• Southside Bancshares, Inc. Announces Financial Results for the Second Quarter Ended June 30, 2021

    Source: Nasdaq GlobeNewswire / 23 Jul 2021 05:00:01   America/Chicago

    • Second quarter net income of $21.3 million;

    • Second quarter earnings per diluted common share of $0.65;

    • Annualized linked quarter deposit growth of 5.0%;

    • Annualized return on second quarter average assets of 1.20%;

    • Annualized return on second quarter average tangible common equity of 13.13%(1); and

    • Nonperforming assets decreased to 0.21% of total assets.

    TYLER, Texas, July 23, 2021 (GLOBE NEWSWIRE) -- Southside Bancshares, Inc. (“Southside” or the “Company”) (NASDAQ: SBSI) today reported its financial results for the quarter ended June 30, 2021. Southside reported net income of $21.3 million for the three months ended June 30, 2021, a decrease of $0.2 million, or 1.1%, compared to $21.6 million for the same period in 2020. Earnings per diluted common share were $0.65 for the three months ended June 30, 2021 and 2020. The annualized return on average shareholders’ equity for the three months ended June 30, 2021 was 9.73%, compared to 10.82% for the same period in 2020. The annualized return on average assets was 1.20% for the three months ended June 30, 2021, compared to 1.17% for the same period in 2020.

    “We reported solid results during the second quarter, highlighted by continued strong asset quality metrics and 5% annualized linked quarter deposit growth,” stated Lee R. Gibson, President and Chief Executive Officer of Southside.

    “Loan growth, net of Paycheck Protection Program (“PPP”), was partially offset by higher than anticipated loan payoffs. For the six months ended, annualized loan growth was 4%. We are encouraged about loan growth for the second half of the year as our loan pipeline continues to remain healthy.”

    “On September 30, 2021, we anticipate the redemption of our 5.5% coupon $100 million sub debt issue, pending regulatory approval.”

    “We are pleased by the continued strong economic conditions in the market areas we serve.”

    Operating Results for the Three Months Ended June 30, 2021

    Net income was $21.3 million for the three months ended June 30, 2021, compared to $21.6 million for the same period in 2020, a decrease of $0.2 million, or 1.1%. Earnings per diluted common share were $0.65 for the three months ended June 30, 2021 and 2020. The decrease in net income was a result of a decrease in net interest income, a decrease in noninterest income, and an increase in noninterest expense, partially offset by a decrease in the provision for credit losses. Annualized returns on average assets and average shareholders’ equity for the three months ended June 30, 2021 were 1.20% and 9.73%, respectively.  Our efficiency ratio and tax equivalent efficiency ratio(1) were 53.09% and 50.31%, respectively, for the three months ended June 30, 2021, compared to 53.01% and 50.44%, respectively, for the three months ended March 31, 2021.

    Net interest income for the three months ended June 30, 2021 was $45.6 million, compared to $47.3 million for the same period in 2020, a decrease of 3.4%. The decrease in net interest income compared to the same period in 2020 was due to the decrease in interest income, a result of a decrease in the average yield on our interest earning assets during the three months ended June 30, 2021, partially offset by the decrease in interest expense on our interest bearing liabilities due to the overall decline in interest rates. Linked quarter, net interest income decreased $0.7 million, or 1.4%, compared to $46.3 million during the three months ended March 31, 2021. The decrease in interest income is due to a decrease in the average yield, partially offset by a decline in interest expense.

    Our net interest margin and tax equivalent net interest margin(1) increased to 2.86% and 3.06%, respectively, for the three months ended June 30, 2021, compared to 2.84% and 3.02%, respectively, for the same period in 2020. Linked quarter net interest margin decreased 15 basis points from 3.01% and tax equivalent net interest margin(1) decreased 14 basis points from 3.20% for the three months ended March 31, 2021.

    Noninterest income was $10.9 million for the three months ended June 30, 2021, a decrease of $1.3 million, or 10.3%, compared to $12.2 million for the same period in 2020. On a linked quarter basis, noninterest income decreased $2.7 million, or 19.7%, compared to the three months ended March 31, 2021. The decrease for both periods was due to a decrease in net gain on sale of securities available for sale, gain on sale of loans and other noninterest income, partially offset by an increase in deposit services income, brokerage services income and trust fees.

    Noninterest expense was $30.7 million for the three months ended June 30, 2021, an increase of $0.8 million, or 2.8%, compared to $29.9 million for the same period in 2020. On a linked quarter basis, noninterest expense decreased $0.5 million, or 1.7%, compared to the three months ended March 31, 2021.

    Income tax expense increased $0.1 million for the three months ended June 30, 2021 compared to the same period in 2020. On a linked quarter basis, income tax expense decreased $1.9 million, or 39.2%. Our effective tax rate (“ETR”) increased to 11.9% for the three months ended June 30, 2021, compared to 11.5% for the three months ended June 30, 2020. Linked quarter, our ETR decreased compared to 12.2% for the three months ended March 31, 2021, primarily due to an increase in tax-exempt income as a percentage of pre-tax income.

    Operating Results for the Six Months Ended June 30, 2021

    Net income was $55.4 million for the six months ended June 30, 2021, compared to $25.5 million for the same period in 2020, an increase of $29.9 million, or 117.2%. Earnings per diluted common share were $1.69 for the six months ended June 30, 2021, compared to $0.76 for the same period in 2020, an increase of 122.4%. The increase in net income was a direct result of a reversal of the provision for credit losses compared to a large build-up in the allowance for credit losses in the same period in 2020. Annualized returns on average assets and average shareholders’ equity for the six months ended June 30, 2021 were 1.59% and 12.75%, respectively.  Our efficiency ratio and tax equivalent efficiency ratio(1) were 53.05% and 50.38%, respectively, for the six months ended June 30, 2021, compared to 52.44% and 50.06%, respectively, for the six months ended June 30, 2020.

    Net interest income was $92.0 million for the six months ended June 30, 2021 and June 30, 2020, with the decrease in interest income offset by the decrease in interest expense on our interest bearing liabilities, both a result of an overall decline in interest rates.

    Our net interest margin and tax equivalent net interest margin(1) were 2.93% and 3.13%, respectively, for the six months ended June 30, 2021, compared to 2.86% and 3.02%, respectively, for the same period in 2020. The increase in net interest margin was due to lower funding costs, partially offset by a decrease in interest income due to a lower average yield and balance on our interest earning assets during the six months ended June 30, 2021.

    Noninterest income was $24.6 million for the six months ended June 30, 2021, a decrease of 11.3%, compared to $27.7 million for the same period in 2020. The decrease was due to the decrease in net gain on sale of securities available for sale, partially offset by increases in other noninterest income, deposit services income, brokerage services income and trust fees.

    Noninterest expense was $61.9 million for the six months ended June 30, 2021, compared to $60.4 million for the same period in 2020, an increase of $1.6 million, or 2.6%. The increase was the result of increases in salaries and employee benefits and FDIC insurance, partially offset by decreases in other noninterest expense and amortization of intangibles.

    Income tax expense increased $4.3 million, or 132.3%, for the six months ended June 30, 2021, compared to the same period in 2020. Our ETR was approximately 12.1% and 11.4% for the six months ended June 30, 2021 and 2020, respectively. The higher ETR for the six months ended June 30, 2021, as compared to the same period in 2020, was primarily due to a decrease in tax-exempt income as a percentage of pre-tax income.

    Balance Sheet Data

    At June 30, 2021, we had $7.18 billion in total assets, compared to $7.01 billion at December 31, 2020 and $7.33 billion at June 30, 2020.

    Loans at June 30, 2021 were $3.64 billion, a decrease of $210.2 million, or 5.5%, compared to $3.85 billion at June 30, 2020. This decrease was primarily due to a $167.4 million decrease in our PPP loans, a component of the commercial loan category, with a remaining balance of $132.1 million at June 30, 2021, as well as decreases of $83.4 million in 1-4 family residential loans, $42.6 million in construction loans, and $6.8 million in loans to individuals. These decreases were partially offset by increases of $40.0 million in municipal loans and $24.4 million in commercial real estate loans. Linked quarter loans decreased $74.3 million, or 2.0%, from $3.72 billion at March 31, 2021. The linked quarter net decrease in loans consisted primarily of decreases of $77.5 million of construction loans, $67.2 million of commercial loans and $22.0 million in 1-4 family loans. The decreases for the linked quarter were partially offset by increases of $82.3 million in commercial real estate loans and $11.0 million of municipal loans. On a linked quarter basis, our PPP loans decreased $88.8 million, or 40.2%, from $220.9 million at March 31, 2021, due to forgiveness payments received from loans funded under the Coronavirus Aid, Relief, and Economic Security Act.

    Securities at June 30, 2021 were $2.86 billion, an increase of $61.0 million, or 2.2%, compared to $2.80 billion at June 30, 2020. Linked quarter, securities increased $215.8 million, or 8.2%, from $2.65 billion at March 31, 2021. The increase for the linked quarter was due to the purchase of municipal bonds and to a lesser extent, an increase in the estimated fair value of the securities portfolio at June 30, 2021, when compared to March 31, 2021.

    Deposits at June 30, 2021 were $5.16 billion, an increase of $85.6 million, or 1.7%, compared to $5.07 billion at June 30, 2020. Linked quarter, deposits increased $63.5 million, or 1.2%, from $5.09 billion at March 31, 2021. The increase for both periods was largely driven by PPP loan disbursements deposited into our commercial accounts and stimulus checks deposited during the six months ended June 30, 2021.

    Asset Quality

    Nonperforming assets at June 30, 2021 were $15.3 million, or 0.21% of total assets, a decrease of $2.3 million, or 13.2%, compared to $17.6 million, or 0.24% of total assets, at June 30, 2020, and a decrease from $15.4 million, or 0.22% of total assets, at March 31, 2021. During the three months ended June 30, 2021, nonaccrual loans decreased $0.2 million, or 3.0%.

    The allowance for loan losses decreased to $42.9 million, or 1.18% of total loans, at June 30, 2021, compared to $59.9 million, or 1.55% of total loans, at June 30, 2020. The decrease was primarily due to an improved economic forecast since the second quarter of 2020 and its effect on macroeconomic factors used in the CECL model. The allowance for loan losses was $41.5 million, or 1.12% of total loans, at March 31, 2021.

    For the three months ended June 30, 2021, we recorded a provision for credit losses for loans of $1.5 million, compared to a provision for credit losses for loans of $6.3 million for the three months ended June 30, 2020 and a reversal of provision for credit losses of $7.4 million for the three months ended March 31, 2021. The increase in the provision for the second quarter was primarily due to a decline in the downside scenario of the economic forecast and its effect on macroeconomic factors used in the CECL model. Net charge-offs were $0.1 million for the three months ended June 30, 2021, compared to net charge-offs of $0.1 million for the three months ended June 30, 2020 and $0.2 million of net charge-offs for the three months ended March 31, 2021. Net charge-offs were $0.2 million for the six months ended June 30, 2021, compared to $0.7 million for the six months ended June 30, 2020.

    For the three months ended June 30, 2021, we recorded a provision for credit losses for off-balance-sheet credit exposures of $0.2 million and reversals of provision of $1.1 million and $2.8 million for the three months ended June 30, 2020 and March 31, 2021, respectively. For the six months ended June 30, 2021, we recorded a reversal of provision of $2.6 million, compared to a provision for credit losses for off-balance-sheet credit exposures of $0.1 million for the six months ended June 30, 2020. The balance of the allowance for off-balance-sheet credit exposures at June 30, 2021 was $3.8 million and is included in other liabilities.

    Dividend

    Southside Bancshares, Inc. declared a second quarter cash dividend of $0.33 per share on May 6, 2021, which was paid on June 3, 2021, to all shareholders of record as of May 20, 2021.

    _______________

    (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.

    Conference Call

    Southside's management team will host a conference call to discuss its second quarter ended June 30, 2021 financial results on Friday, July 23, 2021 at 11:00 a.m. CDT.  The call can be accessed by dialing 844-775-2540 and by identifying the conference ID number 7053989 or by identifying “Southside Bancshares, Inc., Second Quarter 2021 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 2:00 p.m. CDT July 23, 2021 through 2:00 p.m. CDT August 4, 2021 by accessing the company website, https://investors.southside.com.

    Non-GAAP Financial Measures

    Our 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% 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 and is not permitted under GAAP in the consolidated statements of income. We believe this measure to be the preferred industry measurement of net interest income and that 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 $7.18 billion in assets as of June 30, 2021, that owns 100% of Southside Bank.  Southside Bank currently has 55 branches in Texas and operates a network of 76 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 Statements

    Certain statements of other than historical fact that are contained in this press release and in other written materials, 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,” “might,” “will,” “would,” “seek,” “intend,” “probability,” “risk,” “goal,” “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, estimates, intentions and 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 of the effect of our expansion, benefits of the Share Repurchase Plan, trends in asset quality, capital, liquidity, the Company's ability to sell nonperforming assets, expense reductions, planned operational efficiencies and earnings from growth and certain market risk disclosures, including the impact of interest rates, tax reform, inflation 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.  Accordingly, our results could materially differ from those that have been estimated. 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 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, 2020, under “Part I - Item 1. Forward Looking Information” 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
     2021 2020
     Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,
    ASSETS         
    Cash and due from banks$92,047   $78,304   $87,357   $81,643   $81,271  
    Interest earning deposits36,441   29,319   21,051   14,561   19,535  
    Securities available for sale, at estimated fair value2,766,035   2,546,924   2,587,305   2,633,519   2,679,521  
    Securities held to maturity, at net carrying value94,850   98,159   108,998   115,089   120,384  
    Total securities2,860,885   2,645,083   2,696,303   2,748,608   2,799,905  
    Federal Home Loan Bank stock, at cost28,081   18,754   25,259   35,860   55,689  
    Loans held for sale2,510   2,615   3,695   8,686   3,392  
    Loans3,642,346   3,716,598   3,657,779   3,789,975   3,852,571  
    Less: Allowance for loan losses(42,913)  (41,454)  (49,006)  (55,110)  (59,868) 
    Net loans3,599,433   3,675,144   3,608,773   3,734,865   3,792,703  
    Premises & equipment, net142,835   144,628   144,576   147,169   147,715  
    Goodwill201,116   201,116   201,116   201,116   201,116  
    Other intangible assets, net8,248   8,978   9,744   10,569   11,450  
    Bank owned life insurance116,886   116,209   115,583   114,928   114,248  
    Other assets93,926   78,736   94,770   92,955   102,587  
    Total assets$7,182,408   $6,998,886   $7,008,227   $7,190,960   $7,329,611  
              
    LIABILITIES AND SHAREHOLDERS' EQUITY         
    Noninterest bearing deposits$1,501,120   $1,383,371   $1,354,815   $1,363,228   $1,398,179  
    Interest bearing deposits3,655,047   3,709,272   3,577,507   3,739,798   3,672,365  
    Total deposits5,156,167   5,092,643   4,932,322   5,103,026   5,070,544  
    
    Other borrowings and Federal Home Loan Bank borrowings
    745,151   687,845   855,699   994,512   1,165,463  
    Subordinated notes, net of unamortized debt
    issuance costs
    197,312   197,268   197,251   98,708   98,663  
    Trust preferred subordinated debentures, net of unamortized debt issuance costs60,258   60,256   60,255   60,254   60,253  
    Other liabilities129,120   102,277   87,403   95,312   117,083  
    Total liabilities6,288,008   6,140,289   6,132,930   6,351,812   6,512,006  
    Shareholders' equity894,400   858,597   875,297   839,148   817,605  
    Total liabilities and shareholders' equity$7,182,408   $6,998,886   $7,008,227   $7,190,960   $7,329,611  


                            Southside Bancshares, Inc.
                            Consolidated Financial Highlights (Unaudited)
                           (Dollars and shares in thousands, except per share data)
                            
     Three Months Ended
     2021 2020
     Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,
    Income Statement:         
    Total interest income$52,586   $53,565   $56,904   $55,677   $58,495 
    Total interest expense6,939   7,262   8,197   9,091   11,224 
    Net interest income45,647   46,303   48,707   46,586   47,271 
    Provision for credit losses1,677   (10,149)  (5,545)  (4,746)  5,245 
    Net interest income after provision for credit losses43,970   56,452   54,252   51,332   42,026 
    Noninterest income         
    Deposit services6,609   6,125   6,419   6,129   5,532 
    Net gain (loss) on sale of securities available for sale15   2,003   (24)  78   2,662 
    Gain on sale of loans393   593   848   1,071   683 
    Trust fees1,496   1,383   1,354   1,253   1,221 
    Bank owned life insurance645   626   655   680   650 
    Brokerage services850   780   628   564   499 
    Other925   2,113   1,020   1,366   946 
            Total noninterest income10,933   13,623   10,900   11,141   12,193 
    Noninterest expense         
    Salaries and employee benefits20,004   20,044   19,609   19,344   18,629 
    Net occupancy3,606   3,560   3,795   3,595   3,668 
    Advertising, travel & entertainment475   437   504   519   292 
    ATM expense272   238   290   271   233 
    Professional fees1,040   991   986   961   1,082 
    Software and data processing1,406   1,312   1,220   1,215   1,295 
    Communications612   525   490   495   506 
    FDIC insurance435   454   456   469   174 
    Amortization of intangibles730   766   825   881   931 
    Other2,119   2,907   3,140   3,866   3,046 
            Total noninterest expense30,699   31,234   31,315   31,616   29,856 
    Income before income tax expense24,204   38,841   33,837   30,857   24,363 
    Income tax expense2,887   4,750   4,265   3,783   2,809 
    Net income$21,317   $34,091   $29,572   $27,074   $21,554 
              
    Common Share Data:   
    Weighted-average basic shares outstanding32,632   32,829   33,055   33,047   33,016 
    Weighted-average diluted shares outstanding32,799   32,937   33,125   33,098   33,083 
    Common shares outstanding end of period32,675   32,659   32,951   33,072   33,032 
    Earnings per common share         
    Basic$0.65   $1.04   $0.89   $0.82   $0.65 
    Diluted0.65   1.04   0.89   0.82   0.65 
    Book value per common share27.37   26.29   26.56   25.37   24.75 
    Tangible book value per common share (1)20.97   19.86   20.16   18.97   18.32 
    Cash dividends paid per common share0.33   0.32   0.37   0.31   0.31 
              
    Selected Performance Ratios:         
    Return on average assets1.20%  1.99 %  1.64%  1.48%  1.17%
    Return on average shareholders’ equity9.73   15.82   13.77   12.89   10.82 
    Return on average tangible common equity (1)13.13   21.22   18.71   17.73   15.24 
    Average yield on earning assets (FTE) (1)3.49   3.67   3.70   3.57   3.69 
    Average rate on interest bearing liabilities0.60   0.64   0.68   0.73   0.87 
    Net interest margin (FTE) (1)3.06   3.20   3.20   3.02   3.02 
    Net interest spread (FTE) (1)2.89   3.03   3.02   2.84   2.82 
    Average earning assets to average interest bearing liabilities137.85   135.56   133.56   131.92   129.03 
    Noninterest expense to average total assets1.73   1.82   1.74   1.73   1.63 
    Efficiency ratio (FTE) (1)50.31   50.44   47.36   50.07   48.29 
    (1)   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)
      
     Three Months Ended
     2021 2020
     Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,
    Nonperforming Assets:$15,269  $15,367  $17,480  $16,822  $17,600 
    Nonaccrual loans5,154  5,314  7,714  5,971  5,639 
    Accruing loans past due more than 90 days         
    Troubled debt restructured loans9,549  9,641  9,646  10,307  11,367 
    Other real estate owned566  412  106  536  586 
    Repossessed assets    14  8  8 
              
    Asset Quality Ratios:         
    Ratio of nonaccruing loans to:         
    Total loans0.14% 0.14% 0.21% 0.16% 0.15%
    Ratio of nonperforming assets to:         
    Total assets0.21  0.22  0.25  0.23  0.24 
    Total loans0.42  0.41  0.48  0.44  0.46 
    Total loans and OREO0.42  0.41  0.48  0.44  0.46 
    Total loans, excluding PPP loans, and OREO0.43  0.44  0.51  0.48  0.50 
    Ratio of allowance for loan losses to:         
    Nonaccruing loans832.62  780.09  635.29  922.96  1,061.68 
    Nonperforming assets281.05  269.76  280.35  327.61  340.16 
    Total loans1.18  1.12  1.34  1.45  1.55 
    Total loans, excluding PPP loans1.22  1.19  1.42  1.58  1.68 
    Net charge-offs (recoveries) to average loans outstanding0.01  0.02  0.02  0.04  0.01 
              
    Capital Ratios:         
    Shareholders’ equity to total assets12.45  12.27  12.49  11.67  11.15 
    Common equity tier 1 capital14.38  14.71  14.68  14.24  13.68 
    Tier 1 risk-based capital15.71  16.09  16.08  15.63  15.06 
    Total risk-based capital20.95  21.52  21.78  19.03  18.51 
    Tier 1 leverage capital10.21  10.29  9.81  9.50  9.05 
    Period end tangible equity to period end tangible assets (1)9.82  9.55  9.77  8.99  8.50 
    Average shareholders’ equity to average total assets12.38  12.56  11.92  11.49  10.86 
     
    (1)   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
     2021 2020
    Loan Portfolio CompositionJun 30, Mar 31, Dec 31, Sep 30, Jun 30,
    Real Estate Loans:         
    Construction$528,157   $605,677   $581,941   $610,394   $570,801  
    1-4 Family Residential678,402   700,430   719,952   738,343   761,815  
    Commercial1,430,900   1,348,551   1,295,746   1,327,233   1,406,541  
    Commercial Loans497,513   564,745   557,122   629,170   639,162  
    Municipal Loans417,398   406,377   409,028   387,286   377,428  
    Loans to Individuals89,976   90,818   93,990   97,549   96,824  
    Total Loans$3,642,346   $3,716,598   $3,657,779   $3,789,975   $3,852,571  
              
    Summary of Changes in Allowances:         
    Allowance for Loan Losses         
    Balance at beginning of period$41,454   $49,006   $55,110   $59,868   $53,638  
    Loans charged-off(527)  (795)  (595)  (718)  (546) 
    Recoveries of loans charged-off466   622   402   361   436  
    Net loans (charged-off) recovered(61)  (173)  (193)  (357)  (110) 
    Provision for (reversal of) loan losses1,520   (7,379)  (5,911)  (4,401)  6,340  
    Balance at end of period$42,913   $41,454   $49,006   $55,110   $59,868  
              
    Allowance for Off-Balance-Sheet Credit Exposures         
    Balance at beginning of period$3,616   $6,386   $6,020   $6,365   $7,460  
    Provision for (reversal of) off-balance-sheet credit exposures157   (2,770)  366   (345)  (1,095) 
    Balance at end of period$3,773   $3,616   $6,386   $6,020   $6,365  
    Total Allowance for Credit Losses$46,686   $45,070   $55,392   $61,130   $66,233  


    Southside Bancshares, Inc.
    Consolidated Financial Highlights (Unaudited)
    (Dollars in thousands)
      
     Six Months Ended
     June 30,
     2021 2020
    Income Statement:   
    Total interest income$106,151  $119,247 
    Total interest expense14,201  27,275 
    Net interest income91,950  91,972 
    Provision for credit losses(8,472) 30,492 
    Net interest income after provision for credit losses100,422  61,480 
    Noninterest income   
    Deposit services12,734  11,811 
    Net gain on sale of securities available for sale2,018  8,203 
    Gain on sale of loans986  853 
    Trust fees2,879  2,526 
    Bank owned life insurance1,271  1,219 
    Brokerage services1,630  1,079 
    Other3,038  2,000 
            Total noninterest income24,556  27,691 
    Noninterest expense   
    Salaries and employee benefits40,048  38,272 
    Net occupancy7,166  6,979 
    Advertising, travel & entertainment912  1,124 
    ATM expense510  457 
    Professional fees2,031  2,277 
    Software and data processing2,718  2,522 
    Communications1,137  999 
    FDIC insurance889  199 
    Amortization of intangibles1,496  1,911 
    Other5,026  5,636 
            Total noninterest expense61,933  60,376 
    Income before income tax expense63,045  28,795 
    Income tax expense7,637  3,288 
    Net income$55,408  $25,507 
        
    Common Share Data:   
    Weighted-average basic shares outstanding32,730  33,353 
    Weighted-average diluted shares outstanding32,860  33,445 
    Common shares outstanding end of period32,675  33,032 
    Earnings per common share   
    Basic$1.69  $0.76 
    Diluted1.69  0.76 
    Book value per common share27.37  24.75 
    Tangible book value per common share (1)20.97  18.32 
    Cash dividends paid per common share0.65  0.62 
        
    Selected Performance Ratios:   
    Return on average assets1.59% 0.72%
    Return on average shareholders’ equity12.75  6.31 
    Return on average tangible common equity (1)17.13  9.06 
    Average yield on earning assets (FTE) (1)3.58  3.87 
    Average rate on interest bearing liabilities0.62  1.08 
    Net interest spread (FTE) (1)2.96  2.79 
    Net interest margin (FTE) (1)3.13  3.02 
    Average earning assets to average interest bearing liabilities136.72  127.66 
    Noninterest expense to average total assets1.78  1.70 
    Efficiency ratio (FTE) (1)50.38  50.06 
    (1)   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)
      
     Six Months Ended
     June 30,
     2021 2020
    Nonperforming Assets:$15,269  $17,600 
    Nonaccrual loans5,154  5,639 
    Accruing loans past due more than 90 days   
    Troubled debt restructured loans9,549  11,367 
    Other real estate owned566  586 
    Repossessed assets  8 
        
    Asset Quality Ratios:   
    Ratio of nonaccruing loans to:   
    Total loans0.14% 0.15%
    Ratio of nonperforming assets to:   
    Total assets0.21  0.24 
    Total loans0.42  0.46 
    Total loans and OREO0.42  0.46 
    Total loans, excluding PPP loans, and OREO0.43  0.50 
    Ratio of allowance for loan losses to:   
    Nonaccruing loans832.62  1,061.68 
    Nonperforming assets281.05  340.16 
    Total loans1.18  1.55 
    Total loans, excluding PPP loans1.22  1.68 
    Net charge-offs (recoveries) to average loans outstanding0.01  0.04 
        
    Capital Ratios:   
    Shareholders’ equity to total assets12.45  11.15 
    Common equity tier 1 capital14.38  13.68 
    Tier 1 risk-based capital15.71  15.06 
    Total risk-based capital20.95  18.51 
    Tier 1 leverage capital10.21  9.05 
    Period end tangible equity to period end tangible assets (1)9.82  8.50 
    Average shareholders’ equity to average total assets12.47  11.38 
    (1)   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)
      
     Six Months Ended
     June 30,
    Loan Portfolio Composition2021 2020
    Real Estate Loans:   
    Construction$528,157  $570,801 
    1-4 Family Residential678,402  761,815 
    Commercial1,430,900  1,406,541 
    Commercial Loans497,513  639,162 
    Municipal Loans417,398  377,428 
    Loans to Individuals89,976  96,824 
    Total Loans$3,642,346  $3,852,571 
        
    Summary of Changes in Allowances:   
    Allowance for Loan Losses   
    Balance at beginning of period$49,006  $24,797 
    Impact of CECL adoption (1) - cumulative effect adjustment—   5,072 
    Impact of CECL adoption - purchased loans with credit deterioration—   231 
    Loans charged-off(1,322) (1,541)
    Recoveries of loans charged-off1,088  887 
    Net loans (charged-off) recovered(234) (654)
    Provision for (reversal of) loan losses(5,859) 30,422 
    Balance at end of period$42,913  $59,868 
        
    Allowance for Off-Balance-Sheet Credit Exposures   
    Balance at beginning of period$6,386  $1,455 
    Impact of CECL adoption (1)—   4,840 
    Provision for (reversal of) off-balance-sheet credit exposures(2,613) 70 
    Balance at end of period$3,773  $6,365 
    Total Allowance for Credit Losses$46,686  $66,233 
    (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.


    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
     June 30, 2021 March 31, 2021
     Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/Rate
    ASSETS           
    Loans (1)$3,706,959  $36,429  3.94% $3,634,053  $36,754  4.10%
    Loans held for sale1,846  13  2.82% 2,803  20  2.89%
    Securities:           
    Taxable investment securities (2)396,504  2,921  2.95% 295,968  2,323  3.18%
    Tax-exempt investment securities (2)1,363,678  11,585  3.41% 1,300,991  11,176  3.48%
    Mortgage-backed and related securities (2)847,206  4,647  2.20% 940,815  6,088  2.62%
            Total securities2,607,388  19,153  2.95% 2,537,774  19,587  3.13%
    Federal Home Loan Bank stock, at cost, and equity investments35,883  108  1.21% 35,635  136  1.55%
    Interest earning deposits43,175  17  0.16% 31,169  15  0.20%
    Total earning assets6,395,251  55,720  3.49% 6,241,434  56,512  3.67%
    Cash and due from banks90,735      86,634     
    Accrued interest and other assets656,245      677,230     
    Less:  Allowance for loan losses(41,768)     (49,240)    
    Total assets$7,100,463      $6,956,058     
    LIABILITIES AND SHAREHOLDERS’ EQUITY           
    Savings accounts$571,907  231  0.16% $517,182  209  0.16%
    Certificates of deposits658,708  936  0.57% 736,099  1,229  0.68%
    Interest bearing demand accounts2,459,335  1,172  0.19% 2,342,299  1,159  0.20%
    Total interest bearing deposits3,689,950  2,339  0.25% 3,595,580  2,597  0.29%
    Federal Home Loan Bank borrowings669,633  1,817  1.09% 727,513  1,908  1.06%
    Subordinated notes, net of unamortized debt issuance costs197,284  2,423  4.93% 197,252  2,395  4.92%
    Trust preferred subordinated debentures, net of unamortized debt issuance costs60,257  349  2.32% 60,256  351  2.36%
    Other borrowings22,024  11  0.20% 23,522  11  0.19%
    Total interest bearing liabilities4,639,148  6,939  0.60% 4,604,123  7,262  0.64%
    Noninterest bearing deposits1,485,383      1,389,020     
    Accrued expenses and other liabilities97,137      89,222     
    Total liabilities6,221,668      6,082,365     
    Shareholders’ equity878,795      873,693     
    Total liabilities and shareholders’ equity$7,100,463      $6,956,058     
    Net interest income (FTE)  $48,781      $49,250   
    Net interest margin (FTE)    3.06%     3.20%
    Net interest spread (FTE)    2.89%     3.03%
     
    (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 June 30, 2021 and March 31, 2021, loans totaling $5.2 million and $5.3 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
     December 31, 2020 September 30, 2020
     Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/Rate
    ASSETS           
    Loans (1)$3,772,158  $39,936  4.21% $3,815,989  $38,842  4.05%
    Loans held for sale5,012  36  2.86% 3,934  31  3.13%
    Securities:           
    Taxable investment securities (2)223,753  1,753  3.12% 145,724  1,175  3.21%
    Tax-exempt investment securities (2)1,298,584  11,413  3.50% 1,295,179  11,418  3.51%
    Mortgage-backed and related securities (2)1,082,302  6,693  2.46% 1,209,913  7,048  2.32%
            Total securities2,604,639  19,859  3.03% 2,650,816  19,641  2.95%
    Federal Home Loan Bank stock, at cost, and equity investments46,798  199  1.69% 60,528  249  1.64%
    Interest earning deposits22,938  18  0.31% 17,668  17  0.38%
    Total earning assets6,451,545  60,048  3.70% 6,548,935  58,780  3.57%
    Cash and due from banks83,228      80,368     
    Accrued interest and other assets687,894      699,351     
    Less:  Allowance for loan losses(55,567)     (61,212)    
    Total assets$7,167,100      $7,267,442     
    LIABILITIES AND SHAREHOLDERS’ EQUITY           
    Savings accounts$487,452  201  0.16% $461,895  192  0.17%
    Certificates of deposit1,011,482  2,320  0.91% 1,172,179  3,568  1.21%
    Interest bearing demand accounts2,186,406  1,117  0.20% 2,069,751  1,102  0.21%
    Total interest bearing deposits3,685,340  3,638  0.39% 3,703,825  4,862  0.52%
    Federal Home Loan Bank borrowings896,484  2,125  0.94% 1,037,855  2,369  0.91%
    Subordinated notes, net of unamortized debt issuance costs158,692  2,051  5.14% 98,686  1,427  5.75%
    Trust preferred subordinated debentures, net of unamortized debt issuance costs60,255  360  2.38% 60,253  378  2.50%
    Other borrowings29,661  23  0.31% 63,526  55  0.34%
    Total interest bearing liabilities4,830,432  8,197  0.68% 4,964,145  9,091  0.73%
    Noninterest bearing deposits1,381,120      1,371,748     
    Accrued expenses and other liabilities101,478      96,219     
    Total liabilities6,313,030      6,432,112     
    Shareholders’ equity854,070      835,330     
    Total liabilities and shareholders’ equity$7,167,100      $7,267,442     
    Net interest income (FTE)  $51,851      $49,689   
    Net interest margin (FTE)    3.20%     3.02%
    Net interest spread (FTE)    3.02%     2.84%
     
    (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 December 31, 2020 and September 30, 2020, loans totaling $7.7 million and $6.0 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
     June 30, 2020
     Average Balance Interest Average Yield/Rate
    ASSETS     
    Loans (1) $3,826,383   $39,766  4.18%
    Loans held for sale3,213   28  3.50%
    Securities:     
    Taxable investment securities (2)94,247   732  3.12%
    Tax-exempt investment securities (2)1,320,772   11,560  3.52%
    Mortgage-backed and related securities (2)1,359,941   9,044  2.67%
            Total securities2,774,960   21,336  3.09%
    Federal Home Loan Bank stock, at cost, and equity investments67,582   360  2.14%
    Interest earning deposits24,097   23  0.38%
    Total earning assets6,696,235   61,513  3.69%
    Cash and due from banks78,326      
    Accrued interest and other assets660,411      
    Less:  Allowance for loan losses(55,908)     
    Total assets$7,379,064      
    LIABILITIES AND SHAREHOLDERS’ EQUITY     
    Savings accounts$426,420   187  0.18%
    Certificates of deposit1,187,665   4,817  1.63%
    Interest bearing demand accounts2,013,770   1,225  0.24%
    Total interest bearing deposits3,627,855   6,229  0.69%
    Federal Home Loan Bank borrowings1,197,097   2,929  0.98%
    Subordinated notes, net of unamortized debt issuance costs98,641   1,412  5.76%
    Trust preferred subordinated debentures, net of unamortized debt issuance costs60,252   491  3.28%
    Other borrowings205,724   163  0.32%
    Total interest bearing liabilities5,189,569   11,224  0.87%
    Noninterest bearing deposits1,310,651      
    Accrued expenses and other liabilities77,431      
    Total liabilities6,577,651      
    Shareholders’ equity801,413      
    Total liabilities and shareholders’ equity$7,379,064      
    Net interest income (FTE)  $50,289   
    Net interest margin (FTE)    3.02%
    Net interest spread (FTE)    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 June 30, 2020, loans totaling $5.6 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)
      
     Six Months Ended
     June 30, 2021 June 30, 2020
     Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/Rate
    ASSETS           
    Loans (1) $3,670,708  $73,183  4.02% $3,706,763  $82,320  4.47%
    Loans held for sale2,321  33  2.87% 2,022  37  3.68%
    Securities:           
    Taxable investment securities (2)346,514  5,244  3.05% 82,270  1,244  3.04%
    Tax-exempt investment securities (2)1,332,507  22,761  3.44% 1,104,839  19,397  3.53%
    Mortgage-backed and related securities (2)893,752  10,735  2.42% 1,479,157  20,578  2.80%
            Total securities2,572,773  38,740  3.04% 2,666,266  41,219  3.11%
    Federal Home Loan Bank stock, at cost, and equity investments35,760  244  1.38% 65,279  785  2.42%
    Interest earning deposits37,205  32  0.17% 32,167  203  1.27%
    Total earning assets6,318,767  112,232  3.58% 6,472,497  124,564  3.87%
    Cash and due from banks88,696      77,533     
    Accrued interest and other assets666,280      635,540     
    Less:  Allowance for loan losses(45,483)     (43,141)    
    Total assets$7,028,260      $7,142,429     
    LIABILITIES AND SHAREHOLDERS’ EQUITY           
    Savings accounts$544,696  440  0.16% $405,642  424  0.21%
    Certificates of deposit697,190  2,165  0.63% 1,275,046  11,163  1.76%
    Interest bearing demand accounts2,401,140  2,331  0.20% 1,994,803  4,561  0.46%
    Total interest bearing deposits3,643,026  4,936  0.27% 3,675,491  16,148  0.88%
    Federal Home Loan Bank borrowings698,413  3,725  1.08% 1,098,083  6,903  1.26%
    Subordinated notes, net of unamortized debt issuance costs197,268  4,818  4.93% 98,619  2,823  5.76%
    Trust preferred subordinated debentures, net of unamortized debt issuance costs60,256  700  2.34% 60,252  1,091  3.64%
    Other borrowings22,769  22  0.19% 137,785  310  0.45%
    Total interest bearing liabilities4,621,732  14,201  0.62% 5,070,230  27,275  1.08%
    Noninterest bearing deposits1,437,468      1,176,496     
    Accrued expenses and other liabilities92,802      82,617     
    Total liabilities6,152,002      6,329,343     
    Shareholders’ equity876,258      813,086     
    Total liabilities and shareholders’ equity$7,028,260      $7,142,429     
    Net interest income (FTE)  $98,031      $97,289   
    Net interest margin (FTE)    3.13%     3.02%
    Net interest spread (FTE)    2.96%     2.79%
    (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 June 30, 2021 and 2020, loans totaling $5.2 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.
    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 Six Months Ended
      2021 2020 2021 2020
      Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Jun 30, Jun 30,
    Reconciliation of return on average common equity to return on average tangible common equity:              
    Net income $21,317   $34,091   $29,572   $27,074   $21,554   $55,408   $25,507  
    After-tax amortization expense 577   605   652   696   735   1,182   1,510  
    Adjusted net income available to common shareholders $21,894   $34,696   $30,224   $27,770   $22,289   $56,590   $27,017  
                   
    Average shareholders' equity $878,795   $873,693   $854,070   $835,330   $801,413   $876,258   $813,086  
    Less: Average intangibles for the period (209,808)  (210,563)  (211,354)  (212,221)  (213,135)  (210,183)  (213,620) 
    Average tangible shareholders' equity $668,987   $663,130   $642,716   $623,109   $588,278   $666,075   $599,466  
                   
    Return on average tangible common equity 13.13 % 21.22 % 18.71 % 17.73 % 15.24 % 17.13 % 9.06 %
                   
    Reconciliation of book value per share to tangible book value per share:              
    Common equity at end of period $894,400   $858,597   $875,297   $839,148   $817,605   $894,400   $817,605  
    Less: Intangible assets at end of period (209,364)  (210,094)  (210,860)  (211,685)  (212,566)  (209,364)  (212,566) 
    Tangible common shareholders' equity at end of period $685,036   $648,503   $664,437   $627,463   $605,039   $685,036   $605,039  
                   
    Total assets at end of period $7,182,408   $6,998,886   $7,008,227   $7,190,960   $7,329,611   $7,182,408   $7,329,611  
    Less: Intangible assets at end of period (209,364)  (210,094)  (210,860)  (211,685)  (212,566)  (209,364)  (212,566) 
    Tangible assets at end of period $6,973,044   $6,788,792   $6,797,367   $6,979,275   $7,117,045   $6,973,044   $7,117,045  
                   
    Period end tangible equity to period end tangible assets 9.82 % 9.55 % 9.77 % 8.99 % 8.50 % 9.82 % 8.50 %
                   
    Common shares outstanding end of period 32,675   32,659   32,951   33,072   33,032   32,675   33,032  
    Tangible book value per common share $20.97   $19.86   $20.16   $18.97   $18.32   $20.97   $18.32  
                   
    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) $45,647   $46,303   $48,707   $46,586   $47,271   $91,950   $91,972  
    Tax equivalent adjustments:              
    Loans 722   736   717   688   679   1,458   1,347  
    Tax-exempt investment securities 2,412   2,211   2,427   2,415   2,339   4,623   3,970  
    Net interest income (FTE) (1) 48,781   49,250   51,851   49,689   50,289   98,031   97,289  
    Noninterest income 10,933   13,623   10,900   11,141   12,193   24,556   27,691  
    Nonrecurring income (2) (15)  (2,003)  24   (78)  (2,662)  (2,018)  (8,203) 
    Total revenue $59,699   $60,870   $62,775   $60,752   $59,820   $120,569   $116,777  
                   
    Noninterest expense $30,699   $31,234   $31,315   $31,616   $29,856   $61,933   $60,376  
    Pre-tax amortization expense (730)  (766)  (825)  (881)  (931)  (1,496)  (1,911) 
    Nonrecurring expense (3) 64   236   (758)  (315)  (39)  300   (10) 
    Adjusted noninterest expense $30,033   $30,704   $29,732   $30,420   $28,886   $60,737   $58,455  
                   
    Efficiency ratio 53.09 % 53.01 % 49.86 % 52.77 % 50.85 % 53.05 % 52.44 %
    Efficiency ratio (FTE) (1) 50.31 % 50.44 % 47.36 % 50.07 % 48.29 % 50.38 % 50.06 %
                   
    Average earning assets $6,395,251   $6,241,434   $6,451,545   $6,548,935   $6,696,235   $6,318,767   $6,472,497  
                   
    Net interest margin 2.86 % 3.01 % 3.00 % 2.83 % 2.84 % 2.93 % 2.86 %
    Net interest margin (FTE) (1) 3.06 % 3.20 % 3.20 % 3.02 % 3.02 % 3.13 % 3.02 %
                   
    Net interest spread 2.70 % 2.84 % 2.83 % 2.65 % 2.64 % 2.77 % 2.62 %
    Net interest spread (FTE) (1) 2.89 % 3.03 % 3.02 % 2.84 % 2.82 % 2.96 % 2.79 %
    (1)   These amounts are presented on a fully taxable-equivalent basis and are non-GAAP measures.
    (2)   These adjustments may include net gain or loss on sale of securities available for sale in the periods where applicable.
    (3)   These adjustments may include foreclosure expenses and branch closure expenses, in the periods where applicable.






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