Southside Bancshares Q2 2024 Financial Update

TL;DR

Southside Bancshares 10-Q filed. Financials for Q2 2024 out. Check retained earnings & capital.

AI Summary

Southside Bancshares Inc. reported its financial results for the quarter ending June 30, 2024. The company's filing covers the period from January 1, 2024, to June 30, 2024, and includes comparative data from the previous year. Key financial data points such as common stock, additional paid-in capital, retained earnings, and treasury stock are detailed for various reporting periods.

Why It Matters

This filing provides investors with a detailed look at Southside Bancshares' financial health and performance during the second quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags.

Key Numbers

• 2024-06-30 — Period End Date (Financial reporting period)
• 2023-12-31 — Previous Year End Date (Comparative financial data)
• 2024-01-01 — Quarter Start Date (Beginning of the reporting period)

Key Players & Entities

• SOUTHSIDE BANCSHARES INC (company) — Filer
• 0000705432 (company) — Central Index Key
• 75701 (dollar_amount) — ZIP Code
• 9035317111 (dollar_amount) — Business Phone
• 20240630 (date) — Period of Report
• 20240726 (date) — Filing Date

FAQ

Key Financial Figures

• $1.25 — ange on which registered Common Stock, $1.25 par value SBSI NASDAQ Global Select Mar
• $1 — of the issuer's common stock, par value $1.25, outstanding as of July 24, 2024 was

Filing Documents

• sbsi-20240630.htm (10-Q) — 3582KB
• sbsi_063024ex311.htm (EX-31.1) — 11KB
• sbsi_063024ex312.htm (EX-31.2) — 11KB
• sbsi_063024ex32.htm (EX-32) — 7KB
• 0000705432-24-000175.txt ( ) — 16991KB
• sbsi-20240630.xsd (EX-101.SCH) — 54KB
• sbsi-20240630_cal.xml (EX-101.CAL) — 137KB
• sbsi-20240630_def.xml (EX-101.DEF) — 364KB
• sbsi-20240630_lab.xml (EX-101.LAB) — 876KB
• sbsi-20240630_pre.xml (EX-101.PRE) — 654KB
• sbsi-20240630_htm.xml (XML) — 4126KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS 3

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 42

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 64

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES 65

OTHER INFORMATION

PART II. OTHER INFORMATION

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS 65

RISK FACTORS

ITEM 1A. RISK FACTORS 65

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 66

DEFAULTS UPON SENIOR SECURITIES

ITEM 3. DEFAULTS UPON SENIOR SECURITIES 66

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 66

OTHER INFORMATION

ITEM 5. OTHER INFORMATION 66

EXHIBITS

ITEM 6. EXHIBITS 67 EXHIBIT INDEX 67

SIGNATURES

SIGNATURES 68 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-Q, including "Item 1. Financial Statements" and "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations." 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 Southside Southside Bancshares, Inc. Other Acronyms, Abbreviations and Terms: 2023 Form 10-K Southside Bancshares, Inc. Annual Report on Form 10-K filed with the SEC on February 27, 2024 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 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 BOLI Bank owned life insurance CARES Act Coronavirus Aid, Relief, and Economic Security Act CDs Certificates of deposit CECL ASC 326, Financial Instruments- Credit Losses, also known as Current Expected Credit Losses CET1 Common Equity Tier 1 CMOs Collateralized mortgage obligations CRE Commercial real estate Dodd-Frank Act Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 Economic Aid Act Economic Aid to Hard-Hit Small Business, Nonprofits and Venues Act ESOP Employee Stock Ownership Plan ETR Effective tax rate Exchange Act Securities Exchange Act of 1934 FASB Financial Accounting Standards Board FDIC Federal Deposit Insurance Corporation Federal Reserve The

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except share amounts) June 30, 2024 December 31, 2023 ASSETS Cash and due from banks $ 114,283 $ 122,021 Interest earning deposits 272,469 391,719 Federal funds sold 65,244 46,770 Total cash and cash equivalents 451,996 560,510 Securities: Securities AFS, at estimated fair value (amortized cost of $ 1,454,266 and $ 1,332,467 , respectively) 1,405,944 1,296,294 Securities HTM (estimated fair value of $ 1,140,447 and $ 1,166,162 , respectively) 1,305,975 1,307,053 FHLB stock, at cost 32,991 11,936 Equity investments 9,531 9,691 Loans held for sale 1,352 10,894 Loans: Loans 4,589,365 4,524,510 Less: Allowance for loan losses ( 42,407 ) ( 42,674 ) Net loans 4,546,958 4,481,836 Premises and equipment, net 138,489 138,950 Operating lease ROU assets 14,336 14,837 Goodwill 201,116 201,116 Other intangible assets, net 2,281 2,925 Interest receivable 50,393 50,489 Deferred tax asset, net 29,744 30,426 BOLI 136,903 136,330 Other assets 29,693 31,627 Total assets $ 8,357,702 $ 8,284,914 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Noninterest bearing $ 1,366,924 $ 1,390,407 Interest bearing 5,129,008 5,159,274 Total deposits 6,495,932 6,549,681 Other borrowings 201,418 509,820 FHLB borrowings 562,282 212,648 Subordinated notes, net of unamortized debt issuance costs 91,970 93,877 Trust preferred subordinated debentures, net of unamortized debt issuance costs 60,272 60,270 Unsettled trades to purchase securities 54,354 — Operating lease liabilities 16,247 16,704 Other liabilities 74,257 68,626 Total liabilities 7,556,732 7,511,626 Off-balance-sheet arrangements, commitments and contingencies (Note 12) Shareholders' equity: Common stock: ($ 1.25 par value, 80,000,000 shares authorized, 38,061,449 shares issued at June 30, 2024 and 38,039,706 shares issued at December 31, 2023) 47,577 47,550 Paid-in

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Summary of Significant Accounting and Reporting Policies Basis of Presentation In this report, the words "the Company," "we," "us," and "our" refer to the combined entities of Southside Bancshares, Inc. and its subsidiaries, including Southside Bank. The words "Southside" and "Southside Bancshares" refer to Southside Bancshares, Inc. The words "Southside Bank" and "the Bank" refer to Southside Bank. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, not all information required by GAAP for complete financial statements is included in these interim statements. In the opinion of management, all adjustments necessary for a fair presentation of such financial statements have been included. Such adjustments consisted only of normal recurring items. The preparation of these consolidated financial statements in accordance with GAAP requires the use of management's estimates. These estimates are subjective in nature and involve matters of judgment. Actual amounts could differ from these estimates. Interim results are not necessarily indicative of results for a full year. These financial statements should be read in conjunction with the financial statements and notes thereto in our 2023 Form 10-K. Accounting Changes and Reclassifications Certain prior period amounts may be reclassified to conform to current year presentation. 2. Earnings Per Share Basic earnings per common share is calculated based on the two-class method in accordance with ASC Topic 260, "Earnings Per Share." ASC 260 provides that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the calculation of earnings per share pursuant to t

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