Simmons First National Annual Report 2018

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FY2018 Annual Report · Simmons First National

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APPROXIMATELY

$16.5
BILLION
TOTAL ASSETS

AS OF DEC. 31, 2018

SFNC

NASDAQ TRADE SYMBOL, GLOBAL SELECT MARKET

IN THE UNITED STATES

AS OF DEC, 31, 2018, ACCORDING TO THE FDIC

AS OF DEC. 31, 2018

AVERAGE ANNUAL ASSET GROWTH
RATE FOR THE PAST 3 YEARS

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 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 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.

Simmons now has the ability
to be a ‘one-stop financial
shop’ for almost all of our
customers, and we must seize
the opportunity that presents
through a heightened focus on
relationship banking.

LETTER TO SHAREHOLDERS

Fellow Shareholders,

“Relationship banking” is a phrase I used often in 2018. It refers to a business model
centered on developing a broader, deeper connection with each of our customers. As an
over $16 billion regional financial institution, Simmons has much to offer. Over time, we
have built a full suite of quality banking products, including commercial and consumer
loans, industry-leading credit cards and comprehensive treasury management services,
as well as solid wealth management solutions offered through a host of seasoned
professionals. As a result, Simmons now has the ability to be a “one-stop financial shop”
for almost all of our customers, and we must seize the opportunity that presents through a
heightened focus on relationship banking.

In order to build those relationships, though, it is vital that we maintain the integrity in
our operations that has been Simmons’ hallmark for the past 100-plus years. While no
institution is perfect, I am a firm believer that our customers must feel confident that
Simmons strives to do the right thing in all aspects of its business, whether it’s working
to ensure compliance with applicable regulatory and legal requirements or maintaining
a resilient organization through prioritizing strong asset quality. Operating with integrity
builds trust, which builds better, lasting relationships with our customers, which results
in long-term success for our business. While this may seem obvious, it is always worth
emphasizing, particularly during our integration of acquired institutions. As Simmons
grows, we simply cannot afford to lose sight of this core value.

That said, to develop broader, deeper relationships with our customers, we must also be
responsive to their changing needs. Increasingly, our customers are demanding access to
more sophisticated technological delivery channels for financial products and services. We
are keenly aware of the convenience and efficiency that technology provides, and we are
committed to responding to those demands in a meaningful way. In 2018, Simmons began
to lay the foundation for our “Next Generation Bank” program, an approximately year-long
effort to upgrade both our customer-facing and our back-office IT systems so that they
compete both now and well into the future. That program will be implemented throughout
2019 and early 2020, and I look forward to sharing with our customers the fruits of that
labor, including a totally new treasury management platform, as well as a completely
redesigned online and mobile banking experience. It is an exciting time for Simmons, and
I am certain that these enhancements will provide powerful support as we execute our
relationship banking strategy.

As always, I appreciate your confidence in our organization, and I also thank all of our
associates who, on a daily basis, work to make Simmons better. I continue to be highly
optimistic about the future of our company and extremely proud to be a part of it.

Sincerely,

George A. Makris, Jr.
Chairman and Chief Executive Officer
Simmons First National Corporation

As a banker, there’s nothing
more rewarding than putting
someone in business.

— MATT REDDIN

THE SIMMONS DIFFERENCE

Growth, Integration and Customer Focus

What sets Simmons
apart from other banks?
We asked some of our
corporate leaders and here’s
what they had to say.

“Simmons is uniquely
designed to add value for
our customers in every
stage of their lives. Whether
we’re serving first-time home buyers,
business owners or customers who need
estate planning expertise, it all comes back
to trust and reliability,” said Franklin Shirrell,
executive vice president and chief retail
officer. “Since 1903, Simmons has served as
a trusted advisor that provides personalized
financial guidance to our customers.”

“We’re made up of both small community
markets and large metro markets. It’s a
pleasure and privilege to serve so many
customers with such a wide variety of
needs,” said Matt Reddin, executive vice
president of banking enterprise. “Simmons
bankers speak our clients’ language across
our footprint. Our conversations might
not even revolve around a product or a
service, but we can always provide valuable,
consultative advice to the people who walk
through our door.”

“Simmons Bank is a national issuer of
credit cards,” noted Al Druso, senior vice
president and bank card manager. “We
have an established portfolio with a 50-year
track record of success. Both our Simmons

Card and our Simmons
Rewards Card are two of
the lowest-rate products
in the industry. We can
do this because charge-
offs and delinquencies
are half the industry
and peer averages – so
we can still produce an
excellent return for our

shareholders.”

“The latest customer research from J.D.
Power & Associates indicates that Simmons
branch satisfaction among Generations X,
Y and Z continues to climb,” said Shirrell.
“These customers tend to choose a bank
based on recommendations, and our long
history of being a trusted partner in the
community positions us well for more
referrals.”

Shirrell noted that Simmons is an extremely
active Small Business Association
(SBA) lender for new businesses with a
commitment to helping businesses of all
sizes maximize their cash position through
excellent Treasury Management products
and services.

“Small businesses are the lifeblood of our
economy and supporting them is part of
our heritage as a community bank,” added
Reddin. “As a banker, there’s nothing
more rewarding than putting someone in
business. Our SBA Preferred Lender status
sets Simmons apart from our competitors

THE SIMMONS DIFFERENCE

Growth, Integration and Customer Focus

Southwest Bank and Bank SNB, while also
seeing strong organic growth exemplified
by the fact that we grew loans by $1 billion,”
said Reddin. “Many banks focus on niches
where they perform well. We aspire to be a
full-service financial partner to our clients,
with guidance for every season of our
customers’ lives. We’ll take full advantage of
our increasing size and status, while staying
true to our roots as a community bank.”

“Our team of wealth professionals is
equipped to manage and maximize wealth
of any size,” stated Philip Tappan, executive
vice president of financial services. “We
serve a large spectrum of clients with
diverse needs. Each request – large or
small – is handled with great care, and with
a focus on that customer’s unique needs.
That’s what earns our clients’ trust.

It all comes back to
trust and reliability.

— FRANKLIN SHIRRELL

“For most
people, it’s
an incredible
challenge
to navigate
vast amounts
of products
and delivery
channels,

especially when the tax implications for
their choices are increasingly complex.
Simmons’ team of Wealth Management
professionals helps our customers
cut through the maze of choices and
tax implications to identify solutions
customized to their needs and goals –
everything from intricate financial planning,

as a financial partner that can provide
trusted, accelerated and personalized
service. Rankings from around Simmons’
footprint confirm our commitment to our
small business customers and show that

we’ve successfully
integrated
offerings across
our seven-state
region.”

“Simmons’ rapid
growth makes
it imperative to
continue to train
our associates
not only about
our products, but
also in providing

excellent and consistent customer
experiences across our footprint with
conversations
tailored to
customers’ goals,”
said Shirrell. “One
of Simmons’
greatest 2018
accomplishments
is our outstanding
workplace culture
being recognized across our footprint. For
example, we were named a ‘Best Place to
Work’ by both Arkansas Business and the
Wichita Business Journal. That’s essential,
because if we serve our associates well,
they’ll serve our customers well.”

“In 2018, Simmons successfully integrated

Continued

to guidance for generational transfer of
wealth or a simple conversation about wise
investments.”

“It’s a challenge for people to find a bank
that takes the opportunity to get to know
them well enough to personalize products
and services,” said Shirrell. “Simmons’
approach to banking built on relationships is
what has set us apart for 116 years, and it’s
what will continue to distinguish us in the
future.”

PRODUCT SPOTLIGHT

The Simmons Treasury
Management team helps our
commercial clients manage their
day-to-day financial activities by
increasing efficiencies, minimizing
risk and streamlining processes, all
while helping clients manage their
liquidity and maximize returns.
We offer a full range of solutions
tailored to fit any size business.

— DEBBIE PRIOR

Senior Vice President of
Treasury Management
Simmons Bank

Everything you need, in
one friendly place.

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

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. 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

COMMUNITY COMMITMENT

Doing Well by Doing Good.

As a good corporate citizen, Simmons helps the communities we serve and
encourages our associates to do the same. We all get better when we work together.

SIMMONS SERVICE MONTH

In September 2018, associates across
our footprint participated in Simmons
Service Month by volunteering in their local
communities. To amplify our associates’
efforts, Simmons Bank committed to make a
charitable donation up to $50,000, based on
hours volunteered.

The results were truly amazing! Nearly 4,500
volunteer hours were donated by Simmons
Bank associates, resulting in a $50,000
corporate donation to Junior Achievement,
a nonprofit selected because its work aligns
seamlessly with Simmons’ mission to pass
on financial knowledge and education to the
next generation.

Top volunteers – or Simmons associates
who donated 15 or more volunteer hours in
September – also received up to $150 for
charities of their choice. These top volunteers
raised a combined $4,200 for additional
charities across Simmons’ footprint.

SIMMONS FIRST FOUNDATION
GRANTED $5 MILLION

Simmons Bank endowed the Simmons First
Foundation with $5 million to create a stable
income flow for Foundation grants. Since
2014, the Foundation has given a total of
$825,000 for “Make a Difference” grants
focusing on education or health care for
youth. In 2018 alone, “Make a Difference”
grants contributed $125,000 in funding.

A new “Community Enhancement Grant”
initiative was also established this year to
invest in programs helping low-to-moderate-
income families across our entire seven-state
footprint. During 2018, $117,000 was funded
for investments made in Dallas, Springfield,
Memphis and Little Rock.

COMMUNITY COMMITMENT

SIMMONS ACQUIRES NAMING
RIGHTS FOR VERIZON ARENA

Simmons Bank has acquired the naming
rights to the 18,000-seat multi-purpose
civic center located in North Little Rock,
formerly known as Verizon Arena.

“We are proud to be associated with an
organization that does so much for our
economy, while providing some of the best
entertainment in the region,” said George
Makris, Simmons First National Corporation
chairman and CEO.

“Sponsorships are an increasingly important
component of our marketing strategy, and

naming rights opportunities have only
grown in value. It’s a wonderful channel to
engage customers and promote awareness
of our brand.”

SIMMONS BANK FIELD AND
PAVILION AT UAPB

Simmons donated $2.5 million to the
University of Arkansas at Pine Bluff for
football stadium renovations – including
a new scoreboard and turf, as well as the
completion of the baseball pavilion at the
Torii Hunter Baseball and Softball Complex.

COMMUNITY SERVICE ACTS

Reinvesting in the Community

As a financial institution, Simmons is subject to various regulatory requirements, including
the Community Reinvestment Act (CRA). Simmons Bank Senior Vice President of Community
Development/CRA Martie North summarizes the CRA team’s proudest 2018 accomplishments
and how they benefit the communities Simmons serves.

Simmons is the bank that will roll up its
sleeves! Volunteerism and giving are
central to our community bank heritage,
and our CRA efforts continue to focus
specifically on affordable housing,
economic development and community
service.

I’m very proud of Simmons’ success
in obtaining grants from the Federal
Home Loan Bank of Dallas, Texas (FHLB
Dallas) to help low-to-moderate-income
(LMI) members of our communities.
For example, in 2018, Simmons was the
first bank to be awarded the Disaster
Rebuilding Assistance Program grant
through FHLB Dallas. With this $10,000
grant, Simmons helped a LMI homeowner
who was affected by the severe storms,

tornados and flooding that led to a
federally declared disaster in Arkansas
the year before. The funds provided the
homeowner with much-needed repairs to
his home.

On a broader scale, Simmons has created
the Affordable Advantage mortgage
product to address a nationwide struggle
among LMI individuals to gain access
to affordable housing. The product is
based on consultations with numerous
nonprofits that serve LMI populations
and has continued to outperform
expectations since its 2015 launch.
Simmons is also piloting an Affordable
Advantage Home Improvement product
in select communities.

AWARDS & RECOGNITION

Giving our customers all our best.

HERE’S A GLIMPSE OF JUST A FEW OF OUR 2018 RECOGNITIONS.

Arkansas Democrat-Gazette, Best of the
Best Finalist

Best Low-interest Credit Cards
in America
CREDIT.COM

Pine Bluff Commercial, #1 Bank, #1
Mortgage Lender

Wichita Business Journal, Best Places to
Work

St. Louis Business Journal, Top 25
SBA Lender

AY Magazine, One of the Best Banks
in Arkansas

Soirée Magazine (Little Rock, Arkansas),
Soirée Recommends Awards – Wealth
Management, Simmons First Investment
Group, Inc.

Chickasha Express Star, Best Loan
Company, Best Customer Service,
Friendliest Staff

The Advocate and Democrat
(Sweetwater, Tennessee), One of the
Best Financial Institutions

Global Service Quality Award
VISA BUSINESS DEBIT CARD

Honorable Mention for Community
& Economic Development Awards
AMERICAN BANKERS ASSOCIATION

Best Places to Work
ARKANSAS BUSINESS

Lexington Progress, 2018 Readers’
Choice Awards, Top Bank

Top U.S. Bank, Five-Star Award
BAUER FINANCIAL

The Sentinel Record (Hot Springs,
Arkansas), One of the Best
Mortgage Companies

One of the Top Banks
STILLWATER NEWS PRESS

A LOOK INSIDE SIMMONS

Values like integrity, passion, pursuit of growth, high performance and a
“better together” mindset bind together Simmons’ ever expanding team.

Our goal is to be one of the best places to work in the country.
Culture awards from publications across our footprint show
that Simmons is serious about achieving that goal.

George A. Makris, Jr.
Chairman and CEO
Simmons First National Corporation

Cornerstones of Our Culture

These are the ideals we strive for in order to make Simmons a better place to work – and to
help make our customers’ dreams come true.

THE FUTURE OF BANKING STARTS NOW:

Next Generation Bank Transformation at Simmons Bank

Working with speed, agility and efficiency, Next Generation Bank (NGB) is
a new strategic initiative that kicked off in 2018 to position Simmons Bank
for the future. NGB will transform our bank by creating a differentiated
customer and associate experience – using the latest in banking
technologies.

KEY BENEFITS:
• Intuitive User Experience
• Simplified Processes
• Seamless Customer Engagement
• Accurate and Available Data
• More Rewarding Associate Opportunities

Congratulations to our Hot Springs team for
winning Simmons’ 2018 Community Bank
of the Year Award. The award recognizes
outstanding loan and core deposit
growth, J.D. Power & Associates customer
satisfaction survey scores and beneficial
cross-selling results.

As Community Bank of the Year, Hot Springs
will be awarded $10,000 to donate to the

local organization of their choice. Winning
associates will receive $100, a plaque, a shirt
and a certificate of recognition. Each branch
will also receive banners and window clings
to honor this achievement.

We are proud of our Hot Springs associates
for taking great care of Simmons’ customers,
and for their inspiring example of excellence.

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, 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.

NEXTGen: Meet Our Future Leaders
NEXTGen is a leadership development program
that pairs high-performing young professionals
with executive mentors. The intensive one-year
program sharpens business and leadership skills
through classroom sessions, webinars, stretch
assignments, hands-on leadership activities and
executive mentoring.

The program exemplifies Simmons’ emphasis on
leadership development and our commitment
to invest in our people by providing them with
career growth opportunities.

FINANCIAL HIGHLIGHTS CAPITAL & ASSET QUALITY

STRONG REGULATORY CAPITAL
As of Dec. 31, 2018

REGULATORY MINIMUM

REGULATORY “WELL-CAPITALIZED”

SIMMONS FIRST NATIONAL CORPORATION

8.78%

10.22%

5.00%

4.00%

6.50%

4.50%

LEVERAGE RATIO

COMMON EQUITY TIER 1 CAPITAL RATIO

10.22%

8.00%

6.00%

10.00%

13.35%

TIER 1 CAPITAL RATIO

TOTAL RISK-BASED CAPITAL RATIO

STRONG ASSET QUALITY
Year ended Dec. 31, 2018

SFNC

ALL U.S. BANKS

Nonperforming Loans
as a % of Loans1

0.48%2

1.1 9

Net Charge-Offs as a %
of Average Loans

0.25 %3

0.44

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

1.64%

3.57 % 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

FINANCIAL HIGHLIGHTS ASSET GROWTH

TOTAL ASSET GROWTH
PREVIOUS FIVE YEARS | IN THOUSANDS

$16,543,337

$15,055,806

$8,400,056

$7,559,658

$4,643,354

2014

2015

2016

2017

2018

910111213141516178765432FINANCIAL HIGHLIGHTS EARNINGS & MARKET CAPITALIZATION

MARKET CAPITALIZATION
PREVIOUS FIVE YEARS | IN THOUSANDS

$2,627,431

$1,943,910

$2,228,349

$1,555,100

$733,833

2014

2015

2016

2017

2018

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

$220,233
Diluted EPS
(Core): $2.37

$215,713
Diluted EPS
(GAAP): $2.32

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

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

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

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

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

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

$35,688
Diluted EPS
(GAAP): $1.05

$38,707

Diluted EPS
(Core): $1.14

2.5

2.0

1.5

1.0

240

220

200

180

160

140

120

100

2014

2015

2016

2017

2018

Per share information has been retrospectively adjusted to reflect the effects of the two-for-one stock split, which became effective Feb. 8, 2018.

“Core earnings” and “diluted core earnings per share” are financial measures that exclude non-core items, including 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. See “Reconciliation of Non-GAAP Financial Measures” in the 2018 Form 10-K for a GAAP
reconciliation of these non-GAAP financial measures.

2018 ANNUAL DIVIDEND YIELD: 2.5%

BASED ON DEC. 31, 2018 STOCK PRICE

FINANCIAL HIGHLIGHTS

DIVIDENDS

$0.60

$0.50

$0.48

$0.46

$0.44

$0.42

$0.40

$0.38

$0.36

$0.34

$0.30

$0.28

$0.26

$0.24

$0.22

$0.20

$0.18

$0.16

'98

'99 '00 '01

'02 '03 '04 '05 '06 '07 '08 '09 '10

'11

'12

'13

'14

'15

'16

'17

'18

110 CONSECUTIVE YEARS OF PAYING DIVIDENDS TO OUR SHAREHOLDERS

FINANCIAL HIGHLIGHTS SHAREHOLDER RETURN

1 YEAR TOTAL SHAREHOLDER RETURN
DIVIDENDS + STOCK APPRECIATION | DEC. 31, 2017—DEC. 31, 2018

20.0%

15.0%

10.0%

5.0%

0.0%

(5.00%)

(10.00%)

(15.00%)

(20.00%)

(25.00%)

D E C. 31, '17

JA N. 31, '18

FE B. 28, '18

M A R. 31, '18

A P R. 30, '18

M A Y 31, '18

JU N E 30, '18

JU LY 31, '18

A U G. 31, '18

SEP. 30, '18

O C T. 31, '18

N O V. 30, '18

D E C. 31, '18

SFNC (13.7%)

SNL
Mid Cap Bank

(18.2%)

FINANCIAL HIGHLIGHTS SHAREHOLDER RETURN

5 YEAR TOTAL SHAREHOLDER RETURN
DIVIDENDS + STOCK APPRECIATION | DEC. 31, 2013—DEC. 31, 2018

100.0%

90.0%

80.0%

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

(10.0%)

(20.0%)

M A R C H 31, '14
D E C. 31, '13

JU N E 30, '14

SEP. 30, '14

SFNC 43.5%

SNL
Mid Cap Bank

25.0%

SEP. 30, '17

D E C. 31, '17
M A R C H 31, '18

JU N E 30, '18

SEP. 30, '18

D E C. 31, '18

SEP. 30, '15

D E C. 31, '15
M A R C H 31, '16

JU N E 30, '16

SEP. 30, '16

D E C. 31, '16

M A R C H 31, '17

JU N E 30, '17

D E C. 31, '14

M A R C H 31, '15

JU N E 30, '15

LONG-TERM SHAREHOLDER RETURN
DIVIDENDS + STOCK APPRECIATION | DEC. 31, 2007—DEC. 31, 2018

225%

205%

185%

165%

145%

125%

105%

85%

65%

45%

25%

5.0%

(15.0%)

(35.0%)

(55.0%)

(75.0%)

D E C. 31, ‘0 7
J U N E 3 0, ‘0 8

D E C. 31, ‘0 8

J U N E 3 0, ‘0 9

D E C. 31, ‘0 9

J U N E 3 0, ‘10

D E C. 31, ‘10

J U N E 3 0, ‘11

D E C. 31, ‘11

J U N E 3 0, ‘12

D E C. 31, ‘12

J U N E 3 0, ‘13

D E C. 31, ‘13

J U N E 3 0, ‘14

D E C. 31, ‘14

J U N E 3 0, ‘15

D E C. 31, ‘15

J U N E 3 0, ‘16

D E C. 31, ‘16

J U N E 3 0, ‘17

D E C. 31, ‘17

J U N E 3 0, ‘18

SFNC 139.7%

SNL
Mid Cap Bank

(5.8%)

D E C. 31, ‘18

FINANCIAL HIGHLIGHTS CONSOLIDATED DATA & FINANCIAL SHEETS

CONDENSED CONSOLIDATED BALANCE SHEETS
DEC. 31, 2018 AND 2017 | IN THOUSANDS

ASSETS

Cash and cash equivalents

Investment securities

Mortgage loans held for sale

Other assets held for sale

Legacy loans

Allowance for loan losses

Loans acquired, net

NET LOANS

Premises and equipment

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

2018

$833,458

2, 445,880

26,799

1,790

2017

$598,042

1,960,889

24,038

1 65,780

8,430,388

5,705,609

(56,599

)

( 4 1 ,668

)

3,292,783

5,074,076

$1 1 ,666,572

$10,738,017

295,060

25,565

937, 0 2 1

3 1 1 , 1 9 2

287,249

32, 1 1 8

948,722

300,9 5 1

$16,543,337

$15,055,806

2,672,405

6,830, 1 9 1

2,896,1 5 6

2,665,249

6,494,896

1 ,932,730

$12,398,752

$ 1 1 ,092,875

1,345,450

353,950

1 6 2

198,589

1 ,380,024

1 4 0,565

1 5 7,366

200,4 1 2

$14,296,903

$12,971,242

2,246,434

2,084,564

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$16,543,337

$15,055,806

FINANCIAL HIGHLIGHTS 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 AVAILABLE TO COMMON STOCKHOLDERS
DILUTED EARNINGS PER SHARE
Net non-core items
CORE EARNINGS AVAILABLE TO COMMON STOCKHOLDERS1
DILUTED CORE EARNINGS PER SHARE1

2018
$680,687

1 2 8 , 1 3 5

$552,552

38,1 4 8

$514,404

23, 1 2 8

42,508

7,469

1 1 ,043

3, 1 4 1

32,268

4, 4 1 5

6 1

1 9,863

2017
$395,004

40,074

$354,930

26,393

$328, 5 37

1 8,570

36,079

9, 9 1 9

1 3, 3 1 6

2,7 9 3

34, 2 5 8

3,503

1,059

1 9,268

$ 143,896

$ 138,765

216,743

29, 6 1 0

16,323

4,480

8 , 7 2 1

4,777

1 1 1 ,575

$392,229

$266,071

50,358

$ 2 1 5 ,7 1 3

$2.32

4,520

$220,233

$2.37

154, 3 1 4

21, 1 5 9

19,366

3,042

3,696

2 1, 92 3

88, 879

$312,379

$154,923

6 1 ,98 3

$92,940

$1.33

26, 1 0 9

$119,049

$1.70

“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 2018 Form 10-K for a GAAP reconciliation of these non-
GAAP financial measures.

FINANCIAL HIGHLIGHTS

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

FINANCIAL STATEMENT DATA

2018

2017

2016

2015

2014

Total assets

Total loans

Total deposits

Total equity

Net income available to
common shareholders

Core earnings available to
common shareholders1

$16,543,337

$15,055,806

$8,400,056

$7,559,658

$4,643,354

1 1 ,7 2 3 ,1 7 1

10,779,685

5, 63 2,890

4,919,355

2,736,634

12,398,752

11 ,092,875

6,73 5 , 2 1 9

6,086,096

3,860, 7 1 8

2,246,434

2,084,564

1 , 1 5 1 , 1 1 1

1 ,076,855

494, 3 1 9

2 1 5 ,7 1 3

92,940

96,790

74,1 0 7

35,688

220,233

1 1 9 ,049

1 0 1,409

89,622

38,707

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

$2.32

2.37

24.33

1 4. 1 8

0.60

$1.33

1.70

22.65

12.34

0.50

$1.56

1.64

18.40

1 1.98

0.48

$1. 3 1

1.59

1 7.27

10.98

0.46

$1 .05

1 . 1 4

13.69

10.07

0.44

13.58%

13.85%

13.70%

13.84%

10.65%

8.39%

8.78%

1 0.22%

1 3.35%

8.05%

9.2 1 %

9.80%

1 1 .35%

9.37%

9.26%

10.95%

1 1 .20%

1 3.45%

1 4.45%

15.1 2 %

1 4. 2 1 %

1 6.02%

1 6.72%

8.06%

8.77%

13.43%

14.50%

25.86%

37.59%

30.67%

34.98%

4 1. 7 1 %

“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 Mea-
sures” in the 2018 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 2018 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 Feb. 8, 2018.

SELECTED CONSOLIDATED FINANCIAL DATA - continued
YEARS ENDED DEC. 31

ANNUALIZED PERFORMANCE RATIOS

Return on average assets

Return on average common equity

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

2018
1.37%

10.00%

18.44%

2017
0.92%

6.68%

2016
1.25%

8.75%

2015
1 .03%

7.90%

2014
0.80%

8. 1 1 %

1 1 .26%

13.92%

1 2.53%

10.99%

Net interest margin
Efficiency ratio4

3.97%

4.07%

4.19%

4.55%

52.85%

55.27%

56.32%

59.01%

4.47%

67.22%

ASSET QUALITY RATIOS5

Nonperforming assets/total assets

Nonperforming loans/total loans

0.37%

0.41%

0.52%

0.81 %

0.79%

0.91%

0.85%

0.58%

1.25%

0.63%

Allowance/nonperforming loans

164.41%

90.26%

92.09%

165.83%

223.31%

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

0.67%

0.25%

1 .64%

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 9 1

200

2,654

2,640

1 50

1,875

1 4 9

1,946

1 09

1,338

The efficiency ratio is non-interest expense before foreclosed property expense and amortization of intangibles as a percent of net interest income
(fully taxable equivalent) and non-interest revenues, excludes gains and losses from securities transactons and non-core items. See "Reconciliation of
Non-GAAP Financial Measures" in the 2018 Form 10-K for a GAAP reconciliation of this non-GAAP financial measure.

Excludes all acquired loans, except for their inclusion in total assets.

Excludes credit cards.

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

Jerry M. Hunter
PARTNER,
BRYAN CAVE LEIGHTON PAISNER, LLP

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

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

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

Christopher R. Kirkland
PRINCIPAL,
THE KIRKLAND GROUP

Edward Drilling
SVP, REGULATORY AND EXTERNAL AFFAIRS,
AT&T INC.

Jay D. Burchfield
RETIRED FINANCIAL SERVICES EXECUTIVE

Eugene Hunt
ATTORNEY,
HUNT LAW FIRM

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

SIMMONS BANK BOARD OF DIRECTORS

Vernon Bryant
NORTH TEXAS DIVISION PRESIDENT,
SIMMONS BANK

Dean Chambliss
OWNER,
H&D FARMS

Mark C. Doramus
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
SENIOR VICE PRESIDENT,
REGULATORY AND EXTERNAL AFFAIRS,
AT&T INC.

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
SOUTHWEST DIVISION PRESIDENT,
SIMMONS BANK

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 LEIGHTON PAISNER, LLP

Susan S. Lanigan
RETIRED 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

Beverly Morrow
VICE PRESIDENT,
TLM MANAGEMENT

SIMMONS BANK BOARD OF DIRECTORS

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

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

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

Tom E. 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

A final word from some of our most important stakeholders, our communities.

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