Simmons First National Corporation · NASDAQ:SFNC
Simmons First National — Investor Presentation (May 2015)
29 slides from Simmons First National's investor presentation, May 4, 2015
Slide 1: Simmons First National Corporation
Simmons First National Corporation NASDAQ-GS: SFNC
Slide 2: Forward-Looking Statement
Forward-Looking Statement ded. These anticipate,” “estimate,” “expect,” “foresee,” “may,” “might,” “will,” “would,” “could” or “intend, tual results coulk Fay simmons rst, National Corporation Page2
Slide 3: Company Profile
Company Profile Ticker: SFNC _ * Since 1903 | © $8 Billion Total Assets | * 4 State Footprint Le * $1.4 Billion Market Cap * History of strong asset quality * Top 50 Agricultrure Lender in the Country @ * Top 50 SBA Lender in the Country & * Excellent non-interest income (non-banking business units)
Slide 4: Company Footprint
Company Footprint Oklahoma City “Wichita Falls fort Worth Irvinx Simmons First National Corporation e @ Memphis, ee. Atlanta PITT TTSTaOHS iN | soa Topeka - Kansas Cit @Meriand Park Olath " st ud Ks Senor GP io Louisville “Evansville fFrankdon’ 4 pee er ey Os Poplar Blutf an Page
Slide 5: Four Strategic Acquisitions
Four Strategic Acquisitions 28 “ea Closed: 9. 2014 Sytem Conversion: Os 2046 ‘Announced May 2014 Closed: Feb. 2015 ‘System Conversion: Announced: May 2014 Closed: Feb. 2015 Systern Conversion: Apr. 2015 + Section 363 Bankruptcy Purchase Price: $53.6 million (0.90X TBV) * Internal Rate of Return > 25
Slide 6: Trust Company of the Ozarks Acquisition
Trust Company of the Ozarks Acquisition $1 bi 1,300+ client base illion in assets under management Market: Southwest Missouri ‘Transaction Multiples ‘Announced: Expected closin April 2015 + Cost Savings of 15% 3.2015 + Immediately accretive to earnings : “Pee a Net Income ea Key Financial Highlights
Slide 7: First State 3+
First State 3+ M&A since 1 90: © 11 Whole bank acquisitions ° branch deal el c20 ha) ° 1Bankry os G63) 6 4RTC failed thrift, acquisitions Page7
Slide 8: Integration timeline
Sep: Dec: wo Convert MNB, i 8 Y branches vo wo Regulatory approval (Delta Trust) oo a ao File S-4 (ote Trust) File 5-4’ eo Close on Delta Trust (delta Trust Shareholder meeting) ini: EI do, & Lak v Delta Trust conversion Shareholder vo Close on na Bank eo Convert Liberty Bank Close on Trust Company
Slide 9: Regional Structure
nal Structure é i @ South AR — a Kosa ry ; © Loans e cline Mand Fa st sul) } o Deposits $1. ia oun aa toate AR Region oa $1.2B ° eee $1.88 “ei Fats 3 Northwest AR Region =i ans $0.4B © Deposits $0.68 on wort L atlanta _Blimioghom | CA @ —— Region oLons $) © Deposits Hes jement ight cata Tennessee Re
Slide 10: Market Demographics and Deposit Market Share
Market Demographics and Deposit Market Share vat mane See ee tee eel (s) {ean bis $in millions) Fay simmons rst, National Corporation Page 10
Slide 11: Non-Banking Business Units
Non-Banking Business Units 7 Simmons First Credit Cards © $171 million nationwide credit card portfolio 0 $3.ilonin see © Gross yield over 11.6% with TCO o Prof margin of 30% Simmons First Trust Company © History of excellent credit quality 4 122%net charge-off (014) mons First” Simmons First Financ
Slide 12: Revenue Opportunities
Revenue Opportu siomemann OB ADEISTNSE First Stateys “MBERTY Credit Cards Trust\Wealth Mgmt. v v ICO Investments Agriculture Lending << Ki< ix < Equipment Finance Insurance (P&C) v v Consumer Finance v SBA Lending v v ** None of our accretion estimates include the potential benefits of expanding the
Slide 13: 2014 and Q1-2015 Financial Highlights
2014 and Q1-2015 Financial Highlights GAAP Results Non-recurring items Core Results ROA, Core ROTE, Core Efficiency Ratio, Core NIM NIM, Core Q1-2015 Results {OA, Core RO” TE, Core Efficiency Ratio, Core NIM NIM, Core 13 2014 Change Change 2013 2014 Change Change nings Earnings $ % EPS EPS $ % $23,2
Slide 14: SFNC: Performance Trends
SFNC: Performance Trends = Qu-15 wi E 1 : i m1 | ron © it = E ad ee z= | i 2013 2014 Q1-is 2010 2011 2012 2013 2014 Core Efficiency Ratio Core Diluted EPS 75% | es 55% + — — — — — 2010-2011. 2012, 2018-2014. Fay simmons rst, National Corporation Page 14
Slide 15: Financial Highlights
Financial Highlights March 2013 March 2015 Actual Actual $3.58 $7.88 Loans, net of discounts $1.88 $4.68 posits $2.98 $6.38 Investment Secu folio $0.78 $1.68 LTM Core Diluted Earnings Per Share © $1.59 $2.53 Common shares outstan 16.5M 29.9M Tangible book value per share $20.73 $20.78 0.94% 0.45% TC
Slide 16: Total Deposits
Total Deposits March 31, 2015 First SFNB State Liberty SFNC (Sin miions) (Legacy) ank Bank Consolidated Non-Interest Bearing $149 $1,124 Interest Bearing Transactions 2,061 1,022 545 3,628 Time Deposits 909 431 183 1,523 Total Deposits $3,832 $1,566 $877 $6,275 Non-Interest seer eels 22% 7% 17% 18 N
Slide 17: Loan Portfolio
Loan Portfolio Total Loan Portfolio $4.6 billion March 31, 2015 Consumer Construction Aare 10% 5% Variable, Adjustable or Fixed < 1 YR Maturity 38 Fixed Rate | Commercial ‘Owner Occupied Real Estate 32% Non-owner Occupied | a {2} Simmons Bank only Fay simmons rst, National Corporation Page 17
Slide 18: Quarter over Quarter Loan Growth
Quarter over Quarter Loan Growth $in millions Q1-2014 = q-2015 ins oe Legacy Loans ® $1,780 $2,116 $336 19% cquired Loan: 450 2,418 1,968 437% quired Loan: 138 103 (35) (25%) Total Loans $2,368 $4,637 $2,269 96% (1) Acquired loans net of discounts ‘Simmons First National Corporation Page 18
Slide 19: Credit Quality: Legacy Portfolio
Credit Quality: Legacy Portfo Legacy exchides acquired loans and OREO $ in millions 2007, 2008 «= 2009S «2010S «2011 «9 2012S 2013'S 2014 ve NPLG)—SENC 0.60 0.81 1.35 1.98 1.74 1.42 1.07 0.74 0.81 NPL.) AH US Banks (7 0.93 2.19 441 4.15 4.11 3.36 2.67 2.07 (4) NPA-SENC 0.51 0.64 1.12 1.42 1.18 0.96
Slide 20: Credit Quality: Credit Card Portfolio
Credit Quality: Credit Card Portfolio 12.0% ffs) ‘Net Charge- ( rg ) 2008 “The Great Ri 10.5% 1053] 9.0% | So se 2001 Recession y = E ~/e GB] 6.0% ~/ a Zl 4.5% Mi ams 3.0% 2.1% 2.6% jt 139 1.5% — 0.0% $a 1985 1987 19891991 1953 1995 1997 1999 20012003 2005 | «200720092011 20132015 ——SFNC ~——Industry
Slide 21: Credit Quality: Consumer Finance Company
Credit Quality: Consumer Finance Company es ee Balance Charge-off ‘ ($ in mittions) % Yield ) 2006 33.3 1.23 144 2007 373 144 143 2008 477 3.16 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 50.5 1.10 12.7 Simmons First National Corporation Page
Slide 22: Credit Quality: Loan and Credit Coverage
Credit Quality: Loan and Credit Coverage $in millions SAS Coverage Legacy Loan Portfolio 2,115 Allowance for Loan Loss (29) 1.4% Loans acquired, 2,491 Loan discount (73) 2.9% L ired, 127 Loan Discount (24) 18.9% Total Loans, before discounts 4,733 (126) 2.7% Fay simmons rst, National Corporation Pag
Slide 23: Consistent Dividend History
Consistent Dividend Histo FAY sisamons First National Corporation, Page 23
Slide 24: One Year Total Shareholder Return
1 Year Total Shareholder Return {Dividends + Stock Appreciation) AN/14— 3/31/15 30 7 SFNC 424.6% SNL U.S. Bank Index +3.9% ri 20 3 d g 5 [<4 g al -10 Mar-14 Jun-14 Sep-14 Dec-14 “15, ——SFNC_ ——SNLU.S. Bank Fay siznmons First National Corporation Source: SNL Financial Page 24
Slide 25: Long-term Shareholder Return
Long-term Shareholder Return (Dividends + Stock Appreciation} Pre-economic downturn 12/31/07 - 3/31/15 150 SFNC +11 SNL U.S. Bank Index 100 i -50 n prhevnd Nagano -100 7 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 yec-13 Dec-14 —SFNC_ —SNLU.S, Bank Fay simmons rst, National Corporation Source: SNL Fin
Slide 26: Investment Profile
Investment Profile SFENC Market Data as of 3/31/15 Stock Price 52 week price range $34.62 - $46.38 Common Shares Outstanding 29.8 million Market Capitalization $1.4 billion % Institutional Ownership ~28% % Index Ownership “9% Valuation & Per Share Data Price / LTM EPS 17.8x Price / 2015 EPS 14.6x Pr
Slide 27: Strategic Focus
Strategic Focu = "Table Stakes" Asset Quality Regulatory Compliance ntegration of acquisitions = Brandi $10 billion threshold Acquisitions = Non-banking - investments, i Fay simmons rst, National Corporation Page 27
Slide 28: M&A accretion
&A accretion e coined efficiency initiatives Organic legacy loan growth “ Rising interest rates Exceptional balance sheet Attractive dividend yield Committed to delivering a sophisticated and diverse range of products with the service level of a community ban Page 28 Simmons First National Corporati
Slide 29: Simmons First National Corporation
Simmons First National Corporation NASDAQ-GS: SFNC
Simmons First National — Investor Presentation (May 2015) on 6ix