Simmons First National Corporation · NASDAQ:SFNC
Simmons First National — Investor Presentation (May 2014)
52 slides from Simmons First National's investor presentation, May 9, 2014
Slide 1: Investor Presentation 2014
Investor Presentation 2014 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. The
Slide 3: Simmons First Profile
Simmons First Profile +°$4.8 Billion in assets “In business since 1903 “3 State Footprint as Pine Bluff = Corporate He *°$180 million nationwide Credit Card Portfolio “Excellent earning asset (12.4% loan yield with fees) and strong credit quality (1.20% charge-offs) “Large Trust Presence in Arkansas
Slide 4: Q1-2014 Highlights
Q1-2014 Highlights “Core EPS of $0.46 per share (24% increase) “Continued strong Asset Quality and Capital “Net Interest Margin of 4.54% “Total Loans up $518 million or 28% = Legacy Loan Growth of 10.3% (excluding Acquired & Student) “Integration and cost savings related to Metropolitan acquisition
Slide 5: Total Assets
Total Assets 2009 2010 2011 2012 2013 2014 * (dollars in billions) * Pro Forma with Delta Trust
Slide 6: Exceptional Asset Quality
Exceptional Asset Quality ( Legacy Portfolio Excludes Acquired Loans and Acquired OREO NPL - SFNC NPL - All US Banks ©) NPA - SFNC NPA - All US Banks () Net Charge-offs - SFNC @ Net Charge-offs - All US Banks“ "Great Recession’ (1) Source: SNL Financial (2) Excludes Credit Card Charge-offs
Slide 7: Asset Quality - Credit Card
Asset Quality - Credit Card | History of Strong Credit Quality (Net Charge-offs) “The Great Recession” 1991 Recession 93 9 97 9 01 03 0 OF OO Il Industry source:
Slide 8: Strong Capital Position
Strong Capital Position & Equity to Assets 9.25% Tangible Common Equity 7.29% Tier 1 Leverage Ratio 8.21% 5.00% Tier 1 Regulatory Capital 13.36% 6.00% Total Risk Based Regulatory Capital 14.45% 10.00%
Slide 9: Top-line Revenue Growth
Top-line Revenue Growth 1. Non-interest Income Acquire Credit Card Portfolios Acquire Trust Assets in our Footprint Look at new SBU Loan Growth + Restructured 2014 Incentive Plans * Rebuilding Lending staff in FDIC acquired banks * Focus on New Markets
Slide 10: Loan Portfolio
Loan Portfolio , as of March 31, 2014 Legacy Portfolio Excludes Acquired Loans $1.8 Billion Agricultural 4% Credit Cards FDIC Covered Non-Covered
Slide 11: Loan and Credit Coverage
Loan and Credit Coverage Legacy Loans Allowance for Loan Loss Loans acquired, not covered by FDIC Credit Discount Loans acquired, covered by FDIC Credit Discount Total Loans (before discounts) Total Allowance and Credit Mark $ in millions
Slide 12: Loan Growth (Year over Year)
Loan Growth (vear over Year) Legacy Loans (exciuded student Loans) 13% Student Loans (23%) Acquired Loans, FDIC Covered* (24%) Acquired Loans, Non-Covered* 472% Total Loans 28% * Acquired loans net of credit mark 8 loan new hires in 2013 Metropol in: (4 Kansas, 3 Missouri and 1 Little Rock) New loan
Slide 13: Opportunity for Growth
Opportunity for Growth Large Metropolitan Markets Kansas City MSA 2,043,000 558,000 St. Louis MSA 2,805,000 St. Charles County 373,000 Midsize Metropolitan Markets Little Rock, AR 724,000 Northwest Arkansas (Fayetteville, Springdale, Rogers & Bentonville) 488,000 Springfield, MO 447,000 Wichita, KS
Slide 14: Mergers & Acquisitions
Mergers & Acquisitions
Slide 15: FDIC Opportunities
1 Southwest Com $100 million Assets 3 May 2010 October 2010 MISSOURI KANSAS FDIC Opportunities 2010 - Reviewed 8 Acquired 2 #3 Truman Bank #4 Excel Bank 2011 - Reviewed 2 2012 - Reviewed 9 $280 million Assets $200 million Assets Acquired 2 \ 2013 - Reviewed 1 De September 2012 MISSOURI October 20ey
Slide 16: 2013 Game Changing Acquisition
2013 “Game Changing” Acquisition = Section 363 bankruptcy Metrop: olitan * Purchase Price $53.6 m National Bank + Closing Date 11/25/13 Nearby Neighborly’ + Conversion Date 03/21/14 Assets -- $945 million Loans -- $495 million ($36 million mark or 7.3%) OREO -- $64 million ($23 million mark or 36°)
Slide 17: Strategic Acquisition
Strategic Acquisition A DELTATRUST, * Closing Bate” July2018" Delta Trust & Res k * Conversion Date Oct 2014 High Single-digit EPS accretion Internal rate of return of 22% Total Assets of $444 million Pro forma total assets of $4.8 billion In-market transition Familiar customer base Comprehensive du
Slide 18: Strategic Acquisition
Strategic Acquisition « Purchase Price $245 million First State § = Closing Date — Q4-2014 Double digit EPS accretion Internal rate of return of approximately 18% Accretive to tangible book value in ~1.75 years Total Assets of $1.9 billion (Pro forma $6.8 billion) S\ Similar cultures and operating s
Slide 19: New Focus on Traditional M&A
New Focus on Traditional M&A 1. Seller’s Price Expectation 2. Credit Mark more reasonable 3. Target Markets and Asset Size Traditional M&A Deal Pricing Target: 1. TBV Earn back period of Less Than 3 Years a) Earn back based on Target's earnings b) Would consider slightly longer for a “Franchise Deal
Slide 20: Enhancing our Footprint
Enhancing our Footprint | ll-in out of state footprint [1 Possible new market expansion
Slide 21: EFA Proven Acquirer and Integrator
EFA Proven Acquirer and Integrator
Slide 22: Shareholder Return
Shareholder Return ° Growth ° Dividends ° Stock Price
Slide 23: Consistent Dividend History
isistent Dividend Histor Current Dividend Yield 2.4% ($0.88 per share) | Hann ‘97 ‘98 "99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14
Slide 24: 2013 Total Return
2013 Total Return (Dividends + Stock Appreciation) 1MA3- 12/81/43 = SFNC (+50.99%) 60 Total Return (%) SNL US. Bank (+37.30%) SNL Bank Index Source: SNL Financial
Slide 25: Long-term Total Return
Long-term Total Return (Dividends + Stock Appreciation) Since the Beginning of this Economic Cycle 17-91" Total Return (%) sen (+67.10%) My ye iy SNL US. Bank (9.21%) PAN Fate A, finn tain pants a 2010 2011 SNL : SNL Financial Bank Index 9%
Slide 26: Why Simmons First?
Why Simmons First? Experienced and Deep Management Exceptional Balance Sheet 7 « Impressive asset quality “ Strong capital position Consistent historical earnings performance We will benefit significantly from a rising interest rate environment Attractive dividend yield Opportunistic growth strategy
Slide 27: Financial Highlights
F Financial ’ Highlights 7 Simmons First National Corporation
Slide 28: SFNC Summary
Simmons First National Corporation (SFNC) SFNC | NASDAG | Closing Price 36.74 Pine Bluff, AR 050514 ‘Simons Fest National Corporation is 9 $44 ben Arkansas based snancial oléng company conducting Krandal operations toughou ArkaNSSs, Kansas and Mssoun, The Companys ic ‘commen stock redes on he NASDAQ
Slide 29: Financial Highlights
SFNC | NASOAG | Closing Price 26.74 | 05-05-14 Simmons First National Corporation (SFNC) Financial Highlights Balance Sh Tat Net Lane TSeR Te —TOUDTT 1 TOBIOT TEBE TSTTSO) 1 HSUS70 1 B0SEES 1 91N aN D008 Teta Assuts 2Atsoue 2525708 2esta1 —2endae7 — 2928100 Soenaz2 —SsteAs2 —aszTa89 —4303,100 Total
Slide 30: Balance Sheet
Simmons First National Corporation (SFNC) SENC | NASDAQ | Closing Pree Balance Sheet Tolar Rovere assets Cosh ond Cane Ta nse) Toso Srey TaD “Trading Accourt Stes som gest daa? 5858854 7541 3978 ‘volatie for Sle Sece se2see asad aate7e a0 73 451475 105.075 200.275 Hoisto Matty Sect sige 150200 «= H7
Slide 31: Income Statement
SFNC | NASDAQ | Closing Price 36.74 | 05-05-14 Simmons First National Corporation (SFNC) Income Statement Tolar Rovere eorest come t1e0s¢ 189.071 153,362 188536 155,41 12895500 eta terest Expense 3047642946558 7642024 7,008 203058 S617 12.283 Tot trust come 5830 0.57 sano oz. 116 017" to. 49 Tu. 960
Slide 32: Income Statement Charts
Simmons First National Corporation (SFNC) SFNC | NASDAD Income Statement 8.74 | 05-05-14 Total Revenue Breakout ($M) Interest Yield/Cost (%) smevescnricesteameg Assets mem CotctenestBeampLnnies espe) SS. = oar wo | T 800 = al = 0107 562 a | on al ” Ed ‘9 sie | et = T ad 050 se i t oo 000 Earnings Pe
Slide 33: Performance Analysis
SFNC | NASDAG | Closing Price 36.74 | 05-05-14 Simmons First National Corporation (SFNC) Performance Analysis Proftabiity Ratios G6) ROM TE Te Tor To oa Ts v7 a va ROAE 1068 1124 1093 1026 954 82 625 877 538 ROACE 106s 1126 rr 1026 254 226 625 677 538 Return en Avg Tenptle Equty 1509 1580 1808 Bm 12
Slide 34: Asset Quality and Capital Adequacy
SFNC | NASDAG | Closing Pre 36.74 | 05-05-14 Simmons First National Corporation (SFNC) Asset Quality and Capital Adequacy Endof Parod Date Tae aoe —TaRTaoGs TAS TAOGS Tas Toor —TasTRoOS TAB TawS —_TaBTaOTT —_TaRIaOIe —TaRTADIS Asset Quality ($000 Nonaccra Loon Tas Te boy Tan ase Ear oat Renwoototes
Slide 35: Nonperforming Loans
Nonperforming Loans ($000) Tier 4 Capital & NPAs ($000) exces heii Sali ied biting atin aie nies its min = 400,000 ory | " Asset Quality Trends (%) Tier 1 Capital & Capital Ratios: isis unos tte ~ ‘ooo 26000 _ zaaon 7890007 Page 34
Slide 36: Deposit & Loan Composition
Simmons First National Corporation (SFNC) SENC | NASCA Deposit & Loan Composition (REG) Closing Pree 36.74 | 05.05-14 Tea TCT TESTE08. TGS TDS TERT — RTS — TART — TTT — TT — TEST Depont compen os eres arg bee epost Sate ere Saeko eae i oe flr covtoratire om oto), a oat ott Deposit & Loan Growth Depo
Slide 37: A Quarter Earnings Release
A Quarter a Earnings Release 7 Simmons First National Corporation
Slide 38: Simmons First Announces First Quarter Earnings
Simmons First __ National Corporation FOR IMMEDIATE RELEASE: April 17, 2014 SIMMONS FIRST ANNOUNCES FIRST QUARTER EARNINGS Pine Bluff, AR ~ Simmons First National Corporation (NASDAQ-GS: SFNC) today announced first quarter 2014 core earnings of $7.5 million, an increase of $1.4 million, or 23.0%, co
Slide 39: Impact of the adjustments on financial results
The impact of the adjustments on the Company’s financial results for the current reporting period is shown below: Three Months Ended (in thousands) March 31 2014 2013 Impact on net interest income $7391 $ 2,947 Non-interest income (7.441) (2,828) ‘Net impact to pre-tax income S60) $ 2 Because these
Slide 40: Credit coverage and capital
$96.5 million, for a total of $123.5 million of coverage. This equates to a total coverage ratio of 5.0% of gross loans. The ratio of credit mark to acquired loans was 14.1%.” The Company's allowance for loan losses at March 31, 2014, was 1.52% of total loans and 216% of non-performing loans. Non-pe
Slide 41: Forward Looking Statements
Forward Looking Statements Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements of this type speak only as of the date of this news release
Slide 42: Consolidated End of Period Balance Sheets
immons First National Corporation SFNC Consolidated End of Period Balance Sheets For the Quarters Ended Mar 31 Dee 31 Sep 30 Jun300 Mar31 (Unaudited) 2014 2013 2013 2013 2013 (in thousands) ASSETS Cash and non-interest bearing balances due from banks $ 48018 $ 69827 $ 37,752 $ 38,494 $ 40,006 Intere
Slide 43: Consolidated Average Quarter-to-Date Balance Sheets
immons First National Corporation SFNC Consoli Average Qi -to-Date Sheets For the Quarters Ended Mar31 Dec31_— Sep30. Jun30— Mar31 (Unaudited) 2014 2013 2013 2013 2013 (in thousands) ASSETS Cash and non-interest bearing balances due from banks $ 50,473 $ 39,067 $ 41,030 $ Interest bearing balances d
Slide 44: Consolidated Statements of Income - Quarter-to-Date
Simmons First National Corporation SFNC Consolidated Statements of Income - Quarter-to-Date For the Quarters Ended Mar31 Dec31 = Sep30)— Jun30)— Mar31 (Unaudited) 2014 2013 2013 2013 2013 (in thousands, except per share data) INTEREST INCOME Legacy loans 8 S$ 22,463 $ 22,464 $ 22331 $ 21,207 Loans a
Slide 45: Consolidated Risk-Based Capital
Simmons First National Corporation SFNC Consolidated Risk-Based Capital For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 (Unaudited) 2014 2013 2013 2013 2013 (in thousands) Tier 1 capi ‘Stockholders’ equity S$ 406,672 $ 403,832 $ 403,034 $ 401,850 S$ 406,454 ‘Trust preferred securities, net
Slide 46: Consolidated Loans and Investments
Simmons First National Corporation SFNC Consolidated Loans and Investments For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 (Unaudited) 2014 2013 2013 2013 2013 (in thousands) Legacy Loan Porth id of Period” Consumer Credit cards 3 172,609 $ 184,935 $ 177,463 $ 173,536 $171,599 Student loan
Slide 47: Consolidated Loans and Credit Coverage
Simmons First National Corporation Consolidated Loans and Credit Coverage For the Quarters Ended (Unaudited) (in thousands) LOANS Legacy loans Allowance for loan losses Legacy loans (net of allowance) Loans acquired, not covered by FDIC loss share Credit discount Loans acquired, not covered (net of
Slide 48: Consolidated Allowance and Asset Quality
Simmons First National Corporation Consolidated Allowance and Asset Quality For the Quarters Ended (Unaudited) (in thousands) Allowance for Loan Losses Balance, beginning of quarter Loans charged off Credit cards Other consumer Real estate Commercial ‘Total loans charged off Recoveries of loans prev
Slide 49: Consolidated - Net Interest Income Analysis
Simmons First National Corporation Consolidated - Net Interest Income Analysis For the Quarters Ended (Unaudited) ASSETS Earning Assets Interest bearing balances due from banks Investment securities ‘Mortgage loans held for sale Assets held in trading accounts Loans, including acquired loans Total i
Slide 50: Consolidated - Selected Financial Data
mons First National Corporation Consolidated - Selected Financial Data For the Quarters Ended (Unaudited) (Sin thousands, except share data) QUARTER-TO-DATE Diluted earnings per share Core earnings (excludes nonrecurring items) (non-GAAP) Diluted core earnings per share (non-GAAP) Cash dividends dec
Slide 51: Reconciliation of Core Earnings (non-GAAP)
Simmons First National Corporation SFNC Consolidated - Reconciliation of Core Earnings (non-GAAP) For the Quarters Ended Mar31 Dec31_— Sep30. Jun30.— Mar31 (Unaudited) 2014 2013 2013 2013 2013 (in thousands, except per share data) ATE Net Income $ 4352 $ 3,786 $ 6932 $ 6576 $ 5,937 Nonrecusring item
Slide 52: Corporate Headquarters
7 Simmons First National Corporation www.simmonsfirst.com Corporate Headquarters Little Rock Corporate Offices 501 Main Street 425 West Capitol Avenue Pine Bluff, Arkansas Little Rock, Arkansas 870) 541-1000 501) 558-3100
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