Company: SFNC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023690
Chunk: 214

Company: SIMMONS FIRST NATIONAL CORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 214
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 extend credit aggregating approximately $762.4 million and $4.19 billion for credit card commitments and other loan commitments, respectively. At December 31, 2024, the Company had outstanding commitments to extend credit aggregating approximately $756.9 million and $4.03 billion for credit card commitments and other loan commitments, respectively.As of March 31, 2025, the Company had outstanding commitments to originate fixed-rate mortgage loans of approximately $33.3 million. At December 31, 2024, the Company had outstanding commitments to originate fixed-rate mortgage loans of approximately $17.8 million. The commitments extend over varying periods of time with the majority being disbursed within a thirty-day period.Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The Company had total outstanding letters of credit amounting to $49.4 million and $41.6 million at March 31, 2025 and December 31, 2024, respectively, with terms ranging from 9 months to 15 years. At March 31, 2025 and December 31, 2024, the Company had no deferred revenue under standby letter of credit agreements.The Company has purchased letters of credit from the FHLB as security for certain public deposits. The amount of the letters of credit was $1.30 billion and $1.12 billion at March 31, 2025 and December 31, 2024, respectively, and they expire in less than one year from issuance.

NOTE 21: FAIR VALUE MEASUREMENTS

 ASC Topic 820, Fair Value Measurements defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance also establishes a fair value hierarchy that requires the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. ASC Topic 820 describes three levels of inputs that may be used to measure fair value: •Level 1 Inputs – Quoted prices in active markets for identical assets or liabilities.•Level 2 Inputs