Southside Bancshares Inc (SBSI) Reports Q3 2023 Earnings
Southside Bancshares Inc (NASDAQ:SBSI) reported Q3 2023 net income of $18.4 million, a decrease of 31.5% compared to the same period in 2022.
Earnings per diluted common share decreased by 28.6% to $0.60 compared to $0.84 in Q3 2022.
Annualized return on average shareholders equity was 9.50%, compared to 14.23% for the same period in 2022.
Nonperforming assets remain low at 0.05% of total assets.
Southside Bancshares Inc (NASDAQ:SBSI) released its Q3 2023 earnings report on October 26, 2023. The company reported a net income of $18.4 million, a decrease of $8.5 million or 31.5% compared to $27.0 million for the same period in 2022. Earnings per diluted common share decreased $0.24, or 28.6%, to $0.60 for the three months ended September 30, 2023, from $0.84 for the same period in 2022.
Financial Performance
Southside Bancshares Inc (NASDAQ:SBSI) reported a linked quarter loan growth of 2.1%. The annualized return on third quarter average assets was 0.93%, and the annualized return on third quarter average tangible common equity was 13.17%. Nonperforming assets remained low at 0.05% of total assets.
Net income was $18.4 million for the three months ended September 30, 2023, compared to $27.0 million for the same period in 2022, a decrease of $8.5 million, or 31.5%. The decrease in net income was primarily a result of the increase in the provision for credit losses, the decrease in net interest income, and the increase in noninterest expense, partially offset by the decrease in income tax expense and the increase in noninterest income.
Income Statement Highlights
Net interest income for the three months ended September 30, 2023, was $53.3 million, compared to $55.5 million for the same period in 2022, a decrease of 4.0%. Noninterest income was $10.8 million for the three months ended September 30, 2023, an increase of $0.6 million, or 5.5%, compared to $10.3 million for the same period in 2022.
Balance Sheet Data
As of September 30, 2023, Southside Bancshares Inc (NASDAQ:SBSI) had $7.97 billion in total assets, compared to $7.56 billion at December 31, 2022, and $7.45 billion at September 30, 2022. Loans at September 30, 2023, were $4.42 billion, an increase of $357.1 million, or 8.8%, compared to $4.06 billion at September 30, 2022.
Capital Resources and Liquidity
Southside Bancshares Inc (NASDAQ:SBSI)'s capital ratios and contingent liquidity sources remain solid. During the third quarter ended September 30, 2023, the company purchased 212,388 shares of the Companys common stock at an average price of $29.39 authorized pursuant to the Stock Repurchase Plan.
Dividend
Southside Bancshares, Inc. declared a third quarter cash dividend of $0.35 per share on August 3, 2023, which was paid on September 1, 2023, to all shareholders of record as of August 17, 2023.
Explore the complete 8-K earnings release (here) from Southside Bancshares Inc for further details.
This article first appeared on GuruFocus.
