Company: SFNC
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001628280-25-008639
Chunk: 92

Company: SIMMONS FIRST NATIONAL CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7
Chunk 92
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 and noninterest expenses related to continuous improvement initiatives and utilizing cost savings to partially fund targeted investments in technology and talent. Additionally, while our balance sheet is in a favorable position for the repricing of assets and liabilities, there is still much uncertainty as to decisions that will be made by the FOMC and the risks present in the economy. 

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Tables 1 and 2 reflect an analysis of net interest income on a fully taxable equivalent basis for the years ended December 31, 2024, 2023 and 2022, respectively, as well as changes in fully taxable equivalent net interest margin for the years 2024 versus 2023 and 2023 versus 2022. 

Table 1: Analysis of Net Interest Margin

(FTE = Fully Taxable Equivalent using an effective tax rate of 26.135%) 

 Years Ended December 31,(In thousands)202420232022Interest income$1,312,065 $1,210,161 $861,735 FTE adjustment25,820 25,443 24,671 Interest income - FTE1,337,885 1,235,604 886,406 Interest expense683,600 560,035 144,419 Net interest income - FTE$654,285 $675,569 $741,987 Yield on earning assets - FTE5.61 %5.09 %3.79 %Cost of interest bearing liabilities3.63 %2.99 %0.84 %Net interest spread - FTE1.98 %2.10 %2.95 %Net interest margin - FTE2.74 %2.78 %3.17 %

Table 2: Changes in Fully Taxable Equivalent Net Interest Margin 

(In thousands)2024 vs. 20232023 vs. 2022Increase (decrease) due to change in earning assets$(2,912)$93,320 Increase due to change in earning asset yields105,193 255,878 Decrease due to change in interest bearing liabilities(6,539)(48,716)Decrease due to change in interest rates paid on interest bearing liabilities(117,026)(366,900)Decrease in net interest income$(21,284)$(66,418)

Table 3 shows, for each major category of earning assets and interest bearing liabilities, the average (computed on a daily