Simmons First National Corporation (SFNC): Business Model Canvas [Dec-2025 Updated]

You're digging into how Simmons First National Corporation (SFNC) is set up for success after their big balance sheet moves this year. Honestly, understanding the blueprint-the Business Model Canvas-is key, especially after they locked in $327 million in equity in Q3 2025 to fuel growth in Commercial & Industrial (C&I) loans. This bank, with its $26.7 billion in assets and over 220 physical spots across the Mid-South, is trying to balance that big-bank capability with a genuine community touch, all while managing significant interest expense, which hit $126.8 million on deposits in that same quarter. Let's break down exactly how Simmons First National Corporation (SFNC) plans to make that work by looking at their key activities, resources, and revenue streams below.

Simmons First National Corporation (SFNC) - Canvas Business Model: Key Partnerships

You're looking at the external relationships Simmons First National Corporation relies on to execute its strategy, especially around capital and core operations as of late 2025.

Underwriters for Capital Raises

Simmons First National Corporation executed significant capital-raising activities in 2025, relying on established investment banks for execution. The July 2025 public offering of Class A common stock generated net proceeds of approximately $327 million. This was followed by a September 2025 offering of subordinated notes totaling $325 million principal amount.

The firms involved in managing these offerings provide critical market access and distribution capabilities:

The September 2025 notes offering involved a 6.25% fixed-to-floating rate structure maturing in 2035, used to repay $330 million of notes due in 2028. That's extending maturity by about 7 years. It's a clear move to manage the liability structure.

Government Agencies for Lending

Simmons Bank actively participates in government-backed lending programs, which requires coordination with federal agencies. Simmons Bank offers:

• Small Business Administration (SBA) lending.
• Involvement with Small Business Investment Company (SBIC) investments, which saw valuation adjustments reported in Q1 and Q2 2025.

Technology Providers for Core Banking

While specific core processing partners like Fiserv or Jack Henry are not explicitly named in the latest filings, Simmons First National Corporation is clearly investing in its technology infrastructure, evidenced by the hiring of David Kennedy as Chief Technology Officer in May 2025. This suggests active management or transition related to the systems supporting its operations across six states.

Regional Agricultural Cooperative Networks for Finance

Simmons Bank's service offerings include agricultural finance. This line of business inherently requires partnerships or deep working relationships with regional agricultural networks to source and service loans effectively across its footprint in states like Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas.

Financial Service Vendors for Payment Processing

The company offers credit cards and treasury management services, which mandate relationships with major payment networks. The Q1 2025 results also noted increases in service charges on deposit accounts, indicating reliance on transaction processing vendors.

Finance: draft 13-week cash view by Friday.

Simmons First National Corporation (SFNC) - Canvas Business Model: Key Activities

You're looking at the core actions Simmons First National Corporation takes to run its business as of late 2025, right after a major strategic shift. Honestly, the third quarter of 2025 was all about cleaning up the balance sheet to set the stage for what comes next.

Strategic balance sheet repositioning and capital management

The primary activity in Q3 2025 was a significant repositioning effort. This involved addressing a negative arbitrage between long-term bond yields and shorter-term funding costs. To execute this, Simmons First National Corporation sold approximately $2.4 billion (fair value) of low-yielding investment securities. This sale crystallized a substantial pre-tax loss of $801.5 million and an after-tax loss of approximately $626 million, leading to a reported net loss of $562.8 million for the third quarter of 2025. To support this move and bolster capital, the company successfully raised $327 million in new equity capital. This activity directly impacted the balance sheet, with total assets declining to $24.208 billion as of September 30, 2025, down from $27.269 billion at the same point in 2024. The investment securities portfolio shrank from $5.997 billion in Q2 2025 to $3.319 billion in Q3 2025. This is a clear, decisive action to reshape the asset base.

Here are the key financial outcomes tied to this repositioning activity:

Commercial and Industrial (C&I) loan origination and growth

Despite the balance sheet restructuring, the focus on organic loan growth, particularly in Commercial and Industrial (C&I) lending, remained a key activity. The company noted that its focus on profitability and loan remixing resulted in C&I growth during the second quarter of 2025. Pricing discipline was also evident, leading to a 5 basis point increase in overall loan yields in Q3 2025 compared to the linked quarter. Total loans stood at $17.189 billion at the end of Q3 2025, a slight decrease from $17.336 billion in Q3 2024. The pipeline for future lending remains strong, which management views as supporting future organic growth across its markets.

Managing a network of over 220 branches across six states

Simmons First National Corporation actively manages its physical footprint to align with strategic market focus. Simmons Bank operates a network of over 220 branches spanning six states: Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas. This management includes consolidation in less strategic areas. For instance, in early 2025, the company shuttered 12 full-service branches across 10 Texas cities, reducing its Texas office count from 56 to 44 locations, exiting markets like San Antonio. Conversely, the network expanded slightly, with a new branch opening in Jonesboro, Arkansas, in March 2025. The activity here is about optimizing physical presence for client service and efficiency.

• States of Operation: Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas.
• Total Branch Count: Over 220.
• Texas Branch Consolidation (Early 2025): Reduced count by 12 locations.
• New Arkansas Branch Opened: Jonesboro (March 2025).

Digital banking platform development and maintenance

Maintaining and developing the digital banking platform is a necessary activity to support the client-centric approach. While specific capital expenditure figures for digital development in late 2025 aren't explicitly detailed in the latest reports, the company's product offerings include Online and Mobile Banking, alongside Investment Services. The focus is on ensuring the technology supports the franchise's dynamic markets. Noninterest expense for Q3 2025 was $142.0 million, which included costs related to vendor and software services termination, indicating ongoing platform adjustments.

Proactive management of deposit costs and funding mix

A critical activity involves managing the cost and mix of funding sources, especially following the balance sheet repositioning. This resulted in a strategic reduction of high-cost funding. The cost of deposits fell by 11 basis points in Q3 2025. Interest expense reflected this success, dropping to $126.8 million in Q3 2025 from $143.2 million in Q2 2025, primarily due to the reduction of higher-rate, non-relationship wholesale and public fund deposits. Total deposits as of September 30, 2025, were $19.838 billion, down from $21.935 billion in Q3 2024, reflecting this intentional reduction in more expensive funding. However, the mix improved, as evidenced by a $233.1 million increase in low-cost customer deposits reported in Q2 2025. The Net Interest Margin (NIM) improved for the sixth consecutive quarter, reaching 3.50 percent in Q3 2025.

The reduction in funding costs is a direct driver of profitability improvement.

Simmons First National Corporation (SFNC) - Canvas Business Model: Key Resources

Strong capital base was reinforced by the successful raise of $327 million of equity capital in the third quarter of 2025.

The tangible branch network includes more than 220 branches across Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas.

Key quantitative resources as of mid-2025 are detailed below:

The operational backbone includes core banking technology systems and cloud infrastructure.

Human capital includes experienced Relationship Bankers and key leadership hires, such as David Kennedy, who joined as Chief Technology Officer on May 20, 2025.

The essential Key Resources for Simmons First National Corporation include:

• Strong capital base from $327 million equity raise in Q3 2025.
• Tangible branch network of more than 220 locations in the Mid-South.
• Total assets of approximately $26.7 billion (Q2 2025).
• Core banking technology systems and cloud infrastructure.
• Experienced Relationship Bankers and key leadership hires (e.g., CTO David Kennedy hired May 20, 2025).

Simmons First National Corporation (SFNC) - Canvas Business Model: Value Propositions

You're looking at the core reasons why clients choose Simmons First National Corporation, and honestly, the numbers tell a compelling story of stability mixed with active management in dynamic markets.

Comprehensive financial solutions for retail and business clients is backed by the scale of their operations. As of September 30, 2025, Simmons First National Corporation reported total assets of $24.208 billion, supported by total deposits of $19.838 billion. For the third quarter of 2025, the adjusted revenue reached $232.5 million.

The value proposition of a regional community bank service with large bank capabilities is evident in their footprint and recent strategic actions. Simmons Bank, the principal subsidiary, operates more than 220 branches across six states: Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas. This structure allows them to offer local service while managing a balance sheet in the tens of billions. The bank successfully raised $327 million of equity capital during the third quarter of 2025 to reposition its balance sheet. Furthermore, the Net Interest Margin (NIM) improved to 3.50% in Q3 2025, or 3.76% according to another report, up from 3.06% in Q2 2025, showing effective interest rate risk management.

A client-centric approach to lending and deposit gathering is reflected in their focus on core metrics, even amidst balance sheet restructuring. The loan portfolio stood at $17.189 billion as of September 30, 2025. The company's strategy included a focus on core deposit growth, though total deposits were down from the prior year. The annualized net charge-offs to average loans ratio was reported at 0.3% for Q3 2025.

Stability and longevity, demonstrated by 116 consecutive years of dividends, is a cornerstone value. Simmons First National Corporation has paid cash dividends for 116 consecutive years. For 2025, the annualized cash dividend rate is $0.85 per share. The most recently declared quarterly dividend, as of November 10, 2025, was $0.2125 per share. This consistent payout history has resulted in the company increasing its dividend for 14 consecutive years, earning it the 'Dividend Contender' designation. Here's the quick math on that commitment:

What this estimate hides is the impact of the one-time securities sale, which resulted in a reported net loss of $562.8 million for Q3 2025. Still, the adjusted EPS for that quarter was $0.46.

The offering of Treasury Management services for commercial businesses is a key part of their business-to-business offering, alongside trust and fiduciary services, and various lending products. While specific revenue for this segment isn't broken out in the latest reports, the overall adjusted net interest income for Q3 2025 was $186.7 million, up 9 percent from the linked quarter.

You can see the core financial snapshot below:

• Total Assets (Sept 30, 2025): $24.208 billion
• Total Loans (Sept 30, 2025): $17.189 billion
• Total Deposits (Sept 30, 2025): $19.838 billion
• Adjusted Q3 2025 Revenue: $232.5 million
• Q3 2025 Adjusted EPS: $0.46

Finance: draft 13-week cash view by Friday.

Simmons First National Corporation (SFNC) - Canvas Business Model: Customer Relationships

For Simmons First National Corporation (SFNC), customer relationships are built on a dual strategy that balances high-touch, local service with necessary digital capabilities across its six-state footprint spanning Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas. The bank emphasizes retaining and growing its core deposit base, which directly reflects the strength of these relationships.

Dedicated Relationship Bankers for high-touch service

The commitment to a client-centric approach supports the need for dedicated relationship management, especially as the bank focuses on organic growth within its footprint. This focus is evident in the growth of core funding sources. For instance, in the second quarter of 2025, low-cost customer deposits, which include noninterest bearing and interest bearing transaction accounts, increased by $233.1 million quarter-over-quarter. This growth in transaction accounts suggests that direct customer relationships are deepening or expanding. Furthermore, in the first quarter of 2025, total customer deposits grew by $183 million, which represented approximately 4% annualized growth for that segment. The overall total deposits at the end of the second quarter of 2025 stood at $21.8 billion.

Self-service and automated digital banking platforms

Simmons First National Corporation recognizes the competitive risk posed by nonbank competitors and financial technology firms offering services through alternative channels. The bank continuously evaluates its delivery methods, including the use of online and mobile banking, to respond to evolving customer preferences. While specific adoption statistics aren't public, the availability of support for its mobile platform, such as the contact number 866-246-2400 for mobile banking support, shows an operational commitment to these channels. The need to adapt current products and services to changing industry standards is a stated priority.

Advisory-based approach for commercial and wealth clients

The advisory approach for commercial clients is supported by a strong, growing loan pipeline, indicating active engagement and trust from business customers. In the first quarter of 2025, the commercial loan pipeline increased by 43% linked quarter, reaching its highest level since the second quarter of 2022. That same quarter, the bank reported it was set to close commercial loans valued at $757 million, marking the third consecutive quarterly increase in loans in process. This activity suggests robust advisory relationships driving future revenue, which aligns with the reported Net Interest Margin (NIM) reaching 3.50% in the third quarter of 2025.

Community involvement and local market presence

Community involvement is a tangible expression of the local market presence, primarily channeled through the Simmons First Foundation. The Foundation is devoted to enhancing youth development across the bank's six-state footprint. In 2025, the Foundation offered Mini Grants ranging from $1,000 up to $2,500, and Make a Difference Grants ranging from $2,500 up to $25,000 for youth-focused programs in education or health care. The bank itself received positive recognition in 2025, being named one of America's Greatest Workplaces in Arkansas by Newsweek.

Here are some specific examples of the Simmons First Foundation's support for youth programs in 2025:

• Centers for Youth & Families (Arkansas): $25,000 grant.
• Hurricane HYPE Center (Arkansas): $25,000 grant.
• Stillwater Band Boosters (Oklahoma): $25,000 grant.
• Payne County Youth Services (Oklahoma): $24,929.58 grant.
• Arkansas Children's Foundation: $24,957.56 grant.

The following table summarizes key financial metrics related to the customer base as of the third quarter of 2025 (3Q25) compared to the preceding quarter (2Q25).

The bank's ability to reduce the cost of deposits by 11 basis points from the second quarter of 2025, primarily due to a reduction of higher rate, non-relationship wholesale and public fund deposits, underscores a strategic shift toward relying on more stable, relationship-based customer funding.

Simmons First National Corporation (SFNC) - Canvas Business Model: Channels

You're looking at how Simmons First National Corporation (SFNC) gets its products and services to the customer base, which is a mix of traditional brick-and-mortar and digital access points.

Physical branch network of over 220 locations

Simmons First National Corporation (SFNC) maintains a physical presence across its operating states. As of a report following the fourth quarter of 2024, Simmons Bank operated 222 branches across Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas. The company has been actively managing this footprint; for instance, in the third quarter of 2025, SFNC recorded $2.3 million in costs associated with branch right sizing. This network serves as a primary touchpoint for many clients, especially for complex transactions or relationship banking.

The lending teams are a key channel for commercial and specialized financing:

The mortgage warehouse lending component is also a distinct channel supporting other financial institutions.

Digital and mobile banking applications

Simmons First National Corporation (SFNC) supports its customer base through digital channels, which is a critical component given industry trends. The bank offers the Simmons Bank Mobile application, described as a top-rated mobile app, allowing customers to perform transactions like bill payment and fund transfers without direct assistance. The company has stated that increased use of mobile and online banking is a trend across the industry, reducing the need for in-person branch visits.

ATMs and 24-Hour Telephone Banking Service

Access outside of standard branch hours is facilitated through automated services. Simmons Bank established its first ATM in Pine Bluff in 1974, marking an early adoption of self-service technology. The bank continues to offer a 24-Hour Telephone Banking Service as a non-branch channel for customer needs.

The accessibility points for Simmons First National Corporation (SFNC) customers include:

• Physical branch network: 222 locations as of late 2024/early 2025.
• Commercial loan pipeline: $1.6 billion as of Q3 2025.
• Ready to close commercial loans: $490 million as of Q3 2025.
• Digital access via the Simmons Bank Mobile application.
• Availability of a 24-Hour Telephone Banking Service.

Finance: draft 13-week cash view by Friday.

Simmons First National Corporation (SFNC) - Canvas Business Model: Customer Segments

You're looking at the core client base for Simmons First National Corporation as of late 2025, based on their Q3 2025 filings. Honestly, the bank is clearly focused on cleaning up its balance sheet while maintaining its regional presence.

Retail customers (individuals and households)

This group forms the foundation of the deposit base. As of September 30, 2025, total deposits stood at $19,815,714 thousand. A key metric here is the quality of that funding; noninterest-bearing deposits made up 22.1 percent of total deposits at the end of the third quarter of 2025. This is up from 20.5 percent in Q2 2025, showing a successful effort to shed higher-cost funding sources.

The retail segment is served across Simmons First National Corporation's 223 financial centers located in six states.

Small to mid-sized Commercial & Industrial (C&I) businesses

This segment is a primary driver for loan growth. Management specifically highlighted C&I growth in the second quarter of 2025, alongside the increase in low-cost customer deposits. Total loans for Simmons First National Corporation were $17,183,795 thousand as of September 30, 2025.

The loan portfolio composition gives you a view into the C&I focus, though specific C&I loan balances aren't broken out separately in the latest summary data. However, you can see the real estate concentration:

This table uses data from September 30, 2025.

Agricultural finance clients in the Mid-South footprint

Simmons First National Corporation is explicitly a Mid-South based financial holding company. While specific agricultural loan figures aren't isolated in the top-line summaries, this client base is integral to the regional lending strategy across states like Arkansas and Oklahoma.

Mortgage Warehouse Lending clients (a national focus)

This business line is a national play, contrasting with the regional focus of the branch network. Specific loan volume or client count data for Simmons First National Corporation's Mortgage Warehouse Lending segment for Q3 2025 isn't explicitly detailed in the provided earnings highlights. The general market context for 2025 showed total single-family mortgage origination volume expected to reach $2.0 trillion.

Institutional and Wealth Management clients

This segment contributes significantly to noninterest income. Noninterest income for Q1 2025 was $46.2 million, which included increases in wealth management fees year-over-year. The bank also focuses on managing its funding mix, which involves institutional and public funds, noting that brokered deposits were reduced to $1.84 billion in Q3 2025.

Here's a quick look at the balance sheet management impacting this segment's funding:

• Other borrowings fell to $18.8 million in Q3 2025 from $634.3 million in Q2 2025.
• The company raised $327 million in equity capital to support balance sheet repositioning.

Finance: draft 13-week cash view by Friday.

Simmons First National Corporation (SFNC) - Canvas Business Model: Cost Structure

You're looking at the core expenses driving Simmons First National Corporation's operations as of late 2025, based on their Q3 2025 financial reporting. For a bank, the cost of money and the cost of people are usually the biggest levers, and that holds true here.

The interest expense on deposits and borrowings remains a significant cost. For the third quarter of 2025, this expense totaled $126.8 million. This figure reflects the cost of funding the balance sheet, though management noted that the pay-down of higher-rate funding during the quarter meant the full benefit of interest expense savings was only partially reflected in these results.

When looking at operating costs, the noninterest expense for the third quarter of 2025 was reported at $142.0 million. To get a clearer view of recurring operational costs, we look at the adjusted figure. The noninterest expense (adjusted) for Q3 2025 was $139.7 million. This adjustment strips out certain non-recurring items.

The largest component within the noninterest expense category is employee salaries and benefits. The increase in the adjusted noninterest expense on a linked quarter basis was primarily driven by salary and employee benefits accrual adjustments, reflecting the Company's financial performance through Q3 2025.

The structure of these noninterest costs involves several key areas. You'll see costs related to running the physical and digital franchise, including technology and data processing expenses, which are embedded within the overall noninterest expense base.

Furthermore, Simmons First National Corporation incurred one-time costs for branch right-sizing and early retirement programs as part of strategic adjustments. Collectively, these specific items totaled $2.3 million in the third quarter of 2025. This compares to $1.8 million in the second quarter of 2025 and $0.4 million in the third quarter of 2024.

Here is a quick look at the key expense line items for Simmons First National Corporation for Q3 2025:

The components making up the adjusted noninterest expense of $139.7 million include:

• Employee salaries and benefits (largest component)
• Technology and data processing expenses
• Occupancy and equipment expenses
• Other general and administrative costs

To be fair, the difference between the total noninterest expense of $142.0 million and the adjusted figure of $139.7 million is the $2.3 million in one-time items mentioned, which also included termination of vendor and software services. So, the recurring operational cost base, excluding those specific charges, is the $139.7 million figure. Finance: draft 13-week cash view by Friday.

Simmons First National Corporation (SFNC) - Canvas Business Model: Revenue Streams

You're looking at the core ways Simmons First National Corporation brings in money, which, as a bank, is heavily weighted toward lending and fees. As of late 2025, following a major balance sheet repositioning, the recurring revenue streams are key to understanding the bank's forward performance.

The primary engine for Simmons First National Corporation's revenue remains its interest-earning assets. Net Interest Income (NII), which is the difference between the interest earned on loans and securities and the interest paid on deposits and borrowings, totaled $186.7 million for the third quarter of 2025. This figure represented an 18 percent increase from the third quarter of 2024, showing core profitability improvement despite the large one-time items impacting the top line that quarter.

The second major component is Noninterest Income. You have to look past the headline Q3 2025 figure of $(756.2) million, which was skewed by an $801.5 million pre-tax loss on the sale of low-yielding securities as part of the balance sheet repositioning. The Adjusted Noninterest Income for Q3 2025 was $45.9 million, which gives a much clearer picture of recurring fee-based revenue.

Here's a breakdown of the key components that feed into that adjusted noninterest income, giving you a clearer look at the fee-based revenue streams:

• Service charges on deposit accounts were $13.0 million in Q3 2025.
• Wealth management fees brought in $10.0 million in Q3 2025.
• Debit and credit card fees were $8.5 million in Q3 2025.
• Bank owned life insurance contributed $3.9 million in Q3 2025.

While the specific figures for swap fee income from commercial client transactions and dedicated loan origination and servicing fees aren't broken out separately in the main summary, they are captured within the total noninterest income and the overall adjusted revenue picture. The adjusted quarterly revenue for Simmons First National Corporation in Q3 2025 was $232.5 million.

To map out the primary recurring revenue sources for Simmons First National Corporation as of Q3 2025, look at this table:

The bank's net interest margin also improved for the sixth consecutive quarter, hitting 3.76% in September 2025, which points to better management of interest rate risk on their assets and liabilities. Finance: draft Q4 2025 revenue projection by end of next week.