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What changed in SIMMONS FIRST NATIONAL CORP's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of SIMMONS FIRST NATIONAL CORP's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+368 added−347 removedSource: 10-K (2026-02-25) vs 10-K (2025-02-27)

Top changes in SIMMONS FIRST NATIONAL CORP's 2025 10-K

368 paragraphs added · 347 removed · 272 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

44 edited+18 added−12 removed130 unchanged
Biggest changeAnti-Money Laundering and Anti-Terrorism Simmons Bank is subject to the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (also known as the “PATRIOT Act”), the Bank Secrecy Act (“BSA”) and rules and regulations of the Office of Foreign Assets Control (“OFAC”).
Biggest changeAlthough these laws and regulations impose compliance costs and create obligations and, in some cases, reporting obligations, and compliance with all of the laws, regulations, and reporting obligations may require significant resources of the Company and our subsidiary bank, these laws and regulations do not materially affect our products, services or other business activities. 15 Anti-Money Laundering and Anti-Terrorism Simmons Bank is subject to the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (also known as the “PATRIOT Act”), the Bank Secrecy Act (“BSA”) and rules and regulations of the Office of Foreign Assets Control (“OFAC”).
Please refer to the section below titled FDIC Deposit Insurance and Assessments for more information. Pursuant to the FDICIA and Federal Deposit Insurance Act (“FDIA”), the federal banking agencies must promptly mandate corrective actions by banks that fail to meet the capital and related requirements in order to minimize losses to the FDIC and the Deposit Insurance Fund.
Please refer to the section below titled “ FDIC Deposit Insurance and Assessments ” for more information. Pursuant to the FDICIA and Federal Deposit Insurance Act (“FDIA”), the federal banking agencies must promptly mandate corrective actions by banks that fail to meet the capital and related requirements in order to minimize losses to the FDIC and the Deposit Insurance Fund.
Monetary policies of the FRB have in the past had a significant effect on the operating results of bank holding companies and their subsidiary banks, such as the Company and Simmons Bank, and may have similar effects in the future.
Monetary policies of the FRB have in the past had a significant effect on the operating results of bank holding companies and their subsidiary banks, such as the Company and Simmons Bank, and may have similar effects in the future. 18
The special assessment was based on estimated uninsured deposits as of December 31, 2022 (excluding the first $5.0 billion) and will be assessed at a quarterly rate of 3.36 basis points, over eight quarterly assessment periods, beginning in the first quarter of 2024. As a result of this final rule, we accrued $12.4 million related to this assessment.
The special assessment was based on estimated uninsured deposits as of December 31, 2022 (excluding the first $5.0 billion) and will be assessed at an initial quarterly rate of 3.36 basis points, over eight quarterly assessment periods, beginning in the first quarter of 2024. As a result of this final rule, we accrued $12.4 million related to this assessment.
As of December 31, 2024, the Bank was well capitalized under these regulations. The federal banking agencies are also required by FDICIA to prescribe standards for banks and bank holding companies (including financial holding companies) relating to operations and management, asset quality, earnings, stock valuation and compensation.
As of December 31, 2025, the Bank was well capitalized under these regulations. The federal banking agencies are also required by FDICIA to prescribe standards for banks and bank holding companies (including financial holding companies) relating to operations and management, asset quality, earnings, stock valuation and compensation.
During 2020, due to the COVID-19 pandemic, the FRB acting pursuant to the Federal Reserve Act reduced the reserve requirements to zero until further notice. As a result, as of December 31, 2024, the Company’s reserve balances were zero.
During 2020, due to the COVID-19 pandemic, the FRB acting pursuant to the Federal Reserve Act reduced the reserve requirements to zero until further notice. As a result, as of December 31, 2025, the Company’s reserve balances were zero.
Under the foregoing dividend restrictions, and while maintaining its “well capitalized” status, at December 31, 2024, Simmons Bank had paid to the Company all available dividends.
Under the foregoing dividend restrictions, and while maintaining its “well capitalized” status, at December 31, 2025, Simmons Bank had paid to the Company all available dividends.
In recruiting, we employ a variety of strategies, including, among other things, the use of in-house recruiters, search firms, and employment agencies, designed to attract qualified candidates. Among other opportunities, we offer student internships and a banker trainee program that provides recent graduates with the opportunity to gain insight into several Company departments.
In recruiting, we employ a variety of strategies, including, among other things, the use of in-house recruiters, search firms, and employment agencies, designed to attract qualified candidates. Among other opportunities, we offer student internships and a banker trainee program that provides recent graduates with the opportunity to gain insight into several business areas.
Our wellness program, “Ultimate You,” assists associates in improving their level of physical, financial, and mental fitness through offerings such as financial literacy training, channels for counseling and health-focused challenges and contests. As of December 31, 2024, the Company and its subsidiaries had approximately 2,946 full time equivalent associates.
Our wellness program, “Ultimate You,” assists associates in improving their level of physical, financial, and mental fitness through offerings such as financial literacy training, channels for counseling and health-focused challenges and contests. As of December 31, 2025, the Company and its subsidiaries had approximately 2,917 full time equivalent associates.
Because our business depends on our ability to attract, develop, and retain highly qualified, skilled lending, operations, information technology, and other associates, as well as managers who are experienced and effective at leading their respective departments, we have implemented wide-ranging programs focused on identifying and recruiting new talent, as well as enhancing the skills, qualifications, and satisfaction of our current associate base.
Because our business depends on our ability to attract, develop, and retain highly qualified, skilled operations, information technology, production and other associates, as well as managers who are experienced and effective at leading their respective business areas, we have implemented wide-ranging programs focused on identifying and recruiting new talent, as well as enhancing the skills, qualifications, and engagement of our current associate base.
As of December 31, 2024, Simmons Bank was “well capitalized” based on the aforementioned ratios.
As of December 31, 2025, Simmons Bank was “well capitalized” based on the aforementioned ratios.
In October 2023, the Federal Reserve proposed lowering the maximum interchange fee, and the Company is monitoring developments related to the proposal and continuing to assess its potential impact.
In October 2023, the Federal Reserve proposed lowering the maximum interchange fee, but the proposal has faced legal challenges, and the Company is monitoring developments related to the proposal and continuing to assess its potential impact.
At December 31, 2024, Simmons Bank’s total investment in FHLB-Dallas was $56.2 million. 16 Incentive Compensation The Dodd-Frank Act requires the federal banking agencies and the SEC to establish joint regulations or guidelines prohibiting incentive-based payment arrangements at specified regulated entities, including the Company and our subsidiary bank, with at least $1 billion in total consolidated assets that encourage inappropriate risks by providing an executive officer, employee, director, or principal shareholder with excessive compensation, fees, or benefits that could lead to material financial loss to the entity.
Incentive Compensation The Dodd-Frank Act requires the federal banking agencies and the SEC to establish joint regulations or guidelines prohibiting incentive-based payment arrangements at specified regulated entities, including the Company and our subsidiary bank, with at least $1 billion in total consolidated assets that encourage inappropriate risks by providing an executive officer, employee, director, or principal shareholder with excessive compensation, fees, or benefits that could lead to material financial loss to the entity.
As of December 31, 2017, the Company exceeded $15 billion in total assets, and the grandfather provisions applicable to its trust preferred securities no longer apply, and trust preferred securities are no longer included as Tier 1 capital. Trust preferred securities and qualifying subordinated debt are included as total Tier 2 capital.
As of December 31, 2017, the Company exceeded $15 billion in total assets and trust preferred securities are no longer included as Tier 1 capital. Trust preferred securities and qualifying subordinated debt are included as total Tier 2 capital.
This and other events make future regulations increasingly uncertain. Effect of Governmental Monetary Policies The FRB uses monetary policy tools to impact interest rates, credit market conditions and money market conditions, as well as to influence general economic conditions, including employment, market interest and inflation rates.
Effect of Governmental Monetary Policies The FRB uses monetary policy tools to impact interest rates, credit market conditions and money market conditions, as well as to influence general economic conditions, including employment, market interest and inflation rates.
Congress enacted the National Defense Authorization Act (the “NDAA”) that, among other provisions, made significant updates to the federal BSA/AML regulations that aim to eliminate the use of shell companies that facilitate the laundering of criminal proceeds.
Congress enacted the National Defense Authorization Act (“NDAA”) that, among other provisions, made significant updates to the federal BSA/AML regulations that aim to eliminate the use of shell companies that facilitate the laundering of criminal proceeds. The NDAA includes the Corporate Transparency Act (“CTA”), which requires the U.S.
Since 1990, we have completed 21 whole bank acquisitions, one trust company acquisition, five bank branch acquisitions, one bankruptcy (363) acquisition, four FDIC failed bank acquisitions and four Resolution Trust Corporation failed thrift acquisitions. The following summary provides additional details concerning our more recent acquisition activity. In April 2019, we completed the acquisition of Reliance Bancshares, Inc.
Since 1990, we have completed 21 whole bank acquisitions, one trust company acquisition, five bank branch acquisitions, one bankruptcy (363) acquisition, four Federal Deposit Insurance Corporation (“FDIC”) failed bank acquisitions and four Resolution Trust Corporation failed thrift acquisitions. The following summary provides additional details concerning our more recent acquisition activity.
The Company is currently evaluating the potential impact of the proposed rules and monitoring developments with respect thereto. 17 Pending Legislation Because of concerns relating to, among other things, competitiveness and the safety and soundness of the banking industry, governmental administrations, as well as Congress and state legislatures, often consider a number of wide-ranging proposals for altering the structure, regulation, and competitive relationships of the nation’s financial institutions and of those chartered in a particular state legislature’s jurisdiction.
Future Legislation and Regulation Because of concerns relating to, among other things, competitiveness and the safety and soundness of the banking industry, governmental administrations, as well as Congress and state legislatures, often consider a number of wide-ranging proposals for altering the structure, regulation, and competitive relationships of the nation’s financial institutions and of those chartered in a particular state legislature’s jurisdiction.
We acquired approximately $3.1 billion in assets and further strengthened our position in Texas. The systems conversion was completed in April 2022, at which time Spirit Bank merged into Simmons Bank. Merger and Acquisition Strategy Merger and acquisition activities have been an important part of the Company’s historical growth strategy.
The systems conversion was completed in April 2022, at which time Spirit Bank merged into Simmons Bank. Merger and Acquisition Strategy Merger and acquisition activities have been an important part of the Company’s historical growth strategy.
Simmons Bank also maintains a networking arrangement with a third-party broker-dealer that offers brokerage services to Simmons Bank customers, as well as a trust department that provides a variety of trust, investment, agency, and custodial services for individual and corporate clients (including, among others, administration of estates and personal trusts as well as management of investment accounts).
Simmons Bank also maintains a networking arrangement with a third-party broker-dealer that offers brokerage services to Simmons Bank customers, as well as a trust department that provides a variety of trust, investment, agency, and custodial services for individual and corporate clients (including, among others, administration of estates and personal trusts as well as management of investment accounts). 5 Additionally, Simmons First Insurance Services, Inc. and Simmons First Insurance Services of TN, LLC are wholly-owned subsidiaries of Simmons Bank and are insurance agencies that offer various lines of personal and corporate insurance coverage to individual and commercial customers.
Additionally, Simmons First Insurance Services, Inc. and Simmons First Insurance Services of TN, LLC are wholly-owned subsidiaries of Simmons Bank and are insurance agencies that offer various lines of personal and corporate insurance coverage to individual and commercial customers. 5 Community Banking, Commercial Banking and Wealth Strategy To both effectively compete for and service the needs of different types of customers, Simmons Bank now operates using three main groups: a community banking group (which generally focuses on retail, small-to-mid-size customer relationships plus mortgage lending), a commercial banking group (which generally focuses on larger, more complex customers with intricate or unique banking needs) and a wealth group (which generally focuses on serving investment and trust needs of consumers and businesses).
Community Banking, Commercial Banking and Wealth Strategy To both effectively compete for and service the needs of different types of customers, Simmons Bank now operates using three main groups: a community banking group (which generally focuses on retail, small-to-mid-size customer relationships plus mortgage lending), a commercial banking group (which generally focuses on larger, more complex customers, sometimes with intricate or unique banking needs) and a wealth group (which generally focuses on serving investment and trust needs of consumers and businesses).
In December 2021, the Financial Crimes Enforcement Network (“FinCEN”) issued the first of three planned rules, which rule was adopted to implement a national beneficial ownership reporting framework. In December 2023, FinCEN issued the second of the three planned rules, which rule was adopted to implement protocols for access to and disclosure of beneficial ownership information.
In December 2023, FinCEN issued the second of the three planned rules, which rule was adopted to implement protocols for access to and disclosure of beneficial ownership information.
In July 2024, the FDIC proposed significant revisions to the brokered deposit regulations, including significant expansions to the definition of “deposit broker,” and significantly narrowing the primary purpose exception to “deposit broker” status. The comment period on those proposed rules has closed.
In July 2024, the FDIC proposed significant revisions to the brokered deposit regulations, including significant expansions to the definition of “deposit broker,” and significantly narrowing the primary purpose exception to “deposit broker” status, but the FDIC withdrew the proposals during 2025.
Information sharing among financial institutions for the above purposes is encouraged by an exemption granted to complying financial institutions from the privacy provisions of the GLBA and other privacy laws. 15 Among other things, Simmons Bank is required to establish an anti-money laundering (“AML”) program which includes the designation of a BSA officer, the establishment and maintenance of BSA/AML training, the establishment and maintenance of BSA/AML policies and procedures, independent testing of the AML program, and compliance with customer due diligence requirements.
Among other things, Simmons Bank is required to establish an anti-money laundering (“AML”) program which includes the designation of a BSA officer, the establishment and maintenance of BSA/AML training, the establishment and maintenance of BSA/AML policies and procedures, independent testing of the AML program, and compliance with customer due diligence requirements.
Notwithstanding that federal banking agencies will not take action with respect to these enhanced prudential standards, the Company and its subsidiary bank continue to review their capital planning and risk management practices in connection with the regular supervisory processes of the FRB.
Notwithstanding that federal banking agencies will not take action with respect to these enhanced prudential standards, the Company and its subsidiary bank continue to review their capital planning and risk management practices in connection with the regular supervisory processes of the FRB. 17 Additionally, the Dodd-Frank Act established the CFPB and granted it supervisory authority over banks with total assets of more than $10 billion.
The EGRRCPA and the subsequently promulgated inter-agency agency rules have aimed at simplifying and tailoring certain requirements related to the Volcker Rule. 13 Brokered Deposits Section 29 of the FDIA and the FDIC regulations promulgated thereunder limit the ability of any bank to accept, renew or roll over any brokered deposit unless it is well capitalized or, with the FDIC’s approval, adequately capitalized.
Brokered Deposits Section 29 of the FDIA and the FDIC regulations promulgated thereunder limit the ability of any bank to accept, renew or roll over any brokered deposit unless it is well capitalized or, with the FDIC’s approval, adequately capitalized.
To the extent that a strategic merger and acquisition opportunity becomes of interest, we believe our community banking philosophy, access to capital and successful merger and acquisition history would position us as a purchaser of choice for a community and regional bank seeking a strong partner. 6 As consolidations continue to unfold in the banking industry, the management of risk is an important consideration in how the Company evaluates and consummates these transactions.
To the extent that a strategic merger and acquisition opportunity becomes of interest, we believe our community banking philosophy, access to capital and successful merger and acquisition history would position us as a purchaser of choice for a community and regional bank seeking a strong partner.
Further, pursuant to interpretive guidance issued under the GLBA and certain state laws, financial institutions are also generally required to notify customers of security breaches that result in unauthorized access to their nonpublic personal information.
Further, pursuant to interpretive guidance issued under the GLBA and certain state laws, financial institutions are also generally required to notify customers of security breaches that result in unauthorized access to their nonpublic personal information. The federal bank regulatory agencies also adopted rules to improve the sharing of information about cyber incidents that may affect the U.S. banking system.
The Company is headquartered in Pine Bluff, Arkansas, and had total consolidated assets of $26.88 billion, total consolidated loans of $17.01 billion, total consolidated deposits of $21.89 billion and equity capital of $3.53 billion, each as of December 31, 2024.
The Company is headquartered in Pine Bluff, Arkansas, and had total consolidated assets of $24.54 billion, total consolidated loans of $17.49 billion, total consolidated deposits of $20.18 billion and equity capital of $3.42 billion, each as of December 31, 2025.
As described above in the section titled Potential Enforcement Action for Bank Holding Companies and Banks , the FDIC may terminate deposit insurance upon a finding that an institution has engaged in unsafe and unsound practices, is in an unsafe or unsound condition to continue operations, or has violated any applicable law, regulation, rule, order or condition imposed by the FDIC.
As described above in the section titled Potential Enforcement Action for Bank Holding Companies and Banks , the FDIC may terminate deposit insurance upon a finding that an institution has engaged in unsafe and unsound practices, is in an unsafe or unsound condition to continue operations, or has violated any applicable law, regulation, rule, order or condition imposed by the FDIC. 14 In November 2023, the FDIC issued a final rule to implement a special assessment to recover losses to the DIF incurred as a result of recent bank failures and the FDIC’s use of the systemic risk exception to cover certain deposits that were otherwise uninsured.
The extent to which any such additional future assessments will impact our future deposit insurance expense is currently uncertain. 14 Community Reinvestment Act The Community Reinvestment Act of 1977 (“CRA”) requires that federal banking agencies evaluate the record of each financial institution in meeting the credit needs of the market areas they serve, including low and moderate-income (“LMI”) individuals and communities.
Community Reinvestment Act The Community Reinvestment Act of 1977 (“CRA”) requires that federal banking agencies evaluate the record of each financial institution in meeting the credit needs of the market areas they serve, including low and moderate-income individuals and communities.
We cannot predict the timing of any proposals or whether or in what form any proposals will be adopted or the extent to which our business, including our financial condition and results of operations, may be affected. For example, in February 2025, the CFPB staff was instructed to stop all rulemaking, public communications, litigation, examination and certain other activities.
We cannot predict the timing of any proposals or whether or in what form any proposals will be adopted or the extent to which our business, including our financial condition and results of operations, may be affected.
Federal law also requires the Company to act as a source of financial and managerial strength for our bank subsidiary and to commit resources to support that subsidiary. This support may be required by federal banking agencies even at times when a bank holding company may not have the resources to provide the support.
This support may be required by federal banking agencies even at times when a bank holding company may not have the resources to provide the support.
Simmons Bank is required to pay deposit insurance assessments to maintain the DIF. Because Simmons Bank’s assets exceed $10 billion, its deposit insurance assessment is based on a scoring system that examines the institution’s supervisory ratings and certain financial measures.
Because Simmons Bank’s assets exceed $10 billion, its deposit insurance assessment is based on a scoring system that examines the institution’s supervisory ratings and certain financial measures. The scoring system assesses risk measures to produce two scores, a performance score and a loss severity score, that are combined and converted to an initial assessment rate.
Federal Home Loan Bank of Dallas Simmons Bank is a member of the Federal Home Loan Bank of Dallas (“FHLB-Dallas”), which is one of 11 regional Federal Home Loan Banks that provide funding to their members for making housing loans as well as for affordable housing and community development loans.
Certain provisions of Regulation Z require creditors to make a reasonable and good faith determination based on verified and documented information that a consumer applying for a mortgage loan has a reasonable ability to repay the loan according to its terms. 16 Federal Home Loan Bank of Dallas Simmons Bank is a member of the Federal Home Loan Bank (“FHLB”) of Dallas (“FHLB-Dallas”), which is one of 11 regional Federal Home Loan Banks that provide funding to their members for making housing loans as well as for affordable housing and community development loans.
The Company continues to monitor the status of those proposed rules and FDIC action and statements with respect thereto. FDIC Deposit Insurance and Assessments Our customer deposit accounts are insured up to applicable limits by the FDIC’s Deposit Insurance Fund (“DIF”) up to $250,000 per separately insured depositor.
FDIC Deposit Insurance and Assessments Our customer deposit accounts are insured up to applicable limits by the FDIC’s Deposit Insurance Fund (“DIF”) up to $250,000 per separately insured depositor. Simmons Bank is required to pay deposit insurance assessments to maintain the DIF.
Loan Risk Assessment As part of our ongoing risk assessment and analysis, the Company utilizes credit policies and procedures, internal credit expertise and several internal layers of review.
We believe this experience positions us to successfully acquire and integrate banks to the extent a compelling strategic opportunity presents itself. 6 Loan Risk Assessment As part of our ongoing risk assessment and analysis, the Company utilizes credit policies and procedures, internal credit expertise and several internal layers of review.
Simmons Bank continues to be subject to the oversight of its other regulators with respect to matters outside the scope of the CFPB’s jurisdiction. The CFPB has broad rule-making, supervisory, examination and enforcement authority, as well as expanded data collecting and enforcement powers, all of which impact the operations of Simmons Bank.
The CFPB has broad rule-making, supervisory, examination and enforcement authority, as well as expanded data collecting and enforcement powers, all of which impact the operations of Simmons Bank. The current leadership of the CFPB has indicated intentions to rescind or revise many regulations, as well as to narrow its enforcement and supervision.
The systems conversions for both Landmark and Triumph Bank were completed in October 2021, at which time Landmark and Triumph Bank were merged into Simmons Bank. In April 2022, we completed the acquisition of Spirit of Texas Bancshares, Inc. (“Spirit”), headquartered in Conroe, Texas, including its wholly-owned bank subsidiary, Spirit of Texas Bank SSB (“Spirit Bank”).
In April 2022, we completed the acquisition of Spirit of Texas Bancshares, Inc. (“Spirit”), headquartered in Conroe, Texas, including its wholly-owned bank subsidiary, Spirit of Texas Bank SSB (“Spirit Bank”). We acquired approximately $3.1 billion in assets and further strengthened our position in Texas.
The scoring system assesses risk measures to produce two scores, a performance score and a loss severity score, that are combined and converted to an initial assessment rate. The FDIC has the ability to make discretionary adjustments to the total score based upon significant risk factors not adequately captured in the calculations.
The FDIC has the ability to make discretionary adjustments to the total score based upon significant risk factors not adequately captured in the calculations.
(“Triumph”), including its wholly-owned bank subsidiary, Triumph Bank, headquartered in Memphis, Tennessee. Landmark had total assets of $968.8 million, while Triumph provided us with $847.2 million in assets. These combined acquisitions allowed us to expand our existing footprint in Tennessee and to further enhance our scale in two of our key Tennessee growth markets – Memphis and Nashville.
In October 2021, we completed the acquisition of Landmark Community Bank (“Landmark”), headquartered in Collierville, Tennessee, as well as the acquisition of Triumph Bancshares, Inc. (“Triumph”), including its wholly-owned bank subsidiary, Triumph Bank, headquartered in Memphis, Tennessee. Landmark had total assets of $968.8 million, while Triumph provided us with $847.2 million in assets.
The process of merging or acquiring banking organizations is extremely complex; it requires a great deal of time and effort from both buyer and seller. The business, legal, operational, organizational, accounting and tax issues all must be addressed if the merger or acquisition is to be successful.
As consolidations continue to unfold in the banking industry, the management of risk is an important consideration in how the Company evaluates and consummates these transactions. The process of merging or acquiring banking organizations is extremely complex; it requires a great deal of time and effort from both buyer and seller.
The senior management teams of both the Company and Simmons Bank have extensive experience in acquiring banks, branches and deposits and post-acquisition integration of operations. We believe this experience positions us to successfully acquire and integrate banks to the extent a compelling strategic opportunity presents itself.
The business, legal, operational, organizational, accounting and tax issues all must be addressed if the merger or acquisition is to be successful. The senior management teams of both the Company and Simmons Bank have extensive experience in acquiring banks, branches and deposits and post-acquisition integration of operations.
Additionally, the Dodd-Frank Act established the CFPB and granted it supervisory authority over banks with total assets of more than $10 billion. Simmons Bank is subject to CFPB oversight with respect to its compliance with federal consumer financial laws.
Simmons Bank is subject to CFPB oversight with respect to its compliance with federal consumer financial laws. Simmons Bank continues to be subject to the oversight of its other regulators with respect to matters outside the scope of the CFPB’s jurisdiction.
Removed
(“Reliance”), headquartered in Des Peres, Missouri (part of the greater St. Louis metropolitan area), including its wholly-owned bank subsidiary, Reliance Bank. We acquired approximately $1.5 billion in assets and added 22 branches to the Simmons Bank footprint, substantially enhancing our retail presence within the St. Louis market area.
Added
These combined acquisitions allowed us to expand our existing footprint in Tennessee and to further enhance our scale in two of our key Tennessee growth markets – Memphis and Nashville. The systems conversions for both Landmark and Triumph Bank were completed in October 2021, at which time Landmark and Triumph Bank were merged into Simmons Bank.
Removed
The systems conversion was completed in April 2019, at which time Reliance Bank was merged into Simmons Bank. In October 2019, we completed the acquisition of The Landrum Company (“Landrum”), headquartered in Columbia, Missouri, including its wholly-owned bank subsidiary, Landmark Bank. We acquired approximately $3.4 billion in assets and further strengthened our position in Missouri, Oklahoma and Texas.
Added
We also must file annual, quarterly and other periodic reports with, and comply with other regulations of, the SEC, as well as the rules of the Nasdaq Global Select Market. Federal law also requires the Company to act as a source of financial and managerial strength for our bank subsidiary and to commit resources to support that subsidiary.
Removed
The systems conversion was completed in February 2020, at which time Landmark Bank merged into Simmons Bank. In connection with the systems conversion, we closed five existing Landmark Bank branches. In October 2021, we completed the acquisition of Landmark Community Bank (“Landmark”), headquartered in Collierville, Tennessee, as well as the acquisition of Triumph Bancshares, Inc.
Added
The EGRRCPA and the subsequently promulgated inter-agency rules have aimed at simplifying and tailoring certain requirements related to the Volcker Rule. 13 Real Estate Lending Standards and Guidance The federal regulatory agencies have adopted regulations setting forth standards for extensions of credit that are secured by real estate.
Removed
In January 2025, the Acting Chairman of the FDIC issued a statement indicating that the FDIC may focus on withdrawing those proposed rules during 2025.
Added
Under these regulations, the Bank must adopt and maintain written policies establishing appropriate limits and standards for extensions of credit that are secured by real estate. These policies must establish loan portfolio diversification standards, prudent underwriting standards (including loan-to-value limits) that are clear and measurable, loan administration procedures and documentation, approval and reporting requirements.
Removed
These proposed rules may also be subject to the presidential memorandum entitled “Regulatory Freeze Pending Review,” which directs federal agencies to (1) not propose or issue any rules until they are reviewed and approved by a department or agency head appointed by the President, (2) immediately withdraw any unpublished rules to allow for the review by a department or agency head as described above, and (3) consider postponing for 60 days from the date of the executive order the effective date for any rules that have been published in the Federal Register, or any rules that have been issued but have not taken effect, to allow for review of any questions of fact, law, or policy.
Added
The federal regulatory agencies have also jointly issued guidance on “Concentrations in Commercial Real Estate Lending,” which defines commercial real estate (“CRE”) loans as exposures secured by raw land, land development and construction (including 1-4 family residential construction), multi-family property, and non-farm nonresidential property where the primary or a significant source of repayment is derived from rental income or the proceeds of the sale, refinancing, or permanent financing of the property.
Removed
In November 2023, the FDIC issued a final rule to implement a special assessment to recover losses to the DIF incurred as a result of recent bank failures and the FDIC’s use of the systemic risk exception to cover certain deposits that were otherwise uninsured.
Added
The guidance requires that appropriate processes be in place to identify, monitor and control risks associated with real estate lending concentrations.
Removed
In October 2023, the federal prudential regulatory agencies adopted substantial revisions to the regulations implementing the CRA. The legality of these CRA regulations is being challenged and a preliminary injunction against enforcing new rules implementing the modified CRA regulations has been granted.
Added
If a concentration is present, management must employ heightened risk management practices that address key elements, including board and management oversight and strategic planning, portfolio management, development of underwriting standards, risk assessment and monitoring through market analysis and stress testing, and maintenance of increased capital levels as needed to support the level of CRE lending.
Removed
In addition, the updated CRA regulations may be impacted by the presidential memorandum entitled “Regulatory Freeze Pending Review” described above. The Company continues to assess the impact of the adopted changes to the CRA regulations.
Added
The guidance states that the following metrics may indicate a concentration of CRE loans, but that these metrics are neither limits nor a safe harbor: (1) total reported loans for construction, land development, and other land represent 100% or more of total risk-based capital; or (2) total reported loans secured by multi-family properties, nonfarm non-residential properties (excluding those that are owner-occupied), and loans for construction, land development, and other land represent 300% or more of total risk-based capital and the bank’s CRE loan portfolio has increased 50% or more during the prior 36 months.
Removed
Although these laws and regulations impose compliance costs and create obligations and, in some cases, reporting obligations, and compliance with all of the laws, regulations, and reporting obligations may require significant resources of the Company and our subsidiary bank, these laws and regulations do not materially affect our products, services or other business activities.
Added
The FDIC approved an interim final rule in 2025 to amend certain aspects of the FDIC’s collection activities, including, among other things, reducing the rate at which the special assessment will be charged in the eighth collection quarter from 3.36 basis points to 2.97 basis points.
Removed
A subsequent rulemaking is expected to update the customer due diligence requirements that apply to the Company and the Bank to be consistent with this framework. The Company and the Bank continue to monitor legislative, regulatory and supervisory developments related thereto.
Added
A banking organization must notify its primary federal regulator of certain significant “computer-security incidents” that may pose a threat to the stability of the U.S. financial sector as soon as possible and no later than 36 hours after the banking organization determines that a notification incident has occurred.
Removed
Certain provisions of Regulation Z require creditors to make a reasonable and good faith determination based on verified and documented information that a consumer applying for a mortgage loan has a reasonable ability to repay the loan according to its terms.
Added
A bank service provider must also notify affected banking organization customers as soon as possible when the provider determines that it has experienced a computer-security incident that has materially disrupted or degraded or is reasonably likely to materially disrupt or degrade covered services provided to such banking organization customers for four or more hours.
Removed
For example, in January 2024, the CFPB proposed rules that would subject (with certain exceptions) overdraft services provided by financial institutions with more than $10 billion in assets to the provisions of the Truth in Lending Act and other consumer financial protection laws.
Added
Information sharing among financial institutions for the above purposes is encouraged by an exemption granted to complying financial institutions from the privacy provisions of the GLBA and other privacy laws.
Added
Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”) to, among other things, establish a national beneficial ownership information registry. In December 2021, FinCEN issued the first of three planned rules, which rule was adopted to implement a national beneficial ownership reporting framework.
Added
In September 2022, FinCEN issued the final Beneficial Ownership Information Reporting Requirements rule (“BOI Reporting Rule”), which requires certain “reporting companies” to file beneficial ownership information reports with FinCEN that will be stored in the national beneficial ownership registry and will detail the reporting company’s beneficial owners.
Added
In March 2025, FinCEN issued an interim final rule removing the requirement for U.S. companies and U.S. persons to report such beneficial ownership information and indicated that it would issue a modified set of regulations regarding beneficial ownership disclosures.
Added
Given the potential of new regulations from FinCEN, as well as ongoing litigation with respect to the CTA, it is not clear what impact the CTA and BOI Reporting Rule will have on the Bank. The Company and the Bank continue to monitor legislative, regulatory and supervisory developments related thereto.
Added
At December 31, 2025, Simmons Bank’s total investment in FHLB-Dallas was $25.3 million.
Added
We cannot currently predict the nature and timing of future developments that may potentially impact CFPB rules, proposals, enforcement and supervision.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

55 edited+30 added−13 removed154 unchanged
Biggest changeAdverse events or circumstances could impact the recoverability of these intangible assets including loss of core deposits, significant losses of customer accounts and/or balances, increased competition or adverse changes in the economy. To the extent these intangible assets are deemed unrecoverable, a non-cash impairment charge would be recorded, which could have a material adverse effect on our results of operations.
Biggest changeIdentifiable intangible assets other than goodwill consist of core deposit intangibles, books of business, and other intangible assets. Adverse events or circumstances could impact the recoverability of these intangible assets including loss of core deposits, significant losses of customer accounts and/or balances, increased competition or adverse changes in the economy.
Our ability to pay dividends depends on the following factors, among others: • We may not have sufficient earnings since our primary source of income, the payment of dividends to us by our subsidiary bank, is subject to federal and state laws that limit the ability of the bank to pay dividends, and recently we have had to apply for state regulatory approval for certain dividends paid by the Bank to the Company; • FRB policy requires bank holding companies to pay cash dividends on common stock only out of net income available over the past year and only if prospective earnings retention is consistent with the organization’s expected future needs and financial condition; and • Our Board of Directors may determine that, even though funds are available for dividend payments, retaining the funds for internal uses, such as expansion of our operations, is a better strategy.
Our ability to pay dividends depends on the following factors, among others: • We may not have sufficient earnings since our primary source of income, the payment of dividends to us by our subsidiary bank, is subject to federal and state laws that limit the ability of the bank to pay dividends, and recently we have had to apply for state and federal regulatory approval for certain dividends paid by the Bank to the Company; • FRB policy requires bank holding companies to pay cash dividends on common stock only out of net income available over the past year and only if prospective earnings retention is consistent with the organization’s expected future needs and financial condition; and • Our Board of Directors may determine that, even though funds are available for dividend payments, retaining the funds for internal uses, such as expansion of our operations, is a better strategy.
Similarly, construction and development loan pose heightened risk when compared to residential real estate loans due to, for example, the fact that repayment often depends on successful completion of the construction or development project and subsequent financing. Additionally, commercial and industrial loans are often dependent upon the successful operation of the borrower’s business.
Similarly, construction and development loans pose heightened risk when compared to residential real estate loans due to, for example, the fact that repayment often depends on successful completion of the construction or development project and subsequent financing. Additionally, commercial and industrial loans are often dependent upon the successful operation of the borrower’s business.
Due to the changing conditions in the national economy and uncertainty regarding the rate of inflation and the impacts of governmental policies to combat elevated inflation, we cannot predict with certainty how future changes in interest rates, deposit levels and loan demand will impact our business and profitability.
Due to the volatility and changing conditions in the national economy and uncertainty regarding the rate of inflation and the impacts of governmental policies to combat elevated inflation, we cannot predict with certainty how future changes in interest rates, deposit levels and loan demand will impact our business and profitability.
We use a systematic methodology to determine the allowance for credit losses (“ACL”) for investment securities held to maturity. The ACL is a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected on the held-to-maturity portfolio.
We use a systematic methodology to determine the allowance for credit losses (“ACL”) for any investment securities held to maturity. The ACL is a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected on any held-to-maturity portfolio.
The transition from LIBOR has resulted in and could continue to result in added costs and employee efforts and could present additional risk. 19 Since alternative reference rates are calculated differently than LIBOR, payments under contracts referencing new alternative reference rates will differ from those referencing LIBOR.
The transition from LIBOR has resulted in and could continue to result in added costs and employee efforts and could present additional risk. Since alternative reference rates are calculated differently than LIBOR, payments under contracts referencing new alternative reference rates will differ from those referencing LIBOR.
If we are unable to continue to sell conforming loans to the agencies, our ability to fund, and thus originate, additional mortgage loans may be adversely affected, which would adversely affect our results of operations. 20 Sales of our loans are subject to a variety of risks.
If we are unable to continue to sell conforming loans to the agencies, our ability to fund, and thus originate, additional mortgage loans may be adversely affected, which would adversely affect our results of operations. Sales of our loans are subject to a variety of risks.
We face strong competition from other banks, bank holding companies, and financial services companies. In the markets we serve, the businesses of banking and financial services are fiercely competitive. Many of our competitors offer the same, or similar, products and services within our market areas.
We face strong competition from other banks, bank holding companies, financial services companies and nonbank competitors. In the markets we serve, the businesses of banking and financial services are fiercely competitive. Many of our competitors offer the same, or similar, products and services within our market areas.
Our inability to overcome these risks could have an adverse effect on our ability to achieve our business and growth strategy and maintain or increase our market value and profitability. The value of our goodwill and other intangible assets may decline in the future.
Our inability to overcome these risks could have an adverse effect on our ability to achieve our business and growth strategy and maintain or increase our market value and profitability. 25 The value of our goodwill and other intangible assets may decline in the future.
As a result, we are unable to predict the ultimate impact of future legislation or regulation, including the extent to which it could increase costs or limit our ability to pursue business opportunities in an efficient manner, or otherwise adversely affect our business, financial condition and results of operations. 28 Our failure to comply with applicable banking laws and regulations could result in significant monetary penalties and losses, restrict our ability to execute our growth strategy, and have other material adverse impacts on our business.
As a result, we are unable to predict the ultimate impact of future legislation or regulation, including the extent to which it could increase costs or limit our ability to pursue business opportunities in an efficient manner, or otherwise adversely affect our business, financial condition and results of operations. 30 Our failure to comply with applicable banking laws and regulations could result in significant monetary penalties and losses, restrict our ability to execute our growth strategy, and have other material adverse impacts on our business.
We, therefore, may not be able to fully recover the outstanding balance of a loan in the event of its default if the real estate serving as collateral has declined in value from its original estimate, which could have a material adverse impact on our business, financial condition or results of operations. 21 Nonperforming assets take significant time to resolve and may adversely affect our business, results of operations and financial condition.
We, therefore, may not be able to fully recover the outstanding balance of a loan in the event of its default if the real estate serving as collateral has declined in value from its original estimate, which could have a material adverse impact on our business, financial condition or results of operations. 22 Nonperforming assets take significant time to resolve and may adversely affect our business, results of operations and financial condition.
Unfavorable or uncertain economic and market conditions can be caused by declines in economic growth, business activity or investor or business confidence; limitations on the availability or increases in the cost of credit and capital; increases in inflation or interest rates; natural disasters; or a combination of these or other factors. 22 The business environment in the states where we operate could deteriorate and adversely affect the credit quality of our loans and our results of operations and financial condition.
Unfavorable or uncertain economic and market conditions can be caused by declines in economic growth, business activity or investor or business confidence; limitations on the availability or increases in the cost of credit and capital; increases in inflation or interest rates; natural disasters; or a combination of these or other factors. 23 The business environment in the states where we operate could deteriorate and adversely affect the credit quality of our loans and our results of operations and financial condition.
If we are unable to effectively compete for customers, we may lose loan and deposit market share, as well as experience reductions in net interest margin, fee income, and profitability, and our business, financial condition, and results of operations could be adversely affected. 23 Changes in service delivery channels and emerging technologies pose a competitive risk.
If we are unable to effectively compete for customers, we may lose loan and deposit market share, as well as experience reductions in net interest margin, fee income, and profitability, and our business, financial condition, and results of operations could be adversely affected. 24 Changes in service delivery channels and emerging technologies pose a competitive risk.
Compliance failures may also result in litigation instituted by private parties, including consumers, which could result in material adverse impacts on our business. We are subject to litigation in the ordinary course of our business, and adverse rulings, judgements, settlements, and other outcomes of such litigation, as well as our associated legal expenses, may adversely affect our results.
Compliance failures may also result in litigation instituted by private parties, including consumers, which could result in material adverse impacts on our business. We are subject to litigation in the ordinary course of our business, and adverse rulings, judgments, settlements, and other outcomes of such litigation, as well as our associated legal expenses, may adversely affect our results.
If we were to become subject to significant environmental liabilities, it could have a material adverse effect on our results of operations and financial condition. 29 We may be subject to allegations of intellectual property infringement or may fail to effectively protect our own intellectual property rights.
If we were to become subject to significant environmental liabilities, it could have a material adverse effect on our results of operations and financial condition. 31 We may be subject to allegations of intellectual property infringement or may fail to effectively protect our own intellectual property rights.
In making certain of these loans, we rely on estimates concerning the value of the real estate provided by independent appraisers. However, these appraisals are only estimates of value, and mistakes of fact or judgement on the part of the appraiser could adversely affect the reliability of their appraisals.
In making certain of these loans, we rely on estimates concerning the value of the real estate provided by independent appraisers. However, these appraisals are only estimates of value, and mistakes of fact or judgment on the part of the appraiser could adversely affect the reliability of their appraisals.
In addition, such changes could influence the interest we receive on loans and securities and the amount of interest we pay on deposits. If the interest rates we pay on deposits increases at a faster rate than the interest we receive on loans and other investments, then our net interest income could be adversely affected.
Such changes could influence the interest we receive on loans and securities and the amount of interest we pay on deposits. If the interest rates we pay on deposits increases at a faster rate than the interest we receive on loans and other investments, then our net interest income could be adversely affected.
We monitor the held-to-maturity portfolio on a quarterly basis to determine whether a valuation account needs to be recorded. Because of changing economic and market conditions affecting issuers, we may be required to recognize expected credit losses on securities in future periods, which could have a material adverse effect on our business, financial condition or results of operations.
We would monitor any held-to-maturity portfolio on a quarterly basis to determine whether a valuation account needs to be recorded. Because of changing economic and market conditions affecting issuers, we may be required to recognize expected credit losses on securities in future periods, which could have a material adverse effect on our business, financial condition or results of operations.
Investments in shares of the Company’s common stock or other securities, therefore, are subject to investment risk, including the possible loss of principal. 30 Anti-takeover provisions could negatively impact our shareholders.
Investments in shares of the Company’s common stock or other securities, therefore, are subject to investment risk, including the possible loss of principal. 32 Anti-takeover provisions could negatively impact our shareholders.
Our methodology for establishing the appropriateness of the allowance for credit losses inherently involves a high degree of subjectivity and judgment and requires management to make significant estimates and predictions regarding credit risks, future market conditions, and other factors, all of which are subject to material changes and may not necessarily be in our control.
Our methodology for establishing the appropriateness of the allowance for credit losses inherently involves a high degree of subjectivity and difficult judgments, requiring management to make significant estimates and predictions regarding credit risks, future market conditions, and other interrelated factors, all of which are subject to material changes and may not necessarily be in our control.
Business - Supervision and Regulation.” Various agencies, including, without limitation, the FRB, CFPB, Arkansas State Bank Department, and the Department of Justice, have the ability to institute proceedings to address compliance failures.
Various agencies, including, without limitation, the FRB, CFPB, Arkansas State Bank Department, and the Department of Justice, have the ability to institute proceedings to address compliance failures.
While these steps by the banking regulators helped customers’ perception of the financial markets and financial services industry generally, a number of factors, including further bank closures, or deposit outflows (and particularly sudden deposit outflows) from banks, may drive additional deposit outflows, increased borrowing and funding costs, and increased competition for liquidity, any of which could have a material adverse impact on our financial performance or financial condition.
While steps by the banking regulators to support liquidity in the industry, including following certain significant bank closures during 2023, have helped customers’ perception of the financial markets and financial services industry generally, a number of factors, including further bank closures, or deposit outflows (and particularly sudden deposit outflows) from banks, may drive additional deposit outflows, increased borrowing and funding costs, and increased competition for liquidity, any of which could have a material adverse impact on our financial performance or financial condition.
Liquidity is a critical component of our business. To ensure adequate liquidity to fund our operations, we rely heavily on our ability to generate deposits and effectively manage both the repayment of loans and the maturity schedules of our investment securities.
To ensure adequate liquidity to fund our operations, we rely heavily on our ability to generate deposits and effectively manage both the repayment of loans and the maturity schedules of our investment securities.
The resulting increased competition could result in the loss of fee income and customer deposits, which could negatively impact our financial condition, results of operations, and liquidity. It could also require additional, costly investments in technology to remain competitive.
The resulting increased competition as trends toward digital financial transactions have accelerated could result in the loss of fee income and customer deposits, which could negatively impact our financial condition, results of operations, and liquidity. It could also require additional, costly investments in technology to remain competitive.
These “denial-of-service” attacks have not breached our data security systems, but require substantial resources to defend, and may affect customer satisfaction and behavior. 26 Despite our efforts and those of our third party service providers to ensure the integrity of our systems, it is possible that we may not be able to anticipate or to implement effective preventive measures against all security breaches of these types, especially because the techniques used change frequently or are not recognized until launched, and because security attacks can originate from a wide variety of sources, including persons who are involved with organized crime or associated with external service providers or who may be linked to terrorist organizations or hostile foreign governments.
Despite our efforts and those of our third party service providers to ensure the integrity of our systems, it is possible that we may not be able to anticipate or to implement effective preventive measures against all security breaches of these types, especially because the techniques used change frequently or are not recognized until launched, and because security attacks can originate from a wide variety of sources, including persons who are involved with organized crime or associated with external service providers or who may be linked to terrorist organizations or hostile foreign governments.
If our risk management framework is not effective, we could suffer unexpected losses and become subject to litigation, negative regulatory consequences, or reputational damage among other adverse consequences, which could materially adversely affect our business, financial condition, results of operations, and prospects.
If our risk management framework is not effective, we could suffer unexpected losses and become subject to litigation, negative regulatory consequences, or reputational damage among other adverse consequences, which could materially adversely affect our business, financial condition, results of operations, and prospects. Our business is heavily reliant on a variety of third-party service providers.
It is critical that our internal controls, disclosure controls and procedures, and corporate governance and operational policies and procedures be effective in order to provide assurance that our financial reports and disclosures are materially accurate.
Our controls, policies and procedures may fail, or our employees may not adhere to them. It is critical that our internal controls, disclosure controls and procedures, and corporate governance and operational policies and procedures be effective in order to provide assurance that our financial reports and disclosures are materially accurate.
We maintain an enterprise risk management program that is designed to identify, assess, mitigate, monitor, and report the risks that we face. These risks include: strategic, credit, market (including interest-rate, capital, and liquidity), operational, regulatory (compliance), legal, and technology.
Our risk-management framework may not be effective in mitigating risks and/or losses. We maintain an enterprise risk management program that is designed to identify, assess, mitigate, monitor, and report the risks that we face. These risks include: strategic, credit, market (including interest-rate, capital, and liquidity), operational, regulatory (compliance), legal, and technology.
Our business is heavily reliant on a variety of third-party service providers. We rely on a large number of vendors to provide products and services that we need for our day-to-day operations, particularly in the areas of loan and deposit operations, information technology, and security.
We rely on a large number of vendors to provide products and services that we need for our day-to-day operations, particularly in the areas of loan and deposit operations, information technology, and security.
Failure to successfully manage these risks in the development and implementation of new lines of business and/or new products or services could have a material adverse effect on our business and, in turn, our financial condition and results of operations.
Failure to successfully manage these risks in the development and implementation of new lines of business and/or new products or services could have a material adverse effect on our business and, in turn, our financial condition and results of operations. Recently, the financial services industry has experienced rapid developments in artificial intelligence, including agentic artificial intelligence.
However, there can be no assurance that these underwriting and monitoring procedures will reduce these risks, and the inability to properly manage our credit risk could have a material adverse effect on our business, which, in turn, could impact our financial condition and results of operations. Deteriorating credit quality in our credit card portfolio may adversely impact us.
However, there can be no assurance that these underwriting and monitoring procedures will reduce these risks, and the inability to properly manage our credit risk could have a material adverse effect on our business, which, in turn, could impact our financial condition and results of operations. We may not maintain an appropriate allowance for credit losses.
Our investment securities portfolio could decline in value and we may incur losses as a result of interest rate changes and changes in issuer credit quality or the strength of the associated collateral. As of December 31, 2024, we owned $6.17 billion of investment securities, which included $3.64 billion in held-to-maturity securities and $2.53 billion in available for sale securities.
Our investment securities portfolio could decline in value and we may incur losses as a result of interest rate changes and changes in issuer credit quality or the strength of the associated collateral. As of December 31, 2025, we owned $3.27 billion in available-for-sale securities.
If our security systems were penetrated or circumvented, it could cause serious negative consequences for us, including significant disruption of our operations, misappropriation of our confidential information or that of our customers, or damage our computers or systems and those of our customers and counterparties, and could result in violations of applicable privacy and other laws, financial loss to us or to our customers, loss of confidence in our security measures, customer dissatisfaction, significant litigation exposure, and harm to our reputation, all of which could have a material adverse effect on us.
If our security systems were penetrated or circumvented, it could cause serious negative consequences for us, including significant disruption of our operations, misappropriation of our confidential information or that of our customers, or damage our computers or systems and those of our customers and counterparties, and could result in violations of applicable privacy and other laws, financial loss to us or to our customers, loss of confidence in our security measures, customer dissatisfaction, significant litigation exposure, and harm to our reputation, all of which could have a material adverse effect on us. 28 Additionally, as cyber-attacks continue to evolve, we may be required to expend significant additional resources to continue to modify or enhance our protective measures or to investigate and remediate any information security vulnerabilities or incidents.
Many circumstances could require us to seek additional capital, such as: • faster than anticipated growth; • reduced earning levels; • operating losses; • changes in economic conditions; • revisions in regulatory requirements; or • additional acquisition opportunities.
Federal and state regulatory authorities require us and our subsidiary bank to maintain adequate levels of capital to support our operations. Many circumstances could require us to seek additional capital, such as: • faster than anticipated growth; • reduced earning levels; • operating losses; • changes in economic conditions; • revisions in regulatory requirements; or • additional acquisition opportunities.
Errors or mistakes in these activities (including human error and systems error), as well as other failures to mitigate operational risks, can have adverse consequences, including exposing us to liability and loss and, in the case of providing services to our customers, preventing us from receiving certain contractual protections. 27 Accounting standards periodically change, and the application of our accounting policies and methods may require management to make estimates about matters that are uncertain.
Errors or mistakes in these activities (including human error and systems error), as well as other failures to mitigate operational risks, can have adverse consequences, including exposing us to liability and loss and, in the case of providing services to our customers, preventing us from receiving certain contractual protections.
On a quarterly basis, we analyze whether there has been a decline in fair value below the amortized cost basis of our available for sale investment securities to determine whether there is a credit loss associated with the decline in fair value.
For available-for-sale securities, the unrealized gains and losses are recorded in equity, net of tax, in accumulated other comprehensive income (“AOCI”). 19 On a quarterly basis, we analyze whether there has been a decline in fair value below the amortized cost basis of our available for sale investment securities to determine whether there is a credit loss associated with the decline in fair value.
Our businesses are dependent on our ability and the ability of our third-party service providers to process, record and monitor a large number of transactions. If the financial, accounting, data processing or other operating systems and facilities fail to operate properly, become disabled, experience security breaches or have other significant shortcomings, our results of operations could be materially, adversely affected.
If the financial, accounting, data processing or other operating systems and facilities fail to operate properly, become disabled, experience security breaches or have other significant shortcomings, our results of operations could be materially, adversely affected.
Certain financial institutions in the United States have also experienced attacks from technically sophisticated and well-resourced third parties that were intended to disrupt normal business activities by making internet banking systems inaccessible to customers for extended periods.
Certain financial institutions in the United States have also experienced attacks from technically sophisticated and well-resourced third parties that were intended to disrupt normal business activities by making internet banking systems inaccessible to customers for extended periods. These “denial-of-service” attacks have not breached our data security systems, but require substantial resources to defend, and may affect customer satisfaction and behavior.
As such, the models and estimations may not be effective in identifying and managing risks, which could adversely impact our financial condition and results of operations. Inadequate models may also result in compliance failures, which could lead to increased scrutiny by our regulators. 25 Our risk-management framework may not be effective in mitigating risks and/or losses.
We also rely on model inputs that are provided by third parties which have similar risks. As such, the models and estimations may not be effective in identifying and managing risks, which could adversely impact our financial condition and results of operations. Inadequate models may also result in compliance failures, which could lead to increased scrutiny by our regulators.
As of December 31, 2024, we had $1.3 billion of goodwill and $97.2 million of other intangible assets.
As of December 31, 2025, we had $1.32 billion of goodwill and $84.4 million of other intangible assets.
Significant portions of our loan portfolio include commercial real estate, construction and development, and commercial and industrial loans, each of which presents heightened lending risks. Our commercial loan portfolio includes, in significant part, commercial real estate loans, construction and development loans, and commercial and industrial loans.
Our commercial loan portfolio includes, in significant part, commercial real estate loans, construction and development loans, and commercial and industrial loans.
There is no guarantee that the agencies will not materially limit their purchases of conforming loans due to capital constraints, a change in the criteria for conforming loans or other factors.
We rely, in part, on the agencies to purchase loans meeting their requirements to reduce our credit risk and to provide funding for additional loans we desire to originate. There is no guarantee that the agencies will not materially limit their purchases of conforming loans due to capital constraints, a change in the criteria for conforming loans or other factors.
Also, changes in our deposit mix and growth could adversely affect our profitability and the ability to expand our loan portfolio, as well as our liquidity and funding mix. 18 During 2024 and previous recent years, in response to rising market interest rates, our cost of funds has increased due to customer migration from lower-cost to higher-cost deposit accounts, including interest-bearing transaction accounts and time deposits, which has negatively impacted our cost of funds and net interest margin.
In recent years, in response to rising market interest rates, our cost of funds has increased due to customer migration from lower-cost to higher-cost deposit accounts, including interest-bearing transaction accounts and time deposits, which has negatively impacted our cost of funds and net interest margin.
We continue to experience fraud attempts and losses through, for example, deposit fraud (such as wire fraud and check fraud) and loan fraud. Fraud has also arisen from the misconduct of our employees. The methods used to perpetrate and combat fraud continue to evolve, particularly as advances in technology occur.
Fraud is a major, and increasing, operational risk, particularly for financial institutions. We continue to experience fraud attempts and losses through, for example, deposit fraud (such as wire fraud and check fraud) and loan fraud. Fraud has also arisen from the misconduct of our employees.
While we maintain a vendor management program designed to assist in the oversight and monitoring of our third-party service providers, there can be no assurance that we will not experience service-related issues associated with our vendors. Our controls, policies and procedures may fail, or our employees may not adhere to them.
While we maintain a vendor management program designed to assist in the oversight and monitoring of our third-party service providers, there can be no assurance that we will not experience service-related issues associated with our vendors. 27 We may not be able to raise the additional capital we need to grow and, as a result, our ability to expand our operations could be materially impaired.
Risks Related to Our Business, Industry, and Markets Our business, financial condition, and results of operations could be adversely affected by developments impacting the financial services industry, such as recent bank failures or concerns involving liquidity.
Risks Related to Our Business, Industry, and Markets Our business, financial condition, results of operations and liquidity could be adversely affected by developments impacting the financial services industry. Our financial performance and liquidity are highly dependent on conditions in the financial services industry.
If we were to conclude that a future write-down of our goodwill is necessary, we would record the appropriate charge, which could have a material adverse effect on our results of operations. 24 Identifiable intangible assets other than goodwill consist of core deposit intangibles, books of business, and other intangible assets.
Future regulatory actions could also have a material impact on assessments of goodwill for impairment. If we were to conclude that a future write-down of our goodwill is necessary, we would record the appropriate charge, which could have a material adverse effect on our results of operations.
For these reasons and others, these types of loans present heightened lending risks that, if realized, may materially and adversely affect our business, financial condition or results of operations.
For these reasons and others, these types of loans present heightened lending risks that, if realized, may materially and adversely affect our business, financial condition or results of operations. We rely on the mortgage secondary market from time to time to provide liquidity. We sell certain mortgage loans we originate to certain agencies and other purchasers.
Risks Related to the Company’s Operations We are subject to fraud risk, which could have a material adverse effect on our business and results of operations. Fraud is a major, and increasing, operational risk, particularly for financial institutions.
Any of these risk could adversely affect our business, expose us to liability or other adverse legal or regulatory consequences, or otherwise adversely affect our financial results. 26 Risks Related to the Company’s Operations We are subject to fraud risk, which could have a material adverse effect on our business and results of operations.
While we seek to be vigilant in the prevention, detection, and remediation of fraud events, some fraud loss is unavoidable, and the risk of major fraud loss cannot be eliminated. Our models and estimations may be inadequate, which could lead to significant losses and regulatory scrutiny.
The methods used to perpetrate and combat fraud continue to evolve, particularly as advances in technology occur. While we seek to be vigilant in the prevention, detection, and remediation of fraud events, some fraud loss is unavoidable, and the risk of major fraud loss cannot be eliminated.
If the Company were required to sell such securities, including to meet liquidity needs, the Company would realize any previously unrealized losses which could adversely impact the Company’s financial condition and results of operations. A lack of liquidity could impair our ability to fund our business and thereby adversely affect our financial condition and results of operations.
A lack of liquidity could impair our ability to fund our business and thereby adversely affect our financial condition and results of operations. Liquidity is a critical component of our business.
Changes in the method pursuant to which benchmark rates are determined, as well as the discontinuance and replacement of reference rates, could adversely impact our business and results of operations. Certain interest rate benchmarks, including the London Interbank Offered Rate (“LIBOR”), have, over the course of recent years, been the subject of national and international reform.
Certain interest rate benchmarks, including the London Interbank Offered Rate (“LIBOR”), have, over the course of recent years, been the subject of national and international reform. For example, during 2023, the publication of LIBOR rates ceased.
While we rely on different sources of funding to meet potential liquidity needs, our business strategies are largely based on access to funding from customer deposits and supplemental funding provided by wholesale or other secondary liquidity sources.
Our business strategies are largely based on access to funding from customer deposits and supplemental funding provided by wholesale or other secondary liquidity sources. Events in the financial services industry can cause general uncertainty and concern regarding the adequacy of liquidity in the financial services industry generally, for example following certain significant bank closures during 2023.
Damage to our reputation could significantly harm our business. Our ability to attract and retain customers, employees, and acquisition partners is influenced by our reputation.
To the extent these intangible assets are deemed unrecoverable, a non-cash impairment charge would be recorded, which could have a material adverse effect on our results of operations. Damage to our reputation could significantly harm our business. Our ability to attract and retain customers, employees, and acquisition partners is influenced by our reputation.
Risks Related to the Company’s Lending Activities The mismanagement of our credit risks could result in serious harm to our business.
Risks Related to the Company’s Lending Activities Our lending activities expose us to a range of credit risks, which could adversely affect our business, financial condition, and results of operations.
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For available-for-sale securities, the unrealized gains and losses are recorded in equity, net of tax, in accumulated other comprehensive income (“AOCI”).
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Also, changes in our deposit mix and growth could adversely affect our profitability and the ability to expand our loan portfolio, as well as our liquidity and funding mix.
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As a result of fluctuations in interest rates, the market value of previously issued debt securities in the held-to-maturity portion of our securities portfolio has declined significantly, resulting in unrealized losses.
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We may not be able to maintain a strong core deposit base or access other low-cost funding sources. We rely on bank deposits to be a low cost and stable source of funding for our business. In addition, our future growth will largely depend on our ability to maintain and grow a strong core deposit base.
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For example, during 2023, the publication of LIBOR rates ceased.
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If we are unable to continue to attract and retain core deposits, to obtain third party financing on favorable terms, or to have access to interbank or other liquidity sources, we may not be able to grow our assets as quickly.
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We have a sizeable consumer credit card portfolio, and, among other things, the amount of net charge-offs associated with it could worsen.
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Core deposit levels may be affected by various industry factors, including general interest rate levels, returns available to customers on alternative investments, conditions in the financial services industry specifically and general economic conditions that impact the amount of liquidity in the economy and savings levels, and also by factors that impact customers’ perception of our financial condition and capital and liquidity levels.
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While we continue to experience a better performance with respect to net charge-offs than the national average in our credit card portfolio, our net charge-offs were 2.93% and 2.20% of our average outstanding credit card balances for the years ended December 31, 2024 and 2023, respectively.
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Core deposit levels may also be affected by our ability to maintain stable relationships within our customer base, and particularly with larger deposit customers.
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Future downturns in the economy could adversely affect consumers in a more delayed fashion compared to commercial businesses in general.
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If a large number of our depositors or depositors with a high concentration of deposits sought to withdraw their deposits suddenly, we could encounter difficulty meeting such a significant deposit outflow, which could negatively impact our profitability, reputation, and liquidity.
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Increasing unemployment and diminished asset values may prevent our credit card customers from repaying their credit card balances which could result in an increased amount of our net charge-offs that could have a material adverse effect on our unsecured credit card portfolio. We may not maintain an appropriate allowance for credit losses.
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Recent advances in technology that increase the speed at which deposits can be moved from bank to bank or outside the banking system may facilitate unanticipated deposit outflows, and the speed and reach with which information, concerns, and rumors can spread through media may exacerbate the risk of unanticipated deposit outflows and related liquidity concerns.
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We rely on the mortgage secondary market from time to time to provide liquidity. We sell certain mortgage loans we originate to certain agencies and other purchasers. We rely, in part, on the agencies to purchase loans meeting their requirements to reduce our credit risk and to provide funding for additional loans we desire to originate.
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While we believe our funding sources are adequate to meet any significant unanticipated deposit withdrawal, we may not be able to manage the risk of deposit volatility effectively, which could have a material adverse effect on our liquidity, business, financial condition, and results of operations. We also compete with banks and other financial services companies for deposits.
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Prior events in the financial services industry, such as the 2023 closures of Silicon Valley Bank, Signature Bank and First Republic Bank, have caused general uncertainty and concern regarding the adequacy of liquidity of the financial services industry generally.
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If our competitors raise the rates they pay on deposits in response to interest rate changes initiated by the FOMC or for other reasons of their choice, our funding costs may increase, either because we raise our rates to retain deposits or because of deposit outflows that require us to rely on more expensive sources of funding.
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In response to the closures of Silicon Valley Bank and Signature Bank, in 2023 the Secretary of the U.S.
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Higher funding costs could reduce our net interest margin and net interest income.
Removed
Department of the Treasury approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank and Signature Bank in a manner that fully protected depositors by utilizing the Deposit Insurance Fund, and the Federal Reserve announced it would make available additional funding for eligible depository institutions to help assure banks have the ability to meet the needs of their depositors.
Added
Any decline in available funding could adversely affect our ability to continue to implement our business strategy which could have a material adverse effect on our liquidity, business, financial condition, and results of operations. 20 Changes in the method pursuant to which benchmark rates are determined, as well as the discontinuance and replacement of reference rates, could adversely impact our business and results of operations.
Removed
Future regulatory actions could also have a material impact on assessments of goodwill for impairment.
Added
Although we believe our allowance for credit losses are adequate to absorb losses that are inherent in our loan portfolio, we cannot predict the timing or severity of such losses nor give any assurance that our allowance will be adequate in the future. 21 Significant portions of our loan portfolio include commercial real estate, construction and development, and commercial and industrial loans, each of which presents heightened lending risks.
Removed
We may not be able to raise the additional capital we need to grow and, as a result, our ability to expand our operations could be materially impaired. Federal and state regulatory authorities require us and our subsidiary bank to maintain adequate levels of capital to support our operations.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeBoth our CISO and our senior vice president of IT governance and risk report to our chief information officer (“CIO”), who has more than 25 years of technology leadership experience, including leadership experience at global financial institutions, and is responsible, among other things, for oversight of our information technology environment, strategy, and security risks.
Biggest changeBoth our CISO and our senior vice president of IT governance and risk report to our chief information officer (“CIO”), who has more than 25 years of technology leadership experience, including multiple years serving as chief information officer for regulated financial institutions and other industry verticals, and is responsible, among other things, for oversight of our information technology environment, strategy, and security risks.
Risk Factors” of this Form 10-K for more information. 32 Governance Our board of directors is aware of, and takes seriously, the importance of overseeing risks associated with cybersecurity threats. Senior management has provided the board of directors with cybersecurity information, as well as incident response training. Additionally, employees have received training related to cybersecurity.
Risk Factors” of this Form 10-K for more information. 34 Governance Our board of directors is aware of, and takes seriously, the importance of overseeing risks associated with cybersecurity threats. Senior management has provided the board of directors with cybersecurity information, as well as incident response training. Additionally, employees have received training related to cybersecurity.
Risk Management and Strategy Our information security program is led by our chief information security officer (“CISO”), who has over 25 years of experience in technology management, has 9 years of banking experience, and is a certified information systems security professional.
Risk Management and Strategy Our information security program is led by our chief information security officer (“CISO”), who has over 25 years of experience in technology management, has 10 years of banking experience, and is a certified information systems security professional.
With respect to internal management, the CISO and CIO meet regularly to discuss the activities and operations of the information security team, and the CIO holds regular meetings with our chief executive officer to discuss cyber related matters, information technology issues, and cybersecurity threats.
With respect to internal management, the CISO and CIO meet regularly to discuss the activities and operations of the information security team, and the CIO holds periodic meetings with other members of our executive team to discuss cyber related matters, information technology issues, and cybersecurity threats.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

7 edited+3 added−1 removed2 unchanged
Biggest changeInformation concerning our repurchases of Class A Common Stock during the quarter ended December 31, 2024 is as follows: Period Total Number of Shares Purchased (1) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs October 1, 2024 - October 31, 2024 — $ — — $ 175,000,000 November 1, 2024 - November 30, 2024 — — — $ 175,000,000 December 1, 2024 - December 31, 2024 — — — $ 175,000,000 Total — $ — — _________________________ (1) No shares of restricted stock were purchased in connection with employee tax withholding obligations under employee compensation plans, which are not purchases under any publicly announced plan. 34 Performance Graph The performance graph below compares the cumulative total shareholder return on the Company’s Common Stock with the cumulative total return of the Russell 2000 Index and the KBW Nasdaq Regional Banking Index.
Biggest changeInformation concerning our repurchases of Class A Common Stock during the quarter ended December 31, 2025 is as follows: Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs October 1, 2025 - October 31, 2025 — $ — — $ 175,000,000 November 1, 2025 - November 30, 2025 — — — $ 175,000,000 December 1, 2025 - December 31, 2025 — — — $ 175,000,000 Total — $ — — 36 Performance Graph The performance graph below compares the cumulative total shareholder return on the Company’s Common Stock with the cumulative total return of the Russell 2000 Index and the KBW Nasdaq Regional Banking Index.
Because the 2022 Program was set to terminate on January 31, 2024, the Company’s Board of Directors authorized a new stock repurchase program in January 2024 (“2024 Program”) under which the Company may repurchase up to $175.0 million of its Class A common stock currently issued and outstanding. The 2024 Program has replaced the 2022 Program.
Because the 2022 Program was set to terminate on January 31, 2024, the Company’s Board of Directors authorized a new stock repurchase program in January 2024 (“2024 Program”) under which the Company may repurchase up to $175.0 million of its Class A common stock currently issued and outstanding. The 2024 Program replaced the 2022 Program.
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, the Company working capital and investment requirements, general market and economic conditions and legal requirements.
The timing, pricing, and amount of any repurchases under the 2026 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, the Company working capital and investment requirements, general market and economic conditions and legal requirements.
Under the 2024 Program, we may repurchase shares of our Class A Common Stock through open market and privately negotiated transactions or otherwise. The 2024 Program does not obligate us to repurchase any of our Class A Common Stock and may be modified, discontinued, or suspended at any time without prior notice.
Under the 2026 Program, we may repurchase shares of our Class A Common Stock through open market and privately negotiated transactions or otherwise. The 2026 Program does not obligate us to repurchase any of our Class A Common Stock and may be modified, discontinued, or suspended at any time without prior notice.
The graph assumes an investment of $100 on December 31, 2019 and reinvestment of dividends on the date of payment without commissions. The performance graph represents past performance and should not be considered as an indication of future performance.
The graph assumes an investment of $100 on December 31, 2020 and reinvestment of dividends on the date of payment without commissions. The performance graph represents past performance and should not be considered as an indication of future performance.
We anticipate funding for the 2024 Program to come from available sources of liquidity, including cash on hand and future cash flow.
We anticipate funding for the 2026 Program to come from available sources of liquidity, including cash on hand and future cash flow.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is listed on the Nasdaq Global Select Market under the symbol “SFNC.” As of February 24, 2025, there were approximately 2,249 shareholders of record of our common stock.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is listed on the Nasdaq Global Select Market under the symbol “SFNC.” As of February 20, 2026, there were approximately 2,141 shareholders of record of our common stock.
Removed
Period Ending Index 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 Simmons First National Corporation 100.00 83.90 117.73 88.75 85.23 99.47 Russell 2000 Index 100.00 119.96 137.74 109.59 128.14 142.93 KBW Nasdaq Regional Banking Index 100.00 91.29 124.74 116.10 115.64 130.90
Added
The 2024 Program terminated in January 2026, and the Company’s Board of Directors authorized a new stock repurchase program in January 2026 (“2026 Program”) under which the Company may repurchase up to $175.0 million of its Class A common stock currently issued and outstanding.
Added
The 2026 Program will be executed in accordance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended, and is set to terminate on January 31, 2028 (unless terminated sooner).
Added
Period Ending Index 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 Simmons First National Corporation 100.00 140.32 105.77 101.58 118.55 105.20 Russell 2000 Index 100.00 114.82 91.35 106.82 119.14 134.40 KBW Nasdaq Regional Banking Index 100.00 136.64 127.17 126.67 143.39 152.71

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

147 edited+42 added−47 removed87 unchanged
Biggest changeTable 6: Noninterest Expense Years Ended December 31, 2024 Change from 2023 Change from (Dollars in thousands) 2024 2023 2022 2023 2022 Salaries and employee benefits $ 283,588 $ 279,919 $ 286,982 $ 3,669 1.3 % $ (7,063) (2.5) % Early retirement program 536 6,198 — (5,662) (91.4) 6,198 * Occupancy expense, net 48,214 46,741 44,321 1,473 3.2 2,420 5.5 Furniture and equipment expense 22,047 20,741 20,665 1,306 6.3 76 0.4 Other real estate and foreclosure expense 700 892 1,003 (192) (21.5) (111) (11.1) Deposit insurance 23,938 29,986 11,608 (6,048) (20.2) 18,378 * Merger related costs — 1,420 22,476 (1,420) (100.0) (21,056) (93.7) Other operating expenses: Professional services 22,179 19,612 19,138 2,567 13.1 474 2.5 Postage 8,735 9,458 8,955 (723) (7.6) 503 5.6 Telephone 6,388 6,965 6,394 (577) (8.3) 571 8.9 Credit card expenses 12,886 13,243 12,243 (357) (2.7) 1,000 8.2 Marketing 27,369 24,008 28,870 3,361 14.0 (4,862) (16.8) Software and technology 42,939 42,530 40,906 409 1.0 1,624 4.0 Operating supplies 2,482 2,591 2,556 (109) (4.2) 35 1.4 Amortization of intangibles 15,403 16,306 15,915 (903) (5.5) 391 2.5 Branch right sizing expense 2,746 5,467 3,475 (2,721) (49.8) 1,992 57.3 Other expense 37,393 36,984 41,241 409 1.1 (4,257) (10.3) Total noninterest expense $ 557,543 $ 563,061 $ 566,748 $ (5,518) (1.0) % $ (3,687) (0.7) % _________________________ *Not meaningful Due to our Better Bank Initiative and continuous efficiency improvements, offset by expected increases related to merit-based compensation adjustments and targeted investments during the upcoming period, we expect marginal growth in noninterest expense during 2025.
Biggest changeTable 6: Noninterest Expense Years Ended December 31, 2025 Change from 2024 Change from (Dollars in thousands) 2025 2024 2023 2024 2023 Salaries and employee benefits $ 297,859 $ 284,124 $ 286,117 $ 13,735 4.8 % $ (1,993) (0.7) % Occupancy expense, net 48,237 48,214 46,741 23 — 1,473 3.2 Furniture and equipment expense 21,518 22,047 20,741 (529) (2.4) 1,306 6.3 Other real estate and foreclosure expense 1,046 700 892 346 49.4 (192) (21.5) Deposit insurance 20,219 23,938 29,986 (3,719) (15.5) (6,048) (20.2) Merger related costs — — 1,420 — — (1,420) (100.0) Other operating expenses: Professional services 21,803 22,179 19,612 (376) (1.7) 2,567 13.1 Postage 9,255 8,735 9,458 520 6.0 (723) (7.6) Telephone 6,056 6,388 6,965 (332) (5.2) (577) (8.3) Credit card expenses 12,538 12,886 13,243 (348) (2.7) (357) (2.7) Marketing 28,049 27,369 24,008 680 2.5 3,361 14.0 Software and technology 41,743 42,939 42,530 (1,196) (2.8) 409 1.0 Operating supplies 2,699 2,482 2,591 217 8.7 (109) (4.2) Amortization of intangibles 12,819 15,403 16,306 (2,584) (16.8) (903) (5.5) Branch right sizing expense 3,246 2,746 5,467 500 18.2 (2,721) (49.8) Other expense 37,976 37,393 36,984 583 1.6 409 1.1 Total noninterest expense $ 565,063 $ 557,543 $ 563,061 $ 7,520 1.3 % $ (5,518) (1.0) % Income Taxes The provision for income taxes for 2025 was a benefit of $130.1 million, compared to an expense of $18.6 million in 2024 and $25.5 million in 2023.
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.
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.
This approach ensures 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. 55 We manage our interest expense through deposit pricing.
This approach ensures 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.
Additionally, 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.
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.
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 either held-to-maturity (“HTM”) or available-for-sale (“AFS”).
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 either held-to-maturity (“HTM”), available-for-sale (“AFS”) or trading.
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 timing, pricing, and amount of any repurchases under the 2026 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 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. 60 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 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. 61 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.
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 December 31, 2024, there were no shares of preferred stock issued or outstanding.
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 December 31, 2025, there were no shares of preferred stock issued or outstanding.
An allowance for credit losses related to mortgage-backed securities and U.S. government agencies was not recorded as of December 31, 2024 due to those securities being explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses.
An allowance for credit losses related to mortgage-backed securities and U.S. government agencies was not recorded as of December 31, 2025 due to those securities being explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses.
We also include qualitative adjustments to the allowance based on factors and considerations that have not otherwise been fully accounted for. 50 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.
We also include qualitative adjustments to the allowance based on factors and considerations that have not otherwise been fully accounted for. 51 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.
Because the 2022 Program was set to terminate on January 31, 2024, the Company’s Board of Directors authorized a new stock repurchase program in January 2024 (“2024 Program”) under which the Company may repurchase up to $175.0 million of its Class A common stock currently issued and outstanding.
Because the 2022 Program was set to terminate on January 31, 2024, the Company’s Board of Directors authorized a new stock repurchase program in January 2024 (“2024 Program”) under which the Company could repurchase up to $175.0 million of its Class A common stock currently issued and outstanding.
Management believes that, as of December 31, 2024, 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.
Management believes that, as of December 31, 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.
We then record the necessary allowance for credit losses on the non-PCD loans through provision for credit losses expense. 36 Goodwill and Intangible Assets Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired.
We then record the necessary allowance for credit losses on the non-PCD loans through provision for credit losses expense. 38 Goodwill and Intangible Assets Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired.
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 judgement. These assumptions are dependent on market and economic conditions.
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.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis presents the more significant factors that affected our financial condition as of December 31, 2024 and 2023 and results of operations for each of the years then ended.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis presents the more significant factors that affected our financial condition as of December 31, 2025 and 2024 and results of operations for each of the years then ended.
At no time did the Company borrow funds under this program.
At no time did the Company borrow funds under this program. 66
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.
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 48% of our loan portfolio and approximately 94% of our time deposits have repriced in one year or less.
Table 5 shows noninterest income for the years ended December 31, 2024, 2023 and 2022, respectively, as well as changes in 2024 from 2023 and in 2023 from 2022.
Table 5 shows noninterest income for the years ended December 31, 2025, 2024 and 2023, respectively, as well as changes in 2025 from 2024 and in 2024 from 2023.
See Note 7, Goodwill and Other Intangible Assets, in the accompanying Notes to Consolidated Financial Statements for additional information regarding our intangibles. 45 Table 6 below shows noninterest expense for the years ended December 31, 2024, 2023 and 2022, respectively, as well as changes in 2024 from 2023 and in 2023 from 2022.
See Note 7, Goodwill and Other Intangible Assets, in the accompanying Notes to Consolidated Financial Statements for additional information regarding our intangibles. 46 Table 6 below shows noninterest expense for the years ended December 31, 2025, 2024 and 2023, respectively, as well as changes in 2025 from 2024 and in 2024 from 2023.
Our allowance for credit losses at December 31, 2024 was considered appropriate given the current economic environment and other related factors. 51 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.
Our allowance for credit losses at December 31, 2025 was considered appropriate given the current economic environment and other related factors. 52 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.
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 non-performing assets increased $31.0 million from December 31, 2023 to December 31, 2024.
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 non-performing assets increased $3.8 million from December 31, 2024 to December 31, 2025.
The interest income on nonaccrual loans is not considered material for the years ended December 31, 2024, 2023 and 2022.
The interest income on nonaccrual loans is not considered material for the years ended December 31, 2025, 2024 and 2023.
Refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K filed with the SEC on February 27, 2024 (the “ 202 3 Form 10-K ”) for a discussion and analysis of the more significant factors that affected the 2022 period, which are incorporated herein by reference.
Refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K filed with the SEC on February 27, 2025 (the “ 2024 Form 10-K ”) for a discussion and analysis of the more significant factors that affected the 2023 period, which are incorporated herein by reference.
For the year ended December 31, 2024, the net amount included in interest income on investment securities in the consolidated statements of income related to these swap agreements was $42.9 million. The adoption of ASU 2016-13 at the beginning of 2020 required us to replace the existing impairment models for financial assets, which includes investment securities.
For the year ended December 31, 2025, the net amount included in interest income on investment securities in the consolidated statements of income related to these swap agreements was $31.3 million. The adoption of ASU 2016-13 at the beginning of 2020 required us to replace the existing impairment models for financial assets, which includes investment securities.
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 December 31, 2024. Judgement is inherent in assessing goodwill for impairment.
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 December 31, 2025. Judgment is inherent in assessing goodwill for impairment.
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. During 2024, our provision for credit loss expense was $46.8 million, as compared to an expense of $42.0 million during 2023 and an expense of $14.1 million during 2022.
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. During 2025, our provision for credit loss expense was $65.8 million, as compared to an expense of $46.8 million during 2024 and an expense of $42.0 million during 2023.
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.
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 and (d) income taxes.
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 61 We have $1.42 billion and $1.43 billion total goodwill and other intangible assets for the periods ended December 31, 2024 and 2023, respectively.
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 62 We have $1.41 billion and $1.42 billion total goodwill and other intangible assets for the periods ended December 31, 2025 and 2024, respectively.
Paralleling the federal funds rate, multiple increases by the Federal Reserve during 2022 and 2023 increased the prime rate to 8.50% as of the end of 2023 and a series of rate cuts during 2024 decreased the prime rate to 7.50% at the end of 2024. To date in 2025, the prime interest rate has also been held steady.
Paralleling the federal funds rate, multiple increases by the Federal Reserve during 2022 and 2023 increased the prime rate to 8.50% as of the end of 2023 and a series of rate cuts during 2024 and 2025 decreased the prime rate to 6.75% at the end of 2025. To date in 2026, the prime interest rate has also held steady.
The Notes will mature on April 1, 2028 and are subordinated in right of payment to the payment of our other existing and future senior indebtedness, including all our general creditors. The Notes are obligations of the Company only and are not obligations of, and are not guaranteed by, any of its subsidiaries.
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.
Annualized net credit card charge-offs to average total credit card loans were 2.93%, compared to 2.20% during 2023, and 144 basis points better than the most recently published industry average charge-off ratio as reported by the Federal Reserve for all banks.
Annualized net credit card charge-offs to average total credit card loans were 2.95%, compared to 2.93% during 2024, and 97 basis points better than the most recently published industry average charge-off ratio as reported by the Federal Reserve for all banks.
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 the 2024 Program to come from available sources of liquidity, including cash on hand and future cash flow.
The 2026 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 the 2026 Program to come from available sources of liquidity, including cash on hand and future cash flow. No shares were repurchased during 2025 or 2024.
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 December 31, 2024, core deposits comprised 77.8% of our total deposits.
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 December 31, 2025, core deposits comprised 83.2% of our total deposits.
Adjusting for these certain items, adjusted earnings for the year ended December 31, 2024 were $177.9 million, or $1.41 adjusted diluted earnings per share, compared to $207.7 million, or $1.64 adjusted diluted earnings per share, in 2023. See GAAP Reconciliation of Non-GAAP Financial Measures for additional discussion and reconciliations of non-GAAP measures.
Adjusting for these certain items, adjusted earnings for the year ended December 31, 2025 were $233.1 million, or $1.73 adjusted diluted earnings per share, compared to $177.9 million, or $1.41 adjusted diluted earnings per share, in 2024. See GAAP Reconciliation of Non-GAAP Financial Measures for additional discussion and reconciliations of non-GAAP measures.
There are no securities of any one state or political subdivision issuer exceeding ten percent of our stockholders’ equity at December 31, 2024. 52 We had approximately $2.46 billion, or 39.9%, of our total portfolio invested in mortgaged-backed securities at December 31, 2024. These mortgage-backed securities were issued by agencies of the U.S. government.
There are no securities of any one state or political subdivision issuer exceeding ten percent of our stockholders’ equity at December 31, 2025. We had approximately $2.20 billion, or 67.2%, of our total portfolio invested in mortgaged-backed securities at December 31, 2025. These mortgage-backed securities were issued by agencies of the U.S. government.
Mortgage volume experienced an increase in demand during 2024 as compared to 2023, and was coupled with continued organic growth in our municipal loans during the period, leading to an increase of $144.2 million in other loans.
Mortgage volume experienced an increase in demand during 2025 as compared to 2024, and was coupled with continued organic growth in our municipal loans during the period, leading to an increase of $131.0 million in other loans.
The pipeline includes $551.8 million in loans approved and ready to close at the end of the year. 47 The balances of loans outstanding at the indicated dates are reflected in Table 7, according to type of loan.
The pipeline includes $773.4 million in loans approved and ready to close at the end of the year. 48 The balances of loans outstanding at the indicated dates are reflected in Table 7, according to type of loan.
Table 13: Maturity Distribution of Investment Securities December 31, 2024 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 Held-to-Maturity U.S.
Table 13: Maturity Distribution of Investment Securities December 31, 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.
Nonaccrual loans increased by $26.8 million during 2024, in addition to an increase in foreclosed assets held for sale of $5.2 million. The increase in nonaccrual loans was primarily spread within our real estate and commercial loan portfolios.
Total non-performing assets increased $31.0 million from December 31, 2023 to December 31, 2024. Nonaccrual loans increased by $26.8 million during 2024, in addition to an increase in foreclosed assets held for sale of $5.2 million. The increase in nonaccrual loans was primarily spread within our real estate and commercial loan portfolios.
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.
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.
Our C&D loans decreased by $355.0 million, or 11.3%, single family residential loans increased by $48.4 million, or 1.8%, and CRE loans increased by $359.9 million, or 4.8%. 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 period.
Our C&D loans increased by $84.6 million, or 3.0%, single family residential loans decreased by $82.5 million, or 3.1%, and CRE loans increased by $377.6 million, or 4.8%. 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 period.
We continually monitor and look for opportunities to fairly reprice our deposits while remaining competitive in this current challenging rate environment. Our net interest margin on a fully tax equivalent basis was 2.74% for the year ended December 31, 2024, down 4 basis points from 2023.
We continually monitor and look for opportunities to fairly reprice our deposits while remaining competitive in this current challenging rate environment. Our net interest margin on a fully tax equivalent basis was 3.32% for the year ended December 31, 2025, up 58 basis points from 2024.
Table 9: Non-performing Assets Years Ended December 31, (Dollars in thousands) 2024 2023 2022 2021 2020 Nonaccrual loans (1) $ 110,154 $ 83,325 $ 58,434 $ 68,204 $ 122,879 Loans past due 90 days or more (principal or interest payments) 603 1,147 507 349 578 Total non-performing loans 110,757 84,472 58,941 68,553 123,457 Other non-performing assets: Foreclosed assets held for sale and other real estate owned 9,270 4,073 2,887 6,032 18,393 Other non-performing assets 1,202 1,726 644 1,667 2,016 Total other non-performing assets 10,472 5,799 3,531 7,699 20,409 Total non-performing assets $ 121,229 $ 90,271 $ 62,472 $ 76,252 $ 143,866 Allowance for credit losses to non-performing loans 212 % 267 % 334 % 300 % 193 % Non-performing loans to total loans 0.65 % 0.50 % 0.37 % 0.57 % 0.96 % Non-performing assets to total assets 0.45 % 0.33 % 0.23 % 0.31 % 0.64 % _________________________ (1) Includes nonaccrual financial difficulty modifications (formerly known as troubled debt restructurings) of approximately $597,000, $282,000, $1.6 million, $2.7 million and $4.4 million at December 31, 2024, 2023, 2022, 2021 and 2020, respectively.
Table 9: Non-performing Assets Years Ended December 31, (Dollars in thousands) 2025 2024 2023 2022 2021 Nonaccrual loans (1) $ 111,791 $ 110,154 $ 83,325 $ 58,434 $ 68,204 Loans past due 90 days or more (principal or interest payments) 948 603 1,147 507 349 Total non-performing loans 112,739 110,757 84,472 58,941 68,553 Other non-performing assets: Foreclosed assets held for sale and other real estate owned 12,009 9,270 4,073 2,887 6,032 Other non-performing assets 323 1,202 1,726 644 1,667 Total other non-performing assets 12,332 10,472 5,799 3,531 7,699 Total non-performing assets $ 125,071 $ 121,229 $ 90,271 $ 62,472 $ 76,252 Allowance for credit losses to non-performing loans 199 % 212 % 267 % 334 % 300 % Non-performing loans to total loans 0.64 % 0.65 % 0.50 % 0.37 % 0.57 % Non-performing assets to total assets 0.51 % 0.45 % 0.33 % 0.23 % 0.31 % _________________________ (1) Includes nonaccrual financial difficulty modifications (formerly known as troubled debt restructurings) of approximately $853,000, $597,000, $282,000, $1.6 million and $2.7 million at December 31, 2025, 2024, 2023, 2022 and 2021, respectively.
Table 7: Loan Portfolio Years Ended December 31, (In thousands) 2024 2023 2022 2021 2020 Consumer: Credit cards $ 181,675 $ 191,204 $ 196,928 $ 187,052 $ 188,845 Other consumer 127,319 127,462 152,882 168,318 202,379 Total consumer 308,994 318,666 349,810 355,370 391,224 Real Estate: Construction and development 2,789,249 3,144,220 2,566,649 1,326,371 1,596,255 Single family residential 2,689,946 2,641,556 2,546,115 2,101,975 1,880,673 Other commercial 7,912,336 7,552,410 7,468,498 5,738,904 5,746,863 Total real estate 13,391,531 13,338,186 12,581,262 9,167,250 9,223,791 Commercial: Commercial 2,434,175 2,490,176 2,632,290 1,992,043 2,574,386 Agricultural 261,154 232,710 205,623 168,717 175,905 Total commercial 2,695,329 2,722,886 2,837,913 2,160,760 2,750,291 Other 610,083 465,932 373,139 329,123 535,591 Total loans before allowance for credit losses $ 17,005,937 $ 16,845,670 $ 16,142,124 $ 12,012,503 $ 12,900,897 Table 8 reflects the remaining loan maturities by interest rate type at December 31, 2024.
Table 7: Loan Portfolio Years Ended December 31, (In thousands) 2025 2024 2023 2022 2021 Consumer: Credit cards $ 175,760 $ 181,675 $ 191,204 $ 196,928 $ 187,052 Other consumer 115,472 127,319 127,462 152,882 168,318 Total consumer 291,232 308,994 318,666 349,810 355,370 Real Estate: Construction and development 2,873,807 2,789,249 3,144,220 2,566,649 1,326,371 Single family residential 2,607,450 2,689,946 2,641,556 2,546,115 2,101,975 Other commercial 8,289,968 7,912,336 7,552,410 7,468,498 5,738,904 Total real estate 13,771,225 13,391,531 13,338,186 12,581,262 9,167,250 Commercial: Commercial 2,382,339 2,434,175 2,490,176 2,632,290 1,992,043 Agricultural 306,300 261,154 232,710 205,623 168,717 Total commercial 2,688,639 2,695,329 2,722,886 2,837,913 2,160,760 Other 741,083 610,083 465,932 373,139 329,123 Total loans before allowance for credit losses $ 17,492,179 $ 17,005,937 $ 16,845,670 $ 16,142,124 $ 12,012,503 Table 8 reflects the remaining loan maturities by interest rate type at December 31, 2025.
Based upon our analysis of the underlying risk characteristics of the AFS portfolio, including credit ratings and other qualitative factors, no allowance for credit losses related to AFS securities was deemed necessary at December 31, 2024 and 2023. Our allowance for credit losses related to HTM securities was $3.2 million for both periods ended December 31, 2024 and 2023.
Based upon our analysis of the underlying risk characteristics of the AFS portfolio, including credit ratings and other qualitative factors, no allowance for credit losses related to AFS securities was deemed necessary at December 31, 2025 and 2024.
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.
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.
Government agencies $ 455,869 $ — $ 455,869 $ — $ (95,961) $ 359,908 Mortgage-backed securities 1,070,032 — 1,070,032 212 (133,746) 936,498 State and political subdivisions 1,857,373 (196) 1,857,177 20 (436,061) 1,421,136 Other securities 256,576 (3,018) 253,558 — (21,149) 232,409 Total HTM $ 3,639,850 $ (3,214) $ 3,636,636 $ 232 $ (686,917) $ 2,949,951 December 31, 2023 U.S.
Government agencies $ 455,869 $ — $ 455,869 $ — $ (95,961) $ 359,908 Mortgage-backed securities 1,070,032 — 1,070,032 212 (133,746) 936,498 State and political subdivisions 1,857,373 (196) 1,857,177 20 (436,061) 1,421,136 Other securities 256,576 (3,018) 253,558 — (21,149) 232,409 Total HTM $ 3,639,850 $ (3,214) $ 3,636,636 $ 232 $ (686,917) $ 2,949,951 (In thousands) Amortized Cost Allowance for Credit Losses Gross Unrealized Gains Gross Unrealized (Losses) Estimated Fair Value Available-for-sale December 31, 2025 U.S.
Table 23: Reconciliation of Uninsured, Non-Collateralized Deposits and the Calculation of Uninsured, Non-Collateralized Deposit Coverage Ratio (non-GAAP) (In thousands) 2024 2023 2022 Uninsured deposits at Simmons Bank $ 8,467,291 $ 8,328,444 $ 8,913,990 Less: Collateralized deposits (excluding portion that is FDIC insured) 2,790,339 2,846,716 2,759,248 Less: Intercompany eliminations 1,045,734 728,480 529,042 Total uninsured, non-collateralized deposits $ 4,631,218 $ 4,753,248 $ 5,625,700 FHLB borrowing availability $ 4,716,000 $ 5,401,000 $ 5,442,000 Unpledged securities 4,103,000 3,817,000 3,180,000 Fed funds lines, Fed discount window and Bank Term Funding Program (1) 2,081,000 1,998,000 1,982,000 Additional liquidity sources $ 10,900,000 $ 11,216,000 $ 10,604,000 Uninsured, non-collateralized deposit coverage ratio 2.4x 2.4x 1.9x ___________________________________ (1) The Bank Term Funding Program closed for new loans on March 11, 2024.
Table 23: Reconciliation of Uninsured, Non-Collateralized Deposits and the Calculation of Uninsured, Non-Collateralized Deposit Coverage Ratio (non-GAAP) (In thousands) 2025 2024 2023 Uninsured deposits at Simmons Bank $ 9,640,677 $ 8,467,291 $ 8,328,444 Less: Collateralized deposits (excluding portion that is FDIC insured) 2,363,327 2,790,339 2,846,716 Less: Intercompany eliminations 2,729,191 1,045,734 728,480 Total uninsured, non-collateralized deposits $ 4,548,159 $ 4,631,218 $ 4,753,248 FHLB borrowing availability $ 5,999,000 $ 4,716,000 $ 5,401,000 Unpledged securities 1,480,000 4,103,000 3,817,000 Fed funds lines, Fed discount window and Bank Term Funding Program (1) 1,836,000 2,081,000 1,998,000 Additional liquidity sources $ 9,315,000 $ 10,900,000 $ 11,216,000 Uninsured, non-collateralized deposit coverage ratio 2.0x 2.4x 2.4x ___________________________________ (1) The Bank Term Funding Program closed for new loans on March 11, 2024.
Our commercial loan pipeline consisting of all commercial loan opportunities was $1.26 billion at December 31, 2024, compared to $948.2 million at December 31, 2023.
Our commercial loan pipeline consisting of all commercial loan opportunities was $1.54 billion at December 31, 2025, compared to $1.26 billion at December 31, 2024.
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 December 31, 2024, were $21.89 billion, a decrease of $359.2 million from December 31, 2023.
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 December 31, 2025, were $20.18 billion, a decrease of $1.70 billion from December 31, 2024.
There are no conditions or events since that notification that management believes have changed the bank’s categories. 59 Our risk-based capital ratios at December 31, 2024 and 2023 are presented in Table 18 below: Table 18: Risk-Based Capital December 31, (Dollars in thousands) 2024 2023 Tier 1 capital: Stockholders’ equity $ 3,528,872 $ 3,426,488 CECL transition provision 30,873 61,746 Goodwill and other intangible assets (1,385,128) (1,398,810) Unrealized loss on available-for-sale securities, net of income taxes 360,910 404,375 Total Tier 1 capital 2,535,527 2,493,799 Tier 2 capital: Subordinated notes and debentures 366,293 366,141 Subordinated debt phase out (132,000) (66,000) Qualifying allowance for credit losses and reserve for unfunded commitments 222,313 170,977 Total Tier 2 capital 456,606 471,118 Total risk-based capital $ 2,992,133 $ 2,964,917 Risk weighted assets $20,473,960 $20,599,238 Assets for leverage ratio $26,037,459 $26,552,988 Ratios at end of year: Common equity Tier 1 ratio (CET1) 12.38 % 12.11 % Tier 1 leverage ratio 9.74 % 9.39 % Tier 1 risk-based capital ratio 12.38 % 12.11 % Total risk-based capital ratio 14.61 % 14.39 % 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”).
There are no conditions or events since that notification that management believes have changed the bank’s categories. 60 Our risk-based capital ratios at December 31, 2025 and 2024 are presented in Table 18 below: Table 18: Risk-Based Capital December 31, (Dollars in thousands) 2025 2024 Tier 1 capital: Stockholders’ equity $ 3,419,240 $ 3,528,872 CECL transition provision — 30,873 Goodwill and other intangible assets (1,374,839) (1,385,128) Unrealized loss on available-for-sale securities, net of income taxes 293,130 360,910 Total Tier 1 capital 2,337,531 2,535,527 Tier 2 capital: Subordinated notes and debentures 317,714 366,293 Subordinated debt phase out — (132,000) Qualifying allowance for credit losses and reserve for unfunded commitments 250,006 222,313 Total Tier 2 capital 567,720 456,606 Total risk-based capital $ 2,905,251 $ 2,992,133 Risk weighted assets $20,106,493 $20,473,960 Assets for leverage ratio $23,224,638 $26,037,459 Ratios at end of year: Common equity Tier 1 ratio (CET1) 11.63 % 12.38 % Tier 1 leverage ratio 10.06 % 9.74 % Tier 1 risk-based capital ratio 11.63 % 12.38 % Total risk-based capital ratio 14.45 % 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 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”).
During the quarters ended June 30, 2022 and September 30, 2021, we transferred, at fair value, $1.99 billion and $500.8 million, respectively, of securities from the AFS portfolio to the HTM portfolio.
During the quarters ended June 30, 2022 and September 30, 2021, we 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.
Uninsured deposits (excluding collateralized deposits and intercompany deposits) as of December 31, 2024 were approximately $4.63 billion, or 21% of total deposits. • Capital levels were steady during the year, with all regulatory capital ratios remaining significantly above “well-capitalized” guidelines as of December 31, 2024 (see Table 18 in the Risk-Based Capital section below).
Uninsured deposits (excluding collateralized deposits and intercompany deposits) as of December 31, 2025 were approximately $4.55 billion, or 23% of total deposits. • Capital levels remained strong over the period, with all regulatory capital ratios remaining significantly above “well-capitalized” guidelines as of December 31, 2025 (see Table 18 in the Risk-Based Capital section below).
Amortization of intangibles recorded for the years ended December 31, 2024, and 2023 was $15.4 million and $16.3 million, respectively.
Amortization of intangibles recorded for the years ended December 31, 2025, and 2024 was $12.8 million and $15.4 million, respectively.
As of December 31, 2024, total loans were $17.01 billion, compared to $16.85 billion on December 31, 2023, an increase of $160.3 million, or 1.0%. The increase in the overall loan balance during 2024 was primarily due to widespread loan growth throughout our geographic markets during the year.
As of December 31, 2025, total loans were $17.49 billion, compared to $17.01 billion on December 31, 2024, an increase of $486.2 million, or 2.9%. The increase in the overall loan balance during 2025 was primarily due to widespread loan growth throughout our geographic markets during the year.
Table 11: Allocation of Allowance for Credit Losses on Loans December 31, 2024 2023 2022 (Dollars in thousands) Allowance Amount % of loans (1) Allowance Amount % of loans (1) Allowance Amount % of loans (1) Credit cards $ 6,007 1.1% $ 5,868 1.1% $ 5,140 1.2% Other consumer and Other 5,463 4.3% 5,716 3.5% 6,614 3.2% Real estate 181,962 78.8% 177,177 79.2% 150,795 78.0% Commercial 41,587 15.8% 36,470 16.2% 34,406 17.6% Total $ 235,019 100.0% $ 225,231 100.0% $ 196,955 100.0% Allowance for credit losses to period-end loans 1.38 % 1.34 % 1.22 % _________________________ (1) Percentage of loans in each category to total loans.
Table 11: Allocation of Allowance for Credit Losses on Loans December 31, 2025 2024 2023 (Dollars in thousands) Allowance Amount % of loans (1) Allowance Amount % of loans (1) Allowance Amount % of loans (1) Credit cards $ 5,991 1.0% $ 6,007 1.1% $ 5,868 1.1% Other consumer and Other 6,711 4.9% 5,463 4.3% 5,716 3.5% Real estate 183,677 78.7% 181,962 78.8% 177,177 79.2% Commercial 27,998 15.4% 41,587 15.8% 36,470 16.2% Total $ 224,377 100.0% $ 235,019 100.0% $ 225,231 100.0% Allowance for credit losses to period-end loans 1.28 % 1.38 % 1.34 % _________________________ (1) Percentage of loans in each category to total loans.
Adjusting for these certain items, adjusted noninterest income for the year ended December 31, 2024 decreased $611,000, or 0.3%, from the prior year. See the GAAP Reconciliation of Non-GAAP Financial Measures section for additional discussion and reconciliations of non-GAAP measures.
Adjusting for these certain items, adjusted noninterest income for the year ended December 31, 2025 increased $10.5 million, or 6.0%, from the prior year. See the GAAP Reconciliation of Non-GAAP Financial Measures section for additional discussion and reconciliations of non-GAAP measures.
GAAP Reconciliation of Non-GAAP Financial Measures The tables below present computations of adjusted earnings (net income excluding certain items {early retirement program costs, loss from early retirement of TruPS, gain on sale of intellectual property, gain on insurance settlement, donation to Simmons First Foundation, merger related costs, FDIC special assessment, loss on sale of securities, termination of vendor and software services, net branch right sizing costs, Day 2 CECL Provision and tax effect}) (non-GAAP) and adjusted diluted earnings per share (non-GAAP) as well as a computation of tangible book value per common share (non-GAAP), tangible common equity to tangible assets (non-GAAP), adjusted noninterest income (non-GAAP), adjusted noninterest expense (non-GAAP), adjusted salaries and employee benefits expense (non-GAAP), adjusted deposit insurance expense (non-GAAP), uninsured, non-collateralized deposits (non-GAAP) and the coverage ratio of uninsured, non-collateralized deposits (non-GAAP).
GAAP Reconciliation of Non-GAAP Financial Measures The tables below present computations of adjusted earnings (net income excluding certain items {early retirement program costs, loss on early extinguishment of debt, loss on sale of equipment finance business, merger related costs, FDIC special assessment, loss on sale of securities, termination of vendor and software services, net branch right sizing costs and tax effect}) (non-GAAP) and adjusted diluted earnings per share (non-GAAP) as well as a computation of tangible book value per common 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).
Total commercial loans were $2.70 billion at December 31, 2024, or 15.8% of total loans, compared to $2.72 billion, or 16.2% of total loans at December 31, 2023, an incremental decrease of $27.6 million, or 1.0%.
Total commercial loans were $2.69 billion at December 31, 2025, or 15.4% of total loans, compared to $2.70 billion, or 15.8% of total loans at December 31, 2024, an incremental decrease of $6.7 million, or 0.2%.
The decrease in non-real estate loans related to business of $56.0 million, or 2.2%, was partially offset by the increase in agricultural loans of $28.4 million, or 12.2%. Other loans mainly consists of mortgage warehouse lending and municipal loans.
The decrease in non-real estate loans related to business of $51.8 million, or 2.1%, was partially offset by the increase in agricultural loans of $45.1 million, or 17.3%. Other loans mainly consists of mortgage warehouse lending and municipal loans.
The net after-tax impact of all adjusted items was $42.4 million, or $0.34 per diluted earnings per share. 62 See Table 19 below for the reconciliation of adjusted earnings, which exclude certain items for the periods presented.
The net after-tax impact of all adjusted items on net income was $32.7 million, or a $0.26 impact on diluted earnings per share. 63 See Table 19 below for the reconciliation of adjusted earnings, which exclude certain items for the periods presented.
Table 14: Average Deposit Balances and Rates December 31, 2024 2023 2022 (In thousands) Average Amount Average Rate Paid Average Amount Average Rate Paid Average Amount Average Rate Paid Noninterest bearing transaction accounts $ 4,576,022 — % $ 5,201,384 — % $ 5,827,160 — % Interest bearing transaction and savings deposits 10,974,529 2.81 % 11,033,263 2.17 % 12,253,164 0.51 % Time deposits 6,411,888 4.55 % 6,038,640 3.87 % 3,094,747 1.16 % Total $ 21,962,439 2.73 % $ 22,273,287 2.12 % $ 21,175,071 0.47 % Our maturities of time deposits not covered by deposit insurance at December 31, 2024 are presented in Table 15.
Table 14: Average Deposit Balances and Rates December 31, 2025 2024 2023 (In thousands) Average Amount Average Rate Paid Average Amount Average Rate Paid Average Amount Average Rate Paid Noninterest bearing transaction accounts $ 4,379,001 — % $ 4,576,022 — % $ 5,201,384 — % Interest bearing transaction and savings deposits 11,102,447 2.39 % 10,974,529 2.81 % 11,033,263 2.17 % Time deposits 5,412,448 3.90 % 6,411,888 4.55 % 6,038,640 3.87 % Total $ 20,893,896 2.28 % $ 21,962,439 2.73 % $ 22,273,287 2.12 % Our maturities of time deposits not covered by deposit insurance at December 31, 2025 are presented in Table 15.
We have historically funded our growth in earning assets through the use of core deposits, large certificates of deposits from local markets, brokered deposits, FHLB borrowings and Federal funds purchased. Management anticipates that these sources will provide necessary funding in the foreseeable future.
We have historically funded our growth in earning assets through the use of core deposits, large certificates of deposits from local markets, brokered deposits, FHLB borrowings and Federal funds purchased.
The prime interest rate remained flat until it began to decrease in July 2019 and was eventually reduced to 4.75% in October 2019. Similarly to the reduction in the federal funds rate, the prime rate was cut to 3.25% in mid-March of 2020 in response to the COVID-19 pandemic and remained unchanged throughout 2021 and into early 2022.
Similarly to the reduction in the federal funds rate, the prime rate was cut to 3.25% in mid-March of 2020 in response to the COVID-19 pandemic and remained unchanged throughout 2021 and into early 2022.
Table 1: Analysis of Net Interest Margin (FTE = Fully Taxable Equivalent using an effective tax rate of 26.135%) Years Ended December 31, (In thousands) 2024 2023 2022 Interest income $ 1,312,065 $ 1,210,161 $ 861,735 FTE adjustment 25,820 25,443 24,671 Interest income - FTE 1,337,885 1,235,604 886,406 Interest expense 683,600 560,035 144,419 Net interest income - FTE $ 654,285 $ 675,569 $ 741,987 Yield on earning assets - FTE 5.61 % 5.09 % 3.79 % Cost of interest bearing liabilities 3.63 % 2.99 % 0.84 % Net interest spread - FTE 1.98 % 2.10 % 2.95 % Net interest margin - FTE 2.74 % 2.78 % 3.17 % Table 2: Changes in Fully Taxable Equivalent Net Interest Margin (In thousands) 2024 vs. 2023 2023 vs. 2022 Increase (decrease) due to change in earning assets $ (2,912) $ 93,320 Increase due to change in earning asset yields 105,193 255,878 Decrease due to change in interest bearing liabilities (6,539) (48,716) Decrease due to change in interest rates paid on interest bearing liabilities (117,026) (366,900) Decrease in net interest income $ (21,284) $ (66,418) 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 each of the years in the three-year period ended December 31, 2024.
Table 1: Analysis of Net Interest Margin (FTE = Fully Taxable Equivalent using an effective tax rate of 26.135%) Years Ended December 31, (In thousands) 2025 2024 2023 Interest income $ 1,243,814 $ 1,312,065 $ 1,210,161 FTE adjustment 19,537 25,820 25,443 Interest income - FTE 1,263,351 1,337,885 1,235,604 Interest expense 524,611 683,600 560,035 Net interest income - FTE $ 738,740 $ 654,285 $ 675,569 Yield on earning assets - FTE 5.68 % 5.61 % 5.09 % Cost of interest bearing liabilities 3.01 % 3.63 % 2.99 % Net interest spread - FTE 2.67 % 1.98 % 2.10 % Net interest margin - FTE 3.32 % 2.74 % 2.78 % Table 2: Changes in Fully Taxable Equivalent Net Interest Margin (In thousands) 2025 vs. 2024 2024 vs. 2023 Decrease due to change in earning assets $ (59,048) $ (2,912) (Decrease) increase due to change in earning asset yields (15,486) 105,193 Increase (decrease) due to change in interest bearing liabilities 62,198 (6,539) Increase (decrease) due to change in interest rates paid on interest bearing liabilities 96,791 (117,026) Increase (decrease) in net interest income $ 84,455 $ (21,284) 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 each of the years in the three-year period ended December 31, 2025.
The allowance for credit losses as a percent of total loans was 1.38% as of December 31, 2024. Non-performing loans equaled 0.65% of total loans. Non-performing assets were 0.45% of total assets, a 12 basis point increase from December 31, 2023. The allowance for credit losses was 212% of non-performing loans.
The allowance for credit losses as a percent of total loans was 1.28% as of December 31, 2025. Non-performing loans equaled 0.64% of total loans. Non-performing assets were 0.51% of total assets, a 6 basis point increase from December 31, 2024. The allowance for credit losses was 199% of non-performing loans.
Included in 2023 results were $32.7 million of certain items, net of tax, that were primarily related to early retirement program costs, loss on sale of securities, a FDIC special assessment and branch right sizing initiatives.
Included in 2025 results were $630.7 million of certain items, net of tax, that were primarily related to the loss on sale of securities, branch right sizing initiatives, loss on sale of an equipment finance business and early retirement program costs.
Table 22: Reconciliation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets (non-GAAP) (Dollars in thousands) 2024 2023 2022 Total common stockholders’ equity $ 3,528,872 $ 3,426,488 $ 3,269,362 Intangible assets: Goodwill (1,320,799) (1,320,799) (1,319,598) Other intangible assets (97,242) (112,645) (128,951) Total intangibles (1,418,041) (1,433,444) (1,448,549) Tangible common stockholders’ equity $ 2,110,831 $ 1,993,044 $ 1,820,813 Total assets $ 26,876,049 $ 27,345,674 $ 27,461,061 Intangible assets: Goodwill (1,320,799) (1,320,799) (1,319,598) Other intangible assets (97,242) (112,645) (128,951) Total intangibles (1,418,041) (1,433,444) (1,448,549) Tangible assets $ 25,458,008 $ 25,912,230 $ 26,012,512 Ratio of common equity to assets 13.13 % 12.53 % 11.91 % Ratio of tangible common equity to tangible assets (non-GAAP) 8.29 % 7.69 % 7.00 % 65 See Table 23 below for the reconciliation of uninsured, non-collateralized deposits and the calculation of uninsured, non-collateralized deposit coverage ratio.
Table 22: Reconciliation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets (non-GAAP) (Dollars in thousands) 2025 2024 2023 Total common stockholders’ equity $ 3,419,240 $ 3,528,872 $ 3,426,488 Intangible assets: Goodwill (1,320,799) (1,320,799) (1,320,799) Other intangible assets (84,423) (97,242) (112,645) Total intangibles (1,405,222) (1,418,041) (1,433,444) Tangible common stockholders’ equity $ 2,014,018 $ 2,110,831 $ 1,993,044 Total assets $ 24,540,877 $ 26,876,049 $ 27,345,674 Intangible assets: Goodwill (1,320,799) (1,320,799) (1,320,799) Other intangible assets (84,423) (97,242) (112,645) Total intangibles (1,405,222) (1,418,041) (1,433,444) Tangible assets $ 23,135,655 $ 25,458,008 $ 25,912,230 Ratio of common equity to assets 13.93 % 13.13 % 12.53 % Ratio of tangible common equity to tangible assets (non-GAAP) 8.71 % 8.29 % 7.69 % See Table 23 below for the reconciliation of uninsured, non-collateralized deposits and the calculation of uninsured, non-collateralized deposit coverage ratio.
As of December 31, 2024, our ratio of common equity to total assets was 13.13%, the ratio of tangible common equity to tangible assets was 8.29% and our Tier 1 leverage ratio was 9.74%. • Key credit quality metrics as of December 31, 2024 also remained solid, with our nonperforming loan coverage ratio at 212% and our allowance for credit losses as a percent of total loans ratio was 1.38%. • We maintained a significant liquidity position with a loan to deposit ratio of 78% as of December 31, 2024, compared to 76% as of December 31, 2023.
As of December 31, 2025, our ratio of common equity to total assets was 13.93%, the ratio of tangible common equity to tangible assets was 8.71% and our Tier 1 leverage ratio was 10.06%. • Key credit quality metrics as of December 31, 2025 also remained solid, with our nonperforming loan coverage ratio at 199% and our allowance for credit losses as a percent of total loans ratio was 1.28%. • The loan to deposit ratio was 87% as of December 31, 2025, compared to 78% as of December 31, 2024.
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. Total noninterest income was $147.2 million in 2024, compared to $155.6 million in 2023 and $170.1 million in 2022.
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. We incurred a noninterest loss of $616.0 million in 2025, compared to noninterest income of $147.2 million in 2024.
At December 31, 2024, our common equity to asset ratio was 13.13% compared to 12.53% at year-end 2023. 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.
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.
Adjusted noninterest expense, which excludes branch right sizing, FDIC special assessment, early retirement program costs, termination of vendor and software services (for 2024 only), and merger related costs (for 2023 only), for the year ended December 31, 2024 increased $12.4 million, or 2.3%, from the prior year.
Adjusted noninterest expense, which excludes branch right sizing, early retirement program costs, termination of vendor and software services, loss on sale of an equipment finance business (for 2025 only) and an FDIC special assessment (for 2024 only), for the year ended December 31, 2025 increased $7.0 million, or 1.3%, from the prior year.
The financial effects of the modified loans made to borrowers experiencing financial difficulty in the single family residential real estate portfolio were not significant during the year ended December 31, 2024 and did not significantly impact the Company’s determination of the allowance for credit losses on loans during the year.
The financial effects of the modified loans made to borrowers experiencing financial difficulty in the single family residential real estate portfolio were not significant during the year ended December 31, 2025 and did not significantly impact the Company’s determination of the allowance for credit losses on loans during the year. 50 We continue to maintain good asset quality compared to the industry, and strong asset quality remains a primary focus of our strategy.
Table 21: Reconciliation of Tangible Book Value per Common Share (non-GAAP) (In thousands, except per share data) 2024 2023 2022 Total common stockholders’ equity $ 3,528,872 $ 3,426,488 $ 3,269,362 Intangible assets: Goodwill (1,320,799) (1,320,799) (1,319,598) Other intangible assets (97,242) (112,645) (128,951) Total intangibles (1,418,041) (1,433,444) (1,448,549) Tangible common stockholders’ equity $ 2,110,831 $ 1,993,044 $ 1,820,813 Shares of common stock outstanding 125,651,540 125,184,119 127,046,654 Book value per common share $ 28.08 $ 27.37 $ 25.73 Tangible book value per common share (non-GAAP) $ 16.80 $ 15.92 $ 14.33 See Table 22 below for the calculation of tangible common equity and the reconciliation of tangible common equity to tangible assets.
Table 21: Reconciliation of Tangible Book Value per Common Share (non-GAAP) (In thousands, except per share data) 2025 2024 2023 Total common stockholders’ equity $ 3,419,240 $ 3,528,872 $ 3,426,488 Intangible assets: Goodwill (1,320,799) (1,320,799) (1,320,799) Other intangible assets (84,423) (97,242) (112,645) Total intangibles (1,405,222) (1,418,041) (1,433,444) Tangible common stockholders’ equity $ 2,014,018 $ 2,110,831 $ 1,993,044 Shares of common stock outstanding 144,762,817 125,651,540 125,184,119 Book value per common share $ 23.62 $ 28.08 $ 27.37 Tangible book value per common share (non-GAAP) $ 13.91 $ 16.80 $ 15.92 65 See Table 22 below for the calculation of tangible common equity and the reconciliation of tangible common equity to tangible assets.
Prepayments are anticipated for mortgage-backed and SBA securities. Premiums on callable securities are amortized to their earliest call date. 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, mortgage-backed securities and municipal securities.
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, mortgage-backed securities and municipal securities.
We had no gross realized gains and $28.4 million of gross realized losses from the sale of securities during the year ended December 31, 2024, compared to no gross realized gains and $20.6 million of gross realized losses from the sale of securities during the year ended December 31, 2023.
We had no gross realized gains and $801.5 million of gross realized losses from the sale of securities related to the balance sheet repositioning discussed above during the year ended December 31, 2025, compared to no gross realized gains and $28.4 million of gross realized losses from the sale of securities during the year ended December 31, 2024.
Nonaccrual loans decreased by $9.8 million during 2022, in addition to a decrease in foreclosed assets held for sale of $3.1 million. The decrease in nonaccrual loans was primarily due to an overall improvement in economic conditions from pandemic related stresses. Total non-performing assets decreased by $67.6 million from December 31, 2020 to December 31, 2021.
Nonaccrual loans decreased by $9.8 million during 2022, in addition to a decrease in foreclosed assets held for sale of $3.1 million. The decrease in nonaccrual loans was primarily due to an overall improvement in economic conditions from pandemic related stresses. From time to time, certain borrowers experience declines in income and cash flow.
The timing and impact of such events on our results of operation and financial condition will depend on future developments, which are highly uncertain. 38 In our discussion and analysis of our financial condition and results of operation in this Item 7, “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 US GAAP.
In our discussion and analysis of our financial condition and results of operation in this Item 7, “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 US GAAP.
Nonaccrual loans were included in average loans for the purpose of calculating the rate earned on total loans. 41 Table 3: Average Balance Sheets and Net Interest Income Analysis (FTE = Fully Taxable Equivalent using an effective tax rate of 26.135%) Years Ended December 31, 2024 2023 2022 Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/ (In thousands) Balance Expense Rate (%) Balance Expense Rate (%) Balance Expense Rate (%) ASSETS Earning assets: Interest bearing balances due from banks and federal funds sold $ 217,308 $ 11,808 5.43 $ 320,261 $ 13,490 4.21 $ 793,836 $ 5,500 0.69 Investment securities - taxable 3,913,498 153,413 3.92 4,698,742 143,178 3.05 5,462,427 94,437 1.73 Investment securities - non-taxable 2,620,787 85,308 3.26 2,605,868 85,861 3.29 2,703,662 86,596 3.20 Mortgage loans held for sale 10,634 731 6.87 8,064 557 6.91 16,609 720 4.33 Other loans held for sale — — — — — — 8,322 3,120 37.49 Loans - including fees 17,106,193 1,086,625 6.35 16,647,570 992,518 5.96 14,419,763 696,033 4.83 Total interest earning assets 23,868,420 1,337,885 5.61 24,280,505 1,235,604 5.09 23,404,619 886,406 3.79 Non-earning assets 3,346,227 3,274,354 3,014,219 Total assets $ 27,214,647 $ 27,554,859 $ 26,418,838 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities: Interest bearing liabilities: Interest bearing transaction and savings deposits $ 10,974,529 $ 308,455 2.81 $ 11,033,263 $ 238,982 2.17 $ 12,253,164 $ 63,033 0.51 Time deposits 6,411,888 291,785 4.55 6,038,640 233,937 3.87 3,094,747 36,016 1.16 Total interest bearing deposits 17,386,417 600,240 3.45 17,071,903 472,919 2.77 15,347,911 99,049 0.65 Federal funds purchased and securities sold under agreements to repurchase 50,958 602 1.18 105,802 1,150 1.09 200,744 941 0.47 Other borrowings 1,042,726 55,127 5.29 1,169,374 60,517 5.18 1,155,310 24,934 2.16 Subordinated debt and debentures 366,218 27,631 7.54 366,066 25,449 6.95 394,870 19,495 4.94 Total interest bearing liabilities 18,846,319 683,600 3.63 18,713,145 560,035 2.99 17,098,835 144,419 0.84 Noninterest bearing liabilities: Noninterest bearing deposits 4,576,022 5,201,384 5,827,160 Other liabilities 305,484 281,018 233,179 Total liabilities 23,727,825 24,195,547 23,159,174 Stockholders’ equity 3,486,822 3,359,312 3,259,664 Total liabilities and stockholders’ equity $ 27,214,647 $ 27,554,859 $ 26,418,838 Net interest spread 1.98 2.10 2.95 Net interest margin $ 654,285 2.74 $ 675,569 2.78 $ 741,987 3.17 42 Table 4 shows changes in interest income and interest expense resulting from changes in volume and changes in interest rates for the years 2024 versus 2023 and 2023 versus 2022.
Nonaccrual loans were included in average loans for the purpose of calculating the rate earned on total loans. 42 Table 3: Average Balance Sheets and Net Interest Income Analysis (FTE = Fully Taxable Equivalent using an effective tax rate of 26.135%) Years Ended December 31, 2025 2024 2023 Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/ (In thousands) Balance Expense Rate (%) Balance Expense Rate (%) Balance Expense Rate (%) ASSETS Earning assets: Interest bearing balances due from banks and federal funds sold $ 315,500 $ 14,140 4.48 $ 217,308 $ 11,808 5.43 $ 320,261 $ 13,490 4.21 Investment securities - taxable 3,062,838 120,235 3.93 3,913,498 153,413 3.92 4,698,742 143,178 3.05 Investment securities - non-taxable 1,799,941 61,215 3.40 2,620,787 85,308 3.26 2,605,868 85,861 3.29 Mortgage loans held for sale 12,704 799 6.29 10,634 731 6.87 8,064 557 6.91 Assets held in trading accounts 6,009 217 3.61 — — — — — — Loans - including fees 17,060,425 1,066,745 6.25 17,106,193 1,086,625 6.35 16,647,570 992,518 5.96 Total interest earning assets 22,257,417 1,263,351 5.68 23,868,420 1,337,885 5.61 24,280,505 1,235,604 5.09 Non-earning assets 3,357,283 3,346,227 3,274,354 Total assets $ 25,614,700 $ 27,214,647 $ 27,554,859 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities: Interest bearing liabilities: Interest bearing transaction and savings deposits $ 11,102,447 $ 265,065 2.39 $ 10,974,529 $ 308,455 2.81 $ 11,033,263 $ 238,982 2.17 Time deposits 5,412,448 210,843 3.90 6,411,888 291,785 4.55 6,038,640 233,937 3.87 Total interest bearing deposits 16,514,895 475,908 2.88 17,386,417 600,240 3.45 17,071,903 472,919 2.77 Federal funds purchased and securities sold under agreements to repurchase 29,097 301 1.03 50,958 602 1.18 105,802 1,150 1.09 Other borrowings 536,296 23,422 4.37 1,042,726 55,127 5.29 1,169,374 60,517 5.18 Subordinated debt and debentures 364,925 24,980 6.85 366,218 27,631 7.54 366,066 25,449 6.95 Total interest bearing liabilities 17,445,213 524,611 3.01 18,846,319 683,600 3.63 18,713,145 560,035 2.99 Noninterest bearing liabilities: Noninterest bearing deposits 4,379,001 4,576,022 5,201,384 Other liabilities 318,955 305,484 281,018 Total liabilities 22,143,169 23,727,825 24,195,547 Stockholders’ equity 3,471,531 3,486,822 3,359,312 Total liabilities and stockholders’ equity $ 25,614,700 $ 27,214,647 $ 27,554,859 Net interest spread 2.67 1.98 2.10 Net interest margin $ 738,740 3.32 $ 654,285 2.74 $ 675,569 2.78 43 Table 4 shows changes in interest income and interest expense resulting from changes in volume and changes in interest rates for the years 2025 versus 2024 and 2024 versus 2023.
We primarily use interest rate reduction and/or payment modifications or extensions, with an occasional forgiveness of principal.
Modifications to borrowers experiencing financial difficulties 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.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

15 edited+3 added−2 removed14 unchanged
Biggest changeSources of liquidity are managed so that reliance on any one funding source is kept to a minimum. Our liquidity sources are prioritized for both availability and time to activation. Our liquidity is a primary consideration in determining funding needs and is an integral part of asset/liability management.
Biggest changeOur liquidity sources are prioritized for both availability and time to activation. Our liquidity is a primary consideration in determining funding needs and is an integral part of asset/liability management. Pricing of the liability side is a major component of interest margin and spread management. Adequate liquidity is a necessity in addressing this critical task.
We also use securities held in the securities portfolio to pledge when obtaining public funds. Sixth, we have a network of downstream correspondent banks from which we can access debt to meet liquidity needs. Finally, we have the ability to access funds through the Federal Reserve Bank Discount Window.
We also use securities held in the securities portfolio to pledge when obtaining public funds. 67 Sixth, we have a network of downstream correspondent banks from which we can access debt to meet liquidity needs. Finally, we have the ability to access funds through the Federal Reserve Bank Discount Window.
As of December 31, 2024, the Bank had approximat ely $435.0 million in f ederal funds lines of credit from upstream correspondent banks that can be accessed, if and when needed. In order to ensure availability of these upstream funds we test these borrowing lines at least annually.
As of December 31, 2025, the Bank had approximat ely $435.0 million in f ederal funds lines of credit from upstream correspondent banks that can be accessed, if and when needed. In order to ensure availability of these upstream funds we test these borrowing lines at least annually.
Since these correlations are based on competitive and market conditions, we anticipate that our future results will likely be different from the foregoing estimates, and such differences could be material. The table below presents our sensitivity to net interest income at December 31, 2024.
Since these correlations are based on competitive and market conditions, we anticipate that our future results will likely be different from the foregoing estimates, and such differences could be material. The table below presents our sensitivity to net interest income at December 31, 2025.
Approximately $4.72 billion of these lines of credit are currently available, if needed, for liquidity. A third source of liquidity is that we have the ability to access large wholesale deposits from both the public and private sector to fund short-term liquidity needs.
Approximately $6.00 billion of these lines of credit are currently available, if needed, for liquidity. A third source of liquidity is that we have the ability to access large wholesale deposits from both the public and private sector to fund short-term liquidity needs.
At December 31, 2024, undivided profits of Simmons Bank were approximately $550.4 million, none of which were available for the payment of dividends to the Company without regulatory approval. In addition to dividends, other sources of liquidity for the Company are the sale of equity securities and the borrowing of funds.
At December 31, 2025, undivided profits of Simmons Bank were approximately $109.8 million, none of which were available for the payment of dividends to the Company without regulatory approval. In addition to dividends, other sources of liquidity for the Company are the sale of equity securities and the borrowing of funds.
Interest rate decreases of 100 and 200 basis points would result in positive variances in net interest income of 0.89% and 1.81%, respectively, relative to the base case over the next 12 months.
Interest rate decreases of 100 and 200 basis points would result in negative variances in net interest income of 1.10% and 1.70%, respectively, relative to the base case over the next 12 months.
Table 24: Net Interest Income Sensitivity Interest Rate Scenario % Change from Base Up 200 basis points (3.78) % Up 100 basis points (1.70) % Down 100 basis points 0.89 % Down 200 basis points 1.81 % 68
Table 24: Net Interest Income Sensitivity Interest Rate Scenario % Change from Base Up 200 basis points 0.58 % Up 100 basis points 0.23 % Down 100 basis points (1.10) % Down 200 basis points (1.70) % 68
As of December 31, 2024, the model simulations projected that 100 and 200 basis point increases in interest rates would result in negative variances in net interest income of 1.70% and 3.78%, respectively, relative to the base case over the next 12 months.
As of December 31, 2025, the model simulations projected that 100 and 200 basis point increases in interest rates would result in positive variances in net interest income of 0.23% and 0.58%, respectively, relative to the base case over the next 12 months.
The first source of liquidity available to the Company is federal funds. Federal funds are available on a daily basis and are used to meet the normal fluctuations of a dynamic balance sheet.
There are seven primary and secondary sources of liquidity available to the Company. The particular liquidity need and timeframe determine the use of these sources. The first source of liquidity available to the Company is federal funds. Federal funds are available on a daily basis and are used to meet the normal fluctuations of a dynamic balance sheet.
Fifth, we use a laddered investment portfolio that ensures there is a steady source of intermediate term liquidity. These funds can be used to meet seasonal loan patterns and other intermediate term balance sheet fluctuations. Approximately 41.0% of the investment portfolio is classified as available-for-sale, and we may generate additional liquidity through opportunistic sales of investment securities.
Fifth, we use a laddered investment portfolio that ensures there is a steady source of intermediate term liquidity. These funds can be used to meet seasonal loan patterns and other intermediate term balance sheet fluctuations.
A number of tools are used to monitor and manage interest rate risk, including simulation models and interest sensitivity gap analysis. Management uses simulation models to estimate the effects of changing interest rates and various balance sheet strategies on the level of the Company’s net income and capital.
Management uses simulation models to estimate the effects of changing interest rates and various balance sheet strategies on the level of the Company’s net income and capital.
Internal corporate guidelines have been established to constantly measure liquid assets as well as relevant ratios concerning earning asset levels and purchased funds.
Internal corporate guidelines have been established to constantly measure liquid assets as well as relevant ratios concerning earning asset levels and purchased funds. The management and Board of Directors of the subsidiary bank monitor these same indicators and makes adjustments as needed.
The measurement of market risk associated with financial instruments is meaningful only when all related and offsetting on- and off-balance-sheet transactions are aggregated, and the resulting net positions are identified. 67 Interest Rate Sensitivity Interest rate risk represents the potential impact of interest rate changes on net income and capital resulting from mismatches in repricing opportunities of assets and liabilities over a period of time.
The measurement of market risk associated with financial instruments is meaningful only when all related and offsetting on- and off-balance-sheet transactions are aggregated, and the resulting net positions are identified.
The management and Board of Directors of the subsidiary bank monitor these same indicators and makes adjustments as needed. 66 Liquidity Management The objective of our liquidity management is to access adequate sources of funding to ensure that cash flow requirements of depositors and borrowers are met in an orderly and timely manner.
Liquidity Management The objective of our liquidity management is to access adequate sources of funding to ensure that cash flow requirements of depositors and borrowers are met in an orderly and timely manner. Sources of liquidity are managed so that reliance on any one funding source is kept to a minimum.
Removed
Pricing of the liability side is a major component of interest margin and spread management. Adequate liquidity is a necessity in addressing this critical task. There are seven primary and secondary sources of liquidity available to the Company. The particular liquidity need and timeframe determine the use of these sources.
Added
All of the investment portfolio is classified as available-for-sale or assets held for trading as of December 31, 2025, and we may generate additional liquidity through opportunistic sales of investment securities.
Removed
These results reflect a liability-sensitive balance sheet and are consistent with the Company’s shift toward short-term funding combined with relatively little change in the mix of interest-earning assets.
Added
See Item 7, “ Managements Discussion and Analysis of Financial Condition and Results of Operations - Investments and Securities ”, for additional information regarding the market risk sensitive instruments entered into for trading and other purposes, which is incorporated herein by reference.
Added
Interest Rate Sensitivity Interest rate risk represents the potential impact of interest rate changes on net income and capital resulting from mismatches in repricing opportunities of assets and liabilities over a period of time. A number of tools are used to monitor and manage interest rate risk, including simulation models and interest sensitivity gap analysis.

Other SFNC 10-K year-over-year comparisons