Simmons First National Annual Report 2017

FY2017 Annual Report · Simmons First National

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APPROXIMATELY

$15.1

BILLION
TOTAL ASSETS

$.50

DIVIDEND
P E R S H A R E
Per share information has been retrospectively adjusted
to reﬂect the effects of the two-for-one stock split that
was effected on February 8, 2018.

APPROXIMATELY

BILLION

SHAREHOLDER EQUITY

INTRODUCTION

At Simmons First National Corporation, our goal
is to make customers' dreams come true – from
individuals to families, from small businesses to
large corporate clients. As we continue to grow,
we’re bringing even more customers, associates
and communities into our banking family – making
even more dreams come true. This past year was
no exception. 2017 saw some of the most vigorous
growth in our history. But the core values that have
made us successful for more than one hundred years
have remained the same. We are, and will always be,
a community-oriented organization with empowered
leaders making decisions at the local level. That’s how
we turn dreams into reality, over and over, and over
again.

OUR FOOTPRINT

SFNC

NASDAQ TRADE SYMBOL,
GLOBAL SELECT MARKET

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N E A R L Y

2,700

A S S O C I A T E S

institutions in general or relating to taxes,
the effect of pending or future legislation,
the ability of the Company to repurchase its
common stock on favorable terms, ability
to successfully complete mergers and
acquisitions and integrate target companies’
businesses, ability to fully realize cost
savings and other beneﬁts of mergers and
acquisitions, business disruption following
mergers and acquisitions, changes in
interest rates and capital markets, inﬂation,
customer acceptance of the Company’s
products and services, and other risk
factors. Other relevant risk factors may
be detailed from time to time in the
Company’s press releases and ﬁlings with
the Securities and Exchange Commission.
Any forward-looking statement speaks only
as of the date of this communication, and
the Company undertakes no obligation to
update these forward-looking statements to
reﬂect events or circumstances that occur
after the date of this communication.

Annualized, pro forma, projected and
estimated numbers are used for illustrative
purpose only, are not forecasts, and may
not reﬂect actual results.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this
communication may not be based on
historical facts and are “forward-looking
statements” within the meaning of Section
27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities
Exchange Act of 1934, as amended.
These forward-looking statements may
be identiﬁed by reference to a future
period(s) or by the use of forward-
looking terminology, such as “anticipate,”
“estimate,” “expect,” “foresee,” “may,”
“might,” “will,” “would,” “could” or “intend,”
future or conditional verb tenses, and
variations or negatives of such terms. These
forward-looking statements include, without
limitation, those relating to the Simmons
First National Corporation’s (“Company”)
future growth, revenue, assets, asset quality,
proﬁtability and customer service, critical
accounting policies, net interest margin,
non-interest revenue, market conditions
related to the Company’s common stock
repurchase program, allowance for loan
losses, the effect of certain new accounting
standards on the Company’s ﬁnancial
statements, income tax deductions, credit
quality, the level of credit losses from
lending commitments, net interest revenue,
interest rate sensitivity, loan loss experience,
liquidity, capital resources, market risk,
earnings, effect of pending litigation,
acquisition strategy, legal and regulatory
limitations and compliance and competition.

Readers are cautioned not to place undue
reliance on the forward-looking statements
contained in this document in that actual
results could differ materially from
those indicated in such forward-looking
statements, due to a variety of factors.
These factors include, but are not limited
to, changes in the Company’s operating
or expansion strategy, availability of and
costs associated with obtaining adequate
and timely sources of liquidity, the ability
to maintain credit quality, possible adverse
rulings, judgments, settlements and other
outcomes of pending litigation, the ability of
the Company to collect amounts due under
loan agreements, changes in consumer
preferences, effectiveness of the Company’s
interest rate risk management strategies,
laws and regulations affecting ﬁnancial

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A Letter from the CEO

Dear fellow shareholders,

Who would have thought ﬁve years ago that today, Simmons First National Corporation would
have transformed from a bank holding company with approximately $3.5 billion in assets to an
over $15 billion asset company operating in seven states, including markets such as Dallas-Fort
Worth, Oklahoma City, Nashville, St. Louis, Kansas City, Denver, Austin, San Antonio, Tulsa, Wich-
ita, Knoxville, and Memphis, all of which complement our legacy markets in Arkansas? We have
had some luck along the way but most of our success is attributable to our associates who have
embraced the opportunities and worked diligently to improve our company for the beneﬁt of our
shareholders and customers alike. We have come a long way, but we all understand that there are
still a multitude of options to consider as we continue to develop our regional banking presence
in all our markets. I ﬁrmly believe the best is yet to come!

During 2017, we welcomed new associates from First South Bank in Jackson, Tenn.; from South-
west Bank in Fort Worth, Texas; and from Bank SNB in Stillwater, Okla. These new partners con-
tributed over $5 billion in assets to our base and opened our organization up to some terriﬁc
markets. Our challenge is to make sure we deploy all our excellent products and services into
those markets as soon as possible.

During 2017, our assets grew past $10 billion. Our new size carries with it increased responsibili-
ty, particularly from a regulatory perspective. I am very proud of our very talented team for their
development of enhanced risk management processes that will carry us well into the future as
we continue our growth. We expect some regulatory tweaking in the coming months. Some rules
and regulations implemented after the ﬁnancial crisis in 2008 had unintended consequences
and will possibly be changed or eliminated. However, many had a positive effect on our ability to
manage risk within our company and will remain as fundamental requirements going forward.

Tax reform will certainly improve our proﬁtability, and we have taken the opportunity to invest
much of that into our future. We have enhanced the proﬁt sharing component of our 401(k) plan
for our associates. If we are successful, the ones responsible for our success will beneﬁt. We have
allocated to our high-performer pool signiﬁcant incentive dollars to motivate even greater per-
formance. One of our culture cornerstones is High Performance. We have contributed $5 million
to the Simmons First Foundation with the intent to provide grants for Community Reinvestment
Act-qualiﬁed activities in the communities we serve. We now have the scale to enhance our IT in-
frastructure and design applications for our customers that are best of class. Our commitment to
do so over the next ﬁve years is signiﬁcant. And we have increased our dividend to shareholders
by 20%, keeping in mind that without the investment of our owners, none of this is possible.

We thank you, our shareholders, for your continued support of Simmons. Many of our sharehold-
ers are customers, which to me, is the ultimate recommendation. We are very proud of this fact
and will work every day to sustain your conﬁdence.

Sincerely,

Chairman and Chief Executive Officer
Simmons First National Corporation

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GEORGE MAKRIS

Chairman and Chief Executive Officer

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AWARDS & ACCOLADES

AWARDS AND
RECOGNITIONS

Recognition: Realized

Simmons associates work hard day in and
day out to help our customers realize their
dreams. When you make a difference on that
level, you’re bound to get noticed. And we’re
pleased to see our work being acknowledged
by others in the community. Here are just a few
of the awards and accolades Simmons has
garnered over the past year – from being named
one of Fortune Magazine’s “Fastest Growing
Companies,” to being named a top Small
Business Administration lender, to being the
best local bank in the communities we serve. But
when it all comes down to it, the greatest reward
is seeing the look on our customers’ faces as we
help them make their dreams come true.

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BANK RECOGNITIONS

HERE ARE JUST A FEW OF OUR RECOGNITIONS THIS YEAR.

Best Bank in Missouri
Money Magazine

#62 Fortune Magazine

100 Fastest-Growing Companies

#1 Small Business Lender
SPRINGFIELD SBA BRANCH OFFICE*

*FY2017

#1 Small Business Lender
ST. LOUIS SBA DISTRICT*

*FY2017

#1 in Banking
JONESBORO OCCASIONS READERS' CHOICE AWARDS

CitiScapes Magazine, Best of Northwest
Arkansas 2017, Top 5
Arkansas Business, Best of Biz 2017,
Finalist
Thinking Bigger Business Magazine, #3 in
Top 10 SBA Lenders
Arkansas Times, Best of Arkansas, Finalist
for Best Bank
Arkansas Democrat Gazette, Best of the
Best, Finalist for Best Bank
Jonesboro Occasions, Readers’ Choice
Awards, #1 in Banking
Jonesboro Occasions, Readers’ Choice
Awards, Agri Lender: Farm Credit
Midsouth Finalist
Arkansas Business, Book of Lists
Humboldt Chronicle, Best of the Best,
Best Bank
Van Buren County Democrat, Best of the
Best, Best Bank
AY Magazine, One of the Best Banks in
Central and Southern Arkansas
Pine Bluff Commercial, #1 Bank, 1st Place
Pine Bluff Commercial, #1 Mortgage
Lender, 1st Place
Springﬁeld, MO, #1 Lender, Small Business
Administration (SBA) Branch
St. Louis SBA District, #1 Lender
Kansas City SBA District, #2 Lender
Money Magazine, Best Bank in Missouri
Fortune Magazine, 100 Fastest-Growing
Companies, #62

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ASSOCIATE RECOGNITIONS

HERE ARE JUST A FEW OF OUR ASSOCIATE RECOGNITIONS THIS YEAR.

Chris White, 40 Under 40, Arkansas Business
Daphne Stallings, 2017 Young Leader, St. Louis American Foundation
Christi Pittman, Best Insurance Agents in Little Rock, Soiree Magazine
Sam Blackwell, Best of the Best, Finalist for Best Bank Executive,
Humboldt Chronicle
Margaret Fuller, Best of the Best, Finalist for Best Bank Teller,
Humboldt Chronicle
Philip Tappan, Outstanding Service Alumni Achievement Award, Sam M.
Walton College of Business at the University of Arkansas
Kyle James, Member, Leadership of Greater Little Rock Class XXXII
Jason Culpepper, ABA Scholarship Recipient for AmBA Stonier Graduate
School of Banking
Marla Mitchell, Graduate, Leadership Arkansas
Rodney West, Scholarship Recipient, SW Graduate School of Banking
Tracy Hill, Best Teller, Union City Messenger

MAKE-A-WISH HELPS REALIZE A DREAM

Simmons Bank partnered with the Make-A-Wish® Foundation’s Mid-South Chapter to make six-year-old
Harper’s dream come true by sending him and his family to Disney World.

MAINTAINING OUR COMMUNITY BANK STRUCTURE

Strong Communities: Realized

A strong belief in community banking has always
been the guiding philosophy behind Simmons
Bank’s success. Our customers place great value
in their long-standing relationships with local
Simmons contacts. As we move forward and grow,
it’s vital that we maintain these connections with
talented associates who are deeply rooted in the
local communities. Associates who understand the
market, and who make decisions at the local level.
Customers want that personal touch. And Simmons
is the bank that can bring that personal touch to life.

and money to make our communities better,” says
Black. Simmons Bank recently donated playground
equipment to a sports complex in Lake Village – just
one example of projects instigated and completed
on the local level to make the community better.
“We meet on a regular basis, in order to keep the
focus on our community. As long as we continue to
focus on providing products and services to our local
communities, Simmons Bank will thrive and prosper,"
says Jarrett. “It has been a way of life for me for
nearly 30 years.”

“I am a community banker!” Freddie Black, chairman
of Simmons Bank Arkansas Region, proudly
proclaims. The Arkansas Region is made up of
twelve communities in Arkansas and Missouri,
each overseen by local presidents empowered to
make decisions in their local markets based on
the experience and knowledge that can only be
acquired by being a part of the community. “It is
very important to focus on the local community, so
we can set ourselves apart from other large, regional
banks who lack the local touch." Tommy Jarrett,
community president for Lake Village, Arkansas,
further emphasizes the community focus – “We are
a full-service community bank that offers big-bank
products and services to our rural communities.”

All Simmons leaders and associates are encouraged
to become involved in civic activities in their local
communities. “We provide support by investing time

Black, originally from Lake Village himself, points out
the Southeast Arkansas bank is a great example of
Simmons’ community focus—from supporting the
Teach for America program, to improving the city
park, to providing a grant to build a new handicap
baseball ﬁeld in Monticello. As a community bank
dedicated to improving the region, Simmons works
hard to address the challenges facing the Delta—
attracting more good job opportunities and keeping
the next generation home to build for the future.

“Simmons Bank strives to make our customers’
dreams come true,” says Jarrett. “We were recently
able to ﬁnance a ﬁrst home for a new college
graduate and keep her here in the community. She’s
the daughter of a friend who trusted Simmons Bank
to make it happen. These experiences are what make
you want to come in to work every day.”

SOUTHEAST ARKANSAS

In May, Southeast Arkansas was named Simmons Bank Community of the Year for 2017. Associates from the
Southeast Arkansas community were met by George Makris, Barry Ledbetter, Adam Mitchell, Matt Reddin, Jena
Compton and Becka McGee and presented with the inaugural Community of the Year award. “Our team works
hard every day, and that has allowed us to have the success we’ve had. From retail to lending, we are all Better
Together. I’m extremely proud of this team,” said Tommy Jarrett, community president for the region.

This new award for Simmons Bank will be given out annually to the community that demonstrates the
most growth in terms of loans, deposits, margin spread, asset quality, ROA and other factors. The winning
community will receive a monetary donation to the organization of their choice — for Southeast Arkansas,
Freddie Black and Tommy Jarrett presented a $10,000 check to Lake Village Parks and Recreation.

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SOCIAL INVOLVEMENT

1,115 community development activities

Simmons Bank regards corporate social responsibility as an inherent part of everything we do. It
guides our business policies, practices, services and products, as well as our employee beneﬁts,
public policy, philanthropy, volunteerism and community outreach. As a community bank, we
realize helping the community pays countless dividends at all levels.

In 2017, our associates participated in 1,115 community development activities where they used a
banking skill to help predominantly low-to-moderate income individuals.

COMMUNITY COMMITMENT MILESTONES

$290,000 donated by
associates to United Way for
communities in our region.

2,500 backpacks distributed
in Little Rock and Springdale,
Arkansas, partnering with Univision.

X 100

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As a community bank,
we realize helping
the community pays
countless dividends at
all levels.

FREDDIE BLACK

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ARKANSAS

Not a comprehensive list.

Since 2013, the Pine Bluff community president has served on the board of directors for
Habitat for Humanity, an organization dedicated to helping people and families who are
in need of a decent and affordable home. In Little Rock, a mortgage loan officer offered
six free homebuyer education workshops. Retail and commercial associates taught more
than 100 ﬁnancial literacy classes to students at Horace Mann Magnet Middle, Henderson
Jr. High and Landmark Elementary.

KANSAS

Volunteer Income Tax Assistance (VITA) is a program that offers free tax help to people
who make $54,000 or less, persons with disabilities and limited English-speaking
taxpayers who need assistance in preparing their own tax returns. Volunteers provide
free basic income tax return preparation with electronic ﬁling to qualiﬁed individuals.
United Way of the Plains in Wichita, Kan. offers VITA. An associate in Wichita volunteered
to offer free tax assistance to more than 20 clients.

MISSOURI

Missouri associates gave back to the community in a variety of ways,
from partnering with public schools to teach more than 50 ﬁnancial
literacy classes, to stocking a food pantry in Branson with the Salvation
Army, serving on charity boards like Springﬁeld’s Big Brothers/Big
Sisters and Rainbow Village, helping the United Way with a “Day of
Caring” in Sedalia and collecting 4,424 items to assist people in need.

TENNESSEE

Associates in Tennessee partnered with 25 schools with free and reduced lunch
rates of 51% or higher to offer ﬁnancial literacy classes to elementary, junior high
and high school students. Free and reduced lunch rates indicate the percentage
of low-income students. In Jackson, Tenn. associates partnered with the Jackson
Housing Authority to offer ﬁnancial literacy classes to residents in the community.
The mission of Jackson Housing Authority is to provide quality housing and support
services for low- and moderate-income persons to promote upward mobility and a
better standard of living.

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SIMMONS AND THE ARKANSAS SYMPHONY ORCHESTRA: MAKING BEAUTIFUL MUSIC TOGETHER

Simmons Bank proudly supports the
Arkansas Symphony Orchestra and its
music education programs. The Education
Challenge grant ensures that no child
who wants to participate in the youth
ensemble is denied because of ﬁnancial
need. More than 200 children use the
grant to participate in youth orchestra
ensembles across the state – building

generations of disciplined, hard-working,
and team-oriented people. The return on
this investment has proven to make better
citizens for Arkansas. Youth Orchestra
seniors are frequently awarded college
scholarships, with at least two accepted
on scholarship to Ivy League schools.

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SIMMONS FIRST FOUNDATION

A Foundation for the Future:

AN INTERVIEW WITH TOMMY MAY, CHAIRMAN AND CEO OF SIMMONS FIRST FOUNDATION

The Simmons First Foundation was established in 2013 to help us give
back to the communities that have been so vital to our continuing
growth and success. Former Simmons CEO Tommy May heads up the
foundation and guides it in its mission to build stronger and more vibrant
communities for the future. First and foremost, the foundation aims to
improve the lives of children through programs that enhance education
and healthcare. The foundation has also provided the seed money for
“Go Forward Pine Bluff,” a community renewal program that focuses on
economic development, infrastructure and government, education, and
quality of life. If successful, the program could serve as a blueprint for
revitalization efforts in communities across the Simmons footprint.

Can you tell us a little
bit about Simmons
Bank’s special
relationship with its
hometown of Pine Bluff?

:MAY

Simmons was chartered in 1903 and has been the major
supporter of most charitable and civic organizations,
community initiatives, and in providing leadership for
virtually every charitable organization that serves the
community and our citizens. Simmons is synonymous
with most of the good things that happen in Pine Bluff.
And our associates have always been called on to provide
needed leadership throughout the history of our company.
Equally signiﬁcant, Simmons has been a leader in providing
monetary resources to support projects, such as the UAPB
football ﬁeld, UAPB academics, United Way, Salvation
Army and so many others. Mr. Louis Ramsay and Mr. W.
E. Ayres, former CEOs, once said, “Do the right things for
the right reasons, not for the publicity or accolades.” Mr.
Makris has carried that philosophy forward throughout the
Simmons footprint.

How successful has the
Simmons First Foundation
been in its mission to
help children?

In 2013, Mr. Makris and Mr. Casteel agreed to establish
Simmons First Foundation to provide grants in the
Simmons Arkansas footprint for worthy projects that
required seed money to grow initiatives that beneﬁt youth
in the areas of health care and education. Four years later,
we have invested more than $700,000 in organizations
that have made a difference in the lives of our youth. The
Foundation grants are truly an investment in the lives of
our children.

:MAY

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TOMMY MAY

SIMMONS FIRST FOUNDATION

INTERVIEW WITH TOMMY MAY

What kind of
commitment has
Simmons Bank made
to the Go Forward Pine
Bluff Initiative?

How important is the
Go Forward Pine Bluff
initiative to the future
success of the community?

:MAY

While the Foundation is focused on children’s projects,
we have also accepted the challenge Mr. Makris issued
at the end of 2015 – for the Foundation to facilitate
the development of a strategic plan to work toward
revitalizing Pine Bluff, the gateway to the Delta. Simmons
Bank provided $300,000 in seed money to assure the
independence of the plan. The Foundation also completed
the development of Go Forward Pine Bluff (GFPB), a
501(c)(3) organization. Over 100 citizens completed
the plan in 2016, and GFPB moved into the strategic
development phase during 2017. A critical component
to our moving forward was a 5/8% sales tax that would
generate $32 million over seven years. In June 2017, our
citizens overwhelmingly voted in favor of the tax, with over
70% voting “yes.” Another major factor was the infusion
of capital from our business community. Mr. Makris led a
campaign to raise $7 million over seven years from our
business community, and that campaign was successful,
even before the tax. GFPB is also seeking grants in the
amount of $7 million. In total, we will potentially have
approximately $50 million to execute the plan.

:MAY

The execution of the GFPB Plan is critical to the success
of our community going forward. The 27 initiatives
(various pieces of the puzzle) will be implemented
through Dr. Ryan Watley, CEO of GFPB, and his team, and
in cooperation with the City of Pine Bluff and other non-
proﬁts. The initiatives will be the catalyst for stopping the
decline in population and corresponding reduction in city
revenues. While there are many different pieces of the
puzzle, when everything comes together, we expect the
results will cause people to choose to live in Pine Bluff
and make it a point of destination. This will increase the
revenues of the city, allowing it to provide the services
deserved by our citizens.

What kind of dividends do
you expect from Simmons
Bank’s support for Go
Forward Pine Bluff?

Without the support and leadership of Simmons, we
would not have received the overwhelming support of the
business community and many others that have moved the
initiative forward.

:MAY

Any predictions for the
future of Go Forward Pine
Bluff? What do you see
down the road?

:MAY

We are convinced that our efforts over the next seven
years will eliminate many of the hurdles that we face in
dealing with economic development, education, quality of
life and government/infrastructure. It took a long time to
get here, and it will not be a quick ﬁx. Hopefully, GFPB will
earn the respect and conﬁdence of our citizens. And when
the seven-year plan and funding expire, we will continue
to make Pine Bluff a place our children will be glad to call
home and a major regional center in Arkansas. Likewise, we
believe our model will be used by other communities with
similar challenges. This will result in additional proactive
community efforts by citizens to shape their communities
to meet their expectations.

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MERGERS & ACQUISITIONS TIMELINE
Previous 5 years

METROPOLITAN NATIONAL BANK

FIRST STATE BANK
LIBERTY BANK
TRUST COMPANY OF THE OZARKS

FIRST SOUTH BANK
SOUTHWEST BANK
BANK SNB

DELTA TRUST & BANK

CITIZENS NATIONAL BANK

RECENT ACQUISITIONS | NEW MARKETS

Partnerships: Realized

Joining up with the right partner is more than a matter of simple addition. It’s a multiplier
that can leverage all your values and assets to achieve exponentially greater returns.
Simmons Bank seeks to grow and prosper by ﬁnding like-minded community banks in
similar markets to amplify and complement the products and services we offer. And 2017
saw some amazing new partners join our team.

SIMMONS BANK + SOUTHWEST BANK: THE FORT WORTH STORY

In real estate, the saying goes it’s all
about location, location, location. For
Simmons Bank, the acquisition of
Southwest Bank (which was completed
on February 20, 2018) was about location
and a whole lot more – providing an
opportunity to expand into the thriving
Fort Worth market of North Texas, and
adding new partners that share our same
values. “Simmons and Southwest Bank
are a natural ﬁt,” says Vernon Bryant,
chairman and CEO of Southwest Bank.
“We both have a strong commitment to
our community, supporting many local
civic, business and service organizations.
Our employees are our greatest form of
advertising, they represent us to countless
friends and neighbors.”

“By joining with Simmons Bank, we’ll
now be able to offer our current
customers more services and attract
new customers for new products,” says
Bryant. “And we’re positioned to also
meet the increased lending requirements
of our large commercial customers, with
the added capacity and asset size of
our newly combined balance sheet.” In
discussing plans for further expansion,
Bryant notes, “North Texas’s business
environment offers unlimited potential.
We’ll continue to identify and recruit new
talent, and look for new opportunities to
add locations – especially in the Dallas
market.”

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RECENT ACQUISITIONS/ NEW MARKETS

SIMMONS BANK + BANK SNB: A LEGACY OF SUCCESS
The history of Bank SNB goes back
well over a century, to the founding
of Stillwater State Bank in 1894. Later
named Stillwater National Bank and then
Bank SNB, this institution in the heart
of Oklahoma’s education capital has
achieved many ﬁrsts – from the state’s
ﬁrst auto loan to the ﬁrst drive-through.
This historic company is now scheduled
to merge into Simmons Bank in May
2018.

other areas of the Simmons footprint
as well. Simmons brings additional
retail products like credit operations
and distribution, wealth management
products and one of the strongest SBA
lending platforms in the country.

“There were certain things we
considered, in looking for a partner:
enhanced products and services, a
broad and complementary footprint,
a strong and stable ﬁnancial condition
and a focus on continued growth,”
says Mark Funke, Bank SNB chairman
and CEO. “But overriding all of this
was a proven positive culture similar
to ours. Bank SNB has deep roots that
share many similarities with Simmons
Bank’s history. We believe banking is still
a personal business, delivered locally by
bankers who know their customers and
their markets.”

As the home of Oklahoma State
University, the Stillwater community
enjoys a stable economic environment
with a high degree of entrepreneurs
incubated from the energetic university
setting. Bank SNB enjoys a reputation
as a strong commercial bank with deep
expertise in healthcare and the energy
sector. This knowledge will transfer to

“These new opportunities will only
enhance our banking relationships and
create new ones in the future,” says Kevin
Fowler, Stillwater community president
for Bank SNB, who was recognized as
Stillwater Chamber “Citizen of the Year”
for his service to the community. “A
commitment to the community is vital
for us. Being in it for the right reasons
has provided our bank a seat at the
right tables and has proven vital for the
strength of the community.”

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We remain optimistic
about the future of our
company. Our growth
strategy is one in which
we have great faith. It
motivates us every day.

GEORGE MAKRIS

- 20 -

FINANCIAL HIGHLIGHTS CAPITAL & ASSET QUALITY

STRONG REGULATORY CAPITAL
As of 12/31/17

REGULATORY MINIMUM

REGULATORY “WELL-CAPITALIZED”

SIMMONS FIRST NATIONAL CORPORATION

9.21%

9.80%

5.00%

4.00%

6.50%

4.50%

LEVERAGE RATIO

COMMON EQUITY TIER 1 CAPITAL RATIO

9.80%

8.00%

6.00%

10.00%

11.35%

TIER 1 CAPITAL RATIO

TOTAL RISK-BASED CAPITAL RATIO

STRONG ASSET QUALITY
Consistently outperforming our peers
Year ended 12/31/17

SFNC

ALL U.S. BANKS

Nonperforming Loans
as a % of Loans1

0.93%2

Net Charge-Offs as a %
of Average Loans

0.3 1 %3

0.97

0.47

Net Credit Card
Charge-Offs as a % of
Credit Card Portfolio

1.6 1 %

3.63%4

1 Includes troubled-debt restructures
2 Legacy loans; excluding all acquired loans
3 Legacy loans; excluding all acquired loans and credit cards
4 Most recently published industry average

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FINANCIAL HIGHLIGHTS

ASSET GROWTH

TOTAL ASSET GROWTH
PREVIOUS 5 YEARS | IN THOUSANDS

$15,055,806

$8,400,056

$7,559,658

$4,383,100

$4,643,354

2013

2014

2015

2016

2017

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FINANCIAL HIGHLIGHTS EARNINGS & MARKET CAPITALIZATION

MARKET CAPITALIZATION
PREVIOUS 5 YEARS | IN THOUSANDS

$2,627,431

$1,943,910

$1,555,100

2.5

2.0

1.5

1.0

$602,805

$733,833

2013

2014

2015

2016

2017

EARNINGS GROWTH
PREVIOUS 5 YEARS | IN THOUSANDS, EXCEPT PER SHARE DATA

$119,049
Diluted EPS
(Core): $1.70

$96,790
Diluted EPS
(GAAP): $1.56

$89,622
Diluted EPS
(Core): $1.59

$101,409
Diluted EPS
(Core): $1.64

$92,940
Diluted EPS
(GAAP): $1.33

$74,107
Diluted EPS
(GAAP): $1.31

120

110

100

$38,707
Diluted EPS
(Core): $1.14

$35,668
Diluted EPS
(GAAP): $1.05

$23,231
Diluted EPS
(GAAP): $0.72

$27,612
Diluted EPS
(Core) $0.84

2013

2014

2015

2016

2017

Per share information has been retrospectively adjusted to reﬂect the effects of the two-for-one stock split that was effected on February 8, 2018.

“Core earnings” and “diluted core earnings per share” are ﬁnancial measures that exclude non-core items that 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. See “Reconciliation of Non-GAAP Financial Measures” in the 2017 Form 10-K for a GAAP reconciliation of
these non-GAAP ﬁnancial measures.

- 23 -

FINANCIAL HIGHLIGHTS DIVIDENDS

2017 ANNUAL DIVIDEND YIELD: 1.8%

BASED ON 12/31/17 STOCK PRICE

'98

'99

'00

'01

'02

'03

'04

'05

'06

'07

'08

'09

'10

'11

'12

'13

'14

'15

'16

'17

$0.16

$0.18

$0.20

$0.22

$0.24

$0.26

$0.28

$0.30

$0.34

$0.36

$0.38

$0.40

$0.42

$0.44

$0.46

$0.48

$0.50

109 CONSECUTIVE YEARS OF PAYING DIVIDENDS TO OUR SHAREHOLDERS

- 24 -

FINANCIAL HIGHLIGHTS SHAREHOLDER RETURN

1 YEAR TOTAL SHAREHOLDER RETURN
DIVIDENDS + STOCK APPRECIATION | 12/31/16-12/31/17

20.0%

15.0%

10.0%

5.0%

0.0%

(5.00%)

(10.00%)

(15.00%)

(20.00%)

N 3 , '1 7

B 3 , '1 7

R 3 , '1 7

M A

R 3 , '1 7

Y 3 , '1 7

M A

N 3 , '1 7

L 3 , '1 7

G 3 , '1 7

P 3 , '1 7

T 3 , '1 7

O C

N O V 3 , '1 7

C 3 , '1 7

3 YEAR TOTAL SHAREHOLDER RETURN
DIVIDENDS + STOCK APPRECIATION | 12/31/14 - 12/31/17

75.0%

65.0%

55.0%

45.0%

35.0%

25.0%

15.00%

5.00%

(5.00%)

(15.00%)

(25.00%)

(35.00%)

0 1 4

C 2

0 1 5

R 2

M A

0 1 5

N 2

0 1 5

P 2

0 1 5

C 2

0 1 6

R 2

M A

0 1 6

N 2

0 1 6

P 2

0 1 6

C 2

0 1 7

R 2

M A

0 1 7

N 2

0 1 7

P 2

- 25 -

SNL
Mid Cap Bank

14.4%

SFNC (7.2%)

SFNC 48.7%

SNL
Mid Cap Bank

13.6%

FINANCIAL HIGHLIGHTS CONSOLIDATED DATA & FINANCIAL SHEETS

CONDENSED CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2017 AND 2016 | IN THOUSANDS

ASSETS

Cash and cash equivalents

Investment securities

Mortgage loans held for sale and assets held in trading accounts

Other assets held for sale

Legacy loans

Allowance for loan losses

Loans acquired, net

NET LOANS

Premises and equipment

Premises held for sale

Foreclosed assets and other real estate owned

Goodwill and other intangible assets

Other assets

TOTAL ASSETS

LIABILITIES AND STOCKHOLDERS' EQUITY

Non-interest bearing transaction accounts

Interest bearing transaction accounts and saving deposits

Time deposits

TOTAL DEPOSITS

Other borrowings

Subordinated debentures

Other liabilities held for sale

Accrued interest and other liabilities

TOTAL LIABILITIES

Total stockholders' equity

2017

$598,042

1,960,889

24,038

165,780

2016

$285,659

1,624,01 3

27,829

5,705,609

4,327,207

(41,668

)

(36,286

)

5,074,076

$10,738,017

1,305,683

$5,596,604

287,249

32, 1 1 8

948,722

300, 9 5 1

199,359

6,052

26,895

401,464

232, 1 8 1

$15,055,806

$8,400,056

2,665,249

6,494,896

1,932,730

1 ,491,676

3,956,483

1 ,287,060

$11,092,875

$6,735,219

1 ,380,024

140,565

1 57,366

200, 4 1 2

273,1 5 9

60,397

180,1 7 0

$12,971,242

$7,248,945

2,084,564

1 , 1 5 1 , 1 1 1

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$15,055,806

$8,400,056

- 26 -

STATEMENTS OF INCOME

CONDENSED CONSOLIDATED STATEMENTS OF INCOME
IN THOUSANDS, EXCEPT PER SHARE 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 and SBA lending income

Investment banking income

Debit and credit card fees

Bank owned life insurance income

Gain on sale of securities, net

Other income

TOTAL NON-INTEREST INCOME

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
INCOME BEFORE INCOME TAXES

Provision for income taxes
NET INCOME

Preferred stock dividends
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS
DILUTED EARNINGS PER SHARE2
Net non-core items
CORE EARNINGS AVAILABLE TO COMMON STOCKHOLDERS1
DILUTED CORE EARNINGS PER SHARE1, 2

2017
$395,004

40,074

$354,930

26, 393

$328, 5 37

18,570

36,079

9, 9 1 9

13, 3 1 6

2,7 9 3

34, 2 5 8

3,503

1,059

19,268

2016
$301,005

21,7 9 9

$279,206

20,065

$ 259, 1 4 1

15,442

32, 4 1 4

12, 8 72

16,483

3, 4 7 1

30,740

3,324

5,848

18,78 8

$ 1 3 8 ,76 5

$ 139,382

154, 3 1 4

2 1 , 1 5 9

1 9 ,366

3 ,042

3 ,696

21,923

88, 879

$ 3 1 2 , 379

$ 154,923

6 1 ,983

$92,940

$1.33

26, 1 0 9

$119,049

$1.70

133,457

18,667

16,683

4, 4 6 1

3,469

4,835

73, 5 1 3

$ 255,085

$143,438

46,624

$96, 8 1 4

$96,790

$1.56

4, 6 1 9

$101,409

$1.64

“Core earnings” and “diluted core earnings per share” are ﬁnancial measures that exclude non-core items such as items related to branch right sizing
and merger related costs. Included in the 2017 non-core total is the one-time non-cash charge of $11.5 million related to the tax law changes. 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. See "Reconciliation of Non-GAAP Financial
Measures" in the 2017 Form 10-K for a GAAP reconciliation of these non-GAAP ﬁnancial measures.

Per share information has been retrospectively adjusted to reﬂect the effects of the two-for-one stock split that was effected on February 8, 2018.

- 27 -

FINANCIAL HIGHLIGHTS CONSOLIDATED DATA & FINANCIAL SHEETS

SELECTED CONSOLIDATED FINANCIAL DATA
YEARS ENDED DECEMBER 31 | IN THOUSANDS, EXCEPT PER SHARE AMOUNTS

FINANCIAL STATEMENT DATA

2017

2016

2015

2014

2013

Total assets

Total loans

Total deposits

Total equity

Net income available to
common shareholders

Core earnings available to
common shareholders1

$15,055,806

$8,400,056

$7,559,658

$4,643,354

$4,383,100

10,779,685

5, 632,890

4,919,355

2,736,634

2,404,935

11,092,875

6,73 5 , 2 1 9

6,086,096

3,860, 7 1 8

3, 697,567

2,084,564

1 , 1 5 1 , 1 1 1

1 ,076,855

494, 3 1 9

403,832

92,940

96,790

74,1 0 7

35,688

23, 2 3 1

119,049

101,409

89,622

38,707

27, 6 1 2

PER SHARE DATA3

Diluted earnings
Diluted core earnings (non-GAAP)1

Book value
Tangible book value (non-GAAP)2

Dividends

CAPITAL RATIOS AT PERIOD END

Common shareholders' equity
to total assets

Tangible common equity to tangible
assets (non-GAAP)2

Tier 1 leverage ratio

Common equity Tier 1 risk-based ratio

Tier 1 risk-based ratio

Total risk-based capital ratio

Dividend payout to
common shareholders

$1.33

1.70

22.65

12.34

0.50

$1.56

1.64

18.40

11.98

0.48

$1. 3 1

1.59

17.27

10.98

0.46

$1.05

1. 1 4

13.69

10.07

0.44

$0. 7 1

0.84

12.44

9.56

0.42

13.85%

13.70%

13.84%

10.65%

9.21%

8.05%

9.2 1 %

9.80%

11.35%

9.37%

10.95%

13.45%

14.45%

15.1 2 %

9.26%

11.20%

14. 2 1 %

16.02%

16.72%

8.06%

8.77%

13.43%

14.50%

7.23%

9.22%

13.02%

14.10%

37.59%

30.67%

34.98%

41.71%

59.15%

“Core earnings” and “diluted core earnings per share” are ﬁnancial measures that exclude non-core items such as items related to branch right sizing and
merger related costs. Included in the 2017 non-core total is the one-time non-cash charge of $11.5 million related to the tax law changes. 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 an-
alysts in evaluating the core operating results of the Company and predicting future performance. See "Reconciliation of Non-GAAP Financial Measures"
in the 2017 Form 10-K for a GAAP reconciliation of these non-GAAP ﬁnancial measures.

Because of our signiﬁcant level of intangible assets, total goodwill and core deposit premiums, we believe a useful calculation for investors in their analy-
sis of Simmons is tangible book value per share and tangible common equity to tangible assets, which are non-GAAP ﬁnancial measures. See "Reconcili-
ation of Non-GAAP Financial Measures" in the 2017 Form 10-K for a GAAP reconciliation of these non-GAAP ﬁnancial measures.

Per share information has been retrospectively adjusted to reﬂect the effects of the two-for-one stock split that was effected February 8, 2018.

- 28 -

SELECTED CONSOLIDATED FINANCIAL DATA - cont.
YEARS ENDED DECEMBER 31

ANNUALIZED PERFORMANCE RATIOS

Return on average assets

Return on average common equity

Return on average tangible common
equity (non-GAAP)2

2017

0.92%

6.68%

11.26%

2016

1.25%

8.75%

2015

1.03%

7.90%

2014

0.80%

8. 1 1 %

13.92%

12.53%

10.99%

Net interest margin
Efficiency ratio4

4.07%

55.27%

4.19%

56.32%

4.55%

59.01%

4.47%

67.22%

2013

0.64%

5.33%

6.36%

4. 2 1 %

71.20%

ASSET QUALITY RATIOS5

Nonperforming assets/total assets

Nonperforming loans/total loans

0.52%

0.81%

0.79%

0.91%

0.85%

0.58%

1.25%

0.63%

1.69%

0.53%

Allowance/nonperforming loans

90.26%

92.09%

165.83%

223.31%

297.89%

Allowance/total loans
Net charge-offs/average loans6

Net credit card charge-offs/credit
card loans

OTHER DATA

Number of ﬁnancial centers

Number of full time equivalent
employees

0.73%

0.3 1%

1.61%

0.84%

0.35%

1.28%

0.97%

0.1 6 %

1.28%

1.41%

0.20%

1.27%

1 .57%

0.1 5 %

1 .33%

200

2,640

150

1,875

1 49

1,946

1 0 9

1,338

1 3 1

1 ,343

The efficiency ratio is noninterest expense before foreclosed property expense and amortization of intangibles as a percent of net interest income (fully
taxable equivalent) and noninterest revenues, excludes gains and losses from securities transactons and non-core items. See "Reconciliation of Non-
GAAP Financial Measures" in the 2017 Form 10-K for a GAAP reconciliation of this non-GAAP ﬁnancial measure.

Excludes all acquired loans and excludes acquired foreclosed assets covered by FDIC loss share agreements, except for their inclusion in total assets.

Excludes credit cards.

- 29 -

SIMMONS FIRST NATIONAL CORPORATION

BOARD OF DIRECTORS

William E. Clark, II
CHAIRMAN & CHIEF EXECUTIVE OFFICER,
CLARK CONTRACTORS, LLC

Tom E. Purvis
PARTNER,
L2L DEVELOPMENT ADVISORS, LLC

Susan S. Lanigan
EXECUTIVE VICE PRESIDENT
& GENERAL COUNSEL,
CHICO’S FAS, INC.

Jerry M. Hunter
PARTNER,
BRYAN CAVE, LLP

W. Scott McGeorge
CHAIRMAN,
PINE BLUFF SAND & GRAVEL COMPANY

Russell Teubner
FOUNDER & CHIEF EXECUTIVE OFFICER,
HOSTBRIDGE TECHNOLOGY, LLC

Mark C. Doramas
CHIEF FINANCIAL OFFICER,
STEPHENS, INC.

Christopher R. Kirkland
PRINCIPAL,
THE KIRKLAND GROUP

- 30 -

Edward Drilling
PRESIDENT,
AT&T ARKANSAS

Eugene Hunt
ATTORNEY,
HUNT LAW FIRM

Jay D. Burchﬁeld
RETIRED FINANCIAL SERVICES EXECUTIVE

Malynda K. West
EXECUTIVE VICE PRESIDENT, CHIEF
FINANCIAL OFFICER & TREASURER,
MURPHY USA, INC.

Steven A. Cossé
RETIRED PRESIDENT & CHIEF EXECUTIVE OFFICER,
MURPHY OIL CORPORATION

Robert L. Shoptaw
RETIRED EXECUTIVE
ARKANSAS BLUE CROSS & BLUE SHIELD

George A. Makris, Jr.
CHAIRMAN & CHIEF EXECUTIVE OFFICER,
SIMMONS FIRST NATIONAL CORPORATION

- 31 -

SIMMONS BANK

BOARD OF DIRECTORS

Vernon Bryant
CHAIRMAN & CHIEF EXECUTIVE OFFICER,
SOUTHWEST BANK

Dean Chambliss
OWNER,
H&D FARMS

Mark C. Doramas
CHIEF FINANCIAL OFFICER,
STEPHENS, INC.

Jay D. Burchﬁeld
RETIRED FINANCIAL SERVICES EXECUTIVE

William E. Clark, II
CHAIRMAN & CHIEF EXECUTIVE OFFICER,
CLARK CONTRACTORS, LLC

Edward Drilling
PRESIDENT,
AT&T ARKANSAS

Marty D. Casteel
SENIOR EXECUTIVE VICE PRESIDENT,
SIMMONS FIRST NATIONAL CORPORATION
CHAIRMAN & CHIEF EXECUTIVE OFFICER,
SIMMONS BANK

Steven A. Cossé
RETIRED PRESIDENT &
CHIEF EXECUTIVE OFFICER,
MURPHY OIL CORPORATION

Mark W. Funke
PRESIDENT & CHIEF EXECUTIVE OFFICER,
BANK SNB

- 32 -

Eugene Hunt
ATTORNEY,
HUNT LAW FIRM

Christopher R. Kirkland
PRINCIPAL,
THE KIRKLAND GROUP

W. Scott McGeorge
CHAIRMAN,
PINE BLUFF SAND & GRAVEL COMPANY

Jerry M. Hunter
PARTNER,
BRYAN CAVE, LLP

Susan S. Lanigan
EXECUTIVE VICE PRESIDENT
& GENERAL COUNSEL,
CHICO’S FAS, INC.

Johnny McGraw
OWNER,
MCGRAW FARMS

Met L. Jones, II
GENERAL MANAGER,
DICKEY MACHINE WORKS

John Lytle, M.D.
ORTHOPEDIC SURGEON,
SOUTH ARKANSAS ORTHOPEDIC CENTER

Beverly Morrow
VICE PRESIDENT,
TLM MANAGEMENT

- 33 -

SIMMONS BANK

BOARD OF DIRECTORS

George O’Connor
OWNER & PRESIDENT,
O’CONNOR DISTRIBUTING

Mark Shelton Advisory Director
PRESIDENT,
M.A. SHELTON FARMING COMPANY, INC.

H. Ford Trotter, III
GENERAL MANAGER,
TROTTER AUTO GROUP

Tom W. Purvis
PARTNER,
L2L DEVELOPMENT ADVISORS, LLC

Robert L. Shoptaw
RETIRED EXECUTIVE,
ARKANSAS BLUE CROSS & BLUE SHIELD

Malynda K. West
EXECUTIVE VICE PRESIDENT, CHIEF
FINANCIAL OFFICER AND TREASURER,
MURPHY USA, INC.

H. Glenn Rambin
PRESIDENT,
R&R FARMS

Russell Teubner
FOUNDER & CHIEF EXECUTIVE OFFICER,
HOSTBRIDGE TECHNOLOGY, LLC

C. Edward Woodside
RETIRED FINANCIAL SERVICES EXECUTIVE

We are saddened by the loss of
our longtime friend Clifton Roaf.
His genuine interest and wise
counsel will be missed.

Adam B. Robinson, Jr.
PRESIDENT,
RALPH ROBINSON & SON, INC.

IN MEMORY
Clifton Roaf

- 34 -

PRODUCTS & SERVICES

Everything you need, in one friendly place.
Simmons First National Corp. is a ﬁnancial holding company, headquartered in
Pine Bluff, AR, with total assets of approximately $15.1 billion conducting ﬁnancial
operations throughout Arkansas, Colorado, Kansas, Missouri, Oklahoma, Tennessee
and Texas. The Company, through its subsidiaries, offers comprehensive ﬁnancial
solutions delivered with a client-centric approach. Since our founding, we’ve grown
steadily, while always being mindful of where we started. Longevity in banking
doesn’t just happen. It’s built on a committed approach to continually providing our
customers with the best banking experience possible.

PERSONAL BANKING

LENDING

Checking
Savings & Money Market
CDs

Personal Lending
Business Lending
Agricultural Lending

Credit Cards1

Home Equity Lines of Credit
Mortgage Services

BUSINESS BANKING

WEALTH MANAGEMENT

Business Checking
Business Savings & Money Market
Credit Cards1

Trust
Investments2

Treasury Management4
Merchant Services4

Insurance3
Private Bank

1 Subject to credit approval. 2 Securities offered through Simmons First Investment Group, Inc., member
FINRA and SIPC. 3 Insurance offered through Simmons First Insurance Services, Inc., SF Insurance, Inc. and
Simmons First Insurance Services of TN, LLC 4 All services are subject to qualiﬁcations and approval by
Simmons Bank.

Investment Products Are: Not FDIC Insured | Not Bank Guaranteed | May Lose Value

- 35 -

Dreams: Realized

CORPORATE HEADQUARTERS
501 MAIN STREET
PINE BLUFF, AR 71601
870.541.1000

LITTLE ROCK CORPORATE OFFICES
425 W. CAPITOL AVENUE, SUITE 1400
LITTLE ROCK, AR 72201
501.558.3100

simmonsbank.com

601 E. 3RD STREET
LITTLE ROCK, AR 72201