Simmons First Has Historic Year

Simmons First National Bank closed the books on a historic year with a flat fourth quarter performance, but the bank’s chief executive said two historic acquisitions will grow future earnings.

For the period ended Dec. 31, the Pine Bluff bank reported fourth quarter earnings of $16.6 million, or 96 cents per share, up a whopping 144 percent from $6.8 million or 44 cents per share in the same period a year ago.

However, excluding all non-recurring items, fourth quarter core earnings were $6.8 million, or 40 cents per share. Analysts, on average, expected the Pine Bluff bank to report fourth quarter earnings of 40 cents per share, according to Thomson Reuters.

For the year, Simmons reported net income of $37.1 million or $2.15 per share, an increase of $11.9 million, or 47 percent compared to net income of $25.2 million, or $1.74 per share in fiscal 2009. Excluding special items, Simmons net earnings were $26 million, or $1.51 per share.

In 2010, Simmons expanded its footprint with the aid of two FDIC-assisted acquisitions in Missouri and Kansas. The most recent expansion occurred in October with the takeover of Security Savings Bank in Olathe, Kan., resulting in several new branches in the Kansas City metropolitan area.

Earlier in May 2010, Simmons acquired Southwest Community Bank in Springfield, Mo., the bank’s first foray outside the state of Arkansas.

"We are excited about our expansion beyond the borders of Arkansas into Missouri and Kansas. We are pleased with our 2010 results, which resulted in a significant bargain purchase gain on two acquisitions, record net interest income, good expense control through our efficiency initiatives and continued good asset quality compared to the rest of the industry," said J. Thomas May, Chairman and CEO.

May added that Simmons "excess capital positions us to continue to take advantage of unprecedented acquisition opportunities through FDIC assisted transactions of failed banks."

"We have seen the dilutive impact of the offering over the past five quarters; in contrast, going forward we will see the accretive impact from our two acquisitions beginning in the first quarter of 2011," the Simmons CEO said.

Overall, Simmons total assets at year’s end were $3.3 billion, up 7.2% from $3.1 billion a year ago.  Total loans, excluding those covered by FDIC loss share agreements, were $1.7 billion, a decrease of 10.2% from the same period in 2009.

Total deposits were $2.6 billion, an increase of $177 million, or 7.3% compared to the same period in 2009. The yearly deposits include $231 million of previously acquired deposits in Missouri and Kansas. Stockholders’ equity was $397 million, putting the book value of the bank’s shares at $23.01.

Investors are paying $28.94 for Simmons shares, ahead of Thursday’s opening bell. The fast-growing Arkansas bank touched a 52-week high of $30.16 on Jan. 4, and has traded up nearly 20 percent for the year.