Simmons First National Corporation · NASDAQ:SFNC
Simmons First National — Investor Presentation (March 2016)
44 slides from Simmons First National's investor presentation, Mar 7, 2016
Slide 1: Simmons First National Corporation
Simmons First _ National Corporation NASDAQ-GS: SFNC
Slide 2: Forward-Looking Statement
Forward-Looking 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. 7 for
Slide 3: Company Profile
Company Profile * Ticker: SFNC \ * Since 1903 ¢ $7.6 Billion Total Assets ¢ 4State Footprint =| i \ ¢ $1.3 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 no
Slide 4: Company Footprint
Company Footprint Kansai ay Ee ch ° “ 9 froin © onnSaing outs "Hl: Kansas, 3 ae 2 : = Missouri hs Wichita a! < L eo “ . o- i © hid . : ~ a ‘So. oe 0G spingte \ ax ae rion ty ~~. a Mrectiie é © Sg Termessee = grote mer OK gies. ee pPire Blu Ay sinmone fist Natlonal Corporation
Slide 5: Four Strategic Acquisitions
Four Strategic Acquisitions + $945 million in Assets and $370 million in Trust Assets, + Section 363 Bankruptcy + Markets: Little Rock MSA and Northwest Arkansas + Purchase Price: $53.6 million (0.90X TBV) DNs Ne Ney EPS Accretion Internal Rate of Return > 25% oe Cost Savings of 35% to 40% {$455 mil
Slide 6: Trust Company of the Ozarks Acquisition
Trust Company of the Ozarks Acquisition ECO + 1,300+ client base facta + Cost Savings of 15% ound Expected closing + $1 billion in assets under management + Market: Southwest Missouri + Purchase Price: $20.7 million (75% stock / 25% cash)" Transaction Multiples (! 1/2014 Revenue —3.4X + Price /2014
Slide 7: TCO
TCO ry a aa Fast State M&A since 1990: © 11 Whole bank acquisitions © 1 Trust Company © 5 Bank branch deals (total of 20 branches) © | Bankruptcy (363) acquisition © 4 FDIC failed bank acquisitions © 4 RTC failed thrift acquisitions Simmons First National Corporation Page7
Slide 8: Integration and conversion timeline
Apr: Sep: Oct: Feb-16: wo Convert MNB, integrate 35 branches and close 27 branches of Regulatory filings (charter Consolidation & Delta Trust) o Convert 3 legacy charters (sF8-NEA, SFB-Searcy & SFB-Hot Springs) oe Regulatory approval (delta Trust) wo Regulatory filings (First state & Liberty) o File
Slide 9: Regional Structure
Regional Structure fs a0 W sorngo. $ Prrcnise ‘ “OK e on Krone OK is hed sf Termes TK Ga Th. A a 4 4} Arkansas Region 4} Missouri/Kansas Region {3} Tennessee Region oLoms — $228 o Los — $13B © Loms — $1.0B © Deposits $3.5B © Deposits $1.0B © Deposits $1.2B Ay somone fist National Corporation Pageo
Slide 10: Market Demographics and Deposit Market Share
Market Demographics and Deposit Market Share ms Tox ie po ,, Medians 20102015 2ois2m0 SME Devos pons ( see ) Income Pop. Growth Pop. Growth a ‘Rank (State or Market, iaiti (s) ais ani $in millions) wisourt oa 50 1s 100s 7 123219 Talon avene 708 3a? 352 Arkansas Major MSAs Lite Rock, AR SA) 0735 49.6
Slide 11: Non-Banking Business Units
Non-Banking Business Units Ff Simmons First Credit Cards © $177 million nationwide credit card portfolio ‘© Loan yield with fees over 13% © History of excellent credit quality Finance Company © $50 million consumer portfolio © Loan yield over 135% ‘© Good regulatory compliance track record © Strong
Slide 12: Revenue Opportunities
Revenue Opportunities Wealth Management Trust v v Investments v v Insurance v v Private Bank v Agriculture Lending v Equipment Finance O, Consumer Finance v Credit Cards v SBA Lending v v None of our accretion estimates include the potential benefits of expanding these business lines FA sermons fist
Slide 13: 2015 Financial Highlights
2015 Financial Highlights YTD as of 12/31/15 GAAP Results Non-recurring items Core Results ROA, Core ROTCE, Core Efficiency Ratio, Core NIM NIM, Core Q4-2015 Results GAAP Results Non-recurring items. Core Results ROA, Core ROTCE, Core Efficiency Ratio, Core NIM NIM, Core 2014 2015 Change Change _| 2
Slide 14: SFNC: Performance Trends
SFNC: Performance Trends Core ROA 1.30% 1.20% 1.10% 1.00% 0.90% ee & a 1a 20102011.» 2012, 201320182015 Core Efficiency Ratio 75% 70% . “fj i { fj a 50% L . - 2010 ©2011-2012, 2013S 20142015 Core ROTCE 16.00% 14.00% 12.00% vg coon (ll i 201020112012, 201320142015. $3.53 pad aa : sass = : $2.03 153 i
Slide 15: Financial Highlights
Financial Highlights Pre-acquisitions (June 2013) compared to December 2015 June 2013 Dec. 2015 Actual Actual Assets $3.48 $7.68 Loans, net of discounts $1.98 $4.98 Deposits $2.88 $6.18 lavestment Security Portfolio $0.78 $1.58 LIM Core Diluted Earnings Per Share ® $1.60 $3.18 Common shares outstand
Slide 16: Loan Portfolio
Loan Portfolio Total Loan Portfolio $4.9 billion December, 2015 MO\KS $1.38 27% Other $0.48 8% ceiecara Consumer 4%. Re-pricing % of Total Variable, Adjustable or 4% Single-Family Fixed < 1 YR Maturity Residential 20% Fixed Rate 59% Commercial Real Estate % of Total CRE-Loans ‘Owner Occupied eaeoarA
Slide 17: Loan Growth
Loan Growth Linked Quarter Loan Growth $ in millions 03-2015 Q4-2015 rig — Legacy Loans (includes acquired migrated) $2,839 $3,246 $407 14.3% ‘Acquired Loans, net of discounts 2,014 1,673 (341) (16.9%) Total Loans, net of discounts $4,853 $4,919 $66 1.4% Note: Seasonally adjusted (agriculture and cr
Slide 18: Credit Quality: Legacy Portfolio
Credit Quality: Legacy Portfolio Excludes acquired loans $in millions 2007 2008 «= 2009 2010. 2011 «2012-2013 2014S 2015 NPLO)—SENC 060 081 135 198 176 142 107 0.74 068 NPL) All US Bonks 093 219 41415336267 207.71 NPA~ SENC ost 064 112 471 152 161 191 130 089 NPA ~All US Banks) 090 196 381 «369353 2
Slide 19: Credit Quality: Credit Card Portfolio
Credit Quality: Credit Card Portfolio iSO History of Strong Asset Quality " (Net Charge-offs) 10.5% 3 si q 5] 6.0% Zz 0.0% 3985 1987 1989 1991 1993 1995 1997 1999 2001 20032005 + Federal bankruptcy reform impacted charge-offs in 2005 705%] | 2009 20112013 —SFNC — industry 2015 =< Page 19
Slide 20: Credit Quality: Consumer Finance Company
Credit Quality: Consumer Finance Company — = Weighted Balance “ld ($ in mitions) (%) (6) 2006 33.3 1.23 wt 2007 373 1.44 43 2008 an7 3.16 142 2009 540 2.83 135 2010 530 1.80 134 2o11 50.6 135 13.6 2o12 a79 1.02 134 2013 48a 0.87 130 201 505 1.20 27 2015 so. 477 137 Simmons First National Corporation
Slide 21: Credit Quality and Credit Coverage
Credit Quality an and Credit Coverage Actual $n nilions Ciraia 12/31/15 es Legacy Loan Portfolio 3,246 Allowance for Loan Loss (31) 1.0% Loans acquired 1,730 Loan discount (57) 3.3% Total Loans, before discounts 4,976 Total allowance for loan loss and loan discount (88) 18%
Slide 22: Dividend history chart
$1.00 - $0.80 2 | $0.60 Z 3 al $0.40 $0.20 $0.00 + + + ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 =n Taunus a en
Slide 23: Year Total Shareholder Return
1 Year Total Shareholder Return vl ti 60 SFNC +8% SNL Mid Cap U.S. Bank Index (4%) 5 3 Z| g a 2 -20 Feb-2015 May-2015 ‘Aug-2015 Nov-2015 Feb-2016 —SFNC —SNL Mid Cap Bank eatin sxsckrns ous ot cha/ie
Slide 24: Long-term Shareholder Return
Long-term Shareholder Return (Dividends + Stock Appreciation) % Total Return 200 Pre-economic downturn 12/31/07 ~ 219/16 SFNC +95% SNL Mid Cap U.S. Bank Index (28%) 150 -100 + Dec-2007 _Dec-2008 Dec-2009 Dec-2010 —Dec-2011 Dec-2012 Dec-2013 Dec-2014 —_Dec-2015 —SFNC —SNL Mid Cap Bank Simmons First N
Slide 25: Investment Profile
Investment Profile Market Data as of 2/19/16 Stock Price 52 week price range Common Shares Outstanding Market Capitalization % Institutional Ownership % Index Ownership Valuation & Per Share Data Price / 2015 Core EPS Price / 2016 EPS (+) Price / Tangible Book (4) based upon analyst consensus SFNC $
Slide 26: Strategic Focus
016 Strategic Focus = "Table Stakes" “% Asset Quality * Regulatory Compliance = Internal revenue opportunities = Efficiency initiatives = Branding in new markets and product enhancement = $10 billion threshold = Acquisitions «Traditional banking - enhance current footprint and consider expanding int
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 = Experienced and deep management = Exceptional balance sheet = Consistent historical earnings performance = Attractive dividend y
Slide 28: Slide 28
Slide 29: 4th Quarter 2015 Earnings Release
4t Quarter 2015 Earnings Release Z
Slide 30: Simmons First announces 128 percent increase in core earnings
Simmons First __ National Corporation 7 FOR IMMEDIATE RELEASE: January 21, 2016 SIMMONS FIRST ANNOUNCES 128 PERCENT INCREASE IN CORE EARNINGS ine Bluff, AR - s ‘National Corporation (NASDAQ. wrth quarter of 2015, an increas oD be rerpe ‘Year-to-date core eamings were $89.6 million, an increase of $5
Slide 31: Non-Interest Income
Non-Interest Income sizing expenses. The executed during the quarter. The compa 166 pereent of non-pero |. 2015, common stockhe book value per share was 14.22 percent and its ratio of tangi equity was S11 billion, book value per share was $34.49 and 1.97. The company’s ratio of stockholders’ equity
Slide 32: Non-GAAP financial measures and contact
‘generally accepted accounting pri AP). The company’s mana; financial measures in their analysis of the company’s performance. These measures typi performance measures to include the tax benefit associated with revenue items that are tax adjust income available to common, for operating reuts to non-
Slide 33: Consolidated End of Period Balance Sheets
‘Simmons First National Corporation SFNC Consolidated End of Period Balance Sheets For the Quarters Ended Dec31 Sep30 Jun30 Mar 31_—Dee 31 (Cnaudited) 2018 _2018_ 20152015 _2014 (Gin thousands) erst bearing balances due from banks ‘Aceriod interest and ther Habits “otal abit ‘Stockolders' equity: “o
Slide 34: Consolidated Balance Sheets Detail
‘Simmons First National Corporation SFNC Dec31 Sep30 Jun 30. Mar 31_—Dec 31 2015 _2015_ 201520152014 (Sin thousands) interest bearing Balanees due fom banks s Interest bearing balances dus fem banks Fodera funds sold Cash and cash equivalents S$ 94695 $137 S59, 206,167 308,786 oss __75,922 2,008,550
Slide 35: Consolidated Statements of Income - Quarter-to-Date
Simmons First National Corporation ‘SFNC Consolidated Statements of Income - Quarter-to-Date For the Quarters Ended Dec31 Sep30 Jun30 Mar31_ Dee 31 (Unaudited) 2015 _2015__2015__2015__2014 (Sin thousands, except per share data) INTEREST INCOME S TAs $ 5098 $45,248 Federal funds sold B 2» B 8050 S879
Slide 36: Adjusted Core Earnings - Quarter-to-Date
ns First National Corporation SFNC sted Core Earnings - Quarter-to-Date (non-GAAP) For the Quarters Ended Dec31 Sep30 Jun30. Mar31_—Dec31 (Unaudited) 2015 _2015__2015__2014 INTEREST INCOME Loans S TSI $ 7682 8 Federal funds sold 15 33508335 ‘Mortgage loans held for sale 237 291 Assets held in tradin
Slide 37: Capital ratios and risk-based capital
‘Simmons First National Corporation ‘FNC Dec31 — Sep30.— Jun30_— Mar 31 Dec 31 2015 _2015_ 20152015 _ 2014 (Sinthousands) 7 10 ‘Total Tier 1 capital ‘Tiee2eapitl ‘Qualfng unrealized gain on AFS equity secures 2 « 2 ‘Qualiffing allowance for loan losses and reserve 35068 __s1007 ‘Total Tier 2 capital
Slide 38: Consolidated Loans and Investments
‘Simmons First National Corporation ‘SFNC idated Loans and Investments Dec31-Sep30.- Jun30.— Mar31_—Dec 31 2015 2015 2015 2015 2014 (Sin thousands) Legacy Loan Portfolio - End of Period” Consumer s 253,761 199,707 623,089 662.954 878,109 1,740,770 1,402,301 385,869 324815 S 300625 $ 28 Total held-to
Slide 39: Consolidated Loans and Credit Coverage
Simmons First National Corporation SFNC Consolidated Loans and Credit Coverage For the Quarters Ended (Unaudited) Dec31 Sep30— Jun30. Mar31_—-Dec 31 2015 _2018_ 201520152014 Sin thousands) losses (acquired covered loans) , covered (net of discount and allowance) 097% = 1.07% LAT 3RHLaING 32% 3M 36.7
Slide 40: Allowance for Loan Losses
Dec31 Sep30 Jun30— Mar 31_—Dee 31 (Unaudited) 2015 _2015_ 20152015 _2014 (Sin thousands) Allowance for Loan Losses (Legney Loans) ‘Baanee, beginning of quarter $3038 $_30567 $_20183 $2028 $27,076 ‘Loans charged off Credit ards 157 763 788 Other consumer 489 37 20 843 Pages 2a 220 187 4 46 56 9 125 5
Slide 41: Consolidated - Net Interest Income Analysis
Simmons First National Corporation ‘SFNC ‘Consolidated - Net Interest Income Analysis For the Quarters Ended Dec31 Sep30 Jun30 Mar31_— Dee 31 (Unaudited) 2015 _2015__ 20152015 _2014 ASSETS Eaming Assets Interest bearing balances due fem banks 036% Investment securities 27% Mortgage loans held for sa
Slide 42: Consolidated - Selected Financial Data
Simmons First National Corporation ‘SFNC Consolidated - Selected Financial Data For the Quarters Ended Dec31 — Sep30 Jun30 Mar3t_— Dec 31 (Unaudited) 2015 _2015__2015__2015__ 2014 in thousands, except share data) “Tangible book vale per share Shares outstanding Pulltime equivalent employees
Slide 43: Consolidated - Reconciliation of Core Earnings (non-GAAP)
‘Simmons First National Corporation ‘SFNC Consolidated - Reconciliation of Core Earnings (non-GAAP) Dec3t Sep30 Jun30. Mar31_— Dee 31 21s _2018_ 2015 _ 20152014 (2) Effet ta rate of 39.22%, ated for non-dedible merger related cst Paget
Slide 44: Simmons First National Corporation
Simmons First _ National Corporation NASDAQ-GS: SFNC
Simmons First National — Investor Presentation (March 2016) on 6ix