Company: SFNC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023690
Chunk: 196

Company: SIMMONS FIRST NATIONAL CORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 196
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 type, collateral type, and internal risk ratings are aggregated into homogeneous segments for assessment. Reserve factors are based on estimated probability of default and loss given default for each segment. The estimates are determined based on economic forecasts over the reasonable and supportable forecast period based on projected performance of economic variables that have a statistical relationship with the historical loss experience of the segments. 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, the Company’s 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.Loans for which the repayment is expected to be provided substantially through the operation or sale of collateral and where the borrower is experiencing financial difficulty had an amortized cost of $95.4 million and $102.6 million as of March 31, 2025 and December 31, 2024, respectively, as further detailed in the table below. The collateral securing these loans consist of commercial real estate properties, residential properties, and other business assets.(In thousands)Real Estate CollateralOther CollateralTotalMarch 31, 2025Construction and development$3,594 $— $3,594 Single family residential— — — Other commercial real estate69,429 — 69,429 Commercial— 22,376 22,376 Total$73,023 $22,376 $95,399 December 31, 2024Construction and development$1,251 $— $1,251 Single family residential— — — Other commercial real estate69,429 — 69,429 Commercial— 31,900 31,900 Total$70,680 $31,900 $102,580 The following table details activity in the allowance for credit losses by portfolio segment for the three months ended March 31, 2025. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. (In thousands)CommercialRealEstateCreditCardOtherConsumerand OtherTotalAllowance for credit losses:Three Months Ended March 31, 2025Beginning balance, January 1, 2025$41,587 $