Simmons First National
Annual Report 2012

Plain-text annual report

Strength in numbers 110 years 1903 – 2013 Si m mons Fi rst Nat iona l Cor porat ion 2012 Compa ny Repor t 2012 L e t t e r t o S h a re hoL de r S Despite t he challenges and uncertainty with this economy, our financial performance was better than anticipated. in the 90th percentile, and liquidity in the 95th percentile. Like others in the banking industry, our greatest challenge has been generating top-line revenue growth, which is primarily driven by loan growth. This has certainly been a challenge since the recession because of moderate economic recovery, customer concerns about the near term growth opportunities due to our country’s level of debt Our earnings topped $27.7 million, an increase of 9% and annual deficit, and the impact from regulatory reform. on assets of $3.5 million, and an ROA of .83%. While we compared favorably to our peer, it remains below our In an effort to utilize our excess liquidity, we introduced historical performance and expectation levels, primarily several loan promotions that generated our first year- driven by historically low interest rates and a very sluggish over-year increase in legacy loans in the past three years. recovery. Obviously, there are many pieces to this puzzle; The promotions helped generate a 3% organic loan our earnings growth was a major accomplishment, but growth. As previously mentioned, we utilized a portion even more significant, is the way we achieved the growth, of our excess capital to consummate two acquisitions i.e. through the execution of our strategic plan, which that resulted in total loan growth of approximately 10%. resulted in the deployment of our excess capital in two These two acquisitions complimented our 2010 expansion FDIC acquisitions, and by continued improvement in into Missouri and Kansas by adding new locations in our asset quality numbers that were already strong. New the Kansas City MSA; Sedalia, Missouri; and St. Louis, initiatives were introduced in all eight community banks Missouri markets. Bottom line, while the economy remains that resulted in good growth in our loan portfolios and sluggish, our asset quality, efficiency initiatives, loan customer relationships. growth, and acquisitions enabled us to achieve a 9% growth in earnings and 12% growth in EPS. The additional growth Historically, one of our greatest strengths has been in our in EPS was driven by our Stock Repurchase Program, balance sheet. Our conservative culture has enabled us to which resulted in 750,000 shares being repurchased at an navigate the “great recession” and today, our regulatory average cost of $24 per share this past year. We continue capital is in the 84th percentile of our peer, asset quality to believe that our stock represents a good investment, thus J. thomaS may Chairman & Chief Executive Officer p 1p 1 we plan to continue utilizing all profits in excess of dividends I would like to express my appreciation to our Board of to repurchase shares in 2013. In addition, we are very proud Directors for executing one of the “Best Practices” in corporate of our dividend history, paying a dividend for 103 consecutive governance; succession planning. Twenty-six years ago, I was years. Currently our $.80 per share dividend produces a 3.4% given the opportunity to join Simmons First National Bank annual return based on our most recent stock price. Recently, as President and Chief Executive Officer of our lead bank our Board of Directors approved an increase of $.01 per and President of the Simmons First National Corporation. share or $.84 on an annualized basis, representing a dividend Over that period we have grown from $500 million in assets increase of 5%. and $3 million in profits to $3.5 billion in assets and $27 million in profits. This is a great example of what a team can Simmons First has expanded its footprint to 55 communities in accomplish. In 2011, my intentions to retire at the end of 2013 Arkansas, Kansas and Missouri, serving those markets through were announced. I have been blessed in so many different ways, 92 branch locations, more than 100 ATM’s and state of the art and becoming a part of the Simmons First Team has been one electronic banking. Simmons First is making it easy for our of those blessings. I am very proud of our team and all they customers to “bank their way” whether in person, by ATM, have accomplished for our stakeholders. I have valued the time online or on-the-go with our mobile banking products and working with a team that not only follows the “Do Right Rule” services. In 2012, we introduced numerous loan specials and but, more importantly, they live it. new innovative products and services such as mobile banking and mobile deposit. We truly are a community banking organization, committed to improving the quality of life in each of the communities we serve. We do so by encouraging our associates to get involved in their respective communities and we reinvest a portion of our profits in civic and community organizations that have shown they improve the quality of life. During 2012, our associates invested in excess of 30,000 hours to community service with a primary focus on making a difference. Our corporation and eight community banks contributed in excess of $1 million to various non-profit organizations to improve the quality of life. We are proud of our commitment to reward all of our stakeholders, and we believe that is why Simmons First is the bank of choice for so many people throughout our market areas. p 2 to t al a sse t s $3.5 billion S t ock holder s’ e q ui t y $406 million N e t Income $27.7 million e a r nings P er S ha r e $1.64 Incr ease in e P S o v er 2 0 11 11.6% p 3 As with all good things, if they are to continue, there must be individuals were promoted to their current positions as part of change. Now is the time for that change, which is currently the overall succession plan: David Bartlett, President and Chief underway with this transition year. It is perfect timing and the Banking Officer, overseeing all eight banks, and a member of Board of Directors, under the guidance of Dr. Harry Ryburn, our Corporate Board; Bob Fehlman, Senior Executive Vice a thirty-seven year veteran of the Board and Lead Director, President, Chief Financial Officer and Treasurer of Simmons executed what I believe is one of the most important director First National Corporation; Marty Casteel, Chairman and responsibilities in corporate governance — succession planning. Chief Executive Officer of Simmons First National Bank and It was a two-plus year process that culminated in the selection Executive Vice President of the Corporation; and Craig Hunt, of George A. Makris, Jr. as my successor. In my opinion, the President of Simmons First National Bank and Chief Lending board chose the perfect person to lead our company through Officer of the Corporation. a very important period of time in banking. Mr. Makris is uniquely qualified to deal with regulatory reform, with I think you will agree that 2012 has been a very busy year for increased emphasis on efficiency initiatives, growth through your management team and Board of Directors. I am confident acquisitions, and the vision needed to enhance shareholder that Mr. Makris and I will work hard to make the transition value with new products and services that will enhance non- transparent to our shareholders, customers, and associates. interest income. Mr. Makris was chosen to be my successor It is an exciting time in the life of Simmons First National because he knows our company, having served as a Director and Corporation, and as a shareholder, I can also say that the future Chairman of the Audit Committee for the past fifteen years, is bright under the leadership of George Makris and his team. and he is well known by our team of leaders. He is a visionary, Thank you for your investment in our company and for your being a third generation businessman and he has led a highly continued support. successful family business for over twenty years. Mr. Makris joined the company on January 1, 2013, in a newly created position of CEO-Elect. He will spend one year in transition with me and will assume the position of Chairman and CEO on January 1, 2014. He is the right person at the right time, and will lead our team of exceptional bankers, whose talents were matched up with our needs of the future. The following J. Thomas May Chairman and Chief Executive Officer p 4 s e at e d - L e f t t o R i g h t David Bartlett • George Makris • J. Thomas May • Bob Fehlman s ta n d i n g - L e f t t o R i g h t Marty Casteel • Craig Hunt p 5 Safety, soundness, longevity Financial p 6p 6 oU R s ta B iL i t Y Simmons First was founded on sound, conservative business principles. Principles that have enabled us to weather uncertain times and continue to grow. These sound business principles along with strong asset quality, consistent organic growth and our outstanding team of associates are some of the reasons we have been able to survive and prosper for 110 years. L e a de R s h iP An inspiring past, a healthy present and an exciting future characterize our company. A company built from strong leaders. Our recently announced succession plan continues this tradition of strong leaders. It is an exciting time in the life of our company and our new leadership team of experienced and talented bankers will take our company to a new level of performance. stRong asset QUaLitY SFNC Peer Group N o n - p e r f o r mi n g L o a n s a s a % o f L o a n s N e t C h a r g e - o f f s a s a % o f av e r a g e L o a n s N e t C r e d i t C a r d C h a r g e - o f f s a s a % o f C r e d i t C a r d P o r t f o lio 1.42%1 0.50%1 3.90% 2 1 Publicly traded banks with assets of $2 – $5 billion 2 most recently published industry average 0.74% 0.26% 1.50% Strength p 7 55 c o m m u n i t i e s p 8 92 f i n a n c ia l c e n t e r s s t a t e s a R Ks m o 3 C on V e n ie n C e Simmons First continues to grow and expand our footprint, reaching new customers and bringing more convenience to our existing ones. Our expansive network of 92 financial centers and more than 100 ATM’s coupled with our state-of-the-art products makes us more convenient than ever. This convenience combined with our line of competitive products and exceptional quality customer service makes us an attractive choice for customers when looking for a financial institution that can serve their needs and allow them to bank their way.  Building Relationships inno Vat ion At Simmons First we are dedicated to our community banking philosophy of always meeting our customer’s needs. To do so we must provide exceptional service while offering the very latest in competitive products. We want to make it easy to Bank Your Way with innovative services such as Mobile Banking with Mobile Deposit, Text Banking, Bank Anywhere Online Banking and Telephone Banking. p 9 1,100 a s s o c i a t e s 600 o r g a n i z a t io n s 55 c o m m u n i t ie s +29,000 voLuNteer hourS p 10 Serving our Community B a nK ing P h iL o s oP h Y – C ommUn i t Y You don’t stay in business for 110 years without being actively involved in the communities you serve and helping others along the way. In 2012, Simmons First had over 1,100 associates involved in more than 600 organizations in 55 communities, contributing over 29,000 volunteer hours. We appreciate the opportunity our customers give us to serve them. It is a privilege that we don’t take lightly and we are always focused on offering them the very best in competitive products and delivering unsurpassed quality customer service. We realize that we’re not just closing a home loan, we’re helping to fulfill a dream. We’re not just providing a business loan, we’re helping to build a future. Helping our customers with products and services that meet their needs and reach their financial goals is something we’re committed to doing each and every day. p 11 Simmons First National Corporation Board of Directors Eugene Hunt • Harry L. Ryburn • J. Thomas May • George A. Makris, Jr. • Sharon L. Gaber, Ph.D. Seated (left to right) StaNdING Edward Drilling • Robert L. Shoptaw • Steven A. Cossé • William E. Clark, II (left to right) W. Scott McGeorge • Henry F. Trotter, Jr. • Jerry Watkins s t Rong Re gUL at oRY C a P i ta L 19.08% 20.34% 10.81% 10.00% 8.00% 5.00% 4.00% 6.00% 4.00% lever age r atio tier 1 capital r atio total risk- based capital r atio reg ula t or y m inim um reg ula t o r y “ W ell - C a pi t ali z ed ” S immons F ir s t N a t ional C or por a t ion p 12 WiLLiam e . CLaRK , ii geoR ge a . m aKRis, JR. Chairman & Chief Executive Officer CEO-Elect Advisory Director henRY f. tR otteR , JR. Clark Contractors, LLC Simmons First National Corporation President Trotter Auto Group Consultant to the Board JeRRY WatKins Retired Executive Murphy Oil Corporation ste Ven a . Cossé J. t homas m aY President & Chief Executive Officer Chairman & Chief Executive Officer Murphy Oil Corporation Simmons First National Corporation edWaRd dRiLL ing President AT&T Arkansas shaRon L. g aBeR, Ph.d . Provost & Vice Chancellor For Academic Affairs University of Arkansas eUgene hU nt Attorney Hunt Law Firm W. sC ott mCgeo Rge President Pine Bluff Sand & Gravel haRRY L. R YBURn, d .d.s. Retired Orthodontist RoB eRt L. s hoP taW Chairman of the Board Arkansas Blue Cross and Blue Shield Re Wa Rd ing s h a Re hoL de R s t hR oUgh d i V ide nd s 104 $0.84 3.4% consecutive y e ars of pay ing dividends to our sharholders per share annualized dividend pay ment (beginning of 2013) annual return to our shareholders (based on recent stock price) p 13 Corporate Executive Officers L e f t t o R i g h t maRt Y CasteeL Executive Vice President & Secretary BoB f ehLman Senior Executive Vice President, Chief Financial Officer & Corporate Treasurer daVid BaRt Lett President & Chief Banking Officer RoBeRt d iLL Executive Vice President & Marketing Director 110 yearS oF exPerIeNCe WIth SImmoNS FIrSt p 14 p 14p 12 Shareholders may obtain a copy of the Company’s annual report as filed with the Securities and Exchange Commission (Form 10-K) by writing to Marty D. Casteel, Secretary, Simmons First National Corporation, P. O. Box 7009, Pine Bluff, Arkansas 71611-7009, or on the Company’s website at simmonsfirst.com. Simmons First National Corporation is an Equal Opportunity Employer. p 15 Affiliate Executive Officers s e at e d - L e f t t o R i g h t BaRRY LedBetteR President & CEO, Simmons First Bank of Northeast Arkansas steVe tRU stY President & CEO, Simmons First Bank of Hot Springs tom sP iLLYaRds CEO, Simmons First Bank of Northwest Arkansas fReddie BLaCK Chairman & CEO, Simmons First Bank of South Arkansas s ta n d i n g - L e f t t o R i g h t RoB eRt RoB inson, i V President & CEO, Simmons First Bank of El Dorado CRaig hU nt President, Simmons First National Bank maRt Y CasteeL Chairman & CEO, Simmons First National Bank BRooKs d aVis President & CEO, Simmons First Bank of Searcy Ron JaCKson Chairman & CEO, Simmons First Bank of Russellville a ne t WoRK of 8 C ommUni t Y B a n K s Simmons First National Bank (Pine Bluff, Little Rock, Ft. Smith, Kansas & Missouri) Simmons First Bank of Northeast arkansas Simmons First Bank of Northwest arkansas Simmons First Bank of el dorado p 16 t o t al asse t s in millio ns $2,082 $351 $244 $224 Simmons First Bank of South arkansas Simmons First Bank of russellville Simmons First Bank of hot Springs Simmons First Bank of Searcy t o t al asse t s in millio ns $192 $191 $176 $152 p 17 Corporate Senior Management s e at e d - L e f t t o R i g h t shaRon B URdine Senior Vice President & Human Resources Director gLenda t oLson Executive Vice President, Operations amY Johnson Senior Vice President & Assistant Marketing Director s ta n d i n g - L e f t t o R i g h t tina gR oVes Senior Vice President & Manager Corporate Audit & Compliance daVid g aRneR Senior Vice President, Controller & Chief Accounting Officer Lisa hU nteR Senior Vice President, eBanking, Cash Management & Retail Delivery KeVin aRC heR Senior Vice President, Special Services p 18 simmons f iR st n ationaL CoRP oR ation Kevin J. Archer Senior Vice President, Special Services J. Thomas May Chairman & Chief Executive Officer Sharon K. Burdine Senior Vice President & Human Resources Director George A. Makris, Jr. CEO-Elect Tina M. Groves Senior Vice President & Manager Corporate Audit David L. Bartlett President & Chief Banking Officer Robert A. Fehlman Senior Executive Vice President, & Compliance Lisa W. Hunter Senior Vice President, eBanking, Cash Management Chief Financial Officer & Corporate Treasurer & Retail Delivery Marty D. Casteel Executive Vice President & Secretary Robert C. Dill Executive Vice President & Marketing Director David W. Garner Senior Vice President, Controller & Chief Accounting Officer Amy W. Johnson Senior Vice President & Assistant Marketing Director simmons f iR st n ationaL B anK David C. Bush Senior Vice President, Bank Card Marty D. Casteel Chairman & Chief Executive Officer Joel W. Cheatham Senior Vice President, Mortgage Banking N. Craig Hunt President & Corporate Chief Credit Officer Joe W. Clement, III President, Simmons First Trust Company, N. A. Robert C. Dill Executive Vice President, Marketing Group Shirley E. Crow Senior Vice President, Manager Glenda K. Tolson Executive Vice President, Secretary & Cashier, of Loan Administration Operations Group Lisa W. Hunter Senior Vice President, Consumer Banking Group David W. Garner Senior Vice President, Controller Amy W. Johnson Senior Vice President, Marketing Group Craig S. Attwood Senior Vice President, Indirect Lending Richard W. Johnson President, Simmons First Investment Group W. Greg Bell Senior Vice President, Commercial David W. Rushing Senior Vice President, Operations Group & Agriculture Loans simmons f iR st n ationaL B anK R egions Arkansas CentRaL aRK ansas Region Steven C. Wade Community Chairman C. Adam Mitchell Community Executive ConWaY aRK ansas Region Ritchie D. Howell Community President noR th aRK ansas Region Stephen J. Smith Community President Donald L. Britnell Community Executive WesteRn aRK ansas Region Michael F. Flynn Community President Charles J. Brown Senior Vice President Kansas Patrick J. Anderson Kansas Chairman Kansas CitY Kansas Region Patrick J. Anderson Kansas Chairman Paul S. Baker Senior Vice President Cris D. Smith Senior Vice President saLina Kansas Region Chris Yohe Community Executive WiChita Kansas Region Andrea Scarpelli Community President Missouri Larry L. Bates Missouri Chairman sPRingfieLd m issoUR i Region Jefferson C. McNatt Community President Joseph B. Renner Senior Vice President st. L oU is m issoUR i Region Erik Beishir Community President simmons f iR st BanK of eL doR ado simmons f iR st BanK of noR thWest aRK ansas Robert L. Robinson, IV President & Chief Executive Officer Thomas W. Spillyards Chief Executive Officer L. S. Brown Senior Vice President Dennis H. Ferguson President A. J. Lockwood, Jr. Senior Vice President Linda A. Hankins Senior Vice President simmons f iR st BanK of hot sPRings David L. Bartlett Chairman C. Jeremy Woody Senior Vice President simmons f iR st BanK of RUsseLLViLL e Steven W. Trusty President & Chief Executive Officer Ronald B. Jackson Chairman & Chief Executive Officer Christopher W. White Senior Vice President R. Scott Hill Community President-Russellville Denton Tumbleson Community President-Clarksville simmons f iR st BanK of noR theast aRK ansas Barry K. Ledbetter President & Chief Executive Officer simmons f iR st BanK of s eaRCY Wayne F. Bond Kent P. Bridger Tony L. Futrell Senior Vice President Senior Vice President Senior Vice President Brooks Davis Matt Boyd President & Chief Executive Officer Senior Vice President Jerry K. Morgan Senior Vice President simmons f iR st BanK of s oUth aRK ansas Freddie G. Black Chairman & Chief Executive Officer Tommy R. Jarrett President Linda S. Moreland Senior Vice President Teresa L. Wood Senior Vice President p 19 Affiliate Board of Directors simmons f iR st n ationaL BanK Mark Shelton, III Board of Directors David L. Bartlett President & Chief Banking Officer Simmons First National Corporation Marty D. Casteel Chairman & Chief Executive Officer Simmons First National Bank Dean Chambliss Owner H & D Farms N. Craig Hunt President Simmons First National Bank Met L. Jones, II General Manager Dickey Machine Works John Lytle, M.D. Orthopedic Surgeon South Arkansas Orthopedic Center Johnny McGraw Owner McGraw Farms Beverly Morrow Vice President TLM Management A.W. Nelson, Jr. President A.W. Nelson, Jr. Architect, P.A. Mary Pringos President Phillips Planting Co., Inc. H. Glenn Rambin President R and R Farms Clifton Roaf, D.D.S. Dentist Adam B. Robinson, Jr. President Ralph Robinson & Son, Inc. Harry L. Ryburn, D.D.S. Retired Orthodontist p 20 Clarence Roberts, III Mayor Retired President City of Charleston Roberts Brothers Tire Service, Inc. President M.A. Shelton Farming Company, Inc. H. Ford Trotter, III General Manager Trotter Auto Group Advisory Directors Robert E. Dreher, Jr. Partner Dreher & Sons Phyllis S. Thomas Secretary/Treasurer Harbor Oaks Advisory Director Emeritus Joe S. Hiatt Retired Banker/Rancher ConWaY aRK ansas Region Advisory Board of Directors Steve W. “Bo” Conner Partner Conner & Sartain, P.A. WesteRn aRK ansas Region Advisory Board of Directors Michael F. Flynn Community President Robert L. Robinson, IV President & Chief Executive Officer Simmons First Bank of El Dorado Western Arkansas Region Floyd M. Thomas, Jr. Simmons First National Bank Partner Joe S. Hiatt Retired Banker/Rancher Margie Hiatt Retired Banker Sherman Hiatt Clay Hiatt Investments Joe Larkin Pharmacist/Owner Medi-Sav Pharmacy Thomas, Hickey & Shepherd, LLP Attorneys Larkin M. Wilson, III, D.D.S. Dentist Jennifer K. Wylie President, The Eagle Foundation Executive Advisor, Hope Landing, Inc. simmons fiR st BanK of hot s PRings Board of Directors Sara Barnett CPA Consultant David L. Bartlett simmons fiR st BanK of e L doR ado Chairman Board of Directors Aubra Anthony, Jr. Simmons First Bank of Hot Springs Stuart A. Fleischner, D.D.S. President & Chief Executive Officer Co-owner Anthony Forest Products Company Hot Springs National Park Dental Group David L. Bartlett Ritchie Howell President & Chief Banking Officer James B. Newman Community President Simmons First National President Conway Arkansas Region Corporation Simmons First National Bank Douglass-Newman Insurance Agency Steven A. Cossé Bill Johnson President & Chief Executive Officer Lance A. Porter, D.D.S. Retired Community Chairman Murphy Oil Corporation Owner Conway Arkansas Region Porter Dental Health Clinic, P.A. Simmons First National Bank T. Alan Gober Charles Nabholz Chairman The Nabholz Group CPA Sam P. Stathakis, Jr. Evers, Cox & Gober P.L.L.C. President Phil Herring President Merritt Wholesale Distributors Steven W. Trusty Phillip Stone, M.D. Herring Furniture Company President & Chief Executive Officer President Simmons First Bank of Hot Springs Conway Emergency Physicians Denny McConathy Group Steven C. Wade Community Chairman Central Arkansas Region Retired President Cross Oil and Refining Company, Inc. Kenneth P. Oliver, Jr. Simmons First National Bank Retired President El Dorado Glass & Mirror Company, Inc. Advisory Directors Louis F. Kleinman Chairman Falk Supply Company Gene Thomason Retired President Simmons First Bank of Russellville Advisory Director Emeritus John D. Selig Sonya Jones Retired Nick J. Nabholz Simmons First Bank of Russellville Business Development Officer Nabholz Construction simmons f iR st BanK of s eaRCY Advisory Director Gene Thomason Retired President N. Craig Hunt President Simmons First National Bank Tommy R. Jarrett President Simmons First Bank of South Arkansas Board of Directors David L. Bartlett President & Chief Banking Officer Simmons First National Corporation Beverly Mihalyka Secretary/Treasurer Chicot Irrigation, Inc. Richard Cargile Owner Cargile Insurance Agency Jerry Selby Partner Four Star Partnership Farms Brooks Davis President & Chief Executive Officer Simmons First Bank of Searcy Harold Smith President & Chief Executive Officer Silviland, Inc. Dennis R. Donovan Consultant Thomas W. Spillyards Chief Executive Officer Simmons First Bank of Northwest Arkansas James L. Tull, CPA Chief Financial Officer Crafton, Tull, Sparks & Associates Advisory Director Martin Gilbert Retired Attorney simmons f iR st BanK of RUsseLLViLL e Board of Directors Leon Anderson Retired Vice President Weyerhaeuser simmons fiR st BanK of noR theast aRK ansas Board of Directors David L. Bartlett President & Chief Banking Officer Simmons First National Corporation Barry K. Ledbetter President & Chief Executive Officer Simmons First Bank of Northeast Arkansas Ben Owens, Jr., M.D. Physician/Partner Clopton Clinic David Pyle, M.D. Vice President, Medical Affairs St. Bernards Regional Healthcare Jim Scurlock President Scurlock Industries of Jonesboro, Inc. Nationwide Representative Al Fowler Nationwide Insurance Company Retired Administrator Terry G. Bowie Retired Entergy Corporation Searcy Medical Center Joe Giezeman Consultant Berl A. “Skipper” Smith President Owner Keith B. Cogswell, III David Johnston Attorney/CPA Rainwater & Cox, Inc. Mark Wimpy Self Employed Farmer simmons fiR st BanK of no Rth West aRK ansas Board of Directors David L. Bartlett President & Chief Banking Officer Simmons First National Corporation Dennis H. Ferguson President Simmons First Bank of Northwest Arkansas Clark Irwin Senior Vice President of Commodity Sales Tyson Foods Cogswell Motors, Inc. Ag Chem Direct, Inc./Lake Ice Company Trish Henry President & Chief Executive Officer Robert Underwood Russellville Steel Company Owner Ronald B. Jackson Chairman & Chief Executive Officer Simmons First Bank of Russellville Allen Laws, III Attorney Laws Law Firm, P.A. Edward R. Stingley, III Real Estate Sales Associate Century 21 Harve J. Taylor Owner/President H. J. Taylor & Associates, Inc. Underwood Construction/ Underwood Properties simmons fiR st BanK of so Uth a RKansas Board of Directors Freddie G. Black Chairman & Chief Executive Officer Simmons First Bank of South Arkansas Robert G. Bridewell, Sr. Attorney Robert G. Bridewell, Sr., P.A. James Haddock Attorney James Haddock, P.A. dUmas Region Advisory Board of Directors Freddie G. Black Chairman & Chief Executive Officer Simmons First Bank of South Arkansas C. Kelly Farmer Consultant ARKAT Feeds, Inc. Martin Henry Farmer M & A Farms Guy P. Teeter Farmer Guy Teeter Farms Teresa L. Wood Senior Vice President Simmons First Bank of South Arkansas Advisory Director Emeritus A.O. French, Jr. Retired Farmer French Planting Company p 21 Financial Highlights simmons f iR st n ationaL CoRP oR ation C o Nde N S e d C o N S oL I d at e d B a L a N C e S he e t S December 31, 2012 and 2011 ( i n t h o u s a n d s) ASSETS Cash and cash equivalents Investment securities Mortgage loans held for sale and assets held in trading accounts Legacy loans Allowance for loan losses 2012 2011 $537,797 $570,206 687,483 31,591 697,656 30,517 1,628,513 1,579,769 (27,882) (30,108) Loans acquired, covered by FDIC loss share (net of discount) 210,842 158,075 Loans acquired, not covered by FDIC loss share (net of discount) 82,764 -- Net loans 1,894,237 1,707,736 FDIC indemnification asset Premises and equipment Foreclosed assets Foreclosed assets covered by FDIC loss share Goodwill and core deposit premiums Other assets Total assets 75,286 87,557 33,352 27,620 64,365 88,201 47,683 86,486 22,887 11,685 62,184 83,089 $ 3,527,489 $ 3,320,129 LIABILITIES AND STOCKHOLDERS’ EQUITY Deposits: Non-interest bearing transaction accounts $576,655 $532,259 Interest bearing transaction accounts and savings deposits 1,421,137 1,239,504 Time deposits Total deposits Other borrowings Subordinated debentures Accrued interest and other liabilities Total liabilities Stockholders’ equity Total liabilities and stockholders’ equity 876,371 878,634 2,874,163 2,650,397 89,441 20,620 90,170 30,930 137,203 140,721 3,121,427 2,912,218 406,062 407,911 $3,527,489 $3,320,129 p 22 NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 109,377 simmons f iR st n ationaL CoRP oR ation C o Nde N S e d C o N S oL I d at e d S tat e m e N t S oF IN C o m e Years Ended December 31, 2012 and 2011 ( i n t h o u s a n d s, e x c e p t p e r s h a r e d a t a) Interest income Interest expense NET INTEREST INCOME Provision for loan losses NON-INTEREST INCOME Trust income Service charges on deposit accounts Other service charges and fees Mortgage banking income Investment banking income Credit card fees Bank owned life insurance income Gain on FDIC-assisted transactions Net gain (loss) on assets covered by FDIC loss share agreements Other income TOTAL NON-INTEREST INCOME NON-INTEREST EXPENSE Salaries and employee benefits Occupancy expense, net Furniture and equipment expense Other real estate and foreclosure expense Deposit insurance Merger related costs Other operating expenses TOTAL NON-INTEREST EXPENSE INCOME BEFORE INCOME TAXES Provision for income taxes NET INCOME DILUTED EARNINGS PER SHARE 2012 2011 $129,134 $129,056 15,617 113,517 4,140 5,473 16,808 2,961 5,997 2,038 17,045 1,463 3,411 (9,793) 2,968 48,371 20,396 108,660 11,676 96,984 5,375 16,808 2,980 4,188 1,478 16,828 1,481 -- 154 4,173 53,465 66,999 65,058 8,603 6,882 992 2,086 1,896 30,275 117,733 40,015 12,331 8,443 6,633 678 2,387 357 31,094 114,650 35,799 10,425 $27,684 $25,374 $1.64 $1.47 p 23 Financial Highlights simmons f iR st n ationaL CoRP oR ation S eLe C t e d C o N So L Id at e d FI N a N C I a L d ata Years Ended December 31 (in thousands, except per share & other data) 2012 2011 2010 2009 2008 Financial Statement data: Total Assets Total Loans Total Deposits Total Equity Net Income Per share data: Diluted earnings Diluted core earnings Book value Tangible book Dividends $3,527,489 $3,320,129 $3,316,432 $3,093,322 $2,923,109 1,922,119 1,737,844 1,915,064 1,874,989 1,933,074 2,874,163 2,650,397 2,608,769 2,432,172 2,336,333 406,062 407,911 397,371 371,247 288,792 27,684 25,374 37,117 25,210 26,910 $1.64 1.59 24.55 20.66 0.80 $1.47 1.45 23.70 20.09 0.76 $2.15 1.51 23.01 19.36 0.76 11.98% 10.28% 11.33% 20.05% 21.30% 35.35% $1.74 1.74 21.72 18.07 0.76 12.00% 10.19% 11.64% $1.91 1.73 20.69 16.16 0.76 9.88% 7.89% 9.15% 17.91% 13.24% 19.17% 43.68% 14.50% 39.79% Capital ratios at period end: Stockholders’ equity to total assets 11.51% 12.29% Tangible common equity to tangible assets 9.87% Tier 1 leverage ratio Tier 1 risk-based ratio Total risk-based capital ratio Dividend payout 10.81% 19.08% 20.34% 48.78% 10.61% 11.86% 21.58% 22.83% 51.70% p 24 Annualized performance ratios: Return on average assets Return on average equity Return on average tangible equity Net interest margin Efficiency ratio Asset Quality ratios: (1) 2012 2011 2010 2009 2008 0.83% 6.77% 8.05% 3.93% 0.77% 6.25% 7.54% 3.85% 1.18% 9.69% 11.71% 3.78% 0.85% 8.26% 0.94% 9.54% 10.61% 12.54% 3.78% 3.75% 70.17% 67.86% 65.28% 65.69% 66.84% Nonperforming assets / total assets Nonperforming loans / total loans 1.29% 0.74% 1.18% 1.02% 1.12% 0.83% 1.12% 1.35% 0.64% 0.81% Allowance / nonperforming loans 231.62% 186.14% 190.17% 98.81% 165.12% Allowance / total loans Net charge-offs / average loans (2) 1.71% 0.26% Net credit card charge-offs / credit card loans 1.50% 1.91% 0.30% 2.06% 1.57% 0.52% 2.37% 1.33% 0.38% 2.61% 1.34% 0.30% 1.78% Other data: Number of financial centers 92 Number of full time equivalent employees 1,068 84 1,083 85 1,075 84 1,091 84 1,123 (1) Excludes all acquired loans, including those covered by FDIC loss share agreements, and excludes acquired foreclosed assets covered by FDIC loss share agreements, except for their inclusion in total assets. (2) Excluding credit cards. p 25 Corporate Headquarters: Little Rock Corporate Office: 501 Main Street 100 Morgan Keegan Dr., Suite 410 Pine Bluff, AR 71601 (870) 541-1000 Little Rock, AR 72202 (501) 558-3100 W W W . s i m m o n s f iR s t . C o m 

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