Company: SFNC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050112
Chunk: 222

Company: SIMMONS FIRST NATIONAL CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 222
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Charge-offs(20,071)(3,139)(4,808)(1,806)(29,824)Recoveries1,336 1,210 700 1,117 4,363 Net (charge-offs) recoveries(18,735)(1,929)(4,108)(689)(25,461)Ending balance, September 30, 2024$43,842 $177,018 $6,007 $6,356 $233,223 As of September 30, 2025, the Company’s allowance for credit losses was considered sufficient based upon expected losses that were supported by scenario-weighted economic forecasts. The provision expense for the three and nine months ended September 30, 2025 reflected the impact of loan growth and updated economic assumptions during the periods, while the nine month period ended September 30, 2025 also included an incremental provision expense of $15.6 million related to two specific credit relationships which migrated to nonperforming during the year.Reserve for Unfunded Commitments In addition to the allowance for credit losses, the Company has established a reserve for unfunded commitments, classified in other liabilities. This reserve is maintained at a level management believes to be sufficient to absorb losses arising from unfunded loan commitments. The reserve for unfunded commitments was $25.6 million for both periods ended September 30, 2025 and December 31, 2024. The adequacy of the reserve for unfunded commitments is determined quarterly based on methodology similar to the methodology for determining the allowance for credit losses. No adjustment was made to the reserve for unfunded commitments during the three and nine month periods ended September 30, 2025 or 2024, as it was considered sufficient to cover any loss expectations. 

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Provision for Credit LossesProvision for credit losses is determined by the Company as the amount to be added to the allowance for credit loss accounts for various types of financial instruments including loans, securities and off-balance-sheet credit exposure after net charge-offs have been deducted to bring the allowance to a level which, in management’s best estimate, is necessary to absorb expected credit losses over the lives of the respective financial instruments.The components of the provision for credit losses for the three and nine month periods ended September 30, 2025 and 2024 were as follows:Three Months EndedSeptember 30,Nine Months EndedSeptember 30,(In thousands)2025202420252024Provision for