Southside Bancshares Inc (SBSI) 10-Q Quarterly Report April 2022

Tyler, Texas (April 26, 2022) Southside Bancshares, Inc. (“Southside” or the “Company”) (NASDAQ: SBSI) today reported its financial results for the quarter ended March 31, 2022. Southside reported net income of $25.0 million for the three months ended March 31, 2022, a decrease of $9.1 million, or 26.7%, compared to $34.1 million for the same period in 2021. Earnings per diluted common share were $0.77 for the three months ended March 31, 2022, compared to $1.04 for the same period in 2021. The annualized return on average shareholders’ equity for the three months ended March 31, 2022 was 11.42%, compared to 15.82% for the same period in 2021. The annualized return on average assets was 1.40% for the three months ended March 31, 2022, compared to 1.99% for the same period in 2021.

“First quarter financial results for 2022, were highlighted by net income of $25 million, earnings per diluted common share of $0.77, linked quarter loan growth, net of PPP loans, of 4.8%, continued strong asset quality metrics and an efficiency ratio of 48.15%,” stated Lee R. Gibson, President and Chief Executive Officer of Southside. “The economic conditions and growth prospects for the markets we serve continue to reflect a solid and positive outlook. The DFW and Austin markets remain among the highest performing markets in the nation. This contributed to our outstanding loan growth during the first quarter. Our loan pipeline remains strong and we remain encouraged about loan growth prospects despite the headwinds of future expected loan payoffs.”

Operating Results for the Three Months Ended March 31, 2022

Net income was $25.0 million for the three months ended March 31, 2022, compared to $34.1 million for the same period in 2021, a decrease of $9.1 million, or 26.7%. Earnings per diluted common share were $0.77 and $1.04 for the three months ended March 31, 2022 and 2021, respectively. The decrease in net income was primarily a result of a provision for credit losses of $0.3 million for the three months ended March 31, 2022, compared to a reversal of provision for credit losses of $10.1 million for the same period in 2021 due to the improved economic forecast during the first quarter of 2021. Annualized returns on average assets and average shareholders’ equity for the three months ended March 31, 2022 were 1.40% and 11.42%, respectively, compared to 1.99% and 15.82%, respectively, for the three months ended March 31, 2021. Our efficiency ratio and tax equivalent efficiency ratio(1) were 50.71% and 48.15%, respectively, for the three months ended March 31, 2022, compared to 53.01% and 50.44%, respectively, for the three months ended March 31, 2021, and 50.34% and 47.61%, respectively, for the three months ended December 31, 2021.

Net interest income for the three months ended March 31, 2022 was $48.9 million, compared to $46.3 million for the same period in 2021, an increase of 5.6%. The increase in net interest income compared to the same period in 2021 was due to the decrease in interest expense on our interest bearing liabilities due to the change in the mix of our interest bearing liabilities, and to a lesser extent, the increase in interest income, a result of the increase in the average balance of investment securities, partially offset by a decrease in the interest income from PPP loans. Linked quarter, net interest income decreased $0.5 million, or 1.0%, compared to $49.4 million during the three months ended December 31, 2021. The decrease in net interest income was primarily due to a decrease in the average yield on our average loans.

Our net interest margin and tax equivalent net interest margin(1) increased to 3.03% and 3.22%, respectively, for the three months ended March 31, 2022, compared to 3.01% and 3.20%, respectively, for the same period in 2021. Linked quarter, net interest margin increased two basis points from 3.01% and tax equivalent net interest margin(1) decreased one basis point from 3.23% for the three months ended December 31, 2021.

Noninterest income was $10.7 million for the three months ended March 31, 2022, a decrease of $2.9 million, or 21.3%, compared to $13.6 million for the same period in 2021. The decrease was due to a net loss on sale of securities available for sale (“AFS”) of $1.5 million for the three months ended March 31, 2022, compared to a net gain of $2.0 million for the same period in 2021 and a decrease in gain on sale of loans, partially offset by increases in deposit services income, other noninterest income and trust fees. On a linked quarter basis, noninterest income decreased $1.3 million, or 10.7%, compared to the three

Page-1

The following information was filed by Southside Bancshares Inc (SBSI) on Tuesday, April 26, 2022 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

Please wait while we load the requested 10-Q report or click the link below:

https://last10k.com/sec-filings/report/705432/000070543222000063/sbsi-20220331.htm

View differences made from one quarter to another to evaluate Southside Bancshares Inc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ) — *Sample 10-K Year-over-Year (YoY) Comparison*

Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were ~~removed~~ , added and changed by Southside Bancshares Inc.

Continue

Assess how Southside Bancshares Inc's management team is paid from their Annual Proxy

Southside Bancshares Inc's Definitive Proxy Statement (Form DEF 14A) filed after their 2022 10-K Annual Report includes:

Voting Procedures
Board Members
Executive Team
Salaries, Bonuses, Perks
Peers / Competitors

Continue

Rating
Learn More

Filter Sentiment:

All

Positive

Negative

Filter Category:

All

Financial

Revenue

Other

Filter Subcategory:

All

Expense

Earnings

Cash Flow

Income

Geography

Product

Dividend

Other

Inside Southside Bancshares Inc's 10-Q Quarterly Report:

Other - Other Highlight
Key financial indicators management follows include, but are not limited to, numerous interest rate sensitivity and interest rate risk indicators, credit risk, operations risk, liquidity risk, capital risk, regulatory risk, inflation risk, competition risk, yield curve risk, U.S. agency MBS prepayment risk and economic risk indicators.

Financial - Expense Highlight
Other noninterest expense decreased for the three months ended March 31, 2022, when compared to the same period in 2021, primarily due to decreases in retirement expense related to the Retirement Plan and the Restoration Plan and decreases in computer supplies expense and losses on retired assets.
Financial - Shares Highlight
An additional risk is significant increases in interest rates, especially long-term interest rates, which could adversely impact the fair value of the AFS securities portfolio and could also impact our equity capital.
Financial - Expense Highlight
The decrease in total interest expense for the three months ended March 31, 2022 was attributable to the change in the mix of our interest bearing liabilities when compared to the same period in 2021.
Other - Other Highlight
Management's Discussion and Analysis of Financial Condition and Results of Operations - Allowance for Credit Losses - Loans and Allowance for Credit Losses - Off-Balance-Sheet Credit Exposures," "Note 1 - Summary of Significant Accounting and Reporting Policies," "Note 5 - Loans and Allowance for Loan Losses" and "Note 17 - Off-Balance-Sheet Arrangements, Commitments and Contingencies" in the 2021 Form 10-K.
Other - Other
Forward-looking statements are statements with...Read more
Other - Other
Loan Portfolios Most at Risk...Read more
Financial - Earnings
The decrease to 4.4% at...Read more
Other - Other
Allowance for Credit Losses -...Read more
Financial - Earnings
Interest rate sensitivity management seeks...Read more
Financial - Earnings
Earnings per diluted common share...Read more
Other - Other
During the last 30 years...Read more
Other - Other
These statements may include words...Read more
Financial - Expense
Total interest expense decreased $2.3...Read more
Other - Other
We consider accounting estimates that...Read more
Other - Other
By their nature, certain of...Read more
Financial - Cash Flow
The increase was primarily due...Read more
Financial - Expense
Software and data processing expense...Read more
Financial - Income
The increase in deposit services...Read more
Revenue - Geography
On March 11, 2021, the...Read more
Other - Other
These non-GAAP financial measures should...Read more
Revenue - Product
The decrease in the securities...Read more
Revenue - Product
The decrease in the securities...Read more
Financial - Earnings
Our net interest margin (FTE),...Read more
Financial - Income
The following table presents net...Read more
Revenue - Product
The decrease in MBS was...Read more
Other - Other
The market value of our...Read more
Financial - Expense
The following table details the...Read more
Other - Other
Trust fees increased for the...Read more
Financial - Income
The increase in total interest...Read more
Financial - Dividend
The payment of dividends will...Read more
Financial - Shares
Southside Bancshares, Inc. |41 Table...Read more
Financial - Shares
If a loan does not...Read more
Other - Other
Forward-Looking Statements Certain statements of...Read more
Financial - Shares
Southside Bancshares, Inc. |55 Table...Read more
Revenue - Product
Gain on sale of loans...Read more
Revenue - Product
Volume/Yield/Rate variances (change in volume...Read more
Other - Other
During the three months ended...Read more
Other - Other
In March of 2022, management...Read more
Other - Other
The increase in the net...Read more
Other - Other
As of March 31, 2022,...Read more
Other - Other
As of March 31, 2021,...Read more
Other - Other
(1) These amounts are presented...Read more
Financial - Income
Due to the unpredictable nature...Read more
Financial - Expense
Amortization of intangibles decreased for...Read more
Other - Other
Approximately 45% of our workforce...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Southside Bancshares Inc provided additional information to their SEC Filing as exhibits

Exhibit 10.1: Material Contract

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32: Section 1350 Certification

Ticker: SBSI
CIK: 705432
Form Type: 10-Q Quarterly Report
Accession Number: 0000705432-22-000063
Submitted to the SEC: Thu Apr 28 2022 3:32:17 PM EST
Accepted by the SEC: Thu Apr 28 2022
Period: Thursday, March 31, 2022
Industry: State Commercial Banks

External Resources:
Stock Quote
Social Media

Bookmark the Permalink:
https://last10k.com/sec-filings/sbsi/0000705432-22-000063.htm

Southside Bancshares Inc (SBSI) SEC Filing 10-Q Quarterly Report for the period ending Thursday, March 31, 2022

SEC Filings

SBSI Valuations

SBSI Annual Reports

SBSI Quarterly Reports

SBSI Corporate News