Company: SFNC
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001628280-25-008639
Chunk: 110

Company: SIMMONS FIRST NATIONAL CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7
Chunk 110
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 was considered appropriate given the current economic environment and other related factors.

51

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 11: Allocation of Allowance for Credit Losses on Loans 

 December 31, 202420232022(Dollars in thousands)Allowance Amount% of loans (1)Allowance Amount% of loans (1)Allowance Amount% of loans (1)Credit cards$6,007 1.1%$5,868 1.1%$5,140 1.2%Other consumer and Other5,463 4.3%5,716 3.5%6,614 3.2%Real estate181,962 78.8%177,177 79.2%150,795 78.0%Commercial41,587 15.8%36,470 16.2%34,406 17.6%Total$235,019 100.0%$225,231 100.0%$196,955 100.0%Allowance for credit losses to period-end loans1.38 %1.34 %1.22 %

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

Investments and Securities

Our securities portfolio is the second largest component of earning assets and provides a significant source of revenue. Securities within the portfolio are classified as either held-to-maturity (“HTM”) or available-for-sale (“AFS”).

HTM securities, which include any security for which we have the positive intent and ability to hold until maturity, are carried at historical cost adjusted for amortization of premiums and accretion of discounts. Premiums and discounts are amortized and accreted, respectively, to interest income using the constant effective yield method over the security’s estimated life. Prepayments are anticipated for mortgage-backed and SBA securities. Premiums on callable securities are amortized to their earliest call date.

AFS securities