NOTE

21:

STOCKHOLDERS’ EQUITY

The Company’s subsidiary banks are subject to a legal limitations on dividends that can be paid to the parent company without prior approval of the applicable regulatory agencies. For the lead subsidiary bank, Simmons Bank, the approval of the Commissioner of the Arkansas State Bank Department is required if the total of all dividends declared by an Arkansas state bank in any calendar year exceeds

seventy-five

percent (

75%

) of the total of its net profits, as defined, for that year combined with

seventy-five

percent (

75%

) of its retained net profits of the preceding year. The other bank subsidiaries that were in operation as of

December 31, 2017

are limited by the regulations of the state of Oklahoma and Texas. At

December 31, 2017,

the Company’s subsidiary banks had approximately

$7.5

million available for payment of dividends to the Company, without prior regulatory approval.

The Company’s subsidiary banks are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Company’s regulators could require adjustments to regulatory capital

not

reflected in these financial statements.

Effective

January 1, 2015,

the Company and the Banks became subject to new capital regulations (the “Basel III Capital Rules”) adopted by the Federal Reserve in

July 2013

establishing a new comprehensive capital framework for U.S. Banks. The Basel III Capital Rules substantially revise the risk-based capital requirements applicable to bank holding companies and depository institutions compared to the previous U.S. risk-based capital rules. Full compliance with all of the final rule’s requirements will be phased in over a multi-year schedule. The final rules include a new common equity Tier

capital to risk-weighted assets (

CET1

) ratio of

4.5%

and a common equity Tier

capital conservation buffer of

2.5%

of risk-weighted assets.

CET1

generally consists of common stock; retained earnings; accumulated other comprehensive income and certain minority interests; all subject to applicable regulatory adjustments and deductions. The new capital conservation buffer requirement began being phased in beginning on

January 1, 2016

when a buffer greater than

0.625%

of risk-weighted assets was required, which amount will increase each year until the buffer requirement is fully implemented on

January 1, 2019.

Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios (set forth in the table below) of total, Tier

and common equity Tier

capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier

capital (as defined) to average assets (as defined). Management believes that, as of

December 31, 2017,

the Company meets all capital adequacy requirements to which it is subject.

As of the most recent notification from regulatory agencies, the bank subsidiaries were well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Company and its subsidiary banks must maintain minimum total risk-based, Tier

risk-based, common equity Tier

risk-based and Tier

leverage ratios as set forth in the table. There are

conditions or events since that notification that management believes have changed the institutions’ categories.

The Company’s and the subsidiary banks’ actual capital amounts and ratios are presented in the following table.

	Actual				Minimum For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provision
(In thousands)	Amount		Ratio (%)		Amount		Ratio (%)		Amount		Ratio (%)

As of December 31, 2017
Total Risk-Based Capital Ratio
Simmons First National Corporation	$	1,388,970		11.4	$	974,716		8.0	$	N/A
Simmons Bank		877,728		12.1		580,316		8.0		725,395		10.0
Bank SNB		259,077		10.9		190,148		8.0		237,685		10.0
Southwest Bank		297,164		11.0		216,119		8.0		270,149		10.0
Tier 1 Risk-Based Capital Ratio
Simmons First National Corporation		1,199,457		9.8		734,361		6.0		N/A
Simmons Bank		835,787		11.5		436,063		6.0		581,417		8.0
Bank SNB		255,360		10.7		143,193		6.0		190,923		8.0
Southwest Bank		294,874		10.9		162,316		6.0		216,421		8.0
Common Equity Tier 1 Capital Ratio
Simmons First National Corporation		1,199,457		9.8		550,771		4.5		N/A
Simmons Bank		835,787		11.5		327,047		4.5		472,401		6.5
Bank SNB		255,360		10.7		107,394		4.5		155,125		6.5
Southwest Bank		294,874		10.9		121,737		4.5		175,842		6.5
Tier 1 Leverage Ratio
Simmons First National Corporation		1,199,457		9.2		521,503		4.0		N/A
Simmons Bank		835,787		9.2		363,386		4.0		454,232		5.0
Bank SNB		255,360		10.1		101,133		4.0		126,416		5.0
Southwest Bank		294,874		12.2		96,680		4.0		120,850		5.0

As of December 31, 2016
Total Risk-Based Capital Ratio
Simmons First National Corporation	$	912,948		15.1	$	483,681		8.0	$	N/A
Simmons Bank		830,921		13.8		481,693		8.0		602,117		10.0
Tier 1 Risk-Based Capital Ratio
Simmons First National Corporation		872,707		14.5		361,120		6.0		N/A
Simmons Bank		790,673		13.2		359,397		6.0		479,196		8.0
Common Equity Tier 1 Capital Ratio
Simmons First National Corporation		812,310		13.5		270,770		4.5		N/A
Simmons Bank		790,673		13.2		269,548		4.5		389,347		6.5
Tier 1 Leverage Ratio
Simmons First National Corporation		872,707		11.0		317,348		4.0		N/A
Simmons Bank		790,673		10.0		316,269		4.0		395,337		5.0