Simmons First National Annual Report 2013

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FY2013 Annual Report · Simmons First National

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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

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

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

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

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%

10.61%

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

1,068

1,083

1,075

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