Simmons First National Corporation · NASDAQ:SFNC
Simmons First National — Merger or Acquisition (July 2019)
20 slides from Simmons First National's merger presentation, Jul 31, 2019
Slide 1: Acquisition of The Landrum Company
July 31, 2019 Nasdaq: SFNC Acquisition of The Landrum Company
Slide 2: Forward-Looking Statements
Forward - Looking Statements Certain statements contained in this presentation may not be based on historical facts and are “forward - looking statements” with in the meaning of the Private Securities Litigation Reform Act of 1995. These forward - looking statements may be identified by reference to
Slide 3: Important Additional Information and Where to Find It
Important Additional Information and Where to Find It This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitatio n o f any vote or approval with respect to the proposed Transaction. No offer of securities shall be made except by mean
Slide 4: Pro Forma Footprint & Landrum Highlights
OK SC KY TN MO CO AR Lincoln Kansas City Jefferson City Tulsa Houston San Antonio Austin Tampa Knoxville Chattanooga Nashville Atlanta Memphis St. Louis Springfield Wichita Denver Little Rock Dallas New Orleans Oklahoma City AL FL GA IL IN IA KS LA MS NE NM NC OH TX VA WV El Paso Charlotte Cincinnat
Slide 5: Overview of The Landrum Company
Source: S&P Global Market Intelligence and Company documents Data as of or for the six months ended 6/30/19 (1) Excluding restructured loans Overview of The Landrum Company Landrum Footprint Financial Highlights 5 Landrum (39) Franchise Overview • Family owned community bank operating in three regio
Slide 6: Strategic Acquisition
Note: FDIC deposit data as of 6/30/18 Strategic Acquisition St r a t egi c Value • Enhances scale in North Texas and expands footprint from DFW to Oklahoma City • Expands presence in Central and Southern Missouri, while giving SFNC the 2 nd largest deposit market share in the attractive Columbia, MO
Slide 7: Transaction Overview
(1) Pricing data based on SFNC’s closing price of $25.01 as of 7/29/19. Excludes conversion of preferred stock. (2) Based on Landrum’s tangible common equity as of 6/30/19 (3) Based on Landrum’s estimated earnings of $32.7M for 2019E (4) Core deposits calculated as total deposits less jumbo time dep
Slide 8: Transaction Consequences
Transaction Consequences 8 Key Transaction Impacts (Expected) Regulatory Capital Impact SFNC 6/30/19 Pro Forma 2020E / 2021E EPS Accretion ~6% / ~8% IRR ~24% TBV Dilution (%) ~(3.7%) TBVPS Earnback Period ~3 years Tier 1 Leverage Ratio 8.9% 8.5% Common Equity Tier 1 Ratio 9.8% 9.8% Tier 1 Risk - Bas
Slide 9: Key Transaction Assumptions
Note: All assumptions are estimates Key Transaction Assumptions Cost Savings • Cost savings of 35% with 65% being achieved in Year 1, and 100% thereafter Revenue Enhancements • None included in projections One - time Merger Related Costs • Approximately $28.0 million pre - tax Loan Mark • $27.8 mill
Slide 10: Comprehensive Credit Due Diligence
Comprehensive Credit Due Diligence 10 • Comprehensive due diligence process coordinated and led by Simmons’ experienced M&A team • Strong credit culture closely aligned with Simmons’ underwriting • Loan and OREO portfolios reviewed by experienced loan review team with knowledge and understanding of
Slide 11: Proven Acquiror and Integrator
Proven Acquiror and Integrator 2013 - 2014 2016 2017 2015 2019 Metropolitan National Bank Arkansas Total Assets $920,000,000 November 2013 Delta Trust & Banking Corp. Arkansas Total Assets $420,000,000 August 2014 Community First Bancshares Tennessee Total Assets $1,915,000,000 February 2015 Liberty
Slide 12: Community Banking Structure
Note: Loan and Deposit pro forma balances as of 6/30/19 (1) Includes a small presence in Illinois Community Banking Structure 12 AR Loans $2.5B Deposits $4.0B TX Loans $4.2B Deposits $2.4B OK \ KS \ CO Loans $2.2B Deposits $2.6B MO (1) Loans $3.4B Deposits $3.4B TN Loans $1.6B Deposits $2.1B Pro For
Slide 13: Summary
(1) Source: S&P Global Market Intelligence, excludes foreign - based banks, thrifts, and non - bank holding companies Summary 13 • Meaningful entrance into new markets within footprint that complement existing commercial banking teams • Similar cultures and business models expected to enable smooth
Slide 14: Supplemental Information
Supplemental Information 14
Slide 15: Columbia, MO Market Overview
Columbia, MO Market Overview Source: S&P Global Market Intelligence, Columbia Regional Chamber of Commerce, Bureau of Labor Statistics, Columbia Chamber o f Commerce, demographic data deposit weighted by county as of 6/30/19, REDI Columbia Fact Book, Columbia Daily Tribune (1) Columbia Daily Tribune
Slide 16: Sherman and Denison, TX Market Overview
Sherman and Denison, TX Market Overview Source: S&P Global Market Intelligence, Bureau of Labor Statistics, demographic data deposit weighted by county as of 6/30/18 , Herald Democrat (1) Herald Democrat (2) Based on May 2019 Bureau of Labor Statistics U.S. not seasonally adjusted figure of 3.6% and
Slide 17: Pro Forma Loan Composition
Source: S&P Global Market Intelligence and Company documents Data bank level as of 6/30/19 Pro Forma Loan Composition 3 % SFNC Landrum Pro Forma Loans ($mm) Loans ($mm) Loans ($mm) 17 C&D $291 14.1 % 1-4 Family 597 29.0 Multifamily 60 2.9 Owner-Occupied CRE 248 12.1 Non Owner-Occupied CRE 276 13.4 C
Slide 18: Pro Forma Deposit Composition
Pro Forma Deposit Composition 3 % SFNC Landrum Pro Forma Deposits ($mm) Deposits ($mm) Deposits ($mm) Source: S&P Global Market Intelligence and Company documents Data bank level as of 6/30/19 18 Demand Deposits 209$ 7.0 % NOW Accounts 90 3.0 Money Market & Savings 1,819 61.3 Retail Time Deposits 54
Slide 19: Pro Forma Deposit Composition by State
Pro Forma Deposit Composition by State 3 % SFNC Landrum Pro Forma Deposits ($mm) Deposits ($mm) Deposits ($mm) 19 39% 31% 30% Missouri 1,026$ 39.1 % Oklahoma 816 31.1 Texas 782 29.8 Total Deposits 2,624$ 100.0 % 34% 20% 17% 14% 11% 3% 1% 28% 24% 14% 17% 15% 2% 1% Arkansas 3,982$ 27.6 % Missouri (1)
Slide 20: Landrum Company Historical Balance Sheet Growth
$1,930 $2,156 $2,427 $2,569 $2,799 $3,133 $3,294 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 2013 2014 2015 2016 2017 2018 Q2 '19 $1,223 $1,324 $1,462 $1,559 $1,703 $1,975 $2,062 $0 $500 $1,000 $1,500 $2,000 $2,500 2013 2014 2015 2016 2017 2018 Q2 '19 $1,692 $1,810 $2,026 $2,270 $2,501 $2,834
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