Company: SFNC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050112
Chunk: 118

Company: SIMMONS FIRST NATIONAL CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 118
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 value of the derivative instrument is recorded in other assets or other liabilities with any gain or loss related to changes in fair value recorded in accumulated other comprehensive income (loss), net of tax. The gain or loss is reclassified into earnings in the same period during which the hedged asset or liability affects earnings and is presented in the same income statement line item as the earnings effect of the hedged asset or liability. During the third quarter of 2025, the Company executed step-down interest rate swaps on certain variable rate loans within the CRE and commercial and industrial portfolios with maturity dates ranging from 2026 to 2029 and certain securities within the variable rate commercial MBS portfolio with maturity dates ranging from 2026 to 2027. These receive-fixed/pay-variable swaps are used to manage variability in future cash flows related to interest rate exposure within each portfolio.The following table summarizes the cash flow hedges recorded in the accompanying consolidated balance sheets.September 30, 2025December 31, 2024(In thousands)Balance Sheet LocationWeighted Average Pay RateReceive RateNotionalFair ValueNotionalFair ValueVariable rate loansOther assets1M CME Term SOFR3.18% - 4.05%$1,000,000 $1,216 $— $— Variable rate commercial MBSOther assetsSOFR 30A3.07% - 3.82%300,000 162 — — The following table summarizes the 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