Southside Bancshares, Inc. Announces Financial Results For The Second Quarter Ended June 30, 2022
Southside Bancshares reported a net income of $25.4 million for Q2 2022, marking a 19.2% increase from $21.3 million in Q2 2021. Earnings per share rose 21.5% to $0.79. Loan growth was strong, with a 4.6% increase from the previous quarter. The annualized return on average assets improved to 1.42%, and the net interest margin reached 3.30%. However, noninterest income decreased by 16.8% year-over-year to $9.1 million, primarily due to net losses on available-for-sale securities.
- Net income increased by 19.2% to $25.4 million in Q2 2022.
- Earnings per share rose by 21.5% to $0.79.
- Loan growth linked quarter net increased by 4.6%.
- Annualized return on average assets improved to 1.42%.
- Net interest margin increased to 3.30%.
- Noninterest income decreased by 16.8% year-over-year to $9.1 million.
- Net losses on sales of available-for-sale securities impacted noninterest income.
- Second quarter net income of
$25.4 million ; - Linked quarter loan growth, net of Paycheck Protection Program (“PPP”) loans, of
4.6% ; - Linked quarter net interest margin (FTE) increased to
3.30% (1); - Annualized return on second quarter average assets of
1.42% ; - Annualized return on second quarter average tangible common equity of
18.62% (1); and - Nonperforming assets remain low at
0.16% of total assets.
TYLER, Texas, July 25, 2022 (GLOBE NEWSWIRE) -- Southside Bancshares, Inc. (“Southside” or the “Company”) (NASDAQ: SBSI) today reported its financial results for the quarter ended June 30, 2022. Southside reported net income of
“Excellent second quarter financial results for 2022 were highlighted by net income of
Operating Results for the Three Months Ended June 30, 2022
Net income was
Net interest income for the three months ended June 30, 2022 was
Our net interest margin and tax equivalent net interest margin(1) increased to
Noninterest income was
Noninterest expense increased
Income tax expense increased
Operating Results for the Six Months Ended June 30, 2022
Net income was
Net interest income was
Our net interest margin and tax equivalent net interest margin(1) were
Noninterest income was
Noninterest expense was
Income tax expense decreased
Balance Sheet Data
At June 30, 2022, we had
Loans at June 30, 2022 were
Securities at June 30, 2022 were
Deposits at June 30, 2022 were
On March 1, 2022, our board of directors approved a Stock Repurchase Plan, authorizing the repurchase, from time to time, of up to 1.0 million shares of the Company’s outstanding common stock. Repurchases may be carried out in open market purchases, privately negotiated transactions or pursuant to any trading plan that might be adopted in accordance with Rule 10b5-1 of the Exchange Act. The Company has no obligation to repurchase any shares under the Stock Repurchase Plan and may suspend or discontinue the plan at any time. During the second quarter ended June 30, 2022, we purchased 223,901 shares of common stock at an average price of
Asset Quality
Nonperforming assets at June 30, 2022 were
The allowance for loan losses decreased to
We recorded a reversal of provision for credit losses for loans of
We recorded a reversal of provision for credit losses for off-balance-sheet credit exposures of
Dividend
Southside Bancshares, Inc. declared a second quarter cash dividend of
_______________
(1) Refer to “Non-GAAP Financial Measures” below and to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for more information and for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
Conference Call
Southside's management team will host a conference call to discuss its second quarter ended June 30, 2022 financial results on Monday, July 25, 2022 at 11:00 a.m. CDT. The conference call can be accessed by webcast, for listen-only mode, on the company website, https://investors.southside.com.
Those interested in participating in the question and answer session, or others who prefer to call-in, can register at https://register.vevent.com/register/BI5d7ab17357d44179bd7d475623aa4f69 to receive the dial-in number and unique code to access the conference call seamlessly. While not required, it is recommended that those wishing to participate register 10 minutes prior to the conference call to ensure a more efficient registration process.
For those unable to attend the live event, a webcast recording will be available on the company website, https://investors.southside.com, for at least 30 days, beginning approximately two hours following the conference call.
Non-GAAP Financial Measures
Our accounting and reporting policies conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP measures are used by management to supplement the evaluation of our performance. These include the following fully taxable-equivalent measures (“FTE”): (i) Net interest income (FTE), (ii) net interest margin (FTE), (iii) net interest spread (FTE), and (iv) efficiency ratio (FTE), which include the effects of taxable-equivalent adjustments using a federal income tax rate of
Net interest income (FTE), net interest margin (FTE) and net interest spread (FTE). Net interest income (FTE) is a non-GAAP measure that adjusts for the tax-favored status of net interest income from certain loans and investments and is not permitted under GAAP in the consolidated statements of income. We believe this measure to be the preferred industry measurement of net interest income and that it enhances comparability of net interest income arising from taxable and tax-exempt sources. The most directly comparable financial measure calculated in accordance with GAAP is our net interest income. Net interest margin (FTE) is the ratio of net interest income (FTE) to average earning assets. The most directly comparable financial measure calculated in accordance with GAAP is our net interest margin. Net interest spread (FTE) is the difference in the average yield on average earning assets on a tax-equivalent basis and the average rate paid on average interest bearing liabilities. The most directly comparable financial measure calculated in accordance with GAAP is our net interest spread.
Efficiency ratio (FTE). The efficiency ratio (FTE) is a non-GAAP measure that provides a measure of productivity in the banking industry. This ratio is calculated to measure the cost of generating one dollar of revenue. The ratio is designed to reflect the percentage of one dollar which must be expended to generate that dollar of revenue. We calculate this ratio by dividing noninterest expense, excluding amortization expense on intangibles and certain nonrecurring expense by the sum of net interest income (FTE) and noninterest income, excluding net gain (loss) on sale of securities available for sale and certain nonrecurring impairments. The most directly comparable financial measure calculated in accordance with GAAP is our efficiency ratio.
These non-GAAP financial measures should not be considered alternatives to GAAP-basis financial statements and other bank holding companies may define or calculate these non-GAAP measures or similar measures differently. Whenever we present a non-GAAP financial measure in an SEC filing, we are also required to present the most directly comparable financial measure calculated and presented in accordance with GAAP and reconcile the differences between the non-GAAP financial measure and such comparable GAAP measure.
Management believes adjusting net interest income, net interest margin and net interest spread to a fully taxable-equivalent basis is a standard practice in the banking industry as these measures provide useful information to make peer comparisons. Tax-equivalent adjustments are reflected in the respective earning asset categories as listed in the “Average Balances with Average Yields and Rates” tables.
A reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.
About Southside Bancshares, Inc.
Southside Bancshares, Inc. is a bank holding company with approximately
To learn more about Southside Bancshares, Inc., please visit our investor relations website at https://investors.southside.com. Our investor relations site provides a detailed overview of our activities, financial information and historical stock price data. To receive e-mail notification of company news, events and stock activity, please register on the E-mail Notification portion of the website. Questions or comments may be directed to Lindsey Bailes at (903) 630-7965, or lindsey.bailes@southside.com.
Forward-Looking Statements
Certain statements of other than historical fact that are contained in this press release and in other written materials, documents and oral statements issued by or on behalf of the Company may be considered to be “forward-looking statements” within the meaning of and subject to the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. These statements may include words such as “expect,” “estimate,” “project,” “anticipate,” “appear,” “believe,” “could,” “should,” “may,” “might,” “will,” “would,” “seek,” “intend,” “probability,” “risk,” “goal,” “target,” “objective,” “plans,” “potential,” and similar expressions. Forward-looking statements are statements with respect to the Company’s beliefs, plans, expectations, objectives, goals, anticipations, assumptions, estimates, intentions and future performance and are subject to significant known and unknown risks and uncertainties, which could cause the Company's actual results to differ materially from the results discussed in the forward-looking statements. For example, discussions of the effect of our expansion, benefits of the Share Repurchase Plan, trends in asset quality, capital, liquidity, the Company's ability to sell nonperforming assets, expense reductions, planned operational efficiencies and earnings from growth and certain market risk disclosures, including the impact of interest rates, tax reform, inflation, the impacts related to or resulting from Russia’s invasion of Ukraine and other economic factors are based upon information presently available to management and are dependent on choices about key model characteristics and assumptions and are subject to various limitations. By their nature, certain of the market risk disclosures are only estimates and could be materially different from what actually occurs in the future. Accordingly, our results could materially differ from those that have been estimated. The most significant factor that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of the COVID-19 pandemic and related variants on our business, financial position, operations and prospects, including our ability to continue our business activities in certain communities we serve, the duration of the pandemic and its continued effects on local, national and global financial markets, a reduction in financial transactions and business activities resulting in decreased deposits and reduced loan originations, our ability to manage liquidity in a rapidly changing and unpredictable market, supply chain disruptions, heightened inflation, labor shortages and interest rate increases by the Federal Reserve and other government actions in response to the pandemic, including regulations or laws enacted to counter the effects of the COVID-19 pandemic on the economy.
Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, under “Part I - Item 1. Forward Looking Information” and in the Company’s other filings with the Securities and Exchange Commission. The Company disclaims any obligation to update any factors or to announce publicly the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.
Southside Bancshares, Inc.
Consolidated Financial Summary (Unaudited)
(Dollars in thousands)
As of | |||||||||||||||||||
2022 | 2021 | ||||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and due from banks | $ | 111,099 | $ | 90,399 | $ | 91,120 | $ | 83,346 | $ | 92,047 | |||||||||
Interest earning deposits | 12,910 | 72,158 | 110,633 | 3,787 | 36,441 | ||||||||||||||
Federal funds sold | 48,280 | 24,550 | — | — | — | ||||||||||||||
Securities available for sale, at estimated fair value | 1,733,354 | 2,065,984 | 2,764,325 | 2,753,104 | 2,766,035 | ||||||||||||||
Securities held to maturity, at net carrying value | 1,083,672 | 474,319 | 90,780 | 92,479 | 94,850 | ||||||||||||||
Total securities | 2,817,026 | 2,540,303 | 2,855,105 | 2,845,583 | 2,860,885 | ||||||||||||||
Federal Home Loan Bank stock, at cost | 13,726 | 3,757 | 14,375 | 27,248 | 28,081 | ||||||||||||||
Loans held for sale | 815 | 1,576 | 1,684 | 1,131 | 2,510 | ||||||||||||||
Loans | 3,963,041 | 3,800,916 | 3,645,162 | 3,647,585 | 3,642,346 | ||||||||||||||
Less: Allowance for loan losses | (35,449 | ) | (35,524 | ) | (35,273 | ) | (38,022 | ) | (42,913 | ) | |||||||||
Net loans | 3,927,592 | 3,765,392 | 3,609,889 | 3,609,563 | 3,599,433 | ||||||||||||||
Premises & equipment, net | 142,772 | 142,880 | 142,509 | 142,736 | 142,835 | ||||||||||||||
Goodwill | 201,116 | 201,116 | 201,116 | 201,116 | 201,116 | ||||||||||||||
Other intangible assets, net | 5,687 | 6,273 | 6,895 | 7,553 | 8,248 | ||||||||||||||
Bank owned life insurance | 132,675 | 131,923 | 131,232 | 130,522 | 116,886 | ||||||||||||||
Other assets | 192,363 | 138,788 | 95,044 | 83,106 | 93,926 | ||||||||||||||
Total assets | $ | 7,606,061 | $ | 7,119,115 | $ | 7,259,602 | $ | 7,135,691 | $ | 7,182,408 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||
Noninterest bearing deposits | $ | 1,735,488 | $ | 1,630,056 | $ | 1,644,775 | $ | 1,596,781 | $ | 1,501,120 | |||||||||
Interest bearing deposits | 4,512,921 | 4,440,343 | 4,077,552 | 3,734,874 | 3,655,047 | ||||||||||||||
Total deposits | 6,248,409 | 6,070,399 | 5,722,327 | 5,331,655 | 5,156,167 | ||||||||||||||
Other borrowings and Federal Home Loan Bank borrowings | 212,179 | 34,067 | 367,257 | 679,928 | 745,151 | ||||||||||||||
Subordinated notes, net of unamortized debt issuance costs | 98,604 | 98,569 | 98,534 | 98,500 | 197,312 | ||||||||||||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,262 | 60,261 | 60,260 | 60,259 | 60,258 | ||||||||||||||
Other liabilities | 254,825 | 71,578 | 99,052 | 87,483 | 129,120 | ||||||||||||||
Total liabilities | 6,874,279 | 6,334,874 | 6,347,430 | 6,257,825 | 6,288,008 | ||||||||||||||
Shareholders' equity | 731,782 | 784,241 | 912,172 | 877,866 | 894,400 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 7,606,061 | $ | 7,119,115 | $ | 7,259,602 | $ | 7,135,691 | $ | 7,182,408 |
Southside Bancshares, Inc.
Consolidated Financial Highlights (Unaudited)
(Dollars and shares in thousands, except per share data)
Three Months Ended | |||||||||||||||||||
2022 | 2021 | ||||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | |||||||||||||||
Income Statement: | |||||||||||||||||||
Total interest income | $ | 57,100 | $ | 53,873 | $ | 54,760 | $ | 55,076 | $ | 52,586 | |||||||||
Total interest expense | 6,022 | 4,967 | 5,359 | 6,870 | 6,939 | ||||||||||||||
Net interest income | 51,078 | 48,906 | 49,401 | 48,206 | 45,647 | ||||||||||||||
Provision for (reversal of) credit losses | (633 | ) | 294 | (3,421 | ) | (5,071 | ) | 1,677 | |||||||||||
Net interest income after provision for (reversal of) credit losses | 51,711 | 48,612 | 52,822 | 53,277 | 43,970 | ||||||||||||||
Noninterest income | |||||||||||||||||||
Deposit services | 6,496 | 6,628 | 6,855 | 6,779 | 6,609 | ||||||||||||||
Net gain (loss) on sale of securities available for sale | (2,177 | ) | (1,543 | ) | 463 | 1,381 | 15 | ||||||||||||
Gain on sale of loans | 208 | 178 | 356 | 299 | 393 | ||||||||||||||
Trust fees | 1,520 | 1,494 | 1,586 | 1,494 | 1,496 | ||||||||||||||
Bank owned life insurance | 720 | 691 | 710 | 637 | 645 | ||||||||||||||
Brokerage services | 1,098 | 809 | 907 | 846 | 850 | ||||||||||||||
Other | 1,232 | 2,468 | 1,134 | 1,333 | 925 | ||||||||||||||
Total noninterest income | 9,097 | 10,725 | 12,011 | 12,769 | 10,933 | ||||||||||||||
Noninterest expense | |||||||||||||||||||
Salaries and employee benefits | 20,329 | 19,969 | 20,067 | 19,777 | 20,004 | ||||||||||||||
Net occupancy | 3,654 | 3,656 | 3,541 | 3,532 | 3,606 | ||||||||||||||
Advertising, travel & entertainment | 716 | 737 | 876 | 579 | 475 | ||||||||||||||
ATM expense | 356 | 281 | 345 | 311 | 272 | ||||||||||||||
Professional fees | 1,147 | 927 | 849 | 1,135 | 1,040 | ||||||||||||||
Software and data processing | 1,739 | 1,631 | 1,454 | 1,503 | 1,406 | ||||||||||||||
Communications | 509 | 503 | 544 | 552 | 612 | ||||||||||||||
FDIC insurance | 477 | 472 | 464 | 454 | 435 | ||||||||||||||
Amortization of intangibles | 586 | 622 | 658 | 695 | 730 | ||||||||||||||
Loss on redemption of subordinated notes | — | — | — | 1,118 | — | ||||||||||||||
Other | 2,593 | 2,397 | 2,536 | 2,107 | 2,119 | ||||||||||||||
Total noninterest expense | 32,106 | 31,195 | 31,334 | 31,763 | 30,699 | ||||||||||||||
Income before income tax expense | 28,702 | 28,142 | 33,499 | 34,283 | 24,204 | ||||||||||||||
Income tax expense | 3,297 | 3,146 | 4,812 | 4,977 | 2,887 | ||||||||||||||
Net income | $ | 25,405 | $ | 24,996 | $ | 28,687 | $ | 29,306 | $ | 21,317 | |||||||||
Common Share Data: | |||||||||||||||||||
Weighted-average basic shares outstanding | 32,119 | 32,357 | 32,311 | 32,465 | 32,632 | ||||||||||||||
Weighted-average diluted shares outstanding | 32,251 | 32,537 | 32,487 | 32,556 | 32,799 | ||||||||||||||
Common shares outstanding end of period | 32,108 | 32,294 | 32,352 | 32,273 | 32,675 | ||||||||||||||
Earnings per common share | |||||||||||||||||||
Basic | $ | 0.79 | $ | 0.77 | $ | 0.89 | $ | 0.90 | $ | 0.65 | |||||||||
Diluted | 0.79 | 0.77 | 0.88 | 0.90 | 0.65 | ||||||||||||||
Book value per common share | 22.79 | 24.28 | 28.20 | 27.20 | 27.37 | ||||||||||||||
Tangible book value per common share(1) | 16.35 | 17.86 | 21.77 | 20.74 | 20.97 | ||||||||||||||
Cash dividends paid per common share | 0.34 | 0.34 | 0.39 | 0.33 | 0.33 | ||||||||||||||
Selected Performance Ratios: | |||||||||||||||||||
Return on average assets | 1.42 | % | 1.40 | % | 1.57 | % | 1.61 | % | 1.20 | % | |||||||||
Return on average shareholders’ equity | 13.33 | 11.42 | 12.67 | 12.89 | 9.73 | ||||||||||||||
Return on average tangible common equity(1) | 18.62 | 15.20 | 16.80 | 17.10 | 13.13 | ||||||||||||||
Average yield on earning assets (FTE)(1) | 3.66 | 3.53 | 3.55 | 3.59 | 3.49 | ||||||||||||||
Average rate on interest bearing liabilities | 0.52 | 0.44 | 0.46 | 0.59 | 0.60 | ||||||||||||||
Net interest margin (FTE)(1) | 3.30 | 3.22 | 3.23 | 3.16 | 3.06 | ||||||||||||||
Net interest spread (FTE)(1) | 3.14 | 3.09 | 3.09 | 3.00 | 2.89 | ||||||||||||||
Average earning assets to average interest bearing liabilities | 144.54 | 141.93 | 141.21 | 138.86 | 137.85 | ||||||||||||||
Noninterest expense to average total assets | 1.79 | 1.75 | 1.72 | 1.75 | 1.73 | ||||||||||||||
Efficiency ratio (FTE)(1) | 47.74 | 48.15 | 47.61 | 47.92 | 50.31 |
(1) Refer to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
Southside Bancshares, Inc.
Consolidated Financial Highlights (Unaudited)
(Dollars in thousands)
Three Months Ended | |||||||||||||||||||
2022 | 2021 | ||||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | |||||||||||||||
Nonperforming Assets: | $ | 11,815 | $ | 11,455 | $ | 11,609 | $ | 12,424 | $ | 15,269 | |||||||||
Nonaccrual loans | 3,119 | 2,357 | 2,536 | 3,013 | 5,154 | ||||||||||||||
Accruing loans past due more than 90 days | — | — | — | — | — | ||||||||||||||
Troubled debt restructured loans | 8,568 | 9,098 | 9,073 | 9,371 | 9,549 | ||||||||||||||
Other real estate owned | 128 | — | — | 25 | 566 | ||||||||||||||
Repossessed assets | — | — | — | 15 | — | ||||||||||||||
Asset Quality Ratios: | |||||||||||||||||||
Ratio of nonaccruing loans to: | |||||||||||||||||||
Total loans | 0.08 | % | 0.06 | % | 0.07 | % | 0.08 | % | 0.14 | % | |||||||||
Ratio of nonperforming assets to: | |||||||||||||||||||
Total assets | 0.16 | 0.16 | 0.16 | 0.17 | 0.21 | ||||||||||||||
Total loans | 0.30 | 0.30 | 0.32 | 0.34 | 0.42 | ||||||||||||||
Total loans and OREO | 0.30 | 0.30 | 0.32 | 0.34 | 0.42 | ||||||||||||||
Total loans, excluding PPP loans, and OREO | 0.30 | 0.30 | 0.32 | 0.35 | 0.43 | ||||||||||||||
Ratio of allowance for loan losses to: | |||||||||||||||||||
Nonaccruing loans | 1,136.55 | 1,507.17 | 1,390.89 | 1,261.93 | 832.62 | ||||||||||||||
Nonperforming assets | 300.03 | 310.12 | 303.84 | 306.04 | 281.05 | ||||||||||||||
Total loans | 0.89 | 0.93 | 0.97 | 1.04 | 1.18 | ||||||||||||||
Total loans, excluding PPP loans | 0.90 | 0.94 | 0.98 | 1.06 | 1.22 | ||||||||||||||
Net charge-offs (recoveries) to average loans outstanding | — | — | — | 0.05 | 0.01 | ||||||||||||||
Capital Ratios: | |||||||||||||||||||
Shareholders’ equity to total assets | 9.62 | 11.02 | 12.57 | 12.30 | 12.45 | ||||||||||||||
Common equity tier 1 capital | 12.83 | 13.67 | 14.17 | 14.07 | 14.38 | ||||||||||||||
Tier 1 risk-based capital | 13.94 | 14.86 | 15.43 | 15.35 | 15.71 | ||||||||||||||
Total risk-based capital | 16.38 | 17.50 | 18.15 | 18.18 | 20.95 | ||||||||||||||
Tier 1 leverage capital | 10.34 | 10.39 | 10.33 | 10.14 | 10.21 | ||||||||||||||
Period end tangible equity to period end tangible assets(1) | 7.10 | 8.35 | 9.99 | 9.66 | 9.82 | ||||||||||||||
Average shareholders’ equity to average total assets | 10.64 | 12.28 | 12.42 | 12.51 | 12.38 |
(1) Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
Southside Bancshares, Inc.
Consolidated Financial Highlights (Unaudited)
(Dollars in thousands)
Three Months Ended | |||||||||||||||||||
2022 | 2021 | ||||||||||||||||||
Loan Portfolio Composition | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | ||||||||||||||
Real Estate Loans: | |||||||||||||||||||
Construction | $ | 520,484 | $ | 490,166 | $ | 447,860 | $ | 422,095 | $ | 528,157 | |||||||||
1-4 Family Residential | 640,706 | 647,837 | 651,140 | 660,689 | 678,402 | ||||||||||||||
Commercial | 1,834,734 | 1,722,577 | 1,598,172 | 1,605,132 | 1,430,900 | ||||||||||||||
Commercial Loans | 428,974 | 401,144 | 418,998 | 443,708 | 497,513 | ||||||||||||||
Municipal Loans | 457,239 | 455,155 | 443,078 | 427,259 | 417,398 | ||||||||||||||
Loans to Individuals | 80,904 | 84,037 | 85,914 | 88,702 | 89,976 | ||||||||||||||
Total Loans | $ | 3,963,041 | $ | 3,800,916 | $ | 3,645,162 | $ | 3,647,585 | $ | 3,642,346 | |||||||||
Summary of Changes in Allowances: | |||||||||||||||||||
Allowance for Loan Losses | |||||||||||||||||||
Balance at beginning of period | $ | 35,524 | $ | 35,273 | $ | 38,022 | $ | 42,913 | $ | 41,454 | |||||||||
Loans charged-off | (479 | ) | (555 | ) | (489 | ) | (940 | ) | (527 | ) | |||||||||
Recoveries of loans charged-off | 516 | 540 | 455 | 437 | 466 | ||||||||||||||
Net loans (charged-off) recovered | 37 | (15 | ) | (34 | ) | (503 | ) | (61 | ) | ||||||||||
Provision for (reversal of) loan losses | (112 | ) | 266 | (2,715 | ) | (4,388 | ) | 1,520 | |||||||||||
Balance at end of period | $ | 35,449 | $ | 35,524 | $ | 35,273 | $ | 38,022 | $ | 42,913 | |||||||||
Allowance for Off-Balance-Sheet Credit Exposures | |||||||||||||||||||
Balance at beginning of period | $ | 2,412 | $ | 2,384 | $ | 3,090 | $ | 3,773 | $ | 3,616 | |||||||||
Provision for (reversal of) off-balance-sheet credit exposures | (521 | ) | 28 | (706 | ) | (683 | ) | 157 | |||||||||||
Balance at end of period | $ | 1,891 | $ | 2,412 | $ | 2,384 | $ | 3,090 | $ | 3,773 | |||||||||
Total Allowance for Credit Losses | $ | 37,340 | $ | 37,936 | $ | 37,657 | $ | 41,112 | $ | 46,686 |
Southside Bancshares, Inc.
Consolidated Financial Highlights (Unaudited)
(Dollars in thousands)
Six Months Ended | |||||||
June 30, | |||||||
2022 | 2021 | ||||||
Income Statement: | |||||||
Total interest income | $ | 110,973 | $ | 106,151 | |||
Total interest expense | 10,989 | 14,201 | |||||
Net interest income | 99,984 | 91,950 | |||||
Provision for (reversal of) credit losses | (339 | ) | (8,472 | ) | |||
Net interest income after provision for (reversal of) credit losses | 100,323 | 100,422 | |||||
Noninterest income | |||||||
Deposit services | 13,124 | 12,734 | |||||
Net gain on sale of securities available for sale | (3,720 | ) | 2,018 | ||||
Gain on sale of loans | 386 | 986 | |||||
Trust fees | 3,014 | 2,879 | |||||
Bank owned life insurance | 1,411 | 1,271 | |||||
Brokerage services | 1,907 | 1,630 | |||||
Other | 3,700 | 3,038 | |||||
Total noninterest income | 19,822 | 24,556 | |||||
Noninterest expense | |||||||
Salaries and employee benefits | 40,298 | 40,048 | |||||
Net occupancy | 7,310 | 7,166 | |||||
Advertising, travel & entertainment | 1,453 | 912 | |||||
ATM expense | 637 | 510 | |||||
Professional fees | 2,074 | 2,031 | |||||
Software and data processing | 3,370 | 2,718 | |||||
Communications | 1,012 | 1,137 | |||||
FDIC insurance | 949 | 889 | |||||
Amortization of intangibles | 1,208 | 1,496 | |||||
Other | 4,990 | 5,026 | |||||
Total noninterest expense | 63,301 | 61,933 | |||||
Income before income tax expense | 56,844 | 63,045 | |||||
Income tax expense | 6,443 | 7,637 | |||||
Net income | $ | 50,401 | $ | 55,408 | |||
Common Share Data: | |||||||
Weighted-average basic shares outstanding | 32,237 | 32,730 | |||||
Weighted-average diluted shares outstanding | 32,394 | 32,860 | |||||
Common shares outstanding end of period | 32,108 | 32,675 | |||||
Earnings per common share | |||||||
Basic | $ | 1.56 | $ | 1.69 | |||
Diluted | 1.56 | 1.69 | |||||
Book value per common share | 22.79 | 27.37 | |||||
Tangible book value per common share(1) | 16.35 | 20.97 | |||||
Cash dividends paid per common share | 0.68 | 0.65 | |||||
Selected Performance Ratios: | |||||||
Return on average assets | 1.41 | % | 1.59 | % | |||
Return on average shareholders’ equity | 12.31 | 12.75 | |||||
Return on average tangible common equity(1) | 16.75 | 17.13 | |||||
Average yield on earning assets (FTE)(1) | 3.60 | 3.58 | |||||
Average rate on interest bearing liabilities | 0.48 | 0.62 | |||||
Net interest margin (FTE)(1) | 3.26 | 3.13 | |||||
Net interest spread (FTE)(1) | 3.12 | 2.96 | |||||
Average earning assets to average interest bearing liabilities | 143.24 | 136.72 | |||||
Noninterest expense to average total assets | 1.77 | 1.78 | |||||
Efficiency ratio (FTE)(1) | 47.94 | 50.38 |
(1) Refer to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
Southside Bancshares, Inc.
Consolidated Financial Highlights (Unaudited)
(Dollars in thousands)
Six Months Ended | |||||||
June 30, | |||||||
2022 | 2021 | ||||||
Nonperforming Assets: | $ | 11,815 | $ | 15,269 | |||
Nonaccrual loans | 3,119 | 5,154 | |||||
Accruing loans past due more than 90 days | — | — | |||||
Troubled debt restructured loans | 8,568 | 9,549 | |||||
Other real estate owned | 128 | 566 | |||||
Repossessed assets | — | — | |||||
Asset Quality Ratios: | |||||||
Ratio of nonaccruing loans to: | |||||||
Total loans | 0.08 | % | 0.14 | % | |||
Ratio of nonperforming assets to: | |||||||
Total assets | 0.16 | 0.21 | |||||
Total loans | 0.30 | 0.42 | |||||
Total loans and OREO | 0.30 | 0.42 | |||||
Total loans, excluding PPP loans, and OREO | 0.30 | 0.43 | |||||
Ratio of allowance for loan losses to: | |||||||
Nonaccruing loans | 1,136.55 | 832.62 | |||||
Nonperforming assets | 300.03 | 281.05 | |||||
Total loans | 0.89 | 1.18 | |||||
Total loans, excluding PPP loans | 0.90 | 1.22 | |||||
Net charge-offs (recoveries) to average loans outstanding | — | 0.01 | |||||
Capital Ratios: | |||||||
Shareholders’ equity to total assets | 9.62 | 12.45 | |||||
Common equity tier 1 capital | 12.83 | 14.38 | |||||
Tier 1 risk-based capital | 13.94 | 15.71 | |||||
Total risk-based capital | 16.38 | 20.95 | |||||
Tier 1 leverage capital | 10.34 | 10.21 | |||||
Period end tangible equity to period end tangible assets(1) | 7.10 | 9.82 | |||||
Average shareholders’ equity to average total assets | 11.47 | 12.47 |
(1) Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
Southside Bancshares, Inc.
Consolidated Financial Highlights (Unaudited)
(Dollars in thousands)
Six Months Ended | |||||||
June 30, | |||||||
Loan Portfolio Composition | 2022 | 2021 | |||||
Real Estate Loans: | |||||||
Construction | $ | 520,484 | $ | 528,157 | |||
1-4 Family Residential | 640,706 | 678,402 | |||||
Commercial | 1,834,734 | 1,430,900 | |||||
Commercial Loans | 428,974 | 497,513 | |||||
Municipal Loans | 457,239 | 417,398 | |||||
Loans to Individuals | 80,904 | 89,976 | |||||
Total Loans | $ | 3,963,041 | $ | 3,642,346 | |||
Summary of Changes in Allowances: | |||||||
Allowance for Loan Losses | |||||||
Balance at beginning of period | $ | 35,273 | $ | 49,006 | |||
Loans charged-off | (1,034 | ) | (1,322 | ) | |||
Recoveries of loans charged-off | 1,056 | 1,088 | |||||
Net loans (charged-off) recovered | 22 | (234 | ) | ||||
Provision for (reversal of) loan losses | 154 | (5,859 | ) | ||||
Balance at end of period | $ | 35,449 | $ | 42,913 | |||
Allowance for Off-Balance-Sheet Credit Exposures | |||||||
Balance at beginning of period | $ | 2,384 | $ | 6,386 | |||
Provision for (reversal of) off-balance-sheet credit exposures | (493 | ) | (2,613 | ) | |||
Balance at end of period | $ | 1,891 | $ | 3,773 | |||
Total Allowance for Credit Losses | $ | 37,340 | $ | 46,686 |
Southside Bancshares, Inc.
Average Balances and Average Yields and Rates (Annualized) (Unaudited)
(Dollars in thousands)
The tables that follow show average earning assets and interest bearing liabilities together with the average yield on the earning assets and the average rate of the interest bearing liabilities for the periods presented. The interest and related yields presented are on a fully taxable-equivalent basis and are therefore non-GAAP measures. See “Non-GAAP Financial Measures” and “Non-GAAP Reconciliation” for more information.
Three Months Ended | |||||||||||||||||||
June 30, 2022 | March 31, 2022 | ||||||||||||||||||
Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | ||||||||||||||
ASSETS | |||||||||||||||||||
Loans(1) | $ | 3,847,614 | $ | 39,088 | 4.07 | % | $ | 3,703,980 | $ | 35,625 | 3.90 | % | |||||||
Loans held for sale | 1,776 | 18 | 4.07 | % | 928 | 8 | 3.50 | % | |||||||||||
Securities: | |||||||||||||||||||
Taxable investment securities(2) | 617,603 | 4,632 | 3.01 | % | 644,706 | 4,608 | 2.90 | % | |||||||||||
Tax-exempt investment securities(2) | 1,653,871 | 13,599 | 3.30 | % | 1,563,185 | 12,683 | 3.29 | % | |||||||||||
Mortgage-backed and related securities(2) | 417,057 | 3,238 | 3.11 | % | 566,941 | 4,017 | 2.87 | % | |||||||||||
Total securities | 2,688,531 | 21,469 | 3.20 | % | 2,774,832 | 21,308 | 3.11 | % | |||||||||||
Federal Home Loan Bank stock, at cost, and equity investments | 17,663 | 77 | 1.75 | % | 20,677 | 113 | 2.22 | % | |||||||||||
Interest earning deposits | 77,894 | 125 | 0.64 | % | 44,642 | 24 | 0.22 | % | |||||||||||
Federal funds sold | 37,343 | 79 | 0.85 | % | 8,651 | 4 | 0.19 | % | |||||||||||
Total earning assets | 6,670,821 | 60,856 | 3.66 | % | 6,553,710 | 57,082 | 3.53 | % | |||||||||||
Cash and due from banks | 100,231 | 107,144 | |||||||||||||||||
Accrued interest and other assets | 446,136 | 607,235 | |||||||||||||||||
Less: Allowance for loan losses | (35,895 | ) | (35,636 | ) | |||||||||||||||
Total assets | $ | 7,181,293 | $ | 7,232,453 | |||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
Savings accounts | $ | 670,187 | 326 | 0.20 | % | $ | 652,394 | 273 | 0.17 | % | |||||||||
Certificates of deposits | 518,104 | 578 | 0.45 | % | 563,599 | 594 | 0.43 | % | |||||||||||
Interest bearing demand accounts | 3,175,385 | 3,360 | 0.42 | % | 3,097,966 | 2,370 | 0.31 | % | |||||||||||
Total interest bearing deposits | 4,363,676 | 4,264 | 0.39 | % | 4,313,959 | 3,237 | 0.30 | % | |||||||||||
Federal Home Loan Bank borrowings | 55,990 | 224 | 1.60 | % | 122,783 | 366 | 1.21 | % | |||||||||||
Subordinated notes, net of unamortized debt issuance costs | 98,586 | 1,000 | 4.07 | % | 98,552 | 998 | 4.11 | % | |||||||||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,262 | 471 | 3.13 | % | 60,261 | 356 | 2.40 | % | |||||||||||
Repurchase agreements | 30,055 | 18 | 0.24 | % | 21,494 | 10 | 0.19 | % | |||||||||||
Other borrowings | 6,549 | 45 | 2.76 | % | 467 | — | — | ||||||||||||
Total interest bearing liabilities | 4,615,118 | 6,022 | 0.52 | % | 4,617,516 | 4,967 | 0.44 | % | |||||||||||
Noninterest bearing deposits | 1,702,985 | 1,642,973 | |||||||||||||||||
Accrued expenses and other liabilities | 98,870 | 84,009 | |||||||||||||||||
Total liabilities | 6,416,973 | 6,344,498 | |||||||||||||||||
Shareholders’ equity | 764,320 | 887,955 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 7,181,293 | $ | 7,232,453 | |||||||||||||||
Net interest income (FTE) | $ | 54,834 | $ | 52,115 | |||||||||||||||
Net interest margin (FTE) | 3.30 | % | 3.22 | % | |||||||||||||||
Net interest spread (FTE) | 3.14 | % | 3.09 | % |
(1) Interest on loans includes net fees on loans that are not material in amount.
(2) For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.
Note: As of June 30, 2022 and March 31, 2022, loans totaling
Southside Bancshares, Inc.
Average Balances and Average Yields and Rates (Annualized) (Unaudited)
(Dollars in thousands)
Three Months Ended | |||||||||||||||||||
December 31, 2021 | September 30, 2021 | ||||||||||||||||||
Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | ||||||||||||||
ASSETS | |||||||||||||||||||
Loans(1) | $ | 3,668,767 | $ | 36,740 | 3.97 | % | $ | 3,662,496 | $ | 37,744 | 4.09 | % | |||||||
Loans held for sale | 1,980 | 11 | 2.20 | % | 1,640 | 12 | 2.90 | % | |||||||||||
Securities: | |||||||||||||||||||
Taxable investment securities(2) | 590,104 | 4,215 | 2.83 | % | 532,679 | 3,853 | 2.87 | % | |||||||||||
Tax-exempt investment securities(2) | 1,508,196 | 12,699 | 3.34 | % | 1,453,275 | 12,315 | 3.36 | % | |||||||||||
Mortgage-backed and related securities(2) | 650,685 | 4,394 | 2.68 | % | 738,287 | 4,405 | 2.37 | % | |||||||||||
Total securities | 2,748,985 | 21,308 | 3.08 | % | 2,724,241 | 20,573 | 3.00 | % | |||||||||||
Federal Home Loan Bank stock, at cost, and equity investments | 38,832 | 175 | 1.79 | % | 39,786 | 111 | 1.11 | % | |||||||||||
Interest earning deposits | 43,841 | 22 | 0.20 | % | 39,382 | 24 | 0.24 | % | |||||||||||
Total earning assets | 6,502,405 | 58,256 | 3.55 | % | 6,467,545 | 58,464 | 3.59 | % | |||||||||||
Cash and due from banks | 103,126 | 99,113 | |||||||||||||||||
Accrued interest and other assets | 662,654 | 684,917 | |||||||||||||||||
Less: Allowance for loan losses | (38,317 | ) | (43,052 | ) | |||||||||||||||
Total assets | $ | 7,229,868 | $ | 7,208,523 | |||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
Savings accounts | $ | 624,377 | 264 | 0.17 | % | $ | 598,118 | 249 | 0.17 | % | |||||||||
Certificates of deposit | 632,150 | 681 | 0.43 | % | 629,718 | 789 | 0.50 | % | |||||||||||
Interest bearing demand accounts | 2,558,289 | 1,289 | 0.20 | % | 2,496,037 | 1,196 | 0.19 | % | |||||||||||
Total interest bearing deposits | 3,814,816 | 2,234 | 0.23 | % | 3,723,873 | 2,234 | 0.24 | % | |||||||||||
Federal Home Loan Bank borrowings | 609,310 | 1,758 | 1.14 | % | 656,474 | 1,865 | 1.13 | % | |||||||||||
Subordinated notes, net of unamortized debt issuance costs | 98,517 | 1,011 | 4.07 | % | 195,204 | 2,417 | 4.91 | % | |||||||||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,259 | 345 | 2.27 | % | 60,258 | 345 | 2.27 | % | |||||||||||
Repurchase agreements | 21,874 | 11 | 0.20 | % | 21,634 | 9 | 0.17 | % | |||||||||||
Total interest bearing liabilities | 4,604,776 | 5,359 | 0.46 | % | 4,657,443 | 6,870 | 0.59 | % | |||||||||||
Noninterest bearing deposits | 1,637,914 | 1,551,298 | |||||||||||||||||
Accrued expenses and other liabilities | 88,982 | 97,954 | |||||||||||||||||
Total liabilities | 6,331,672 | 6,306,695 | |||||||||||||||||
Shareholders’ equity | 898,196 | 901,828 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 7,229,868 | $ | 7,208,523 | |||||||||||||||
Net interest income (FTE) | $ | 52,897 | $ | 51,594 | |||||||||||||||
Net interest margin (FTE) | 3.23 | % | 3.16 | % | |||||||||||||||
Net interest spread (FTE) | 3.09 | % | 3.00 | % |
(1) Interest on loans includes net fees on loans that are not material in amount.
(2) For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.
Note: As of December 31, 2021 and September 30, 2021, loans totaling
Southside Bancshares, Inc.
Average Balances and Average Yields and Rates (Annualized) (Unaudited)
(Dollars in thousands)
Three Months Ended | |||||||||
June 30, 2021 | |||||||||
Average Balance | Interest | Average Yield/Rate | |||||||
ASSETS | |||||||||
Loans(1) | $ | 3,706,959 | $ | 36,429 | 3.94 | % | |||
Loans held for sale | 1,846 | 13 | 2.82 | % | |||||
Securities: | |||||||||
Taxable investment securities(2) | 396,504 | 2,921 | 2.95 | % | |||||
Tax-exempt investment securities(2) | 1,363,678 | 11,585 | 3.41 | % | |||||
Mortgage-backed and related securities(2) | 847,206 | 4,647 | 2.20 | % | |||||
Total securities | 2,607,388 | 19,153 | 2.95 | % | |||||
Federal Home Loan Bank stock, at cost, and equity investments | 35,883 | 108 | 1.21 | % | |||||
Interest earning deposits | 43,175 | 17 | 0.16 | % | |||||
Total earning assets | 6,395,251 | 55,720 | 3.49 | % | |||||
Cash and due from banks | 90,735 | ||||||||
Accrued interest and other assets | 656,245 | ||||||||
Less: Allowance for loan losses | (41,768 | ) | |||||||
Total assets | $ | 7,100,463 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||
Savings accounts | $ | 571,907 | 231 | 0.16 | % | ||||
Certificates of deposit | 658,708 | 936 | 0.57 | % | |||||
Interest bearing demand accounts | 2,459,335 | 1,172 | 0.19 | % | |||||
Total interest bearing deposits | 3,689,950 | 2,339 | 0.25 | % | |||||
Federal Home Loan Bank borrowings | 669,633 | 1,817 | 1.09 | % | |||||
Subordinated notes, net of unamortized debt issuance costs | 197,284 | 2,423 | 4.93 | % | |||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,257 | 349 | 2.32 | % | |||||
Repurchase agreements | 22,024 | 11 | 0.20 | % | |||||
Total interest bearing liabilities | 4,639,148 | 6,939 | 0.60 | % | |||||
Noninterest bearing deposits | 1,485,383 | ||||||||
Accrued expenses and other liabilities | 97,137 | ||||||||
Total liabilities | 6,221,668 | ||||||||
Shareholders’ equity | 878,795 | ||||||||
Total liabilities and shareholders’ equity | $ | 7,100,463 | |||||||
Net interest income (FTE) | $ | 48,781 | |||||||
Net interest margin (FTE) | 3.06 | % | |||||||
Net interest spread (FTE) | 2.89 | % |
(1) Interest on loans includes net fees on loans that are not material in amount.
(2) For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.
Note: As of June 30, 2021, loans totaling
Southside Bancshares, Inc.
Average Balances and Average Yields and Rates (Annualized) (Unaudited)
(Dollars in thousands)
Six Months Ended | |||||||||||||||||||
June 30, 2022 | June 30, 2021 | ||||||||||||||||||
Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | ||||||||||||||
ASSETS | |||||||||||||||||||
Loans(1) | $ | 3,776,194 | $ | 74,713 | 3.99 | % | $ | 3,670,708 | $ | 73,183 | 4.02 | % | |||||||
Loans held for sale | 1,354 | 26 | 3.87 | % | 2,321 | 33 | 2.87 | % | |||||||||||
Securities: | |||||||||||||||||||
Taxable investment securities(2) | 631,079 | 9,240 | 2.95 | % | 346,514 | 5,244 | 3.05 | % | |||||||||||
Tax-exempt investment securities(2) | 1,608,779 | 26,282 | 3.29 | % | 1,332,507 | 22,761 | 3.44 | % | |||||||||||
Mortgage-backed and related securities(2) | 491,585 | 7,255 | 2.98 | % | 893,752 | 10,735 | 2.42 | % | |||||||||||
Total securities | 2,731,443 | 42,777 | 3.16 | % | 2,572,773 | 38,740 | 3.04 | % | |||||||||||
Federal Home Loan Bank stock, at cost, and equity investments | 19,161 | 190 | 2.00 | % | 35,760 | 244 | 1.38 | % | |||||||||||
Interest earning deposits | 61,360 | 149 | 0.49 | % | 37,205 | 32 | 0.17 | % | |||||||||||
Federal funds sold | 23,077 | 83 | 0.73 | % | — | — | — | ||||||||||||
Total earning assets | 6,612,589 | 117,938 | 3.60 | % | 6,318,767 | 112,232 | 3.58 | % | |||||||||||
Cash and due from banks | 103,669 | 88,696 | |||||||||||||||||
Accrued interest and other assets | 522,167 | 666,280 | |||||||||||||||||
Less: Allowance for loan losses | (35,766 | ) | (45,483 | ) | |||||||||||||||
Total assets | $ | 7,202,659 | $ | 7,028,260 | |||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
Savings accounts | $ | 661,339 | 599 | 0.18 | % | $ | 544,696 | 440 | 0.16 | % | |||||||||
Certificates of deposit | 540,726 | 1,172 | 0.44 | % | 697,190 | 2,165 | 0.63 | % | |||||||||||
Interest bearing demand accounts | 3,136,890 | 5,730 | 0.37 | % | 2,401,140 | 2,331 | 0.20 | % | |||||||||||
Total interest bearing deposits | 4,338,955 | 7,501 | 0.35 | % | 3,643,026 | 4,936 | 0.27 | % | |||||||||||
Federal Home Loan Bank borrowings | 89,202 | 590 | 1.33 | % | 698,413 | 3,725 | 1.08 | % | |||||||||||
Subordinated notes, net of unamortized debt issuance costs | 98,569 | 1,998 | 4.09 | % | 197,268 | 4,818 | 4.93 | % | |||||||||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,261 | 827 | 2.77 | % | 60,256 | 700 | 2.34 | % | |||||||||||
Repurchase agreements | 25,798 | 28 | 0.22 | % | 22,769 | 22 | 0.19 | % | |||||||||||
Other borrowings | 3,525 | 45 | 2.57 | % | — | — | — | ||||||||||||
Total interest bearing liabilities | 4,616,310 | 10,989 | 0.48 | % | 4,621,732 | 14,201 | 0.62 | % | |||||||||||
Noninterest bearing deposits | 1,673,145 | 1,437,468 | |||||||||||||||||
Accrued expenses and other liabilities | 87,408 | 92,802 | |||||||||||||||||
Total liabilities | 6,376,863 | 6,152,002 | |||||||||||||||||
Shareholders’ equity | 825,796 | 876,258 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 7,202,659 | $ | 7,028,260 | |||||||||||||||
Net interest income (FTE) | $ | 106,949 | $ | 98,031 | |||||||||||||||
Net interest margin (FTE) | 3.26 | % | 3.13 | % | |||||||||||||||
Net interest spread (FTE) | 3.12 | % | 2.96 | % |
(1) Interest on loans includes net fees on loans that are not material in amount.
(2) For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.
Note: As of June 30, 2022 and 2021, loans totaling
Southside Bancshares, Inc.
Non-GAAP Reconciliation (Unaudited)
(Dollars and shares in thousands, except per share data)
The following tables set forth the reconciliation of return on average common equity to return on average tangible common equity, book value per share to tangible book value per share, net interest income to net interest income adjusted to a fully taxable-equivalent basis assuming a
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Jun 30, | Jun 30, | ||||||||||||||||||||||
Reconciliation of return on average common equity to return on average tangible common equity: | ||||||||||||||||||||||||||||
Net income | $ | 25,405 | $ | 24,996 | $ | 28,687 | $ | 29,306 | $ | 21,317 | $ | 50,401 | $ | 55,408 | ||||||||||||||
After-tax amortization expense | 463 | 491 | 520 | 549 | 577 | 954 | 1,182 | |||||||||||||||||||||
Adjusted net income available to common shareholders | $ | 25,868 | $ | 25,487 | $ | 29,207 | $ | 29,855 | $ | 21,894 | $ | 51,355 | $ | 56,590 | ||||||||||||||
Average shareholders' equity | $ | 764,320 | $ | 887,955 | $ | 898,196 | $ | 901,828 | $ | 878,795 | $ | 825,796 | $ | 876,258 | ||||||||||||||
Less: Average intangibles for the period | (207,163 | ) | (207,774 | ) | (208,412 | ) | (209,097 | ) | (209,808 | ) | (207,467 | ) | (210,183 | ) | ||||||||||||||
Average tangible shareholders' equity | $ | 557,157 | $ | 680,181 | $ | 689,784 | $ | 692,731 | $ | 668,987 | $ | 618,329 | $ | 666,075 | ||||||||||||||
Return on average tangible common equity | 18.62 | % | 15.20 | % | 16.80 | % | 17.10 | % | 13.13 | % | 16.75 | % | 17.13 | % | ||||||||||||||
Reconciliation of book value per share to tangible book value per share: | ||||||||||||||||||||||||||||
Common equity at end of period | $ | 731,782 | $ | 784,241 | $ | 912,172 | $ | 877,866 | $ | 894,400 | $ | 731,782 | $ | 894,400 | ||||||||||||||
Less: Intangible assets at end of period | (206,803 | ) | (207,389 | ) | (208,011 | ) | (208,669 | ) | (209,364 | ) | (206,803 | ) | (209,364 | ) | ||||||||||||||
Tangible common shareholders' equity at end of period | $ | 524,979 | $ | 576,852 | $ | 704,161 | $ | 669,197 | $ | 685,036 | $ | 524,979 | $ | 685,036 | ||||||||||||||
Total assets at end of period | $ | 7,606,061 | $ | 7,119,115 | $ | 7,259,602 | $ | 7,135,691 | $ | 7,182,408 | $ | 7,606,061 | $ | 7,182,408 | ||||||||||||||
Less: Intangible assets at end of period | (206,803 | ) | (207,389 | ) | (208,011 | ) | (208,669 | ) | (209,364 | ) | (206,803 | ) | (209,364 | ) | ||||||||||||||
Tangible assets at end of period | $ | 7,399,258 | $ | 6,911,726 | $ | 7,051,591 | $ | 6,927,022 | $ | 6,973,044 | $ | 7,399,258 | $ | 6,973,044 | ||||||||||||||
Period end tangible equity to period end tangible assets | 7.10 | % | 8.35 | % | 9.99 | % | 9.66 | % | 9.82 | % | 7.10 | % | 9.82 | % | ||||||||||||||
Common shares outstanding end of period | 32,108 | 32,294 | 32,352 | 32,273 | 32,675 | 32,108 | 32,675 | |||||||||||||||||||||
Tangible book value per common share | $ | 16.35 | $ | 17.86 | $ | 21.77 | $ | 20.74 | $ | 20.97 | $ | 16.35 | $ | 20.97 | ||||||||||||||
Reconciliation of efficiency ratio to efficiency ratio (FTE), net interest margin to net interest margin (FTE) and net interest spread to net interest spread (FTE): | ||||||||||||||||||||||||||||
Net interest income (GAAP) | $ | 51,078 | $ | 48,906 | $ | 49,401 | $ | 48,206 | $ | 45,647 | $ | 99,984 | $ | 91,950 | ||||||||||||||
Tax equivalent adjustments: | ||||||||||||||||||||||||||||
Loans | 762 | 745 | 740 | 722 | 722 | 1,507 | 1,458 | |||||||||||||||||||||
Tax-exempt investment securities | 2,994 | 2,464 | 2,756 | 2,666 | 2,412 | 5,458 | 4,623 | |||||||||||||||||||||
Net interest income (FTE) (1) | 54,834 | 52,115 | 52,897 | 51,594 | 48,781 | 106,949 | 98,031 | |||||||||||||||||||||
Noninterest income | 9,097 | 10,725 | 12,011 | 12,769 | 10,933 | 19,822 | 24,556 | |||||||||||||||||||||
Nonrecurring income (2) | 2,177 | 706 | (463 | ) | (1,381 | ) | (15 | ) | 2,883 | (2,018 | ) | |||||||||||||||||
Total revenue | $ | 66,108 | $ | 63,546 | $ | 64,445 | $ | 62,982 | $ | 59,699 | $ | 129,654 | $ | 120,569 | ||||||||||||||
Noninterest expense | $ | 32,106 | $ | 31,195 | $ | 31,334 | $ | 31,763 | $ | 30,699 | $ | 63,301 | $ | 61,933 | ||||||||||||||
Pre-tax amortization expense | (586 | ) | (622 | ) | (658 | ) | (695 | ) | (730 | ) | (1,208 | ) | (1,496 | ) | ||||||||||||||
Nonrecurring expense (3) | 39 | 22 | 8 | (888 | ) | 64 | 61 | 300 | ||||||||||||||||||||
Adjusted noninterest expense | $ | 31,559 | $ | 30,595 | $ | 30,684 | $ | 30,180 | $ | 30,033 | $ | 62,154 | $ | 60,737 | ||||||||||||||
Efficiency ratio | 50.61 | % | 50.71 | % | 50.34 | % | 50.64 | % | 53.09 | % | 50.66 | % | 53.05 | % | ||||||||||||||
Efficiency ratio (FTE) (1) | 47.74 | % | 48.15 | % | 47.61 | % | 47.92 | % | 50.31 | % | 47.94 | % | 50.38 | % | ||||||||||||||
Average earning assets | $ | 6,670,821 | $ | 6,553,710 | $ | 6,502,405 | $ | 6,467,545 | $ | 6,395,251 | $ | 6,612,589 | $ | 6,318,767 | ||||||||||||||
Net interest margin | 3.07 | % | 3.03 | % | 3.01 | % | 2.96 | % | 2.86 | % | 3.05 | % | 2.93 | % | ||||||||||||||
Net interest margin (FTE) (1) | 3.30 | % | 3.22 | % | 3.23 | % | 3.16 | % | 3.06 | % | 3.26 | % | 3.13 | % | ||||||||||||||
Net interest spread | 2.91 | % | 2.89 | % | 2.88 | % | 2.79 | % | 2.70 | % | 2.90 | % | 2.77 | % | ||||||||||||||
Net interest spread (FTE) (1) | 3.14 | % | 3.09 | % | 3.09 | % | 3.00 | % | 2.89 | % | 3.12 | % | 2.96 | % |
(1) These amounts are presented on a fully taxable-equivalent basis and are non-GAAP measures.
(2) These adjustments may include net gain or loss on sale of securities available for sale and other investment income or loss in the periods where applicable.
(3) These adjustments may include loss on redemption of subordinated notes, foreclosure expenses and branch closure expenses, in the periods where applicable.
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