Company: SFNC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023690
Chunk: 244

Company: SIMMONS FIRST NATIONAL CORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 244
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 first three months of 2025 when compared to December 31, 2024 is primarily due to growth in the commercial real estate and mortgage warehouse portfolios over the comparative period, while we continued to focus on maintaining prudent underwriting standards and pricing discipline. The most significant components of the loan portfolio were loans to businesses (commercial loans, commercial real estate loans and agricultural loans) and individuals (consumer loans, credit card loans and single-family residential real estate loans).

We seek to manage our credit risk by diversifying our loan portfolio, determining that borrowers have adequate sources of cash flow for loan repayment without liquidation of collateral, obtaining and monitoring collateral, providing an appropriate allowance for credit losses and regularly reviewing loans through the internal loan review process. The loan portfolio is diversified by borrower, purpose, industry and geographic region. We seek to use diversification within the loan portfolio to reduce credit risk, thereby minimizing the adverse impact on the portfolio, if weaknesses develop in either the economy or a particular segment of borrowers. Collateral requirements are based on credit assessments of borrowers and may be used to recover the debt in case of default. We use the allowance for credit losses as a method to value the loan portfolio at its estimated collectible amount. Loans are regularly reviewed to facilitate the identification and monitoring of deteriorating credits.

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The balances of loans outstanding at the indicated dates are reflected in Table 7, according to type of loan.

Table 7: Loan Portfolio 

March 31,December 31,(In thousands)20252024Consumer:  Credit cards$179,680 $181,675 Other consumer97,198 127,319 Total consumer276,878 308,994 Real estate:Construction and development2,778,245 2,789,249 Single family residential2,647,451 2,689,946 Other commercial8,051,304 7,912,336 Total real estate13,477,000 13,391,531 Commercial:Commercial2,372,681 2,434,175 Agricultural264,469 261,154 Total commercial2,637,150 2,695,329 Other703,050 610,083 Total loans before allowance for credit losses$17,094,078 $17,005,937 

Consumer loans consist of credit card loans and other consumer loans. Consumer loans were $276.9 million at March 31, 2025, or 1.6%