SOUTHSIDE BANCSHARES, INC.
ANNOUNCES NET INCOME FOR THE
THREE MONTHS AND YEAR ENDED DECEMBER 31, 2015
NASDAQ Global Select Market Symbol - “SBSI”
Tyler, Texas, (January 29, 2016) Southside Bancshares, Inc. (“Southside” or the “Company”) (NASDAQ:SBSI) today reported its financial results for the three months and year ended December 31, 2015.
Southside reported net income of $11.7 million for the three months ended December 31, 2015, an increase of $15.6 million, or 396.4%, when compared to a net loss of $3.9 million for the same period in 2014. Net income for the year ended December 31, 2015 increased $23.2 million, or 111.2%, to $44.0 million when compared to $20.8 million for the same period in 2014.
Diluted earnings (losses) per common share were $0.46 and $(0.19) for the three months ended December 31, 2015 and 2014, respectively, an increase of $0.65, or 342.1%. For the year ended December 31, 2015, diluted earnings per common share increased $0.69, or 66.3%, to $1.73 when compared to $1.04 for the same period in 2014.
The return on average shareholders’ equity for the year ended December 31, 2015 was 10.04%, compared to 7.24% for the same period in 2014. The return on average assets was 0.90% for the year ended December 31, 2015 when compared to 0.60% for the same period in 2014.
“We are delighted with the outstanding financial results achieved during the fourth quarter and year ended December 31, 2015,” stated Sam Dawson, Chief Executive Officer of Southside Bancshares, Inc. “For the second quarter in a row, we experienced double digit annualized loan growth as both prior and current quarter loan commitments funded. Annualized loan growth during the fourth quarter was 34.4%. For the year we achieved loan growth of 11.5%, in line with our expectations. Approximately 50% of the loan growth during the fourth quarter was booked in December, enhancing the anticipated increase in loan revenue during the first quarter of 2016. We are pleased to report loan production remains strong, especially in Austin and Fort Worth. Southside’s balance sheet, asset quality, liquidity and capital all remain solid, allowing for continued steady growth in our market areas.”
“On January 28, 2016, the Board of Directors approved a Stock Repurchase Plan. The Board authorized the repurchase, from time to time, of up to five percent of the issued and outstanding common stock, or approximately 1.27 million shares, in open market purchases and privately negotiated transactions at prevailing market prices. We believe repurchasing shares in a company we know quite well, Southside Bancshares, Inc., at current market prices, is prudent. The Company has no obligation to repurchase any shares under the Stock Repurchase Plan and may suspend or discontinue it at any time.”
“In late December, we offered an early retirement package to 24 of our employees with an acceptance deadline of January 29, 2016. One employee accepted the offer in December and expense was recorded of approximately $160,000, net of tax. An additional 15 employees have accepted the early retirement package in 2016 and we will record an estimated one-time expense of approximately $1.3 million, net of tax, during the quarter ended March 31, 2016. We currently estimate the annual cost savings associated with the early retirement packages to be approximately $1.0 million, net of tax. The merger-related expense reductions resulting from our acquisition of OmniAmerican Bancorp, Inc. (“OmniAmerican”) should be complete after recording approximately $208,000, net of tax, of merger-related expense during the fourth quarter. During 2015, we recorded $3.6 million, net of tax, of merger-related expense. During the fourth quarter we also incurred expenses related to branch closings of approximately $270,000, net of tax.”
“We continue to focus on additional operational efficiencies and revenue generating and cost containment opportunities. We are utilizing a consultant for assistance with this effort and incurred professional fees of approximately $310,000, net of tax, during the quarter. The anticipated results are operational efficiencies through changes in our back office processes, revised branch models commensurate with today's customer delivery preferences and enhanced noninterest income programs.”
“Loans increased $192.6 million during the fourth quarter of 2015, more than offsetting the continued roll off of the indirect automobile loan portfolio and payoffs in our 1-4 family residential loans. During the quarter, commercial real estate loans increased $98 million, construction loans increased $96 million, municipal loans increased $26 million and commercial loans increased $14 million. Based on loans committed and activity in our pipeline, we continue to anticipate healthy overall net loan growth during 2016. We are focused on executing our business plan and we continue to add value to our customers and the communities we serve.”
The following information was filed by Southside Bancshares Inc (SBSI) on Friday, January 29, 2016 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.