Simmons First National Corporation · NASDAQ:SFNC
Simmons First National — Merger or Acquisition (May 2014)
23 slides from Simmons First National's merger presentation, May 6, 2014
Slide 1: Acquisition of Community First Bancshares, Inc.
7 Simmons First National Corporation NASDAQ-GS: SFNC Acquisition of Community First Bancshares, Inc. May 6, 2014 First State Bb
Slide 2: Forward-Looking Statement
Forward-Looking Statement [4 in this p ion that are not historical facts should be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward- looking statements may be identified by reference to a future period(s) or by the use
Slide 3: Financially Attractive, Low Risk Profile, Strategic Value
Financially Attractive Double digit EPS accretion Internal rate of return greater than 18% Accretive to tangible book value in ~1.75 years Pro forma total assets of $6.8 billion Low Risk Profile Strategic Value Similar cultures and operating styles Retention of local management team Comprehensive du
Slide 4: Purchase Price, Required Approval, Expected Closing
Purchase Price Required Approval Expected Closing ~ Simmons First National Corporation (“Simmons First”) to acquire 100% of Community First Bancshares Inc.’s (“Community First”) stock. Community First will be merged into Simmons eas) $243 million Customary regulatory and shareholder approvals 4" Qua
Slide 5: Key Transaction Assumptions
Key Transaction Assumptions 20% of Community First’s budgeted 2014 non-interest i expense Cost Savings + ~$12.0 million pre-tax + 25% phased-in in 2015; 100% thereafter One-time Merger Related Cost Loan Mark $25.8 million or 2.3% of loans ~$8 million after-tax OREO Mark $0.3 million $0.8 million to
Slide 6: Financial Impact
Financial Impact = Meaningful EPS Accretion: — 2015: ~4.8% — 2016 and thereafter: ~10% Internal Rate of Return ~18% Estimated TBV Impact: — Earn back period ~1.75 years Pro Forma Capital: - TCE /TA — Tier 1 Leverage Ratio — Tier 1 Risk-Based Capital Ratio — Total Risk-Based Capital Ratio
Slide 7: Overview of Community First
Overview of Community First a Union City, TN Year Established 1887 Branches 32 ceo John C. Clark CEO Age 683 Total Assets $1,937.3 Deposits 1,589.9 Total Loans 1,129.0 Loans / Deposits 71.0% Founded in 1887 % Core Depos 817 1.10 9% Headquartered in Union City, TN 12.76 Net interest Margin 3.50 Effic
Slide 8: Executive Management
Executive Management First State 32 Years in Banking President & Chief Executive 37 Officer John Clark HR Director, Secretary, 33 Kathy Barber Tee? Tony Gregory Chief Banking Officer 25 Executive Vice President & Chief Financial Officer ite Victor Castro Executive Vice President & 24 Chief Credit Of
Slide 9: Historical Financials
Historical Financials For the Year Ended December 31, 2011 $1,483,820 $1,655,250 $1,750,453, 981917 942,159 1273573, 1391939 ‘Tangible Common Equity 97.441 114,108 130,246 Selected Operating Ratios ‘Net income $7911 $12,901 $17,828 ROAA co 082 ROAE 657 9.55 Net Interest Margin 371 3.68 Efficiency Ra
Slide 10: Historical Balance Sheet Growth
Historical Balance Sheet Growth Deposits ($8) 7, Loans f= toans ($B) Loans/Deposits | —__Loans/Deposits(%) | CAGR: 8.2% Source: SNL Financial
Slide 11: Community First Fee Income
Community First Fee Income Saucier = SBA Lending 125% 119% = LaBK * 2013 SBA Community Bank of the Year, Largest Producer in 2013 in Tennessee Consumer Finance "Unit volume growth of 30% from 2010 - 2013 Mortgage * Operates throughout Tennessee with 25 lending officers — recent expansion in Memphis
Slide 12: Fee Income Breakdown
Fee Income Breakdown $25.0 $20.0 $15.0 $10.0 $5.0 2011 2012 2013 mother m= First Auto MSBLD SFirstState Insurance © First State Finance © First State Mortgage Note: Dollars in millions ‘Source: Company documents
Slide 13: Tennessee Deposit Market Share
Tennessee Deposit Market Share & Market Deposits Share Bank Branches _($mm) (%) First Horizon National Corp. 164 16,631 14.04 Pinnacle Financial Partners 33 4108 3.47 First South Bancorp Inc. 45 1784 1.51 Home Federal Bank of Tennessee 23 1,658 1.40 Community First 32 1508 «1.27 Wilson Bank Holding
Slide 14: Pro Forma Demographics
Pro Forma Demographics Projected Median Projected Median HHI Growth % Household Income $ (2013 - 2018) (2018) ‘Sanat BBE SFNC Community Arkansas Tennessee Pro Forma 'SFNC Community Arkansas Tennessee Pro forma Fist First Note: SFNC pro forma for recent acquisition of Delta Trust & Banking Corporatio
Slide 15: Expansion to Adjacent Markets
Expansion to Adjacent Markets : Market Highlights = Logical extension into adjacent markets Union City, Martin, Jackson, Memphis, and Dyersburg Provides an established market presence in West Tennessee Community First was founded in Union City in 1887 ‘onmualy Fist Deposit Market Share sa ‘Union iy,
Slide 16: Entrance to the Nashville MSA
Entrance to the Nashville MSA F ‘= Home to over 1.8 million people and 37,000 businesses Largest deposit market by MSA in Tennessee with over $408 billion in deposits (34.5% of the states total deposit base) Diverse economy bolstered by the music industry, healthcare, manufacturing, transportation,
Slide 17: Pro Forma Loan Composition
Pro Forma Loan Composition f- > nox 82% 90. sax 00% 5.3% sn6 09% 74% scion icrcineson en | en (1) Excludes purchase accounting adjustments Source: SNL Financial, Company Documents Note: Data as of March 31, 2014; SFC pro forma for recent Delta Trust & Banking Corporation acquisition
Slide 18: Pro Forma Deposit Composition
Pro Forma Deposit Composition ~ \ (1) Excludes purchase accounting adjustments Source: SNL Financial, Company Documents Note: Data as of March 31, 2014; SFC pro forma for recent Delta Trust & Banking Corporation acquisition
Slide 19: Credit Due Diligence
Credit Due Diligence 2 Comprehensive credit due diligence process to review Community First’s loan and OREO portfolios > Experienced loan review team, which has a good understanding of borrowers and local markets > Excellent cooperation of Community First’s management team > $475 million of loans we
Slide 20: Proven Acquirer and Integrator
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Slide 22: Summary
Summary Pro forma total assets of $6.8 billion Strategic acquisition that enhances franchise value through expansion into Tennessee Accretive to earnings per share while retaining strong capital position Integration experience and retention of local management assures low execution risk IRRs signifi
Slide 23: Acquisition of Community First Bancshares, Inc.
7 Simmons First National Corporation NASDAQ-GS: SFNC Acquisition of Community First Bancshares, Inc. May 6, 2014 First State Bb
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