What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-05-08 compared with 2024-11-07 · 242 added, 401 removed, 1229 unchanged (34% of the section changed)

2 unchanged sentences

Consolidated Balance Sheets

September 30, 2024 and December 31, 2023

September 30, December 31,

March 31, 2025 and December 31, 2024

March 31, December 31,

(In thousands, except share data) 2025 2024

4 unchanged sentences

Investment securities:

Held-to-maturity, net of allowance for credit losses of $ 3,214 at September 30, 2024 and December 31, 2023

Held-to-maturity, net of allowance for credit losses of $ 3,214 at March 31, 2025 and December 31, 2024

3,615,556 3,636,636

Available-for-sale, (amortized cost of $ 2,976,811 and $ 3,509,709 at September 30, 2024 and December 31, 2023, respectively)

Available-for-sale, (amortized cost of $ 2,828,940 and $ 2,852,774 at March 31, 2025 and December 31, 2024, respectively)

2,491,849 2,529,426

24 unchanged sentences

Common stock, Class A, $ 0.01 par value;

350,000,000 shares authorized at September 30, 2024 and December 31, 2023;

125,554,598 and 125,184,119 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively

350,000,000 shares authorized at March 31, 2025 and December 31, 2024;

125,926,822 and 125,651,540 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively

Surplus 2,515,372 2,511,590

6 unchanged sentences

Consolidated Statements of Income

Three and Nine Months Ended September 30, 2024 and 2023

Three Months Ended March 31, 2025 and 2024

Three Months Ended

September 30, Nine Months Ended

September 30,

(In thousands, except per share data) 2025 2024

(Unaudited) (Unaudited)

INTEREST INCOME

20 unchanged sentences

Other service charges and fees 1,333 1,279

Loss on sale of securities, net ( 28,393 ) — ( 28,393 ) ( 391 )

Other income 8,007 7,172

6 unchanged sentences

Deposit insurance 5,391 7,135

Merger related costs — 5 — 1,420

Other operating expenses 46,051 42,513

8 unchanged sentences

Consolidated Statements of Comprehensive Income (Loss)

Three and Nine Months Ended September 30, 2024 and 2023

Three Months Ended March 31, 2025 and 2024

Three Months Ended

September 30, Nine Months Ended

September 30,

(In thousands) 2025 2024

(Unaudited) (Unaudited)

NET INCOME $ 32,388 $ 38,871

1 unchanged sentence

Unrealized holding gains (losses) arising during the period on available-for-sale securities 4,278 ( 26,149 )

Reclassification adjustment for realized losses included in net income ( 28,393 ) — ( 28,393 ) ( 391 )

Realized gains (losses) on available-for-sale securities interest rate hedges 19,186 ( 15,375 )

3 unchanged sentences

TOTAL OTHER COMPREHENSIVE INCOME (LOSS) ( 6,800 ) ( 3,641 )

COMPREHENSIVE INCOME (LOSS) $ 94,360 $ ( 27,145 ) $ 172,888 $ 124,330

COMPREHENSIVE INCOME $ 25,588 $ 35,230

See Condensed Notes to Consolidated Financial Statements.

1 unchanged sentence

Consolidated Statements of Cash Flows

Nine Months Ended September 30, 2024 and 2023

(In thousands) September 30, 2024 September 30, 2023

Three Months Ended March 31, 2025 and 2024

(In thousands) March 31, 2025 March 31, 2024

(Unaudited) (Unaudited)

4 unchanged sentences

Provision for credit losses 26,797 10,206

Loss on sale of investments 28,393 391

Net amortization of investment securities and assets 4,214 4,676

1 unchanged sentence

Stock-based compensation expense 5,290 4,413

Loss (gain) on sale of foreclosed assets and other real estate owned ( 911 ) ( 193 )

Loss on sale of closed branches 17 —

(Gain) loss on sale of foreclosed assets and other real estate owned ( 87 ) 5

Gain on sale of mortgage loans held for sale ( 2,007 ) ( 1,864 )

13 unchanged sentences

Proceeds from sale of loans 8,578 211

Net change in due from banks - time — 695

Proceeds from sale of closed branches 11,077 —

Purchases of premises and equipment, net ( 10,151 ) ( 9,848 )

Proceeds from sale of foreclosed assets and other real estate owned 1,591 1,218

Proceeds from sale of available-for-sale securities 251,517 —

Proceeds from maturities of available-for-sale securities 74,517 114,212

1 unchanged sentence

Proceeds from maturities of held-to-maturity securities 19,112 17,037

Purchases of held-to-maturity securities ( 1,000 ) ( 62,885 )

Surrender of bank owned life insurance 2,201 —

Purchases of bank owned life insurance ( 27 ) —

Proceeds from bank owned life insurance death benefits 607 1,376

8 unchanged sentences

Shares issued under employee stock purchase plan 836 970

Repurchases of common stock — ( 39,999 )

Net cash (used in) provided by financing activities ( 332,340 ) ( 31,630 )

(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS ( 10,690 ) ( 76,474 )

Net cash used in financing activities ( 76,880 ) ( 28,680 )

DECREASE IN CASH AND CASH EQUIVALENTS ( 53,091 ) ( 10,789 )

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 687,377 614,092

3 unchanged sentences

Consolidated Statements of Stockholders’ Equity

Three Months Ended September 30, 2024 and 2023

(In thousands, except share data) Common

Stock Surplus Accumulated

Comprehensive

Income (Loss) Undivided

Profits Total

Three Months Ended September 30, 2024

Balance, June 30, 2024 (Unaudited) $ 1,255 $ 2,506,469 $ ( 405,481 ) $ 1,356,626 $ 3,458,869

Comprehensive income — — 69,620 24,740 94,360

Stock-based compensation plans, net – 67,078 shares

1 1,969 — — 1,970

Dividends on common stock – $ 0.21 per share

— — — ( 26,366 ) ( 26,366 )

Balance, September 30, 2024 (Unaudited) $ 1,256 $ 2,508,438 $ ( 335,861 ) $ 1,355,000 $ 3,528,833

Three Months Ended September 30, 2023

Balance, June 30, 2023 (Unaudited) $ 1,262 $ 2,516,398 $ ( 469,988 ) $ 1,308,654 $ 3,356,326

Comprehensive (loss) income — — ( 74,392 ) 47,247 ( 27,145 )

Stock-based compensation plans, net – 37,536 shares

1 1,441 — — 1,442

Stock repurchases – 1,128,962 shares

( 12 ) ( 19,965 ) — — ( 19,977 )

Dividends on common stock – $ 0.20 per share

— — — ( 25,091 ) ( 25,091 )

Balance, September 30, 2023 (Unaudited) $ 1,251 $ 2,497,874 $ ( 544,380 ) $ 1,330,810 $ 3,285,555

See Condensed Notes to Consolidated Financial Statements.

Simmons First National Corporation

Consolidated Statements of Stockholders’ Equity

Nine Months Ended September 30, 2024 and 2023

Three Months Ended March 31, 2025 and 2024

(In thousands, except share data) Common

3 unchanged sentences

Profits Total

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Balance, December 31, 2024 $ 1,257 $ 2,511,590 $ ( 360,910 ) $ 1,376,935 $ 3,528,872

Comprehensive income — — 68,514 104,374 172,888

Comprehensive (loss) income — — ( 6,800 ) 32,388 25,588

Stock issued for employee stock purchase plan – 46,857 shares

4 unchanged sentences

— — — ( 26,759 ) ( 26,759 )

Balance, September 30, 2024 (Unaudited) $ 1,256 $ 2,508,438 $ ( 335,861 ) $ 1,355,000 $ 3,528,833

Nine Months Ended September 30, 2023

Balance, March 31, 2025 (Unaudited) $ 1,259 $ 2,515,372 $ ( 367,710 ) $ 1,382,564 $ 3,531,485

Three Months Ended March 31, 2024

Balance, December 31, 2023 $ 1,252 $ 2,499,930 $ ( 404,375 ) $ 1,329,681 $ 3,426,488

4 unchanged sentences

2 2,773 — — 2,775

Stock repurchases - 2,257,049 shares

( 23 ) ( 39,976 ) — — ( 39,999 )

Dividends on common stock – $ 0.21 per share

— — — ( 26,337 ) ( 26,337 )

Balance, September 30, 2023 (Unaudited) $ 1,251 $ 2,497,874 $ ( 544,380 ) $ 1,330,810 $ 3,285,555

Balance, March 31, 2024 (Unaudited) $ 1,254 $ 2,503,673 $ ( 408,016 ) $ 1,342,215 $ 3,439,126

See Condensed Notes to Consolidated Financial Statements.

8 unchanged sentences

checking, savings and time deposits;

and specialized products and services (such as credit cards, trust and fiduciary services, investments, agricultural finance lending, equipment lending, insurance and Small Business Administration (“SBA”) lending) from approximately 234 financial centers as of September 30, 2024, located throughout market areas in Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas.

and specialized products and services (such as credit cards, trust and fiduciary services, investments, agricultural finance lending, equipment lending, insurance and Small Business Administration (“SBA”) lending) from approximately 222 financial centers as of March 31, 2025, located throughout market areas in Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas.

Basis of Presentation

12 unchanged sentences

These material estimates could change as a result of the uncertainty in current macroeconomic conditions and other factors that are beyond the Company’s control and could cause actual results to differ materially from those projected.

The Company identified an error in its previously issued unaudited consolidated statements of cash flows.

During the second quarter of 2024, the Company identified an error in its previously issued unaudited consolidated statements of cash flows.

The cash flows associated with other borrowings were presented on a net basis, rather than on a gross basis.

The Company corrected this error in the accompanying unaudited consolidated statements of cash flows for the nine months ended September 30, 2023.

The Company has corrected this error in the accompanying unaudited consolidated statements of cash flows for the three months ended March 31, 2024.

The correction had no impact to the total net cash used in financing activities in the period.

1 unchanged sentence

Recently Adopted Accounting Standards

Investment-Income Taxes - In March 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No.

2023-02, Investments-Equity Method and Joint Ventures (Topic 323):

Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (“ASU 2023-02”), that introduced the option to apply the proportional amortization method to account for investments made primarily for the purpose of receiving income tax credits and other income tax benefits when certain requirements are met.

The proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received, with the amortization of the investment and the income tax credits being presented net in the income statement as a component of income tax expense (benefit).

ASU 2023-02 was effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 31, 2023, with early adoption permitted.

The Company elected to early adopt ASU 2023-02 and apply the proportional amortization method for all income tax credits during the first quarter of 2023 by utilizing the modified retrospective method.

The adoption of ASU 2023-02 did not have a material impact on the Company’s results of operations, financial position or disclosures.

Credit Losses on Financial Instruments - In March 2022, the FASB issued ASU No.

2022-02, Financial Instruments - Credit Losses (Topic 326):

Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”), which eliminated the accounting guidance on troubled debt restructurings (“TDRs”) for creditors in ASC Topic 310-40 and amended the guidance on “vintage disclosures” to require disclosure of current-period gross write-offs by year of origination.

The ASU also updated the requirements related to accounting for credit losses under ASC 326 and added enhanced disclosures for creditors with respect to loan refinancings and restructurings made to borrowers experiencing financial difficulty.

ASU 2022-02 was effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022, with early adoption permitted.

The Company adopted ASU 2022-02 effective January 1, 2023 on a prospective basis.

The adoption of ASU 2022-02 did not have a material impact on the Company’s results of operations or financial position.

See Note 4, Loans and Allowance for Credit Losses, for additional information.

Fair Value Hedging - In March 2022, the FASB issued ASU No.

2022-01, Derivatives and Hedging (Topic 815):

Fair Value Hedging - Portfolio Layer Method (“ASU 2022-01”), which clarified the guidance on fair value hedge accounting of interest rate risk for portfolios of financial assets.

This ASU amended the guidance in ASU 2017-12 that, among other things, established the “last-of-layer” method for making the fair value hedge accounting for these portfolios more accessible.

ASU 2022-01 renamed that method the “portfolio layer” method and expanded the scope of the guidance to allow entities to apply the portfolio layer method to portfolios of all financial assets, including both prepayable and nonprepayable financial assets.

The scope expansion is consistent with the FASB’s efforts to simplify hedge accounting and allowed entities to apply the same method to similar hedging strategies.

ASU 2022-01 was effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022, with early adoption permitted.

The adoption of 2022-01 did not have a material impact on the Company’s results of operations, financial position or disclosures.

Stock Compensation - In March 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No.

2024-01, Compensation-Stock Compensation (Topic 718):

Scope Application of Profits Interest and Similar Awards (“ASU 2024-01”), in response to feedback received by the FASB requesting guidance on how entities should determine the appropriate guidance to apply when accounting for the issuance of profits interest units and similar types of awards.

ASU 2024-01 added an example with four fact patterns to ASC 718-10 to assist preparers of financial statements in determining whether profits interest and similar awards should be accounted for within the scope of the guidance.

ASU 2024-01 only addresses the scope determination and does not amend the recognition, classification or measurement guidance.

ASU 2024-01 was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2024, with early adoption permitted for interim or annual financial statements that have not yet been issued or made available for issuance.

Entities may choose to adopt 2024-01 on a prospective or retrospective basis.

The adoption of ASU 2024-01 did not have a material impact on the Company’s operations, financial position or disclosures.

Income Taxes - In December 2023, the FASB issued ASU No.

2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures (“ASU 2023-09”), primarily focused on income tax disclosures regarding effective tax rates and cash income taxes paid.

ASU 2023-09 requires public business entities, on an annual basis, to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than five percent of the amount computed by multiplying pretax income by the applicable statutory income tax rate).

ASU 2023-09 was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2024, with early adoption permitted.

The adoption of ASU 2023-09 did not have a material impact on the Company’s operations, financial position or disclosures.

Segment Reporting - In November 2023, the FASB issued ASU No.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which expanded reportable segment disclosure requirements through enhanced disclosures about significant segment expenses.

The amendments in this update introduced a new requirement to disclose significant segment expenses regularly provided to the chief operating decision maker, extend certain annual disclosures to interim periods, clarify that single reportable segment entities must apply Topic 280 in its entirety, permit more than one measure of segment profit or loss to be reported under certain conditions and require disclosure of the title and position of the chief operating decision maker.

ASU 2023-07 was effective for public business entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.

The adoption of ASU 2023-07 did not have a material impact on the Company’s operations, financial position or disclosures.

See Note 18, Operating Segments, for additional information.

Reference Rate Reform – In March 2020, the FASB issued ASU No.

14 unchanged sentences

Pursuant to the Joint Regulatory Statement on LIBOR transition issued in October 2021, the Company’s policy, as of January 1, 2022, is not to enter into any new LIBOR-based credit agreements and not extend, renew, or modify prior LIBOR credit agreements without requiring conversion of the agreements to other interest rates.

The adoption of ASU 2020-04 has not had a material impact on the Company’s financial position or results of operations.

The adoption of ASU 2020-04 did not have a material impact on the Company’s financial position or results of operations.

In January 2021, the FASB issued ASU No.

2 unchanged sentences

ASU 2021-01 also amended the expedients and exceptions in ASC 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition.

ASU 2021-01 was effective upon issuance and generally could be applied through December 31, 2022.

ASU 2021-01 was effective upon issuance and generally can be applied through December 31, 2022.

ASU 2021-01 did not have a material impact on the Company’s financial position or results of operations.

2 unchanged sentences

Deferral of the Sunset Date of Topic 848 (“ASU 2022-06”).

ASU 2022-06 deferred the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848.

ASU 2022-06 deferred the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities are no longer permitted to apply the relief in Topic 848.

Recently Issued Accounting Standards

Stock Compensation - In March 2024, the FASB issued ASU No.

2024-01, Compensation-Stock Compensation (Topic 718):

ASU 2024-01 adds an example with four fact patterns to ASC 718-10 to assist preparers of financial statements in determining whether profits interest and similar awards should be accounted for within the scope of the guidance.

ASU 2024-01 only addresses the scope determination and does not amend the recognition, classification or measurement guidance.

ASU 2024-01 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2024, with early adoption permitted for interim or annual financial statements that have not yet been issued or made available for issuance.

Entities may choose to adopt 2024-01 on a prospective or retrospective basis.

The adoption of ASU 2024-01 is not expected to have a material impact on the Company’s operations, financial position or disclosures.

Income Taxes - In December 2023, the FASB issued ASU No.

2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures (“ASU 2023-09”), primarily focused on income tax disclosures regarding effective tax rates and cash income taxes paid.

ASU 2023-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2024, with early adoption permitted.

The adoption of ASU 2023-09 is not expected to have a material impact on the Company’s operations, financial position or disclosures.

Segment Reporting - In November 2023, the FASB issued ASU No.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which expands reportable segment disclosure requirements through enhanced disclosures about significant segment expenses.

The amendments in this update introduce a new requirement to disclose significant segment expenses regularly provided to the chief operating decision maker, extend certain annual disclosures to interim periods, clarify that single reportable segment entities must apply Topic 280 in its entirety, permit more than one measure of segment profit or loss to be reported under certain conditions and require disclosure of the title and position of the chief operating decision maker.

ASU 2023-07 is effective for public business entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.

The adoption of ASU 2023-07 is not expected to have a material impact on the Company’s operations, financial position or disclosures.

Disaggregation of Income Statement Expenses - In November 2024, the FASB issued ASU No.

2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses (“ASU 2024-03”), that requires footnote disclosure about specific expenses by requiring companies to disaggregate, in a tabular presentation, each relevant expense caption on the face of the income statement that includes any of the following natural expenses:

(i) purchases of inventory, (ii) employee compensation, (iii) depreciation, (iv) intangible asset amortization and (v) depreciation, depletion and amortization recognized as part of oil- and gas-producing activities.

The tabular disclosure would also include certain other expenses, when applicable.

ASU 2024-03 does not change or remove existing expense disclosure requirements;

however, it may affect where that information appears in the footnotes to the financial statements.

ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted.

The Company is currently evaluating the impact ASU 2024-03 will have on its results of operations, financial position or disclosures.

There have been no other significant changes to the Company’s accounting policies disclosed in Note 1, Summary of Significant Accounting Policies, of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

Presently, the Company is not aware of any other changes to the Accounting Standards Codification that will have a material impact on its present or future financial position or results of operations.

Spirit of Texas Bancshares, Inc.

On April 8, 2022, the Company completed its merger with Spirit of Texas Bancshares, Inc.

(“Spirit”) pursuant to the terms of the Agreement and Plan of Merger dated as of November 18, 2021 (“Spirit Agreement”), at which time Spirit merged with and into the Company, with the Company continuing as the surviving corporation.

The Company issued 18,275,074 shares of its common stock valued at approximately $ 464.9 million as of April 8, 2022, plus $ 1,393,508.90 in cash, in exchange for all outstanding shares of Spirit capital stock (and common stock equivalents) to effect the merger.

Prior to the acquisition, Spirit, headquartered in Conroe, Texas, conducted banking business through its subsidiary bank, Spirit of Texas Bank SSB, from 35 branches located primarily in the Texas Triangle - consisting of Dallas-Fort Worth, Houston, San Antonio and Austin metropolitan areas - with additional locations in the Bryan-College Station, Corpus Christi and Tyler metropolitan areas, along with offices in North Central and South Texas.

Including the effects of the acquisition method accounting adjustments, the Company acquired approximately $ 3.11 billion in assets, including approximately $ 2.29 billion in loans (inclusive of loan discounts), and approximately $ 2.72 billion in deposits.

Goodwill of $ 174.1 million was recorded as a result of the transaction.

The merger strengthened the Company’s position in the Texas market and brought forth additional opportunities in the Company’s current footprint, which gave rise to the goodwill recorded.

The goodwill will not be deductible for tax purposes.

A summary, at fair value, of the assets acquired and liabilities assumed in the Spirit acquisition, as of the acquisition date, is as follows:

(In thousands) Acquired from Spirit Fair Value Adjustments Fair Value

Assets Acquired

Cash and due from banks $ 277,790 $ — $ 277,790

INVESTMENT SECURITIES

Loans acquired 2,314,085 ( 19,925 ) 2,294,160

Allowance for credit losses on loans ( 17,005 ) 7,382 ( 9,623 )

Premises and equipment 84,135 ( 19,074 ) 65,061

Bank owned life insurance 36,890 — 36,890

Goodwill 77,681 ( 77,681 ) —

Core deposit and other intangible assets 6,245 32,386 38,631

Other assets 58,403 ( 3,411 ) 54,992

Total assets acquired $ 3,200,312 $ ( 93,724 ) $ 3,106,588

Liabilities Assumed

Noninterest bearing transaction accounts $ 825,228 $ ( 534 ) $ 824,694

Interest bearing transaction accounts and savings deposits 1,383,663 — 1,383,663

Time deposits 509,209 1,081 510,290

Total deposits 2,718,100 547 2,718,647

Other borrowings 37,547 503 38,050

Subordinated debentures 36,491 879 37,370

Accrued interest and other liabilities 23,667 ( 3,311 ) 20,356

Total liabilities assumed 2,815,805 ( 1,382 ) 2,814,423

Equity 384,507 ( 384,507 ) —

Total equity assumed 384,507 ( 384,507 ) —

Total liabilities and equity assumed $ 3,200,312 $ ( 385,889 ) $ 2,814,423

Net assets acquired 292,165

Purchase price 466,311

Goodwill $ 174,146

During 2023, the Company finalized its analysis of the loans acquired along with other acquired assets and assumed liabilities related to the Spirit acquisition.

The Company’s operating results include the operating results of the acquired assets and assumed liabilities of Spirit subsequent to the acquisition date.

The following is a description of the methods used to determine the fair values of significant assets and liabilities presented in the acquisition above.

Cash and due from banks – The carrying amount of these assets is a reasonable estimate of fair value based on the short-term nature of these assets.

Investment securities – Investment securities were acquired with an adjustment to fair value based upon quoted market prices if material.

Otherwise, the carrying amount of these assets was deemed to be a reasonable estimate of fair value.

Loans acquired – Fair values for loans were based on a discounted cash flow methodology that considered factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and current discount rates.

The discount rates used for loans are based on current market rates for new originations of comparable loans and include adjustments for liquidity concerns.

The discount rate does not include a factor for credit losses as that has been included in the estimated cash flows.

Loans were grouped together according to similar characteristics and were treated in the aggregate when applying various valuation techniques.

See Note 4, Loans and Allowance for Credit Losses, in the accompanying Notes to Consolidated Financial Statements for additional information related to purchased financial assets with credit deterioration.

Premises and equipment – Bank premises and equipment were acquired with an adjustment to fair value, which represents the difference between the Company’s current analysis of property and equipment values completed in connection with the acquisition and book value acquired.

Bank owned life insurance – Bank owned life insurance is carried at its current cash surrender value, which is the most reasonable estimate of fair value.

Goodwill – The consideration paid as a result of the acquisition exceeded the fair value of the assets acquired, resulting in an intangible asset, goodwill.

Goodwill established prior to the acquisitions, if applicable, was written off.

Core deposit intangible – This intangible asset represents the value of the relationships that the acquired banks had with their deposit customers.

The fair value of this intangible asset was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition rates, cost of the deposit base and the net maintenance cost attributable to customer deposits.

Any core deposit intangible established prior to the acquisitions, if applicable, was written off.

Other assets – The fair value adjustment results from certain assets whose value was estimated to be more or less than book value, such as certain prepaid assets, receivables and other miscellaneous assets.

Otherwise, the carrying amount of these assets was deemed to be a reasonable estimate of fair value.

Deposits – The fair values used for the demand and savings deposits that comprise the transaction accounts acquired, by definition equal the amount payable on demand at the acquisition date.

The Company performed a fair value analysis of the estimated weighted average interest rate of the certificates of deposits compared to the current market rates and recorded a fair value adjustment for the difference when material.

Other borrowings – The fair value of other borrowings is estimated based on borrowing rates currently available to the Company for borrowings with similar terms and maturities.

Subordinated debentures – The fair value of subordinated debentures is estimated based on borrowing rates currently available to the Company for borrowings with similar terms and maturities.

Accrued interest and other liabilities – The fair value adjustment results from certain liabilities whose value was estimated to be more or less than book value, such as certain accounts payable and other miscellaneous liabilities.

The adjustment also establishes a liability for unfunded commitments equal to the fair value of that liability at the date of acquisition.

The carrying amount of accrued interest and the remainder of other liabilities was deemed to be a reasonable estimate of fair value.

INVESTMENT SECURITIES

Held-to-maturity (“HTM”) securities, which include any security for which the Company has both the positive intent and ability to hold until maturity, are carried at historical cost adjusted for amortization of premiums and accretion of discounts.

9 unchanged sentences

During the quarters ended June 30, 2022 and September 30, 2021, the Company transferred, at fair value, $ 1.99 billion and $ 500.8 million, respectively, of securities from the AFS portfolio to the HTM portfolio.

As of September 30, 2024, the related remaining combined net unrealized losses of $ 112.7 million in accumulated other comprehensive income (loss) will be amortized over the remaining life of the securities.

As of March 31, 2025, the related remaining combined net unrealized losses of $ 103.8 million in accumulated other comprehensive income (loss) will be amortized over the remaining life of the securities.

No gains or losses on these securities were recognized at the time of transfer.

5 unchanged sentences

Held-to-maturity

September 30, 2024

March 31, 2025

Government agencies $ 456,545 $ — $ 456,545 $ — $ ( 83,796 ) $ 372,749

14 unchanged sentences

government agencies or corporations.

As of September 30, 2024, HTM MBS consisted of $ 137.2 million and $ 955.9 million of commercial MBS and residential MBS, respectively.

As of December 31, 2023, HTM MBS consisted of $ 141.6 million and $ 1.02 billion of commercial MBS and residential MBS, respectively.

As of March 31, 2025, HTM MBS consisted of $ 134.2 million and $ 914.0 million of commercial MBS and residential MBS, respectively.

As of December 31, 2024, HTM MBS consisted of $ 136.0 million and $ 934.1 million of commercial MBS and residential MBS, respectively.

The amortized cost, fair value and allowance for credit losses of investment securities that are classified as AFS are as follows:

5 unchanged sentences

Available-for-sale

September 30, 2024

March 31, 2025

Treasury $ 700 $ — $ — $ ( 1 ) $ 699

11 unchanged sentences

Total AFS $ 2,852,774 $ — $ 307 $ ( 323,655 ) $ 2,529,426

As of September 30, 2024, AFS MBS consisted of $ 571.9 million and $ 938.5 million of commercial MBS and residential MBS, respectively.

As of December 31, 2023, AFS MBS consisted of $ 710.1 million and $ 1.23 billion of commercial MBS and residential MBS, respectively.

Accrued interest receivable on HTM and AFS securities at September 30, 2024 was $ 17.3 million and $ 24.6 million, respectively, and is included in interest receivable on the consolidated balance sheets.

As of March 31, 2025, AFS MBS consisted of $ 515.9 million and $ 865.0 million of commercial MBS and residential MBS, respectively.

As of December 31, 2024, AFS MBS consisted of $ 517.2 million and $ 875.5 million of commercial MBS and residential MBS, respectively.

Accrued interest receivable on HTM and AFS securities at March 31, 2025 was $ 17.1 million and $ 21.5 million, respectively, and is included in interest receivable on the consolidated balance sheets.

The Company has made the election to exclude all accrued interest receivable from securities from the estimate of credit losses.

The following table summarizes the Company’s AFS investments in an unrealized loss position for which an allowance for credit loss has not been recorded as of September 30, 2024, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:

The following table summarizes the Company’s AFS investments in an unrealized loss position for which an allowance for credit loss has not been recorded as of March 31, 2025 and December 31, 2024, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:

Less Than 12 Months 12 Months or More Total

3 unchanged sentences

Available-for-sale

March 31, 2025

Treasury $ — $ — $ 699 $ ( 1 ) $ 699 $ ( 1 )

4 unchanged sentences

Total AFS $ 27,841 $ ( 303 ) $ 2,384,386 $ ( 337,094 ) $ 2,412,227 $ ( 337,397 )

As of September 30, 2024, the Company’s investment portfolio included $ 2.69 billion of AFS securities, of which $ 2.61 billion, or 97.1 %, were in an unrealized loss position that were not deemed to have credit losses.

December 31, 2024

Treasury $ — $ — $ 996 $ ( 3 ) $ 996 $ ( 3 )

Government agencies 717 ( 7 ) 51,186 ( 1,040 ) 51,903 ( 1,047 )

Mortgage-backed securities 7,480 ( 189 ) 1,384,532 ( 152,595 ) 1,392,012 ( 152,784 )

State and political subdivisions 16,843 ( 195 ) 829,754 ( 157,374 ) 846,597 ( 157,569 )

Other securities 12,912 ( 20 ) 162,803 ( 12,232 ) 175,715 ( 12,252 )

Total AFS $ 37,952 $ ( 411 ) $ 2,429,271 $ ( 323,244 ) $ 2,467,223 $ ( 323,655 )

As of March 31, 2025, the Company’s investment portfolio included $ 2.49 billion of AFS securities, of which $ 2.41 billion, or 96.8 %, were in an unrealized loss position that were not deemed to have credit losses.

A portion of the unrealized losses were related to the Company’s MBS, which are issued and guaranteed by U.S.

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Management believes the declines in fair value for the securities are temporary.

As of September 30, 2024, management does not have the immediate intent to sell the securities, and management believes the accounting standard of “more likely than not” has not been met regarding whether the Company would be required to sell any of the AFS securities before recovery of amortized cost.

As of March 31, 2025, management does not have, and at December 31, 2024 the Company did not have, the immediate intent to sell the securities, and management believes the accounting standard of “more likely than not” has not been met regarding whether the Company would be required to sell any of the AFS securities before recovery of amortized cost.

Allowance for Credit Losses

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(i) issuer bond ratings, (ii) issuer geography, (iii) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities, (iv) probability-weighted multiple scenario forecasts, and (v) the issuers’ size.

The following table details activity in the allowance for credit losses by investment security type for the three and nine months ended September 30, 2024 on the Company’s HTM securities portfolio.

The following table details activity in the allowance for credit losses by investment security type for the three months ended March 31, 2025 on the Company’s HTM securities portfolio.

(In thousands) State and Political Subdivisions Other

Securities Total

Three Months Ended September 30, 2024

Held-to-maturity

Beginning balance, July 1, 2024 $ 191 $ 3,023 $ 3,214

Provision for credit loss expense — — —

Net increase (decrease) in allowance on previously impaired securities 36 ( 36 ) —

Ending balance, September 30, 2024 $ 227 $ 2,987 $ 3,214

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Held-to-maturity

2 unchanged sentences

Net (decrease) increase in allowance on previously impaired securities ( 25 ) 25 —

Ending balance, September 30, 2024 $ 227 $ 2,987 $ 3,214

Activity in the allowance for credit losses by investment security type for the three and nine months ended September 30, 2023 on the Company’s HTM and AFS securities portfolio was as follows:

(In thousands) State and Political Subdivisions Other

Securities Total

Three Months Ended September 30, 2023

Held-to-maturity

Beginning balance, July 1, 2023 $ 934 $ 2,280 $ 3,214

Provision for credit loss expense — — —

Net increase (decrease) in allowance on previously impaired securities 586 ( 586 ) —

Ending balance, September 30, 2023 $ 1,520 $ 1,694 $ 3,214

Available-for-sale

Beginning balance, July 1, 2023 $ — $ 2,396 $ 2,396

Provision for credit loss expense — — —

Net decrease in allowance on previously impaired securities — ( 1,200 ) ( 1,200 )

Ending balance, September 30, 2023 $ — $ 1,196 $ 1,196

Ending balance, March 31, 2025 $ 171 $ 3,043 $ 3,214

Activity in the allowance for credit losses by investment security type for the three months ended March 31, 2024 on the Company’s HTM securities portfolio was as follows:

(In thousands) State and Political Subdivisions Other

Securities Total

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

Held-to-maturity

2 unchanged sentences

Net increase (decrease) in allowance on previously impaired securities 246 ( 246 ) —

Ending balance, September 30, 2023 $ 1,520 $ 1,694 $ 3,214

Available-for-sale

Beginning balance, January 1, 2023 $ — $ — $ —

Provision for credit loss expense — 12,800 12,800

Reduction due to sales — ( 2,078 ) ( 2,078 )

Net decrease in allowance on previously impaired securities — ( 2,526 ) ( 2,526 )

Securities charged-off — ( 7,000 ) ( 7,000 )

Ending balance, September 30, 2023 $ — $ 1,196 $ 1,196

Based upon the Company’s analysis of the underlying risk characteristics of its HTM and AFS portfolios, including credit ratings and other qualitative factors, as previously discussed, there was no provision for credit losses related to the Company’s securities portfolios recorded for the three and nine months ended September 30, 2024.

The Company recorded a provision for credit losses related to AFS securities of $ 12.8 million for the nine months ended September 30, 2023.

During the same period, the provision for credit loss expense on AFS securities was reduced by $ 2.5 million related to previously impaired securities.

Additionally, during the nine months ended September 30, 2023, the Company charged-off $ 7.0 million directly related to one corporate bond which was deemed uncollectible in the period.

The following table summarizes bond ratings for the Company’s HTM portfolio, based upon amortized cost, issued by state and political subdivisions and other securities as of September 30, 2024:

Ending balance, March 31, 2024 $ 2,252 $ 962 $ 3,214

The following table summarizes bond ratings for the Company’s HTM portfolio, based upon amortized cost, issued by state and political subdivisions and other securities as of March 31, 2025:

State and Political Subdivisions

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Accordingly, no allowance for credit losses has been recorded for these securities as there is no current expectation of credit losses related to these securities.

Income earned on securities for the three and nine months ended September 30, 2024 and 2023, is as follows:

Income earned on securities for the three months ended March 31, 2025 and 2024, is as follows:

Three Months Ended

September 30, Nine Months Ended

September 30,

(In thousands) 2025 2024

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Total $ 47,257 $ 58,001

The amortized cost and estimated fair value by maturity of securities as of September 30, 2024 are shown in the following table.

The amortized cost and estimated fair value by maturity of securities as of March 31, 2025 are shown in the following table.

Securities are classified according to their contractual maturities without consideration of principal amortization, potential prepayments or call options.

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Total $ 3,618,770 $ 2,929,625 $ 2,828,940 $ 2,491,849

The carrying value, which approximates the fair value, of securities pledged as collateral, to secure public deposits and for other purposes, amounted to $ 2.49 billion at September 30, 2024 and $ 3.32 billion at December 31, 2023.

There were no gross realized gains and $ 28.4 million gross realized losses from the sale of securities during the three and nine months ended September 30, 2024, as the Company sold approximately $ 251.5 million of AFS investment securities as part of a strategic decision to sell low yielding securities to pay off higher rate wholesale fundings consisting of Federal Home Loan Bank (“FHLB”) advances during the quarter.

There were no gross realized gains and no gross realized losses from the call or sale of securities during the three months ended September 30, 2023.

There were no gross realized gains and $ 391,000 of gross realized losses recorded from the sale of securities during the nine months ended September 30, 2023.

The carrying value, which approximates the fair value, of securities pledged as collateral, to secure public deposits and for other purposes, amounted to $ 2.22 billion at March 31, 2025 and $ 2.36 billion at December 31, 2024.

There were no gross realized gains and no gross realized losses from the call or sale of securities during the three months ended March 31, 2025 and 2024, as they were recognized at book value of the security.

The income tax expense/benefit related to security gains/losses was 26.135 % of the gross amounts in 2025 and 2024.

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LOANS AND ALLOWANCE FOR CREDIT LOSSES

At September 30, 2024, the Company’s loan portfolio was $ 17.34 billion, compared to $ 16.85 billion at December 31, 2023.

At March 31, 2025, the Company’s loan portfolio was $ 17.09 billion, compared to $ 17.01 billion at December 31, 2024.

The various categories of loans are summarized as follows:

September 30, December 31,

March 31, December 31,

(In thousands) 2025 2024

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The above table presents total loans at amortized cost.

The difference between amortized cost and unpaid principal balance is due to (i) premiums and discounts associated with acquisition date fair value adjustments on acquired loans of $ 9.0 million and $ 13.2 million at September 30, 2024 and December 31, 2023, respectively, and (ii) deferred origination costs and fees of $ 10.1 million and $ 6.5 million at September 30, 2024 and December 31, 2023, respectively.

Accrued interest on loans, which is excluded from the amortized cost of loans held for investment, totaled $ 83.9 million and $ 77.1 million at September 30, 2024 and December 31, 2023, respectively, and is included in interest receivable on the consolidated balance sheets.

The difference between amortized cost and unpaid principal balance is due to (i) premiums and discounts associated with acquisition date fair value adjustments on acquired loans of $ 6.1 million and $ 7.2 million at March 31, 2025 and December 31, 2024, respectively, and (ii) deferred origination costs and fees of $ 8.4 million and $ 9.6 million at March 31, 2025 and December 31, 2024, respectively.

Accrued interest on loans, which is excluded from the amortized cost of loans held for investment, totaled $ 78.7 million and $ 78.8 million at March 31, 2025 and December 31, 2024, respectively, and is included in interest receivable on the consolidated balance sheets.

Loan Origination/Risk Management – The Company seeks to manage its credit risk by diversifying its loan portfolio, determining that borrowers have adequate sources of cash flow for loan repayment without liquidation of collateral;

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PPP loans have a zero percent risk-weight for regulatory capital ratios.

As of September 30, 2024 and December 31, 2023, the total outstanding balance of PPP loans was $ 2.4 million and $ 4.8 million, respectively.

As of March 31, 2025 and December 31, 2024, the total outstanding balance of PPP loans was $ 1.0 million and $ 1.6 million, respectively.

Other – The other loan portfolio includes mortgage warehouse loans, representing warehouse lines of credit to mortgage originators for the disbursement of newly originated 1-4 family residential loans.

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Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

The amortized cost basis of nonaccrual loans segregated by category of loans are as follows:

September 30, December 31,

The amortized cost basis of nonaccrual loans segregated by class of loans are as follows:

March 31, December 31,

(In thousands) 2025 2024

10 unchanged sentences

Total $ 151,897 $ 110,154

As of September 30, 2024 and December 31, 2023, nonaccrual loans for which there was no related allowance for credit losses had an amortized cost of $ 4.8 million and $ 3.2 million, respectively.

As of March 31, 2025 and December 31, 2024, nonaccrual loans for which there was no related allowance for credit losses had an amortized cost of $ 1.1 million and $ 1.7 million, respectively.

These loans are individually assessed and do not hold an allowance due to being adequately collateralized under the collateral-dependent valuation method.

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Loans 90 Days

September 30, 2024

March 31, 2025

Credit cards $ 1,628 $ 580 $ 2,208 $ 177,472 $ 179,680 $ 459

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The Company primarily uses interest rate reduction and/or payment modifications or extensions, with an occasional forgiveness of principal.

The following table presents a summary of the amortized cost basis of loan modifications granted to borrowers experiencing financial difficulty, segregated by class of loans and type of loan modification, for the three and nine month periods ended September 30, 2024.

Interest Rate Total Class

(Dollars in thousands) Reduction of Loans

Three Months Ended September 30, 2024

Single family residential $ 142 0.01 %

Total real estate $ 142

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Single family residential $ 451 0.02 %

Total real estate $ 451

The financial effects of the loan modifications made to borrowers experiencing financial difficulty were not significant during the three and nine month periods ended September 30, 2024.

Furthermore, such modifications did not significantly impact the Company’s determination of the allowance for credit losses during those periods.

(Dollars in thousands) Term Extension of Loans

Three Months Ended September 30, 2023

Other commercial $ 30,617 0.40 %

Total real estate 30,617

Commercial 85 — %

Total commercial 85

Total $ 30,702

Nine Months Ended September 30, 2023

Other commercial $ 30,617 0.40 %

Total real estate 30,617

Commercial 736 0.03 %

Total commercial 736

Total $ 31,353

The financial effects of the loan modifications made to borrowers experiencing financial difficulty were not significant during the three and nine month periods ended September 30, 2023.

The financial effects of the loan modifications made to borrowers experiencing financial difficulty were not significant during the three month period ended March 31, 2025.

Furthermore, such modifications did not significantly impact the Company’s determination of the allowance for credit losses during those periods.

There were no loan modifications granted to borrowers experiencing financial difficulty during the three month period ended March 31, 2024.

The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty.

There was one commercial loan to a borrower experiencing financial difficulty with a period-end amortized cost basis of $ 23,000 that was modified during the previous twelve months and which subsequently defaulted during the nine months ended September 30, 2024.

There were no loans to borrowers experiencing financial difficulty that had a payment default during the nine months ended September 30, 2023 and were modified in the twelve months prior to default.

There was one CRE loan, related to a downtown St.

Louis hotel that was originated pre-pandemic, to a borrower experiencing financial difficulty with a period-end amortized cost basis of $ 26.9 million that was modified during the previous twelve months and which subsequently defaulted during the three months ended March 31, 2025.

This CRE loan was placed on nonaccrual status during the period.

In relation to loans modified to borrowers experiencing financial difficulty, the Company defines a payment default as a payment received more than 90 days after its due date.

At September 30, 2024 and December 31, 2023, the Company had $ 5.0 million and $ 2.5 million, respectively, of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process.

At September 30, 2024 and December 31, 2023, the Company had $ 575,000 and $ 506,000 , respectively, of Other Real Estate Owned (“OREO”) secured by residential real estate properties.

Credit Quality Indicators – As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to (i) the weighted-average risk rating of commercial and real estate loans, (ii) the level of classified commercial and real estate loans, (iii) net charge-offs, (iv) non-performing loans (see details above) and (v) the general economic conditions of the Company’s local markets.

At March 31, 2025 and December 31, 2024, the Company had $ 5.9 million and $ 4.0 million, respectively, of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process.

At March 31, 2025 and December 31, 2024, the Company had $ 1.2 million and $ 1.3 million, respectively, of Other Real Estate Owned (“OREO”) secured by residential real estate properties.

Credit Quality Indicators – As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to (i) the weighted-average risk rating of commercial and real estate loans, (ii) the level of classified commercial and real estate loans, (iii) net charge-offs, (iv) nonperforming loans (see details above) and (v) the general economic conditions of the Company’s local markets.

The Company utilizes a risk rating matrix to assign a risk rate to each of its commercial and real estate loans.

63 unchanged sentences

• Doubtful and loss - Includes loans with an expanded risk rating of 15 and 16.

The following table presents a summary of loans by credit quality indicator, as of September 30, 2024, segregated by class of loans.

The following table presents a summary of loans by credit quality indicator, as of March 31, 2025, segregated by class of loans.

Term Loans Amortized Cost Basis by Origination Year

25 unchanged sentences

Current-period real estate - SF residential gross charge-offs — 13 — — 42 — 103 — 158

Term Loans Amortized Cost Basis by Origination Year

(In thousands) 2025 (YTD) 2024 2023 2022 2021 2020 and Prior Lines of Credit (“LOC”) Amortized Cost Basis LOC Converted to Term Loans Amortized Cost Basis Total

Real estate - other commercial

5 unchanged sentences

Current-period real estate - other commercial gross charge-offs — — — — — 56 4,211 — 4,267

Term Loans Amortized Cost Basis by Origination Year

(In thousands) 2024 (YTD) 2023 2022 2021 2020 2019 and Prior Lines of Credit (“LOC”) Amortized Cost Basis LOC Converted to Term Loans Amortized Cost Basis Total

Pass 94,983 223,010 214,831 236,156 108,831 55,817 1,344,729 187 2,278,544

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Beyond the reasonable and supportable periods, the economic variables revert to a historical equilibrium at a pace dependent on the state of the economy reflected within the economic scenarios.

To determine the best estimate of credit losses as of September 30, 2024, the Company utilized a probability-weighted, multiple-scenario approach consisting of Baseline, Upside (S1), and Downside (S3) scenarios published by Moody’s Analytics in June 2024 that was updated to reflect the U.S.

To determine the best estimate of credit losses as of March 31, 2025, the Company utilized a probability-weighted, multiple-scenario approach consisting of Baseline, Upside (S1), and Downside (S3) scenarios published by Moody’s Analytics in March 2025 that was updated to reflect the U.S.

economic outlook.

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If a loss is determined to be probable, the loss is included in the allowance for credit losses as a specific allocation.

Loans for which the repayment is expected to be provided substantially through the operation or sale of collateral and where the borrower is experiencing financial difficulty had an amortized cost of $ 109.6 million and $ 144.6 million as of September 30, 2024 and December 31, 2023, respectively, as further detailed in the table below.

Loans for which the repayment is expected to be provided substantially through the operation or sale of collateral and where the borrower is experiencing financial difficulty had an amortized cost of $ 95.4 million and $ 102.6 million as of March 31, 2025 and December 31, 2024, respectively, as further detailed in the table below.

The collateral securing these loans consist of commercial real estate properties, residential properties, and other business assets.

(In thousands) Real Estate Collateral Other Collateral Total

September 30, 2024

March 31, 2025

Construction and development $ 3,594 $ — $ 3,594

9 unchanged sentences

Total $ 70,680 $ 31,900 $ 102,580

The following table details activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2024.

The following table details activity in the allowance for credit losses by portfolio segment for the three months ended March 31, 2025.

Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

3 unchanged sentences

Allowance for credit losses:

Three Months Ended September 30, 2024

Beginning balance, July 1, 2024 $ 43,550 $ 175,176 $ 5,765 $ 5,898 $ 230,389

Provision for credit loss expense 8,088 1,598 1,755 707 12,148

Charge-offs ( 8,235 ) ( 159 ) ( 1,744 ) ( 524 ) ( 10,662 )

Recoveries 439 403 231 275 1,348

Net (charge-offs) recoveries ( 7,796 ) 244 ( 1,513 ) ( 249 ) ( 9,314 )

Ending balance, September 30, 2024 $ 43,842 $ 177,018 $ 6,007 $ 6,356 $ 233,223

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Beginning balance, January 1, 2025 $ 41,587 $ 181,962 $ 6,007 $ 5,463 $ 235,019

3 unchanged sentences

Net (charge-offs) recoveries ( 3,246 ) ( 4,326 ) ( 1,249 ) ( 827 ) ( 9,648 )

Ending balance, September 30, 2024 $ 43,842 $ 177,018 $ 6,007 $ 6,356 $ 233,223

Activity in the allowance for credit losses for the three and nine months ended September 30, 2023 was as follows:

Ending balance, March 31, 2025 $ 39,913 $ 200,079 $ 6,117 $ 6,059 $ 252,168

Activity in the allowance for credit losses for the three months ended March 31, 2024 was as follows:

(In thousands) Commercial Real

2 unchanged sentences

Allowance for credit losses:

Three Months Ended September 30, 2023

Beginning balance, July 1, 2023 $ 30,985 $ 165,813 $ 6,330 $ 6,838 $ 209,966

Provision for credit loss expense 4,095 16,528 704 ( 1,105 ) 20,222

Charge-offs ( 1,219 ) ( 9,723 ) ( 1,318 ) ( 633 ) ( 12,893 )

Recoveries 245 429 234 344 1,252

Net (charge-offs) recoveries ( 974 ) ( 9,294 ) ( 1,084 ) ( 289 ) ( 11,641 )

Ending balance, September 30, 2023 $ 34,106 $ 173,047 $ 5,950 $ 5,444 $ 218,547

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

Beginning balance, January 1, 2024 $ 36,470 $ 177,177 $ 5,868 $ 5,716 $ 225,231

3 unchanged sentences

Net (charge-offs) recoveries ( 4,151 ) ( 2,122 ) ( 1,398 ) ( 399 ) ( 8,070 )

Ending balance, September 30, 2023 $ 34,106 $ 173,047 $ 5,950 $ 5,444 $ 218,547

As of September 30, 2024, the Company’s allowance for credit losses was considered sufficient based upon expected losses that were supported by scenario-weighted economic forecasts.

The provision expense for the three and nine months ended September 30, 2024 was primarily due to the loan growth experienced during the periods, as well as the impact of updated economic assumptions.

Ending balance, March 31, 2024 $ 35,191 $ 180,414 $ 5,768 $ 5,994 $ 227,367

As of March 31, 2025, the Company’s allowance for credit losses was considered sufficient based upon expected losses that were supported by scenario-weighted economic forecasts.

The provision expense for the three months ended March 31, 2025 reflected an incremental provision expense of $ 15.6 million related to two specific credit relationships which migrated to nonperforming during the period, as well as the impact of updated economic assumptions.

Reserve for Unfunded Commitments

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This reserve is maintained at a level management believes to be sufficient to absorb losses arising from unfunded loan commitments.

The reserve for unfunded commitments was $ 25.6 million for both periods ended September 30, 2024 and December 31, 2023.

The reserve for unfunded commitments was $ 25.6 million for both periods ended March 31, 2025 and December 31, 2024.

The adequacy of the reserve for unfunded commitments is determined quarterly based on methodology similar to the methodology for determining the allowance for credit losses.

No adjustment was made to the reserve for unfunded commitments during the three and nine month periods ended September 30, 2024, as it was considered sufficient to cover any loss expectations.

During the three and nine month periods ended September 30, 2023, $ 11.3 million and $ 16.3 million, respectively, was released from the reserve for unfunded commitments primarily due to a decline in unfunded commitments resulting from customers utilizing lines of credit during the periods.

No adjustment was made to the reserve for unfunded commitments during the three month periods ended March 31, 2025 or 2024, as it was considered sufficient to cover any loss expectations.

Provision for Credit Losses

Provision for credit losses is determined by the Company as the amount to be added to the allowance for credit loss accounts for various types of financial instruments including loans, securities and off-balance-sheet credit exposure after net charge-offs have been deducted to bring the allowance to a level which, in management’s best estimate, is necessary to absorb expected credit losses over the lives of the respective financial instruments.

The components of the provision for credit losses for the three and nine month periods ended September 30, 2024 and 2023 were as follows:

The components of the provision for credit losses for the three month periods ended March 31, 2025 and 2024 were as follows:

Three Months Ended

September 30, Nine Months Ended

September 30,

(In thousands) 2025 2024

5 unchanged sentences

Total $ 26,797 $ 10,206

Purchased Credit Deteriorated (“PCD”) Loans

Purchased loans that reflect a more-than-insignificant deterioration of credit from origination are considered PCD.

For PCD loans, the initial estimate of expected credit losses is recognized in the allowance for credit loss on the date of acquisition using the same methodology as discussed in the Allowance for Credit Losses section included above.

The following table provides a summary of loans purchased as part of the Spirit acquisition with credit deterioration at acquisition:

(In thousands) Commercial Real

Estate Credit

and Other Total

Unpaid principal balance $ 8,258 $ 66,534 $ — $ 59 $ 74,851

PCD allowance for credit loss at acquisition ( 6,433 ) ( 3,187 ) — ( 2 ) ( 9,622 )

Non-credit related discount ( 378 ) ( 998 ) — ( 1 ) ( 1,377 )

Fair value of PCD loans $ 1,447 $ 62,349 $ — $ 56 $ 63,852

RIGHT-OF-USE LEASE ASSETS AND LEASE LIABILITIES

4 unchanged sentences

The Company accounts for lease and non-lease components (such as taxes, 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 FHLB advance rates for borrowings of similar term.

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.

2 unchanged sentences

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 September 30, 2024 and December 31, 2023 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.

September 30, December 31,

The following table presents information as of March 31, 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.

March 31, December 31,

(Dollars in thousands) 2025 2024

3 unchanged sentences

Weighted average discount rate 3.73 % 3.81 %

Operating lease cost for the three and nine month periods ended September 30, 2024 was $ 4.0 million and $ 12.2 million, respectively, as compared to $ 4.2 million and $ 11.7 million for the same periods in 2023.

Operating lease cost for the three month period ended March 31, 2025 was $ 4.1 million as compared to $ 4.0 million for the same period in 2024.

PREMISES AND EQUIPMENT

Premises and equipment are stated at cost less accumulated depreciation and amortization.

Total premises and equipment, net at September 30, 2024 and December 31, 2023 were as follows:

September 30, December 31,

Total premises and equipment, net at March 31, 2025 and December 31, 2024 were as follows:

March 31, December 31,

(In thousands) 2025 2024

12 unchanged sentences

Subsequent increases in goodwill value are not recognized in the financial statements.

Goodwill totaled $ 1.32 billion at September 30, 2024 and December 31, 2023.

Goodwill impairment was neither indicated no r recorded during the nine months ended September 30, 2024 or the year ended December 31, 2023.

Goodwill totaled $ 1.32 billion at March 31, 2025 and December 31, 2024.

Goodwill impairment was neither indicated no r recorded during the three months ended March 31, 2025 or the year ended December 31, 2024.

Core deposit premiums represent the value of the relationships that acquired banks had with their deposit customers and are amortized over periods ranging from 10 years to 15 years and are periodically evaluated, at least annually, as to the recoverability of their carrying value.

Other intangible assets represent the value of other acquired relationships, including relationships with trust and wealth management customers, and are being amortized over various periods ranging from 8 years to 15 years.

Changes in the carrying amount and accumulated amortization of the Company’s core deposit premiums and other intangible assets at September 30, 2024 and December 31, 2023 were as follows:

September 30, December 31,

Changes in the carrying amount and accumulated amortization of the Company’s core deposit premiums and other intangible assets at March 31, 2025 and December 31, 2024 were as follows:

March 31, December 31,

(In thousands) 2025 2024

8 unchanged sentences

Total other intangible assets, net $ 93,714 $ 97,242

The carrying basis and accumulated amortization of the Company’s other intangible assets at September 30, 2024 and December 31, 2023 were as follows:

September 30, December 31,

The carrying basis and accumulated amortization of the Company’s other intangible assets at March 31, 2025 and December 31, 2024 were as follows:

March 31, December 31,

(In thousands) 2025 2024

8 unchanged sentences

Total other intangible assets, net $ 93,714 $ 97,242

The Company’s estimated remaining amortization expense on other intangible assets as of September 30, 2024 is as follows:

The Company’s estimated remaining amortization expense on other intangible assets as of March 31, 2025 is as follows:

(In thousands) Year Amortization

3 unchanged sentences

TIME DEPOSITS

Time deposits included approximately $ 1.65 billion and $ 1.73 billion of certificates of deposit over $250,000 at September 30, 2024 and December 31, 2023, respectively.

Brokered time deposits were $ 3.36 billion and $ 2.90 billion at September 30, 2024 and December 31, 2023, respectively.

Time deposits included approximately $ 1.53 billion and $ 1.55 billion of certificates of deposit over $250,000 at March 31, 2025 and December 31, 2024, respectively.

Brokered time deposits were $ 2.91 billion and $ 3.30 billion at March 31, 2025 and December 31, 2024, respectively.

The provision for income taxes is comprised of the following components for the periods indicated below:

Three Months Ended

September 30, Nine Months Ended

September 30,

(In thousands) 2025 2024

3 unchanged sentences

The tax effects of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts that give rise to deferred income tax assets and liabilities, and their approximate tax effects, are as follows:

September 30, December 31,

March 31, December 31,

(In thousands) 2025 2024

22 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

(In thousands) 2025 2024

2 unchanged sentences

State income taxes, net of federal tax benefit ( 272 ) ( 425 )

Stock-based compensation ( 14 ) 28 454 469

Discrete items related to share-based compensation 195 454

Tax exempt interest income ( 3,808 ) ( 3,867 )

28 unchanged sentences

Securities pledged as collateral under repurchase agreements are maintained with the Company’s safekeeping agents.

The gross amount of recognized liabilities for repurchase agreements was $ 50.7 million and $ 67.6 million at September 30, 2024 and December 31, 2023, respectively.

The remaining contractual maturity of the securities sold under agreements to repurchase in the consolidated balance sheets as of September 30, 2024 and December 31, 2023 is presented in the following tables.

The gross amount of recognized liabilities for repurchase agreements was $ 49.7 million and $ 36.7 million at March 31, 2025 and December 31, 2024, respectively.

The remaining contractual maturity of the securities sold under agreements to repurchase in the consolidated balance sheets as of March 31, 2025 and December 31, 2024 is presented in the following tables.

Remaining Contractual Maturity of the Agreements

2 unchanged sentences

90 Days Total

September 30, 2024

March 31, 2025

Repurchase agreements:

4 unchanged sentences

OTHER BORROWINGS AND SUBORDINATED NOTES AND DEBENTURES

Debt at September 30, 2024 and December 31, 2023 consisted of the following components:

September 30, December 31,

Debt at March 31, 2025 and December 31, 2024 consisted of the following components:

March 31, December 31,

(In thousands) 2025 2024

6 unchanged sentences

Subordinated Notes and Debentures

Subordinated notes payable, due 4/1/2028, fixed-to-floating rate (fixed rate of 5.00 % through 3/31/2023, floating rate of 2.15 % above the three month LIBOR rate, reset quarterly) (1)

Subordinated notes payable, due 4/1/2028, fixed-to-floating rate (fixed rate of 5.00 % through 3/31/2023, floating rate of 2.15 % above the three-month SOFR rate, reset quarterly)

330,000 330,000

4 unchanged sentences

Total other borrowings and subordinated debt $ 1,251,194 $ 1,111,665

_________________________

(1) The Company transitioned from the three month LIBOR rate to the three month Secured Overnight Financing Rate (“SOFR”), plus a comparable spread adjustment of 26.161 basis points, beginning with interest accrued on the notes from and after October 1, 2023.

In March 2018, the Company issued $ 330.0 million in aggregate principal amount, of 5.00 % Fixed-to-Floating Rate Subordinated Notes (“Notes”) at a public offering price equal to 100 % of the aggregate principal amount of the Notes.

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The Notes will mature on April 1, 2028 and initially bore interest at a fixed rate of 5.00 % per annum, payable semi-annually in arrears.

From and including April 1, 2023 to, but excluding, the maturity date or the date of earlier redemption, the interest rate resets quarterly to an annual interest rate equal to the “then-current three month LIBOR rate” plus 215 basis points, payable quarterly in arrears, and the Company transitioned from the “then-current three month LIBOR rate” to the “three month SOFR, plus a comparable spread adjustment of 26.161 basis points,” beginning with interest accrued on the Notes from and after October 1, 2023.

From and including April 1, 2023 to, but excluding, the maturity date or the date of earlier redemption, the interest rate resets quarterly to an annual interest rate equal to the “then-current three month LIBOR rate” plus 215 basis points, payable quarterly in arrears, and the Company transitioned from the “then-current three month LIBOR rate” to the “three-month Secured Overnight Financing Rate (‘SOFR’), plus a comparable spread adjustment of 26.161 basis points,” beginning with interest accrued on the Notes from and after October 1, 2023.

The Notes will be subordinated in right of payment to the payment of the Company’s other existing and future senior indebtedness, including all of its general creditors.

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From and including July 31, 2025, to, but excluding, the maturity date or earlier redemption date, the interest rate will reset quarterly to an interest rate per annum equal to a benchmark rate, which is expected to be the then-current three-month SOFR rate, as published by the Federal Reserve Bank of New York (provided, that in the event the benchmark rate is less than zero, the benchmark rate will be deemed to be zero) plus 592 basis points, payable quarterly, in arrears.

The Company had total outstanding FHLB advances of $ 1.03 billion and $ 953.2 million at September 30, 2024 and December 31, 2023, respectively, which are primarily fixed rate, fixed term advances, are due less than one year from origination and therefore are classified as short-term advances by the Company.

At September 30, 2024, the FHLB advances outstanding were secured by mortgage loans and investment securities totaling approximately $ 7.02 billion and the Company had approximately $ 4.96 billion of additional advances available from the FHLB.

The Company had total outstanding FHLB advances of $ 867.9 million and $ 727.9 million at March 31, 2025 and December 31, 2024, respectively, which are primarily whole loan advances, are due less than one year from origination and therefore are classified as short-term advances by the Company.

At March 31, 2025, the FHLB advances outstanding were secured by mortgage loans and investment securities totaling approximately $ 6.60 billion and the Company had approximately $ 4.43 billion of additional advances available from the FHLB.

The Company’s long-term debt primarily includes subordinated debt and other notes payable.

Aggregate annual maturities of long-term debt at September 30, 2024, are as follows:

Aggregate annual maturities of long-term debt at March 31, 2025, are as follows:

Year (In thousands)

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On April 27, 2022, the Company’s shareholders approved an amendment to the Company’s Articles of Incorporation to remove the classification and designation for the Series D Preferred Stock.

As of September 30, 2024, there were no shares of preferred stock issued or outstanding.

As of March 31, 2025, there were no shares of preferred stock issued or outstanding.

On May 17, 2024, the Company filed a shelf registration with the SEC.

The shelf registration statement provides increased flexibility and more efficient access to raise capital from time to time through the sale of common stock, preferred stock, debt securities, depository shares, warrants, purchase contracts, subscription rights, units or a combination thereof, subject to market conditions.

Specific terms and prices are determined at the time of any offering under a separate prospectus supplement that the Company is required to file with the SEC at the time of the specific offering.

In January 2022, the Company’s Board of Directors authorized a stock repurchase program (“2022 Program”) under which the Company could repurchase up to $ 175.0 million of its Class A common stock currently issued and outstanding.

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The Company anticipates funding for this 2024 Program to come from available sources of liquidity, including cash on hand and future cash flow.

No shares were repurchased during the three and nine month periods ended September 30, 2024.

No shares were repurchased during the three month periods ended March 31, 2025 and 2024.

Market conditions and the Company’s capital needs, among other things, will drive decisions regarding additional, future stock repurchases.

During the three and nine month periods ended September 30, 2023, the Company repurchased 1,128,962 shares at an average price of $ 17.69 per share and 2,257,049 shares at an average price of $ 17.72 per share, respectively, under the 2022 Program.

UNDIVIDED PROFITS

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Since Simmons Bank is also under supervision of the Federal Reserve, it is further limited if the total of all dividends declared in any calendar year by Simmons Bank exceeds its net income to date for that year combined with its retained net profits for the preceding two years.

At September 30, 2024, undivided profits of Simmons Bank were approximately $ 536.2 million, none of which were available for payment of dividends to the Company, without prior regulatory approval.

At March 31, 2025, undivided profits of Simmons Bank were approximately $ 561.1 million, $ 62.3 million of which were available for payment of dividends to the Company, without prior regulatory approval.

The risk-based capital guidelines of the Federal Reserve Board and the Arkansas State Bank Department include the definitions for (1) a well-capitalized institution, (2) an adequately-capitalized institution, and (3) an undercapitalized institution.

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Failure to meet this capital conservation buffer would result in additional limits on dividends, other distributions and discretionary bonuses.

As of September 30, 2024, the Company and Simmons Bank met all capital adequacy requirements, including the capital conservation buffer, under the Basel III Capital Rules.

The Company’s CET1 ratio was 12.06 % at September 30, 2024.

As of March 31, 2025, the Company and Simmons Bank met all capital adequacy requirements, including the capital conservation buffer, under the Basel III Capital Rules.

The Company’s CET1 ratio was 12.21 % at March 31, 2025.

STOCK-BASED COMPENSATION

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Pursuant to the plans, shares are reserved for future issuance by the Company upon exercise of stock options or awards of restricted stock, restricted stock units, performance stock units or stock awards granted to directors, officers and other key employees or consultants.

The table below summarizes the transactions under the Company’s active stock-based compensation plans for the nine months ended September 30, 2024:

The table below summarizes the transactions under the Company’s active stock-based compensation plans for the three months ended March 31, 2025:

Stock Options

10 unchanged sentences

Forfeited/expired ( 5 ) 22.20 — — ( 105 ) 26.58

Balance, September 30, 2024 372 $ 22.80 — $ — 1,546 $ 21.01

Exercisable, September 30, 2024 372 $ 22.80

The following table summarizes information about stock options under the plans outstanding at September 30, 2024:

Balance, March 31, 2025 318 $ 22.93 — $ — 1,671 $ 20.54

Exercisable, March 31, 2025 318 $ 22.93

The following table summarizes information about stock options under the plans outstanding at March 31, 2025:

Options Outstanding Options Exercisable

7 unchanged sentences

$ 22.75 — $ 24.07 318 0.45 $ 22.93 318 $ 22.93

24.07 — 24.07 7 0.96 24.07 7 24.07

$ 20.29 — $ 24.07 372 0.87 $ 22.80 372 $ 22.80

The table below summarizes the Company’s performance stock unit activity for the nine months ended September 30, 2024:

The table below summarizes the Company’s performance stock unit activity for the three months ended March 31, 2025:

(In thousands) Performance Stock Units

2 unchanged sentences

Forfeited ( 116 )

Non-vested, September 30, 2024 526

Stock-based compensation expense was $ 8.9 million and $ 9.6 million during the nine month periods ended September 30, 2024 and 2023, respectively.

Non-vested, March 31, 2025 511

Stock-based compensation expense was $ 5.3 million and $ 4.4 million during the three month periods ended March 31, 2025 and 2024, respectively.

Stock-based compensation expense is recognized ratably over the requisite service period for all stock-based awards.

There was no unrecognized stock-based compensation expense related to stock options at September 30, 2024.

Unrecognized stock-based compensation expense related to non-vested stock awards and stock units was $ 18.1 million at September 30, 2024.

There was no unrecognized stock-based compensation expense related to stock options at March 31, 2025.

Unrecognized stock-based compensation expense related to non-vested stock awards and stock units was $ 21.5 million at March 31, 2025.

At such date, the weighted-average period over which this unrecognized expense is expected to be recognized was 2.0 years.

The intrinsic value of stock options outstanding and stock options exercisable at September 30, 2024 was $ 4,000 .

Aggregate intrinsic value represents the difference between the Company’s closing stock price on the last trading day of the period, which was $ 21.54 as of September 30, 2024, and the exercise price multiplied by the number of options outstanding.

There total intrinsic value of stock options exercised during the nine months ended September 30, 2024 and 2023 was $ 48,000 and $ 6,000 , respectively.

There was no intrinsic value of stock options outstanding and stock options exercisable at March 31, 2025.

Aggregate intrinsic value represents the difference between the Company’s closing stock price on the last trading day of the period, which was $ 20.53 as of March 31, 2025, and the exercise price multiplied by the number of options outstanding.

There was no intrinsic value of stock options exercised during the three months ended March 31, 2025 and 2024.

The fair value of the Company’s employee stock options granted is estimated on the date of grant using the Black-Scholes option-pricing model.

This model requires the input of highly subjective assumptions, changes to which can materially affect the fair value estimate.

There were no stock options granted during the nine months ended September 30, 2024 and 2023.

There were no stock options granted during the three months ended March 31, 2025 and 2024.

EARNINGS PER SHARE (“EPS”)

3 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

(In thousands, except per share data) 2025 2024

5 unchanged sentences

Diluted earnings per share $ 0.26 $ 0.31

There were 371,790 stock options excluded from the three and nine months ended September 30, 2024 earnings per share calculation due to the related stock option exercise price exceeding the average market price of the Company’s stock during the periods.

There were 469,280 stock options excluded from the earnings per share calculation for the three and nine months ended September 30, 2023 due to the related stock option exercise price exceeding the average market price of the Company’s stock during the periods.

There were 317,660 stock options excluded from the three months ended March 31, 2025 earnings per share calculation due to the related stock option exercise price exceeding the average market price of the Company’s stock during the period.

There were 410,490 stock options excluded from the earnings per share calculation for the three months ended March 31, 2024 due to the related stock option exercise price exceeding the average market price of the Company’s stock during the period.

ADDITIONAL CASH FLOW INFORMATION

The following is a summary of the Company’s additional cash flow information:

Nine Months Ended

September 30,

Three Months Ended

(In thousands) 2025 2024

3 unchanged sentences

OTHER INCOME AND OTHER OPERATING EXPENSES

Other income for the three and nine months ended September 30, 2024 was $ 8.3 million and $ 21.9 million, respectively.

Other income for the three and nine months ended September 30, 2023 was $ 7.4 million and $ 28.5 million, respectively.

Included in other income during the nine month period ended September 30, 2023 was a $ 4.0 million legal reserve recapture associated with previously disclosed legal matters, coupled with fair value adjustments associated with certain equity investments and death benefits from bank owned life insurance.

Other income for the three months ended March 31, 2025 and 2024 was $ 8.0 million and $ 7.2 million, respectively.

Other operating expenses consisted of the following:

Three Months Ended

September 30, Nine Months Ended

September 30,

(In thousands) 2025 2024

10 unchanged sentences

Total other operating expenses $ 46,051 $ 42,513

OPERATING SEGMENTS

Operating segments are components of an enterprise about which separate financial information is available that is regularly evaluated by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance.

The Company is organized with community and commercial banking groups.

Each of these groups provide one or more similar banking services, including such products and services as loans;

time deposits, checking and savings accounts;

treasury management;

and credit cards.

Loan products include consumer, real estate, commercial, agricultural, equipment, warehouse lending and SBA lending.

The individual banking groups have similar operating and economic characteristics.

While the CODM monitors the revenue streams of the various products, services, branch locations, divisions and groups, operations are managed, financial performance is evaluated, and management makes decisions on how to allocate resources, on a Company-wide basis.

Accordingly, the respective groups are considered by management to be aggregated into one reportable operating segment.

The Company also considers its wealth group, which provides trust and investment services, as well as insurance services, to be operating segments.

Information on these segments is not reported separately since they do not meet the quantitative thresholds under ASC Topic 280-10-50-12, and, as a result, are reported within “Other” in the following table.

The Company’s CODM is the chief executive officer.

The CODM evaluates the performance of the Company’s reportable operating segments using net interest income and net income.

The CODM analyzes on the spread between interest revenue and interest expense (net interest income) to assess performance and to allocate operating and capital resources.

Therefore, interest revenue is presented net of interest expense.

Additionally, the CODM reviews budgeted net income versus actual net income of the Company to allocate resources to meet the Company’s strategic objectives.

The following table provides a summary of the Company’s reportable operating segment results for the three months ended March 31, 2025 and 2024.

Three Months Ended

March 31, 2025 March 31, 2024

(In thousands) Community and Commercial Banking Other Consolidated Community and Commercial Banking Other Consolidated

Net interest income $ 162,872 $ 550 $ 163,422 $ 151,919 $ ( 13 ) $ 151,906

Noninterest income 36,359 9,796 46,155 34,201 8,983 43,184

Total net revenue 199,231 10,346 209,577 186,120 8,970 195,090

Noninterest expense:

Salaries and employee benefits 70,024 4,800 74,824 68,243 4,410 72,653

Occupancy expense, net 12,174 477 12,651 11,807 451 12,258

Furniture and equipment expense 5,465 — 5,465 5,140 1 5,141

Deposit insurance 5,391 — 5,391 7,135 — 7,135

Other operating expenses (1)

44,919 1,330 46,249 41,025 1,667 42,692

Total noninterest expense 137,973 6,607 144,580 133,350 6,529 139,879

Income before provision for credit losses and income taxes 61,258 3,739 64,997 52,770 2,441 55,211

Provision for credit losses 26,797 — 26,797 10,206 — 10,206

Income tax expense 5,802 10 5,812 6,105 29 6,134

Net income $ 28,659 $ 3,729 $ 32,388 $ 36,459 $ 2,412 $ 38,871

(In thousands) Community and Commercial Banking Other Consolidated

Assets as of:

March 31, 2025 $ 26,785,600 $ 7,391 $ 26,792,991

March 31, 2024 $ 27,365,379 $ 6,796 $ 27,372,175

_________________________

(1) Other operating expenses primarily include professional services, marketing, software and technology, amortization of intangibles and other general operating expenses.

CERTAIN TRANSACTIONS

11 unchanged sentences

Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate.

At September 30, 2024, the Company had outstanding commitments to extend credit aggregating approximately $ 759.1 million and $ 3.96 billion for credit card commitments and other loan commitments, respectively.

At March 31, 2025, the Company had outstanding commitments to extend credit aggregating approximately $ 762.4 million and $ 4.19 billion for credit card commitments and other loan commitments, respectively.

At December 31, 2024, the Company had outstanding commitments to extend credit aggregating approximately $ 756.9 million and $ 4.03 billion for credit card commitments and other loan commitments, respectively.

As of September 30, 2024, the Company had outstanding commitments to originate fixed-rate mortgage loans of approximately $ 27.4 million.

As of March 31, 2025, the Company had outstanding commitments to originate fixed-rate mortgage loans of approximately $ 33.3 million.

At December 31, 2024, the Company had outstanding commitments to originate fixed-rate mortgage loans of approximately $ 17.8 million.

3 unchanged sentences

The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers.

The Company had total outstanding letters of credit amounting to $ 58.4 million and $ 54.2 million at September 30, 2024 and December 31, 2023, respectively, with terms ranging from 9 months to 15 years.

At September 30, 2024 and December 31, 2023, the Company had no deferred revenue under standby letter of credit agreements.

The Company had total outstanding letters of credit amounting to $ 49.4 million and $ 41.6 million at March 31, 2025 and December 31, 2024, respectively, with terms ranging from 9 months to 15 years.

At March 31, 2025 and December 31, 2024, the Company had no deferred revenue under standby letter of credit agreements.

The Company has purchased letters of credit from the FHLB as security for certain public deposits.

The amount of the letters of credit was $ 1.02 billion and $ 580.8 million at September 30, 2024 and December 31, 2023, respectively, and they expire in less than one year from issuance.

The amount of the letters of credit was $ 1.30 billion and $ 1.12 billion at March 31, 2025 and December 31, 2024, respectively, and they expire in less than one year from issuance.

FAIR VALUE MEASUREMENTS

36 unchanged sentences

Where assumptions are made using significant unobservable inputs, such loans held for sale are classified as Level 3.

At September 30, 2024 and December 31, 2023, the aggregate fair value of mortgage loans held for sale exceeded their cost.

At March 31, 2025 and December 31, 2024, the aggregate fair value of mortgage loans held for sale exceeded their cost.

Derivative instruments – The Company’s derivative instruments are reported at fair value utilizing Level 2 inputs.

The Company obtains fair value measurements from dealer quotes.

The following table sets forth the Company’s financial assets by level within the fair value hierarchy that were measured at fair value on a recurring basis as of September 30, 2024 and December 31, 2023.

The following table sets forth the Company’s financial assets by level within the fair value hierarchy that were measured at fair value on a recurring basis as of March 31, 2025 and December 31, 2024.

Fair Value Measurements Using

6 unchanged sentences

Unobservable Inputs

September 30, 2024

March 31, 2025

Available-for-sale securities

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As the Company’s primary objective in the event of default would be to liquidate the collateral to settle the outstanding balance of the loan, collateral that is less marketable would receive a larger discount.

The following table sets forth the Company’s assets by level within the fair value hierarchy that were measured at fair value on a nonrecurring basis as of September 30, 2024 and December 31, 2023.

The following table sets forth the Company’s assets by level within the fair value hierarchy that were measured at fair value on a nonrecurring basis as of March 31, 2025 and December 31, 2024.

Fair Value Measurements Using

6 unchanged sentences

Unobservable Inputs

September 30, 2024

March 31, 2025

Individually assessed loans (1) (2) (collateral-dependent)

6 unchanged sentences

________________________

(1) These amounts represent the resulting carrying amounts on the consolidated balance sheets for collateral-dependent loans and foreclosed assets and other real estate owned for which fair value re-measurements took place during the period.

(2) Identified reserves of $ 33.3 million and $ 18.7 million were related to collateral-dependent loans for which fair value re-measurements took place during the periods ended September 30, 2024 and December 31, 2023, respectively.

(2) Identified reserves of $ 42.8 million and $ 30.1 million were related to collateral-dependent loans for which fair value re-measurements took place during the periods ended March 31, 2025 and December 31, 2024, respectively.

ASC Topic 825, Financial Instruments , requires disclosure in annual and interim financial statements of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or nonrecurring basis.

33 unchanged sentences

(In thousands) Amount Level 1 Level 2 Level 3 Total

September 30, 2024

March 31, 2025

Financial assets:

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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, 2024, the net amount included in interest income on investment securities in the consolidated statements of income related to fair value hedges was $ 33.8 million.

For the three month period ended March 31, 2025, the net amount included in interest income on investment securities in the consolidated statements of income related to fair value hedges was $ 7.9 million.

The following table summarizes the fair value hedges recorded in the accompanying consolidated balance sheets.

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

(In thousands) Balance Sheet Location Weighted Average Pay Rate Receive Rate Notional Fair Value Notional Fair Value

2 unchanged sentences

Carrying Amount of Hedged Assets Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Assets

Line Item on the Balance Sheet (In thousands) September 30, 2024 December 31, 2023 September 30, 2024 December 31, 2023

Line Item on the Balance Sheet (In thousands) March 31, 2025 December 31, 2024 March 31, 2025 December 31, 2024

Investment securities - Available-for-sale $ 951,166 $ 934,132 $ 84,874 $ 103,595

7 unchanged sentences

The following table summarizes the fair values of loan derivative contracts recorded in the accompanying consolidated balance sheets.

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

(In thousands) Notional Fair Value Notional Fair Value

4 unchanged sentences

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 $ 23.4 million as of September 30, 2024.

The notional amount of these contingent agreements is $ 22.7 million as of March 31, 2025.

Energy Hedging

5 unchanged sentences

These risks are mitigated by customer credit underwriting policies and establishing a predetermined hedge line for each borrower and by monitoring the exchange margin.

During the second quarter of 2023, the Company’s remaining energy hedge swap contracts expired and there were no outstanding notional values related to these contracts as of September 30, 2024.

The Company has no outstanding notional values related to energy hedge swap contracts as of March 31, 2025.

Currently, the Company generally does not intend to offer hedging services to any remaining energy related customers.

4 unchanged sentences

Results of Review of Interim Financial Statements

We have reviewed the consolidated balance sheet of Simmons First National Corporation (“the Company”) and subsidiaries as of September 30, 2024, and the related consolidated statements of income, comprehensive income (loss), and stockholders’ equity for the three and nine month periods ended September 30, 2024 and 2023, and cash flows for the nine month periods ended September 30, 2024 and 2023, and the related notes (collectively referred to as the “interim financial information or statements”).

We have reviewed the condensed consolidated balance sheet of Simmons First National Corporation (“the Company”) and subsidiaries as of March 31, 2025, and the related condensed consolidated statements of income, comprehensive income (loss), cash flows and stockholders’ equity for the three month periods ended March 31, 2025 and 2024, and the related notes (collectively referred to as the “interim financial information or statements”).

Based on our reviews, we are not aware of any material modifications that should be made to the condensed financial statements referred to above for them to be in conformity with accounting principles generally accepted in the United States of America.

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We conducted our review in accordance with the standards of the PCAOB.

A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters.

A review of interim financial statements consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters.

It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole.

2 unchanged sentences

Little Rock, Arkansas

November 7, 2024

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements