PINE BLUFF, Ark., Oct. 20, 2011 (GLOBE NEWSWIRE) -- Simmons First National Corporation (Nasdaq:SFNC) today announced net income of $7.3 million and diluted earnings per share of $0.42 for the quarter ended September 30, 2011, compared to $7.6 million, or $0.44 diluted EPS for the same quarter last year. Regarding the quarterly earnings, J. Thomas May, Chairman and CEO, commented, "The primary driver for this slight decrease is a $2.0 million reduction of premiums on the sale of student loans, which we anticipated. This reduction of income equates to a decrease of $0.07 diluted EPS. Beginning with the 2010-2011 school year, the private sector was excluded from originating Government guaranteed student loans as a result of the irrational decision by the administration and congress."

"While we remain disappointed with the lack of loan demand throughout our markets, it was expected based on the economy and it is likely to continue throughout 2011. Considering the negative impact on non-interest income created by regulatory and legislative actions, coupled with the negative impact of historically low interest rates on margins, we are pleased with our third quarter earnings performance," added May.

Total assets were $3.3 billion at September 30, 2011, an increase of 9.1% from $3.0 billion at September 30, 2010.

Loans

Total loans, including those covered by FDIC loss share agreements, were $1.8 billion at September 30, 2011, an increase of $26 million, or 1.5%, from the same period in 2010. "In our legacy portfolio, we experienced a decrease of $108 million, or 6.2%, compared to September 30, 2010. Additionally, like the rest of the industry, we continue to experience weak loan demand as a result of a slow economy. We believe loan demand is likely to remain soft throughout the remainder of 2011, but we remain committed and positioned to meet the borrowing needs of our consumer and business customers," commented May. Loans covered by FDIC loss share agreements, which provide 80% Government guaranteed protection against credit risk on those covered assets, were $172 million at September 30, 2011.

Deposits

At September 30, 2011, total deposits were $2.6 billion, an increase of $253 million, or 10.6%, compared to the same period in 2010. The September 30, 2011, deposits include $192 million of deposits in Missouri and Kansas. "While we continue our efforts to manage our high levels of liquidity, we remain focused on creating core deposit growth. We are very pleased with our ratio of non-time deposits as a percent of total deposits, which is a very favorable 66%," added May.

Net Interest Income

The Company's net interest income for the third quarter of 2011 increased 4.7% to $27.3 million compared to the same period of 2010. The increase in net interest income was primarily due to a higher yield on covered loans acquired through acquisitions compared to the yield on loans in the legacy portfolio, along with an increase in earning assets and a continued decrease in cost of funds. Net interest margin was 3.86%, a decrease of 16 basis points from the third quarter of 2010.

Non-Interest Income

Non-interest income for the third quarter of 2011 was $13.7 million, a decrease of $1.1 million, or 7.4%, compared to the same period last year. "As I mentioned earlier, the cause for the decrease in non-interest income is the $2.0 million reduction of premiums on the sale of student loans," reiterated May.

Non-Interest Expense

Non-interest expense for the third quarter of 2011 was $27.6 million, an increase of $875,000, compared to the same period in 2010.  Non-interest expense includes $1.7 million in incremental normal operating expense associated with the Company's Kansas FDIC-assisted transaction. "Normalizing for the Kansas acquisitions, non-interest expense decreased by $788,000, or 2.9%, compared to the same quarter last year. This decrease in normalized non-interest expense is the result of the implementation of our efficiency initiatives and a decrease in deposit insurance premiums as a result of changes in the FDIC's assessment base and rates," according to May.

Asset Quality

During 2010, the Company 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 such loans and OREO. The loans and OREO covered by the FDIC loss share agreements and the related FDIC loss share indemnification asset were presented in the Company's financial reports as "covered" assets (i.e., covered by the FDIC loss share agreements) with a carrying value equal to the discounted net present value of expected future proceeds. At September 30, 2011, loans covered by loss share were carried at $172 million (net of discount), OREO covered by loss share was carried at $14 million (net of discount) and the FDIC loss share indemnification asset was carried at $52 million. As a result of the FDIC loss share indemnification related to these assets and the discounted net present value method of valuing these assets, such assets are excluded from the computations of the following asset quality ratios, except for their inclusion in total assets.

The Company's allowance for loan losses was $29.2 million at September 30, 2011, or 1.79% of total loans and 157% of non-performing loans. Non-performing assets as a percent of total assets were 1.24% as of September 30, 2011, a decrease from 1.27% as of June 30, 2011. Non-performing loans as a percent of total loans were 1.14% as of September 30, 2011, unchanged from June 30, 2011. These ratios include $2.5 million of Government guaranteed student loans that were over 90 days past due at the end of the quarter. Excluding the guaranteed past due student loans, non-performing assets as a percent of total assets were 1.17% and non-performing loans as a percent of total loans were 0.99%.

Excluding credit cards, the Company's annualized net charge-off ratio was 0.17% for the third quarter of 2011 and 0.31% for the first nine months of 2011. The credit card annualized net charge-off ratio decreased to 1.94%, compared to 2.24% for the third quarter of 2010. The Company's credit card loss ratio is more than 400 basis points below the most recently published credit card charge-off industry average of over 6%.

Capital

At September 30, 2011, stockholders' equity was $408 million, book value per share was $23.52 and tangible book value per share was $19.92. The Company's ratio of stockholders' equity to total assets was 12.4% and its ratio of tangible stockholders' equity to tangible assets was 10.7%, as of September 30, 2011.

"Our exceptional level of capital puts us in the 90^th percentile of our peer group and allows us to actively pursue the right opportunities that meet our strategic plan regarding mergers and acquisitions," continued May. As of September 30, 2011, the Company's regulatory capital ratios remain significantly higher than regulatory "well capitalized" guidelines:

Simmons First National Corporation

Simmons First National Corporation is an eight bank financial holding company with community banks in Pine Bluff, Lake Village, Jonesboro, Rogers, Searcy, Russellville, El Dorado and Hot Springs, Arkansas. The Company's eight banks conduct financial operations from 88 offices, of which 84 are financial centers, in 47 communities in Arkansas, Missouri and Kansas. The Company's common stock trades on the NASDAQ Global Select Market under the symbol "SFNC".

The Simmons First National Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4819

Conference Call

Management will conduct a conference call to review this information beginning at 3:00 p.m. Central Time on Thursday, October 20, 2011. Interested persons can listen to this call by dialing 1-800-854-4175 (United States and Canada only) and asking for the Simmons First National Corporation conference call. A replay of the call will be available through 5:00 p.m. Central Time on October 27, 2011, by dialing 1-855-859-2056 or 800-585-8367. The passcode for the replay is 16445276. In addition, the call will be available live or in recorded version on the Company's website at www.simmonsfirst.com.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles (GAAP). The Company's management uses these non-GAAP financial measures in their analysis of the Company's performance. These measures typically adjust GAAP performance measures to exclude the effects of the amortization of intangibles and include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant activities or nonrecurring transactions. Since the presentation of these non-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.

CONTACT: DAVID W. GARNER
         Senior Vice President and Investor Relations Officer
         Simmons First National Corporation
         (870) 541-1000