Company: SFNC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050112
Chunk: 277

Company: SIMMONS FIRST NATIONAL CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 277
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2028 and 2029. For the nine months ended September 30, 2025, the net amount included in interest income on investment securities in the consolidated statements of income related to these swap agreements was $24.2 million.

LOAN PORTFOLIO

Our loan portfolio averaged $16.98 billion and $17.07 billion during the first nine months of 2025 and 2024, respectively. As of September 30, 2025, total loans were $17.19 billion, an increase of $182.9 million from December 31, 2024. The increase in the loan balance during the first nine months of 2025 when compared to December 31, 2024 is primarily due to growth in the real estate - construction and development, agricultural 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 8, according to type of loan.

Table 8: Loan Portfolio 

September 30,December 31,(In thousands)20252024Consumer:  Credit cards$173,020 $181,675 Other consumer112,335 127,319 Total consumer285,355 308,994 Real estate:Construction and development2,874,823 2,789,249 Single family residential2,617,849 2,689,946