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].

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 Performance - Southside Bancshares reported a net income of $20.5 million for Q3 2024, an increase of $2.1 million or 11.2% compared to $18.4 million in Q3 2023 [2][3] - Earnings per diluted common share rose to $0.68, up $0.08 or 13.3% from $0.60 in the same period last year [2][3] - The annualized return on average assets was 0.98%, compared to 0.93% in Q3 2023, while the return on average shareholders' equity increased to 10.13% from 9.50% [2][3] Net Interest Income - Net interest income for Q3 2024 was $55.5 million, an increase of $2.2 million or 4.1% from the same period in 2023 [4] - The net interest margin decreased to 2.82% from 2.85% year-over-year, but increased from 2.74% in the previous quarter [5] Noninterest Income and Expense - Noninterest income decreased to $8.2 million, down $2.7 million or 24.6% compared to $10.8 million in Q3 2023, primarily due to losses on the sale of securities [6] - Noninterest expense increased by $0.8 million or 2.2% to $36.3 million, driven by higher salaries and employee benefits [7] Tax Expense - Income tax expense rose by $1.3 million or 40.7% compared to Q3 2023, with an effective tax rate of 17.6% [8] Year-to-Date Performance - For the nine months ended September 30, 2024, net income was $66.7 million, a decrease of $2.7 million or 3.8% from $69.4 million in the same period of 2023 [9] - Noninterest income for the nine months was $29.5 million, down $3.9 million or 11.6% compared to $33.3 million in 2023 [11] Balance Sheet Highlights - Total assets as of September 30, 2024, were $8.36 billion, an increase from $8.28 billion at the end of 2023 [12] - Loans increased to $4.58 billion, up $157.4 million or 3.6% year-over-year [13] - Total deposits rose to $6.44 billion, an increase of $86.1 million or 1.4% compared to the same period in 2023 [13] Asset Quality - Nonperforming assets were $7.7 million, or 0.09% of total assets, an increase from $4.4 million or 0.05% a year earlier [16] - The allowance for loan losses totaled $44.3 million, or 0.97% of total loans, compared to $41.8 million or 0.94% a year earlier [16] Capital Resources and Liquidity - Total available contingent liquidity was $2.23 billion as of September 30, 2024 [15] - The company did not repurchase any common stock under its Stock Repurchase Plan during the third quarter [15]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) [Third Quarter 2024 Performance Summary](index=1&type=section&id=Third%20Quarter%202024%20Performance%20Summary) Southside Bancshares reported a net income of $20.5 million for the third quarter of 2024, an 11.2% increase year-over-year, with diluted earnings per share rising to $0.68. The performance was supported by a linked-quarter increase in net interest income and margin, alongside continued strong asset quality with nonperforming assets at just 0.09% of total assets Q3 2024 Key Financial Metrics | Metric | Q3 2024 | Change (YoY) | | :--- | :--- | :--- | | Net Income | $20.5 million | +11.2% | | Diluted EPS | $0.68 | +13.3% | | Annualized ROA | 0.98% | +5 bps | | Annualized Return on Tangible Common Equity (Non-GAAP) | 13.69% | +52 bps | | Nonperforming Assets to Total Assets | 0.09% | +4 bps | - Management highlighted a linked-quarter increase of **$1.86 million** in net interest income and an **8 basis point** increase in net interest margin to **2.95%**[2](index=2&type=chunk) - During the quarter, the company sold **$28 million** of lower-yielding municipal securities, incurring a **$1.9 million** loss, and reinvested the proceeds into higher-yielding agency mortgage-backed securities[2](index=2&type=chunk) [Operating Results](index=1&type=section&id=Operating%20Results) [Operating Results for the Three Months Ended September 30, 2024](index=1&type=section&id=Operating%20Results%20for%20the%20Three%20Months%20Ended%20September%2030%2C%202024) For the third quarter of 2024, net income rose to $20.5 million from $18.4 million in Q3 2023, driven by a $2.2 million increase in net interest income and a lower provision for credit losses. This was partially offset by a $2.7 million decrease in noninterest income, mainly due to a net loss on the sale of AFS securities and an impairment charge. The efficiency ratio improved both year-over-year and on a linked-quarter basis Q3 2024 vs. Q3 2023 Performance | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | Net Income | $20.5 million | $18.4 million | +11.2% | | Diluted EPS | $0.68 | $0.60 | +$0.08 | | Net Interest Income | $55.5 million | $53.3 million | +4.1% | | Noninterest Income | $8.2 million | $10.8 million | -24.6% | | Noninterest Expense | $36.3 million | $35.6 million | +2.2% | - Net interest margin (tax-equivalent) was **2.95%**, down from **3.02%** in Q3 2023 but up from **2.87%** in Q2 2024[3](index=3&type=chunk) - Noninterest income was negatively impacted by a net loss on the sale of AFS securities and a **$868,000** impairment charge related to a subsequent sale of municipal securities on October 1[3](index=3&type=chunk)[4](index=4&type=chunk) - The effective tax rate increased to **17.6%** from **14.5%** in Q3 2024, primarily due to a decrease in tax-exempt income as a percentage of pre-tax income[4](index=4&type=chunk) [Operating Results for the Nine Months Ended September 30, 2024](index=2&type=section&id=Operating%20Results%20for%20the%20Nine%20Months%20Ended%20September%2030%2C%202024) For the first nine months of 2024, net income decreased by 3.8% to $66.7 million compared to the same period in 2023. The decline was primarily due to lower noninterest income and higher noninterest and income tax expenses, which more than offset a modest increase in net interest income and a lower provision for credit losses Nine Months 2024 vs. 2023 Performance | Metric | Nine Months 2024 | Nine Months 2023 | Change | | :--- | :--- | :--- | :--- | | Net Income | $66.7 million | $69.4 million | -3.8% | | Diluted EPS | $2.20 | $2.24 | -1.8% | | Net Interest Income | $162.4 million | $160.5 million | +1.2% | | Noninterest Income | $29.5 million | $33.3 million | -11.6% | | Noninterest Expense | $109.0 million | $105.4 million | +3.4% | - The tax-equivalent net interest margin for the nine-month period decreased to **2.90%** from **3.13%** in the prior year period[5](index=5&type=chunk) - The efficiency ratio (tax-equivalent) deteriorated to **53.35%** for the nine months ended September 30, 2024, from **51.44%** for the same period in 2023[5](index=5&type=chunk) [Financial Condition](index=2&type=section&id=Financial%20Condition) [Balance Sheet Analysis](index=2&type=section&id=Balance%20Sheet%20Analysis) As of September 30, 2024, total assets stood at $8.36 billion, showing growth from both year-end and the prior year. Loans increased 3.6% year-over-year to $4.58 billion, though they experienced a slight linked-quarter decline. Total deposits grew 1.4% year-over-year to $6.44 billion. The cost of total deposits saw a minor linked-quarter decrease to 2.38% Key Balance Sheet Items | Item | Sep 30, 2024 | Dec 31, 2023 | Sep 30, 2023 | | :--- | :--- | :--- | :--- | | Total Assets | $8.36 billion | $8.28 billion | $7.97 billion | | Total Loans | $4.58 billion | $4.52 billion | $4.42 billion | | Total Deposits | $6.44 billion | $6.55 billion | $6.35 billion | - Linked quarter, loans decreased by **$11.3 million** (**0.2%**), primarily driven by declines in commercial real estate and municipal loans[7](index=7&type=chunk) - Estimated uninsured deposits were **35.9%**. Excluding collateralized public funds and affiliate deposits, the estimated uninsured and uncollateralized portion was **19.2%**[8](index=8&type=chunk) - The cost of total deposits for Q3 2024 was **2.38%**, a **one basis point** decrease from the prior quarter. The cost of interest-bearing deposits remained stable at **3.01%** linked-quarter[8](index=8&type=chunk) [Capital Resources and Liquidity](index=3&type=section&id=Capital%20Resources%20and%20Liquidity) The company's capital ratios and liquidity position remain solid. No common stock was repurchased during the third quarter under the existing plan. As of September 30, 2024, Southside had $2.23 billion in total available contingent liquidity - No shares were purchased during Q3 2024 under the Stock Repurchase Plan[9](index=9&type=chunk) - Total available contingent liquidity, net of outstanding borrowings, was **$2.23 billion**, sourced from FHLB advances, the Federal Reserve Discount Window, and correspondent bank lines of credit[9](index=9&type=chunk) [Asset Quality](index=3&type=section&id=Asset%20Quality) Asset quality remains strong, with nonperforming assets at a low 0.09% of total assets, despite a slight increase from prior periods. The allowance for loan losses was increased to 0.97% of total loans, reflecting heightened economic concerns for office and multifamily markets. The provision for credit losses for loans was $2.3 million for the quarter Nonperforming Assets (NPA) Trend | Metric | Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | | :--- | :--- | :--- | :--- | | NPA / Total Assets | 0.09% | 0.08% | 0.05% | | Total NPAs | $7.7 million | $6.9 million | $4.4 million | - The allowance for loan losses increased to **$44.3 million**, or **0.97%** of total loans, up from **0.92%** in the prior quarter, mainly due to economic concerns in the CECL model for office and multifamily markets[10](index=10&type=chunk) Quarterly Credit Loss Provision and Charge-offs | Metric | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | Provision for Credit Losses (Loans) | $2.3 million | ($0.9 million) | $6.3 million | | Net Charge-offs | $0.4 million | $0.3 million | $0.9 million | [Shareholder Information](index=3&type=section&id=Shareholder%20Information) [Dividend](index=3&type=section&id=Dividend) Southside Bancshares, Inc. declared and paid a third-quarter cash dividend of $0.36 per common share - A cash dividend of **$0.36** per share was declared on August 8, 2024, and paid on September 5, 2024[11](index=11&type=chunk) [Conference Call](index=4&type=section&id=Conference%20Call) The company will host a conference call on October 24, 2024, at 11:00 a.m. CDT to discuss its third-quarter financial results. A webcast and replay will be available on the company's investor relations website - Management will host a conference call to discuss Q3 2024 results on Thursday, October 24, 2024, at 11:00 a.m. CDT[12](index=12&type=chunk) [Other Information](index=4&type=section&id=Other%20Information) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) The company utilizes several non-GAAP financial measures, such as fully taxable-equivalent (FTE) net interest income, net interest margin, and efficiency ratio, to supplement its GAAP-based financial statements. Management believes these measures provide a better basis for performance evaluation and peer comparison by adjusting for the tax-favored status of certain income - Key non-GAAP measures include net interest income (FTE), net interest margin (FTE), net interest spread (FTE), and efficiency ratio (FTE)[13](index=13&type=chunk) - These measures adjust tax-exempt interest income to a tax-equivalent basis using a **21%** federal income tax rate to enhance comparability between taxable and tax-exempt sources of income[13](index=13&type=chunk)[14](index=14&type=chunk) [About Southside Bancshares, Inc.](index=5&type=section&id=About%20Southside%20Bancshares%2C%20Inc.) Southside Bancshares, Inc. is a bank holding company headquartered in Texas with approximately $8.36 billion in assets as of September 30, 2024. Its subsidiary, Southside Bank, operates 54 branches within the state - As of September 30, 2024, the company has approximately **$8.36 billion** in assets and operates **54 branches** in Texas through its subsidiary, Southside Bank[18](index=18&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section provides a standard safe harbor warning that the press release contains forward-looking statements subject to significant risks and uncertainties. Key factors that could cause actual results to differ include the impact of higher inflation, interest rate fluctuations, and general economic or recessionary concerns - The company identifies significant risk factors that could affect future performance, including ongoing high inflation, interest rate fluctuations, economic concerns, and their potential impact on deposits and loan originations[19](index=19&type=chunk) [Financial Statements and Supplementary Data](index=6&type=section&id=Financial%20Statements%20and%20Supplementary%20Data) [Consolidated Financial Summary (Balance Sheet)](index=6&type=section&id=Consolidated%20Financial%20Summary%20(Balance%20Sheet)) Presents the company's consolidated balance sheet as of September 30, 2024, with comparative data for the preceding quarters and the prior year, detailing assets, liabilities, and shareholders' equity Consolidated Balance Sheet (in thousands) | Account | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Net Loans | $4,533,772 | $4,481,836 | | Total Securities | $2,696,840 | $2,603,347 | | **Total Assets** | **$8,362,263** | **$8,284,914** | | **Liabilities & Equity** | | | | Total Deposits | $6,435,702 | $6,549,681 | | Total Liabilities | $7,557,009 | $7,511,626 | | Shareholders' Equity | $805,254 | $773,288 | | **Total Liabilities & Equity** | **$8,362,263** | **$8,284,914** | [Consolidated Financial Highlights (Income Statement)](index=7&type=section&id=Consolidated%20Financial%20Highlights%20(Income%20Statement)) Provides a detailed quarterly consolidated income statement, including breakdowns of interest and noninterest income and expenses, leading to net income. It also includes key per-share data and performance ratios Consolidated Income Statement (in thousands) | Account | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | Net Interest Income | $55,464 | $53,608 | $53,273 | | Provision for Credit Losses | $2,389 | ($485) | $6,987 | | Total Noninterest Income | $8,171 | $11,557 | $10,836 | | Total Noninterest Expense | $36,332 | $35,765 | $35,553 | | **Net Income** | **$20,524** | **$24,673** | **$18,449** | | **Diluted EPS** | **$0.68** | **$0.81** | **$0.60** | [Asset Quality and Capital Ratios](index=8&type=section&id=Asset%20Quality%20and%20Capital%20Ratios) This section details the components of nonperforming assets and key asset quality ratios. It also presents various regulatory capital ratios, demonstrating the company's capital adequacy Asset Quality Ratios | Ratio | Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | | :--- | :--- | :--- | :--- | | Nonperforming Assets / Total Assets | 0.09% | 0.08% | 0.05% | | Allowance for Loan Losses / Total Loans | 0.97% | 0.92% | 0.94% | Capital Ratios | Ratio | Sep 30, 2024 | Sep 30, 2023 | | :--- | :--- | :--- | | Common Equity Tier 1 Capital | 13.07% | 12.27% | | Total Risk-Based Capital | 16.59% | 15.71% | | Tier 1 Leverage Capital | 9.61% | 9.61% | [Loan Portfolio and Allowance for Credit Losses](index=10&type=section&id=Loan%20Portfolio%20and%20Allowance%20for%20Credit%20Losses) Offers a breakdown of the loan portfolio by major categories such as real estate, commercial, and municipal loans. It also includes a detailed reconciliation of the allowance for credit losses for both loans and off-balance-sheet exposures Loan Portfolio Composition (in thousands) | Loan Category | Sep 30, 2024 | Sep 30, 2023 | | :--- | :--- | :--- | | Commercial Real Estate | $2,422,612 | $2,117,306 | | Construction | $585,817 | $720,515 | | 1-4 Family Residential | $755,406 | $689,492 | | Commercial Loans | $358,854 | $385,816 | | **Total Loans** | **$4,578,048** | **$4,420,633** | Allowance for Loan Losses Reconciliation - Q3 2024 (in thousands) | Item | Amount | | :--- | :--- | | Balance at beginning of period (Jun 30, 2024) | $42,407 | | Net Charge-offs | ($408) | | Provision for loan losses | $2,277 | | **Balance at end of period (Sep 30, 2024)** | **$44,276** | [Year-to-Date Financial Highlights](index=11&type=section&id=Year-to-Date%20Financial%20Highlights) Summarizes the company's financial performance for the nine-month period ending September 30, 2024, comparing key income statement items, per-share data, and performance ratios against the same period in 2023 Nine Months Ended Sep 30, Financial Summary (in thousands) | Account | 2024 | 2023 | | :--- | :--- | :--- | | Net Interest Income | $162,420 | $160,542 | | Provision for Credit Losses | $1,962 | $6,873 | | Total Noninterest Income | $29,452 | $33,333 | | Total Noninterest Expense | $108,978 | $105,395 | | **Net Income** | **$66,708** | **$69,376** | | **Diluted EPS** | **$2.20** | **$2.24** | [Average Balances and Yields](index=15&type=section&id=Average%20Balances%20and%20Yields) Provides detailed tables showing the average balances for all earning assets and interest-bearing liabilities, along with their respective average yields and rates on a fully taxable-equivalent (FTE) basis for quarterly and year-to-date periods Q3 2024 Average Balances and Rates (FTE) | Metric | Value | | :--- | :--- | | Average Earning Assets | $7.82 billion | | Average Yield on Earning Assets | 5.51% | | Average Interest Bearing Liabilities | $6.09 billion | | Average Rate on Interest Bearing Liabilities | 3.28% | | Net Interest Margin (FTE) | 2.95% | | Net Interest Spread (FTE) | 2.23% | [Non-GAAP Reconciliation](index=19&type=section&id=Non-GAAP%20Reconciliation) This section provides the necessary reconciliations of reported GAAP financial measures to the non-GAAP measures discussed in the report. It includes reconciliations for return on average tangible common equity, tangible book value per share, and the FTE efficiency ratio, clarifying the adjustments made Reconciliation of Net Income to Adjusted Net Income (for ROATCE) - Q3 2024 (in thousands) | Item | Amount | | :--- | :--- | | Net Income (GAAP) | $20,524 | | After-tax amortization expense | $220 | | **Adjusted Net Income (Non-GAAP)** | **$20,744** | Reconciliation of Net Interest Income to FTE Basis - Q3 2024 (in thousands) | Item | Amount | | :--- | :--- | | Net Interest Income (GAAP) | $55,464 | | Tax-equivalent adjustments | $2,620 | | **Net Interest Income (FTE, Non-GAAP)** | **$58,084** |

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 ...

Core Viewpoint - Southside Bancshares (SBSI) has received a Zacks Rank 1 (Strong Buy) upgrade due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system focuses on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - Rising earnings estimates indicate an improvement in the company's underlying business, suggesting that investors may push the stock price higher [5][10]. Earnings Estimate Revisions - For the fiscal year ending December 2024, Southside Bancshares is expected to earn $2.96 per share, reflecting a 4.2% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Southside Bancshares has increased by 9.6%, indicating positive sentiment among analysts [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Southside Bancshares to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

TYLER, Texas, Sept. 03, 2024 (GLOBE NEWSWIRE) -- Southside Bank, a subsidiary of Southside Bancshares, Inc. (Nasdaq: SBSI), has announced the opening of a new Loan Production Office (LPO) at 9595 Six Pines Drive, Bld 8, Level 2, Ste 8210 in The Woodlands. The Bank indicated their new LPO, opened on September 3, 2024, will specifically target the Commercial & Industrial (C&I) sector and business owners in greater North Houston and the surrounding areas. This expansion represents Southside's continued commitm ...

Table of Contents FORM 10-Q (Mark One) OR Commission file number: 000-12247 903-531-7111 (Registrant's telephone number, including area code) Securities Registered Pursuant to Section 12(b) of the Act: Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Y ...

Financial Data and Key Metrics Changes - The company reported a second quarter net income of $24.7 million, an increase of $3.2 million or 14.7% on a linked-quarter basis, with diluted earnings per share of $0.81, up 14.1% linked quarter [5][59] - The allowance for loan losses as a percentage of total loans decreased to 0.92% from 0.95% [6] - Noninterest expense decreased by $1.1 million on a linked-quarter basis to $35.8 million, driven by decreases in salary and employee benefits [9] Business Line Data and Key Metrics Changes - The company experienced slot loan growth of $12 million or 0.3% linked quarter and 1.1% annualized [5] - Annualized year-to-date loan growth was 2.9%, driven by increases in commercial real estate loans and 1-4 family residential loans, partially offset by decreases in construction and municipal loans [61] - Noninterest income, excluding net loss on sales of AFS securities, increased by $2.4 million or 24.4% for the linked quarter [45] Market Data and Key Metrics Changes - Deposits decreased by $49.8 million or 0.8% on a linked-quarter basis, primarily due to a decrease in public fund deposits and broker deposits [63] - The average interest rate of loans funded during the quarter was approximately 8% [42] Company Strategy and Development Direction - The company is executing an initiative to expand C&I lending in metropolitan markets to diversify its loan portfolio, increase revenue, and grow deposits [60] - The company plans to build out C&I lending teams in the Houston area first, with potential expansion to DFW or Austin in the future [90] Management's Comments on Operating Environment and Future Outlook - Management expressed a conservative outlook for loan growth in the second half of the year, with a target of 5% loan growth for 2024 [39] - The company noted that asset quality metrics remained strong, with nonperforming assets decreasing to $6.9 million from $8 million [42] Other Important Information - The company sold approximately $93 million of lower coupon municipal securities and reinvested most of the proceeds in higher-yielding agency mortgage-backed securities [59] - The effective tax rate decreased slightly to 17.4% for the second quarter from 17.7% in the previous quarter [46] Q&A Session Summary Question: Expectations for loan growth in the back half of the year - Management indicated that growth may take time due to the new C&I initiative but remains optimistic about the loan pipeline [14][20] Question: Impact of securities portfolio actions on margins - Management noted that while the actions did not significantly affect the second quarter, they expect some growth in the fourth quarter [24][49] Question: Expectations for fees in the back half of the year - Management anticipates an increase in fees, particularly in wealth management and trust services [28][77] Question: Plans for C&I lending expansion - Management confirmed that the focus will be on building out the Houston area first, with plans to expand to other markets later [90]