SFNC - Earnings call transcript Q3 2017 | Simmons First National Corporation

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Operator

Good day, ladies and gentlemen. And welcome to the Simmons First National Corporation Third Quarter 2017 Earnings Conference Call. At this time, all participants are in a listen-only mode.

Following management's prepared remarks, we will host a question-and-answer session and our instructions will be given at that time [Operator Instructions].

As a reminder, this conference may be recorded. pleasure the my Mr. over now is to conference hand to It Garner. David Sir, you may begin.

David Garner

name Garner, Corporation. is as My earnings morning. Good David webcast. Officer to third Simmons teleconference you and Investor and for First welcome National We our quarter Relations serve I

are to Chairman The discuss our subsidiaries; outlook information one Bank, me earnings Chief wholly-owned to Executive bank Fehlman, purpose Barry and provided of of the Officer. Officer; Ledbetter, release future. and Simmons is today by call Banking Joining Officer; data the CEO Marty of Chief this Bob yesterday and Chief Financial for the Casteel, George Makris, Chairman and Company’s and Company quarterly discuss in our our issued

comments, session. a prepared We followed by will begin question-and-answer discussion our with

the call institutional that our of A a in Q&A on the transcript the Web We investors firms remarks and posted on tab. Company guests from site Investor session, other are including today’s conference All the will call, analysts and in to be equity our under invited this simmonsbank.com in Relations Q&A participate our research prepared provide mode. have listen-only session.

may forward-looking by and and forward-looking be estimates uncertainties, and our call regarding statements, to constitute call expectations, from may known this today's remind and presentations actual we during the factors, other or and goals, made risks, current discussed which and different estimates. other certain certain statements matters disclosures may I unknown make During the certain statements may that materially performance results involve Company, plans, cause special and of our you about in expectations, notice forward-looking outlook. cautionary

our of with and please the recent our Annual in on filed risk associated factors Exchange XX-K, Information that For certain Form the Report release and description a list U.S. press earnings as Commission. Forward-Looking with contained refer risk all business, most our to of certain of section Securities

estimates, performance. of information projections, update of any based occurrence beliefs receipt and time events, no Company statements, guarantees to management undertakes at or forward-looking management Company the such and by made of otherwise. based future new statements of The its the future revise statements of not Forward-looking on the assumptions on or are obligation the are and

results in GAAP financial Makris. will be be and to These that yesterday filed the now measures Please metrics the discuss insights. we will should operating on nor non-GAAP this references accordance call over in a report Lastly, financial current measures are I SEC presentation, to intended metrics. for to GAAP of in non-GAAP they Any disclosures George provide are certain meaningful necessarily non-GAAP are with Form companies. reconciliation core by our substitute other that note determined to X-K. not the comparable contained presented viewed may as these turn performance with non-GAAP

George Makris

Thanks, of like call. full months past highlighting And by have third several to would begin been and to I few David. welcome These windfall achievements, and many. our quarter of earnings a conference

Reserve Texas time, look Southwest West great SNB XXth. Bank and with these to like First, were Bank our October Bancorp to associates by all We previously Federal both and closed and to This shareholders. Simmons mergers partnership. approved a First would family. South welcome on transactions We the from announced BHC I forward

Simmons weekend. First for Day Labor announce systems conversion successfully also bank. been teams integration the commend Bank to completing South with proud I'm Second, has the I fully integrated over

next currently sole evaluating respect of the Third, Bank steps auction. institution. Simmons Heartland public bank Simmons became the to is the shareholder with via

of third year. our our Lastly, $XX.X quarter income an benefits of XX.X%. record health for issued was insurance increase of life, businesses, of insurance compared million and tax net tax $X.X costs. and quarter Included we to same completed of insurance have In in were net included employee property services. the an earnings $X.X reported yesterday, the million sale the gain casualty of earnings release share the business. retaining press our we of and XXXX, quarter Also related in third increase the last sale per of lines after after $XXX,XXX an $X.XX, branch million merger were Diluted rightsizing on while the

per third of increase an to period year. earnings $X.XX, the million Company's core same share compared X.X%. impact core the $XX.X Excluding increase items, an of $X.X Diluted quarter, million these were of for earnings last were the

to Our $XXX loan was during legacy the end $XXX million acquired loan of participations billion. million off the grew increased balance approximately Bank, $XX the million liquidating of quarter the which additional loans and by million is Southwest increase by million, portfolios from legacy, loan portfolio at The of $XX paid quarter. with during $X.X and our to migrated loans Total $XX quarter. loans in acquired related

the We continue than weighted to this experience quarters experienced although we in first lower two loan new demand growth the year. is

define as approved ready close, of was the million which we pipelines, loans loan Our and quarter. $XXX end at to the

construction addition, yet still have $XXX funded. million not In loans we in

and loans CRE end at XXX% and the Our the construction XX% was of of was development quarter. loans concentration of our concentration

quarter year. during All XXXX million, loans The same $X.X from million XX.X% the year. of was Accretion quarter compared from experiencing last to still same quarter million last the growth. income good period acquired our the regions Company's was in net the are income third increase $X.X interest of for loan $XX.X

X.XX% same compared margin quarter was continue the and increases The core in $XXX We've interest third prior year. down was growth of assets. same accretion, which in net from X.XX% excludes X.XX%, the million the quarter Company's which net related for interest margin, X.XX% to XX offset non-time cost points Our the XXXX. the from period gradual quarter deposits to last on the in experienced earning was interest for year. the in deposit bearing of year to internal deposit of rates Cost Increases last growth. over basis increase acquisitions

result our cost project continue will as fed We and increased for competition rate deposits a recent increase to that hikes. funding of of

Our decrease our $X.X experienced in of for million, the a mortgage related decrease business. of non-interest to $XXX,XXX the same from was XXXX. income income We quarter $XX.X of quarter million

In in acquisitions was recovery the Non-interest the for the addition, related of of last we charged million acquired over expense expense of for quarter in previously income $X.X XXXX our quarter business. the non-interest year. Incremental sale million, our result to categories in same all core off are expense recorded the period lines over for XXXX, $XX.X was $XX.X to the quarter a increases of property of million. quarter in $X non-interest the of third Included casualty during the insurance loan. our related million gain

million ratio The The mark was $XX of an $XXX,XXX $XX.X ratio allowance XX.XX%. Company's for related allowance loans a basis gross of points mark The total X.XX% X.XX%. for discount efficiency quarter was acquired for of of loans. equates was losses loan of loans $XX.X losses XX, for total ratio additional Our acquired allowance credit XX for September the At of loan million on loans was credit XXXX, loans. was loan allowance million loans. This and with or coverage. legacy a total the coverage to legacy to

points. credit card During our charge offs, basis the charge-offs, were quarter, XX the third net including loans total annualized

million the were net period charge-offs compared The our quarter to credit $X.X $X.X the points. card last basis during million loans to loss charge-offs, was provision year. total Excluding same annualized during XX for

to to as of build Bank. expect acquired, Bank We we allowance with SNB especially Southwest continue the more the migrate and addition

tangible $XX.XX, impacted take was increase million analysts for in Our increase queuing billion book for $X.X X.X% of intangible investors. value was book ask institutional capital equity an questions concludes on and comments, lines the value the to position and operator to share positively the instructions in back prepared last per quarter please of due our we'll our $X.X of an business. reduction remains from of Tangible stockholders’ same end, by research was our period the give year. to those strong. period for I'll common come in related our At very the line same share equity assets last $XX.XX, and while insurance per the was common This year, the calls. sale now X.X%

Operator

And Raymond Michael Instructions]. of [Operator our question first line come with the sir Please from you, proceed. Rose James. Thank will

Michael Rose

start that includes know we guidance on XXX that could gave growth, moving about loan growth. think the quarter net if the last I Just I was in all you wanted million to pieces. a quarter

look book XXX was the in was So close if it looks about I million. the at loans construction of unfunded pipeline quarter about but like this it the off million XXX balance down

fourth quarter the So I guess expect? the they should saw Thanks. types What from about how of then third fourth read seasonality into and quarter? growth any what two in we impact and we might think quarter that should acquisitions, And going trends? how

David Garner

sure, on several that probably others are question. in Michael weighing

let the closing so could our to this timing got get me conflicts to some else, for announced apologize last We talk we wanted before announcement you other First and to behind of us that week. earnings, about all, and the we’ve we due today this that everyone quarter of week.

very to don't going I on be time. just forward. happen So a fall inopportune releasing we'll Sunday on more think any

that's to So the I weekend growth. to Back you is work what who all over not had loan of do. when we apologize to normal

continue two portfolio total down. what what about We the market, slowed lending are and to moving we quarters. indirect by has in our decreased collectively $XX down and pace from down we're million with a bit portfolio still also Those the they're in pleased mention work though during of I'll finance consumer portfolios million a even the seeing first that month. quarter, the our two $X.X very little experienced

the maintain is growth the we happens generally, objective have entire seeing with have main I a first usually to our continue sorted where that as with to they what balances we things that loan of announced were is most in those, transactions. all. regard we And overcome, we our our that two of we're of good What as acquisitions loan basis So regard is work to I’ve think footprint. acquisitions, out when the to across will one to unusual seen that

grown I those portfolio think still have significantly quite good Southwest you’ll And honestly, those Bank find as since and both well. Bank had loan loan S&B announcements. pipelines their

today, pipeline not particularly loan is our on call made our Chief construction funding Officer what going we he there. to to that. mind wouldn’t they’re they’re Barry portion Ledbetter, quite haven’t of I’m While the addressing experience do know loan and growth just it the we if the Banking growth

if you mind don’t that. Barry So addressing

Barry Ledbetter

of about not -- we’ve the was we’ve front-end. on we On equity get loans lot as to Again, to in also Kansas the those $XXX funding best very large of deals, earlier, we that next CRE of Nashville, front-end. put And have in on be group quarters. in closed loans that funded million couple their get money got we the expect that a yet We lot the closed funded. in addressed City, that we��ve

And good those so you’ll see very continue about our increase. feel We again. to pipeline

of feel the also Rock, some the there addition months. of we’re to we’ve addition market with and growth in loan about additional City Tennessee, be there. that those of Little Also last the leadership. of and starting to the strong Missouri And starting the added Jackson growth see we’re lenders with to Nashville, see addition the see an continued that new couple in City, we in in Northeast, market should Arkansas, Kansas We’re loan First continue increase Northwest, consistently with and in South there to growth segments, in Springfield Kansas lenders starting some

with our about the good very going pipeline feel and loan growth. we forward overall, So

David Garner

And year. a this forward. we’ve of will that in what We would annualized don’t budget, here their Southwest forward. growth use quarters know annualized and we multiple would certainly, what lot XX% experienced of there. going Michael the we loan as I continue if loan that’s still have But opportunities this going growth X% Bank Certainly, they as over addition expect benchmark at say, they’ve

loan-to-deposit loan One little things rearrange done around and deposit to in we’ve XX%. ratio which our is range, during order calls absorb quarter that Currently, absorb acquisitions. core the increased got appetite is our a keep of growth to it’s last that base sheet, our able balance for. bit the built these U. we’ve We’ve to the of down our capacity that in what S. new be XX%

Michael Rose

for Thanks guys. That’s there. color update great the

deals question accretion the addition margins the color more just year, I me, accretion? give above will the some then $XX guys the will have two deals think margin. be But it $XX to in that the you a that. one what will the forward? to should just guys mark about again million what the million for we looks little can guided about you core for going expectations the on Just remaining, from from add do bit think and two How and Thanks. for

David Garner

the going provision. regard But in about $X to income let me we I'm X.XX%. notice, $X let it our accretion down look. core coverage believe talk our Bob But to not with say be how going trade allowance, accretion as off, to may and will to you is that for total to just margins adding our

we that. And of junk while most to bucket, out We’ve lower bucket have than So be. acquired can't used the it of much large rid the as portfolios. really acquired draw we that X.X% coverage in acquired of our isn’t as still got

levels. income to result So expect as go going increase would that into to those I allowance migrated of most a accretion straight no the forward, substantial going is real because of cover

margin about like? want So just might interest Bob, you look net what the blended might talk

Barry Ledbetter

margin. to Michael, deals still good all on sides together, point core look X% to or decline X to you both range we on GAAP, it. very I probably is X X.XX margin. you in of about the When into lumpy early year. think basis somewhere QX on us give next we in expect X.XX that a be in would range and think going the for put take there’re range of When it’s

correct. You’re

projecting accretion the of for still for remainder million $XX We’re the year. to close

through closed the reasonably going still on We’re the acquisitions. valuation two

up estimates million We’re when we million in. be those to Those we’ll projecting on in next for at year the put showing this go deals those $XX as accretion them together. somewhere time $XX are you two range

allowance roughly loan have. XXX% Our These are loan to the million, clean in. be million pretty about quarter. basically, adding acquisitions balance the XXX% close that end the banks We’ll currently to when you that in $XX $XX discount is at they the million of I of that think, two banks we $XX market was their somewhere range want about put

Michael Rose

deals. So just you from just I'm is get the up What quick to expect a previous -- XX numbers… from the two so follow to trying all-in that XX just would the

David Garner

up followed you glad am on I that.

our million, next about million that so core is year. expecting We’re go is $XX about half from which $X to

$XX we next all-in million So million to year. $XX would expect

Operator

Stephens. from now Please question next our Matt the come And of proceed. will line with Olney

Matt Olney

getting sheet the you want referenced make acquisitions. to two for understand And George, the balance I ready I that. sure

yields anticipate did portfolio the shrink size you this be standpoint, Can securities came just and how and a the Simmons like there? quarter, the to from more legacy shrinkage down. looks much being So you that speak will that

Bob Fehlman

XX% securities Matt, this is Roughly Bob. XX% We currently have about $X.X billion, assets. it’s $X.X billion to portfolio. in total our of about

as Our than in the XX% maybe probably target level assets. that, go total of XX%, forward is we little lower

prepared We’ll couple million, I we we the time a portfolio for as absorb You loan securities get over portfolio, did have that did loan of bit little as we we this more to as this $XXX related to allow and a quarter in $XXX liquidity quarters of did it decline say next quarter. bit. the that we little run down at some of shrink million acquisitions. two sold the was growth notice yield the so we our that reduced it quarter, for last little part on would

Also, balance also this the some so second George because higher quarter in sheet up quarter preparing bit some our little deposits We XX there. the which than mentioned, in were leverage the to year little up yield we're a quarter normal. basically second caused went drop, in prepare as our -- from

a deposits with some bit in small out basically of cost. positive It So short-term was one. a that get of investments. We very did arbitrage some little increased we and which a put deposits, go our money

our preparing But negative investment on acquisitions. for it’s impact a and as quarter. this get So the we for portfolio into first it quarter QX had the

Matt Olney

that take XX% So that. have, bit just get fair? it Is could of may a to a to there clarify sounds target to initially end and few you the on that, XX% we high like quarters it be little

Bob Fehlman

That’s exactly right.

to there as We be target XX% over the up. move to XX% we We’re of be portfolio. to to loans long-term the not at get high and investments the overnight. going go prefer have don’t assets loan But

Matt Olney

And that you deals speak and now, the that’s of going close given Darwin, impact what amount be? would Durbin the can hit you to when that to

David Garner

And will Well, that pre XXXX. anticipate X, Durbin $XX to hit tax that will million we July revenue. be impact

Bob Fehlman

basis… Annual

David Garner

side The is Durbin. trade the to are on On Matt, the growth And delay off, in two support growth to market. of annual basis. that need that be going early particular closing versus and able to the in hit capital we and protecting for provide the the acquisitions

glad first a problem probably was decisions we're we its and low quite good have that think and I that. honestly

that. The million. not $XX easily is And yet, there while We say in threshold there get XXXX. will should us for quite we real next we're organically,

make two that As and we that capital the look enough one continue we after capital does. tier see growth our levels got support we got to at ratios, we’ve to tier loan markets of sure enough to

two there’ll say So doesn’t more that qualify that qualified our some and tier two XXXX. shifting of during that tier be may

we that’s So trust ratio. go Well, six going appropriate is $XX lose do means don’t what We we’ll in treatment the in that decision for the big after of that us. the make about we that. sometime tier regard and our cross next Act with one, preferreds million. to the ball we’ve XX% all and know issue got months with Choice leverage on where next We what

Barry Ledbetter

us that. but on the the about leverage as points cost of just still after And XX ratio, is loss of puts XX about troughs even it reference, basis the XX,

Matt Olney

And impact recently the does well? the -- Bob of deals closed include pending the that as

David Garner

pro Matt, Yes the that's estimate. forma

from deals pro our forma it's together trough about numbers X.X, and and back right tier the impact all is now. X put If you X.X the out

Matt Olney

could assume the from next bit quarters you Can acquisitions. on noisy little or some few us quarters? of the give two these then be me. And details as items I expectations you next few last integrate next noncore question some

David Garner

very-very going the is be over quarters. to lumpy it Matt, next two

in costs the now quarter don't have mean, Some hit first quarter as of I that's this I the in. don't it we're right and have those will I -- those fourth that exact in and will in but deals hit right some quarter, moving numbers now.

Barry Ledbetter

convert Simmons give merger quarter. We have going Southwest of me these closing first the to two quarter Bank schedule. the let going in some you with in fourth obviously deals the related associated to costs are XXXX. Matt, Bank in We're

that, we'll cost offset with bit also we'll associated little costs over have with merge. weekend associated and but some be SNB Day that that converted So Memorial in May. with saves will Bank

So, costs associated cost third the related of by both then we'll saves But ultimately quarter have some acquisitions. we the that of XXXX, from feeling with impact merger transition. full those

So to that's look let's bit about little what like. expense non-interest talk and going a

First So we third from around saves quarter if Bancorp, just quarter a going and cost Texas you expect save the quarter put the million quarter XXXX, together third fully $X non-interest Simmons basis in Southwest a recognized. core the the [$XX million] expense By us we're and to per be of the range.

too that might has some third million quarter save we needed a if second that's per associated first increases to this 'XX, to the the full Now, quarter though to 'XX. the little with continues quarter that a tell expense quarter But have of growth. our the the as early standpoint. to it from have we 'XX, by it's growth fall quarter Remember realized how of $X fourth year, in support hope cost much that infrastructure of going and

growth going saves. we're determine and keep achieve as you try like cost is to we'll So, look as we to able to that what updated those

hit. now you gives can't actually we is that going right intent. that Unfortunately, to a hopefully savings when So, target project

Bob Fehlman

is, And Bob. Matt this

million merger quarters. -- estimates, costs rough the are the we've XX% Just $XX of deals. $XX tax tax very with just is Those rough I got time after on related as looking I best XX% about about in QX, would couple million basis. back, hit the two estimates that our this in of to expect And would but next in that somewhere this project the after other just

Operator

our question proceed. next come the from of Scouten line Stephen And Please Thank Sandler will O'Neill. you. with

Stephen Scouten

there but you Can little may you better there expense the this talk particular. in maybe expense current rate even you than what the other a forma decline quarter to maybe was so that in even be much And more about non-interest had if precipitated bit guys the led guided? where and be anything pro run not abnormal

George Makris

in I just base. Stephen, have our expense folks say job would that maintaining done their excellent an

more because with converging. a of also associated that savings the We had branches five closed system anticipated probably with originally market We overlap. than First we South achieved little

didn't probably closed So $X balance had any we branch branches. market added some noticed leave number based of to just on there, you our we And excessive over we that those locations. an million OREO

regard exceeded if So don't add I original know our and ability with you have saves. our think those to we I integrate cost to just probably in expectations achieve that? to Bob, have anything

Bob Fehlman

No, that's think I good.

for everybody's the what target the the about in and close was it fairly that to expense was $XX pretty hit well it line on and million, think on at were. with look expense month our And I core savings. expectations as we

Stephen Scouten

of I you related mean, other DFAST things, maybe on think that? need what's for And do how rate to come Or side the and today? the still progression think build to from I much preparations already build you have you do the in that costs of how are. built run 'XX? ex-Durban, those in 'XX expense what expense the might mean, of much

George Makris

that submit take XXXX expense our only expanse to which some most is data get and and do anyway to can have to I'll first correct and built associated has submission plan until would a based Stephen DFAST on stab data. In expense done. DFAST then Well, already we our We XXXX, our warehouse, we at be in. test, it me. a Bob submit XXXX with of to going submission, don't modeling

impact. the in increase built see forward just What going million with So most volume. based is have that the we for $XX we incremental on Durban you associated of except costs already and think will expense

in in BSA that So to grow, development CRA But continue increased might community markets remain Bob, no one-time want add I'm requirements at we'll we'll the volume. we in our address… order of. to handle significant new increase undertake. you on that based aware as area And expenses least We'll the to officers

Bob Fehlman

as non-interest would believe professional said, I that one expense, on in will our think spent are fees from point. bucket. I we most may fees And those to say, We George to of others change and It this to costs Yes. consulting bucket have money another there. get us up

move As overall that move either bucket in the will we But into or next built some another. cost into may in, systems from into is to the people move of year, bottling. one it cost just

Stephen Scouten

along that, maybe rate And maybe higher run perspective, run basis the of Okay, that, costs helpful. like on side, bank. loan to you mentioned guys how forma creep quarter guys you ratio the question but deal. a What to with quarter-over-quarter. do a think the than be last up on that’s going is moving from where points And basis you pro in to the environment build is this the good deposit cost competitive idea deposit deposit an your going from to up give me preparation forward, really have traditionally one in deposit

comfort is do up level bid more versus that how and do your of how to you deposits? So think have more about to much where you get

David Garner

deposit hope We leave particularly that very this forward, our loan higher basis our will commercial and deposits. aggressive of our loan quarter. area. some couple than And yield Well, by increase in outpaced increase the that we yield is with were last think our now last We we points deposit certainly right quarter promotions, cost and rate going now. we’re a competitive of think

we with We’re cost from deposit see where are. We don’t great they our are in today. increase very comfortable a where

in actually In some reduce in can may there’s acquired from some some shift of markets. see deposits costs in fact, of what high pretty costs and deposit our markets have the some the to some of to deposit costs we if some those opportunity offset we increased banks legacy we

yields going proportionately increase forward. we So last up different little regard we this was both and that, forward think on going move an probably to higher going loan think might quarter we’re I have that’s with hold way perspective in but costs you deposit see a would Barry, But to point. my and

Barry Ledbetter

too treasury said hired think, in treasury And management you on the that we’ve of CRE lot large it management, I a of last into a probably thing XX have emphasis well. officers and days we’ve the couple had done is think I other real markets loans.

forward And so large very some about deposits accounts. feel positive the core on increase some with commercial we going

Stephen Scouten

congrats That’s so much. behind know guys, thanks you. those closed. getting really that Okay deals and to helpful get on good two I it’s

So congrats.

David Garner

Steve. Thanks,

Operator

from. And you. the proceed. our Curtiss Thank Jaffray Piper Please next of from come William question will line from

William Curtiss

pace little next changed would deals, your on George, I you in just you still the maybe view scale a on pretty recent the can multiple feel with year? mean, deals? that a down curious about So bit? if of guess think if you update or I’m future the active has doing us after comfortable gained slow anyway your think do may appetite you’ve year. for I M&A as you Now kind M&A

George Makris

understands Southwest are first banks. of successful of now the right integration Well, associates make we on long both so everybody Bank. at me Bank that the worked and let big focused S&B have it about us. totally deal That’s We’ve to and and part a those

there more said, opportunities priority. for So we current we currently Not lot from footprint. we being to in that that’s where That our believe rolling we consider also where that growth acquisitions are wouldn’t grow. a successful of think current substantial that our had are, we footprint that integration. And have that really to there our really we is we in like priority top but a continuous market markets would is

potential partners as have currently we would some will maybe continued like but not merger in we and with new So presence have. some a presence, where we markets have discussions to discussions a some big as

that you could from to little us. and increase will current a new So non-interest in I lines in share deploy markets of a markets businesses acquisitions shift will markets probably acquisitions our that very of some income see think attractive for us bit help market is what our in be

income a build back to So, we’re existing to need in that do probably basis, over and non-interest the know going our about pro market. going XX%down you that is We mid-XX% forma that on to level. up XX% go the from to

a that shift. will be of a So little bit

go We are to we’re ahead a certainly to next partner we that months, to push the there. But get the in no prepared in button. good extent rush six that find and

William Curtiss

and sense the if And on Heartland? missed made for have you last think bit, a when one I you’ll decision apologise then just maybe a any

George Makris

year, by the We too within end a tell. weeks. decision. to make that could be It's three really know we It will the of early

We that taking would Heartland at into which actually for also to are control of sale Bank. Simmons that alternative in really didn’t good market whole quickly had it sale about the we the and our of but be a assets, a all of until came the options we’re so options we a us. at time is Bank, those also That bank, all taking look integrating have investigate look

place folks base their some Associates very it that The maintaining We business. and management of we Heartland good in will as stabilized. very that job done say have institution put has of We’ve good got this.

is probably fortunately the sheet sale, held for there you that booked sale, it value own the on fortunate for the and liability that very greater we’re was assets assets some our and than in balance So still held liabilities. way asset noticed

two And going out how three go. marketplace. the all we’re to that plays in hopefully, see weeks, we’ll to we’re direction within going which know to So just

David Garner

held other in at estimated are other held sale both those value for of balance And see for sale, the XXX. liabilities Will, the said, have at are and just -- as sheet fair those that can George we our assets you

Operator

our come Thank next Please you. of And with the from question Brady Gailey line proceed. will KBW.

Brady Gailey

a for would one mean, is Maybe headed George, what's that you M&A. would spot on on that under billion and $XX new even ability I you're assets. the billion to more acquire? sweet you the to M&A? over range look consider now deal size $XX What

George Makris

of lot mentioned have booking Brady, honestly, we do kind those that the as billion $X sweet a in that used institutions. of Well, with business sort to to still been has the of And sits producers spot. a as quite before,

However, I'll those And there billion specialty we footprint has that like an plenty certainly smaller that’s current than consider. should in business, say of agriculture, find we our this. are that we have lines institution an some of If lending interest. $X will

not really ruling result portfolio, acquisition. the So loan to we can really effects I'm just a table on put and that necessarily, they out place that it the producers the synergistic into of the as bring any Bank's size make-up the of depends

Brady Gailey

up start provision, listen pressure the had And second comments it reserve, million I guide year, for to think see you question know much provision. -- your How then on I about this on sounds in around think to like on to do is pressure if upward the $XX we’ll I that’s my will so be quarter. million provision some I’ll XXXX? it $X a upward the the

George Makris

care those coverage of $X.X total and quarter, depend I is quickly million right our to now Well, into our we’ll again, Once portfolio including legacy barely still migrate above really the just take credit the our portfolio. going X%, legacy that. mark allowance. It's based and loans on how the current on think

I’ll very are SNB portfolios. coverage got that very, tell total nervous acquired also clean And Southwest you little that about a Bob Now, mentioned portfolios the at dropping thinking and X%. below I’ve bank Bank

close is an to they what allowance mark very to our be consider So today. appropriate

that’s go will So their where need up migrate, as income their if our mark to it loans allowance be. to we they to a the to book close into needs accretion allowance portfolio that for it build

So I tremendous bottom see We can accretion benefits the dropping that’s line, going to as won't give forward. income guidance from you. about much as

Operator

showing Instructions] further questions, am [Operator at I no this time. you. And Thank

Mr. pleasure my conference Executive Chief hand the for George over to back Makris, to it’s now So closing sir. Chairman and remarks, remarks and Officer,

George Makris

for once your I Well, We all one-time And participation. much. us thank We a for thanks this inconvenient again very this. you joining hope be apologize have event. great you for again of the it’ll of morning. Thanks a scheduling you day. to again, promise

Operator

conclude thank disconnect. have can and wonderful and we today's conference. for This Ladies does all participation the gentlemen, you your on Everybody, day. program a

Simmons First National (SFNC) 23 Oct 172017 Q3 Earnings call transcript