Simmons First National Corporation
11/06/2025 | Press release | Distributed by Public on 11/06/2025 14:39
Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)
Management's Discussion and Analysis of Financial Condition and Results of Operations
As permitted by SEC rules, management presents a sequential quarterly analysis of the Company's performance as we believe that comparing current quarter results to those of the immediately preceding fiscal quarter is more useful in identifying current business trends and provides a more relevant analysis of our business results. Accordingly, we have compared our results of operations for the three months ended September 30, 2025 to our results of operations for the three months ended June 30, 2025, as applicable, throughout this Management's Discussion and Analysis of Financial Condition and Results of Operations. For additional information regarding the Company's results for the three months ended June 30, 2025, please refer to our second quarter Form 10-Q filed with the SEC on August 5, 2025.
OVERVIEW
The third quarter of 2025 was transformative for our Company. We successfully raised $326.9 million of equity capital to reposition our balance sheet. We effectively addressed a negative arbitrage between long-term bond yields and shorter-term funding costs which freed up capital for future growth. We reclassified approximately $3.6 billion in held-to-maturity ("HTM") securities to available-for-sale ("AFS") securities and sold approximately $3.2 billion in amortized cost basis of AFS securities (including certain of those previously classified as HTM). The sale of investment securities resulted in a realized, after-tax loss of $625.6 million (based on actual tax rate of 21.946%). Proceeds from the sale of the investment securities were primarily used to deleverage the balance sheet through the pay-down of higher rate, non-relationship wholesale and public fund deposits, as well as higher rate other borrowings primarily consisting of FHLB advances. While the one-time loss on the sale of the bonds was significant, the financial strength of our company coupled with the positive sentiment from investors allowed us that opportunity.
We followed the balance sheet repositioning by issuing $325.0 million in aggregate principal amount of 6.25% Fixed-to-Floating Rate Subordinated Notes ("2025 Notes"), which qualify as Tier 2 regulatory capital of the Company. The proceeds of this issuance were used to redeem $330.0 million of our 5.00% Fixed-to-Floating Rate Subordinated Notes ("2018 Notes"), which qualified as Tier 2 regulatory capital but were subject to amortizing regulatory capital treatment as they approached maturity, effective October 1, 2025.
While we continue to operate against a backdrop of uncertainty concerning the macroeconomic environment and the timing of future interest rate moves, we continue our focus on organic growth in our current footprint and are encouraged by our positive momentum through the nine months ended September 30, 2025:
•Total deposits as of September 30, 2025 were $19.84 billion, compared to $21.89 billion as of December 31, 2024. Uninsured, non-collateralized deposits as of September 30, 2025 were approximately $4.46 billion, or 22% of total deposits.
•Capital levels remained strong over the period following the balance sheet repositioning, with all regulatory capital ratios remaining significantly above "well-capitalized" guidelines as of September 30, 2025 (see Table 13 in the Risk-Based Capitalsection below). As of September 30, 2025, our ratio of common equity to total assets was 13.85%, the ratio of tangible common equity to tangible assets was 8.53% and our Tier 1 leverage ratio was 9.56%.
•The loan to deposit ratio was 87% and 78% as of September 30, 2025 and December 31, 2024, respectively. Additional liquidity sources available to us as of September 30, 2025 totaled $9.53 billion and our uninsured, non-collateralized deposit coverage ratio was 2.1x.
Our net loss for the three months ended September 30, 2025 was $562.8 million, or $(4.00) diluted earnings per share, compared to net income of $54.8 million, or $0.43 diluted earnings per share, for the three months ended June 30, 2025. Included in the results were certain items related to our branch right sizing initiative, early retirement program costs, loss on extinguishment of debt (for the three months ended September 30, 2025) and loss on sale of securities (for the three months ended September 30, 2025). Excluding these certain items and the tax effect, adjusted earnings for the three months ended September 30, 2025 were $64.9 million, or $0.46 adjusted diluted earnings per share, compared to $56.1 million, or $0.44 adjusted diluted earnings per share, for the three months ended June 30, 2025.
Our net loss for the nine months ended September 30, 2025 was $475.6 million, or $(3.63) diluted earnings per share, compared to net income of $104.4 million, or $0.83 diluted earnings per share, for the nine months ended September 30, 2024. Included in the results were certain items related to our branch right sizing initiative, early retirement program costs, loss on sale of securities, a FDIC special assessment (for the nine months ended September 30, 2024), termination of vendor and software services (for the nine months ended September 30, 2024) and loss on extinguishment of debt (for the nine months ended September 30, 2025). Excluding these certain items and the tax effect, adjusted earnings for the nine months ended September 30, 2025 were $154.1 million, or $1.18 adjusted diluted earnings per share, compared to $128.3 million, or $1.02 adjusted diluted earnings per share, for the nine months ended September 30, 2024.
During the year, we increased the loss provision on two specific credit relationships that we have been watching for some time due to unfavorable events that occurred for both during the nine months ended September 30, 2025. Otherwise, we believe the asset quality in our portfolio remains sound and reflects our conservative credit culture, as well as our focus on maintaining disciplined pricing and conservative underwriting standards given the current economic environment. Total nonperforming loans as of September 30, 2025, December 31, 2024, and September 30, 2024 were $153.9 million, $110.8 million, and $101.7 million, respectively. Nonperforming assets as a percent of total assets were 0.66% at September 30, 2025, compared to 0.45% at December 31, 2024 and 0.38% at September 30, 2024.
As of September 30, 2025, stockholders' equity was $3.35 billion, book value per share was $23.18 and tangible book value per share was $13.45.
Total loans were $17.19 billion at September 30, 2025, compared to $17.01 billion at December 31, 2024. Our unfunded commitments were $3.95 billion and $3.74 billion as of September 30, 2025 and December 31, 2024, respectively. Our commercial loan pipeline totaled $1.61 billion as of September 30, 2025, compared to $1.26 billion at December 31, 2024.
In our discussion and analysis of our financial condition and results of operation in this Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations," we provide certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States ("US GAAP"). We believe the presentation of non-GAAP financial measures provides a meaningful basis for period-to-period and company-to-company comparisons, which we believe will assist investors and analysts in analyzing the adjusted financial measures of the Company and predicting future performance. See the GAAP Reconciliation of Non-GAAP Financial Measures section below for additional discussion and reconciliations of non-GAAP measures.
Simmons First National Corporation is a Mid-South based financial holding company that, as of September 30, 2025, has approximately $24.2 billion in consolidated assets and, through its subsidiaries, conducts financial operations in Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas.
CRITICAL ACCOUNTING ESTIMATES
Overview
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. While we base estimates on historical experience, current information and other factors deemed to be relevant, actual results could differ from those estimates.
We consider accounting estimates to be critical to reported financial results if (i) the accounting estimate requires management to make assumptions about matters that are highly uncertain and (ii) different estimates that management reasonably could have used for the accounting estimate in the current period, or changes in the accounting estimate that are reasonably likely to occur from period to period, could have a material impact on our financial statements.
The accounting policies that we view as critical to us are those relating to estimates and judgments regarding (a) the determination of the adequacy of the allowance for credit losses, (b) acquisition accounting and valuation of loans, (c) the valuation of goodwill and the useful lives applied to intangible assets, (d) the valuation of stock-based compensation plans and (e) income taxes.
Allowance for Credit Losses
The allowance for credit losses is a reserve established through a provision for credit losses charged to expense, which represents management's best estimate of lifetime expected losses based on reasonable and supportable forecasts, quantitative factors, and other qualitative considerations. The allowance, in the judgment of management, is necessary to reserve for expected credit losses and risks inherent in the loan portfolio. Our allowance for credit loss methodology includes reserve factors calculated to estimate current expected credit losses to amortized cost balances over the remaining contractual life of the portfolio, adjusted for prepayments, in accordance with Accounting Standards Codification ("ASC") Topic 326-20, Financial Instruments - Credit Losses. Accordingly, the methodology is based on our reasonable and supportable economic forecasts, historical loss experience and other qualitative adjustments. For further information see the section Allowance for Credit Lossesbelow.
Our evaluation of the allowance for credit losses is inherently subjective as it requires material estimates. The actual amounts of credit losses realized in the near term could differ from the amounts estimated in arriving at the allowance for credit losses reported in the financial statements.
Acquisition Accounting, Loans
We account for our acquisitions under ASC Topic 805, Business Combinations, which requires the use of the acquisition method of accounting. All identifiable assets acquired, including loans, are recorded at fair value. The fair value for acquired loans at the time of acquisition is based on a variety of factors including discounted expected cash flows, adjusted for estimated prepayments and credit losses. In accordance with ASC 326, the fair value adjustment is recorded as a premium or discount to the unpaid principal balance of each acquired loan. Loans that have been identified as having experienced a more-than-insignificant deterioration in credit quality since origination are purchased credit deteriorated ("PCD") loans.
The net premium or discount on PCD loans is adjusted by our allowance for credit losses recorded at the time of acquisition. The remaining net premium or discount is accreted or amortized into interest income over the remaining life of the loan using a constant yield method. The net premium or discount on loans that are not classified as PCD ("non-PCD"), that includes credit and non-credit components, is accreted or amortized into interest income over the remaining life of the loan using a constant yield method. We then record the necessary allowance for credit losses on the non-PCD loans through provision for credit losses expense.
Goodwill and Intangible Assets
Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Other intangible assets represent purchased assets that also lack physical substance but can be separately distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset or liability. We perform an annual goodwill impairment test, and more than annually if circumstances warrant, in accordance with ASC Topic 350, Intangibles - Goodwill and Other, as amended by ASU 2011-08 - Testing Goodwill for Impairmentand ASU 2017-04 -Intangibles - Goodwill and Other. ASC Topic 350 requires that goodwill and intangible assets that have indefinite lives be reviewed for impairment annually or more frequently if certain conditions occur. Our assessment depends on several assumptions which are dependent on market and economic conditions. Impairment losses on recorded goodwill, if any, will be recorded as operating expenses.
To quantitatively test goodwill for impairment, a present value of discounted cash flows calculation is completed and relies on several assumptions that have a level of subjectivity and judgment. These assumptions are dependent on market and economic conditions. Key inputs to estimate terminal fair value of the Company include projected forecasts, noninterest expense savings and a pricing multiple based on a group of peer banks with similar characteristics. These inputs are discounted by the cost of equity, which includes assumptions involving our beta; equity risk, size and company premiums; and the 20-year treasury rate. Assumptions used in calculating the cost of equity are obtained from market and third-party data. Results are compared to book value; no impairment was indicated as of September 30, 2025. Judgment is inherent in assessing goodwill for impairment. The various assumptions used in assessing goodwill for impairment involve uncertainties that are beyond our control and could cause actual results to differ materially from those projected.
Stock-Based Compensation Plans
We have adopted various stock-based compensation plans. The plans provide for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance stock units and stock awards. Pursuant to the plans, shares are reserved for future issuance by the Company upon exercise of stock options or awarding of restricted stock, restricted stock units or performance stock units granted to directors, officers and other key employees.
In accordance with ASC Topic 718, Compensation - Stock Compensation, the fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model that uses various assumptions. This model requires the input of highly subjective assumptions, changes to which can materially affect the fair value estimate. For additional information, see Note 14, Stock-Based Compensation, in the accompanying Condensed Notes to Consolidated Financial Statements included elsewhere in this report.
Income Taxes
We are subject to the federal income tax laws of the United States, and the tax laws of the states and other jurisdictions where we conduct business. Due to the complexity of these laws, taxpayers and the taxing authorities may subject these laws to different interpretations. Management must make conclusions and estimates about the application of these innately intricate laws, related regulations, and case law. When preparing the Company's income tax returns, management attempts to make reasonable interpretations of the tax laws. Taxing authorities have the ability to challenge management's analysis of the tax law or any reinterpretation management makes in its ongoing assessment of facts and the developing case law. Management assesses the reasonableness of its effective tax rate quarterly based on its current estimate of net income and the applicable taxes expected for the full year. On a quarterly basis, management also reviews circumstances and developments in tax law affecting the reasonableness of deferred tax assets and liabilities and reserves for contingent tax liabilities.
NET INTEREST INCOME
Overview
Net interest income, our 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 nonperforming loans and the amount of noninterest 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 income to a fully taxable equivalent basis consists of dividing tax-exempt income by one minus the combined federal and state income tax rate of 26.135%.
Our practice is to limit exposure to interest rate movements by maintaining a significant portion of earning assets and interest bearing liabilities in short-term repricing. In the last several years, on average, approximately 44% of our loan portfolio and approximately 92% of our time deposits have repriced in one year or less. As of September 30, 2025, our interest rate sensitivity shows that approximately 55% of our loans and 96% of our time deposits will reprice in the next year.
Net Interest Income - Sequential Quarter Analysis
For the three month period ended September 30, 2025, net interest income on a fully taxable equivalent basis was $190.5 million, an increase of $12.2 million, or 6.9%, compared to the three months ended June 30, 2025. The increase in net interest income was the result of a $4.2 million decrease in fully tax equivalent interest income, more than offset by a $16.4 million decrease in interest expense.
Several factors contributed to the decrease in net interest income on a fully taxable equivalent basis over the comparative period. During the third quarter of 2025, we completed a balance sheet repositioning that included the transfer of approximately $3.6 billion investment securities classified as HTM to the AFS investment securities portfolio, with a subsequent sale of approximately $3.2 billion in amortized cost basis of low-yielding AFS securities (including certain of those previously classified as HTM). Proceeds from the sale of the investment securities were primarily used to deleverage the balance sheet through the pay-down of higher rate, non-relationship wholesale and public fund deposits, as well as higher rate other borrowings primarily consisting of FHLB advances. The pay-down of higher rate funding was completed throughout the third quarter of 2025, and thus the benefits (including interest expense savings) are only partially reflected in the results for the quarter.
The decrease in interest income on a fully taxable equivalent basis primarily resulted from a $12.1 million decrease in interest income on investment securities, which reflects a $19.0 million decrease due to the decline in our investment portfolio average balances, which decreased by $2.05 billion or 34.0%. The decrease was partially offset by an increase of $6.9 million in interest income on investment securities due to yield increases over the period of 61 basis points and 26 basis points for our taxable and non-taxable investment security portfolios, respectively. These changes, including a $3.9 million increase in interest income related to interest bearing balances due from banks, were primarily due to the balance sheet repositioning previously discussed. A $3.8 million increase in interest income on loans reflects a decrease attributable to loan volume of $1.1 million, more than offset by a $4.9 million increase in interest income related to loan yield. The loan yield for the third quarter of 2025 was 6.31% compared to 6.26% from the preceding sequential quarter, representing a 5 basis point increase, driven by disciplined pricing of new originations, as well as positive fixed-rate loan repricing.
The $16.4 million decrease in interest expense is primarily due to an $8.2 million decrease in interest expense on time deposits and a $7.7 million decrease in interest expense related to other borrowings during the quarter. Of the $8.2 million decrease in interest expense on time deposits, $1.4 million was due to the 14 basis point decrease in average rates on time deposits and $6.8 million was due to the decrease in time deposit volume over the period. These changes were primarily due to a reduction of higher rate, non-relationship wholesale and public fund deposits, as well as higher rate other borrowings, as part of the balance sheet repositioning.
Net Interest Income - Year-over-Year Analysis
Net interest income on a fully taxable equivalent basis for the nine month period ended September 30, 2025 increased $55.6 million, or 11.5%, over the same period in 2024. The increase in net interest income on a fully taxable equivalent basis was the result of a $52.5 million decrease in fully tax equivalent interest income, more than offset by a $108.2 million decrease in interest expense.
The decrease in interest income during the nine month period ended September 30, 2025 primarily resulted from decreases in interest income on loans and investments. The decrease in interest income on loans was largely attributable to a 10 basis point decline in loan yield that resulted in a decrease of $13.8 million, while the incremental decrease in loan volume over the comparative periods led to a decrease of $4.2 million. The decrease of $37.4 million in interest income on investment securities is primarily related to a $33.6 million decrease in interest income on investment securities due to the decline in our investment portfolio average balances, which decreased by $1.24 billion or 18.6%, primarily related to the balance sheet repositioning previously discussed, coupled with pay downs, maturities and a strategic sale of $251.5 million of lower-yielding AFS securities to pay off higher rate wholesale fundings consisting of Federal Home Loan Bank ("FHLB") advances during the third quarter of 2024. A yield decrease in the taxable investment portfolio over the period of 18 basis points led to a decrease of $5.5 million in interest income on taxable investment securities.
The $108.2 million decrease in interest expense is mainly due to the decrease in our deposit account rates over the period. Interest expense decreased $64.1 million due to the decrease in rate of 55 basis points on interest-bearing deposit accounts. A $23.3 million decrease in interest income was related to the decrease in time deposit volume over the period. Further, a decrease of $22.5 million in interest expense was related to reductions in the amounts outstanding under and rates on wholesale borrowings sources over the comparative period. The decline in wholesale borrowings volume, including brokered time deposits, is largely due to the balance sheet repositioning. We continually monitor and look for opportunities to fairly reprice our deposits while remaining competitive in this current challenging rate environment.
Net Interest Margin
Our net interest margin on a fully tax equivalent basis was 3.50% and 3.17% for the three and nine month periods ended September 30, 2025, as compared to 3.06% and 2.70% for the three months ended June 30, 2025 and the nine months ended September 30, 2024, respectively. Net interest margin experienced a 44 basis point increase for the three months ended September 30, 2025 compared to the preceding sequential quarter, while net interest margin increased 47 basis points during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase on a linked quarter basis was primarily due to the balance sheet repositioning during the period. The increase when compared to the same period in the prior year was driven by the balance sheet repositioning, as well as reduced deposit costs and use of wholesale funding over the comparative periods.
Net Interest Income Tables
Tables 1 and 2 reflect an analysis of net interest income on a fully taxable equivalent basis for the three months ended September 30, 2025 and June 30, 2025 and the nine months ended September 30, 2025 and 2024, respectively.
Table 1: Analysis of Net Interest Margin
(FTE = Fully Taxable Equivalent using an effective tax rate of 26.135%)
|
|
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||||||||
| (In thousands) | 2025 | 2025 | 2025 | 2024 | |||||||||||||||||||
| Interest income | $ | 313,423 | $ | 315,023 | $ | 936,283 | $ | 986,083 | |||||||||||||||
| FTE adjustment | 3,811 | 6,422 | 16,647 | 19,396 | |||||||||||||||||||
| Interest income - FTE | 317,234 | 321,445 | 952,930 | 1,005,479 | |||||||||||||||||||
| Interest expense | 126,762 | 143,199 | 414,376 | 522,560 | |||||||||||||||||||
| Net interest income - FTE | $ | 190,472 | $ | 178,246 | $ | 538,554 | $ | 482,919 | |||||||||||||||
| Yield on earning assets - FTE | 5.84 | % | 5.53 | % | 5.61 | % | 5.62 | % | |||||||||||||||
| Cost of interest bearing liabilities | 2.98 | % | 3.12 | % | 3.10 | % | 3.69 | % | |||||||||||||||
| Net interest spread - FTE | 2.86 | % | 2.41 | % | 2.51 | % | 1.93 | % | |||||||||||||||
| Net interest margin - FTE | 3.50 | % | 3.06 | % | 3.17 | % | 2.70 | % | |||||||||||||||
Table 2: Changes in Fully Taxable Equivalent Net Interest Margin
| Three Months Ended | Nine Months Ended | ||||||||||
| (In thousands) | September 30, 2025 compared to June 30, 2025 | September 30, 2025 compared to September 30, 2024 | |||||||||
| Decrease due to change in earning assets | $ | (16,041) | $ | (32,868) | |||||||
| Increase (decrease) due to change in earning asset yields | 11,830 | (19,681) | |||||||||
| Increase due to change in interest bearing liabilities | 14,802 | 34,538 | |||||||||
| Increase due to change in interest rates paid on interest bearing liabilities | 1,635 | 73,646 | |||||||||
| Increase in net interest income | $ | 12,226 | $ | 55,635 | |||||||
Table 3 shows, for each major category of earning assets and interest bearing liabilities, the average (computed on a daily basis) amount outstanding, the interest earned or expensed on such amount and the average rate earned or expensed for the three months ended September 30, 2025 and June 30, 2025 and the nine months ended September 30, 2025 and 2024, respectively. 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. Nonaccrual loans were included in average loans for the purpose of calculating the rate earned on total loans.
Table 3: Average Balance Sheets and Net Interest Income Analysis
(FTE = Fully Taxable Equivalent using an effective tax rate of 26.135%)
| Three Months Ended | |||||||||||||||||||||||||||||||||||
| September 30, 2025 | June 30, 2025 | ||||||||||||||||||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||||||||||||||
| (In thousands) | Balance | Expense | Rate (%) | Balance | Expense | Rate (%) | |||||||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||||||||||
| Earning assets: | |||||||||||||||||||||||||||||||||||
| Interest bearing balances due from banks and federal funds sold | $ | 566,344 | $ | 6,421 | 4.50 | $ | 219,928 | $ | 2,531 | 4.62 | |||||||||||||||||||||||||
| Investment securities - taxable | 2,751,493 | 29,183 | 4.21 | 3,483,805 | 31,233 | 3.60 | |||||||||||||||||||||||||||||
| Investment securities - non-taxable | 1,242,936 | 11,210 | 3.58 | 2,564,037 | 21,210 | 3.32 | |||||||||||||||||||||||||||||
| Mortgage loans held for sale | 13,776 | 229 | 6.60 | 13,063 | 221 | 6.79 | |||||||||||||||||||||||||||||
| Assets held in trading accounts | 11,305 | 99 | 3.47 | - | - | - | |||||||||||||||||||||||||||||
| Loans - including fees | 16,976,231 | 270,092 | 6.31 | 17,046,802 | 266,250 | 6.26 | |||||||||||||||||||||||||||||
| Total interest earning assets | 21,562,085 | 317,234 | 5.84 | 23,327,635 | 321,445 | 5.53 | |||||||||||||||||||||||||||||
| Non-earning assets | 3,352,837 | 3,317,496 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 24,914,922 | $ | 26,645,131 | |||||||||||||||||||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||||||||
| Interest bearing liabilities: | |||||||||||||||||||||||||||||||||||
| Interest bearing transaction and savings deposits | $ | 11,043,132 | $ | 67,546 | 2.43 | $ | 11,220,060 | $ | 69,108 | 2.47 | |||||||||||||||||||||||||
| Time deposits | 5,116,070 | 49,064 | 3.80 | 5,820,499 | 57,231 | 3.94 | |||||||||||||||||||||||||||||
| Total interest bearing deposits | 16,159,202 | 116,610 | 2.86 | 17,040,559 | 126,339 | 2.97 | |||||||||||||||||||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 23,306 | 72 | 1.23 | 32,565 | 59 | 0.73 | |||||||||||||||||||||||||||||
| Other borrowings | 268,278 | 2,957 | 4.37 | 960,817 | 10,613 | 4.43 | |||||||||||||||||||||||||||||
| Subordinated debt and debentures | 407,922 | 7,123 | 6.93 | 366,350 | 6,188 | 6.77 | |||||||||||||||||||||||||||||
| Total interest bearing liabilities | 16,858,708 | 126,762 | 2.98 | 18,400,291 | 143,199 | 3.12 | |||||||||||||||||||||||||||||
| Noninterest bearing liabilities: | |||||||||||||||||||||||||||||||||||
| Noninterest bearing deposits | 4,369,941 | 4,390,454 | |||||||||||||||||||||||||||||||||
| Other liabilities | 317,965 | 308,223 | |||||||||||||||||||||||||||||||||
| Total liabilities | 21,546,614 | 23,098,968 | |||||||||||||||||||||||||||||||||
| Stockholders' equity | 3,368,308 | 3,546,163 | |||||||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 24,914,922 | $ | 26,645,131 | |||||||||||||||||||||||||||||||
| Net interest spread - FTE | 2.86 | 2.41 | |||||||||||||||||||||||||||||||||
| Net interest margin - FTE | $ | 190,472 | 3.50 | $ | 178,246 | 3.06 | |||||||||||||||||||||||||||||
| Nine Months Ended | |||||||||||||||||||||||||||||||||||
| September 30, 2025 | September 30, 2024 | ||||||||||||||||||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||||||||||||||
| (In thousands) | Balance | Expense | Rate (%) | Balance | Expense | Rate (%) | |||||||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||||||||||
| Earning assets: | |||||||||||||||||||||||||||||||||||
| Interest bearing balances due from banks and federal funds sold | $ | 343,623 | $ | 11,655 | 4.53 | $ | 210,114 | $ | 8,895 | 5.65 | |||||||||||||||||||||||||
| Investment securities - taxable | 3,255,730 | 92,000 | 3.78 | 4,007,636 | 118,954 | 3.96 | |||||||||||||||||||||||||||||
| Investment securities - non-taxable | 2,133,348 | 53,637 | 3.36 | 2,616,638 | 64,048 | 3.27 | |||||||||||||||||||||||||||||
| Mortgage loans held for sale | 11,681 | 572 | 6.55 | 10,607 | 551 | 6.94 | |||||||||||||||||||||||||||||
| Assets held in trading accounts | 3,809 | 99 | 3.47 | - | - | - | |||||||||||||||||||||||||||||
| Loans - including fees | 16,981,233 | 794,967 | 6.26 | 17,070,656 | 813,031 | 6.36 | |||||||||||||||||||||||||||||
| Total interest earning assets | 22,729,424 | 952,930 | 5.61 | 23,915,651 | 1,005,479 | 5.62 | |||||||||||||||||||||||||||||
| Non-earning assets | 3,343,676 | 3,344,561 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 26,073,100 | $ | 27,260,212 | |||||||||||||||||||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||||||||
| Interest bearing liabilities: | |||||||||||||||||||||||||||||||||||
| Interest bearing transaction and savings deposits | $ | 11,146,423 | $ | 204,549 | 2.45 | $ | 10,976,906 | $ | 236,086 | 2.87 | |||||||||||||||||||||||||
| Time deposits | 5,695,173 | 168,854 | 3.96 | 6,416,801 | 221,124 | 4.60 | |||||||||||||||||||||||||||||
| Total interest bearing deposits | 16,841,596 | 373,403 | 2.96 | 17,393,707 | 457,210 | 3.51 | |||||||||||||||||||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 31,829 | 244 | 1.02 | 52,181 | 483 | 1.24 | |||||||||||||||||||||||||||||
| Other borrowings | 643,561 | 21,284 | 4.42 | 1,079,781 | 43,741 | 5.41 | |||||||||||||||||||||||||||||
| Subordinated debt and debentures | 380,347 | 19,445 | 6.84 | 366,199 | 21,126 | 7.71 | |||||||||||||||||||||||||||||
| Total interest bearing liabilities | 17,897,333 | 414,376 | 3.10 | 18,891,868 | 522,560 | 3.69 | |||||||||||||||||||||||||||||
| Noninterest bearing liabilities: | |||||||||||||||||||||||||||||||||||
| Noninterest bearing deposits | 4,367,882 | 4,604,445 | |||||||||||||||||||||||||||||||||
| Other liabilities | 315,624 | 295,991 | |||||||||||||||||||||||||||||||||
| Total liabilities | 22,580,839 | 23,792,304 | |||||||||||||||||||||||||||||||||
| Stockholders' equity | 3,492,261 | 3,467,908 | |||||||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 26,073,100 | $ | 27,260,212 | |||||||||||||||||||||||||||||||
| Net interest spread - FTE | 2.51 | 1.93 | |||||||||||||||||||||||||||||||||
| Net interest margin - FTE | $ | 538,554 | 3.17 | $ | 482,919 | 2.70 | |||||||||||||||||||||||||||||
Table 4 shows changes in interest income and interest expense resulting from changes in both volume and interest rates for the three months ended September 30, 2025 as compared to the three months ended June 30, 2025 and the nine months ended September 30, 2025 and 2024, respectively. 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
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
| September 30, 2025 compared to June 30, 2025 | September 30, 2025 compared to September 30, 2024 | ||||||||||||||||||||||||||||||||||
| (In thousands, on a fully taxable equivalent basis) | Volume |
Yield/ Rate |
Total | Volume |
Yield/ Rate |
Total | |||||||||||||||||||||||||||||
| Increase (decrease) in: | |||||||||||||||||||||||||||||||||||
| Interest income: | |||||||||||||||||||||||||||||||||||
| Interest bearing balances due from banks and federal funds sold | $ | 3,929 | $ | (39) | $ | 3,890 | $ | 4,796 | $ | (2,036) | $ | 2,760 | |||||||||||||||||||||||
| Investment securities - taxable | (7,207) | 5,157 | (2,050) | (21,465) | (5,489) | (26,954) | |||||||||||||||||||||||||||||
| Investment securities - non-taxable | (11,768) | 1,768 | (10,000) | (12,110) | 1,699 | (10,411) | |||||||||||||||||||||||||||||
| Mortgage loans held for sale | 12 | (4) | 8 | 54 | (33) | 21 | |||||||||||||||||||||||||||||
| Assets held in trading accounts | 99 | - | 99 | 99 | - | 99 | |||||||||||||||||||||||||||||
| Loans - including fees | (1,106) | 4,948 | 3,842 | (4,242) | (13,822) | (18,064) | |||||||||||||||||||||||||||||
| Total | (16,041) | 11,830 | (4,211) | (32,868) | (19,681) | (52,549) | |||||||||||||||||||||||||||||
| Interest expense: | |||||||||||||||||||||||||||||||||||
| Interest bearing transaction and savings accounts | (1,084) | (478) | (1,562) | 3,595 | (35,132) | (31,537) | |||||||||||||||||||||||||||||
| Time deposits | (6,784) | (1,383) | (8,167) | (23,318) | (28,952) | (52,270) | |||||||||||||||||||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | (20) | 33 | 13 | (166) | (73) | (239) | |||||||||||||||||||||||||||||
| Other borrowings | (7,634) | (22) | (7,656) | (15,441) | (7,016) | (22,457) | |||||||||||||||||||||||||||||
| Subordinated notes and debentures | 720 | 215 | 935 | 792 | (2,473) | (1,681) | |||||||||||||||||||||||||||||
| Total | (14,802) | (1,635) | (16,437) | (34,538) | (73,646) | (108,184) | |||||||||||||||||||||||||||||
| Increase (decrease) in net interest income | $ | (1,239) | $ | 13,465 | $ | 12,226 | $ | 1,670 | $ | 53,965 | $ | 55,635 | |||||||||||||||||||||||
PROVISION FOR CREDIT LOSSES
The provision for credit 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 credit losses at a level considered appropriate in relation to the estimated lifetime risk inherent in the loan portfolio. The level of provision to the allowance is based on management's judgment, with consideration given to the composition, maturity and other qualitative characteristics of the portfolio, assessment of current economic conditions, reasonable and supportable forecasts, past due and nonperforming loans and historical net credit loss experience. It is management's practice to review the allowance on a monthly basis and, after considering the factors previously noted, to determine the level of provision made to the allowance.
The provision for credit losses for the three months ended September 30, 2025 was $12.0 million as compared to $11.9 million for the three months ended June 30, 2025. Provision expense for both periods was related to loans and reflected loan growth in the quarters, as well as the impact of updated economic assumptions. Provision expense for the three months ended September 30, 2025 also included a recapture of $3.2 million of provision related to HTM investment securities connected to the balance sheet repositioning during the period.
For the nine months ended September 30, 2025, our provision for credit losses was $50.7 million as compared to $33.5 million for the same period ended September 30, 2024. The provision expense for the nine months ended September 30, 2025 reflected a provision expense of $15.6 million related to two specific credit relationships which migrated to nonperforming during the period, while provision expense for both periods reflected loan growth in the periods, as well as the impact of updated economic assumptions.
NONINTEREST INCOME (LOSS)
Noninterest income is principally derived from recurring fee income, which includes service charges, wealth management fees and debit and credit card fees. Noninterest income also includes income on the sale of mortgage loans, income from the increase in cash surrender values of bank owned life insurance and gains (losses) from sales of securities.
For the three month period ended September 30, 2025, we generated a noninterest loss of $756.2 million, a decrease of approximately $798.5 million, compared to noninterest income for the three month period ended June 30, 2025. The decrease for the three month period ended September 30, 2025 as compared to the preceding sequential quarter is primarily related to a pre-tax loss on the sale of securities of $801.5 million. During the period, we sold approximately $3.2 billion in amortized cost basis of low yielding investment securities, as part of a balance sheet repositioning to deleverage the balance sheet through the pay-down of higher rate, non-relationship wholesale and public fund deposits, as well as higher rate other borrowings primarily consisting of FHLB advances. During the three month period ended September 30, 2025, we also recognized a $570,000 loss on early extinguishment of debt. Adjusting for these certain items, adjusted noninterest income for the three month period ended September 30, 2025 increased $3.5 million, or 8.3%, from the prior sequential quarter. The increase in adjusted noninterest income on a sequential quarter basis was primarily due to a $1.4 million Small Business Investment Company ("SBIC") negative valuation adjustment recorded during the prior sequential quarter, which is included in "Other income" in the table below.
Noninterest income (loss) for the nine months ended September 30, 2025 decreased by approximately $771.3 million as compared to the nine months ended September 30, 2024. The decrease, as compared to the same period in 2024, was primarily due to losses on sale of securities of $801.5 million discussed above and $28.4 million, recognized during each respective period. Adjusting for these certain items, adjusted noninterest income for the nine month period ended September 30, 2025 increased $2.4 million, or 1.8%, from the prior comparative period.
Table 5 shows noninterest income for the three month periods ended September 30, 2025 and June 30, 2025 and the nine months ended September 30, 2025 and 2024, respectively, as well as changes between periods.
Table 5: Noninterest Income (Loss)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
| September 30, | June 30, | Change | September 30, | September 30, | Change | ||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | 2025 | 2025 | $ | % | 2025 | 2024 | $ | % | |||||||||||||||||||||||||||||||||||||||
| Service charges on deposit accounts | $ | 13,045 | $ | 12,588 | $ | 457 | 3.6% | $ | 38,268 | $ | 36,920 | $ | 1,348 | 3.7% | |||||||||||||||||||||||||||||||||
| Debit and credit card fees | 8,478 | 8,567 | (89) | (1.0) | 25,491 | 24,552 | 939 | 3.8 | |||||||||||||||||||||||||||||||||||||||
| Wealth management fees | 9,965 | 9,464 | 501 | 5.3 | 29,058 | 26,683 | 2,375 | 8.9 | |||||||||||||||||||||||||||||||||||||||
| Mortgage lending income | 2,259 | 1,687 | 572 | 33.9 | 5,959 | 6,249 | (290) | (4.6) | |||||||||||||||||||||||||||||||||||||||
| Bank owned life insurance income | 3,943 | 3,890 | 53 | 1.4 | 11,925 | 11,447 | 478 | 4.2 | |||||||||||||||||||||||||||||||||||||||
| Other service charges and fees | 1,474 | 1,321 | 153 | 11.6 | 4,128 | 4,227 | (99) | (2.3) | |||||||||||||||||||||||||||||||||||||||
| Loss on sale of securities, net | (801,492) | - | (801,492) | * | (801,492) | (28,393) | (773,099) | * | |||||||||||||||||||||||||||||||||||||||
| Other income | 6,141 | 4,837 | 1,304 | 27.0 | 18,985 | 21,928 | (2,943) | (13.4) | |||||||||||||||||||||||||||||||||||||||
| Total noninterest income (loss) | $ | (756,187) | $ | 42,354 | $ | (798,541) | * | $ | (667,678) | $ | 103,613 | $ | (771,291) | * | |||||||||||||||||||||||||||||||||
_________________________
*Not meaningful
Recurring fee income (total service charges, wealth management fees, debit and credit card fees) was $33.0 million and $31.9 million for the three month periods ended September 30, 2025 and June 30, 2025, respectively, and was $96.9 million and $92.4 million for the nine month periods ended September 30, 2025 and 2024, respectively. The increase over both comparative periods is primarily related to the increases in wealth management fees due to fee growth and market performance and in service charges on deposit accounts due to growth in consumer accounts and performance related to commercial treasury management.
NONINTEREST EXPENSE
Noninterest expense consists of salaries and employee benefits, occupancy, equipment, foreclosure losses and other expenses necessary for our operations. Management remains committed to controlling the level of noninterest expense through the continued use of expense control measures. We utilize an extensive profit planning and reporting system involving all subsidiaries. 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 monthly. Variances from the plan are reviewed monthly and, when required, management takes corrective action intended to ensure financial goals are met. We also regularly monitor staffing levels at each subsidiary to ensure productivity and overhead are in line with existing workload requirements.
Noninterest expense was $142.0 million for the three month period ended September 30, 2025, as compared to noninterest expense of $138.6 million for the three month period ended June 30, 2025, representing an increase of $3.4 million, or 2.5%, as compared to the preceding quarter. Adjusted noninterest expense, which excludes branch right sizing and early retirement program costs, for the three months ended September 30, 2025 was $139.7 million, an increase of $2.9 million as compared to the three months ended June 30, 2025.
Noninterest expense for the nine months ended September 30, 2025 increased by approximately $8.8 million or 2.1% as compared to the nine months ended September 30, 2024. Adjusted noninterest expense, which excludes branch right sizing, early retirement program costs, FDIC special assessment (for the nine months ended September 30, 2024) and termination of vendor and software services (for the nine months ended September 30, 2024), increased $7.7 million, or 1.9%, as compared to the nine months ended September 30, 2024.
Salaries and employee benefits expense increased $2.4 million during the three month period ended September 30, 2025 as compared to the preceding sequential quarter and increased $12.4 million during the nine month period ended September 30, 2025 when compared to the same period in the prior year. The increase as compared to the preceding sequential quarter is primarily due to salary and employee benefits accrual adjustments given the Company's financial performance through the third quarter of 2025. The increase as compared to the same period in the prior year is primarily due to employee merit increases over the comparative periods, coupled with the previously mentioned performance accrual adjustments.
Deposit insurance expense for the three and nine months ended September 30, 2025 as compared to the three months ended June 30, 2025 and nine months ended September 30, 2024 increased by $258,000 and decreased by $2.9 million, respectively. While the variance in deposit insurance expense on a sequential quarter basis is relatively flat, the decrease on a year over year basis for the nine months ended September 30, 2025 is significantly attributable to the additional FDIC special assessments totaling $1.8 million during the nine months ended September 30, 2024, which were levied to support the Deposit Insurance Fund following the failure of certain banks in 2023.
Table 6 below shows noninterest expense for the three month periods ended September 30, 2025 and June 30, 2025 and the nine months ended September 30, 2025 and 2024, respectively, as well as changes between periods.
Table 6: Noninterest Expense
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
| September 30, | June 30, | Change | September 30, | September 30, | Change | ||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | 2025 | 2025 | $ | % | 2025 | 2024 | $ | % | |||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits | $ | 76,249 | $ | 73,862 | $ | 2,387 | 3.2% | $ | 224,935 | $ | 212,536 | $ | 12,399 | 5.8% | |||||||||||||||||||||||||||||||||
| Occupancy expense, net | 12,106 | 11,844 | 262 | 2.2 | 36,601 | 36,338 | 263 | 0.7 | |||||||||||||||||||||||||||||||||||||||
| Furniture and equipment expense | 5,275 | 5,474 | (199) | (3.6) | 16,214 | 16,376 | (162) | (1.0) | |||||||||||||||||||||||||||||||||||||||
| Other real estate and foreclosure expense | 200 | 216 | (16) | (7.4) | 614 | 383 | 231 | 60.3 | |||||||||||||||||||||||||||||||||||||||
| Deposit insurance | 5,175 | 4,917 | 258 | 5.2 | 15,483 | 18,388 | (2,905) | (15.8) | |||||||||||||||||||||||||||||||||||||||
| Other operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
| Professional services | 4,809 | 6,192 | (1,383) | (22.3) | 15,868 | 15,950 | (82) | (0.5) | |||||||||||||||||||||||||||||||||||||||
| Postage | 2,332 | 2,250 | 82 | 3.6 | 6,862 | 6,507 | 355 | 5.5 | |||||||||||||||||||||||||||||||||||||||
| Telephone | 1,522 | 1,594 | (72) | (4.5) | 4,595 | 4,860 | (265) | (5.5) | |||||||||||||||||||||||||||||||||||||||
| Debit and credit card | 3,217 | 3,191 | 26 | 0.8 | 9,437 | 9,744 | (307) | (3.2) | |||||||||||||||||||||||||||||||||||||||
| Marketing | 6,886 | 6,612 | 274 | 4.1 | 20,324 | 20,066 | 258 | 1.3 | |||||||||||||||||||||||||||||||||||||||
| Software and technology | 10,186 | 10,485 | (299) | (2.9) | 30,707 | 32,585 | (1,878) | (5.8) | |||||||||||||||||||||||||||||||||||||||
| Operating supplies | 772 | 487 | 285 | 58.5 | 1,886 | 1,808 | 78 | 4.3 | |||||||||||||||||||||||||||||||||||||||
| Amortization of intangibles | 3,097 | 3,098 | (1) | - | 9,722 | 11,553 | (1,831) | (15.8) | |||||||||||||||||||||||||||||||||||||||
| Branch right sizing | 2,004 | 163 | 1,841 | * | 3,161 | 1,165 | 1,996 | 171.3 | |||||||||||||||||||||||||||||||||||||||
| Other | 8,202 | 8,204 | (2) | - | 28,792 | 28,167 | 625 | 2.2 | |||||||||||||||||||||||||||||||||||||||
| Total noninterest expense | $ | 142,032 | $ | 138,589 | $ | 3,443 | 2.5% | $ | 425,201 | $ | 416,426 | $ | 8,775 | 2.1% | |||||||||||||||||||||||||||||||||
_________________________
*Not meaningful
INVESTMENTS AND SECURITIES
Our securities portfolio is the second largest component of earning assets and provides a significant source of revenue. Securities within the portfolio are classified as held-to-maturity ("HTM"), AFS or trading. Our philosophy regarding investments is conservative based on investment type and maturity. Investments in the portfolio primarily include U.S. Treasury securities, U.S. Government agencies, MBS and municipal securities. Our general policy is not to invest in derivative type investments or high-risk securities, except for collateralized MBS for which collection of principal and interest is not subordinated to significant superior rights held by others.
As of September 30, 2025, AFS investment securities and assets held in trading accounts were $3.32 billion and $12.7 million, respectively. As of December 31, 2024, AFS and HTM investment securities were $2.53 billion and $3.64 billion, respectively. We continue to look for opportunities to maximize the value of the investment portfolio.
During the third quarter of 2025, the Company and its subsidiaries initiated and completed steps taken to reposition the Company's consolidated balance sheet and reclassified approximately $3.6 billion in HTM investment securities to AFS investment securities. Subsequently, the Company sold approximately $3.2 billion in amortized cost basis of AFS securities (including certain of those previously classified as HTM). The sale of investment securities resulted in a realized, after-tax loss of $625.6 million (based on actual tax rate of 21.946%). The AFS securities sold were low-yield bonds and, by removing these bonds from our balance sheet, we reduced our level of high-cost wholesale funding and increased our ability to generate higher earnings and growth.
During the quarters ended June 30, 2022 and September 30, 2021, the Company transferred, at fair value, $1.99 billion and $500.8 million, respectively, of securities from the AFS portfolio to the HTM portfolio. No gains or losses on these securities were recognized at the time of transfer. During the balance sheet repositioning that occurred during the third quarter of 2025, these securities were transferred out of the HTM portfolio to the AFS portfolio at fair value. The previous related remaining combined net unrealized losses in accumulated other comprehensive income (loss), which losses were $99.4 million, were either recognized as part of the securities transfer and subsequent sale of certain securities or will be amortized into income over the remaining life of the security.
As of September 30, 2025, we had the ability to hold the securities classified as AFS for a period of time sufficient for a recovery of amortized cost and we believed the accounting standard of "more likely than not" has not been met regarding whether we would be required to sell any of the AFS securities before recovery of amortized cost. As of September 30, 2025, the unrealized losses were largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the bonds approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, as of September 30, 2025, we believed the declines in fair value are temporary and we did not believe any of the securities are impaired due to reasons of credit quality. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. We expect the cash flows from principal maturities of securities to provide flexibility to fund future loan growth or reduce wholesale funding.
Table 7: Maturity Distribution of Investment Securities
Table 7 reflects the amortized cost and estimated fair value of securities at September 30, 2025, by contractual maturity and the weighted average yields (for tax-exempt obligations on a fully taxable equivalent basis, assuming a 26.135% tax rate) of such securities and is presented due to the reclassification and sale of certain securities during the quarter. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations, with or without call or prepayment penalties.
| September 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Over | Over | ||||||||||||||||||||||||||||||||||||||||||||||
| 1 year | 5 years | Total | |||||||||||||||||||||||||||||||||||||||||||||
| 1 year | through | through | Over | No fixed | Amortized | Par | Fair | ||||||||||||||||||||||||||||||||||||||||
| (In thousands) | or less | 5 years | 10 years | 10 years | maturity | Cost | Value | Value | |||||||||||||||||||||||||||||||||||||||
| Available-for-Sale | |||||||||||||||||||||||||||||||||||||||||||||||
| U.S. Government agencies | $ | 50 | $ | 28,118 | $ | 2,859 | $ | 18,025 | $ | - | $ | 49,052 | $ | 48,354 | $ | 48,355 | |||||||||||||||||||||||||||||||
| Mortgage-backed securities | - | - | - | - | 2,446,711 | 2,446,711 | 2,422,050 | 2,249,593 | |||||||||||||||||||||||||||||||||||||||
| State and political subdivisions | 4,835 | 12,746 | 22,603 | 1,005,507 | - | 1,045,691 | 1,074,697 | 845,371 | |||||||||||||||||||||||||||||||||||||||
| Other securities | 6,004 | 63,761 | 112,547 | - | 208 | 182,520 | 182,515 | 175,958 | |||||||||||||||||||||||||||||||||||||||
| Total | $ | 10,889 | $ | 104,625 | $ | 138,009 | $ | 1,023,532 | $ | 2,446,919 | $ | 3,723,974 | $ | 3,727,616 | $ | 3,319,277 | |||||||||||||||||||||||||||||||
| Percentage of total | 0.3 | % | 2.8 | % | 3.7 | % | 27.5 | % | 65.7 | % | 100.0 | % | |||||||||||||||||||||||||||||||||||
| Weighted average yield | 1.6 | % | 5.1 | % | 3.7 | % | 2.8 | % | 3.1 | % | 3.1 | % | |||||||||||||||||||||||||||||||||||
During the third quarter of 2021, we began utilizing interest rate swaps designated as fair value hedges to mitigate the effect of changing interest rates on the fair values of $1.00 billion of fixed rate callable municipal securities held in the AFS portfolio. These swap agreements consist of a two year forward start date and involve the payment of fixed interest rates with a weighted average rate of 1.21% in exchange for variable interest rates based on federal funds rates, which became effective during late third quarter of 2023. Securities within these swap agreements have maturity dates varying between 2028 and 2029. For the nine months ended September 30, 2025, the net amount included in interest income on investment securities in the consolidated statements of income related to these swap agreements was $24.2 million.
LOAN PORTFOLIO
Our loan portfolio averaged $16.98 billion and $17.07 billion during the first nine months of 2025 and 2024, respectively. As of September 30, 2025, total loans were $17.19 billion, an increase of $182.9 million from December 31, 2024. The increase in the loan balance during the first nine months of 2025 when compared to December 31, 2024 is primarily due to growth in the real estate - construction and development, agricultural and mortgage warehouse portfolios over the comparative period, while we continued to focus on maintaining prudent underwriting standards and pricing discipline. The most significant components of the loan portfolio were loans to businesses (commercial loans, commercial real estate loans and agricultural loans) and individuals (consumer loans, credit card loans and single-family residential real estate loans).
We seek to manage our credit risk by diversifying our loan portfolio, determining that borrowers have adequate sources of cash flow for loan repayment without liquidation of collateral, obtaining and monitoring collateral, providing an appropriate allowance for credit losses and regularly reviewing loans through the internal loan review process. The loan portfolio is diversified by borrower, purpose, industry and geographic region. We seek 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. We use the allowance for credit 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.
The balances of loans outstanding at the indicated dates are reflected in Table 8, according to type of loan.
Table 8: Loan Portfolio
| September 30, | December 31, | ||||||||||
| (In thousands) | 2025 | 2024 | |||||||||
| Consumer: | |||||||||||
| Credit cards | $ | 173,020 | $ | 181,675 | |||||||
| Other consumer | 112,335 | 127,319 | |||||||||
| Total consumer | 285,355 | 308,994 | |||||||||
| Real estate: | |||||||||||
| Construction and development | 2,874,823 | 2,789,249 | |||||||||
| Single family residential | 2,617,849 | 2,689,946 | |||||||||
| Other commercial | 7,875,649 | 7,912,336 | |||||||||
| Total real estate | 13,368,321 | 13,391,531 | |||||||||
| Commercial: | |||||||||||
| Commercial | 2,397,388 | 2,434,175 | |||||||||
| Agricultural | 353,181 | 261,154 | |||||||||
| Total commercial | 2,750,569 | 2,695,329 | |||||||||
| Other | 784,572 | 610,083 | |||||||||
| Total loans before allowance for credit losses | $ | 17,188,817 | $ | 17,005,937 | |||||||
Consumer loans consist of credit card loans and other consumer loans. Consumer loans were $285.4 million at September 30, 2025, or 1.7% of total loans, compared to $309.0 million, or 1.8% of total loans at December 31, 2024. The decrease in consumer loans from December 31, 2024, to September 30, 2025, was primarily due to loan payoffs and pay downs within both the credit card and other consumer portfolios during the period.
Real estate loans consist of construction and development loans ("C&D") loans, single-family residential loans and commercial real estate ("CRE") loans. Real estate loans were $13.37 billion at September 30, 2025, or 77.8% of total loans, compared to $13.39 billion, or 78.7%, of total loans at December 31, 2024, a decrease of $23.2 million, or 0.2%. Our C&D loans increased by $85.6 million, or 3.1%, while single family residential loans decreased by $72.1 million, or 2.7%, and CRE loans decreased by $36.7 million, or 0.5%. The changes among our real estate portfolio reflected our focus on maintaining conservative underwriting standards and structure guidelines while emphasizing prudent pricing discipline during the first nine months of 2025. We expect to continue to manage our C&D and CRE portfolio concentration by developing deeper relationships with our customers.
Commercial loans consist of non-real estate loans related to business and agricultural loans. Total commercial loans were $2.75 billion at September 30, 2025, or 16.0% of total loans, compared to $2.70 billion, or 15.8% of total loans at December 31, 2024, an increase of $55.2 million, or 2.0%. The increase in commercial loans was largely related to the increase in agricultural loans of $92.0 million, or 35.2%, primarily due to seasonality of the portfolio, which normally peaks in the third quarter.
Other loans mainly consist of mortgage warehouse lending and municipal loans. Mortgage volume experienced an increase in demand during the first nine months of 2025 as compared to December 31, 2024, leading to an increase of $174.5 million in other loans.
Our commercial loan pipeline consisting of all commercial loan opportunities was $1.61 billion at September 30, 2025 compared to $1.26 billion at December 31, 2024. Commercial loans approved and ready to close at the end of the quarter totaled $489.9 million.
Our commercial loan pipeline consisting of all commercial loan opportunities was $2.21 billion at October 31, 2025, while commercial loans approved and ready to close at the end of October 2025 totaled $785.7 million with a weighted average rate (not including fees) of 7.00%.
ASSET QUALITY
Nonperforming 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. Simmons Bank recognizes income principally on the accrual basis of accounting. When loans are classified as nonaccrual, generally, 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 credit losses.
When credit card loans reach 90 days past due and there are attachable assets, the accounts are considered for litigation. Credit card loans are generally charged off when payment of interest or principal exceeds 150 days past due. The credit card recovery group pursues account holders until it is determined, on a case-by-case basis, to be uncollectible.
Total nonperforming assets increased $39.5 million from December 31, 2024 to September 30, 2025. Nonaccrual loans increased by $43.4 million from December 31, 2024 and foreclosed assets held for sale and other real estate owned decreased $2.9 million as compared to December 31, 2024. The increase in nonaccrual loans was primarily due to two specific credit relationships being placed on nonaccrual status during the period. One relationship totaling $26.7 million relates to a downtown St. Louis hotel that was originated pre-pandemic and has been on our classified list since April of 2021. This is the only credit relationship within our portfolio located in downtown St. Louis. The other relationship totaling $22.6 million relates to a fast-food operator and has been on our classified list since June of 2024 due to sector-related headwinds and global cash flow concerns with the borrower.
From time to time, certain borrowers experience declines in income and cash flow. As a result, these borrowers seek to reduce contractual cash outlays, the most prominent being debt payments. In an effort to preserve our net interest margin and earning assets, we are open to working with existing customers in order to maximize the collectability of the debt.
We have internal loan modification programs for borrowers experiencing financial difficulties. Modifications to borrowers experiencing financial difficulties ("FDMs") may include interest rate reductions, principal or interest forgiveness and/or term extensions. We primarily use interest rate reduction and/or payment modifications or extensions, with an occasional forgiveness of principal.
There were eleven loan modifications granted to borrowers experiencing financial difficulty during the nine month period ended September 30, 2025. Such modifications included interest rate reductions and/or term extensions and had a total period-end amortized cost basis of $849,000 at September 30, 2025.
The allowance for credit losses as a percent of total loans was 1.50% as of September 30, 2025. Nonperforming loans equaled 0.90% of total loans. Nonperforming assets were 0.66% of total assets, a 21 basis point increase from December 31, 2024. The allowance for credit losses was 168% of nonperforming loans. Our annualized net charge-offs to average total loans ratio for the first nine months of 2025 was 0.24%. Annualized net credit card charge-offs to average total credit card loans were 3.11% for the first nine months of 2025, compared to 2.93% during the full year 2024, and 120 basis points better than the most recently published industry average charge-off ratio as reported by the Federal Reserve for all banks.
Table 9 presents information concerning nonperforming assets, including nonaccrual loans at amortized cost and foreclosed assets held for sale.
Table 9: Nonperforming Assets
| September 30, | December 31, | September 30, | |||||||||||||||
| (Dollars in thousands) | 2025 | 2024 | 2024 | ||||||||||||||
|
Nonaccrual loans (1)
|
$ | 153,516 | $ | 110,154 | $ | 100,865 | |||||||||||
| Loans past due 90 days or more (principal or interest payments) | 423 | 603 | 830 | ||||||||||||||
| Total nonperforming loans | 153,939 | 110,757 | 101,695 | ||||||||||||||
| Other nonperforming assets: | |||||||||||||||||
| Foreclosed assets held for sale and other real estate owned | 6,386 | 9,270 | 1,299 | ||||||||||||||
| Other nonperforming assets | 392 | 1,202 | 1,311 | ||||||||||||||
| Total other nonperforming assets | 6,778 | 10,472 | 2,610 | ||||||||||||||
| Total nonperforming assets | $ | 160,717 | $ | 121,229 | $ | 104,305 | |||||||||||
| Allowance for credit losses to nonperforming loans | 168 | % | 212 | % | 229 | % | |||||||||||
| Nonperforming loans to total loans | 0.90 | % | 0.65 | % | 0.59 | % | |||||||||||
| Nonperforming assets to total assets | 0.66 | % | 0.45 | % | 0.38 | % | |||||||||||
_______________________________________
(1)Includes nonaccrual FDMs of approximately $28.2 million and $597,000 at September 30, 2025 and December 31, 2024, respectively.
The interest income on nonaccrual loans is not considered material for the three and nine month periods ended September 30, 2025 and 2024.
ALLOWANCE FOR CREDIT LOSSES
The allowance for credit losses is a reserve established through a provision for credit losses charged to expense which represents management's best estimate of lifetime expected losses based on reasonable and supportable forecasts, quantitative factors, and other qualitative considerations.
Loans with similar risk characteristics such as loan type, collateral type, and internal risk ratings are aggregated for collective assessment. We use statistically-based models that leverage assumptions about current and future economic conditions throughout the contractual life of the loan. Expected credit losses are estimated by either lifetime loss rates or expected loss cash flows based on three key parameters: probability-of-default ("PD"), exposure-at-default ("EAD"), and loss-given-default ("LGD"). Future economic conditions are incorporated to the extent that they are reasonable and supportable. Beyond the reasonable and supportable periods, the economic variables revert to a historical equilibrium at a pace dependent on the state of the economy reflected within the economic scenarios. We also include qualitative adjustments to the allowance based on factors and considerations that have not otherwise been fully accounted for.
Loans that have unique risk characteristics are evaluated on an individual basis. These evaluations are typically performed on loans with a deteriorated internal risk rating. For a collateral-dependent loan, our evaluation process includes a valuation by appraisal or other collateral analysis adjusted for selling costs, when appropriate. This valuation is compared to the remaining outstanding principal balance of the loan. If a loss is determined to be probable, the loss is included in the allowance for credit losses as a specific allocation.
An analysis of the allowance for credit losses on loans is shown in Table 10.
Table 10: Allowance for Credit Losses
| (In thousands) | 2025 | 2024 | |||||||||
| Balance, beginning of year | $ | 235,019 | $ | 225,231 | |||||||
| Loans charged off: | |||||||||||
| Credit card | 5,024 | 4,808 | |||||||||
| Other consumer | 2,084 | 1,806 | |||||||||
| Real estate | 7,225 | 3,139 | |||||||||
| Commercial | 20,579 | 20,071 | |||||||||
| Total loans charged off | 34,912 | 29,824 | |||||||||
| Recoveries of loans previously charged off: | |||||||||||
| Credit card | 802 | 700 | |||||||||
| Other consumer | 903 | 1,117 | |||||||||
| Real estate | 301 | 1,210 | |||||||||
| Commercial | 1,971 | 1,336 | |||||||||
| Total recoveries | 3,977 | 4,363 | |||||||||
| Net loans charged off | 30,935 | 25,461 | |||||||||
| Provision for credit losses | 53,922 | 33,453 | |||||||||
| Balance, September 30, | $ | 258,006 | $ | 233,223 | |||||||
| Loans charged off: | |||||||||||
| Credit card | 1,629 | ||||||||||
| Other consumer | 505 | ||||||||||
| Real estate | 3,810 | ||||||||||
| Commercial | 6,796 | ||||||||||
| Total loans charged off | 12,740 | ||||||||||
| Recoveries of loans previously charged off: | |||||||||||
| Credit card | 391 | ||||||||||
| Other consumer | 279 | ||||||||||
| Real estate | 275 | ||||||||||
| Commercial | 259 | ||||||||||
| Total recoveries | 1,204 | ||||||||||
| Net loans charged off | 11,536 | ||||||||||
| Provision for credit losses | 13,332 | ||||||||||
| Balance, end of year | $ | 235,019 | |||||||||
Provision for Credit Losses
The amount of provision added to or released from the allowance during the three and nine months ended September 30, 2025 and 2024, and for the year ended December 31, 2024, was based on management's judgment, with consideration given to the composition and asset quality of the portfolio, historical loan loss experience, and assessment of current and expected economic forecasts and conditions. It is management's practice to review the allowance on a monthly basis, and after considering the factors previously noted, to determine the level of provision made to the allowance.
Allowance for Credit Losses Allocation
As of September 30, 2025, the allowance for credit losses reflected an increase of approximately $23.0 million from December 31, 2024, while total loans increased by $182.9 million over the same nine month period. The allocation in each category within the allowance generally reflects the overall changes in the loan portfolio mix.
The increase in the allowance for credit losses during the first nine months of 2025 was primarily due to a provision expense of $15.6 million related to two specific credit relationships which migrated to nonperforming during the period, as well as the impact of updated economic forecasts. Our allowance for credit losses at September 30, 2025 was considered appropriate given the current economic environment and other related factors.
The following table sets forth the sum of the amounts of the allowance for credit losses attributable to individual loans within each category, or loan categories in general. The table also reflects the percentage of loans in each category to the total loan portfolio for each of the periods indicated. The allowance for credit losses by loan category is determined by (i) our estimated reserve factors by category including applicable qualitative adjustments and (ii) any specific allowance allocations that are identified on individually evaluated loans. The amounts shown are not necessarily indicative of the actual future losses that may occur within individual categories.
Table 11: Allocation of Allowance for Credit Losses
| September 30, 2025 | December 31, 2024 | ||||||||||||||||||||||
| (Dollars in thousands) |
Allowance Amount |
% of
loans (1)
|
Allowance Amount |
% of
loans (1)
|
|||||||||||||||||||
| Credit cards | $ | 5,981 | 1.0 | % | $ | 6,007 | 1.1 | % | |||||||||||||||
| Other consumer | 6,938 | 5.2 | % | 5,463 | 4.3 | % | |||||||||||||||||
| Real estate | 208,267 | 77.8 | % | 181,962 | 78.8 | % | |||||||||||||||||
| Commercial | 36,820 | 16.0 | % | 41,587 | 15.8 | % | |||||||||||||||||
| Total | $ | 258,006 | 100.0 | % | $ | 235,019 | 100.0 | % | |||||||||||||||
| Allowance for credit losses to period-end loans | 1.50 | % | 1.38 | % | |||||||||||||||||||
_______________________________________
(1)Percentage of loans in each category to total loans.
DEPOSITS
Deposits are our primary source of funding for earning assets and are primarily developed through our network of 223 financial centers as of September 30, 2025. We offer a variety of products designed to attract and retain customers with a continuing focus on developing core deposits. Our core deposits consist of all deposits excluding time deposits of $250,000 or more and brokered deposits. As of September 30, 2025, core deposits comprised 84.5% of our total deposits.
We continually monitor the funding requirements along with competitive interest rates in the markets we serve. Because of our community banking philosophy, our executives in the local markets, with oversight by the Chief Deposit Officer, Asset Liability Committee and the Bank's Treasury Department, establish the interest rates offered on both core and non-core deposits. This approach helps ensure that the interest rates being paid are competitively priced for each particular deposit product and structured to meet the funding requirements. We believe we are paying a competitive rate when compared with pricing in those markets.
We manage our interest expense through deposit pricing. We believe that additional funds can be attracted and deposit growth can be accelerated through deposit pricing if we experience increased loan demand or other liquidity needs. We can also utilize brokered deposits as an additional source of funding to meet liquidity needs. We are continually monitoring and looking for opportunities to fairly reprice our deposits while remaining competitive in this current challenging rate environment.
Our total deposits as of September 30, 2025, were $19.84 billion, compared to $21.89 billion as of December 31, 2024. Noninterest bearing transaction accounts, interest bearing transaction accounts and savings accounts totaled $15.31 billion at September 30, 2025, compared to $15.44 billion at December 31, 2024, a decrease of $132.4 million. Total time deposits decreased $1.92 billion to $4.53 billion at September 30, 2025, from $6.44 billion at December 31, 2024. We had $1.84 billion and $3.30 billion of brokered deposits at September 30, 2025, and December 31, 2024, respectively. The decrease in time deposits and brokered deposits over the comparative period is largely due to the balance sheet repositioning during the third quarter of 2025, including the pay-down of higher rate, non-relationship wholesale and public fund deposits. We are continuing to refine our product offerings to give customers flexibility of choice while maintaining the ability to adjust interest rates timely in the current rate environment.
Table 12 reflects the classification of the average deposits and the average rate paid on each deposit category which is in excess of 10 percent of average total deposits for the nine months ended September 30, 2025 and the year ended December 31, 2024.
Table 12: Average Deposit Balances and Rates
| September 30, 2025 | December 31, 2024 | ||||||||||||||||||||||
| (In thousands) | Average Amount | Average Rate Paid | Average Amount | Average Rate Paid | |||||||||||||||||||
| Noninterest bearing transaction accounts | $ | 4,367,882 | - | % | $ | 4,576,022 | - | % | |||||||||||||||
|
Interest bearing transaction and savings deposits
|
11,146,423 | 2.45 | % | 10,974,529 | 2.81 | % | |||||||||||||||||
| Time deposits | 5,695,173 | 3.96 | % | 6,411,888 | 4.55 | % | |||||||||||||||||
| Total | $ | 21,209,478 | 2.35 | % | $ | 21,962,439 | 2.73 | % | |||||||||||||||
OTHER BORROWINGS AND SUBORDINATED NOTES AND DEBENTURES
Our total debt was $667.8 million and $1.11 billion at September 30, 2025 and December 31, 2024, respectively. The outstanding balance for September 30, 2025 includes $2.7 million in FHLB advances; $649.0 million in subordinated notes and unamortized debt issuance costs; and $16.1 million of other long-term debt. The decrease in total debt over the comparative period is due to the pay down of higher cost wholesale funding, primarily FHLB advances, as part of the balance sheet repositioning during the period.
In March 2018, we issued $330.0 million in aggregate principal amount of 2018 Notes at a public offering price equal to 100% of the aggregate principal amount of the 2018 Notes. We incurred $3.6 million in debt issuance costs related to the offering. The 2018 Notes were to mature on April 1, 2028; during the third quarter of 2025, the Company issued a notice of redemption to redeem the 2018 Notes, which were redeemed in full on October 1, 2025. The related remaining $565,000 of unamortized debt issuance costs were written off during the quarter ended September 30, 2025.
We assumed Fixed-to-Floating Rate Subordinated Notes in an aggregate principal amount, net of premium adjustments, of $37.4 million in connection with the Spirit acquisition in April 2022 ("Spirit Notes"). During the second quarter of 2025, we issued a notice of redemption to redeem the Spirit Notes in an aggregate principal amount of $37.0 million. The Spirit Notes were redeemed in full on July 31, 2025.
In September 2025, we issued $325.0 million in aggregate principal amount of 2025 Notes at a public offering price equal to 100% of the aggregate principal amount of the 2025 Notes. The Company incurred $3.9 million in debt issuance costs related to the offering. Additionally, during the third quarter of 2025, the Company began utilizing interest rate swaps designated as fair value hedges to mitigate the risk of changes in the fair value of the aggregate principal amount of the 2025 Notes due to changes in market interest rates. The 2025 Notes will mature on October 1, 2035 and are subordinated in right of payment to the payment of our other existing and future senior indebtedness, including all our general creditors. The 2025 Notes are obligations of the Company only and are not obligations of, and are not guaranteed by, any of its subsidiaries.
For information about the regulatory capital treatment of the 2018 Notes, 2025 Notes and the Spirit Notes, see the section "Capital-Risk-Based Capital."
CAPITAL
Overview
At September 30, 2025, total capital was $3.35 billion. Capital represents shareholder ownership in the Company - the book value of assets in excess of liabilities. At September 30, 2025, our common equity to asset ratio was 13.85% compared to 13.13% at year-end 2024.
Capital Stock
On February 27, 2009, at a special meeting, our shareholders approved an amendment to the Articles of Incorporation to establish 40,040,000 authorized shares of preferred stock, $0.01 par value. On April 27, 2022, our shareholders approved amendments to our Articles of Incorporation to remove an $80.0 million cap on the aggregate liquidation preference associated with the preferred stock and increase the number of authorized shares of our Class A common stock from 175,000,000 to 350,000,000.
On October 29, 2019, we filed Amended and Restated Articles of Incorporation ("October Amended Articles") with the Arkansas Secretary of State. The October Amended Articles classified and designated Series D Preferred Stock, Par Value $0.01 Per Share ("Series D Preferred Stock"), out of our authorized preferred stock. On November 30, 2021, we redeemed all of the Series D Preferred Stock, including accrued and unpaid dividends. On April 27, 2022, our shareholders approved an amendment to our Articles of Incorporation to remove the classification and designation for the Series D Preferred Stock. As of September 30, 2025 and December 31, 2024, there were no shares of preferred stock issued or outstanding.
On May 17, 2024, we filed a shelf registration with the SEC. The shelf registration statement provides increased flexibility and more efficient access to raise capital from time to time through the sale of common stock, preferred stock, debt securities, depository shares, warrants, purchase contracts, subscription rights, units or a combination thereof, subject to market conditions. Specific terms and prices are determined at the time of any offering under a separate prospectus supplement that we are required to file with the SEC at the time of the specific offering.
On July 23, 2025, we closed a public offering of 18,653,000 shares of our Class A common stock, at a price to the public of $18.50 per share, which includes 2,433,000 shares of our Class A common stock granted pursuant to the underwriters' option to purchase additional shares at the public offering price, less underwriting discounts. The net proceeds of $327.4 million from this public offering helped offset the one-time, realized after-tax loss of $625.6 million (based on an actual tax rate of 21.946%) incurred during the third quarter of 2025 from selling AFS securities discussed in the Investments and Securitiessection above.
Stock Repurchase Program
In January 2022, our Board of Directors authorized a stock repurchase program ("2022 Program") under which we could repurchase up to $175.0 million of our Class A common stock currently issued and outstanding. Because the 2022 Program was set to terminate on January 31, 2024, our Board of Directors authorized a new stock repurchase program in January 2024 ("2024 Program") under which we may repurchase up to $175.0 million of our Class A common stock currently issued and outstanding. The 2024 Program, which replaced the 2022 Program, will be executed in accordance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended ("Exchange Act") and will terminate on January 31, 2026 (unless terminated sooner).
Under the 2024 Program, we may repurchase shares of our common stock through open market and privately negotiated transactions or otherwise. The timing, pricing, and amount of any repurchases under the 2024 Program will be determined by management at its discretion based on a variety of factors, including, but not limited to, trading volume and market price of our common stock, corporate considerations, our working capital and investment requirements, general market and economic conditions, and legal requirements. The 2024 Program does not obligate us to repurchase any common stock and may be modified, discontinued, or suspended at any time without prior notice. We anticipate funding for this 2024 Program to come from available sources of liquidity, including cash on hand and future cash flow.
No shares were repurchased during the three and nine month periods ended September 30, 2025 and 2024. Market conditions and the Company's capital needs, among other things, will drive decisions regarding additional, future stock repurchases.
Cash Dividends
We declared cash dividends on our common stock of $0.6375 per share for the first nine months of 2025 compared to $0.63 per share for the first nine months of 2024, an increase of $0.0075, or 1%. The timing and amount of future dividends are at the discretion of our Board of Directors and will depend upon our consolidated earnings, financial condition, liquidity and capital requirements, the amount of cash dividends paid to us by our subsidiaries, applicable government regulations and policies and other factors considered relevant by our Board of Directors. Our Board of Directors anticipates that we will continue to pay quarterly dividends in amounts determined based on the factors discussed above. However, there can be no assurance that we will continue to pay dividends on our common stock at the current levels or at all.
Parent Company Liquidity
The primary liquidity needs of the Parent Company are the payment of dividends to shareholders, the funding of debt obligations and cash needs for acquisitions. The primary sources for meeting these liquidity needs are the current cash on hand at the parent company and the future dividends received from Simmons Bank. Payment of dividends by Simmons Bank is subject to various regulatory limitations. For additional information regarding the parent company's liquidity, see "Liquidity Management" and "Market Risk Management" in Item 3 - Quantitative and Qualitative Disclosures About Market Risk of this Quarterly Report on Form 10-Q. We continually assess our capital and liquidity needs and the best way to meet them, including, without limitation, through capital raising in the market via stock or debt offerings.
Risk-Based Capital
The Company and Simmons Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. Our capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. The Company and Simmons Bank must hold a capital conservation buffer composed of common equity Tier 1 capital above its minimum risk-based capital requirements. Failure to meet this capital conservation buffer would result in additional limits on dividends, other distributions and discretionary bonuses. The Company's management reviews regulatory capital levels on an ongoing basis in light of the size, composition and quality of the Company's capital resources, and of trends and anticipated changes thereto.
Quantitative measures established by regulation to ensure capital adequacy require us to maintain minimum amounts and ratios (set forth in the table below) of total, Tier 1 and common equity Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average assets (as defined). Management believes that, as of September 30, 2025, we met all capital adequacy requirements to which we are subject. As of the most recent notification from regulatory agencies, Simmons Bank was well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Company and Simmons Bank must maintain minimum total risk-based, Tier 1 risk-based, common equity Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the institution's categories.
The Company's risk-based capital ratios at September 30, 2025 and December 31, 2024 are presented in Table 13 below:
Table 13: Risk-Based Capital
| September 30, | December 31, | ||||||||||
| (Dollars in thousands) | 2025 | 2024 | |||||||||
| Tier 1 capital: | |||||||||||
| Stockholders' equity | $ | 3,353,963 | $ | 3,528,872 | |||||||
| CECL transition provision | - | 30,873 | |||||||||
| Goodwill and other intangible assets | (1,376,255) | (1,385,128) | |||||||||
| Unrealized loss on available-for-sale securities, net of income taxes | 313,483 | 360,910 | |||||||||
| Total Tier 1 capital | 2,291,191 | 2,535,527 | |||||||||
| Tier 2 capital: | |||||||||||
| Subordinated notes and debentures | 648,976 | 366,293 | |||||||||
| Subordinated debt phase out | (198,000) | (132,000) | |||||||||
| Qualifying allowance for credit losses and reserve for unfunded commitments | 248,710 | 222,313 | |||||||||
| Total Tier 2 capital | 699,686 | 456,606 | |||||||||
| Total risk-based capital | $ | 2,990,877 | $ | 2,992,133 | |||||||
| Risk weighted assets | $ | 19,861,879 | $ | 20,473,960 | |||||||
| Assets for leverage ratio | $ | 23,963,356 | $ | 26,037,459 | |||||||
| Ratios at end of period: | |||||||||||
| Common equity Tier 1 ratio (CET1) | 11.54 | % | 12.38 | % | |||||||
| Tier 1 leverage ratio | 9.56 | % | 9.74 | % | |||||||
| Tier 1 risk-based capital ratio | 11.54 | % | 12.38 | % | |||||||
| Total risk-based capital ratio | 15.07 | % | 14.61 | % | |||||||
| Minimum guidelines: | |||||||||||
| Common equity Tier 1 ratio (CET1) | 4.50 | % | 4.50 | % | |||||||
| Tier 1 leverage ratio | 4.00 | % | 4.00 | % | |||||||
| Tier 1 risk-based capital ratio | 6.00 | % | 6.00 | % | |||||||
| Total risk-based capital ratio | 8.00 | % | 8.00 | % | |||||||
Regulatory Capital Changes
In December 2018, the Federal Reserve, Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation ("FDIC") (collectively, the "agencies") issued a final rule revising regulatory capital rules in anticipation of the adoption of ASU 2016-13 that provided an option to phase in over a three year period on a straight line basis the day-one impact of the adoption on earnings and Tier 1 capital (the "CECL Transition Provision").
In March 2020 and in response to the COVID-19 pandemic, the agencies issued a new regulatory capital rule revising the CECL Transition Provision to delay the estimated impact on regulatory capital stemming from the implementation of ASU 2016-13. The rule provided banking organizations that implement CECL before the end of 2020 the option to delay for two years an estimate of CECL's effect on regulatory capital, followed by a three-year transition period (the "2020 CECL Transition Provision"). The Company elected to apply the 2020 CECL Transition Provision.
The Basel III Capital Rules define the components of capital and address other issues affecting the numerator in banking institutions' regulatory capital ratios. The rules also address risk weights and other issues affecting the denominator in banking institutions' regulatory capital ratios with a more risk-sensitive approach. The Basel III Capital Rules established risk-weighting categories depending on the nature of the assets, generally ranging from 0% for U.S. government and agency securities, to 600% for certain equity exposures.
The final rules included a new common equity Tier 1 capital to risk-weighted assets ratio of 4.5% and a common equity Tier 1 capital conservation buffer of 2.5% of risk-weighted assets. The rules also raised the minimum ratio of Tier 1 capital to risk-weighted assets to 6.0% and require a minimum leverage ratio of 4.0%.
Qualifying subordinated debt of $451.0 million and $234.3 million is included as Tier 2 and total capital of the Company for periods ended September 30, 2025 and December 31, 2024, respectively.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
See the Recently Issued Accounting Standards section in Note 1, Preparation of Interim Financial Statements, in the accompanying Condensed Notes to Consolidated Financial Statements included elsewhere in this report for details of recently issued accounting pronouncements and their expected impact on the Company's ongoing financial position and results of operation.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this quarterly report may not be based on historical facts and should be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by reference to a future period(s) or by the use of forward-looking terminology, such as "anticipate," "believe," "budget," "contemplate," "continue," "estimate," "expect," "foresee," "intend," "indicate," "likely," "target," "plan," "positions," "prospects," "project," "predict," or "potential," by future conditional verbs such as "could," "may," "might," "should," "will," or "would," or by variations of such words or by similar expressions. These forward-looking statements include, without limitation, those relating to the Company's future growth, business strategies, product development, acquisitions and their expected benefits, revenue, expenses, assets, asset quality, profitability, earnings, accretion, dividends, customer service, lending capacity and lending activity, loan demand, deposit levels, investment in digital channels, critical accounting policies and estimates, net interest income, net interest margin, noninterest income, noninterest expense, the Company's stock repurchase program, consumer behavior and liquidity, the Company's ability to recruit and retain key employees, the adequacy of the allowance for credit losses, income tax deductions, deferred tax assets, credit quality, the level of credit losses from lending commitments, net interest revenue, interest rates and interest rate sensitivity (including, among other things, the impact of rising or declining interest rates), economic conditions, repricing of loans and time deposits, loan loss experience, liquidity, the Company's expectations regarding actions by the regulatory agencies, capital resources, the expected expenses and cost savings associated with branch closures, market risk, plans for investments in (and cash flows from) securities and investment portfolio strategies, effect of pending and future litigation, staffing initiatives, estimated cost savings associated with the Company's early retirement program, legal and regulatory limitations and compliance and competition.
These forward-looking statements are based on various assumptions and involve inherent risks and uncertainties, and may not be realized due to a variety of factors, including, without limitation: changes in the Company's operating, acquisition, or expansion strategy; the effects of future economic conditions (including unemployment levels and slowdowns in economic growth), governmental monetary and fiscal policies (including the policies of the Federal Reserve, as well as legislative and regulatory changes); changes in tariff policies; general business conditions, as well as conditions within the financial markets, developments impacting the financial services industry, such as bank failures or concerns involving liquidity; changes in real estate values; changes in interest rates and related governmental policies; the effects of a government shutdown, changes in liquidity, and the availability of and costs associated with obtaining adequate and timely sources of liquidity; increased inflation; changes in the level and composition of deposits, loan demand, deposit flows, and the values of loan collateral, securities and interest sensitive assets and liabilities; changes in credit quality; actions taken by the Company to manage its investment securities portfolio; changes in the securities markets generally or the price of the Company's common stock, specifically; changes in the assumptions used in making the forward-looking statements; developments in information technology affecting the financial industry; cyber threats, attacks or events, including at third parties on which we rely for key services; the ability to collect amounts due under loan agreements; reliance on third parties for the provision of key services; further changes in accounting principles relating to loan loss recognition; the costs of evaluating possible acquisitions and the risks inherent in integrating acquisitions; possible adverse rulings, judgments, settlements, fines and other outcomes of pending or future litigation or government actions; market disruptions, including pandemics or significant health hazards, severe weather conditions, natural disasters, terrorist activities, financial crises, political crises, war and other military conflicts (including the ongoing military conflicts between Russia and Ukraine) or other major events, or the prospect of these events; changes in customer behaviors and preferences, including consumer spending, borrowing and saving habits; the soundness of other financial institutions and indirect exposure related to the closings of other financial institutions and their impact on the broader market through other customers, suppliers and partners (or that the conditions which resulted in the liquidity concerns that led to the large regional bank failures during 2023 may also adversely impact, directly or indirectly, other financial institutions and market participants with which the Company has commercial or deposit relationships); the loss of key employees; fraud that results in material losses or that we have not discovered yet that may result in material losses; increased unemployment; labor shortages; the Company's ability to manage and successfully integrate its mergers and acquisitions to fully realize cost savings and other benefits associated with those transactions; increased delinquency and foreclosure rates on commercial real estate and other loans; significant increases in nonaccrual loan balances; the effects of government legislation; the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds, and other financial institutions operating in our market area and elsewhere, including institutions operating regionally, nationally and internationally, together with such competitors offering banking products and services by mail, cell-phone/tablet, telephone, computer and the Internet; the failure of assumptions underlying the establishment of reserves for possible credit losses, fair value for loans, other real estate owned and other cautionary statements set forth elsewhere in this report.
Additional information on factors that might cause the Company's results to differ materially from those disclosed in the forward-looking statements is included in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of this quarterly report, the Company's annual report on Form 10-K for the year ended December 31, 2024, and related disclosures in other filings with the SEC, which are available on the SEC's website at www.sec.gov. Many of these factors are beyond our ability to predict or control, and actual results could differ materially from those in the forward-looking statements due to these factors and others. In addition, as a result of these and other factors, our past financial performance should not be relied upon as an indication of future performance.
We believe the assumptions and expectations that underlie or are reflected in our forward-looking statements are reasonable, based on information available to us on the date hereof. However, given the described uncertainties and risks, we cannot guarantee our future performance or results of operations or whether our future performance will differ materially from the performance reflected in or implied by our forward-looking statements, and you should not place undue reliance on these forward-looking statements. Any forward-looking statement speaks only as of the date hereof, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, and all written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this section.
GAAP RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
The tables below present computations of adjusted earnings (net income excluding certain items {net branch right sizing costs, FDIC special assessment, termination of vendor and software services, early retirement program costs, loss on early extinguishment of debt, loss on sale of securities and tax effect}) (non-GAAP), and adjusted diluted earnings per share (non-GAAP) as well as a computation of tangible book value per share (non-GAAP), tangible common equity to tangible assets (non-GAAP), adjusted noninterest income (non-GAAP), adjusted noninterest expense (non-GAAP), uninsured, non-collateralized deposits (non-GAAP) and the coverage ratio of uninsured, non-collateralized deposits (non-GAAP). Adjusted items are included in financial results presented in accordance with generally accepted accounting principles (US GAAP).
We believe the exclusion of these certain items in expressing earnings and certain other financial measures, including "adjusted earnings," provides a meaningful basis for period-to-period and company-to-company comparisons, which management believes will assist investors and analysts in analyzing the adjusted financial measures of the Company and predicting future performance. These non-GAAP financial measures are also used by management to assess the performance of the Company's business because management does not consider these certain items to be relevant to ongoing financial performance. Management and the Board of Directors utilize "adjusted earnings" (non-GAAP) for the following purposes:
• Preparation of the Company's operating budgets
• Monthly financial performance reporting
• Monthly "flash" reporting of consolidated results (management only)
• Investor presentations of Company performance
We believe the presentation of "adjusted earnings" on a diluted per share basis (non-GAAP) provides a meaningful basis for period-to-period and company-to-company comparisons, which management believes will assist investors and analysts in analyzing the adjusted financial measures of the Company and predicting future performance. These non-GAAP financial measures are also used by management to assess the performance of the Company's business, because management does not consider these certain items to be relevant to ongoing financial performance on a per share basis. Management and the Board of Directors utilize "adjusted diluted earnings per share" (non-GAAP) for the following purposes:
• Calculation of annual performance-based incentives for certain executives
• Calculation of long-term performance-based incentives for certain executives
• Investor presentations of Company performance
We have $1.408 billion and $1.418 billion total goodwill and other intangible assets for the periods ended September 30, 2025 and December 31, 2024, respectively. Because our acquisition strategy has resulted in a high level of intangible assets, management believes useful calculations include tangible book value per share (non-GAAP) and tangible common equity to tangible assets (non-GAAP).
We believe that presenting these non-GAAP financial measures permits investors and analysts to assess the performance of the Company on the same basis as that is applied by management and the Board of Directors.
Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. To mitigate these limitations, we have procedures in place to identify and approve each item that qualifies as adjusted to ensure that the Company's "adjusted" results are properly reflected for period-to-period comparisons. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of results as reported under GAAP. In particular, a measure of earnings that excludes certain items does not represent the amount that effectively accrues directly to stockholders (i.e., certain items are included in earnings and stockholders' equity). Additionally, similarly titled non-GAAP financial measures used by other companies may not be computed in the same or similar fashion.
See Table 14 below for the reconciliation of non-GAAP financial measures, which exclude certain items for the periods presented.
Table 14: Reconciliation of Adjusted Earnings (non-GAAP)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||||||||
| (In thousands, except per share data) | 2025 | 2025 | 2025 | 2024 | |||||||||||||||||||
| Net income available to common stockholders | $ | (562,792) | $ | 54,773 | $ | (475,631) | $ | 104,374 | |||||||||||||||
| Certain items: | |||||||||||||||||||||||
| Loss on early extinguishment of debt | 570 | - | 570 | - | |||||||||||||||||||
| FDIC Special Assessment | - | - | - | 1,832 | |||||||||||||||||||
| Early retirement program | 305 | 1,594 | 1,899 | 336 | |||||||||||||||||||
| Termination of vendor and software services | - | - | - | 602 | |||||||||||||||||||
| Loss on sale of securities | 801,492 | - | 801,492 | 28,393 | |||||||||||||||||||
| Branch right sizing (net) | 2,004 | 163 | 3,161 | 1,165 | |||||||||||||||||||
|
Tax effect (1)
|
(176,649) | (459) | (177,368) | (8,449) | |||||||||||||||||||
| Certain items, net of tax | 627,722 | 1,298 | 629,754 | 23,879 | |||||||||||||||||||
| Adjusted earnings (non-GAAP) | $ | 64,930 | $ | 56,071 | $ | 154,123 | $ | 128,253 | |||||||||||||||
|
Diluted earnings per share(2)
|
$ | (4.00) | $ | 0.43 | $ | (3.63) | $ | 0.83 | |||||||||||||||
| Certain items: | |||||||||||||||||||||||
| Loss on early extinguishment of debt | - | - | - | - | |||||||||||||||||||
| FDIC Special Assessment | - | - | - | 0.02 | |||||||||||||||||||
| Early retirement program | - | 0.01 | 0.02 | - | |||||||||||||||||||
| Termination of vendor and software services | - | - | - | - | |||||||||||||||||||
| Loss on sale of securities | 5.70 | - | 6.11 | 0.23 | |||||||||||||||||||
| Branch right sizing (net) | 0.01 | - | 0.02 | 0.01 | |||||||||||||||||||
|
Tax effect (1)
|
(1.25) | - | (1.34) | (0.07) | |||||||||||||||||||
| Certain items, net of tax | 4.46 | 0.01 | 4.81 | 0.19 | |||||||||||||||||||
| Adjusted diluted earnings per share (non-GAAP) | $ | 0.46 | $ | 0.44 | $ | 1.18 | $ | 1.02 | |||||||||||||||
_______________________________________
(1)Actual tax rate of 21.946% on 2025 loss on sale of securities. Effective tax rate of 26.135% on all other items.
(2)See Note 15, Earnings Per Share ("EPS"), for number of shares used to determine EPS.
See Table 15 below for the reconciliation of adjusted noninterest income and adjusted noninterest expense for the periods presented.
Table 15: Reconciliations of Adjusted Noninterest Income (non-GAAP) and Adjusted Noninterest Expense (non-GAAP)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||||||||
| (In thousands) | 2025 | 2025 | 2025 | 2024 | |||||||||||||||||||
| Noninterest income | $ | (756,187) | $ | 42,354 | $ | (667,678) | $ | 103,613 | |||||||||||||||
| Certain items: | |||||||||||||||||||||||
| Loss on early extinguishment of debt | 570 | - | 570 | - | |||||||||||||||||||
| Loss on sale of securities | 801,492 | - | 801,492 | 28,393 | |||||||||||||||||||
| Total certain items | 802,062 | - | 802,062 | 28,393 | |||||||||||||||||||
| Adjusted noninterest income (non-GAAP) | $ | 45,875 | $ | 42,354 | $ | 134,384 | $ | 132,006 | |||||||||||||||
| Noninterest expense | $ | 142,032 | $ | 138,589 | $ | 425,201 | $ | 416,426 | |||||||||||||||
| Certain items: | |||||||||||||||||||||||
| Early retirement program | (305) | (1,594) | (1,899) | (336) | |||||||||||||||||||
| Termination of vendor and software services | - | - | - | (602) | |||||||||||||||||||
| FDIC Special Assessment | - | - | - | (1,832) | |||||||||||||||||||
| Branch right sizing | (2,004) | (163) | (3,161) | (1,165) | |||||||||||||||||||
| Total certain items | (2,309) | (1,757) | (5,060) | (3,935) | |||||||||||||||||||
| Adjusted noninterest expense (non-GAAP) | $ | 139,723 | $ | 136,832 | $ | 420,141 | $ | 412,491 | |||||||||||||||
See Table 16 below for the reconciliation of tangible book value per share.
Table 16: Reconciliation of Tangible Book Value per Share (non-GAAP)
| September 30, | December 31, | ||||||||||
| (In thousands, except per share data) | 2025 | 2024 | |||||||||
| Total common stockholders' equity | $ | 3,353,963 | $ | 3,528,872 | |||||||
| Intangible assets: | |||||||||||
| Goodwill | (1,320,799) | (1,320,799) | |||||||||
| Other intangible assets | (87,520) | (97,242) | |||||||||
| Total intangibles | (1,408,319) | (1,418,041) | |||||||||
| Tangible common stockholders' equity | $ | 1,945,644 | $ | 2,110,831 | |||||||
| Shares of common stock outstanding | 144,703,075 | 125,651,540 | |||||||||
| Book value per common share | $ | 23.18 | $ | 28.08 | |||||||
| Tangible book value per share (non-GAAP) | $ | 13.45 | $ | 16.80 | |||||||
See Table 17 below for the calculation of tangible common equity and the reconciliation of tangible common equity to tangible assets.
Table 17: Reconciliation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets (non-GAAP)
| September 30, | December 31, | ||||||||||
| (Dollars in thousands) | 2025 | 2024 | |||||||||
| Total common stockholders' equity | $ | 3,353,963 | $ | 3,528,872 | |||||||
| Intangible assets: | |||||||||||
| Goodwill | (1,320,799) | (1,320,799) | |||||||||
| Other intangible assets | (87,520) | (97,242) | |||||||||
| Total intangibles | (1,408,319) | (1,418,041) | |||||||||
| Tangible common stockholders' equity | $ | 1,945,644 | $ | 2,110,831 | |||||||
| Total assets | $ | 24,208,162 | $ | 26,876,049 | |||||||
| Intangible assets: | |||||||||||
| Goodwill | (1,320,799) | (1,320,799) | |||||||||
| Other intangible assets | (87,520) | (97,242) | |||||||||
| Total intangibles | (1,408,319) | (1,418,041) | |||||||||
| Tangible assets | $ | 22,799,843 | $ | 25,458,008 | |||||||
| Ratio of common equity to assets | 13.85 | % | 13.13 | % | |||||||
| Ratio of tangible common equity to tangible assets (non-GAAP) | 8.53 | % | 8.29 | % | |||||||
See Table 18 below for the reconciliation of uninsured, non-collateralized deposits and the calculation of uninsured, non-collateralized deposit coverage ratio.
Table 18: Reconciliation of Uninsured, Non-Collateralized Deposits and the Calculation of Uninsured, Non-Collateralized Deposit Coverage Ratio (non-GAAP)
| September 30, | December 31, | ||||||||||
| (In thousands) | 2025 | 2024 | |||||||||
| Uninsured deposits at Simmons Bank | $ | 9,565,766 | $ | 8,467,291 | |||||||
| Less: Collateralized deposits (excluding portion that is FDIC insured) | 2,169,362 | 2,790,339 | |||||||||
| Less: Intercompany eliminations | 2,937,147 | 1,045,734 | |||||||||
| Total uninsured, non-collateralized deposits | $ | 4,459,257 | $ | 4,631,218 | |||||||
| FHLB borrowing availability | $ | 6,134,000 | $ | 4,716,000 | |||||||
| Unpledged securities | 1,575,000 | 4,103,000 | |||||||||
|
Fed funds lines, Fed discount window and Bank Term Funding Program (1)
|
1,824,000 | 2,081,000 | |||||||||
| Additional liquidity sources | $ | 9,533,000 | $ | 10,900,000 | |||||||
| Uninsured, non-collateralized deposit coverage ratio | 2.1x | 2.4x | |||||||||
___________________________________
(1)The Bank Term Funding Program closed for new loans on March 11, 2024. At no time did the Company borrow funds under this program.
Simmons First National Corporation published this content on November 06, 2025, and is solely responsible for the information contained herein. Distributed via Edgar on November 06, 2025 at 20:40 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]