Simmons First National
Annual Report 2014

Plain-text annual report

2014 company report Our financial performance reflected the increased scale and efficiencies we achieved in 2014. Our assets at year-end totaled $4.6 billion; our net income was $35.7 million, an increase of $12.5 million over 2013 or 54%; and our diluted earnings per share were $2.11, an increase from $1.42 the previous year. George A. Makris, Jr. Chairman & Chief Executive Officer p 1 to our shareholders 2 0 1 4 C O M PA N Y R E P O R T The year 2014 was transformational for Simmons First associated with banks that size and feel we will be very National Corporation. We completed the integration of well prepared to continue our growth both internally Metropolitan National Bank into Simmons Bank in March. and through acquisition. We entered into agreements to acquire Delta Trust and Banking Corporation (AR), Community First Bancshares Our financial performance reflected the increased (TN), and Liberty Bancshares (MO). We merged our scale and efficiencies we achieved in 2014. Our assets remaining six affiliate banks into Simmons Bank during at year-end totaled $4.6 billion; our net income was the year and we merged Delta Trust into Simmons Bank $35.7 million, an increase of $12.5 million over 2013 or late in 2014. We expect to complete the conversions of 54%; and our diluted earnings per share were $2.11, an Liberty and Community First in April and September of increase from $1.42 the previous year. Our loans were 2015, respectively. $2.7 billion and our deposits totaled $3.9 billion. We paid dividends during 2014 of $.88 per share. Our stock As a result of our growth and single charter model, price at the end of 2014 was $40.65 per share compared we reorganized our company into five distinct regions to a per share price of $37.15 at the end of 2013. - three in Arkansas, Missouri/Kansas, and Tennessee. We established our financial services division including We also continue our strong support for the communities oversight for Private Banking, Trust, Investments, we serve. Our new Simmons First Foundation made and Insurance. We established our specialty lending several Tommy May Make -A- Dif ference grants to group to include Credit Cards, Mortgage Lending, and help local community organizations. Simmons Bank Equipment Finance. We also established our Corporate contributed $1,000,000 to the Foundation to start an Sales Group which will insure integration of all products endowment for future grants. Our associates continue and services throughout the markets we serve. As a to volunteer in their respective communities and provide leading community banking organization, we will meet much needed support for many worthwhile causes. the needs of our customers by offering a wide array of products and services in a timely manner where O n behalf of all of us at Simmons First N ational decisions are still made locally. Corporation we thank you, our shareholder, for your continued support of our company. These efforts were undertaken by a dedicated group of associates, not only legacy Simmons associates, but those new to the Simmons family. It is exciting to see what we can do when we all work together. Our assets are approaching $8 billion now, and as we approach assets of $10 billion in the near future, we will face a new level of regulatory oversight. We are preparing GEORGE A. MAKRIS, JR. Chairman & Chief Executive Officer for the increased risk management requirements Simmons First National Corporation p 1 financial highlights AS OF DECEMBER 31, 2014 STRO N G R EG U L ATO RY CAP ITAL 2 0 1 4 C O M PA N Y R E P O R T 8.77% 5.00% 4.00% 6.00% 4.00% 13.02% 13.43% 14.50% 10.00% 8.00% LE VE R AG E R ATIO TIE R 1 CAPITAL R ATIO TOTAL RISK- BASE D CAPITAL R ATIO R e g u l a to r y M i n i m u m R e g u l a to r y “ We l l - C a p i t a l ize d ” S i m m o n s F i r s t N a ti o n a l C o r p o r a ti o n STRONG ASSET QUALITY Consistently Outperforming Our Peers SFNC All U.S. Banks Non-performing Loans as a % of Loans1 Net Charge-offs as a % of Average Loans3 2 .74% 2.07% .50% .20% 2 Net Credit Card Charge-offs as a % of Credit Card Portfolio 1.27% 3.04% 4 1 Includes Troubled-Debt Restructures. 2 Legacy loans. Excluding all acquired loans. 3 Excluding credit cards. 4 Most recently published industry average. p 2 p 3 s r a l l o D f O s d n a s u o h T s t e s s a l a t o T 7 6 5 4 3 2 1 0 TOTAL ASSET GROWTH $7,817,823 $3,316,432 $3,320,129 $3,527,489 $4,383,100 $4,643,354 2010 2011 2012 2013 2014 3/31/15 2014 Core Earnings $39 million Total Assets $4.6 billion Shareholder Equity $494 million Core Earnings Per Share $2.29 Stock Price Per Share $40.65 Increase from 2013 Stock Price Per Share 9.4% p 3 dividend history & total shareholder return 2 0 1 4 C O M PA N Y R E P O R T $1.00 $0. 80 $0.60 $0.40 $0. 20 $0.00 e r a h S r e p d n e d i v i D Consistent Dividend History 2014 Annual Dividend Yield: 2.2% (based on 12/31/14 stock price) $0.88 $0.84 $0.76 $0.76 $0.76 $0.76 $0.80 $0.73 $0.68 $0.61 $0.57 $0.53 $0.48 $0.44 $0.40 $0.36 $0.32 $0.28 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘ 10 ‘ 11 ‘ 12 ‘ 13 ‘ 14 106 Consecutive Years of Paying Dividends to our Shareholders 1-YEAR(1) TOTAL SHAREHOLDER RETURN(3) SFNC +24.6% SNL U.S. Bank Index (4) +3.9% ) % ( n r u t e R l a t o T Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 SFNC SNL U.S. Bank LONG-TERM(2) TOTAL SHAREHOLDER RETURN(3) SFNC SNL U.S. Bank Index (4) +110.2% -1.3% ) % ( n r u t e R l a t o T Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 SFNC SFNC Dec-14 SNL U.S. Bank SNL U.S. Bank p 4 (1) Period from April 1, 2014 through March 31, 2015. (2) Period from December 31, 2007 through March 31, 2015. (3) Total shareholder return includes dividends plus stock price appreciation. (4) The SNL U. S . Bank Index includes all U. S . banks traded on the major U. S . stock exchanges (NYSE, NYSE MK T and NASDAQ). Source: SNL Financial p 5 acquisition highlights Over an 18 month period, Simmons First National Corporation consolidated seven affiliate bank charters, completed acquisitions with Metropolitan National Bank, Delta Trust & Banking Corporation, Community First Bancshares, Inc., Liberty Bancshares, Inc., and achieved significant financial growth with assets approaching $8 billion. Our company has evolved into the 102nd largest bank in the United States and continues to be recognized as a progressive, long-term financial services institution. 2 0 1 4 C O M PA N Y R E P O R T METROPOLITAN NATIONAL BANK DELTA TRUST & BANKING CORPORATION N OV E M B E R 2 5 , 2 0 1 3 AU G U S T 3 1 , 2 0 1 4 • Expanded market share in Central and Northwest • Expanded ability to offer full range of financial Arkansas. services including wealth management, consumer • Helped strategically enter new Central Arkansas and commercial financing needs and asset protection. growth markets of Benton, Bryant, Cabot and • Increased trust management portfolio to Maumelle. approximately $3.5 billion. • Increased financial center footprint by 21%. • Enhanced competitive position in major growth • Purchase Price: $53.6 million. total assets $937 million markets of Central and Northwest Arkansas. • Purchase Price: $67 million. total assets $446 million COMMUNITY FIRST BANCSHARES, INC. LIBERTY BANCSHARES, INC. F E B R UA RY 2 7, 2 0 1 5 F E B R UA RY 2 7, 2 0 1 5 • 5th largest bank headquartered in Tennessee (by • #1 SBA lender in Missouri for 2012 and 2013. deposits), offering a full range of commercial and consumer products. • Filled out existing footprint in high growth and expansion market of Springfield, MO, adding • Adds 32 financial centers to footprint within key 10 branches. expansion markets in Tennessee. • Adds expertise in Small Business lending, • Purchase Price: $271.3 million. enhancing commercial offerings. total assets $1.9 billion • Purchase price: $214.9 million. total assets $1.1 billion p 5 expanding our footprint AS OF MARCH 31, 2015 p 6 ove r 2,000 a s s o ci a te s 102 co m m u n i t i e s 4 s t a te s A R K S M O T N 152 f i n a n ci a l ce n te r s p 7 Simmons First National Corporation board of directors Seated (Left to Right) Eugene Hunt • Harry L. Ryburn, D.D.S. • George A. Makris, Jr. • David L. Bartlett • Sharon L. Gaber, Ph.D. Standing (Left to Right) W. Scott McGeorge • Jerry Watkins Edward Drilling • Robert L. Shoptaw • Steven A. Cossé • William E. Clark, II p 8 p 9 DAVID L . BARTLETT SHARON L . GABER, PH.D. HARRY L . RYBURN, D.D.S. President Provost & Vice Chancellor Retired Orthodontist Simmons First National Corporation for Academic Affairs Chief Banking Officer University of Arkansas Simmons First National Bank ROBERT L . SHOPTAW Chairman of the Board EUGENE HUNT Arkansas Blue Cross & Blue Shield WILLIAM E. CLARK, II Attorney Chairman & Chief Executive Officer Hunt Law Firm Clark Contractors, LLC Consultant to the Board JERRY WATKINS STEVEN A. COSSÉ Retired President & Chief Executive Officer Murphy Oil Corporation GEORGE A. MAKRIS, JR. Retired Executive Chairman & Chief Executive Officer Murphy Oil Corporation Simmons First National Corporation W. SCOTT MCGEORGE President EDWARD DRILLING Pine Bluff Sand & Gravel President AT&T Arkansas Seated Eugene Hunt • Harry L. Ryburn, D.D.S. • George A. Makris, Jr. • David L. Bartlett • Sharon L. Gaber, Ph.D. Standing Edward Drilling • Robert L. Shoptaw • Steven A. Cossé • William E. Clark, II W. Scott McGeorge • Jerry Watkins In Memory JERRY WATKINS 1931-2015 We are saddened by the loss of our long time friend Jerry Watkins. His genuine interest and wise counsel will be missed. 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 J. Burton Hicks, Chief of Staff, Vice President of Mergers & Acquisitions and Corporate 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. (As of December 31, 2014) p 9 Simmons First National Bank board of directors Seated (Left to Right) Beverly Morrow • N. Craig Hunt • Harry L. Ryburn, D.D.S. • Marty D. Casteel • Mary Pringos • Joe S. Hiatt Standing (Left to Right) Jane W. Rogers • Dean Chambliss • George O’Connor • Met L. Jones, II • Adam B. Robinson, Jr. David L. Bartlett • Monty M. Scott • H. Glenn Rambin • Philip A. Tappan • H. Ford Trotter, III Johnny McGraw • Clifton Roaf, D.D.S. • Mark Shelton, III Not Pictured Steven A. Cossé • John Lytle, M.D. • W. Scott McGeorge • Clarence Roberts, III • Robert L. Shoptaw p 10 p 10 p 11 Seated Beverly Morrow • N. Craig Hunt • Harry L. Ryburn, D.D.S. • Marty D. Casteel • Mary Pringos • Joe S. Hiatt Standing Jane W. Rogers • Dean Chambliss • George O’Connor • Met L. Jones, II • Adam B. Robinson, Jr. David L. Bartlett • Monty M. Scott • H. Glenn Rambin • Philip A. Tappan • H. Ford Trotter, III Johnny McGraw • Clifton Roaf, D.D.S. • Mark Shelton, III Not Pictured Steven A. Cossé • John Lytle, M.D. • W. Scott McGeorge • Clarence Roberts, III • Robert L. Shoptaw DAVID L . BARTLETT W. SCOTT MCGEORGE MONTY M. SCOTT President Simmons First National Corporation Chief Banking Officer Simmons First National Bank MARTY D. CASTEEL Senior Executive Vice President Simmons First National Corporation Chairman & Chief Executive Officer Simmons First National Bank DEAN CHAMBLISS Owner H & D Farms STEVEN A. COSSÉ Retired President & Chief Executive Officer Murphy Oil Corporation N. CRAIG HUNT President & Chief Credit Officer Simmons First National Bank MET L . JONES, II General Manager Dickey Machine Works President President Pine Bluff Sand & Gravel Southwest Hotels, Inc. JOHNNY MCGRAW ROBERT L . SHOPTAW Owner McGraw Farms Chairman of the Board Arkansas Blue Cross & Blue Shield BEVERLY MORROW Vice President TLM Management PHILIP A. TAPPAN Managing Partner Tappan Land & Water Company GEORGE O’CONNOR H. FORD TROTTER, III Owner & President O’Connor Distributing General Manager Trotter Auto Group MARY PRINGOS President Phillips Planting Co., Inc. H. GLENN RAMBIN President R and R Farms Advisory Directors CLIFTON ROAF, D.D.S. Dentist CLARENCE ROBERTS, III Retired President Roberts Brothers Tire Service, Inc. ADAM B. ROBINSON, JR. President Ralph Robinson & Son, Inc. MARK SHELTON, III President M.A. Shelton Farming Company, Inc. JOHN LYTLE, M.D. Orthopedic Surgeon South Arkansas Orthopedic Center JANE W. ROGERS Community Volunteer Advisory Director Emeritus JOE S. HIATT Retired Banker & Rancher HARRY L . RYBURN, D.D.S. Retired Orthodontist 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 J. Burton Hicks, Chief of Staff, Vice President of Mergers & Acquisitions and Corporate Secretary, Simmons First National Corporation, P. O. Box 7009, Pine Bluff, Arkansas 71611-7009, or on the Company’s website at simmonsfirst.com. (As of December 31, 2014) p 11 community advisory boards CENTRAL & NORTHEAST ARKANSAS REGION Brooks Davis Independent Consultant Russellville Community Bank Advisory Board of Directors 2 0 1 4 C O M PA N Y R E P O R T Harold Smith President & Chief Executive Officer, Silviland, Inc. Hot Springs Community Bank Advisory Board of Directors Dennis R. Donovan Independent Consultant Sara Barnett CPA Consultant Stuart A. Fleischner, D.D.S. Dentist National Park Dental Group James B. Newman VP Agency Manager Alliance Insurance Group Joe Giezeman Independent Consultant David Johnston Owner Ag Chem Direct, Inc. & DH Blue Sky, Inc. Robert Underwood Owner Underwood Construction Lance A. Porter, D.D.S. Dentist Porter Dental Health Clinic, P.A. NORTHWEST ARKANSAS REGION Sam P. Stathakis, Jr. President, Retail Distributor Merritt Wholesale Distributors Gene Thomason Retired President Simmons First Bank of Russellville Jonesboro Community Bank Advisory Board of Directors Ben Owens, Jr., M.D. Physician & President Clopton Clinic David Pyle, M.D. Physician Clopton Clinic Jim Scurlock President Scurlock Industries Berl A. “Skipper” Smith Attorney & CPA Rainwater & Cox, Inc., LLC Mark Wimpy Self Employed Agribusiness Northwest Arkansas Community Bank Advisory Board of Directors Clark Irwin Retired Executive Tyson Foods Sonya Jones Retired Nick J. Nabholz Business Development Officer Nabholz Construction James L. Tull, CPA Chief Financial Officer Crafton Tull, Sparks & Associates Ft. Smith Community Bank Advisory Board of Directors Joe S. Hiatt Retired Banker & Rancher Margie Hiatt Retired Banker Sherman Hiatt Mayor City of Charleston Searcy Community Bank Advisory Board of Directors Clay Hiatt Investments Richard Cargile Insurance Agent Cargile Insurance Agency Joe Larkin Pharmacist & Owner Medi-Sav Pharmacy (As of December 31,2014) p 12 Leon Anderson Nationwide Representative Nationwide Insurance Company Guy P. Teeter Farmer Guy Teeter Farms Keith B. Cogswell, III President Cogswell Motors, Inc. Trish Henry President & Chief Executive Officer, Russellville Steel Company Allen Laws, III Attorney Laws Law Firm, P.A. SOUTH ARKANSAS REGION Southeast Arkansas Community Bank Advisory Board of Directors El Dorado Community Bank Advisory Board of Directors Aubra Anthony, Jr. President & Chief Executive Officer Anthony Forest Products Company Steven A. Cossé Retired President & Chief Executive Officer Murphy Oil Corporation T. Alan Gober CPA Evers, Cox & Gober P. L. L. C. John Bierbaum Owner Bierbaum Timber & Contracting, LLC Phil Herring President Herring Furniture Company Robert G. Bridewell Attorney Robert G. Bridewell, Sr., P.A. Denny McConathy Retired President Cross Oil and Refining Company, Inc. James Haddock Attorney James Haddock, P.A. Martin Henry Farmer M & A Farms Beverly Mihalyka Secretary & Treasurer Chicot Irrigation, Inc. Jerry Selby Partner Four Star Partnership Farms Floyd M. Thomas, Jr. Attorney Floyd M. Thomas, Jr., P.A. Larkin M. Wilson, III, D.D.S. Dentist Jennifer K. Wylie President, The Eagle Foundation Executive Advisor, Hope Landing, Inc. Kenneth P. Oliver, Jr. Retired President El Dorado Glass & Mirror Company, Inc. In Memory MARGIE HIATT 1931-2015 We are saddened by the loss of our long time friend Margie Hiatt. Her genuine interest and wise counsel will be missed. p 13 Simmons First Foundation board of directors Back Row (Left to Right) Front Row (Left to Right) Marty D. Casteel Senior Executive Vice President Simmons First National Corporation Chairman & Chief Executive Officer Simmons First National Bank Robert L. Shoptaw Chairman of the Board Arkansas Blue Cross & Blue Shield George Walker Retired, Simmons First National Bank Robert A. Fehlman Senior Executive Vice President, Chief Financial Officer & Corporate Treasurer Simmons First National Corporation Robert Dill Retired, Simmons First National Bank George A. Makris, Jr. Chairman & Chief Executive Officer Simmons First National Corporation Harry L. Ryburn, D.D.S Retired Orthodontist Kaleybra Morehead, Ph.D. Vice President of Academic Affairs Southeast Arkansas College J. Thomas May Chairman & Chief Executive Officer Simmons First Foundation Mary Pringos President, Phillips Planting Co., Inc. Not Pictured W. Scott McGeorge President, Pine Bluff Sand & Gravel Clifton Roaf, D.D.S Dentist J. Burton Hicks Chief of Staff, Vice President of Mergers & Acquisitions and Corporate Secretary About the Simmons First Foundation Simmons First Foundation, Inc. (the “Foundation”) was officially incorporated on January 1, 2014. The Foundation’s purpose is to identify and financially support tax-exempt, non-profit entities within Simmons Bank’s geographic footprint that are developing or expanding initiatives benefiting youth in the areas of education or healthcare. Grants from the Pine Bluff Jefferson County Drug Court (Family Engagement Program) Project Name: Sixth Division Family and Parental Responsibility Program Amount of grant: $25,000.00 Boys & Girls Club of Jefferson County Project Name: L-Café Program (Leadership, Character, Foundation must be used for a new or expanded initiative that and Academics for the Future with Excellence) increases the number of individuals impacted. In 2014, the Foundation made or pledged more than $120,000 in grants to seven different organizations. Total Assets for the Foundation On December 31, 2014, the Foundation had total assets of $1,383,405. This amount includes a $1 million contribution from Simmons Bank at year-end 2014. Total Grants Made or Pledged in 2014: $122,630.27 (As of December 31, 2014) Amount of grant: $22,910.00 El Dorado The Boys & Girls Club of El Dorado Project Name: The Boys & Girls Club of El Dorado’s “Arts Program” Amount of grant: $5,560.00 Agape House Children’s Home, Inc. Project Name: i-Ready Built for Common Core Amount of grant: $10,295.85 Hope Landing Project Name: Decoding Dyslexia; Targeting an Underserved Population Amount of grant: $9,816.00 Hot Springs Hot Springs & Lakeside School Districts Project Name: Partners for an Inclusive Community Amount of Grant: $25,000 Northwest Arkansas Region Lincoln Consolidated School District Project Name: Lincoln Youth Adventure Club Amount of grant: $24,048.42 p 13 2015 corporate executive management (Left to Right) STEPHEN C. MASSANELLI Executive Vice President of Organizational Development Simmons First National Corporation ROBERT A. FEHLMAN Senior Executive Vice President, Chief Financial Officer & Corporate Treasurer 2 0 1 4 C O M PA N Y R E P O R T Simmons First National Corporation GEORGE A. MAKRIS, JR. Chairman & Chief Executive Officer Simmons First National Corporation DAVID L . BARTLETT President, Simmons First National Corporation Chief Banking Officer, Simmons First National Bank PATRICK A. BURROW Executive Vice President & General Counsel Simmons First National Corporation MARTY D. CASTEEL Senior Executive Vice President, Simmons First National Corporation Chairman, Chief Executive Officer & President, Simmons First National Bank p 14 p 15 2015 regional & community leadership 2 0 1 4 C O M PA N Y R E P O R T Central & Northeast Arkansas Region Kansas & Missouri Region Barry K. Ledbetter Executive Vice President Central & Northeast Arkansas Regional Chairman Matt W. Boyd Searcy Community President Ritchie D. Howell Conway Community President Gary E. Metzger Executive Vice President Kansas & Missouri Regional Chairman Garry L. Robinson Executive Vice President Southwest Missouri Community President & Small Business Lending Manager C. Adam Mitchell Little Rock Community President Roger C. Austin Sedalia Community President Daniel C. Robinson Northeast Arkansas Community President Stephen J. Smith North Arkansas Community President Travis J. Liebig St. Louis Community President Andrea L. Scarpelli Wichita Community President & Senior Regional Credit Officer Steven W. Trusty Hot Springs Community President Tennessee Region Northwest Arkansas Region James F. Stobaugh Executive Vice President Northwest Arkansas Regional Chairman Dennis H. Ferguson Northwest Arkansas Community President Michael F. Flynn Ft. Smith Community President Ronald B. Jackson Russellville Community Chairman South Arkansas Region John C. Clark Executive Vice President Tennessee Regional Chairman Tony D. Gregory Executive Vice President Tennessee Regional President Andrew B. Culbreath Madison County Community President Andy N. Page Obion County Community President Charles R. Lanier Williamson County Community President Danny R. Watson Dyer County Community President John S. Bomar Tipton County Community President Freddie G. Black Executive Vice President South Arkansas Regional Chairman Ken T. Anderson Sumner County Community President Patrick J. Anderson Pine Bluff Community President Sam L. Blackwell Gibson County Community President Tommy R. Jarrett Southeast Arkansas Community President Robert L. Robinson, IV El Dorado Community President Sam M. Lewallen Weakley County Community President Steve H. Weaver Shelby County Community President p 15 2015 strategy committee 2 0 1 4 C O M PA N Y R E P O R T George A. Makris, Jr. Chairman & Chief Executive Officer Simmons First National Corporation Stephen C. Massanelli Executive Vice President Organizational Development Simmons First National Corporation David L. Bartlett President Simmons First National Corporation Susan F. Smith Executive Vice President Chief Banking Officer Simmons First National Bank Corporate Strategy & Performance Simmons First National Corporation Marty D. Casteel Senior Executive Vice President Larry L. Bates Executive Vice President Simmons First National Corporation Chairman, Chief Executive Officer & President Simmons First National Bank Specialty Lending Simmons First National Bank Robert A. Fehlman Senior Executive Vice President Chief Financial Officer & Corporate Treasurer Simmons First National Corporation Patrick A. Burrow Executive Vice President General Counsel Simmons First National Corporation David W. Garner Executive Vice President Controller, Chief Accounting Officer, & Investor Relations Officer Simmons First National Corporation Tina M. Groves Executive Vice President Chief Risk Officer Simmons First National Corporation Freddie G. Black Executive Vice President South Arkansas Regional Chairman Simmons First National Bank John C. Clark Executive Vice President Tennessee Regional Chairman Simmons First National Bank Tony D. Gregory Executive Vice President Tennessee Regional President Simmons First National Bank Lisa W. Hunter Executive Vice President Technology & Operations Simmons First National Bank p 16 p 16 p 17 p 17 2015 strategy committee 2 0 1 4 C O M PA N Y R E P O R T Barry K. Ledbetter Executive Vice President Philip A. Tappan Executive Vice President Central & Northeast Arkansas Regional Chairman Simmons First National Bank Gary E. Metzger Executive Vice President Kansas & Missouri Regional Chairman Simmons First National Bank Matthew S. Reddin Executive Vice President Private Banking Group Simmons First National Bank Chris S. Roberts Executive Vice President Corporate Sales Simmons First National Bank Garry L. Robinson Executive Vice President Southwest Missouri Community President & Small Business Lending Manager Simmons First National Bank Financial Services Simmons First National Bank Steven C. Wade Executive Vice President Chief Credit Officer Simmons First National Bank Chet A. Alexander Senior Vice President Consumer Lending & Credit Administration Simmons First National Bank Kevin J. Archer Senior Vice President Risk Management Simmons First National Bank Victor M. Castro Senior Vice President Treasury Management Simmons First National Bank Amy W. Johnson Senior Vice President Marketing Director Simmons First National Bank James F. Stobaugh Executive Vice President J. Burton Hicks Chief of Staff, Vice President of Mergers Northwest Arkansas Regional Chairman Simmons First National Bank & Acquisitions and Corporate Secretary Simmons First National Corporation (As of March 31, 2015) p 17 p 17 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, 2014 and 2013 (In thousands) ASSETS Cash and cash equivalents Investment securities 2 014 2013 $ 335,909 $ 539,380 1,082,870 957,965 Mortgage loans held for sale and assets held in trading accounts 28,252 18,472 Legacy loans Allowance for loan losses Loans acquired, not covered by FDIC loss share (net of discount) 575,980 Loans acquired, covered by FDIC loss share (net of discount) 106,933 2,053,7 2 1 1,742,638 (29,028) (27,442) 515,644 146,653 Net loans 2,707,606 2,377,493 FDIC indemnification asset Premises and equipment Premises held for sale Foreclosed assets not covered by FDIC loss share 22,663 4 8 , 79 1 122,246 6,486 44,856 1 1 9, 6 1 4 19,466 64,820 Foreclosed assets covered by FDIC loss share 1 1,793 20,585 Goodwill and other intangible assets Other assets Total assets 130, 62 1 149,692 93,50 1 123 ,0 1 3 $ 4,643,354 $ 4,383,100 LIABILITIES AND STOCKHOLDERS’ EQUITY Deposits: Non-interest bearing transaction accounts $ 889,260 $ 7 1 8,438 Interest bearing transaction accounts and savings deposits 2,006,2 7 1 1 ,862,6 1 8 Time deposits Total deposits Other borrowings Subordinated debentures Accrued interest and other liabilities Total liabilities Stockholders’ equity 965, 1 87 1 , 1 1 6, 5 1 1 3,860,718 3,697,567 1 1 4,682 20,620 153,0 1 5 1 17,090 20,620 143 , 9 9 1 4,149,035 3,979,268 494,3 1 9 403,832 Total liabilities and stockholders’ equity $4,643,354 $ 4,383,100 p 18 p 19 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, 2014 and 2013 CORE EARNINGS (1) GAAP EARNINGS (In thousands, except per share & other data) 2 014 2013 2014 2013 Interest income Interest expense NET INTEREST INCOME Provision for loan losses NET INTEREST INCOME AFTER 185,035 $ 185,035 $143,113 $ 143,1 1 3 $185,035 $ 185,035 $143,113 $ 143, 1 1 3 13,971 1 3 , 9 7 1 12,263 12,263 171,064 171,064 7,245 7,245 130,850 130,850 4,118 4, 1 1 8 13,971 13,97 1 171,064 171,064 7,245 7,245 12,263 12,263 130,850 130,850 4 , 1 1 8 4,118 PROVISION FOR LOAN LOSSES 163,819 163,819 126,732 126,732 163,819 163,819 126,732 126,732 NON-INTEREST INCOME Trust income Service charges on deposit accounts Other service charges and fees Mortgage banking income Investment banking income Credit and debit card fees Bank owned life insurance income Net gain (loss) on assets covered 7,111 7, 1 1 1 25,650 25,650 3,574 3,574 5,342 5,342 1,070 1,070 22,866 22,866 1,843 1,843 5,842 5,842 18,815 18,815 2,997 2,997 4,592 4,592 1,811 1 ,8 1 1 17,833 17,833 1,319 1,3 1 9 7,111 7, 1 1 1 25,650 25,650 3,574 3,574 5,342 5,342 1,070 1,070 22,866 22,866 1,843 1,843 5,842 5,842 18,815 18,8 1 5 2,997 2,997 4,592 4,592 1,8 1 1 1,811 17,833 17,833 1,3 1 9 1,319 by FDIC loss share agreements 20,316) (20,316) (16,188) (16,188) (20,316) (20,316) (16,188) (16,188) Other income TOTAL NON-INTEREST INCOME 6,272 6, 272 53,412 53,412 3,788 3,788 40,809 40,809 15,052 15,052 62,192 62,192 3,595 3,595 40,616 40,616 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 88,325 88,325 12,307 12,307 9,314 9, 3 1 4 4,507 4,507 3,354 3,354 -- -- 44,167 44, 1 6 7 161,974 161,974 74,078 74,078 10,034 10,034 7,623 7,623 1,337 1,337 2,482 2,482 -- -- 32,242 32,242 127,796 127,796 89,210 89,210 12,833 12,833 9,325 9,325 4,507 4,507 3,354 3,354 7,470 7,470 49,022 49,022 175,721 175,721 74,078 74,078 10,034 10,034 7,623 7,623 1,337 1,337 2,482 2,482 6,376 6,376 32,882 32,882 134,812 134,812 INCOME BEFORE INCOME TAXES Provision for income taxes 55,257 55,257 16,550 16,550 39,745 39,745 12,133 12,133 50,290 50,290 14,602 14,602 32,536 32,536 9,305 9,305 CORE EARNINGS (1) NET INCOME 38,707 $27,612 $ 38,707 $ 27,612 $35,688 $ 35,688 $23,231 $ 23,231 DILUTED CORE EARNINGS PER SHARE (1) $2.29 $ 2.29 $1.69 $ 1.69 DILUTED EARNINGS PER SHARE $ $2.11 2.11 $ 1.42 $1.42 (1) “Core earnings” and “diluted core earnings per share” are financial measures that exclude nonrecurring items such as branch right sizing 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 19 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) 2014 2013 2012 2011 201 0 $4,643,354 $4,643,354 $4,383,100 $4,383,100 $3,527,489 $3,527,489 $3,320,129 $3,320,129 $3,316,432 $3,316,432 2,736,634 2,736,634 2,404,935 2,404,935 1,922, 1 1 9 1,922,119 1,737,844 1,737,844 1,915,064 1,915,064 3,860,718 3,860,7 1 8 3,697,567 3,697,567 2,874,163 2,874,1 63 2,650,397 2,650,397 2,608,769 2,608,769 494,319 494,319 403,832 403,832 406,062 406,062 407,911 407, 9 1 1 397,371 397, 37 1 38,707 38,707 27,6 1 2 27,612 26,870 26,870 24,988 24,988 26,041 26,041 2 . 1 1 2.29 27.38 20.15 0.88 1.42 1.69 24.89 19.1 3 0.84 9.21% 7.24% 9.22% 13.02% 1.64 1.59 24.55 20.66 0.80 1 1.51% 9.87% 10.81% 19.08% 1.47 1.45 23.70 20.09 0.76 2. 1 5 1. 5 1 23.01 19.36 0.76 12.29% 1 1.98% 10. 6 1% 10.28% 1 1.86% 1 1.33% 21.58% 20.05% 14.10% 20.34% 22.83% 2 1 .30% 59.1 5% 48.78% 51.70% 35.35% Capital ratios at period end: Stockholders’ equity to total assets 10.65% Tangible common equity to tangible assets 8.06% Tier 1 leverage ratio Tier 1 risk-based ratio Total risk-based capital ratio Dividend payout 8.77% 13.43% 14.50% 41.7 1 % 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 (1) “Core earnings” and “diluted core earnings per share” are financial measures that exclude nonrecurring items such as branch right sizing 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 20 p 21 2014 2013 2012 2011 201 0 Annualized core performance ratios: (1) Return on average assets Return on average equity 0.86% 8.79% Return on average tangible equity 1 1.89% Net interest margin 4.47% 0.77% 6.33% 7.54% 4.2 1 % 0.81 % 6.57% 7.81 % 3.93% 0.76% 0.83% 6.1 5 % 6.80% 7.43% 8.26% 3.85% 3.78% Efficiency ratio 69.88% 71.28% 70. 1 7 % 67.86% 65.28% Asset Quality ratios: (2) Nonperforming assets / total assets 1.25% Nonperforming loans / total loans 0.63% 1.69% 0.53% 1.29% 0.74% 1.1 8 % 1. 1 2 % 1.02% 0.83% Allowance / nonperforming loans 223.3 1 % 297.89% 231.62% 186. 14% 190. 1 7 % Allowance / total loans Net charge-offs / average loans (3) 1.4 1 % 0.20% Net credit card charge-offs / credit card loans 1.27% 1.57% 0. 1 5 % 1.33% 1.7 1 % 0.26% 1.50% 1.9 1 % 1.57 % 0.30% 0.52% 2.06% 2.37% Other data: Number of financial centers (4) 109 Number of full time equivalent employees 1,383 1 3 1 1,343 92 1,068 84 1,083 85 1,075 (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 were 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 21 S I M M O N S F I R S T . C O M Corporate Headquarters 501 Main Street Pine Bluff, AR 71601 870.541.1000 Little Rock Corporate Office 425 W. Capitol Avenue, Suite 1400 Little Rock, AR 72201 501.558.3100 

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