Simmons First National Corp

-28.88%

1. Interest Rate Risk: Simmons First National Corp. is exposed to interest rate risk due to its use of short-term borrowings and the large portion of its assets that are held in interest-bearing accounts. A sudden change in interest rates could have a significant impact on the firm’s net interest income.

2.Credit Risk: Simmons First National Corp. is exposed to credit risk due to its lending activities and investments in debt securities. The company’s credit quality can be impacted by a borrower’s inability to service their debt obligations or if the underlying assets backing the debt default.

3.Operational Risks: Simmons First National Corp. is exposed to operational risks due to its reliance on technology, third-party service providers, and internal processes. Such risks include errors, omissions, and breaches that could lead to financial losses.

4.Liquidity Risk: Simmons First National Corp. must maintain sufficient liquidity to meet customer demands, fund operations, and finance its loan portfolio. If it is unable to generate sufficient cash from operations or leverage external sources of capital, it may be forced to sell assets or raise rates to generate liquidity.