Company: SFNC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050112
Chunk: 262

Company: SIMMONS FIRST NATIONAL CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 262
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0 million decrease due to the decline in our investment portfolio average balances, which decreased by $2.05 billion or 34.0%. The decrease was partially offset by an increase of $6.9 million in interest income on investment securities due to yield increases over the period of 61 basis points and 26 basis points for our taxable and non-taxable investment security portfolios, respectively. These changes, including a $3.9 million increase in interest income related to interest bearing balances due from banks, were primarily due to the balance sheet repositioning previously discussed. A $3.8 million increase in interest income on loans reflects a decrease attributable to loan volume of $1.1 million, more than offset by a $4.9 million increase in interest income related to loan yield. The loan yield for the third quarter of 2025 was 6.31% compared to 6.26% from the preceding sequential quarter, representing a 5 basis point increase, driven by disciplined pricing of new originations, as well as positive fixed-rate loan repricing.

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The $16.4 million decrease in interest expense is primarily due to an $8.2 million decrease in interest expense on time deposits and a $7.7 million decrease in interest expense related to other borrowings during the quarter. Of the $8.2 million decrease in interest expense on time deposits, $1.4 million was due to the 14 basis point decrease in average rates on time deposits and $6.8 million was due to the decrease in time deposit volume over the period. These changes were primarily due to a reduction of higher rate, non-relationship wholesale and public fund deposits, as well as higher rate other borrowings, as part of the balance sheet repositioning. 

Net Interest Income - Year-over-Year Analysis

Net interest income on a fully taxable equivalent basis for the nine month period ended September 30, 2025 increased $55.6 million, or 11.5%, over the same period in 2024. The increase in net interest income on a fully taxable equivalent basis was the result of a $52.5 million decrease in fully tax equivalent interest income, more than offset by a $108.2 million decrease in interest expense.

The decrease in interest income during the nine month period ended September 30, 2025 primarily resulted from decreases in interest income on loans and investments. The decrease in interest income on loans was largely attributable to a 10 basis point decline in loan yield that resulted in a