Simmons First National Corporation · NASDAQ:SFNC
Simmons First National — Investor Presentation (February 2015)
26 slides from Simmons First National's investor presentation, Feb 11, 2015
Slide 1: Investor Presentation
Investo r Presentation N AS D A Q - GS: SFNC
Slide 2: Forward-looking statements
Certain statements contained in this presentation m a y not be based on his t orica l fact s an d ar e “for w ard - looking statements” within the meaning of Sec t ion 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities E x change Act of 1934, as ame n ded. These for w a
Slide 3: Simmons First Profile
□ Tic k er : SFNC □ $8 Billion in ass e ts (1) □ In business since 1903 □ 4 S ta t e P r o F o rm a F ootpri n t (1) (Ar k ansas, K ansas , Missouri an d T ennessee) □ $185 million n a tio n wid e C r edi t Ca r d P o rt f olio □ E x c e lle n t earning asse t (11.6 % loa n yiel d wit h f ees) an d
Slide 4: 2014 Highlights
□ GAAP EP S of $2.11, up 49% (Q4 $0.72, up 213%) □ Co r e EP S of $2.29, up 36% (Q4 $0.64, up 33%) □ Ne t I n t e r e s t Ma r gin of 4.47% ( c o r e NIM 3.81%) □ T o t a l Loans up $333 million, inc r eas e of 14% □ Le g ac y Loans up $311 million, an inc r eas e of 20% □ Co n t inued s t r ong Ass
Slide 5: Delta Trust acquisition
• Hig h single - digi t EP S accretion • Internal rate of return of 22% • Cost savings of 35% of non - interest expense • Lo w multipl e o f trailin g earning s (15.5x) Strategi c Acquisition Financially Attractive • In - marke t transaction • Familia r custome r base • Comprehensiv e du e diligenc
Slide 6: Liberty Bank acquisition
• Meaningfu l EP S accretion • Internal rate of return ~19% • Cost savings of 30% of non - interest expense • Lo w multipl e o f trailin g earning s (13.1x) Strategi c Acquisition Financially Attractive • Simila r culture s an d operatin g styles • Familia r markets • Retentio n o f loca l managemen
Slide 7: First State acquisition
• Doubl e digi t EP S accretion • Internal rate of return of approximately18% • Cost savings of 20% of non - interest expense • Lo w multipl e o f trailin g earning s (12.4x) Strategi c Acquisition Financially Attractive • Simila r culture s an d operatin g styles • Retentio n o f loca l managemen t
Slide 8: Footprint & Regional Structure
Footprin t & Regiona l Structure South AR Region $0.6 B Loans $1.1 B Deposits NWA AR Region $0.5 B in Loans $0.6 B in Deposits Central \ NE AR Region $1.3 B Loans $1.9 B Deposits Missouri \ Kansas Region $1.1 B Loans $1.3 B Deposits Tennessee Region $1.1 B Loans $1.6 B Deposits 8
Slide 9: Timeline for Integration
Timelin e fo r Integration 2014 Mar: Apr: M a y: Jun: Jul: Co n v er t MN B , i n t eg r a t e 35 b r anches and clos e 27 b r anches R egul at o r y filing s (Char t e r Consolid at io n & Del t a T ru s t ) Co n v er t 3 char t e r s (SF B- N E A , SF B- Searc y , & SF B-Hot Springs) R egul at o r
Slide 10: Proven Acquirer and Integrator
Prove n Acquire r and Integrator 20 1 4 20 15 10
Slide 11: Pro Forma Balance Sheet
Pr o Form a Balanc e Sheet Source : S - 4 file d wit h SE C a s o f 6/30/14 11 SFNC Standalone Combined Pr o Forma Balanc e Shee t Data: $ in thousands, except per share Cas h an d Cas h Equi v alents $422,660 $681,984 Securities 1,070,299 1,880,475 Gros s Loans 2 ,389,333 4,568,538 T ota l A ssets
Slide 12: Pro Forma Income Statement
Pr o Form a Incom e Statement Source: S - 4 filed with SEC full - year 2013 TB U – SFN C a s o f 2013 (BF / DG) 12 SFNC Standalone Combined Pr o Forma $ in thousands, except per share (1 ) Core EPS excludes SFNC’s nonrecurring items. □ 2013 P r o F o r m a does N O T include a n y a n ticip a t ed c
Slide 13: Revenue Opportunities
Revenue Opportunities Credi t Cards T r u s t I nv e stments Agri Lending Equipmen t Finance Insu r ance Consume r Finance SBA Lending □ None of our acc r e tion e s tim a t e s include the po t e n tial ben e fits of e xpanding these business lines 13
Slide 14: Investment Profile
Investmen t Profile (1) based on most recent analyst consensus estimates 14 SFNC Standalone SFNC Pr o Forma Market Data as of 2/6/15 Valuation & Per Share Data Commo n Share s Outstanding 18. 1 million 29. 7 million Mar k e t Capitalization $73 1 million $1. 2 billion % Institutiona l Ownersh i p 43
Slide 15: Why Simmons First?
▪ Multiple p a th s t o abo v e av e r a g e earning s g r owth □ M&A acc r e t ion, co s t s a ving s and r e v enue enhanceme n ts □ Co n t inue d e fficienc y initi a ti v es □ O r g a nic le g a cy loa n g r owth □ Risin g i n t e r e s t r a t es ▪ Experienced an d deep mana g e me n t ▪ E x ce
Slide 16: Supplemental Information
Supplemental Information 16
Slide 17: Loan Growth (Quarter over Quarter)
Loa n Growt h (Quarte r ove r Quarter) (1) Acquire d loan s ne t o f credi t mark (2) Growt h o f $21 4 millio n o r 12% excludin g acquire d migrate d loans ( 2) 17 $ in millions Q4 2014 Q4 2013 $ Change % Change Legac y Loans $2,054 $1,742 $312 18% Acquire d Loans , FDI C C ov ere d ( 1) 108 147 (
Slide 18: Combined Loan Portfolio
Combine d Loa n Portfolio Cons truction 7% 18 Single- F a mily R e s id e n ti al 26% Comme r c ial R e al E state 41% Comme r c ial 13% Agricultu r al 3% Consumer 10% Other 0% a s o f 12/31/14
Slide 19: Combined Deposits
Combine d Deposits a s o f 12/31/14 19 Cos t o f Interes t Bearin g Deposit s (MRQ ) 0.37% 0.64% 0.35% 0.44% ( $ i n millions) Simmons First First State Liberty Bank Pro Forma Non - Interes t Bearing 908 110 76 1,094 Interes t Bearin g T r ansactions 2,006 939 631 3,576 Time Deposits 965 450 189 1,6
Slide 20: Exceptional Asset Quality
SFNC Legacy Portfolio Exclude s Acquire d L oans and Acquired OREO “Grea t Recession” (1) Source : SN L Financial (2) E xclude s Credi t Car d Charge - offs (3) Include s TDRs Exceptiona l Asse t Quality 20 2007 2008 2009 2010 2011 2012 2013 Q414 NP A – SFNC 0.51 0.64 1.12 1.12 1.18 0.96 0.66 0.54 N
Slide 21: Pro Forma Loan and Credit Coverage
Pro Forma Loan and Credit Coverage $ i n millions 21 Estimated as of 12/31/14 SFNC First State & Liberty Bank Pro Forma Coverage Tota l Loan s (befor e discounts) 2,815 1,959 4,774 T ota l Allo w anc e an d Credi t Mark (107) (44) (151) 3.2% Legac y Loans 2,054 2,054 Allo w anc e fo r L oa n Loss (2
Slide 22: Credit Card Portfolio
0 . 0 0 % 6 . 0 0 % 3 . 0 0 % 9 . 0 0 % 1 2 . 0 0% 8 5 8 7 8 9 9 1 9 3 9 5 9 7 9 9 0 1 0 3 0 5 0 7 0 9 1 1 13 Industr y source : Federa l Reserv e Board Credi t Car d Portfolio History of Strong Credit Quality (Net Charge - offs) Indust r y 2.89% SFNC 1.27% 1991 Recession 2001 Recession “The Great R
Slide 23: Consistent Dividend History
$0.80 $0.60 $0.40 $0.20 $0.00 $1.00 ' 9 7 ' 9 8 ' 9 9 ' 0 0 ' 0 1 ' 0 2 ' 0 3 ' 0 4 ' 0 5 ' 0 6 ' 0 7 ' 0 8 ' 0 9 ' 1 0 ' 1 1 ' 1 2 ' 1 3 ' 1 4 ' 1 5 Consisten t Dividen d History Current Dividend Yield 2.3% ($0.9 2 pe r share) 23
Slide 24: 1-Year Total Return
1 - Yea r Tota l Return (Dividends + Stock Appreciation) 1/1/1 4 – 12/31/14 SFNC +11.9% SNL Bank Ind e x +11.8% Source : SN L Financial 24
Slide 25: Long-term Total Return
Since the Beginning of this Economic Cycle 12/31/0 7 – 12/31/14 SFNC +86.9% SNL Ban k Ind e x 1.5% Long - ter m Tota l Return (Dividends + Stock Appreciation) Source : SN L Financial 25
Slide 26: Pine Bluff Corporate Headquarters
N AS D A Q - GS: SFNC Pin e Bluf f – C o r po r at e Headqua r te rs Littl e Roc k Corp o r at e O ffice
Simmons First National — Investor Presentation (February 2015) on 6ix