8-K 1 a4388464.txt SIMMONS FIRST NATIONAL CORPORATION 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Exchange Act of 1934 Date of Report (Date of earliest event reported) May 6, 2003 SIMMONS FIRST NATIONAL CORPORATION (Exact name of registrant as specified in its charter) Arkansas 0-6253 71-0407808 (State or other jurisdiction of (Commission (I.R.S. employer incorporation or organization) file number) identification No.) 501 Main Street, Pine Bluff, Arkansas 71601 (Address of principal executive offices) (Zip Code) (870) 541-1000 (Registrant's telephone number, including area code) ITEM 9 REGULATION FD DISCLOSURE The following information and exhibit is being furnished under Item 9 (Regulation FD Disclosure) and Item 12 (Results of Operations and Financial Condition): Representatives of the Registrant are scheduled to make an analyst presentation at the Gulf South Bank Conference in New Orleans, Louisiana on Tuesday March 6, 2003, beginning at 7:30 a.m. Central Standard Time. Visual presentation materials will be available on Simmons First's website at www.simmonsfirst.com. The following is a summary of the analyst presentation presented by J. Thomas May, Chairman and Chief Executive Officer of Simmons First National Corporation, at the Gulf South Bank Conference held May 6, 2003, in New Orleans, Louisiana. Simmons First National Corporation ---------------------------------- 2003 Gulf South Bank Conference Slide #1 Forward-Looking Statement ---------------------------------- This presentation includes written and oral forward-looking statements that reflect Simmons First's current views with respect to future events and financial performance. Such forward looking statements are subject to certain uncertainties and other factors that may cause actual results to differ materially from the views, beliefs, and projections expressed in such statements. These uncertainties and other factors include, but are not limited to, uncertainties relating to business and economic conditions, the financial services industry, and Simmons First. The words "believe", "expect", "anticipate", "project", and similar expressions signify forward-looking statements. Readers are cautioned not to place undue reliance on any forward-looking statements made by or on behalf of Simmons First. Any such statement speaks only as of the date the statement was made. Simmons First undertakes no obligation to update or revise any forward-looking statements. Additional information with respect to factors that may cause results to differ materially from those contemplated by such forward-looking statements will be included in subsequent filings with the SEC. Slide # 2 Company Profile ------------------------- Asset size $2.0 billion # of community banks 7 # of communities served 34 # of financial centers 62 # of ATM's 61 # of associates 1,058 Slide #3 Company History ------------------------
Graph reflecting the assets for the years shown ($ in millions) 1903 1910 1920 1930 1940 1950 1960 1970 1980 1990 2002 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- 0.1 1.1 3.7 7.7 16.6 40.1 47 98.4 266.9 647.8 2000
Slide #4 Simmons First 1990 - 2003 ---------------------------------- Acquired 8 Banks and 17 Financial Centers Slide #5 Affiliate Banks ------------------------ Ranked by Asset Size ($ in millions) 12/31/02 3/31/03 -------- ------- Simmons First National Bank $1,024 $990 SFB - Russellville 207 211 SFB - Jonesboro 200 197 SFB - NWA 198 206 SFB - El Dorado 170 178 SFB - Searcy 112 117 SFB - South Arkansas 112 110 Slide #6 Standardization ------------------------ Name and signage Products and service Operational support - Data Processing - Accounting - Human Resources - Audit - Loan Review Slide # 7 Loans --------------- A pie chart reflecting percentages Credit Cards 14% Student Loans 7% Other Consumer 12% Construction 7% 1-4 Family 19% Comm RE 22% Commercial 12% Agricultural 5% Other 2% Slide # 8 Asset Quality ----------------------- 2001 2002 ---- ---- Non-Perform Loans/Total Loans 1.19% .97% Non-Perform Assets/Total Assets .83% .78% Allowance/Non-Perform Loans 137% 179% Allowance/Total Loans 1.63% 1.75% Net Charge-Offs/Average Loans .82% .72% Slide #9 Net Income ------------------- Graph reflecting net income for the years shown ($ in millions) 1998 1999 2000 2001 2002 ---- ---- ---- ---- ---- $14.8 $18.6 $18.9 $16.5 $22.1 As originally reported (excluding merger related expenses) Slide #10 Diluted Earnings Per Share ------------------------------------ Graph reflecting net income per share for the shown adjusted for the 2 for 1 split just completed 1998 1999 2000 2001 2002 ---- ---- ---- ----- ---- $1.17 $1.26 $1.29 $1.16 $1.54 As originally reported (excluding merger related expenses) Slide #11 History of Arkansas Usury ----------------------------------- Prior to Gramm-Leach-Bliley Act - 5 points above the discount rate - Down -- immediate - Up -- 60-90 day notification process with customer activation Gramm-Leach-Bliley Act - Passed November 1999 - Upheld by 8th Circuit October 2001 - Imported interest rates Slide #12 Net Interest Margin ----------------------------- Graph reflecting the net interest margin percentages as originally reported 1998 1999 2000 2001 2002 ---- ---- ---- ---- ---- 4.17% 4.41% 4.24% 3.92% 4.37% 2002 SNL Peer ($1B to $5B in assets) - 4.20% Slide #13 Non-Interest Income - 2002 ------------------------------------ Graph reflecting the non-interest income percentages for 2002 Non-interest inc to revenue* 32% Service charges 10% Credit card fees 9% Trust 5% Mortgage fees 3% Other (including Dealer Bank) 5% *SNL ($1B to $5B in assets) 23% Slide #14 Net Operating Exp/Avg Assets -------------------------------------- Graph reflecting net operating expenses to average assets percentages 1998 1999 2000 2001 2002 ---- ---- ---- ---- ---- 1.94% 1.90% 1.79% 1.76% 1.72% 2002 SNL Peer ($1B to $5B in assets) - 1.72% As originally reported (excluding merger related expenses and 1998 gain on sale of mortgage servicing) Slide #15 Efficiency Ratio -------------------------- Graph reflecting efficiency ratio percentages 1998 1999 2000 2001 2002 ---- ---- ---- ---- ---- 68% 63% 62% 65% 60% 2002 SNL Peer ($1B to $5B in assets) - 58% As originally reported (excluding merger related expenses and 1998 gain on sale of mortgage servicing) Slide #16 Return on Assets -------------------------- Graph reflecting return on assets percentages 1998 1999 2000 2001 2002 ---- ---- ---- ---- ---- 1.03% 1.11% 1.05% 0.84% 1.12% 2002 SNL Peer ($1B to $5B in assets) - 1.24% As originally reported (excluding merger related expenses) Slide #17 Capital ----------------- Graph reflecting the following Equity to Assets 1998 1999 2000 2001 2002 ---- ---- ---- ---- ---- 8.9% 9.4% 9.1% 9.0% 10.0% 2002 SNL Peer ($1B to $5B in assets) 8.4% Tangible Equity to Assets 1998 1999 2000 2001 2002 ---- ---- ---- ---- ---- 7.3% 7.9% 7.3% 7.6% 8.4% 2002 SNL Peer ($1B to $5B in assets) - 7.6% Slide #18 Return on Equity -------------------------- Graph reflecting the following Return on Equity 1998 1999 2000 2001 2002 ---- ---- ---- ---- ---- 11.6% 11.8% 11.3% 9.2% 11.6% Return on Tangible Equity 1998 1999 2000 2001 2002 ---- ---- ---- ---- ---- 12.9% 13.3% 13.9% 11.4% 13.9% 2002 SNL Peer ($1B to $5B in assets) - 14.7% As originally reported (excluding merger related expenses) Slide #19 Seasonality --------------------- Due to: - Agricultural (Mar/Apr to Sep/Oct) - Credit Cards (Oct - Dec) Q1 historically lowest quarter - Averages 23% of annual earnings Slide #20 1st Quarter Results ----------------------------- ($ in millions, except per share data) 2002 2003 ---- ---- Net Income $4,941 $5,332 Net Income Growth 7.9% EPS - as reported $.69 $.74 EPS - after split $.35 $.37 Slide #21 Our Corporate Vision ------------------------------ Our vision is to be the State's premier community bank Slide # 22 Vision for Success ----------------------------- Differentiation "Small enough yet large enough" Slide #23 Vision for Success - Small enough ------------------------------------------- Community banking Quality Customer Service Slide #24 Vision for Success -- Large Enough -------------------------------------------- State-wide access Lending capacity Cash management products Technology Niche products Slide #25 Credit Card Profile ----------------------------- 54th Largest Credit Card Portfolio in U.S. 82nd Largest Merchant Processor in U.S. Slide #26 Credit Card Profile ----------------------------- Average portfolio balance $171 million # of active accounts 103,000 accounts Average cardholder balance $1,855 Merchant volume $120 million Slide #27 Credit Card Past Dues -------------------------------
Graph that reflects past due percentages Simmons First 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- 0.87 0.60 0.41 0.34 0.43 0.52 0.69 0.88 1.07 1.17 1.23 1.11 1.07 VISA 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- 5.03 5.22 4.40 3.50 3.20 3.87 4.83 4.77 4.78 4.66 5.15 6.60 5.50
Slide #28 Credit Card Net Charge-Offs ------------------------------------- Graph that reflects net charge-offs percentages Simmons First 1998 1999 2000 2001 2002 ---- ---- ---- ---- ---- 2.04% 1.88% 1.60% 2.10% 2.25% VISA 1998 1999 2000 2001 2002 ---- ---- ---- ---- ---- 6.50% 6.10% 6.06% 5.70% 6.60% Slide #29 Credit Card Concentrations ------------------------------------ % of Total O/S %Past Due Arkansas 48% 1.05% North Eastern States* 7% .51% Texas 7% 1.28% California 4% 1.46% Illinois 3% .63% Florida 3% 1.49% All Other States 28% 1.15% Total 100% 1.07% * NY, NJ, RI, VT, CT, DE, ME, MA, NH, NJ, MD Slide #30 Credit Card Yield --------------------------- 2000 2001 2002 ---- ---- ---- Interest income 12.02 10.49 11.33 Fees 5.08 4.85 4.85 Other income .40 .42 .43 Credit losses -1.60 -2.10 -2.25 Gross yield 15.54 14.37 15.08 Slide #31 Student Loan Profile ------------------------------ Largest Underwriter of Student Loans in Arkansas 73rd Largest Originator of Student Loans in U.S Slide #32 Student Loan Profile ------------------------------ 30,000 active student loans Originate $46 million in government guaranteed student loans annually --------------------- Service $84 million in student loans Sell loans to secondary market Slide #33 Student Loan Yield ---------------------------- 2002 ---- Yield on average balance* 4.58 Gain on sale of loans* 1.63 Gross yield* 6.21 Minimal credit losses *Percent of average outstanding balance Slide #34 Simmons First Trust Company ------------------------------------- 6 offices Total assets -- $2.6 billion Managed assets -- $720 million Slide #35 Positioned for Growth - Arkansas Northwest Region ----------------------------------------------------------- Total market $6.8 billion SFNC - 2.6% of market Market growth - 4.9% Home of Wal-Mart, Tyson Foods, J.B. Hunt Trucking, University of Arkansas Slide #36 Positioned for Growth - Arkansas Northeast Region ----------------------------------------------------------- Total market $6.0 billion SFNC - 2.8% of market Market growth - 4.4% Home of Arkansas State University Slide #37 Positioned for Growth - Arkansas Western Region --------------------------------------------------------- Total market $4.8 billion SFNC - 6.8% of market Market growth - 3.5% Ft. Smith - 2nd largest city in Arkansas Slide #38 Positioned for Growth - Arkansas Central Region --------------------------------------------------------- Total market $10.5 billion SFNC - 2.0% of market Market growth - 4.8% Little Rock - State Capitol, largest city in Arkansas Home of Dillard's and Alltel Slide #39 Positioned for Growth - Arkansas Southwest Region ----------------------------------------------------------- Total market $4.6 billion SFNC - 3.2% of market Market growth - 2.4% Home of Murphy Oil Slide #40 Positioned for Growth - Arkansas Southeast Region ----------------------------------------------------------- Total market $4.1 billion SFNC - 15.2% of market Market growth - 3.8% Slide #41 Positioned for Growth - Arkansas Total ------------------------------------------------ Total market -- $36.9 billion SFNC - 4.5% of market (5th in State) Market growth - 4.2% Goal - 10% of market Slide # 42 Franchise Value -------------------------- Stable and consistent earnings performance Good asset quality Positioned for growth Largest state-wide publicly traded financial institution headquartered in Arkansas 94 years of consecutive dividends Slide #43 Current Multiples --------------------------- Stock Price $18.63 Price Earnings Ratio - LTM 11.9X Price to Book 1.33 Price to Tangible Book 1.63 Stock price adjusted for 5/1/03 2 for 1 stock split Slide #44 Strategic Initiatives for 2003 ---------------------------------------- Leveraging balance sheet Stock repurchase Income initiatives Debt refinancing Mergers and acquisitions SIGNATURE --------- Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. SIMMONS FIRST NATIONAL CORPORATION Date: May 6, 2003 /s/ Barry L. Crow ------------- ----------------------------------------- Barry L. Crow, Executive Vice President and Chief Financial Officer