Simmons First National Corporation · NASDAQ:SFNC
Simmons First National — Investor Presentation (July 2015)
28 slides from Simmons First National's investor presentation, Jul 28, 2015
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 21 of the Securities Exchange Act of 1934, as amended. These
Slide 3: Company Profile
Company Profile * Ticker: SFNC ‘ ° Since 1903 ¢ $7.6 Billion Total Assets ¢ 4State Footprint * $1.4 Billion Market Cap * History of strong asset quality * Top 50 Agriculture Lender in the Country “ * Top 50 SBA Lender in the Country * Excellent non-interest income (non-banking business units) FAY si
Slide 4: Company Footprint
Company Footprint ate Areal Kansas City AX hth OM Hand Page sully Peas socom cn Ui Evansville. Frankfort 1 ouicita 9, ° be. % er" Oklahoma City Huntsville Wichita Falls ; Atlanta Birmingham fort Worth) Invi FAY simmons rst fational Corporation Page 4
Slide 5: Four Strategic Acquisitions
Four Strategic Acquisitions + $945 million in Assets and $370 million in Trust Assets + Section 363 Bankruptcy erty Neher + Markets: Little Rock MSA and Northwest Arkansas = as + Purchase Price: $53.6 million (0.90X TBV) —— Bats + Internal Rate of Return > 25% 1% tem Conversion. Mar + Cost Savings o
Slide 6: Trust Company of the Ozarks Acquisition
Trust Company of the Ozarks Acquisition 1,300 client base Cost Savings of 15% + $1 billion in assets under management Market: Southwest Missouri Purchase Price: $20.7 million (75% stock / 25% cash) ‘Transaction Multiples * Price /2014 Revenue 3.4K + Price /2014 EBITDA 10.2 + Price / 2014 Net Income
Slide 7: Proven Acquirer and Integrator
Proven Acquirer and Integrato First State Je M&A since 1990: © 11 Whole bank acquisitions ‘© 5 Bank branch deals (total of 20 branches) © 1 Bankruptey (363) acquisition © 4 FDIC failed bank acquisitions © 4RTC failed thrift acquisitions FAY simmons rst National Corporation Page?
Slide 8: Timeline for Conversion and Integration
meline for Conversion and Integration 2014 Mar: w~ Convert MNB, integrate 35 branches and close 27 branches Apr: o Regulatory filings (charter Consolidation & Delta Trust) May: oe Convert 3 legacy charters (sF8-NEA, SF8-Searcy & SFB-Hot Springs) Jun: o Regulatory approval (celta Trust) Jul: o Regula
Slide 9: Regional Structure
Regional Structure cin And @} South AR Region o Loms — $05B © Deposits $1.1B @ Central/NE AR Region © Loans $13B © Deposits $1.8B 4} Northwest AR Region © Loans $04B © Deposits $0.6B .| 4 Missouri/Kansas Region o Loans $1.28 ‘© Regional Chairman / EVP © Regional Sr. Credit Officer co Regional Operat
Slide 10: Market Demographics and Deposit Market Share
Market Demographics and Deposit Market Share rai nities aoroanis—aossaom SFE rt rng ‘ans ee = 7 rr me Ta08 Temessee 6s at sass 20% sou 6a 1s ee ee 31 Tos 3a 32 sn Maer ts in An) = 3 7 Tomes Marts Missouri Kansas Maior MSAs SRE rton source SNL Financia iar
Slide 11: Non-Banking Business Units
Non-Banking Business Units 7 Simmons First Credit Cards © $174 million nationwide creditcard portfolio © Loan yield with fees over 13% © History of excellent credit quality & 13Ponetchageotis TD) Simmons First Trust Company billion in trust assets 4 SAS billion po foma with TCO © Profitmargin of 28%
Slide 12: Revenue Opportunities
Revenue Oppo yy ib- Ei, Credit Cards ¥v Trust\Wealth Mgmt. v vy Ico Investments ¥v Agriculture Lending v Equipment Finance v Insurance (P&C) v v Consumer Finance v SBA Lending v v “ None of our accretion estimates include the potential benefits of expanding these business lines FA simone Fist Nation
Slide 13: 2014 and Q2-2015 Financial Highlights
2014 and Q2-2015 Financial Highlights 2014 Results 2014 Change _~—Change_| 2013, 2014 Change _~—Change Earnings $ % EPS EPS $ % GAAP Results $23,231 $35,688 $12,457 54K $1.42 saat $0.69 49% Non-recurring items 4381 3,019 (1,362) 027 08 (0.09) Core Results $27,612 $38,707 $1,095 40% $1.69 $2.29 $0.60
Slide 14: SFNC: Performance Trends
SFNC: Performance Trends 7 oe 23,00% ©} — i <2 7 ee : on si nia al Fy roo a Core Diluted EPS 70% $3.03 65% $253 $2.03 Za 60% $s $1.53 ig 55% $1.03 gS ong $053 2
Slide 15: Financial Highlights
Financial Highlights Pre-acquisitions (June 2013) compared to June 2015 June 2013 June 2015 Actual Actual Assets $3.48 $7.68 Loans, net of discounts $1.98 $4.38 Deposits $2.88 $6.28 Investment Security Portfolio $0.78 $1.68 LIM Core Diluted Earnings Per Share $1.60 92.73 Common shares outstanding 16
Slide 16: Loan Portfolio
Loan Portfolio Total Loan Portfolio $4.8 billion AR $2.28 45% TN $1.18 24% June, 2015 Mo\ks $1.38 26% Other $0.38 5% é ‘onsumer Credit card TE Re-pricing @ Variable, Adjustable or Single-Family Fixed <1 YR Mati “e Residential 25% Fixed Rate 56% Commercial Real Estate CRE-Loans () % of Total 43% [_ow
Slide 17: Linked Quarter Loan Growth
Linked Quarter Loan Growth $in millions Q1-2015 —Q2-2015 ane aa Legacy Loans $2,115 $2,611 $496 23.5% Acquired Loans, not covered by FDIC Loss Share ( 2,419 2,109 (310) (12.8%) ‘Acquired Loans, covered by FDIC Loss Share ») 103 94 (9) (8.7%) Total Loans $4,637 $4,814 $177 3.8% (2) Acquired loans net
Slide 18: Credit Quality: Legacy Portfolio
Credit Quality: Legacy Portfolio Legacy excludes acquired loans and OREO $in millions 2007 2008 «= 2009-2010 2011.-«« 2012-2013 2014 sis NPL) —SENC 060 081 135 198 «9174 «= 1.2.07. NPL) AN US Banks 093 219 4410 41S 4113.36 267207) NPA~ SNC O51 064 112 142 118 096 066 054 0.40 NPA All US Bonks 090 19
Slide 19: Credit Quality: Credit Card Portfolio
Credit Quality: Credit Card Portfolio 12.0% ory of Strong Asset Quality (Net Charge-offs) 705%] 35% = 1985 1987 19891981 1993 1995 19971999 2001 2003 2005-2007 2009«2011«2013,«2015, * Federal bankruptcy reform impacted charge-offs in 2005 ESSENC ——hdusty: Ay sixmons First National Corporation Indust
Slide 20: Credit Quality: Consumer Finance Company
Credit Quality: Consumer Finance Company Average Net pe Balance Charge-off (Sinmitions) (66) Yield (%) 2006 333 123 eT 2007 373 aa 43 2008 477 3.16 142 2009 540 2.83 Bs 2010 530 1.80 34 2011 50.6 135 136 2012 479 a2 Ba 2013 48.1 087 130 2014 50.5 1.10 27 Note: Currently Fitst State Consumer Finance
Slide 21: Credit Quality: Loan and Credit Coverage
Credit Quality: Loan and Credit Coverage Actual $ in millions 6/30/15 Coverage Legacy Loan Portfolio 2,611 Allowance for Loan Loss (31) 1.2% Loans acquired, not covered by FDIC loss share 2,172 Loan discount (64) 2.9% Loans acquired, covered by FDIC loss share 14 Loan Discount (20) 17.5% Total Loans
Slide 22: Consistent Dividend History
tent Dividend Histor $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 =
Slide 23: 1 Year Total Shareholder Return
1 Year Total Shareholder Return (Dividends + Stock Appreciation) 6/30/14 — 6/30/15 30 25 20 15 10 5 -10 ‘ = - Jun-2014 Sep-2014 Dec-2014 Mar-2015 Jun-2015 —SENC —=SNLUSS. Bank FAY simmons rst National Corporation Source: SNL Financial or
Slide 24: Long-term Shareholder Return
Long-term Shareholder Return (Dividends + Stock Appreciation) Pre-economic downturn 12/31/07 — 6/30/15 150 SFNC +116.9% SNLU.S. Bank Index = +6.2% Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13, Dec-14 —SFNC_—SNLU.S. Bank FAY simmons rst National Corporation Source: SNL Financial peta
Slide 25: Investment Profile
Investment Profile SFN Market Data as of 6/30/15 Stock Price $46.68 52 week price range $35.72 - $48.36 Common Shares Outstanding 29.8 million Market Capitalization % Institutional Ownership % Index Ownership Valuation & Per Share Data Price / LTM EPS 17.1x, Price / 2015 EPS (2) 14.9x Price / 2016 E
Slide 26: Strategic Focus: 2015 -
Strategic Focus: 2015 - 20 = "Table Stakes" + Asset Quality “ Regulatory Compliance = Integration of acquisitions = Internal revenue opportunities = Branding in new markets and product enhancement = $10 billion threshold = Acquisitions * Traditional banking - enhance current footprint and consider e
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
Simmons First __ National Corporation NASDAQ-GS: SFNC
Simmons First National — Investor Presentation (July 2015) on 6ix