a5587512.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Exchange Act of 1934

Date of Report (Date of earliest event reported) January 17, 2008


SIMMONS FIRST NATIONAL CORPORATION
(Exact name of registrant as specified in its charter)


Arkansas
0-6253
71-0407808
 (State or other jurisdiction
(Commission
(I.R.S. Employer
of incorporation)
 File Number)
 Identification No.)
 

501 Main Street, Pine Bluff, Arkansas
  
71601
(Address of principal executive offices)
  
(Zip Code)


(870) 541-1000
(Registrant's telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report.)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
ITEM: 2.02                    RESULTS OF OPERATIONS AND FINANCIAL CONDITION

The following is the text of a press release issued by the registrant at 8:15 a.m. Central Time on January 17, 2008.

SIMMONS FIRST ANNOUNCES FOURTH QUARTER EARNINGS

Pine Bluff, AR – Simmons First National Corporation (NASDAQ-GS: SFNC) today announced fourth quarter 2007 operating earnings (net income excluding nonrecurring items) of $6.9 million, or $0.49 diluted operating earnings per share, an increase of $186,000, or $0.02 diluted operating earnings per share from the same period in 2006.  This represents a 2.8% increase in operating earnings and a 4.3% increase in diluted operating earnings per share over the comparable period in 2006.  During the fourth quarter the Company recorded a nonrecurring $0.05 reduction in earnings per share to recognize the Company’s pro-rata portion of Visa, Inc.’s litigation liabilities.  Including the nonrecurring expense, Simmons First’s fourth quarter 2007 earnings were $6.2 million, or $0.44 diluted earnings per share.

“Considering the challenges of our national economy, we are very pleased with our quarterly and annual operating earnings performance,” commented J. Thomas May, Chairman and Chief Executive Officer.  “Following the guidance of Visa, Inc. and the Securities and Exchange Commission, most member banks have reported a nonrecurring expense associated with the litigation liability during the fourth quarter of 2007.  We expect to record a similar nonrecurring gain when Visa completes its IPO during the first half of 2008.  As mentioned in our 8-K filings, this contingent liability is created based on member banks’ pro-rata ownership.  We believe that the ownership in Visa will produce significant value to our shareholders going forward.”

Operating earnings for the year ended December 31, 2007, were $28.1 million, or $1.97 diluted operating earnings per share.  These operating earnings reflect a 3.9% increase on a diluted operating per share basis when compared to operating earnings for the same period last year.  For the twelve month period ended December 31, 2007, the Company reported net income after nonrecurring expenses of $27.4 million, or $1.92 diluted earnings per share.

The Company’s net interest income for the fourth quarter of 2007 increased 5.6% to $23.5 million compared to $22.3 million for 2006.  Net interest margin increased 14 basis points to 4.00% from the fourth quarter of 2006 and declined one basis point from the third quarter of 2007.

The Company’s loan portfolio totaled $1.85 billion at December 31, 2007 compared to $1.78 billion at December 31, 2006, an increase of 3.8%.  The growth was primarily attributable to increases in commercial loans, real estate loans and the credit card portfolio.  More specifically, the credit card portfolio increased $22.7 million, or 15.8% compared to the prior year.

Asset quality remained strong with the allowance for loan losses as a percent of total loans at 1.37% as of December 31, 2007.  Non-performing loans equaled 0.60% of total loans, while the allowance for loan losses equaled 226% of non-performing loans.  The Company’s annualized net charge-offs to total loans for the fourth quarter of 2007 were 0.33%.  Excluding credit cards, the annualized net charge-offs to total loans for the fourth quarter were 0.26%.  Annualized net credit card charge-offs for the fourth quarter were 1.12%, approximately 300 basis points below the most recently published credit card charge-off industry average.

 
Total assets for the Company were $2.7 billion and deposits were $2.2 billion at December 31, 2007. Stockholders’ equity increased 5.2% to $272 million at December 31, 2007 compared to $259 million at December 31, 2006.  Book value per share increased 7.3% to $19.57 at December 31, 2007 compared to $18.24 at December 31, 2006.  “Simmons First is well positioned based on the strength of its capital and asset quality to deal with the challenges and opportunities that we face in 2008,” added May.

In October 2007, Simmons First, as a member of Visa U.S.A., received shares of restricted stock in Visa, Inc. (Visa) as a result of its preparation for an initial public offering.  Visa U.S.A. believes that its member banks are required to indemnify Visa U.S.A. for potential losses arising from certain covered litigation.  Although Simmons First has not accepted the Visa U.S.A.’s assertions, Simmons First has determined that it is required to recognize certain contingent obligations.  Simmons First filed two Form 8-K’s with the Securities and Exchange Commission in December related to Visa’s ongoing litigation.  The first Form 8-K, filed on December 17, reported that Simmons First recorded a $928,000, or $0.04 earnings per share expense related to Visa’s settlement of a lawsuit with American Express.  Simmons First filed another Form 8-K on December 28 to report an additional expense of $292,000, or $0.01 earnings per share related to its pro-rata portion of Visa’s estimated contingent liability in the Discover lawsuit.  These two contingent liabilities total $1.2 million, or a $0.05 reduction in earnings per share.  At this time, with respect to the remaining covered litigation, Simmons First does not know the probable outcome of such litigation and cannot reasonably estimate a range of loss.  The Company will continue to monitor both the litigation and Visa’s proposed IPO, and will properly reflect these activities in its financial statements, when and if appropriate.

As reported in the Form 8-K’s, as well as in Visa’s Form 8-K filed on November 7, upon successful completion of Visa’s first quarter 2008 IPO, Visa will establish an escrow account to fund the litigation liabilities.  Thus, provided that the escrow account has sufficient funds, the liability will no longer be required, and Simmons First will reverse the $1.2 million liability and record a non-operating gain of $0.05 earnings per share.

Simmons First made its initial entry into the Paragould market with the opening of a new financial center in December.  In addition, a new financial center in Little Rock – Midtown (near War Memorial Stadium and UAMS) and a new regional headquarters in Rogers, for the Northwest Arkansas affiliate, are under construction and scheduled to open in early 2008.

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 86 offices, of which 83 are financial centers, in 48 communities.
 
 
CONFERENCE CALL

Management will conduct a conference call to review this information at 3:00 p.m. Central Time on Thursday, January 17, 2008.  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 29612467 and the recording will be available through the end of business January 31, 2008.  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.

####

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

 
Simmons First National Corporation
                          
SFNC
  
Consolidated End of Period Balance Sheets
                              
For the Quarters Ended
  
Dec 31
    
Sep 30
    
Jun 30
    
Mar 31
    
Dec 31
  
(Unaudited)
  
2007
    
2007
    
2007
    
2007
    
2006
  
 (in thousands)
                              
ASSETS
                              
Cash and non-interest bearing balances due from banks
   $ 82,630     $ 85,370     $ 71,915     $ 71,513     $ 83,452  
Interest bearing balances due from banks
     21,140       6,557       45,084       43,614       45,829  
Federal funds sold
     6,460       25,655       2,600       60,270       21,870  
Cash and cash equivalents
     110,230       117,582       119,599       175,397       151,151  
                                         
Investment securities - held-to-maturity
     190,284       180,206       178,841       181,901       179,944  
Investment securities - available-for-sale
     340,646       349,282       346,740       338,222       347,182  
Mortgage loans held for sale
     11,097       8,244       9,928       8,718       7,091  
Assets held in trading accounts
     5,658       5,482       4,496       10,464       4,487  
                                         
Loans
     1,850,454       1,875,235       1,821,430       1,798,234       1,783,495  
Allowance for loan losses
     (25,303 )     (25,107 )     (25,197 )     (25,151 )     (25,385 )
Net loans
     1,825,151       1,850,128       1,796,233       1,773,083       1,758,110  
                                         
Premises and equipment
     75,473       73,088       70,873       69,443       67,926  
Foreclosed assets held for sale, net
     2,629       1,629       1,484       2,321       1,940  
Interest receivable
     21,345       25,699       21,868       21,312       21,974  
Bank owned life insurance
     38,039       37,632       36,881       36,498       36,133  
Goodwill
     60,605       60,605       60,605       60,605       60,605  
Core deposit premiums
     3,382       3,583       3,786       3,993       4,199  
Other assets
     7,908       8,527       9,084       9,739       10,671  
                                         
TOTAL ASSETS
   $ 2,692,447     $ 2,721,687     $ 2,660,418     $ 2,691,696     $ 2,651,413  
                                         
LIABILITIES
                                        
Non-interest bearing transaction accounts
   $ 310,181     $ 319,792     $ 308,047     $ 316,603     $ 305,327  
Interest bearing transaction accounts and savings deposits
     761,233       730,533       763,017       753,110       738,763  
Time deposits less than $100,000
     659,181       680,288       686,456       686,650       681,131  
Time deposits greater than $100,000
     452,262       442,706       422,580       450,558       450,310  
Total deposits
     2,182,857       2,173,319       2,180,100       2,206,921       2,175,531  
Federal funds purchased and securities
                                        
  sold under agreements to repurchase
     128,806       106,984       97,947       108,661       105,036  
Short-term debt
     1,777       67,595       11,072       5,009       6,114  
Long-term debt - parent company
     -       -       2,000       2,000       2,000  
Long-term FHLB debt - affiliate banks
     51,355       48,725       49,669       50,652       50,381  
Subordinated debt issued to capital trusts
     30,930       30,930       30,930       30,930       30,930  
Accrued interest and other liabilities
     24,316       26,533       25,395       25,353       22,405  
TOTAL LIABILITIES
     2,420,041       2,454,086       2,397,113       2,429,526       2,392,397  
                                         
STOCKHOLDERS' EQUITY
                                        
Capital stock
     139       139       141       141       142  
Surplus
     41,019       41,470       44,773       46,890       48,678  
Undivided profits
     229,520       225,972       220,981       216,483       212,394  
Accumulated other comprehensive income (loss)
                                        
  Unrealized appreciation (depreciation) on AFS securities
     1,728       20       (2,590 )     (1,344 )     (2,198 )
TOTAL STOCKHOLDERS' EQUITY
     272,406       267,601       263,305       262,170       259,016  
                                         
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
   $ 2,692,447     $ 2,721,687     $ 2,660,418     $ 2,691,696     $ 2,651,413  
 
Page 1
 
Simmons First National Corporation
                          
SFNC
  
Consolidated Average Quarter-to-Date Balance Sheets                              
For the Quarters Ended
  
Dec 31
    
Sep 30
    
Jun 30
    
Mar 31
    
Dec 31
  
(Unaudited)
  
2007
    
2007
    
2007
    
2007
    
2006
  
(in thousands)
                              
ASSETS
                              
Cash and non-interest bearing balances due from banks
   $ 75,416     $ 72,325     $ 72,066     $ 75,172     $ 80,670  
Interest bearing balances due from banks
     21,855       9,382       22,636       37,957       24,237  
Federal funds sold
     9,464       21,083       25,263       51,383       25,554  
Cash and cash equivalents
     106,735       102,790       119,965       164,512       130,461  
                                         
Investment securities - held-to-maturity
     180,631       179,616       180,486       179,479       174,132  
Investment securities - available-for-sale
     338,276       348,085       350,567       349,887       355,196  
Mortgage loans held for sale
     7,535       8,747       9,241       6,362       7,299  
Assets held in trading accounts
     5,588       4,930       4,567       4,746       4,555  
                                         
Loans
     1,856,973       1,849,091       1,802,917       1,782,125       1,779,528  
Allowance for loan losses
     (25,540 )     (25,642 )     (25,791 )     (25,824 )     (26,168 )
Net loans
     1,831,433       1,823,449       1,777,126       1,756,301       1,753,360  
                                         
Premises and equipment
     74,569       71,943       69,967       68,871       67,438  
Foreclosed assets held for sale, net
     2,086       1,877       1,934       2,121       1,488  
Interest receivable
     24,636       24,156       22,086       21,464       22,681  
Bank owned life insurance
     37,820       37,315       36,691       36,300       35,916  
Goodwill
     60,605       60,605       60,605       60,605       60,605  
Core deposit premiums
     3,498       3,702       3,907       4,111       4,317  
Other assets
     7,238       9,374       9,063       9,292       10,995  
                                         
TOTAL ASSETS
   $ 2,680,650     $ 2,676,589     $ 2,646,205     $ 2,664,051     $ 2,628,443  
                                         
LIABILITIES
                                        
Non-interest bearing transaction accounts
   $ 306,939     $ 305,453     $ 309,753     $ 306,020     $ 305,447  
Interest bearing transaction accounts and savings deposits
     748,670       724,782       739,972       731,214       728,085  
Time deposits less than $100,000
     668,458       686,750       688,493       687,109       678,399  
Time deposits greater than $100,000
     443,790       437,217       435,405       451,004       441,505  
Total deposits
     2,167,857       2,154,202       2,173,623       2,175,347       2,153,436  
Federal funds purchased and securities
                                        
  sold under agreements to repurchase
     121,792       113,060       99,808       118,011       102,109  
Short-term debt
     13,202       38,710       3,088       4,031       8,594  
Long-term debt
     81,146       80,123       82,177       82,185       82,358  
Accrued interest and other liabilities
     24,211       23,943       22,465       22,002       23,157  
TOTAL LIABILITIES
     2,408,208       2,410,038       2,381,161       2,401,576       2,369,654  
                                         
TOTAL STOCKHOLDERS' EQUITY
     272,442       266,551       265,044       262,475       258,789  
                                         
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
   $ 2,680,650     $ 2,676,589     $ 2,646,205     $ 2,664,051     $ 2,628,443  
 
Page 2
 
Simmons First National Corporation
                          
SFNC
  
Consolidated Statements of Income - Quarter-to-Date                              
For the Quarters Ended
  
Dec 31
    
Sep 30
    
Jun 30
    
Mar 31
    
Dec 31
  
(Unaudited)
  
2007
    
2007
    
2007
    
2007
    
2006
  
 (in thousands, except per share data)
                              
INTEREST INCOME
                              
Loans
   $ 35,955     $ 36,604     $ 35,051     $ 34,095     $ 34,543  
Federal funds sold
     116       302       331       670       365  
Investment securities
     5,990       6,046       5,889       5,721       5,447  
Mortgage loans held for sale, net of unrealized gains (losses)
     122       147       133       104       107  
Assets held in trading accounts
     (23 )     71       35       18       13  
Interest bearing balances due from banks
     223       131       297       510       287  
TOTAL INTEREST INCOME
     42,383       43,301       41,736       41,118       40,762  
INTEREST EXPENSE
                                        
Time deposits
     12,918       13,307       13,144       13,015       12,755  
Other deposits
     3,257       3,328       3,324       3,179       3,182  
Federal funds purchased and securities
                                        
  sold under agreements to repurchase
     1,317       1,404       1,228       1,425       1,295  
Short-term debt
     167       519       49       70       145  
Long-term debt
     1,203       1,173       1,198       1,198       1,102  
TOTAL INTEREST EXPENSE
     18,862       19,731       18,943       18,887       18,479  
NET INTEREST INCOME
     23,521       23,570       22,793       22,231       22,283  
Provision for loan losses
     1,749       850       831       751       663  
NET INTEREST INCOME AFTER PROVISION
                                        
FOR LOAN LOSSES
     21,772       22,720       21,962       21,480       21,620  
NON-INTEREST INCOME
                                        
Trust income
     1,580       1,528       1,474       1,637       1,517  
Service charges on deposit accounts
     3,882       3,759       3,656       3,497       3,850  
Other service charges and fees
     818       698       692       808       715  
Income on sale of mortgage loans, net of commissions
     644       715       727       679       655  
Income on investment banking, net of commissions
     230       90       153       150       89  
Credit card fees
     3,428       3,115       3,025       2,649       2,830  
Premiums on sale of student loans
     299       419       741       882       263  
Bank owned life insurance income
     403       367       359       364       425  
Other income
     557       682       510       788       449  
TOTAL NON-INTEREST INCOME
     11,841       11,373       11,337       11,454       10,793  
NON-INTEREST EXPENSE
                                        
Salaries and employee benefits
     13,458       13,778       13,903       13,725       13,173  
Occupancy expense, net
     1,729       1,671       1,624       1,650       1,712  
Furniture and equipment expense
     1,438       1,455       1,507       1,466       1,437  
Loss on foreclosed assets
     76       77       36       24       31  
Deposit insurance
     108       85       68       67       66  
Other operating expenses
     7,941       6,157       5,873       6,282       6,088  
TOTAL NON-INTEREST EXPENSE
     24,750       23,223       23,011       23,214       22,507  
NET INCOME BEFORE INCOME TAXES
     8,863       10,870       10,288       9,720       9,906  
Provision for income taxes
     2,671       3,370       3,257       3,083       3,156  
NET INCOME
   $ 6,192     $ 7,500     $ 7,031     $ 6,637     $ 6,750  
BASIC EARNINGS PER SHARE
   $ 0.45     $ 0.53     $ 0.50     $ 0.47     $ 0.47  
DILUTED EARNINGS PER SHARE
   $ 0.44     $ 0.53     $ 0.49     $ 0.46     $ 0.47  
 
Page 3
 
Simmons First National Corporation
                          
SFNC
  
Consolidated Statements of Income - Year-to-Date                              
For the Quarters Ended
  
Dec 31
    
Sep 30
    
Jun 30
    
Mar 31
    
Dec 31
  
(Unaudited)
  
2007
    
2007
    
2007
    
2007
    
2006
  
 (in thousands, except per share data)
                              
INTEREST INCOME
                              
Loans
   $ 141,706     $ 105,751     $ 69,147     $ 34,095     $ 130,248  
Federal funds sold
     1,418       1,303       1,001       670       1,057  
Investment securities
     23,646       17,656       11,610       5,721       20,438  
Mortgage loans held for sale, net of unrealized gains (losses)
     505       383       236       104       476  
Assets held in trading accounts
     100       124       53       18       71  
Interest bearing balances due from banks
     1,161       938       807       510       1,072  
TOTAL INTEREST INCOME
     168,536       126,155       82,854       41,118       153,362  
INTEREST EXPENSE
                                        
Time deposits
     52,385       39,467       26,161       13,015       42,592  
Other deposits
     13,089       9,832       6,503       3,179       11,658  
Federal funds purchased and securities
                                        
  sold under agreements to repurchase
     5,371       4,057       2,653       1,425       4,615  
Short-term debt
     804       637       118       70       1,227  
Long-term debt
     4,771       3,568       2,395       1,198       4,466  
TOTAL INTEREST EXPENSE
     76,420       57,561       37,830       18,887       64,558  
NET INTEREST INCOME
     92,116       68,594       45,024       22,231       88,804  
Provision for loan losses
     4,181       2,432       1,582       751       3,762  
NET INTEREST INCOME AFTER PROVISION
                                        
FOR LOAN LOSSES
     87,935       66,162       43,442       21,480       85,042  
NON-INTEREST INCOME
                                        
Trust income
     6,218       4,639       3,111       1,637       5,612  
Service charges on deposit accounts
     14,794       10,912       7,153       3,497       15,795  
Other service charges and fees
     3,016       2,198       1,500       808       2,561  
Income on sale of mortgage loans, net of commissions
     2,766       2,121       1,407       679       2,849  
Income on investment banking, net of commissions
     623       393       303       150       341  
Credit card fees
     12,217       8,789       5,674       2,649       10,742  
Premiums on sale of student loans
     2,341       2,042       1,623       882       2,071  
Bank owned life insurance income
     1,493       1,090       723       364       1,523  
Other income
     2,535       1,980       1,298       788       2,453  
TOTAL NON-INTEREST INCOME
     46,003       34,164       22,792       11,454       43,947  
NON-INTEREST EXPENSE
                                        
Salaries and employee benefits
     54,865       41,406       27,628       13,725       53,442  
Occupancy expense, net
     6,674       4,945       3,273       1,650       6,385  
Furniture and equipment expense
     5,865       4,428       2,973       1,466       5,718  
Loss on foreclosed assets
     212       137       59       24       136  
Deposit insurance
     328       220       135       67       270  
Other operating expenses
     26,253       18,312       12,158       6,282       23,117  
TOTAL NON-INTEREST EXPENSE
     94,197       69,448       46,226       23,214       89,068  
NET INCOME BEFORE INCOME TAXES
     39,741       30,878       20,008       9,720       39,921  
Provision for income taxes
     12,381       9,710       6,340       3,083       12,440  
NET INCOME
   $ 27,360     $ 21,168     $ 13,668     $ 6,637     $ 27,481  
BASIC EARNINGS PER SHARE
   $ 1.95     $ 1.50     $ 0.97     $ 0.47     $ 1.93  
DILUTED EARNINGS PER SHARE
   $ 1.92     $ 1.48     $ 0.95     $ 0.46     $ 1.90  
 
Page 4
 
Simmons First National Corporation
                          
SFNC
  
Consolidated Risk-Based Capital
                              
For the Quarters Ended
  
Dec 31
    
Sep 30
    
Jun 30
    
Mar 31
    
Dec 31
  
(Unaudited)
  
2007
    
2007
    
2007
    
2007
    
2006
  
 (in thousands)
                              
Tier 1 capital
                              
Stockholders' equity
   $ 272,406     $ 267,601     $ 263,305     $ 262,170     $ 259,016  
Trust preferred securities, net allowable
     30,000       30,000       30,000       30,000       30,000  
Disallowed intangible assets, net of def. tax
     (63,706 )     (63,924 )     (64,144 )     (64,367 )     (64,334 )
Unrealized loss (gain) on AFS securities
     (1,728 )     (20 )     2,590       1,344       2,198  
                                         
Total Tier 1 capital
     236,972       233,657       231,751       229,147       226,880  
                                         
Tier 2 capital
                                        
Qualifying unrealized gain on AFS securities
     52       158       187       129       167  
Qualifying allowance for loan losses
     23,866       24,188       23,565       23,237       22,953  
                                         
Total Tier 2 capital
     23,918       24,346       23,752       23,366       23,120  
                                         
Total risk-based capital
   $ 260,890     $ 258,003     $ 255,503     $ 252,513     $ 250,000  
                                         
Risk weighted assets
   $ 1,906,321     $ 1,932,608     $ 1,882,040     $ 1,855,511     $ 1,831,063  
                                         
Adjusted average assets for leverage ratio
   $ 2,615,915     $ 2,615,527     $ 2,584,670     $ 2,603,178     $ 2,568,407  
                                         
Ratios at end of quarter
                                        
Equity to assets
     10.12 %     9.83 %     9.90 %     9.74 %     9.77 %
Tangible equity to tangible assets
     8.00 %     7.66 %     7.56 %     7.47 %     7.42 %
Leverage ratio
     9.06 %     8.93 %     8.97 %     8.80 %     8.83 %
Tier 1 capital
     12.43 %     12.09 %     12.31 %     12.35 %     12.39 %
Total risk-based capital
     13.69 %     13.35 %     13.58 %     13.61 %     13.65 %
 
Page 5
 
Simmons First National Corporation
                          
SFNC
  
Consolidated Loans and Investments                              
For the Quarters Ended
  
Dec 31
    
Sep 30
    
Jun 30
    
Mar 31
    
Dec 31
  
(Unaudited)
  
2007
    
2007
    
2007
    
2007
    
2006
  
 (in thousands)
                              
Loan Portfolio - End of Period
                              
  Consumer
                              
Credit cards
   $ 166,044     $ 149,185     $ 140,327     $ 133,511     $ 143,359  
Student loans
     76,277       78,377       68,477       84,358       84,831  
Other consumer
     137,624       140,771       139,908       141,212       142,596  
  Real Estate
                                        
Construction
     260,924       259,705       265,705       276,582       277,411  
Single-family residential
     382,678       377,155       372,029       366,222       364,453  
Other commercial
     542,184       538,924       540,042       536,421       512,404  
Unearned income
     (2 )     (2 )     (3 )     (3 )     (3 )
  Commercial
                                        
Commercial
     193,091       201,903       183,349       182,548       178,028  
Agricultural
     73,470       111,984       96,213       61,617       62,293  
Financial institutions
     7,440       5,905       5,351       5,080       4,766  
  Other
     10,724       11,328       10,032       10,686       13,357  
                                         
  Total Loans
   $ 1,850,454     $ 1,875,235     $ 1,821,430     $ 1,798,234     $ 1,783,495  
                                         
Investment Securities - End of Period
                                        
  Held-to-Maturity
                                        
U.S. Treasury
   $ 1,500     $ 1,500     $ 1,500     $ -     $ -  
U.S. Government agencies
     37,000       43,000       44,000       54,998       54,998  
Mortgage-backed securities
     129       136       140       151       155  
State and political subdivisions
     149,262       133,196       130,846       124,415       122,472  
Other securities
     2,393       2,374       2,355       2,337       2,319  
  Total held-to-maturity
     190,284       180,206       178,841       181,901       179,944  
Available-for-Sale
                                        
U.S. Treasury
     5,524       7,517       8,975       11,434       6,940  
U.S. Government agencies
     320,791       325,414       322,687       310,611       322,411  
Mortgage-backed securities
     2,757       2,769       2,793       2,948       2,956  
State and political subdivisions
     858       985       984       1,132       1,370  
FHLB stock
     5,913       7,554       5,206       5,090       5,504  
Other securities
     4,804       5,043       6,095       7,007       8,001  
  Total available-for-sale
     340,647       349,282       346,740       338,222       347,182  
                                         
  Total investment securities
   $ 530,931     $ 529,488     $ 525,581     $ 520,123     $ 527,126  
                                         
  Fair Value - HTM investment securities
   $ 191,738     $ 179,685     $ 175,870     $ 181,792     $ 179,816  
                                         
Investment Securities - QTD Average
                                        
  Taxable securities
   $ 378,811     $ 394,878     $ 401,723     $ 406,342     $ 410,153  
  Tax exempt securities
     140,096       132,823       129,330       123,024       119,175  
                                         
Total investment securities - QTD average
   $ 518,907     $ 527,701     $ 531,053     $ 529,366     $ 529,328  
 
Page 6
 
Simmons First National Corporation
                          
SFNC
  
Consolidated Allowance and Asset Quality                              
For the Quarters Ended
  
Dec 31
    
Sep 30
    
Jun 30
    
Mar 31
    
Dec 31
  
(Unaudited)
  
2007
    
2007
    
2007
    
2007
    
2006
  
 (in thousands)
                              
Allowance for Loan Losses
                              
  Balance, beginning of quarter
   $ 25,107     $ 25,197     $ 25,151     $ 25,385     $ 25,879  
                                         
  Loans charged off
                                        
Credit cards
     670       633       625       735       600  
Other consumer
     412       397       304       425       395  
Real estate
     669       499       453       295       793  
Commercial
     211       174       111       219       209  
  Total loans charged off
     1,962       1,703       1,493       1,674       1,997  
                                         
  Recoveries of loans previously charged off
                                        
Credit cards
     231       260       272       261       242  
Other consumer
     104       122       152       105       173  
Real estate
     38       207       241       162       403  
Commercial
     36       174       43       161       22  
  Total recoveries
     409       763       708       689       840  
Net loans charged off
     1,553       940       785       985       1,157  
  Provision for loan losses
     1,749       850       831       751       663  
  Balance, end of quarter
   $ 25,303     $ 25,107     $ 25,197     $ 25,151     $ 25,385  
                                         
Non-performing assets
                                        
  Non-performing loans
                                        
Nonaccrual loans
                                        
  Real estate
   $ 7,350     $ 6,949     $ 7,237     $ 5,561     $ 6,916  
  Commercial
     883       576       632       685       720  
  Consumer
     1,676       1,540       1,652       1,492       1,322  
Total nonaccrual loans
     9,909       9,065       9,521       7,738       8,958  
Loans past due 90 days or more
     1,282       946       1,133       879       1,097  
  Total non-performing loans
     11,191       10,011       10,654       8,617       10,055  
                                         
  Other non-performing assets
                                        
Foreclosed assets held for sale
     2,629       1,629       1,484       2,321       1,940  
Other non-performing assets
     17       38       30       40       52  
  Total other non-performing assets
     2,646       1,667       1,514       2,361       1,992  
                                         
Total non-performing assets
   $ 13,837     $ 11,678     $ 12,168     $ 10,978     $ 12,047  
                                         
Ratios
                                        
  Allowance for loan losses to total loans
     1.37 %     1.34 %     1.38 %     1.40 %     1.42 %
  Allowance for loan losses to
                                        
    non-performing loans
     226.10 %     250.79 %     236.50 %     291.88 %     252.46 %
  Allowance for loan losses to
                                        
    non-performing assets
     182.86 %     214.99 %     207.08 %     229.10 %     210.72 %
  Non-performing assets ratio *
     0.75 %     0.62 %     0.67 %     0.61 %     0.67 %
  Non-performing loans to total loans
     0.60 %     0.53 %     0.58 %     0.48 %     0.56 %
  Non-performing assets to total assets
     0.51 %     0.43 %     0.46 %     0.41 %     0.45 %
  Annualized net charge offs to total loans
     0.33 %     0.20 %     0.17 %     0.22 %     0.26 %
  Annualized net charge offs to total loans
                                        
    (excluding credit cards)
     0.26 %     0.13 %     0.10 %     0.13 %     0.19 %
 
  * Non-performing assets ratio = (non-performing loans + foreclosed assets) / (total loans + foreclosed assets)
 
Page 7
 
Simmons First National Corporation
                          
SFNC
  
Consolidated - Net Interest Income Analysis                              
For the Quarters Ended
  
Dec 31
    
Sep 30
    
Jun 30
    
Mar 31
    
Dec 31
  
(Unaudited)
  
2007
    
2007
    
2007
    
2007
    
2006
  
                               
ASSETS
                              
                               
Earning Assets
                              
Interest bearing balances due from banks
     4.05 %     5.54 %     5.26 %     5.45 %     4.70 %
Federal funds sold
     4.86 %     5.68 %     5.26 %     5.29 %     5.67 %
Investment securities
     5.22 %     5.15 %     5.04 %     4.95 %     4.62 %
Mortgage loans held for sale
     6.42 %     6.67 %     5.77 %     6.63 %     5.82 %
Assets held in trading accounts
     -1.63 %     5.71 %     3.07 %     1.54 %     1.13 %
Loans
     7.70 %     7.87 %     7.80 %     7.76 %     7.70 %
Total interest earning assets
     7.10 %     7.24 %     7.13 %     7.05 %     6.96 %
                                         
                                         
LIABILITIES
                                        
                                         
Interest bearing liabilities
                                        
Interest bearing transaction and
                                        
  savings accounts
     1.73 %     1.82 %     1.80 %     1.76 %     1.73 %
Time deposits
     4.61 %     4.70 %     4.69 %     4.64 %     4.52 %
Total interest bearing deposits
     3.45 %     3.57 %     3.54 %     3.51 %     3.42 %
Federal funds purchased and securities
                                        
  sold under agreement to repurchase
     4.29 %     4.93 %     4.93 %     4.90 %     5.03 %
Short-term debt
     5.02 %     5.32 %     6.36 %     7.04 %     6.69 %
Long-term debt
     5.88 %     5.81 %     5.85 %     5.91 %     5.31 %
Total interest bearing liabilities
     3.60 %     3.76 %     3.71 %     3.69 %     3.59 %
                                         
NET INTEREST MARGIN/SPREAD
                                        
                                         
Net interest spread
     3.49 %     3.48 %     3.42 %     3.36 %     3.37 %
Net interest margin - quarter-to-date
     4.00 %     4.01 %     3.96 %     3.88 %     3.86 %
Net interest margin - year-to-date
     3.96 %     3.95 %     3.92 %     3.88 %     3.96 %
 
Page 8
 
Simmons First National Corporation
                          
SFNC
  
Consolidated - Selected Financial Data
                              
For the Quarters Ended
  
Dec 31
    
Sep 30
    
Jun 30
    
Mar 31
    
Dec 31
  
(Unaudited)
  
2007
    
2007
    
2007
    
2007
    
2006
  
 (in thousands, except per share data)
                              
QUARTER-TO-DATE
                              
  Diluted earnings per share
   $ 0.44     $ 0.53     $ 0.49     $ 0.46     $ 0.47  
  Operating earnings (excludes nonrecurring items)
     6,936       7,500       7,031       6,637       6,750  
  Cash dividends declared per common share
     0.19       0.18       0.18       0.18       0.18  
  Cash dividends declared - amount
     2,645       2,509       2,533       2,548       2,555  
  Return on average stockholders' equity *
     10.10 %     11.16 %     10.64 %     10.25 %     10.35 %
  Return on tangible equity *
     13.45 %     14.96 %     14.17 %     13.57 %     14.08 %
  Return on average assets *
     1.03 %     1.11 %     1.07 %     1.01 %     1.02 %
  Net interest margin (FTE)
     4.00 %     4.01 %     3.96 %     3.88 %     3.86 %
  FTE Adjustment - investments
     842       802       785       741       720  
  FTE Adjustment - loans
     67       69       72       85       85  
  Amortization of intangibles
     202       203       207       207       207  
  Amortization of intangibles, net of taxes
     127       128       130       130       130  
  Average shares outstanding
     13,924,592       13,976,706       14,099,105       14,177,615       14,198,399  
  Shares repurchased
     25,895       134,253       90,900       69,678       14,200  
  Average price of repurchased shares
     26.38       25.43       27.38       28.62       31.15  
  Average earning assets
     2,420,322       2,420,934       2,395,677       2,411,939       2,370,501  
  Average interest bearing liabilities
     2,077,058       2,080,642       2,048,943       2,073,554       2,041,050  
                                         
YEAR-TO-DATE
                                        
  Diluted earnings per share
   $ 1.92     $ 1.48     $ 0.95     $ 0.46     $ 1.90  
  Operating earnings (excludes nonrecurring items)
     28,104       21,168       13,668       6,637       27,481  
  Diluted operating earnings per share
     1.97       1.48       0.95       0.46       1.90  
  Cash dividends declared per common share
     0.73       0.54       0.36       0.18       0.68  
  Return on average stockholders' equity *
     10.54 %     10.69 %     10.45 %     10.25 %     10.93 %
  Return on tangible equity *
     14.15 %     14.40 %     14.10 %     13.88 %     15.03 %
  Return on average assets *
     1.05 %     1.06 %     1.04 %     1.01 %     1.07 %
  Net interest margin (FTE)
     3.96 %     3.95 %     3.92 %     3.88 %     3.96 %
  FTE Adjustment - investments
     3,170       2,328       1,526       741       2,840  
  FTE Adjustment - loans
     293       226       157       85       345  
  Amortization of intangibles
     819       617       414       207       830  
  Amortization of intangibles, net of taxes
     515       388       260       130       522  
  Average shares outstanding
     14,043,626       14,083,739       14,138,143       14,177,615       14,226,481  
  Average diluted shares outstanding
     14,241,182       14,283,674       14,352,531       14,395,153       14,474,812  
  Average earning assets
     2,412,218       2,409,516       2,403,809       2,411,939       2,324,078  
  Average interest bearing liabilities
     2,070,049       2,067,711       2,061,248       2,073,554       1,993,903  
                                         
END OF PERIOD
                                        
  Book value per share
   $ 19.57     $ 19.20     $ 18.73     $ 18.54     $ 18.24  
  Tangible book value per share
     14.97       14.60       14.15       13.97       13.68  
  Shares outstanding
     13,918,368       13,934,509       14,059,631       14,139,631       14,196,855  
  Full-time equivalent employees
     1,128       1,131       1,112       1,110       1,134  
  Total number of ATM's
     90       89       87       88       88  
  Total number of financial centers
     83       83       82       82       81  
  Parent company only - investment in subsidiaries
     288,744       285,340       280,455       279,370       275,872  
  Parent company only - intangible assets
     133       133       133       133       133  
 
  * Based on operating earnings (excludes nonrecurring items)
 
Page 9
 
Simmons First National Corporation
                          
SFNC
  
Consolidated - Reconciliation of Operating Earnings                              
For the Quarters Ended
  
Dec 31
    
Sep 30
    
Jun 30
    
Mar 31
    
Dec 31
  
(Unaudited)
  
2007
    
2007
    
2007
    
2007
    
2006
  
 (in thousands, except per share data)
                              
QUARTER-TO-DATE
                              
  Net Income
   $ 6,192     $ 7,500     $ 7,031     $ 6,637     $ 6,750  
Nonrecurring items
                                        
  Litigation liability (VISA U.S.A., Inc.)
     1,220       -       -       -       -  
  Tax effect (39%)
     (476 )     -       -       -       -  
Net nonrecurring items
     744       -       -       -       -  
  Operating income
   $ 6,936     $ 7,500     $ 7,031     $ 6,637     $ 6,750  
                                         
                                         
  Diluted earnings per share
   $ 0.44     $ 0.53     $ 0.49     $ 0.46     $ 0.47  
Nonrecurring items
                                        
  Litigation liability (VISA U.S.A., Inc.)
     0.09       -       -       -       -  
  Tax effect (39%)
     (0.04 )     -       -       -       -  
Net nonrecurring items
     0.05       -       -       -       -  
  Diluted operating earnings per share
   $ 0.49     $ 0.53     $ 0.49     $ 0.46     $ 0.47  
                                         
                                         
                                         
YEAR-TO-DATE
                                        
  Net Income
   $ 27,360     $ 21,168     $ 13,668     $ 6,637     $ 27,481  
Nonrecurring items
                                        
  Litigation liability (VISA U.S.A., Inc.)
     1,220       -       -       -       -  
  Tax effect (39%)
     (476 )     -       -       -       -  
Net nonrecurring items
     744       -       -       -       -  
  Operating income
   $ 28,104     $ 21,168     $ 13,668     $ 6,637     $ 27,481  
                                         
                                         
  Diluted earnings per share
   $ 1.92     $ 1.48     $ 0.95     $ 0.46     $ 1.90  
Nonrecurring items
                                        
  Litigation liability (VISA U.S.A., Inc.)
     0.09       -       -       -       -  
  Tax effect (39%)
     (0.04 )     -       -       -       -  
Net nonrecurring items
     0.05       -       -       -       -  
  Diluted operating earnings per share
   $ 1.97     $ 1.48     $ 0.95     $ 0.46     $ 1.90  
 
Page 10
 
SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

    SIMMONS FIRST NATIONAL CORPORATION
       
    /s/ Robert A. Fehlman
Date: January 17, 2008
  
Robert A. Fehlman, Executive Vice President
 
 
  and Chief Financial Officer