Simmons First National Corporation · NASDAQ:SFNC
Simmons First National — Merger or Acquisition (March 2014)
20 slides from Simmons First National's merger presentation, Mar 24, 2014
Slide 1: Acquisition of Delta Trust & Banking Corporation
7 Simmons First _ National Corporation NASDAQ-GS: SFNC Acquisition of Delta Trust & Banking Corporation March 24, 2014 A DELTATRUST. elta Trust &
Slide 2: Forward-Looking Statements
ct Forward-Looking Sta = Seals rien contained ia thle presentation that are net histertoal [icky should He considatad. forward eoking statements” within the meaning of the Private Sec lool ing statements mi ntified by ce eof inology, such as “anti pate,” “estimate,” “expect,” “foresee, wi woul” eoul
Slide 3: Acquisition: Financially Attractive, Low Risk, Strategic Value
uisition Financially Attractive Low Risk Profile Strategic Value igh Single-digit EPS accretion Internal rate of 224 % In-market transition Hamnilian ey stores WeBe Strong pro forma capital ratios Leverages Metropolitan acquisition Attractive market demographics Trust business of ~$ illi il Trust As
Slide 4: Transaction Overview
Transaction erview €3 j ‘ ire 100% of Delta Trust & i i Trust) stock. Delta (Simmons First National Bank). Purchase $ illi Price Required - Customary regulatory approval Approval - Delta Trust Shareholders Expected 3%! Quarter 2014 Closing
Slide 5: Key Transaction Assumptions
| Key Transaction Assumptions . 35% of Delta Trust’s core non-interest expense Cost Savings . 7 oe if million pre-tax % phased in 2015 One-time Merger Related Cost ~$4.0 million pre-tax $13.8 million or 4.3% of loans Loan Mark + 176% of Nonperforming Loans (includes TDRs) as of Q4 2013 OREO Mark $0.
Slide 6: Financial Impact
Financial Impact = Meaningful EPS Accretion: — 2015: it ion) p — Thereafter: ~7% « Internal Rate of Return ~22% = Estimated TBV Impact: — Earn back period ~3.5 years = Pro Forma Capital: —TCE/TA 7.3% — Tier 1 Leverage Ratio 8.1% — Tier 1 Risk-Based Capital Ratio 12.7% — Total Risk-Based Capital Rati
Slide 7: Delta T&B Highlights
Delta T&B Highlights Financial Highlights: = Assets - $431 mi = Loans - $319 million A DETIATRUST = Deposits - $376 million Dihes “Teese @ Bes = Equity - $41 million Franchise its: = Strong demographics = Ability to cross-sell SFNC products = Familiar customer base and markets Branches —9 = Headquar
Slide 8: Delta T&B Non-Interest Income
Delta T&B Non-Interest Income Fee Businesses Non-Interest Income / Avg Assets 2.00% = Strong Trust Department 179% 78% 179% ia = Investment broker-dealer Ne 7 150% = Enhanced Mortgage Lending jane = Addition of Insurance business tom 078K 0.75% 079% 06% oss% — o6r% = Great complement to SFNC’s i i i
Slide 9: Enhanced Fee Income
Enhanced Fee Income 7 2013 2012 Total Trust Funded 2013 Assets 2012 Loans Rank Bank (000's) Rank Company (00's) Forma 3,521,267 1 Arvest Bank 1,585,121 1 Arvest Bank 2,972,697 2 Wells Fargo 772,908 2. Simmons First 708,035 Pro Forma 634,436 3 Bank of the Ozarks 1,482,207 3 Home BaneShares 532,505 De
Slide 10: Strong Demographics
| Strong Demographics 5 Year Population Projected Median Grow’ Household Income $ (2018) ‘Oo (2013 - 2018) 3.5% 49,564 3 y ce Z 247% inl | 250% = SFNC Delta Arkansas. Proforma SFNC Delta Arkansas Proforma Source: SNL Financial
Slide 11: Little Rock MSA Expansion
| L Little Rock MSA Expansion Dep Branches _($000s)___(%) tamara oo 442,491,133 17.57, 2 tera 34 2,121,909 14.97 res Inc. 39 1,398,051 9.86. 4 ita ity Bancorp 28 1,299,693 Pro Forma aL Hames 8.96 Bank of the Ozarks I 36 6 Arvest Bank Group Inc. 28 aces 187 ‘Simmons First National Corp. 28 1014845 7.
Slide 12: Northwest Arkansas Expansion
Northwest Arkansas Expansionfg ma ae Se: Market Be Deposits share ats Rank Branches _($000s} (%) Seat Sek Gea SI 3,826,608 47.44 Wee 2. FrstSecurty Bancorp 7 eso361 822 Pro Forma 12 soon 3.78 a 2 Bankof Ameriea Corp 7 350553 369 4 White River Bancshares Co 3 e703 38 5 Banksharesof ayettevileine 8285
Slide 13: Arkansas Deposit Market Share
Arkansas Deposit Market Share jarket Deposits Share Rank Branches _($000s) (%) 1 Arvest B mr Group Inc. 120 6,360, 12.00 Z pesions fi Financial Corp. 97 =4,188,718 7.90 3 > Hom Shares Inc. oS: 826, 1¢ 7.22 fo Form: 95 3,754,1. 7.09 4 meer First National Corp. 86 3,385,582 6.39 5 First Security Banco
Slide 14: Pro Forma Loan Composition
Pro Forma Loan Composition : 40% 70% en Hconrers one e300 7 rt Bait om "ea Bias Ta Tea re THO \ SJ ) Bichites perenne aceon aciostinanes SAL Fancial of Decer smber 31, 2013
Slide 15: Pro Forma Deposit Composition
Pro Forma Deposit Composition : Then eae eee Soca Elenco snee_1s aan ae Ae wee as ae \ SJ ) Bichites pareinns aceon aciostinanes Sb NL Fractal
Slide 16: Credit Due Diligence
Credit Due Diligence portfolios local markets > team > r > Total Loan Mark Metrics: " 2.4X Al = LX NPL * 4.3% of Total Loans > > Tk n > P|
Slide 17: Proven Acquirer and Integrator
EFA rroven Acquirer and Integrator
Slide 18: Summary
Summary = Pro forma total assets of $4.8 billion = Enh titi ition in major markets = Accretive t ings per share loves A . d avicting | 1 + th kat F4 team in the market ‘i .-) tr assures low execution risk = Strong IRR = We remain well-positioned for future opportunities
Slide 19: Pro Forma Footprint
Pro Forma Footprint A DECIATRUST, @ sncbrences beta Branches
Slide 20: Simmons First National Corporation
7 Simmons First _ National Corporation NASDAQ-GS: SFNC Acquisition of Delta Trust & Banking Corporation March 24, 2014 A DELTATRUST. elta Trust &
Simmons First National — Merger or Acquisition (March 2014) on 6ix