Simmons First National Corporation · NASDAQ:SFNC
Simmons First National — Investor Presentation (August 2016)
31 slides from Simmons First National's investor presentation, Aug 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 Profile * Ticker: SFNC * $7.5 Billion Total Assets ¢ $1.4 Billion Market Cap ¢ 4State Footprint * Since 1903 ° History of strong asset quality ui * Excellent non-interest income (non-banking business units) * Converted from a National Charter to a State/Fed Member Charter (narch 2016) * Rank
Slide 4: Company Footprint
Company Footprint fi x @ ge. Kansas City Nc ie es eee ee ATE ., Kansas i = ey Wichit ° Mis i S ene | ¢, Missouri ~ 6 hes Ed eo ® Springfield ¥ ||. joke p vs Ls wes DF. SReurion ety avast iy ee Oa aT % . _o Vea e one a mm ©. Arkansas Memphis = Mico 3 e Bs - ‘Pine Blut oo 2 | adn “(i ee woes = } 3 ed
Slide 5: Acquisition of Citizens National (announced 5/18/16)
Acquisition of Citizens National (announced 5/18/16) Citizens National Footprint Overview Founded in 1908 Headquartered in Athens, TN = Located half-way between Knowle MSA and Chattanooga MSA Operates 9 branches in East Tennessee Wealth management, retail brokerage, and insurance lines of business =
Slide 6: Citizens National - Transaction Highlights
Citizens National - Transaction Highlights + Expected Financial Impact: Accretive to Book value immediately il 7: ‘ Accretive to Tangible book value in less than 3 years Financiall . i 5 y ‘ Dilutive to 2016 GAAP EPS by 2%, after transaction costs Attractive + Accretive to 2016 Core EPS by 1%, exclu
Slide 7: Citizens National - Transaction Overview
nal - Transaction Overview * Simmons First National Corporation (“Simmons”) to acquire 100% of the stock of Citizens National Bank * Citizens National Bank will be merged into Simmons Bank during the fourth quarter of 2016 * Deal value: Approximately $77.0 million Purchase Price * Consideration: $40
Slide 8: Four Strategic Acquisitions
Four Strategic Acquisitions Metropolitan National Bank] Near Gf Neigh Announced: Sep. 2013 Closed Nov. 2013 System Conversion: Mer. 2014 DELTATRUST. Announced: ‘Mar. 2014 Closed: Aug. 2014 System Conversion: Oct 2044 First State ‘Announced May 2014 Closed: Feb. 2015, System Conversion: S Announced M
Slide 9: Proven Acquirer and Integrator
Proven Acquirer and Integrator sr tn TRAN First State Be M&A since 1990: © 11 Whole bank acquisitions 1 Trust Company 5 Bank branch deals (otal of 20 branches) 1 Bankruptey (363) acquisition © 4FDIC failed bank acquisitions 4RTC failed thrift acquisitions FAY simmons First National Corporation Page
Slide 10: Regional Structure
Regional Structure one “Tennessee & \ \ \ \ {} Arkansas Region Missouri/Kansas Region {3} Tennessee Region o Loans $233 o Loans $1.33 © Loans o Deposits $3.6B o Deposits $1.0B 0 Deposits ‘Simmons First National Corporation
Slide 11: Market Demographics and Deposit Market Share
Market Demographics and Deposit Market Share = 2 22 2 02 im Market Coes es ee ere meee ee Arkansas Major MSAs SE Eaton source: SNLFinani ogo
Slide 12: Non-Banking Business Units
Non-Banking Business Units 7 Simmons First Credit Cards © $171 million nationwide credit card portfolio © Loan yield with fees over 13.5% © History of excellent credit quality Simmons First Mortgage Company © ~$600 million mortgage originations © ~70% purchase vs. 30% refinance (_) Simmons WEALTH MA
Slide 13: Financial Highlights (2015 and Q2-16)
Financial Highlights (2015 and @2-16) 2015 (YTD) 2014 2015 Change Change 2014 2015 Change Change Earnings Earnings $ % EPS EPS $ % GAAP Results $35.7 $74.1 $38.4 108% $2.41 $2.63 $052 25% Non- recurring items 3.0 15.5 125 0.18 0.55 037 Non-GAAP Core Results $38.7 $89.6 $50.9 132% $2.29 $3.18 $089 39
Slide 14: SFNC: Performance Trends
SFNC: Performance Trends GAAP mCore 1.40 120 sas ee 22 1.00 4 | 0.80 |____ — 4 L o76 on™ 0.60 4 | 4 : 4 / 0.40 = — = 2011 2012, 201320142015 2-46 YTD Efficiency Ratio {%) 75 70 | 65 r im 4 67.2 55 i 4 - 4 - - 4 50 2011 2012, 2013, 2014-2015 2-46 YTD GAAP mCore 16.00 14.00 = 12.00 4 1000 | __________
Slide 15: Financial Highlights
Financial Highlights Pre-acquisitions (June 2013) compared to June 2016 June 2013 June 2016 Actual Actual Assets $3.4B $7.5B Loans, net of discounts $1.98 $5.08 Deposits $2.88 $6.08 Investment Security Portfolio $0.78 $1.58 LTM Diluted Earnings Per Share $1.65 $3.02 LTM Core Diluted Earnings Per Sha
Slide 16: Loan Portfolio
Loan Portfolio AR $2.38 46% TN $1.08 20% MO\ks $1.33 26% Other $0.48 8% Variable, Adjustable or Fixed < 1 YR Maturity oo Fixed Rate 64% ‘Owner Occupied 43% Non-owner Occupied 57% Total Loan Portfolio $5.0 billion June 30, 2016 Credit Card Consumer Construction Agricultural 38 % —— 7% 4% Ss = Single-
Slide 17: Linked Quarter Loan Growth
Linked Quarter Loan Growth SieniGone Cr a2 A % 2016 2016 Change Change Legacy Loans (includes acquired migrated) $3,473 $3,725 $252 7.3% Acquired Loans, net of discounts 1,457 1,289 (168) (11.5%) Total Loans, net of discounts $4,930 $5,014 $84 1.7% Fay simmons Eirst National Corporation Page 17
Slide 18: Credit Quality: Legacy Loan Portfolio
Credit Quality: Legacy Loan Portfolio Excludes acquired loans Data in 98 2007 2008 2009 2010 2011 2012 2013 2014 2015 we NPL -SENC 060 O8f 135 198 174 142 107 074 068 1,47 NPL —All US Banks () 093 219 441 415 411 336 267 207 1.71 NPA~SFNC O51 064 112 171 152 1.61 1.91 130 089 1.13 NPA ~ All US Banks
Slide 19: Credit Quality: Credit Card Portfolio - History of Strong Asset Quality
Credit Quality: Credit Card Portfolio 60 ~ History of Strong Asset Quality = (Net Charge-offs) 10.5% N a 9.0% “ e Sl 7.5% 4 8 3] O] 6.0% 21 Re =< S 4994 45% | |—} rd _ 3.0% =a se 3.0% L— YN 13% 1.5% =~ — 1K 0.0% +— — — — — ——— 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007-2009 2011-201
Slide 20: Credit Quality: Loan and Credit Coverage
Credit Quality: Loan and Credit Coverage Actual $ in millions Coverage 6/30/16 es Legacy Loan Portfolio 3,725 Allowance for Loan Loss (33.5) 0.9% Loans acquired 1,328 Loan discount/acquired ALLL (39.2) 3.0% Total Loans, before discounts 5,053 Total allowance for loan loss and loan discount (72.8) 1.
Slide 21: Consistent Dividend History
Consistent Dividend Histo | 07 Consecutive = $1.00 tou $0.96 Current Dividend Yield 2% Dividend Payout Ratio) 29% $098 ge] $0.80 so7e 076 $076 $076 & é i 3 tone 2 | $0.60 + $057 a | son z 4 tose 5 sous y $040 2 $0.40 so26 g eens 2 $028 li $0.20 T 4 a T r 7 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 “aa
Slide 22: 1 Year Total Shareholder Return
1 Year Total Shareholder Return (Dividends + Stock Appreciation) TA/MS — 6/30/16 30 | SFNC 0.3% 25 | SNL Mid Cap U.S. Bank Index 6.0% 20 15 10 Total Return (% Jul-2015 Oct-2015 Jan-2016 Apr-2016 —SFNC —SNL Mid Cap Bank
Slide 23: 5 Year Total Shareholder Return
Year Total Shareholder Return (Dividends + Stock Appreciation) TA/N3 — 6/30/16 140 120 SFNC 86% SNL Mid Cap U.S. Bank Index 29% 100 80 60 Total Return (% 40 20 0 -20 | r ; . oe ep Po : Sr a rr a ae en
Slide 24: Long-term Shareholder Return
Long-term Shareholder Return (Dividends + Stock Appreciation) Pre-economic downturn 12/31/07 — 6/30/16 200 150 SFNC +119% SNL Mid Cap U.S. Bank Index -19% Total Return (% -100 7 ; - Dec-2007 Dec-2008 Dec-2009-Dec-2010-Dec-2011 Dec-2012--Dec-2013 ~~ Dec-2014~——Dec-2015 —SFNC —SNL Mid Cap Bank
Slide 25: Investment Profile
Investment Profile SENC Market Data as of 6/30/16 Stock Price $46.19 52 week price range $38.30 - $58.75 Common Shares Outstanding 30.4 million Market Capitalization $1.4 billion % Institutional Ownership ~53% Valuation & Per Share Data Price / LTM EPS (as of 6/30/16) 16.3x Price / LTM Core EPS (as
Slide 26: Strategic Focus
6 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 into
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 yiel
Slide 28: Appendix
APPENDIX National Corporation
Slide 29: Appendix: Non-GAAP Reconciliations
Appendix : Non-GAAP Reconciliations Simmons First National Corporation Reconciliation Of Non-GAAP Financial Measures 2011 2012 2013 2014 2015 yID 22015 _Q2.2016 Calculation of ROA Netincemeavalable to comma stocLlers s Ss nee s $ Netoonrecuriag tems, net of aces, asonent Core earings z z Average tot
Slide 30: Appendix: Non-GAAP Reconciliations
Appendix : Non-GAAP Reconciliations ns First National Corporation lation Of Now-GAAP Financial Measures 203 2020120 ais gz201s _gr2016 FAY simmons First National Corporation Page 30
Slide 31: Appendix: Non-GAAP Reconciliations
Appendix : Non-GAAP Reconciliations ‘Simmons First National Corporation Reconciliation Of Non-GAAP Financial Measures ge2s 922016 June 2016 Actual June 2013 Actual Actus Fay simmons First National Corporation Page 31
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