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Southside Bancshares, Inc. (SBSI)

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Previous Close25.85
Open25.86
Bid25.70 x 900
Ask25.88 x 800
Day's Range25.27 - 26.16
52 Week Range23.51 - 37.89
Volume13,876
Avg. Volume97,587
Market Cap863.325M
Beta (5Y Monthly)0.59
PE Ratio (TTM)12.50
EPS (TTM)N/A
Earnings DateN/A
Forward Dividend & Yield1.24 (4.80%)
Ex-Dividend DateAug 19, 2020
1y Target EstN/A
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  • Southside Bancshares, Inc. Announces Financial Results for the Third Quarter Ended September 30, 2020
    GlobeNewswire

    Southside Bancshares, Inc. Announces Financial Results for the Third Quarter Ended September 30, 2020

    * Third quarter diluted earnings per share of $0.82, an increase of 41.4% compared to same period in 2019; * Third quarter net income of $27.1 million, an increase of 36.8% compared to same period in 2019; * Annualized return on third quarter average tangible equity of 17.73%(1); * Nonperforming assets remain low at 0.23% of total assets; * Total COVID-19 modified loans decreased 76.5%, to $76.5 million; * Allowance for loan losses to total loans, 1.45%.TYLER, Texas, Oct. 23, 2020 (GLOBE NEWSWIRE) -- Southside Bancshares, Inc. (“Southside” or the “Company”) (NASDAQ: SBSI) today reported its financial results for the quarter ended September 30, 2020.  Southside reported net income of $27.1 million for the three months ended September 30, 2020, an increase of $7.3 million, or 36.8%, compared to $19.8 million for the same period in 2019.  Earnings per diluted common share increased $0.24, or 41.4%, to $0.82 for the three months ended September 30, 2020, from $0.58 for the same period in 2019.  The annualized return on average shareholders’ equity for the three months ended September 30, 2020 was 12.89%, compared to 9.78% for the same period in 2019.  The annualized return on average assets was 1.48% for the three months ended September 30, 2020, compared to 1.23% for the same period in 2019.“I am delighted to report Southside’s strong third quarter financial results,” stated Lee R. Gibson, President and Chief Executive Officer of Southside. “We reported a return on third quarter average tangible equity of 17.73% as net income increased 36.8% compared to the same period in 2019, largely driven by a decrease in provision for credit losses and an increase in net interest income that was partially offset by an increase in noninterest expense.  Asset quality metrics remain solid with nonperforming assets to total assets decreasing to 0.23%.  As of October 20, 2020 and since the release of our second quarter results in July, total COVID-19 modified loans have decreased approximately $249 million, or 76.5%, from $326 million as of July 20, to $76.5 million, or 2.2% of total loans, net of Paycheck Protection Program (“PPP”) loans.  On a linked quarter basis our net interest margin(1) remained unchanged at 3.02%, while the net interest spread(1) increased two basis points to 2.84%.”“During the third quarter loans decreased $62.6 million primarily due to a few large payoffs in commercial real estate loans.  Our loan pipeline is growing as lending opportunities in our markets are steadily increasing.  Our balance sheet, capital position and underlying earnings continue to be a source of strength, as reflected in our third quarter results.”“On October 3, Southside celebrated its 60th Anniversary with various activities, including a customer appreciation day in our branches.  We were honored to virtually ring the Nasdaq Opening Bell in celebration of our 60th anniversary on September 28.  Over the last 60 years, we have experienced tremendous growth, expanded our footprint to many communities in Texas and formed meaningful long-standing relationships with our customers.  We have been blessed with exceptional team members and customers who have played an integral role in our success and together, we look forward to further expanding and growing Southside’s Texas franchise.”  “While the pandemic continues to impact the markets we serve and many uncertainties remain, we are encouraged by the increased economic activity in our markets.  I continue to be extremely proud of the dedication and professionalism consistently shown by our team members as they safely and efficiently serve our customers and I want to thank each of them publicly.”Operating Results for the Three Months Ended September 30, 2020Net income was $27.1 million for the three months ended September 30, 2020, compared to $19.8 million for the same period in 2019, an increase of $7.3 million, or 36.8%.  Earnings per diluted common share were $0.82 for the three months ended September 30, 2020, compared to $0.58 for the same period in 2019, an increase of 41.4%.  The increase in net income was largely driven by the increase in net interest income and the decrease in the provision for credit losses, partially offset by an increase in noninterest expense.  Annualized returns on average assets and average shareholders’ equity for the three months ended September 30, 2020 were 1.48% and 12.89%, respectively.  Our efficiency ratio (FTE)(1) was 50.07% for the three months ended September 30, 2020, compared to 48.29% for the three months ended June 30, 2020. Net interest income for the three months ended September 30, 2020 was $46.6 million compared to $42.4 million for the same period in 2019.  The increase in net interest income compared to the same period in 2019 was primarily due to the decrease in interest expense on our interest bearing liabilities, a result of lower funding costs, partially offset by a decrease in interest income due to a decrease in the average yield on our interest earning assets during the three months ended September 30, 2020.  Linked quarter, net interest income decreased $0.7 million, or 1.4%, compared to $47.3 million during the three months ended June 30, 2020.  The decrease was primarily due to decreases in interest income on mortgage related securities and loans, partially offset by decreases in interest expense on deposits and FHLB borrowings.Our tax equivalent net interest margin(1) was 3.02% for the three months ended September 30, 2020, compared to 3.03% for the same period in 2019.  Our tax equivalent net interest margin linked quarter remained unchanged from 3.02% for the three months ended June 30, 2020.Noninterest income was $11.1 million for the three months ended September 30, 2020 and 2019, with only a slight increase of $30,000, or 0.3%.  On a linked quarter basis, noninterest income decreased $1.1 million, or 8.6%, due to a $2.6 million decrease in net gain on sale of securities available for sale, partially offset by an increase in deposit services income, other noninterest income and gain on sale of loans.Noninterest expense was $31.6 million for the three months ended September 30, 2020, an increase of $2.6 million, or 8.9%, compared to $29.0 million for the same period in 2019. The increase was the result of increases in other noninterest expense, salaries and employee benefits and FDIC insurance.  On a linked quarter basis, noninterest expense increased $1.8 million, or 5.9%, compared to the three months ended June 30, 2020.  The increase was due to increases in salaries and employee benefits, other noninterest expense and FDIC insurance.Income tax expense increased $0.1 million for the three months ended September 30, 2020 compared to the same period in 2019.  On a linked quarter basis, income tax expense increased $1.0 million, or 34.7%.  Our effective tax rate (“ETR”) decreased to 12.3% for the three months ended September 30, 2020 compared to 15.6% for the three months ended September 30, 2019 and increased compared to 11.5% for the three months ended June 30, 2020.  The lower ETR for the three months ended September 30, 2020, as compared to the same period in 2019, was primarily due to an increase in tax-exempt income as a percentage of pre-tax income for the three months ended September 30, 2020.  On a linked quarter basis, the increase in ETR for the three months ended September 30, 2020 was due to a decrease in tax-exempt income as a percentage of pre-tax income.Operating Results for the Nine Months Ended September 30, 2020 Net income was $52.6 million for the nine months ended September 30, 2020, compared to $57.2 million for the same period in 2019, a decrease of $4.6 million, or 8.1%.  Earnings per diluted common share were $1.58 for the nine months ended September 30, 2020, compared to $1.69 for the same period in 2019, a decrease of 6.5%.  The decrease in net income was primarily driven by an increase in the provision for credit losses after adopting ASU 2016-13(2) (“CECL”) and an increase in noninterest expense, partially offset by an increase in net interest income, an increase in noninterest income and a decrease in income tax expense.  The increase in the provision for credit losses for the nine months ended September 30, 2020 was primarily due to the economic environment related to COVID-19 and the resulting impact on the economic assumptions used in the CECL model.  The adoption of CECL(2) replaced the incurred loss model with an expected credit loss methodology.  Annualized returns on average assets and average shareholders’ equity for the nine months ended September 30, 2020 were 0.98% and 8.56%, respectively.  Our efficiency ratio (FTE)(1) was 50.06%  for the nine months ended September 30, 2020, compared to 51.85% for the nine months ended September 30, 2019. Net interest income for the nine months ended September 30, 2020 was $138.6 million, compared to $126.6 million during the same period in 2019, an increase of $11.9 million, or 9.4%.  The increase in net interest income compared to the same period in 2019 was due to the decrease in interest expense on our interest bearing liabilities, a result of lower funding costs on our interest bearing liabilities, partially offset by a decrease in interest income due to a lower yield on our interest earning assets during the nine months ended September 30, 2020.Our tax equivalent net interest margin(1) was 3.02% for the nine months ended September 30, 2020, compared to 3.09% for the same period in 2019.  The decrease was due to the shift in interest earning assets from higher yielding loans into securities and to a lesser extent, lower yielding average PPP loan balances included during the nine months ended September 30, 2020.Noninterest income was $38.8 million for the nine months ended September 30, 2020, an increase of 21.7%, compared to $31.9 million for the same period in 2019.  The increase was due to the increases in net gain on sale of securities available for sale and gain on sale of loans, partially offset by decreases in deposit services income and trust fees.Noninterest expense was $92.0 million for the nine months ended September 30, 2020, compared to $88.4 million for the same period in 2019, an increase of $3.6 million, or 4.1%.  The increase was the result of increases in salaries and employee benefits, other noninterest expense, net occupancy expense and software and data processing expense, partially offset by decreases in amortization of intangibles and advertising, travel and entertainment expense.Income tax expense decreased $3.3 million, or 31.8%, for the nine months ended September 30, 2020, compared to the same period in 2019.  Our ETR was approximately 11.9% and 15.3% for the nine months ended September 30, 2020 and 2019, respectively.  The lower ETR for the nine months ended September 30, 2020, as compared to the same period in 2019, was primarily due to an increase in tax-exempt income as a percentage of pre-tax income.Balance Sheet DataAt September 30, 2020, we had $7.19 billion in total assets, compared to $6.75 billion at December 31, 2019 and $6.54 billion at September 30, 2019.Loans at September 30, 2020 were $3.79 billion, an increase of $290.1 million, or 8.3%, compared to $3.50 billion at September 30, 2019.  Linked quarter loans decreased $62.6 million, or 1.6%, from $3.85 billion at June 30, 2020.  The linked quarter net decrease in loans consisted primarily of decreases of $79.3 million of commercial real estate loans, $23.5 million of 1-4 family residential loans and $10.0 million of commercial loans, partially offset by increases of $39.6 million of construction loans, $9.9 million of municipal loans and $0.7 million of loans to individuals.  On a linked quarter basis, our PPP loans, net of deferred fees and included in the commercial loan category, increased $3.3 million, or 1.1%, from $299.5 million to $302.8 million.   Securities at September 30, 2020 were $2.75 billion, an increase of $367.3 million, or 15.4%, compared to $2.38 billion at September 30, 2019.  The increase occurred primarily during the first quarter of 2020.  Linked quarter, securities decreased $51.3 million, or 1.8%, from $2.80 billion at June 30, 2020 primarily due to principal pay downs of mortgage related securities.Deposits at September 30, 2020 were $5.10 billion, an increase of $612.3 million, or 13.6%, compared to $4.49 billion at September 30, 2019, largely driven by PPP loan disbursements deposited into our commercial accounts, stimulus checks deposited during the second quarter and an increase in public fund deposits.  Linked quarter, deposits increased $32.5 million, or 0.6%, from $5.07 billion at June 30, 2020, primarily due to an increase in individual interest bearing savings accounts, commercial interest bearing checking accounts and brokered certificates of deposits. CECL Adoption and Asset QualityDuring the first quarter of 2020, we adopted ASU 2016-13, Financial Instruments - Credit Losses, often referred to as CECL. Upon the adoption of CECL, we recorded a cumulative-effect adjustment that decreased retained earnings by $7.8 million, net of tax. This adjustment was the result of a $5.3 million increase in the allowance for loan losses, from $24.8 million at December 31, 2019 to $30.1 million upon adoption, including $0.2 million for purchased loans with credit deterioration, and a $4.8 million increase in other liabilities related to the allowance for off-balance-sheet credit exposures. Based on the credit quality of our securities portfolio, the adoption of CECL did not result in the recording of an allowance for credit losses on our held-to-maturity securities.Nonperforming assets at September 30, 2020 were $16.8 million, or 0.23% of total assets, a decrease of $0.6 million, or 3.6%, compared to $17.4 million, or 0.26% of total assets, at December 31, 2019, and a decrease from $17.6 million, or 0.24% of total assets, at June 30, 2020.  During the three months ended September 30, 2020, nonaccrual loans increased $0.3 million, or 5.9%.The allowance for loan losses increased to $55.1 million, or 1.45% of total loans at September 30, 2020, compared to $24.8 million, or 0.69% of total loans, at December 31, 2019.  The allowance for loan losses was $59.9 million, or 1.55% of total loans at June 30, 2020.  The increase year-to-date is due to the adoption of CECL and the economic uncertainty related to the COVID-19 pandemic and resulting expected losses. For the three months ended September 30, 2020, we recorded a reversal of provision for credit losses for loans of $4.4 million, compared to a provision for loan losses of $1.0 million for the three months ended September 30, 2019 and a provision for credit losses of $6.3 million for the three months ended June 30, 2020.  The provision for credit losses for the nine months ended September 30, 2020 was $26.0 million, compared to $2.6 million for the nine months ended September 30, 2019.  The increase during 2020 was primarily due to the economic impact of COVID-19 on macroeconomic factors used in the CECL methodology, including the potential for credit deterioration.  The partial reversal of provision for credit losses during the three months ended September 30, 2020, was largely driven by an improvement in the economic forecasts and the decrease in commercial real estate loans.  However, if the COVID-19 pandemic and economic impact is prolonged, it is likely that credit losses and nonperforming assets may increase.  Net charge-offs were $0.4 million for the three months ended September 30, 2020, compared to net charge-offs of $0.6 million for the three months ended September 30, 2019 and $0.1 million of net charge-offs for the three months ended June 30, 2020.   Net charge-offs were $1.0 million for the nine months ended September 30, 2020, compared to $4.5 million for the nine months ended September 30, 2019.For the three months ended September 30, 2020 and 2019, we recorded a reversal of provision for credit losses for off-balance-sheet credit exposures of $0.3 million and a reversal of provision of $1.1 million for the three months ended June 30, 2020.  The reversal of provision of $0.3 million for the three months ended September 30, 2020 was a result of an improvement in economic forecasts and a lower balance of off-balance-sheet credit exposures compared to the three months ended June 30, 2020.  The reversal of provision for credit losses for off-balance-sheet credit exposures for the nine months ended September 30, 2020 was $0.3 million, compared to a reversal of provision of $0.4 million for the nine months ended September 30, 2019.  The balance of the allowance for off-balance-sheet credit exposures at September 30, 2020 was $6.0 million, and is included in other liabilities.DividendSouthside Bancshares, Inc. declared a third quarter cash dividend of $0.31 per share on August 6, 2020, which was paid on September 3, 2020, to all shareholders of record as of August 20, 2020._______________ (1)  Refer to “Non-GAAP Financial Measures” below and to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for more information and for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.(2) We adopted ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” on January 1, 2020.  ASU 2016-13 replaced the incurred loss model with an expected loss methodology that is referred to as current expected credit loss. Adoption of this guidance on January 1, 2020, resulted in a cumulative-effect adjustment to reduce retained earnings by $7.8 million, net of tax.  Due to the adoption of the guidance under the modified retrospective approach, prior periods have not been adjusted and thus may not be comparable.  Conference CallSouthside's management team will host a conference call to discuss its third quarter ended September 30, 2020 financial results on Friday, October 23, 2020 at 9:00 a.m. CDT.  The call can be accessed by dialing 844-775-2540 and by identifying the conference ID number 6077847 or by identifying “Southside Bancshares, Inc., Third Quarter 2020 Earnings Call.”  To listen to the call via webcast, register at https://investors.southside.com.For those unable to listen to the conference call live, a recording will be available from approximately 12:00 p.m. CDT October 23, 2020 through 11:00 a.m. CST November 4, 2020 by accessing the company website, https://investors.southside.com.Non-GAAP Financial MeasuresOur accounting and reporting policies conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry.  However, certain non-GAAP measures are used by management to supplement the evaluation of our performance.  These include the following fully taxable-equivalent measures (“FTE”): (i) Net interest income (FTE), (ii) Net interest margin (FTE), (iii) Net interest spread (FTE), and (iv) Efficiency ratio (FTE), which include the effects of taxable-equivalent adjustments using a federal income tax rate of 21% for the three and nine months ended September 30, 2020 and 2019 to increase tax-exempt interest income to a tax-equivalent basis.  Interest income earned on certain assets is completely or partially exempt from federal income tax.  As such, these tax-exempt instruments typically yield lower returns than taxable investments.Net interest income (FTE), Net interest margin (FTE) and Net interest spread (FTE).  Net interest income (FTE) is a non-GAAP measure that adjusts for the tax-favored status of net interest income from certain loans and investments.  We believe this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources.  The most directly comparable financial measure calculated in accordance with GAAP is our net interest income.  Net interest margin (FTE) is the ratio of net interest income (FTE) to average earning assets.  The most directly comparable financial measure calculated in accordance with GAAP is our net interest margin.  Net interest spread (FTE) is the difference in the average yield on average earning assets on a tax-equivalent basis and the average rate paid on average interest bearing liabilities.  The most directly comparable financial measure calculated in accordance with GAAP is our net interest spread.Efficiency ratio (FTE).  The efficiency ratio (FTE) is a non-GAAP measure that provides a measure of productivity in the banking industry.  This ratio is calculated to measure the cost of generating one dollar of revenue.  The ratio is designed to reflect the percentage of one dollar which must be expended to generate that dollar of revenue.  We calculate this ratio by dividing noninterest expense, excluding amortization expense on intangibles and certain nonrecurring expense by the sum of net interest income (FTE) and noninterest income, excluding net gain (loss) on sale of securities available for sale and certain nonrecurring impairments.  The most directly comparable financial measure calculated in accordance with GAAP is our efficiency ratio.These non-GAAP financial measures should not be considered alternatives to GAAP-basis financial statements and other bank holding companies may define or calculate these non-GAAP measures or similar measures differently.  Whenever we present a non-GAAP financial measure in an SEC filing, we are also required to present the most directly comparable financial measure calculated and presented in accordance with GAAP and reconcile the differences between the non-GAAP financial measure and such comparable GAAP measure.Management believes adjusting net interest income, net interest margin and net interest spread to a fully taxable-equivalent basis is a standard practice in the banking industry as these measures provide useful information to make peer comparisons.  Tax-equivalent adjustments are reflected in the respective earning asset categories as listed in the “Average Balances with Average Yields and Rates” tables.A reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.About Southside Bancshares, Inc.Southside Bancshares, Inc. is a bank holding company with approximately $7.19 billion in assets as of September 30, 2020, that owns 100% of Southside Bank.  Southside Bank currently has 57 branches in Texas and operates a network of 80 ATMs/ITMs.  To learn more about Southside Bancshares, Inc., please visit our investor relations website at https://investors.southside.com.  Our investor relations site provides a detailed overview of our activities, financial information and historical stock price data.  To receive e-mail notification of company news, events and stock activity, please register on the E-mail Notification portion of the website.  Questions or comments may be directed to Lindsey Bailes at (903) 630-7965, or lindsey.bailes@southside.com.Forward-Looking StatementsCertain statements of other than historical fact that are contained in this press release and in other written material, documents and oral statements issued by or on behalf of the Company may be considered to be “forward-looking statements” within the meaning of and subject to the safe harbor protections of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date.  These statements may include words such as “expect,” “estimate,” “project,” “anticipate,” “appear,” “believe,” “could,” “should,” “may,” “likely,” “intend,” “probability,” “risk,” “target,” “objective,” “plans,” “potential,” and similar expressions.  Forward-looking statements are statements with respect to the Company’s beliefs, plans, expectations, objectives, goals, anticipations, assumptions and estimates about the Company's future performance and are subject to significant known and unknown risks and uncertainties, which could cause the Company's actual results to differ materially from the results discussed in the forward-looking statements.  For example, discussions about trends in asset quality, capital, liquidity, the pace of loan and revenue growth, the Company's ability to sell nonperforming assets, expense reductions, planned operational efficiencies, earnings, successful integration of completed acquisitions and certain market risk disclosures, including the impact of interest rates, tax reform and other economic factors, are based upon information presently available to management and are dependent on choices about key model characteristics and assumptions and are subject to various limitations.  By their nature, certain of the market risk disclosures are only estimates and could be materially different from what actually occurs in the future.  The most recent factor that could cause future results to differ materially from those anticipated by our forward-looking statements include the negative impact of the COVID-19 pandemic on our business, financial position, operations and prospects, including our ability to continue our business activities in certain communities we serve, the duration of the pandemic and its continued effects on financial markets, a reduction in financial transactions and business activities resulting in decreased deposits and reduced loan originations, increases in unemployment rates impacting our borrowers' ability to repay their loans, our ability to manage liquidity in a rapidly changing and unpredictable market, additional interest rate changes by the Federal Reserve and other government actions in response to the pandemic, including additional quarantines, regulations or laws enacted to counter the effects of the COVID-19 pandemic on the economy.Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, under “Part I - Item 1. Forward Looking Information” and “Part I - Item 1A. Risk Factors,” “the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 and the quarter ended June 30, 2020, under Part II - Item 1A. Risk Factors” and in the Company’s other filings with the Securities and Exchange Commission.  The Company disclaims any obligation to update any factors or to announce publicly the result of revisions to any of the forward-looking statements included herein to reflect future events or developments. Southside Bancshares, Inc. Consolidated Financial Summary (Unaudited) (Dollars in thousands)  As of  2020 2019  Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, ASSETS          Cash and due from banks$81,643   $81,271   $71,727   $66,949   $92,300   Interest earning deposits14,561   19,535   40,486   43,748   22,524   Securities available for sale, at estimated fair value2,633,519   2,679,521   2,813,024   2,358,597   2,240,381   Securities held to maturity, at net carrying value115,089   120,384   134,491   134,863   140,955   Total securities2,748,608   2,799,905   2,947,515   2,493,460   2,381,336   Federal Home Loan Bank stock, at cost35,860   55,689   54,696   50,087   45,039   Loans held for sale8,686   3,392   1,830   383   1,000   Loans3,789,975   3,852,571   3,601,002   3,568,204   3,499,917   Less: Allowance for loan losses(55,110)  (59,868)  (53,638)  (24,797)  (25,129)  Net loans3,734,865   3,792,703   3,547,364   3,543,407   3,474,788   Premises & equipment, net147,169   147,715   146,212   143,912   141,683   Goodwill201,116   201,116   201,116   201,116   201,116   Other intangible assets, net10,569   11,450   12,381   13,361   14,391   Bank owned life insurance114,928   114,248   101,066   100,498   99,916   Other assets92,955   102,587   149,245   91,992   67,982   Total assets$7,190,960   $7,329,611   $7,273,638   $6,748,913   $6,542,075              LIABILITIES AND SHAREHOLDERS' EQUITY          Noninterest bearing deposits$1,363,228   $1,398,179   $1,065,708   $1,040,112   $1,038,695   Interest bearing deposits3,739,798   3,672,365   3,673,415   3,662,657   3,452,072   Total deposits5,103,026   5,070,544   4,739,123   4,702,769   4,490,767   Other borrowings and Federal Home Loan Bank borrowings994,512   1,165,463   1,492,270   1,001,102   988,577   Subordinated notes, net of unamortized debt issuance costs98,708   98,663   98,619   98,576   98,532   Trust preferred subordinated debentures, net of unamortized debt issuance costs60,254   60,253   60,251   60,250   60,249   Other liabilities95,312   117,083   87,575   81,636   93,497   Total liabilities6,351,812   6,512,006   6,477,838   5,944,333   5,731,622   Shareholders' equity839,148   817,605   795,800   804,580   810,453   Total liabilities and shareholders' equity$7,190,960   $7,329,611   $7,273,638   $6,748,913   $6,542,075                             Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands) Three Months Ended  2020 2019  Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Income Statement:          Total interest income$55,677  $58,495  $60,752  $60,533  $60,555  Total interest expense9,091  11,224  16,051  17,357  18,182  Net interest income46,586  47,271  44,701  43,176  42,373  Provision for credit losses (1)(4,746) 5,245  25,247  2,508  1,005  Net interest income after provision for credit losses51,332  42,026  19,454  40,668  41,368  Noninterest income          Deposit services6,129  5,532  6,279  6,647  6,753  Net gain on sale of securities available for sale78  2,662  5,541  42  42  Gain on sale of loans1,071  683  170  104  131  Trust fees1,253  1,221  1,305  1,685  1,523  Bank owned life insurance680  650  569  582  622  Brokerage services564  499  580  531  555  Other1,366  946  1,054  874  1,485  Total noninterest income11,141  12,193  15,498  10,465  11,111  Noninterest expense          Salaries and employee benefits19,344  18,629  19,643  19,406  18,388  Net occupancy3,595  3,668  3,311  3,234  3,430  Advertising, travel & entertainment519  292  832  791  593  ATM expense271  233  224  236  232  Professional fees961  1,082  1,195  1,142  1,192  Software and data processing1,215  1,295  1,227  1,259  1,116  Communications495  506  493  485  480  FDIC insurance469  174  25  —  —  Amortization of intangibles881  931  980  1,030  1,080  Other (1)3,866  3,046  2,590  3,361  2,515  Total noninterest expense31,616  29,856  30,520  30,944  29,026  Income before income tax expense30,857  24,363  4,432  20,189  23,453  Income tax expense3,783  2,809  479  2,854  3,661  Net income$27,074  $21,554  $3,953  $17,335  $19,792             Common Share Data:    Weighted-average basic shares outstanding33,047  33,016  33,691  33,790  33,773  Weighted-average diluted shares outstanding33,098  33,083  33,805  33,934  33,901  Common shares outstanding end of period33,072  33,032  33,012  33,823  33,795  Earnings per common share          Basic$0.82  $0.65  $0.12  $0.51  $0.59  Diluted0.82  0.65  0.12  0.51  0.58  Book value per common share25.37  24.75  24.11  23.79  23.98  Tangible book value per common share (2)18.97  18.32  17.64  17.45  17.60  Cash dividends paid per common share0.31  0.31  0.31  0.34  0.31             Selected Performance Ratios:          Return on average assets1.48 % 1.17% 0.23% 1.03% 1.23% Return on average shareholders’ equity12.89  10.82  1.93  8.42  9.78  Return on average tangible common equity (2)17.73  15.24  3.11  11.97  13.96  Average yield on earning assets (FTE) (2)3.57  3.69  4.06  4.12  4.28  Average rate on interest bearing liabilities0.73  0.87  1.30  1.46  1.60  Net interest spread (FTE) (2)2.84  2.82  2.76  2.66  2.68  Net interest margin (FTE) (2)3.02  3.02  3.03  2.98  3.03  Average earning assets to average interest bearing liabilities131.92  129.03  126.22  128.00  128.33  Noninterest expense to average total assets1.73  1.63  1.78  1.85  1.80  Efficiency ratio (FTE) (2)50.07  48.29  51.91  53.87  50.53  1. Upon adoption of CECL on January 1, 2020, the provision for credit losses is the sum of the provision for loan losses and the provision for off-balance-sheet credit exposures.  Prior to the adoption of CECL, the provision for off-balance-sheet credit exposures was included in other noninterest expense. 2. Refer to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure. Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars and shares in thousands, except per share data) Three Months Ended  2020 2019  Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Nonperforming Assets:$16,822  $17,600  $17,403  $17,449  $29,747  Nonaccrual loans (1)5,971  5,639  5,221  4,963  17,148  Accruing loans past due more than 90 days (1)—  —  —  —  —  Troubled debt restructured loans (2)10,307  11,367  11,448  12,014  11,683  Other real estate owned536  586  734  472  912  Repossessed assets8  8  —  —  4             Asset Quality Ratios:          Nonaccruing loans to total loans0.16% 0.15% 0.14% 0.14% 0.49% Allowance for loan losses to nonaccruing loans922.96  1,061.68  1,027.35  499.64  146.54  Allowance for loan losses to nonperforming assets327.61  340.16  308.21  142.11  84.48  Allowance for loan losses to total loans1.45  1.55  1.49  0.69  0.72  Nonperforming assets to total assets0.23  0.24  0.24  0.26  0.45  Net charge-offs (recoveries) to average loans0.04  0.01  0.06  0.32  0.07             Capital Ratios:          Shareholders’ equity to total assets11.67  11.15  10.94  11.92  12.39  Common equity tier 1 capital14.24  13.68  12.81  14.07  14.19  Tier 1 risk-based capital15.63  15.06  14.13  15.46  15.61  Total risk-based capital19.03  18.51  17.35  18.43  18.65  Tier 1 leverage capital9.50  9.05  9.45  10.18  10.46  Period end tangible equity to period end tangible assets (3)8.99  8.50  8.25  9.03  9.40  Average shareholders’ equity to average total assets11.49  10.86  11.94  12.28  12.54  1. Prior to the adoption of CECL, excluded purchased credit impaired loans measured at fair value at acquisition if the timing and amount of cash flows expected to be collected from those sales could be reasonably estimated. 2. Prior to the adoption of CECL, included $0.8 million in PCI loans restructured as of December 31, 2019 and September 30, 2019. 3. Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure. Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands) Three Months Ended  2020 2019 Loan Portfolio CompositionSep 30, Jun 30, Mar 31, Dec 31, Sep 30, Real Estate Loans:            Construction$610,394   $570,801   $603,952   $644,948   $621,040     1-4 Family Residential738,343   761,815   787,875   787,562   792,638     Commercial1,327,233   1,406,541   1,350,818   1,250,208   1,236,307   Commercial Loans629,170   639,162   383,984   401,521   382,077   Municipal Loans387,286   377,428   375,934   383,960   366,906   Loans to Individuals97,549   96,824   98,439   100,005   100,949   Total Loans$3,789,975   $3,852,571   $3,601,002   $3,568,204   $3,499,917              Summary of Changes in Allowances:          Allowance for Loan Losses          Balance at beginning of period$59,868   $53,638   $24,797   $25,129   $24,705   Impact of CECL adoption (1) \- cumulative effect adjustment—   —   5,072   —   —   Impact of CECL adoption - purchased loans with credit deterioration—   —   231   —   —   Loans charged-off(718)  (546)  (995)  (3,251)  (1,000)  Recoveries of loans charged-off361   436   451   411   419   Net loans (charged-off) recovered(357)  (110)  (544)  (2,840)  (581)  Provision for (reversal of) for loan losses(4,401)  6,340   24,082   2,508   1,005   Balance at end of period$55,110   $59,868   $53,638   $24,797   $25,129              Allowance for Off-Balance-Sheet Credit Exposures          Balance at beginning of period$6,365   $7,460   $1,455   $1,540   $1,859   Impact of CECL adoption (1)—   —   4,840   —   —   Provision for (reversal of) off-balance-sheet credit exposures (2)(345)  (1,095)  1,165   (85)  (319)  Balance at end of period$6,020   $6,365   $7,460   $1,455   $1,540   Total Allowance for Credit Losses$61,130   $66,233   $61,098   $26,252   $26,669                             1. We adopted ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” on January 1, 2020.  ASU 2016-13 replaced the incurred loss model with an expected loss methodology that is referred to as current expected credit losses (“CECL”).  Adoption of this guidance on January 1, 2020, resulted in a cumulative-effect adjustment to reduce retained earnings by $7.8 million, net of tax.  2. Prior to the adoption of CECL on January 1, 2020, the provision for off-balance-sheet credit exposures was included in other noninterest expense. Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars and shares in thousands, except per share data) Nine Months Ended  September 30,  2020 2019 Income Statement:    Total interest income$174,924  $180,254  Total interest expense36,366  53,625  Net interest income138,558  126,629  Provision for credit losses (1)25,746  2,593  Net interest income after provision for credit losses112,812  124,036  Noninterest income    Deposit services17,940  19,391  Net gain on sale of securities available for sale8,281  714  Gain on sale of loans1,924  405  Trust fees3,779  4,584  Bank owned life insurance1,899  1,725  Brokerage services1,643  1,549  Other3,366  3,535  Total noninterest income38,832  31,903  Noninterest expense    Salaries and employee benefits57,616  54,325  Net occupancy10,574  9,894  Advertising, travel & entertainment1,643  2,173  ATM expense728  658  Professional fees3,238  3,575  Software and data processing3,737  3,278  Communications1,494  1,456  FDIC insurance668  859  Amortization of intangibles2,792  3,388  Other (1)9,502  8,747  Total noninterest expense91,992  88,353  Income before income tax expense59,652  67,586  Income tax expense7,071  10,367  Net income$52,581  $57,219       Common Share Data:    Weighted-average basic shares outstanding33,250  33,732  Weighted-average diluted shares outstanding33,331  33,878  Common shares outstanding end of period33,072  33,795  Earnings per common share    Basic$1.58  $1.70  Diluted1.58  1.69  Book value per common share25.37  23.98  Tangible book value per common share (2)18.97  17.60  Cash dividends paid per common share0.93  0.92       Selected Performance Ratios:    Return on average assets0.98% 1.21% Return on average shareholders’ equity8.56  9.93  Return on average tangible common equity (2)12.05  14.47  Average yield on earning assets (FTE) (2)3.77  4.34  Average rate on interest bearing liabilities0.96  1.61  Net interest spread (FTE) (2)2.81  2.73  Net interest margin (FTE) (2)3.02  3.09  Average earning assets to average interest bearing liabilities129.07  128.34  Noninterest expense to average total assets1.71  1.87  Efficiency ratio (FTE) (2)50.06  51.85  1. Upon adoption of CECL on January 1, 2020, the provision for credit losses is the sum of the provision for loan losses and the provision for off-balance-sheet credit exposures.  Prior to the adoption of CECL, the provision for off-balance-sheet credit exposures was included in other noninterest expense. 2. Refer to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure. Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands) Nine Months Ended  September 30,  2020 2019 Nonperforming Assets:$16,822  $29,747  Nonaccrual loans (1)5,971  17,148  Accruing loans past due more than 90 days (1)—  —  Troubled debt restructured loans (2)10,307  11,683  Other real estate owned536  912  Repossessed assets8  4       Asset Quality Ratios:    Nonaccruing loans to total loans0.16% 0.49% Allowance for loan losses to nonaccruing loans922.96  146.54  Allowance for loan losses to nonperforming assets327.61  84.48  Allowance for loan losses to total loans1.45  0.72  Nonperforming assets to total assets0.23  0.45  Net charge-offs (recoveries) to average loans0.04  0.18       Capital Ratios:    Shareholders’ equity to total assets11.67  12.39  Common equity tier 1 capital14.24  14.19  Tier 1 risk-based capital15.63  15.61  Total risk-based capital19.03  18.65  Tier 1 leverage capital9.50  10.46  Period end tangible equity to period end tangible assets (3)8.99  9.40  Average shareholders’ equity to average total assets11.42  12.21  1. Prior to the adoption of CECL, excluded purchased credit impaired loans measured at fair value at acquisition if the timing and amount of cash flows expected to be collected from those sales could be reasonably estimated. 2. Prior to the adoption of CECL, included $0.8 million in PCI loans restructured as of September 30, 2019. 3. Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure. Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars and shares in thousands, except per share data) Nine Months Ended  September 30, Loan Portfolio Composition2020 2019 Real Estate Loans:    Construction$610,394   $621,040   1-4 Family Residential738,343   792,638   Commercial1,327,233   1,236,307   Commercial Loans629,170   382,077   Municipal Loans387,286   366,906   Loans to Individuals97,549   100,949   Total Loans$3,789,975   $3,499,917        Summary of Changes in Allowances:    Allowance for Loan Losses    Balance at beginning of period$24,797   $27,019   Impact of CECL adoption (1) \- cumulative effect adjustment5,072   —   Impact of CECL adoption - purchased loans with credit deterioration231   —   Loans charged-off(2,259)  (5,682)  Recoveries of loans charged-off1,248   1,199   Net loans (charged-off) recovered(1,011)  (4,483)  Provision for (reversal of) for loan losses26,021   2,593   Balance at end of period$55,110   $25,129        Allowance for Off-Balance-Sheet Credit Exposures    Balance at beginning of period$1,455   $1,890   Impact of CECL adoption (1)4,840   —   Provision for (reversal of) off-balance-sheet credit exposures (2)(275)  (350)  Balance at end of period$6,020   $1,540   Total Allowance for Credit Losses$61,130   $26,669              1. We adopted ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” on January 1, 2020.  ASU 2016-13 replaced the incurred loss model with an expected loss methodology that is referred to as current expected credit losses (“CECL”).  Adoption of this guidance on January 1, 2020, resulted in a cumulative-effect adjustment to reduce retained earnings by $7.8 million, net of tax.  2. Prior to the adoption of CECL on January 1, 2020, the provision for off-balance-sheet credit exposures was included in other noninterest expense. Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands)The tables that follow show average earning assets and interest bearing liabilities together with the average yield on the earning assets and the average rate of the interest bearing liabilities for the periods presented.  The interest and related yields presented are on a fully taxable-equivalent basis and are therefore non-GAAP measures.  See “Non-GAAP Financial Measures” and “Non-GAAP Reconciliation” for more information. Three Months Ended  September 30, 2020 June 30, 2020  Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/Rate ASSETS            Loans (1)$3,815,989   $38,842  4.05% $3,826,383   $39,766  4.18% Loans held for sale3,934   31  3.13% 3,213   28  3.50% Securities:            Taxable investment securities (2)145,724   1,175  3.21% 94,247   732  3.12% Tax-exempt investment securities (2)1,295,179   11,418  3.51% 1,320,772   11,560  3.52% Mortgage-backed and related securities (2)1,209,913   7,048  2.32% 1,359,941   9,044  2.67% Total securities2,650,816   19,641  2.95% 2,774,960   21,336  3.09% Federal Home Loan Bank stock, at cost, and equity investments60,528   249  1.64% 67,582   360  2.14% Interest earning deposits17,668   17  0.38% 24,097   23  0.38% Total earning assets6,548,935   58,780  3.57% 6,696,235   61,513  3.69% Cash and due from banks80,368       78,326       Accrued interest and other assets699,351       660,411       Less:  Allowance for loan losses(61,212)      (55,908)      Total assets$7,267,442       $7,379,064       LIABILITIES AND SHAREHOLDERS’ EQUITY            Savings accounts$461,895   192  0.17% $426,420   187  0.18% Certificates of deposits1,172,179   3,568  1.21% 1,187,665   4,817  1.63% Interest bearing demand accounts2,069,751   1,102  0.21% 2,013,770   1,225  0.24% Total interest bearing deposits3,703,825   4,862  0.52% 3,627,855   6,229  0.69% Federal Home Loan Bank borrowings1,037,855   2,369  0.91% 1,197,097   2,929  0.98% Subordinated notes, net of unamortized debt issuance costs98,686   1,427  5.75% 98,641   1,412  5.76% Trust preferred subordinated debentures, net of unamortized debt issuance costs60,253   378  2.50% 60,252   491  3.28% Other borrowings63,526   55  0.34% 205,724   163  0.32% Total interest bearing liabilities4,964,145   9,091  0.73% 5,189,569   11,224  0.87% Noninterest bearing deposits1,371,748       1,310,651       Accrued expenses and other liabilities96,219       77,431       Total liabilities6,432,112       6,577,651       Shareholders’ equity835,330       801,413       Total liabilities and shareholders’ equity$7,267,442       $7,379,064       Net interest income (FTE)  $49,689      $50,289    Net interest margin (FTE)    3.02%     3.02% Net interest spread (FTE)    2.84%     2.82%                1. Interest on loans includes net fees on loans that are not material in amount. 2. For the purpose of calculating the average yield, the average balance of securities is presented at historical cost. Note:  As of September 30, 2020 and June 30, 2020, loans totaling $6.0 million and $5.6 million, respectively, were on nonaccrual status.  Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate. Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands)  Three Months Ended  March 31, 2020 December 31, 2019  Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/Rate ASSETS            Loans (1)$3,587,143   $42,554  4.77% $3,540,274   $43,166  4.84% Loans held for sale831   9  4.36% 1,114   9  3.21% Securities:            Taxable investment securities (2)70,293   512  2.93% 10,083   86  3.38% Tax-exempt investment securities (2)888,906   7,837  3.55% 699,868   6,431  3.65% Mortgage-backed and related securities (2)1,598,374   11,534  2.90% 1,674,503   12,197  2.89% Total securities2,557,573   19,883  3.13% 2,384,454   18,714  3.11% Federal Home Loan Bank stock, at cost, and equity investments62,976   425  2.71% 59,743   437  2.90% Interest earning deposits40,236   180  1.80% 44,039   247  2.23% Total earning assets6,248,759   63,051  4.06% 6,029,624   62,573  4.12% Cash and due from banks76,739       72,018       Accrued interest and other assets611,017       574,124       Less:  Allowance for loan losses(30,373)      (25,618)      Total assets$6,906,142       $6,650,148       LIABILITIES AND SHAREHOLDERS’ EQUITY            Savings accounts$384,863   237  0.25% $372,798   262  0.28% Certificates of deposit1,362,427   6,346  1.87% 1,204,392   6,172  2.03% Interest bearing demand accounts1,975,837   3,336  0.68% 1,936,969   4,067  0.83% Total interest bearing deposits3,723,127   9,919  1.07% 3,514,159   10,501  1.19% Federal Home Loan Bank borrowings999,070   3,974  1.60% 1,019,844   4,716  1.83% Subordinated notes, net of unamortized debt issuance costs98,597   1,411  5.76% 98,554   1,426  5.74% Trust preferred subordinated debentures, net of unamortized debt issuance costs60,234   600  4.01% 60,250   643  4.23% Other borrowings69,846   147  0.85% 17,874   71  1.58% Total interest bearing liabilities4,950,874   16,051  1.30% 4,710,681   17,357  1.46% Noninterest bearing deposits1,042,341       1,049,211       Accrued expenses and other liabilities88,168       73,408       Total liabilities6,081,383       5,833,300       Shareholders’ equity824,759       816,848       Total liabilities and shareholders’ equity$6,906,142       $6,650,148       Net interest income (FTE)  $47,000      $45,216    Net interest margin (FTE)    3.03%     2.98% Net interest spread (FTE)    2.76%     2.66%                1. Interest on loans includes net fees on loans that are not material in amount. 2. For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.Note:  As of March 31, 2020 and December 31, 2019, loans totaling $5.2 million and $5.0 million, respectively, were on nonaccrual status.  Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate. Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands) Three Months Ended  September 30, 2019  Average Balance Interest Average Yield/Rate ASSETS      Loans (1) $3,477,187   $43,780  5.00% Loans held for sale2,497   26  4.13% Securities:      Taxable investment securities (2)3,000   26  3.44% Tax-exempt investment securities (2)555,835   5,328  3.80% Mortgage-backed and related securities (2)1,660,331   12,569  3.00% Total securities2,219,166   17,923  3.20% Federal Home Loan Bank stock, at cost, and equity investments57,108   422  2.93% Interest earning deposits26,746   206  3.06% Total earning assets5,782,704   62,357  4.28% Cash and due from banks73,815       Accrued interest and other assets570,657       Less:  Allowance for loan losses(24,938)      Total assets$6,402,238       LIABILITIES AND SHAREHOLDERS’ EQUITY      Savings accounts$367,615   270  0.29% Certificates of deposit1,118,410   6,011  2.13% Interest bearing demand accounts1,966,764   5,085  1.03% Total interest bearing deposits3,452,789   11,366  1.31% Federal Home Loan Bank borrowings881,088   4,647  2.09% Subordinated notes, net of unamortized debt issuance costs98,511   1,425  5.74% Trust preferred subordinated debentures, net of unamortized debt issuance costs60,248   685  4.51% Other borrowings13,401   59  1.75% Total interest bearing liabilities4,506,037   18,182  1.60% Noninterest bearing deposits1,020,325       Accrued expenses and other liabilities72,923       Total liabilities5,599,285       Shareholders’ equity802,953       Total liabilities and shareholders’ equity$6,402,238       Net interest income (FTE)  $44,175    Net interest margin (FTE)    3.03% Net interest spread (FTE)    2.68%         1. Interest on loans includes net fees on loans that are not material in amount. 2. For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.Note:  As of September 30, 2019, loans totaling $17.1 million were on nonaccrual status.  Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate. Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands) Nine Months Ended  September 30, 2020 September 30, 2019  Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/Rate ASSETS            Loans (1) $3,743,437   $121,162  4.32% $3,387,719   $129,549  5.11% Loans held for sale2,664   68  3.41% 1,698   54  4.25% Securities:            Taxable investment securities (2)103,576   2,419  3.12% 3,000   81  3.61% Tax-exempt investment securities (2)1,168,749   30,815  3.52% 557,961   15,573  3.73% Mortgage-backed and related securities (2)1,388,754   27,626  2.66% 1,662,715   38,289  3.08% Total securities2,661,079   60,860  3.05% 2,223,676   53,943  3.24% Federal Home Loan Bank stock, at cost, and equity investments63,683   1,034  2.17% 54,407   1,217  2.99% Interest earning deposits27,299   220  1.08% 52,345   1,003  2.56% Federal funds sold—   —  —  3,639   86  3.16% Total earning assets6,498,162   183,344  3.77% 5,723,484   185,852  4.34% Cash and due from banks78,484       78,539       Accrued interest and other assets656,952       538,248       Less:  Allowance for loan losses(49,208)      (25,604)      Total assets$7,184,390       $6,314,667       LIABILITIES AND SHAREHOLDERS’ EQUITY            Savings accounts$424,530   616  0.19% $364,520   790  0.29% Certificates of deposit1,240,506   14,731  1.59% 1,130,561   17,569  2.08% Interest bearing demand accounts2,019,968   5,663  0.37% 1,973,024   15,705  1.06% Total interest bearing deposits3,685,004   21,010  0.76% 3,468,105   34,064  1.31% Federal Home Loan Bank borrowings1,077,861   9,272  1.15% 817,978   13,003  2.13% Subordinated notes, net of unamortized debt issuance costs98,642   4,250  5.76% 98,470   4,235  5.75% Trust preferred subordinated debentures, net of unamortized debt issuance costs60,252   1,469  3.26% 60,247   2,132  4.73% Other borrowings112,851   365  0.43% 14,894   191  1.71% Total interest bearing liabilities5,034,610   36,366  0.96% 4,459,694   53,625  1.61% Noninterest bearing deposits1,242,055       1,007,263       Accrued expenses and other liabilities87,170       76,963       Total liabilities6,363,835       5,543,920       Shareholders’ equity820,555       770,747       Total liabilities and shareholders’ equity$7,184,390       $6,314,667       Net interest income (FTE)  $146,978      $132,227    Net interest margin (FTE)    3.02%     3.09% Net interest spread (FTE)    2.81%     2.73%                1. Interest on loans includes net fees on loans that are not material in amount. 2. For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.Note:  As of September 30, 2020 and 2019, loans totaling $6.0 million and $17.1 million, respectively, were on nonaccrual status.  Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate. Southside Bancshares, Inc. Non-GAAP Reconciliation (Unaudited) (Dollars and shares in thousands, except per share data)The following tables set forth the reconciliation of return on average common equity to return on average tangible common equity, book value per share to tangible book value per share, net interest income to net interest income adjusted to a fully taxable-equivalent basis assuming a 21% marginal tax rate for interest earned on tax-exempt assets such as municipal loans and investment securities, along with the calculation of total revenue, adjusted noninterest expense, efficiency ratio (FTE), net interest margin (FTE) and net interest spread (FTE) for the applicable periods presented.  Three Months Ended Nine Months Ended   2020 2019 September 30,   Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, 2020 2019 Reconciliation of return on average common equity to return on average tangible common equity:               Net income $27,074  $21,554  $3,953  $17,335  $19,792  $52,581  $57,219  After-tax amortization expense 696  735  774  814  853  2,206  2,677  Adjusted net income available to common shareholders $27,770  $22,289  $4,727  $18,149  $20,645  $54,787  $59,896                  Average shareholders' equity $835,330  $801,413  $824,759  $816,848  $802,953  $820,555  $770,747  Less: Average intangibles for the period (212,221) (213,135  (214,104) (215,101) (216,169) (213,150) (217,283) Average tangible shareholders' equity $623,109  $588,278  $610,655  $601,747  $586,784  $607,405  $553,464                  Return on average tangible common equity 17.73% 15.24% 3.11% 11.97% 13.96% 12.05% 14.47%                 Reconciliation of book value per share to tangible book value per share:               Common equity at end of period $839,148  $817,605  $795,800  $804,580  $810,453  $839,148  $810,453  Less: Intangible assets at end of period (211,685) (212,566  (213,497) (214,477) (215,507) (211,685) (215,507) Tangible common shareholders' equity at end of period $627,463  $605,039  $582,303  $590,103  $594,946  $627,463  $594,946                  Total assets at end of period $7,190,960  $7,329,611  $7,273,638  $6,748,913  $6,542,075  $7,190,960  $6,542,075  Less: Intangible assets at end of period (211,685) (212,566  (213,497) (214,477) (215,507) (211,685) (215,507) Tangible assets at end of period $6,979,275  $7,117,045  $7,060,141  $6,534,436  $6,326,568  $6,979,275  $6,326,568                  Period end tangible equity to period end tangible assets 8.99% 8.50% 8.25% 9.03% 9.40% 8.99% 9.40%                 Common shares outstanding end of period 33,072  33,032  33,012  33,823  33,795  33,072  33,795  Tangible book value per common share $18.97  $18.32  $17.64  $17.45  $17.60  $18.97  $17.60                  Reconciliation of efficiency ratio to efficiency ratio (FTE), net interest margin to net interest margin (FTE) and net interest spread to net interest spread (FTE):               Net interest income (GAAP) $46,586  $47,271  $44,701  $43,176  $42,373  $138,558  $126,629  Tax equivalent adjustments:               Loans 688  679  668  653  641  2,035  1,837  Tax-exempt investment securities 2,415  2,339  1,631  1,387  1,161  6,385  3,761  Net interest income (FTE) (1) 49,689  50,289  47,000  45,216  44,175  146,978  132,227  Noninterest income 11,141  12,193  15,498  10,465  11,111  38,832  31,903  Nonrecurring income (2) (78) (2,662  (5,541) (42) (42) (8,281) (428) Total revenue $60,752  $59,820  $56,957  $55,639  $55,244  $177,529  $163,702                  Noninterest expense $31,616  $29,856  $30,520  $30,944  $29,026  $91,992  $88,353  Pre-tax amortization expense (881) (931  (980) (1,030) (1,080) (2,792) (3,388) Nonrecurring expense (3) (315) (39  29  56  (33) (325) (82) Adjusted noninterest expense $30,420  $28,886  $29,569  $29,970  $27,913  $88,875  $84,883                  Efficiency ratio 52.77% 50.85% 54.10% 55.92% 52.23% 52.55% 53.69% Efficiency ratio (FTE) (1) 50.07% 48.29% 51.91% 53.87% 50.53% 50.06% 51.85%                 Average earning assets $6,548,935  $6,696,235  $6,248,759  $6,029,624  $5,782,704  $6,498,162  $5,723,484                  Net interest margin 2.83% 2.84% 2.88% 2.84% 2.91% 2.85% 2.96% Net interest margin (FTE) (1) 3.02% 3.02% 3.03% 2.98% 3.03% 3.02% 3.09%                 Net interest spread 2.65% 2.64% 2.61% 2.52% 2.55% 2.64% 2.60% Net interest spread (FTE) (1) 2.84% 2.82% 2.76% 2.66% 2.68% 2.81% 2.73% 1. These amounts are presented on a fully taxable-equivalent basis and are non-GAAP measures. 2. These adjustments may include net gain and loss on sale of securities available for sale and loss on fair value hedges, in the periods where applicable. 3. These adjustments may include foreclosure expenses, in the periods where applicable.

  • GlobeNewswire

    Southside Bancshares, Inc. Announces Third Quarter Earnings Call

    TYLER, Texas, Oct. 09, 2020 (GLOBE NEWSWIRE) -- Southside Bancshares, Inc. (NASDAQ: SBSI), the holding company for Southside Bank, announced today it will release its third quarter financial results before the market opens on Friday, October 23, 2020. Southside will host a conference call to discuss its results on Friday, October 23, 2020 at 9:00 a.m. CDT. The call will be hosted by Lee R. Gibson, President and CEO, Julie Shamburger, CFO and Lindsey Bailes, VP, Investor Relations. Following prepared remarks there will be a question and answer session for the analyst community.The Conference Call DetailsThe call can be accessed by dialing 844-775-2540 and by identifying the conference ID number 6077847 or by identifying “Southside Bancshares, Inc. Third Quarter 2020 Earnings Call”. To listen to the call via webcast, register at https://investors.southside.com.For those unable to listen to the conference call live, a recording will be available from approximately 12:00 p.m. CDT October 23, 2020 through 11:00 a.m. CST November 4, 2020 by accessing the company website, https://investors.southside.com.It is recommended that those wishing to participate in the conference call dial-in or register on the website approximately 5 to 10 minutes prior to the call to ensure a more efficient registration process.About Southside Bancshares, Inc.Southside Bancshares, Inc. is a bank holding company headquartered in Tyler, Texas, with approximately $7.33 billion in assets as of June 30, 2020. Through its wholly-owned subsidiary, Southside Bank, Southside currently operates 57 branches and a network of 80 ATMs/ITMs throughout East Texas, Southeast Texas, Dallas/Fort Worth and Austin. Serving customers since 1960, Southside Bank is a community-focused financial institution that offers a full range of financial products and services to individuals and businesses. These products and services include consumer and commercial loans, mortgages, deposit accounts, safe deposit boxes, treasury management, wealth management, trust services, brokerage services and an array of online and mobile services.To learn more about Southside Bancshares, Inc., please visit our investor relations website at https://investors.southside.com. Our investor relations site provides a detailed overview of our activities, financial information and historical stock price data. To receive e-mail notification of company news, events and stock activity, please register on the E-mail Notification portion of the website. Questions or comments may be directed to Lindsey Bailes at 903-630-7965, or lindsey.bailes@southside.com.For further information: Lindsey Bailes 903-630-7965

  • GlobeNewswire

    Southside Bancshares, Inc. to Ring the Nasdaq Stock Market Opening Bell

    TYLER, Texas, Sept. 24, 2020 (GLOBE NEWSWIRE) -- Southside Bancshares, Inc. (the “Company”) (Nasdaq: SBSI), the holding company of Southside Bank (the “Bank”), will ring the Nasdaq Opening Bell on September 28, 2020 from 8:15 to 8:30 a.m. CDT in celebration of the Bank’s 60th anniversary. Lee R. Gibson, President and Chief Executive Officer (“CEO”) of the Company, will preside over the virtual event and be joined by members of the Company’s leadership team. “We are proud to celebrate Southside’s 60th anniversary, which reflects our rich history of serving our customers, communities and shareholders,” said Lee R. Gibson, President and CEO. “It is an honor to commemorate this significant milestone with Nasdaq, who has been an exceptional partner to us for the past 22 years.”A live stream and playback of the Nasdaq opening bell will be available at: https://livestream.com/nasdaqmedia.About Southside Bancshares, Inc. Southside Bancshares, Inc. is a bank holding company headquartered in Tyler, Texas, with approximately $7.33 billion in assets as of June 30, 2020. Through its wholly-owned subsidiary, Southside Bank, Southside currently operates 57 branches and a network of 80 ATMs/ITMs throughout East Texas, Southeast Texas, Dallas/Fort Worth and Austin. Serving customers since 1960, Southside Bank is a community-focused financial institution that offers a full range of financial products and services to individuals and businesses. These products and services include consumer and commercial loans, mortgages, deposit accounts, safe deposit boxes, treasury management, wealth management, trust services, brokerage services and an array of online and mobile services.To learn more about Southside Bancshares, Inc., please visit our investor relations website at https://investors.southside.com. Our investor relations site provides a detailed overview of our activities, financial information and historical stock price data. To receive e-mail notification of company news, events and stock activity, please register on the E-mail Notification portion of the website. Questions or comments may be directed to Lindsey Bailes at (903) 630-7965 or lindsey.bailes@southside.com.Forward-Looking Statements Certain statements of other than historical fact that are contained in this press release and in other written material, documents and oral statements issued by or on behalf of the Company may be considered to be “forward-looking statements” within the meaning of and subject to the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. These statements may include words such as “expect,” “estimate,” “project,” “anticipate,” “appear,” “believe,” “could,” “should,” “may,” “likely,” “intend,” “probability,” “risk,” “target,” “objective,” “plans,” “potential,” and similar expressions. Forward-looking statements are statements with respect to the Company’s beliefs, plans, expectations, objectives, goals, anticipations, assumptions and estimates about the Company's future performance and are subject to significant known and unknown risks and uncertainties, which could cause the Company's actual results to differ materially from the results discussed in the forward-looking statements. For example, discussions about trends in asset quality, capital, liquidity, the pace of loan and revenue growth, the Company's ability to sell nonperforming assets, expense reductions, planned operational efficiencies, earnings, successful integration of completed acquisitions and certain market risk disclosures, including the impact of interest rates, tax reform and other economic factors, are based upon information presently available to management and are dependent on choices about key model characteristics and assumptions and are subject to various limitations. By their nature, certain of the market risk disclosures are only estimates and could be materially different from what actually occurs in the future. The most recent factor that could cause future results to differ materially from those anticipated by our forward-looking statements include the negative impact of the novel coronavirus (“COVID-19”) pandemic on our business, financial position, operations and prospects, including our ability to continue our business activities in certain communities we serve, the duration of the pandemic and its continued effects on financial markets, a reduction in financial transactions and business activities resulting in decreased deposits and reduced loan originations, increases in unemployment rates impacting our borrowers' ability to repay their loans, our ability to manage liquidity in a rapidly changing and unpredictable market, additional interest rate changes by the Federal Reserve and other government actions in response to the pandemic, including additional quarantines, regulations or laws enacted to counter the effects of the COVID-19 pandemic on the economy.Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, under “Part I - Item 1. Forward Looking Information” and “Part I - Item 1A. Risk Factors,” “the Company's Quarterly Report on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020, under Part II - Item 1A. Risk Factors” and in the Company’s other filings with the Securities and Exchange Commission. The Company disclaims any obligation to update any factors or to announce publicly the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.Media Contact: Ashley Fettig | 903.531.7158 | ashley.fettig@southside.com Investor Relations: Lindsey Bailes | 903.630.7965 | lindsey.bailes@southside.com