Company: SFNC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050112
Chunk: 117

Company: SIMMONS FIRST NATIONAL CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 117
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 hedges to mitigate the effect of changing interest rates on the fair values of fixed rate callable AFS securities. The hedging strategy converts the fixed interest rates to variable interest rates based on federal funds rates. The two year forward start date for these swaps occurred during late third quarter of 2023 and involves the payment of fixed interest rates with a weighted average of 1.21% in exchange for variable interest rates based on federal funds rates. For the nine month period ended September 30, 2025, the net amount included in interest income on investment securities in the consolidated statements of income related to fair value hedges was $24.2 million.During the third quarter of 2025, the Company began utilizing step-down interest rate swaps designated as fair value hedges to mitigate the risk of changes in the fair value of the $325.0 million in aggregate principal amount of the 2025 Notes due to changes in market interest rates. These receive-fixed/pay-variable swaps have maturities ranging from 2026 to 2030 and the fixed interest rate decreases in predetermined intervals over the contractual term of the agreement. The following table summarizes the fair value hedges recorded in the accompanying consolidated balance sheets.September 30, 2025December 31, 2024(In thousands)Balance Sheet LocationWeighted Average Pay RateReceive RateNotionalFair ValueNotionalFair ValueDerivative assetsOther assets1.21%Federal Funds$1,001,715 $63,946 $1,001,715 $103,366 Derivative liabilitiesAccrued interest and other liabilitiesDaily WA SOFR3.07% - 3.56%325,000 (2,274)— — 

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The following amounts were recorded on the balance sheet related to carrying amounts and cumulative basis adjustments for fair value hedges.Carrying Amount of Hedged Assets/LiabilitiesCumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Assets/LiabilitiesLine Item on the Balance Sheet (In thousands)September 30, 2025December 31, 2024September 30, 2025December 31, 2024Investment securities - Available-for-sale$968,514 $934,132 $64,170 $103,595 Subordinated debentures318,976 — (2,274)— Cash Flow HedgesFor derivative instruments that are designated and qualify as a cash flow hedge, the aggregate fair