Financial Performance - Total interest and dividend income for Q1 2025 was $100,288,000, a decrease of 1.43% from $102,758,000 in Q1 2024[13] - Net interest income after provision for credit losses was $53,094,000 in Q1 2025, slightly down from $53,290,000 in Q1 2024[13] - Noninterest income increased to $10,223,000 in Q1 2025, compared to $9,724,000 in Q1 2024, reflecting a growth of 5.14%[13] - Net income for Q1 2025 was $21,507,000, a marginal decrease from $21,511,000 in Q1 2024[13] - Earnings per common share remained stable at $0.71 for both Q1 2025 and Q1 2024[13] - The provision for credit losses was $758,000 in Q1 2025, compared to a reversal of $58,000 in Q1 2024[13] - Net income for the three months ended March 31, 2025, was $21,507,000, slightly down from $21,511,000 in the same period of 2024[18] - Net cash provided by operating activities decreased to $23,940,000 from $58,292,000 year-over-year[18] - The company reported a net change in deposits of $(63,422,000) for the quarter, compared to $(3,926,000) in the previous year[19] - The company experienced a net loss on consumer receivables of $0 for the current quarter, compared to a loss of $512,000 in the previous year[18] Assets and Liabilities - Total liabilities and shareholders' equity decreased from $8,517,448,000 in the previous quarter to $8,343,300,000[12] - The balance of total shareholders' equity increased to $816,623,000 as of March 31, 2025, from $811,942,000 at the end of 2024[16] - Total cash and cash equivalents at the end of the period were $430,971,000, compared to $469,373,000 at the end of the same period in 2024[19] - Total loans amounted to $4.567 billion as of March 31, 2025, down from $4.662 billion as of December 31, 2024[46] - The allowance for loan losses was $44.623 million as of March 31, 2025, compared to $44.884 million as of December 31, 2024[46] - Total deposits decreased to $6.591 billion at March 31, 2025, from $6.654 billion at December 31, 2024, reflecting a decline of about 1%[113] - The company's securities portfolio decreased by 2.7% from $2.81 billion at December 31, 2024, to $2.74 billion at March 31, 2025[153] Loan Performance - Total nonperforming assets increased to $32.2 million as of March 31, 2025, compared to $3.6 million as of December 31, 2024[59] - The company reported $4.25 million in nonaccrual loans as of March 31, 2025, up from $3.19 million at the end of 2024[59] - Restructured loans rose significantly to $27.5 million due to the extension of maturity on a commercial real estate loan[60] - The total past due loans amounted to $13.06 million as of March 31, 2025, with a total current loan balance of $4.55 billion[58] - The company reported a total of $613 thousand in current period gross charge-offs across all loan categories[56] - The company recorded a provision for credit losses of $42,000 for the three months ended March 31, 2025, down from $1.2 million in the same period in 2024[200] Capital and Equity - Total shareholders' equity increased by $4.7 million, or 0.6%, to $816.6 million, representing 9.8% of total assets as of March 31, 2025[202] - The company met all capital adequacy requirements as of March 31, 2025, and intends to maintain capital at levels acceptable to regulatory authorities[207] - Common Equity Tier 1 ratio for consolidated was 13.44% and for bank only was 15.58% as of March 31, 2025[208] - Average shareholders' equity to average total assets increased to 9.75% as of March 31, 2025, compared to 9.35% for the same period in 2024[210] Interest Rates and Funding - The weighted average interest rate on other borrowings was 5.3% for the three months ended March 31, 2025, down from 5.7% at December 31, 2024[67] - The average yield on interest earning assets decreased to 5.23% from 5.38% for the three months ended March 31, 2025, compared to the same period in 2024[168] - Total wholesale funding as a percentage of deposits decreased to 19.2% from 24.9% at December 31, 2024[159] - Brokered deposits decreased to $546.1 million at March 31, 2025, from $742.8 million at December 31, 2024[160] - The company has access to approximately $1.79 billion in additional funding from FHLB, collateralized by securities and loans[211] Tax and Regulatory - The income tax expense for the three months ended March 31, 2025, was $4.721 million, resulting in an effective tax rate (ETR) of 18.0%, compared to $4.622 million and an ETR of 17.7% for the same period in 2024[115] - The effective tax rate (ETR) increased to 18.0% for the three months ended March 31, 2025, compared to 17.7% for the same period in 2024, mainly due to higher state income tax expenses[185] Future Plans - In March 2025, the company announced plans to open a new branch in Bellwood Park, Tyler, Texas in 2026[214]

Southside Bancshares (SBSI) Q1 2025 Earnings Call April 29, 2025 04:39 PM ET Speaker0 Good day, and thank you for standing by. Welcome to the Southside Bancshares Inc. First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. After the speakers presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw ...

This quarterly report represents an earnings surprise of 5.97%. A quarter ago, it was expected that this holding company for Southside Bank would post earnings of $0.71 per share when it actually produced earnings of $0.72, delivering a surprise of 1.41%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Southside Bancshares, which belongs to the Zacks Banks - Southwest industry, posted revenues of $66.43 million for the quarter ended March 2025, missing the Zacks Con ...

First quarter net income of $21.5 million;First quarter earnings per diluted common share of $0.71;Annualized return on first quarter average assets of 1.03%;Annualized return on first quarter average tangible common equity of 14.14%(1); andNonperforming assets remain low at 0.39% of total assets. TYLER, Texas, April 29, 2025 (GLOBE NEWSWIRE) -- Southside Bancshares, Inc. (“Southside” or the “Company”) (NYSE: SBSI) today reported its financial results for the quarter ended March 31, 2025. Southside reported ...

EXHIBIT 99.1 SOUTHSIDE BANCSHARES, INC. ANNOUNCES FINANCIAL RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2025 Tyler, Texas (April 29, 2025) Southside Bancshares, Inc. ("Southside" or the "Company") (NYSE: SBSI) today reported its financial results for the quarter ended March 31, 2025. Southside reported net income of $21.5 million and earnings per diluted common share of $0.71 for both of the three month periods ended March 31, 2025 and 2024. The annualized return on average shareholders' equity for the th ...

Core Points - Southside Bancshares, Inc. will release its first quarter financial results on April 29, 2025, before market opens [1] - A conference call to discuss the results will be held on the same day at 11:00 a.m. CST [1][2] - The call will feature CEO Lee R. Gibson, President Keith Donahoe, CFO Julie Shamburger, and VP of Investor Relations Lindsey Bailes [2] Conference Call Details - The conference call can be accessed via webcast for listen-only mode on the company website [3] - Participants wishing to join the Q&A session can register online to receive the dial-in number and unique access code [4] - A recording of the webcast will be available for at least 30 days after the event [5] Company Overview - Southside Bancshares, Inc. is headquartered in Tyler, Texas, with approximately $8.52 billion in assets as of December 31, 2024 [6] - The company operates 53 branches and a network of 72 ATMs/ITMs across East Texas and major metropolitan areas [6] - Southside Bank offers a full range of financial products and services, including loans, mortgages, deposit accounts, and wealth management [6]

Financial Performance - For the year ended December 31, 2024, net income was $88.5 million, compared to $86.7 million in 2023, representing a year-over-year increase of approximately 2.1%[18] - Diluted earnings per common share for 2024 was $2.91, up from $2.82 in 2023, indicating a growth of 3.2%[18] - The company's results of operations are primarily dependent on net interest income, which is influenced by interest rates and competitive conditions[270] Assets and Capital - As of December 31, 2024, total assets were $8.52 billion, total loans were $4.66 billion, total deposits were $6.65 billion, and total equity was $811.9 million[18] - As of December 31, 2024, Southside Bancshares, Inc. reported a Common Equity Tier 1 risk-based capital ratio of 13.04%, significantly above the regulatory minimum of 4.50%[65] - The Tier 1 risk-based capital ratio for Southside Bank was 14.07%, exceeding the required minimum of 6.00%[65] - The total risk-based capital ratio for Southside Bancshares, Inc. was 16.49%, well above the minimum requirement of 8.00%[65] - The leverage ratio for Southside Bank stood at 9.67%, surpassing the minimum requirement of 4.00%[65] - The Company and the Bank are expected to continue exceeding all applicable well-capitalized regulatory capital requirements in 2025[64] Regulatory Environment - The Company is subject to regulation and supervision by the Federal Reserve and the FDIC, ensuring compliance with capital adequacy standards[47] - Changes in federal and state laws could materially impact the profitability and business practices of the Company[45] - The Federal Reserve may require bank holding companies to maintain capital ratios substantially in excess of mandated minimum levels based on economic conditions[61] - The bank holding company must guarantee compliance of any subsidiary bank that becomes "undercapitalized" with capital restoration plans, up to 5% of the institution's total assets[69] - The Dodd-Frank Act mandates that financial institutions with over $1 billion in assets must have incentive compensation arrangements that do not encourage inappropriate risks[73] Competition and Market Conditions - The company faces competition from various financial institutions, including credit unions and fintech companies, which continue to increase in the financial services market[33] - The Texas markets served by the company continue to show healthy job and population growth, despite potential negative impacts from higher inflation and elevated interest rates[32] - The banking industry has faced significant challenges, including bank failures in the first half of 2023, leading to increased market volatility and decreased customer confidence in regional banks[147] Risk Factors - The company is subject to credit quality risks, which may not be sufficiently mitigated by existing credit policies, especially during economic downturns[130] - A decline in the real estate market could significantly impair the value of collateral underlying loans, potentially increasing the allowance for loan losses[132] - Cybersecurity risks are heightened due to reliance on electronic communications and information systems, with potential for significant financial losses from breaches[135] - The evolving legal and regulatory environment surrounding artificial intelligence (AI) presents challenges, including compliance costs and risks of erroneous outputs[138] - General economic conditions, including inflation and recession, could adversely affect loan delinquencies and the value of collateral securing loans[139] Employee and Workplace Culture - Approximately 778 full-time equivalent employees were employed as of December 31, 2024, with an average employee tenure exceeding eight years[34] - The company was awarded "Best Banks to Work For" by American Banker for the third consecutive year in 2024[36] Liquidity and Funding - The principal source of liquidity at the parent company level is dividends from the Bank, which are subject to federal and state restrictions[71] - The company has established liquidity policies and regularly monitors its liquidity position to manage funding sources effectively[168] - The company may face challenges in maintaining liquidity, especially during periods of market volatility similar to the Great Recession of 2008[171] Technology and Innovation - The financial services industry is experiencing rapid technological changes, and the company's future success depends on its ability to effectively implement new technology-driven products and services[151] - The company faces risks from technological changes that allow customers to bypass traditional banking services, potentially leading to loss of deposits and fee income[186] Environmental, Social, and Governance (ESG) Issues - The company faces increasing scrutiny related to ESG (Environmental, Social, and Governance) issues, which could impact its reputation and operational costs[142] - Potential negative publicity from clients or business partners could affect the company's ability to attract and retain clients, impacting stock price[144] - The company may incur increased costs related to ESG efforts, and negative perceptions could adversely affect its reputation and stock price[145] Securities and Investments - The company's securities portfolio increased by 8.1%, from $2.60 billion at December 31, 2023, to $2.81 billion at December 31, 2024[261] - The company purchased $655.6 million in short-term U.S. Treasury Bills and $532.3 million in low premium MBS during the year ended December 31, 2024[262] - As of December 31, 2024, securities accounted for 33.0% of total assets, up from 31.4% at December 31, 2023[263] Loan Portfolio and Credit Quality - Approximately 82.8% of the company's loans are secured by real estate as of December 31, 2024, indicating a high concentration of real estate-backed loans[132] - Energy loans constitute approximately 2.51% of the company's loan portfolio, indicating exposure to fluctuations in crude oil prices, which ranged from $66 to $91 per barrel in 2023[178] - The allowance for loan losses may be insufficient, as economic conditions and borrower credit risks could necessitate increases in the allowance, impacting net income and capital[162]

Group 1 - The earnings of Southside Bancshares, Inc. (NYSE: SBSI) are expected to benefit from an improvement in loan growth [1] - The net interest margin is likely to dip slightly this year, which will restrict earnings growth [1] - Earnings per share projections are anticipated to reflect these changes [1]

Core Viewpoint - Southside Bancshares, Inc. reported strong financial results for the fourth quarter and the year ended December 31, 2024, with significant increases in net income and earnings per share compared to the previous year. Financial Performance - For the fourth quarter of 2024, net income was $21.8 million, a 25.8% increase from $17.3 million in the same period of 2023 [1][3] - Earnings per diluted common share rose to $0.71, up 24.6% from $0.57 in the fourth quarter of 2023 [1][3] - Annualized return on average shareholders' equity for the fourth quarter was 10.54%, compared to 9.31% in the same period of 2023 [1][3] - For the full year 2024, net income increased to $88.5 million, a 2.1% rise from $86.7 million in 2023 [2][11] - Earnings per share for the year were $2.91, up 3.2% from $2.82 in 2023 [2][11] Loan and Deposit Growth - Loan growth for 2024 was 3.0%, with a linked quarter increase of $83.5 million, or 7.3% annualized, primarily occurring in December [2] - Total loans as of December 31, 2024, were $4.66 billion, an increase of $137.1 million from $4.52 billion at the end of 2023 [17] - Deposits increased to $6.65 billion, a 1.6% rise from $6.55 billion at the end of 2023 [19] Noninterest Income and Expenses - Noninterest income for the fourth quarter was $12.3 million, a significant increase of 391.0% from $2.5 million in the same period of 2023 [6] - Noninterest expense increased by $3.0 million, or 8.5%, to $38.2 million for the fourth quarter compared to $35.2 million in 2023 [9] - The efficiency ratio for the fourth quarter was 56.08%, compared to 53.30% in the same period of 2023 [3] Asset Quality - Nonperforming assets decreased to $3.6 million, or 0.04% of total assets, down from $4.0 million, or 0.05%, at the end of 2023 [24] - The allowance for loan losses was $44.9 million, or 0.96% of total loans, as of December 31, 2024 [25] Balance Sheet Highlights - Total assets as of December 31, 2024, were $8.52 billion, an increase from $8.28 billion at the end of 2023 [17][40] - Securities increased to $2.81 billion, an 8.1% rise from $2.60 billion at the end of 2023 [18] - The company had total available contingent liquidity of $2.23 billion as of December 31, 2024 [23]

Financial Performance - Net income for Q4 2024 was $21.8 million, an increase of $4.5 million, or 25.8%, compared to Q4 2023[2] - Earnings per diluted common share for Q4 2024 increased to $0.71, up $0.14, or 24.6%, from $0.57 in Q4 2023[2] - For the year ended December 31, 2024, net income was $88.5 million, an increase of $1.8 million, or 2.1%, compared to 2023[9] - Net income for Q4 2024 was $21,786,000, an increase of 6.1% from $20,524,000 in Q3 2024[43] - Adjusted net income available to common shareholders for the year ended December 31, 2024, was $89,419 million, compared to $88,033 million in 2023, reflecting a growth of 1.6%[73] Income and Expenses - Noninterest income for Q4 2024 was $12.3 million, an increase of $9.8 million, or 391.0%, compared to $2.5 million in Q4 2023[5] - Total interest and dividend income for Q4 2024 was $101,689,000, a decrease of 3.0% from $105,703,000 in Q3 2024[43] - Net interest income after provision for credit losses was $52,323,000, slightly down from $53,075,000 in the previous quarter[43] - Total noninterest expense rose to $38,159,000, up from $36,332,000 in Q3 2024, reflecting a 5.0% increase[43] - The efficiency ratio for the three months ended December 31, 2024, was 56.08%, compared to 53.94% in the previous quarter, showing a decline in efficiency[73] Assets and Liabilities - Total assets increased to $8.52 billion at December 31, 2024, compared to $8.28 billion at December 31, 2023[13] - Total deposits increased to $6.65 billion as of December 31, 2024, compared to $6.55 billion in the previous quarter[41] - Total liabilities increased to $7,604,020 thousand, while shareholders' equity rose to $822,234 thousand as of December 31, 2024[60] - Total assets at the end of the period reached $8,517,448 million, up from $8,362,263 million in the previous quarter, indicating a growth of 1.8%[73] Loans and Credit Quality - Loans increased to $4.66 billion at December 31, 2024, an increase of $137.1 million, or 3.0%, compared to the previous year[14] - The allowance for loan losses was $44.9 million, or 0.96% of total loans, at December 31, 2024, compared to $42.7 million, or 0.94%, at December 31, 2023[22] - Nonperforming assets decreased to $3.6 million, or 0.04% of total assets, down from $4.0 million, or 0.05%, at December 31, 2023[21] - The provision for credit losses decreased significantly to $3,346 thousand in 2024 from $9,154 thousand in 2023, a decline of 63.5%[51] - The ratio of nonaccruing loans to total loans improved to 0.07% in 2024 from 0.09% in 2023[54] Dividends and Shareholder Returns - The company declared a fourth quarter cash dividend of $0.36 per share, paid on December 6, 2024[25] - Cash dividends paid per common share remained stable at $0.36 for Q4 2024, consistent with the previous quarters[43] - Cash dividends paid per common share increased to $1.44 in 2024 from $1.42 in 2023[51] Future Outlook - The company anticipates mid-single digit loan growth for 2025, which should lead to an increasing net interest margin[3] - The company plans to continue monitoring loan performance and interest income recognition policies to optimize financial outcomes[67]