Southside Bancshares, Inc. Announces Financial Results for the Third Quarter Ended September 30, 2024
Southside Bancshares reported strong Q3 2024 financial results with net income of $20.5 million, an 11.2% increase from Q3 2023. Earnings per diluted share rose to $0.68, up 13.3% year-over-year. The company achieved a net interest margin of 2.95% and return on average tangible equity of 13.69%. Net interest income increased by $2.2 million to $55.5 million. Asset quality remained strong with nonperforming assets at just 0.09% of total assets. Total assets reached $8.36 billion, with loans at $4.58 billion and deposits at $6.44 billion. The company declared a quarterly cash dividend of $0.36 per share.
Southside Bancshares ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con un utile netto di 20,5 milioni di dollari, un aumento dell'11,2% rispetto al terzo trimestre del 2023. L'utile per azione diluita è salito a 0,68 dollari, in crescita del 13,3% su base annua. L'azienda ha raggiunto un margine di interesse netto del 2,95% e un ritorno sul capitale tangibile medio del 13,69%. Il reddito da interessi netti è aumentato di 2,2 milioni di dollari, arrivando a 55,5 milioni di dollari. La qualità degli attivi è rimasta solida, con attivi non performanti che rappresentano appena lo 0,09% del totale degli attivi. Gli attivi totali hanno raggiunto 8,36 miliardi di dollari, con prestiti per 4,58 miliardi di dollari e depositi per 6,44 miliardi di dollari. L'azienda ha dichiarato un dividendo in contante trimestrale di 0,36 dollari per azione.
Southside Bancshares informó resultados financieros sólidos en el tercer trimestre de 2024, con un ingreso neto de 20.5 millones de dólares, un aumento del 11.2% en comparación con el tercer trimestre de 2023. Las ganancias por acción diluidas aumentaron a 0.68 dólares, un incremento del 13.3% interanual. La empresa alcanzó un margen de interés neto del 2.95% y un retorno sobre el capital tangible promedio del 13.69%. Los ingresos por intereses netos crecieron en 2.2 millones de dólares, llegando a 55.5 millones de dólares. La calidad de los activos se mantuvo fuerte, con activos no rentables representando solo el 0.09% del total de activos. Los activos totales alcanzaron los 8.36 mil millones de dólares, con préstamos por 4.58 mil millones de dólares y depósitos por 6.44 mil millones de dólares. La empresa declaró un dividendo en efectivo trimestral de 0.36 dólares por acción.
Southside Bancshares는 2024년 3분기 경영 실적이 강력하다고 보고하며, 순이익은 2050만 달러로, 2023년 3분기 대비 11.2% 증가했다고 발표했습니다. 희석 주당 순이익은 0.68 달러로, 전년 대비 13.3% 상승했습니다. 회사는 2.95%의 순이자 마진과 13.69%의 평균 실질 자본 수익률을 달성했습니다. 순이자 수익은 220만 달러 늘어 5550만 달러에 도달했습니다. 자산 품질은 여전히 견고하며, 부실 자산은 총 자산의 0.09%에 불과합니다. 총 자산은 83억 6000만 달러에 달하며, 대출금은 45억 8000만 달러, 예금은 64억 4000만 달러입니다. 회사는 주당 0.36 달러의 분기 현금 배당금을 선언했습니다.
Southside Bancshares a annoncé des résultats financiers solides pour le troisième trimestre 2024, avec un revenu net de 20,5 millions de dollars, soit une augmentation de 11,2 % par rapport au troisième trimestre 2023. Le bénéfice par action diluée a augmenté à 0,68 dollar, en hausse de 13,3 % d'une année sur l'autre. L'entreprise a atteint une marge d'intérêt nette de 2,95 % et un retour sur le capital tangible moyen de 13,69 %. Le revenu d'intérêts nets a augmenté de 2,2 millions de dollars pour atteindre 55,5 millions de dollars. La qualité des actifs est restée solide, avec des actifs non performants représentant seulement 0,09 % du total des actifs. Le total des actifs a atteint 8,36 milliards de dollars, avec des prêts de 4,58 milliards de dollars et des dépôts de 6,44 milliards de dollars. L'entreprise a déclaré un dividende en espèces trimestriel de 0,36 dollar par action.
Southside Bancshares berichtete über starke Finanzergebnisse im 3. Quartal 2024 mit einem Nettogewinn von 20,5 Millionen Dollar, was einem Anstieg von 11,2 % im Vergleich zum 3. Quartal 2023 entspricht. Der Gewinn pro verwässerter Aktie stieg auf 0,68 Dollar, was einem Anstieg von 13,3 % im Vergleich zum Vorjahr entspricht. Das Unternehmen erreichte eine Nettozinsmarge von 2,95 % und eine Rendite auf das durchschnittlich einbehaltene Eigenkapital von 13,69 %. Die Zinserträge erhöhten sich um 2,2 Millionen Dollar auf 55,5 Millionen Dollar. Die Vermögensqualität blieb stark, mit notleidenden Krediten, die nur 0,09 % der Gesamtaktiva ausmachten. Die Gesamtsumme der Aktiva erreichte 8,36 Milliarden Dollar, wobei die Kredite 4,58 Milliarden Dollar und die Einlagen 6,44 Milliarden Dollar betrugen. Das Unternehmen erklärte eine vierteljährliche Bar-Dividende von 0,36 Dollar pro Aktie.
- Net income increased 11.2% YoY to $20.5 million
- Earnings per share grew 13.3% to $0.68
- Net interest income rose 4.1% to $55.5 million
- Return on average tangible equity reached 13.69%
- Total loans increased 3.6% YoY to $4.58 billion
- Noninterest income decreased 24.6% YoY to $8.2 million
- $1.9 million loss on sale of securities
- $868,000 impairment charge on municipal securities
- Nonperforming assets increased 74.8% YoY to $7.7 million
- Linked quarter deposits decreased 0.9% to $6.44 billion
Insights
The Q3 2024 results show solid performance with
Asset quality remains strong with nonperforming assets at just
Strategic portfolio management was evident with the sale of lower-yielding securities and reinvestment in higher-yielding assets, though this resulted in a
- Third quarter net income of
$20.5 million ; - Third quarter earnings per diluted common share of
$0.68 ; - Annualized return on third quarter average assets of
0.98% ; - Annualized return on third quarter average tangible common equity of
13.69% (1); and - Nonperforming assets remain low at
0.09% of total assets.
TYLER, Texas, Oct. 24, 2024 (GLOBE NEWSWIRE) -- Southside Bancshares, Inc. (“Southside” or the “Company”) (NASDAQ: SBSI) today reported its financial results for the quarter ended September 30, 2024. Southside reported net income of
“Third quarter financial results were highlighted by a linked quarter
Operating Results for the Three Months Ended September 30, 2024
Net income was
Net interest income for the three months ended September 30, 2024 was
Our net interest margin and tax-equivalent net interest margin(1) decreased to
Noninterest income was
Noninterest expense increased
Income tax expense increased
Operating Results for the Nine Months Ended September 30, 2024
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 increased
Balance Sheet Data
At September 30, 2024, Southside had
Loans at September 30, 2024 were
Securities at September 30, 2024 were
Deposits at September 30, 2024 were
At September 30, 2024, we had 179,214 total deposit accounts with an average balance of
Our cost of interest bearing deposits increased 83 basis points, from
Capital Resources and Liquidity
Our capital ratios and contingent liquidity sources remain solid. During the third quarter ended September 30, 2024, we did not purchase any common stock pursuant to our Stock Repurchase Plan. Under this plan, repurchases of our outstanding common stock 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 Securities Exchange Act of 1934, as amended. The Company has no obligation to repurchase any shares under the Stock Repurchase Plan and may modify, suspend or discontinue the plan at any time. We have not purchased any common stock pursuant to the Stock Repurchase Plan subsequent to September 30, 2024.
As of September 30, 2024, our total available contingent liquidity, net of current outstanding borrowings, was
Asset Quality
Nonperforming assets at September 30, 2024 were
The allowance for loan losses totaled
For the three months ended September 30, 2024, we recorded a provision for credit losses for loans of
We recorded a provision for credit losses on off-balance-sheet credit exposures of
Dividend
Southside Bancshares, Inc. declared a third 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 third quarter ended September 30, 2024 financial results on Thursday, October 24, 2024 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, under Events.
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/BIe280e5ecbf444a68a5836f1e27caa8a9 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 email notification of company news, events and stock activity, please register on the website under Resources and Investor Email Alerts. 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, 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 and our expectations regarding rate increases, tax reform, inflation, the impacts related to or resulting from 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 higher inflation levels, interest rate fluctuations and general economic and recessionary concerns, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations, our ability to manage liquidity in a rapidly changing and unpredictable market, labor shortages and changes in interest rates by the Federal Reserve.
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, 2023, under “Part I - Item 1. Forward Looking Information” and “Part I - Item 1A. Risk Factors” 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 | |||||||||||||||||||
2024 | 2023 | ||||||||||||||||||
Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and due from banks | $ | 130,147 | $ | 114,283 | $ | 96,744 | $ | 122,021 | $ | 105,601 | |||||||||
Interest earning deposits | 333,825 | 272,469 | 307,257 | 391,719 | 106,094 | ||||||||||||||
Federal funds sold | 22,325 | 65,244 | 65,372 | 46,770 | 114,128 | ||||||||||||||
Securities available for sale, at estimated fair value | 1,408,437 | 1,405,944 | 1,405,221 | 1,296,294 | 1,335,560 | ||||||||||||||
Securities held to maturity, at net carrying value | 1,288,403 | 1,305,975 | 1,306,898 | 1,307,053 | 1,307,886 | ||||||||||||||
Total securities | 2,696,840 | 2,711,919 | 2,712,119 | 2,603,347 | 2,643,446 | ||||||||||||||
Federal Home Loan Bank stock, at cost | 40,291 | 32,991 | 27,958 | 11,936 | 12,778 | ||||||||||||||
Loans held for sale | 768 | 1,352 | 756 | 10,894 | 1,382 | ||||||||||||||
Loans | 4,578,048 | 4,589,365 | 4,577,368 | 4,524,510 | 4,420,633 | ||||||||||||||
Less: Allowance for loan losses | (44,276 | ) | (42,407 | ) | (43,557 | ) | (42,674 | ) | (41,760 | ) | |||||||||
Net loans | 4,533,772 | 4,546,958 | 4,533,811 | 4,481,836 | 4,378,873 | ||||||||||||||
Premises & equipment, net | 138,811 | 138,489 | 139,491 | 138,950 | 139,473 | ||||||||||||||
Goodwill | 201,116 | 201,116 | 201,116 | 201,116 | 201,116 | ||||||||||||||
Other intangible assets, net | 2,003 | 2,281 | 2,588 | 2,925 | 3,295 | ||||||||||||||
Bank owned life insurance | 137,489 | 136,903 | 136,604 | 136,330 | 135,737 | ||||||||||||||
Other assets | 124,876 | 133,697 | 130,047 | 137,070 | 130,545 | ||||||||||||||
Total assets | $ | 8,362,263 | $ | 8,357,702 | $ | 8,353,863 | $ | 8,284,914 | $ | 7,972,468 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||
Noninterest bearing deposits | $ | 1,377,022 | $ | 1,366,924 | $ | 1,358,827 | $ | 1,390,407 | $ | 1,431,285 | |||||||||
Interest bearing deposits | 5,058,680 | 5,129,008 | 5,186,933 | 5,159,274 | 4,918,286 | ||||||||||||||
Total deposits | 6,435,702 | 6,495,932 | 6,545,760 | 6,549,681 | 6,349,571 | ||||||||||||||
Other borrowings and Federal Home Loan Bank borrowings | 865,856 | 763,700 | 770,151 | 722,468 | 608,038 | ||||||||||||||
Subordinated notes, net of unamortized debt issuance costs | 92,006 | 91,970 | 93,913 | 93,877 | 93,838 | ||||||||||||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,273 | 60,272 | 60,271 | 60,270 | 60,269 | ||||||||||||||
Other liabilities | 103,172 | 144,858 | 95,846 | 85,330 | 132,157 | ||||||||||||||
Total liabilities | 7,557,009 | 7,556,732 | 7,565,941 | 7,511,626 | 7,243,873 | ||||||||||||||
Shareholders' equity | 805,254 | 800,970 | 787,922 | 773,288 | 728,595 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 8,362,263 | $ | 8,357,702 | $ | 8,353,863 | $ | 8,284,914 | $ | 7,972,468 |
Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars and shares in thousands, except per share data) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
2024 | 2023 | ||||||||||||||||||
Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | |||||||||||||||
Income Statement: | |||||||||||||||||||
Total interest income | $ | 105,703 | $ | 104,186 | $ | 102,758 | $ | 98,939 | $ | 93,078 | |||||||||
Total interest expense | 50,239 | 50,578 | 49,410 | 44,454 | 39,805 | ||||||||||||||
Net interest income | 55,464 | 53,608 | 53,348 | 54,485 | 53,273 | ||||||||||||||
Provision for (reversal of) credit losses | 2,389 | (485 | ) | 58 | 2,281 | 6,987 | |||||||||||||
Net interest income after provision for (reversal of) credit losses | 53,075 | 54,093 | 53,290 | 52,204 | 46,286 | ||||||||||||||
Noninterest income | |||||||||||||||||||
Deposit services | 6,199 | 6,157 | 5,985 | 6,305 | 6,479 | ||||||||||||||
Net gain (loss) on sale of securities available for sale | (1,929 | ) | (563 | ) | (18 | ) | (10,386 | ) | 11 | ||||||||||
Gain (loss) on sale of loans | 115 | 220 | (436 | ) | 178 | 96 | |||||||||||||
Trust fees | 1,628 | 1,456 | 1,336 | 1,431 | 1,522 | ||||||||||||||
Bank owned life insurance | 857 | 1,767 | 784 | 2,602 | 790 | ||||||||||||||
Brokerage services | 1,068 | 1,081 | 1,014 | 944 | 760 | ||||||||||||||
Other | 233 | 1,439 | 1,059 | 1,427 | 1,178 | ||||||||||||||
Total noninterest income | 8,171 | 11,557 | 9,724 | 2,501 | 10,836 | ||||||||||||||
Noninterest expense | |||||||||||||||||||
Salaries and employee benefits | 22,233 | 21,984 | 23,113 | 21,152 | 21,241 | ||||||||||||||
Net occupancy | 3,613 | 3,750 | 3,362 | 3,474 | 3,796 | ||||||||||||||
Advertising, travel & entertainment | 734 | 795 | 950 | 1,127 | 1,062 | ||||||||||||||
ATM expense | 412 | 368 | 325 | 318 | 358 | ||||||||||||||
Professional fees | 1,206 | 1,075 | 1,154 | 1,315 | 1,472 | ||||||||||||||
Software and data processing | 2,951 | 2,860 | 2,856 | 2,644 | 2,432 | ||||||||||||||
Communications | 423 | 410 | 449 | 435 | 359 | ||||||||||||||
FDIC insurance | 939 | 977 | 943 | 892 | 902 | ||||||||||||||
Amortization of intangibles | 278 | 307 | 337 | 370 | 407 | ||||||||||||||
Other | 3,543 | 3,239 | 3,392 | 3,456 | 3,524 | ||||||||||||||
Total noninterest expense | 36,332 | 35,765 | 36,881 | 35,183 | 35,553 | ||||||||||||||
Income before income tax expense | 24,914 | 29,885 | 26,133 | 19,522 | 21,569 | ||||||||||||||
Income tax expense | 4,390 | 5,212 | 4,622 | 2,206 | 3,120 | ||||||||||||||
Net income | $ | 20,524 | $ | 24,673 | $ | 21,511 | $ | 17,316 | $ | 18,449 | |||||||||
Common Share Data: | |||||||||||||||||||
Weighted-average basic shares outstanding | 30,286 | 30,280 | 30,262 | 30,235 | 30,502 | ||||||||||||||
Weighted-average diluted shares outstanding | 30,370 | 30,312 | 30,305 | 30,276 | 30,543 | ||||||||||||||
Common shares outstanding end of period | 30,308 | 30,261 | 30,284 | 30,249 | 30,338 | ||||||||||||||
Earnings per common share | |||||||||||||||||||
Basic | $ | 0.68 | $ | 0.81 | $ | 0.71 | $ | 0.57 | $ | 0.60 | |||||||||
Diluted | 0.68 | 0.81 | 0.71 | 0.57 | 0.60 | ||||||||||||||
Book value per common share | 26.57 | 26.47 | 26.02 | 25.56 | 24.02 | ||||||||||||||
Tangible book value per common share | 19.87 | 19.75 | 19.29 | 18.82 | 17.28 | ||||||||||||||
Cash dividends paid per common share | 0.36 | 0.36 | 0.36 | 0.37 | 0.35 | ||||||||||||||
Selected Performance Ratios: | |||||||||||||||||||
Return on average assets | 0.98 | % | 1.19 | % | 1.03 | % | 0.85 | % | 0.93 | % | |||||||||
Return on average shareholders’ equity | 10.13 | 12.46 | 11.02 | 9.31 | 9.50 | ||||||||||||||
Return on average tangible common equity (1) | 13.69 | 16.90 | 15.07 | 13.10 | 13.17 | ||||||||||||||
Average yield on earning assets (FTE) (1) | 5.51 | 5.45 | 5.38 | 5.30 | 5.15 | ||||||||||||||
Average rate on interest bearing liabilities | 3.28 | 3.32 | 3.22 | 3.04 | 2.84 | ||||||||||||||
Net interest margin (FTE) (1) | 2.95 | 2.87 | 2.86 | 2.99 | 3.02 | ||||||||||||||
Net interest spread (FTE) (1) | 2.23 | 2.13 | 2.16 | 2.26 | 2.31 | ||||||||||||||
Average earning assets to average interest bearing liabilities | 128.51 | 128.62 | 127.71 | 131.65 | 133.24 | ||||||||||||||
Noninterest expense to average total assets | 1.73 | 1.72 | 1.77 | 1.73 | 1.79 | ||||||||||||||
Efficiency ratio (FTE) (1) | 51.90 | 52.71 | 55.54 | 50.86 | 52.29 |
(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 | |||||||||||||||||||
2024 | 2023 | ||||||||||||||||||
Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | |||||||||||||||
Nonperforming Assets: | $ | 7,656 | $ | 6,918 | $ | 7,979 | $ | 4,001 | $ | 4,381 | |||||||||
Nonaccrual loans | 7,254 | 6,110 | 7,709 | 3,889 | 4,316 | ||||||||||||||
Accruing loans past due more than 90 days | — | — | — | — | — | ||||||||||||||
Restructured loans | — | 145 | 151 | 13 | 15 | ||||||||||||||
Other real estate owned | 388 | 648 | 119 | 99 | 50 | ||||||||||||||
Repossessed assets | 14 | 15 | — | — | — | ||||||||||||||
Asset Quality Ratios: | |||||||||||||||||||
Ratio of nonaccruing loans to: | |||||||||||||||||||
Total loans | 0.16 | % | 0.13 | % | 0.17 | % | 0.09 | % | 0.10 | % | |||||||||
Ratio of nonperforming assets to: | |||||||||||||||||||
Total assets | 0.09 | 0.08 | 0.10 | 0.05 | 0.05 | ||||||||||||||
Total loans | 0.17 | 0.15 | 0.17 | 0.09 | 0.10 | ||||||||||||||
Total loans and OREO | 0.17 | 0.15 | 0.17 | 0.09 | 0.10 | ||||||||||||||
Ratio of allowance for loan losses to: | |||||||||||||||||||
Nonaccruing loans | 610.37 | 694.06 | 565.01 | 1,097.30 | 967.56 | ||||||||||||||
Nonperforming assets | 578.32 | 613.00 | 545.90 | 1,066.58 | 953.21 | ||||||||||||||
Total loans | 0.97 | 0.92 | 0.95 | 0.94 | 0.94 | ||||||||||||||
Net charge-offs (recoveries) to average loans outstanding | 0.04 | 0.02 | 0.03 | 0.11 | 0.08 | ||||||||||||||
Capital Ratios: | |||||||||||||||||||
Shareholders’ equity to total assets | 9.63 | 9.58 | 9.43 | 9.33 | 9.14 | ||||||||||||||
Common equity tier 1 capital | 13.07 | 12.72 | 12.43 | 12.28 | 12.27 | ||||||||||||||
Tier 1 risk-based capital | 14.12 | 13.76 | 13.47 | 13.32 | 13.31 | ||||||||||||||
Total risk-based capital | 16.59 | 16.16 | 15.92 | 15.73 | 15.71 | ||||||||||||||
Tier 1 leverage capital | 9.61 | 9.40 | 9.22 | 9.39 | 9.61 | ||||||||||||||
Period end tangible equity to period end tangible assets (1) | 7.38 | 7.33 | 7.17 | 7.04 | 6.75 | ||||||||||||||
Average shareholders’ equity to average total assets | 9.67 | 9.52 | 9.35 | 9.13 | 9.76 |
(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 | |||||||||||||||||||
2024 | 2023 | ||||||||||||||||||
Loan Portfolio Composition | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | ||||||||||||||
Real Estate Loans: | |||||||||||||||||||
Construction | $ | 585,817 | $ | 546,040 | $ | 599,464 | $ | 789,744 | $ | 720,515 | |||||||||
1-4 Family Residential | 755,406 | 738,037 | 720,508 | 696,738 | 689,492 | ||||||||||||||
Commercial | 2,422,612 | 2,472,771 | 2,413,345 | 2,168,451 | 2,117,306 | ||||||||||||||
Commercial Loans | 358,854 | 359,807 | 358,053 | 366,893 | 385,816 | ||||||||||||||
Municipal Loans | 402,041 | 416,986 | 427,225 | 441,168 | 441,512 | ||||||||||||||
Loans to Individuals | 53,318 | 55,724 | 58,773 | 61,516 | 65,992 | ||||||||||||||
Total Loans | $ | 4,578,048 | $ | 4,589,365 | $ | 4,577,368 | $ | 4,524,510 | $ | 4,420,633 | |||||||||
Summary of Changes in Allowances: | |||||||||||||||||||
Allowance for Loan Losses | |||||||||||||||||||
Balance at beginning of period | $ | 42,407 | $ | 43,557 | $ | 42,674 | $ | 41,760 | $ | 36,303 | |||||||||
Loans charged-off | (773 | ) | (721 | ) | (634 | ) | (1,572 | ) | (1,262 | ) | |||||||||
Recoveries of loans charged-off | 365 | 444 | 347 | 284 | 378 | ||||||||||||||
Net loans (charged-off) recovered | (408 | ) | (277 | ) | (287 | ) | (1,288 | ) | (884 | ) | |||||||||
Provision for (reversal of) loan losses | 2,277 | (873 | ) | 1,170 | 2,202 | 6,341 | |||||||||||||
Balance at end of period | $ | 44,276 | $ | 42,407 | $ | 43,557 | $ | 42,674 | $ | 41,760 | |||||||||
Allowance for Off-Balance-Sheet Credit Exposures | |||||||||||||||||||
Balance at beginning of period | $ | 3,208 | $ | 2,820 | $ | 3,932 | $ | 3,853 | $ | 3,207 | |||||||||
Provision for (reversal of) off-balance-sheet credit exposures | 112 | 388 | (1,112 | ) | 79 | 646 | |||||||||||||
Balance at end of period | $ | 3,320 | $ | 3,208 | $ | 2,820 | $ | 3,932 | $ | 3,853 | |||||||||
Total Allowance for Credit Losses | $ | 47,596 | $ | 45,615 | $ | 46,377 | $ | 46,606 | $ | 45,613 |
Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands) | |||||||
Nine Months Ended | |||||||
September 30, | |||||||
2024 | 2023 | ||||||
Income Statement: | |||||||
Total interest income | $ | 312,647 | $ | 260,802 | |||
Total interest expense | 150,227 | 100,260 | |||||
Net interest income | 162,420 | 160,542 | |||||
Provision for (reversal of) credit losses | 1,962 | 6,873 | |||||
Net interest income after provision for (reversal of) credit losses | 160,458 | 153,669 | |||||
Noninterest income | |||||||
Deposit services | 18,341 | 19,192 | |||||
Net gain (loss) on sale of securities available for sale | (2,510 | ) | (5,590 | ) | |||
Net gain on sale of equity securities | — | 5,058 | |||||
Gain (loss) on sale of loans | (101 | ) | 385 | ||||
Trust fees | 4,420 | 4,479 | |||||
Bank owned life insurance | 3,408 | 3,221 | |||||
Brokerage services | 3,163 | 2,361 | |||||
Other | 2,731 | 4,227 | |||||
Total noninterest income | 29,452 | 33,333 | |||||
Noninterest expense | |||||||
Salaries and employee benefits | 67,330 | 64,473 | |||||
Net occupancy | 10,725 | 11,220 | |||||
Advertising, travel & entertainment | 2,479 | 2,966 | |||||
ATM expense | 1,105 | 1,033 | |||||
Professional fees | 3,435 | 4,036 | |||||
Software and data processing | 8,667 | 6,751 | |||||
Communications | 1,282 | 1,034 | |||||
FDIC insurance | 2,859 | 2,666 | |||||
Amortization of intangibles | 922 | 1,327 | |||||
Other | 10,174 | 9,889 | |||||
Total noninterest expense | 108,978 | 105,395 | |||||
Income before income tax expense | 80,932 | 81,607 | |||||
Income tax expense | 14,224 | 12,231 | |||||
Net income | $ | 66,708 | $ | 69,376 | |||
Common Share Data: | |||||||
Weighted-average basic shares outstanding | 30,276 | 30,862 | |||||
Weighted-average diluted shares outstanding | 30,332 | 30,916 | |||||
Common shares outstanding end of period | 30,308 | 30,338 | |||||
Earnings per common share | |||||||
Basic | $ | 2.20 | $ | 2.25 | |||
Diluted | 2.20 | 2.24 | |||||
Book value per common share | 26.57 | 24.02 | |||||
Tangible book value per common share | 19.87 | 17.28 | |||||
Cash dividends paid per common share | 1.08 | 1.05 | |||||
Selected Performance Ratios: | |||||||
Return on average assets | 1.06 | % | 1.20 | % | |||
Return on average shareholders’ equity | 11.19 | 12.21 | |||||
Return on average tangible common equity (1) | 15.20 | 16.98 | |||||
Average yield on earning assets (FTE) (1) | 5.45 | 4.97 | |||||
Average rate on interest bearing liabilities | 3.27 | 2.49 | |||||
Net interest margin (FTE) (1) | 2.90 | 3.13 | |||||
Net interest spread (FTE) (1) | 2.18 | 2.48 | |||||
Average earning assets to average interest bearing liabilities | 128.28 | 134.94 | |||||
Noninterest expense to average total assets | 1.74 | 1.84 | |||||
Efficiency ratio (FTE) (1) | 53.35 | 51.44 |
(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) | |||||||
Nine Months Ended | |||||||
September 30, | |||||||
2024 | 2023 | ||||||
Nonperforming Assets: | $ | 7,656 | $ | 4,381 | |||
Nonaccrual loans | 7,254 | 4,316 | |||||
Accruing loans past due more than 90 days | — | — | |||||
Restructured loans | — | 15 | |||||
Other real estate owned | 388 | 50 | |||||
Repossessed assets | 14 | — | |||||
Asset Quality Ratios: | |||||||
Ratio of nonaccruing loans to: | |||||||
Total loans | 0.16 | % | 0.10 | % | |||
Ratio of nonperforming assets to: | |||||||
Total assets | 0.09 | 0.05 | |||||
Total loans | 0.17 | 0.10 | |||||
Total loans and OREO | 0.17 | 0.10 | |||||
Ratio of allowance for loan losses to: | |||||||
Nonaccruing loans | 610.37 | 967.56 | |||||
Nonperforming assets | 578.32 | 953.21 | |||||
Total loans | 0.97 | 0.94 | |||||
Net charge-offs (recoveries) to average loans outstanding | 0.03 | 0.05 | |||||
Capital Ratios: | |||||||
Shareholders’ equity to total assets | 9.63 | 9.14 | |||||
Common equity tier 1 capital | 13.07 | 12.27 | |||||
Tier 1 risk-based capital | 14.12 | 13.31 | |||||
Total risk-based capital | 16.59 | 15.71 | |||||
Tier 1 leverage capital | 9.61 | 9.61 | |||||
Period end tangible equity to period end tangible assets (1) | 7.38 | 6.75 | |||||
Average shareholders’ equity to average total assets | 9.51 | 9.81 |
(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) | |||||||
Nine Months Ended | |||||||
September 30, | |||||||
Loan Portfolio Composition | 2024 | 2023 | |||||
Real Estate Loans: | |||||||
Construction | $ | 585,817 | $ | 720,515 | |||
1-4 Family Residential | 755,406 | 689,492 | |||||
Commercial | 2,422,612 | 2,117,306 | |||||
Commercial Loans | 358,854 | 385,816 | |||||
Municipal Loans | 402,041 | 441,512 | |||||
Loans to Individuals | 53,318 | 65,992 | |||||
Total Loans | $ | 4,578,048 | $ | 4,420,633 | |||
Summary of Changes in Allowances: | |||||||
Allowance for Loan Losses | |||||||
Balance at beginning of period | $ | 42,674 | $ | 36,515 | |||
Loans charged-off | (2,128 | ) | (2,632 | ) | |||
Recoveries of loans charged-off | 1,156 | 1,170 | |||||
Net loans (charged-off) recovered | (972 | ) | (1,462 | ) | |||
Provision for (reversal of) loan losses | 2,574 | 6,707 | |||||
Balance at end of period | $ | 44,276 | $ | 41,760 | |||
Allowance for Off-Balance-Sheet Credit Exposures | |||||||
Balance at beginning of period | $ | 3,932 | $ | 3,687 | |||
Provision for (reversal of) off-balance-sheet credit exposures | (612 | ) | 166 | ||||
Balance at end of period | $ | 3,320 | $ | 3,853 | |||
Total Allowance for Credit Losses | $ | 47,596 | $ | 45,613 |
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.
Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
September 30, 2024 | June 30, 2024 | ||||||||||||||||||
Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | ||||||||||||||
ASSETS | |||||||||||||||||||
Loans (1) | $ | 4,613,028 | $ | 72,493 | 6.25 | % | $ | 4,595,980 | $ | 70,293 | 6.15 | % | |||||||
Loans held for sale | 871 | 11 | 5.02 | % | 1,489 | 24 | 6.48 | % | |||||||||||
Securities: | |||||||||||||||||||
Taxable investment securities (2) | 791,914 | 7,150 | 3.59 | % | 783,856 | 7,009 | 3.60 | % | |||||||||||
Tax-exempt investment securities (2) | 1,174,445 | 11,825 | 4.01 | % | 1,254,097 | 12,761 | 4.09 | % | |||||||||||
Mortgage-backed and related securities (2) | 886,325 | 11,976 | 5.38 | % | 830,504 | 11,084 | 5.37 | % | |||||||||||
Total securities | 2,852,684 | 30,951 | 4.32 | % | 2,868,457 | 30,854 | 4.33 | % | |||||||||||
Federal Home Loan Bank stock, at cost, and equity investments | 41,159 | 582 | 5.63 | % | 40,467 | 573 | 5.69 | % | |||||||||||
Interest earning deposits | 281,313 | 3,798 | 5.37 | % | 300,047 | 4,105 | 5.50 | % | |||||||||||
Federal funds sold | 33,971 | 488 | 5.71 | % | 75,479 | 1,021 | 5.44 | % | |||||||||||
Total earning assets | 7,823,026 | 108,323 | 5.51 | % | 7,881,919 | 106,870 | 5.45 | % | |||||||||||
Cash and due from banks | 100,578 | 110,102 | |||||||||||||||||
Accrued interest and other assets | 455,091 | 424,323 | |||||||||||||||||
Less: Allowance for loan losses | (42,581 | ) | (43,738 | ) | |||||||||||||||
Total assets | $ | 8,336,114 | $ | 8,372,606 | |||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
Savings accounts | $ | 598,116 | 1,490 | 0.99 | % | $ | 604,753 | 1,454 | 0.97 | % | |||||||||
Certificates of deposit | 1,087,613 | 12,647 | 4.63 | % | 1,020,099 | 11,630 | 4.59 | % | |||||||||||
Interest bearing demand accounts | 3,409,911 | 24,395 | 2.85 | % | 3,513,068 | 25,382 | 2.91 | % | |||||||||||
Total interest bearing deposits | 5,095,640 | 38,532 | 3.01 | % | 5,137,920 | 38,466 | 3.01 | % | |||||||||||
Federal Home Loan Bank borrowings | 618,708 | 6,488 | 4.17 | % | 606,851 | 6,455 | 4.28 | % | |||||||||||
Subordinated notes, net of unamortized debt issuance costs | 91,988 | 937 | 4.05 | % | 92,017 | 936 | 4.09 | % | |||||||||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,273 | 1,180 | 7.79 | % | 60,271 | 1,171 | 7.81 | % | |||||||||||
Repurchase agreements | 83,297 | 899 | 4.29 | % | 88,007 | 955 | 4.36 | % | |||||||||||
Other borrowings | 137,482 | 2,203 | 6.37 | % | 143,169 | 2,595 | 7.29 | % | |||||||||||
Total interest bearing liabilities | 6,087,388 | 50,239 | 3.28 | % | 6,128,235 | 50,578 | 3.32 | % | |||||||||||
Noninterest bearing deposits | 1,344,165 | 1,346,274 | |||||||||||||||||
Accrued expenses and other liabilities | 98,331 | 101,399 | |||||||||||||||||
Total liabilities | 7,529,884 | 7,575,908 | |||||||||||||||||
Shareholders’ equity | 806,230 | 796,698 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 8,336,114 | $ | 8,372,606 | |||||||||||||||
Net interest income (FTE) | $ | 58,084 | $ | 56,292 | |||||||||||||||
Net interest margin (FTE) | 2.95 | % | 2.87 | % | |||||||||||||||
Net interest spread (FTE) | 2.23 | % | 2.13 | % |
(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 September 30, 2024 and June 30, 2024, loans totaling
Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
March 31, 2024 | December 31, 2023 | ||||||||||||||||||
Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | ||||||||||||||
ASSETS | |||||||||||||||||||
Loans (1) | $ | 4,559,602 | $ | 68,849 | 6.07 | % | $ | 4,473,618 | $ | 67,886 | 6.02 | % | |||||||
Loans held for sale | 8,834 | 18 | 0.82 | % | 1,858 | 27 | 5.77 | % | |||||||||||
Securities: | |||||||||||||||||||
Taxable investment securities (2) | 780,423 | 6,967 | 3.59 | % | 852,023 | 7,970 | 3.71 | % | |||||||||||
Tax-exempt investment securities (2) | 1,285,922 | 13,168 | 4.12 | % | 1,456,187 | 15,688 | 4.27 | % | |||||||||||
Mortgage-backed and related securities (2) | 764,713 | 10,119 | 5.32 | % | 581,548 | 6,865 | 4.68 | % | |||||||||||
Total securities | 2,831,058 | 30,254 | 4.30 | % | 2,889,758 | 30,523 | 4.19 | % | |||||||||||
Federal Home Loan Bank stock, at cost, and equity investments | 40,063 | 333 | 3.34 | % | 24,674 | 296 | 4.76 | % | |||||||||||
Interest earning deposits | 380,181 | 5,202 | 5.50 | % | 150,763 | 2,054 | 5.41 | % | |||||||||||
Federal funds sold | 62,599 | 838 | 5.38 | % | 93,149 | 1,286 | 5.48 | % | |||||||||||
Total earning assets | 7,882,337 | 105,494 | 5.38 | % | 7,633,820 | 102,072 | 5.30 | % | |||||||||||
Cash and due from banks | 114,379 | 110,380 | |||||||||||||||||
Accrued interest and other assets | 441,783 | 374,120 | |||||||||||||||||
Less: Allowance for loan losses | (42,973 | ) | (41,822 | ) | |||||||||||||||
Total assets | $ | 8,395,526 | $ | 8,076,498 | |||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
Savings accounts | $ | 604,529 | 1,424 | 0.95 | % | $ | 610,453 | 1,432 | 0.93 | % | |||||||||
Certificates of deposit | 941,947 | 10,341 | 4.42 | % | 910,759 | 9,691 | 4.22 | % | |||||||||||
Interest bearing demand accounts | 3,634,936 | 26,433 | 2.92 | % | 3,469,120 | 24,498 | 2.80 | % | |||||||||||
Total interest bearing deposits | 5,181,412 | 38,198 | 2.97 | % | 4,990,332 | 35,621 | 2.83 | % | |||||||||||
Federal Home Loan Bank borrowings | 607,033 | 5,950 | 3.94 | % | 262,709 | 1,430 | 2.16 | % | |||||||||||
Subordinated notes, net of unamortized debt issuance costs | 93,895 | 956 | 4.10 | % | 93,859 | 965 | 4.08 | % | |||||||||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,270 | 1,175 | 7.84 | % | 60,269 | 1,195 | 7.87 | % | |||||||||||
Repurchase agreements | 92,177 | 967 | 4.22 | % | 96,622 | 1,008 | 4.14 | % | |||||||||||
Other borrowings | 137,287 | 2,164 | 6.34 | % | 294,683 | 4,235 | 5.70 | % | |||||||||||
Total interest bearing liabilities | 6,172,074 | 49,410 | 3.22 | % | 5,798,474 | 44,454 | 3.04 | % | |||||||||||
Noninterest bearing deposits | 1,338,384 | 1,424,961 | |||||||||||||||||
Accrued expenses and other liabilities | 100,014 | 115,388 | |||||||||||||||||
Total liabilities | 7,610,472 | 7,338,823 | |||||||||||||||||
Shareholders’ equity | 785,054 | 737,675 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 8,395,526 | $ | 8,076,498 | |||||||||||||||
Net interest income (FTE) | $ | 56,084 | $ | 57,618 | |||||||||||||||
Net interest margin (FTE) | 2.86 | % | 2.99 | % | |||||||||||||||
Net interest spread (FTE) | 2.16 | % | 2.26 | % |
(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 March 31, 2024 and December 31, 2023, loans totaling
Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands) | |||||||||
Three Months Ended | |||||||||
September 30, 2023 | |||||||||
Average Balance | Interest | Average Yield/Rate | |||||||
ASSETS | |||||||||
Loans (1) | $ | 4,396,184 | $ | 64,758 | 5.84 | % | |||
Loans held for sale | 1,537 | 26 | 6.71 | % | |||||
Securities: | |||||||||
Taxable investment securities (2) | 912,789 | 8,731 | 3.79 | % | |||||
Tax-exempt investment securities (2) | 1,510,044 | 16,232 | 4.26 | % | |||||
Mortgage-backed and related securities (2) | 442,908 | 4,426 | 3.96 | % | |||||
Total securities | 2,865,741 | 29,389 | 4.07 | % | |||||
Federal Home Loan Bank stock, at cost, and equity investments | 22,363 | 265 | 4.70 | % | |||||
Interest earning deposits | 37,891 | 535 | 5.60 | % | |||||
Federal funds sold | 94,441 | 1,253 | 5.26 | % | |||||
Total earning assets | 7,418,157 | 96,226 | 5.15 | % | |||||
Cash and due from banks | 106,348 | ||||||||
Accrued interest and other assets | 400,850 | ||||||||
Less: Allowance for loan losses | (36,493 | ) | |||||||
Total assets | $ | 7,888,862 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||
Savings accounts | $ | 622,246 | 1,458 | 0.93 | % | ||||
Certificates of deposit | 949,894 | 9,443 | 3.94 | % | |||||
Interest bearing demand accounts | 3,189,048 | 20,050 | 2.49 | % | |||||
Total interest bearing deposits | 4,761,188 | 30,951 | 2.58 | % | |||||
Federal Home Loan Bank borrowings | 230,184 | 1,174 | 2.02 | % | |||||
Subordinated notes, net of unamortized debt issuance costs | 93,817 | 962 | 4.07 | % | |||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,268 | 1,178 | 7.75 | % | |||||
Repurchase agreements | 104,070 | 1,048 | 4.00 | % | |||||
Other borrowings | 317,913 | 4,492 | 5.61 | % | |||||
Total interest bearing liabilities | 5,567,440 | 39,805 | 2.84 | % | |||||
Noninterest bearing deposits | 1,441,738 | ||||||||
Accrued expenses and other liabilities | 109,490 | ||||||||
Total liabilities | 7,118,668 | ||||||||
Shareholders’ equity | 770,194 | ||||||||
Total liabilities and shareholders’ equity | $ | 7,888,862 | |||||||
Net interest income (FTE) | $ | 56,421 | |||||||
Net interest margin (FTE) | 3.02 | % | |||||||
Net interest spread (FTE) | 2.31 | % |
(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 September 30, 2023, loans totaling
Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands) | |||||||||||||||||||
Nine Months Ended | |||||||||||||||||||
September 30, 2024 | September 30, 2023 | ||||||||||||||||||
Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | ||||||||||||||
ASSETS | |||||||||||||||||||
Loans (1) | $ | 4,589,621 | $ | 211,635 | 6.16 | % | $ | 4,241,676 | $ | 179,545 | 5.66 | % | |||||||
Loans held for sale | 3,721 | 53 | 1.90 | % | 1,620 | 69 | 5.69 | % | |||||||||||
Securities: | |||||||||||||||||||
Taxable investment securities (2) | 785,422 | 21,126 | 3.59 | % | 843,846 | 23,216 | 3.68 | % | |||||||||||
Tax-exempt investment securities (2) | 1,237,884 | 37,754 | 4.07 | % | 1,587,656 | 48,880 | 4.12 | % | |||||||||||
Mortgage-backed and related securities (2) | 827,396 | 33,179 | 5.36 | % | 433,335 | 12,585 | 3.88 | % | |||||||||||
Total securities | 2,850,702 | 92,059 | 4.31 | % | 2,864,837 | 84,681 | 3.95 | % | |||||||||||
Federal Home Loan Bank stock, at cost, and equity investments | 40,565 | 1,488 | 4.90 | % | 25,071 | 889 | 4.74 | % | |||||||||||
Interest earning deposits | 320,371 | 13,105 | 5.46 | % | 60,623 | 2,310 | 5.09 | % | |||||||||||
Federal funds sold | 57,265 | 2,347 | 5.47 | % | 75,499 | 2,838 | 5.03 | % | |||||||||||
Total earning assets | 7,862,245 | 320,687 | 5.45 | % | 7,269,326 | 270,332 | 4.97 | % | |||||||||||
Cash and due from banks | 108,325 | 105,885 | |||||||||||||||||
Accrued interest and other assets | 440,340 | 406,160 | |||||||||||||||||
Less: Allowance for loan losses | (43,096 | ) | (36,564 | ) | |||||||||||||||
Total assets | $ | 8,367,814 | $ | 7,744,807 | |||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
Savings accounts | $ | 602,450 | 4,368 | 0.97 | % | $ | 645,415 | 4,201 | 0.87 | % | |||||||||
Certificates of deposit | 1,016,812 | 34,618 | 4.55 | % | 845,851 | 21,215 | 3.35 | % | |||||||||||
Interest bearing demand accounts | 3,518,906 | 76,210 | 2.89 | % | 3,005,449 | 47,120 | 2.10 | % | |||||||||||
Total interest bearing deposits | 5,138,168 | 115,196 | 2.99 | % | 4,496,715 | 72,536 | 2.16 | % | |||||||||||
Federal Home Loan Bank borrowings | 610,893 | 18,893 | 4.13 | % | 281,260 | 5,347 | 2.54 | % | |||||||||||
Subordinated notes, net of unamortized debt issuance costs | 92,631 | 2,829 | 4.08 | % | 96,753 | 2,955 | 4.08 | % | |||||||||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,271 | 3,526 | 7.81 | % | 60,266 | 3,309 | 7.34 | % | |||||||||||
Repurchase agreements | 87,811 | 2,821 | 4.29 | % | 89,282 | 2,423 | 3.63 | % | |||||||||||
Other borrowings | 139,306 | 6,962 | 6.68 | % | 362,684 | 13,690 | 5.05 | % | |||||||||||
Total interest bearing liabilities | 6,129,080 | 150,227 | 3.27 | % | 5,386,960 | 100,260 | 2.49 | % | |||||||||||
Noninterest bearing deposits | 1,342,945 | 1,506,431 | |||||||||||||||||
Accrued expenses and other liabilities | 99,758 | 91,784 | |||||||||||||||||
Total liabilities | 7,571,783 | 6,985,175 | |||||||||||||||||
Shareholders’ equity | 796,031 | 759,632 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 8,367,814 | $ | 7,744,807 | |||||||||||||||
Net interest income (FTE) | $ | 170,460 | $ | 170,072 | |||||||||||||||
Net interest margin (FTE) | 2.90 | % | 3.13 | % | |||||||||||||||
Net interest spread (FTE) | 2.18 | % | 2.48 | % |
(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 September 30, 2024 and 2023, loans totaling
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
Southside Bancshares, Inc. Non-GAAP Reconciliation (Unaudited) (Dollars and shares in thousands, except per share data) | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||
Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||||||||||||
Reconciliation of return on average common equity to return on average tangible common equity: | ||||||||||||||||||||||||||||
Net income | $ | 20,524 | $ | 24,673 | $ | 21,511 | $ | 17,316 | $ | 18,449 | $ | 66,708 | $ | 69,376 | ||||||||||||||
After-tax amortization expense | 220 | 243 | 266 | 292 | 322 | 728 | 1,048 | |||||||||||||||||||||
Adjusted net income available to common shareholders | $ | 20,744 | $ | 24,916 | $ | 21,777 | $ | 17,608 | $ | 18,771 | $ | 67,436 | $ | 70,424 | ||||||||||||||
Average shareholders' equity | $ | 806,230 | $ | 796,698 | $ | 785,054 | $ | 737,675 | $ | 770,194 | $ | 796,031 | $ | 759,632 | ||||||||||||||
Less: Average intangibles for the period | (203,288 | ) | (203,581 | ) | (203,910 | ) | (204,267 | ) | (204,658 | ) | (203,592 | ) | (205,096 | ) | ||||||||||||||
Average tangible shareholders' equity | $ | 602,942 | $ | 593,117 | $ | 581,144 | $ | 533,408 | $ | 565,536 | $ | 592,439 | $ | 554,536 | ||||||||||||||
Return on average tangible common equity | 13.69 | % | 16.90 | % | 15.07 | % | 13.10 | % | 13.17 | % | 15.20 | % | 16.98 | % | ||||||||||||||
Reconciliation of book value per share to tangible book value per share: | ||||||||||||||||||||||||||||
Common equity at end of period | $ | 805,254 | $ | 800,970 | $ | 787,922 | $ | 773,288 | $ | 728,595 | $ | 805,254 | $ | 728,595 | ||||||||||||||
Less: Intangible assets at end of period | (203,119 | ) | (203,397 | ) | (203,704 | ) | (204,041 | ) | (204,411 | ) | (203,119 | ) | (204,411 | ) | ||||||||||||||
Tangible common shareholders' equity at end of period | $ | 602,135 | $ | 597,573 | $ | 584,218 | $ | 569,247 | $ | 524,184 | $ | 602,135 | $ | 524,184 | ||||||||||||||
Total assets at end of period | $ | 8,362,263 | $ | 8,357,702 | $ | 8,353,863 | $ | 8,284,914 | $ | 7,972,468 | $ | 8,362,263 | $ | 7,972,468 | ||||||||||||||
Less: Intangible assets at end of period | (203,119 | ) | (203,397 | ) | (203,704 | ) | (204,041 | ) | (204,411 | ) | (203,119 | ) | (204,411 | ) | ||||||||||||||
Tangible assets at end of period | $ | 8,159,144 | $ | 8,154,305 | $ | 8,150,159 | $ | 8,080,873 | $ | 7,768,057 | $ | 8,159,144 | $ | 7,768,057 | ||||||||||||||
Period end tangible equity to period end tangible assets | 7.38 | % | 7.33 | % | 7.17 | % | 7.04 | % | 6.75 | % | 7.38 | % | 6.75 | % | ||||||||||||||
Common shares outstanding end of period | 30,308 | 30,261 | 30,284 | 30,249 | 30,338 | 30,308 | 30,338 | |||||||||||||||||||||
Tangible book value per common share | $ | 19.87 | $ | 19.75 | $ | 19.29 | $ | 18.82 | $ | 17.28 | $ | 19.87 | $ | 17.28 | ||||||||||||||
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) | $ | 55,464 | $ | 53,608 | $ | 53,348 | $ | 54,485 | $ | 53,273 | $ | 162,420 | $ | 160,542 | ||||||||||||||
Tax-equivalent adjustments: | ||||||||||||||||||||||||||||
Loans | 608 | 633 | 656 | 680 | 674 | 1,897 | 2,044 | |||||||||||||||||||||
Tax-exempt investment securities | 2,012 | 2,051 | 2,080 | 2,453 | 2,474 | 6,143 | 7,486 | |||||||||||||||||||||
Net interest income (FTE) (1) | 58,084 | 56,292 | 56,084 | 57,618 | 56,421 | 170,460 | 170,072 | |||||||||||||||||||||
Noninterest income | 8,171 | 11,557 | 9,724 | 2,501 | 10,836 | 29,452 | 33,333 | |||||||||||||||||||||
Nonrecurring income (2) | 2,797 | (576 | ) | 18 | 8,376 | (11 | ) | 2,239 | (1,006 | ) | ||||||||||||||||||
Total revenue | $ | 69,052 | $ | 67,273 | $ | 65,826 | $ | 68,495 | $ | 67,246 | $ | 202,151 | $ | 202,399 | ||||||||||||||
Noninterest expense | $ | 36,332 | $ | 35,765 | $ | 36,881 | $ | 35,183 | $ | 35,553 | $ | 108,978 | $ | 105,395 | ||||||||||||||
Pre-tax amortization expense | (278 | ) | (307 | ) | (337 | ) | (370 | ) | (407 | ) | (922 | ) | (1,327 | ) | ||||||||||||||
Nonrecurring expense (3) | (219 | ) | 2 | 17 | 22 | 17 | (200 | ) | 56 | |||||||||||||||||||
Adjusted noninterest expense | $ | 35,835 | $ | 35,460 | $ | 36,561 | $ | 34,835 | $ | 35,163 | $ | 107,856 | $ | 104,124 | ||||||||||||||
Efficiency ratio | 53.94 | % | 54.90 | % | 57.95 | % | 53.30 | % | 54.86 | % | 55.56 | % | 53.99 | % | ||||||||||||||
Efficiency ratio (FTE) (1) | 51.90 | % | 52.71 | % | 55.54 | % | 50.86 | % | 52.29 | % | 53.35 | % | 51.44 | % | ||||||||||||||
Average earning assets | $ | 7,823,026 | $ | 7,881,919 | $ | 7,882,337 | $ | 7,633,820 | $ | 7,418,157 | $ | 7,862,245 | $ | 7,269,326 | ||||||||||||||
Net interest margin | 2.82 | % | 2.74 | % | 2.72 | % | 2.83 | % | 2.85 | % | 2.76 | % | 2.95 | % | ||||||||||||||
Net interest margin (FTE) (1) | 2.95 | % | 2.87 | % | 2.86 | % | 2.99 | % | 3.02 | % | 2.90 | % | 3.13 | % | ||||||||||||||
Net interest spread | 2.10 | % | 2.00 | % | 2.02 | % | 2.10 | % | 2.14 | % | 2.04 | % | 2.31 | % | ||||||||||||||
Net interest spread (FTE) (1) | 2.23 | % | 2.13 | % | 2.16 | % | 2.26 | % | 2.31 | % | 2.18 | % | 2.48 | % |
(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, net gain on sale of equity securities, BOLI income related to death benefits realized and other investment income or loss in the periods where applicable.
(3) These adjustments may include foreclosure expenses and branch closure expenses, in the periods where applicable.
FAQ
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