Simmons First National Corporation (Nasdaq:SFNC) today announced
first quarter 2014 core earnings of $7.5 million, an increase of
$1.4 million, or 23.0%, compared to the same quarter last year.
Diluted core earnings per share were $0.46, an increase of $0.09,
or 24.3%. Core earnings exclude $3.1 million in after-tax
non-interest merger related expenses and branch right sizing costs.
Including the non-core expenses, net income was $4.4 million and
diluted earnings per share were $0.27.
"We are pleased with the core earnings results for
the first quarter. As a result of our fourth quarter acquisition of
Metropolitan National Bank, our recently announced acquisition of
Delta Trust & Bank, other possible acquisitions and efficiency
initiatives, we have and will continue to recognize one-time
revenue and expense items which may skew our short-term business
results but provide long-term performance benefits. Our focus
continues to be improvement in core operating income," commented
George A. Makris, Jr., Chairman and CEO.
Loans
Total loans, including those acquired, were $2.4
billion at March 31, 2014, an increase of $518 million, or 28.0%,
compared to the same period in 2013. Acquired loans increased by
$328 million, net of discounts, while legacy loans (all loans
excluding acquired loans) grew $191 million, or 12.0%. "We are
encouraged by the continued growth in our legacy loan portfolio
during the first quarter. We have experienced nice loan growth in
virtually every market we serve," added Makris.
Deposits
At March 31, 2014, total deposits were $3.7
billion, an increase of $814 million, or 28.2%, compared to the
same period in 2013. Total non-time deposits totaled $2.6 billion,
or 71% of total deposits.
Net Interest Income
The Company's net interest income for the first
quarter of 2014 was $41.5 million, an increase of $11.5 million, or
38.1%, from the same period of 2013. This increase was driven by
growth in the legacy loan portfolio, earning assets acquired
through the Metropolitan transaction and an increase in accretable
yield on acquired loans. Net interest margin was 4.54% for the
quarter ended March 31, 2014, a 53 basis point increase from the
same quarter of 2013. Included in interest income for both periods
was the additional yield accretion recognized as a result of
updated estimates of the cash flows of the loan pools acquired in
the Company's FDIC-assisted transactions. Each quarter, the Company
estimates the cash flows expected to be collected from the acquired
loan pools, and adjustments may or may not be required. The cash
flows estimate has increased based on payment histories and reduced
loss expectations of the loan pools. This resulted in increased
interest income that is spread on a level-yield basis over the
remaining expected lives of the loan pools. The increases in
expected cash flows also reduce the amount of expected
reimbursements under the loss sharing agreements with the FDIC,
which are recorded as indemnification assets.
The impact of the adjustments on the Company's
financial results for the current reporting period is shown
below:
|
Three Months Ended |
(In thousands) |
March 31 |
|
2014 |
2013 |
Impact on net interest income |
$ 7,391 |
$ 2,947 |
Non-interest income |
(7,441) |
(2,828) |
Net impact to pre-tax
income |
$ (50) |
$ 119 |
Because these adjustments will be recognized over
the remaining lives of the loan pools and the remainder of the loss
sharing agreements, respectively, they will impact future periods
as well. The current estimate of the remaining accretable yield
adjustment that will positively impact interest income is $27.1
million and the remaining adjustment to the indemnification assets
that will reduce non-interest income is $20.4 million. Of the
remaining adjustments, we expect to recognize $13.9 million of
interest income and a $14.4 million reduction of non-interest
income, for a net reduction to pre-tax income of approximately
$514,000, during the remainder of 2014. The accretable yield
adjustments recorded in future periods will change as the Company
continues to evaluate expected cash flows from the acquired loan
pools.
Non-Interest Income
Non-interest income for the first quarter was $9.2
million, a decrease of $2.1 million, compared to the first quarter
of 2013. The reduction in non-interest income was due to the $4.6
million incremental reduction in non-interest income from the
adjustment to the indemnification assets. Normalized for the
indemnification asset adjustments, non-interest income for the
quarter increased by $2.5 million, or 17.7%, primarily from
additional service charge and fee income from the Metropolitan
acquisition.
Non-Interest Expense
Non-interest expense for the first quarter of 2014
was $44.6 million, an increase of $12.6 million compared to the
same period in 2013. "In March we completed the branch
consolidation plan related to the Metropolitan acquisition. During
the quarter, we recorded branch right sizing costs of $3.9 million
associated with the closure of eleven legacy Simmons branches,"
noted Makris. "Also included in the quarter were $1.3 million of
various merger costs related to Metropolitan and the recently
announced acquisition of Delta Trust & Bank."
Asset Quality
Beginning in 2010, the Company has acquired loans and foreclosed
real estate ("OREO") through FDIC-assisted acquisitions. Through
the loss share provisions of the purchase and assumption
agreements, the FDIC agreed to reimburse the Company for 80% of the
losses incurred on the disposition of covered loans and OREO. The
acquired loans and OREO and any related FDIC loss share
indemnification asset were presented in the Company's financial
reports with a carrying value equal to the discounted net present
value of expected future proceeds. At March 31, 2014, acquired
loans covered by loss share were carried at $138 million, OREO
covered by loss share was carried at $18 million and the FDIC loss
share indemnification asset was carried at $39 million. Acquired
loans and OREO not covered by loss share were carried at $450
million and $40 million, respectively. As a result of using
the discounted net present value method of valuing these assets,
and due to the significant protection against possible losses
provided by the FDIC loss share indemnification, all acquired
assets, with the exception of OREO not covered by loss share, are
excluded from the computations of the asset quality ratios for the
legacy loan portfolio, except for their inclusion in total
assets.
"It is important to remember that the acquired non-covered loans
are protected by a credit mark and the acquired covered loans are
protected by a credit mark and 80% loss coverage by the FDIC,"
explained Makris. "At March 31, 2014, the allowance for loan losses
was $27.0 million and the loan credit mark was $96.5 million, for a
total of $123.5 million of coverage. This equates to a total
coverage ratio of 5.0% of gross loans. The ratio of credit mark to
acquired loans was 14.1%." The Company's allowance for loan losses
at March 31, 2014, was 1.52% of total loans and 216% of
non-performing loans. Non-performing loans as a percent of total
loans were 0.70%. Non-performing assets decreased $4.1 million from
the previous quarter to $70.0 million. For the first quarter of
2014, the annualized net charge-off ratio, excluding credit cards,
was 0.22%, and the annualized credit card charge-off ratio was
1.20%.
Capital
At March 31, 2014, stockholders' equity was $407
million, book value per share was $24.93 and tangible book value
per share was $19.23. The Company's ratio of stockholders' equity
to total assets was 9.3% and its ratio of tangible common equity to
tangible assets was 7.3%.
Simmons First National
Corporation
Simmons First National Corporation is a $4.4
billion Arkansas based financial holding company conducting
financial operations throughout Arkansas, Kansas and Missouri. The
Company's common stock trades on the NASDAQ Global Select Market
under the symbol "SFNC".
Conference Call
Management will conduct a conference call to review
this information beginning at 3:00 p.m. Central Time on Thursday,
April 17, 2014. Interested persons can listen to this call by
dialing toll-free 1-866-298-7926 (United States and Canada
only) and asking for the Simmons First National Corporation
conference call, conference ID 21404149. In addition, the call will
be available live or in recorded version on the Company's website
at www.simmonsfirst.com.
Non-GAAP Financial Measures
This press release contains financial information
determined by methods other than in accordance with generally
accepted accounting principles (GAAP). The Company's management
uses these non-GAAP financial measures in their analysis of the
Company's performance. These measures typically adjust GAAP
performance measures to include the tax benefit associated with
revenue items that are tax-exempt, as well as adjust income
available to common shareholders for certain significant activities
or nonrecurring transactions. Since the presentation of these GAAP
performance measures and their impact differ between companies,
management believes presentations of these non-GAAP financial
measures provide useful supplemental information that is essential
to a proper understanding of the operating results of the Company's
core businesses. These non-GAAP disclosures should not be viewed as
a substitute for operating results determined in accordance with
GAAP, nor are they necessarily comparable to non-GAAP performance
measures that may be presented by other companies.
Forward Looking Statements
Statements in this press release that are not
historical facts should be considered forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements of this type speak only as of
the date of this news release. By nature, forward-looking
statements involve inherent risk and uncertainties. Various
factors, including, but not limited to, economic conditions, credit
quality, interest rates, loan demand and changes in the assumptions
used in making the forward-looking statements, could cause actual
results to differ materially from those contemplated by the
forward-looking statements. Additional information on factors that
might affect Simmons First National Corporation's financial results
is included in its Form 10-K filing with the Securities and
Exchange Commission.
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Simmons First National
Corporation |
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SFNC |
Consolidated End of Period
Balance Sheets |
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For the Quarters
Ended |
Mar 31 |
Dec 31 |
Sep 30 |
Jun 30 |
Mar 31 |
(Unaudited) |
2014 |
2013 |
2013 |
2013 |
2013 |
(in thousands) |
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ASSETS |
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|
|
Cash and non-interest bearing balances
due from banks |
$ 48,018 |
$ 69,827 |
$ 37,752 |
$ 38,494 |
$ 40,006 |
Interest bearing balances due from
banks |
474,118 |
469,553 |
320,368 |
420,740 |
602,992 |
Federal funds sold |
-- |
-- |
18,365 |
-- |
-- |
Cash and cash
equivalents |
522,136 |
539,380 |
376,485 |
459,234 |
642,998 |
Investment securities -
held-to-maturity |
776,615 |
745,688 |
581,768 |
555,464 |
488,513 |
Investment securities -
available-for-sale |
264,974 |
212,277 |
179,937 |
177,531 |
192,165 |
Mortgage loans held for sale |
16,717 |
9,494 |
10,605 |
14,454 |
19,100 |
Assets held in trading
accounts |
6,865 |
8,978 |
8,744 |
8,739 |
8,368 |
Loans: |
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|
|
|
Legacy loans |
1,779,609 |
1,742,638 |
1,741,161 |
1,650,395 |
1,589,077 |
Allowance for loan
losses |
(26,983) |
(27,442) |
(27,533) |
(27,398) |
(27,735) |
Loans acquired, not covered by
FDIC loss share |
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(net of discount) |
450,289 |
515,644 |
68,133 |
63,500 |
78,745 |
Loans acquired, covered by FDIC
loss share (net of discount) |
137,879 |
146,653 |
148,884 |
163,736 |
181,537 |
Net loans |
2,340,794 |
2,377,493 |
1,930,645 |
1,850,233 |
1,821,624 |
FDIC indemnification asset |
39,239 |
48,791 |
61,500 |
67,744 |
71,002 |
Premises and equipment |
111,888 |
119,614 |
87,065 |
88,164 |
87,934 |
Premises held for sale |
23,779 |
19,466 |
-- |
-- |
-- |
Foreclosed assets not covered by FDIC
loss share |
57,476 |
64,820 |
26,203 |
30,390 |
30,714 |
Foreclosed assets covered by FDIC loss
share |
18,171 |
20,585 |
23,260 |
22,990 |
28,003 |
Interest receivable |
15,102 |
15,654 |
15,635 |
12,637 |
13,027 |
Bank owned life insurance |
60,714 |
60,384 |
60,040 |
59,710 |
59,344 |
Goodwill |
78,529 |
78,906 |
60,605 |
60,605 |
60,605 |
Other intangible assets |
14,519 |
14,972 |
5,420 |
3,487 |
3,624 |
Other assets |
49,129 |
46,598 |
13,797 |
10,387 |
16,540 |
Total assets |
$ 4,396,647 |
$ 4,383,100 |
$ 3,441,709 |
$ 3,421,769 |
$ 3,543,561 |
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LIABILITIES AND STOCKHOLDERS'
EQUITY |
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Deposits: |
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|
|
Non-interest bearing
transaction accounts |
$ 838,050 |
$ 718,438 |
$ 580,063 |
$ 565,433 |
$ 592,442 |
Interest bearing transaction
accounts and savings deposits |
1,793,330 |
1,862,618 |
1,453,139 |
1,428,422 |
1,456,005 |
Time deposits less than
$100,000 |
589,798 |
611,729 |
454,325 |
467,778 |
482,688 |
Time deposits greater than
$100,000 |
485,870 |
504,782 |
351,271 |
351,486 |
361,529 |
Total deposits |
3,707,048 |
3,697,567 |
2,838,798 |
2,813,119 |
2,892,664 |
Federal funds purchased and securities
sold under agreements to repurchase |
104,643 |
107,887 |
62,311 |
79,063 |
108,227 |
Other borrowings |
116,970 |
117,090 |
75,987 |
77,659 |
81,646 |
Subordinated debentures |
20,620 |
20,620 |
20,620 |
20,620 |
20,620 |
Accrued interest and other
liabilities |
40,694 |
36,104 |
40,959 |
29,458 |
33,950 |
Total
liabilities |
3,989,975 |
3,979,268 |
3,038,675 |
3,019,919 |
3,137,107 |
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Stockholders' equity: |
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Common stock |
163 |
162 |
162 |
163 |
165 |
Surplus |
89,274 |
88,095 |
87,279 |
89,434 |
94,723 |
Undivided profits |
319,354 |
318,577 |
318,194 |
314,663 |
311,521 |
Accumulated other comprehensive
income |
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Unrealized appreciation on AFS
securities |
(2,119) |
(3,002) |
(2,601) |
(2,410) |
45 |
Total stockholders'
equity |
406,672 |
403,832 |
403,034 |
401,850 |
406,454 |
Total liabilities and
stockholders' equity |
$ 4,396,647 |
$ 4,383,100 |
$ 3,441,709 |
$ 3,421,769 |
$ 3,543,561 |
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Simmons First National
Corporation |
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SFNC |
Consolidated
Average Quarter-to-Date Balance Sheets |
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For the Quarters
Ended |
Mar 31 |
Dec 31 |
Sep 30 |
Jun 30 |
Mar 31 |
(Unaudited) |
2014 |
2013 |
2013 |
2013 |
2013 |
(in thousands) |
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ASSETS |
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|
|
Cash and non-interest bearing balances
due from banks |
$ 68,770 |
$ 50,473 |
$ 39,067 |
$ 41,030 |
$ 42,334 |
Interest bearing balances due from
banks |
507,936 |
428,551 |
365,504 |
527,787 |
560,759 |
Federal funds sold |
385 |
2,616 |
3,719 |
1,922 |
8,487 |
Cash and cash
equivalents |
577,091 |
481,640 |
408,290 |
570,739 |
611,580 |
Investment securities -
held-to-maturity |
749,126 |
657,736 |
567,579 |
511,008 |
497,152 |
Investment securities -
available-for-sale |
223,203 |
220,292 |
178,351 |
182,227 |
191,981 |
Mortgage loans held for sale |
6,668 |
6,666 |
12,171 |
14,154 |
19,442 |
Assets held in trading
accounts |
7,212 |
8,881 |
8,731 |
8,292 |
8,525 |
Loans: |
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Legacy loans |
1,719,294 |
1,734,469 |
1,705,204 |
1,616,036 |
1,588,299 |
Allowance for loan
losses |
(27,771) |
(27,806) |
(27,735) |
(28,219) |
(27,999) |
Loans acquired, not covered by
FDIC loss share |
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(net of discount) |
505,031 |
261,577 |
61,372 |
72,663 |
80,755 |
Loans acquired, covered by FDIC
loss share (net of discount) |
142,777 |
145,742 |
156,392 |
172,415 |
196,190 |
Net loans |
2,339,331 |
2,113,982 |
1,895,233 |
1,832,895 |
1,837,245 |
FDIC indemnification asset |
46,154 |
57,587 |
65,478 |
70,442 |
74,205 |
Premises and equipment |
119,626 |
87,310 |
88,044 |
88,210 |
87,571 |
Premises held for sale |
19,514 |
212 |
-- |
-- |
-- |
Foreclosed assets not covered by FDIC
loss share |
63,453 |
50,680 |
27,368 |
29,399 |
32,102 |
Foreclosed assets covered by FDIC loss
share |
19,901 |
22,529 |
22,392 |
25,603 |
27,812 |
Interest receivable |
14,882 |
15,707 |
13,739 |
12,524 |
13,370 |
Bank owned life insurance |
60,552 |
60,209 |
59,878 |
59,523 |
52,706 |
Goodwill |
78,901 |
60,804 |
60,605 |
60,605 |
60,605 |
Other intangible assets |
14,765 |
5,526 |
3,439 |
3,554 |
3,693 |
Other assets |
45,458 |
33,324 |
12,122 |
13,435 |
20,827 |
Total assets |
$ 4,385,837 |
$ 3,883,085 |
$ 3,423,420 |
$ 3,482,610 |
$ 3,538,816 |
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LIABILITIES AND
STOCKHOLDERS' EQUITY |
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Deposits: |
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Non-interest bearing
transaction accounts |
$ 735,101 |
$ 665,644 |
$ 559,461 |
$ 560,804 |
$ 567,588 |
Interest bearing transaction
accounts and savings deposits |
1,854,510 |
1,620,244 |
1,444,058 |
1,456,258 |
1,446,533 |
Time deposits less than
$100,000 |
601,046 |
517,603 |
461,101 |
475,428 |
494,196 |
Time deposits greater than
$100,000 |
495,574 |
409,361 |
358,307 |
359,155 |
364,496 |
Total deposits |
3,686,231 |
3,212,852 |
2,822,927 |
2,851,645 |
2,872,813 |
Federal funds purchased and securities
sold under agreements to repurchase |
115,018 |
98,359 |
67,924 |
89,879 |
118,131 |
Other borrowings |
117,588 |
108,693 |
75,704 |
80,090 |
83,872 |
Subordinated debentures |
20,620 |
20,620 |
20,620 |
20,620 |
20,620 |
Accrued interest and other
liabilities |
36,967 |
33,117 |
31,867 |
32,146 |
34,486 |
Total liabilities |
3,976,424 |
3,473,641 |
3,019,042 |
3,074,380 |
3,129,922 |
Total stockholders'
equity |
409,413 |
409,444 |
404,378 |
408,230 |
408,894 |
Total liabilities and
stockholders' equity |
$ 4,385,837 |
$ 3,883,085 |
$ 3,423,420 |
$ 3,482,610 |
$ 3,538,816 |
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Simmons First National
Corporation |
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SFNC |
Consolidated Statements of
Income - Quarter-to-Date |
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For the Quarters
Ended |
Mar 31 |
Dec 31 |
Sep 30 |
Jun 30 |
Mar 31 |
(Unaudited) |
2014 |
2013 |
2013 |
2013 |
2013 |
(in thousands, except per share
data) |
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INTEREST INCOME |
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Legacy loans |
$ 21,554 |
$ 22,463 |
$ 22,464 |
$ 22,331 |
$ 21,207 |
Loans acquired |
18,577 |
16,151 |
16,151 |
8,283 |
7,864 |
Federal funds sold |
1 |
5 |
6 |
5 |
3 |
Investment
securities |
4,549 |
3,951 |
3,428 |
3,019 |
2,902 |
Mortgage loans held for
sale |
69 |
72 |
122 |
118 |
155 |
Assets held in trading
accounts |
5 |
6 |
6 |
6 |
11 |
Interest bearing balances due
from banks |
279 |
251 |
234 |
352 |
290 |
TOTAL INTEREST
INCOME |
45,034 |
42,899 |
34,411 |
32,571 |
33,232 |
INTEREST EXPENSE |
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Time deposits |
1,577 |
1,479 |
1,392 |
1,479 |
1,588 |
Other deposits |
692 |
646 |
601 |
603 |
611 |
Federal funds purchased and
securities sold under agreements to repurchase |
53 |
55 |
46 |
53 |
65 |
Other borrowings |
1,010 |
929 |
646 |
692 |
734 |
Subordinated
debentures |
157 |
161 |
162 |
162 |
159 |
TOTAL INTEREST
EXPENSE |
3,489 |
3,270 |
2,847 |
2,989 |
3,157 |
NET INTEREST
INCOME |
41,545 |
39,629 |
31,564 |
29,582 |
30,075 |
Provision for loan
losses |
908 |
1,084 |
1,081 |
1,034 |
919 |
NET INTEREST INCOME AFTER
PROVISION |
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FOR LOAN
LOSSES |
40,637 |
38,545 |
30,483 |
28,548 |
29,156 |
NON-INTEREST
INCOME |
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Trust income |
1,537 |
1,608 |
1,448 |
1,342 |
1,444 |
Service charges on deposit
accounts |
6,068 |
5,497 |
4,603 |
4,474 |
4,241 |
Other service charges and
fees |
1,866 |
1,164 |
728 |
791 |
775 |
Mortgage lending
income |
810 |
916 |
1,122 |
1,338 |
1,216 |
Investment banking
income |
181 |
421 |
240 |
696 |
454 |
Credit card fees |
4,600 |
4,592 |
4,400 |
4,341 |
4,039 |
Bank owned life insurance
income |
330 |
347 |
328 |
366 |
278 |
Gain on sale of securities,
net |
-- |
42 |
-- |
(193) |
-- |
Net (loss) gain on assets
covered by FDIC loss share agreements |
(7,370) |
(7,988) |
(3,443) |
(2,615) |
(2,142) |
Other income |
1,176 |
1,118 |
887 |
733 |
1,008 |
TOTAL NON-INTEREST
INCOME |
9,198 |
7,717 |
10,313 |
11,273 |
11,313 |
NON-INTEREST
EXPENSE |
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Salaries and employee
benefits |
22,464 |
19,933 |
17,701 |
17,937 |
18,507 |
Occupancy expense,
net |
3,890 |
2,544 |
2,485 |
2,450 |
2,555 |
Furniture and equipment
expense |
2,014 |
2,257 |
1,613 |
2,030 |
1,723 |
Other real estate and
foreclosure expense |
873 |
562 |
385 |
59 |
331 |
Deposit insurance |
668 |
620 |
595 |
492 |
775 |
Merger related costs |
1,272 |
6,413 |
190 |
(467) |
240 |
Other operating
expenses |
13,370 |
9,349 |
7,934 |
7,818 |
7,781 |
TOTAL NON-INTEREST
EXPENSE |
44,551 |
41,678 |
30,903 |
30,319 |
31,912 |
NET INCOME BEFORE INCOME
TAXES |
5,284 |
4,584 |
9,893 |
9,502 |
8,557 |
Provision for income
taxes |
932 |
798 |
2,961 |
2,926 |
2,620 |
NET INCOME |
$ 4,352 |
$ 3,786 |
$ 6,932 |
$ 6,576 |
$ 5,937 |
BASIC EARNINGS PER
SHARE |
$ 0.27 |
$ 0.23 |
$ 0.43 |
$ 0.40 |
$ 0.36 |
DILUTED EARNINGS PER
SHARE |
$ 0.27 |
$ 0.23 |
$ 0.43 |
$ 0.40 |
$ 0.36 |
|
|
|
|
|
|
|
|
|
|
Simmons First
National Corporation |
|
|
|
SFNC |
Consolidated Risk-Based
Capital |
|
|
|
|
|
For the Quarters
Ended |
Mar 31 |
Dec 31 |
Sep 30 |
Jun 30 |
Mar 31 |
(Unaudited) |
2014 |
2013 |
2013 |
2013 |
2013 |
(in thousands) |
|
|
|
|
|
Tier 1 capital |
|
|
|
|
|
Stockholders' equity |
$ 406,672 |
$ 403,832 |
$ 403,034 |
$ 401,850 |
$ 406,454 |
Trust preferred securities, net
allowable |
20,000 |
20,000 |
20,000 |
20,000 |
20,000 |
Disallowed intangible assets,
net of deferred tax |
(74,477) |
(75,501) |
(49,727) |
(48,091) |
(48,529) |
Unrealized loss (gain) on AFS
securities |
2,119 |
3,002 |
2,601 |
2,410 |
(45) |
|
|
|
|
|
|
Total Tier 1 capital |
354,314 |
351,333 |
375,908 |
376,169 |
377,880 |
|
|
|
|
|
|
Tier 2 capital |
|
|
|
|
|
Qualifying unrealized gain on
AFS equity securities |
42 |
45 |
40 |
35 |
28 |
Qualifying allowance for loan
losses |
28,846 |
28,967 |
25,633 |
24,818 |
24,129 |
|
|
|
|
|
|
Total Tier 2 capital |
28,888 |
29,012 |
25,673 |
24,853 |
24,157 |
|
|
|
|
|
|
Total risk-based
capital |
$ 383,202 |
$ 380,345 |
$ 401,581 |
$ 401,022 |
$ 402,037 |
|
|
|
|
|
|
Risk weighted assets |
$ 2,651,970 |
$ 2,697,630 |
$ 2,047,198 |
$ 1,981,341 |
$ 1,925,199 |
|
|
|
|
|
|
Adjusted average assets for leverage
ratio |
$ 4,315,279 |
$ 3,811,793 |
$ 3,378,676 |
$ 3,434,844 |
$ 3,490,102 |
|
|
|
|
|
|
Ratios at end of
quarter |
|
|
|
|
|
Equity to assets |
9.25% |
9.21% |
11.71% |
11.74% |
11.47% |
Tangible common equity to
tangible assets |
7.29% |
7.23% |
9.98% |
10.06% |
9.84% |
Tier 1 leverage
ratio |
8.21% |
9.22% |
11.13% |
10.95% |
10.83% |
Tier 1 risk-based capital
ratio |
13.36% |
13.02% |
18.36% |
18.99% |
19.63% |
Total risk-based capital
ratio |
14.45% |
14.10% |
19.62% |
20.24% |
20.88% |
|
|
|
|
|
|
|
|
|
|
|
|
Simmons First National
Corporation |
|
|
|
|
SFNC |
Consolidated Loans and
Investments |
|
|
|
|
|
For the Quarters
Ended |
Mar 31 |
Dec 31 |
Sep 30 |
Jun 30 |
Mar 31 |
(Unaudited) |
2014 |
2013 |
2013 |
2013 |
2013 |
(in thousands) |
|
|
|
|
|
Legacy Loan Portfolio - End of Period
(1) |
|
|
|
|
|
Consumer |
|
|
|
|
|
Credit cards |
$ 172,609 |
$ 184,935 |
$ 177,463 |
$ 173,536 |
$ 171,599 |
Student loans |
24,415 |
25,906 |
28,392 |
30,106 |
31,835 |
Other consumer |
104,185 |
98,851 |
101,399 |
103,765 |
102,297 |
Total consumer |
301,209 |
309,692 |
307,254 |
307,407 |
305,731 |
Real Estate |
|
|
|
|
|
Construction |
168,147 |
146,458 |
161,024 |
142,902 |
136,099 |
Single-family
residential |
402,588 |
392,285 |
375,703 |
364,239 |
355,479 |
Other
commercial |
644,772 |
626,333 |
602,463 |
572,110 |
569,686 |
Total real
estate |
1,215,507 |
1,165,076 |
1,139,190 |
1,079,251 |
1,061,264 |
Commercial |
|
|
|
|
|
Commercial |
186,303 |
164,329 |
154,508 |
152,122 |
150,427 |
Agricultural |
72,239 |
98,886 |
135,633 |
107,113 |
68,028 |
Total
commercial |
258,542 |
263,215 |
290,141 |
259,235 |
218,455 |
Other |
4,351 |
4,655 |
4,576 |
4,502 |
3,627 |
Total Loans |
$ 1,779,609 |
$ 1,742,638 |
$ 1,741,161 |
$ 1,650,395 |
$ 1,589,077 |
|
|
|
|
|
|
(1) Excludes
all acquired loans, including those covered by FDIC loss share
agreements. |
|
|
|
|
|
|
Investment Securities - End of
Period |
|
|
|
|
|
Held-to-Maturity |
|
|
|
|
|
U.S. Government
agencies |
$ 425,616 |
$ 395,198 |
$ 313,052 |
$ 313,050 |
$ 288,480 |
Mortgage-backed
securities |
33,323 |
34,425 |
41 |
43 |
45 |
State and political
subdivisions |
317,056 |
315,445 |
268,055 |
241,751 |
199,368 |
Other
securities |
620 |
620 |
620 |
620 |
620 |
Total
held-to-maturity |
776,615 |
745,688 |
581,768 |
555,464 |
488,513 |
Available-for-Sale |
|
|
|
|
|
U.S. Government
agencies |
231,949 |
178,217 |
163,127 |
159,390 |
159,846 |
Mortgage-backed
securities |
1,833 |
1,891 |
1,994 |
2,078 |
15,891 |
State and political
subdivisions |
7,367 |
7,861 |
1,263 |
1,262 |
1,417 |
FHLB stock |
5,168 |
6,002 |
5,085 |
5,353 |
5,325 |
Other
securities |
14,676 |
14,321 |
8,468 |
9,448 |
9,686 |
Total
available-for-sale |
264,974 |
212,277 |
179,937 |
177,531 |
192,165 |
Total investment
securities |
$ 1,041,589 |
$ 957,965 |
$ 761,705 |
$ 732,995 |
$ 680,678 |
Fair value - HTM
investment securities |
$ 771,114 |
$ 731,705 |
$ 570,703 |
$ 543,154 |
$ 491,556 |
|
|
|
|
|
|
Investment Securities - QTD
Average |
|
|
|
|
|
Taxable
securities |
$ 649,329 |
$ 583,389 |
$ 490,801 |
$ 478,946 |
$ 485,711 |
Tax exempt
securities |
323,000 |
294,639 |
255,129 |
214,289 |
203,422 |
Total investment
securities - QTD average |
$ 972,329 |
$ 878,028 |
$ 745,930 |
$ 693,235 |
$ 689,133 |
|
|
|
|
|
|
Simmons First National
Corporation |
|
SFNC |
Consolidated Loans and Credit
Coverage |
|
|
For the Quarters
Ended |
Mar 31 |
Dec 31 |
(Unaudited) |
2014 |
2013 |
(in
thousands) |
|
|
LOANS |
|
|
Legacy loans |
$ 1,779,609 |
$ 1,742,638 |
Allowance for loan
losses |
(26,983) |
(27,442) |
Legacy loans (net of
allowance) |
1,752,626 |
1,715,196 |
Loans acquired, not
covered by FDIC loss share |
495,915 |
566,895 |
Credit
discount |
(45,626) |
(51,251) |
Loans acquired, not
covered (net of discount) |
450,289 |
515,644 |
Loans acquired, covered
by FDIC loss share |
188,755 |
209,459 |
Credit
discount |
(50,876) |
(62,806) |
Loans acquired, covered
(net of discount) |
137,879 |
146,653 |
Net loans |
$ 2,340,794 |
$ 2,377,493 |
|
|
|
|
|
|
Loan Coverage
Ratios |
|
|
Allowance for loan losses to
legacy loans |
1.52% |
1.57% |
|
|
|
Discount for credit losses on
loans acquired, not covered, to total loans acquired, not
covered, plus discount for credit losses on loans acquired,
not covered |
9.20% |
9.04% |
|
|
|
Discount for credit losses on
loans acquired, covered, to total loans acquired, covered,
plus discount for credit losses on loans acquired,
covered |
26.95% |
29.98% |
|
|
|
Total allowance and
credit coverage |
5.01% |
5.62% |
|
|
|
|
|
|
|
|
|
|
Simmons First
National Corporation |
|
|
|
SFNC |
Consolidated Allowance and
Asset Quality |
|
|
|
|
|
For the Quarters
Ended |
Mar 31 |
Dec 31 |
Sep 30 |
Jun 30 |
Mar 31 |
(Unaudited) |
2014 |
2013 |
2013 |
2013 |
2013 |
(in thousands) |
|
|
|
|
|
Allowance for Loan
Losses |
|
|
|
|
|
Balance, beginning of
quarter |
$ 27,442 |
$ 27,533 |
$ 27,398 |
$ 27,735 |
$ 27,882 |
Loans charged off |
|
|
|
|
|
Credit cards |
816 |
841 |
770 |
743 |
909 |
Other consumer |
148 |
428 |
449 |
310 |
374 |
Real estate |
1,035 |
255 |
247 |
887 |
239 |
Commercial |
82 |
133 |
20 |
133 |
96 |
Total loans charged
off |
2,081 |
1,657 |
1,486 |
2,073 |
1,618 |
|
|
|
|
|
|
Recoveries of loans previously
charged off |
|
|
|
|
|
Credit cards |
271 |
226 |
235 |
204 |
236 |
Other consumer |
121 |
166 |
114 |
116 |
195 |
Real estate |
308 |
78 |
151 |
295 |
68 |
Commercial |
14 |
12 |
40 |
87 |
53 |
Total recoveries |
714 |
482 |
540 |
702 |
552 |
Net loans charged
off |
1,367 |
1,175 |
946 |
1,371 |
1,066 |
Provision for loan
losses |
908 |
1,084 |
1,081 |
1,034 |
919 |
Balance, end of
quarter |
$ 26,983 |
$ 27,442 |
$ 27,533 |
$ 27,398 |
$ 27,735 |
|
|
|
|
|
|
Non-performing assets (1)
(2) |
|
|
|
|
|
Non-performing loans |
|
|
|
|
|
Nonaccrual loans |
|
|
|
|
|
Real estate |
$ 8,075 |
$ 4,799 |
$ 4,157 |
$ 4,327 |
$ 6,963 |
Commercial |
1,054 |
495 |
525 |
526 |
602 |
Consumer |
883 |
967 |
1,293 |
1,410 |
1,203 |
Total nonaccrual
loans |
10,012 |
6,261 |
5,975 |
6,263 |
8,768 |
Loans past due 90 days or
more |
|
|
|
|
|
Government guaranteed student
loans |
1,965 |
2,264 |
2,966 |
2,254 |
2,283 |
Other loans |
517 |
687 |
725 |
879 |
661 |
Total loans past due 90 days or
more |
2,482 |
2,951 |
3,691 |
3,133 |
2,944 |
Total non-performing
loans |
12,494 |
9,212 |
9,666 |
9,396 |
11,712 |
Other non-performing
assets |
|
|
|
|
|
Foreclosed assets held for
sale |
17,357 |
19,361 |
20,493 |
21,804 |
21,253 |
Acquired foreclosed assets held
for sale, not covered by FDIC loss share agreements |
40,119 |
45,459 |
5,710 |
8,586 |
9,461 |
Other non-performing
assets |
60 |
75 |
60 |
80 |
238 |
Total other non-performing
assets |
57,536 |
64,895 |
26,263 |
30,470 |
30,952 |
Total non-performing
assets |
$ 70,030 |
$ 74,107 |
$ 35,929 |
$ 39,866 |
$ 42,664 |
Performing TDRs (troubled debt
restructurings) |
$ 8,655 |
$ 9,497 |
$ 9,584 |
$ 10,473 |
$ 10,745 |
|
|
|
|
|
|
Ratios (1) (2) |
|
|
|
|
|
Allowance for loan losses to
total loans |
1.52% |
1.57% |
1.58% |
1.66% |
1.75% |
Allowance for loan losses to
non-performing loans |
216% |
298% |
285% |
292% |
237% |
Non-performing loans to total
loans |
0.70% |
0.53% |
0.56% |
0.57% |
0.74% |
Non-performing assets
(including performing TDRs) to total assets |
1.79% |
1.91% |
1.32% |
1.47% |
1.51% |
Non-performing assets to total
assets |
1.59% |
1.69% |
1.04% |
1.17% |
1.20% |
Non-performing assets to total
assets |
|
|
|
|
|
(excluding Gov't guaranteed
student loans) |
1.55% |
1.64% |
0.96% |
1.10% |
1.14% |
Annualized net charge offs to
total loans |
0.32% |
0.27% |
0.22% |
0.34% |
0.27% |
Annualized net credit card
charge offs to total credit card loans |
1.20% |
1.31% |
1.21% |
1.25% |
1.53% |
Annualized net charge offs to
total loans |
|
|
|
|
|
(excluding credit
cards) |
0.22% |
0.14% |
0.11% |
0.23% |
0.11% |
Past due loans >30 days
(excluding nonaccrual) |
0.61% |
0.57% |
0.62% |
0.54% |
0.64% |
Past due loans >30 days
(excluding nonaccrual) |
|
|
|
|
|
(excluding Gov't guaranteed
student loans) |
0.45% |
0.41% |
0.36% |
0.35% |
0.40% |
|
|
|
|
|
|
(1) Excludes all acquired
loans, including those covered by FDIC loss share agreements,
except for their inclusion in total assets. |
(2) Excludes acquired
foreclosed assets covered by FDIC loss share agreements, except for
their inclusion in total assets. |
|
|
|
|
|
|
|
|
|
|
Simmons First
National Corporation |
|
|
|
SFNC |
Consolidated - Net
Interest Income Analysis |
|
|
|
|
For the Quarters
Ended |
Mar 31 |
Dec 31 |
Sep 30 |
Jun 30 |
Mar 31 |
(Unaudited) |
2014 |
2013 |
2013 |
2013 |
2013 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Earning Assets |
|
|
|
|
|
Interest bearing balances due
from banks |
0.22% |
0.23% |
0.25% |
0.27% |
0.21% |
Investment securities |
2.60% |
2.44% |
2.52% |
2.37% |
2.33% |
Mortgage loans held for
sale |
4.20% |
4.29% |
3.98% |
3.34% |
3.23% |
Assets held in trading
accounts |
0.28% |
0.27% |
0.27% |
0.29% |
0.52% |
Loans, including acquired
loans |
6.88% |
7.16% |
6.32% |
6.27% |
6.32% |
Total interest earning
assets |
4.91% |
5.08% |
4.63% |
4.35% |
4.41% |
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
Interest bearing liabilities |
|
|
|
|
|
Interest bearing transaction
and savings accounts |
0.15% |
0.16% |
0.17% |
0.17% |
0.17% |
Time deposits |
0.58% |
0.63% |
0.67% |
0.71% |
0.75% |
Total interest bearing
deposits |
0.31% |
0.33% |
0.35% |
0.36% |
0.39% |
Federal funds purchased and
securities sold under agreement to repurchase |
0.19% |
0.22% |
0.27% |
0.24% |
0.22% |
Other borrowings |
3.48% |
3.39% |
3.39% |
3.47% |
3.55% |
Subordinated debentures |
3.09% |
3.10% |
3.12% |
3.15% |
3.13% |
Total interest bearing
liabilities |
0.44% |
0.47% |
0.47% |
0.48% |
0.51% |
|
|
|
|
|
|
NET INTEREST
MARGIN/SPREAD |
|
|
|
|
|
|
|
|
|
|
|
Net interest spread |
4.47% |
4.61% |
4.16% |
3.87% |
3.90% |
Net interest margin -
quarter-to-date |
4.54% |
4.70% |
4.27% |
3.96% |
4.01% |
Net interest margin - year-to-date |
4.54% |
4.21% |
4.08% |
3.98% |
4.01% |
|
|
|
|
|
|
|
|
|
|
Simmons First
National Corporation |
|
|
|
SFNC |
Consolidated - Selected
Financial Data |
|
|
|
|
|
For the Quarters
Ended |
Mar 31 |
Dec 31 |
Sep 30 |
Jun 30 |
Mar 31 |
(Unaudited) |
2014 |
2013 |
2013 |
2013 |
2013 |
($ in thousands, except share
data) |
|
|
|
|
|
QUARTER-TO-DATE |
|
|
|
|
|
Diluted earnings per
share |
$ 0.27 |
$ 0.23 |
$ 0.43 |
$ 0.40 |
$ 0.36 |
Core earnings (excludes
nonrecurring items) (non-GAAP) |
7,482 |
7,749 |
7,371 |
6,409 |
6,083 |
Diluted core earnings per share
(non-GAAP) |
0.46 |
0.48 |
0.45 |
0.39 |
0.37 |
Cash dividends declared per
common share |
0.22 |
0.21 |
0.21 |
0.21 |
0.21 |
Cash dividends declared -
amount |
3,575 |
3,403 |
3,401 |
3,434 |
3,469 |
Return on average stockholders'
equity |
4.31% |
3.67% |
6.80% |
6.46% |
5.89% |
Return on tangible
equity |
5.87% |
4.51% |
8.18% |
7.76% |
7.09% |
Return on average
assets |
0.40% |
0.39% |
0.80% |
0.76% |
0.68% |
Net interest margin
(FTE) |
4.54% |
4.70% |
4.27% |
3.96% |
4.01% |
FTE adjustment -
investments |
1,682 |
1,442 |
1,313 |
1,083 |
1,062 |
FTE adjustment -
loans |
10 |
17 |
11 |
12 |
11 |
Amortization of
intangibles |
364 |
192 |
135 |
137 |
137 |
Amortization of intangibles,
net of taxes |
221 |
117 |
82 |
83 |
83 |
Average shares
outstanding |
16,270,149 |
16,210,480 |
16,220,199 |
16,414,893 |
16,516,438 |
Average earning
assets |
3,861,632 |
3,466,530 |
3,059,023 |
3,106,504 |
3,151,590 |
Average interest bearing
liabilities |
3,204,356 |
2,774,880 |
2,427,714 |
2,481,430 |
2,527,848 |
|
|
|
|
|
|
YEAR-TO-DATE |
|
|
|
|
|
Diluted earnings per
share |
$ 0.27 |
$ 1.42 |
$ 1.19 |
$ 0.76 |
$ 0.36 |
Core earnings (excludes
nonrecurring items) (non-GAAP) |
7,482 |
27,612 |
19,863 |
12,492 |
6,083 |
Diluted core earnings per share
(non-GAAP) |
0.46 |
1.69 |
1.21 |
0.76 |
0.37 |
Cash dividends declared per
common share |
0.22 |
0.84 |
0.63 |
0.42 |
0.21 |
Cash dividends declared -
amount |
3,575 |
13,707 |
10,304 |
6,903 |
3,469 |
Return on average stockholders'
equity |
4.31% |
5.33% |
6.39% |
6.18% |
5.89% |
Return on tangible
equity |
5.87% |
6.36% |
7.68% |
7.43% |
7.09% |
Return on average
assets |
0.40% |
0.64% |
0.75% |
0.72% |
0.68% |
Net interest margin
(FTE) |
4.54% |
4.21% |
4.08% |
3.98% |
4.01% |
FTE adjustment -
investments |
1,682 |
4,900 |
3,458 |
2,145 |
1,062 |
FTE adjustment -
loans |
10 |
51 |
34 |
23 |
11 |
Amortization of
intangibles |
364 |
601 |
409 |
274 |
137 |
Amortization of intangibles,
net of taxes |
221 |
365 |
248 |
166 |
83 |
Average shares
outstanding |
16,270,149 |
16,339,335 |
16,382,758 |
16,465,385 |
16,516,438 |
Average diluted shares
outstanding |
16,309,868 |
16,352,167 |
16,388,393 |
16,468,814 |
16,520,398 |
Average earning
assets |
3,861,632 |
3,224,094 |
3,105,706 |
3,129,048 |
3,151,590 |
Average interest bearing
liabilities |
3,204,356 |
2,551,653 |
2,477,899 |
2,503,992 |
2,527,848 |
|
|
|
|
|
|
END OF PERIOD |
|
|
|
|
|
Book value per share |
$ 24.93 |
$ 24.89 |
$ 24.88 |
$ 24.67 |
$ 24.62 |
Tangible book value per
share |
19.23 |
19.10 |
20.80 |
20.74 |
20.73 |
Shares outstanding |
16,311,263 |
16,226,256 |
16,198,964 |
16,289,239 |
16,509,666 |
Full-time equivalent
employees |
1,321 |
1,343 |
1,097 |
1,114 |
1,112 |
Total number of
ATM's |
120 |
157 |
106 |
110 |
110 |
Total number of financial
centers |
104 |
131 |
87 |
92 |
92 |
Parent company only -
investment in subsidiaries |
453,067 |
452,688 |
371,531 |
369,965 |
370,728 |
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 |
Mar 31 |
Dec 31 |
Sep 30 |
Jun 30 |
Mar 31 |
(Unaudited) |
2014 |
2013 |
2013 |
2013 |
2013 |
(in thousands, except per share
data) |
|
|
|
|
|
QUARTER-TO-DATE |
|
|
|
|
|
Net Income |
$ 4,352 |
$ 3,786 |
$ 6,932 |
$ 6,576 |
$ 5,937 |
Nonrecurring items |
|
|
|
|
|
Merger related costs |
1,272 |
6,413 |
190 |
(467) |
240 |
Loss on sale of securities |
-- |
-- |
-- |
193 |
-- |
Branch right sizing |
3,878 |
108 |
533 |
-- |
-- |
Tax effect |
(2,020) |
(2,558) |
(284) |
107 |
(94) |
Net nonrecurring
items |
3,130 |
3,963 |
439 |
(167) |
146 |
Core earnings
(non-GAAP) |
$ 7,482 |
$ 7,749 |
$ 7,371 |
$ 6,409 |
$ 6,083 |
|
|
|
|
|
|
Diluted earnings per
share |
$ 0.27 |
$ 0.23 |
$ 0.43 |
$ 0.40 |
$ 0.36 |
Nonrecurring items |
|
|
|
|
|
Merger related costs |
0.08 |
0.40 |
0.01 |
(0.03) |
0.01 |
Loss on sale of securities |
-- |
-- |
-- |
0.01 |
-- |
Branch right sizing |
0.24 |
0.01 |
0.03 |
-- |
-- |
Tax effect |
(0.13) |
(0.16) |
(0.02) |
0.01 |
-- |
Net nonrecurring
items |
0.19 |
0.25 |
0.02 |
(0.01) |
0.01 |
Diluted core earnings per share
(non-GAAP) |
$ 0.46 |
$ 0.48 |
$ 0.45 |
$ 0.39 |
$ 0.37 |
|
|
|
|
|
|
YEAR-TO-DATE |
|
|
|
|
|
Net Income |
$ 4,352 |
$ 23,231 |
$ 19,445 |
$ 12,513 |
$ 5,937 |
Nonrecurring items |
|
|
|
|
|
Merger related costs |
1,272 |
6,376 |
(37) |
(227) |
240 |
Loss on sale of securities |
-- |
193 |
193 |
193 |
-- |
Branch right sizing |
3,878 |
641 |
533 |
-- |
-- |
Tax effect |
(2,020) |
(2,829) |
(271) |
13 |
(94) |
Net nonrecurring
items |
3,130 |
4,381 |
418 |
(21) |
146 |
Core earnings
(non-GAAP) |
$ 7,482 |
$ 27,612 |
$ 19,863 |
$ 12,492 |
$ 6,083 |
|
|
|
|
|
|
Diluted earnings per
share |
$ 0.27 |
$ 1.42 |
$ 1.19 |
$ 0.76 |
$ 0.36 |
Nonrecurring items |
|
|
|
|
|
Merger related costs |
0.08 |
0.39 |
(0.01) |
(0.02) |
0.01 |
Loss on sale of securities |
-- |
0.01 |
0.01 |
0.01 |
-- |
Branch right sizing |
0.24 |
0.04 |
0.03 |
-- |
-- |
Tax effect |
(0.13) |
(0.17) |
(0.01) |
0.01 |
-- |
Net nonrecurring
items |
0.19 |
0.27 |
0.02 |
-- |
0.01 |
Diluted core earnings per share
(non-GAAP) |
$ 0.46 |
$ 1.69 |
$ 1.21 |
$ 0.76 |
$ 0.37 |
CONTACT: DAVID W. GARNER
Executive Vice President and Investor Relations Officer
Simmons First National Corporation
(870) 541-1000
Grafico Azioni Simmons First National (NASDAQ:SFNC)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Simmons First National (NASDAQ:SFNC)
Storico
Da Lug 2023 a Lug 2024