Company: SFNC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023690
Chunk: 129

Company: SIMMONS FIRST NATIONAL CORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 129
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 reflected within the economic scenarios. We also include qualitative adjustments to the allowance based on factors and considerations that have not otherwise been fully accounted for. 

Loans that have unique risk characteristics are evaluated on an individual basis. These evaluations are typically performed on loans with a deteriorated internal risk rating. For a collateral-dependent loan, our evaluation process includes a valuation by appraisal or other collateral analysis adjusted for selling costs, when appropriate. This valuation is compared to the remaining outstanding principal balance of the loan. If a loss is determined to be probable, the loss is included in the allowance for credit losses as a specific allocation.

59

An analysis of the allowance for credit losses on loans is shown in Table 9.

Table 9: Allowance for Credit Losses 

(In thousands)20252024Balance, beginning of year$235,019 $225,231 Loans charged off:Credit card1,460 1,646 Other consumer1,133 732 Real estate4,425 2,857 Commercial4,243 4,593 Total loans charged off11,261 9,828 Recoveries of loans previously charged off:Credit card211 248 Other consumer306 333 Real estate99 735 Commercial997 442 Total recoveries1,613 1,758 Net loans charged off9,648 8,070 Provision for credit losses26,797 10,206 Balance, March 31,$252,168 $227,367 Loans charged off:Credit card4,791 Other consumer1,579 Real estate4,092 Commercial22,274 Total loans charged off32,736 Recoveries of loans previously charged off:Credit card843 Other consumer1,063 Real estate750 Commercial1,153 Total recoveries3,809 Net loans charged off28,927 Provision for credit losses36,579 Balance, end of year$235,019 

Provision for Credit Losses

The amount of provision added to or released from the allowance during the three months ended March 31, 2025 and 2024, and for the year ended December 31, 2024, was based on management’s judgment, with consideration given to the composition and asset quality of the portfolio, historical loan loss experience, and assessment of current and expected economic forecasts and conditions. It is management’s practice to review the allowance on a monthly basis, and after considering