Simmons First National Corporation · NASDAQ:SFNC
Simmons First National — Merger or Acquisition (May 2014)
19 slides from Simmons First National's merger presentation, May 28, 2014
Slide 1: Acquisition of Liberty Bancshares, Inc.
7 Simmons First National Corporation NASDAQ-GS: SFNC Acquisition of Liberty Bancshares, Inc. s = HARES, INC = May 28, 2014
Slide 2: Forward-looking statements
Statements contained in this presentation that are not historical facts should be considered “forward-lool within the of the Private Litigation Reform Act of 1995. These forward- looking statements may be identified by reference to a future period(s) or by the use of forward-looking pate,” “estimate
Slide 3: Financially Attractive, Low Risk Profile, Strategic Value
Financially Attractive Low Risk Profile Strategic Value Meaningful EPS accretion. Internal rate of return ~19%, Accretive to tangible book value in ~3.25 years Pro forma total assets of $7.8 billion Similar cultures and operating styles Familiar markets Retention of local management team Comprehensi
Slide 4: Simmons First to acquire 100% of Liberty Bancshares
~ Simmons First National Corporation (“Simmons First”) to acquire 100% of Liberty Bancshares, Inc.’s (“Liberty”) stock. Liberty will be merged into Simmons First S Purchase Price $207 million Required Customary regulatory and shareholder Approval approvals Expected 7 Closing 4% Quarter 2014
Slide 5: Key Transaction Assumptions
Key Transaction Assumptions 30% of Liberty’s 2013 non-interest expense Cost Savings * ~$9.7 million pre-tax * 50% phased-in in 2015; 100% thereafter One-time Merger ~$6.8 milli Related Cost ‘$6.8 million after-tax $18.1 million or 2.2% of loans Loan Mark 2.0 x NPL’s oF 160% of ALLL $2.5 million to F
Slide 6: Financial Impact
Financial Impact = Meaningful EPS Accretion: — 2015: ~3% after Community First (5% before) — 2016 and thereafter: ~5% after Community First (9% before) = Internal Rate of Return ~19% = Estimated TBV Impact: — Earn back period ~3.25 years = Pro Forma Capital: — TCE /TA — Tier 1 Leverage Ratio — Tier
Slide 7: Overview of Liberty
Overview of Liberty L Headquarters Springfield, MO Year Established 1995, Branches 2B ceo Gary E. Metzger Total Assets $1,062.3 Deposits 885.1 Total Loans 8108 Loans / Deposits 91.6 % 96 Core Deposits 92.4 ROAA 1.48 % Liberty Overview ROAE 16.67 Net Interest Margin 4.48 Founded in 1995 Efficiency Ra
Slide 8: Executive Management
Executive Management Gary Metzger Garry Robinson Caroline Butler Dax Chance Larry Clos Founder, Chairman & Chief Executive Officer President & Chief Operating Officer Vice President, Chief Financial Officer Senior Vice President, Director of Operations Senior Vice President, Risk Manager
Slide 9: Historical Financials
Historical Financials Dollars in thousands For the Year Ended December 31, 2011 2012 Balance Sheet Total Assets $974,049 $1,094,161 $1,064,618 $1,072,696 $1,082,257 Total Loans 850,653 889,471 862,186 803,794 810,847 Deposits 796,132 919,032 920,761, 902,639 885,097 Tangible Common Equity 56861 65,7
Slide 10: Expansion in Springfield MSA
Expansion in Springfield MSA L = Springfield’s Economic Area reaches more than one million people ‘The health care sector employs ~30,000 people and provides an annual economic impact of $4.5, billion Acquisition fills out 3 footprint with a high performing bank with strong community ties “Springfie
Slide 11: Pro Forma Demographics
Pro Forma Demographics Projected Population Projected Median Household Growth % Income Growth % (2013 - 2018) (2013 - 2018) SFNC Liberty Arkansas Missouri Pro Liberty Arkansas Missouri Pro Forma Forma Source: SNL Financial Note: SFNC pro forma for recent Delta Trust and Community First acquisitions
Slide 12: Pro Forma Markets
Pro Forma Markets Pro Forma Markets Deposits Rank Bank Branches___(Smm) ‘Bank of America Corp. 158 20,520 Regions Financial Corp. 287 Commerce Bancshares Inc. First Horizon National Corp. US. Bancorp SunTrust Banks Inc. UMB Financial Corp. Arvest Bank Group Inc. Pro Forma ‘Simmons First National Cor
Slide 13: Pro Forma Loan Composition
Pro Forma Loan Composition | ‘\ : aon Taser Tae J (21) Excludes purchase accounting adjustments Source: SNL Financial, Company Documents Note: Data as of March 31, 2014; SFNC pro forma for recent Delta Trust and Community First acquisitions
Slide 14: Pro Forma Deposit Composition
Pro Forma Deposit Composition ‘\ Liberty Pro Forma() qe Soe | eine fromercar= = \ (21) Excludes purchase accounting adjustments Source: SNL Financial, Company Documents Note: Data as of March 31, 2014; SFNC pro forma for recent Delta Trust and Community First acquisitions
Slide 15: Credit Due Diligence
Credit Due Diligence 2 Comprehensive credit due diligence process to review Liberty’s loan and OREO portfolios > Experienced loan review team, which has a good understanding of borrowers and local markets > Excellent cooperation of Liberty’s management team > $387 million of loans were reviewed (47%
Slide 16: Proven Acquirer and Integrator
EBB rroven Acquirer and Integrator
Slide 17: Acquisition track record
Source: SNL Financial Note: SFNC pro forma for recent Delta Trust and Community First acquisitions
Slide 18: Summary
Summary Pro forma total assets of $7.8 billion Strategic acquisition that enhances franchise value through filling-in our out-of-state operations Accretive to earnings per share while retaining strong capital position Integration experience and retention of local management assures low execution ris
Slide 19: Simmons First National Corporation
7 Simmons First National Corporation NASDAQ-GS: SFNC Acquisition of Liberty Bancshares, Inc. s = HARES, INC = May 28, 2014
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