Simmons First National Corp., parent company of Simmons Bank, which is headquartered in Pine Bluff, recently announced it will close 26 branches across a six-state footprint, including six in Arkansas.
The Arkansas branches affected by the closure will include locations in Pine Bluff, Fort Smith, North Little Rock, Hot Springs and Jonesboro.
In a filing with the U.S. Securities and Exchange Commission, Simmons First National Corp. stated that the closures will impact about 100 associates but that the company plans to retain about 70 percent of those employees by placing them at other locations or in other positions with the company. The closures are set to take effect Dec. 4.
“The branch closures are intended to align Simmons Bank’s branch network with evolving customer preferences while maintaining customer access, preserving service levels, and continuing to provide advice, guidance and financial solutions through nearby branches and other banking channels,” the filing reads. “Management believes the branch closures can be completed with limited disruption to customers, as there is no significant geographic concentration among the affected locations.”
The company stated that it anticipates its pretax expenses from the closures to be about $20 million to $23 million, including severance and other personnel termination costs of about $200,000 to $500,000; professional services fees between about $3 million and $3.5 million; and real estate write-downs and lease termination fees between about $17 million and $19 million. About $4 million to $5 million of those expenses are expected to be paid in cash.
The company said it expects to “recognize substantially” the expenses during the third quarter of 2026.
In the filing, the company also outlined ways it plans to improve performance and continue investing in growth as discussed during a July earnings conference call.
“While the company has realized meaningful expense discipline through a series of tactical actions over the past several years, it believes significant untapped potential remains,” the filing states. “Management further indicated that the company’s focus has increasingly shifted toward strategic initiatives designed to structurally transform the operating model by simplifying the organizational structure, streamlining processes, and enhancing the use of technology and automation throughout the business.”
Initiatives geared toward enhancing long-term profitability, growth and resiliency include operating model and organizational redesign and optimization initiatives; branch network strategy and optimization, including the branch closures; and other select operating efficiency and expense management improvements.
The company said it expects the initiatives to cost an aggregate pretax total of $40 million to $45 million during the third quarter of 2026, including the expenses related to the branch closures. After they are fully implemented, the initiatives are expected to provide a positive impact of about $37 million to $42 million on the company’s annual revenue, some of which may be invested in strategic growth initiatives.
“The timing, scope and magnitude of any such reinvestments will depend on, among other things, market conditions, business operations, talent recruitment and management’s ongoing assessment of capital allocation priorities,” the filing reads.
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