Southside Bancshares Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>Southside Bancshares Inc. has filed its 2023 10-K annual report, detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

SOUTHSIDE BANCSHARES INC (SBSI) filed a Annual Report (10-K) with the SEC on February 27, 2024. Southside Bancshares Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business is commercial banking. The filing includes financial data for the fiscal years 2021, 2022, and 2023. Southside Bancshares Inc. is incorporated in Texas.

Why It Matters

For investors and stakeholders tracking SOUTHSIDE BANCSHARES INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Southside Bancshares Inc.'s financial health, operational performance, and strategic positioning for the fiscal year 2023, which is crucial for investors to assess the company's stability and growth prospects. The detailed financial statements and risk factor disclosures within the report offer insights into the company's ability to navigate the current economic environment and its potential for future profitability.

Risk Assessment

Risk Level: medium — SOUTHSIDE BANCSHARES INC shows moderate risk based on this filing. The company operates in the commercial banking sector, which is subject to significant regulatory oversight and economic fluctuations, as indicated by the SIC code 6022 (State Commercial Banks).

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Southside Bancshares Inc.'s performance and outlook in the banking industry.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-02-27 — Filing Date (Filed as of date)
• 2023-01-01 — Reporting Period Start (Fiscal year 2023)
• 2023-12-31 — Reporting Period End (Fiscal year 2023)

Key Players & Entities

• SOUTHSIDE BANCSHARES INC (company) — Filer name
• SBSI (company) — Ticker symbol
• 2023-12-31 (date) — Conformed period of report
• 2024-02-27 (date) — Filed as of date
• 6022 (industry_code) — Standard Industrial Classification
• TX (location) — State of incorporation
• 1201 S BECKHAM (address) — Business street address
• TYLER (location) — Business city

FAQ

Industry Context

Southside Bancshares Inc. operates within the commercial banking industry, a sector characterized by its sensitivity to interest rate changes, economic conditions, and regulatory policies.

Regulatory Implications

As a commercial bank, the company is subject to extensive regulation by federal and state authorities, impacting its operations, capital requirements, and risk management practices.

What Investors Should Do

1. Analyze the company's financial statements for the fiscal years 2021, 2022, and 2023 to identify trends in revenue, net income, and assets.
2. Review any disclosed risk factors to understand potential challenges and their impact on the company's performance.
3. Examine the company's business description and operational details to gauge its market position and strategic direction.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-27: Filing Date — Date the 10-K report was officially filed with the SEC.

Year-Over-Year Comparison

This filing is the 2023 annual report (10-K), providing updated financial and operational information compared to previous filings.

Key Financial Figures

• $1.25 — ange on which registered Common Stock, $1.25 par value SBSI NASDAQ Global Select Mar
• $26.16 — illion (based upon the closing price of $26.16 per share as reported by the NASDAQ Glo
• $8.28 b — ecember 31, 2023, our total assets were $8.28 billion, total loans were $4.52 billion,
• $4.52 b — ts were $8.28 billion, total loans were $4.52 billion, total deposits were $6.55 billio
• $6.55 billion — were $4.52 billion, total deposits were $6.55 billion and total equity was $773.3 million. Fo
• $773.3 million — were $6.55 billion and total equity was $773.3 million. For the years ended December 31, 2023
• $86.7 million — r 31, 2023 and 2022, our net income was $86.7 million and $105.0 million, respectively. For t
• $105.0 m — 2, our net income was $86.7 million and $105.0 million, respectively. For the years ende
• $2.82 — , diluted earnings per common share was $2.82 and $3.26, respectively. We have paid a
• $3 — earnings per common share was $2.82 and $3.26, respectively. We have paid a cash d
• $1.48 billion — ets under management were approximately $1.48 billion. Our business strategy includes evalua
• $10 billion — depository institutions with more than $10 billion in assets for compliance with these fed

Filing Documents

• sbsi-20231231.htm (10-K) — 5151KB
• sbsi_123123ex21.htm (EX-21) — 4KB
• sbsi_123123ex231.htm (EX-23.1) — 4KB
• sbsi_123123ex311.htm (EX-31.1) — 11KB
• sbsi_123123ex312.htm (EX-31.2) — 11KB
• sbsi_123123ex32.htm (EX-32) — 7KB
• southsidecompensationrecou.htm (EX-97) — 53KB
• sbsi-20231231_g1.jpg (GRAPHIC) — 61KB
• 0000705432-24-000026.txt (&nbsp;) — 25658KB
• sbsi-20231231.xsd (EX-101.SCH) — 110KB
• sbsi-20231231_cal.xml (EX-101.CAL) — 200KB
• sbsi-20231231_def.xml (EX-101.DEF) — 728KB
• sbsi-20231231_lab.xml (EX-101.LAB) — 1661KB
• sbsi-20231231_pre.xml (EX-101.PRE) — 1136KB
• sbsi-20231231_htm.xml (XML) — 5701KB

Risk Factors

Item 1A. Risk Factors 18

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 29

Cybersecurity

Item 1C. Cybersecurity 29

Properties

Item 2. Properties 30

Legal Proceedings

Item 3. Legal Proceedings 31

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 31 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 31

[Reserved]

Item 6. [Reserved] 33

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 33

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 63

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 64 Report of Independent Registered Public Accounting Firm 65 Consolidated Financial Statements 67

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 73

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 125

Controls and Procedures

Item 9A. Controls and Procedures 125

Other Information

Item 9B. Other Information 127 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 127

Executive Compensation

Item 11. Executive Compensation 127

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 127

Certain Relationships and Related Transactions and Director Independence

Item 13. Certain Relationships and Related Transactions and Director Independence 127

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 127 PART IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 127

Form 10-K Summary

Item 16. Form 10-K Summary 127

SIGNATURES

SIGNATURES 131 Table of Contents SOUTHSIDE BANCSHARES, INC. Glossary of Acronyms, Abbreviations and Terms The acronyms, abbreviations and terms listed below are used in various sections of this Form 10-K, including "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Item 8. Financial Statements and Supplementary Data." Entities: Southside Bancshares, Inc. Bank holding company for Southside Bank Southside Bank Texas state bank and wholly owned subsidiary of Southside Bancshares, Inc. Company Combined entities of Southside Bancshares, Inc. and its subsidiaries, including Southside Bank Bank Southside Bank Omni OmniAmerican Bancorp, Inc., a bank holding company, and its wholly-owned subsidiary, OmniAmerican Bank, acquired by Southside on December 17, 2014 Southside Southside Bancshares, Inc. Other Acronyms, Abbreviations and Terms: 2017 Incentive Plan Southside Bancshares, Inc. 2017 Incentive Plan 2022 Form 10-K Southside Bancshares, Inc. Annual Report on Form 10-K filed with the SEC on February 24, 2023 401(k) Plan 401(k) Defined Contribution Plan Acquired Retirement Plan OmniAmerican Bank defined benefit pension plan AFS Available for sale ALCO Asset/Liability Committee AML Anti-money laundering AOCI Accumulated other comprehensive income or loss ASC Accounting Standards Codification ASU Accounting Standards Update issued by the FASB ATM Automated teller machines BTFP The Federal Reserve's Bank Term Funding Program Basel Committee Basel Committee on Banking Supervision BHCA Bank Holding Company Act of 1956 Board Board of directors BOLI Bank owned life insurance CARES Act Coronavirus Aid, Relief, and Economic Security Act CBCA Change in Bank Control Act CBLR Community Bank Leverage Ratio framework CDs Certificates of deposit CECL ASC 326, Financial Instruments- Credit Losses, also known as Current Expected Credit Losses CET1 Common Equity Tier 1 CFPB Consumer Financial Protectio

BUSINESS

ITEM 1. BUSINESS FORWARD-LOOKING INFORMATION The disclosures set forth in this item are qualified by the section captioned "Cautionary Notice Regarding Forward-Looking Statements" in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Annual Report on Form 10-K and other cautionary statements set forth elsewhere in this report. GENERAL Southside Bancshares, Inc., incorporated in Texas in 1982, is a bank holding company for Southside Bank, a Texas state bank headquartered in Tyler, Texas that was formed in 1960. We operate through 55 branches, 13 of which are located in grocery stores, in addition to wealth management and trust services, and/or loan production, brokerage or other financial services offices. At December 31, 2023, our total assets were $8.28 billion, total loans were $4.52 billion, total deposits were $6.55 billion and total equity was $773.3 million. For the years ended December 31, 2023 and 2022, our net income was $86.7 million and $105.0 million, respectively. For the years ended December 31, 2023 and 2022, diluted earnings per common share was $2.82 and $3.26, respectively. We have paid a cash dividend to shareholders every year since 1970 (including dividends paid by Southside Bank prior to the incorporation of Southside Bancshares). We are a community-focused financial institution that offers a full range of financial services to individuals, businesses, municipal entities and nonprofit organizations in the communities that we serve. These services include consumer and commercial loans, deposit accounts, wealth management, trust and brokerage services. Our consumer loan services include 1-4 family residential loans, home equity loans, home improvement loans, automobile loans and other consumer related loans. Commercial loan services include short-term working capital loans for inventory and accounts receivable, short- and medium-term loans for equipment or other business capital expansio

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View this 10-K filing on SEC EDGAR