Company: SFNC
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001628280-25-008639
Chunk: 108

Company: SIMMONS FIRST NATIONAL CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7
Chunk 108
---
 interest payments)603 1,147 507 349 578 Total non-performing loans110,757 84,472 58,941 68,553 123,457 Other non-performing assets:Foreclosed assets held for sale and other real estate owned9,270 4,073 2,887 6,032 18,393 Other non-performing assets1,202 1,726 644 1,667 2,016 Total other non-performing assets10,472 5,799 3,531 7,699 20,409 Total non-performing assets$121,229 $90,271 $62,472 $76,252 $143,866 Allowance for credit losses to non-performing loans212 %267 %334 %300 %193 %Non-performing loans to total loans0.65 %0.50 %0.37 %0.57 %0.96 %Non-performing assets to total assets0.45 %0.33 %0.23 %0.31 %0.64 %

_________________________

(1)    Includes nonaccrual financial difficulty modifications (formerly known as troubled debt restructurings) of approximately $597,000, $282,000, $1.6 million, $2.7 million and $4.4 million at December 31, 2024, 2023, 2022, 2021 and 2020, respectively.

The interest income on nonaccrual loans is not considered material for the years ended December 31, 2024, 2023 and 2022.

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