Exhibit 99.1

	FOR IMMEDIATE RELEASE

900 S. Shackleford, Suite 401	FOR FURTHER INFORMATION CONTACT:
Little Rock, AR 72211	Matt Machen \| CEO
	Sherri Billings \| CFO
	501.975.6033

CORRECTING AND REPLACING

Bear State Financial, Inc. Announces Full Year 2017 Earnings

Little Rock, AR – February 15, 2018 – Bear State Financial, Inc. has issued the following corrected press release to replace the one disseminated on January 18, 2018. The corrected release reads as follows:

Bear State Financial, Inc. Announces Full Year 2017 Earnings

FINANCIAL HIGHLIGHTS:

●

Full year 2017 GAAP net income was $21.3 million or $0.56 per diluted common share, compared to GAAP net income of $17.5 million or $0.46 per diluted common share for the full year 2016 representing a 22% increase in both GAAP net income and GAAP net income per diluted common share.

●

Full year 2017 core earnings were $24.6 million or $0.65 per diluted common share, compared to core earnings of $16.9 million or $0.45 per diluted common share for the full year 2016 representing a 46% increase in core earnings and a 44% increase in core earnings per diluted common share.

●

Fourth quarter 2017 GAAP net income was $4.6 million, a 5% decrease from $4.8 million for the fourth quarter of 2016. Diluted earnings per common share for the fourth quarter of 2017 was $0.12, an 8% decrease from $0.13 for the fourth quarter of 2016.

●

Fourth quarter 2017 core earnings were $6.6 million, a 36% increase from $4.9 million for the fourth quarter of 2016. Diluted core earnings per common share for the fourth quarter of 2017 was $0.17, a 31% increase from $0.13 for the fourth quarter of 2016.

●

The Company’s efficiency ratio improved to 55% in the fourth quarter of 2017 compared to 63% in the fourth quarter of 2016. Further, the Company’s core efficiency ratio improved to 54% in the fourth quarter of 2017 compared to 63% in the fourth quarter of 2016.

●

Book value per common share was $6.70 at December 31, 2017, an 8% increase from $6.21 at December 31, 2016. Tangible book value per common share was $5.39 at December 31, 2017, an 11% increase from $4.86 at December 31, 2016.

Bear State Financial, Inc. (the “Company,” NASDAQ: BSF), announced earnings of $4.6 million and earnings per diluted common share of $0.12 in the fourth quarter of 2017, compared to earnings of $4.8 million or $0.13 per diluted common share in the fourth quarter of 2016. Core earnings for the fourth quarter of 2017 were $6.6 million or $0.17 per diluted common share compared to core earnings of $4.9 million or $0.13 per diluted common share in the fourth quarter of 2016. In the fourth quarter of 2017, the Company was required to revalue its deferred tax assets and deferred tax liabilities as a result of the “Tax Cuts and Jobs Act” signed into law on December 22, 2017. The impact was a one-time, non-cash charge to income tax provision on the income statement of approximately $2.5 million.

For the full year of 2017, net income was $21.3 million and earnings per diluted common share was $0.56 compared to net income of $17.5 million or $0.46 per diluted common share for the full year of 2016. Core earnings for the full year of 2017 were $24.6 million or $0.65 per diluted common share compared to core earnings of $16.9 million or $0.45 per diluted common share for the full year of 2016.

On August 22, 2017, the Company and Bear State Bank entered into an Agreement and Plan of Reorganization with Arvest Bank, an Arkansas banking corporation (“Arvest”), and Arvest Acquisition Sub, Inc., an Arkansas corporation and a wholly-owned subsidiary of Arvest (“Acquisition Sub”), pursuant to which Arvest will acquire the Company and Bear State Bank (the “Merger”).

Pursuant to the Agreement, each share of the Company’s common stock issued and outstanding as of the effective time of the Merger will be converted into a right to receive $10.28 per share, payable in cash. The Merger is expected to close in the first quarter of 2018 and is pending federal regulatory approval. At a Special Meeting of Shareholders of the Company held November 15, 2017, the proposal to adopt the Agreement and to approve the Merger was approved by shareholders of the Company.

FINANCIAL CONDITION

Total assets were $2.16 billion at December 31, 2017, a 5% increase compared to $2.05 billion at December 31, 2016. The increase in total assets was primarily due to increases in investment securities and loans. Total loans were $1.67 billion at December 31, 2017, an increase of $117.0 million, or 8%, compared to December 31, 2016 and investment securities were $239.6 million at December 31, 2017, an increase of $24.1 million, or 11%, compared to December 31, 2016. Total deposits were $1.50 billion at December 31, 2017, a 9% decrease compared to $1.64 billion at December 31, 2016.

Total stockholders’ equity was $253.2 million at December 31, 2017, an 8% increase from $233.4 million at December 31, 2016. Tangible common stockholders’ equity was $203.6 million at December 31, 2017, an 11% increase from $182.9 million at December 31, 2016. Book value per common share was $6.70 at December 31, 2017, an 8% increase from $6.21 at December 31, 2016. Tangible book value per common share was $5.39 at December 31, 2017, an 11% increase from $4.86 at December 31, 2016. The Company’s ratio of total stockholders’ equity to total assets increased to 11.72% at December 31, 2017, compared to 11.37% at December 31, 2016. The calculation of the Company’s tangible book value per common share and tangible common stockholders’ equity and the reconciliation of such non-GAAP financial measures to the most comparable GAAP measures are included in the schedules accompanying this release.

RESULTS OF OPERATIONS

The Company recognized fourth quarter 2017 net income of $4.6 million or $0.12 per diluted common share compared to net income of $4.8 million or $0.13 per diluted common share in the fourth quarter of 2016, resulting in a return on average assets of 0.82% in the fourth quarter of 2017, compared to 0.95% in the fourth quarter of 2016. Calculation of net income in accordance with GAAP includes what the Company considers “non-core” items, which are items that we do not consider indicative of our core operating performance and which are not necessarily comparable from year to year. The Company reports core earnings, which is a non-GAAP financial measure that the Company defines as GAAP net income less non-core items. The reconciliation of GAAP net income to core earnings together with related financial measures and ratios is included in the schedules accompanying this release.

Fourth quarter 2017 core earnings totaled $6.6 million or $0.17 per diluted common share, compared to core earnings of $4.9 million or $0.13 per diluted common share in the fourth quarter of 2016. For the fourth quarter of 2017 and 2016, respectively, the core return on average assets measured 1.18% and 0.95%, core return on average equity measured 10.40% and 8.23% and core return on average tangible equity measured 12.94% and 10.50%. Non-core items during the fourth quarter of 2017 included transaction-related expenses incurred in connection with the pending transaction with Arvest totaling $677,000, a claim on bank owned life insurance of $909,000 and a deferred tax asset adjustment of $2.5 million. The effect of non-core items, net of taxes, decreased GAAP net income by approximately $2.0 million for the fourth quarter of 2017.

Net interest income for the fourth quarter of 2017 was $18.9 million compared to $17.1 million for the same period in 2016. Net interest income for the year ended December 31, 2017 was $75.5 million, compared to $67.5 million for the same period in 2016. Interest income for the fourth quarter of 2017 was $22.0 million compared to $19.2 million for the same period in 2016. Interest income for the year ended December 31, 2017 was $86.3 million compared to $75.4 million for the same period in 2016. The increases in interest income for the three and twelve months ended December 31, 2017 compared to the same periods in 2016 were primarily related to increases in the average balances of and the yields earned on loans receivable and investment securities. Interest expense for the fourth quarter of 2017 was $3.1 million compared to $2.1 million for the same period in 2016. Interest expense for the year ended December 31, 2017 was $10.7 million compared to $7.9 million for the same period in 2016. The increases in interest expense for the three and twelve months ended December 31, 2017 compared to the same periods in 2016 were primarily due to increases in the average balance of borrowings and increases in the average rate paid on deposits.

Net interest margin measured 3.67% for the fourth quarter of 2017, compared to 3.75% for the same period in 2016. Net interest margin for the year ended December 31, 2017 was 3.79%, compared to 3.85% for the same period in 2016. The average yield on interest-earning assets for the fourth quarter of 2017 was 4.27% compared to 4.21% for the same period in 2016 and was 4.33% for the year ended December 31, 2017 compared to 4.30% for the same period in 2016. The average cost of interest-bearing liabilities increased to 0.70% for the fourth quarter of 2017, compared to 0.54% for the same period in 2016. The average cost of total interest-bearing liabilities for the year ended December 31, 2017 was 0.63%, compared to 0.53% for the same period in 2016.

Noninterest income is generated primarily through deposit account fee income, profit on sale of mortgage loans, and earnings on life insurance policies. Total noninterest income for the three months ended December 31, 2017 increased to $4.7 million from $4.4 million for the same period in 2016, a 6% increase. Total noninterest income of $17.7 million for the year ended December 31, 2017 increased from $16.7 million for the same period in 2016, a 6% increase. The increase in the three and twelve month comparison periods was primarily due to increases in deposit fee income and earnings on bank owned life insurance, partially offset by a decrease in gain on sales of loans due to a decrease in the number of loans sold during the periods.

Total noninterest expense decreased $667,000, or 5%, for the fourth quarter of 2017 compared to the fourth quarter of 2016. Total noninterest expense decreased $2.9 million or 5% during the year ended December 31, 2017 compared to the same period in 2016. The decrease in total noninterest expense for the three and twelve month comparative periods was primarily related to the Company’s efforts to improve its operational efficiency as well as a decrease in the number of branches.

Income tax provision increased by $3.4 million, or 153%, for the fourth quarter of 2017 compared to the fourth quarter of 2016, primarily due to a $2.5 million revaluation of deferred tax assets and liabilities to account for the future impact of lower corporate tax rates as a result of the “Tax Cuts and Jobs Act” signed into law on December 22, 2017. Income tax provision for the year ended December 31, 2017 increased by $6.1 million or 89% compared to 2016, primarily due to the tax rate revaluation of the deferred tax asset as well as an increase in taxable income in 2017 partially offset by the recording of a valuation allowance reversal of $897,000 on deferred tax assets in the second quarter of 2016. The Company’s effective tax rate for the quarter ended December 31, 2017 (excluding the tax rate revaluation of the deferred tax asset) was 32.50% compared to 31.20% for the quarter ended December 31, 2016. The Company’s effective tax rate for the year ended December 31, 2017 (excluding the tax rate revaluation of the deferred tax asset) was 31.86% compared to 31.90% for the year ended December 31, 2016 (excluding the valuation allowance reversal).

ASSET QUALITY

The ratio of nonperforming assets to total assets decreased to 0.87% at December 31, 2017, compared to 0.94% at December 31, 2016. The allowance for loan losses represented 1.14% of total loans at December 31, 2017 compared to 1.00% at December 31, 2016. The ratio of the allowance for loan losses to nonperforming loans was 111% at December 31, 2017, compared to 90% at December 31, 2016. Annualized net charge-offs as a percentage of average loans for the quarter ended December 31, 2017 was 0.04% compared to 0.10% for the quarter ended December 31, 2016. Provision for loan losses decreased from $851,000 for the fourth quarter of 2016 to $464,000 for the fourth quarter of 2017. Provision for loan losses for the year ended December 31, 2017 increased to $4.5 million from $2.5 million for 2016. The increase in the provision for the year was primarily attributable to loan originations and migration of acquired loans from the purchased loan portfolio to the originated loan portfolio.

About Bear State Financial, Inc.

Bear State Financial, Inc. is the parent company for Bear State Bank. Bear State Financial, Inc. common stock is traded on the NASDAQ Global Market under the symbol BSF. For more information on Bear State Financial, Inc. please visit www.bearstatefinancial.com. Its principal subsidiary, Bear State Bank, is a community oriented financial institution providing a broad line of financial products to individuals and business customers. Bear State Bank operates 42 branches, three personalized technology centers equipped with interactive teller machines and three loan production offices throughout Arkansas, Southwest Missouri and Southeast Oklahoma.

Non-GAAP Financial Measures

This release contains certain non-GAAP financial measures in addition to results presented in accordance with accounting principles generally accepted in the United States (“GAAP”). These non-GAAP measures provide supplemental perspectives on operating results, performance trends, and financial condition. They are not a substitute for GAAP measures and they should be read and used in conjunction with the Company’s GAAP financial information. In all cases, it should be understood that non-GAAP per share measures do not depict amounts that accrue directly to the benefit of shareholders. The Company utilizes the non-GAAP measure of core earnings, which management believes is useful in evaluating operating trends from period to period, including components of core revenue and core expense. Core earnings and its components exclude amounts that the Company views as unrelated to its normalized operations. Management and the Board of Directors also utilize core earnings or components of core earnings and related ratios in the preparation of the Company’s operating budgets, monthly financial performance reporting and investor presentations of Company performance and in the calculation of annual performance-based incentives for certain members of management. In 2016, the Company modified its definition of core earnings to clarify that a material amount of net gains, losses or impairments to the Company’s real estate owned (“REO”) portfolio during an applicable reporting period will be considered a non-core item and will thus be excluded from core earnings. Immaterial net gains, losses and impairments to the REO portfolio, however, will not be considered a non-core item and will not be excluded from core earnings. The Company believes that while activity within the REO portfolio is a recurring aspect of its core business, material changes to the portfolio are not indicative of the Company’s normalized banking operations.

The Company also reports certain non-GAAP equity measures (including tangible stockholders’ equity, tangible book value per common share and related ratios) that exclude intangible assets from their calculation. Management believes that these non-GAAP tangible measures provide additional useful information about the capital strength of the Company to the investment community, as these measures are widely used by industry analysts for banks and bank holding companies with prior merger and acquisition activity. A reconciliation of non-GAAP financial measures to GAAP measures is included in the accompanying financial tables.

Forward-Looking Statements

This press release contains statements about future events that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “plan,” “intend,” “anticipate,” “expect,” or similar terms or variations of those terms, or the negative of those terms. These forward-looking statements include, without limitation, statements relating to the terms and closing of the proposed transaction between the Company and Arvest. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those risks previously disclosed in the Company’s filings with the SEC; the Company’s and Arvest’s ability to consummate the Merger or satisfy the conditions to the completion of the Merger, the failure of the proposed Merger to close for any other reason; occurrence of any event, change or other circumstances that could give rise to the termination of the Agreement; the effect of the announcement of the Merger on customer relationships and operating results (including, without limitation, difficulties in maintaining relationships with employees or customers); the diversion of management time on transaction related issues; general economic conditions, changes in interest rates, regulatory considerations, competition, technological developments, retention and recruitment of qualified personnel, and market acceptance of Bear State Bank’s pricing, products and services, and with respect to the loans extended by Bear State Bank and real estate owned, market prices of the property securing loans and the costs of collection and sales. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company does not undertake and specifically declines any obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

BEAR STATE FINANCIAL, INC.
SELECTED CONSOLIDATED FINANCIAL DATA – UNAUDITED
(In thousands)


	December			September			June			March			December
	2017			2017			2017			2017			2016

Balance sheet data, at quarter end:
Commercial real estate - mortgage loans	$	646,272		$	661,155		$	632,149		$	604,888		$	587,633
Consumer real estate - mortgage loans		391,225			393,082			396,550			397,898			389,107
Farmland		96,786			99,189			97,881			98,672			94,018
Construction and land development		157,453			147,071			131,046			129,078			125,785
Commercial and industrial loans		345,087			373,464			364,194			370,961			323,096
Consumer and other		36,036			36,859			36,624			36,100			36,265
Total loans		1,672,859			1,710,820			1,658,444			1,637,597			1,555,904
Loans held for sale		3,815			7,258			7,470			4,735			8,954
Allowance for loan losses		(18,992	)		(18,682	)		(17,083	)		(16,821	)		(15,584	)
Investment securities and other investments		266,658			273,073			275,805			268,981			229,212
Goodwill		40,196			40,196			40,196			40,196			40,196
Core deposit intangible, net		9,332			9,587			9,842			10,098			10,353
Total assets		2,160,963			2,241,459			2,239,090			2,174,041			2,053,175
Noninterest-bearing deposits		217,582			232,004			255,806			221,891			223,038
Total deposits		1,499,444			1,589,136			1,703,246			1,669,066			1,644,080
Short term borrowings		13,445			21,629			17,856			17,831			19,114
FHLB advances		374,661			359,791			254,928			225,072			129,992
Other borrowings		12,150			12,525			11,600			13,506			22,012
Total stockholders' equity		253,157			249,209			244,533			237,912			233,427

Balance sheet data, quarterly averages:
Total loans	$	1,695,811		$	1,706,952		$	1,659,830		$	1,607,892		$	1,536,703
Investment securities		269,441			276,578			271,402			248,355			217,522
Total earning assets		2,039,624			2,049,894			1,990,562			1,886,813			1,810,802
Goodwill		40,196			40,196			40,196			40,196			40,196
Core deposit intangible, net		9,497			9,754			10,008			10,265			10,519
Total assets		2,233,948			2,246,331			2,190,240			2,092,022			2,019,792
Noninterest-bearing deposits		222,770			225,383			220,511			213,467			229,296
Interest-bearing deposits		1,335,165			1,411,163			1,435,630			1,414,137			1,416,991
Total deposits		1,557,935			1,636,546			1,656,141			1,627,604			1,646,287
Short term borrowings		20,425			20,375			15,463			15,549			17,983
FHLB advances		381,553			321,631			258,658			190,965			94,336
Other borrowings		12,256			12,193			11,898			16,247			22,161
Total stockholders' equity		252,785			248,559			242,263			236,247			234,339

Statement of income data for the three months ended:
Interest income	$	21,972		$	22,094		$	21,153		$	21,048		$	19,212
Interest expense		3,079			2,958			2,496			2,214			2,105
Net interest income		18,893			19,136			18,657			18,834			17,107
Provision for loan losses		464			1,863			821			1,349			851
Net interest income after provision for loan losses		18,429			17,273			17,836			17,485			16,256
Noninterest income		4,678			4,191			4,694			4,176			4,394
Noninterest expense		12,958			14,260			12,795			14,444			13,625
Income before taxes		10,149			7,204			9,735			7,217			7,025
Income tax provision		5,544			2,072			3,078			2,300			2,192
Net income	$	4,605		$	5,132		$	6,657		$	4,917		$	4,833

BEAR STATE FINANCIAL, INC.
SELECTED CONSOLIDATED FINANCIAL DATA – UNAUDITED


	December			September			June			March			December
	2017			2017			2017			2017			2016

Common stock data:
Net income per share, diluted	$	0.12		$	0.14		$	0.18		$	0.13		$	0.13
Core earnings per share, diluted	$	0.17		$	0.16		$	0.17		$	0.15		$	0.13
Book value per share	$	6.70		$	6.61		$	6.48		$	6.31		$	6.21
Tangible book value per share	$	5.39		$	5.29		$	5.16		$	4.98		$	4.86
Diluted weighted average shares outstanding		37,982,761			37,921,016			37,883,264			37,880,022			37,833,124
End of period shares outstanding		37,767,613			37,729,837			37,713,171			37,689,939			37,618,597

Profitability and performance ratios:
Return on average assets		0.82	%		0.91	%		1.22	%		0.95	%		0.95	%
Core return on average assets		1.18	%		1.04	%		1.15	%		1.14	%		0.95	%
Return on average equity		7.23	%		8.19	%		11.02	%		8.44	%		8.18	%
Core return on average equity		10.40	%		9.38	%		10.36	%		10.06	%		8.23	%
Core return on average tangible equity		12.94	%		11.74	%		13.07	%		12.80	%		10.50	%
Net interest margin		3.67	%		3.70	%		3.76	%		4.05	%		3.75	%
Noninterest income to total revenue		19.85	%		17.97	%		20.10	%		18.15	%		20.44	%
Noninterest income to average assets		0.83	%		0.74	%		0.86	%		0.81	%		0.86	%
Noninterest expense to average assets		2.30	%		2.52	%		2.34	%		2.80	%		2.68	%
Efficiency ratio		54.97	%		61.13	%		54.79	%		62.77	%		63.37	%
Core efficiency ratio(1)		54.36	%		54.56	%		55.70	%		56.00	%		63.18	%
Average loans to average deposits		108.85	%		104.30	%		100.22	%		98.79	%		93.34	%
Securities to total assets		12.34	%		12.18	%		12.32	%		11.52	%		10.49	%

Asset quality ratios:
Allowance for loan losses to total loans		1.14	%		1.09	%		1.03	%		1.03	%		1.00	%
Allowance for loan losses to non-performing loans		110.67	%		104.56	%		104.00	%		94.20	%		89.69	%
Nonperforming loans to total loans		1.03	%		1.04	%		0.99	%		1.09	%		1.12	%
Nonperforming assets to total assets		0.87	%		0.85	%		0.78	%		0.87	%		0.94	%
Annualized net charge offs to average total loans		0.04	%		0.06	%		0.14	%		0.03	%		0.10	%

Regulatory capital ratios:
Tier 1 leverage ratio		9.41	%		9.16	%		9.18	%		9.27	%		9.47	%
Common equity tier 1 capital ratio		11.34	%		10.84	%		10.85	%		10.58	%		11.04	%
Tier 1 capital to risk weighted assets		11.34	%		10.84	%		10.85	%		10.58	%		11.04	%
Total capital to risk weighted assets		12.39	%		11.84	%		11.80	%		11.52	%		11.96	%

(1) Core efficiency ratio is a non-GAAP ratio that is calculated by dividing core noninterest expense by total core revenue (the sum of net interest income and core noninterest income). Other companies may define and calculate this data differently.

BEAR STATE FINANCIAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands, except share data)
(Unaudited)


	December 31, 2017		December 31, 2016
ASSETS
Cash and cash equivalents	$	53,568	$	78,789
Interest-bearing time deposits in banks		4,075		4,571
Investment securities:
Available for sale securities, at fair value		196,806		188,476
Held to maturity securities, at amortized cost (fair value of $42,849 and $25,090, respectively)		42,775		26,977
Other investment securities, at cost		27,077		13,759
Loans receivable, net of allowance of $18,992 and $15,584, respectively		1,654,245		1,540,805
Loans held for sale		3,815		8,954
Accrued interest receivable		7,677		7,006
Real estate owned, net		1,648		1,945
Office properties and equipment, net		50,546		54,049
Office properties and equipment held for sale		2,201		5,337
Cash surrender value of life insurance		58,200		57,267
Goodwill		40,196		40,196
Core deposit intangibles, net		9,332		10,353
Deferred tax asset, net		4,611		11,619
Prepaid expenses and other assets		4,191		3,072

TOTAL	$	2,160,963	$	2,053,175

LIABILITIES AND STOCKHOLDERS’ EQUITY

LIABILITIES:
Noninterest bearing deposits	$	217,582	$	223,038
Interest bearing deposits		1,281,862		1,421,042
Total deposits		1,499,444		1,644,080
Securities sold under agreement to repurchase		13,445		19,114
Other borrowings		386,811		152,004
Other liabilities		8,106		4,550

Total liabilities		1,907,806		1,819,748

STOCKHOLDERS’ EQUITY:
Preferred stock, $0.01 par value—5,000,000 shares authorized; none issued at December 31, 2017 or 2016		--		--
Common stock, $0.01 par value—100,000,000 shares authorized; 37,767,613 and 37,618,597 shares issued and outstanding at December 31, 2017 and 2016, respectively		378		376
Additional paid-in capital		210,599		209,274
Accumulated other comprehensive income (loss)		180		(1,436	)
Retained earnings		42,000		25,213

Total stockholders’ equity		253,157		233,427

TOTAL	$	2,160,963	$	2,053,175

BEAR STATE FINANCIAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except earnings per share)
(Unaudited)


	Three Months Ended				Year Ended
	December 31,				December 31,
	2017		2016		2017			2016
INTEREST INCOME:
Loans receivable	$	20,065	$	17,924	$	79,120		$	70,936
Investment securities:
Taxable		735		475		2,750			1,952
Nontaxable		927		729		3,700			2,185
Other		245		84		697			313
Total interest income		21,972		19,212		86,267			75,386

INTEREST EXPENSE:
Deposits		1,720		1,729		6,992			6,515
Other borrowings		1,359		376		3,755			1,403
Total interest expense		3,079		2,105		10,747			7,918

NET INTEREST INCOME		18,893		17,107		75,520			67,468

PROVISION FOR LOAN LOSSES		464		851		4,498			2,516

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		18,429		16,256		71,022			64,952

NONINTEREST INCOME:
Net gain on sales of investment securities		--		--		48			19
Deposit fee income		2,461		2,354		9,970			8,994
Earnings on life insurance policies		1,315		418		2,940			1,665
Gain on sales of loans		703		1,342		3,773			4,796
Other		199		280		1,008			1,237

Total noninterest income		4,678		4,394		17,739			16,711

NONINTEREST EXPENSES:
Salaries and employee benefits		6,752		7,443		28,519			31,168
Net occupancy expense		1,732		1,762		6,987			7,414
Real estate owned, net		29		2		(2	)		(377	)
FDIC insurance		303		230		1,078			1,099
Amortization of intangible assets		255		255		1,021			1,021
Data processing		1,463		1,341		5,769			5,520
Professional fees		429		531		1,860			2,212
Advertising and public relations		254		316		1,148			1,600
Postage and supplies		205		233		836			1,121
Other		1,536		1,512		7,239			6,567

Total noninterest expenses		12,958		13,625		54,455			57,345

INCOME BEFORE INCOME TAXES		10,149		7,025		34,306			24,318

INCOME TAX PROVISION		5,544		2,192		12,995			6,859

NET INCOME	$	4,605	$	4,833	$	21,311		$	17,459

Basic earnings per common share	$	0.12	$	0.13	$	0.57		$	0.46

Diluted earnings per common share	$	0.12	$	0.13	$	0.56		$	0.46

BEAR STATE FINANCIAL, INC.

AVERAGE CONSOLIDATED BALANCE SHEETS and NET INTEREST ANALYSIS - UNAUDITED

(Dollars in thousands)

	Three Months Ended December 31,
	2017							2016
	Average Balance		Interest		Average Yield/ Cost			Average Balance		Interest		Average Yield/ Cost
	(Dollars in Thousands)
Interest-earning assets:
Loans receivable(1)	$	1,695,811	$	20,065		4.69	%	$	1,536,703	$	17,924		4.63	%
Investment securities(2)		269,441		1,662		2.45			217,522		1,204		2.20
Other interest-earning assets		74,372		245		1.31			56,577		84		0.59
Total interest-earning assets		2,039,624		21,972		4.27			1,810,802		19,212		4.21
Noninterest-earning assets		194,324							208,990
Total assets	$	2,233,948						$	2,019,792
Interest-bearing liabilities:
Deposits	$	1,335,165		1,720		0.51		$	1,416,991		1,729		0.48
Other borrowings		414,234		1,359		1.30			134,480		376		1.11
Total interest-bearing liabilities		1,749,399		3,079		0.70			1,551,471		2,105		0.54
Noninterest-bearing deposits		222,770							229,296
Noninterest-bearing liabilities		8,994							4,686
Total liabilities		1,981,163							1,785,453
Stockholders' equity		252,785							234,339
Total liabilities and stockholders' equity	$	2,233,948						$	2,019,792

Net interest income			$	18,893						$	17,107
Net earning assets	$	290,225						$	259,331
Interest rate spread						3.57	%						3.67	%
Net interest margin						3.67	%						3.75	%
Ratio of interest-earning assets to Interest-bearing liabilities						116.59	%						116.71	%

	Year Ended December 31,
	2017							2016
	Average Balance		Interest		Average Yield/ Cost			Average Balance		Interest		Average Yield/ Cost
	(Dollars in Thousands)
Interest-earning assets:
Loans receivable(1)	$	1,667,971	$	79,120		4.74	%	$	1,503,245	$	70,936		4.72	%
Investment securities(2)		266,530		6,450		2.42			203,899		4,137		2.03
Other interest-earning assets		57,803		697		1.21			44,814		313		0.70
Total interest-earning assets		1,992,304		86,267		4.33			1,751,958		75,386		4.30
Noninterest-earning assets		198,873							213,221
Total assets	$	2,191,177						$	1,965,179
Interest-bearing liabilities:
Deposits	$	1,398,840		6,992		0.50		$	1,394,194		6,515		0.47
Other borrowings		319,924		3,755		1.17			111,484		1,403		1.26
Total interest-bearing liabilities		1,718,764		10,747		0.63			1,505,678		7,918		0.53
Noninterest-bearing deposits		220,572							226,758
Noninterest-bearing liabilities		6,822							3,447
Total liabilities		1,946,158							1,735,883
Stockholders' equity		245,019							229,296
Total liabilities and stockholders' equity	$	2,191,177						$	1,965,179

Net interest income			$	75,520						$	67,468
Net earning assets	$	273,540						$	246,280
Interest rate spread						3.70	%						3.77	%
Net interest margin						3.79	%						3.85	%
Ratio of interest-earning assets to Interest-bearing liabilities						115.91	%						116.36	%

(1) Includes nonaccrual loans.

(2) Includes FHLB and FRB stock.

BEAR STATE FINANCIAL, INC.

ASSET QUALITY ANALYSIS - UNAUDITED

(Dollars in thousands)

	December 31, 2017					December 31, 2016
	Net (2)		% Total Assets			Net (2)		% Total Assets			Increase (Decrease)
Nonaccrual Loans:
One- to four-family residential	$	7,061		0.32	%	$	6,709		0.33	%	$	352
Nonfarm nonresidential		7,374		0.34	%		5,177		0.25	%		2,197
Farmland		657		0.03	%		783		0.04	%		(126	)
Construction and land development		188		0.01	%		463		0.02	%		(275	)
Commercial		1,669		0.08	%		4,071		0.20	%		(2,402	)
Consumer		212		0.01	%		173		0.01	%		39

Total nonaccrual loans		17,161		0.79	%		17,376		0.85	%		(215	)

Accruing loans 90 days or more past due		--		--			--		--			--

Real estate owned		1,648		0.08	%		1,945		0.09	%		(297	)

Total nonperforming assets		18,809		0.87	%		19,321		0.94	%		(512	)
Performing restructured loans		882		0.04	%		4,804		0.23	%		(3,922	)

Total nonperforming assets and performing restructured loans (1)	$	19,691		0.91	%	$	24,125		1.17	%	$	(4,434	)

(1)

The table does not include substandard loans which were judged not to be impaired totaling $30.7 million at December 31, 2017 and 2016 or acquired ASC 310-30 purchased credit impaired loans which are considered performing.

(2)

Loan balances are presented net of undisbursed loan funds, partial charge-offs and interest payments recorded as reductions in principal balances for financial reporting purposes.

BEAR STATE FINANCIAL, INC.

CALCULATION OF RETURN ON AVERAGE TANGIBLE COMMON STOCKHOLDERS' EQUITY – UNAUDITED

(Dollars in thousands)

	For the Quarter Ending
	12/31/2017			9/30/2017			6/30/2017			3/31/2017			12/31/2016
Net income available to common stockholders	$	4,605		$	5,132		$	6,657		$	4,917		$	4,833
Average common stockholders' equity		252,785			248,559			242,263			236,247			234,339
Less average intangible assets:
Goodwill		(40,196	)		(40,196	)		(40,196	)		(40,196	)		(40,196	)
Core deposit intangible, net of accumulated amortization		(9,497	)		(9,754	)		(10,008	)		(10,265	)		(10,519	)

Average tangible common stockholders' equity	$	203,092		$	198,609		$	192,059		$	185,786		$	183,624

Annualized return on average tangible common stockholders' equity		9.0	%		10.3	%		13.9	%		10.7	%		10.4	%

BEAR STATE FINANCIAL, INC.

CALCULATION OF TANGIBLE BOOK VALUE PER COMMON SHARE - UNAUDITED

(In thousands, except per share data)

	For the Quarter Ending
	12/31/2017			9/30/2017			6/30/2017			3/31/2017			12/31/2016
Total common stockholder's equity	$	253,157		$	249,209		$	244,533		$	237,912		$	233,427
Less intangible assets:
Goodwill		(40,196	)		(40,196	)		(40,196	)		(40,196	)		(40,196	)
Core deposit intangible, net of accumulated amortization		(9,332	)		(9,587	)		(9,842	)		(10,098	)		(10,353	)
Total intangible assets		(49,528	)		(49,783	)		(50,038	)		(50,294	)		(50,549	)
Total tangible common stockholder's equity	$	203,629		$	199,426		$	194,495		$	187,618		$	182,878

Common shares outstanding		37,768			37,730			37,713			37,690			37,619

Tangible book value per common share	$	5.39		$	5.29		$	5.16		$	4.98		$	4.86

BEAR STATE FINANCIAL, INC.

RECONCILIATION OF NON-GAAP SELECTED CONSOLIDATED FINANCIAL DATA - UNAUDITED

(In thousands, except share data)

		For the Quarter Ending
		December			September			June			March			December
		2017			2017			2017			2017			2016
Net income		$	4,605		$	5,132		$	6,657		$	4,917		$	4,833
Adj: Loss (gain) on sale of securities, net			--			--			(37	)		(11	)		--
Adj: Claim on bank owned life insurance			(909	)		--			(395	)		--			--
Adj: Merger, acquisition and integration expenses			677			1,253			--			--			--
Adj: Branch restructure expense (1)			(38	)		279			29			1,565			41
Adj: Deferred tax asset tax rate adjustment (2)			2,541			(186	)		--			--			--
Tax effect of adjustments (3)			(250	)		(600	)		3			(608	)		(16	)
Total core earnings	(A)	$	6,626		$	5,878		$	6,257		$	5,863		$	4,858

Total revenue		$	23,571		$	23,327		$	23,351		$	23,010		$	21,501
Adj: Gain on sale of securities, net			--			--			(37	)		(11	)		--
Adj: Claim on bank owned life insurance			(909	)		--			(395	)		--			--
Total core revenue		$	22,662		$	23,327		$	22,919		$	22,999		$	21,501

Total non-interest expense		$	12,958		$	14,260		$	12,795		$	14,444		$	13,625
Adj: Merger, acquisition and integration expenses			(677	)		(1,253	)		--			--			--
Adj: Branch restructure expense (1)			38			(279	)		(29	)		(1,565	)		(41	)
Total core noninterest expense		$	12,319		$	12,728		$	12,766		$	12,879		$	13,584

Total average assets	(B)	$	2,233,948		$	2,246,331		$	2,190,240		$	2,092,022		$	2,019,792
Total average stockholders' equity	(C)		252,785			248,559			242,263			236,247			234,339
Total average tangible stockholders' equity	(D)		203,071			198,609			192,059			185,786			183,624
Total tangible stockholders' equity, period end	(E)		202,629			199,426			194,495			187,618			182,878

Total common shares outstanding, period-end	(F)		37,767,613			37,729,837			37,713,171			37,689,939			37,618,597
Diluted weighted average shares outstanding	(G)		37,982,761			37,921,016			37,883,264			37,880,022			37,833,124

Core earnings per share, diluted	(A/G)	$	0.17		$	0.16		$	0.17		$	0.15		$	0.13
Tangible book value per share, period-end	(E/F)	$	5.39		$	5.29		$	5.16		$	4.98		$	4.86

Core return on average assets	(A/B)		1.18	%		1.04	%		1.15	%		1.14	%		0.95	%
Core return on average equity	(A/C)		10.40	%		9.38	%		10.36	%		10.06	%		8.23	%
Core return on average tangible equity	(A/D)		12.94	%		11.74	%		13.07	%		12.80	%		10.50	%
Core efficiency ratio (4)			54.36	%		54.56	%		55.70	%		56.00	%		63.18	%
(1) This adjustment primarily consists of costs associated with properties disposed or held for sale as a result of branch restructuring, including net (gains) losses on sales, impairment charges, and other expenses such as accelerated depreciation. For the quarter ended March 31,2017, this adjustment also included severance expense totaling $1.1 million resulting from branch and other organizational restructure, primarily due to severance of $0.8 million accrued upon the departure of the former CEO in January 2017. (2) The Company was required to revalue its deferred tax assets and deferred tax liabilities as a result of the “Tax Cuts and Jobs Act” signed into law on December 22, 2017. The impact was a one-time, non-cash charge to income tax provision on the income statement. (3) The tax effect is calculated at the Company’s blended statutory rate of 39.14% for adjustments that impact taxable income for periods in 2017 and 38.29% for periods ending in 2016. (4) Core efficiency ratio is a non-GAAP ratio that is calculated by dividing core noninterest expense by total core revenue (the sum of net interest income and core noninterest income). Other companies may define and calculate this data differently.

BEAR STATE FINANCIAL, INC. 8-K/A