - QTD Average � Taxable securities $ 410,382� $ 411,388� $ 409,238� $ 412,483� $ 419,204� Tax exempt securities 117,384� 119,298� 116,485� 119,642� 122,030� � Total investment securities - QTD average $ 527,766� $ 530,686� $ 525,723� $ 532,125� $ 541,234� Simmons First National Corporation SFNC Consolidated Allowance and Asset Quality � For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 (Unaudited) 2006� 2006� 2006� 2005� 2005� (In thousands) Allowance for Loan Losses Balance, beginning of quarter $ 26,174� $ 26,463� $ 26,923� $ 27,330� $ 27,013� � Loans charged off Credit cards 661� 600� 593� 1,455� 1,157� Other consumer 352� 223� 272� 299� 341� Real estate 74� 741� 260� 262� 444� Commercial 717� 182� 209� 532� 1,217� Total loans charged off 1,804� 1,746� 1,334� 2,548� 3,159� � Recoveries of loans previously charged off Credit cards 291� 271� 236� 192� 245� Other consumer 147� 156� 153� 131� 214� Real estate 87� 213� 198� 46� 128� Commercial 382� 28� 104� 142� 1,153� Total recoveries 907� 668� 691� 511� 1,740� Net loans charged off 897� 1,078� 643� 2,037� 1,419� Reclass to reserve for unfunded commitments -� -� (1,525) -� -� Provision for loan losses 602� 789� 1,708� 1,630� 1,736� Balance, end of quarter $ 25,879� $ 26,174� $ 26,463� $ 26,923� $ 27,330� � Non-performing assets Non-performing loans Nonaccrual loans Real estate $ 7,674� $ 6,266� $ 4,497� $ 5,598� $ 6,069� Commercial 1,054� 2,160� 1,328� 602� 1,026� Consumer 1,089� 1,130� 1,005� 1,096� 1,193� Total nonaccrual loans 9,817� 9,556� 6,830� 7,296� 8,288� Loans past due 90 days or more 1,029� 1,210� 1,974� 1,131� 1,181� Total non-performing loans 10,846� 10,766� 8,804� 8,427� 9,469� � Other non-performing assets Foreclosed assets held for sale 1,413� 1,740� 1,666� 1,540� 2,120� Other non-performing assets 16� -� 11� 16� 78� Total other non-performing assets 1,429� 1,740� 1,677� 1,556� 2,198� � Total non-performing assets $ 12,275� $ 12,506� $ 10,481� $ 9,983� $ 11,667� � Ratios Allowance for loan losses to total loans 1.45% 1.51% 1.56% 1.57% 1.60% Allowance for loan losses to non-performing loans 238.60% 243.12% 300.58% 319.48% 288.63% Allowance for loan losses to non-performing assets 210.83% 209.29% 252.49% 269.69% 234.25% Non-performing assets ratio(1) 0.69% 0.72% 0.62% 0.58% 0.68% Non-performing loans to total loans 0.61% 0.62% 0.52% 0.49% 0.55% Non-performing assets to total assets 0.46% 0.48% 0.41% 0.40% 0.45% Annualized net charge offs to total loans 0.20% 0.25% 0.15% 0.47% 0.33% Annualized net charge offs to total loans (excluding credit cards) 0.13% 0.19% 0.07% 0.20% 0.13% � (1) Non-performing assets ratio = ( non-performing loans + foreclosed assets)/( total loans + foreclosed assets) Simmons First National Corporation SFNC Consolidated - Selected Financial Data � For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 (Unaudited) 2006� 2006� 2006� 2005� 2005� (In thousands, except share data) QUARTER-TO-DATE Diluted earnings per share $ 0.51� $ 0.51� $ 0.41� $ 0.47� $ 0.50� Operating earnings (excludes nonrecurring items) 7,444� 7,296� 5,988� 6,825� 7,334� Diluted operating earnings per share 0.51� 0.51� 0.41� 0.47� 0.50� Cash dividends declared per common share 0.17� 0.17� 0.16� 0.16� 0.15� Cash dividends declared - amount 2,413� 2,418� 2,280� 2,293� 2,152� Return on average stockholders' equity 11.70% 11.77% 9.87% 11.09% 12.05% Return on average assets 1.13% 1.15% 0.96% 1.07% 1.15% Net interest margin (FTE) 3.91% 4.01% 4.05% 4.10% 4.10% FTE Adjustment - investments 707� 718� 695� 701� 714� FTE Adjustment - loans 89� 86� 85� 88� 89� Amortization of intangibles 207� 209� 207� 208� 207� Amortization of intangibles, net of taxes 130� 132� 130� 131� 130� Average shares outstanding 14,195,844� 14,247,973� 14,265,085� 14,329,026� 14,357,059� Shares repurchased 24,000� 75,400� 89,500� 29,458� 44,835� Average price of repurchased shares 27.93� 26.74� 28.12� 27.81� 27.39� Average earning assets 2,349,680� 2,298,150� 2,277,983� 2,281,780� 2,292,982� Average interest bearing liabilities 2,026,410� 1,964,951� 1,943,206� 1,958,724� 1,971,648� � YEAR-TO-DATE Diluted earnings per share $ 1.43� $ 0.92� $ 0.41� $ 1.84� $ 1.37� Operating earnings (excludes nonrecurring items) 20,728� 13,284� 5,988� 26,962� 20,137� Diluted operating earnings per share 1.43� 0.92� 0.41� 1.84� 1.37� Cash dividends declared per common share 0.50� 0.33� 0.16� 0.61� 0.45� Return on average stockholders' equity 11.13% 10.83% 9.87% 11.24% 11.29% Return on average assets 1.08% 1.06% 0.96% 1.08% 1.08% Net interest margin (FTE) 3.99% 4.03% 4.05% 4.13% 4.14% FTE Adjustment - investments 2,120� 1,413� 695� 2,891� 2,190� FTE Adjustment - loans 260� 171� 85� 343� 255� Amortization of intangibles 623� 416� 207� 829� 621� Amortization of intangibles, net of taxes 392� 262� 130� 522� 391� Average shares outstanding 14,236,047� 14,256,482� 14,265,085� 14,375,005� 14,385,842� Diluted shares outstanding 255,393� 259,130� 274,270� 311,922� 297,548� Average earning assets 2,308,604� 2,288,068� 2,277,983� 2,264,402� 2,258,545� Average interest bearing liabilities 1,978,189� 1,954,077� 1,943,206� 1,937,085� 1,929,791� � END OF PERIOD Book value $ 17.94� $ 17.41� $ 17.19� $ 17.04� $ 16.82� Shares outstanding 14,188,008� 14,199,100� 14,264,144� 14,326,923� 14,337,803� Full-time equivalent employees 1,121� 1,140� 1,111� 1,110� 1,099� Total number of ATM's 88� 88� 87� 86� 83� Total number of financial centers 81� 81� 80� 79� 77� Parent company only - investment in subsidiaries 272,909� 267,177� 267,732� 265,714� 263,991� Parent company only - intangible assets 133� 133� 133� 133� 133� Simmons First National Corporation (NASDAQ-GS: SFNC) today announced record earnings for the three and nine-month periods ended September 30, 2006. Net income for the third quarter was $7.4 million, or $0.51 diluted earnings per share, compared to $0.50 per share for the same period in 2005. For the nine-month period ended September 30, 2006, net income was $20.7 million, an increase of $591,000 from the same period in 2005. Diluted earnings per share for the nine-month period were $1.43, an increase of $0.06, or 4.4% over the same period in 2005. "Given the current interest rate environment and the competition for deposits, we are relatively pleased with this quarter's earnings report," said J. Thomas May, Chairman and Chief Executive Officer. "We, like the rest of the industry, continue to be challenged with margin compression. During this period of an inverted yield curve, we were still able to achieve earnings growth due to the strength of the Company's asset quality and reduced credit card charge-offs and the related reduction in the provision for loan losses." The Company's net interest margin decreased 10 basis points to 3.91% from the second quarter of 2006. "We expect to see continuing competitive pressure in deposit repricing in the short term. This repricing leads us to anticipate a flat to slightly compressed margin for the balance of 2006," stated Mr. May. The Company's loan portfolio totaled $1.8 billion at September 30, 2006, an increase of $79 million, or 4.6% over the same period last year. The growth was primarily attributable to increased demand in the real estate loan portfolio. Deposits were $2.1 billion at September 30, 2006, a $101 million, or 4.9% increase from September 30, 2005. Asset quality remained strong with the allowance for loan losses as a percent of total loans at 1.45% as of September 30, 2006. Non-performing loans equaled 0.61% of total loans, while the allowance for loan losses equaled 239% of non-performing loans. The Company's annualized net charge-offs to total loans for the third quarter of 2006 was 0.20%. Excluding credit cards, the annualized net charge-offs to total loans for the third quarter was 0.13%. Total assets for the Company were $2.7 billion at September 30, 2006, an increase of $80 million from September 30, 2005. Stockholders' equity at September 30, 2006 was $255 million, a $13.4 million increase from September 30, 2005. Simmons First National Corporation is an Arkansas based financial holding company with eight community banks in Pine Bluff, Lake Village, Jonesboro, Rogers, Searcy, Russellville, El Dorado and Hot Springs, Arkansas. The Company's eight banks conduct financial operations from 84 offices, of which 81 are financial centers, in 46 communities. CONFERENCE CALL Management will conduct a conference call to review this information at 3:00 p.m. Central Time on Thursday, October 19, 2006. Interested parties can listen to this call by calling 1-800-854-4175 (United States and Canada only) and asking for the Simmons First National Corporation conference call. A recorded playback of the call will be available the next morning by calling 1-800-642-1687. The passcode for this playback is 7329400 and the recording will be available through the end of business October 31, 2006. In addition, the call will be available live or in recorded version on the Company's website at www.simmonsfirst.com under the "webcast" icon. GENERAL 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. -0- *T Simmons First National Corporation SFNC Consolidated End of Period Balance Sheets For the Quarters Ended Sep 30 Jun 30 Mar 31 (Unaudited) 2006 2006 2006 ----------- ----------- ------------ (In thousands) ASSETS Cash and non-interest bearing balances due from banks $77,724 $89,275 $89,400 Interest bearing balances due from banks 19,599 26,265 34,200 Federal funds sold 49,340 22,570 8,620 ----------- ----------- ------------ Cash and cash equivalents 146,663 138,110 132,220 Investment securities - held-to- maturity 172,944 164,612 148,733 Investment securities - available-for-sale 358,561 363,217 380,617 Mortgage loans held for sale 6,591 13,248 6,853 Assets held in trading accounts 4,574 4,606 4,646 Loans 1,788,517 1,738,628 1,691,020 Allowance for loan losses (25,879) (26,174) (26,463) ----------- ----------- ------------ Net loans 1,762,638 1,712,454 1,664,557 Premises and equipment 66,769 65,686 65,040 Foreclosed assets held for sale, net 1,413 1,740 1,666 Interest receivable 21,953 18,571 17,066 Bank owned life insurance 35,708 33,985 33,570 Goodwill 60,605 60,605 60,605 Core deposit premiums 4,406 4,613 4,822 Other assets 14,117 15,809 18,075 ----------- ----------- ------------ TOTAL ASSETS $2,656,942 $2,597,256 $2,538,470 =========== =========== ============ LIABILITIES Non-interest bearing transaction accounts $302,700 $330,946 $328,477 Interest bearing transaction accounts and savings deposits 745,649 761,346 757,368 Time deposits less than $100,000 664,105 623,609 618,790 Time deposits greater than $100,000 436,022 394,489 389,021 ----------- ----------- ------------ Total deposits 2,148,476 2,110,390 2,093,656 ----------- ----------- ------------ Federal funds purchased and securities sold under agreements to repurchase 85,535 89,684 91,817 Short-term debt 61,850 45,054 2,245 Long-term debt - parent company 2,000 4,000 4,000 Long-term FHLB debt - affiliate banks 49,243 48,143 48,163 Subordinated debt issued to capital trusts 30,930 30,930 30,930 Accrued interest and other liabilities 24,316 21,876 22,448 ----------- ----------- ------------ TOTAL LIABILITIES 2,402,350 2,350,077 2,293,259 ----------- ----------- ------------ STOCKHOLDERS' EQUITY Capital stock 142 142 143 Surplus 49,068 49,607 51,380 Undivided profits 208,200 203,165 198,287 Accumulated other comprehensive income (loss) Unrealized appreciation (depreciation) on AFS securities (2,818) (5,735) (4,599) ----------- ----------- ------------ TOTAL STOCKHOLDERS' EQUITY 254,592 247,179 245,211 ----------- ----------- ------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,656,942 $2,597,256 $2,538,470 =========== =========== ============ For the Quarters Ended Dec 31 Sep 30 (Unaudited) 2005 2005 ----------- ----------- (In thousands) ASSETS Cash and non-interest bearing balances due from banks $75,461 $83,088 Interest bearing balances due from banks 14,397 48,206 Federal funds sold 11,715 16,825 ----------- ----------- Cash and cash equivalents 101,573 148,119 Investment securities - held-to-maturity 150,299 151,123 Investment securities - available-for-sale 371,490 388,848 Mortgage loans held for sale 7,857 9,417 Assets held in trading accounts 4,631 4,731 Loans 1,718,107 1,709,372 Allowance for loan losses (26,923) (27,330) ----------- ----------- Net loans 1,691,184 1,682,042 Premises and equipment 63,360 61,354 Foreclosed assets held for sale, net 1,540 2,120 Interest receivable 18,754 18,555 Bank owned life insurance 33,269 32,952 Goodwill 60,605 60,454 Core deposit premiums 5,029 5,207 Other assets 14,177 12,120 ----------- ----------- TOTAL ASSETS $2,523,768 $2,577,042 =========== =========== LIABILITIES Non-interest bearing transaction accounts $331,113 $305,506 Interest bearing transaction accounts and savings deposits 749,925 758,906 Time deposits less than $100,000 614,742 606,025 Time deposits greater than $100,000 364,178 377,290 ----------- ----------- Total deposits 2,059,958 2,047,727 ----------- ----------- Federal funds purchased and securities sold under agreements to repurchase 107,223 92,320 Short-term debt 8,031 92,747 Long-term debt - parent company 4,000 4,000 Long-term FHLB debt - affiliate banks 52,090 52,066 Subordinated debt issued to capital trusts 30,930 30,930 Accrued interest and other liabilities 17,451 16,081 ----------- ----------- TOTAL LIABILITIES 2,279,683 2,335,871 ----------- ----------- STOCKHOLDERS' EQUITY Capital stock 143 143 Surplus 53,723 54,429 Undivided profits 194,579 190,047 Accumulated other comprehensive income (loss) Unrealized appreciation (depreciation) on AFS securities (4,360) (3,448) ----------- ----------- TOTAL STOCKHOLDERS' EQUITY 244,085 241,171 ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,523,768 $2,577,042 =========== =========== *T -0- *T Simmons First National Corporation SFNC Consolidated Average Quarter-to-Date Balance Sheets For the Quarters Ended Sep 30 Jun 30 Mar 31 (Unaudited) 2006 2006 2006 ----------- ----------- ------------ (In thousands) ASSETS Cash and non-interest bearing balances due from banks $78,708 $77,064 $77,676 Interest bearing balances due from banks 16,851 21,929 27,968 Federal funds sold 22,966 16,138 16,235 ----------- ----------- ------------ Cash and cash equivalents 118,525 115,131 121,879 Investment securities - held-to- maturity 167,182 157,252 147,697 Investment securities - available-for-sale 360,584 373,434 378,026 Mortgage loans held for sale 8,368 8,426 6,570 Assets held in trading accounts 4,598 4,575 4,632 Loans 1,769,131 1,716,396 1,696,855 Allowance for loan losses (26,255) (26,997) (27,589) ----------- ----------- ------------ Net loans 1,742,876 1,689,399 1,669,266 Premises and equipment 66,044 65,485 64,560 Foreclosed assets held for sale, net 1,525 1,664 1,738 Interest receivable 20,922 18,092 18,030 Bank owned life insurance 35,226 33,778 33,408 Goodwill 60,605 60,605 60,605 Core deposit premiums 4,527 4,733 4,942 Other assets 13,215 12,688 12,046 ----------- ----------- ------------ TOTAL ASSETS $2,604,197 $2,545,262 $2,523,399 =========== =========== ============ LIABILITIES Non-interest bearing transaction accounts $302,490 $311,102 $316,118 Interest bearing transaction accounts and savings deposits 722,920 751,262 747,046 Time deposits less than $100,000 658,182 624,395 618,730 Time deposits greater than $100,000 416,693 394,492 378,426 ----------- ----------- ------------ Total deposits 2,100,285 2,081,251 2,060,320 ----------- ----------- ------------ Federal funds purchased and securities sold under agreements to repurchase 93,670 96,041 109,299 Short-term debt 54,119 15,804 5,744 Long-term debt 80,826 82,957 83,961 Accrued interest and other liabilities 22,804 20,486 18,011 ----------- ----------- ------------ TOTAL LIABILITIES 2,351,704 2,296,539 2,277,335 ----------- ----------- ------------ TOTAL STOCKHOLDERS' EQUITY 252,493 248,723 246,064 ----------- ----------- ------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,604,197 $2,545,262 $2,523,399 =========== =========== ============ For the Quarters Ended Dec 31 Sep 30 (Unaudited) 2005 2005 ----------- ----------- (In thousands) ASSETS Cash and non-interest bearing balances due from banks $85,534 $78,418 Interest bearing balances due from banks 16,426 16,384 Federal funds sold 6,353 29,375 ----------- ----------- Cash and cash equivalents 108,313 124,177 Investment securities - held-to-maturity 147,779 150,654 Investment securities - available-for-sale 384,346 390,580 Mortgage loans held for sale 8,056 11,395 Assets held in trading accounts 4,688 4,711 Loans 1,714,132 1,689,883 Allowance for loan losses (27,308) (27,512) ----------- ----------- Net loans 1,686,824 1,662,371 Premises and equipment 62,633 60,497 Foreclosed assets held for sale, net 2,028 1,870 Interest receivable 19,121 17,038 Bank owned life insurance 33,102 32,832 Goodwill 60,554 60,454 Core deposit premiums 5,138 5,326 Other assets 11,718 12,809 ----------- ----------- TOTAL ASSETS $2,534,300 $2,534,714 =========== =========== LIABILITIES Non-interest bearing transaction accounts $314,491 $303,387 Interest bearing transaction accounts and savings deposits 748,902 751,877 Time deposits less than $100,000 612,344 584,009 Time deposits greater than $100,000 372,170 372,549 ----------- ----------- Total deposits 2,047,907 2,011,822 ----------- ----------- Federal funds purchased and securities sold under agreements to repurchase 109,065 92,508 Short-term debt 30,435 82,463 Long-term debt 85,808 88,242 Accrued interest and other liabilities 16,859 18,120 ----------- ----------- TOTAL LIABILITIES 2,290,074 2,293,155 ----------- ----------- TOTAL STOCKHOLDERS' EQUITY 244,226 241,559 ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,534,300 $2,534,714 =========== =========== *T -0- *T Simmons First National Corporation SFNC Consolidated Statements of Income - Quarter-to-Date For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 (Unaudited) 2006 2006 2006 2005 2005 -------- -------- -------- -------- -------- (In thousands, except per share data) INTEREST INCOME Loans $33,924 $31,694 $30,087 $30,425 $29,225 Federal funds sold 325 192 175 63 262 Investment securities 5,183 4,978 4,830 4,751 4,693 Mortgage loans held for sale, net of unrealized gains (losses) 141 128 100 131 168 Assets held in trading accounts 14 19 25 24 25 Interest bearing balances due from banks 229 259 297 162 119 -------- -------- -------- -------- -------- TOTAL INTEREST INCOME 39,816 37,270 35,514 35,556 34,492 -------- -------- -------- -------- -------- INTEREST EXPENSE Time deposits 11,381 9,732 8,724 8,051 7,031 Other deposits 3,023 2,909 2,544 2,268 2,015 Federal funds purchased and securities sold under agreements to repurchase 1,152 1,064 1,104 1,016 815 Short-term debt 761 225 96 311 646 Long-term debt 1,122 1,148 1,094 1,095 1,113 -------- -------- -------- -------- -------- TOTAL INTEREST EXPENSE 17,439 15,078 13,562 12,741 11,620 -------- -------- -------- -------- -------- NET INTEREST INCOME 22,377 22,192 21,952 22,815 22,872 Provision for loan losses 602 789 1,708 1,630 1,736 -------- -------- -------- -------- -------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 21,775 21,403 20,244 21,185 21,136 -------- -------- -------- -------- -------- NON-INTEREST INCOME Trust income 1,435 1,293 1,367 1,425 1,430 Service charges on deposit accounts 3,973 4,209 3,763 4,097 4,154 Other service charges and fees 596 592 658 507 472 Income on sale of mortgage loans, net of commissions 763 755 676 698 827 Income on investment banking, net of commissions 55 90 107 51 146 Credit card fees 2,755 2,699 2,458 2,709 2,619 Premiums on sale of student loans 413 659 736 251 295 Bank owned life insurance income 382 415 301 317 279 Other income 654 804 546 623 518 Gain (loss) on sale of securities, net of taxes - - - - - -------- -------- -------- -------- -------- TOTAL NON- INTEREST INCOME 11,026 11,516 10,612 10,678 10,740 -------- -------- -------- -------- -------- NON-INTEREST EXPENSE Salaries and employee benefits 13,298 13,466 13,505 13,039 12,703 Occupancy expense, net 1,612 1,541 1,520 1,527 1,483 Furniture and equipment expense 1,407 1,456 1,418 1,482 1,421 Loss on foreclosed assets 32 40 33 31 57 Deposit insurance 64 71 69 65 72 Other operating expenses 5,725 5,727 5,580 5,835 5,490 -------- -------- -------- -------- -------- TOTAL NON- INTEREST EXPENSE 22,138 22,301 22,125 21,979 21,226 -------- -------- -------- -------- -------- NET INCOME BEFORE INCOME TAXES 10,663 10,618 8,731 9,884 10,650 Provision for income taxes 3,219 3,322 2,743 3,059 3,316 -------- -------- -------- -------- -------- NET INCOME $7,444 $7,296 $5,988 $6,825 $7,334 ======== ======== ======== ======== ======== BASIC EARNINGS PER SHARE $0.53 $0.51 $0.42 $0.48 $0.51 ======== ======== ======== ======== ======== DILUTED EARNINGS PER SHARE $0.51 $0.51 $0.41 $0.47 $0.50 ======== ======== ======== ======== ======== *T -0- *T Simmons First National Corporation SFNC Consolidated Statements of Income - Year-to-Date For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 (Unaudited) 2006 2006 2006 2005 2005 -------- -------- -------- --------- -------- (In thousands, except per share data) INTEREST INCOME Loans $95,705 $61,781 $30,087 $112,238 $81,813 Federal funds sold 692 367 175 925 863 Investment securities 14,991 9,808 4,830 18,677 13,926 Mortgage loans held for sale, net of unrealized gains (losses) 369 228 100 552 421 Assets held in trading accounts 58 44 25 99 74 Interest bearing balances due from banks 785 556 297 580 418 -------- -------- -------- --------- -------- TOTAL INTEREST INCOME 112,600 72,784 35,514 133,071 97,515 -------- -------- -------- --------- -------- INTEREST EXPENSE Time deposits 29,837 18,456 8,724 26,431 18,381 Other deposits 8,476 5,453 2,544 7,777 5,508 Federal funds purchased and securities sold under agreements to repurchase 3,320 2,168 1,104 3,104 2,088 Short-term debt 1,082 321 96 1,101 790 Long-term debt 3,364 2,242 1,094 4,401 3,306 -------- -------- -------- --------- -------- TOTAL INTEREST EXPENSE 46,079 28,640 13,562 42,814 30,073 -------- -------- -------- --------- -------- NET INTEREST INCOME 66,521 44,144 21,952 90,257 67,442 Provision for loan losses 3,099 2,497 1,708 7,526 5,895 -------- -------- -------- --------- -------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 63,422 41,647 20,244 82,731 61,547 -------- -------- -------- --------- -------- NON-INTEREST INCOME Trust income 4,095 2,660 1,367 5,589 4,164 Service charges on deposit accounts 11,945 7,972 3,763 15,818 11,721 Other service charges and fees 1,846 1,250 658 2,017 1,511 Income on sale of mortgage loans, net of commissions 2,194 1,431 676 2,919 2,221 Income on investment banking, net of commissions 252 197 107 416 364 Credit card fees 7,912 5,157 2,458 10,252 7,543 Premiums on sale of student loans 1,808 1,395 736 1,822 1,572 Bank owned life insurance income 1,059 716 301 953 636 Other income 2,043 1,350 546 2,700 2,078 Gain (loss) on sale of securities, net of taxes - - - (168) (168) -------- -------- -------- --------- -------- TOTAL NON- INTEREST INCOME 33,154 22,128 10,612 42,318 31,642 -------- -------- -------- --------- -------- NON-INTEREST EXPENSE Salaries and employee benefits 40,269 26,971 13,505 51,270 38,231 Occupancy expense, net 4,673 3,061 1,520 5,840 4,314 Furniture and equipment expense 4,281 2,874 1,418 5,758 4,277 Loss on foreclosed assets 105 73 33 191 160 Deposit insurance 204 140 69 279 214 Other operating expenses 17,032 11,307 5,580 22,246 16,412 -------- -------- -------- --------- -------- TOTAL NON- INTEREST EXPENSE 66,564 44,426 22,125 85,584 63,608 -------- -------- -------- --------- -------- NET INCOME BEFORE INCOME TAXES 30,012 19,349 8,731 39,465 29,581 Provision for income taxes 9,284 6,065 2,743 12,503 9,444 -------- -------- -------- --------- -------- NET INCOME $20,728 $13,284 $5,988 $26,962 $20,137 ======== ======== ======== ========= ======== BASIC EARNINGS PER SHARE $1.46 $0.93 $0.42 $1.88 $1.40 ======== ======== ======== ========= ======== DILUTED EARNINGS PER SHARE $1.43 $0.92 $0.41 $1.84 $1.37 ======== ======== ======== ========= ======== *T -0- *T Simmons First National Corporation SFNC Consolidated Risk-Based Capital For the Quarters Ended Sep 30 Jun 30 Mar 31 (Unaudited) 2006 2006 2006 ----------- ----------- ------------ (In thousands) Tier 1 capital ---------------------------------- Stockholders' equity $254,592 $247,179 $245,211 Trust preferred securities, net allowable 30,000 30,000 30,000 Disallowed intangible assets, net of def. tax (64,557) (64,781) (65,084) Unrealized loss (gain) on AFS securities 2,818 5,735 4,599 Other - - - ----------- ----------- ------------ Total Tier 1 capital 222,853 218,133 214,726 ----------- ----------- ------------ Tier 2 capital ---------------------------------- Qualifying unrealized gain on AFS securities 177 173 317 Qualifying allowance for loan losses 23,103 22,359 21,468 ----------- ----------- ------------ Total Tier 2 capital 23,280 22,532 21,785 ----------- ----------- ------------ Total risk-based capital $246,133 $240,665 $236,511 =========== =========== ============ Risk weighted assets $1,843,931 $1,783,411 $1,716,446 =========== =========== ============ Adjusted average assets for leverage ratio $2,547,134 $2,488,304 $2,465,348 =========== =========== ============ Ratios at end of quarter ---------------------------------- Leverage ratio 8.75% 8.77% 8.71% Tier 1 capital 12.09% 12.23% 12.51% Total risk-based capital 13.35% 13.49% 13.78% For the Quarters Ended Dec 31 Sep 30 (Unaudited) 2005 2005 ----------- ----------- (In thousands) Tier 1 capital --------------------------------------------- Stockholders' equity $244,085 $241,171 Trust preferred securities, net allowable 30,000 30,000 Disallowed intangible assets, net of def. tax (65,047) (65,271) Unrealized loss (gain) on AFS securities 4,360 3,448 Other - - ----------- ----------- Total Tier 1 capital 213,398 209,348 ----------- ----------- Tier 2 capital --------------------------------------------- Qualifying unrealized gain on AFS securities 338 357 Qualifying allowance for loan losses 21,815 21,952 ----------- ----------- Total Tier 2 capital 22,153 22,309 ----------- ----------- Total risk-based capital $235,551 $231,657 =========== =========== Risk weighted assets $1,740,005 $1,750,783 =========== =========== Adjusted average assets for leverage ratio $2,475,659 $2,473,854 =========== =========== Ratios at end of quarter --------------------------------------------- Leverage ratio 8.62% 8.46% Tier 1 capital 12.26% 11.96% Total risk-based capital 13.54% 13.23% *T -0- *T Simmons First National Corporation SFNC Consolidated Loans and Investments For the Quarters Ended Sep 30 Jun 30 Mar 31 (Unaudited) 2006 2006 2006 ----------- ----------- ------------ (In thousands) Loan Portfolio - End of Period ---------------------------------- Consumer Credit cards $133,607 $132,464 $129,833 Student loans 86,875 77,085 91,090 Other consumer 146,039 140,631 140,958 Real Estate Construction 267,604 248,834 242,145 Single-family residential 364,657 348,782 341,795 Other commercial 494,512 487,288 473,559 Unearned income (4) (5) (5) Commercial Commercial 175,576 188,480 181,174 Agricultural 103,301 86,244 59,944 Financial institutions 576 16,152 16,158 Other 15,774 12,673 14,369 ----------- ----------- ------------ Total Loans $1,788,517 $1,738,628 $1,691,020 =========== =========== ============ Investment Securities - End of Period ---------------------------------- Held-to-Maturity U.S. Treasury $1,001 $1,002 $1,003 U.S. Government agencies 53,000 42,000 32,000 Mortgage-backed securities 161 167 180 State and political subdivisions 116,481 116,770 113,512 Other securities 2,301 4,673 2,038 ----------- ----------- ------------ Total held-to-maturity 172,944 164,612 148,733 ----------- ----------- ------------ Available-for-Sale U.S. Treasury 6,749 7,398 10,201 U.S. Government agencies 331,709 335,618 350,688 Mortgage-backed securities 3,095 3,074 3,264 State and political subdivisions 1,373 1,373 2,139 FHLB stock 7,674 7,693 6,150 Other securities 7,961 8,061 8,175 ----------- ----------- ------------ Total available-for-sale 358,561 363,217 380,617 ----------- ----------- ------------ Total investment securities $531,505 $527,829 $529,350 =========== =========== ============ Fair Value - HTM investment securities $172,951 $161,655 $147,589 =========== =========== ============ Investment Securities - QTD Average ---------------------------------- Taxable securities $410,382 $411,388 $409,238 Tax exempt securities 117,384 119,298 116,485 ----------- ----------- ------------ Total investment securities - QTD average $527,766 $530,686 $525,723 =========== =========== ============ For the Quarters Ended Dec 31 Sep 30 (Unaudited) 2005 2005 ----------- ----------- (In thousands) Loan Portfolio - End of Period --------------------------------------------- Consumer Credit cards $143,058 $138,077 Student loans 89,818 89,759 Other consumer 138,051 136,626 Real Estate Construction 238,898 227,063 Single-family residential 340,847 338,466 Other commercial 479,684 462,978 Unearned income (8) (8) Commercial Commercial 184,920 177,682 Agricultural 68,761 105,107 Financial institutions 20,499 21,219 Other 13,579 12,403 ----------- ----------- Total Loans $1,718,107 $1,709,372 =========== =========== Investment Securities - End of Period --------------------------------------------- Held-to-Maturity U.S. Treasury $1,004 $2,007 U.S. Government agencies 28,000 25,999 Mortgage-backed securities 187 197 State and political subdivisions 117,148 120,424 Other securities 3,960 2,496 ----------- ----------- Total held-to-maturity 150,299 151,123 ----------- ----------- Available-for-Sale U.S. Treasury 10,887 17,363 U.S. Government agencies 340,990 346,309 Mortgage-backed securities 3,309 3,442 State and political subdivisions 3,053 3,169 FHLB stock 6,044 11,320 Other securities 7,207 7,245 ----------- ----------- Total available-for-sale 371,490 388,848 ----------- ----------- Total investment securities $521,789 $539,971 =========== =========== Fair Value - HTM investment securities $149,173 $151,192 =========== =========== Investment Securities - QTD Average --------------------------------------------- Taxable securities $412,483 $419,204 Tax exempt securities 119,642 122,030 ----------- ----------- Total investment securities - QTD average $532,125 $541,234 =========== =========== *T -0- *T Simmons First National Corporation SFNC Consolidated Allowance and Asset Quality For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 (Unaudited) 2006 2006 2006 2005 2005 -------- -------- -------- -------- -------- (In thousands) Allowance for Loan Losses -------------------------- Balance, beginning of quarter $26,174 $26,463 $26,923 $27,330 $27,013 -------- -------- -------- -------- -------- Loans charged off Credit cards 661 600 593 1,455 1,157 Other consumer 352 223 272 299 341 Real estate 74 741 260 262 444 Commercial 717 182 209 532 1,217 -------- -------- -------- -------- -------- Total loans charged off 1,804 1,746 1,334 2,548 3,159 -------- -------- -------- -------- -------- Recoveries of loans previously charged off Credit cards 291 271 236 192 245 Other consumer 147 156 153 131 214 Real estate 87 213 198 46 128 Commercial 382 28 104 142 1,153 -------- -------- -------- -------- -------- Total recoveries 907 668 691 511 1,740 -------- -------- -------- -------- -------- Net loans charged off 897 1,078 643 2,037 1,419 Reclass to reserve for unfunded commitments - - (1,525) - - Provision for loan losses 602 789 1,708 1,630 1,736 -------- -------- -------- -------- -------- Balance, end of quarter $25,879 $26,174 $26,463 $26,923 $27,330 ======== ======== ======== ======== ======== Non-performing assets -------------------------- Non-performing loans Nonaccrual loans Real estate $7,674 $6,266 $4,497 $5,598 $6,069 Commercial 1,054 2,160 1,328 602 1,026 Consumer 1,089 1,130 1,005 1,096 1,193 -------- -------- -------- -------- -------- Total nonaccrual loans 9,817 9,556 6,830 7,296 8,288 Loans past due 90 days or more 1,029 1,210 1,974 1,131 1,181 -------- -------- -------- -------- -------- Total non- performing loans 10,846 10,766 8,804 8,427 9,469 -------- -------- -------- -------- -------- Other non-performing assets Foreclosed assets held for sale 1,413 1,740 1,666 1,540 2,120 Other non-performing assets 16 - 11 16 78 -------- -------- -------- -------- -------- Total other non- performing assets 1,429 1,740 1,677 1,556 2,198 -------- -------- -------- -------- -------- Total non- performing assets $12,275 $12,506 $10,481 $9,983 $11,667 ======== ======== ======== ======== ======== Ratios -------------------------- Allowance for loan losses to total loans 1.45% 1.51% 1.56% 1.57% 1.60% Allowance for loan losses to non-performing loans 238.60% 243.12% 300.58% 319.48% 288.63% Allowance for loan losses to non-performing assets 210.83% 209.29% 252.49% 269.69% 234.25% Non-performing assets ratio(1) 0.69% 0.72% 0.62% 0.58% 0.68% Non-performing loans to total loans 0.61% 0.62% 0.52% 0.49% 0.55% Non-performing assets to total assets 0.46% 0.48% 0.41% 0.40% 0.45% Annualized net charge offs to total loans 0.20% 0.25% 0.15% 0.47% 0.33% Annualized net charge offs to total loans (excluding credit cards) 0.13% 0.19% 0.07% 0.20% 0.13% (1) Non-performing assets ratio = ( non-performing loans + foreclosed assets)/( total loans + foreclosed assets) *T -0- *T Simmons First National Corporation SFNC Consolidated - Selected Financial Data For the Quarters Ended Sep 30 Jun 30 Mar 31 (Unaudited) 2006 2006 2006 ----------- ----------- ------------ (In thousands, except share data) QUARTER-TO-DATE ---------------------------------- Diluted earnings per share $0.51 $0.51 $0.41 Operating earnings (excludes nonrecurring items) 7,444 7,296 5,988 Diluted operating earnings per share 0.51 0.51 0.41 Cash dividends declared per common share 0.17 0.17 0.16 Cash dividends declared - amount 2,413 2,418 2,280 Return on average stockholders' equity 11.70% 11.77% 9.87% Return on average assets 1.13% 1.15% 0.96% Net interest margin (FTE) 3.91% 4.01% 4.05% FTE Adjustment - investments 707 718 695 FTE Adjustment - loans 89 86 85 Amortization of intangibles 207 209 207 Amortization of intangibles, net of taxes 130 132 130 Average shares outstanding 14,195,844 14,247,973 14,265,085 Shares repurchased 24,000 75,400 89,500 Average price of repurchased shares 27.93 26.74 28.12 Average earning assets 2,349,680 2,298,150 2,277,983 Average interest bearing liabilities 2,026,410 1,964,951 1,943,206 YEAR-TO-DATE ---------------------------------- Diluted earnings per share $1.43 $0.92 $0.41 Operating earnings (excludes nonrecurring items) 20,728 13,284 5,988 Diluted operating earnings per share 1.43 0.92 0.41 Cash dividends declared per common share 0.50 0.33 0.16 Return on average stockholders' equity 11.13% 10.83% 9.87% Return on average assets 1.08% 1.06% 0.96% Net interest margin (FTE) 3.99% 4.03% 4.05% FTE Adjustment - investments 2,120 1,413 695 FTE Adjustment - loans 260 171 85 Amortization of intangibles 623 416 207 Amortization of intangibles, net of taxes 392 262 130 Average shares outstanding 14,236,047 14,256,482 14,265,085 Diluted shares outstanding 255,393 259,130 274,270 Average earning assets 2,308,604 2,288,068 2,277,983 Average interest bearing liabilities 1,978,189 1,954,077 1,943,206 END OF PERIOD ---------------------------------- Book value $17.94 $17.41 $17.19 Shares outstanding 14,188,008 14,199,100 14,264,144 Full-time equivalent employees 1,121 1,140 1,111 Total number of ATM's 88 88 87 Total number of financial centers 81 81 80 Parent company only - investment in subsidiaries 272,909 267,177 267,732 Parent company only - intangible assets 133 133 133 For the Quarters Ended Dec 31 Sep 30 (Unaudited) 2005 2005 ----------- ----------- (In thousands, except share data) QUARTER-TO-DATE --------------------------------------------- Diluted earnings per share $0.47 $0.50 Operating earnings (excludes nonrecurring items) 6,825 7,334 Diluted operating earnings per share 0.47 0.50 Cash dividends declared per common share 0.16 0.15 Cash dividends declared - amount 2,293 2,152 Return on average stockholders' equity 11.09% 12.05% Return on average assets 1.07% 1.15% Net interest margin (FTE) 4.10% 4.10% FTE Adjustment - investments 701 714 FTE Adjustment - loans 88 89 Amortization of intangibles 208 207 Amortization of intangibles, net of taxes 131 130 Average shares outstanding 14,329,026 14,357,059 Shares repurchased 29,458 44,835 Average price of repurchased shares 27.81 27.39 Average earning assets 2,281,780 2,292,982 Average interest bearing liabilities 1,958,724 1,971,648 YEAR-TO-DATE --------------------------------------------- Diluted earnings per share $1.84 $1.37 Operating earnings (excludes nonrecurring items) 26,962 20,137 Diluted operating earnings per share 1.84 1.37 Cash dividends declared per common share 0.61 0.45 Return on average stockholders' equity 11.24% 11.29% Return on average assets 1.08% 1.08% Net interest margin (FTE) 4.13% 4.14% FTE Adjustment - investments 2,891 2,190 FTE Adjustment - loans 343 255 Amortization of intangibles 829 621 Amortization of intangibles, net of taxes 522 391 Average shares outstanding 14,375,005 14,385,842 Diluted shares outstanding 311,922 297,548 Average earning assets 2,264,402 2,258,545 Average interest bearing liabilities 1,937,085 1,929,791 END OF PERIOD --------------------------------------------- Book value $17.04 $16.82 Shares outstanding 14,326,923 14,337,803 Full-time equivalent employees 1,110 1,099 Total number of ATM's 86 83 Total number of financial centers 79 77 Parent company only - investment in subsidiaries 265,714 263,991 Parent company only - intangible assets 133 133 *T