Company: SFNC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023690
Chunk: 21

Company: SIMMONS FIRST NATIONAL CORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 21
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 has been on our classified list since April of 2021. This is the only credit relationship within our portfolio located in downtown St. Louis. The other relationship totaling $22.9 million relates to a fast-food operator and has been on our classified list since June of 2024 due to sector-related headwinds and global cash flow concerns with the borrower.

From time to time, certain borrowers experience declines in income and cash flow. As a result, these borrowers seek to reduce contractual cash outlays, the most prominent being debt payments. In an effort to preserve our net interest margin and earning assets, we are open to working with existing customers in order to maximize the collectability of the debt.

We have internal loan modification programs for borrowers experiencing financial difficulties. Modifications to borrowers experiencing financial difficulties (“FDMs”) may include interest rate reductions, principal or interest forgiveness and/or term extensions. We primarily use interest rate reduction and/or payment modifications or extensions, with an occasional forgiveness of principal. 

There were four loan modifications granted to borrowers experiencing financial difficulty during the three month period ended March 31, 2025. Such modifications included interest rate reductions and had a total period-end amortized cost basis of $451,000 at March 31, 2025.

The allowance for credit losses as a percent of total loans was 1.48% as of March 31, 2025. Nonperforming loans equaled 0.89% of total loans. Nonperforming assets were 0.61% of total assets, a 16 basis point increase from December 31, 2024. The allowance for credit losses was 165% of nonperforming loans. Our annualized net charge-offs to average total loans ratio for the first three months of 2025 was 0.23%. Annualized net credit card charge-offs to average total credit card loans were 2.72% for the first three months of 2025, compared to 2.93% during the full year 2024, and 176 basis points better than the most recently published industry average charge-off ratio as reported by the Federal Reserve for all banks.

58

Table 8 presents information concerning nonperforming assets, including nonaccrual loans at amortized cost and foreclosed assets held for sale. 

Table 8: Nonperforming Assets 

March 31,December 31,March 31,(Dollars in thousands)202520242024Nonaccrual loans (1)$