Company: SFNC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050112
Chunk: 130

Company: SIMMONS FIRST NATIONAL CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 130
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. Interest expense decreased $64.1 million due to the decrease in rate of 55 basis points on interest-bearing deposit accounts. A $23.3 million decrease in interest income was related to the decrease in time deposit volume over the period. Further, a decrease of $22.5 million in interest expense was related to reductions in the amounts outstanding under and rates on wholesale borrowings sources over the comparative period. The decline in wholesale borrowings volume, including brokered time deposits, is largely due to the balance sheet repositioning. We continually monitor and look for opportunities to fairly reprice our deposits while remaining competitive in this current challenging rate environment.

Net Interest Margin

Our net interest margin on a fully tax equivalent basis was 3.50% and 3.17% for the three and nine month periods ended September 30, 2025, as compared to 3.06% and 2.70% for the three months ended June 30, 2025 and the nine months ended September 30, 2024, respectively. Net interest margin experienced a 44 basis point increase for the three months ended September 30, 2025 compared to the preceding sequential quarter, while net interest margin increased 47 basis points during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase on a linked quarter basis was primarily due to the balance sheet repositioning during the period. The increase when compared to the same period in the prior year was driven by the balance sheet repositioning, as well as reduced deposit costs and use of wholesale funding over the comparative periods.

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Net Interest Income Tables

Tables 1 and 2 reflect an analysis of net interest income on a fully taxable equivalent basis for the three months ended September 30, 2025 and June 30, 2025 and the nine months ended September 30, 2025 and 2024, respectively.

Table 1: Analysis of Net Interest Margin

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

 Three Months EndedNine Months EndedSeptember 30,June 30,September 30,September 30,(In thousands)2025202520252024Interest income$313,423 $315,023 $936,283 $986,083 FTE adjustment3,811 6,422 16,647 19,396 Interest income – FTE317,234