Simmons First National Corp. announced after the close or market Thursday that its operating subsidiary, Simmons First National Bank, will convert from a national banking association to an Arkansas state-chartered bank, effective at the opening of business on April 1. The bank’s name will change to Simmons Bank.
Simmons Bank is a member bank of the Federal Reserve System through the Federal Reserve Bank of St. Louis, which supervises all state-chartered banks in its region that are members of the Federal Reserve system.
The Federal Deposit Insurance Corporation (FDIC) insures state-chartered banks that are not members of the Federal Reserve System. The FDIC also insures deposits in banks and savings associations in the event of bank failure.
Simmons officials said the conversion isn’t expected to affect the bank’s customers in any way, and customers will receive the same protection on deposits in Simmons Bank as they received with deposits in Simmons First National Bank.
“The charter conversion is a strategic undertaking that we believe will enhance our operations in the long term,” said Marty Casteel, chairman and chief executive officer of Simmons Bank. “We’re strongly committed to operating our organization with a focus on community banking. We believe it will be advantageous for our shareholders, customers and associates to work with regulators who are accustomed to community banks and the challenges they face.”
Simmons currently has $7.6 billion in assets, and ranked only behind Arvest Bank, Bank of the Ozarks and Centennial Bank at the end of 2015, according to SNL Financial. At the close of business Thursday, Simmons shares were down five cents at $45.07.