Company: SFNC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050112
Chunk: 282

Company: SIMMONS FIRST NATIONAL CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 282
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 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 reflected within the economic scenarios. We also include qualitative adjustments to the allowance based on factors and considerations that have not otherwise been fully accounted for. 

Loans that have unique risk characteristics are evaluated on an individual basis. These evaluations are typically performed on loans with a deteriorated internal risk rating. For a collateral-dependent loan, our evaluation process includes a valuation by appraisal or other collateral analysis adjusted for selling costs, when appropriate. This valuation is compared to the remaining outstanding principal balance of the loan. If a loss is determined to be probable, the loss is included in the allowance for credit losses as a specific allocation.

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An analysis of the allowance for credit losses on loans is shown in Table 10.

Table 10: Allowance for Credit Losses 

(In thousands)20252024Balance, 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