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]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Southside Bancshares (SBSI) as a strong candidate for value investors due to its attractive financial metrics and Zacks Rank of 2 (Buy) [4][7]. Financial Metrics - SBSI has a Forward P/E ratio of 10.90, significantly lower than the industry average of 14.04, indicating potential undervaluation [4]. - The stock's P/B ratio stands at 1.21, compared to the industry's average of 1.98, suggesting that SBSI is undervalued relative to its book value [5]. - SBSI's P/CF ratio is 9.93, which is attractive when compared to the industry's average of 16.98, further supporting the notion of undervaluation [6]. Historical Performance - Over the past year, SBSI's Forward P/E has fluctuated between 8.93 and 13.13, with a median of 10.83, indicating a stable valuation range [4]. - The P/B ratio has varied from 0.98 to 1.35, with a median of 1.17, reflecting consistent valuation metrics [5]. - The P/CF ratio has seen a range from 6.51 to 10.98, with a median of 8.86, reinforcing the stock's cash flow attractiveness [6]. Investment Outlook - Given the strength of its earnings outlook and favorable financial metrics, SBSI is positioned as one of the strongest value stocks in the market [7].

Core Viewpoint - Southside Bancshares, Inc. is transferring its common stock listing from Nasdaq to the New York Stock Exchange, effective November 15, 2024, under the ticker symbol "SBSI" [1][2]. Company Overview - Southside Bancshares, Inc. is headquartered in Tyler, Texas, and has approximately $8.36 billion in assets as of the end of 2023 [3]. - The company operates 53 branches and two loan production offices, along with a network of 72 ATMs/ITMs across East Texas, Southeast Texas, Dallas/Fort Worth, and Austin [3]. - Since its IPO in 1998, Southside has experienced significant growth, surpassing $1 billion in assets in 2000 and reaching nearly $8.5 billion by the end of 2023 [2]. Market Position - The CEO of Southside Bancshares expressed excitement about joining the NYSE, highlighting the strong and fast-growing markets in Texas [2]. - The NYSE's Global Head of Listings welcomed Southside as a valuable addition to its community, which includes numerous Texas-based companies and leading banks [3].

Financial Performance - Net income for the three months ended September 30, 2024, was $20,524,000, up 11.7% from $18,449,000 in the same period of 2023[9]. - Earnings per common share (basic and diluted) for the three months ended September 30, 2024, were both $0.68, compared to $0.60 in the same period of 2023, representing a 13.3% increase[8]. - Net income for the nine months ended September 30, 2024, was $66,708,000, compared to $69,376,000 for the same period in 2023, indicating a decrease of about 3.8%[12]. - The company reported a comprehensive income of $12,979,000 for the three months ended September 30, 2024, compared to a loss of $20,835,000 in the same period of 2023[9]. - Pre-tax income for the three months ended September 30, 2024, was $24.9 million, an increase from $21.6 million in the same period of 2023, representing a growth of 15.5%[125]. Asset and Liability Management - Total assets increased to $8,362,263 thousand as of September 30, 2024, compared to $8,284,914 thousand at December 31, 2023, reflecting a growth of 0.94%[6]. - Total liabilities increased to $7,557,009 thousand from $7,511,626 thousand, reflecting a growth of 0.61%[7]. - Total deposits decreased to $6,435,702 thousand from $6,549,681 thousand, representing a decline of 1.74%[7]. - Total shareholders' equity increased to $805,254 thousand, up from $773,288 thousand, marking a growth of 4.13%[7]. - The allowance for loan losses increased to $44,276 thousand from $42,674 thousand, indicating a rise of 3.76%[6]. Loan and Deposit Activity - Net loans rose to $4,533,772 thousand, up from $4,481,836 thousand, indicating an increase of 1.16%[6]. - The net change in deposits for the nine months ended September 30, 2024, was $(114,005,000), a decrease from $151,446,000 in the same period of 2023[14]. - Total loans increased to $4,578,048 million, with a current period gross charge-off of $2,128 million[49]. - Loans to individuals reached $22,792 million, a slight increase from $15,520 million, reflecting a growth of 46.8%[50]. - The total amount of pass watch loans in commercial real estate was $24,300 million, down from $34,424 million, a decrease of 29.5%[50]. Interest Income and Expense - Total interest income for the three months ended September 30, 2024, was $105,703,000, an increase of 13.9% from $93,078,000 in the same period of 2023[8]. - Total interest expense for Q3 2024 increased by $10.4 million, or 26.2%, to $50.2 million compared to $39.8 million in Q3 2023[107]. - Net interest income after provision for credit losses increased to $53,075,000 for the three months ended September 30, 2024, compared to $46,286,000 in the prior year, reflecting a growth of 14.9%[8]. - The average yield on interest earning assets increased to 5.51% from 5.15% for the same period in 2023[110]. - The average rate on interest bearing liabilities increased to 3.28% from 2.84% for the same period in 2023[110]. Noninterest Income and Expense - Total noninterest income for the three months ended September 30, 2024, was $8,171,000, a decrease of 24.5% from $10,836,000 in the same period of 2023[8]. - Total noninterest expense for the three months ended September 30, 2024, was $36,332,000, an increase of 2.2% from $35,553,000 in the same period of 2023[8]. - Salaries and employee benefits increased by 4.7% to $22.23 million for the three months ended September 30, 2024, compared to $21.24 million in 2023[122]. - Other noninterest income decreased by 35.4% to $2,731 million for the three months ended September 30, 2024, compared to $4,227 million in 2023[121]. - Total noninterest expense increased by 3.4% to $108,978 million for the nine months ended September 30, 2024, compared to $105,395 million in 2023[123]. Credit Quality and Loan Losses - The provision for credit losses for the three months ended September 30, 2024, was $2,389,000, down from $6,987,000 in the same period of 2023, indicating improved credit quality[8]. - Nonperforming assets totaled $7,656 million as of September 30, 2024, compared to $4,001 million, indicating a significant increase[53]. - The allowance for loan losses at the end of the period was $44,276 million, up from $42,674 million at the beginning of the nine months ended September 30, 2024, representing an increase of approximately 3.75%[58]. - The ratio of nonaccruing loans to total loans was 0.16% as of September 30, 2024, up from 0.09% at December 31, 2023[129]. - The company recorded a provision for credit losses for loans of $2.6 million for the nine months ended September 30, 2024, down from $6.7 million in the same period of 2023[131]. Capital and Liquidity - The company has additional funding capacity of approximately $1.80 billion from FHLB, collateralized by securities, FHLB stock, and nonspecified loans[63]. - The Common Equity Tier 1 capital ratio was 13.07% for the consolidated entity as of September 30, 2024, significantly above the required 4.50%[137]. - Total capital ratio was 16.59% for the consolidated entity, exceeding the required 8.00%[137]. - The effective tax rate (ETR) for the three months ended September 30, 2024, was 17.6%, compared to 14.5% for the same period in 2023[125]. - Liquidity investments represented 10.8% of total assets as of September 30, 2024, up from 8.9% at December 31, 2023[141]. Market and Economic Conditions - Economic conditions in Texas markets remain positive despite inflation and interest rate fluctuations, supported by job and population growth[97]. - Estimated uninsured deposits were 35.9% of total deposits as of September 30, 2024, indicating a significant portion of deposits without insurance[98]. - The company opened a loan production office in The Woodlands, Greater North Houston area, on September 3, 2024, as part of its market expansion strategy[143]. - The company closed a traditional branch location in Jasper in May 2024 due to proximity to another branch, indicating a strategic consolidation of operations[143]. - The company has access to approximately $1.80 billion in additional funding from FHLB, collateralized by securities and loans[141].

Earnings of Southside Bancshares, Inc. (NASDAQ: NASDAQ: SBSI ) will most probably grow in upcoming quarters thanks to low loan growth. On the other hand, slight margin contraction will restrict the earnings growth. Overall, I'm expecting earnings to grow by 5.3% to $2.97 per share in Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expres ...

Financial Data and Key Metrics Changes - The company reported third quarter net income of $20.5 million, a decrease of $4.1 million or 16.8% on a linked-quarter basis, with diluted earnings per share of $0.68, a decrease of 16% linked quarter [3][6] - Net interest income increased by $1.86 million, or 3.5% compared to the linked quarter, with a net interest margin increase of 8 basis points to 2.95% [3][12] - The allowance for credit losses increased by $2 million to $47.6 million, with nonperforming assets remaining low at $7.7 million or 0.09% of total assets [7][11] Business Line Data and Key Metrics Changes - Loans decreased slightly to $4.58 billion, down from $4.59 billion, with annualized year-to-date loan growth at 1.6% [6][10] - The decrease in loans was driven by a reduction in commercial real estate loans by $15.2 million and municipal loans by $14.9 million, partially offset by increases in construction loans and residential loans [6][7] - The average interest rate on loans was approximately 8.1% [7] Market Data and Key Metrics Changes - The company experienced a decrease in deposits by $60.2 million or 0.9% on a linked quarter basis, primarily due to a commercial account that typically increases in the second quarter and exits in the third quarter [10] - The securities portfolio was $2.70 billion, a slight decrease from $2.71 billion, with a net unrealized loss in the AFS securities portfolio of $24.7 million [8][9] Company Strategy and Development Direction - The company has reduced its target loan growth for 2024 from 5% to 3% due to anticipated additional loan payoffs [5] - An initiative to expand commercial and industrial (C&I) lending is underway, with plans to hire additional relationship managers [5][24] - The company is focusing on potential M&A opportunities in the Texas market, anticipating increased activity in 2025 [30][31] Management's Comments on Operating Environment and Future Outlook - Management noted that the markets served remain healthy and continue to grow, despite headwinds from anticipated loan payoffs [5] - The company expects some additional payoffs in the fourth quarter, impacting the ability to achieve the previously set loan growth target [18] - Management expressed optimism about the prospects for the remainder of the year and the upcoming fourth quarter results [36] Other Important Information - The company did not repurchase any shares during the third quarter but has approximately 583,000 shares remaining in the current repurchase authorization [11] - Noninterest expense increased by $567,000 or 1.6% on a linked-quarter basis, with expectations of $37 million for the fourth quarter of 2024 [12][34] Q&A Session Summary Question: Can you discuss the securities portfolio actions and the hedge? - Management indicated that the net effect on the margin will be positive, approximately 1 or 2 basis points, due to the sale of lower-yielding securities and purchase of higher-yielding agency mortgage-backed securities [15][16] Question: What is the outlook for loan payoffs and the loan pipeline? - Management noted that while loan payoffs are a sign of a good economy, they anticipate additional payoffs in the fourth quarter, leading to a reduction in the loan growth target [17][18] Question: Can you provide an update on the C&I initiative? - Management confirmed two hires during the quarter and plans for additional hires, expecting to see results from this initiative in 2025 [24] Question: How are deposit costs trending post Fed rate cuts? - Management reported that they were able to cut deposit rates significantly, with expectations of continued reductions in the coming months [25][26] Question: What is the target profile for potential M&A? - Management indicated a target range of $1.2 billion to $4 billion for potential acquisitions, focusing on banks along the I-35 corridor in Texas [31]

Third quarter net income of $20.5 million;Third quarter earnings per diluted common share of $0.68;Annualized return on third quarter average assets of 0.98%;Annualized return on third quarter average tangible common equity of 13.69%(1); andNonperforming assets remain low at 0.09% of total assets.  TYLER, Texas, Oct. 24, 2024 (GLOBE NEWSWIRE) -- Southside Bancshares, Inc. (“Southside” or the “Company”) (NASDAQ: SBSI) today reported its financial results for the quarter ended September 30, 2024. Southside re ...

EXHIBIT 99.1 SOUTHSIDE BANCSHARES, INC. ANNOUNCES FINANCIAL RESULTS FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2024 • Third quarter net income of $20.5 million; • Third quarter earnings per diluted common share of $0.68; • Annualized return on third quarter average assets of 0.98%; (1) • Annualized return on third quarter average tangible common equity of 13.69% ; and • Nonperforming assets remain low at 0.09% of total assets. Tyler, Texas (October 24, 2024) Southside Bancshares, Inc. ("Southside" or the "Co ...

TYLER, Texas, Oct. 10, 2024 (GLOBE NEWSWIRE) -- Southside Bancshares, Inc. ("Southside") (NASDAQ: SBSI), the holding company for Southside Bank, announced today it will release its third quarter financial results before the market opens on Thursday, October 24, 2024. Southside will host a conference call to discuss its results on Thursday, October 24, 2024, at 11:00 a.m. CDT. The call will be hosted by Lee R. Gibson, CEO, Julie Shamburger, CFO, and Lindsey Bailes, VP, Investor Relations. Following prepared ...