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- **Strategic Shift to Growth**: Simmons prioritizes organic growth through talent acquisition and operational excellence, targeting disciplined loan growth with risk-adjusted returns.
- **NIM Resilience**: Q3 NIM of 3.76% reflects restructuring; Q4 guide of 3.65%+ supported by repricing tailwinds and hedging strategies.
- **Deposit Optimization**: Brokered deposits reduced to 9% of total, with core deposit growth and beta moderation expected.
- **Credit Stability**: Stable metrics with proactive management of lower-quality loans, offsetting consumer deposit trends.
- **CEO Vision**: Makris forecasts 2026 earnings growth of $650 million, highlighting the impact of recent restructuring.

**【Opening Remarks】**
- Edward Bilek emphasized the Q&A format and reminded participants of forward-looking statements and non-GAAP metrics. He highlighted the availability of earnings materials on the company website.

**【Strategic Initiatives】**
- Jay Brogdon outlined priorities: organic growth through talent acquisition and operational excellence, with a focus on disciplined loan growth and risk-adjusted returns. He noted low single-digit loan growth expectations but highlighted tailwinds from repricing fixed-rate loans.

**【Net Interest Margin (NIM) Dynamics】**
- CFO Charles Hobbs detailed the $1.4 billion HTM restructuring, which shifted the balance sheet to asset-sensitive. The Q3 NIM of 3.76% was partially impacted by rate cuts, with a Q4 guide of 3.65%+. Hedging strategies aim to maintain NIM between 3.50%-3.75% over 12 months.

**【Deposit Management】**
- Brokered deposits reduced to $1.8 billion (9% of total), with plans to eliminate them via core deposit growth. Deposit beta of 65% is expected to moderate due to reduced brokered balances. Commercial deposit growth offset consumer trends.

**【Expense and Growth Balance】**
- Jay Brogdon noted Q3 expenses may reflect one-time items but expects ongoing efficiency gains. Talent investment is balanced with cost control, targeting 3-4% expense growth.

**【Credit Outlook】**
- Stable credit metrics with NPLs and charge-offs in line with expectations. Proactive management of lower-quality loans, with $3 billion in repricing fixed-rate loans supporting margin resilience.

**【Closing Remarks】**
- CEO George Makris praised the bold restructuring and expressed optimism for 2026, citing potential $650 million earnings growth. He thanked analysts for their support over the years.

Simmons First National Corporation (SFNC) Q3 2025 Earnings Call Transcript

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