Simmons First National Corporation · NASDAQ:SFNC
Simmons First National — Investor Presentation (May 2016)
28 slides from Simmons First National's investor presentation, May 2, 2016
Slide 1: Simmons First National Corporation
7 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 Profi * Ticker: SFNC ¢ $7.5 Billion Total Assets ° $1.4 Billion Market Cap ¢ 4 State Footprint * Since 1903 * History of strong asset quality * Excellent non-interest income (non-banking business units) --- 32% of revenue “ * Converted from a National Charter to a State/Fed Member Charter (w
Slide 4: Company Footprint
Company Footprint od kata he “ oP °. eh iKansas,... Wichita =x. = 0 5 tn vs e 2. si a UW spesta “ok Qe fchated Mtgecy. 1e 5 eae. Arkansas: | eae gn - Rock. fain Ane Bil ™ é t ae Wats — ee iS 2 p ia ey eo EB 22°25 ton
Slide 5: Four Strategic Acquisitions
Four Strategic Acquisitions Metropolitan Nore Bat Neng Nehbory Announced Sep.201 Closed: Nov, 201 System Conversion: Mar. 2014 Announced: Mar. 2014 Closed Aug. 2014 stem Conversion: Oct. 2014 Announced: May 2014 Closed: Feb, 201: System Conversion: Sep. 2015 Announced: May 2014 Closed Feb. 2015 ‘Sys
Slide 6: Trust Company of the Ozarks Acquisition
Trust Company of the Ozarks Acquisition + 1,304 client base ‘Announced: Closed: Conversion: April 2015 Oct. 2015 * 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 /2014Revenue
Slide 7: Proven Acquirer and Integrator
Proven Acquirer and Integrator M&A since 1990: 11 Whole bank aoquisitions 1 Trust Company 5 Bank branch deals (total of 20 branches) 1 Bankruptcy (363) acquisition 4 FDIC failed bank acquisitions RTC failed thrift acquisitions Fay sisnmons First National Corporation Page7
Slide 8: Timeline for Conversion and Integration
Timeline for Conversion and Integration wo Convert MNB, integrate 35 branches and close 27 branches oe Regulatory filings (charter Consolidation & Delta Trust) eo Convert 3 legacy charters (sFa-weA, SF8-Searcy & SFB-Hot Springs) eo Regulatory approval (Delta Trust) oe Regulatory filings (First state
Slide 9: Regional Structure
Regional Structure ~_Kansas Wichita ee ps he afootens : Horst 9 gukdlisas, ae LF the ns {@} Arkansas Region 4} Missouri/Kansas Region o Loans $2.38 © Lows $1.38 © Deposits $3.68 © Deposits $1.08 4} Tennessee Region © Loans $1.08 o Deposits $1.3B FAR sisnmons. Rational Corporation Page
Slide 10: Market Demographics and Deposit Market Share
Market Demographics and Deposit Market Share Market Ce oe ie ee ee Tai als ‘Tennesice Major MSAs, REE Eration Source: S Fancal a
Slide 11: Non-Banking Business Units
Non-Banking Business Units 7 Simmons First Credit Cards > $170 million nationwide credit card portfolio © Loan yield with fees over 13% © History of excellent credit quality & LA6%onet chage-off (QU-2016) Simmons First Finance Company $50 million consumer portfolio Loan yield over 14% Good regulator
Slide 12: Revenue Opportunities
Revenue Opportunities Wealth Management Trust v Ico Investments. Insurance Private Bank Agriculture Lending <a < fey < fay < Equipment Finance Consumer Finance v Credit Cards ey SBA Lending v v “ None of our accretion estimates include the potential benefits of expanding these business lines FAR sis
Slide 13: Financial Highlights (2015 and Q1-16)
Financial Highlights (2075 and 1-16) 2015 (YTD) 2014 2015 Change Change 2014 2015 Change Change Earnings Earnings $ % EPS EPS $ % GAAP Results $35.7 $74.1 $38.4 108% $2.11 $2.63 $052 25% Non-recurring items 3.0 155 125 0.18 0.55 0.37 Core Results $38.7 $89.6 $50.9 132% $2.29 $3.18 $0.89 39% ROA, Cor
Slide 14: SFNC: Performance Trends
SFNC: Performance Trends Core ROA Core ROTCE 130% 7 16.00% cia [ ae 14.00% + si0Ke j 1 1.00% 4 12.00% y ial — 10.00% j 4 0.80% 4 | 4 pe Ga 0.7% 8.00% +} - | 4 07 | 1 . 7 oe od 0.60% 7 L en 600% atl ~ —_. i _ 2011 2012-2013, 201d 2015.6 2011 2012-2013. 201d 01S NAG Core Efficiency Ratio Core Diluted
Slide 15: Financial Highlights
Financial Highlights Pre-acquisitions (June 2013) compared to March 2016 June 2013 March 2016 Actual Actual Assets $3.48 $758 Loans, net of discounts $1.98 $4.98 Deposits $2.88 $6.18 Investment Security Portfolio $0.78 $1.58 LTM Core Diluted Earnings Per Share) $1.60 $3.22 Common shares outstanding
Slide 16: Loan Portfolio
Loan Portfolio rota AR $2.38 47% N $1.08 10% MO\KS $1.38 7% Other $0.38 6% Variable, Adjustable or ; Fixed < 1 YR Maturity She Fixed Rate 63% Owner Occupied 41% Non-owner Occupied 59% Total Loan Portfolio $4.9 billion March 31, 2016 . Consumer : ricultural__ Credit Card Construction Ag ee Ne 6% sO C
Slide 17: Linked Quarter Loan Growth
Linked Quarter Loan Growth $in millions bes a $ % 2015 2016 Change Change Legacy Loans (includes acquired migrated) $3,246 $3,473 $227 7.0% Acquired Loans, net of discounts 1,673 1,457 (216) (12.9%) Total Loans, net of discounts $4,919 $4,930 $11 0.2% Note: Seasonally adjusted (agriculture and credi
Slide 18: Credit Quality: Legacy Portfolio
Credit Quality: Legacy Portfolio Excludes acquired loans Data in % 2007 2008 ©2009 «2010 «2011 +2012 «2013. «2014S 2015 bi NPL) ~ SENG 060 O81 135 198 174 142 107 074 068 132 NPL) ~ All US Banks‘) 0.93 219 4.41 415 4.11 336 267 207-071 NPA -SFNC 051 064 112 4171 152 161 191 130 089 116 NPA ~All US B
Slide 19: Credit Quality: Credit Card Portfolio
Credit Quality: Credit Card Portfolio 12.0% History of Strong Asset Quality ° (Net Charge-offs) 10.5% 10.5% 9.0% 7.5% * -— 6.0% Net Charge-off % 4.5% 3.0% y~>\ _.. 1985 1987 1989 1991 1993 19951997 1999 2001 2003-2005 ©2007 2009 «2011-2013 «2015 QI-16 —SFNC Industry 1.5% 0.0% * Federal bankruptcy re
Slide 20: Credit Quality: Consumer Finance Company
Credit Quality: Consumer Finance Company soa net — Balance al oa Yield 2006 33.3 1.23 14.1 2007 37.3 1.44 14.3 2008 477 3.16 14.2 2010 53.0 1.80 13.4 2011 50.6 135 13.6 2012 479 1.42 13.4 2013 48.1 0.87 13.0 2014 50.5 1,10 12.7 2015 50.1 177 13.7 Q1-16 50.9 0.22 14.1 FAR sisnmons. Rational Corporati
Slide 21: Credit Quality: Loan and Credit Coverage
Credit Quality: Loan and Credit Coverage Actual $in millions Coverage 3/31/16 es Legacy Loan Portfolio 3,473 Allowance for Loan Loss (32.7) 0.9% Loans acquired 1,503 Loan discount (46.1) 3.1% Total Loans, before discounts 4,976 Total allowance for loan loss and loan discount (78.8) 1.6% oo
Slide 22: Consistent Dividend History
Consistent Dividend Histo 107 Consecutive tors | Current Dividend Yield 2% | $1.00 Dividend Payout Ratio) 30% soe oss sont sao $0.80 $076 $076 $076 $076 $0.60 s0as $0.40 i il ull $0.20 L eee ‘97 "98 99 "00 ‘O10 ‘07 08 09 "1 13°14 15 16 ‘Simmons First (1) Based on LTM core eaming
Slide 23: Year Total Shareholder Return
1 Year Total Shareholder Return (Dividends + Stock Appreciation) 4/22/15 — 4/22/16 40 SFNC 48.1% SNL Mid Cap U.S. Bank Index 45.9% Total Return -20 Apr-2015 Jul-2015 Oct-2015 Jan-2016 Apr-2016 —SFNC —SNL Mid Cap Bank
Slide 24: Long-term Shareholder Return
Long-term Shareholder Return (Dividends + Stock Appreciation) Pre-economic downturn 12/31/07 — 4/22/16 200 SFNC +121% ‘SNL Mid Cap U.S. Bank Index (16%) Total Return -100 Dec-2007 Dec-2008 += Dec-2009 = Dec-2010- Dec-2011 ©=—-iDec-2012_~—iDec-2013 © Dec-2014~——Dec-2015 —SFNC —SNL Mid Cap Bank
Slide 25: Investment Profile
Investment Profile Market Data as of 4/22/16 Stock Price 52 week price range Common Shares Outstanding Market Capitalization % Institutional Ownership Valuation & Per Share Data Price / LTM Core EPS as of 3/31/16 Price / 2016 EPS) Price / 2017 EPS) Price / Tangible Book (1) based upon analyst EPS co
Slide 26: 2016 Strategic Focus
2016 Strategic Focus = "Table Stakes” % Asset Quality Regulatory Compliance = Internal revenue opportunities = Efficiency initiatives = Branding in new markets and product enhancement = $10 billion threshold = Acquisitions "= Traditional banking - enhance current footprint and consider expanding int
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 = Experienced and deep management = Exceptional balance sheet = Consistent historical earnings performance = Attractive dividend yield
Slide 28: Simmons First National Corporation
7 Simmons First _ National Corporation NASDAQ-GS: SFNC
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