Simmons First National Corp. announced in a press release Thursday that it experienced a 43 percent increase in core earnings for the second quarter of 2014.
Simmons announced that it enjoyed record core earnings of $9.2 million for the time period, which is an increase of $2.7 million compared to the same period in 2013.
Financial services company Standard & Poor’s developed the core earnings measurement to exclude one-time sources of income and other income sources that fall outside of the primary goods and services that a company trades in.
Simmons said in the press release that diluted core earnings were a record 56 cents, which is an increase of 17 cents or 43.6 percent.
Year-to-date earnings of $16.6 million were reported by Simmons, which is an increase of $4.1 million or 33.2 percent compared to the same period in 2013.
Simmons First Corp. Chairman and CEO George A. Makris Jr. said that the numbers reflect a strong quarter for the company.
“The second quarter was a landmark quarter for Simmons,” Makris said in the press release. “We announced two acquisitions totaling approximately $3 billion in assets and reported record core earnings and record core earnings per share for the quarter.”
Simmons reported that total loans for the quarter including those that were acquired totalled $2.4 billion as of June 30, 2014, for an increase of $512 million or 27.3 percent compared to the same period in 2013.
“We are encouraged by the double-digit legacy loan growth during the second quarter,” Makris said. “We continue to achieve nice loan growth in virtually every market we serve.”
As of June 30 Simmons reported total deposits of $3.6 billion, an increase of $829 million or 29.5 percent compared to the same period in 2013.
Simmons reported net interest income for the second quarter of 2014 of $40.4 million which is an increase of $10.8 million or 36.7 percent from the same period in 2013. The report noted that the acquisition of the loan portfolio of Metropolitan National Bank had an effect on this statistic.
Simmons reported second quarter non-interest income of $15.4 million, an increase of $4.1 million over the same period in 2013. Simmons reported that $2.3 million of this income came from the sale of branches that were integrated as part of the Metropolitan acquisition.
Non-interest expenses for the period of $39.8 million were reported, which is an increase of $9.5 million over the second quarter of 2013. The report said that merger-related costs exceeded those of the same period in 2013 by $1.8 million.
Other expenses included $300,000 spent on the maintenance of closed branches and $414,000 related to the costs of consolidating the charters of the three Simmons subsidiary banks into Simmons First National Bank in May. Another $7 million in non-interest expense is attributed to operating expenses from the Metropolitan acquisition.
As of June 30, 2014, stockholders’ equity was $414 million, with book value per share of $25.36, according to the press release.