Simmons First National Annual Report 2014

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FY2014 Annual Report · Simmons First National

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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

.74% 2.07%
.50%
.20%

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
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o
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s
d
n
a
s
u
o
h
T

s
t
e
s
s
a

a
t
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T

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

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

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

a
t
o
T

Dec-07

Dec-08

Dec-09

Dec-10

Dec-11

Dec-12

Dec-13

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

• 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

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

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 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

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

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

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

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

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

1,068

1,083

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