Company: SFNC
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001628280-25-037719
Chunk: 215

Company: SIMMONS FIRST NATIONAL CORP
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 215
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, insurance and common area maintenance costs) separately as such amounts are generally readily determinable under the lease contracts. Lease payments over the expected term are discounted using the Company’s Federal Home Loan Bank (“FHLB”) advance rates for borrowings of similar term. If it is reasonably certain that a renewal or termination option will be exercised, the effects of such options are included in the determination of the expected lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term.The Company’s leases are classified as operating leases with a term, including expected renewal or termination options, greater than one year, and are related to certain office facilities and office equipment. The following table presents information as of June 30, 2025 and December 31, 2024 related to the Company’s right-of-use lease assets, included in premises and equipment, and lease liabilities, included in accrued interest and other liabilities.June 30,December 31,(Dollars in thousands)20252024Right-of-use lease assets$62,766 $67,224 Lease liabilities64,907 69,319 Weighted average remaining lease term7.96 years8.33 yearsWeighted average discount rate3.77 %3.81 %Operating lease cost for the three and six month periods ended June 30, 2025 was $3.8 million and $8.0 million, respectively, as compared to $4.1 million and $8.2 million for the same periods in 2024.

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NOTE 5: PREMISES AND EQUIPMENT

Premises and equipment are stated at cost less accumulated depreciation and amortization. Total premises and equipment, net at June 30, 2025 and December 31, 2024 were as follows:June 30,December 31,(In thousands)20252024Right-of-use lease assets$62,766 $67,224 Premises and equipment:Land118,308 124,819 Buildings and improvements413,828 404,223 Furniture, fixtures and equipment125,216 123,741 Software64,657 63,844 Construction in progress22,635 24,262 Accumulated depreciation and amortization(234,250)(222,682)Total premises and equipment, net$573,160 $585,431