Simmons First National Corporation · NASDAQ:SFNC
Simmons First National — Investor Presentation (November 2015)
28 slides from Simmons First National's investor presentation, Nov 2, 2015
Slide 1: Simmons First National Corporation
7 Simmons First _ National Corporation NASDAQ-GS: SFNC
Slide 2: Forward-Looking Statement
ooking Statement Certain statements contained in this presentation may not be based on historical facts and are “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, These forward
Slide 3: Company Profile
Company Profile Ticker: SFNC Since 1903 $7.5 Billion Total Assets 4 State Footprint $1.4 Billion Market cap History of strong asset quality Ranked 34" in the U.S. on ABA's list of Top 100 Farm Lenders © Ranked 46¢ in the U.S. on SBA's list of Top 100 SBA Lenders ” Excellent non-interest income (non-
Slide 4: Company Footprint
Company Footprint ek Kansas.City, he “OO © cnnSaink Louis 5 r . 2 c ca be i rion tity TY eb, Knol tron. ® 5? Tennessee 2. | e ° ogg © Arkaiisas soo, Memphis soon a ate ae N a mv eo 2” Rock. = Ringe sees & g. ° ee Fine Blu Bo wl Blea © | ‘Simmons First National Corporation
Slide 5: Four Strategic Acquisitions
Four Strategic Acquisitions Metropolitan National Bank Ney Neier First State Announced May 2014 Closed Feb, 2015 ‘System Conversion: Sep, 2015 ui ‘Announced May 2014 Closed: Feb. 2015 System Conversion: Apr. 2015 $945 million in Assets and $370 million in Trust Assets Section 363 Bankruptcy Markets:
Slide 6: Trust Company of the Ozarks Acquisition
Trust Company of the Ozarks Acquisition $1 billion in assets under management + 1,300 client base + Market: Southwest Missouri Transaction Multiples * Price /2014 Revenue 3.4X + Price /2014 EBITDA 10.2X + Purchase Price: $20.7 million (75%stock/ 25% cash) ° price / 2014 Net Income 169X Announced: Ap
Slide 7: Proven Acquirer and Integrator
Proven Acquirer and Integrator TCO wane ay - . ape Soe cytone | PENNER Fist State Be M&A since 1990: 11. Whole bank acquisitions 1 Trust Company 5 Bank branch deals (total of 20 branches) tey (363) acquisition ailed bank acquisitions 4RTC failed thrift acquisitions Ay simone rst National Corporation
Slide 8: Timeline for Conversion and Integration
Timeline for Conversion and Integration 2014 Mar: wo Convert MNB, integrate 35 branches and close 27 branches Apr: of Regulatory filings (charter Consolidation & Delta Trust) May: of Convert 3 legacy charters (sFa-NeA, sF8-Searcy & SFB-Hot Springs) Jun: oe Regulatory approval (oeita Trust) Jul: o Re
Slide 9: Regional Structure
Regional Structure TC zi be oe ° Aen Kansas a X BS Missouri Vita ; r $ SE Me ‘OK : Tennessee Qe 1 ; th : { Arkansas Region 4 Missouri/Kansas Region {3} Tennessee Region © Loans Loms $1.3B © Loans $1.08 © Deposits © Deposits $1.08 © Deposits $1.38 FAY seomons First National Corporation Pages
Slide 10: Market Demographics and Deposit Market Share
Market Demographics and Deposit Market Share ‘tai poms, Medansii—zoioanisaoisamo 4 SFMC_Depeat ga rominion “cone” Pop erowth —roprowin DORMS MARE ere, (s) ‘Sin millions) rors 7 a7 aa ana at Tennis san Matt SERS EEration Source: SL Financial oge10
Slide 11: Non-Banking Business Units
Non-Banking Business Units 7 Simmons First Credit Cards $170 million nationwide credit card portfolio © Loan yield with fees over 13% © History of excellent credit quality © 13026net change of immons First Trust Company $4.5 billion in trust assets © Profit main of 28% Growing investment advisory bu
Slide 12: Revenue Opportunities
Revenue Opportu Credit Cards Trust\Wealth Mgmt. Investments Agriculture Lending Equipment Finance Insurance (P&C) Consumer Finance SBA Lending v v TCO * None of our accretion estimates include the potential benefits of expanding these business lines FAY seomons First National Corporation Page 12
Slide 13: 2015 Financial Highlights
2015 Financial Highlights YTD as of 9/30/15 2014 2015 Change Change 2014 2015 Change Change Earnings Earnings $ % EPS EPS $ % GAAP Results $23.0 $503 $273 118% $1.39 $1.83 $04a 32% Non-recuering tems 43 13.4 on 0.26 049 023 Core Results $27.3 $63.7 $36.4 133% $1.65 $2.32 $067 41% ROA, Core 083% 121%
Slide 14: SFNC: Performance Trends
SFNC: Performance Trends Core ROA Core ROTCE 1.40% 18.00% 130% 139% 16.00% 1.20% dibs | 14.00% 1.00% 12.00% pods 10.00% 0.80% ies oe ok 0.70% ors Eom 8.00% = ES 0.60% — J 6.00% . : mM J 2010 201120122013, S214 3S 2010 2011-2012, 20132018. 3.15 Core Efficiency Ratio Core Diluted EPS 75% $353 70% pees
Slide 15: Financial Highlights
Financial High Pre-acquisitions (June 2013) compared to September 2015 June 2013 Sept. 2015 Actual Actual Assets $3.48 $7.68 Loans, net of discounts $1.98 $4.98 Deposits $2.88 $6.18 Investment Security Portfolio $0.78 $1.58 LTM Core Diluted Earnings Per Share $1.60 $2.94 ‘Common shares outstanding 1
Slide 16: Loan Portfolio
Loan Portfolio AR $2.28 45% TN si08 | 20% | Movs $1.38 27% Other $0.48 | 8% Agricultural. 4% aro | Variable, Adjustable or Fixed < 1 ¥R Maturity he Sommictee) Fixed Rate 50% Owner Occupied | 44% Non-owner Occupied 56% (2) Includes creditcard, incirect, & equipment finance nationwide) {2} Simmons Ban
Slide 17: Linked Quarter Loan Growth
Linked Quarter Loan Growth $inmilions Q2-2015 03-2015 oe canes Total Loans $4813 $4,853 $40 0.8% Less: Acquired Total Loans (2,201) (2,049) (152) Adjusted Organic Loan Growth 2) $2,612 $2,804 $192 7.4% (2) Acquired loons net of discounts (2) Net of migrated acquired loons ‘Simmons First
Slide 18: Credit Quality: Legacy Portfolio
Credit Quality: Legacy Portfolio Excludes acquired loans $in millions 2007 2008 += 2009S 2010S 2011-2012: 2013S 2014 so NPLOI~SENC 060 O81 135 198 174 142 107 0.74 0.66 ‘NPL 9) ~All US Banks 093 219 4410S. 336 2672.07 a) NPA~SENC 051 066 112 171 152 161 191 130 0.89 NPA ~All US Banks" 090 196 863.81
Slide 19: Credit Quality: Credit Card Portfolio
Credit Quality: Credit Card Portfolio ‘6x istory of Strong Asset Quality Z (Net Charge-offs) ae 59 9.0% Lop F| 7.5% 3 E | GB] 6.0% - 3 Z 4.5% + 3.0% _ "hit 1.5% — 0.0% r —— L__| 1985 1987 19691991 1993 1995 1997 1999 2001 2003 2005. «2007 200920112013 2015, * Federal bankruptcy reform impacted charg
Slide 20: Credit Quality: Consumer Finance Company
Credit Quality: Consumer Finance Company Weighted Average 4 erage Balance Vela (Sin millions) (%) 2006 33.3 1.23 141 2007 37.3 1.44 143 2008 477 316 14.2 2009 54.0 2.83 135 2010 53.0 1.80 13.4 2011 50.6 1.35 136 2012 479 1.42 13.4 2013 48.1 0.87 13.0 2014 50.5 1.10 127 2015 YTD (6/30) 518 142 138 ‘S
Slide 21: Credit Quality: Loan and Credit Coverage
Credit Quality: Loan and Credit Coverage Actual $ inmitions Coverage 9/30/15 es Legacy Loan Portfolio 2,839 Allowance for Loan Loss (30) 1.1% Loans acquired 2,085 Loan discount (71) 3.4% Total Loans, before discounts 4,924 Total allowance for loan loss and loan discount (101) 2.1%
Slide 22: Consistent Dividend History
Consistent dend Hist Current idend Payout Ratio 27% a) $1.00 $0.80 $0.60 | $0.40 020 $0.20 $0.00 at "97 ‘98 ‘99 "00 ‘01 02 "03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 13 14 ‘15 = BB eran wo a
Slide 23: One Year Total Shareholder Return
1 Year Total Shareholder Return (Dividends + Stock Appreciation) 9130/14 - 9/30/15 30 +27% Bank Index (2%) 25 20 15 10 “5 -10 Sep-2014 Dec-2014 Mar-2015 Jun-2015, Sep-2015 —SFNC_—SNLU.S. Bank
Slide 24: Long-Term Shareholder Return
ng-term Shareholder Return (Dividends + Stock Appreciation) Pre-economic downturn 12/31/07 ~ 9130/15 150 SFNC +124% ank Index = #3% 100 50 -50 -100 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 —SFNC_ —SNLUS. Bank
Slide 25: Investment Profile
Investment Profile SFENC Market Data as of 9/30/15 Stock Price $47.93 52 week price range $35.72 -$48.36 Common Shares Outstanding 29.9 million Market Capitalization $1.4 billion % Institutional Ownership “31% % Index Ownership “10% Valuation & Per Share Data Price / LTM Core EPS 16.3x Price / 2015
Slide 26: Strategic Focus
6 Strategic Focus = "Table Stakes” % Asset Quality “ Regulatory Compliance = Internal revenue opportunities = Efficiency initiatives = Branding in new markets and product enhancement * $10 billion threshold = Acquisitions itional banking - enhance current footprint and consider expanding into ing st
Slide 27: Multiple paths to above average earnings growth
= Multiple paths to above average earnings growth *% M&A accretion, cost savings and revenue enhancements “+ Continued efficiency initiatives Organic legacy loan growth “+ Rising interest rates = Experienced and deep management = Exceptional balance sheet = Consistent historical earnings performance
Slide 28: Simmons First National Corporation
7 Simmons First _ National Corporation NASDAQ-GS: SFNC
Simmons First National — Investor Presentation (November 2015) on 6ix