Company: SFNC
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001628280-25-037719
Chunk: 241

Company: SIMMONS FIRST NATIONAL CORP
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 241
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 values of fixed rate callable AFS securities. The hedging strategy converts the fixed interest rates to variable interest rates based on federal funds rates. The two year forward start date for these swaps occurred during late third quarter of 2023 and involves the payment of fixed interest rates with a weighted average of 1.21% in exchange for variable interest rates based on federal funds rates. For the six month period ended June 30, 2025, the net amount included in interest income on investment securities in the consolidated statements of income related to fair value hedges was $16.0 million.The following table summarizes the fair value hedges recorded in the accompanying consolidated balance sheets.June 30, 2025December 31, 2024(In thousands)Balance Sheet LocationWeighted Average Pay RateReceive RateNotionalFair ValueNotionalFair ValueDerivative assetsOther assets1.21%Federal Funds$1,001,715 $70,762 $1,001,715 $103,366 The following amounts were recorded on the balance sheet related to carrying amounts and cumulative basis adjustments for fair value hedges.Carrying Amount of Hedged AssetsCumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged AssetsLine Item on the Balance Sheet (In thousands)June 30, 2025December 31, 2024June 30, 2025December 31, 2024Investment securities - Available-for-sale$963,356 $934,132 $71,005 $103,595 

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Customer Risk Management Interest Rate SwapsThe Company’s qualified loan customers have the opportunity to participate in its interest rate swap program for the purpose of managing interest rate risk on their variable rate loans with the Company. The Company enters into such agreements with customers, then offsetting agreements are executed between the Company and an approved dealer counterparty to minimize market risk from changes in interest rates. The counterparty contracts are identical to customer contracts in terms of notional amounts, interest rates, and maturity dates, except for a fixed pricing spread or fee paid to the Company by the dealer counterparty. These interest rate swaps carry varying degrees of credit, interest rate and market or liquidity risks. The fair value of these derivative instruments is recognized as either derivative assets or liabilities in the accompanying consolidated balance sheets. The Company has a limited number of swaps that are standalone without a similar agreement with the loan customer.The following table summarizes the fair values of loan derivative