Southside Bancshares, Inc. (“Southside” or the “Company”) (NASDAQ:
SBSI) today reported its financial results for the quarter ended
June 30, 2023. Southside reported net income of $24.9 million
for the three months ended June 30, 2023, a decrease of $0.5
million, or 2.0%, compared to $25.4 million for the same period in
2022. Earnings per diluted common share increased $0.02, or 2.5%,
to $0.81 for the three months ended June 30, 2023, from $0.79 for
the same period in 2022. The annualized return on average
shareholders’ equity for the three months ended June 30, 2023 was
13.32%, compared to 13.33% for the same period in
2022. The annualized return on average assets was 1.29%
for the three months ended June 30, 2023, compared to 1.42% for the
same period in 2022.
“Southside reported excellent financial results
for the second quarter, highlighted by earnings per share of $0.81,
an 18.59% return on tangible common equity, a linked quarter
increase in loans of 4.2%, and continued strong asset quality
metrics,” stated Lee R. Gibson, President and Chief Executive
Officer of Southside. “Approximately 80% of our loan growth
occurred in June. Linked quarter, deposits net of brokered and
public fund deposits increased $73.1 million, or 1.6%. Our
tax-equivalent net interest margin linked quarter decreased four
basis points primarily due to increased deposit pricing pressure,
partially offset by a 22 basis point increase in the yield on
average loans and a 21 basis point increase in the yield on average
securities.”
Operating Results for the Three Months Ended
June 30, 2023
Net income was $24.9 million for the three
months ended June 30, 2023, compared to $25.4 million for the same
period in 2022, a decrease of $0.5 million, or 2.0%. Earnings per
diluted common share were $0.81 and $0.79 for the three months
ended June 30, 2023 and 2022, respectively. The decrease in net
income was primarily a result of increases in noninterest expense
and income tax expense, partially offset by increases in net
interest income and noninterest income. Annualized returns on
average assets and average shareholders’ equity for the three
months ended June 30, 2023 were 1.29% and 13.32%, respectively,
compared to 1.42% and 13.33%, respectively, for the three
months ended June 30, 2022. Our efficiency ratio and
tax-equivalent efficiency ratio(1) were 53.54% and 51.06%,
respectively, for the three months ended June 30, 2023, compared to
50.61% and 47.74%, respectively, for the three months ended
June 30, 2022, and 53.57% and 50.99%, respectively, for the
three months ended March 31, 2023.
Net interest income for the three months ended
June 30, 2023 was $53.9 million, compared to $51.1 million for the
same period in 2022, an increase of 5.6%. The increase in net
interest income was due to the increase in interest income, a
result of the increase in the average yield and the average balance
of interest earning assets, partially offset by an increase in
interest expense on our interest bearing liabilities due to higher
interest rates and an increase in the average balance of our
interest bearing liabilities. Linked quarter, net interest income
increased $0.6 million, or 1.1%, compared to $53.4 million during
the three months ended March 31, 2023. The increase in net
interest income was largely due to the increase in the average
yield of interest earning assets, which more than offset the
increase in the average balance and average rate paid on our
interest bearing liabilities.
Our net interest margin and tax-equivalent net
interest margin(1) decreased to 2.99% and 3.17%, respectively, for
the three months ended June 30, 2023, compared to 3.07% and
3.30%, respectively, for the same period in 2022. Linked quarter,
net interest margin and tax-equivalent net interest margin(1)
decreased from 3.02% and 3.21%, respectively for the three months
ended March 31, 2023.
Noninterest income was $10.5 million for the
three months ended June 30, 2023, an increase of $1.4 million, or
15.0%, compared to $9.1 million for the same period in 2022. The
increase was due to a net gain on sale of equity securities and an
increase in other noninterest income, partially offset by an
increase in net loss on sale of securities available for sale
(“AFS”) and decreases in deposit services income and brokerage
services income. On a linked quarter basis, noninterest income
decreased $1.6 million, or 13.0%, compared to the three months
ended March 31, 2023. The decrease was due to an increase in
net loss on sale of securities AFS and a decrease in bank owned
life insurance (“BOLI”) income related to death benefits realized
in the first quarter of 2023, partially offset by increases in
other noninterest income, net gain on sale of equity securities and
brokerage services income.
Noninterest expense increased $2.9 million, or
9.0%, to $35.0 million for the three months ended June 30, 2023,
compared to $32.1 million for the same period in 2022. The primary
increase was in salaries and employee benefits. Several additional
expense categories increased during the three months ended June 30,
2023, including FDIC insurance, other noninterest expense and
software and data processing expense. On a linked quarter basis,
noninterest expense increased by $0.1 million, or 0.4%, compared to
the three months ended March 31, 2023.
Income tax expense increased $1.3 million, or
38.6%, for the three months ended June 30, 2023, compared to the
same period in 2022. On a linked quarter basis, income tax expense
increased $25,000, or 0.6%. Our effective tax rate (“ETR”)
increased to 15.5% for the three months ended June 30, 2023,
compared to 11.5% for the three months ended June 30, 2022,
and increased from 14.9% for the three months ended March 31,
2023. The higher ETR for the three months ended June 30, 2023 was
primarily due to a decrease in tax-exempt income as a percentage of
pre-tax income as compared to the same period in 2022.
Operating Results for the Six Months Ended June
30, 2023
Net income was $50.9 million for the six months
ended June 30, 2023, compared to $50.4 million for the same period
in 2022, an increase of $0.5 million, or 1.0%. Earnings per diluted
common share were $1.64 for the six months ended June 30, 2023,
compared to $1.56 for the same period in 2022, an increase of 5.1%.
The increase in net income was primarily a result of increases in
net interest income and noninterest income, partially offset by
increases in noninterest expense and income tax expense. Returns on
average assets and average shareholders’ equity for the six months
ended June 30, 2023 were 1.34% and 13.62%, respectively, compared
to 1.41% and 12.31%, respectively, for the six months ended June
30, 2022. Our efficiency ratio and tax-equivalent
efficiency ratio(1) were 53.55% and 51.02%, respectively, for
the six months ended June 30, 2023, compared to 50.66% and 47.94%,
respectively, for the six months ended June 30, 2022.
Net interest income was $107.3 million for the
six months ended June 30, 2023, compared to $100.0 million for the
same period in 2022, due to the increase in interest income, a
result of the increase in the average yield and balance of our
interest earning assets, partially offset by the increase in
average rate paid and average balance of our interest bearing
liabilities.
Our net interest margin and tax-equivalent net
interest margin(1) were 3.01% and 3.19%, respectively, for the six
months ended June 30, 2023, compared to 3.05% and 3.26%,
respectively, for the same period in 2022. The decrease in net
interest margin was due to larger average rate and balance
increases on our interest-bearing liabilities when compared to the
interest earning assets during the six months ended June 30,
2023.
Noninterest income was $22.5 million for the six
months ended June 30, 2023, an increase of $2.7 million, or 13.5%,
compared to $19.8 million for the same period in 2022. The increase
was due to a net gain on sale of equity securities and an increase
in BOLI income related to death benefits realized in the first
quarter of 2023, partially offset by an increase in net loss on
sale of securities AFS and decreases in other noninterest income,
deposit services income and brokerage services income.
Noninterest expense was $69.8 million for the
six months ended June 30, 2023, compared to $63.3 million for the
same period in 2022, an increase of $6.5 million, or 10.3%. The
primary increase was in salaries and employee benefits. Several
additional expense categories increased, including other
noninterest expense, software and data processing expense and FDIC
insurance.
Income tax expense increased $2.7 million, or
41.4%, for the six months ended June 30, 2023, compared to the same
period in 2022. Our ETR was approximately 15.2% and 11.3% for the
six months ended June 30, 2023 and 2022, respectively. The higher
ETR for the six months ended June 30, 2023, as compared to the same
period in 2022, was primarily due to a decrease in tax-exempt
income as a percentage of pre-tax income.
Balance Sheet Data
At June 30, 2023, Southside had $7.81
billion in total assets, compared to $7.56 billion at
December 31, 2022 and $7.61 billion at June 30, 2022.
Loans at June 30, 2023 were $4.33 billion,
an increase of $366.0 million, or 9.2%, compared to $3.96 billion
at June 30, 2022. Linked quarter, loans increased $176.4
million, or 4.2%, due to increases of $109.5 million in commercial
real estate loans, $65.5 million in construction loans and $12.3
million in 1-4 family residential loans. These increases were
partially offset by decreases of $4.5 million in commercial loans,
$3.4 million in municipal loans and $3.0 million in loans to
individuals.
Securities at June 30, 2023 were $2.65
billion, a decrease of $168.7 million, or 6.0%, compared to $2.82
billion at June 30, 2022. Linked quarter, securities decreased
$97.4 million, or 3.5%, from $2.75 billion at March 31, 2023.
The linked quarter net decrease was due to the sale of municipal
bonds and mortgage-backed securities.
Deposits at June 30, 2023 were $6.12
billion, a decrease of $130.7 million, or 2.1%, compared to $6.25
billion at June 30, 2022. Linked quarter, deposits increased
$279.5 million, or 4.8%, from $5.84 billion at March 31, 2023.
During the three months ended June 30, 2023, brokered deposits
increased $302.7 million, or 64.7%, compared to March 31,
2023, as the funding of our cash flow hedge swaps partially
transitioned from other borrowings to brokered deposits to obtain
lower cost funding.
At June 30, 2023, we had 180,865 total
deposit accounts with an average balance of $30,000. At
June 30, 2023, our deposit accounts consisted of the following
(dollars in thousands):
|
|
June 30, 2023 |
|
|
Balance |
|
Number of Accounts |
|
Average Balance |
|
% of Total Deposits |
|
|
|
Individual non-maturity |
|
$ |
2,195,950 |
|
149,887 |
|
$ |
15 |
|
35.9 |
% |
Commercial non-maturity |
|
|
1,746,652 |
|
21,054 |
|
|
83 |
|
28.6 |
% |
Certificates of deposits |
|
|
602,745 |
|
9,223 |
|
|
65 |
|
9.8 |
% |
Public funds |
|
|
802,195 |
|
701 |
|
|
1,144 |
|
13.1 |
% |
Total deposits, excluding brokered deposits |
|
|
5,347,542 |
|
180,865 |
|
$ |
30 |
|
87.4 |
% |
|
|
|
|
|
|
|
|
|
Brokered deposits |
|
|
770,145 |
|
— |
|
|
— |
|
12.6 |
% |
Total deposits |
|
$ |
6,117,687 |
|
|
|
|
|
100.0 |
% |
|
At June 30, 2023, our estimated uninsured
deposits, excluding affiliate deposits (Southside-owned deposits)
and public funds (all collateralized), was 21.4%. At June 30,
2023, estimated uninsured deposits consisted of the following
(dollars in thousands):
|
|
|
June 30, 2023 |
|
|
Balance |
|
Uninsured Balance |
|
% of Uninsured Total Deposits |
|
|
|
Affiliate deposits |
|
$ |
21,583 |
|
$ |
21,333 |
|
|
0.3 |
|
% |
Customer deposits |
|
|
4,523,764 |
|
|
1,309,550 |
|
|
21.4 |
|
% |
Brokered deposits |
|
|
770,145 |
|
|
— |
|
|
— |
|
% |
Public funds |
|
|
802,195 |
|
|
775,739 |
|
|
12.7 |
|
% |
Total |
|
$ |
6,117,687 |
|
|
2,106,622 |
|
|
34.4 |
|
% |
|
|
|
|
|
|
|
Excluding public funds
(collateralized) |
|
|
|
|
(775,739 |
) |
|
(12.7 |
) |
% |
Excluding affiliate
deposits |
|
|
|
|
(21,333 |
) |
|
(0.3 |
) |
% |
Total estimated uninsured deposits |
|
|
|
$ |
1,309,550 |
|
|
21.4 |
|
% |
|
We continued to increase interest rates paid on
deposits during the quarter in order to retain deposits. Our
noninterest bearing deposits represent 24.0% of total deposits.
Linked quarter, our cost of interest bearing deposits increased 21
basis points from 1.82% in the prior quarter to 2.03%. Linked
quarter, our cost of total deposits increased 16 basis points from
1.34% in the prior quarter to 1.50%.
Our cost of interest bearing deposits increased
157 basis points, from 0.35% for the six months ended June 30,
2022, to 1.92% for the six months ended June 30, 2023. Our cost of
total deposits increased 117 basis points, from 0.25% for the six
months ended June 30, 2022 to 1.42% for the six months ended June
30, 2023.
Capital Resources and Liquidity
Our capital ratios and contingent liquidity
sources remain solid. During the second quarter ended June 30,
2023, we purchased the remaining 618,831 shares of the Company’s
common stock at an average price of $30.27 authorized pursuant to
the Stock Repurchase Plan with no authorized shares remaining to be
purchased as of June 30, 2023. On July 20, 2023, our board of
directors approved a Stock Repurchase Plan authorizing the
repurchase 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, 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. As of July 25,
2023, no shares have been purchased under this recent Stock
Repurchase Plan.
We utilized the Federal Reserve’s Bank Term
Funding Program (“BTFP”) to reduce our overall funding costs and to
enhance our interest rate risk position. As of June 30, 2023,
our BTFP borrowings of $296.2 million were at a cost of 4.46%.
The table below shows our total lines of credit,
current borrowings as of June 30, 2023, total amounts
available for future borrowings, and swapped value (in
thousands):
|
|
|
June 30, 2023 |
|
|
Line of Credit |
|
|
Borrowings |
|
|
Total Available for Future Liquidity |
|
Swapped |
|
|
|
FHLB advances |
|
$ |
1,979,115 |
|
|
$ |
183,007 |
|
|
$ |
1,796,108 |
|
$ |
180,000 |
Federal Reserve discount
window |
|
|
693,551 |
|
|
|
100,000 |
|
|
|
593,551 |
|
|
— |
Correspondent bank lines of
credit |
|
|
62,500 |
|
|
|
— |
|
|
|
62,500 |
|
|
— |
Federal Reserve Bank Term
Funding Program |
|
|
296,866 |
|
|
|
296,158 |
|
|
|
708 |
|
|
— |
Total liquidity lines |
|
$ |
3,032,032 |
|
|
$ |
579,165 |
|
|
$ |
2,452,867 |
|
$ |
180,000 |
|
Asset Quality
Nonperforming assets at June 30, 2023 were
$3.1 million, or 0.04% of total assets, a decrease of $8.8 million,
or 74.1%, compared to $11.8 million, or 0.16% of total assets, at
June 30, 2022. The decrease in nonperforming assets was
primarily due to the adoption of ASU 2022-02 on January 1, 2023,
which allowed for the prospective exclusion of loan modifications
that are performing but would have previously required disclosure
as troubled debt restructures in nonperforming assets. Linked
quarter, nonperforming assets decreased slightly from $3.2 million
at March 31, 2023.
The allowance for loan losses totaled $36.3
million, or 0.84% of total loans, at June 30, 2023, compared
to $35.4 million, or 0.89% of total loans, at June 30, 2022.
The decrease in the allowance as a percentage of total loans was
primarily due to improved asset quality and the increase in the
total loan portfolio when compared to June 30, 2022. The
allowance for loan losses was $36.3 million, or 0.87% of total
loans, at March 31, 2023.
For the three month period ended June 30,
2023, we recorded a provision for credit losses for loans of $0.3
million, compared to a reversal of provision for credit losses for
loans of $0.1 million and a provision for credit losses of $0.1
million for the three month periods ended June 30, 2022 and
March 31, 2023, respectively. Net charge-offs were $0.3
million for the three months ended June 30, 2023, compared to net
recoveries of $37,000 for the three months ended June 30, 2022
and net charge-offs of $0.3 million for the three months ended
March 31, 2023. Net charge-offs were $0.6 million for the six
months ended June 30, 2023, compared to net recoveries of $22,000
for the six months ended June 30, 2022.
We recorded a reversal of provision for credit
losses for off-balance-sheet credit exposures of $0.4 million
and $0.5 million for the three month periods ended
June 30, 2023 and 2022, respectively and $0.1 million for the
three months ended March 31, 2023. We recorded a reversal of
provision for credit losses for off-balance-sheet credit exposures
of $0.5 million for both of the six-month periods ended June
30, 2023 and 2022. The balance of the allowance for
off-balance-sheet credit exposures at June 30, 2023 and 2022,
was $3.2 million and $1.9 million, respectively, and is included in
other liabilities.
Dividend
Southside Bancshares, Inc. declared a second
quarter cash dividend of $0.35 per share on May 4, 2023, which was
paid on June 6, 2023, to all shareholders of record as of May 23,
2023.
(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,
2023 financial results on Tuesday, July 25, 2023 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/BI8f91599282bd40e58e2908cc56c04bda 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
21% to increase tax-exempt interest income to a tax-equivalent
basis. Interest income earned on certain assets is completely or
partially exempt from federal income tax. As such, these tax-exempt
instruments typically yield lower returns than taxable
investments.
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 $7.81 billion in assets as of
June 30, 2023, that owns 100% of Southside
Bank. Southside Bank currently has 55 branches in Texas
and operates a network of 73 ATMs/ITMs.
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, 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 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, higher interest rates 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, supply chain
disruptions, labor shortages and additional interest rate increases
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, 2022, under “Part I - Item 1. Forward Looking
Information” and “Part I - Item 1A. Risk Factors,” “the Company's
Quarterly Report on Form 10-Q for the quarter ended March 31, 2023,
under Part II - 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 |
|
|
2023 |
|
|
|
2022 |
|
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
ASSETS |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
114,707 |
|
|
$ |
101,109 |
|
|
$ |
106,143 |
|
|
$ |
110,620 |
|
|
$ |
111,099 |
|
Interest earning deposits |
|
14,059 |
|
|
|
151,999 |
|
|
|
9,276 |
|
|
|
3,476 |
|
|
|
12,910 |
|
Federal funds sold |
|
78,347 |
|
|
|
57,384 |
|
|
|
83,833 |
|
|
|
81,031 |
|
|
|
48,280 |
|
Securities available for sale,
at estimated fair value |
|
1,339,821 |
|
|
|
1,437,222 |
|
|
|
1,299,014 |
|
|
|
1,424,562 |
|
|
|
1,733,354 |
|
Securities held to maturity,
at net carrying value |
|
1,308,472 |
|
|
|
1,308,457 |
|
|
|
1,326,729 |
|
|
|
1,151,205 |
|
|
|
1,083,672 |
|
Total securities |
|
2,648,293 |
|
|
|
2,745,679 |
|
|
|
2,625,743 |
|
|
|
2,575,767 |
|
|
|
2,817,026 |
|
Federal Home Loan Bank stock,
at cost |
|
10,801 |
|
|
|
16,696 |
|
|
|
9,190 |
|
|
|
12,887 |
|
|
|
13,726 |
|
Loans held for sale |
|
1,666 |
|
|
|
407 |
|
|
|
667 |
|
|
|
421 |
|
|
|
815 |
|
Loans |
|
4,329,043 |
|
|
|
4,152,644 |
|
|
|
4,147,691 |
|
|
|
4,063,495 |
|
|
|
3,963,041 |
|
Less: Allowance for loan losses |
|
(36,303 |
) |
|
|
(36,332 |
) |
|
|
(36,515 |
) |
|
|
(36,506 |
) |
|
|
(35,449 |
) |
Net loans |
|
4,292,740 |
|
|
|
4,116,312 |
|
|
|
4,111,176 |
|
|
|
4,026,989 |
|
|
|
3,927,592 |
|
Premises & equipment,
net |
|
139,801 |
|
|
|
141,363 |
|
|
|
141,256 |
|
|
|
142,653 |
|
|
|
142,772 |
|
Goodwill |
|
201,116 |
|
|
|
201,116 |
|
|
|
201,116 |
|
|
|
201,116 |
|
|
|
201,116 |
|
Other intangible assets,
net |
|
3,702 |
|
|
|
4,144 |
|
|
|
4,622 |
|
|
|
5,137 |
|
|
|
5,687 |
|
Bank owned life insurance |
|
134,951 |
|
|
|
134,635 |
|
|
|
133,911 |
|
|
|
133,394 |
|
|
|
132,675 |
|
Other assets |
|
167,069 |
|
|
|
121,501 |
|
|
|
131,703 |
|
|
|
160,256 |
|
|
|
192,363 |
|
Total assets |
$ |
7,807,252 |
|
|
$ |
7,792,345 |
|
|
$ |
7,558,636 |
|
|
$ |
7,453,747 |
|
|
$ |
7,606,061 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Noninterest bearing
deposits |
$ |
1,466,756 |
|
|
$ |
1,543,413 |
|
|
$ |
1,671,562 |
|
|
$ |
1,759,959 |
|
|
$ |
1,735,488 |
|
Interest bearing deposits |
|
4,650,931 |
|
|
|
4,294,807 |
|
|
|
4,526,457 |
|
|
|
4,421,200 |
|
|
|
4,512,921 |
|
Total deposits |
|
6,117,687 |
|
|
|
5,838,220 |
|
|
|
6,198,019 |
|
|
|
6,181,159 |
|
|
|
6,248,409 |
|
Other borrowings and Federal
Home Loan Bank borrowings |
|
683,348 |
|
|
|
958,810 |
|
|
|
374,511 |
|
|
|
318,252 |
|
|
|
212,179 |
|
Subordinated notes, net of
unamortized debt issuance costs |
|
93,796 |
|
|
|
98,710 |
|
|
|
98,674 |
|
|
|
98,639 |
|
|
|
98,604 |
|
Trust preferred subordinated
debentures, net of unamortized debt issuance costs |
|
60,267 |
|
|
|
60,266 |
|
|
|
60,265 |
|
|
|
60,264 |
|
|
|
60,262 |
|
Other liabilities |
|
86,993 |
|
|
|
85,309 |
|
|
|
81,170 |
|
|
|
87,797 |
|
|
|
254,825 |
|
Total liabilities |
|
7,042,091 |
|
|
|
7,041,315 |
|
|
|
6,812,639 |
|
|
|
6,746,111 |
|
|
|
6,874,279 |
|
Shareholders' equity |
|
765,161 |
|
|
|
751,030 |
|
|
|
745,997 |
|
|
|
707,636 |
|
|
|
731,782 |
|
Total liabilities and shareholders' equity |
$ |
7,807,252 |
|
|
$ |
7,792,345 |
|
|
$ |
7,558,636 |
|
|
$ |
7,453,747 |
|
|
$ |
7,606,061 |
|
|
Southside Bancshares, Inc.Consolidated
Financial Highlights (Unaudited)(Dollars and
shares in thousands, except per share data) |
|
|
|
Three Months Ended |
|
|
2023 |
|
|
|
|
2022 |
|
|
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
Income
Statement: |
|
|
|
|
|
|
|
|
|
Total interest income |
$ |
86,876 |
|
|
|
$ |
80,848 |
|
|
|
$ |
75,128 |
|
|
|
$ |
66,880 |
|
|
|
$ |
57,100 |
|
|
Total interest expense |
|
32,960 |
|
|
|
|
27,495 |
|
|
|
|
18,286 |
|
|
|
|
11,365 |
|
|
|
|
6,022 |
|
|
Net interest income |
|
53,916 |
|
|
|
|
53,353 |
|
|
|
|
56,842 |
|
|
|
|
55,515 |
|
|
|
|
51,078 |
|
|
Provision for (reversal of)
credit losses |
|
(74 |
) |
|
|
|
(40 |
) |
|
|
|
2,086 |
|
|
|
|
1,494 |
|
|
|
|
(633 |
) |
|
Net interest income after
provision for (reversal of) credit losses |
|
53,990 |
|
|
|
|
53,393 |
|
|
|
|
54,756 |
|
|
|
|
54,021 |
|
|
|
|
51,711 |
|
|
Noninterest income |
|
|
|
|
|
|
|
|
|
Deposit services |
|
6,291 |
|
|
|
|
6,422 |
|
|
|
|
6,478 |
|
|
|
|
6,241 |
|
|
|
|
6,496 |
|
|
Net gain (loss) on sale of securities available for sale |
|
(3,455 |
) |
|
|
|
(2,146 |
) |
|
|
|
— |
|
|
|
|
(99 |
) |
|
|
|
(2,177 |
) |
|
Net gain on sale of equity securities |
|
2,642 |
|
|
|
|
2,416 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
Gain on sale of loans |
|
185 |
|
|
|
|
104 |
|
|
|
|
36 |
|
|
|
|
109 |
|
|
|
|
208 |
|
|
Trust fees |
|
1,490 |
|
|
|
|
1,467 |
|
|
|
|
1,571 |
|
|
|
|
1,407 |
|
|
|
|
1,520 |
|
|
Bank owned life insurance |
|
756 |
|
|
|
|
1,675 |
|
|
|
|
516 |
|
|
|
|
720 |
|
|
|
|
720 |
|
|
Brokerage services |
|
904 |
|
|
|
|
697 |
|
|
|
|
727 |
|
|
|
|
701 |
|
|
|
|
1,098 |
|
|
Other |
|
1,651 |
|
|
|
|
1,398 |
|
|
|
|
1,438 |
|
|
|
|
1,190 |
|
|
|
|
1,232 |
|
|
Total noninterest income |
|
10,464 |
|
|
|
|
12,033 |
|
|
|
|
10,766 |
|
|
|
|
10,269 |
|
|
|
|
9,097 |
|
|
Noninterest expense |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
21,376 |
|
|
|
|
21,856 |
|
|
|
|
20,967 |
|
|
|
|
21,368 |
|
|
|
|
20,329 |
|
|
Net occupancy |
|
3,690 |
|
|
|
|
3,734 |
|
|
|
|
3,973 |
|
|
|
|
3,847 |
|
|
|
|
3,654 |
|
|
Advertising, travel & entertainment |
|
854 |
|
|
|
|
1,050 |
|
|
|
|
1,188 |
|
|
|
|
789 |
|
|
|
|
716 |
|
|
ATM expense |
|
320 |
|
|
|
|
355 |
|
|
|
|
360 |
|
|
|
|
317 |
|
|
|
|
356 |
|
|
Professional fees |
|
1,192 |
|
|
|
|
1,372 |
|
|
|
|
1,473 |
|
|
|
|
1,412 |
|
|
|
|
1,147 |
|
|
Software and data processing |
|
2,264 |
|
|
|
|
2,055 |
|
|
|
|
1,741 |
|
|
|
|
1,736 |
|
|
|
|
1,739 |
|
|
Communications |
|
348 |
|
|
|
|
327 |
|
|
|
|
387 |
|
|
|
|
497 |
|
|
|
|
509 |
|
|
FDIC insurance |
|
1,220 |
|
|
|
|
544 |
|
|
|
|
511 |
|
|
|
|
485 |
|
|
|
|
477 |
|
|
Amortization of intangibles |
|
442 |
|
|
|
|
478 |
|
|
|
|
515 |
|
|
|
|
550 |
|
|
|
|
586 |
|
|
Other |
|
3,287 |
|
|
|
|
3,078 |
|
|
|
|
2,446 |
|
|
|
|
2,463 |
|
|
|
|
2,593 |
|
|
Total noninterest expense |
|
34,993 |
|
|
|
|
34,849 |
|
|
|
|
33,561 |
|
|
|
|
33,464 |
|
|
|
|
32,106 |
|
|
Income before income tax
expense |
|
29,461 |
|
|
|
|
30,577 |
|
|
|
|
31,961 |
|
|
|
|
30,826 |
|
|
|
|
28,702 |
|
|
Income tax expense |
|
4,568 |
|
|
|
|
4,543 |
|
|
|
|
4,293 |
|
|
|
|
3,875 |
|
|
|
|
3,297 |
|
|
Net income |
$ |
24,893 |
|
|
|
$ |
26,034 |
|
|
|
$ |
27,668 |
|
|
|
$ |
26,951 |
|
|
|
$ |
25,405 |
|
|
|
|
|
|
|
|
|
|
|
|
Common Share
Data: |
|
|
|
Weighted-average basic shares
outstanding |
|
30,721 |
|
|
|
|
31,372 |
|
|
|
|
31,896 |
|
|
|
|
32,112 |
|
|
|
|
32,119 |
|
|
Weighted-average diluted
shares outstanding |
|
30,754 |
|
|
|
|
31,464 |
|
|
|
|
31,964 |
|
|
|
|
32,221 |
|
|
|
|
32,251 |
|
|
Common shares outstanding end
of period |
|
30,532 |
|
|
|
|
31,121 |
|
|
|
|
31,547 |
|
|
|
|
32,127 |
|
|
|
|
32,108 |
|
|
Earnings per common share |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.81 |
|
|
|
$ |
0.83 |
|
|
|
$ |
0.87 |
|
|
|
$ |
0.84 |
|
|
|
$ |
0.79 |
|
|
Diluted |
|
0.81 |
|
|
|
|
0.83 |
|
|
|
|
0.87 |
|
|
|
|
0.84 |
|
|
|
|
0.79 |
|
|
Book value per common
share |
|
25.06 |
|
|
|
|
24.13 |
|
|
|
|
23.65 |
|
|
|
|
22.03 |
|
|
|
|
22.79 |
|
|
Tangible book value per common
share |
|
18.35 |
|
|
|
|
17.54 |
|
|
|
|
17.13 |
|
|
|
|
15.61 |
|
|
|
|
16.35 |
|
|
Cash dividends paid per common
share |
|
0.35 |
|
|
|
|
0.35 |
|
|
|
|
0.38 |
|
|
|
|
0.34 |
|
|
|
|
0.34 |
|
|
|
|
|
|
|
|
|
|
|
|
Selected Performance
Ratios: |
|
|
|
|
|
|
|
|
|
Return on average assets |
|
1.29 |
|
% |
|
|
1.38 |
|
% |
|
|
1.47 |
|
% |
|
|
1.43 |
|
% |
|
|
1.42 |
|
% |
Return on average
shareholders’ equity |
|
13.32 |
|
|
|
|
13.92 |
|
|
|
|
15.08 |
|
|
|
|
14.23 |
|
|
|
|
13.33 |
|
|
Return on average tangible
common equity (1) |
|
18.59 |
|
|
|
|
19.36 |
|
|
|
|
21.35 |
|
|
|
|
19.94 |
|
|
|
|
18.62 |
|
|
Average yield on earning
assets (FTE) (1) |
|
5.00 |
|
|
|
|
4.76 |
|
|
|
|
4.43 |
|
|
|
|
4.00 |
|
|
|
|
3.66 |
|
|
Average rate on interest
bearing liabilities |
|
2.45 |
|
|
|
|
2.14 |
|
|
|
|
1.48 |
|
|
|
|
0.92 |
|
|
|
|
0.52 |
|
|
Net interest margin (FTE)
(1) |
|
3.17 |
|
|
|
|
3.21 |
|
|
|
|
3.40 |
|
|
|
|
3.36 |
|
|
|
|
3.30 |
|
|
Net interest spread (FTE)
(1) |
|
2.55 |
|
|
|
|
2.62 |
|
|
|
|
2.95 |
|
|
|
|
3.08 |
|
|
|
|
3.14 |
|
|
Average earning assets to
average interest bearing liabilities |
|
134.12 |
|
|
|
|
137.67 |
|
|
|
|
143.66 |
|
|
|
|
142.83 |
|
|
|
|
144.54 |
|
|
Noninterest expense to average
total assets |
|
1.82 |
|
|
|
|
1.85 |
|
|
|
|
1.78 |
|
|
|
|
1.77 |
|
|
|
|
1.79 |
|
|
Efficiency ratio (FTE)
(1) |
|
51.06 |
|
|
|
|
50.99 |
|
|
|
|
46.38 |
|
|
|
|
47.42 |
|
|
|
|
47.74 |
|
|
(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 |
|
|
2023 |
|
|
|
2022 |
|
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
Nonperforming Assets: |
$ |
3,059 |
|
|
$ |
3,180 |
|
|
$ |
10,862 |
|
|
$ |
11,717 |
|
|
$ |
11,815 |
|
Nonaccrual loans |
|
3,017 |
|
|
|
3,169 |
|
|
|
2,846 |
|
|
|
3,039 |
|
|
|
3,119 |
|
Accruing loans past due more
than 90 days |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Restructured loans (1) |
|
— |
|
|
|
— |
|
|
|
7,849 |
|
|
|
8,481 |
|
|
|
8,568 |
|
Other real estate owned |
|
— |
|
|
|
— |
|
|
|
93 |
|
|
|
162 |
|
|
|
128 |
|
Repossessed assets |
|
42 |
|
|
|
11 |
|
|
|
74 |
|
|
|
35 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios: |
|
|
|
|
|
|
|
|
|
Ratio of nonaccruing loans
to: |
|
|
|
|
|
|
|
|
|
Total loans |
|
0.07 |
% |
|
|
0.08 |
% |
|
|
0.07 |
% |
|
|
0.07 |
% |
|
|
0.08 |
% |
Ratio of nonperforming assets
to: |
|
|
|
|
|
|
|
|
|
Total assets |
|
0.04 |
|
|
|
0.04 |
|
|
|
0.14 |
|
|
|
0.16 |
|
|
|
0.16 |
|
Total loans |
|
0.07 |
|
|
|
0.08 |
|
|
|
0.26 |
|
|
|
0.29 |
|
|
|
0.30 |
|
Total loans and OREO |
|
0.07 |
|
|
|
0.08 |
|
|
|
0.26 |
|
|
|
0.29 |
|
|
|
0.30 |
|
Ratio of allowance for loan
losses to: |
|
|
|
|
|
|
|
|
|
Nonaccruing loans |
|
1,203.28 |
|
|
|
1,146.48 |
|
|
|
1,283.03 |
|
|
|
1,201.25 |
|
|
|
1,136.55 |
|
Nonperforming assets |
|
1,186.76 |
|
|
|
1,142.52 |
|
|
|
336.17 |
|
|
|
311.56 |
|
|
|
300.03 |
|
Total loans |
|
0.84 |
|
|
|
0.87 |
|
|
|
0.88 |
|
|
|
0.90 |
|
|
|
0.89 |
|
Net charge-offs (recoveries)
to average loans outstanding |
|
0.03 |
|
|
|
0.03 |
|
|
|
0.05 |
|
|
|
0.02 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios: |
|
|
|
|
|
|
|
|
|
Shareholders’ equity to total
assets |
|
9.80 |
|
|
|
9.64 |
|
|
|
9.87 |
|
|
|
9.49 |
|
|
|
9.62 |
|
Common equity tier 1
capital |
|
12.32 |
|
|
|
12.73 |
|
|
|
12.63 |
|
|
|
12.98 |
|
|
|
12.83 |
|
Tier 1 risk-based capital |
|
13.37 |
|
|
|
13.81 |
|
|
|
13.70 |
|
|
|
14.07 |
|
|
|
13.94 |
|
Total risk-based capital |
|
15.68 |
|
|
|
16.28 |
|
|
|
16.11 |
|
|
|
16.50 |
|
|
|
16.38 |
|
Tier 1 leverage capital |
|
9.69 |
|
|
|
9.83 |
|
|
|
9.96 |
|
|
|
10.09 |
|
|
|
10.34 |
|
Period end tangible equity to
period end tangible assets (2) |
|
7.37 |
|
|
|
7.19 |
|
|
|
7.35 |
|
|
|
6.92 |
|
|
|
7.10 |
|
Average shareholders’ equity
to average total assets |
|
9.72 |
|
|
|
9.94 |
|
|
|
9.72 |
|
|
|
10.02 |
|
|
|
10.64 |
|
|
(1) Pursuant to our adoption of ASU 2022-02, effective January 1,
2023, we prospectively discontinued the recognition and measurement
guidance previously required on troubled debt restructures. As a
result, “restructured” loans beginning March 31, 2023 exclude any
loan modifications that are performing but would have previously
required disclosure as troubled debt restructures. |
(2) 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 |
|
|
2023 |
|
|
|
2022 |
|
Loan Portfolio
Composition |
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
Real Estate Loans: |
|
|
|
|
|
|
|
|
|
Construction |
$ |
657,354 |
|
|
$ |
591,894 |
|
|
$ |
559,681 |
|
|
$ |
554,345 |
|
|
$ |
520,484 |
|
1-4 Family Residential |
|
684,878 |
|
|
|
672,595 |
|
|
|
663,519 |
|
|
|
646,692 |
|
|
|
640,706 |
|
Commercial |
|
2,100,338 |
|
|
|
1,990,861 |
|
|
|
1,987,707 |
|
|
|
1,901,921 |
|
|
|
1,834,734 |
|
Commercial Loans |
|
383,724 |
|
|
|
388,182 |
|
|
|
412,064 |
|
|
|
433,538 |
|
|
|
428,974 |
|
Municipal Loans |
|
435,211 |
|
|
|
438,566 |
|
|
|
450,067 |
|
|
|
449,219 |
|
|
|
457,239 |
|
Loans to Individuals |
|
67,538 |
|
|
|
70,546 |
|
|
|
74,653 |
|
|
|
77,780 |
|
|
|
80,904 |
|
Total Loans |
$ |
4,329,043 |
|
|
$ |
4,152,644 |
|
|
$ |
4,147,691 |
|
|
$ |
4,063,495 |
|
|
$ |
3,963,041 |
|
|
|
|
|
|
|
|
|
|
|
Summary of Changes in
Allowances: |
|
|
|
|
|
|
|
|
|
Allowance for Loan
Losses |
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
$ |
36,332 |
|
|
$ |
36,515 |
|
|
$ |
36,506 |
|
|
$ |
35,449 |
|
|
$ |
35,524 |
|
Loans charged-off |
|
(737 |
) |
|
|
(633 |
) |
|
|
(864 |
) |
|
|
(686 |
) |
|
|
(479 |
) |
Recoveries of loans charged-off |
|
430 |
|
|
|
362 |
|
|
|
383 |
|
|
|
449 |
|
|
|
516 |
|
Net loans (charged-off) recovered |
|
(307 |
) |
|
|
(271 |
) |
|
|
(481 |
) |
|
|
(237 |
) |
|
|
37 |
|
Provision for (reversal of) loan losses |
|
278 |
|
|
|
88 |
|
|
|
490 |
|
|
|
1,294 |
|
|
|
(112 |
) |
Balance at end of period |
$ |
36,303 |
|
|
$ |
36,332 |
|
|
$ |
36,515 |
|
|
$ |
36,506 |
|
|
$ |
35,449 |
|
|
|
|
|
|
|
|
|
|
|
Allowance for
Off-Balance-Sheet Credit Exposures |
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
$ |
3,559 |
|
|
$ |
3,687 |
|
|
$ |
2,091 |
|
|
$ |
1,891 |
|
|
$ |
2,412 |
|
Provision for (reversal of) off-balance-sheet credit exposures |
|
(352 |
) |
|
|
(128 |
) |
|
|
1,596 |
|
|
|
200 |
|
|
|
(521 |
) |
Balance at end of period |
$ |
3,207 |
|
|
$ |
3,559 |
|
|
$ |
3,687 |
|
|
$ |
2,091 |
|
|
$ |
1,891 |
|
Total Allowance for
Credit Losses |
$ |
39,510 |
|
|
$ |
39,891 |
|
|
$ |
40,202 |
|
|
$ |
38,597 |
|
|
$ |
37,340 |
|
|
Southside Bancshares, Inc.Consolidated
Financial Highlights (Unaudited)(Dollars in
thousands) |
|
|
Six Months Ended |
|
June 30, |
|
|
2023 |
|
|
|
|
2022 |
|
|
Income
Statement: |
|
|
|
Total interest income |
$ |
167,724 |
|
|
|
$ |
110,973 |
|
|
Total interest expense |
|
60,455 |
|
|
|
|
10,989 |
|
|
Net interest income |
|
107,269 |
|
|
|
|
99,984 |
|
|
Provision for (reversal of)
credit losses |
|
(114 |
) |
|
|
|
(339 |
) |
|
Net interest income after
provision for (reversal of) credit losses |
|
107,383 |
|
|
|
|
100,323 |
|
|
Noninterest income |
|
|
|
Deposit services |
|
12,713 |
|
|
|
|
13,124 |
|
|
Net gain (loss) on sale of securities available for sale |
|
(5,601 |
) |
|
|
|
(3,720 |
) |
|
Net gain on sale of equity securities |
|
5,058 |
|
|
|
|
— |
|
|
Gain on sale of loans |
|
289 |
|
|
|
|
386 |
|
|
Trust fees |
|
2,957 |
|
|
|
|
3,014 |
|
|
Bank owned life insurance |
|
2,431 |
|
|
|
|
1,411 |
|
|
Brokerage services |
|
1,601 |
|
|
|
|
1,907 |
|
|
Other |
|
3,049 |
|
|
|
|
3,700 |
|
|
Total noninterest income |
|
22,497 |
|
|
|
|
19,822 |
|
|
Noninterest expense |
|
|
|
Salaries and employee benefits |
|
43,232 |
|
|
|
|
40,298 |
|
|
Net occupancy |
|
7,424 |
|
|
|
|
7,310 |
|
|
Advertising, travel & entertainment |
|
1,904 |
|
|
|
|
1,453 |
|
|
ATM expense |
|
675 |
|
|
|
|
637 |
|
|
Professional fees |
|
2,564 |
|
|
|
|
2,074 |
|
|
Software and data processing |
|
4,319 |
|
|
|
|
3,370 |
|
|
Communications |
|
675 |
|
|
|
|
1,012 |
|
|
FDIC insurance |
|
1,764 |
|
|
|
|
949 |
|
|
Amortization of intangibles |
|
920 |
|
|
|
|
1,208 |
|
|
Other |
|
6,365 |
|
|
|
|
4,990 |
|
|
Total noninterest expense |
|
69,842 |
|
|
|
|
63,301 |
|
|
Income before income tax
expense |
|
60,038 |
|
|
|
|
56,844 |
|
|
Income tax expense |
|
9,111 |
|
|
|
|
6,443 |
|
|
Net income |
$ |
50,927 |
|
|
|
$ |
50,401 |
|
|
Common Share
Data: |
|
|
|
Weighted-average basic shares
outstanding |
|
31,045 |
|
|
|
|
32,237 |
|
|
Weighted-average diluted
shares outstanding |
|
31,099 |
|
|
|
|
32,394 |
|
|
Common shares outstanding end
of period |
|
30,532 |
|
|
|
|
32,108 |
|
|
Earnings per common share |
|
|
|
Basic |
$ |
1.64 |
|
|
|
$ |
1.56 |
|
|
Diluted |
|
1.64 |
|
|
|
|
1.56 |
|
|
Book value per common
share |
|
25.06 |
|
|
|
|
22.79 |
|
|
Tangible book value per common
share |
|
18.35 |
|
|
|
|
16.35 |
|
|
Cash dividends paid per common
share |
|
0.70 |
|
|
|
|
0.68 |
|
|
|
|
|
|
Selected Performance
Ratios: |
|
|
|
Return on average assets |
|
1.34 |
|
% |
|
|
1.41 |
|
% |
Return on average
shareholders’ equity |
|
13.62 |
|
|
|
|
12.31 |
|
|
Return on average tangible
common equity (1) |
|
18.98 |
|
|
|
|
16.75 |
|
|
Average yield on earning
assets (FTE) (1) |
|
4.88 |
|
|
|
|
3.60 |
|
|
Average rate on interest
bearing liabilities |
|
2.30 |
|
|
|
|
0.48 |
|
|
Net interest margin (FTE)
(1) |
|
3.19 |
|
|
|
|
3.26 |
|
|
Net interest spread (FTE)
(1) |
|
2.58 |
|
|
|
|
3.12 |
|
|
Average earning assets to
average interest bearing liabilities |
|
135.85 |
|
|
|
|
143.24 |
|
|
Noninterest expense to average
total assets |
|
1.84 |
|
|
|
|
1.77 |
|
|
Efficiency ratio (FTE)
(1) |
|
51.02 |
|
|
|
|
47.94 |
|
|
(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, |
|
|
2023 |
|
|
|
2022 |
|
Nonperforming
Assets: |
$ |
3,059 |
|
|
$ |
11,815 |
|
Nonaccrual loans |
|
3,017 |
|
|
|
3,119 |
|
Accruing loans past due more
than 90 days |
|
— |
|
|
|
— |
|
Restructured loans (1) |
|
— |
|
|
|
8,568 |
|
Other real estate owned |
|
— |
|
|
|
128 |
|
Repossessed assets |
|
42 |
|
|
|
— |
|
|
|
|
|
Asset Quality
Ratios: |
|
|
|
Ratio of nonaccruing loans
to: |
|
|
|
Total loans |
|
0.07 |
% |
|
|
0.08 |
% |
Ratio of nonperforming assets
to: |
|
|
|
Total assets |
|
0.04 |
|
|
|
0.16 |
|
Total loans |
|
0.07 |
|
|
|
0.30 |
|
Total loans and OREO |
|
0.07 |
|
|
|
0.30 |
|
Ratio of allowance for loan
losses to: |
|
|
|
Nonaccruing loans |
|
1,203.28 |
|
|
|
1,136.55 |
|
Nonperforming assets |
|
1,186.76 |
|
|
|
300.03 |
|
Total loans |
|
0.84 |
|
|
|
0.89 |
|
Net charge-offs (recoveries)
to average loans outstanding |
|
0.03 |
|
|
|
— |
|
|
|
|
|
Capital
Ratios: |
|
|
|
Shareholders’ equity to total
assets |
|
9.80 |
|
|
|
9.62 |
|
Common equity tier 1
capital |
|
12.32 |
|
|
|
12.83 |
|
Tier 1 risk-based capital |
|
13.37 |
|
|
|
13.94 |
|
Total risk-based capital |
|
15.68 |
|
|
|
16.38 |
|
Tier 1 leverage capital |
|
9.69 |
|
|
|
10.34 |
|
Period end tangible equity to
period end tangible assets (2) |
|
7.37 |
|
|
|
7.10 |
|
Average shareholders’ equity
to average total assets |
|
9.83 |
|
|
|
11.47 |
|
|
(1) Pursuant to our adoption of ASU 2022-02, effective January
1, 2023, we prospectively discontinued the recognition and
measurement guidance previously required on troubled debt
restructures. As a result, “restructured” loans beginning March 31,
2023 exclude any loan modifications that are performing but would
have previously required disclosure as troubled debt
restructures. |
(2) 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 |
|
2023 |
|
|
|
2022 |
|
Real Estate Loans: |
|
|
|
Construction |
$ |
657,354 |
|
|
$ |
520,484 |
|
1-4 Family Residential |
|
684,878 |
|
|
|
640,706 |
|
Commercial |
|
2,100,338 |
|
|
|
1,834,734 |
|
Commercial Loans |
|
383,724 |
|
|
|
428,974 |
|
Municipal Loans |
|
435,211 |
|
|
|
457,239 |
|
Loans to Individuals |
|
67,538 |
|
|
|
80,904 |
|
Total Loans |
$ |
4,329,043 |
|
|
$ |
3,963,041 |
|
|
|
|
|
Summary of Changes in
Allowances: |
|
|
|
Allowance for Loan
Losses |
|
|
|
Balance at beginning of period |
$ |
36,515 |
|
|
$ |
35,273 |
|
Loans charged-off |
|
(1,370 |
) |
|
|
(1,034 |
) |
Recoveries of loans charged-off |
|
792 |
|
|
|
1,056 |
|
Net loans (charged-off) recovered |
|
(578 |
) |
|
|
22 |
|
Provision for (reversal of) loan losses |
|
366 |
|
|
|
154 |
|
Balance at end of period |
$ |
36,303 |
|
|
$ |
35,449 |
|
|
|
|
|
Allowance for
Off-Balance-Sheet Credit Exposures |
|
|
|
Balance at beginning of period |
$ |
3,687 |
|
|
$ |
2,384 |
|
Provision for (reversal of) off-balance-sheet credit exposures |
|
(480 |
) |
|
|
(493 |
) |
Balance at end of period |
$ |
3,207 |
|
|
$ |
1,891 |
|
Total Allowance for
Credit Losses |
$ |
39,510 |
|
|
$ |
37,340 |
|
|
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 |
|
June 30, 2023 |
|
March 31, 2023 |
|
Average Balance |
|
Interest |
|
Average Yield/Rate |
|
Average Balance |
|
Interest |
|
Average Yield/Rate |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Loans (1) |
$ |
4,197,130 |
|
|
$ |
59,334 |
|
5.67 |
% |
|
$ |
4,128,775 |
|
|
$ |
55,453 |
|
5.45 |
% |
Loans held for sale |
|
1,664 |
|
|
|
23 |
|
5.54 |
% |
|
|
1,662 |
|
|
|
20 |
|
4.88 |
% |
Securities: |
|
|
|
|
|
|
|
|
|
|
|
Taxable investment securities (2) |
|
925,445 |
|
|
|
8,773 |
|
3.80 |
% |
|
|
690,864 |
|
|
|
5,712 |
|
3.35 |
% |
Tax-exempt investment securities (2) |
|
1,562,232 |
|
|
|
16,182 |
|
4.15 |
% |
|
|
1,692,700 |
|
|
|
16,466 |
|
3.95 |
% |
Mortgage-backed and related securities (2) |
|
401,427 |
|
|
|
3,830 |
|
3.83 |
% |
|
|
455,811 |
|
|
|
4,329 |
|
3.85 |
% |
Total securities |
|
2,889,104 |
|
|
|
28,785 |
|
4.00 |
% |
|
|
2,839,375 |
|
|
|
26,507 |
|
3.79 |
% |
Federal Home Loan Bank stock,
at cost, and equity investments |
|
21,480 |
|
|
|
379 |
|
7.08 |
% |
|
|
31,470 |
|
|
|
245 |
|
3.16 |
% |
Interest earning deposits |
|
56,604 |
|
|
|
742 |
|
5.26 |
% |
|
|
87,924 |
|
|
|
1,033 |
|
4.76 |
% |
Federal funds sold |
|
59,186 |
|
|
|
748 |
|
5.07 |
% |
|
|
72,630 |
|
|
|
837 |
|
4.67 |
% |
Total earning assets |
|
7,225,168 |
|
|
|
90,011 |
|
5.00 |
% |
|
|
7,161,836 |
|
|
|
84,095 |
|
4.76 |
% |
Cash and due from banks |
|
103,559 |
|
|
|
|
|
|
|
107,765 |
|
|
|
|
|
Accrued interest and other
assets |
|
419,420 |
|
|
|
|
|
|
|
398,709 |
|
|
|
|
|
Less: Allowance for loan losses |
|
(36,512 |
) |
|
|
|
|
|
|
(36,690 |
) |
|
|
|
|
Total assets |
$ |
7,711,635 |
|
|
|
|
|
|
$ |
7,631,620 |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Savings accounts |
$ |
648,560 |
|
|
|
1,430 |
|
0.88 |
% |
|
$ |
665,919 |
|
|
|
1,313 |
|
0.80 |
% |
Certificates of deposit |
|
797,992 |
|
|
|
6,365 |
|
3.20 |
% |
|
|
787,887 |
|
|
|
5,407 |
|
2.78 |
% |
Interest bearing demand
accounts |
|
2,841,818 |
|
|
|
13,884 |
|
1.96 |
% |
|
|
2,983,218 |
|
|
|
13,186 |
|
1.79 |
% |
Total interest bearing deposits |
|
4,288,370 |
|
|
|
21,679 |
|
2.03 |
% |
|
|
4,437,024 |
|
|
|
19,906 |
|
1.82 |
% |
Federal Home Loan Bank
borrowings |
|
211,309 |
|
|
|
1,032 |
|
1.96 |
% |
|
|
404,199 |
|
|
|
3,141 |
|
3.15 |
% |
Subordinated notes, net of
unamortized debt issuance costs |
|
97,804 |
|
|
|
994 |
|
4.08 |
% |
|
|
98,693 |
|
|
|
999 |
|
4.11 |
% |
Trust preferred subordinated
debentures, net of unamortized debt issuance costs |
|
60,266 |
|
|
|
1,100 |
|
7.32 |
% |
|
|
60,265 |
|
|
|
1,031 |
|
6.94 |
% |
Repurchase agreements |
|
97,915 |
|
|
|
883 |
|
3.62 |
% |
|
|
65,435 |
|
|
|
492 |
|
3.05 |
% |
Other borrowings |
|
631,447 |
|
|
|
7,272 |
|
4.62 |
% |
|
|
136,700 |
|
|
|
1,926 |
|
5.71 |
% |
Total interest bearing liabilities |
|
5,387,111 |
|
|
|
32,960 |
|
2.45 |
% |
|
|
5,202,316 |
|
|
|
27,495 |
|
2.14 |
% |
Noninterest bearing
deposits |
|
1,490,445 |
|
|
|
|
|
|
|
1,588,725 |
|
|
|
|
|
Accrued expenses and other
liabilities |
|
84,252 |
|
|
|
|
|
|
|
81,829 |
|
|
|
|
|
Total liabilities |
|
6,961,808 |
|
|
|
|
|
|
|
6,872,870 |
|
|
|
|
|
Shareholders’ equity |
|
749,827 |
|
|
|
|
|
|
|
758,750 |
|
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
7,711,635 |
|
|
|
|
|
|
$ |
7,631,620 |
|
|
|
|
|
Net interest income (FTE) |
|
|
$ |
57,051 |
|
|
|
|
|
$ |
56,600 |
|
|
Net interest margin (FTE) |
|
|
|
|
3.17 |
% |
|
|
|
|
|
3.21 |
% |
Net interest spread (FTE) |
|
|
|
|
2.55 |
% |
|
|
|
|
|
2.62 |
% |
|
(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, 2023 and
March 31, 2023, loans totaling $3.0 million and $3.2 million,
respectively, were on nonaccrual status. Our policy is to reverse
previously accrued but unpaid interest on nonaccrual loans;
thereafter, interest income is recorded to the extent received when
appropriate.
Southside Bancshares, Inc.Average Balances
and Average Yields and Rates (Annualized)
(Unaudited)(Dollars in thousands) |
|
|
Three Months Ended |
|
December 31, 2022 |
|
September 30, 2022 |
|
Average Balance |
|
Interest |
|
Average Yield/Rate |
|
Average Balance |
|
Interest |
|
Average Yield/Rate |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Loans (1) |
$ |
4,103,429 |
|
|
$ |
52,650 |
|
5.09 |
% |
|
$ |
4,012,547 |
|
|
$ |
45,992 |
|
4.55 |
% |
Loans held for sale |
|
1,087 |
|
|
|
15 |
|
5.47 |
% |
|
|
606 |
|
|
|
7 |
|
4.58 |
% |
Securities: |
|
|
|
|
|
|
|
|
|
|
|
Taxable investment securities (2) |
|
622,004 |
|
|
|
4,804 |
|
3.06 |
% |
|
|
626,136 |
|
|
|
4,896 |
|
3.10 |
% |
Tax-exempt investment securities (2) |
|
1,730,233 |
|
|
|
15,652 |
|
3.59 |
% |
|
|
1,750,952 |
|
|
|
14,455 |
|
3.28 |
% |
Mortgage-backed and related securities (2) |
|
483,914 |
|
|
|
4,614 |
|
3.78 |
% |
|
|
520,501 |
|
|
|
4,770 |
|
3.64 |
% |
Total securities |
|
2,836,151 |
|
|
|
25,070 |
|
3.51 |
% |
|
|
2,897,589 |
|
|
|
24,121 |
|
3.30 |
% |
Federal Home Loan Bank stock,
at cost, and equity investments |
|
22,616 |
|
|
|
212 |
|
3.72 |
% |
|
|
24,013 |
|
|
|
101 |
|
1.67 |
% |
Interest earning deposits |
|
10,974 |
|
|
|
108 |
|
3.90 |
% |
|
|
18,664 |
|
|
|
105 |
|
2.23 |
% |
Federal funds sold |
|
84,858 |
|
|
|
774 |
|
3.62 |
% |
|
|
46,106 |
|
|
|
269 |
|
2.31 |
% |
Total earning assets |
|
7,059,115 |
|
|
|
78,829 |
|
4.43 |
% |
|
|
6,999,525 |
|
|
|
70,595 |
|
4.00 |
% |
Cash and due from banks |
|
108,200 |
|
|
|
|
|
|
|
102,840 |
|
|
|
|
|
Accrued interest and other
assets |
|
356,248 |
|
|
|
|
|
|
|
433,532 |
|
|
|
|
|
Less: Allowance for loan losses |
|
(36,602 |
) |
|
|
|
|
|
|
(35,706 |
) |
|
|
|
|
Total assets |
$ |
7,486,961 |
|
|
|
|
|
|
$ |
7,500,191 |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Savings accounts |
$ |
676,654 |
|
|
|
758 |
|
0.44 |
% |
|
$ |
685,947 |
|
|
|
481 |
|
0.28 |
% |
Certificates of deposit |
|
645,972 |
|
|
|
3,035 |
|
1.86 |
% |
|
|
588,212 |
|
|
|
1,452 |
|
0.98 |
% |
Interest bearing demand
accounts |
|
3,119,682 |
|
|
|
9,894 |
|
1.26 |
% |
|
|
3,164,961 |
|
|
|
5,954 |
|
0.75 |
% |
Total interest bearing deposits |
|
4,442,308 |
|
|
|
13,687 |
|
1.22 |
% |
|
|
4,439,120 |
|
|
|
7,887 |
|
0.70 |
% |
Federal Home Loan Bank
borrowings |
|
189,939 |
|
|
|
1,623 |
|
3.39 |
% |
|
|
173,838 |
|
|
|
1,078 |
|
2.46 |
% |
Subordinated notes, net of
unamortized debt issuance costs |
|
98,657 |
|
|
|
1,013 |
|
4.07 |
% |
|
|
98,621 |
|
|
|
1,004 |
|
4.04 |
% |
Trust preferred subordinated
debentures, net of unamortized debt issuance costs |
|
60,264 |
|
|
|
901 |
|
5.93 |
% |
|
|
60,263 |
|
|
|
669 |
|
4.40 |
% |
Repurchase agreements |
|
37,416 |
|
|
|
117 |
|
1.24 |
% |
|
|
30,530 |
|
|
|
54 |
|
0.70 |
% |
Other borrowings |
|
85,033 |
|
|
|
945 |
|
4.41 |
% |
|
|
98,174 |
|
|
|
673 |
|
2.72 |
% |
Total interest bearing liabilities |
|
4,913,617 |
|
|
|
18,286 |
|
1.48 |
% |
|
|
4,900,546 |
|
|
|
11,365 |
|
0.92 |
% |
Noninterest bearing
deposits |
|
1,757,568 |
|
|
|
|
|
|
|
1,746,245 |
|
|
|
|
|
Accrued expenses and other
liabilities |
|
88,024 |
|
|
|
|
|
|
|
101,881 |
|
|
|
|
|
Total liabilities |
|
6,759,209 |
|
|
|
|
|
|
|
6,748,672 |
|
|
|
|
|
Shareholders’ equity |
|
727,752 |
|
|
|
|
|
|
|
751,519 |
|
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
7,486,961 |
|
|
|
|
|
|
$ |
7,500,191 |
|
|
|
|
|
Net interest income (FTE) |
|
|
$ |
60,543 |
|
|
|
|
|
$ |
59,230 |
|
|
Net interest margin (FTE) |
|
|
|
|
3.40 |
% |
|
|
|
|
|
3.36 |
% |
Net interest spread (FTE) |
|
|
|
|
2.95 |
% |
|
|
|
|
|
3.08 |
% |
|
(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, 2022 and
September 30, 2022, loans totaling $2.8 million and $3.0
million, respectively, were on nonaccrual status. Our policy is to
reverse previously accrued but unpaid interest on nonaccrual loans;
thereafter, interest income is recorded to the extent received when
appropriate.
Southside Bancshares, Inc.Average Balances
and Average Yields and Rates (Annualized)
(Unaudited)(Dollars in thousands) |
|
|
Three Months Ended |
|
June 30, 2022 |
|
Average Balance |
|
Interest |
|
Average Yield/Rate |
ASSETS |
|
|
|
|
|
Loans (1) |
$ |
3,847,614 |
|
|
$ |
39,088 |
|
4.07 |
% |
Loans held for sale |
|
1,776 |
|
|
|
18 |
|
4.07 |
% |
Securities: |
|
|
|
|
|
Taxable investment securities (2) |
|
617,603 |
|
|
|
4,632 |
|
3.01 |
% |
Tax-exempt investment securities (2) |
|
1,653,871 |
|
|
|
13,599 |
|
3.30 |
% |
Mortgage-backed and related securities (2) |
|
417,057 |
|
|
|
3,238 |
|
3.11 |
% |
Total securities |
|
2,688,531 |
|
|
|
21,469 |
|
3.20 |
% |
Federal Home Loan Bank stock,
at cost, and equity investments |
|
17,663 |
|
|
|
77 |
|
1.75 |
% |
Interest earning deposits |
|
77,894 |
|
|
|
125 |
|
0.64 |
% |
Federal funds sold |
|
37,343 |
|
|
|
79 |
|
0.85 |
% |
Total earning assets |
|
6,670,821 |
|
|
|
60,856 |
|
3.66 |
% |
Cash and due from banks |
|
100,231 |
|
|
|
|
|
Accrued interest and other
assets |
|
446,136 |
|
|
|
|
|
Less: Allowance for loan losses |
|
(35,895 |
) |
|
|
|
|
Total assets |
$ |
7,181,293 |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’
EQUITY |
|
|
|
|
|
Savings accounts |
$ |
670,187 |
|
|
|
326 |
|
0.20 |
% |
Certificates of deposit |
|
518,104 |
|
|
|
578 |
|
0.45 |
% |
Interest bearing demand
accounts |
|
3,175,385 |
|
|
|
3,360 |
|
0.42 |
% |
Total interest bearing deposits |
|
4,363,676 |
|
|
|
4,264 |
|
0.39 |
% |
Federal Home Loan Bank
borrowings |
|
55,990 |
|
|
|
224 |
|
1.60 |
% |
Subordinated notes, net of
unamortized debt issuance costs |
|
98,586 |
|
|
|
1,000 |
|
4.07 |
% |
Trust preferred subordinated
debentures, net of unamortized debt issuance costs |
|
60,262 |
|
|
|
471 |
|
3.13 |
% |
Repurchase agreements |
|
30,055 |
|
|
|
18 |
|
0.24 |
% |
Other borrowings |
|
6,549 |
|
|
|
45 |
|
2.76 |
% |
Total interest bearing liabilities |
|
4,615,118 |
|
|
|
6,022 |
|
0.52 |
% |
Noninterest bearing
deposits |
|
1,702,985 |
|
|
|
|
|
Accrued expenses and other
liabilities |
|
98,870 |
|
|
|
|
|
Total liabilities |
|
6,416,973 |
|
|
|
|
|
Shareholders’ equity |
|
764,320 |
|
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
7,181,293 |
|
|
|
|
|
Net interest income (FTE) |
|
|
$ |
54,834 |
|
|
Net interest margin (FTE) |
|
|
|
|
3.30 |
% |
Net interest spread (FTE) |
|
|
|
|
3.14 |
% |
|
(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, loans totaling
$3.1 million were on nonaccrual status. Our policy is to reverse
previously accrued but unpaid interest on nonaccrual loans;
thereafter, interest income is recorded to the extent received when
appropriate.
Southside Bancshares, Inc.Average Balances
and Average Yields and Rates (Annualized)
(Unaudited)(Dollars in thousands) |
|
|
Six Months Ended |
|
June 30, 2023 |
|
June 30, 2022 |
|
Average Balance |
|
Interest |
|
AverageYield/Rate |
|
Average Balance |
|
Interest |
|
AverageYield/Rate |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Loans (1) |
$ |
4,163,141 |
|
|
$ |
114,787 |
|
5.56 |
% |
|
$ |
3,776,194 |
|
|
$ |
74,713 |
|
3.99 |
% |
Loans held for sale |
|
1,663 |
|
|
|
43 |
|
5.21 |
% |
|
|
1,354 |
|
|
|
26 |
|
3.87 |
% |
Securities: |
|
|
|
|
|
|
|
|
|
|
|
Taxable investment securities (2) |
|
808,803 |
|
|
|
14,485 |
|
3.61 |
% |
|
|
631,079 |
|
|
|
9,240 |
|
2.95 |
% |
Tax-exempt investment securities (2) |
|
1,627,105 |
|
|
|
32,648 |
|
4.05 |
% |
|
|
1,608,779 |
|
|
|
26,282 |
|
3.29 |
% |
Mortgage-backed and related securities (2) |
|
428,469 |
|
|
|
8,159 |
|
3.84 |
% |
|
|
491,585 |
|
|
|
7,255 |
|
2.98 |
% |
Total securities |
|
2,864,377 |
|
|
|
55,292 |
|
3.89 |
% |
|
|
2,731,443 |
|
|
|
42,777 |
|
3.16 |
% |
FHLB stock, at cost, and
equity investments |
|
26,448 |
|
|
|
624 |
|
4.76 |
% |
|
|
19,161 |
|
|
|
190 |
|
2.00 |
% |
Interest earning deposits |
|
72,177 |
|
|
|
1,775 |
|
4.96 |
% |
|
|
61,360 |
|
|
|
149 |
|
0.49 |
% |
Federal funds sold |
|
65,871 |
|
|
|
1,585 |
|
4.85 |
% |
|
|
23,077 |
|
|
|
83 |
|
0.73 |
% |
Total earning assets |
|
7,193,677 |
|
|
|
174,106 |
|
4.88 |
% |
|
|
6,612,589 |
|
|
|
117,938 |
|
3.60 |
% |
Cash and due from banks |
|
105,650 |
|
|
|
|
|
|
|
103,669 |
|
|
|
|
|
Accrued interest and other
assets |
|
408,908 |
|
|
|
|
|
|
|
522,167 |
|
|
|
|
|
Less: Allowance for loan losses |
|
(36,601 |
) |
|
|
|
|
|
|
(35,766 |
) |
|
|
|
|
Total assets |
$ |
7,671,634 |
|
|
|
|
|
|
$ |
7,202,659 |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Savings accounts |
$ |
657,192 |
|
|
|
2,743 |
|
0.84 |
% |
|
$ |
661,339 |
|
|
|
599 |
|
0.18 |
% |
CDs |
|
792,967 |
|
|
|
11,772 |
|
2.99 |
% |
|
|
540,726 |
|
|
|
1,172 |
|
0.44 |
% |
Interest bearing demand
accounts |
|
2,912,127 |
|
|
|
27,070 |
|
1.87 |
% |
|
|
3,136,890 |
|
|
|
5,730 |
|
0.37 |
% |
Total interest bearing deposits |
|
4,362,286 |
|
|
|
41,585 |
|
1.92 |
% |
|
|
4,338,955 |
|
|
|
7,501 |
|
0.35 |
% |
FHLB borrowings |
|
307,221 |
|
|
|
4,173 |
|
2.74 |
% |
|
|
89,202 |
|
|
|
590 |
|
1.33 |
% |
Subordinated notes, net of
unamortized debt issuance costs |
|
98,246 |
|
|
|
1,993 |
|
4.09 |
% |
|
|
98,569 |
|
|
|
1,998 |
|
4.09 |
% |
Trust preferred subordinated
debentures, net of unamortized debt issuance costs |
|
60,266 |
|
|
|
2,131 |
|
7.13 |
% |
|
|
60,261 |
|
|
|
827 |
|
2.77 |
% |
Repurchase agreements |
|
81,765 |
|
|
|
1,375 |
|
3.39 |
% |
|
|
25,798 |
|
|
|
28 |
|
0.22 |
% |
Other borrowings |
|
385,440 |
|
|
|
9,198 |
|
4.81 |
% |
|
|
3,525 |
|
|
|
45 |
|
2.57 |
% |
Total interest bearing liabilities |
|
5,295,224 |
|
|
|
60,455 |
|
2.30 |
% |
|
|
4,616,310 |
|
|
|
10,989 |
|
0.48 |
% |
Noninterest bearing
deposits |
|
1,539,313 |
|
|
|
|
|
|
|
1,673,145 |
|
|
|
|
|
Accrued expenses and other
liabilities |
|
82,833 |
|
|
|
|
|
|
|
87,408 |
|
|
|
|
|
Total liabilities |
|
6,917,370 |
|
|
|
|
|
|
|
6,376,863 |
|
|
|
|
|
Shareholders’ equity |
|
754,264 |
|
|
|
|
|
|
|
825,796 |
|
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
7,671,634 |
|
|
|
|
|
|
$ |
7,202,659 |
|
|
|
|
|
Net interest income (FTE) |
|
|
$ |
113,651 |
|
|
|
|
|
$ |
106,949 |
|
|
Net interest margin (FTE) |
|
|
|
|
3.19 |
% |
|
|
|
|
|
3.26 |
% |
Net interest spread (FTE) |
|
|
|
|
2.58 |
% |
|
|
|
|
|
3.12 |
% |
(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, 2023 and 2022, loans
totaling $3.0 million and $3.1 million, respectively, were on
nonaccrual status. Our policy is to reverse previously accrued but
unpaid interest on nonaccrual loans; thereafter, interest income is
recorded to the extent received when appropriate.
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 21%
marginal tax rate for interest earned on tax-exempt assets such as
municipal loans and investment securities, along with the
calculation of total revenue, adjusted noninterest expense,
efficiency ratio (FTE), net interest margin (FTE) and net interest
spread (FTE) for the applicable periods presented.
Southside Bancshares, Inc.Non-GAAP
Reconciliation (Unaudited)(Dollars and shares in
thousands, except per share data) |
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
2023 |
|
|
|
|
2022 |
|
|
|
|
2023 |
|
|
|
|
2022 |
|
|
|
|
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 |
|
$ |
24,893 |
|
|
|
$ |
26,034 |
|
|
|
$ |
27,668 |
|
|
|
$ |
26,951 |
|
|
|
$ |
25,405 |
|
|
|
$ |
50,927 |
|
|
|
$ |
50,401 |
|
|
After-tax amortization
expense |
|
|
349 |
|
|
|
|
378 |
|
|
|
|
407 |
|
|
|
|
435 |
|
|
|
|
463 |
|
|
|
|
727 |
|
|
|
|
954 |
|
|
Adjusted net income available to common shareholders |
|
$ |
25,242 |
|
|
|
$ |
26,412 |
|
|
|
$ |
28,075 |
|
|
|
$ |
27,386 |
|
|
|
$ |
25,868 |
|
|
|
$ |
51,654 |
|
|
|
$ |
51,355 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity |
|
$ |
749,827 |
|
|
|
$ |
758,750 |
|
|
|
$ |
727,752 |
|
|
|
$ |
751,519 |
|
|
|
$ |
764,320 |
|
|
|
$ |
754,264 |
|
|
|
$ |
825,796 |
|
|
Less: Average intangibles for
the period |
|
|
(205,086 |
) |
|
|
|
(205,555 |
) |
|
|
|
(206,049 |
) |
|
|
|
(206,591 |
) |
|
|
|
(207,163 |
) |
|
|
|
(205,319 |
) |
|
|
|
(207,467 |
) |
|
Average tangible shareholders' equity |
|
$ |
544,741 |
|
|
|
$ |
553,195 |
|
|
|
$ |
521,703 |
|
|
|
$ |
544,928 |
|
|
|
$ |
557,157 |
|
|
|
$ |
548,945 |
|
|
|
$ |
618,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible
common equity |
|
|
18.59 |
|
% |
|
|
19.36 |
|
% |
|
|
21.35 |
|
% |
|
|
19.94 |
|
% |
|
|
18.62 |
|
% |
|
|
18.98 |
|
% |
|
|
16.75 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of book
value per share to tangible book value per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity at end of
period |
|
$ |
765,161 |
|
|
|
$ |
751,030 |
|
|
|
$ |
745,997 |
|
|
|
$ |
707,636 |
|
|
|
$ |
731,782 |
|
|
|
$ |
765,161 |
|
|
|
$ |
731,782 |
|
|
Less: Intangible assets at end
of period |
|
|
(204,818 |
) |
|
|
|
(205,260 |
) |
|
|
|
(205,738 |
) |
|
|
|
(206,253 |
) |
|
|
|
(206,803 |
) |
|
|
|
(204,818 |
) |
|
|
|
(206,803 |
) |
|
Tangible common shareholders' equity at end of period |
|
$ |
560,343 |
|
|
|
$ |
545,770 |
|
|
|
$ |
540,259 |
|
|
|
$ |
501,383 |
|
|
|
$ |
524,979 |
|
|
|
$ |
560,343 |
|
|
|
$ |
524,979 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets at end of
period |
|
$ |
7,807,252 |
|
|
|
$ |
7,792,345 |
|
|
|
$ |
7,558,636 |
|
|
|
$ |
7,453,747 |
|
|
|
$ |
7,606,061 |
|
|
|
$ |
7,807,252 |
|
|
|
$ |
7,606,061 |
|
|
Less: Intangible assets at end
of period |
|
|
(204,818 |
) |
|
|
|
(205,260 |
) |
|
|
|
(205,738 |
) |
|
|
|
(206,253 |
) |
|
|
|
(206,803 |
) |
|
|
|
(204,818 |
) |
|
|
|
(206,803 |
) |
|
Tangible assets at end of period |
|
$ |
7,602,434 |
|
|
|
$ |
7,587,085 |
|
|
|
$ |
7,352,898 |
|
|
|
$ |
7,247,494 |
|
|
|
$ |
7,399,258 |
|
|
|
$ |
7,602,434 |
|
|
|
$ |
7,399,258 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end tangible equity to
period end tangible assets |
|
|
7.37 |
|
% |
|
|
7.19 |
|
% |
|
|
7.35 |
|
% |
|
|
6.92 |
|
% |
|
|
7.10 |
|
% |
|
|
7.37 |
|
% |
|
|
7.10 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding end
of period |
|
|
30,532 |
|
|
|
|
31,121 |
|
|
|
|
31,547 |
|
|
|
|
32,127 |
|
|
|
|
32,108 |
|
|
|
|
30,532 |
|
|
|
|
32,108 |
|
|
Tangible book value per common
share |
|
$ |
18.35 |
|
|
|
$ |
17.54 |
|
|
|
$ |
17.13 |
|
|
|
$ |
15.61 |
|
|
|
$ |
16.35 |
|
|
|
$ |
18.35 |
|
|
|
$ |
16.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
$ |
53,916 |
|
|
|
$ |
53,353 |
|
|
|
$ |
56,842 |
|
|
|
$ |
55,515 |
|
|
|
$ |
51,078 |
|
|
|
$ |
107,269 |
|
|
|
$ |
99,984 |
|
|
Tax-equivalent
adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
673 |
|
|
|
|
697 |
|
|
|
|
744 |
|
|
|
|
742 |
|
|
|
|
762 |
|
|
|
|
1,370 |
|
|
|
|
1,507 |
|
|
Tax-exempt investment securities |
|
|
2,462 |
|
|
|
|
2,550 |
|
|
|
|
2,957 |
|
|
|
|
2,973 |
|
|
|
|
2,994 |
|
|
|
|
5,012 |
|
|
|
|
5,458 |
|
|
Net interest income (FTE)
(1) |
|
|
57,051 |
|
|
|
|
56,600 |
|
|
|
|
60,543 |
|
|
|
|
59,230 |
|
|
|
|
54,834 |
|
|
|
|
113,651 |
|
|
|
|
106,949 |
|
|
Noninterest income |
|
|
10,464 |
|
|
|
|
12,033 |
|
|
|
|
10,766 |
|
|
|
|
10,269 |
|
|
|
|
9,097 |
|
|
|
|
22,497 |
|
|
|
|
19,822 |
|
|
Nonrecurring income (2) |
|
|
226 |
|
|
|
|
(1,221 |
) |
|
|
|
— |
|
|
|
|
99 |
|
|
|
|
2,177 |
|
|
|
|
(995 |
) |
|
|
|
2,883 |
|
|
Total revenue |
|
$ |
67,741 |
|
|
|
$ |
67,412 |
|
|
|
$ |
71,309 |
|
|
|
$ |
69,598 |
|
|
|
$ |
66,108 |
|
|
|
$ |
135,153 |
|
|
|
$ |
129,654 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense |
|
$ |
34,993 |
|
|
|
$ |
34,849 |
|
|
|
$ |
33,561 |
|
|
|
$ |
33,464 |
|
|
|
$ |
32,106 |
|
|
|
$ |
69,842 |
|
|
|
$ |
63,301 |
|
|
Pre-tax amortization
expense |
|
|
(442 |
) |
|
|
|
(478 |
) |
|
|
|
(515 |
) |
|
|
|
(550 |
) |
|
|
|
(586 |
) |
|
|
|
(920 |
) |
|
|
|
(1,208 |
) |
|
Nonrecurring expense (3) |
|
|
36 |
|
|
|
|
3 |
|
|
|
|
26 |
|
|
|
|
87 |
|
|
|
|
39 |
|
|
|
|
39 |
|
|
|
|
61 |
|
|
Adjusted noninterest expense |
|
$ |
34,587 |
|
|
|
$ |
34,374 |
|
|
|
$ |
33,072 |
|
|
|
$ |
33,001 |
|
|
|
$ |
31,559 |
|
|
|
$ |
68,961 |
|
|
|
$ |
62,154 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
|
|
53.54 |
|
% |
|
|
53.57 |
|
% |
|
|
48.92 |
|
% |
|
|
50.09 |
|
% |
|
|
50.61 |
|
% |
|
|
53.55 |
|
% |
|
|
50.66 |
|
% |
Efficiency ratio (FTE) (1) |
|
|
51.06 |
|
% |
|
|
50.99 |
|
% |
|
|
46.38 |
|
% |
|
|
47.42 |
|
% |
|
|
47.74 |
|
% |
|
|
51.02 |
|
% |
|
|
47.94 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average earning assets |
|
$ |
7,225,168 |
|
|
|
$ |
7,161,836 |
|
|
|
$ |
7,059,115 |
|
|
|
$ |
6,999,525 |
|
|
|
$ |
6,670,821 |
|
|
|
$ |
7,193,677 |
|
|
|
$ |
6,612,589 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
|
2.99 |
|
% |
|
|
3.02 |
|
% |
|
|
3.19 |
|
% |
|
|
3.15 |
|
% |
|
|
3.07 |
|
% |
|
|
3.01 |
|
% |
|
|
3.05 |
|
% |
Net interest margin (FTE) (1) |
|
|
3.17 |
|
% |
|
|
3.21 |
|
% |
|
|
3.40 |
|
% |
|
|
3.36 |
|
% |
|
|
3.30 |
|
% |
|
|
3.19 |
|
% |
|
|
3.26 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread |
|
|
2.37 |
|
% |
|
|
2.44 |
|
% |
|
|
2.74 |
|
% |
|
|
2.87 |
|
% |
|
|
2.91 |
|
% |
|
|
2.40 |
|
% |
|
|
2.90 |
|
% |
Net interest spread (FTE) (1) |
|
|
2.55 |
|
% |
|
|
2.62 |
|
% |
|
|
2.95 |
|
% |
|
|
3.08 |
|
% |
|
|
3.14 |
|
% |
|
|
2.58 |
|
% |
|
|
3.12 |
|
% |
(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. |
Grafico Azioni Southside Bancshares (NASDAQ:SBSI)
Storico
Da Gen 2025 a Feb 2025
Grafico Azioni Southside Bancshares (NASDAQ:SBSI)
Storico
Da Feb 2024 a Feb 2025