How Mendon Capital’s New Stake At Simmons First National (SFNC) Has Changed Its Investment Story

• Mendon Capital Advisors recently disclosed in a November 14, 2025 SEC filing that it had established a new position in Simmons First National Corporation, purchasing 406,570 shares valued at US$7.79 million, representing 2.99% of its reportable U.S. equity assets.
• Because Mendon specializes in U.S. regional banks, its decision to build a meaningful stake in Simmons First National may signal growing institutional interest in the bank’s regional and digital growth story.
• Next, we’ll examine how Mendon Capital’s new banking-focused institutional stake may influence Simmons First National’s existing investment narrative and outlook.

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Simmons First National Investment Narrative Recap

To own Simmons First National today, you need to believe in its regional and digital banking strategy despite recent earnings volatility and credit concerns, especially in commercial real estate. Mendon Capital’s new US$7.79 million position adds a specialist regional‑bank investor to the register, but does not fundamentally change the near term catalyst, which remains management’s ability to stabilize profitability after the recent net loss, nor the key risk around credit quality and loan growth discipline.

The most relevant recent announcement in this context is Simmons’ third quarter 2025 result, which showed a US$562.79 million net loss and slightly higher net loan charge offs. Against Mendon’s fresh interest, those figures keep the focus firmly on how Simmons manages credit risk, particularly in commercial real estate, and whether its technology and talent investments can eventually support more consistent earnings without pushing expenses too high.

Yet behind Mendon’s new stake, investors should still be aware of how rising commercial real estate classifications could...

Read the full narrative on Simmons First National (it's free!)

Simmons First National's narrative projects $1.3 billion revenue and $354.8 million earnings by 2028. This requires 19.7% yearly revenue growth and about a $194.6 million earnings increase from $160.2 million today.

Uncover how Simmons First National's forecasts yield a $22.80 fair value, a 21% upside to its current price.

Exploring Other Perspectives

Three members of the Simply Wall St Community currently see fair value for Simmons First National between US$17.02 and US$29.22, highlighting how far opinions can spread. You can weigh those views against the recent US$562.79 million quarterly net loss and elevated credit risk to judge how these different expectations might shape the bank’s future performance.

Explore 3 other fair value estimates on Simmons First National - why the stock might be worth as much as 55% more than the current price!

Build Your Own Simmons First National Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Simmons First National research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Simmons First National research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Simmons First National's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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