Simmons First National
Annual Report 2013

Plain-text annual report

S I M M O N S F I R S T . C O M Continuing the Tradition 2013 company report J. Thomas May Chairman & Chief Executive Officer (1987 - 2013) It is hard to believe that twenty-seven years have passed since my arrival as President and Chief Executive Officer of Simmons First National Corporation and President of Simmons First National Bank. It has been a great opportunity to work for an extraordinary board of directors and to work with an exceptional group of associates. to our shareholders One of the things I learned early in my career was that shareholder, I am very proud of our dividend history, and we are only as good as the individuals that support I truly believe the trust you have put in our team will be us, and I have received tremendous support. It has rewarded significantly. truly been a team effort, and I have been blessed to have a great team and exceptional mentors in Mr. Louis I close by thanking our shareholders for giving me Ramsay, Mr. W. E. Ayres and Dr. Harry Ryburn, our lead encouragement and support since my arrival in 1987. director. Dr. Ryburn has provided great board leadership Likewise, I want to thank the Simmons First associates for several years, but his greatest contribution may throughout Arkansas, Missouri and Kansas for making have been in leading the CEO succession process and me look better than I deserve; that is a fact. I will look the one-year transition that followed. I do believe that forward to watching our new team introduce new one of the most important responsibilities of a board initiatives that will allow us to continue to provide of directors is selecting the CEO and providing for an exceptional quality customer service and state-of-the-art orderly transition. I applaud Dr. Ryburn and our Board products and services to our customers. As you would for the selection of George Makris as my successor, and expect, as the retiring CEO, I am proud of our history in executing the transition flawlessly. in serving our customers and rewarding our associates and shareholders. However, I am a realist, and while we G eorge Makris , C EO - Elect during 2013 , was ver y have a great reputation of being a conservative bank busy meeting our associates, customers, analyst and with an impeccably strong balance sheet with regards investors. Since June, George has worked with those to liquidity, asset quality and capital, I fully recognize individuals that report directly to him and he actually that our earnings performance has been good but led the acquisition of Metropolitan National Bank of certainly not great. I’m optimistic that this team, under Little Rock, Arkansas. Early in the transition process, the leadership of George Makris, will achieve new and I said that George Makris was “the right person at the continued success at a level that author Jim Collins right time”, and I can tell you that he has exceeded all describes as moving from “good to great”. expectations. His vision and strategic thought process has reenergized our board of directors, management I believe our best days are in front of our shareholders. team and associates. Thank you. As I conclude a for ty-two year career in banking, I can honestly say that I will miss it greatly. However, I know that there is a time when it is right to step asid e to allow fo r a n ew visio n a n d n ew e n e rgy. Th e tim e is right, an d again , G e org e is th e right person at the right time. I look forward to watching J. THOMAS MAY Chairman & Chief Executive Officer t h e n e w te a m t a ke o u r c o m p a ny to n e w l eve l s (1987 - 2013) t h ro u g h a c q u i s i t i o n s a n d o rg a n i c g row t h . A s a Simmons First National Corporation p 1 The year 2013 was an extraordinary one for Simmons First National Corporation. We completed the executive management tr a n s iti o n ; we i n te g r a te d o u r n ewe s t FDIC acquisitions in St. Louis and Sedalia, Missouri; we closed the historic purchase of Metropolitan National Bank; we began the Simmons First Foundation; we increased our annual dividend by 5% to $.84 per share; and we enjoyed appreciation in our stock price from $25.36 per share on December 31, 2012 to $37.15 per share on December 31, 2013, an increase of over 46%. George A. Makris, Jr. Chairman & Chief Executive Officer At the end of 2013 we celebrated the outstanding new regulatory changes were intended for banks career of our Chairman and CEO, Tommy May, on the much larger than Simmons , but the unintended occasion of his retirement after 27 years at Simmons. consequences have affected Simmons. We are hopeful During his tenure at the helm, Simmons grew by almost that adjustments to some of the rules and regulations 10 times in asset size and expanded from just a handful will be forthcoming as the effects are fully understood of communities in Arkansas to a footprint in three by our elected officials. states - Arkansas, Missouri, and Kansas. Core earnings exceeded $27 Million in Tommy’s final year as CEO. However, despite the increasing regulation and the We thank Tommy for his leadership and success over artificial rate environment, we remain optimistic his storied career at Simmons. We look forward to his about the future of our Company. We have a great continued involvement in all the good works done by g r o u p o f d e d i c a te d a s s o c i a te s c o m m i t te d to the Company as he assumes the Chairman’s position providing our customers with the finest service. We of the Simmons First Foundation. have new geographies which offer excellent growth The acquisition of Metropolitan National Bank is innovative ways to provide services to our customers. an exciting opportunity for Simmons in Central and And, we have the support of many, many shareholders Northwest Arkansas. The combination of Simmons whom we never take for granted. Thank you for your and Metropolitan will provide the scale necessary continued support. opportunities. We continue to search for new and to enhance our service to our customers and future customers in these two growth areas in Arkansas. We will have a resulting network of 28 locations in the Central Arkansas area and 10 locations in Northwest Arkansas conveniently located for our customers. We are proud to welcome the Metropolitan associates to our Simmons family and we all pledge to live up to our adopted mantra “nearby & neighborly”. Looking forward reminds us of significant challenges in the banking industry. Interest rates continue to remain at historical lows. Not only does this create an earnings challenge for Simmons and all banks, but it seriously restricts our ability to help manage the wealth of our customers, especially those who depend on fixed income. Regulatory changes continue to require more and more bank resources. Many of the GEORGE A. MAKRIS, JR. Chairman & Chief Executive Officer Simmons First National Corporation p 3 J. Thomas May has been called the epitome of a brilliant CEO. Bearing an encyclopedic mind for business and a yeoman’s heart for service, he leads by example. We are all better bankers, business people and community advocates thanks to his leadership and our friendship with Tommy. Tommy arrived at Simmons First in 1987. As our CEO, he guided us to unprecedented prosperity. Under his leadership, total assets grew from $527 million to $4.4 billion. For every $100 invested, our shareholders have been rewarded a return of $2,223.00, plus dividends. We have a tradition of serving our customers and shareholders and rewarding them well, and Tommy honored that tradition. Tommy May: Leaving a Legacy And yet, Tommy’s impact may be better felt beyond the world of finance. The former Marine has served on countless boards, including boards for Arkansas Blue Cross and Blue Shield, Baptist Health, University of Arkansas, Habitat for Humanity and many, many more. In 2010, he was elected to the Arkansas Business Hall of Fame and was later presented the Lifetime Achievement Award from the University of Arkansas Walton College of Business. A devoted family man, an enthusiastic Razorback fan, and a tireless community servant, Tommy may very well be the epitome of a brilliant CEO. But he’s also the epitome of a wonderful human being. We thank Tommy for his decades of service, and count ourselves blessed to call him our friend. Simmons First National Corporation p 4 TOTAL ASSETS DECEMBER 2013 JANUARY 1987 $527 million $4.4 billion p 5 aquisition timeline From 1987 to 2013, Simmons First grew by nearly 10 times its asset size. In addition, we set roots into new communities in Arkansas, Missouri and Kansas. In Tommy’s final year as CEO, Simmons First’s core earnings exceeded $27 million. First Savings Dumas Bancshares, Inc. Bank of Arkansas July 26, 1991 Financial Centers: 2 March 31, 1995 American Bancshares of Arkansas, Inc. December 9, 1998 Savers Savings Bank of Arkansas September 20, 1991 Financial Centers: 2 Lincoln Bankshares Inc. January 19, 1999 NBC Bank Corp July 9, 1999 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Dermott State Bank Bancshares, Inc. August 1, 1995 First America Savings Bank December 7, 1990 Financial Centers: 3 First Financial Banc Corporation July 17, 2000 Financial Centers: 8 Home Federal Saving Association First Bank of Arkansas, Russellville March 27, 1992 Financial Centers: 1 First Bank of Arkansas, Searcy August 1, 1997 59 co m m u n i t i e s p 6 104 f i n a n ci a l ce n te r s Cross County Bancshares, Inc. June 25, 2004 Financial Centers: 1 Excel Bank October 19, 2012 Truman Bank September 14, 2012 Alliance Bank of Little Rock Bancorporation, Inc. March 19, 2004 October 31, 2005 Financial Centers: 1 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Union Planters Corporation November 21, 2003 Financial Centers: 9 Heartland Community Bank Bancshares, Inc. July 19, 2002 Financial Centers: 1 3 s t a te s A R K S M O Southwest Community Bank May 14, 2010 Metropolitan National Bank November 25, 2013 Security Savings Bank October 15, 2010 CORE EARNINGS 2013 $27 million p 7 p 8 financial highlights Total Assets $4.4 billion Stockholders Equity $404 million Core Earnings Per Share $1.69 Stock Price Per Share $37.15 Increase from 2012 Stock Price Per Share 46% STRONG ASSET QUALITY Consistently Outperforming Our Peers SFNC Peer Group Non-performing Loans as a % of Loans 0.53% 1.42% 1 Net Charge-offs as a % of Average Loans 0.15% 0.50% 1 Net Credit Card Charge-offs as a % of Credit Card Portfolio 1.33% 3.90% 2 1 Publicly traded banks with assets of $2 – $5 billion 2 Most recently published industry average p 9 Simmons First National Corporation board of directors Seated (Left to Right) Standing (Left to Right) Eugene Hunt • Harry L. Ryburn • J. Thomas May • George A. Makris, Jr. David L. Bartlett • Sharon L. Gaber, Ph.D. Edward Drilling • Robert L. Shoptaw • Steven A. Cossé • William E. Clark, II W. Scott McGeorge • Henry F. Trotter, Jr. • Jerry Watkins p 10 DAVID L . BARTLETT President & Chief Banking Officer GEORGE A. MAKRIS, JR. Chairman & Chief Executive Officer Simmons First National Corporation Simmons First National Corporation WILLIAM E. CLARK, II Chairman & Chief Executive Officer J. THOMAS MAY Chairman & Chief Executive Officer Clark Contractors, LLC (1987 - 2013) Simmons First National Corporation STEVEN A. COSSÉ Retired President & Chief Executive Officer W. SCOTT MCGEORGE President Murphy Oil Corporation Pine Bluff Sand & Gravel EDWARD DRILLING President AT&T Arkansas HARRY L . RYBURN, D.D.S. Retired Orthodontist Advisory Director HENRY F. TROTTER, JR. President Trotter Auto Group Consultant to the Board JERRY WATKINS Retired Executive Murphy Oil Corporation ROBERT L . SHOPTAW Chairman of the Board Arkansas Blue Cross and Blue Shield SHARON L . GABER, PH.D. Provost & Vice Chancellor For Academic Affairs University of Arkansas EUGENE HUNT Attorney Hunt Law Firm 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 11 Left to Right corporate executive officers MARTY CASTEEL Executive Vice President & Secretary BOB FEHLMAN Senior Executive Vice President, Chief Financial Officer & Corporate Treasurer DAVID BARTLETT President & Chief Banking Officer ROBERT DILL Executive Vice President & Marketing Director (1966 - 2013) p 12 STRO N G R EG U L ATO RY CAP ITAL 9.22% 5.00% 4.00% 6.00% 4.00% 13.02% 13.02% 14.10% 14.10% 10.00% 8.00% LEVE R AG E R ATIO TIE R 1 CAPITAL R ATIO TOTAL RISK- BASE D CAPITAL R ATIO R e g u l ato r y M i n i m u m R e g u l ato r y “ We l l - C a p it a l ize d ” S i m m o n s F i r s t N ati o n a l C o r p o r ati o n R EWAR D I N G S HAR E H O LD E R S TH RO U G H D IVI D E N DS 105 $0.88 2.5% CONSECUTIVE YE ARS OF PAYING DIVIDEN DS TO OU R SHARHOLDERS PER SHARE AN N UALIZED DIVIDEN D PAYM ENT (beginning of 2014) AN N UAL RE TU RN TO OU R SHAREHOLDERS (based on recent stock price) p 13 affiliate executive officers Seated - Left to Right BARRY LEDBETTER President & CEO, Simmons First Bank of Northeast Arkansas STEVE TRUSTY President & CEO, Simmons First Bank of Hot Springs DENNIS FERGUSON President & CEO, Simmons First Bank of Northwest Arkansas FREDDIE BLACK Chairman & CEO, Simmons First Bank of South Arkansas Standing - Left to Right ROBERT ROBINSON, IV President & CEO, Simmons First Bank of El Dorado CRAIG HUNT President, Simmons First National Bank MARTY CASTEEL Chairman & CEO, Simmons First National Bank BROOKS DAVIS President & CEO, Simmons First Bank of Searcy RON JACKSON Chairman & CEO, Simmons First Bank of Russellville A N E T WO R K O F 7 CO M M U N IT Y BAN KS Simmons First National Bank (Pine Bluff, Little Rock, Ft. Smith, Kansas & Missouri) TOTA L A S S E T S I N M I L L I O N S $3,169 Simmons First Bank of Northeast Arkansas $348 Simmons First Bank of El Dorado $215 p 14 TOTA L A S S E T S I N M I L L I O N S Simmons First Bank of South Arkansas $199 Simmons First Bank of Russellville $187 Simmons First Bank of Hot Springs $168 Simmons First Bank of Searcy $152 p 15 corporate senior management Seated - Left to Right GLENDA TOLSON Executive Vice President, Operations DAVID GARNER Executive Vice President, Controller, Chief Accounting Officer & Investment Relations Officer K. KISH IVEY Senior Vice President, Corporate Compliance Manager Standing - Left to Right AMY JOHNSON Senior Vice President & Marketing Director TINA GROVES Senior Vice President & Manager Corporate Audit & Compliance LISA HUNTER Senior Vice President, eBanking, Cash Management & Retail Delivery KEVIN ARCHER Senior Vice President, Special Services SHARON BURDINE Senior Vice President & Human Resources Director p 16 executive management Simmons First National Corporation J. Thomas May Simmons First National Bank Marty D. Casteel Chairman & Chief Executive Officer (1987 - 2013) Chairman & Chief Executive Officer George A. Makris, Jr. N. Craig Hunt Chairman & Chief Executive Officer President & Corporate Chief Credit Officer David L. Bartlett Robert C. Dill President & Chief Banking Officer Executive Vice President, Marketing Group (1966 - 2013) Robert A. Fehlman Glenda K. Tolson Senior Executive Vice President, Chief Financial Executive Vice President, Secretary & Cashier, Officer & Corporate Treasurer Operations Group Marty D. Casteel David W. Garner Executive Vice President & Secretary Senior Vice President, Controller Robert C. Dill Craig S. Attwood Executive Vice President & Marketing Director (1966 - 2013) Senior Vice President, Indirect Lending David W. Garner W. Greg Bell Executive Vice President, Controller, Senior Vice President, Commercial & Agriculture Loans Chief Accounting Officer & Investment Relations Officer Kevin J. Archer Senior Vice President, Special Services David C. Bush Senior Vice President, Bank Card Joel W. Cheatham Sharon K. Burdine Senior Vice President, Mortgage Banking Senior Vice President & Human Resources Director Joe W. Clement, III Tina M. Groves President, Simmons First Trust Company, N. A. Senior Vice President & Manager Corporate Audit & Compliance Shirley E. Crow Senior Vice President, Manager of Loan Administration Lisa W. Hunter Senior Vice President, eBanking, Cash Management Lisa W. Hunter & Retail Delivery K. Kish Ivey Senior Vice President, Consumer Banking Group Amy W. Johnson Senior Vice President, Corporate Compliance Manager Senior Vice President, Marketing Group Amy W. Johnson Richard W. Johnson Senior Vice President & Marketing Director President, Simmons First Investment Group David W. Rushing Senior Vice President, Operations Group p 17 executive management (continued) Simmons First National Bank Regions Arkansas Steven C. Wade Arkansas Regional Chairman Simmons First Bank of El Dorado Robert L. Robinson, IV President & Chief Executive Officer A. J. Lockwood, Jr. Senior Vice President CENTRAL ARKANSAS REGION C. Adam Mitchell Community President Simmons First Bank of Hot Springs David L. Bartlett Chairman Christopher W. White Senior Vice President Steven W. Trusty President & Chief Executive Officer CONWAY ARKANSAS REGION Ritchie D. Howell Community President NORTH ARKANSAS REGION Stephen J. Smith Community President Donald L. Britnell Community Executive WESTERN ARKANSAS REGION Michael F. Flynn Community President Cindy Baswell Senior Vice President Simmons First Bank of Northeast Arkansas Barry K. Ledbetter President & Chief Executive Officer Mark Morrow Wayne F. Bond Kent P. Bridger Tony L. Futrell Community President – Paragould Senior Vice President Senior Vice President Senior Vice President Simmons First Bank of Northwest Arkansas Dennis H. Ferguson President & Chief Executive Officer Erica H. Preston Senior Vice President Kansas Patrick J. Anderson Kansas Regional Chairman C. Jeremy Woody Senior Vice President KANSAS CITY KANSAS REGION Patrick J. Anderson Kansas Regional Chairman Simmons First Bank of Russellville Ronald B. Jackson Chairman & Chief Executive Officer Paul S. Baker Senior Vice President R. Scott Hill Community President-Russellville Jeffery C. Smith Senior Vice President Denton Tumbleson Community President-Clarksville SALINA KANSAS REGION Chris Yohe Community Executive Simmons First Bank of Searcy Brooks Davis President & Chief Executive Officer WICHITA KANSAS REGION Andrea Scarpelli Community President Matt Boyd Senior Vice President Simmons First Bank of South Arkansas Freddie G. Black Chairman & Chief Executive Officer Tommy R. Jarrett President Missouri Larry L. Bates Missouri Regional Chairman Brian A. Hargis Senior Vice President Linda S. Moreland Senior Vice President Teresa L. Wood Senior Vice President SEDALIA MISSOURI REGION Roger C. Austin Community President SPRINGFIELD MISSOURI REGION Jefferson C. McNatt Community President ST. LOUIS MISSOURI REGION Larry L. Bates Missouri Regional Chairman ACQUIRED ASSET MANAGEMENT Charles J. Brown Senior Vice President Joseph B. Renner Senior Vice President p 18 affiliate board of directors SIMMONS FIRST NATIONAL BANK Mary Pringos President Ritchie Howell SIMMONS FIRST BANK Community President OF EL DORADO Phillips Planting Co., Inc. Conway Arkansas Region Simmons First National Bank Board of Directors David L. Bartlett President & Chief Banking Officer Simmons First National H. Glenn Rambin President R and R Farms Board of Directors Aubra Anthony, Jr. President & Chief Bill Johnson Retired Community Chairman Executive Officer Conway Arkansas Region Anthony Forest Corporation Clifton Roaf, D.D.S. Simmons First National Bank Products Company Dentist Marty D. Casteel Chairman & Chief Executive Officer Adam B. Robinson, Jr. Chairman Emeritus President The Nabholz Group Charles Nabholz Simmons First National Bank Ralph Robinson & Son, Inc. David L. Bartlett President & Chief Banking Officer Simmons First National Phillip Stone, M.D. Corporation Dean Chambliss Harry L. Ryburn, D.D.S. President Owner H & D Farms N. Craig Hunt President Retired Orthodontist Conway Emergency Steven A. Cossé Mark Shelton, III President Physicians Group Retired President & Chief Steven C. Wade Murphy Oil Corporation Executive Officer M.A. Shelton Farming Arkansas Regional Chairman Simmons First National Bank Company, Inc. Simmons First National Bank T. Alan Gober CPA Met L. Jones, II General Manager H. Ford Trotter, III General Manager WESTERN ARKANSAS REGION Evers, Cox & Gober P.L.L.C. Advisory Board of Directors Dickey Machine Works Trotter Auto Group Michael F. Flynn Community President Phil Herring President John Lytle, M.D. Advisory Directors Western Arkansas Region Herring Furniture Company Orthopedic Surgeon Clarence Roberts, III Simmons First National Bank South Arkansas Orthopedic Retired President Center Roberts Brothers Tire Joe S. Hiatt Denny McConathy Retired President Service, Inc. Retired Banker/Rancher Cross Oil and Refining Johnny McGraw Owner McGraw Farms Beverly Morrow Vice President TLM Management A.W. Nelson, Jr. President Company, Inc. Phyllis S. Thomas Margie Hiatt Secretary/Treasurer Retired Banker Robert L. Robinson, IV Harbor Oaks Advisory Director Emeritus Mayor Sherman Hiatt President & Chief Executive Officer Simmons First Bank Joe S. Hiatt City of Charleston of El Dorado Retired Banker/Rancher Clay Hiatt Floyd M. Thomas, Jr. CONWAY ARKANSAS REGION Investments Partner Thomas, Hickey A.W. Nelson, Jr. Architect, P.A. Advisory Board of Directors (Elected January 9, 1995 - Steve W. “Bo” Conner Joe Larkin & Shepherd, LLP Attorneys deceased January 22, 2014) Partner Pharmacist/Owner Conner & Sartain, P.A. Medi-Sav Pharmacy p 19 affiliate board of directors Larkin M. Wilson, III, D.D.S. Steven W. Trusty Dentist President & Chief Executive Officer Jim Scurlock President James L. Tull, CPA Chief Financial Officer Scurlock Industries Crafton, Tull, Sparks Jennifer K. Wylie Simmons First Bank of Jonesboro, Inc. & Associates President, The Eagle of Hot Springs Foundation Berl A. “Skipper” Smith Advisory Director Executive Advisor, Hope Advisory Director Attorney/CPA Martin Gilbert Landing, Inc. Gene Thomason Retired President Rainwater & Cox, Inc. Retired Attorney Advisory Director Simmons First Bank of Mark Wimpy SIMMONS FIRST BANK Kenneth P. Oliver, Jr. Russellville Retired President Self Employed Farmer OF RUSSELLVILLE El Dorado Glass & Mirror Advisory Director Emeritus Board of Directors Company, Inc. John D. Selig SIMMONS FIRST BANK Leon Anderson Retired Vice President OF NORTHWEST Nationwide Representative SIMMONS FIRST BANK Weyerhaeuser ARKANSAS Nationwide Insurance Company OF HOT SPRINGS Board of Directors OF NORTHEAST David L. Bartlett President SIMMONS FIRST BANK Board of Directors Keith B. Cogswell, III Sara Barnett CPA Consultant David L. Bartlett Chairman ARKANSAS President & Chief Cogswell Motors, Inc. Banking Officer Board of Directors Simmons First National Trish Henry David L. Bartlett President & Chief Banking Officer Corporation President & Chief Executive Officer Dennis H. Ferguson Russellville Steel Company Simmons First Bank Simmons First National President & Chief of Hot Springs Corporation Executive Officer Ronald B. Jackson Simmons First Bank Chairman & Chief Stuart A. Fleischner, D.D.S. Barry K. Ledbetter of Northwest Arkansas Executive Officer Co-owner President & Chief Simmons First Bank Hot Springs National Park Executive Officer Clark Irwin of Russellville Dental Group Simmons First Bank Senior Vice President James B. Newman Tyson Foods Attorney President Ben Owens, Jr., M.D. Laws Law Firm, P.A. of Northeast Arkansas of Commodity Sales Allen Laws, III Douglass-Newman Physician/Partner Sonya Jones Insurance Agency Clopton Clinic Retired Harve J. Taylor Owner/President Lance A. Porter, D.D.S. David Pyle, M.D. Nick J. Nabholz H. J. Taylor & Associates, Inc. Owner Vice President, Medical Affairs Business Development Officer Porter Dental Health Clinic, P.A. St. Bernards Regional Nabholz Construction Healthcare Erica H. Preston Advisory Director Gene Thomason Retired President Sam P. Stathakis, Jr. President Senior Vice President Simmons First Bank Merritt Wholesale Distributors Simmons First Bank of of Russellville p 20 Northwest Arkansas SIMMONS FIRST BANK Robert G. Bridewell, Sr. Guy P. Teeter OF SEARCY Attorney Farmer Robert G. Bridewell, Sr., P.A. Guy Teeter Farms Board of Directors David L. Bartlett President & Chief Banking Officer Simmons First National Corporation James Haddock Teresa L. Wood Attorney Senior Vice President James Haddock, P.A. Simmons First Bank of South Arkansas N. Craig Hunt President Advisory Director Emeritus Richard Cargile Owner Simmons First National Bank A.O. French, Jr. Retired Farmer Cargile Insurance Agency Tommy R. Jarrett French Planting Company Brooks Davis President & Chief Executive Officer President Simmons First Bank of South Arkansas Simmons First Bank of Searcy Beverly Mihalyka Dennis R. Donovan Consultant Joe Giezeman Consultant David Johnston Owner Secretary/Treasurer Chicot Irrigation, Inc. Jerry Selby Partner Four Star Partnership Farms Harold Smith President & Chief Ag Chem Direct, Inc./Lake Executive Officer Ice Company Silviland, Inc. Robert Underwood DUMAS REGION Owner Advisory Board of Directors Underwood Construction/ Freddie G. Black Underwood Properties Chairman & Chief Executive Officer SIMMONS FIRST BANK Simmons First Bank OF SOUTH ARKANSAS of South Arkansas 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 p 21 financial highlights SIMMONS FIRST NATIONAL CORPORATION CO N D EN S ED CO N SO LI DATED BAL AN C E S H EE TS December 31, 2013 and 2012 (In thousands) ASSETS Cash and cash equivalents Investment securities Mortgage loans held for sale and assets held in trading accounts Legacy loans Allowance for loan losses Loans acquired, not covered by FDIC loss share (net of discount) Loans acquired, covered by FDIC loss share (net of discount) 2013 2012 $ 539,380 $ 537,797 957,965 18,472 1,742,638 (27,442) 515,644 146,653 687,483 31,591 1,628,513 (27,882) 82,764 210,842 Net loans 2,377,493 1,894,237 FDIC indemnification asset Premises and equipment Premises held for sale Foreclosed assets not covered by FDIC loss share Foreclosed assets covered by FDIC loss share Goodwill and other intangible assets Other assets Total assets LIABILITIES AND STOCKHOLDERS’ EQUITY Deposits: 48,791 119,614 19,466 64,820 20,585 93,878 122,636 75,286 87,557 -- 33,352 27,620 64,365 88,201 $ 4,383,100 $ 3,527,489 Non-interest bearing transaction accounts $ 718,438 $ 576,655 Interest bearing transaction accounts and savings deposits 1,862,618 Time deposits Total deposits Other borrowings Subordinated debentures Accrued interest and other liabilities Total liabilities Stockholders’ equity 1,116,511 1,421,137 876,371 3,697,567 2,874,163 117,090 20,620 143,991 89,441 20,620 137,203 3,979,268 3,121,427 403,832 406,062 Total liabilities and stockholders’ equity $ 4,383,100 $ 3,527,489 p 22 SIMMONS FIRST NATIONAL CORPORATION CO N D EN S ED CO N SO LI DATED STATEM ENTS O F I N CO M E December 31, 2013 and 2012 CORE EARNINGS (1) GAAP EARNINGS (In thousands, except per share & other data) 2013 2012 2013 2012 Interest income Interest expense NET INTEREST INCOME Provision for loan losses NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES $143,113 $129,134 $143,113 $129,134 12,263 15,442 12,263 130,850 113,692 130,850 4,118 4,140 4,118 15,617 113,517 4,140 126,732 109,552 126,732 109,377 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 5,842 18,815 3,458 4,592 1,811 17,372 1,319 -- 5,473 16,808 2,961 5,997 2,038 17,045 1,463 -- (16,188) 3,788 40,809 (9,793) 2,968 44,960 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 74,078 10,034 7,623 1,337 2,482 -- 66,999 8,603 6,882 992 2,086 -- 5,842 18,815 3,458 4,592 1,811 17,372 1,319 -- (16,188) 3,595 40,616 74,078 10,034 7,623 1,337 2,482 6,376 Other operating expenses 32,242 30,275 32,882 TOTAL NON-INTEREST EXPENSE 127,796 115,837 134,812 5,473 16,808 2,961 5,997 2,038 17,045 1,463 3,411 (9,793) 2,968 48,371 66,999 8,603 6,882 992 2,086 1,896 30,275 117,733 INCOME BEFORE INCOME TAXES Provision for income taxes 39,745 12,133 38,675 11,805 32,536 9,305 40,015 12,331 CORE EARNINGS (1) NET INCOME $27,612 $26,870 $23,231 $27,684 DILUTED CORE EARNINGS PER SHARE (1) $1.69 $1.59 DILUTED EARNINGS PER SHARE $1.42 $1.64 (1) “Core earnings” and “diluted core earnings per share” are financial measures that exclude nonrecurring items such as gains on FDIC-assisted transactions and merger related costs. We believe these non-GAAP financial measures provide a meaningful base for period-to-period and company-to-company comparisons, which will assist investors and analysts in evaluating the core operating results of the Company and predicting future performance. p 23 financial highlights SIMMONS FIRST NATIONAL CORPORATION S ELEC TED CO N SO LI DATED FI NAN C IAL DATA Years Ended December 31 (In thousands, except per share & other data) 2013 2012 2011 201 0 20 09 Financial Statement data: Total assets Total loans Total deposits Total equity Core earnings (1) Per share data: Diluted earnings Diluted core earnings (1) Book value Tangible book Dividends Capital ratios at period end: $4,383,100 $3,527,489 $3,320,129 $3,316,432 $3,093,322 2,404,935 1,922,119 1,737,844 1,915,064 1,874,989 3,697,567 2,874,163 2,650,397 2,608,769 2,432,172 403,832 406,062 407,911 397,371 371,247 27,612 26,870 24,988 26,041 25,210 $1.42 1.69 24.89 19.10 0.84 $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 $1.74 1.74 21.72 18.07 0.76 Stockholders’ equity to total assets 9.21% Tangible common equity to tangible assets 7.23% 11.51% 9.87% 12.29% 11.98% 12.00% 10.61% 10.28% 10.19% Tier 1 leverage ratio Tier 1 risk-based ratio Total risk-based capital ratio Dividend payout 9.22% 13.02% 14.10% 59.15% 10.81% 11.86% 11.33% 11.64% 19.08% 21.58% 20.05% 20.34% 22.83% 21.30% 17.91% 19.17% 48.78% 51.70% 35.35% 43.68% (1) “Core earnings” and “diluted core earnings per share” are financial measures that exclude nonrecurring items such as gains on FDIC-assisted transactions and merger related costs. We believe these non-GAAP financial measures provide a meaningful base for period-to-period and company-to-company comparisons, which will assist investors and analysts in evaluating the core operating results of the Company and predicting future performance. p 24 Annualized core performance ratios: (1) Return on average assets Return on average equity Return on average tangible equity Net interest margin Efficiency ratio Asset Quality ratios: (2) 2013 2012 2011 201 0 20 09 0.77% 6.33% 7.54% 4.21% 0.81% 6.57% 7.81% 3.93% 0.76% 6.15% 7.43% 3.85% 0.83% 0.85% 6.80% 8.26% 8.26% 10.61% 3.78% 3.78% 71.28% 70.17% 67.86% 65.28% 65.69% Nonperforming assets / total assets 1.69% Nonperforming loans / total loans 0.53% 1.29% 0.74% 1.18% 1.02% 1.12% 0.83% 1.12% 1.35% Allowance / nonperforming loans 297.89% 231.62% 186.14% 190.17% 98.81% Allowance / total loans Net charge-offs / average loans (3) 1.57% 0.15% Net credit card charge-offs / credit card loans 1.33% 1.71% 0.26% 1.50% 1.91% 0.30% 2.06% 1.57% 1.33% 0.52% 0.38% 2.37% 2.61% Other data: Number of financial centers (4) 131 Number of full time equivalent employees 1,343 92 1,068 84 1,083 85 1,075 84 1,091 (1) Based on core earnings. Core earnings exclude nonrecurring items (non-GAAP). (2) 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. (3) Excluding credit cards. (4) 2013 includes 27 financial centers that will be closed on March 21, 2014 as part of the operational integration with Metropolitan National Bank, which was acquired by the Company on November 25, 2013. p 25 S I M M O N S F I R S T . C O M Corporate Headquarters: Little Rock Corporate Office: 501 Main Street Pine Bluff, AR 71601 (870) 541-1000 425 W. Capitol, Suite 1400 Little Rock, AR 72201 (501) 558-3100 

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