Company: SFNC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050112
Chunk: 157

Company: SIMMONS FIRST NATIONAL CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 157
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 for credit losses and reserve for unfunded commitments248,710 222,313 Total Tier 2 capital699,686 456,606 Total risk-based capital$2,990,877 $2,992,133 Risk weighted assets$19,861,879 $20,473,960 Assets for leverage ratio$23,963,356 $26,037,459 Ratios at end of period:Common equity Tier 1 ratio (CET1)11.54 %12.38 %Tier 1 leverage ratio9.56 %9.74 %Tier 1 risk-based capital ratio11.54 %12.38 %Total risk-based capital ratio15.07 %14.61 %Minimum guidelines:Common equity Tier 1 ratio (CET1)4.50 %4.50 %Tier 1 leverage ratio4.00 %4.00 %Tier 1 risk-based capital ratio6.00 %6.00 %Total risk-based capital ratio8.00 %8.00 %

73

Regulatory Capital Changes

In December 2018, the Federal Reserve, Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation (“FDIC”) (collectively, the “agencies”) issued a final rule revising regulatory capital rules in anticipation of the adoption of ASU 2016-13 that provided an option to phase in over a three year period on a straight line basis the day-one impact of the adoption on earnings and Tier 1 capital (the “CECL Transition Provision”). 

In March 2020 and in response to the COVID-19 pandemic, the agencies issued a new regulatory capital rule revising the CECL Transition Provision to delay the estimated impact on regulatory capital stemming from the implementation of ASU 2016-13. The rule provided banking organizations that implement CECL before the end of 2020 the option to delay for two years an estimate of CECL’s effect on regulatory capital, followed by a three-year transition period (the “2020 CECL Transition Provision”). The Company elected to apply the 2020 CECL Transition Provision. 

The Basel III Capital Rules define the components of capital and address other issues affecting the numerator in banking institutions’ regulatory capital ratios. The rules also address risk weights and other issues affecting the denominator in banking institutions’ regulatory capital ratios with a more risk-sensitive approach. The Basel III Capital Rules established risk