Company: SFNC
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001628280-25-037719
Chunk: 26

Company: SIMMONS FIRST NATIONAL CORP
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 2
Chunk 26
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2025, the allowance for credit losses reflected an increase of approximately $18.5 million from December 31, 2024, while total loans increased by $105.2 million over the same six month period. The allocation in each category within the allowance generally reflects the overall changes in the loan portfolio mix.

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The increase in the allowance for credit losses during the first six months of 2025 was primarily due to a provision expense of $15.6 million related to two specific credit relationships which migrated to nonperforming during the period, as well as the impact of updated economic forecasts. Our allowance for credit losses at June 30, 2025 was considered appropriate given the current economic environment and other related factors. 

The following table sets forth the sum of the amounts of the allowance for credit losses attributable to individual loans within each category, or loan categories in general. The table also reflects the percentage of loans in each category to the total loan portfolio for each of the periods indicated. The allowance for credit losses by loan category is determined by (i) our estimated reserve factors by category including applicable qualitative adjustments and (ii) any specific allowance allocations that are identified on individually evaluated loans. The amounts shown are not necessarily indicative of the actual future losses that may occur within individual categories.

Table 10: Allocation of Allowance for Credit Losses 

 June 30, 2025December 31, 2024(Dollars in thousands)AllowanceAmount% ofloans (1)AllowanceAmount% ofloans (1)Credit cards$6,087 1.0 %$6,007 1.1 %Other consumer6,267 4.6 %5,463 4.3 %Real estate203,985 78.2 %181,962 78.8 %Commercial37,198 16.2 %41,587 15.8 %Total$253,537 100.0 %$235,019 100.0 %Allowance for credit losses to period-end loans1.48 %1.38 %

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(1)Percentage of loans in each category to total loans.

DEPOSITS

Deposits are our primary source of funding for earning assets and are primarily developed through our network of 223 financial centers as of June 30, 2025. We offer a variety of products designed to attract and retain customers with a continuing focus on developing core