Mendon Capital Bets Big on Regional Bank, According to SEC Filing
Key Points
Acquired 406,570 shares in Simmons First National, a $7,793,947 holding
Position represents 2.99% of reportable assets under management (AUM)
Post-trade stake totals 406,570 shares, valued at $7,793,947
New holding places Simmons First National outside the fund's top five positions by value
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Mendon Capital Advisors reported a new position in Simmons First National Corporation (NASDAQ:SFNC) on its November 14, 2025, SEC filing, acquiring 406,570 shares valued at $7,793,947.
What Happened
According to a filing with the U.S. Securities and Exchange Commission dated November 14, 2025, Mendon Capital Advisors initiated a new equity position in Simmons First National Corporation during the third quarter. The fund purchased 406,570 shares, with the stake valued at approximately $7.79 million at quarter-end.
What Else to Know
This is a new position for Mendon Capital Advisors, representing 2.99% of its $260.71 million in reportable U.S. equity assets as of September 30, 2025, which places it outside the fund's top five holdings.
Top holdings after the filing:
- NYSE:EQBK: $15.97 million (6.1% of AUM)
- NASDAQ:MCHB: $14.04 million (5.4% of AUM)
- NASDAQ:FRST: $12.82 million (4.9% of AUM)
- NASDAQ:VBNK: $12.55 million (4.8% of AUM)
- NASDAQ:ABL: $10.99 million (4.2% of AUM)
As of December 05, 2025, shares were priced at $18.67, down 19.7% over the past year, underperforming the S&P 500 by 34.0 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $638.14 million |
| Net Income (TTM) | -$427.31 million |
| Dividend Yield | 4.52% |
| Price (as of market close 2025-12-05) | $18.67 |
Company Snapshot
- Offers a comprehensive suite of banking products and services, including checking and savings accounts, consumer and commercial loans, trust and fiduciary services, and investment management products.
- Serves individuals, small businesses, and commercial clients across Arkansas, Missouri, Tennessee, Texas, Oklahoma, and Kansas.
- Operates an extensive branch network, providing access to financial services through nearly 200 financial centers in the South-Central United States.
Simmons First National Corporation is a regional banking institution with a diversified product set and a focus on traditional and specialized financial services. The company leverages a broad branch network to reach a wide customer base in the South-Central United States. Its competitive position is supported by a strong emphasis on relationship banking and tailored financial solutions for both retail and commercial clients.
Foolish Take
So, Mendon Capital has taken a significant new stake in Simmons First National stock, bringing its total holdings in the regional bank to more than $7.7 million. Here's what retail investors need to know about this transaction.
For starters, Mendon Capital isn't your average investment manager. Its President and Chief Investment Officer (CIO), is Anton Schutz, a well-regarded expert in the field of U.S. regional banks. Mendon's move to take a large stake in Simmons First National, isn't just another institutional purchase -- it represents a significant bet made by one of leading analysts of the U.S. regional banking sector. In other word's, it's a move that should make average investors sit up and take notice.
As for Simmons First National, the company's fundamentals are not great. Both revenue and net income have dipped recently due to a one-time sale of some $3.2 billion in assets, which resulted in a significant pre-tax loss. Moreover, the company is in the middle of a strategic repositioning, designed to free up capital.
Turning to performance, shares of Simmons First National have lagged both the benchmark S&P 500 and sector measures like the State Street SPDR S&P Regional Banking ETF (KRE). Simmons First National stock has generated a five-year compound annual growth rate (CAGR) of only 1.2%, while the S&P 500 has a five-year CAGR of 14.9% and the KRE has a five-year CAGR of 7.9%.
In Summary, average investors should take note of this purchase mostly due to the pedigree of Mendon Capital and its president. Simmons First National could be a stock on the rise, but its fundamentals and past performance demonstrate the company still has a lot to prove.
Glossary
Assets Under Management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Equity Position: An ownership stake in a company, typically through holding its common or preferred stock.
Reportable Assets: Investments that a fund is required to disclose in regulatory filings, usually above a certain threshold.
Dividend Yield: Annual dividends paid by a company divided by its share price, expressed as a percentage.
Stake: The amount of ownership or interest a fund or investor holds in a company.
Fiduciary Services: Financial services involving management of assets or interests on behalf of others, with a legal duty of care.
Relationship Banking: A banking approach focused on building long-term client relationships through personalized services.
TTM: The 12-month period ending with the most recent quarterly report.
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Jake Lerch has positions in SPDR Series Trust - State Street SPDR S&P Regional Banking ETF. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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