Company: SFNC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050112
Chunk: 28

Company: SIMMONS FIRST NATIONAL CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 28
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 beginning of year$235,019 $225,231 Loans charged off:Credit card5,024 4,808 Other consumer2,084 1,806 Real estate7,225 3,139 Commercial20,579 20,071 Total loans charged off34,912 29,824 Recoveries of loans previously charged off:Credit card802 700 Other consumer903 1,117 Real estate301 1,210 Commercial1,971 1,336 Total recoveries3,977 4,363 Net loans charged off30,935 25,461 Provision for credit losses53,922 33,453 Balance, September 30,$258,006 $233,223 Loans charged off:Credit card1,629 Other consumer505 Real estate3,810 Commercial6,796 Total loans charged off12,740 Recoveries of loans previously charged off:Credit card391 Other consumer279 Real estate275 Commercial259 Total recoveries1,204 Net loans charged off11,536 Provision for credit losses13,332 Balance, end of year$235,019 

Provision for Credit Losses

The amount of provision added to or released from the allowance during the three and nine months ended September 30, 2025 and 2024, and for the year ended December 31, 2024, was based on management’s judgment, with consideration given to the composition and asset quality of the portfolio, historical loan loss experience, and assessment of current and expected economic forecasts and conditions. It is management’s practice to review the allowance on a monthly basis, and after considering the factors previously noted, to determine the level of provision made to the allowance. 

Allowance for Credit Losses Allocation

As of September 30, 2025, the allowance for credit losses reflected an increase of approximately $23.0 million from December 31, 2024, while total loans increased by $182.9 million over the same nine month period. The allocation in each category within the allowance generally reflects the overall changes in the loan portfolio mix.

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The increase in the allowance for credit losses during the first nine months of 2025 was primarily due to a provision expense of $15.6 million related to two specific credit relationships which migrated to nonperforming during the period, as well as the impact of updated economic forecasts.