Simmons First National Corporation · NASDAQ:SFNC
Simmons First National — Merger or Acquisition (November 2016)
23 slides from Simmons First National's merger presentation, Nov 18, 2016
Slide 1: Acquisition of Hardeman County Investment Company, Inc.
Simmons First National Corporation NASDAQ-GS: SFNC Z Acquisition of Hardeman County Investment Company, Inc. November 17, 2016
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures ertain stat tne inthis Ste bed on socal facts and are “forvarddookng statements” within the mearing of Sactn 274 ofthe Seculs Ac oF 98S, os ame, a Seton 21 othe Sec les Exchange Act of 1934, 95 amended. Tes rene may ened by reference oa fare
Slide 3: Important Additional Information and Where to Find It
Important Additional Information and Where to Find It proposed transaction. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval SHARENGLDERS OF HARDEN AR URGED TO READ Tie EECETRANON STATE NV OND. THE
Slide 4: Simmons' Current Company Profile
mmons' Current Company Profile * Ticker: SFNC * $8.2 Billion Total Assets * $1.6 Billion Market Cap * 4State Footprint * Since 1903 (Fed Member Bank) (march 206) h . . <a eiva Ranked 12’ 2 * Ranked 40" in the U.S. on ABA's list of Top 100 Farm Lenders @ * Ranked 40** in the U.S. on SBA's list of Top
Slide 5: Strong pro forma capital ratios
* Strong pro forma capital ratios ‘Simmons First National Corporation Pages,
Slide 6: Transaction Overview
Transaction Over’ ("Hardeman") second quarter of 2017 * Deal value: Approximately $72.2 million a + Fixed cash consideration: $30.0 million Purchase Price + Core deposit premium 8.8% + Customary regulatory approval + Hardeman shareholder approval * Quarter Required Approvals & Closing Valuation d d
Slide 7: Key Transaction Assumptions
Key Transaction Assumptions Cost Savings oS with + $5.3 million pre-tax per year Revenue Enhancements * None included in projections One-time Merger Related Cost * Approximately $6.0 million after-tax Loan Mark + $4.1 million 1.5% of loan: d OREO Mark * $0.5 million Core Deposit Intangible * 1.85%,
Slide 8: Estimated EPS Accretion, IRR, TBV Impact and Capital Ratios
related cost): Estimated EPS A — 2017 — 2018 and thereafter: Estimated Internal Rate of Return: Estimated TBV Impact: — Initial TBV dilution — TBV Earn back period — Deal value paid in the form of cash 1% - 2% 3% - 4% 20% Less than 3 years 42% Capital Ratios Pro Forma TCE /TA Tier 1 Leverage Ratio C
Slide 9: Due Diligence
Due Diligence *¢ hanci Jit due dili j | OREO portfolios and * Experienced loan review team, which has a good understanding of borrowers and local markets * $166 million of loan re revi d i ¢ 5 pn 100% of bal were reviewed Fay simmons erst National Corporation Page
Slide 10: Overview of Hardeman County Investment Company, Inc.
Overview of Hardeman County Investment Company, Inc. Hardeman Footprint FINANCIAL HIGHLIGHTS Headquarters Jackson TN 3 Year Established 1903 Branches 0 : 0 Hume Simmons - sh - Total Assets $461,862 “ = 4 Total Loans 260.384 © 8 Deposits a72788 6 of | Loans / Deposits wd % Core Deposits na ont % an o
Slide 11: Deposit Market Share
Deposit Market Share Tennessee Jackson, TN MSA Deposits Marker Deposits Marker Bank, Institution (Sm) _share_ Branch Bank, Institution (5mm) _share_ Branches 1 Fiat Horan National Corn sig 1a29% 182 an m00% 7 Regions Fearcil Cop. mene 6 SunTrust Banks 13436 116 2 ® Comp. « n Financia! Network nou Pr
Slide 12: Pro Forma Demographics
Pro Forma Demographics ‘Simmons First ‘17 -'22 Projected Population Growth (%) —) a= Projected 2022 Median Household Income ($) '22 Projected Median HHI Growth (%) ob National Corporation teat 0/6 ats dept weighted by county Page 12
Slide 13: Building on Existing Markets
Building on Existing Markets Market Highlights with a concentrated branch footprint Established toca ties and an established agricultural len Low risk, — efenchibe with a complem culture Hardeman County Invest De ment coer Inc. ‘eposit Market Shar ba Deposits Market «Market = County (Sm) share Rank_
Slide 14: Complementary Lines of Business and Future Expansion
Complementary Lines of Business and Future Expansion es of Business RERERTE Bratton Mortgage Banking v v Wealth Management & Trust Treasury Services ‘SBA Lending Team Insurance Credit Cards < Ee Ss Bo SN Simmons First National Corporation Page 14
Slide 15: Proven Acquirer and Integrator
Proven Acquirer and Integrator ; asin meyay y . BRED ome Fugit . FSatep M&A activity since 1991 5 FP a Wek ak seins ankruptey (363) acquisition ° p Us Company © 4FDIC failed bank aopistions o 4RTC failed thrift acquisitions Bank bran tot nt ath) Fay simmons erst National Corporation Page 15
Slide 16: Pro forma assets of $8.7 billion
* Pro forma assets of $8.7 billion * Strategic acquisition that enhances franchise value through expansion in Western Tennessee Expected to be accretive to earnings per share while retaining strong capital position * Integration experience and retention of local management helps achieve low executio
Slide 17: Supplemental Information
SUPPLEMENTAL INFORMATION
Slide 18: Pro Forma Loan Composition
Pro Forma Loan Composition SFNC Hardeman Pro Forma |) Consumer & Consumer Other other % ep % a a 13% 2s 4 Family 25% et Non Owner Occupied Occupied RE RE 2% ior 2% % Realtomily o% IE Non Owner ccnieg xe 21 | [Bb Nonowneroxcunes cxe Bs Is on ret shoe aa iB ca FY lo cu Bs la ca eon n> I Consumer tomer
Slide 19: Pro Forma Deposit Composition
Pro Forma Deposit Composition RetailTime Deposits Money Marker & Savings 71% 1m Demand Deporte 1B NOW asxount even is Accounts 3% Hardeman Now Demand Deposits 5% Accounts Pro Forma |) umbo ime Demand Deposts Deposits 6 8% Retail Time pow Accounts Deposts 10% 3% ‘Simmons First National Corporation Sk
Slide 20: Pro Forma Deposit Composition by State
Pro Forma Deposit Composition by State SFNC Hardeman Pro Forma |) ‘ans Kansas i Missouri Missouri 14% 13% lackansas 53% pckansos Tennessee 56% Tennessee 28% 32% 100% Page 20 te pestertan 3 Fay simmons erst National Corporation
Slide 21: Hardeman Historical Financials
Hardeman Historical Financials Net interest Mori Efficiency Ratio 653 es we 7 fest ot NPAS/ Asse 18% 125% 207% 18 % a7 0.49 % NPAS/ Loans + OREO 283 226 38 296 132 0.97 sevin/ ass 162 131 126 Lis 101 ast aso az 036 (oo) an a. eT 1023 % 1003 % 323% 398% 87 088% leverage Ratio 243 an 10.20 383 86 10.2
Slide 22: Hardeman Historical Balance Sheet Growth
Hardeman Historical Balance Sheet Growth Assets ($mm) Deposits ($mm) $443 gase $449 gagq S456 $460 $462 0 #2 sot 03 sas 9327 gase. $359 $357 $367 $369 $269 $382 $373 | Mtl $511 $550 5357 gg Loans a Loans aT 7 Deposits (%) ‘300 ‘s261 8282 $274 6262 re 75.0% we 728% 79, Ter oy 65.5467 2%03 2% $254 $26
Slide 23: Simmons First National Corporation
Simmons First National Corporation NASDAQ-GS: SFNC Z Acquisition of Hardeman County Investment Company, Inc. November 17, 2016
Simmons First National — Merger or Acquisition (November 2016) on 6ix