Simmons First National Corporation (NASDAQ:SFNC) Q4 2017 Earnings Conference Call Transcript

Jan 23, 2018 • 10:00 am ET

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Simmons First National Corporation (NASDAQ:SFNC) Q4 2017 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Simmons First National Corporation's Fourth Quarter Earnings Call and Webcast. At this time, all participants are in a listen-only mode. (Operator Instructions) As a reminder, today's conference may be recorded.

I'd now like to turn the call over to Mr. David Garner. Sir, you may begin.

Executive
David Garner

Good morning, everyone. My name is David Garner and I serve as Investor Relations Officer of Simmons First National Corporation. We welcome you to our fourth quarter earnings teleconference and webcast. Joining me today are George Makris, Chairman and Chief Executive Officer; Bob Fehlman, Chief Financial Officer; Marty Casteel, Chairman and CEO of Simmons Bank, one of our wholly owned bank subsidiaries; and Barry Ledbetter, Chief Banking Officer.

The purpose of this call is to discuss the information and data provided by our Company in our quarterly earnings release, issued yesterday, and to discuss our Company's outlook for the future. We will begin our discussion with prepared comments, followed by a question-and-answer session. We have invited institutional investors and analysts from the equity firms that provide research on our Company to participate in the Q&A session. All other guests in this conference call are in a listen-only mode. A transcript of today's call, including our prepared remarks and the Q&A session, will be posted on our website, simmonsbank.com, under the Investor Relations tab.

(Forward-Looking Cautionary Statements)

Lastly, in this presentation, we will discuss certain GAAP and non-GAAP financial metrics. Please note that the reconciliations of these metrics are contained in our current report filed yesterday with the SEC and on Form 8-K. Any references to non-GAAP core financial measures are intended to provide meaningful insight. 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.

With that said, I will now turn the call over to Mr. George Makris.

Executive
George Makris

Thank you, David, and welcome to our fourth quarter earnings conference call. 2017 was a momentous year. We created a stronger organization with assets exceeding $15 billion, expanded into new territories, welcomed new associates and customers, all while maintaining our community first approach and producing exceptional results.

In our press release issued yesterday, we reported net income of $18.9 million for the fourth quarter of 2017, a decrease of $8.1 million compared to the same quarter last quarter. Diluted earnings per share were $0.43. Included in the fourth quarter earnings were $14.2 million in merger-related and branch rightsizing costs. Also included was our one-time non-cash charge to income of $11.5 million from revaluation of the deferred tax assets and liabilities as a result of the tax reform recently signed into law.

In addition, we made a $5 million donation to the Simmons Foundation. Excluding the net after-tax impact of these items, the company's core earnings were $42 million for the fourth quarter of 2017, an increase of $13.3 million compared to same period