The Bull Case For Simmons First National (SFNC) Could Change Following Q3 Securities Sale Loss

• Simmons First National Corp recently reported a significant net loss for Q3 2025, primarily resulting from a substantial loss on the sale of securities as disclosed in its Form 10-Q filing.
• This development highlights ongoing efforts to offset profit pressures by reducing interest expense and increasing the company’s focus on credit risk management in a challenging operating landscape.
• We’ll examine how this setback in securities sales may influence Simmons First National’s broader investment narrative and forward-looking growth assumptions.

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Simmons First National Investment Narrative Recap

For shareholders of Simmons First National, the long-term case relies on confidence in the bank’s ability to generate future loan and deposit growth, leverage digital banking investments, and manage credit quality through economic cycles. The recent Q3 2025 net loss, driven by a one-off loss on the sale of securities, may weigh on near-term sentiment, but does not appear to materially alter the core catalyst: returning to sustained profitability as revenue continues to recover; the biggest risk remains ongoing credit quality challenges within specific loan categories.

A particularly relevant announcement was the Q3 2025 earnings release, which highlighted not only the securities-related loss but also a continued increase in net interest income as interest expense declined. This underscores management’s current emphasis on operational efficiency and credit risk management while navigating the evolving banking environment and pursuing future profitability targets.

However, investors should be aware that despite efforts to strengthen credit oversight, the uptick in net charge-offs reported in Q3 could signal...

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 a $194.6 million earnings increase from $160.2 million.

Uncover how Simmons First National's forecasts yield a $22.80 fair value, a 27% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have shared three separate fair value estimates for Simmons First National, ranging from US$17.02 to US$29.22 per share. While some anticipate rising revenue growth, concerns about sustained credit quality could affect future performance, so consider exploring diverse viewpoints in your own research.

Explore 3 other fair value estimates on Simmons First National - why the stock might be worth as much as 63% 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 3 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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