Company: SFNC
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001628280-25-037719
Chunk: 25

Company: SIMMONS FIRST NATIONAL CORP
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 2
Chunk 25
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 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.

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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 card3,162 3,064 Other consumer1,484 1,282 Real estate5,875 2,980 Commercial12,500 11,836 Total loans charged off23,021 19,162 Recoveries of loans previously charged off:Credit card545 469 Other consumer600 842 Real estate186 807 Commercial1,466 897 Total recoveries2,797 3,015 Net loans charged off20,224 16,147 Provision for credit losses38,742 21,305 Balance, June 30,$253,537 $230,389 Loans charged off:Credit card3,373 Other consumer1,029 Real estate3,969 Commercial15,031 Total loans charged off23,402 Recoveries of loans previously charged off:Credit card622 Other consumer554 Real estate678 Commercial698 Total recoveries2,552 Net loans charged off20,850 Provision for credit losses25,480 Balance, end of year$235,019 

Provision for Credit Losses

The amount of provision added to or released from the allowance during the three and six months ended June 30, 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 the factors previously noted, to determine the level of provision made to the allowance. 

Allowance for Credit Losses Allocation

As of June 30,