For
Quarter Ended September 30, 2005
|
Commission
File Number 0-6253
|
Arkansas
|
71-0407808
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
incorporation
or organization)
|
Identification
No.)
|
501
Main Street, Pine Bluff, Arkansas
|
71601
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Page
No.
|
||
|
||
September
30,
|
December
31,
|
||||||
(In
thousands, except share data)
|
2005
|
2004
|
|||||
(Unaudited)
|
|||||||
Cash
and non-interest bearing balances due from banks
|
$
|
83,088
|
$
|
72,032
|
|||
Interest
bearing balances due from banks
|
48,206
|
36,249
|
|||||
Federal
funds sold
|
16,825
|
45,450
|
|||||
Cash
and cash equivalents
|
148,119
|
153,731
|
|||||
Investment
securities
|
539,970
|
542,058
|
|||||
Mortgage
loans held for sale
|
9,417
|
9,246
|
|||||
Assets
held in trading accounts
|
4,730
|
4,916
|
|||||
Loans
|
1,709,371
|
1,571,376
|
|||||
Allowance
for loan losses
|
(27,329
|
)
|
(26,508
|
)
|
|||
Net
loans
|
1,682,042
|
1,544,868
|
|||||
Premises
and equipment
|
61,354
|
57,211
|
|||||
Foreclosed
assets held for sale, net
|
2,120
|
1,839
|
|||||
Interest
receivable
|
18,555
|
14,248
|
|||||
Bank
owned life insurance
|
32,952
|
7,316
|
|||||
Goodwill
|
60,454
|
60,454
|
|||||
Core
deposit premiums
|
5,207
|
5,829
|
|||||
Other
assets
|
12,122
|
12,228
|
|||||
TOTAL
ASSETS
|
$
|
2,577,042
|
$
|
2,413,944
|
September
30,
|
December
31,
|
||||||
(In
thousands, except share data)
|
2005
|
2004
|
|||||
(Unaudited)
|
|||||||
LIABILITIES
|
|||||||
Non-interest
bearing transaction accounts
|
$
|
305,506
|
$
|
293,137
|
|||
Interest
bearing transaction accounts and savings deposits
|
758,906
|
769,296
|
|||||
Time
deposits
|
983,315
|
896,762
|
|||||
Total
deposits
|
2,047,727
|
1,959,195
|
|||||
Federal
funds purchased and securities sold
|
|||||||
under
agreements to repurchase
|
92,320
|
104,785
|
|||||
Short-term
debt
|
92,747
|
2,373
|
|||||
Long-term
debt
|
86,996
|
94,663
|
|||||
Accrued
interest and other liabilities
|
16,081
|
14,706
|
|||||
Total
liabilities
|
2,335,871
|
2,175,722
|
|||||
STOCKHOLDERS’
EQUITY
|
|||||||
Capital
stock
|
|||||||
Class
A, common, par value $0.01 a share, authorized
|
|||||||
30,000,000
shares, 14,337,803 issued and outstanding
|
|||||||
at
2005 and 14,621,707 at 2004
|
143
|
146
|
|||||
Surplus
|
54,429
|
62,826
|
|||||
Undivided
profits
|
190,047
|
176,374
|
|||||
Accumulated
other comprehensive income (loss)
|
|||||||
Unrealized
appreciation (depreciation) on available-for-sale
securities,
|
|||||||
net
of income tax credits of $2,067 at 2005 and $673 at 2004
|
(3,448
|
)
|
(1,124
|
)
|
|||
Total
stockholders’ equity
|
241,171
|
238,222
|
|||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
2,577,042
|
$
|
2,413,944
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||
September
30,
|
September
30,
|
|||||||||||
(In
thousands, except per share data)
|
2005
|
|
2004
|
2005
|
|
2004
|
||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||
INTEREST
INCOME
|
||||||||||||
Loans
|
$
|
29,225
|
$
|
24,956
|
$
|
81,813
|
$
|
71,490
|
||||
Federal
funds sold
|
262
|
140
|
863
|
445
|
||||||||
Investment
securities
|
4,693
|
4,494
|
13,926
|
12,951
|
||||||||
Mortgage
loans held for sale
|
168
|
159
|
421
|
445
|
||||||||
Assets
held in trading accounts
|
25
|
2
|
74
|
6
|
||||||||
Interest
bearing balances due from banks
|
119
|
34
|
418
|
228
|
||||||||
TOTAL
INTEREST INCOME
|
34,492
|
29,785
|
97,515
|
85,565
|
||||||||
INTEREST
EXPENSE
|
||||||||||||
Deposits
|
9,046
|
5,824
|
23,889
|
16,942
|
||||||||
Federal
funds purchased and securities sold
|
||||||||||||
under
agreements to repurchase
|
815
|
302
|
2,088
|
756
|
||||||||
Short-term
debt
|
646
|
94
|
790
|
134
|
||||||||
Long-term
debt
|
1,113
|
1,448
|
3,306
|
4,351
|
||||||||
TOTAL
INTEREST EXPENSE
|
11,620
|
7,668
|
30,073
|
22,183
|
||||||||
NET
INTEREST INCOME
|
22,872
|
22,117
|
67,442
|
63,382
|
||||||||
Provision
for loan losses
|
1,736
|
1,932
|
5,895
|
6,095
|
||||||||
NET
INTEREST INCOME AFTER PROVISION
|
||||||||||||
FOR
LOAN LOSSES
|
21,136
|
20,185
|
61,547
|
57,287
|
||||||||
NON-INTEREST
INCOME
|
||||||||||||
Trust
income
|
1,430
|
1,388
|
4,164
|
4,021
|
||||||||
Service
charges on deposit accounts
|
4,154
|
3,928
|
11,721
|
10,922
|
||||||||
Other
service charges and fees
|
472
|
536
|
1,511
|
1,528
|
||||||||
Income
on sale of mortgage loans, net of commissions
|
826
|
814
|
2,221
|
2,610
|
||||||||
Income
on investment banking, net of commissions
|
146
|
101
|
364
|
514
|
||||||||
Credit
card fees
|
2,619
|
2,544
|
7,543
|
7,371
|
||||||||
Premiums
on sale of student loans
|
295
|
417
|
1,572
|
1,867
|
||||||||
Bank
owned life insurance income
|
312
|
23
|
551
|
50
|
||||||||
Other
income
|
486
|
633
|
2,163
|
1,868
|
||||||||
Gain
(loss) on sale of securities, net of taxes
|
--
|
--
|
(168
|
)
|
--
|
|||||||
TOTAL
NON-INTEREST INCOME
|
10,740
|
10,384
|
31,642
|
30,751
|
||||||||
NON-INTEREST
EXPENSE
|
||||||||||||
Salaries
and employee benefits
|
12,703
|
12,091
|
38,231
|
36,176
|
||||||||
Occupancy
expense, net
|
1,483
|
1,431
|
4,314
|
4,126
|
||||||||
Furniture
and equipment expense
|
1,421
|
1,445
|
4,277
|
4,202
|
||||||||
Loss
on foreclosed assets
|
57
|
49
|
160
|
230
|
||||||||
Deposit
insurance
|
72
|
76
|
214
|
216
|
||||||||
Other
operating expenses
|
5,490
|
5,468
|
16,412
|
15,799
|
||||||||
TOTAL
NON-INTEREST EXPENSE
|
21,226
|
20,560
|
63,608
|
60,749
|
||||||||
INCOME
BEFORE INCOME TAXES
|
10,650
|
10,009
|
29,581
|
27,289
|
||||||||
Provision
for income taxes
|
3,316
|
3,102
|
9,444
|
8,683
|
||||||||
NET
INCOME
|
$
|
7,334
|
$
|
6,907
|
$
|
20,137
|
$
|
18,606
|
||||
BASIC
EARNINGS PER SHARE
|
$
|
0.51
|
$
|
0.47
|
$
|
1.40
|
$
|
1.28
|
||||
DILUTED
EARNINGS PER SHARE
|
$
|
0.50
|
$
|
0.47
|
$
|
1.37
|
$
|
1.26
|
|
September
30,
|
|
|
September
30,
|
|||
(In thousands) |
2005
|
|
|
2004
|
|||
OPERATING
ACTIVITIES
|
(Unaudited)
|
||||||
Net
income
|
$
|
20,137
|
$
|
18,606
|
|||
Items
not requiring (providing) cash
|
|||||||
Depreciation
and amortization
|
4,052
|
4,025
|
|||||
Provision
for loan losses
|
5,895
|
6,095
|
|||||
Net
accretion of investment securities
|
247
|
540
|
|||||
Deferred
income taxes
|
(1,227
|
)
|
2,675
|
||||
Provision
for losses on foreclosed assets
|
--
|
35
|
|||||
(Gain)
loss on sale of securities, net of taxes
|
168
|
--
|
|||||
Cash
surrender value of bank owned life insurance
|
(636
|
)
|
(191
|
)
|
|||
Changes
in
|
|||||||
Interest
receivable
|
(4,307
|
)
|
(1,888
|
)
|
|||
Mortgage
loans held for sale
|
(171
|
)
|
1,058
|
||||
Assets
held in trading accounts
|
186
|
(2,059
|
)
|
||||
Other
assets
|
106
|
4,731
|
|||||
Accrued
interest and other liabilities
|
4,224
|
1,799
|
|||||
Income
taxes payable
|
(1,515
|
)
|
(4,585
|
)
|
|||
Net
cash provided (used) by operating activities
|
27,159
|
30,841
|
|||||
|
|||||||
INVESTING
ACTIVITIES
|
|||||||
Net
originations of loans
|
(144,918
|
)
|
(119,922
|
)
|
|||
Purchase
of branch location, net funds received
|
--
|
4,892
|
|||||
Purchase
of Alliance Bancorporation, Inc., net
|
--
|
(7,835
|
)
|
||||
Purchase
of premises and equipment, net
|
(7,573
|
)
|
(6,874
|
)
|
|||
Proceeds
from sale of foreclosed assets
|
1,568
|
2,425
|
|||||
Proceeds
from sale of securities
|
1,225
|
--
|
|||||
Proceeds
from maturities of available-for-sale securities
|
58,757
|
145,636
|
|||||
Purchases
of available-for-sale securities
|
(60,671
|
)
|
(166,600
|
)
|
|||
Proceeds
from maturities of held-to-maturity securities
|
24,071
|
37,334
|
|||||
Purchases
of held-to-maturity securities
|
(24,140
|
)
|
(22,162
|
)
|
|||
Purchases
of bank owned life insurance
|
(25,000
|
)
|
(2,216
|
)
|
|||
Net
cash provided (used) by investing activities
|
(176,681
|
)
|
(135,322
|
)
|
|||
|
|||||||
FINANCING
ACTIVITIES
|
|||||||
Net
increase (decrease) in deposits
|
88,532
|
21,818
|
|||||
Net
proceeds (repayments) of short-term debt
|
90,374
|
6,930
|
|||||
Dividends
paid
|
(6,464
|
)
|
(6,071
|
)
|
|||
Proceeds
from issuance of long-term debt
|
1,821
|
9,050
|
|||||
Repayment
of long-term debt
|
(9,488
|
)
|
(8,258
|
)
|
|||
Net
increase (decrease) in federal funds purchased and
securities
|
|||||||
sold
under agreements to repurchase
|
(12,465
|
)
|
(12,524
|
)
|
|||
Repurchase
of common stock, net
|
(8,400
|
)
|
(1,562
|
)
|
|||
Net
cash provided (used) by financing activities
|
143,910
|
9,383
|
|||||
INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
(5,612
|
)
|
(95,098
|
)
|
|||
CASH
AND CASH EQUIVALENTS,
|
|||||||
BEGINNING
OF YEAR
|
153,731
|
201,615
|
|||||
CASH
AND CASH EQUIVALENTS, END OF PERIOD
|
$
|
148,119
|
$
|
106,517
|
|
Accumulated
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
Common
|
|
Comprehensive
|
Undivided
|
||||||||||
(In
thousands, except share data)
|
Stock
|
Surplus
|
Income
(loss)
|
|
Profits
|
Total
|
||||||||||
Balance,
December 31, 2003
|
$
|
14,102
|
$
|
35,988
|
$
|
(286
|
)
|
$
|
160,191
|
$
|
209,995
|
|||||
Comprehensive
income
|
||||||||||||||||
Net
income
|
--
|
--
|
--
|
18,606
|
18,606
|
|||||||||||
Change
in unrealized depreciation on
|
||||||||||||||||
available-for-sale
securities, net of
|
||||||||||||||||
income
taxes of $126
|
--
|
--
|
209
|
--
|
209
|
|||||||||||
Comprehensive
income
|
18,815
|
|||||||||||||||
Stock
issued as bonus shares - 2,000 shares
|
2
|
50
|
--
|
--
|
52
|
|||||||||||
Change
in the par value of common stock
|
(14,523
|
)
|
14,523
|
--
|
--
|
--
|
||||||||||
Stock
issued in connection with the merger
|
||||||||||||||||
of
Alliance Bancorporation
|
545
|
13,732
|
--
|
--
|
14,277
|
|||||||||||
Exercise
of stock options - 42,297 shares
|
36
|
591
|
--
|
--
|
627
|
|||||||||||
Securities
exchanged under stock option plan
|
(15
|
)
|
(442
|
)
|
--
|
--
|
(457
|
)
|
||||||||
Repurchase
of common stock - 73,456 shares
|
(1
|
)
|
(1,783
|
)
|
--
|
--
|
(1,784
|
)
|
||||||||
Dividends
paid - $0.42 per share
|
--
|
--
|
--
|
(6,071
|
)
|
(6,071
|
)
|
|||||||||
Balance,
September 30, 2004 (Unaudited)
|
146
|
62,659
|
(77
|
)
|
172,726
|
235,454
|
||||||||||
Comprehensive
income
|
||||||||||||||||
Net
income
|
--
|
--
|
--
|
5,840
|
5,840
|
|||||||||||
Change
in unrealized depreciation on
|
||||||||||||||||
available-for-sale
securities, net of
|
||||||||||||||||
income
tax credit of $629
|
--
|
--
|
(1,047
|
)
|
--
|
(1,047
|
)
|
|||||||||
Comprehensive
income
|
4,793
|
|||||||||||||||
Exercise
of stock options - 26,700 shares
|
--
|
338
|
--
|
--
|
338
|
|||||||||||
Securities
exchanged under stock option plan
|
--
|
(171
|
)
|
--
|
--
|
(171
|
)
|
|||||||||
Dividends
paid - $0.15 per share
|
--
|
--
|
--
|
(2,192
|
)
|
(2,192
|
)
|
|||||||||
Balance,
December 31, 2004
|
146
|
62,826
|
(1,124
|
)
|
176,374
|
238,222
|
||||||||||
Comprehensive
income
|
||||||||||||||||
Net
income
|
--
|
--
|
--
|
20,137
|
20,137
|
|||||||||||
Change
in unrealized depreciation on
|
||||||||||||||||
available-for-sale
securities, net of
|
||||||||||||||||
income
tax credit of $1,394
|
--
|
--
|
(2,324
|
)
|
--
|
(2,324
|
)
|
|||||||||
Comprehensive
income
|
17,813
|
|||||||||||||||
Stock
issued as bonus shares - 5,620 shares
|
--
|
141
|
--
|
--
|
141
|
|||||||||||
Exercise
of stock options - 80,460 shares
|
1
|
1,112
|
--
|
--
|
1,113
|
|||||||||||
Securities
exchanged under stock option plan
|
(1
|
)
|
(775
|
)
|
--
|
--
|
(776
|
)
|
||||||||
Repurchase
of common stock - 341,995 shares
|
(3
|
)
|
(8,875
|
)
|
--
|
--
|
(8,878
|
)
|
||||||||
Dividends
paid - $0.45 per share
|
--
|
--
|
--
|
(6,464
|
)
|
(6,464
|
)
|
|||||||||
Balance,
September 30, 2005 (Unaudited)
|
$
|
143
|
$
|
54,429
|
$
|
(3,448
|
)
|
$
|
190,047
|
$
|
241,171
|
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||
|
September
30,
|
September
30,
|
|||||||||||
(In
thousands, except per share data)
|
2005
|
|
|
2004
|
2005
|
|
|
2004
|
|||||
Net
income
|
$
|
7,334
|
$
|
6,907
|
$
|
20,137
|
$
|
18,606
|
|||||
Average
common shares outstanding
|
14,357
|
14,608
|
14,386
|
14,484
|
|||||||||
Average
potential dilutive common shares
|
297
|
328
|
297
|
328
|
|||||||||
Average
diluted common shares
|
14,654
|
14,936
|
14,683
|
14,812
|
|||||||||
Basic
earnings per share
|
$
|
0.51
|
$
|
0.47
|
$
|
1.40
|
$
|
1.28
|
|||||
Diluted
earnings per share
|
$
|
0.50
|
$
|
0.47
|
$
|
1.37
|
$
|
1.26
|
September 30,
2005
|
December 31,
2004
|
||||||||||||||||||||||
Gross
|
Gross
|
Estimated
|
Gross
|
Gross
|
Estimated
|
||||||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
||||||||||||||||
(In
thousands)
|
Cost
|
Gains
|
(Losses)
|
Value
|
Cost
|
Gains
|
(Losses)
|
Value
|
|||||||||||||||
Held-to-Maturity
|
|||||||||||||||||||||||
U.S.
Treasury
|
$
|
2,007
|
$
|
1
|
$
|
(20
|
)
|
$
|
1,988
|
$
|
4,020
|
$
|
12
|
$
|
(19
|
)
|
$
|
4,013
|
|||||
U.S.
Government
|
|||||||||||||||||||||||
agencies
|
25,999
|
1
|
(329
|
)
|
25,671
|
21,500
|
18
|
(76
|
)
|
21,442
|
|||||||||||||
Mortgage-backed
|
|||||||||||||||||||||||
securities
|
197
|
4
|
--
|
201
|
307
|
7
|
(1
|
)
|
313
|
||||||||||||||
State
and political
|
|||||||||||||||||||||||
subdivisions
|
120,424
|
950
|
(537
|
)
|
120,837
|
122,457
|
1,617
|
(390
|
)
|
123,684
|
|||||||||||||
Other
securities
|
2,495
|
--
|
--
|
2,495
|
2,980
|
--
|
--
|
2,980
|
|||||||||||||||
$
|
151,122
|
$
|
956
|
$
|
(886
|
)
|
$
|
151,192
|
$
|
151,264
|
$
|
1,654
|
$
|
(486
|
)
|
$
|
152,432
|
||||||
Available-for-Sale
|
|||||||||||||||||||||||
U.S.
Treasury
|
$
|
17,490
|
$
|
--
|
$
|
(127
|
)
|
$
|
17,363
|
$
|
24,218
|
$
|
3
|
$
|
(125
|
)
|
$
|
24,096
|
|||||
U.S.
Government
|
|||||||||||||||||||||||
agencies
|
352,518
|
53
|
(6,262
|
)
|
346,309
|
343,716
|
226
|
(2,856
|
)
|
341,086
|
|||||||||||||
Mortgage-backed
|
|||||||||||||||||||||||
securities
|
3,469
|
21
|
(48
|
)
|
3,442
|
3,919
|
13
|
(55
|
)
|
3,877
|
|||||||||||||
State
and political
|
|||||||||||||||||||||||
subdivisions
|
3,114
|
55
|
--
|
3,169
|
4,616
|
130
|
--
|
4,746
|
|||||||||||||||
Other
securities
|
17,890
|
675
|
--
|
18,565
|
16,154
|
1,111
|
(276
|
)
|
16,989
|
||||||||||||||
$
|
394,481
|
$
|
804
|
$
|
(6,437
|
)
|
$
|
388,848
|
$
|
392,623
|
$
|
1,483
|
$
|
(3,312
|
)
|
$
|
390,794
|
(In
thousands)
|
2005
|
2004
|
|||||
Taxable
|
|||||||
Held-to-maturity
|
$
|
773
|
$
|
1,101
|
|||
Available-for-sale
|
9,542
|
8,067
|
|||||
Non-taxable
|
|
||||||
Held-to-maturity
|
3,460
|
3,600
|
|||||
Available-for-sale
|
151
|
183
|
|||||
|
|||||||
Total
|
$
|
13,926
|
$
|
12,951
|
Held-to-Maturity
|
Available-for-Sale
|
|||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||
(In
thousands)
|
Cost
|
Value
|
Cost
|
Value
|
||||||||
One
year or less
|
$
|
19,768
|
$
|
19,767
|
$
|
58,940
|
$
|
58,423
|
||||
After
one through five years
|
62,517
|
62,385
|
246,717
|
241,867
|
||||||||
After
five through ten years
|
64,231
|
64,396
|
69,107
|
68,162
|
||||||||
After
ten years
|
3,041
|
3,078
|
1,826
|
1,831
|
||||||||
Other
securities
|
1,565
|
1,566
|
17,891
|
18,565
|
||||||||
Total
|
$
|
151,122
|
$
|
151,192
|
$
|
394,481
|
$
|
388,848
|
|
September
30,
|
December
31,
|
||||
(In
thousands)
|
2005
|
2004
|
||||
Consumer
|
||||||
Credit
cards
|
$
|
138,077
|
$
|
155,326
|
||
Student
loans
|
89,759
|
83,283
|
||||
Other
consumer
|
136,626
|
128,552
|
||||
Real
Estate
|
||||||
Construction
|
227,063
|
169,001
|
||||
Single
family residential
|
338,458
|
318,488
|
||||
Other
commercial
|
462,978
|
481,728
|
||||
Commercial
|
||||||
Commercial
|
177,682
|
158,613
|
||||
Agricultural
|
105,107
|
62,340
|
||||
Financial
institutions
|
21,219
|
1,079
|
||||
Other
|
12,402
|
12,966
|
||||
Total
loans before allowance for loan losses
|
$
|
1,709,371
|
$
|
1,571,376
|
September
30,
|
December
31,
|
||||||
(In
thousands)
|
2005
|
2004
|
|||||
Balance,
beginning of year
|
$
|
26,508
|
$
|
25,347
|
|||
Additions
|
|||||||
ABI
allowance for loan losses
|
--
|
1,108
|
|||||
Provision
charged to expense
|
5,895
|
6,095
|
|||||
32,403
|
32,550
|
||||||
Deductions
|
|||||||
Losses
charged to allowance, net of recoveries
|
|||||||
of
$3,305 and $1,582 for the first nine months of
|
|||||||
2005
and 2004, respectively
|
5,074
|
4,948
|
|||||
Balance,
September 30
|
$
|
27,329
|
27,602
|
||||
Additions
|
|||||||
Provision
charged to expense
|
1,932
|
||||||
Deductions
|
|||||||
Losses
charged to allowance, net of recoveries
|
|||||||
of
$849 for the last three months of 2004
|
3,026
|
||||||
Balance,
end of year
|
$
|
26,508
|
September
30,
|
December
31,
|
|||||
(In
thousands)
|
2005
|
2004
|
||||
Gross
carrying amount
|
$
|
7,216
|
$
|
7,216
|
||
Accumulated
amortization
|
(2,009
|
)
|
(1,387)
|
|||
Net
core deposit premiums
|
$
|
5,207
|
$
|
5,829
|
September
30,
|
September
30,
|
|||||
(In
thousands)
|
2005
|
2004
|
||||
Income
taxes currently payable
|
$
|
10,671
|
$
|
6,008
|
||
Deferred
income taxes
|
(1,227
|
)
|
2,675
|
|||
Provision
for income taxes
|
$
|
9,444
|
$
|
8,683
|
The
tax effects of temporary differences related to deferred taxes
shown on
the balance sheets are shown below:
|
|
September
30,
|
December
31,
|
||||
(In
thousands)
|
2005
|
2004
|
||||
Deferred
tax assets
|
||||||
Allowance
for loan losses
|
$
|
8,398
|
$
|
8,028
|
||
Valuation
of foreclosed assets
|
189
|
189
|
||||
Deferred
compensation payable
|
1,029
|
989
|
||||
FHLB
advances
|
117
|
168
|
||||
Vacation
compensation
|
709
|
689
|
||||
Loan
interest
|
241
|
242
|
||||
Available-for-sale
securities
|
2,067
|
673
|
||||
Other
|
294
|
202
|
||||
Total
deferred tax assets
|
13,044
|
11,180
|
||||
Deferred
tax liabilities
|
||||||
Accumulated
depreciation
|
(520
|
)
|
(866)
|
|||
Deferred
loan fee income and expenses, net
|
(656
|
)
|
(503)
|
|||
FHLB
stock dividends
|
(824
|
)
|
(758)
|
|||
Goodwill
and core deposit premium amortization
|
(2,619
|
)
|
(2,655)
|
|||
Other
|
(2,487
|
)
|
(627)
|
|||
Total
deferred tax liabilities
|
(7,106
|
)
|
(5,409)
|
|||
Net
deferred tax assets included in other
|
||||||
assets
on balance sheets
|
$
|
5,938
|
$
|
5,771
|
September
30,
|
September
30,
|
|||||
(In
thousands)
|
2005
|
2004
|
||||
Computed
at the statutory rate (35%)
|
$
|
10,353
|
$
|
9,551
|
||
Increase
(decrease) resulting from:
|
||||||
Tax
exempt income
|
(1,422
|
)
|
(1,496)
|
|||
Other
differences, net
|
513
|
628
|
||||
Actual
tax provision
|
$
|
9,444
|
$
|
8,683
|
NOTE
8: SHORT-TERM
AND LONG-TERM DEBT
|
||
Long-term
debt at September 30, 2005 and December 31, 2004, consisted of
the
following components:
|
September
30,
|
December
31,
|
|||||
(In
thousands)
|
2005
|
2004
|
||||
Note
Payable, due 2007, at a floating rate of
|
||||||
0.90%
above the 30 day LIBOR rate, reset
|
||||||
monthly,
unsecured
|
$
|
4,000
|
$
|
6,000
|
||
FHLB
advances, due 2004 to 2023, 1.02% to 8.41%
|
||||||
secured
by residential real estate loans
|
52,066
|
57,733
|
||||
Trust
preferred securities, due 2033,
|
||||||
fixed
at 8.25%, callable in 2008 without penalty
|
10,310
|
10,310
|
||||
Trust
preferred securities,
due 2033,
|
||||||
floating
rate of 2.80% above the three-month LIBOR
|
||||||
rate,
reset quarterly, callable in 2008 without penalty
|
10,310
|
10,310
|
||||
Trust
preferred securities, due 2033,
|
||||||
fixed
rate of 6.97% during the first seven years
|
||||||
and
at a floating rate of 2.80% above the three-month
|
||||||
LIBOR
rate, reset quarterly, thereafter, callable
|
||||||
in
2010 without penalty
|
10,310
|
10,310
|
||||
$
|
86,996
|
$
|
94,663
|
Annual
|
||||||
(In
thousands)
|
Year
|
Maturities
|
||||
2005
|
$
|
3,055
|
||||
2006
|
13,188
|
|||||
2007
|
11,440
|
|||||
2008
|
7,164
|
|||||
2009
|
5,396
|
|||||
|
Thereafter
|
46,753
|
||||
|
||||||
|
Total
|
$
|
86,996
|
Nine
Months Ended
|
||||||
September
30,
|
||||||
(In
thousands)
|
2005
|
2004
|
||||
Interest
paid
|
$
|
29,019
|
$
|
22,137
|
||
Income
taxes paid
|
$
|
9,732
|
$
|
8,770
|
|
BKD,
LLP
|
|
Certified
Public Accountants
|
200
East Eleventh
|
Pine
Bluff, Arkansas
|
/s/ BKD, LLP | ||
BKD, LLP | ||
Pine Bluff, Arkansas | ||
Date: October 26, 2005 |
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||
September
30,
|
September
30,
|
||||||||||||
(In
thousands)
|
2005
|
2004
|
2005
|
2004
|
|||||||||
Interest
income
|
$
|
34,492
|
$
|
29,785
|
$
|
97,515
|
$
|
85,565
|
|||||
FTE
adjustment
|
803
|
820
|
2,445
|
2,398
|
|||||||||
Interest
income - FTE
|
35,295
|
30,605
|
99,960
|
87,963
|
|||||||||
Interest
expense
|
11,620
|
7,668
|
30,073
|
22,183
|
|||||||||
Net
interest income - FTE
|
$
|
23,675
|
$
|
22,937
|
$
|
69,887
|
$
|
65,780
|
|||||
Yield
on earning assets - FTE
|
6.11%
|
|
5.55%
|
|
5.90%
|
|
5.46%
|
|
|||||
Cost
of interest bearing liabilities
|
2.34%
|
|
1.64%
|
|
2.08%
|
|
1.63%
|
|
|||||
Net
interest spread - FTE
|
3.77%
|
|
3.91%
|
|
3.84%
|
|
3.83%
|
|
|||||
Net
interest margin - FTE
|
4.10%
|
|
4.16%
|
|
4.14%
|
|
4.08%
|
|
Three
Months Ended
|
Nine
Months Ended
|
||||||
September
30,
|
September
30,
|
||||||
(In
thousands)
|
2005
vs. 2004
|
2005
vs. 2004
|
|||||
Increase
due to change in earning assets
|
$
|
1,677
|
$
|
5,766
|
|||
Increase
due to change in earning asset yields
|
3,013
|
6,231
|
|||||
Decrease
due to change in interest bearing
liabilities
|
(501 | ) | (832 | ) | |||
Decrease
due to change in interest rates paid
on interest bearing liabilities
|
(3,451 |
)
|
(7,058 | ) | |||
Increase
in net interest income
|
$
|
738
|
$
|
4,107
|
Three
Months Ended September 30,
|
|||||||||||||||||||
2005
|
2004
|
||||||||||||||||||
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
||||||||||||||
(In
thousands)
|
Balance
|
Expense
|
Rate(%)
|
Balance
|
Expense
|
Rate(%)
|
|||||||||||||
ASSETS
|
|||||||||||||||||||
Earning
Assets
|
|||||||||||||||||||
Interest
bearing balances
due
from banks
|
$
|
16,384
|
$
|
119
|
2.88
|
$
|
13,817
|
$
|
34
|
0.98
|
|||||||||
Federal
funds sold
|
29,375
|
262
|
3.54
|
36,389
|
140
|
1.53
|
|
||||||||||||
Investment
securities - taxable
|
419,204
|
3,503
|
3.32
|
426,355
|
3,202
|
2.99
|
|||||||||||||
Investment
securities - non-taxable
|
122,030
|
1,904
|
6.19
|
130,773
|
2,021
|
6.15
|
|
||||||||||||
Mortgage
loans held for sale
|
11,395
|
168
|
5.85
|
|
10,211
|
159
|
6.19
|
||||||||||||
Assets
held in trading accounts
|
4,711
|
25
|
2.11
|
236
|
2
|
3.37
|
|
||||||||||||
Loans
|
1,689,883
|
29,314
|
6.88
|
|
1,577,821
|
25,047
|
6.32
|
||||||||||||
Total
interest earning assets
|
2,292,982
|
35,295
|
6.11
|
2,195,602
|
30,605
|
5.55
|
|
||||||||||||
Non-earning
assets
|
241,732
|
206,986
|
|||||||||||||||||
Total
assets
|
$
|
2,534,714
|
$
|
2,402,588
|
|||||||||||||||
LIABILITIES
AND STOCKHOLDERS’
EQUITY
|
|||||||||||||||||||
Liabilities
|
|||||||||||||||||||
Interest
bearing liabilities
|
|||||||||||||||||||
Interest
bearing transaction
and
savings accounts
|
$
|
751,877
|
$
|
2,015
|
1.06
|
$
|
740,559
|
$
|
1,269
|
0.68
|
|||||||||
Time
deposits
|
956,558
|
7,031
|
2.92
|
898,202
|
4,555
|
2.02
|
|||||||||||||
Total
interest bearing deposits
|
1,708,435
|
9,046
|
2.10
|
1,638,761
|
5,824
|
1.41
|
|||||||||||||
Federal
funds purchased and
securities
sold under agreement
to
repurchase
|
92,508
|
815
|
3.50
|
91,950
|
302
|
1.31
|
|||||||||||||
Other
borrowed funds
|
|||||||||||||||||||
Short-term
debt
|
82,463
|
646
|
3.11
|
19,967
|
94
|
1.87
|
|||||||||||||
Long-term
debt
|
88,242
|
1,113
|
5.00
|
111,025
|
1,448
|
5.19
|
|||||||||||||
Total
interest bearing liabilities
|
1,971,648
|
11,620
|
2.34
|
1,861,703
|
7,668
|
1.64
|
|||||||||||||
Non-interest
bearing liabilities
|
|||||||||||||||||||
Non-interest
bearing deposits
|
303,387
|
292,578
|
|||||||||||||||||
Other
liabilities
|
18,120
|
15,263
|
|||||||||||||||||
Total
liabilities
|
2,293,155
|
2,169,544
|
|||||||||||||||||
Stockholders’
equity
|
241,559
|
233,044
|
|||||||||||||||||
Total
liabilities and
stockholders’
equity
|
$
|
2,534,714
|
$
|
2,402,588
|
|||||||||||||||
Net
interest spread
|
3.77
|
3.91
|
|||||||||||||||||
Net
interest margin
|
$
|
23,675
|
4.10
|
$
|
22,937
|
4.16
|
Nine
Months Ended September 30,
|
|||||||||||||||||||
2005
|
2004
|
||||||||||||||||||
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
|
||||||||
(In
thousands)
|
|
Balance
|
|
Expense
|
|
Rate(%)
|
|
Balance
|
|
Expense
|
|
Rate(%)
|
|
||||||
ASSETS
|
|||||||||||||||||||
Earning
Assets
|
|||||||||||||||||||
Interest
bearing balances
due
from banks
|
$
|
22,324
|
$
|
418
|
2.49
|
$
|
35,946
|
$
|
228
|
0.85
|
|||||||||
Federal
funds sold
|
38,768
|
863
|
2.97
|
55,211
|
445
|
1.08
|
|||||||||||||
Investment
securities - taxable
|
429,258
|
10,316
|
3.20
|
410,123
|
9,169
|
2.99
|
|
||||||||||||
Investment
securities - non-taxable
|
122,857
|
5,801
|
6.29
|
126,284
|
5,905
|
6.25
|
|||||||||||||
Mortgage
loans held for sale
|
9,794
|
421
|
5.73
|
10,223
|
445
|
5.81
|
|
||||||||||||
Assets
held in trading accounts
|
4,549
|
74
|
2.17
|
531
|
6
|
1.51
|
|||||||||||||
Loans
|
1,630,995
|
82,067
|
6.70
|
1,514,252
|
71,765
|
6.33
|
|||||||||||||
Total
interest earning assets
|
2,258,545
|
99,960
|
5.90
|
2,152,570
|
87,963
|
5.46
|
|||||||||||||
Non-earning
assets
|
226,599
|
198,423
|
|||||||||||||||||
Total
assets
|
$
|
2,485,144
|
$
|
2,350,993
|
|||||||||||||||
LIABILITIES
AND
STOCKHOLDERS’
EQUITY
|
|||||||||||||||||||
|
|||||||||||||||||||
Liabilities
|
|||||||||||||||||||
Interest
bearing liabilities
|
|||||||||||||||||||
Interest
bearing transaction
and
savings accounts
|
$
|
767,160
|
$
|
5,508
|
0.96
|
$
|
717,643
|
$
|
3,496
|
0.65
|
|||||||||
Time
deposits
|
939,464
|
18,381
|
2.61
|
888,852
|
13,446
|
2.02
|
|||||||||||||
Total
interest bearing deposits
|
1,706,624
|
23,889
|
1.86
|
1,606,495
|
16,942
|
1.41
|
|||||||||||||
|
|||||||||||||||||||
Federal
funds purchased and
securities
sold under agreement
to
repurchase
|
99,673
|
2,088
|
2.79
|
90,206
|
756
|
1.12
|
|
||||||||||||
Other
borrowed funds
|
|||||||||||||||||||
Short-term
debt
|
32,629
|
790
|
3.23
|
11,626
|
134
|
1.54
|
|||||||||||||
Long-term
debt
|
90,865
|
3,306
|
4.85
|
110,131
|
4,351
|
5.28
|
|||||||||||||
Total
interest bearing liabilities
|
1,929,791
|
30,073
|
2.08
|
1,818,458
|
22,183
|
1.63
|
|||||||||||||
Non-interest
bearing liabilities
|
|||||||||||||||||||
Non-interest
bearing deposits
|
300,430
|
290,019
|
|||||||||||||||||
Other
liabilities
|
16,380
|
16,248
|
|||||||||||||||||
Total
liabilities
|
2,246,601
|
2,124,725
|
|||||||||||||||||
Stockholders’
equity
|
238,543
|
226,268
|
|||||||||||||||||
Total
liabilities and
stockholders’
equity
|
$
|
2,485,144
|
$
|
2,350,993
|
|||||||||||||||
Net
interest spread
|
3.84
|
3.83
|
|||||||||||||||||
Net
interest margin
|
$
|
69,887
|
4.14
|
$
|
65,780
|
4.08
|
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
||||||||||||||||||
2005
over 2004
|
2005
over 2004
|
||||||||||||||||||
(In
thousands, on a fully
|
|
|
Yield/
|
|
|
|
|
|
Yield/
|
|
|
|
|||||||
taxable
equivalent basis)
|
|
Volume
|
|
Rate
|
|
Total
|
|
Volume
|
|
Rate
|
|
Total
|
|||||||
Increase
(decrease) in
|
|||||||||||||||||||
Interest
income
|
|||||||||||||||||||
Interest
bearing balances
due
from banks
|
$
|
7
|
$
|
78
|
$
|
85
|
$
|
(113
|
)
|
$
|
303
|
$
|
190
|
||||||
Federal
funds sold
|
(32
|
)
|
154
|
122
|
(167
|
)
|
585
|
418
|
|||||||||||
Investment
securities - taxable
|
(55
|
)
|
356
|
301
|
440
|
706
|
1,146
|
||||||||||||
Investment
securities - non-taxable
|
(136
|
)
|
19
|
(117
|
)
|
(161
|
)
|
57
|
(104
|
)
|
|||||||||
Mortgage
loans held for sale
|
18
|
(9
|
)
|
9
|
(18
|
)
|
(6
|
)
|
(24
|
)
|
|||||||||
Assets
held in trading accounts
|
24
|
(1
|
)
|
23
|
63
|
5
|
68
|
||||||||||||
Loans
|
1,851
|
2,416
|
4,267
|
5,722
|
4,581
|
10,303
|
|||||||||||||
Total
|
1,677
|
3,013
|
4,690
|
5,766
|
6,231
|
11,997
|
|||||||||||||
Interest
expense
|
|||||||||||||||||||
Interest
bearing transaction and
savings
accounts
|
19
|
727
|
746
|
255
|
1,756
|
2,011
|
|||||||||||||
Time
deposits
|
313
|
2,163
|
2,476
|
803
|
4,133
|
4,936
|
|||||||||||||
Federal
funds purchased
and
securities sold under
agreements
to repurchase
|
2
|
511
|
513
|
87
|
1,245
|
1,332
|
|||||||||||||
Other
borrowed funds
|
|||||||||||||||||||
Short-term
debt
|
455
|
97
|
552
|
407
|
249
|
656
|
|||||||||||||
Long-term
debt
|
(288
|
)
|
(47
|
)
|
(335
|
)
|
(720
|
)
|
(325
|
)
|
(1,045
|
)
|
|||||||
Total
|
501
|
3,451
|
3,952
|
832
|
7,058
|
7,890
|
|||||||||||||
Increase
(decrease) in net
interest
income
|
$
|
1,176
|
$
|
(438
|
)
|
$
|
738
|
$
|
4,934
|
$
|
(827
|
)
|
$
|
4,107
|
Three
Months
Ended
Sept. 30,
|
2005
Change
from
|
Nine
Months Ended
Sept. 30, |
2005
Change
from
|
||||||||||||||||||||||
(In
thousands)
|
2005
|
|
2004
|
2004
|
2005
|
|
2004
|
2004
|
|||||||||||||||||
Trust
income
|
$
|
1,430
|
$
|
1,388
|
$
|
42
|
3.02
|
%
|
$
|
4,164
|
$
|
4,021
|
$
|
143
|
3.56
|
%
|
|||||||||
Service
charges on deposit accounts
|
4,154
|
3,928
|
226
|
5.75
|
11,721
|
10,922
|
799
|
7.31
|
|||||||||||||||||
Other
service charges and fees
|
472
|
536
|
(64
|
)
|
(11.94
|
)
|
1,511
|
1,528
|
(17
|
)
|
(1.11
|
)
|
|||||||||||||
Income
on sale of mortgage loans,
net
of commissions
|
826
|
814
|
13
|
1.60
|
2,221
|
2,610
|
(389
|
)
|
(14.90
|
)
|
|||||||||||||||
Income
on investment banking,
net
of commissions
|
146
|
101
|
45
|
44.55
|
364
|
514
|
(150
|
)
|
(29.18
|
)
|
|||||||||||||||
Credit
card fees
|
2,619
|
2,544
|
75
|
2.95
|
7,543
|
7,371
|
172
|
2.33
|
|||||||||||||||||
Premiums
on sale of student loans
|
295
|
417
|
(122
|
)
|
(29.26
|
)
|
1,572
|
1,867
|
(295
|
)
|
(15.80
|
)
|
|||||||||||||
Bank
owned life insurance income
|
312
|
23
|
289
|
1125.65
|
551
|
50
|
501
|
1100.20
|
|||||||||||||||||
Other
income
|
486
|
633
|
(148
|
)
|
(23.38
|
)
|
2,163
|
1,868
|
295
|
15.79
|
|||||||||||||||
Gain
(loss) on sale of securities,
net
of taxes
|
--
|
--
|
--
|
(168
|
)
|
--
|
(168
|
)
|
(100.00
|
)
|
|||||||||||||||
|
|||||||||||||||||||||||||
Total
non-interest income
|
$
|
10,740
|
$
|
10,384
|
$
|
356
|
3.43
|
%
|
$
|
31,642
|
$
|
30,751
|
$
|
891
|
2.90
|
%
|
Three
Months
Ended
Sept. 30
|
2005
Change
from
|
Nine
Months
Ended
Sept. 30
|
2005
Change
from
|
||||||||||||||||||||||
(In
thousands)
|
2005
|
|
2004
|
2004
|
2005
|
|
2004
|
2004
|
|||||||||||||||||
Salaries
and employee benefits
|
$
|
12,703
|
$
|
12,091
|
$
|
612
|
5.06
|
%
|
$
|
38,231
|
$
|
36,176
|
$
|
2,055
|
5.68
|
%
|
|||||||||
Occupancy
expense, net
|
1,483
|
1,431
|
52
|
3.63
|
4,314
|
4,126
|
188
|
4.56
|
|||||||||||||||||
Furniture
and equipment expense
|
1,421
|
1,445
|
(24
|
)
|
(1.66
|
)
|
4,277
|
4,202
|
75
|
1.78
|
|||||||||||||||
Loss
on foreclosed assets
|
57
|
49
|
8
|
16.33
|
160
|
230
|
(70
|
)
|
(30.43
|
)
|
|||||||||||||||
Other
operating expenses
|
|||||||||||||||||||||||||
Professional
services
|
512
|
560
|
(48
|
)
|
(8.57
|
)
|
1,655
|
1,542
|
113
|
7.33
|
|||||||||||||||
Postage
|
555
|
572
|
(17
|
)
|
(2.97
|
)
|
1,693
|
1,710
|
(17
|
)
|
(0.99
|
)
|
|||||||||||||
Telephone
|
442
|
489
|
(47
|
)
|
(9.61
|
)
|
1,328
|
1,329
|
(1
|
)
|
(0.08
|
)
|
|||||||||||||
Credit
card expenses
|
741
|
591
|
150
|
25.38
|
2,003
|
1,774
|
229
|
12.91
|
|||||||||||||||||
Operating
supplies
|
399
|
339
|
60
|
17.70
|
1,190
|
1,137
|
53
|
4.66
|
|||||||||||||||||
FDIC
insurance
|
72
|
76
|
(4
|
)
|
(5.26
|
)
|
214
|
216
|
(2
|
)
|
(0.93
|
)
|
|||||||||||||
Amortization
of intangibles
|
207
|
203
|
4
|
1.97
|
622
|
579
|
43
|
7.43
|
|||||||||||||||||
Other
expense
|
2,634
|
2,714
|
(80
|
)
|
(2.95
|
)
|
7,921
|
7,728
|
193
|
2.50
|
|||||||||||||||
Total
non-interest expense
|
$
|
21,226
|
$
|
20,560
|
$
|
666
|
3.24
|
%
|
$
|
63,608
|
$
|
60,749
|
$
|
2,859
|
4.71
|
%
|
September
30,
|
|
December
31,
|
|
||||
(In
thousands)
|
|
2005
|
|
2004
|
|||
Consumer
|
|||||||
Credit
cards
|
$
|
138,077
|
$
|
155,326
|
|||
Student
loans
|
89,759
|
83,283
|
|||||
Other
consumer
|
136,626
|
128,552
|
|||||
Real
Estate
|
|||||||
Construction
|
227,063
|
169,001
|
|||||
Single
family residential
|
338,458
|
318,488
|
|||||
Other
commercial
|
462,978
|
481,728
|
|||||
Commercial
|
|||||||
Commercial
|
177,682
|
158,613
|
|||||
Agricultural
|
105,107
|
62,340
|
|||||
Financial
institutions
|
21,219
|
1,079
|
|||||
Other
|
12,402
|
12,966
|
|||||
Total
loans before allowance for loan losses
|
$
|
1,709,371
|
$
|
1,571,376
|
Table
8: Non-performing Assets
|
|||||||
September
30,
|
|
December
31,
|
|
||||
(In
thousands)
|
|
2005
|
|
2004
|
|||
Nonaccrual
loans
|
$
|
8,288
|
$
|
10,918
|
|||
Loans
past due 90 days or more (principal or interest
payments)
|
1,181
|
1,085
|
|||||
Total
non-performing loans
|
9,469
|
12,003
|
|||||
Other
non-performing assets
|
|||||||
Foreclosed
assets held for sale
|
2,120
|
1,839
|
|||||
Other
non-performing assets
|
78
|
83
|
|||||
Total
other non-performing assets
|
2,198
|
1,922
|
|||||
Total
non-performing assets
|
$
|
11,667
|
$
|
13,925
|
|||
Allowance
for loan losses to non-performing
loans
|
288.63
|
%
|
220.84
|
%
|
|||
Non-performing
loans to total loans
|
0.55
|
%
|
0.76
|
%
|
|||
Non-performing
assets to total assets
|
0.45
|
%
|
0.58
|
%
|
|||
Non-performing
assets ratio*
|
0.68
|
%
|
0.89
|
%
|
Table
9: Allowance for Loan Losses
|
|||||||
(In
thousands)
|
2005
|
2004
|
|||||
Balance,
beginning of year
|
$
|
26,508
|
$
|
25,347
|
|||
Loans
charged off
|
|||||||
Credit
card
|
3,495
|
3,583
|
|||||
Other
consumer
|
941
|
1,577
|
|||||
Real
estate
|
786
|
845
|
|||||
Commercial
|
3,157
|
525
|
|||||
Total
loans charged off
|
8,379
|
6,530
|
|||||
Recoveries
of loans previously charged off
|
|||||||
Credit
card
|
640
|
514
|
|||||
Other
consumer
|
505
|
516
|
|||||
Real
estate
|
205
|
202
|
|||||
Commercial
|
1,955
|
350
|
|||||
Total
recoveries
|
3,305
|
1,582
|
|||||
Net
loans charged off
|
5,074
|
4,948
|
|||||
ABI
allowance for loan losses
|
--
|
1,108
|
|||||
Provision
for loan losses
|
5,895
|
6,095
|
|||||
Balance,
September 30
|
$
|
27,329
|
$
|
27,602
|
|||
Loans
charged off
|
|||||||
Credit
card
|
1,006
|
||||||
Other
consumer
|
567
|
||||||
Real
estate
|
418
|
||||||
Commercial
|
1,884
|
||||||
Total
loans charged off
|
3,875
|
||||||
Recoveries
of loans previously charged off
|
|||||||
Credit
card
|
206
|
||||||
Other
consumer
|
167
|
||||||
Real
estate
|
75
|
||||||
Commercial
|
401
|
||||||
Total
recoveries
|
849
|
||||||
Net
loans charged off
|
3,026
|
||||||
Provision
for loan losses
|
1,932
|
||||||
Balance,
end of year
|
$
|
26,508
|
Table
10: Allocation
of Allowance for Loan Losses
|
|||||||||||||
Sept.
30, 2005
|
December
31, 2004
|
||||||||||||
Allowance
|
|
%
of
|
|
Allowance
|
|
%
of
|
|
||||||
(In
thousands)
|
|
Amount
|
|
loans*
|
|
Amount
|
|
loans*
|
|||||
Credit
cards
|
$
|
3,991
|
8.1%
|
$
|
4,217
|
9.9%
|
|
||||||
Other
consumer
|
1,152
|
13.2%
|
|
1,097
|
13.5%
|
|
|||||||
Real
estate
|
9,480
|
60.2%
|
|
9,357
|
61.7%
|
|
|||||||
Commercial
|
6,316
|
17.8%
|
|
4,820
|
14.1%
|
|
|||||||
Other
|
--
|
0.7%
|
|
--
|
0.8%
|
|
|||||||
Unallocated
|
6,390
|
7,017
|
|||||||||||
Total
|
$
|
27,329
|
100.0%
|
|
$
|
26,508
|
100.0%
|
|
|||||
*Percentage
of loans in each category to total loans.
|
Table
11: Risk-Based
Capital
|
|||||||
September
30,
|
|
December
31
|
|
||||
(In
thousands)
|
|
2005
|
|
2004
|
|||
Tier
1 capital
|
|||||||
Stockholders’
equity
|
$
|
241,171
|
$
|
238,222
|
|||
Trust
preferred securities
|
30,000
|
30,000
|
|||||
Intangible
assets
|
(65,271
|
)
|
(66,283
|
)
|
|||
Unrealized
loss on available-for-sale securities
|
3,448
|
1,124
|
|||||
Other
|
--
|
(738
|
)
|
||||
Total
Tier 1 capital
|
209,348
|
202,325
|
|||||
Tier
2 capital
|
|||||||
Qualifying
unrealized gain on available-for-sale equity
securities
|
357
|
392
|
|||||
Qualifying
allowance for loan losses
|
21,952
|
19,961
|
|||||
Total
Tier 2 capital
|
22,309
|
20,353
|
|||||
Total
risk-based capital
|
$
|
231,657
|
$
|
222,678
|
|||
Risk
weighted assets
|
$
|
1,750,783
|
$
|
1,590,373
|
|||
Assets
for leverage ratio
|
$
|
2,473,854
|
$
|
2,391,149
|
|||
Ratios
at end of period
|
|||||||
Leverage
ratio
|
8.46
|
%
|
8.46
|
%
|
|||
Tier
1 capital
|
11.96
|
%
|
12.72
|
%
|
|||
Total
risk-based capital
|
13.23
|
%
|
14.00
|
%
|
|||
Minimum
guidelines
|
|||||||
Leverage
ratio
|
4.00
|
%
|
4.00
|
%
|
|||
Tier
1 capital
|
4.00
|
%
|
4.00
|
%
|
|||
Total
risk-based capital
|
8.00
|
%
|
8.00
|
%
|
Table
A:
|
Interest
Rate Sensitivity
|
Interest
Rate Sensitivity Period
|
|||||||||||||||||||||||||
0-30
|
|
31-90
|
|
91-180
|
|
181-365
|
|
1-2
|
|
2-5
|
|
Over
5
|
|
|
|
||||||||||
(In
thousands, except ratios)
|
|
Days
|
|
Days
|
|
Days
|
|
Days
|
|
Years
|
|
Years
|
|
Years
|
|
Total
|
|||||||||
Earning
assets
|
|||||||||||||||||||||||||
Short-term
investments
|
$
|
65,031
|
$
|
--
|
$
|
--
|
$
|
--
|
$
|
--
|
$
|
--
|
$
|
--
|
$
|
65,031
|
|||||||||
Assets
held in trading
accounts
|
4,730
|
--
|
--
|
--
|
--
|
--
|
--
|
4,730
|
|||||||||||||||||
Investment
securities
|
5,407
|
16,291
|
10,299
|
40,255
|
119,266
|
186,805
|
161,647
|
539,970
|
|||||||||||||||||
Mortgage
loans held for sale
|
9,417
|
--
|
--
|
--
|
--
|
--
|
--
|
9,417
|
|||||||||||||||||
Loans
|
599,423
|
124,852
|
176,637
|
313,173
|
243,930
|
230,259
|
21,097
|
1,709,371
|
|||||||||||||||||
Total
earning assets
|
684,008
|
141,143
|
186,936
|
353,428
|
363,196
|
417,064
|
182,744
|
2,328,519
|
|||||||||||||||||
Interest
bearing liabilities
|
|||||||||||||||||||||||||
Interest
bearing transaction
and
savings deposits
|
340,514
|
--
|
--
|
--
|
83,678
|
251,034
|
83,680
|
758,906
|
|||||||||||||||||
Time
deposits
|
104,347
|
138,601
|
189,856
|
298,844
|
133,384
|
118,283
|
--
|
983,315
|
|||||||||||||||||
Short-term
debt
|
185,067
|
--
|
--
|
--
|
--
|
--
|
--
|
185,067
|
|||||||||||||||||
Long-term
debt
|
11,255
|
2,073
|
2,075
|
6,616
|
13,950
|
13,890
|
37,137
|
86,996
|
|||||||||||||||||
Total
interest bearing
liabilities
|
641,183
|
140,674
|
191,931
|
305,460
|
231,012
|
383,207
|
120,817
|
2,014,284
|
|||||||||||||||||
Interest
rate sensitivity Gap
|
$
|
42,825
|
$
|
469
|
$
|
(4,995
|
)
|
$
|
47,968
|
$
|
132,184
|
$
|
33,857
|
$
|
61,927
|
$
|
314,235
|
||||||||
Cumulative
interest rate
sensitivity
Gap
|
$
|
42,825
|
$
|
43,294
|
$
|
38,299
|
$
|
86,267
|
$
|
218,451
|
$
|
252,308
|
$
|
314,235
|
|||||||||||
Cumulative
rate sensitive asset
|
|||||||||||||||||||||||||
to
rate sensitive liabilities
|
106.7
|
%
|
105.5
|
%
|
103.9
|
%
|
106.7
|
%
|
114.5
|
%
|
113.3
|
%
|
115.6
|
%
|
|||||||||||
Cumulative
Gap as a % of
|
|||||||||||||||||||||||||
earning
assets
|
1.8
|
%
|
1.9
|
%
|
1.6
|
%
|
3.7
|
%
|
9.4
|
%
|
10.8
|
%
|
13.5
|
%
|
Identity(1)
|
Date
of Sale
|
Number
of
Shares
|
Price(2)
|
Type
of Transaction
|
|
|
|
|
|
13
Officers
|
July,
2005
|
6,700
|
10.56
|
Incentive
Stock Option
|
3
Officers
|
July,
2005
|
32,880
|
12.13
- 12.83
|
Incentive
Stock Option
|
2
Officers
|
July,
2005
|
4,300
|
16.00
- 16.88
|
Incentive
Stock Option
|
2
Officers
|
July,
2005
|
3,600
|
21.22
- 23.78
|
Incentive
Stock Option
|
1
Officer
|
August,
2005
|
1,400
|
15.65
|
Incentive
Stock Option
|
2
Officers
|
September,
2005
|
2,100
|
12.22
- 12.83
|
Incentive
Stock Option
|
1.
|
The
transactions are grouped to show sales of stock based upon exercises
of
rights by officers of the registrant or its subsidiaries under the
stock
plans, which occurred at the same price during a calendar
month.
|
2.
|
The
per share price paid for incentive stock options represents the fair
market value of the stock as determined under the terms of the Plan
on the
date the incentive stock option was granted to the officer.
|
|
|
Total
Number
|
Maximum
|
||||||||||
|
|
|
Number
of
|
Number
of
|
|||||||||
|
Total
Number
|
Average
|
Purchased
as
|
Shares
that May
|
|||||||||
|
of
Shares
|
Price
Paid
|
Part
of Publicly
|
Yet
be Purchased
|
|||||||||
Period
|
Purchased
|
Per
Share
|
Announced
Plans
|
Under
the Plans
|
|||||||||
July
1 - July 31
|
11,000
|
26.88
|
11,000
|
607,360
|
|||||||||
August
1 - August 31
|
19,465
|
27.39
|
19,465
|
587,895
|
|||||||||
September
1 - September 30
|
14,370
|
27.80
|
14,370
|
573,525
|
|||||||||
Total
|
44,835
|
$
|
27.39
|
44,835
|
Exhibit
No.
|
Description
|
|
3.1
|
Restated
Articles of Incorporation of Simmons First National Corporation
(incorporated by reference to Exhibit 4 to Simmons First National
Corporation’s Quarterly Report on Form 10-Q for the Quarter ended March
31, 2004 (File No. 6253)).
|
|
3.2
|
Amended
By-Laws of Simmons First National Corporation (incorporated by
reference
to Exhibit 3.2 to Simmons First National Corporation’s Quarterly Report on
Form 10-Q for the Quarter ended March 31, 2005 (File No.
6253)).
|
|
10.1
|
Amended
and Restated Trust Agreement, dated as of December 16, 2003, among
the
Company, Deutsche Bank Trust Company Americas, Deutsche Bank Trust
Company
Delaware and each of J. Thomas May, Barry L. Crow and Robert A.
Fehlman as
administrative trustees, with respect to Simmons First Capital
Trust II
(incorporated by reference to Exhibit 10.1 to Simmons First National
Corporation’s Annual Report on Form 10-K for the Year ended December 31,
2003 (File No. 6253)).
|
|
10.2
|
Guarantee
Agreement, dated as of December 16, 2003, between the Company and
Deutsche
Bank Trust Company Americas, as guarantee trustee, with respect
to Simmons
First Capital Trust II (incorporated by reference to Exhibit 10.2
to
Simmons First National Corporation’s Annual Report on Form 10-K for the
Year ended December 31, 2003 (File No. 6253)).
|
|
10.3
|
Junior
Subordinated Indenture, dated as of December 16, 2003, among the
Company
and Deutsche Bank Trust Company Americas, as trustee, with respect
to the
junior subordinated note held by Simmons First Capital Trust II
(incorporated by reference to Exhibit 10.3 to Simmons First National
Corporation’s Annual Report on Form 10-K for the Year ended December 31,
2003 (File No. 6253)).
|
|
10.4
|
Amended
and Restated Trust Agreement, dated as of December 16, 2003, among
the
Company, Deutsche Bank Trust Company Americas, Deutsche Bank Trust
Company
Delaware and each of J. Thomas May, Barry L. Crow and Robert A.
Fehlman as
administrative trustees, with respect to Simmons First Capital
Trust III
(incorporated by reference to Exhibit 10.4 to Simmons First National
Corporation’s Annual Report on Form 10-K for the Year ended December 31,
2003 (File No. 6253)).
|
|
10.5
|
Guarantee
Agreement, dated as of December 16, 2003, between the Company and
Deutsche
Bank Trust Company Americas, as guarantee trustee, with respect
to Simmons
First Capital Trust III (incorporated by reference to Exhibit 10.5
to
Simmons First National Corporation’s Annual Report on Form 10-K for the
Year ended December 31, 2003 (File No. 6253)).
|
10.6
|
Junior
Subordinated Indenture, dated as of December 16, 2003, among the
Company
and Deutsche Bank Trust Company Americas, as trustee, with respect
to the
junior subordinated note held by Simmons First Capital Trust III
(incorporated by reference to Exhibit 10.6 to Simmons First National
Corporation’s Annual Report on Form 10-K for the Year ended
December 31, 2003 (File No. 6253)).
|
|
10.7
|
Amended
and Restated Trust Agreement, dated as of December 16, 2003, among
the
Company, Deutsche Bank Trust Company Americas, Deutsche Bank Trust
Company
Delaware and each of J. Thomas May, Barry L. Crow and Robert A.
Fehlman as
administrative trustees, with respect to Simmons First Capital
Trust IV
(incorporated by reference to Exhibit 10.7 to Simmons First National
Corporation’s Annual Report on Form 10-K for the Year ended December 31,
2003 (File No. 6253)).
|
|
10.8
|
Guarantee
Agreement, dated as of December 16, 2003, between the Company and
Deutsche
Bank Trust Company Americas, as guarantee trustee, with respect
to Simmons
First Capital Trust IV (incorporated by reference to Exhibit 10.8
to
Simmons First National Corporation’s Annual Report on Form 10-K for the
Year ended December 31, 2003 (File No. 6253)).
|
|
10.9
|
Junior
Subordinated Indenture, dated as of December 16, 2003, among the
Company
and Deutsche Bank Trust Company Americas, as trustee, with respect
to the
junior subordinated note held by Simmons First Capital Trust IV
(incorporated by reference to Exhibit 10.9 to Simmons First National
Corporation’s Annual Report on Form 10-K for the Year ended
December 31, 2003 (File No. 6253)).
|
|
14
|
Code
of Ethics, dated December 2003, for CEO, CFO, controller and other
accounting officers (incorporated by reference to Exhibit 14 to
Simmons
First National Corporation’s Annual Report on Form 10-K for the Year ended
December 31, 2003 (File No. 6253)).
|
|
31.1
|
Rule
13a-14(a)/15d-14(a) Certification - J. Thomas May, Chairman, President
and
Chief Executive Officer.*
|
|
|
||
31.2
|
Rule
13a-14(a)/15d-14(a) Certification - Robert A. Fehlman, Chief Financial
Officer.*
|
|
32.1
|
Certification
Pursuant to 18 U.S.C. Sections 1350, as Adopted Pursuant to Section
906 of
the Sarbanes-Oxley Act of 2002 - J. Thomas May, Chairman, President
and
Chief Executive Officer.*
|
|
32.2
|
Certification
Pursuant to 18 U.S.C. Sections 1350, as Adopted Pursuant to Section
906 of
the Sarbanes-Oxley Act of 2002 - Robert A. Fehlman, Chief Financial
Officer.*
|
|
*
Filed herewith.
|
|
|
|
Date: November 3, 2005 | By: | /s/ J. Thomas May |
J. Thomas May |
||
Chairman,
President and
Chief
Executive Officer
|
|
|
|
Date: November 3, 2005 | By: | /s/ Robert A. Fehlman |
Robert A. Fehlman |
||
Senior
Vice President and
Chief
Financial Officer
|