Southside Bancshares(US:SBSI)2025-10-23 21:47Financial Performance - Net income for Q3 2025 was $4.9 million, a decrease of $15.6 million or 76.1% compared to $20.5 million in Q3 2024[4] - Earnings per diluted share were $0.16 for Q3 2025, down $0.52 or 76.5% from $0.68 in Q3 2024[4] - Net income decreased significantly to $4,913 thousand for the quarter ended September 30, 2025, down from $21,813 thousand in the previous quarter, a decline of 77.54%[42] - The company reported a net income of $48,233 for the nine months ended September 30, 2025, down from $66,708 in 2024[73] Income and Expenses - Net interest income for Q3 2025 was $55.7 million, an increase of $0.3 million or 0.5% year-over-year[4] - Noninterest income, excluding net losses on AFS securities, rose to $12.4 million, an increase of $2.3 million or 22.8% year-over-year[5] - Noninterest expense increased by $1.2 million or 3.3% to $37.5 million in Q3 2025 compared to Q3 2024[6] - Noninterest expense totaled $37,534 thousand, a decrease from $39,257 thousand in the previous quarter, reflecting a reduction of 4.39%[42] - Total noninterest income for the nine months ended September 30, 2025, was $10,378 thousand, significantly lower than $29,452 thousand in the same period of 2024, a decline of 64.8%[49] Assets and Liabilities - Total assets were $8.38 billion as of September 30, 2025, down from $8.52 billion at December 31, 2024[12] - Total assets as of September 30, 2025, were $8,338,477, a slight decrease from $8,367,814 in 2024[69] - Total liabilities amounted to $7.636 billion, with shareholders' equity at $824.893 million as of March 31, 2025[62] Loans and Credit Quality - Total loans increased by $163.4 million or 3.5% linked quarter, reaching $4.77 billion as of September 30, 2025[13] - Nonperforming assets increased to $35.6 million or 0.42% of total assets, up from $7.7 million or 0.09% at September 30, 2024[19] - The allowance for loan losses was $45.3 million or 0.95% of total loans as of September 30, 2025, compared to $44.3 million or 0.97% a year earlier[20] - The provision for credit losses was $1,092 thousand, compared to $622 thousand in the previous quarter, indicating an increase of 75.73%[42] - The net charge-offs for Q3 2025 were $844 thousand, compared to $852 thousand in Q2 2025, showing a decrease of 0.94%[47] - Nonperforming assets increased significantly to $35,608 thousand in 2025 from $7,656 thousand in 2024, reflecting a substantial rise in asset quality concerns[52] Capital and Ratios - The common equity tier 1 capital ratio was 12.97% as of September 30, 2025, down from 13.36% in June 30, 2025[44] - The capital ratios showed a strong position, with total risk-based capital at 19.01% in 2025, up from 16.59% in 2024, indicating improved capital adequacy[52] - The efficiency ratio (FTE) improved to 53.89% for the nine months ended September 30, 2025, compared to 53.35% in the same period of 2024[49] - Return on average tangible common equity for the nine months ended September 30, 2025, was 10.59%, compared to 15.20% in 2024[73] Dividends and Shareholder Returns - Southside Bancshares, Inc. declared a third quarter cash dividend of $0.36 per share, paid on September 4, 2025[23] - Cash dividends paid per common share remained stable at $0.36 for the quarter[42] Forward-Looking Statements and Risks - Forward-looking statements indicate potential risks including economic conditions, interest rate fluctuations, and impacts from inflation and unemployment[36]