Simmons First National Corporation (SFNC): History, Ownership, Mission, How It Works & Makes Money

Simmons First National Corporation (SFNC) has paid a cash dividend for $\mathbf{116 \text{ consecutive years}}$-but what's the real financial story behind that impressive streak, especially with the market volatility we've seen in 2025? You're looking at a Mid-South powerhouse with $\mathbf{\$24.20 \text{ Billion USD}}$ in total assets as of September 2025 and a market capitalization of $\mathbf{\$2.5 \text{ billion}}$, which defintely matters for any regional bank analysis. While analysts project a $\mathbf{19.9\%}$ jump in earnings for 2025, you can't ignore the reported Q3 2025 net loss of $\mathbf{\$562.8 \text{ million}}$ due to a balance sheet repositioning, so understanding their core net interest income model is crucial right now. We'll break down how this $\mathbf{78.07\%}$ institutionally-owned company makes its money and what its foundational mission means for your investment decisions.

Simmons First National Corporation (SFNC) History

You're looking for the bedrock of Simmons First National Corporation, and honestly, the story is one of conservative, century-long growth fueled by smart, regional acquisitions. The direct takeaway is this: the company started small in 1903 with a focus on community banking, but its transformation into a multi-state financial holding company was a deliberate, multi-decade strategy of buying other banks, culminating in a major, and costly, balance sheet repositioning in 2025 to set up future earnings.

This isn't a Silicon Valley startup story; it's a marathon of consistent, dividend-paying financial stability-they've paid cash dividends for 116 consecutive years. Still, even a bank this old needs to make big, bold moves to stay competitive, as their latest financial engineering shows.

Simmons First National Corporation's Founding Timeline

Year established

The company was established on March 23, 1903, originally as Simmons National Bank.

Original location

Pine Bluff, Arkansas, specifically at the corner of Main and Barraque streets in Jefferson County.

Founding team members

The bank was founded by the physician Dr. John Franklin Simmons.

Initial capital/funding

The initial capital was $50,000, which was a substantial sum then. To be fair, first day deposits only totaled $3,338.22.

Simmons First National Corporation's Evolution Milestones

Simmons First National Corporation's Transformative Moments

The company's trajectory has been defined by a series of strategic acquisitions, but the most recent, and arguably most telling, transformative moment happened in 2025. This move shows the mindset of a realist management team, willing to take a big short-term hit for long-term gain.

The core of the 2025 strategy was a major balance sheet repositioning. They had to address a negative arbitrage-where the cost of shorter-term funding was higher than the yield on long-term bonds they held. So, they took action:

• Raised $327 million in new equity capital in July 2025 with overwhelming investor support.
• Used the capital to sell off low-yielding securities, which unfortunately resulted in a massive one-time pre-tax loss of $801.5 million in the third quarter of 2025.
• The immediate financial impact was a Q3 2025 net loss of $562.8 million, or diluted EPS of $(4.00).
• However, the 'clean' view showed the underlying business improvement: Q3 2025 adjusted net income was $64.9 million, and adjusted diluted EPS was $0.46.

What this estimate hides is the future earnings stream that this move is designed to unlock. It was a painful but necessary trade-off to 'free up capital for future growth,' as the CEO put it, positioning the bank to deliver stronger organic growth across its 220+ branches in six states. If you want to dig into the numbers behind that repositioning, you should read Breaking Down Simmons First National Corporation (SFNC) Financial Health: Key Insights for Investors. They are defintely set up to operate more efficiently now.

Your next step should be to look closely at the Q4 2025 and Q1 2026 earnings reports to see the full benefit of that repositioning flow through to the net interest margin.

Simmons First National Corporation (SFNC) Ownership Structure

Simmons First National Corporation (SFNC) is a publicly traded financial holding company, listed on the NASDAQ Global Select Market under the ticker SFNC. This structure means ownership is dispersed among institutional investors, company insiders, and the general public, with the stock's performance tied to market sentiment and the bank's strategic moves, like the Q3 2025 balance sheet repositioning.

Simmons First National Corporation's Current Status

Simmons First National Corporation is a publicly traded entity, which is a key point for any investor looking at its governance. The company operates as the bank holding company for its principal subsidiary, Simmons Bank, which has a long history, founded in 1903, and has paid a cash dividend for 116 consecutive years. This public status subjects it to strict regulatory oversight by the SEC (Securities and Exchange Commission) and requires transparent financial reporting, such as the Q3 2025 net loss of $562.8 million reported in October 2025.

The market capitalization was approximately $2.53 billion as of November 2025, which puts it squarely in the regional bank category. That's a solid size, but still small enough to be highly sensitive to sector news, so you defintely need to watch those regional banking headlines. Breaking Down Simmons First National Corporation (SFNC) Financial Health: Key Insights for Investors

Simmons First National Corporation's Ownership Breakdown

The company is primarily controlled by institutional money, a common setup for a regional bank of this size. Institutional investors hold the vast majority of shares, meaning big funds-not individual retail traders-drive most trading volume and voting power. This concentration means decisions are heavily influenced by a few major asset managers like BlackRock, Inc., Vanguard Group Inc, and Dimensional Fund Advisors LP.

Simmons First National Corporation's Leadership

The leadership team, as of November 2025, is managing a significant transition, setting the stage for 2026. George Makris, Jr. is steering the ship as Chairman and CEO through the end of the year, having returned to the CEO role in January 2025. This is a seasoned team, with the board of directors having an impressive average tenure of 13.6 years.

• George Makris, Jr.: Chairman and Chief Executive Officer (CEO). He assumed the dual role on January 1, 2025, and his total yearly compensation is approximately $3.46 million. He is set to retire at the end of 2025.
• Jay Brogdon: President. He has served as President since January 2023 and is the designated successor, slated to assume the additional role of CEO on January 1, 2026.
• Daniel Hobbs: Executive Vice President and Chief Financial Officer (CFO). He took on the CFO role in December 2023, overseeing the financial strategy, reporting directly to President Jay Brogdon.
• Christopher Van Steenberg: Chief Operating Officer (COO). He joined the company in November 2024, reporting to the President, focusing on operational efficiencies and customer experience.
• Marty D. Casteel: Senior Executive Vice President. A long-time leader who will transition to Chairman of both the Corporation and Simmons Bank on January 1, 2026.

The leadership is actively managing a strategic overhaul, including a major balance sheet repositioning in Q3 2025, which involved selling low-yielding securities and raising $327 million in equity capital. This move, while causing a short-term net loss, shows a clear focus on long-term capital stability and future profitability.

Simmons First National Corporation (SFNC) Mission and Values

Simmons First National Corporation (SFNC) anchors its operations on a clear hierarchy of values: Soundness, profitability, and growth, in that order, which is a brutally honest and smart approach for a regional bank. This focus on stability first is the cultural bedrock that allowed the company to execute a major balance sheet repositioning in 2025, even with a significant one-time loss.

You're looking for the DNA that drives long-term value, and for Simmons First National Corporation, it's about being a trusted partner, not just a transaction engine. This commitment is what makes their recent financial moves, like the $327 million equity capital raise in Q3 2025 to reposition the balance sheet, a strategic investment in their future earnings stream, despite a reported net loss of $562.8 million for the quarter.

Simmons First National Corporation's Core Purpose

The company's core purpose is rooted in its century-plus history as a community bank with a growing regional footprint across six states. It's a simple promise: to be a source of strength and stability for customers and communities. They are defintely a community bank with scale.

Official Mission Statement

Simmons First National Corporation's mission goes beyond quarterly earnings-it's about enabling financial success for those they serve. They see themselves as a trusted financial advisor. This is a critical distinction from a purely transactional bank, especially when you look at their projected full-year 2025 revenue estimate of $920.49 million.

• Be a trusted financial advisor to enable individuals, companies, and communities to attain their financial goals.
• Enrich the lives of the people served and the communities in which they work.
• Commit to building value for customers, communities, and shareholders with great integrity and passion.

Vision Statement

The vision is less about a market share percentage and more about internal culture and external reputation. A strong internal culture is what keeps the customer experience consistent across its over 220 branches. The vision is focused on being a great place to work, which directly impacts the quality of service you receive.

• Fulfill the vision of making Simmons Bank a great place to work.
• Build a vibrant culture where values translate directly to customer service excellence and loyalty.

To be fair, a bank's culture is its biggest moat against competitors. You can read more about the market's view in Exploring Simmons First National Corporation (SFNC) Investor Profile: Who's Buying and Why?

Simmons First National Corporation's Core Values

Simmons First National Corporation codifies its cultural expectations through six 'Culture Cornerstones.' These are the non-negotiable behaviors that guide every associate, from a teller to the CEO. They show how the bank plans to achieve its full-year 2025 EPS estimate of $1.73 by focusing on people and process.

• Integrity: Do what is right; value honor and act with responsibility.
• Build Loyalty: Exceed expectations in service to protect, connect, commit, and succeed.
• High Performance: Strive for excellence and go beyond what is thought possible.
• Passion: Care intensely about work, customers, and community; always innovate.
• Better Together: Embrace collaboration and help colleagues; win and celebrate as a team.
• Pursue Growth: Explore new paths and seek opportunities to learn and expand skills daily.

Simmons First National Corporation slogan/tagline

The company's tagline is simple, aiming to convey a sense of long-term partnership and stability. It speaks to their commitment to being there for customers through all life stages. It's a promise of longevity, backed by their record of paying cash dividends to shareholders for 116 consecutive years.

• Simmons Bank | for life.

Simmons First National Corporation (SFNC) How It Works

Simmons First National Corporation operates as a regional financial holding company, primarily generating value by taking low-cost customer deposits and reinvesting them into higher-yielding loans and investment securities, a process that creates Net Interest Income (NII). The company supplements this core banking model by offering a full suite of fee-based services, including wealth management and treasury solutions, to diversify revenue and deepen client relationships.

Honestly, it's a classic bank play: attract cheap capital, lend it out smart, and collect fees on the services in between.

Simmons First National Corporation's Product/Service Portfolio

The company's principal subsidiary, Simmons Bank, provides comprehensive financial solutions across its six-state footprint, catering to both the individual consumer and the middle-market commercial client.

Simmons First National Corporation's Operational Framework

The core of Simmons First National Corporation's operating model is the traditional banking value chain, but its 2025 strategy focuses heavily on balance sheet optimization to boost profitability.

• Deposit Gathering: The company utilizes its network of over 220 branches across Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas to gather customer deposits. In Q2 2025, the cost of deposits fell to 2.36%, a key factor in margin expansion.
• Value Creation (Net Interest Income): The bank generates its primary revenue stream by lending out deposits. For Q2 2025, Net Interest Income (NII) totaled $171.8 million, driven by a loan yield of 6.26%.
• Noninterest Income Generation: Secondary revenue comes from non-lending services. Noninterest income for Q2 2025 was $42.4 million, derived from wealth management fees, treasury management, and service charges on deposit accounts.
• Balance Sheet Repositioning: In Q3 2025, the company executed a major strategic move, selling approximately $2.4 billion of low-yielding investment securities at a loss to free up capital. This was supported by raising $327 million in equity capital to address a negative interest rate arbitrage and unlock future earnings power.

Here's the quick math: the difference between that 6.26% loan yield and the 2.36% deposit cost is the core engine, and the 2025 repositioning is designed to make that spread even wider.

To be fair, managing that balance sheet remix is complex, but it sets the stage for stronger future NII. Exploring Simmons First National Corporation (SFNC) Investor Profile: Who's Buying and Why?

Simmons First National Corporation's Strategic Advantages

Simmons First National Corporation's market success rests on its regional density, its conservative capital management, and its ability to execute on a strategic balance sheet pivot in a tough rate environment.

• Consecutive NIM Expansion: The bank achieved a Net Interest Margin (NIM) of 3.50% in Q3 2025, marking the sixth consecutive quarter of expansion, demonstrating effective deposit cost control and asset repricing.
• Capital and Credit Resilience: The bank maintains a strong credit posture, with a nonperforming loan coverage ratio of 161% in Q2 2025, which shows a defintely conservative approach to potential credit losses.
• Proven Longevity and Trust: A long-standing history of paying cash dividends for 116 consecutive years signals financial stability and a strong commitment to shareholder returns, which is a rare feat in the regional banking sector.
• Attractive Regional Footprint: The bank's presence is concentrated in dynamic, growing markets across the Mid-South, allowing for targeted organic growth and deeper market penetration compared to national competitors.

Simmons First National Corporation (SFNC) How It Makes Money

Simmons First National Corporation, operating primarily through Simmons Bank, makes money the way most banks do: by borrowing money at a lower rate (deposits) and lending it out at a higher rate (loans), a process known as generating net interest income (NII). This core revenue is supplemented by noninterest income derived from fees for services like wealth management and deposit accounts.

Simmons First National Corporation's Revenue Breakdown

For the third quarter of 2025, the company's core revenue-adjusted to exclude a significant, one-time balance sheet repositioning loss-shows a clear reliance on its lending activities. This is the quick math based on the adjusted total revenue of $232.5 million for Q3 2025.

Business Economics

The core economic engine for Simmons First National Corporation is the net interest margin (NIM), which measures the profit spread between interest earned on assets (like loans) and interest paid on liabilities (like deposits). The company's recent strategic moves have been focused on expanding this margin, which is the key to sustainable earnings for a regional bank.

• Net Interest Margin Expansion: The NIM expanded by 44 basis points quarter-over-quarter, reaching 3.50% in the third quarter of 2025, marking the sixth consecutive quarterly increase.
• Loan Pricing Discipline: The bank has been successful in increasing the yield on its loan portfolio, with loan yields rising by 5 basis points in Q3 2025.
• Funding Cost Reduction: Management is defintely focused on lowering their cost of funds; the cost of deposits decreased by 11 basis points to 2.25% in Q3 2025, primarily by reducing higher-rate wholesale and public fund deposits.
• Future Earnings Tailwinds: A significant opportunity lies in the repricing of approximately $3 billion in fixed-rate loans, which currently yield around 3.9%. As these loans reprice over the next 24 months, they will mechanically lift asset yields and further boost the NIM without requiring new loan volume growth.

Simmons First National Corporation's Financial Performance

While the GAAP (Generally Accepted Accounting Principles) results for Q3 2025 showed a large net loss due to a one-time charge, the adjusted figures paint a picture of improving core profitability and a stronger balance sheet post-repositioning. You need to look past the headline GAAP loss to see the underlying health. Breaking Down Simmons First National Corporation (SFNC) Financial Health: Key Insights for Investors

• Q3 2025 Adjusted Profitability: Adjusted net income for the third quarter of 2025 was $64.9 million, which translated to an adjusted diluted earnings per share (EPS) of $0.46.
• Balance Sheet Snapshot: As of September 30, 2025, the company reported total assets of $24.208 billion, total deposits of $19.838 billion, and total loans of $17.189 billion.
• Impact of Repositioning: The company took a one-time pre-tax loss of $801.5 million on the sale of approximately $2.4 billion of low-yielding investment securities. This strategic move, while causing a GAAP net loss of $562.8 million and diluted EPS of $(4.00), is expected to unlock future earnings by removing a drag on profitability.
• Asset Quality: The allowance for credit losses (ACL) ratio stood at 1.50% as of Q3 2025, a slight increase of 2 basis points, indicating a stable but closely monitored asset quality environment.

Simmons First National Corporation (SFNC) Market Position & Future Outlook

Simmons First National Corporation is strategically positioned to capitalize on a significantly improved profitability trajectory following its major third-quarter 2025 balance sheet repositioning. This move, while incurring a large one-time loss, has unlocked a clear path to sustained net interest margin (NIM) expansion and stronger organic growth across its attractive Mid-South footprint.

Competitive Landscape

Simmons First National Corporation operates in a highly fragmented regional banking market, competing with both larger, diversified financial institutions and smaller, highly efficient community banks. Its competitive edge is rooted in its deep community ties and a focus on core relationship banking, but it faces rivals with superior scale and efficiency.

Opportunities & Challenges

The company is now shifting its focus from balance sheet repair to organic growth, targeting high-growth markets within its six-state region. But, to be fair, the regional banking sector still faces credit quality headwinds, particularly in commercial real estate (CRE).

Industry Position

Simmons First National Corporation, with total assets of $24.20 Billion USD as of September 2025, is a solid, mid-tier regional bank. Its market capitalization of $2.52 Billion USD as of November 20, 2025, positions it well below larger peers like Regions Financial (market cap of $22.30 Billion USD) but comparable to institutions like Home BancShares.

The recent $626 million after-tax loss from the securities sale was a necessary, one-time cost to fix the balance sheet and improve future earnings power. It was a painful but smart move. The company is now focused on operational excellence and organic growth, particularly by driving down its reliance on expensive wholesale funding. The core advantage is its deep penetration in its six-state region, which helps it gather low-cost, sticky customer deposits-a key differentiator in the current rate environment.

• Profitability Inflection: Adjusted diluted EPS rose sequentially from $0.26 in Q1 2025 to $0.46 in Q3 2025, signaling a clear profitability turnaround.
• Deposit Focus: Management is actively working to reduce brokered deposits, aiming for zero over the long term, which will further lower the cost of funds.
• Value Proposition: The stock trades at a price-to-book ratio of only 0.75, suggesting it is defintely undervalued relative to its tangible book value, which is a classic value signal in the banking sector.

For a deeper dive into who is buying and why, check out Exploring Simmons First National Corporation (SFNC) Investor Profile: Who's Buying and Why?