Company: SFNC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050112
Chunk: 241

Company: SIMMONS FIRST NATIONAL CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 241
---
ribusiness, commercial and residential loans to customers primarily throughout Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas, along with credit card loans to customers throughout the United States. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since a portion of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. At September 30, 2025, the Company had outstanding commitments to extend credit aggregating approximately $822.8 million and $4.27 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 September 30, 2025, the Company had outstanding commitments to originate fixed-rate mortgage loans of approximately $22.7 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 $68.6 million and $41.6 million at September 30, 2025 and December 31, 2024, respectively, with terms ranging from 9 months to 15 years. At September 30, 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 $