Company: SFNC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050112
Chunk: 22

Company: SIMMONS FIRST NATIONAL CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 22
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005,507—1,045,6911,074,697 845,371 Other securities6,00463,761112,547—208182,520182,515 175,958 Total$10,889$104,625$138,009$1,023,532 $2,446,919 $3,723,974 $3,727,616 $3,319,277 Percentage of total0.3 %2.8 %3.7 %27.5 %65.7 %100.0 %Weighted average yield1.6 %5.1 %3.7 %2.8 %3.1 %3.1 %

During the third quarter of 2021, we began utilizing interest rate swaps designated as fair value hedges to mitigate the effect of changing interest rates on the fair values of $1.00 billion of fixed rate callable municipal securities held in the AFS portfolio. These swap agreements consist of a two year forward start date and involve the payment of fixed interest rates with a weighted average rate of 1.21% in exchange for variable interest rates based on federal funds rates, which became effective during late third quarter of 2023. Securities within these swap agreements have maturity dates varying between 2028 and 2029. For the nine months ended September 30, 2025, the net amount included in interest income on investment securities in the consolidated statements of income related to these swap agreements was $24.2 million.

LOAN PORTFOLIO

Our loan portfolio averaged $16.98 billion and $17.07 billion during the first nine months of 2025 and 2024, respectively. As of September 30, 2025, total loans were $17.19 billion, an increase of $182.9 million from December 31, 2024. The increase in the loan balance during the first nine months of 2025 when compared to December 31, 2024 is primarily due to growth in the real estate - construction and development, agricultural and mortgage warehouse portfolios over the comparative period, while we continued to focus on maintaining prudent underwriting standards and pricing discipline. The most significant components of the loan portfolio were loans to businesses (commercial loans, commercial real estate loans and agricultural loans) and individuals (consumer loans, credit card loans and single-family residential real estate loans).

We seek to manage our credit risk by