Company: SFNC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050112
Chunk: 23

Company: SIMMONS FIRST NATIONAL CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 23
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 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 Other commercial7,875,649 7,912,336 Total real estate13,368,321 13,391,531 Commercial:Commercial2,397,388 2,434,175 Agricultural353,181 261,154 Total commercial2,750,569 2,695,329 Other784,572 610,083 Total loans before allowance for credit losses$17,188,817 $17,005,937 

Consumer loans consist of credit card loans and other consumer loans. Consumer loans were $285.4 million at September 30, 2025, or 1.7% of total loans, compared to $309.0 million, or 1.8% of total loans at December 31, 2024. The decrease in consumer loans from December 31, 2024, to September 30, 2025, was primarily due to loan payoffs and pay downs within both the credit card and other consumer portfolios during the period.

Real estate loans consist of construction and development loans (“C&D”) loans, single-family residential loans and commercial real estate (“