* Says economic indicators improved since October

* Says has strong asset quality, liquidity and capital

July 7 (Reuters) - Financial holding company Simmons First National Corp (SFNC.O: Quote, Profile, Research) said it would not participate in the U.S. Treasury's Capital Purchase Program (CPP), citing improved financial conditions.

The Arkansas-based holding company with eight community banks said it was approved a $60 million funding. The funding was delayed due to extensions it had requested.

"Our purpose for applying was simply an issue of insurance, since you can never have too much capital during a period of turbulence," Chief Executive J. Thomas May said in a statement.

The bank said there has been considerable improvement in economic indicators since October and the Arkansas economy is doing well relative to many other regions of the country.

Shares of the company closed at $26.28 Tuesday on Nasdaq. They touched a 52-week low of $20.30 in March. (Reporting by Abhinav Sharma in Bangalore; Editing by Ratul Ray Chaudhuri)