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
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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
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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
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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
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6 offices
Total assets -- $2.6 billion
Managed assets -- $720 million
Slide #35 Positioned for Growth - Arkansas Northwest Region
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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
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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
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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
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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
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Total market $4.1 billion
SFNC - 15.2% of market
Market growth - 3.8%
Slide #41 Positioned for Growth - Arkansas Total
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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
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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