Metropolitan Merger Costs Drop Simmons First Overall Net Income

Simmons First National Corporation’s $53.6 million buyout of Little Rock-based Metropolitan took a toll on fourth quarter and year-to-date net income.

The Pine Bluff-based bank holding company reported fourth quarter net income of $3.8 million, down from $8 million in the previous year’s fourth quarter. Simmons said core earnings were $7.7 million when one-time expenses were factored out.

For the full year, Simmons First reported net income of $23.23 million, compared to $27.68 million one year ago. Simmons said that core earnings were $27.61 million, up from $26.87 million in the previous year.

Core earnings factor out one-time expenses, gains and losses from non-recurring expenses, and unusual items.

“We are pleased with the core earnings results for the fourth quarter and for the year. As a result of our fourth quarter acquisition of Metropolitan National Bank, other recent 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,” said George A. Makris, Jr., Simmons First Chairman and CEO.

Other financial highlights include:

• Total loans, including those acquired, were $2.4 billion at December 31, 2013, an increase of $483 million, or 25.1%, compared to the same period in 2012.
• At December 31, 2013, total deposits were $3.7 billion, an increase of $823 million, or 28.7%, compared to the same period in 2012.
• The company’s net interest income for the fourth quarter of 2013 was $39.6 million, an increase of $9.0 million, or 29.5%, from the same period of 2012.
• Non-interest income for the fourth quarter was $7.7 million, a decrease of $7.0 million, compared to the third quarter of 2012.

Simmons First announced in September that it was the winning bidder of Metropolitan National Bank, whose holding company had filed for bankruptcy. Simmons disclosed last week that it would close 27 branches as a part of the merger and it would close an additional branch due to underperformance.

Simmons First opened trading on Thursday (Jan. 23) around $37 per share. The company’s stock has traded between $23.16 and $38.54 per share during the past year.