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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

Form 10-Q

QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934


For Quarter Ended March 31, 2003 Commission File Number 06253

SIMMONS FIRST NATIONAL CORPORATION
(Exact name of registrant as specified in its charter)

Arkansas
(State or other jurisdiction of
incorporation or organization)		 71-0407808
(I.R.S. Employer
Identification No.)

501 Main Street Pine Bluff, Arkansas
(Address of principal executive offices)		 71601
(Zip Code)

Registrant’s telephone number, including area code 870-541-1000

Not Applicable
Former name, former address and former fiscal year, if changed since last report

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period) and (2) has been subject to such filing requirements for the past 90 days.

YES   X       NO    

Indicate the number of shares outstanding of each of issuer’s classes of common stock.


Class A, Common
Class B, Common		 7,075,280
None



SIMMONS FIRST NATIONAL CORPORATION

INDEX

Page No.


Part I:     Summarized Financial Information    
 
                  Consolidated Balance Sheets — 
                        March 31, 2003 and December 31, 2002  3-4
 
                  Consolidated Statements of Income — 
                        Three months ended March 31, 2003 and 2002  5  
 
                  Consolidated Statements of Cash Flows — 
                        Three months ended March 31, 2003 and 2002  6  
 
                  Consolidated Statements of Stockholders’ Equity 
                        Three months ended March 31, 2003 and 2002  7  
 
                  Condensed Notes to Consolidated Financial Statements  8-19
 
                  Management’s Discussion and Analysis of Financial 
                        Condition and Results of Operations  20-44
 
                  Review by Independent Certified Public Accountants  45  
 
Part II:     Other Information  46-50



Part I: Summarized Financial Information

Simmons First National Corporation
Consolidated Balance Sheets
March 31, 2003 and December 31, 2002

ASSETS


(In thousands, except share data) March 31,
2003		   December 31,
2002
(Unaudited)  
Cash and non-interest bearing balances due from banks   $      74,609   $      76,452  
Interest bearing balances due from banks   32,631   28,473  
Federal funds sold and securities purchased
    under agreements to resell 		51,400 86,620
     Cash and cash equivalents   158,640   191,545  
Investment securities   413,669   404,048  
Mortgage loans held for sale   26,223   33,332  
Assets held in trading accounts   11,349   192  
Loans   1,257,455   1,257,305  
   Allowance for loan losses   (21,826 ) (21,948 )
     Net loans   1,235,629   1,235,357  
Premises and equipment   46,125   47,047  
Foreclosed assets held for sale, net   2,426   2,705  
Interest receivable   13,519   13,133  
Goodwill   32,877   32,877  
Core deposits   587   613  
Other assets   17,112   16,730  
         TOTAL ASSETS   $ 1,958,156   $ 1,977,579  

See Condensed Notes to Consolidated Financial Statements.

3



Simmons First National Corporation
Consolidated Balance Sheets
March 31, 2003 and December 31, 2002

LIABILITIES AND STOCKHOLDERS’ EQUITY


(In thousands, except share data) March 31,
2003		   December 31,
2002
(Unaudited)  
LIABILITIES      
Non-interest bearing transaction accounts   $   239,996   $   239,545  
Interest bearing transaction accounts and savings deposits   571,614   565,041  
Time deposits   804,061   814,610  
     Total deposits   1,615,671   1,619,196  
Federal funds purchased and securities sold  
   under agreements to repurchase   53,053   86,705  
Short-term debt   1,712   3,619  
Long-term debt   70,509   54,282  
Accrued interest and other liabilities   16,210   16,172  
     Total liabilities   1,757,155   1,779,974  
STOCKHOLDERS’ EQUITY          
Capital stock          
   Class A, common, par value $1 a share, authorized          
       30,000,000 shares, 7,075,280 issued and outstanding          
      at 2003 and 7,071,455 at 2002   7,075   7,071  
Surplus   44,536   44,495  
Undivided profits   147,371   143,808  
Accumulated other comprehensive income  
   Unrealized appreciation on available-for-sale securities,          
       net of income taxes of $1,315 in 2003 and $1,446 in 2002   2,019   2,231  
   Total stockholders’ equity   201,001   197,605  
         TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $1,958,156   $1,977,579  

See Condensed Notes to Consolidated Financial Statements.

4



Simmons First National Corporation
Consolidated Statements of Income
Three Months Ended March 31, 2003 and 2002


Three Months Ended
March 31
(In thousands, except per share data) 2003 2002
(Unaudited)
INTEREST INCOME      
   Loans   $     22,239   $     24,106  
   Federal funds sold and securities purchased          
     under agreements to resell   214   328  
   Investment securities   3,984   4,923  
   Mortgage loans held for sale, net of unrealized gains (losses)   300   233  
   Assets held in trading accounts   2   2  
   Interest bearing balances due from banks   135   281  
         TOTAL INTEREST INCOME   26,874   29,873  
INTEREST EXPENSE          
   Deposits   6,844   10,568  
   Federal funds purchased and securities sold        
     under agreements to repurchase   223   397  
   Short-term debt   5   41  
   Long-term debt   922   806  
         TOTAL INTEREST EXPENSE   7,994   11,812  
NET INTEREST INCOME   18,880   18,061  
   Provision for loan losses   2,197   2,361  
NET INTEREST INCOME AFTER PROVISION          
   FOR LOAN LOSSES   16,683   15,700  
NON-INTEREST INCOME          
   Trust income   1,576   1,390  
   Service charges on deposit accounts   2,454   2,238  
   Other service charges and fees   479   411  
   Income on sale of mortgage loans, net of commissions   1,164   811  
   Income on investment banking, net of commissions   531   266  
   Credit card fees   2,319   2,338  
   Other income   781   918  
   Gain on sale of securities, net   —   —  
         TOTAL NON-INTEREST INCOME   9,304   8,372  
NON-INTEREST EXPENSE          
   Salaries and employee benefits   10,742   9,950  
   Occupancy expense, net   1,331   1,126  
   Furniture and equipment expense   1,382   1,292  
   Loss on foreclosed assets   35   43  
   Other operating expenses   4,704   4,618  
         TOTAL NON-INTEREST EXPENSE   18,194   17,029  
INCOME BEFORE INCOME TAXES   7,793   7,043  
   Provision for income taxes   2,461   2,102  
NET INCOME   $       5,332   $       4,941  
BASIC EARNINGS PER SHARE   $         0.38   $         0.35  
DILUTED EARNINGS PER SHARE   $         0.37   $         0.34  

See Condensed Notes to Consolidated Financial Statements.

5



Simmons First National Corporation
Consolidated Statements of Cash Flows
Three Months Ended March 31, 2003 and 2002


(In thousands) March 31,
2003		   March 31,
2002
(Unaudited)
OPERATING ACTIVITIES      
   Net income  $     5,332   $     4,941  
   Items not requiring (providing) cash         
     Depreciation and amortization  1,397   1,121  
     Provision for loan losses  2,197   2,361  
     Net amortization (accretion) of investment securities  58   (160 )
     Deferred income taxes  (10 ) (318 )
     Provision for losses on foreclosed assets  42   11  
Changes in        
     Interest receivable  (386 ) 640  
     Mortgage loans held for sale  7,109   12,694  
     Assets held in trading accounts  (11,157 ) 765  
     Other assets  (382 ) (880 )
     Accrued interest and other liabilities  (2,123 ) (594 )
     Income taxes payable  2,171   2,420  
         Net cash provided by operating activities  4,248   23,001  
INVESTING ACTIVITIES          
   Net (origination) repayment of loans  (2,655 ) 26,211  
   (Purchase) sale of premises and equipment, net  (449 ) 31  
   Proceeds from sale of foreclosed assets  423   168  
   Proceeds from maturities of available-for-sale securities  58,037   164,696  
   Purchases of available-for-sale securities  (66,145 ) (149,890 )
   Proceeds from maturities of held-to-maturity securities  52,162   17,854  
   Purchases of held-to-maturity securities  (53,945 ) (27,298 )
         Net cash (used in) provided by investing activities  (12,572 ) 31,772  
FINANCING ACTIVITIES  
   Net decrease in deposits  (3,525 ) (53,938 )
   Net (repayment) proceeds of short-term debt  (1,907 ) 3,420  
   Dividends paid  (1,769 ) (1,632 )
   Proceeds from issuance of long-term debt  17,470   850  
   Repayment of long-term debt  (1,243 ) (216 )
    Net decrease in federal funds purchased and securities 
     sold under agreements to repurchase  (33,652 ) (4,841 )
   Issuance of common stock, net  45   52  
         Net cash used in financing activities  (24,581 ) (56,305 )
DECREASE IN CASH AND CASH EQUIVALENTS   (32,905 ) (1,532 )
CASH AND CASH EQUIVALENTS,  
    BEGINNING OF YEAR   191,545   194,841  
CASH AND CASH EQUIVALENTS, END OF PERIOD   $ 158,640   $ 193,309  

See Condensed Notes to Consolidated Financial Statements.

6



Simmons First National Corporation
Consolidated Statements of Stockholders’ Equity
Three Months Ended March 31, 2003 and 2002


(In thousands, except share data) Common
Stock		  Surplus  Accumulated
Other
Comprehensive
Income		 Undivided
Profits		 Total
Balance, December 31, 2001   $ 7,087   $ 45,278   $ 1,479   $ 128,519   $ 182,363  
   Comprehensive income 
      Net income  —   —   —   4,941   4,941  
      Change in unrealized appreciation on 
        available-for-sale securities, net of 
        income tax credit of $448  —   —   (941 ) —   (941 )
   Comprehensive income          4,000  
   Exercise of stock options – 5,300 shares  5   88   —   —   93  
   Securities exchanged under stock option plan  (1 ) (40 ) —   —   (41 )
   Dividends paid - $0.115 per split adj. share  —   —   —   (1,632 ) (1,632 )
Balance, March 31, 2002  7,091   45,326   538   131,828   184,783  
   Comprehensive income 
      Net income  —   —   —   17,137   17,137  
      Change in unrealized appreciation on 
        available-for-sale securities, net of 
        income taxes of $1,007  —   —   1,693   —   1,693  
   Comprehensive income          18,830  
   Exercise of stock options – 17,600 shares  18   385   —   —   403  
   Securities exchanged under stock option plan  (8 ) (266 ) —   —   (274 )
   Repurchase of common stock - 30,000 shares  (30 ) (950 ) —   —   (980 )
   Dividends paid - $0.365 per split adj. share  —   —   —   (5,157 ) (5,157 )
Balance, December 31, 2002  7,071   44,495   2,231   143,808   197,605  
   Comprehensive income                     
      Net income  —   —   —   5,332   5,332  
      Change in unrealized appreciation on                     
        available-for-sale securities, net of                    
        income tax credit of $131  —   —   (212 ) —   (212 )
   Comprehensive income          5,120  
   Exercise of stock options - 5,150 shares  5   88   —   —   93  
   Securities exchanged under stock option plan  (1 ) (47 ) —