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  September 30, 2001              Commission File Number 06253
                   ------------------                                     -----


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


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


501 Main Street   Pine Bluff, Arkansas                          71601
-------------------------------------------------------------------------------
(Address of principal executive offices)                     (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           7,090,075
                     Class B, Common           None

<PAGE>



                       SIMMONS FIRST NATIONAL CORPORATION

                                      INDEX

                                                                        Page No.

Part I:  Summarized Financial Information

           Consolidated Balance Sheets --
             September 30, 2001 and December 31, 2000                       3-4

           Consolidated Statements of Income --
             Three months and nine months ended
             September 30, 2001 and 2000                                      5

           Consolidated Statements of Cash Flows --
             Nine months ended September 30, 2001 and 2000                    6

           Consolidated Statements of Changes in Stockholders' Equity
             Nine months ended September 30, 2001 and 2000                    7

           Condensed Notes to Consolidated Financial Statements            8-17

           Management's Discussion and Analysis of Financial
             Condition and Results of Operations                          18-35

           Review by Independent Certified Public Accountants                36

Part II:    Other    Information                                          37-38

<PAGE>

Part I:  Summarized Financial Information

<TABLE>
<CAPTION>

                                                  Simmons First National Corporation
                                                       Consolidated Balance Sheets
                                                September 30, 2001 and December 31, 2000


                                                                  ASSETS


                                                                                            September 30,   December 31,
(In thousands, except share data)                                                               2001            2000
------------------------------------------------------------------------------------------------------------------------
                                                                                            (Unaudited)
<S>                                                                                         <C>             <C>
Cash and non-interest bearing balances due from banks                                       $    66,429     $    77,495
Interest bearing balances due from banks                                                         84,153          12,990
Federal funds sold and securities purchased
   under agreements to resell                                                                    77,650          20,650
                                                                                            -----------     -----------
     Cash and cash equivalents                                                                  228,232         111,135

Investment securities                                                                           391,617         398,483
Mortgage loans held for sale                                                                     22,340           8,934
Assets held in trading accounts                                                                     285           1,127
Loans                                                                                         1,298,543       1,294,710
   Allowance for loan losses                                                                    (21,361)        (21,157)
                                                                                            -----------     -----------
     Net loans                                                                                1,277,182       1,273,553

Premises and equipment                                                                           45,874          46,597
Foreclosed assets held for sale, net                                                              1,081           1,104
Interest receivable                                                                              16,968          18,878
Intangible assets, net                                                                           32,939          35,241
Other assets                                                                                     15,394          17,441
                                                                                            -----------     -----------

         TOTAL ASSETS                                                                       $ 2,031,912     $ 1,912,493
                                                                                             ==========      ==========
</TABLE>

See Condensed Notes to Consolidated Financial Statements.

<PAGE>

<TABLE>
<CAPTION>

                                                  Simmons First National Corporation
                                                      Consolidated Balance Sheets
                                                September 30, 2001 and December 31, 2000


                                                  LIABILITIES AND STOCKHOLDERS' EQUITY


                                                                                           September 30,    December 31,
(In thousands, except share data)                                                              2001            2000
------------------------------------------------------------------------------------------------------------------------
                                                                                            (Unaudited)
<S>                                                                                         <C>            <C>
LIABILITIES
Non-interest bearing transaction accounts                                                   $   219,602    $   213,312
Interest bearing transaction accounts and savings deposits                                      471,093        471,609
Time deposits                                                                                   985,109        920,665
                                                                                            -----------    -----------
     Total deposits                                                                           1,675,804      1,605,586
Federal funds purchased and securities sold
   under agreements to repurchase                                                               101,332         67,250
Short-term debt                                                                                  12,865          4,070
Long-term debt                                                                                   42,278         41,681
Accrued interest and other liabilities                                                           18,481         20,563
                                                                                            -----------    -----------
     Total liabilities                                                                        1,850,760      1,739,150
                                                                                            -----------    -----------

STOCKHOLDERS' EQUITY
Capital stock
   Class A, common, par value $1 a share, authorized
   30,000,000 shares, 7,090,075 issued and outstanding
   at 2001 and 7,180,966 at 2000                                                                  7,090          7,181
Surplus                                                                                          45,497         47,964
Undivided profits                                                                               126,198        118,232
Accumulated other comprehensive income
   Unrealized appreciation (depreciation) on available-for-sale
     securities, net of income taxes of $1,420 at 2001 and
     income tax credit of $20 at 2000                                                             2,367            (34)
                                                                                            -----------    -----------

   Total stockholders' equity                                                                   181,152        173,343
                                                                                            -----------    -----------
         TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                         $ 2,031,912    $ 1,912,493
                                                                                             ==========     ==========
</TABLE>

See Condensed Notes to Consolidated Financial Statements.

<PAGE>

<TABLE>
<CAPTION>

                                                  Simmons First National Corporation
                                                   Consolidated Statements of Income
                                   Three Months and Nine Months Ended September 30, 2001 and 2000


                                                                    Three Months Ended           Nine Months Ended
                                                                       September 30,                September 30,
(In thousands, except per share data)                                2001          2000           2001         2000
---------------------------------------------------------------------------------------------------------------------
                                                                        (Unaudited)                 (Unaudited)
<S>                                                                <C>          <C>            <C>           <C>
INTEREST INCOME
   Loans                                                           $  27,298    $  28,952      $  84,827     $ 79,697
   Federal funds sold and securities purchased
     under agreements to resell                                          347          212          1,490        1,129
   Investment securities                                               5,042        5,864         16,003       17,737
   Mortgage loans held for sale, net of unrealized gains (losses)        303          143            742          382
   Assets held in trading accounts                                         1            5             10           88
   Interest bearing balances due from banks                              400          234          1,089          614
                                                                   ---------    ---------      ---------     --------
         TOTAL INTEREST INCOME                                        33,391       35,410        104,161       99,647
                                                                   ---------    ---------      ---------     --------

INTEREST EXPENSE
   Deposits                                                           15,322       16,250         48,684       44,582
   Federal funds purchased and securities sold
     under agreements to repurchase                                      592        1,156          2,339        2,490
   Short-term debt                                                       100          163            280          411
   Long-term debt                                                        830          855          2,489        2,630
                                                                   ---------    ---------      ---------     --------
         TOTAL INTEREST EXPENSE                                       16,844       18,424         53,792       50,113
                                                                   ---------    ---------      ---------     --------

NET INTEREST INCOME                                                   16,547       16,986         50,369       49,534
   Provision for loan losses                                           3,429        1,892          7,249        5,537
                                                                   ---------    ---------      ---------     --------
NET INTEREST INCOME AFTER PROVISION
 FOR LOAN LOSSES                                                      13,118       15,094         43,120       43,997
                                                                   ---------    ---------      ---------     --------
NON-INTEREST INCOME
   Trust income                                                        1,443        1,496          4,099        4,000
   Service charges on deposit accounts                                 2,226        2,176          6,634        5,808
   Other service charges and fees                                        408          392          1,374        1,406
   Income on sale of mortgage loans, net of commissions                  781          521          2,218        1,277
   Income on investment banking, net of commissions                      298           13            638          188
   Credit card fees                                                    2,669        2,712          7,791        7,671
   Other income                                                          901          817          2,376        2,250
   Gain on sale of securities, net                                         0            0              0            0
                                                                   ---------    ---------      ---------     --------
         TOTAL NON-INTEREST INCOME                                     8,726        8,127         25,130       22,600
                                                                   ---------    ---------      ---------     --------

NON-INTEREST EXPENSE
   Salaries and employee benefits                                      9,058        8,591         26,963       25,282
   Occupancy expense, net                                              1,183        1,035          3,443        2,830
   Furniture and equipment expense                                     1,250        1,336          3,924        3,891
   Loss on foreclosed assets                                             165           66            327          194
   Other operating expenses                                            5,498        4,947         16,160       14,308
                                                                   ---------    ---------      ---------     --------
         TOTAL NON-INTEREST EXPENSE                                   17,154       15,975         50,817       46,505
                                                                   ---------    ---------      ---------     --------
INCOME BEFORE INCOME TAXES                                             4,690        7,246         17,433       20,092
   Provision for income taxes                                          1,154        2,281          4,856        6,190
                                                                   ---------    ---------      ---------     --------
NET INCOME                                                         $   3,536    $   4,965      $  12,577     $ 13,902
                                                                    ========     ========       ========      =======
BASIC EARNINGS PER SHARE                                           $    0.50    $    0.68      $    1.77     $   1.90
                                                                    ========     ========       ========      =======
DILUTED EARNINGS PER SHARE                                         $    0.49    $    0.67      $    1.76     $   1.89
                                                                    ========     ========       ========      =======

</TABLE>

See Condensed Notes to Consolidated Financial Statements.

<PAGE>

<TABLE>
<CAPTION>


                                                  Simmons First National Corporation
                                                 Consolidated Statements of Cash Flows
                                             Nine Months Ended September 30, 2001 and 2000



                                                                                   September 30,    September 30,
(In thousands)                                                                         2001             2000
-----------------------------------------------------------------------------------------------------------------
                                                                                           (Unaudited)
<S>                                                                                 <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES
   Net income                                                                       $   12,577      $   13,902
   Items not requiring (providing) cash
     Depreciation and amortization                                                       5,727           5,062
     Provision for loan losses                                                           7,249           5,537
     Net (accretion) amortization of investment securities                                (772)            403
     Deferred income taxes                                                               1,074          (1,042)
     Provision for foreclosed assets                                                       154             159
   Changes in
     Interest receivable                                                                 1,910          (2,860)
     Mortgage loans held for sale                                                      (13,406)         (5,363)
     Assets held in trading accounts                                                       842             654
     Other assets                                                                        2,047            (304)
     Accrued interest and other liabilities                                             (2,467)          1,142
     Income taxes payable                                                                 (689)            526
                                                                                    ----------      ----------
         Net cash provided by operating activities                                      14,246          17,816
                                                                                    ----------      ----------

CASH FLOW FROM INVESTING ACTIVITIES
   Net originations of loans                                                           (12,217)        (87,814)
   Purchase of branch locations, net funds paid                                             --         (14,398)
   Purchase of premises and equipment, net                                              (2,702)         (3,664)
   Proceeds from sale of foreclosed assets                                               1,208             799
   Proceeds from maturities of available-for-sale securities                           197,140          97,800
   Purchases of available-for-sale securities                                         (173,909)        (81,011)
   Proceeds from maturities of held-to-maturity securities                             102,300          17,681
   Purchases of held-to-maturity securities                                           (115,492)        (25,640)
                                                                                    ----------      -----------
         Net cash used in investing activities                                          (3,672)        (96,247)
                                                                                    ----------      -----------

CASH FLOWS FROM FINANCING ACTIVITIES
   Net increase in deposits                                                             70,218          56,776
   Net proceeds of short-term debt                                                       8,795           4,480
   Dividends paid                                                                       (4,611)         (4,315)
   Proceeds from issuance of long-term debt                                              4,085              --
   Repayments of long-term debt                                                         (3,488)         (4,312)
   Net increase in federal funds purchased and securities
     sold under agreements to repurchase                                                34,082          27,271
   Repurchase of common stock, net                                                      (2,558)         (1,101)
                                                                                    ----------      ----------
         Net cash provided by financing activities                                     106,523          78,799
                                                                                    ----------      ----------

INCREASE IN CASH AND CASH EQUIVALENTS                                                  117,097             368
CASH AND CASH EQUIVALENTS,
   BEGINNING OF YEAR                                                                   111,135          81,205
                                                                                    ----------      ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                            $  228,232      $   81,573
                                                                                     =========       =========
</TABLE>

See Condensed Notes to Consolidated Financial Statements.

<PAGE>

<TABLE>
<CAPTION>

                                                  Simmons First National Corporation
                                   Consolidated Statements of Changes in Stockholders' Equity
                                            Nine Months Ended September 30, 2001 and 2000

                                                                              Accumulated
                                                                                 Other
                                                      Common                  Comprehensive  Undivided
(In thousands, except share data)                      Stock      Surplus        Income       Profits      Total
---------------------------------------------------------------------------------------------------------------------
<S>                                                 <C>         <C>          <C>           <C>          <C>
Balance, December 31, 1999                              7,316      50,770       (3,900)      105,185      159,371
   Comprehensive income
      Net income                                           --          --           --        13,902       13,902
      Change in unrealized depreciation on
        available-for-sale securities, net of
        income taxes of $1,013                             --          --        1,689            --        1,689
                                                                                                        ---------
   Comprehensive income                                                                                    15,591
   Exercise of stock options - 20,400 shares               20         253           --            --          273
   Securities exchanged under stock option plan            (1)        (16)          --            --          (17)
   Repurchase of common stock - 63,627 shares             (63)     (1,294)          --            --       (1,357)
   Cash dividends declared - $0.59 per share               --          --           --        (4,315)      (4,315)
                                                    ---------   ---------    ---------     ---------    ---------

Balance, September 30, 2000                             7,272      49,713       (2,211)      114,772      169,546
   Comprehensive income
      Net income                                           --          --           --         4,967        4,967
      Change in unrealized depreciation on
        available-for-sale securities, net of
        income taxes of $1,307                             --          --        2,177            --        2,177
                                                                                                        ---------
   Comprehensive income                                                                                     7,144
   Exercise of stock options - 5,400 shares                 6          91           --            --           97
   Securities exchanged under stock option plan            (3)        (63)          --            --          (66)
   Repurchase of common stock - 93,200 shares             (94)     (1,777)          --            --       (1,871)
   Cash dividends declared - $0.21  per share              --          --           --        (1,507)      (1,507)
                                                    ---------   ---------    ---------     ---------    ---------

Balance, December 31, 2000                              7,181      47,964          (34)      118,232      173,343
   Comprehensive income
      Net income                                           --          --           --        12,577       12,577
      Change in unrealized depreciation on
        available-for-sale securities, net of
        income taxes of $1,440                             --          --        2,401            --        2,401
                                                                                                        ---------
   Comprehensive income                                                                                    14,978
   Exercise of stock options - 51,321 shares               51         965           --            --        1,016
   Securities exchanged under stock option plan            (8)       (252)          --            --         (260)
   Repurchase of common stock -133,955 shares            (134)     (3,180)          --            --       (3,314)
   Cash dividends declared - $0.65 per share               --          --           --        (4,611)      (4,611)
                                                    ---------   ---------    ---------     ---------    ---------

Balance, September 30, 2001                         $   7,090   $  45,497    $   2,367     $ 126,198    $ 181,152
                                                     ========    ========     ========      ========     ========

</TABLE>

See Condensed Notes to Consolidated Financial Statements.

<PAGE>

                       SIMMONS FIRST NATIONAL CORPORATION

              CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   (Unaudited)

NOTE 1: BASIS OF PRESENTATION

     The consolidated financial statements include the accounts of Simmons First
National Corporation and its subsidiaries. Significant intercompany accounts and
transactions have been eliminated in consolidation.

     The accompanying  unaudited  consolidated  financial statements reflect all
adjustments  that are in the opinion of the Company's  management,  necessary to
fairly present the financial  position,  results of operations and cash flows of
the Company.  Those  adjustments  consist only of normal recurring  adjustments.
Certain  prior  year  amounts  are  reclassified  to  conform  to  current  year
classification.  The results of  operations  for the period are not  necessarily
indicative of the results to be expected for the full year.

     Certain information and note disclosures normally included in the Company's
annual  financial  statements  prepared in accordance  with  generally  accepted
accounting  principles  have  been  condensed  or  omitted.  These  consolidated
financial  statements  should  be  read in  conjunction  with  the  consolidated
financial  statements  and notes  thereto  included in the  Company's  Form 10-K
annual report for 2000 filed with the Securities and Exchange Commission.

Earnings Per Share

     Basic earnings per share is computed  based on the weighted  average number
of common shares  outstanding  during each year.  Diluted earnings per share are
computed using the weighted  average common shares and all potentially  dilutive
common shares outstanding during the period.

     The  computation of per share earnings for the nine months ended  September
30, 2001 and 2000 is as follows:

<TABLE>
<CAPTION>


(In thousands, except per share data)                                                   2001             2000
---------------------------------------------------------------------------------------------------------------
<S>                                                                                  <C>               <C>
Net Income                                                                           $  12,577         $ 13,902
                                                                                      --------          -------

Average common shares outstanding                                                        7,103            7,320
Average common share stock options outstanding                                              56               21
                                                                                     ---------          -------
Average diluted common shares                                                            7,159            7,341
                                                                                     ---------          -------

Basic earnings per share                                                             $    1.77         $   1.90
                                                                                      ========          =======
Diluted earnings per share                                                           $    1.76         $   1.89
                                                                                      ========          =======
</TABLE>

<PAGE>


NOTE 2: ACQUISITIONS

     On July 17,  2000,  the  Company  expanded  its  coverage  of  Central  and
Northwest  Arkansas  with a $7.6  million  cash  purchase  of two Conway and six
Northwest  Arkansas  locations from First  Financial Banc  Corporation.  Simmons
First National Bank acquired the two offices in Conway and Simmons First Bank of
Northwest  Arkansas acquired the six offices in Northwest  Arkansas.  As of July
14, 2000, the eight locations  combined had total loans of $71.8 million,  total
deposits of $71.0 million and net assets of $8.5 million.  The total acquisition
cost  exceeded  the fair value of tangible  assets and  liabilities  acquired by
$10.8 million. The intangible assets are being amortized using the straight-line
method over 15 years.

NOTE 3: INVESTMENT SECURITIES

     The amortized cost and fair value of investment securities that are
classified as held-to-maturity and available-for-sale are as follows:

<TABLE>
<CAPTION>

                                         September 30,                               December 31,
                                             2001                                       2000
                        --------------------------------------------- -----------------------------------------
                                      Gross       Gross    Estimated               Gross      Gross   Estimated
                         Amortized Unrealized  Unrealized    Fair     Amortized Unrealized Unrealized   Fair
(In thousands)             Cost       Gains     (Losses)     Value      Cost       Gains    (Losses)    Value
---------------------------------------------------------------------------------------------------------------
<S>                     <C>          <C>       <C>       <C>         <C>         <C>      <C>       <C>
Held-to-Maturity
----------------
U.S. Treasury           $   31,310   $   922   $     --  $   32,232  $   21,923  $   246  $    (8)  $    22,161
U.S. Government
  agencies                  40,024       630         --      40,654      40,965      229     (145)       41,049
Mortgage-backed
  securities                 8,094       135         (1)      8,228      11,065       46     (117)       10,994
State and political
  subdivisions             118,504     3,293        (46)    121,751     110,380    1,593     (594)      111,379
Other securities               100        --         --         100          80       --       --            80
                         ---------    ------    -------   ---------   ---------   ------   ------     ---------
                        $  198,032   $ 4,980   $    (47) $  202,965  $  184,413  $ 2,114  $  (864)   $  185,663
                         =========    ======    =======   =========   =========   ======   ======     =========
Available-for-Sale
------------------
U.S. Treasury           $   20,063   $   468   $     --  $   20,531  $   23,889  $   160  $   (12)   $   24,037
U.S. Government
  agencies                 142,693     2,375         --     145,068     157,434      167   (1,165)      156,436
Mortgage-backed
  securities                12,289       138        (60)     12,367      15,266       55     (140)       15,181
State and political
  subdivisions               5,419       301         --       5,720       6,621      217      (17)        6,821
Other securities             8,996       903         --       9,899      10,541    1,054       --        11,595
                         ---------    ------    -------   ---------   ---------   ------   ------     ---------
                        $  189,460   $ 4,185   $    (60) $  193,585  $  213,751  $ 1,653  $(1,334)   $  214,070
                         =========    ======    =======   =========   =========   ======   ======     =========
</TABLE>

<PAGE>


     The carrying  value,  which  approximates  the market value,  of securities
pledged  as  collateral,  to secure  public  deposits  and for  other  purposes,
amounted to $308,356,000 at September 30, 2001 and  $279,286,000 at December 31,
2000.

     The book value of securities sold under  agreements to repurchase  amounted
to  $45,847,000  and  $34,235,000  for  September 30, 2001 and December 31, 2000
respectively.

     Income  earned on securities  for the nine months ended  September 30, 2001
and 2000 is as follows:

<TABLE>
<CAPTION>


(In thousands)                                                                           2001            2000
----------------------------------------------------------------------------------------------------------------
<S>                                                                                  <C>               <C>
Taxable
  Held-to-maturity                                                                   $   4,017         $   3,188
  Available-for-sale                                                                     7,695            10,514

Non-taxable
  Held-to-maturity                                                                       4,032             3,771
  Available-for-sale                                                                       259               264
                                                                                      --------          --------

         Total                                                                       $  16,003         $  17,737
                                                                                      ========          ========
</TABLE>

     Maturities of investment securities at September 30, 2001 are as follows:

<TABLE>
<CAPTION>

                                                Held-to-Maturity           Available-for-Sale
                                            --------------------------  -------------------------
                                               Amortized      Fair          Amortized      Fair
(In thousands)                                   Cost         Value           Cost         Value
-------------------------------------------------------------------------------------------------
<S>                                         <C>           <C>           <C>            <C>
One year or less                            $    32,739   $    33,117   $    28,440    $   28,723
After one through five years                    111,192       113,649       134,940       137,411
After five through ten years                     41,394        43,109         7,731         8,097
After ten years                                  12,607        12,990         9,353         9,455
Other securities                                    100           100         8,996         9,899
                                             ----------    ----------    ----------     ---------
         Total                              $   198,032   $   202,965   $   189,460    $  193,585
                                             ==========    ==========    ==========     =========

</TABLE>

     There were no gross  realized  gains or losses as of September 30, 2001 and
2000.

     Most of the state and political  subdivision debt obligations are non-rated
bonds and represent small,  Arkansas  issues,  which are evaluated on an ongoing
basis.

<PAGE>


NOTE 4: LOANS AND ALLOWANCE FOR LOAN LOSSES

     The various categories are summarized as follows:

<TABLE>
<CAPTION>


                                                                             September 30,     December 31,
(In thousands)                                                                   2001             2000
-----------------------------------------------------------------------------------------------------------
<S>                                                                        <C>               <C>
Consumer
   Credit cards                                                            $     187,738     $    197,567
   Student loans                                                                  73,467           67,145
   Other consumer                                                                187,199          192,595
Real estate
   Construction                                                                   80,070           69,169
   Single family residential                                                     232,122          244,377
   Other commercial                                                              279,464          287,170
Commercial
   Commercial                                                                    161,245          161,134
   Agricultural                                                                   76,066           57,164
   Financial institutions                                                          7,099            2,339
Other                                                                             14,073           16,050
                                                                            ------------      -----------
Total loans before allowance for loan losses                               $   1,298,543     $  1,294,710
                                                                            ============      ===========
</TABLE>

     During  the first  nine  months of 2001,  foreclosed  assets  held for sale
decreased  $23,000 to  $1,081,000  and are  carried at the lower of cost or fair
market  value.  Other  non-performing   assets,   non-accrual  loans  and  other
non-performing  loans of the  Company at  September  30,  2001,  were  $187,000,
$12,765,000 and $3,035,000,  respectively,  bringing the total of non-performing
assets to $17,068,000.

<PAGE>


     Transactions in the allowance for loan losses are as follows:

<TABLE>
<CAPTION>


                                                                                   September 30,     December 31,
(In thousands)                                                                         2001             2000
-------------------------------------------------------------------------------------------------------------------
<S>                                                                                  <C>              <C>
Balance, beginning of year                                                           $   21,157       $  17,085
Additions
   Allowance for loan losses of acquired branches                                           --            2,155
   Provision charged to expense                                                          7,249            5,537
                                                                                     ---------        ---------
                                                                                        28,406           24,777
Deductions
   Losses charged to allowance, net of recoveries
     of $1,250 and $1,386 for the first nine months of
     2001 and 2000, respectively                                                         7,045            4,086
                                                                                     ---------        ---------

Balance, September 30                                                               $   21,361        $  20,691
                                                                                     =========        ---------

Additions
   Allowance for loan losses of acquired branches                                                           450
   Provision charged to expense                                                                           1,994
                                                                                                      ---------
                                                                                                         23,135
Deductions
   Losses charged to allowance, net of recoveries
     of $299 for the last three months of
     2000                                                                                                 1,978
                                                                                                      ---------

Balance, end of year                                                                                  $  21,157
                                                                                                       ========
</TABLE>

     At  September  30, 2001 and  December  31,  2000,  impaired  loans  totaled
$21,590,000  and  $18,099,000,  respectively.  All impaired loans had designated
reserves  for  possible  loan  losses.  Reserves  relative to impaired  loans at
September 30, 2001, were $5,069,000 and $3,070,000 at December 31, 2000.

     Approximately  $736,000 and $359,000 of interest  income was  recognized on
average  impaired loans of $21,170,000  and $12,140,000 as of September 30, 2001
and 2000,  respectively.  Interest  recognized on impaired loans on a cash basis
during the first nine months of 2001 and 2000 was immaterial.

<PAGE>

NOTE 5: TIME DEPOSITS

     Time  deposits  include  approximately  $385,913,000  and  $324,969,000  of
certificates  of deposit of $100,000 or more at September  30, 2001 and December
31, 2000, respectively.

NOTE 6: INCOME TAXES

     The provision for income taxes is comprised of the following components:

<TABLE>
<CAPTION>


                                                                    September 30,        September 30,
(In thousands)                                                          2001                 2000
------------------------------------------------------------------------------------------------------
<S>                                                               <C>                  <C>
Income taxes currently payable                                    $      3,782         $      7,232
Deferred income taxes                                                    1,074               (1,042)
                                                                  ------------         ------------
Provision for income taxes                                        $      4,856         $      6,190
                                                                   ===========          ===========

</TABLE>

     The tax effects of temporary differences related to deferred taxes shown on
the balance sheet are shown below:

<TABLE>
<CAPTION>


                                                                    September 30,       December 31,
(In thousands)                                                          2001                2000
----------------------------------------------------------------------------------------------------
<S>                                                                 <C>                <C>
Deferred tax assets
   Allowance for loan losses                                        $      7,008       $      7,696
   Valuation of foreclosed assets                                            105                231
   Deferred compensation payable                                             629                708
   Deferred loan fee income                                                  198                414
   Vacation compensation                                                     482                453
   Mortgage servicing reserve                                                368                384
   Loan interest                                                             139                126
   Available-for-sale securities                                              --                 20
   Other                                                                     134                127
                                                                    ------------       ------------
       Total deferred tax assets                                           9,063             10,159
                                                                    ------------       ------------

Deferred tax liabilities
   Accumulated depreciation                                               (1,485)            (1,577)
   Available-for-sale securities                                          (1,420)                --
   FHLB stock dividends                                                     (680)              (590)
   Other                                                                    (202)              (202)
                                                                    ------------       ------------
      Total deferred tax liabilities                                      (3,787)            (2,369)
                                                                    ------------       ------------
Net deferred tax assets included in other
      assets on balance sheets                                      $      5,276       $      7,790
                                                                     ===========        ===========
</TABLE>

<PAGE>

     A  reconciliation  of  income  tax  expense  at the  statutory  rate to the
Company's actual income tax expense is shown below:

<TABLE>
<CAPTION>


                                                                  September 30,        September 30,
(In thousands)                                                        2001                 2000
----------------------------------------------------------------------------------------------------
<S>                                                             <C>                  <C>
Computed at the statutory rate (35%)                            $        6,102       $        7,032

Increase (decrease) resulting from:
   Tax exempt income                                                    (1,503)              (1,530)
   Other differences, net                                                  257                  688
                                                                 -------------        -------------

Actual tax provision                                            $        4,856       $        6,190
                                                                 =============        =============

</TABLE>


NOTE 7: LONG-TERM DEBT

     Long-term  debt at September  30, 2001 and December 31, 2000,  consisted of
the following components,

<TABLE>
<CAPTION>


                                                                  September 30,          December 31,
(In thousands)                                                        2001                   2000
-----------------------------------------------------------------------------------------------------
<S>                                                             <C>                  <C>
7.32% note due 2007, unsecured                                  $       12,000       $       14,000
9.75% note due 2008, secured by land and building                           --                  857
4.33% to 8.41% FHLB advances due 2001 to 2021,
   secured by residential real estate loans                             13,028                9,574
Trust preferred securities                                              17,250               17,250
                                                                 -------------        -------------

                                                                $       42,278       $       41,681
                                                                 =============        =============

</TABLE>

     The Company owns a wholly owned  grantor  trust  subsidiary  (the Trust) to
issue preferred  securities  representing  undivided beneficial interests in the
assets  of the  respective  Trust  and to  invest  the  gross  proceeds  of such
preferred securities into notes of the Company. The sole assets of the Trust are
$17.8 million  aggregate  principal  amount of the Company's 9.12%  Subordinated
Debenture Notes due 2027 which are redeemable beginning in 2002. Such securities
qualify as Tier 1 Capital for regulatory purposes.

<PAGE>

     Aggregate annual maturities of long-term debt at September 30, 2001 are:

<TABLE>
<CAPTION>

                                                                                               Annual
(In thousands)                                                             Year              Maturities
--------------------------------------------------------------------------------------------------------
                                                                         <S>        <C>
                                                                            2001       $            215
                                                                            2002                  5,884
                                                                            2003                  2,824
                                                                            2004                  2,824
                                                                            2005                  2,893
                                                                         Thereafter              27,638
                                                                                        ---------------

                                                                          Total        $         42,278
                                                                                        ===============

</TABLE>

NOTE 8: CONTINGENT LIABILITIES

     A  number  of legal  proceedings  exist in which  the  Company  and/or  its
subsidiaries  are either  plaintiffs or defendants or both. Most of the lawsuits
involve loan foreclosure  activities.  The various  unrelated legal  proceedings
pending against the subsidiary banks in the aggregate are not expected to have a
material  adverse  effect  on the  financial  position  of the  Company  and its
subsidiaries.

NOTE 9: UNDIVIDED PROFITS

     The  subsidiary  banks are subject to a legal  limitation on dividends that
can be paid to the parent  company  without  prior  approval  of the  applicable
regulatory  agencies.  The  approval  of  the  Comptroller  of the  Currency  is
required,  if the total of all  dividends  declared  by a  national  bank in any
calendar  year exceeds the total of its net profits,  as defined,  for that year
combined with its retained net profits of the preceding two years. Arkansas bank
regulators have specified that the maximum dividend limit state banks may pay to
the parent  company  without prior approval is 75% of current year earnings plus
75% of the retained net earnings of the  preceding  year. At September 30, 2001,
the bank  subsidiaries had  approximately  $10 million  available for payment of
dividends to the Company without prior approval of the regulatory agencies.

     The Federal  Reserve  Board's  risk-based  capital  guidelines  include the
definitions  for  (1)  a  well-capitalized   institution,   (2)  an  adequately-
capitalized institution,  and (3) an undercapitalized  institution. The criteria
for a well-capitalized  institution are: a 5% "Tier l leverage capital" ratio, a
6% "Tier 1  risk-based  capital"  ratio,  and a 10% "total  risk-based  capital"
ratio.  As of September  30, 2001,  each of the eight  subsidiary  banks met the
capital  standards for a  well-capitalized  institution.  The  Company's  "total
risk-based capital" ratio was 13.6% at September 30, 2001.

<PAGE>

NOTE 10:  STOCK OPTIONS AND RESTRICTED STOCK

     At September 30, 2001, the Company had stock options outstanding of 412,329
shares and stock options  exercisable of 213,599  shares.  During the first nine
months of 2001, 26,621 shares were issued upon exercise of stock options,  9,800
shares were forfeited and 213,300  additional  stock options of the Company were
granted.  Also,  24,700  additional  shares of common  stock of the Company were
granted and issued to  executive  officers of the Company as  restricted  stock,
during the first nine months of 2001.

NOTE 11:  ADDITIONAL CASH FLOW INFORMATION

<TABLE>
<CAPTION>

                                                           Nine Months Ended
                                                              September 30,
(In thousands)                                            2001            2000
--------------------------------------------------------------------------------
<S>                                                 <C>             <C>
Interest paid                                       $   54,577      $    49,749
Income taxes paid                                   $    4,471      $     6,706

</TABLE>

NOTE 12:  CERTAIN TRANSACTIONS

     From time to time the  Company  and its  subsidiaries  have made  loans and
other extensions of credit to directors,  officers, their associates and members
of their immediate  families.  From time to time  directors,  officers and their
associates and members of their immediate families have placed deposits with the
Company's  subsidiary banks. Such loans, other extensions of credit and deposits
were made in the ordinary course of business,  on  substantially  the same terms
(including  interest rates and  collateral) as those  prevailing at the time for
comparable  transactions with other persons and did not involve more than normal
risk of collectibility or present other unfavorable features.

<PAGE>

NOTE 13:  COMMITMENTS AND CREDIT RISK

     The eight  affiliate banks of the Company grant  agribusiness,  commercial,
consumer,  and residential  loans to their customers.  Included in the Company's
diversified  loan  portfolio  is  unsecured  debt  in the  form of  credit  card
receivables that comprises approximately 14.5% and 15.3% of the portfolio, as of
September 30, 2001 and December 31, 2000, respectively.

     Commitments  to extend credit are  agreements to lend to a customer as long
as  there  is no  violation  of  any  condition  established  in  the  contract.
Commitments  generally have fixed expiration dates or other termination  clauses
and may require  payment of a fee. Since a portion of the commitments may expire
without  being  drawn  upon,  the total  commitment  amounts do not  necessarily
represent  future  cash  requirements.   Each  customer's   creditworthiness  is
evaluated on a case-by-case basis. The amount of collateral obtained,  if deemed
necessary,  is based on  management's  credit  evaluation  of the  counterparty.
Collateral  held  varies,  but  may  include  accounts  receivable,   inventory,
property,  plant and equipment,  commercial real estate,  and  residential  real
estate.

     At September 30, 2001,  the Company had  outstanding  commitments to extend
credit aggregating  approximately  $218,577,000 and $237,182,000 for credit card
commitments and other loan commitments,  respectively. At December 31, 2000, the
Company had outstanding  commitments to extend credit aggregating  approximately
$246,550,000  and  $157,859,000  for  credit  card  commitments  and other  loan
commitments, respectively.

     Letters  of  credit  are  conditional   commitments   issued  by  the  bank
subsidiaries  of the Company,  to guarantee the  performance  of a customer to a
third party. Those guarantees are primarily issued to support public and private
borrowing arrangements,  including commercial paper, bond financing, and similar
transactions.  The  credit  risk  involved  in  issuing  letters  of  credit  is
essentially  the same as that  involved in  extending  loans to  customers.  The
Company had total  outstanding  letters of credit  amounting to  $5,341,000  and
$3,400,000 at September 30, 2001 and December 31, 2000, respectively, with terms
ranging from 90 days to one year.

<PAGE>

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS

OVERVIEW
--------

     Simmons First National  Corporation  recorded net income of $3,536,000,  or
$0.49 per diluted share for the quarter ended September 30, 2001. These earnings
reflect a decrease  of  $1,429,000,  or $0.18 per share,  when  compared to last
year's third quarter  earnings of $4,965,000,  or $0.67 per diluted  share.  The
Company's  annualized  return on average assets and annualized return on average
stockholder's  equity for the  three-month  period ended September 30, 2001, was
0.71% and 7.75%, compared to 1.08% and 11.77%, respectively, for the same period
in 2000.

     Earnings  for  the  nine-month   period  ended   September  30,  2001  were
$12,577,000,  or $1.76 per diluted share.  These earnings  reflect a decrease of
$1,325,000,  or $0.13 per share,  when compared to the  nine-month  period ended
September  30,  2000  earnings  of  $13,902,000,  or $1.89  per  diluted  share.
Annualized   return  on  average  assets  and   annualized   return  on  average
stockholders'  equity for the  nine-month  period ended  September 30, 2001, was
0.87% and 9.46%, compared to 1.05% and 11.25%, respectively, for the same period
in 2000.

     Because of the  Company's  previous cash  acquisitions,  cash earnings (net
income excluding amortization of intangible assets) are an integral component of
earnings.  Diluted  cash  earnings  for the third  quarter  of 2001  were  $0.56
compared with $0.75 for the third quarter of 2000,  reflecting a $0.19 decrease.
Year-to-date  diluted cash earnings,  on a per share basis,  as of September 30,
2001,  were  $1.97,  a decrease of $0.11,  or 5.3% when  compared to $2.08 as of
September  30,  2000.  Annualized  cash  return on average  assets was 0.83% and
annualized cash return on average  stockholders'  equity was 8.91% for the third
quarter of 2001,  compared  with 1.21% and  13.08%,  respectively,  for the same
period  in 2000.  Annualized  cash  return  on  average  assets  was  0.99%  and
annualized  cash  return on  average  stockholders'  equity  was  10.66% for the
nine-month  period ended  September  30, 2001,  compared  with 1.17% and 12.44%,
respectively, for the same period in 2000.

     Total assets for the Company at September 30, 2001, were $2.032 billion, an
increase  of  $119   million   over  the  same  figure  at  December  31,  2000.
Stockholders' equity at the end of the third quarter of 2001 was $181.2 million,
a $7.9 million,  or 4.6%, increase from December 31, 2000. During the first nine
months of 2001 the Company  repurchased  133,955  common  shares of stock.  This
stock repurchase decreased stockholders' equity by $3.3 million.

     Simmons  First  National   Corporation  is  an  Arkansas  based,   Arkansas
committed,  financial  holding  company,  with  community  banks in Pine  Bluff,
Jonesboro,  Lake Village,  Dumas,  Rogers,  Russellville,  Searcy and El Dorado,
Arkansas. The Company's eight banks conduct financial operations from 65 offices
in 33 communities throughout Arkansas.

<PAGE>

ACQUISITIONS
------------

     On July 17,  2000,  the  Company  expanded  its  coverage  of  Central  and
Northwest  Arkansas  with a $7.6  million  cash  purchase  of two Conway and six
Northwest  Arkansas  locations from First  Financial Banc  Corporation.  Simmons
First National Bank acquired the two offices in Conway and Simmons First Bank of
Northwest  Arkansas acquired the six offices in Northwest  Arkansas.  As of July
14, 2000, the eight locations  combined had total loans of $71.8 million,  total
deposits of $71.0 million and net assets of $8.5 million.  The total acquisition
cost  exceeded  the fair value of tangible  assets and  liabilities  acquired by
$10.8 million. The intangible assets are being amortized using the straight-line
method over 15 years.

CONSOLIDATION OF SUBSIDIARIES
-----------------------------

     During the second quarter of 2001, the Company made a strategic decision to
consolidate the charters of its two smallest banking  subsidiaries.  The Company
is planning to  consolidate  Simmons First Bank of Dumas into Simmons First Bank
of South Arkansas on December 7, 2001.  After the  consolidation,  Simmons First
Bank of South Arkansas will have four banking  locations in Southeast  Arkansas,
with assets totaling  approximately $100 million.  The Company remains committed
to a community banking  philosophy.  This consolidation will not have a material
impact on current or future earnings of the Company.

CHANGE IN CONTROL AGREEMENTS
----------------------------

     During the second  quarter,  the Company  entered into Executive  Severance
Agreements  with 21 of its key officers.  These  agreements are intended to give
executives  additional  assurances  concerning their continued employment in the
event the Company  were to engage in  discussions  concerning  or  consummate  a
transaction  which  involved  a change in control  of the  Company.  A change in
control  transaction  includes a merger,  share  exchange,  tender offer or cash
purchase of at least 25% of the shares of the Company, if within two years after
such transaction;  there occurs a change in more than a majority of the board of
directors.  Management  believes  that  it is  in  the  best  interests  of  the
stockholders to provide certain  assurances  regarding  continued  employment of
selected key officers to better assure that the Company will be able to properly
evaluate  any proposed  transaction  and to continue  the  Company's  operations
during any transition  period.  The  agreements,  which are only effective for a
period  of up to two  years  after a  change  in  control  occurs,  provide  for
severance  benefits  ranging from an amount equal to one year's annual salary to
an amount equal to twice the  executive's  annual  salary plus bonus but only if
the executive separates from service under certain  circumstances within the two
year period.  Management  believes  that any potential  adverse  effect that the
existence  of  these  agreements  may  have  on a  proposed  change  in  control
transaction is outweighed by the benefit to the Company of providing  additional
employment  security  to the key  officers  so that the  Company  may retain the
services of its experienced  officers in evaluating such an offer and continuing
its operations  either in its present from or following the consummation of such
a change in control transaction.

<PAGE>

STOCK REPURCHASE
----------------

     On January 23,  2001,  the Company  announced  the  expansion  of the stock
repurchase  program.  This expansion  authorized the repurchase of an additional
200,000 common shares. The expanded program now has authorized the repurchase of
up to 400,000 common shares.

     Under  the  repurchase  program,  there  is no time  limit  for  the  stock
repurchases,  nor is there a minimum  number of shares  the  Company  intends to
repurchase.  The Company may  discontinue  purchases at any time that management
determines  additional  purchases  are  not  warranted.  The  shares  are  to be
purchased from time to time at prevailing market prices,  through open market or
unsolicited  negotiated  transactions,  depending  upon market  conditions.  The
Company intends to use the repurchased  shares to satisfy stock option exercise,
payment of future stock dividends and general corporate purposes.

     During  the  nine-month  period  ended  September  30,  2001,  the  Company
repurchased  133,955 common shares of stock with a weighted  average  repurchase
price of $24.74 per share. As of September 30, 2001, the Company has repurchased
a total of 290,782  common  shares of stock with a weighted  average  repurchase
price of $22.50 per share. The Company  anticipates the repurchase  program will
have a positive  impact on earnings  per share of  approximately  $0.07 for 2001
year-to-date earnings.

NET INTEREST INCOME
-------------------

     Net interest income,  the Company's  principal  source of earnings,  is the
difference between the interest income generated by earning assets and the total
interest  cost of the deposits  and  borrowings  obtained to fund those  assets.
Factors that  determine the level of net interest  income  include the volume of
earning assets and interest bearing  liabilities,  yields earned and rates paid,
the  level of  non-performing  loans  and the  amount  of  non-interest  bearing
liabilities  supporting  earning assets.  Net interest income is analyzed in the
discussion and tables below on a fully taxable  equivalent basis. The adjustment
to convert certain interest income to a fully taxable  equivalent basis consists
of dividing  tax-exempt  interest  income by one minus the combined  federal and
state income tax rate (37.50% for September 30, 2001 and 2000).

     For the three-month period ended September 30, 2001, net interest income on
a fully taxable equivalent basis was $17.4 million,  a decrease of $354,000,  or
2.0%,  from the same period in 2000. The decrease in net interest income was the
result of a $1.9 million decrease in interest income and a $1.6 million decrease
in interest  expense.  The decrease in interest income was the result of a lower
yield earned on earning assets, which was partially offset by growth in the loan
portfolio.  The  decrease in interest  expense was the result of a lower cost of
funds,  which was offset by deposit growth.  The net interest margin declined 37
basis points to 3.81% for the three-month  period ended September 30, 2001, when
compared to 4.18% for the same period in 2000.

<PAGE>

     For the nine-month  period ended September 30, 2001, net interest income on
a fully taxable equivalent basis was $52.7 million, an increase of $1.0 million,
or 2.0%,  from the same period in 2000. The increase in net interest  income was
the result of a $4.7  million  increase  in interest  income and a $3.7  million
increase in interest expense.  The increase in interest income was the result of
growth in the loan  portfolio,  which was  offset  by a lower  yield on  earning
assets.  The increase in interest expense was the result of deposit growth.  The
net interest margin declined 29 basis points to 3.96% for the nine-month  period
ended September 30, 2001, when compared to 4.25% for the same period in 2000.

     The decrease in net interest  margins is the direct  result of the interest
rate volatility during the reporting periods.  The Federal Reserve has decreased
the  discount  rate by 350 basis  points  during  the first  nine  months of the
current  year in an effort to stimulate a stagnant and  declining  economy.  The
Federal Reserve's  actions to decrease  interest rates have negatively  affected
the net interest  margin of Simmons  First,  as interest rates on earning assets
have declined more rapidly than rates paid on interest bearing liabilities. More
specifically,  the  negative  impact on net  interest  margin was due in part to
Arkansas's  restrictive  usury law. The usury law limited the interest  rate the
Company can charge on the loan portfolio to a maximum of five percentage  points
over the Federal  Reserve  discount  rate.  The most  significant  impact to net
interest  margin  was in the credit  card  portfolio,  which had to be  repriced
immediately after all reductions in the discount rate.

     On November  11,  1999,  the Gramm Leach Bliley Act was adopted by Congress
and signed by the President.  This Act included a provision  which would set the
maximum interest rate on loans made in Arkansas, by banks with Arkansas as their
Home State, at the greater of the rate authorized by Arkansas law or the highest
rate  permitted  by any of the  out-of-state  banks which  maintain  branches in
Arkansas.  An action was brought in the Western District of Arkansas,  attacking
the validity of the statute in 2000.  Subsequently,  the District Court issued a
decision  upholding the statute.  Furthermore,  during  October 2001, the Eighth
Circuit Court of Appeals upheld that statute.

     Now that the usury cap issue has been settled,  the Company  anticipates it
will be able to  manage  interest  rate  risk more  effectively  going  forward.
Presently,  the Company is in the process of implementing new lending guidelines
based on the new statute.  The Company  does not expect those  changes to have a
material  impact for the  remainder  of 2001.  However,  the Company does expect
those changes to have a positive impact for 2002.

<PAGE>

     Table 1 and 2 reflect an analysis of net interest income on a fully taxable
equivalent basis for the three-month and nine-month  periods ended September 30,
2001 and 2000, respectively,  as well as changes in fully taxable equivalent net
interest margin for the  three-month and nine-month  periods ended September 30,
2001 versus September 30, 2000.

Table 1:  Analysis of Net Interest Income
(FTE =Fully Taxable Equivalent)

<TABLE>
<CAPTION>

                                                  Three Months Ended                  Nine Months Ended
                                                     September 30,                       September 30,
(In thousands)                                   2001           2000                 2001             2000
------------------------------------------------------------------------------------------------------------
<S>                                         <C>             <C>                  <C>             <C>
Interest income                             $    33,391     $    35,410          $   104,161     $    99,647
FTE adjustment                                      814             729                2,351           2,167
                                            -----------     -----------          -----------     -----------

Interest income - FTE                            34,205          36,139              106,512         101,814
Interest expense                                 16,844          18,424               53,792          50,113
                                            -----------     -----------          -----------     -----------

Net interest income - FTE                   $    17,361     $    17,715          $    52,720     $    51,701
                                             ==========      ==========           ==========      ==========

Yield on earning assets - FTE                     7.51%           8.54%                8.01%           8.36%
Cost of interest bearing liabilities              4.30%           5.02%                4.69%           4.78%
Net interest spread - FTE                         3.21%           3.52%                3.32%           3.58%
Net interest margin - FTE                         3.81%           4.18%                3.96%           4.25%

</TABLE>


Table 2:  Changes in Fully Taxable Equivalent Net Interest Margin

<TABLE>
<CAPTION>

                                                              Three Months Ended             Nine Months Ended
                                                                 September 30,                 September 30,
(In thousands)                                                   2001 vs. 2000                 2001 vs. 2000
--------------------------------------------------------------------------------------------------------------
<S>                                                             <C>                            <C>
Increase due to change in earning assets                        $       1,977                  $      9,041
Decrease due to change in earning asset yields                         (3,911)                       (4,343)
Decrease due to change in interest bearing liabilities                 (1,173)                       (5,011)
Increase due to change in interest rates
       paid on interest bearing liabilities                             2,753                         1,332
                                                                -------------                  ------------
Increase in net interest income                                 $        (354)                 $      1,019
                                                                 ============                   ===========

</TABLE>

     Table 3 shows,  for each  major  category  of earning  assets and  interest
bearing  liabilities,  the average amount  outstanding,  the interest  earned or
expensed  on such  amount  and the  average  rate  earned  or  expensed  for the
three-month and nine-month  periods ended September 30, 2001 and 2000. The table
also shows the  average  rate  earned on all earning  assets,  the average  rate
expensed on all interest  bearing  liabilities,  the net interest spread and the
net interest  margin for the same periods.  The analysis is presented on a fully
taxable  equivalent basis.  Non-accrual loans were included in average loans for
the purpose of calculating the rate earned on total loans.

<PAGE>


Table 3:  Average Balance Sheets and Net Interest Income Analysis

<TABLE>
<CAPTION>


                                                            Three Months  Ended September 30,
                                        ----------------------------------------------------------------------
                                                        2001                               2000
                                        ---------------------------------  -----------------------------------
                                            Average      Income/  Yield/       Average      Income/  Yield/
(In thousands)                              Balance      Expense  Rate(%)      Balance      Expense  Rate(%)
--------------------------------------------------------------------------------------------------------------
<S>                                     <C>            <C>          <C>    <C>            <C>          <C>
ASSETS
------
Earning Assets
Interest bearing balances
   due from banks                       $    49,291    $     400    3.22   $    15,246    $     234    6.11
Federal funds sold                           42,577          347    3.23        13,522          212    6.24
Investment securities - taxable             262,928        3,577    5.40       284,901        4,508    6.29
Investment securities - non-taxable         125,283        2,279    7.22       113,173        2,085    7.33
Mortgage loans held for sale                 19,557          303    6.15         7,563          143    7.52
Assets held in trading accounts                 260            1    1.53           528            5    3.77
Loans                                     1,307,639       27,298    8.28     1,249,524       28,952    9.22
                                        -----------    ---------           -----------    ---------
   Total interest earning assets          1,807,535       34,205    7.51     1,684,457       36,139    8.54
                                                       ---------                          ---------
Non-earning assets                          158,804                            151,441
                                        -----------                        -----------
   Total assets                         $ 1,966,339                        $ 1,835,898
                                         ==========                         ==========

LIABILITIES AND
---------------
STOCKHOLDERS' EQUITY
--------------------
Liabilities
Interest bearing liabilities
   Interest bearing transaction
     and savings accounts               $   468,937    $   2,350    1.99   $   445,093    $   3,271    2.92
   Time deposits                            960,627       12,972    5.36       885,038       12,979    5.83
                                        -----------    ---------           -----------    ---------
     Total interest bearing deposits      1,429,564       15,322    4.25     1,330,131       16,250    4.86
Federal funds purchased and
   securities sold under agreement
   to repurchase                             72,759          592    3.23        77,505        1,156    5.93
Other borrowed funds
   Short-term debt                           10,519          100    3.77        10,305          163    6.29
   Long-term debt                            43,007          830    7.66        42,647          855    7.98
                                        -----------    ---------           -----------    ---------
     Total interest bearing liabilities   1,555,849       16,844    4.30     1,460,588       18,424    5.02
                                                       ---------                          ---------
Non-interest bearing liabilities
   Non-interest bearing deposits            210,246                            189,827
   Other liabilities                         19,199                             17,632
                                        -----------                        -----------
     Total liabilities                    1,785,294                          1,668,047
Stockholders' equity                        181,045                            167,851
                                        -----------                        -----------
   Total liabilities and
     stockholders' equity               $ 1,966,339                        $ 1,835,898
                                         ==========                         ==========
Net interest spread                                                 3.21                               3.52
Net interest margin                                    $  17,361    3.81                  $  17,715    4.18
                                                        ========                           ========

</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                                                            Nine Months  Ended September 30,
                                        ----------------------------------------------------------------------
                                                        2001                               2000
                                        ---------------------------------  -----------------------------------
                                            Average      Income/  Yield/       Average      Income/  Yield/
(In thousands)                              Balance      Expense  Rate(%)      Balance      Expense  Rate(%)
--------------------------------------------------------------------------------------------------------------
<S>                                     <C>            <C>          <C>    <C>            <C>          <C>
ASSETS
------
Earning Assets
Interest bearing balances
   due from banks                       $    36,234    $   1,089    4.02   $    13,393    $     614    6.12
Federal funds sold                           44,765        1,490    4.45        24,791        1,129    6.08
Investment securities - taxable             265,648       11,712    5.89       292,569       13,702    6.26
Investment securities - non-taxable         120,025        6,642    7.40       112,400        6,202    7.37
Mortgage loans held for sale                 16,275          742    6.10         6,737          382    7.57
Assets held in trading accounts                 398           10    3.36         1,738           88    6.76
Loans                                     1,294,873       84,827    8.76     1,174,437       79,697    9.06
                                        -----------    ---------           -----------    ---------
   Total interest earning assets          1,778,218      106,512    8.01     1,626,065      101,814    8.36
                                                       ---------                          ---------
Non-earning assets                          158,311                            141,491
                                        -----------                        -----------
   Total assets                         $ 1,936,529                        $ 1,767,556
                                         ==========                         ==========

LIABILITIES AND
---------------
STOCKHOLDERS' EQUITY
--------------------
Liabilities
Interest bearing liabilities
   Interest bearing transaction
     and savings accounts               $   464,487    $   8,214    2.36   $   441,525    $   9,345    2.83
   Time deposits                            943,495       40,470    5.73       844,523       35,237    5.57
                                        -----------    ---------           -----------    ---------
     Total interest bearing deposits      1,407,982       48,684    4.62     1,286,048       44,582    4.63
Federal funds purchased and
   securities sold under agreement
   to repurchase                             73,770        2,339    4.24        60,022        2,490    5.54
Other borrowed funds
   Short-term debt                            7,869          280    4.76         9,863          411    5.57
   Long-term debt                            42,296        2,489    7.87        44,118        2,630    7.96
                                        -----------    ---------           -----------    ---------
     Total interest bearing liabilities   1,531,917       53,792    4.69     1,400,051       50,113    4.78
                                                       ---------                          ---------
Non-interest bearing liabilities
   Non-interest bearing deposits            207,277                            185,746
   Other liabilities                         19,615                             16,740
                                        -----------                        -----------
     Total liabilities                    1,758,809                          1,602,537
Stockholders' equity                        177,720                            165,019
                                        -----------                        -----------
   Total liabilities and
     stockholders' equity               $ 1,936,529                        $ 1,767,556
                                         ==========                         ==========
Net interest spread                                                 3.32                               3.58
Net interest margin                                    $  52,720    3.96                  $  51,701    4.25
                                                        ========                           ========

</TABLE>

<PAGE>

     Table 4 shows changes in interest  income and interest  expense,  resulting
from  changes in volume and changes in interest  rates for the  three-month  and
nine-month  month  periods  ended  September  30,  2001 as compared to the prior
period.  The changes in interest rate and volume have been  allocated to changes
in  average  volume  and  changes  in  average  rates,   in  proportion  to  the
relationship of absolute dollar amounts of the changes in rates and volume.

Table 4:  Volume/Rate Analysis

<TABLE>
<CAPTION>

                                        Three Months Ended September 30,         Nine Months Ended September 30,
                                                  2001 over 2000                          2001 over 2000
                                   ---------------------------------------  -----------------------------------------
(In thousands, on a fully                               Yield/                              Yield/
 taxable equivalent basis)                  Volume       Rate      Total         Volume      Rate       Total
---------------------------------------------------------------------------------------------------------------------
<S>                                       <C>         <C>        <C>            <C>       <C>         <C>
Increase (decrease) in

Interest income
   Interest bearing balances
      due from banks                      $    319    $   (153)  $     166      $   747   $   (272)   $     475
   Federal funds sold                          277        (142)        135          726       (365)         361
   Investment securities - taxable            (331)       (600)       (931)      (1,216)      (774)      (1,990)
   Investment securities - non-taxable         220         (26)        194          422         18          440
   Mortgage loans held for sale                190         (30)        160          448        (88)         360
   Assets held in trading accounts              (2)         (2)         (4)         (47)       (31)         (78)
   Loans                                     1,304      (2,958)     (1,654)       7,961     (2,831)       5,130
                                          --------    --------   ---------      -------   --------    ---------

   Total                                     1,977      (3,911)     (1,934)       9,041     (4,343)       4,698
                                          --------    --------   ---------      -------   --------    ---------

Interest expense
   Interest bearing transaction and
     savings accounts                          167      (1,088)       (921)         467     (1,598)      (1,131)
   Time deposits                             1,063      (1,070)         (7)       4,223      1,010        5,233
   Federal funds purchased
     and securities sold under
     agreements to repurchase                  (67)       (497)       (564)         504       (655)        (151)
   Other borrowed funds
     Short-term debt                             3         (66)        (63)         (76)       (55)        (131)
     Long-term debt                              7         (32)        (25)        (107)       (34)        (141)
                                          --------    --------   ---------      -------   --------    ---------

   Total                                     1,173      (2,753)     (1,580)       5,011     (1,332)       3,679
                                          --------    --------   ---------      -------   --------    ---------
Increase (decrease) in
 net interest income                      $    804    $ (1,158)  $    (354)     $ 4,030   $ (3,011)   $   1,019
                                           =======     =======    ========       ======    =======     ========

</TABLE>

<PAGE>


PROVISION FOR LOAN LOSSES
-------------------------

     The provision for loan losses represents management's  determination of the
amount necessary to be charged against the current period's  earnings,  in order
to  maintain  the  allowance  for loan  losses at a level,  which is  considered
adequate, in relation to the estimated risk inherent in the loan portfolio.  The
provision for the three-month  period ended September 30, 2001 and 2000 was $3.4
million and $1.9 million,  respectively. The provision for the nine-month period
ended   September  30,  2001  and  2000  was  $7.2  million  and  $5.5  million,
respectively.  The increase in the  provision  in the 3rd quarter was  primarily
related to an increase in the classified assets at one community bank subsidiary
of the Company. More specifically, the increase in classified assets was related
to a single officer's portfolio, who is no longer with the Company.

NON-INTEREST INCOME
-------------------

     Total non-interest income was $8.7 million for the three-month period ended
September  30, 2001,  compared to $8.1 million for the same period in 2000.  For
the nine-months ended September 30, 2001, non-interest income was $25.1 million,
an 11.2%  increase  from the $22.6  million  reported  for the same period ended
September 30, 2000.  Non-interest  income is principally  derived from recurring
fee income,  which includes  service  charges,  trust fees and credit card fees.
Non-interest  income  also  includes  income on the sale of  mortgage  loans and
investment banking profits.

     Table 5  shows  non-interest  income  for the  three-month  and  nine-month
periods ended September 30, 2001 and 2000,  respectively,  as well as changes in
2001 from 2000.

Table 5:  Non-Interest Income

<TABLE>
<CAPTION>

                                       Three Months                              Nine Months
                                      Ended Sept 30,           2001             Ended Sept 30,            2001
                                   --------------------    Change from      ----------------------    Change from
(In thousands)                        2001       2000          2000             2001       2000           2000
---------------------------------------------------------------------------------------------------------------------
<S>                                <C>       <C>         <C>     <C>         <C>        <C>         <C>       <C>
Trust income                       $  1,443  $   1,496   $  (53)    -3.54%   $   4,099  $   4,000   $   99      2.48%
Service charges on
   deposit accounts                   2,226      2,176       50      2.30        6,634      5,808      826     14.22
Other service charges and fees          408        392       16      4.08        1,374      1,406      (32)    -2.28
Income on sale of mortgage loans,
   net of commissions                   781        521      260     49.90        2,218      1,277      941     73.69
Income on investment banking,
   net of commissions                   298         13      285  2,192.31          638        188      450    239.36
Credit card fees                      2,669      2,712      (43)    -1.59        7,791      7,671      120      1.56
Other income                            901        817       84     10.28        2,376      2,250      126      5.60
                                   --------  ---------   ------              ---------  ---------   ------
       Total non-interest income   $  8,726  $   8,127   $  599      7.37%   $  25,130  $  22,600   $2,530     11.19%
                                    =======   ========    =====               ========   ========    =====
</TABLE>

<PAGE>

     Recurring fee income for the  three-month  period ended  September 30, 2001
was $6.7  million,  a decrease of  approximately  $30,000 when compared with the
same period for 2000.  This  decrease is  primarily  the result of the events of
September 11th, which created  significant  uncertainties  among consumers and a
slowdown in consumer  spending.  As a result,  credit card fees were  negatively
impacted by the decrease in merchant and interchange  fees that are an important
component of the credit card income.  Also,  much of the trust fees are based on
asset valuations. Thus, fee income from the Company's trust activities decreased
due to the decline in the stock markets.

     Recurring fee income for the nine-month period ended September 30, 2001 was
$19.9 million, an increase of approximately $1.0 million, or 5.36% when compared
with the same period for 2000. These increases are primarily attributable to the
growth in service charges on deposit  accounts.  The increase in service charges
on  deposit  accounts  for 2001 is the result of  internal  deposit  growth,  an
improved fee structure and the acquisition completed during July 2000.

     During the  three-month  and nine-month  periods ended  September 30, 2001,
income on the sale of mortgage  loans  increased  $260,000 and $941,000 from the
same periods during 2000.  These  increases were the result of a higher mortgage
origination  volume  for 2001  compared  to 2000.  This  increase  in volume was
primarily the result of the decline in mortgage  interest rates during the first
nine months of 2001.

     During the  three-month  and nine-month  periods ended  September 30, 2001,
income on  investment  banking  increased  $285,000 and  $450,000  from the same
periods during 2000. These increases were primarily the result of the decline in
interest rates during the first nine months of 2001.


NON-INTEREST EXPENSE
--------------------

     Non-interest expense consists of salaries and employee benefits, occupancy,
equipment,  foreclosure losses and other expenses necessary for the operation of
the  Company.   Management   remains  committed  to  controlling  the  level  of
non-interest expense, through the continued use of expense control measures that
have been  installed.  The Company  utilizes an  extensive  profit  planning and
reporting  system  involving all affiliates.  Based on a needs assessment of the
business  plan for the  upcoming  year,  monthly  and  annual  profit  plans are
developed,  including  manpower and capital  expenditure  budgets.  These profit
plans are subject to extensive  initial reviews and monitored by management on a
monthly basis.  Variances from the plan are reviewed monthly and, when required,
management takes  corrective  action intended to ensure financial goals are met.
Management also regularly monitors staffing levels at each affiliate,  to ensure
productivity and overhead are in line with existing workload requirements.

<PAGE>

     Non-interest  expense for the  three-month  and  nine-month  periods  ended
September 30, 2001,  were $17.2 million and $50.8  million,  an increase of $1.2
million or 7.4% and $4.3 million or 9.3%, respectively, from the same periods in
2000.  These  increases  reflect  the  Company's  commitment  to  investment  in
technology and branch infrastructure  combined with the normal increased cost of
doing  business.  The Company opened its third and fourth banking centers in the
Little  Rock  metropolitan  area  during the second and third  quarters of 2001,
respectively.  Also, the nine-month increase reflects the acquisition  completed
during July 2000.

     Table 6 below shows non-interest expense for the three-month and nine-month
periods ended September 2001 and 2000, respectively,  as well as changes in 2001
from 2000.

Table 6:  Non-Interest Expense

<TABLE>
<CAPTION>


                                       Three Months                                 Nine Months
                                       Ended Sept 30           2001                Ended Sept 30              2001
                                    --------------------   Change from          ---------------------     Change from
(In thousands)                        2001       2000          2000               2001       2000             2000
-----------------------------------------------------------------------------------------------------------------------
<S>                                <C>       <C>       <C>         <C>          <C>        <C>       <C>        <C>
Salaries and employee benefits     $  9,058  $  8,591  $    467      5.44%      $  26,963  $  25,282 $  1,681     6.65%
Occupancy expense, net                1,183     1,035       148     14.30           3,443      2,830      613    21.66
Furniture and equipment expense       1,250     1,336       (86)    -6.44           3,924      3,891       33     0.85
Loss on foreclosed assets               165        66        99    150.00             327        194      133    68.56
Other operating expenses
   Professional services                468       348       120     34.48           1,290      1,099      191    17.38
   Postage                              489       485         4      0.82           1,540      1,554      (14)   -0.90
   Telephone                            385       358        27      7.54           1,151      1,036      115    11.10
   Credit card expenses                 475       436        39      8.94           1,346      1,262       84     6.66
   Operating supplies                   398       379        19      5.01           1,207      1,118       89     7.96
   FDIC insurance                        76        87       (11)   -12.64             229        256      (27)  -10.55
   Amortization of intangibles          760       767        (7)    -0.91           2,273      2,003      270    13.48
   Other expense                      2,447     2,087       360     17.25           7,124      5,980    1,144    19.13
                                   --------  --------  --------                 ---------  --------- --------
       Total non-interest expense  $ 17,154  $ 15,975  $  1,179      7.38%      $  50,817  $  46,505 $  4,312     9.27%
                                    =======   =======   =======                  ========   ========  =======

</TABLE>


EARNINGS/RATIOS EXCLUDING INTANGIBLES
-------------------------------------

     Table 7 reconciles  reported  earnings to net income  excluding  intangible
amortization  (cash earnings) for the  three-month and nine-month  periods ended
September 30, 2001 and 2000. Table 8 presents the calculation of the cash return
on assets and cash return on equity for the three-month  and nine-month  periods
ended  September 30, 2001 and 2000. The Company  specifically  formulated  these
calculations  and the results may not be comparable to similarly titled measures
reported by other companies.  Also, cash earnings are not entirely available for
use by management.  See the Consolidated  Statements of Cash Flows and Condensed
Notes  to  the  Financial  Statements  for  other  information  regarding  funds
available for use by management.

<PAGE>

Table 7: Earnings Excluding Intangible Amortization

<TABLE>
<CAPTION>


                                             For the Three Months                     For the Nine Months
                                      ----------------------------------     ----------------------------------
                                       Reported   Intangible    "Cash"         Reported   Intangible    "Cash"
(In thousands)                         Earnings  Amortization  Earnings        Earnings  Amortization  Earnings
---------------------------------------------------------------------------------------------------------------
<S>                                   <C>         <C>         <C>            <C>         <C>         <C>
Ended September 30, 2001
------------------------

Income before income taxes            $    4,690  $     760   $   5,450      $   17,433  $   2,273   $  19,706
     Provision for income taxes            1,154        260       1,414           4,856        779       5,635
                                      ----------  ---------   ---------      ----------  ---------   ---------
Net Income                            $    3,536  $     500   $   4,036      $   12,577  $   1,494   $  14,071
                                       =========   ========    ========       =========   ========    ========

Basic earnings per common share       $     0.50  $    0.07   $    0.57      $     1.77  $    0.21   $    1.98
                                       =========   ========    ========       =========   ========    ========
Diluted earnings per common share     $     0.49  $    0.07   $    0.56      $     1.76  $    0.21   $    1.97
                                       =========   ========    ========       =========   ========    ========

Ended September 30, 2000
------------------------

Income before income taxes            $    7,246  $     767   $   8,013      $   20,092  $   2,003   $  22,095
     Provision for income taxes            2,281        259       2,540           6,190        665       6,855
                                      ----------  ---------   ---------      ----------  ---------   ---------
Net Income                            $    4,965  $     508   $   5,473      $   13,902  $   1,338   $  15,240
                                       =========   ========    ========       =========   ========    ========

Basic earnings per common share       $     0.68  $    0.08   $    0.76      $     1.90  $    0.19   $    2.09
                                       =========   ========    ========       =========   ========    ========
Diluted earnings per common share     $     0.67  $    0.08   $    0.75      $     1.89  $    0.19   $    2.08
                                       =========   ========    ========       =========   ========    ========

</TABLE>

Table 8: Ratios Excluding Intangibles

<TABLE>
<CAPTION>


                                                          Three Months               Nine Months
                                                       Ended September 30,       Ended September 30,
(In thousands)                                           2001       2000           2001        2000
-----------------------------------------------------------------------------------------------------
<S>                                                <C>          <C>          <C>          <C>
Cash ROA:  A/(B-D)*(G/F)                                 0.83%        1.21%        0.99%        1.17%
Cash ROE:  A/(C-E) *(G/F)                                8.91%       13.08%       10.66%       12.44%

     (A) Cash Earnings                             $     4,036  $     5,473  $    14,071  $    15,240
     (B) Average total assets                        1,966,339    1,835,898    1,936,529    1,767,556
     (C) Average stockholders' equity                  181,045      167,851      177,720      165,019
     (D) Average total intangible assets                33,310       34,568       34,073       29,278
     (E) Average intangible assets remaining
               in stockholders' equity                   1,284        1,367        1,292        1,405
     (F) Total days during the period                       92           92          273          274
     (G) Total days during the year                        365          366          365          366

</TABLE>

     In 2001,  the  Financial  Accounting  Standards  Board issued SFAS No. 142,
Goodwill  and  Other  Intangible  Assets.  This  statement  addresses  financial
accounting and reporting for goodwill and other intangible  assets acquired in a
business  combination at acquisition.  The Company will be required to adopt the
new  rules  effective   January  1,  2002.  The  new  rule  will  eliminate  the
amortization of goodwill and require that it be tested for impairment at a level
of reporting referred to as a reporting unit. The elimination of amortization of
goodwill  is  expected  to increase  2002 net  earnings  by  approximately  $1.8
million,  or $0.24 per diluted  share.  The Company  will analyze and assess the
impairment  provisions of the Statement,  but has not yet determined the impact,
if any, of the adoption of those provisions.

<PAGE>

LOAN PORTFOLIO
--------------

     The Company's  loan  portfolio  averaged  $1.295 billion and $1.174 billion
during the first nine months of 2001 and 2000, respectively. As of September 30,
2001,  total loans were $1.299  billion,  compared to $1.295 billion on December
31, 2000.  The most  significant  components of the loan portfolio were loans to
businesses  (commercial  loans and commercial real estate loans) and individuals
(consumer  loans,  credit card loans and  single-family  residential real estate
loans).

     The  Company  seeks to manage  its  credit  risk by  diversifying  its loan
portfolio,  determining  that borrowers  have adequate  sources of cash flow for
loan  repayment  without  liquidation  of  collateral,  obtaining and monitoring
collateral,  providing  an  adequate  allowance  for loan  losses and  regularly
reviewing loans through the internal loan review process.  The loan portfolio is
diversified  by borrower,  purpose and industry  and, in the case of credit card
loans,  which are  unsecured,  by  geographic  region.  The Company seeks to use
diversification  within  the loan  portfolio  to  reduce  credit  risk,  thereby
minimizing the adverse impact on the portfolio,  if weaknesses develop in either
the economy or a particular  segment of borrowers.  Collateral  requirements are
based on credit  assessments of borrowers and may be used to recover the debt in
case of default.  The Company uses the  allowance for loan losses as a method to
value  the  loan  portfolio  at its  estimated  collectible  amount.  Loans  are
regularly   reviewed  to  facilitate  the   identification   and  monitoring  of
deteriorating credits.

     Consumer  loans  consist  of credit  card  loans,  student  loans and other
consumer  loans.  Consumer  loans were $448.4  million at September 30, 2001, or
34.5% of total  loans,  compared to $457.3  million,  or 35.3% of total loans at
December  31,  2000.  The  consumer  loan  decrease  from  December  31, 2000 to
September  30, 2001 is the result of the Company's  lower credit card  portfolio
and other consumer loans. However, those lower levels were offset by an increase
in  student  loans.  The  credit  card  portfolio  decrease  was the  result  of
seasonality in the Company's portfolio for that particular product. The decrease
in other  consumer  loans is the result of a decline in the  Company's  indirect
lending.

     Real estate loans consist of construction loans,  single-family residential
loans and commercial  loans.  Real estate loans were $591.7 million at September
30, 2001, or 45.6% of total loans, which is comparable to the $600.7 million, or
46.4% of total loans at December 31, 2000.

     Commercial  loans  consist  of  commercial  loans,  agricultural  loans and
financial  institution loans.  Commercial loans were $244.4 million at September
30, 2001, or 18.8% of total loans, compared to $220.6 million, or 17.0% of total
loans at December 31, 2000. The commercial  loan increase from December 31, 2000
to September 30, 2001 is the result of seasonality in the Company's agricultural
loan portfolio.

     The amounts of loans  outstanding  at the indicated  dates are reflected in
Table 9, according to type of loan.

<PAGE>

Table 9:  Loan Portfolio

<TABLE>
<CAPTION>


                                                            September 30,       December 31,
(In thousands)                                                  2001                2000
--------------------------------------------------------------------------------------------
<S>                                                       <C>                <C>
Consumer
   Credit cards                                           $     187,738      $     197,567
   Student loans                                                 73,467             67,145
   Other consumer                                               187,199            192,595
Real Estate
   Construction                                                  80,070             69,169
   Single family residential                                    232,122            244,377
   Other commercial                                             279,464            287,170
Commercial
   Commercial                                                   161,245            161,134
   Agricultural                                                  76,066             57,164
   Financial institutions                                         7,099              2,339
Other                                                            14,073             16,050
                                                          -------------      -------------

      Total loans                                         $   1,298,543      $   1,294,710
                                                           ============       ============
</TABLE>


ASSET QUALITY
-------------

     A loan is considered impaired when it is probable that the Company will not
receive all amounts due  according to the  contracted  terms of the loans.  This
includes  loans past due 90 days or more,  nonaccrual  loans and  certain  loans
identified by management.

     Non-performing  loans are comprised of (a) nonaccrual loans, (b) loans that
are contractually past due 90 days and (c) other loans for which terms have been
restructured  to provide a reduction  or  deferral  of  interest  or  principal,
because  of  deterioration  in  the  financial  position  of the  borrower.  The
subsidiary  banks  recognize   income   principally  on  the  accrual  basis  of
accounting.  When loans are  classified as nonaccrual,  the accrued  interest is
charged off and no further  interest is accrued.  Loans,  excluding  credit card
loans,  are placed on a  nonaccrual  basis  either:  (1) when there are  serious
doubts  regarding  the  collectability  of principal  or  interest,  or (2) when
payment of interest or  principal is 90 days or more past due and either (i) not
fully secured or (ii) not in the process of collection.  If a loan is determined
by  management  to be  uncollectible,  the portion of the loan  determined to be
uncollectible  is then charged to the  allowance  for loan  losses.  Credit card
loans are  classified  as impaired  when  payment of interest or principal is 90
days past due.  Litigation  accounts are placed on nonaccrual until such time as
deemed  uncollectible.  Credit card loans are generally charged off when payment
of interest or  principal  exceeds 180 days past due, but are turned over to the
credit  card  recovery  department,  to be  pursued  until such time as they are
determined, on a case-by-case basis, to be uncollectible.

     At September 30, 2001,  impaired loans were $21.6 million compared to $18.1
million at December 31, 2000.  The increase in impaired  loans from December 31,
2000,  primarily relates to the $4.8 million increase in  non-performing  loans,
which is a result  of the  general  slowdown  and  uncertainty  in the  economy.
However,  this was offset by a $1.3 million decrease of borrowers that are still
performing,  but for which  management  has  internally  identified as impaired.
Management  has  evaluated  the  underlying  collateral  on these  loans and has
allocated  specific  reserves  in  order  to  absorb  potential  losses  if  the
collateral were ultimately foreclosed.

<PAGE>

     Table 10 presents information concerning  non-performing assets,  including
nonaccrual and other real estate owned.

Table 10:  Non-performing Assets

<TABLE>
<CAPTION>

                                                    September 30,           December 31,
 (In thousands)                                         2001                    2000
----------------------------------------------------------------------------------------
<S>                                              <C>                       <C>
Nonaccrual loans                                 $      12,765             $       8,212
Loans past due 90 days or more
  (principal or interest payments)                       3,035                     2,752
                                                 -------------             -------------

     Total non-performing loans                         15,800                    10,964
                                                 -------------             -------------

Other non-performing assets
  Foreclosed assets held for sale                        1,081                     1,104
  Other non-performing assets                              187                       196
                                                 -------------              ------------
      Total other non-performing assets                  1,268                     1,300
                                                 -------------              ------------

          Total non-performing assets            $      17,068             $      12,264
                                                  ============              ============

Allowance for loan losses to
  period-end loans                                       1.64%                     1.63%
Allowance for loan losses to
  non-performing loans                                 135.20%                   192.97%
Non-performing loans to total loans                      1.22%                     0.85%
Non-performing assets to total assets                    0.84%                     0.64%

</TABLE>



     Approximately  $836,000  and  $557,000 of interest  income  would have been
recorded  for  the  nine-month  periods  ended  September  30,  2001  and  2000,
respectively,  if the nonaccrual loans had been accruing  interest in accordance
with their original terms.  There was no interest income on the nonaccrual loans
recorded for the nine-month periods ended September 30, 2001 and 2000.

<PAGE>

ALLOWANCE FOR LOAN LOSSES
-------------------------

     An analysis of the allowance for loan losses is shown in Table 11.

Table 11:  Allowance for Loan Losses

<TABLE>
<CAPTION>


(In thousands)                                                2001                    2000
-----------------------------------------------------------------------------------------------
<S>                                                    <C>                      <C>
Balance, beginning of year                             $         21,157         $        17,085
                                                        ---------------          --------------

Loans charged off
   Credit card                                                    3,258                   2,422
   Other consumer                                                 2,156                   1,719
   Real estate                                                    1,088                     395
   Commercial                                                     1,793                     936
                                                       ----------------         ---------------
         Total loans charged off                                  8,295                   5,472
                                                       ----------------         ---------------

Recoveries of loans previously charged off
   Credit card                                                      387                     347
   Other consumer                                                   583                     651
   Real estate                                                      131                      90
   Commercial                                                       149                     298
                                                       ----------------         ---------------
         Total recoveries                                         1,250                   1,386
                                                       ----------------         ---------------
   Net loans charged off                                          7,045                   4,086
Allowance for loan losses of
   acquired branches                                                 --                   2,155
Provision for loan losses                                         7,249                   5,537
                                                       ----------------         ---------------
Balance, September 30                                  $         21,361         $        20,691
                                                        ===============          --------------

Loans charged off
   Credit card                                                                              962
   Other consumer                                                                           630
   Real estate                                                                              211
   Commercial                                                                               474
                                                                                ---------------
         Total loans charged off                                                          2,277
                                                                                ---------------

Recoveries of loans previously charged off
   Credit card                                                                              121
   Other consumer                                                                           149
   Real estate                                                                                2
   Commercial                                                                                27
                                                                                ---------------
         Total recoveries                                                                   299
                                                                                ---------------
   Net loans charged off                                                                  1,978
Allowance for loan losses of
   acquired institutions                                                                    450
Provision for loan losses                                                                 1,994
                                                                                ---------------
Balance, end of year                                                            $        21,157
                                                                                 ==============

</TABLE>

<PAGE>

     The amount of  provision to the  allowance  during the  nine-month  periods
ended  September  30, 2001 and 2000,  and for the year ended 2000,  was based on
management's  judgment,  with  consideration  given  to the  composition  of the
portfolio,  historical  loan loss  experience,  assessment  of current  economic
conditions,  past due loans and net losses  from loans  charged off for the last
five years.  It is  management's  practice to review the  allowance on a monthly
basis to determine whether additional provisions should be made to the allowance
after considering the factors noted above.

DEPOSITS
--------

     Deposits are the Company's  primary  source of funding for earning  assets.
The  Company  offers a variety  of  products  designed  to  attract  and  retain
customers, with the primary focus on core deposits.

     Total deposits as of September 30, 2001, were $1.676  billion,  compared to
$1.606  billion on December 31, 2000. The increase in deposits from December 31,
2000 to September  30, 2001, is primarily  attributable  to an increase in large
certificates  of deposit  from local  markets.  As of September  30, 2001,  time
deposits over $100,000  were $385.9  million,  an increase of $60.9 million over
the $325.0 million reported as of December 31, 2000.

CAPITAL
-------

     At September  30, 2001,  total  capital  reached  $181.2  million.  Capital
represents  shareholder  ownership in the Company -- the book value of assets in
excess of  liabilities.  At September 30, 2001,  the  Company's  equity to asset
ratio was 8.9% compared to 9.06% at year-end  2000.  This decrease in the equity
to asset ratio was  primarily  attributable  to the Company's  stock  repurchase
program.

     The  Federal   Reserve   Board's   risk-based   guidelines   established  a
risk-adjusted  ratio,  relating  capital to different  categories  of assets and
off-balance  sheet  exposures,  such as loan  commitments and standby letters of
credit.  These  guidelines  place a strong  emphasis on  tangible  stockholders'
equity as the core element of the capital base, with appropriate  recognition of
other  components of capital.  At September 30, 2001, the leverage ratio and the
Tier 1 capital  ratio was 8.39% and 12.27%,  respectively,  while the  Company's
total  risk-based  capital  ratio was  13.55%,  all of which  exceed the capital
minimums established in the risk-based capital requirements.

     The Company's  risk-based capital ratios at September 30, 2001 and December
31, 2000, are presented in Table 12.

<PAGE>


Table 12:  Risk-Based Capital
<TABLE>
<CAPTION>

                                                                         September 30,     December 31,
(In thousands)                                                               2001              2000
----------------------------------------------------------------------------------------------------------
<S>                                                                    <C>              <C>
Tier 1 capital
   Stockholders' equity                                                $      181,152   $      173,343
   Trust preferred securities                                                  17,250           17,250
   Intangible assets                                                          (32,939)         (35,241)
   Unrealized (gain) loss on available-
     for-sale securities                                                       (2,367)              34
   Other                                                                         (889)            (916)
                                                                       --------------   --------------

              Total Tier 1 capital                                            162,207          154,470
                                                                       --------------   --------------

Tier 2 capital
   Qualifying unrealized gain on
     available-for-sale equity securities                                         406              475
   Qualifying allowance for loan losses                                        16,570           16,193
                                                                       --------------   --------------

              Total Tier 2 capital                                             16,976           16,668
                                                                       --------------   --------------

              Total risk-based capital                                 $      179,183   $      171,138
                                                                        =============    =============

Risk weighted assets                                                   $    1,322,196   $    1,290,494
                                                                        =============    =============

Assets for leverage ratio                                              $    1,932,511   $    1,837,163
                                                                        =============    =============

Ratios at end of year
     Leverage ratio                                                             8.39%            8.41%
     Tier 1 capital                                                            12.27%           11.97%
     Total risk-based capital                                                  13.55%           13.26%
Minimum guidelines
     Leverage ratio                                                             4.00%            4.00%
     Tier 1 capital                                                             4.00%            4.00%
     Total risk-based capital                                                   8.00%            8.00%

</TABLE>

FORWARD-LOOKING STATEMENTS
--------------------------

     Statements  in  this  report  that  are  not  historical  facts  should  be
considered   forward-looking  statements  within  the  meaning  of  the  Private
Securities  Litigation  Reform Act of 1995.  Forward-looking  statements of this
type  speak  only as of the  date of this  report.  By  nature,  forward-looking
statements involve inherent risk and uncertainties.  Various factors, including,
but not limited to, economic  conditions,  credit quality,  interest rates, loan
demand  and  changes  in the  assumptions  used in  making  the  forward-looking
statements,   could  cause  actual  results  to  differ  materially  from  those
contemplated  by  the  forward-looking  statements.  Additional  information  on
factors that might  affect the  Company's  financial  results is included in its
annual  report  for 2000 (Form  10-K)  filed with the  Securities  and  Exchange
Commission.

                                     <PAGE>
               REVIEW BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

                                    BKD, LLP

                          Certified Public Accountants
                                200 East Eleventh
                              Pine Bluff, Arkansas


Board of Directors
Simmons First National Corporation
Pine Bluff, Arkansas

     We have reviewed the accompanying  condensed  consolidated balance sheet of
SIMMONS FIRST  NATIONAL  CORPORATION  as of September 30, 2001,  and the related
condensed  consolidated  statements of income for the three-month and nine-month
periods  ended  September  30,  2001  and 2000 and cash  flows  and  changes  in
stockholders'  equity for the  nine-month  periods ended  September 30, 2001 and
2000.  These  financial  statements  are  the  responsibility  of the  Company's
management.

     We conducted our reviews in accordance  with  standards  established by the
American  Institute  of  Certified  Public  Accountants.  A  review  of  interim
financial  information consists principally of applying analytical procedures to
financial  data and making  inquiries of persons  responsible  for financial and
accounting matters. It is substantially less in scope than an audit conducted in
accordance with generally accepted auditing standards, the objective of which is
the  expression  of an opinion  regarding the  financial  statements  taken as a
whole. Accordingly, we do not express such an opinion.

     Based on our reviews,  we are not aware of any material  modifications that
should be made to the condensed  consolidated  financial  statements referred to
above  for  them  to  be  in  conformity  with  generally  accepted   accounting
principles.

     We have previously  audited, in accordance with generally accepted auditing
standards in the United States of America,  the consolidated balance sheet as of
December 31, 2000, and the related consolidated statements of income, cash flows
and  changes in  stockholders'  equity  for the year then  ended (not  presented
herein),  and in our report dated  February 2, 2001, we expressed an unqualified
opinion  on  those  consolidated  financial  statements.  In  our  opinion,  the
information set forth in the accompanying  condensed  consolidated balance sheet
as of December 31, 2000, is fairly stated, in all material respects, in relation
to the consolidated balance sheet from which it has been derived.



                                         /s/ BKD, LLP
                                         BKD, LLP


Pine Bluff, Arkansas
November 7, 2001

<PAGE>


Part II:  Other Information

Item 2.  Changes in Securities.

     Recent Sales of Unregistered  Securities.  The following  transactions  are
sales of  unregistered  shares of Class A Common Stock of the Company which were
issued to executive and senior  management  officers upon the exercise of rights
granted  under  (i)the   Simmons  First  National   Corporation   Incentive  and
Non-qualified  Stock  Option Plan (ii) the Simmons  First  National  Corporation
Executive Stock Incentive Plan, or (iii) the Simmons First National  Corporation
Executive  Stock  Incentive  Plan - 2001. No  underwriters  were involved and no
underwriter's discount or commissions were involved. Exemption from registration
is  claimed  under  Section  4(2)  of the  Securities  Act of  1933  as  private
placements. The Company received cash or exchanged shares of the Company's Class
A Common Stock as the consideration for the transactions.

<TABLE>
<CAPTION>

                                                    Number
Identity(1)            Date of Sale                of Shares     Price(2)                  Type of Transaction
----------------------------------------------------------------------------------------------------------------
<S>                <C>                               <C>         <C>                      <C>
2 Officers              July, 2001                   1,200       20.5000                  Incentive Stock Option
2 Officers              July, 2001                     900       25.6667                  Incentive Stock Option
3 Officers            August, 2001                   1,200       20.5000                  Incentive Stock Option
3 Officers            August, 2001                   1,821       25.6667                  Incentive Stock Option
1 Officer          September, 2001                     300       25.6667                  Incentive Stock Option

<FN>

------------
Notes:

1.   The transactions are grouped to show sales of stock based upon exercises of
     rights by officers of the  registrant or its  subsidiaries  under the stock
     plans, which occurred at the same price during a calendar month.

2.   The per share price paid for incentive  stock options  represents  the fair
     market value of the stock as determined  under the terms of the Plan on the
     date the incentive stock option was granted to the officer.

</FN>
</TABLE>

Item 6. Reports on Form 8-K

     The registrant  filed Form 8-K on July 19, 2001.  The report  contained the
text of a press release issued by the registrant  concerning the announcement of
second quarter earnings.

     The registrant  filed Form 8-K on August 28, 2001. The report contained the
text of a press release issued by the registrant concerning the declaration of a
quarterly cash dividend.

     The registrant  filed Form 8-K on September 4, 2001.  The report  contained
the text of a press release issued by the registrant concerning William E. Clark
joining the Company's board of directors.

<PAGE>

                                   SIGNATURES

     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
                                    ----------------------------------
                                                (Registrant)



Date:  November 7, 2001             /s/ J. Thomas May
     --------------------           -------------------------------------------
                                    J. Thomas May,  Chairman,
                                    President and  Chief Executive Officer



Date:  November 7, 2001             /s/ Barry L. Crow
     --------------------           -------------------------------------------
                                    Barry L. Crow, Executive Vice President
                                    and Chief Financial Officer