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) April 28, 2004
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.
Representatives of the Registrant are scheduled to make an analyst
presentation at the Gulf South Bank Conference in New Orleans, Louisiana on
Wednesday April 28, 2004, beginning at 8:00 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 April 28, 2004, in New
Orleans, Louisiana.
Simmons First National Corporation
----------------------------------
2004 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
--------
Our Objective - To build a network of community banks in Arkansas that will
provide our customers state-wide access, state-of-the-art products and services,
and exceptional quality customer service.
Our Market - Our market is the State of Arkansas, which is primarily a rural
state intertwined around three or four major growth markets.
Our Competition - There are 185 commercial banks doing business in Arkansas. Ten
are out-of-state regional banks and 175 are community banks.
Our Strategy - Differentiate.
Slide # 3 Company Profile
-------------------------
Asset size $ 2.4 billion
# of community banks 8
# of communities served 45
# of financial centers 79
# of ATM's 76
# of associates 1,173
Largest publicly traded financial institution headquartered in Arkansas
Slide #4 Acquisition History
----------------------------
A table reflecting the selling institution, year and assets ($ in millions)
Selling Institution Year Assets
Alliance Bank 2004 $ 140
UP (9 branches) * 2003 140
Heartland Community Bank (1 branch) * 2002 13
First Financial (8 branches) * 2000 71
National Bank of Commerce 1999 143
Bank of Lincoln * 1999 73
American State Bank * 1998 87
First Bank of Arkansas 1997 343
Dermott State Bank * 1995 20
Dumas Bancshares * 1995 43
RTC (9 branches) * 90-92 161
* Merged into existing SFNC affiliate in that region
Slide #5 North Central Acquisition
----------------------------------
Transaction completed 11/21/03
Assets $140 million
Loans $100 million
Deposits $130 million
Number of locations 9
Management team Same
Accretive 2004
Product and system conversions Complete
Slide #6 Hot Springs Merger
---------------------------
Transaction completed 3/19/04
Assets $140 million
Loans $ 60 million
Deposits $109 million
Number of locations 5
Management team No change
Accretive First full year
Product and system conversions Complete
Slide #7 Standardization
------------------------
-- Name and signage
-- Products and service
-- Centralized support
-- Data Processing
-- Accounting
-- Human Resources
-- Audit
-- Loan Review
-- Compliance
-- Financial Analysis
Slide # 8 Our Vision
---------------------
To be Arkansas's premier community banking organization
Slide # 9 Our Vision
--------------------
To be Arkansas's premier community banking organization
-- Small Enough
-- Large Enough
Differentiation
Slide # 10 Our Vision
---------------------
To be Arkansas's premier community banking organization
Small enough (mentality)
-- Differentiate ourselves from the very large regional banks
by providing exceptional quality customer service through
our network of community banks.
Slide # 11 Our Vision
---------------------
To be Arkansas's premier community banking organization
Large enough (financial strength)
-- Differentiate ourselves from the other good community banks
by providing state-of-the-art products and services and
state-wide access.
Slide # 12 Vision for Success
-----------------------------
Large Enough
-- State-wide access
-- Arkansas
-- Growth and rural markets
-- Lending capacity
-- Cash management products
-- Technology
-- Niche products
Slide # 13 Niche Products
-------------------------
-- Credit Cards
-- Trust
-- Student Loans
Slide # 14 Credit Card Profile
------------------------------
-- 55th Largest Credit Card Portfolio in U.S.
-- 82nd Largest Merchant Processor in U.S.
Slide # 15 Credit Card Profile
------------------------------
Average portfolio balance $164 million
# of active accounts 101,000
Average cardholder balance $1,952
Merchant volume $134 million
Slide # 16 Credit Card Past Dues
--------------------------------
Graph that reflects past due percentages
Simmons First
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
0.60 0.41 0.34 0.43 0.52 0.69 0.88 1.07 1.17 1.23 1.11 1.07 1.31
Visa
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
5.22 4.40 3.50 3.20 3.87 4.83 4.77 4.78 4.66 5.15 6.60 5.50 4.90
Slide #17 Credit Card Net Charge-Offs
-------------------------------------
Graph that reflects net charge-offs percentages
Simmons First
1999 2000 2001 2002 2003
---- ---- ---- ---- ----
1.88% 1.60% 2.10% 2.25% 2.47%
VISA
1999 2000 2001 2002 2003
---- ---- ---- ---- ----
6.10% 6.06% 5.70% 6.60% 6.10%
Slide #18 Credit Card Concentrations
------------------------------------
% of Total O/S % Past Due
-------------- ----------
Arkansas 49% 1.28%
North Eastern States* 7% .88%
Texas 7% 1.86%
California 4% 1.65%
Illinois 4% 1.65%
Florida 3% 1.85%
All Other States 26% 1.23%
Total 100% 1.31%
* NY, NJ, RI, VT, CT, DE, ME, MA, NH, NJ, MD
Slide #19 Credit Card Yield
---------------------------
2001 2002 2003
---- ---- ----
Interest income 10.49 11.33 11.87
Fees 4.85 4.85 4.88
Other income .42 .43 .52
Credit losses -2.10 -2.25 -2.47
Gross yield 14.37 15.08 14.80
Percent of Average Outstanding Balances
Slide #20 Student Loan Profile
------------------------------
-- Largest Underwriter of Student Loans in Arkansas
-- 79th Largest Originator Student Loans in U.S.
Slide #21 Student Loan Profile
------------------------------
-- 30,000 active student loans
-- Originate $54 million in government guaranteed student loans annually
-- Service $90 million in student loans
-- Sell loans to secondary market
Slide #22 Student Loan Yield
----------------------------
2003
----
Yield on average balance* 3.27
Gain on sale of loans* 1.90
Gross yield* 5.17
Minimal credit losses
*Percent of average outstanding balance
Slide #23 Simmons First Trust Company
-------------------------------------
-- 6 offices
-- Total assets -- $2.2 billion
-- Managed assets -- $815 million
Slide #24 Positioned for Growth - Arkansas Southeast Region
-----------------------------------------------------------
-- Total market $3.9 billion
-- SFNC - 15.9% of market
-- Market growth - 1.6%
-- Pine Bluff MSA
-- 2003 Estimated Census Population - 105,869
-- 2003 HUD Estimated Family Income - $43,300
Slide #25 Positioned for Growth - Arkansas Northeast Region
-- Total market $6.1 billion
-- SFNC - 3.9% of market
-- Market growth - 3.0%
-- Home of Arkansas State University
-- Jonesboro MSA
-- 2003 Estimated Census Population - 111,085
-- 2003 HUD Estimated Family Income - $45,400
Slide #26 Positioned for Growth - Arkansas Northwest Region
-----------------------------------------------------------
-- Total market $7.2 billion
-- SFNC - 3.1% of market
-- Market growth - 6.0%
-- Home of Wal-Mart, Tyson Foods, J.B. Hunt Trucking, University of
Arkansas
-- Fayetteville-Springdale-Rogers MSA
-- 2003 Estimated Census Population - 355,538
-- Projected Population Growth - 11% (2003 - 2008)
-- 2003 HUD Estimated Family Income - $49,900
Slide #27 Positioned for Growth - Arkansas Western Region
---------------------------------------------------------
-- Total market $4.8 billion
-- SFNC - 6.5% of market
-- Market growth - 3.5%
-- Ft. Smith - 2nd largest city in Arkansas
-- Fort Smith MSA
-- 2003 Estimated Census Population - 192,065
-- 2003 HUD Estimated Family - $43,500
Slide #28 Positioned for Growth - Arkansas Central Region
---------------------------------------------------------
-- Total market $11.0 billion
-- SFNC - 3.15% of market
-- Market growth - 11.2%
-- Little Rock - State Capitol, largest city in Arkansas
-- Home of Dillard's and Alltel
-- Little Rock-North Little Rock-Jacksonville MSA
-- 2003 Estimated Census Population - 628,063
-- 2003 HUD Estimated Family Income - $52,400
Slide #29 Positioned for Growth - Arkansas Southwest Region
-----------------------------------------------------------
-- Total market $4.5 billion
-- SFNC - 3.5% of market
-- Market growth - 3.7
-- Home of Murphy Oil
Slide #30 Positioned for Growth - Arkansas Total
------------------------------------------------
-- Total market -- $37.5 billion
-- SFNC - 5.1% of market (4th in State)
-- Market growth - 5.9%
-- Goal - 10% of market
Slide #31 Asset Geographic Distribution
---------------------------------------
A pie chart reflecting the asset geographic distribution
Southeast and Southwest Arkansas 39%
Niche Products 11%
Rest of Arkansas 50%
Slide #32 Total Assets
----------------------
Graph reflecting total assets ($ in billions)
1999 2000 2001 2002 2003 Today
---- ---- ---- ---- ---- -----
$1.7 $1.9 $2.0 $2.0 $2.2 $2.4
9.1% increase from 2003 - today
Slide #33 Affiliate Banks
-------------------------
Ranked by Asset Size ($ in millions)
3/31/04
---------
Simmons First National Bank $ 1,172
SFB - Northwest Arkansas 235
SFB - Jonesboro 201
SFB - Russellville 198
SFB - El Dorado 195
SFB - Hot Springs 140
SFB - South Arkansas 130
SFB - Searcy 121
Slide #34 Loan Mix
------------------
A pie chart reflecting percentages
Credit Cards 12%
Student Loans 6%
Other Consumer 10%
Construction 8%
1-4 Family 18%
Comm RE 29%
Commercial 11%
Agricultural 4%
Other 2%
Slide #35 Asset Quality
-----------------------
2002 2003
---- ----
Non-Perform Loans/Total Loans 0.97% 0.82%
Non-Perform Assets/Total Assets 0.78% 0.67%
Allowance/Non-Perform Loans 179% 219%
Allowance/Total Loans 1.75% 1.79%
Net Charge-Offs/Average Loans 0.72% 0.64%
Net Charge-Offs/Average Loans 0.40% 0.33%
(excluding credit cards)
Slide #36 Net Income
--------------------
Graph reflecting net income for the years shown ($ in millions)
1999 2000 2001 2002 2003
---- ---- ---- ---- ----
$18.6 $18.9 $16.5 $22.0 $23.8
Excluding merger related expenses in 1999
8.2% increase from 2002 - 2003
Slide #37 Diluted Earnings Per Share
------------------------------------
Graph reflecting net income per share
1999 2000 2001 2002 2003
---- ---- ---- ---- ----
$1.26 $1.29 $1.16 $1.54 $1.65
Adjusted for 5/1/03 2 for 1 stock split
Excluding merger related expenses in 1999
Slide #38 Net Interest Margin
-----------------------------
Graph reflecting the net interest margin percentages
1999 2000 2001 2002 2003
---- ---- ---- ---- ----
4.41% 4.24% 3.92% 4.37% 4.34%
2003 SNL Peer ($1B to $5B in assets) - 3.87%
Slide #39 Total Non-Interest Income
-----------------------------------
Graph reflecting total non-interest income for the years shown ($ in millions)
1999 2000 2001 2002 2003
---- ---- ---- ---- ----
$28.3 $30.4 $33.6 $35.3 $38.7
9.7% increase from 2002 - 2003
Slide #40 Non-Interest Income - 2003
------------------------------------
Graph reflecting the non-interest income percentages for 2003
Non-interest inc to revenue* 33%
Service charges 10%
Credit card fees 9%
Trust 4%
Mortgage fees 4%
Other (including Dealer Bank and Student Loans sales) 6%
*SNL ($1B to $5B in assets) 28%
Slide #41 Efficiency Ratio
--------------------------
Graph reflecting efficiency ratio percentages
1999 2000 2001 2002 2003
---- ---- ---- ---- ----
63% 62% 65% 60% 61%
2003 SNL Peer ($1B to $5B in assets) - 61%
Excluding merger related expenses in 1999
Slide #42 Return on Assets
--------------------------
Graph reflecting return on assets percentages
1999 2000 2001 2002 2003
---- ---- ---- ---- ----
1.11% 1.05% 0.84% 1.12% 1.18%
2003 SNL Peer ($1B to $5B in assets) - 1.27%
Excluding merger related expenses in 1999
Slide #43 Capital
-----------------
Graph reflecting the following
Equity to Assets
1999 2000 2001 2002 2003
---- ---- ---- ---- ----
9.4% 9.1% 9.0% 10.0% 9.4%
2003 SNL Peer ($1B to $5B in assets) 9.5%
Tangible Equity to Assets
1999 2000 2001 2002 2003
---- ---- ---- ---- ----
7.9% 7.3% 7.6% 8.4% 7.3%
2003 SNL Peer ($1B to $5B in assets) - 8.2%
Slide #44 Return on Equity
--------------------------
Graph reflecting the following
Return on Equity
1999 2000 2001 2002 2000
---- ---- ---- ---- ----
11.8% 11.3% 9.2% 11.6% 11.6%
Return on Tangible Equity
1999 2000 2001 2002 2003
---- ---- ---- ---- ----
13.3% 13.9% 11.4% 13.9% 14.0%
2003 SNL Peer ($1B to $5B in assets) - 13.4%
Excluding merger related expenses in 1999
Slide #45 Investor Snapshot - Given in the prepared handout
----------------------------
A table reflecting the following
NASDAQ SFNC
Current Price 4/16/04 $27.75
52 Week Range $17.75 - $30.39
PE Ratio 16.8X
Price to Book 1.86X
Price to Tangible Book 2.45X
Slide #45 Investor Snapshot - Given in the presentation
---------------------------
A table reflecting the following
NASDAQ SFNC
Current Price 4/26/04 $26.12
52 Week Range $17.75 - $30.39
PE Ratio 15.8X
Price to Book 1.67X
Price to Tangible Book 2.34X
Slide #46 Investor Snapshot - Given in the prepared handout
---------------------------
A table reflecting the following:
Market Capitalization $392 million
Equity to Assets 9.39%
Tangible Equity Ratio 7.30%
Diluted Shares Outstanding 14.1 million
Average Daily Volume 12,000
Institutional Ownership 18%
Slide #46 Investor Snapshot - Given in the presentation
---------------------------
A table reflecting the following:
Market Capitalization $383 million
Equity to Assets 9.39%
Tangible Equity Ratio 7.30%
Diluted Shares Outstanding 14.7 million
Average Daily Volume 12,000
Institutional Ownership 18%
Slide #47 3 Year Stock Price Index
-----------------------------------
A graph reflecting the three year stock prick index
SFNC Return - 1 year 42%
3 year 119%
5 year 57%
SFNC
Apr 01 Apr 04
------ ------
0.46% 143.67%
Bank $1B - $5B
Apr 01 Apr 04
------ ------
0.39% 86.76%
All Banks
Apr 01 Apr 04
------ ------
0.68% 28.93%
Slide #48 Dividends
-------------------
A graph reflecting the following
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
$0.13 $0.16 $0.20 $0.24 $0.28 $0.32 $0.36 $0.40 $0.44 $0.48 $0.52
Ninety-five years of consecutive dividend payments and seventeen consecutive
years of increases in dividend payments.
Slide #49 Seasonality
---------------------
-- Due to:
-- Agricultural (Mar/Apr to Sep/Oct)
-- Credit Cards (Oct - Dec)
-- Q1 historically lowest quarter
-- Averages 23% of annual earnings
Slide #50 1st Quarter Results
-----------------------------
($ in millions, except per share data) 2003 2004
---- ----
Net Income $5,332 $5,411
Net Income Growth 7.9% 1.5%
Earnings Per Share $.37 $.37
Slide #51 Franchise Value
-------------------------
Consistency
-- Earnings growth (up 17 of last 20 years)
-- Good asset quality
-- Growth in dividends (95 years of consecutive dividends)
-- Higher level of non-interest income (33%)
Slide #52 Franchise Value
-------------------------
Strategic Growth
-- Community banking focus - local decision making by Boards an
management (network of 8 community banks)
-- Proven acquirer and integrator
-- Geographic diversification (45 communities throughout Arkansas)
-- Capacity to expand in growth markets (6 out of 6 MSAs)
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: April 28, 2004 /s/ Robert A. Fehlman
----------------------------------------
Robert A. Fehlman, Senior Vice President
and Chief Financial Officer