Simmons First National Corp. (Finally) Just Says "No"

Last Oct. 30, Simmons First National Corp. announced in a press release that it had been approved for $40 million in taxpayer capital through the Treasury Department's Troubled Asset Relief Program. (A later document filed with the Securities and Exchange Commission said that the Treasury had "amended its approval" and was willing to provide $59.7 million.)

The company is based in Pine Bluff, Ark., and operates eight Simmons First national Bank branches in its home state.

At the time of the announcement last fall, Chairman J. Thomas May, said that "While our Company is very well capitalized, the cost of capital under the program is favorable given the current market, and it provides us additional capital for potential acquisition opportunities within our targeted markets."

As the months ticked by, Simmons First sought extensions, in essence telling the government that it didn't want the money yet.

This week, Simmons First National said it decided that the TARP funding wasn't necessary, and that taking the money wouldn't be in the best interests of shareholders.

In the press release that accompanied a new SEC filing, May said, "The delay in funding has certainly worked in our favor by allowing us to monitor the economy. As we stated previously, our purpose for applying was simply an issue of insurance, since you can never have too much capital during a period of turbulence."

He added: "After careful consideration and analysis, Simmons First believes there has been considerable improvement in the economic indicators since October. The Arkansas economy is doing well relative to many other geographic regions of our country, and Simmons First continues to have strong asset quality, liquidity and capital.''