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 ...

[Financial Performance Summary (Q1 2025)](index=1&type=section&id=Financial%20Performance%20Summary%20(Q1%202025)) Southside Bancshares maintained stable Q1 2025 net income and EPS, showing improved net interest margin and strong capital [Overview of Q1 2025 Results](index=1&type=section&id=Overview%20of%20Q1%202025%20Results) Southside Bancshares reported stable Q1 2025 net income and diluted EPS, with an increased net interest margin and anticipated mid-single-digit loan growth for the full year Key Performance Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $21.5 million | $21.5 million | | Diluted EPS | $0.71 | $0.71 | | Return on Average Assets (Annualized) | 1.03% | 1.03% | | Return on Average Shareholders' Equity (Annualized) | 10.57% | 11.02% | | Return on Average Tangible Common Equity (Annualized) | 14.14% | 15.07% | - CEO Lee R. Gibson highlighted a linked-quarter net interest margin increase of **3 basis points to 2.86%** and growth in core deposits (net of public fund and brokered deposits) of **$91.9 million**[3](index=3&type=chunk) - The company anticipates **mid-single-digit loan growth for 2025**, but expects it to be concentrated in the second half of the year due to loan payoffs exceeding projections in Q1[3](index=3&type=chunk) [Detailed Operating Results](index=1&type=section&id=Detailed%20Operating%20Results) Q1 2025 operating results showed slight increases in net interest income, year-over-year growth in noninterest income, and a linked-quarter decrease in noninterest expenses [Net Interest Income (NII)](index=1&type=section&id=Net%20Interest%20Income%20(NII)) Net interest income for Q1 2025 increased to **$53.9 million** year-over-year and linked-quarter, with the tax-equivalent net interest margin rising to **2.86%** Net Interest Income and Margin | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Net Interest Income | $53.9 million | $53.7 million | $53.3 million | | Net Interest Margin (Tax-Equivalent) | 2.86% | 2.83% | 2.86% | - The increase in NII was driven by a lower average rate on interest-bearing liabilities and a higher average balance of interest-earning assets, which offset a decrease in the average yield of those assets[4](index=4&type=chunk) [Noninterest Income](index=1&type=section&id=Noninterest%20Income) Noninterest income for Q1 2025 increased **5.1%** year-over-year to **$10.2 million**, driven by loan sales and trust fees, but decreased **16.8%** linked-quarter due to lower swap fees and AFS security losses - Year-over-year growth was driven by increases in gain on sale of loans and trust fees, partially offset by a higher net loss on the sale of AFS securities[5](index=5&type=chunk) - The linked-quarter decrease was primarily due to a reduction in other noninterest income (specifically swap fee income), a larger net loss on AFS security sales, and lower deposit services income[5](index=5&type=chunk) [Noninterest Expense](index=1&type=section&id=Noninterest%20Expense) Noninterest expense in Q1 2025 increased **0.6%** year-over-year to **$37.1 million** but decreased **2.8%** linked-quarter due to lower salaries and occupancy costs - Compared to Q1 2024, expenses rose due to increases in other noninterest expense and professional fees, which were partially offset by lower salaries and benefits[6](index=6&type=chunk) - Compared to Q4 2024, expenses fell due to decreases in salaries and employee benefits, net occupancy, other noninterest expense, and professional fees[6](index=6&type=chunk) [Balance Sheet Analysis](index=2&type=section&id=Balance%20Sheet%20Analysis) As of March 31, 2025, total assets decreased slightly to **$8.34 billion**, with loans declining **2.0%** linked-quarter to **$4.57 billion**, while total deposits were **$6.59 billion** Balance Sheet Summary | Balance Sheet Item | Mar 31, 2025 | Dec 31, 2024 | Mar 31, 2024 | | :--- | :--- | :--- | :--- | | Total Assets | $8.34 billion | $8.52 billion | $8.35 billion | | Total Loans | $4.57 billion | $4.66 billion | $4.58 billion | | Total Securities | $2.74 billion | $2.81 billion | $2.71 billion | | Total Deposits | $6.59 billion | $6.65 billion | $6.55 billion | [Loan Portfolio](index=2&type=section&id=Loan%20Portfolio) The loan portfolio decreased **2.0%** linked-quarter to **$4.57 billion** in Q1 2025, primarily due to construction loan payoffs, yet the company forecasts mid-single-digit growth for the full year - The linked-quarter loan decrease was mainly due to payoffs in construction loans (-**$79.7 million**) and municipal loans (-**$19.7 million**), which outpaced growth in commercial loans (+**$8.5 million**)[10](index=10&type=chunk) Loan Portfolio by Category | Loan Category | Balance (Mar 31, 2025) | | :--- | :--- | | Commercial Real Estate | $2.58 billion | | 1-4 Family Residential | $741.4 million | | Construction | $458.1 million | | Commercial Loans | $371.6 million | | Municipal Loans | $371.3 million | | Loans to Individuals | $47.6 million | | **Total Loans** | **$4.57 billion** | [Deposits](index=2&type=section&id=Deposits) Total deposits reached **$6.59 billion** at quarter-end, with the cost of total deposits decreasing to **2.26%** and uninsured deposits estimated at **20.8%** after collateralization - The cost of interest-bearing deposits decreased **9 basis points** linked-quarter to **2.83%**, and the cost of total deposits decreased **5 basis points** linked-quarter to **2.26%**[12](index=12&type=chunk) - Estimated uninsured deposits were **40.0%** of total deposits. Excluding collateralized public funds and affiliate deposits, the estimated uninsured and uncollateralized portion was **20.8%**[12](index=12&type=chunk) [Asset Quality](index=2&type=section&id=Asset%20Quality) Asset quality saw nonperforming assets increase significantly to **$32.2 million** or **0.39%** of total assets, primarily due to a restructured commercial real estate loan, while the allowance for loan losses was **0.98%** - Nonperforming assets increased by **$28.6 million** linked-quarter, mainly due to a **$27.5 million** commercial real estate loan being moved to restructured status to allow for an extended lease-up period[16](index=16&type=chunk) Asset Quality Metrics | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Nonperforming Assets | $32.2 million | $3.6 million | $8.0 million | | NPA / Total Assets | 0.39% | 0.04% | 0.10% | | Allowance for Loan Losses / Total Loans | 0.98% | 0.96% | 0.95% | | Net Charge-offs | $0.3 million | $1.0 million | $0.3 million | - The provision for credit losses for loans was **$42,000** in Q1 2025, a significant decrease from **$1.6 million** in Q4 2024 and **$1.2 million** in Q1 2024[18](index=18&type=chunk) [Capital and Liquidity](index=2&type=section&id=Capital%20and%20Liquidity) The company maintained a strong capital position with a Common Equity Tier 1 ratio of **13.44%** and substantial contingent liquidity of **$2.29 billion**, resuming share buybacks post-quarter-end Capital Ratios | Capital Ratio | Mar 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Common Equity Tier 1 | 13.44% | 13.04% | | Tier 1 Risk-Based Capital | 14.49% | 14.07% | | Total Risk-Based Capital | 17.01% | 16.49% | | Tier 1 Leverage | 9.73% | 9.67% | - Total available contingent liquidity, net of outstanding borrowings, was **$2.29 billion** from sources including FHLB advances and the Federal Reserve Discount Window[15](index=15&type=chunk) - No common stock was repurchased during Q1 2025. However, subsequent to quarter-end, the company purchased **196,419 shares** at an average price of **$26.82**[14](index=14&type=chunk) [Dividends](index=4&type=section&id=Dividends) Southside Bancshares, Inc. continued its return of capital to shareholders by declaring a first-quarter cash dividend of **$0.36 per share** - A cash dividend of **$0.36 per share** was declared on February 6, 2025, and paid on March 6, 2025[20](index=20&type=chunk)

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]

Southside Bancshares (SBSI) Q4 2024 Earnings Call January 29, 2025 12:00 PM ET Company Participants Lindsey Bailes - VP-IRLee Gibson - CEOJulie Shamburger - CFOWoody Lay - Vice PresidentJordan Ghent - Senior Research AssociateTim Mitchell - Equity Research Associate Operator Good day and thank you for standing by. Welcome to the Southside Bancshares 4th Quarter and Year End 2024 Earnings Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a questio ...

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]

Company Overview - Southside Bancshares, Inc. is a bank holding company headquartered in Tyler, Texas, with approximately $8.36 billion in assets as of September 30, 2024 [6] - The company operates 53 branches and a network of 72 ATMs/ITMs throughout East Texas, Southeast Texas, and the greater Dallas/Fort Worth, Austin, and Houston areas [6] - Southside Bank has been serving customers since 1960 and offers a full range of financial products and services, including consumer and commercial loans, mortgages, deposit accounts, and wealth management [6] Upcoming Financial Results - Southside Bancshares, Inc. will release its fourth quarter and year-end financial results before the market opens on January 29, 2025 [1] - A conference call to discuss the results will be held on January 29, 2025, at 11:00 a.m. CST [1][2] - The call will be hosted by CEO Lee R. Gibson, CFO Julie Shamburger, and VP of Investor Relations Lindsey Bailes, followed by a question and answer session for analysts [2] Conference Call Access - The conference call can be accessed via webcast for listen-only mode on the company website [3] - Participants wishing to join the question and answer session can register online to receive the dial-in number and unique code [4] - A recording of the webcast will be available for at least 30 days after the live event [5]

Core Points - Southside Bancshares, Inc. declared a regular quarterly cash dividend of $0.36 per common share, scheduled for payment on December 6, 2024, to shareholders of record on November 21, 2024 [1] - As of September 30, 2024, Southside Bancshares, Inc. has approximately $8.36 billion in assets [2] - Southside Bank operates 53 branches and a network of 72 ATMs/ITMs across East Texas, Southeast Texas, and major metropolitan areas including Dallas/Fort Worth, Austin, and Houston [2] - The bank offers a comprehensive range of financial products and services, including consumer and commercial loans, mortgages, deposit accounts, treasury management, and wealth management [2]