Company: SFNC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023690
Chunk: 128

Company: SIMMONS FIRST NATIONAL CORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 128
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 cost and foreclosed assets held for sale. 

Table 8: Nonperforming Assets 

March 31,December 31,March 31,(Dollars in thousands)202520242024Nonaccrual loans (1)$151,897 $110,154 $105,788 Loans past due 90 days or more (principal or interest payments)494 603 1,527 Total nonperforming loans152,391 110,757 107,315 Other nonperforming assets:Foreclosed assets held for sale and other real estate owned8,976 9,270 3,511 Other nonperforming assets978 1,202 1,491 Total other nonperforming assets9,954 10,472 5,002 Total nonperforming assets$162,345 $121,229 $112,317 Allowance for credit losses to nonperforming loans165 %212 %212 %Nonperforming loans to total loans0.89 %0.65 %0.63 %Nonperforming assets to total assets0.61 %0.45 %0.41 %

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(1)Includes nonaccrual FDMs of approximately $28.2 million and $597,000 at March 31, 2025 and December 31, 2024, respectively.

The interest income on nonaccrual loans is not considered material for the three month periods ended March 31, 2025 and 2024. 

ALLOWANCE FOR CREDIT LOSSES

The allowance for credit losses is a reserve established through a provision for credit losses charged to expense which represents management’s best estimate of lifetime expected losses based on reasonable and supportable forecasts, quantitative factors, and other qualitative considerations.

Loans with similar risk characteristics such as loan type, collateral type, and internal risk ratings are aggregated for collective assessment. We use statistically-based models that leverage assumptions about current and future economic conditions throughout the contractual life of the loan. Expected credit losses are estimated by either lifetime loss rates or expected loss cash flows based on three key parameters: probability-of-default (“PD”), exposure-at-default (“EAD”), and loss-given-default (“LGD”). Future economic conditions are incorporated to the extent that they are reasonable and supportable. Beyond the reasonable and supportable periods, the economic variables revert to a historical equilibrium at a pace dependent on the state of the economy