Company: SFNC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050112
Chunk: 252

Company: SIMMONS FIRST NATIONAL CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 252
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 cash flow hedges relationships on the statement of comprehensive income (loss).Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss)Three Months EndedSeptember 30,Nine Months EndedSeptember 30,(In thousands)2025202420252024Variable rate loans$1,216 $— $1,216 $— Variable rate commercial MBS162 — 162 — The cash flow hedges were determined to be highly effective during the periods presented and as a result qualify for hedge accounting treatment.

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Customer Risk Management Interest Rate SwapsThe Company’s qualified loan customers have the opportunity to participate in its interest rate swap program for the purpose of managing interest rate risk on their variable rate loans with the Company. The Company enters into such agreements with customers, then offsetting agreements are executed between the Company and an approved dealer counterparty to minimize market risk from changes in interest rates. The counterparty contracts are identical to customer contracts in terms of notional amounts, interest rates, and maturity dates, except for a fixed pricing spread or fee paid to the Company by the dealer counterparty. These interest rate swaps carry varying degrees of credit, interest rate and market or liquidity risks. The fair value of these derivative instruments is recognized as either derivative assets or liabilities in the accompanying consolidated balance sheets. The Company has a limited number of swaps that are standalone without a similar agreement with the loan customer.The following table summarizes the fair values of loan derivative contracts recorded in the accompanying consolidated balance sheets.September 30, 2025December 31, 2024(In thousands)NotionalFair ValueNotionalFair ValueDerivative assets$999,054 $32,119 $748,752 $24,108 Derivative liabilities999,961 33,089 749,683 24,032 Risk Participation AgreementsThe Company has a limited number of Risk Participation Agreement swaps, that are associated with loan participations, where the Company is not the counterparty to the interest rate swaps that are associated with the risk participation sold. The interest rate swap mark to market only impacts the Company if the swap is in a liability position to the counterparty and the customer defaults on payments to the counterparty. The notional amount of these contingent agreements is $13.1 million as of September 30, 2025.Energy HedgingThe Company, from time-to-time, has provided energy derivative services to qualifying, high quality oil and gas borrowers for hedging purposes.