Simmons First National
Annual Report 2015

Plain-text annual report

2015 COMPANY REPORT to our shareholders Q&A with George A. Makris, Jr. A VISIT WITH THE CHAIRMAN The year 2015 was a momentous one in the life of Simmons First National Corp. We completed the integration of Liberty Bancshares of Missouri, Community First Bancshares of Tennessee and Trust Company of the Ozarks of Missouri. We now have a strong regional footprint across Arkansas, Kansas, Missouri and Tennessee. We’re providing the best of both to our customers – the type of service expected from a community bank along with the range of products expected from a regional bank. During 2015, we reorganized into three regions – Arkansas, Missouri/Kansas and Tennessee. Our regional chairmen are Freddie Black for Arkansas, Gary Metzger for Missouri/Kansas and Tony Gregory for Tennessee. Meanwhile, Barry Ledbetter, who had been the chairman for the Central/Northeast Arkansas region, assumed the duties of chief banking officer. Barry has been with Simmons for more than three decades. Adam Mitchell assumed the duties of chief retail officer, and Matt Reddin assumed the duties of chief lending officer. These are new positions for Simmons. Adam is working to ensure the efficient delivery of products and services through our retail branch network, while Matt is developing community bank lending teams. Joining our team in 2015 was Chris Dunn as executive vice president for regulatory affairs and risk strategy. Chris came to us following a 34-year career with the Office of the Comptroller of the Currency, and he’ll play a key role in the years ahead as Simmons continues to grow. We now have assets of almost $8 billion and will face new levels of regulatory oversight. Chris and his team are making sure we’re prepared. Also joining Simmons in 2015 was Jena Compton as executive vice president and chief people officer. Jena brought vast experience in the areas of human resources, leadership development and organizational effectiveness. She’s assembling a team that’s making us one of the best places to work in the region. Jena and her team are improving our corporate culture and developing our talent. We remain deeply involved in the communities we serve through sponsorships, charitable contributions and volunteerism. In addition to making charitable contributions throughout the four-state area, the bank also makes a significant contribution each year to the Simmons First Foundation. Members of our Simmons family volunteer on a regular basis, and we’ve seen an increased emphasis on associate contributions to United Way. Our stock price at the end of 2015 was $51.36 per share, up from $40.65 per share at the end of 2014. The stock price appreciation, coupled with quarterly dividends, resulted in a total shareholder return of 29 percent for the year. This compared very favorably to the industry as the SNL Mid Cap U.S. Bank Index increased about George Makris has been the chairman and chief executive officer of Simmons First National Corp. for less than three years, but it has been the most active period in the company’s illustrious history. In 2013, while Makris was CEO-elect, Simmons acquired Metropolitan National Bank of Little Rock, allowing the company entry into new markets. That gain was followed by additional acquisitions in Arkansas, Missouri and Tennessee. Makris, a Pine Bluff native, became a Simmons director in 1997. He recently sat down with Rex Nelson, Simmons’ director of corporate communications, to discuss how Makris entered the business, the future of the company and more. C H A I R M A N + C H I E F E X E C U T I V E O F F I C E R G E O R G E A . M A K R I S , J R . Q / You came to banking in a bit of a nontraditional way as a director. Talk a little bit about that background. A / I was invited to go on the Worthen National Bank board in Pine Bluff when I was 29 years old — almost three decades ago — by a good friend of mine, James Stobaugh. I got great experience. I was lucky enough to serve as the chairman of the commercial and industrial loan committee while I was on that board. A number of banking names who are well-known in the state of Arkansas were in Pine Bluff, so I got a lot of good experience understanding banking from the 30,000-foot level. I was also on that board when Worthen was sold to Boatman’s, then to NationsBank, and finally to Bank of America. After the Bank of America acquisition, I was invited to join the 8 percent. Simmons board. We’re a growing, dynamic company filled with talented associates who are dedicated to providing our customers with the best possible service. All of us thank you for your support of Simmons. One of the things we talk about constantly at Simmons is how to handle mergers and keep our community-banking philosophy. Our objective is to do it right. As we continue adding bank partners and expanding our footprint, what’s most important is maintaining that community-banking feel, which means local decision making and quality customer service. It’s obvious with my background, I’m not a banker. I’ve never made a loan, and I’ve never been to banking school. I’ve been employed by a bank now for just a little over three years. What I do think I understand about the banking business is that it’s a people business. It’s also a service business. Many years ago when you couldn’t cross county lines, banking was done on a ‘they’ll-come-to-see-me’ basis. Well, now that we can be competitive anywhere we choose to go, we need to be more aggressive in making sure we get in front of our potential customers and offer them our full line of products and services. I do know that my background has prepared GEORGE A. MAKRIS, JR. me for that. 2 3 Q&A with George A. Makris, Jr. CONTINUED A VISIT WITH THE CHAIRMAN “Our objective is to do it right. As we continue adding bank partners and expanding our footprint, what’s most important is maintaining that community-banking feel, which means local decision making and quality customer service.” Q / You mentioned you weren’t a banker. Your family business is a wholesale distribution business. That’s all about market share. Banking is a lot about market share, isn’t it? A / Market share is tremendously important. It doesn’t matter what business you are in. My father-in-law, Don Kirkpatrick, was a successful institutional food distributor. Our family the value so that we could use it as a currency in mergers and acquisitions. When Metropolitan National Bank became available, that was a once-in-a-lifetime opportunity for us. The synergies we got from the merger with Metropolitan were more valuable to us than they would have been to anyone else. The market recognized that and, all of a sudden, the valuation of our stock became competitive with other acquirers. was also in the institutional food business, and that’s pure The market turned upward, but there were banks that could competition. You have to have the innovation and the no longer earn enough to pay their shareholders the usual motivation and be competitive in order to be successful. dividends and retain enough capital to grow their business. I see banking the same way. Q / There’s been tremendous growth at Simmons. Talk a little bit about what has happened within this company. A / I was lucky to step into a situation where there were no fires to put out. Tommy May and his leadership as chairman got us to a point where we were one of the most stable banks in the country. We maintained our value during the Great Recession, when many in the banking business lost up to 75 percent of their value. A lot of that had to do with the conservative principles Tommy put into place at the right time. They were at a crossroads. We want to approach mergers and acquisitions by partnering with institutions which have good management teams and excellent asset quality. With Delta Trust in Arkansas, Liberty Bank in Missouri and First State Bank in Tennessee, that’s exactly what we got. We haven’t moved a single associate to Missouri. The former Liberty staff is still in place. In Tennessee, we moved one associate. What’s really important to us is the people associated with the mergers. Corporate Headquarters, Pine Bluff, AR We’re not interested in tremendous cost-cutting measures. Where cost savings are available, we’re certainly going to be interested in that. But that’s not why we acquire banks. We’re interested in partnering with good banks that will continue to grow. I think that is an important distinction to make between us and some of our competitors. Q / I realize you have to be flexible in banking Q / Pretend I’m a young, talented banker looking and things can change, but where do you see for a long, successful career. Why would Simmons five years from now and 10 years Simmons be a good place to work? from now? A / I can see our company being in six or seven states. I can see us being between $15 billion and $20 billion in size. And I can see us with great market share in the markets we serve, not only because we have great associates, but because we have a unique ability to offer a full line of products and services to customers. We’re still building out some of the financial service businesses in which we’re relatively new. For example, we’ve been in the trust business for a long time, but we’re geographically confined as to where we offer those services. Our goal is to offer all of our products and services to all the markets we serve. A / I go back to our community-banking philosophy. We want decisions to be made at the local level. Too many times, young folks in organizations get buried and don’t get a chance to be out front representing their institution. That’s not the case with Simmons. We expect all of our markets to grow, and as a result, we expect those who prepare properly will have a tremendous career opportunity here at Simmons. As we started coming out of the recession, we found ourselves facing circumstances we needed to address. Q / Do you see future acquisitions for Simmons? We had excess capital, and it was hard to earn a return on capital that was acceptable in the market. We had a lot of liquidity, and our loan-to-deposit ratio was in the low 60s. That gave us a lot of capacity to fill. We had been successful with some FDIC acquisitions that were the only mergers and acquisitions going on during the 2008 to 2011 time frame. However, as we started coming out of the recession, more traditional opportunities became available. Unfortunately for us, our stock price didn’t have A / I do. We continue getting calls every week from banks and from investment bankers who understand their clients’ needs. At any one time, we might have five to 15 active conversations going on. Most of those will never go to the next level. But our name is out there in the market as a desirable partner in the mergers and acquisitions business. 4 5 financial highlights [STRONG REGULATORY CAPITAL] Regulatory Minimum Regulatory “Well-Capitalized” Simmons First National Corp. 11.20% 14.21% 4.00% 5.00% 4.50% 6.50% LEVERAGE RATIO COMMON EQUITY TIER 1 CAPITAL RATIO 16.02% 16.72% 6.00% 8.00% 8.00% 10.00% TIER 1 CAPITAL RATIO TOTAL RISK-BASED CAPITAL RATIO [STRONG ASSET QUALITY] Consistently Outperforming Our Peers Nonperforming Loans as a % of Loans1 Net Charge-Offs as a % of Average Loans3 Net Credit Card Charge-Offs as a % of Credit Cards Portfolio SFNC ALL U.S. BANKS .68%2 .16%2 1.28% 1. 7 1%2 .43%2 2.91%4 S R A L L O D F O S N O I L L I B 8 7 6 5 4 3 2 1 S R A L L O D F O S N O I L L I M 1,600 1,400 1,200 1,000 800 600 400 S R A L L O D F O S N O I L L I M 90 80 70 60 50 40 30 20 10 [TOTAL ASSET GROWTH] $7,559,658,000 $4,383,100,000 $4,643,354,000 $3,320,129,000 $3,527,489,000 2011 2012 2013 2014 2015 [MARKET CAPITALIZATION] $1,555,100,268 $733,833,637 $602,805,410 $468,002,899 $419,524,850 2011 2012 2013 2014 2015 [CORE EARNINGS GROWTH1] $89,622,000 Core Earnings Per Share: $3.18 $24,988,000 Core Earnings Per Share: $1.45 $26,870,000 Core Earnings Per Share: $1.59 $27,612,000 Core Earnings Per Share: $1.69 $38,707,000 Core Earnings Per Share: $2.29 2011 2012 2013 2014 2015 1 Includes troubled-debt restructures 2 Legacy loans; excluding all acquired loans 3 Excluding credit cards 4 Most recently published industry average 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 that will assist investors and analysts in evaluating the core operating results of the company and predicting future performance. 6 7 financial highlights [CONDENSED CONSOLIDATED BALANCE SHEETS] December 31, 2015 and 2014 (In thousands) ASSETS Cash and cash equivalents Investment securities 2015 $252,262 2014 $335,909 1,540,887 1,082,870 Mortgage loans held for sale and assets held in trading accounts 34,687 28,252 Legacy loans Allowance for loan losses Loans acquired, not covered by FDIC Loans acquired, covered by FDIC NET LOANS 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 3,246,454 2,053,721 (31,351) 1,672,901 — (29,028) 575,980 106,933 $4,888,004 $2,707,606 — 193,618 923 44,820 — 380,923 223,534 22,663 122,246 6,846 44,856 11,793 130,621 149,692 LIABILITIES AND STOCKHOLDERS’ EQUITY Non-interest bearing transaction accounts 1,280,234 889,260 Interest bearing transaction accounts and saving deposits 3,485,845 2,006,271 Time deposits TOTAL DEPOSITS Other borrowings Subordinated debentures Accrued interest and other liabilities TOTAL LIABILITIES Total stockholders’ equity TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY 1,320,017 965,187 $6,086,096 162,289 $3,860,718 114,682 60,570 173,848 $6,482,803 1,076,855 $7,559,658 20,620 153,015 $4,149,035 494,319 $4,643,354 [CONDENSED CONSOLIDATED STATEMENTS OF INCOME] December 31, 2015 and 2014 (In thousands, except per share & other data) Interest income Interest expense NET INTEREST INCOME Provision for loan losses NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES NON-INTEREST INCOME Trust income Service charges on deposit accounts Other service charges and fees Mortgage banking income Investment banking income Credit and debit card fees Bank owned life insurance income Net gain (loss) on assets covered by FDIC loss share agreements CORE EARNINGS1 2014 $185,035 2015 $300,948 22,353 13,971 $278,595 9,022 $171,064 7,245 GAAP EARNINGS 2015 $300,948 22,353 $278,595 9,022 2014 $185,035 13,971 $171,064 7,245 $269,573 $163,819 $269,573 $163,819 9,261 30,985 9,921 11,452 2,590 26,660 2,680 7,111 25,650 3,574 5,342 1,070 22,866 1,843 9,261 30,985 9,921 11,452 2,590 26,660 2,680 7,111 25,650 3,574 5,342 1,070 22,866 1,843 (7,336) (20,316) (14,812) (20,316) Other income 15,344 6,272 17,089 15,052 TOTAL NON-INTEREST INCOME $101,557 $53,412 $95,826 $62,192 NON-INTEREST EXPENSE Salaries and employee benefits Occupancy expense, net Furniture and equipment expense Deposit insurance Merger related costs Other operating expenses TOTAL NON-INTEREST EXPENSE INCOME BEFORE INCOME TAXES Provision for income taxes CORE EARNINGS1 Preferred stock dividends CORE EARNINGS AVAILABLE TO COMMON SHAREHOLDERS1 NET INCOME AVAILABLE TO COMMON SHAREHOLDERS 136,967 16,594 14,290 4,861 4,201 — 62,475 $239,388 $131,742 41,863 $89,879 257 $89,622 88,325 12,307 9,314 4,507 3,354 — 44,167 139,408 16,858 14,352 4,861 4,201 13,760 64,695 89,210 12,833 9,325 4,507 3,354 7,470 49,022 $161,974 $258,135 $175,721 $55,257 16,550 $38,707 — $38,707 $107,264 32,900 $50,290 14,602 257 — $74,107 $35,688 DILUTED CORE EARNINGS PER SHARE1 $3.18 $2.29 DILUTED EARNINGS PER SHARE $2.63 $2.11 1 “Core earnings” and “diluted core earnings per share” are financial measures that exclude nonrecurring items such as items related to 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. $7,559,658 $4,643,354 Other real estate and foreclosure expense 8 9 financial highlights [SELECTED CONSOLIDATED FINANCIAL DATA] Years Ended December 31 (In thousands, except per share & other data) FINANCIAL STATEMENT DATA Total assets $7,559,658 2015 Total loans Total deposits Total equity Core earnings available to common shareholders1 4,919,355 6,086,096 1,076,855 89,622 2014 2013 2012 2011 $4,643,354 $4,383,100 $3,527,489 $3,320,129 2,736,634 2,404,935 1,922,119 1,737,844 3,860,718 3,697,567 2,874,163 2,650,397 494,319 403,832 406,062 407,911 38,707 27,612 26,870 24,988 ANNUALIZED CORE PERFORMANCE RATIOS1 Return on average assets Return on average common equity Return on average tangible common equity Net interest margin Efficiency ratio 2015 1.25% 9.55% 2014 0.86% 8.79% 15.05% 11.89% 4.55% 59.08% 4.47% 69.88% 2013 0.77% 6.33% 7.54% 4.21% 2012 0.81% 6.57% 7.81% 3.93% 2011 0.76% 6.15% 7.43% 3.85% 71.28% 70.17% 67.86% PER SHARE DATA Diluted earnings Diluted core earnings1 Book value Tangible book Dividends CAPITAL RATIOS AT PERIOD END Common stockholders’ equity to total assets Tangible common equity to tangible assets Common equity Tier 1 risk-based ratio Tier 1 leverage ratio Tier 1 risk-based ratio Total risk-based capital ratio Dividend payout $2.63 3.18 34.55 21.97 0.92 $2.11 2.29 27.38 20.15 0.88 $1.42 1.69 24.89 19.13 0.84 $1.64 1.59 24.55 20.66 0.80 $1.47 1.45 23.70 20.09 0.76 13.84% 10.65% 9.21% 11.51% 12.29% 9.26% 8.06% 7.24% 9.87% 10.61% 14.21% 11.20% 16.02% 16.72% — 8.77% 13.43% 14.50% 34.98% 41.71% — 9.22% 13.02% 14.10% 59.15% — 10.81% 19.08% 20.34% 48.78% — 11.86% 21.58% 22.83% 51.70% ASSET QUALITY RATIOS2 Nonperforming assets/ total assets Nonperforming loans/ total loans Allowance/ nonperforming loans Allowance/total loans Net charge-offs/ average loans3 Net credit card charge- offs/credit card loans OTHER DATA Number of financial centers Number of full-time equivalent employees 0.85% 0.58% 1.25% 0.63% 1.69% 0.53% 1.29% 0.74% 1.18% 1.02% 165.83% 223.31% 297.89% 231.62% 186.14% 0.97% 0.16% 1.28% 149 1,946 1.41% 0.20% 1.57% 0.15% 1.71% 0.26% 1.91% 0.30% 1.27% 1.33% 1.50% 2.06% 109 131 92 84 1,338 1,343 1,068 1,083 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 that will assist investors and analysts in evaluating the core operating results of the company and predicting future performance. 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 Excludes credit cards 10 11 dividend history & total shareholder return Simmons First National Corporation board of directors [CONSISTENT DIVIDEND HISTORY] $1.00 $.80 $.60 $.40 $.20 E R A H S R E P D N E D I V I D 2015 Annual Dividend Yield: 1.8% (Based on 12/31/15 stock price) $0.92 $0.88 $0.84 $0.80 $0.76 $0.76 $0.76 $0.76 $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 ‘15 107 CONSECUTIVE YEARS OF PAYING DIVIDENDS TO OUR SHAREHOLDERS [From Left to Right] JOE D. PORTER President, Akin Porter Produce, Inc. MARK C. DORAMUS Chief Financial Officer, Stephens, Inc. EUGENE HUNT Attorney, Hunt Law Firm JAY D. BURCHFIELD Retired Financial Services Executive EDWARD DRILLING President, AT&T Arkansas HARRY L. RYBURN, D.D.S. Retired Orthodontist W. SCOTT McGEORGE President, Pine Bluff Sand & Gravel Company GEORGE A. MAKRIS, JR. Chairman & Chief Executive Officer, Simmons First National Corporation ROBERT L. SHOPTAW Chairman of the Board, Arkansas Blue Cross & Blue Shield STEVEN A. COSSÉ Retired President & Chief Executive Officer, Murphy Oil Corporation WILLIAM E. CLARK, II Chairman & Chief Executive Officer, Clark Contractors, LLC CHRISTOPHER R. KIRKLAND Principal, Anchor Investments, LLC [NOT PICTURED] DAVID L. BARTLETT Retired President, Simmons First National Corporation Retired Chief Banking Officer, Simmons First National Bank [ 1–YEAR1 TOTAL SHAREHOLDER RETURN3 3-YEAR2 TOTAL SHAREHOLDER RETURN3 1-Year Total Shareholder Return(1) 3-Year Total Shareholder Return(1) ] [ ] (Dividends + Stock Appreciation) (Dividends + Stock Appreciation) SFNC SNL U.S. Bank Index (4) +1.7% +28.9% 50 40 30 20 10 0 -10 % n r u t e R l a t o T 160 140 120 100 80 60 40 20 0 % n r u t e R l a t o T SFNC +117.6% SNL U.S. Bank Index (4) +56.1% -20 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 -20 Dec-12 Dec-13 Dec-14 Dec-15 SFNC SNL U.S. BANK SFNC SNL U.S. BANK 1 Period from January 1, 2015 through December 31, 2015 2 Period from January 1, 2013 through December 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. Source: SNL Financial stock exchanges (NYSE, NYSE MKT an NASDAQ) 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 Patrick A. Burrow, Executive Vice President and General Counsel, Simmons First National Corporation; PO 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. 12 13 Simmons First National Bank board of directors [From Left to Right] W. SCOTT McGEORGE President, Pine Bluff Sand & Gravel Company JOHN LYTLE, M.D. Orthopedic Surgeon, South Arkansas Orthopedic Center H. FORD TROTTER, III General Manager, Trotter Auto Group MET L. JONES, II General Manager, Dickey Machine Works BEVERLY MORROW Vice President, TLM Management DEAN CHAMBLISS Owner, H&D Farms JANE W. ROGERS Community Volunteer HARRY L. RYBURN, D.D.S. Retired Orthodontist MARTY D. CASTEEL Senior Executive Vice President, Simmons First National Corporation Chairman & Chief Executive Officer, Simmons First National Bank CLIFTON ROAF, D.D.S. Retired Dentist MARK SHELTON, III President, M.A. Shelton Farming Company, Inc. ADAM B. ROBINSON, JR. President, Ralph Robinson & Son, Inc. MARY PRINGOS President, Phillips Planting Company, Inc. ROBERT L. SHOPTAW Chairman of the Board, Arkansas Blue Cross & Blue Shield [NOT PICTURED] H. GLENN RAMBIN President, R&R Farms JOHNNY McGRAW Owner, McGraw Farms GEORGE O’CONNOR Owner & President, O’Connor Distributing STEVEN A. COSSÉ Retired President & Chief Executive Officer, Murphy Oil Corporation DAVID L. BARTLETT Retired President, Simmons First National Corporation Retired Chief Banking Officer, Simmons First National Bank N. CRAIG HUNT Retired President & Chief Credit Officer, Simmons First National Bank 14 15 [IN MEMORY] MONTY M. SCOTT 1949-2015 We are saddened by the loss of our longtime friend Monty M. Scott. His genuine interest and wise counsel will be missed. a closer look at Arkansas Freddie Black logged some serious miles during the final half of 2015. Greg Martin succeeded Stobaugh. Martin has been in banking in “Mike has had a wonderful career in banking, and we are business we didn’t have. We’re working hard to expand our northwest Arkansas since 2002. In 2012, the Northwest Arkansas fortunate he has spent most of it with Simmons,” Black said. wealth management and insurance services. That’s something Black became Simmons Bank’s regional chairman for the state of Business Journal named him to its list of most influential leaders in the region younger than 40. He’s a graduate of the Leadership Arkansas late in the summer after having served as the south Fayetteville program. West began his banking career with American State Bank in 1994. West was also an executive with General Pallets Inc. in Fort Smith from 2010–2012 between stints in the banking to offer our customers, and it’s a goal of mine to get everybody on board in our footprint selling those products. There’s no competition selling those products in rural markets.” Arkansas chairman. Arkansas transitioned from three regional chairmen to one state chairman. Black, a Simmons employee since 1984, was a logical choice to fill the new position. “I’ve traveled to almost every bank in the state since August,” said Black, who lives at Lake Village in the state’s far southeast corner. “I’ve enjoyed every minute of it and look forward to the opportunity to improve, be more efficient and grow our bank.” In addition to traveling across the state, Black had to replace veteran executives in two key markets. James Stobaugh announced his retirement as the northwest Arkansas community president. Stobaugh will continue in an advisory role through 2016. Stobaugh began his banking career in 1968 and worked for Worthen National Bank in Pine Bluff before transferring to Fayetteville in 1992. Stobaugh came out of retirement to work for Metropolitan National Bank and served as community president when the company merged with Simmons. “James was valuable as we moved through the transition, and I’m glad he stayed with us,” Black said. “We’re glad he will continue to advise us.” “Greg has become a star in banking, and he will now help us industry. Simmons has grown rapidly in Arkansas, but Black is looking grow Simmons’ northwest Arkansas market share,” Black said. “His name kept coming up as the best [in northwest Arkansas]. Greg is known for his community involvement and is just the kind of banker we want here at Simmons.” A few miles south down Interstate 49 in Fort Smith, Rodney West replaced Mike Flynn, who retired at the end of the year. Flynn worked in banking for four decades, starting at American State Bank in Charleston, N.C. in 1975. A decade later, he became the bank president. When American State Bank merged with Simmons in 1988, Flynn became the community president. “Rodney has great credit and business-development skills,” for more areas where the company can expand. Black said. “He has made some new employee moves that will “There’s a lot of Arkansas we aren’t in,” he said. “There’s a lot of make his team stronger and make customers want to move to opportunity to expand in eastern Arkansas. We also don’t have our bank.” banks south of Hot Springs or west of El Dorado. There’s Chris White became the central Arkansas community president certainly a void in our state that would help fill in our footprint.” in September when Adam Mitchell was promoted to chief retail Black started with Simmons in 1984 when Simmons acquired officer for the company. First State Bank & Trust in Lake Village where Black was working for his uncle. A lot has changed since then, but the banking philosophy hasn’t. That’s why Black is still an employee and excited about the future. “It has been a great company to work for,” Black said. “It’s a good organization that has changed a lot. But its core values and commitment to customer service and people have stayed the same. It’s why I’ve never had the desire to work elsewhere.” “Chris has been with us his entire career,” Black said. “I’m really excited about this opportunity for Chris. Twenty-five percent of our assets are in central Arkansas, so it’s a big market for us.” Other major changes were Franklin Bass being promoted to community president at Hot Springs and Jason Culpepper becoming the community president at Conway. The job has become much more challenging than it would have been in the past with recent mergers with Metropolitan and Delta Trust & Bank. Black said he’s encouraged by the progress Simmons has made in Arkansas. “We’ve integrated Delta and Metropolitan, and that has given us some great locations in northwest and central Arkansas,” Black said. “That has helped us become a dominant player in the Little Rock market. Delta has given us some other lines of FREDDIE BLACK Arkansas Regional Chairman 16 17 As he reflects on an eventful year, he knows the company “Andrea has added to her team,” Metzger said. “We’re looking to add again this year. We’re looking made the right decision. to add a third location in Wichita. Basically, we’ve gotten to a point where we’re out of space.” “I’m as strong today as I was in December 2013, when I In 2016, the Missouri/Kansas region will use technology to drive business. a closer look at Missouri and Kansas Gary Metzger is a former college baseball player who’s known for his sports analogies. As he sits in his Springfield, Mo., office and brags on Simmons Bank associates, he sounds like a coach who has seen his team overcome adversity to win a close game. The year 2015 was challenging as Liberty Bancshares merged with Simmons. first sat down with everybody,” said Metzger, a 41-year banking veteran. “Our philosophies are still running true. The empowerment is still running true. Everything that [Simmons chairman and CEO George Makris] said about Simmons’ philosophy is coming true. I’ve yet to find anything to the contrary in a meeting, conversation or memo. I’m just as “I’ve been in banking for a long time,” said Metzger, the bullish today as when we were going into the transaction.” Missouri/Kansas regional chairman for Simmons. “I’ve been with bigger organizations, and I’ve been with smaller organizations. But the group of people I’ve been fortunate enough to be associated with at Liberty Bank is by far the strongest group of bankers, as well as individuals. These are all good people. There’s an old saying, ‘When the whip snaps, the thoroughbred responds and the mule kicks.’ We have a lot of thoroughbreds here.” The change was a big one for some employees who had been with the bank for most of their careers. Metzger, the former Liberty chief executive officer, was pleased with the overall attitude. Metzger is also happy with what St. Louis community president Travis Liebig has accomplished with his team and branches. The group created a buzz in the market by attracting some large commercial accounts that could lead to more business. “He grew that market by more than $100 million,” Metzger said. “That’s a very good market for us, and we’re now gaining the recognition. What you have to realize about St. Louis is that it’s very parochial. Even when you look at the expanse of 3 million people there, St. Louis is still, in some ways, a small town. It’s a matter of who knows who. It’s still a people business. We have a very strong team that has been “With all conversions, someone is going to drop a glass, working hard. In 2016, they will duplicate or exceed what and it’s going to break,” Metzger said. “We swept it up they were able to do in 2015.” and moved forward. Learning new systems is always challenging, but we’re excited from the standpoint of bringing additional financial strength, more funding sources and a much stronger product grouping than what we had before.” Simmons’ performance in the Wichita market, led by community president Andrea Scarpelli, also pleased Metzger. In southwest Missouri, Simmons did well in 2015 and continues carrying Liberty’s reputation of successful small-business lending. “On the retail side, we’re now taking it to the next phase,” Metzger said. “We have the technology, we might as well take advantage of it. Our cash-management system is as good, or better, than any of our competitors. You don’t ever have to leave your desk. That’s the next step we’re working very hard on. I think you’ll see some significant deposit growth this coming year in the St. Louis and Wichita markets.” In southwest Missouri, Simmons did well in 2015 and continues carrying Liberty’s reputation of successful small-business lending. “It’s competitive, but we feel good about southwest Missouri,” Metzger said. “We have the conversion behind us. We’re out there again developing new business. With the level of sophistication that Simmons has brought to the market and with the additional funding sources, we feel very bullish. You’ll never see things in southwest Missouri like you will see in some areas. The highs are never as high, and the lows are never as low.” Another development in southwest Missouri was Simmons’ merger with Trust Company of the Ozarks. “That is huge,” Metzger said. “I don’t think people fully understand that or really appreciate it. If you’re a relationship bank, you can’t build your business on being transactional. The only way you’re going to differentiate yourself is if you come with a complete package.” Metzger also lauds southwest Missouri community president Garry Robinson, who has been instrumental in the transition and looks to continue adding to Simmons’ market share in the area in 2016. The Kansas City market also made gains in 2015, and Metzger is looking forward to a successful 2016 in that metropolitan area. G A RY M E T ZG E R Kansas/Missouri Regional Chairman 18 19 a closer look at Tennessee In September, former First State Bank locations in Tennessee officially became part of the Simmons Bank family. The merger wasn’t without growing pains, but a group of determined, resilient associates pleased Tony Gregory. “We have some great people,” said Gregory, First State had several suitors. The company’s experience, will serve on an advisory basis the Tennessee regional chairman for Simmons. board decided that Simmons’ size and until Dec. 31, 2016. “Some stepped up into management roles. It community-feel would be a good fit. was just a blessing to be around them and see them succeed. Some have been relocated to different parts of the state, and they’re doing exceptionally well.” “John started with the company right out “Being part of an almost $8 billion company of college when it was a $19 million bank,” puts us in a unique position,” Gregory Gregory said. “We were able to grow the said. “Our footprint is bigger than that of a footprint in Tennessee. It had grown to $2 community bank, but not as big as a mega billion when it was acquired by Simmons. First State built a strong reputation and bank. We’re in a sweet spot to pursue business John knows bankers and customers across customer base while expanding from west that larger banks might not pursue, while the state, and I’m fortunate to have him as Tennessee to other parts of the state. During smaller banks don’t have the capacity. That has an adviser until the end of this year. He has the merger, associates assured customers that been a huge plus as we march across the state been a good captain. He will be a friend and the service they had come to expect would and increase our footprint.” adviser beyond 2016.” continue with Simmons. “Our core customers are doing business with of banking experience. Gregory, who lives in has spent much of his time filling positions the same banker at the same desk in the same Jackson, Tenn., joined First State as executive and promoting associates due to vacancies office,” Gregory said. vice president in 1998. He became the bank’s and opportunities created by the merger. Gregory came to Simmons with three decades Since becoming regional chairman, Gregory It took associates working together to ensure that customer service didn’t dip during the president and CEO in 1999, and helped establish a presence for the west Tennessee bank in Nashville and other parts of middle conversion. Tennessee. “We’re glad to have the conversion behind us,” Gregory said. “It’s definitely becoming easier When Community First Bancshares Inc. consolidated First State Bank and three for us every day.” other bank charters into one entity in 2003, Gregory became the chief banking officer. His role included management of the retail and commercial functions of the bank. From 2000– 2015, Gregory helped establish new banking operations in 15 communities. He also helped grow the bank from $500 million to $2 billion in assets prior to its merger with Simmons. Gregory officially assumed his position Jan. 1, 2016. John Clark, the former First State Bank chief executive officer, was the regional chairman until his retirement was announced in November. Clark, who has 40 years of banking TONY GREGORY Tennessee Regional Chairman Blake Mansfield moved from west Tennessee to Maryville in east Tennessee to help grow operations in that area of the state. Andy Culbreath, the community president at Jackson, moved to Nashville to help manage the commercial lending operation. “He has done a fantastic job and is in the process of adding to his team,” Gregory said of Culbreath. Because of an unexpected retirement, Sam Lewallen, who had been the community president in Martin, Tenn., became the manager of an additional market. Andy Page also expanded his responsibilities as a community president in west Tennessee. “We have some really resilient people who have excelled,” Gregory said. Simmons Bank Jackson/Oil Well Road The merger also created opportunities While there were many changes in “I was born and raised in middle Tennessee for Debra Wiley, who became a regional Tennessee, some procedures stayed the and went to college in east Tennessee at the operations manager, and for former First same. In fact, Simmons adopted several University of Tennessee, and I’m now in my State community president Andrea Hughes, First State procedures and systems. 18th year in western Tennessee,” Gregory who is now a regional sales manager. There were promotions for Chet Alexander, The saddest news was the loss of longtime vice president for consumer lending and employee Frank Christie, who had become credit administration; Cindy Ford, vice the community executive in Jackson during president of consumer lending; John the summer after working as a commercial Faulkner, senior manager of credit analysis lender in Humboldt. Christie died of a heart and Victor Castro, senior vice president of attack in December. treasury management. “He was a great guy and a fantastic worker,” With the merger completed, Gregory shifted Gregory said. “It was very untimely. It his focus to growth. said. “I’ve gotten to know a lot of people and bankers all over the state. Our goal is to continue recruiting the best bankers in each market and looking for potential partners for the future. We’re part of a growing company. Our market represents 20 percent of the company, and we want to make sure no matter how large Simmons grows, we keep that ratio. We aren’t here to stay the same size. We’re here to grow. affected the entire state. Everybody liked him.” 20 21 Simmons Country focus: Union City Union City, Tenn., residents have long known how nice their town is. Now visitors from across the country are discovering Union City. Thanks to Discovery Park of America, the brainchild of the late Union City native Robert Kirkland, the area received a tourism boost and even drew “Today” show host Al Roker on his quest to visit 50 states in a week. The attraction combines science, pop culture, history Rippy, who enjoyed a successful career in the insurance and other subjects for an educational center that has industry, had pushed for economic development and drawn school groups and tourists from a four-state tourism in the area for years. There was a proposed area. Discovery Park officials hoped to draw 150,000 shopping area and water park that didn’t materialize, visitors the first two years. They surpassed those but Kirkland had an idea six years ago that would be a expectations, drawing more than 580,000 visitors in gift for area youth while providing an economic boon. 26 months, Discovery Park’s Chief Executive Officer Jim Rippy said. The foundation spent almost $100 million on the project that includes a state-of-the-art exhibition center with a Rippy is a childhood friend of Kirkland, who built the tower. The rest of the campus includes locomotives, a Kirkland’s Inc. chain of home stores with his cousin, historic church and other pioneer buildings. Carl. For a time, Kirkland lived in Nashville following his graduation from the University of Tennessee but settled in Union City to raise his children. “He could have lived anywhere in the world, but he wanted to raise his kids here,” Rippy said. “He lived right next door to me. A couple of times, he looked around and thought about moving but said, ‘I can’t find anywhere better, so I’m going to stay here.’” “Getting half a million visitors in two years to an area our size is a wonderful thing,” said Union City Mayor Terry Hailey, who serves on the Discovery Park board. The 2013 opening came at a good time for Union City since the Goodyear Tire & Rubber Co. plant, which had employed almost 1,800 people at one time, had closed in 2011. The number of jobs and the revenue that Discovery Park produced helped the area’s economy, Kirkland’s presence was a boost to the area long which depends heavily on the agricultural industry. before Discovery Park. Along with his wife, Jenny, the couple started a foundation after Kirkland made a series of investments that grew his holdings. The couple began the Promethean Foundation, which funds preschool scholarships for at-risk children, and contributed to other charitable causes in west Tennessee. “[Kirkland] had a theory,” Rippy said. “He said, ‘I can’t change the world by donating money to an international organization. But I can change things in Union City and Obion County.’ He did that and felt strongly that he couldn’t make a difference worldwide, but he could make a difference in his home area.” “We’ve been able to recover,” Hailey said. “Our sales-tax revenue never decreased. Our unemployment rate was 18 percent, the highest in the state, but we have gotten it down to 8.4 percent now. If you want to find a job in Obion County, you can.” Before visitors began flocking to Union City, longtime residents, such as Union City School District Superintendent Gary Houston, stayed in the area because of an emphasis on academic achievement and safety, which is ideal for raising children. “We have a vascular surgeon on our school board,” Houston said. “He lived in Memphis and could have “I wanted to work for a bank that was involved in the community and would grow and offer opportunities. Simmons Bank offers great opportunities.” –Brian Kissell stayed there, but he moved back to Union City because he wanted his children to grow up in Union City like he did.” The school district has almost 1,600 students attending three campuses. Part of the appeal for parents is the district’s commitment to preparing students for college. Union City ranks first in ACT college admission scores in west Tennessee and in the top 10 statewide. A magnet school within the high school offers an advanced placement program that encourages students to excel. For those who take the AP tests to opt out of college courses, the district reimburses students the fee if they earn a passing score. The district gives students monetary awards for higher scores. “The biggest part of the money comes from the Union City Schools Foundation,” Houston said. “We began this program 10 years ago to teach advanced classes in math and language starting in fourth grade.” Union City students excel in the classroom and in extracurricular activities. The varsity football team won state titles in the 2013–2014 before a 38-game winning streak ended in the 2015 state playoffs. The boys’ basketball program has won five state titles, including two in the past decade. The girls’ basketball program also added a recent state title. Hailey, who has served as the Union City mayor since 1988, also points to amenities such as a turf management department that manages several ballfields and a fully stocked fish pond in the center of town. One doesn’t have to look far to see the impact of Simmons Bank on the area. The company is one of the original sponsors of Discovery Park and has signage around the children’s exhibits as well as an ATM inside the park. The bank is active in area school districts, sponsoring extracurricular and academic programs. “We came back to Union City because we wanted to raise a family here,” Simmons Bank’s Union City community executive Brian Kissell said. “I wanted to work for a bank that was involved in the community and would grow and offer opportunities. Simmons Bank offers great opportunities.” Rippy also had opportunities to leave his hometown, but he couldn’t find a better place to live or raise a family. Now, his job is to bring visitors to the region to share Kirkland’s vision. “I’m glad I stayed,” Rippy said. “I’ve really enjoyed it. It’s a great place to live, and with Discovery Park, it’s a great place to visit.” 22 23 Photo used with permission. ©2016 Discovery Park of America the Simmons First Foundation gives back SIMMONS BANK HAS A RELATIONSHIP WITH THE CITY OF PINE BLUFF THAT SPANS MORE THAN A CENTURY. Pine Bluff is the hometown for many of its employees, including In addition to Pringos and May, other task force members are the Simmons First National Corp. chairman and chief executive Irene Holcomb, George Stepps, Byron Tate, Laurence Alexander, officer, George A. Makris, Jr. It’s that dedication to the city that Rev. Glenn Barnes, Chuck Morgan, Lou Ann Nisbett and spurred the bank, through a donation to the Simmons First Catherine Smart. Foundation, to create the Go Forward Pine Bluff initiative to expand the city’s tax base. Task force members determined those who serve on four pillar- steering committees. The task force will also approve plans and “We want our hometown to be successful,” Makris said. ensure there’s no overlap in plans. Carla Martin will chair the “Simmons expressed an interest in funding programs to spur pillar groups. The four pillar groups and their chairmen are: redevelopment in Pine Bluff. We’re hopeful that the Go Forward Pine Bluff process will help pinpoint how to direct our efforts • Economic development – Nick Makris most effectively. We believe that the Simmons First Foundation • Education – Scott Pittillo is the appropriate vehicle for this project. If successful, Simmons can use the foundation to replicate the program in other • Infrastructure and government – Rosalind Mouser “The planning group will measure our success in four ways,” May said. “The first will be our ability to recruit a fully inclusive planning team that has the capacity and the desire to spend many hours during 2016 making recommendations that likely will result in significant change. Second will be our ability to embrace the successes that came from the 20/20 effort and then focus our full attention on the difficult tasks that must be done to attract and retain jobs and families in Pine Bluff. Third will be our ability to pass the torch from the planning group to the appropriate organizations that will implement the plan in 2017 and 2018. Finally will be our ability to identify resources that will fund the execution of the plan.” J. THOMAS MAY Chairman & Chief Executive Officer, Simmons First Foundation The foundation has now funded 16 grants for a total of $296,808 in full grants and two mini-grants of $2,000. During the most The project is one of the largest the foundation has funded recent cycle, the foundation approved programs for: communities we serve in our banking footprint.” • Quality of life – Kaleybra Morehead since its inception in 2013. • Purchasing equipment designed The initiative started with Simmons making a donation. “We’re reminded that with change, there will be some pain,” May “It’s good to see the effort and the outreach of what the for handicapped children That evolved into an effort that includes steering committees said. “But as a great philosopher once said, ‘No pain, no gain.’ It that focus on economic development, infrastructure and really isn’t a question of can we do it. It’s a question of will we government, education and quality of life. do it. We believe the inclusive planning process will produce a Simmons First Foundation is doing,” Alexander, University of Arkansas at Pine Bluff chancellor, said. “It’s also good to see all aspects of the community coming together around this project. • A program that was developed to assist children with dyslexia “The bank made an offer to the city to do some things, and it appeared to be the chicken and the egg on who was going to plan of action that will have to be studied and evaluated by our Pine Bluff needs it and can certainly benefit… I’m excited to be a • An initiative to help foster children identify citizens. They, in turn, will decide whether the effort, costs and part of it because I think it can be a game changer.” and mitigate learning deficiencies do something first,” foundation board member Mary Pringos said. “It seemed like there was really no resolution, so maybe our future.” the pain that goes with the change will truly be an investment in this is the best way to start. If you just throw money out there Makris announced the grassroots effort in November. The without knowing where it needs to go, you may or may not have steering committee and task force chairs spent the final part a good effect.” of the year gathering volunteers for the planning phase of the Simmons First Foundation Chairman and Chief Executive Officer Tommy May is helping steer the redevelopment initiative. initiative. Execution of the plan’s objectives will begin in January 2017 with a planned completion date of Dec. 31, 2018. In addition to the Go Forward Pine Bluff effort, the foundation • Several programs for underprivileged youth continued to make a difference through grants to entities that are improving health care and education for children. The foundation recently approved grants for programs in El Dorado, Pine Bluff, Little Rock, and Russellville for a total of $99,178. 24 25 the Ryburn legacy EXCELLING IN ONE CAREER WASN’T ENOUGH FOR DR. HARRY RYBURN OF PINE BLUFF. He wrapped up a 41-year orthodontics “[Ryburn] has had an influence on every major Already with three children, Ryburn and his well enough to know that the team could Church in Pine Bluff. Through it all, his practice in 2005, but continued to serve decision that has impacted the bank since wife, Ann, returned to Pine Bluff to open an overcome any shortcomings I might have family remained his priority. as the lead director on the Simmons Bank 1976,” said Marty Casteel, Simmons Bank’s orthodontics practice. had. After several long conversations with board. As he celebrates his 80th birthday, chief executive officer. “There have been a he retires from the board in 2016, capping a heck of a lot of decisions to make during that successful 40-year stint. time. He was a trusted adviser to Tommy May “Dr. Ryburn, like his predecessors, truly was a believer that our board was responsible for and other CEOs, and he has been the most active outside director we’ve had.” “The first month, I would have treated a baboon if it had walked in,” Ryburn said. “You build a practice one patient at a time. Gradually, it grew. I didn’t want it to be too Dr. Ryburn, primarily to understand what he thought was important, I decided to give it a try. I still remember the best piece of advice I was given: ‘Don’t mess it up.’” “I always put my family first in everything I did,” Ryburn said. “I kept my faith at the top of all of it. My practice and banking coalesced. I felt comfortable in banking, and I could be helpful in banking. big where I couldn’t provide personal care. When Ryburn joined the Simmons board Otherwise, I wouldn’t have stayed.” providing a good return to our shareholders Ryburn’s family moved from south of The right reason [to practice] is to care for in 1976, the company’s assets were $188 while always focusing on safety and Woodlawn to Pine Bluff when he was in the the patient and not just grow your bank million. By the end of 2015, the company’s soundness, serving the customer, serving our third grade. Ryburn’s parents worked multiple account. If you do the first, the second will assets had grown to almost $8 billion. community and rewarding our associates,” jobs to support a large family. He learned at take care of itself.” Simmons notched record core earnings of said Tommy May, who Ryburn helped hire a young age that if he wanted something, he as Simmons’ chairman and chief executive was going to have to work for it. After some tough negotiations, Ryburn secured a loan from Simmons to buy a $25.9 million in the fourth quarter of 2015. That was up 127.6 percent from the same period in 2014. “When I grew up, I was never unhappy with home and equipment for his practice. His what I had,” Ryburn said. “I thought things relationship with Simmons was born, but “As Dr. Ryburn moves toward retirement were great. I knew that I didn’t have what little did he know that he would go from from the board, his legacy at the bank is some of the other fellows had, and that was customer to a vital part of the company. complete,” May said. “I know he moves officer in 1987. “To him, it was always about finding the right balance for the stakeholders. Dr. Ryburn, even before he retired as an orthodontist, lived and breathed Simmons Bank. It was a part of his DNA, and it still is today.” OK. I knew that one day I would be able to do what I wanted to do. I was determined to In late 1975, Ryburn received a call asking if he wanted to be a Simmons director. After meeting with bank executives, he accepted the position. into retirement with mixed emotions, but he also does so with great pride because he has been a major part of building this organization.” Ryburn most likely would have continued serving on the board had he not met the mandatory retirement age of 80. He plans to spend his time reading and traveling with his wife. He can enjoy himself knowing that Simmons is a larger, stronger company than it was 40 years ago. “It’s not in my nature to take credit for much,” Ryburn said. “I’m just glad I was able to do what I was able to do for Simmons. I believe the shareholders of Simmons have benefited long term because of what we have done. When you grow the way we’re growing, and you do D R . H A R RY RY B U R N Lead Director, SFNC Board Ryburn, who began serving as the lead get there. It wasn’t about money, really. It was director and chairman of the executive about achieving.” committee in 2004, helped drive Simmons to prominence with two key hires. Ryburn attended nearby Arkansas A&M (now the University of Arkansas at Monticello) May, who is now the Simmons First with the dream of becoming a dentist Foundation chairman and chief executive after befriending Pine Bluff dentist Maurice officer, built a solid foundation for the Willis. Ryburn pruned bushes and did other company before he retired after 25 years at landscaping work on campus for 40 cents an the bank. hour to pay for his cafeteria plan. In 2013, Ryburn and the other board Upon graduation from A&M, he enrolled in members turned to George A. Makris, Jr., dental school at Washington University in St. a veteran director on the Simmons board, Louis. Ryburn graduated cum laude in 1960 to lead Simmons First National Corp. as and then joined the Air Force, earning the rank chairman and orchestrate an expansion. of captain. He did dental work on the base. Under Makris’ leadership, Simmons acquired He went back to St. Louis after leaving the banks in Arkansas, Missouri and Tennessee. Air Force to get an orthodontics degree from Washington University and graduated in 1964. Ryburn plans to continue “going down to it right, you’re able to present better and more products to customers. You’re also able to recognize and measure risk better.” Ryburn became known for his preparation, often sitting at his kitchen table reading the bank.” thick reports a page at a time. He His appearances will be welcomed by scrutinized every decision. His wife confirms everyone at Simmons. that he “didn’t get much sleep” when he was thinking about who would replace May. “While he will retire from the board, I along with others will continue to count on Dr. “Dr. Ryburn approached me about the Ryburn for counsel and support,” possibility long before the decision had Makris said. to be made by the board,” Makris said. “It was such a unique idea that, other than Dr. Ryburn, I’m not sure anyone had given it a thought. Needless to say, it was quite an honor to be considered. I knew the board and the management at Simmons Not only has Ryburn enjoyed professional success, he has also spent many hours volunteering with organizations such as United Way, Little League baseball, Babe Ruth baseball and First United Methodist 26 27 Wealth Management becomes a focal point Simmons Bank had a major goal of developing its in a beautiful facility before, but moving into the National Wealth Management services capabilities in 2015. The Avenue location in Springfield integrates them with our team company made strides with first-year Executive Vice on the former Liberty Bank campus. We’re truly fulfilling the President of Financial Services Philip Tappan guiding term “cross sell” — a multidisciplinary delivery of financial the effort. Tappan said there was “a tremendous amount of integration as we tried to build a strong platform for expansion of wealth management services for the future. We had to plow a lot of services with brokerage, trust, investment management and banking at the National Avenue facility. The only thing we don’t have there is a strong insurance presence, and we’re working on that.” ground and lay a lot of footings.” Emily Kembell moved from Trust Company of the Ozarks Simmons couldn’t have found a better executive to lead the to Simmons. expansion effort. Tappan served as the president and chief “She’s an active speaker and has done seminars and executive officer of Quality Foods Inc. from 1985 to 2003 and education for the entire industry in Missouri,” Tappan said. is also the managing partner of Tappan Land & Water, which “Now is the time to let customers know those services owns and manages Arkansas properties. He also has a majority are available.” interest in the Purple Cow restaurants, which has several locations in central Arkansas. Tappan gained banking experience while serving on the Delta Trust & Bank board for 10 years. When Delta merged with Simmons, he spent a short time on the Simmons board before moving into the executive vice president position. Now that the mergers have taken place, Tappan said the focus in 2016 is on growing his division. “It’s a lot of organizational development,” he said. “We’re putting in an infrastructure, and at the same time, hiring people and moving the people we have into positions to create what I call centers of excellence for these lines of Tappan spent much of his time working on mergers in 2015. business. We’ll do some more acquisitions, but it’s incumbent First, there was the First State Bank merger in Tennessee, which included Wealth Management services components. “It gave us a footing for our investment advisory business in Tennessee,” Tappan said. “We also added financial advisers in Arkansas.” With the merger in Tennessee, Simmons now has insurance operations in multiple markets. upon us to grow a significant share organically. It’s a big responsibility. The great thing is we have a really good team to build from. They truly buy into the wealth management concept, a unified list of services under the flag of wealth management. It’s exciting.” In Arkansas, the Delta acquisition helped expand the menu of services, but it still has room to grow in 2016. Tappan said 75 percent of Simmons’ Arkansas markets include trust and investment services while only 10 percent offer insurance. He wants Simmons to be as versatile as possible in every market it serves. “It puts us in a unique selling position to have such an array of financial services in an institution,” Tappan said. “It’s costly to build out these infrastructures. So many banks are being squeezed… I’m real proud that our leadership has the foresight to continue to invest in these businesses. As I said, it puts us in a unique position and one of tremendous opportunity.” Tappan has lofty expectations. “The bulk of my career was spent helping my father-in- law build a food distribution business, and then ultimately take over the business with my own team to build a large food company,” he said. “We’re doing the same kind of thing at Simmons. We’ve moved into Tennessee and Missouri, a lot of the same markets. That company is still successful and follows that same footprint. It has shown it can work. In 2016, we’re trying to get those talented individuals we have at Simmons and get them on the right track with growth and development, quickly pushing us to greater profitability.” PHILIP TAPPAN Executive Vice President of Financial Services Simmons Wealth Management The other major development was adding Trust Company of Only the Little Rock market offers private banking. the Ozarks in Springfield, Mo. “We spent the third and fourth quarters preparing for community bank — northwest Arkansas, northeast Arkansas integration,” Tappan said. “Trust Company of the Ozarks was and central Arkansas,” Tappan said. “Our goal is to round out those services in every major Trust Investments Insurance Private Bank 28 29 expanding our footprint OVER 1,900 ASSOCIATES 4 STATES OVER 100 COMMUNITIES 149 FINANCIAL CENTERS 30 31 simmonsfirst.com 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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