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Southside Bancshares, Inc. Announces Financial Results for the Second Quarter Ended June 30, 2024
Source: Nasdaq GlobeNewswire / 25 Jul 2024 04:45:02 America/Chicago
- Second quarter net income of $24.7 million;
- Second quarter earnings per diluted common share of $0.81;
- Annualized return on second quarter average assets of 1.19%;
- Annualized return on second quarter average tangible common equity of 16.90%(1); and
- Nonperforming assets remain low at 0.08% of total assets.
TYLER, Texas, July 25, 2024 (GLOBE NEWSWIRE) -- Southside Bancshares, Inc. (“Southside” or the “Company”) (NASDAQ: SBSI) today reported its financial results for the quarter ended June 30, 2024. Southside reported net income of $24.7 million for the three months ended June 30, 2024, a decrease of $0.2 million, or 0.9%, compared to $24.9 million for the same period in 2023. Earnings per diluted common share remained the same at $0.81 for both of the three-month periods ended June 30, 2024 and 2023. The annualized return on average shareholders’ equity for the three months ended June 30, 2024, was 12.46%, compared to 13.32% for the same period in 2023. The annualized return on average assets was 1.19% for the three months ended June 30, 2024, compared to 1.29% for the same period in 2023.
“We reported excellent financial results for the second quarter highlighted by earnings per share of $0.81, a return on assets of 1.19%, a 16.90% return on average tangible equity(1), and continued strong asset quality,” stated Lee R. Gibson, Chief Executive Officer of Southside. “Linked quarter net interest income increased $260,000 and the net interest margin(1) increased one basis point to 2.87%. Noninterest expense, linked quarter decreased $1.1 million due to a $1.1 million decrease in salaries and employee benefits, $618,000 of which was due to a first quarter cost reduction initiative.”
Operating Results for the Three Months Ended June 30, 2024
Net income was $24.7 million for the three months ended June 30, 2024, compared to $24.9 million for the same period in 2023, a decrease of $0.2 million, or 0.9%. Earnings per diluted common share were $0.81 for both of the three-month periods ended June 30, 2024 and 2023. The decrease in net income was a result of increases in noninterest expense and income tax expense and the decrease in net interest income, partially offset by the increase in noninterest income and the decrease in provision for credit losses. Annualized returns on average assets and average shareholders’ equity for the three months ended June 30, 2024 were 1.19% and 12.46%, respectively, compared to 1.29% and 13.32%, respectively, for the three months ended June 30, 2023. Our efficiency ratio and tax-equivalent efficiency ratio(1) were 54.90% and 52.71%, respectively, for the three months ended June 30, 2024, compared to 53.54% and 51.06%, respectively, for the three months ended June 30, 2023, and 57.95% and 55.54%, respectively, for the three months ended March 31, 2024.
Net interest income for the three months ended June 30, 2024 was $53.6 million, a decrease of $0.3 million, or 0.6%, from the same period in 2023. The decrease in net interest income was largely due to increases in the average rate paid on our interest bearing liabilities and average balance of our interest bearing liabilities, partially offset by the increase in the average balance of interest earning assets and the increase in the average yield of interest earning assets. Linked quarter, net interest income increased $0.3 million, or 0.5%, compared to $53.3 million during the three months ended March 31, 2024, largely due to the increase in the average yield on our interest earning assets and the decrease in the average balance of interest bearing liabilities, partially offset by the average rate paid on our interest bearing liabilities.
Our net interest margin and tax-equivalent net interest margin(1) decreased to 2.74% and 2.87%, respectively, for the three months ended June 30, 2024, compared to 2.99% and 3.17%, respectively, for the same period in 2023. Linked quarter, net interest margin and tax-equivalent net interest margin(1) increased from 2.72% and 2.86%, respectively for the three months ended March 31, 2024.
Noninterest income was $11.6 million for the three months ended June 30, 2024, an increase of $1.1 million, or 10.4%, compared to $10.5 million for the same period in 2023. The increase was primarily due to a decrease in net loss on sale of securities available for sale (“AFS”) and an increase in bank owned life insurance (“BOLI”) income due to a death benefit realized in 2024, partially offset by a $2.6 million net gain on sale of equity securities during the three months ended June 30, 2023. On a linked quarter basis, noninterest income increased $1.8 million, or 18.9%, compared to the three months ended March 31, 2024. The increase was primarily due to an increase in BOLI income related to a $1.0 million death benefit realized in the second quarter of 2024, and increases in gain on sale of loans and other noninterest income, partially offset by an increase in net loss on sale of securities AFS for the three months ended June 30, 2024.
Noninterest expense increased $0.8 million, or 2.2%, to $35.8 million for the three months ended June 30, 2024, compared to $35.0 million for the same period in 2023, due to increases in salaries and employee benefits and software and data processing expense, partially offset by decreases in FDIC insurance, amortization of intangibles and professional fees. On a linked quarter basis, noninterest expense decreased by $1.1 million, or 3.0%, compared to the three months ended March 31, 2024, due to a decrease in salaries and employee benefits expense.
Income tax expense increased $0.6 million, or 14.1%, for the three months ended June 30, 2024, compared to the same period in 2023. On a linked quarter basis, income tax expense increased $0.6 million, or 12.8%. Our effective tax rate (“ETR”) increased to 17.4% for the three months ended June 30, 2024, compared to 15.5% for the three months ended June 30, 2023, and decreased slightly from 17.7% for the three months ended March 31, 2024. The higher ETR for the three months ended June 30, 2024 compared to the same period in 2023, was primarily due to a decrease in tax-exempt income as a percentage of pre-tax income.
Operating Results for the Six Months Ended June 30, 2024
Net income was $46.2 million for the six months ended June 30, 2024, compared to $50.9 million for the same period in 2023, a decrease of $4.7 million, or 9.3%. Earnings per diluted common share were $1.52 for the six months ended June 30, 2024, compared to $1.64 for the same period in 2023, a decrease of 7.3%. The decrease in net income was primarily a result of the increase in noninterest expense, the decrease in noninterest income and the increase in income tax expense. Returns on average assets and average shareholders’ equity for the six months ended June 30, 2024 were 1.11% and 11.74%, respectively, compared to 1.34% and 13.62%, respectively, for the six months ended June 30, 2023. Our efficiency ratio and tax-equivalent efficiency ratio(1) were 56.41% and 54.11%, respectively, for the six months ended June 30, 2024, compared to 53.55% and 51.02%, respectively, for the six months ended June 30, 2023.
Net interest income was $107.0 million for the six months ended June 30, 2024, compared to $107.3 million for the same period in 2023, a decrease of $0.3 million, or 0.3%, due to increases in the average rate paid on our interest bearing liabilities and average balance of our interest bearing liabilities, partially offset by the increase in the average balance of interest earning assets and the increase in the average yield of interest earning assets.
Our net interest margin and tax-equivalent net interest margin(1) were 2.73% and 2.87%, respectively, for the six months ended June 30, 2024, compared to 3.01% and 3.19%, respectively, for the same period in 2023.
Noninterest income was $21.3 million for the six months ended June 30, 2024, a decrease of $1.2 million, or 5.4%, compared to $22.5 million for the same period in 2023. The decrease was primarily due to decreases in the net gain on sale of equity securities, deposit services income and other noninterest income, partially offset by a decrease in net loss on sale of securities AFS.
Noninterest expense was $72.6 million for the six months ended June 30, 2024, compared to $69.8 million for the same period in 2023, an increase of $2.8 million, or 4.0%. The increase was primarily due to increases in salaries and employee benefits and software and data processing expense, partially offset by decreases in professional fees and net occupancy expense.
Income tax expense increased $0.7 million, or 7.9%, for the six months ended June 30, 2024, compared to the same period in 2023. Our ETR was approximately 17.6% and 15.2% for the six months ended June 30, 2024 and 2023, respectively. The higher ETR for the six months ended June 30, 2024, as compared to the same period in 2023, was primarily due to a decrease in tax-exempt income as a percentage of pre-tax income.
Balance Sheet Data
At June 30, 2024, Southside had $8.36 billion in total assets, compared to $8.28 billion at December 31, 2023 and $7.81 billion at June 30, 2023.
Loans at June 30, 2024 were $4.59 billion, an increase of $260.3 million, or 6.0%, compared to $4.33 billion at June 30, 2023. Linked quarter, loans increased $12.0 million, or 0.3%, due to increases of $59.4 million in commercial real estate loans, $17.5 million in 1-4 family residential loans and $1.8 million in commercial loans. These increases were partially offset by decreases of $53.4 million in construction loans, $10.2 million in municipal loans and $3.0 million in loans to individuals.
Securities at June 30, 2024 were $2.71 billion, an increase of $63.6 million, or 2.4%, compared to $2.65 billion at June 30, 2023. Linked quarter, securities remained the same at $2.71 billion at March 31, 2024.
Deposits at June 30, 2024 were $6.50 billion, an increase of $378.2 million, or 6.2%, compared to $6.12 billion at June 30, 2023, primarily due to an increase in public fund deposits of $306.8 million, or 38.3%. Linked quarter, deposits decreased $49.8 million, or 0.8%, from $6.55 billion at March 31, 2024.
At June 30, 2024, we had 179,536 total deposit accounts with an average balance of $32,000. Our estimated uninsured deposits were 36.4% as of June 30, 2024. When excluding affiliate deposits (Southside-owned deposits) and public fund deposits (all collateralized), our total estimated deposits without insurance or collateral was 19.4% as of June 30, 2024. Our noninterest bearing deposits represent approximately 21.0% of total deposits. Linked quarter, our cost of interest bearing deposits increased 4 basis points from 2.97% in the prior quarter to 3.01%. Linked quarter, our cost of total deposits increased 3 basis points from 2.36% in the prior quarter to 2.39%.
Our cost of interest bearing deposits increased 107 basis points, from 1.92% for the six months ended June 30, 2023, to 2.99% for the six months ended June 30, 2024. Our cost of total deposits increased 95 basis points, from 1.42% for the six months ended June 30, 2023, to 2.37% for the six months ended June 30, 2024.
Capital Resources and Liquidity
Our capital ratios and contingent liquidity sources remain solid. During the second quarter ended June 30, 2024, we purchased 57,966 shares of the Company’s common stock at an average price of $26.22 authorized pursuant to our Stock Repurchase Plan. Under this plan, repurchases of our outstanding common stock may be carried out in open market purchases, privately negotiated transactions or pursuant to any trading plan that might be adopted in accordance with Rule 10b5-1 of The Securities Exchange Act of 1934, as amended. The Company has no obligation to repurchase any shares under the Stock Repurchase Plan and may modify, suspend or discontinue the plan at any time. We have not purchased any common stock pursuant to the Stock Repurchase Plan subsequent to June 30, 2024.
As of June 30, 2024, our total available contingent liquidity, net of current outstanding borrowings, was $2.24 billion, consisting of FHLB advances, Federal Reserve Discount Window and correspondent bank lines of credit.
Asset Quality
Nonperforming assets at June 30, 2024 were $6.9 million, or 0.08% of total assets, an increase of $3.9 million, or 126.2%, compared to $3.1 million, or 0.04% of total assets, at June 30, 2023. Linked quarter, nonperforming assets decreased $1.1 million, from $8.0 million at March 31, 2024 due primarily to a decrease of $1.6 million, or 20.7%, in nonaccrual loans, partially offset by an increase in other real estate owned of $0.5 million, or 444.5%.
The allowance for loan losses totaled $42.4 million, or 0.92% of total loans, at June 30, 2024, compared to $43.6 million, or 0.95% of total loans, at March 31, 2024. The allowance for loan losses was $36.3 million, or 0.84% of total loans, at June 30, 2023.
For the three months ended June 30, 2024, we recorded a reversal of provision for credit losses for loans of $0.9 million, compared to provisions of $0.3 million and $1.2 million for the three months ended June 30, 2023 and March 31, 2024, respectively. Net charge-offs were $0.3 million for the three months ended June 30, 2024, June 30, 2023 and March 31, 2024. Net charge-offs were $0.6 million for the six months ended June 30, 2024 and 2023.
We recorded a provision for credit losses on off-balance-sheet credit exposures of $0.4 million for the three months ended June 30, 2024, compared to a reversal of provision for credit losses on off-balance-sheet credit exposures of $0.4 million and $1.1 million for the three months ended June 30, 2023 and March 31, 2024, respectively. We recorded a reversal of provision for credit losses for off-balance-sheet credit exposures of $0.7 million and $0.5 million for the six months ended June 30, 2024 and 2023, respectively. The balance of the allowance for off-balance-sheet credit exposures was $3.2 million at June 30, 2024 and 2023, and is included in other liabilities.
Dividend
Southside Bancshares, Inc. declared a second quarter cash dividend of $0.36 per share on May 9, 2024, which was paid on June 6, 2024, to all shareholders of record as of May 23, 2024.
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(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, 2024 financial results on Thursday, July 25, 2024 at 11:00 a.m. CDT. The conference call can be accessed by webcast, for listen-only mode, on the company website, https://investors.southside.com, under Events.
Those interested in participating in the question and answer session, or others who prefer to call-in, can register at https://register.vevent.com/register/BI75b7c880842b4a5586bfc4c325374418 to receive the dial-in number and unique code to access the conference call seamlessly. While not required, it is recommended that those wishing to participate, register 10 minutes prior to the conference call to ensure a more efficient registration process.
For those unable to attend the live event, a webcast recording will be available on the company website, https://investors.southside.com, for at least 30 days, beginning approximately two hours following the conference call.
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 $8.36 billion in assets as of June 30, 2024, that owns 100% of Southside Bank. Southside Bank currently has 54 branches in Texas and operates a network of 73 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 email notification of company news, events and stock activity, please register on the website under Resources and Investor Email Alerts. Questions or comments may be directed to Julie Shamburger at (903) 531-7134, or julie.shamburger@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 and our expectations regarding rate increases, tax reform, inflation, the impacts related to or resulting from 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 significant factor that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of higher inflation levels, prolonged elevated interest rates and general economic and recessionary concerns, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations, our ability to manage liquidity in a rapidly changing and unpredictable market, labor shortages and changes in interest rates by the Federal Reserve.
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, 2023, under “Part I - Item 1. Forward Looking Information” and “Part I - 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 2024 2023 Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, ASSETS Cash and due from banks $ 114,283 $ 96,744 $ 122,021 $ 105,601 $ 114,707 Interest earning deposits 272,469 307,257 391,719 106,094 14,059 Federal funds sold 65,244 65,372 46,770 114,128 78,347 Securities available for sale, at estimated fair value 1,405,944 1,405,221 1,296,294 1,335,560 1,339,821 Securities held to maturity, at net carrying value 1,305,975 1,306,898 1,307,053 1,307,886 1,308,472 Total securities 2,711,919 2,712,119 2,603,347 2,643,446 2,648,293 Federal Home Loan Bank stock, at cost 32,991 27,958 11,936 12,778 10,801 Loans held for sale 1,352 756 10,894 1,382 1,666 Loans 4,589,365 4,577,368 4,524,510 4,420,633 4,329,043 Less: Allowance for loan losses (42,407 ) (43,557 ) (42,674 ) (41,760 ) (36,303 ) Net loans 4,546,958 4,533,811 4,481,836 4,378,873 4,292,740 Premises & equipment, net 138,489 139,491 138,950 139,473 139,801 Goodwill 201,116 201,116 201,116 201,116 201,116 Other intangible assets, net 2,281 2,588 2,925 3,295 3,702 Bank owned life insurance 136,903 136,604 136,330 135,737 134,951 Other assets 133,697 130,047 137,070 130,545 167,069 Total assets $ 8,357,702 $ 8,353,863 $ 8,284,914 $ 7,972,468 $ 7,807,252 LIABILITIES AND SHAREHOLDERS' EQUITY Noninterest bearing deposits $ 1,366,924 $ 1,358,827 $ 1,390,407 $ 1,431,285 $ 1,466,756 Interest bearing deposits 5,129,008 5,186,933 5,159,274 4,918,286 4,650,931 Total deposits 6,495,932 6,545,760 6,549,681 6,349,571 6,117,687 Other borrowings and Federal Home Loan Bank borrowings 763,700 770,151 722,468 608,038 683,348 Subordinated notes, net of unamortized debt
issuance costs91,970 93,913 93,877 93,838 93,796 Trust preferred subordinated debentures, net of unamortized debt issuance costs 60,272 60,271 60,270 60,269 60,267 Other liabilities 144,858 95,846 85,330 132,157 86,993 Total liabilities 7,556,732 7,565,941 7,511,626 7,243,873 7,042,091 Shareholders' equity 800,970 787,922 773,288 728,595 765,161 Total liabilities and shareholders' equity $ 8,357,702 $ 8,353,863 $ 8,284,914 $ 7,972,468 $ 7,807,252 Southside Bancshares, Inc.
Consolidated Financial Highlights (Unaudited)
(Dollars and shares in thousands, except per share data)Three Months Ended 2024 2023 Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Income Statement: Total interest income $ 104,186 $ 102,758 $ 98,939 $ 93,078 $ 86,876 Total interest expense 50,578 49,410 44,454 39,805 32,960 Net interest income 53,608 53,348 54,485 53,273 53,916 Provision for (reversal of) credit losses (485 ) 58 2,281 6,987 (74 ) Net interest income after provision for (reversal of) credit losses 54,093 53,290 52,204 46,286 53,990 Noninterest income Deposit services 6,157 5,985 6,305 6,479 6,291 Net gain (loss) on sale of securities available for sale (563 ) (18 ) (10,386 ) 11 (3,455 ) Net gain on sale of equity securities — — — — 2,642 Gain (loss) on sale of loans 220 (436 ) 178 96 185 Trust fees 1,456 1,336 1,431 1,522 1,490 Bank owned life insurance 1,767 784 2,602 790 756 Brokerage services 1,081 1,014 944 760 904 Other 1,439 1,059 1,427 1,178 1,651 Total noninterest income 11,557 9,724 2,501 10,836 10,464 Noninterest expense Salaries and employee benefits 21,984 23,113 21,152 21,241 21,376 Net occupancy 3,750 3,362 3,474 3,796 3,690 Advertising, travel & entertainment 795 950 1,127 1,062 854 ATM expense 368 325 318 358 320 Professional fees 1,075 1,154 1,315 1,472 1,192 Software and data processing 2,860 2,856 2,644 2,432 2,264 Communications 410 449 435 359 348 FDIC insurance 977 943 892 902 1,220 Amortization of intangibles 307 337 370 407 442 Other 3,239 3,392 3,456 3,524 3,287 Total noninterest expense 35,765 36,881 35,183 35,553 34,993 Income before income tax expense 29,885 26,133 19,522 21,569 29,461 Income tax expense 5,212 4,622 2,206 3,120 4,568 Net income $ 24,673 $ 21,511 $ 17,316 $ 18,449 $ 24,893 Common Share Data: Weighted-average basic shares outstanding 30,280 30,262 30,235 30,502 30,721 Weighted-average diluted shares outstanding 30,312 30,305 30,276 30,543 30,754 Common shares outstanding end of period 30,261 30,284 30,249 30,338 30,532 Earnings per common share Basic $ 0.81 $ 0.71 $ 0.57 $ 0.60 $ 0.81 Diluted 0.81 0.71 0.57 0.60 0.81 Book value per common share 26.47 26.02 25.56 24.02 25.06 Tangible book value per common share 19.75 19.29 18.82 17.28 18.35 Cash dividends paid per common share 0.36 0.36 0.37 0.35 0.35 Selected Performance Ratios: Return on average assets 1.19 % 1.03 % 0.85 % 0.93 % 1.29 % Return on average shareholders’ equity 12.46 11.02 9.31 9.50 13.32 Return on average tangible common equity (1) 16.90 15.07 13.10 13.17 18.59 Average yield on earning assets (FTE) (1) 5.45 5.38 5.30 5.15 5.00 Average rate on interest bearing liabilities 3.32 3.22 3.04 2.84 2.45 Net interest margin (FTE) (1) 2.87 2.86 2.99 3.02 3.17 Net interest spread (FTE) (1) 2.13 2.16 2.26 2.31 2.55 Average earning assets to average interest bearing liabilities 128.62 127.71 131.65 133.24 134.12 Noninterest expense to average total assets 1.72 1.77 1.73 1.79 1.82 Efficiency ratio (FTE) (1) 52.71 55.54 50.86 52.29 51.06 (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)Three Months Ended 2024 2023 Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Nonperforming Assets: $ 6,918 $ 7,979 $ 4,001 $ 4,381 $ 3,059 Nonaccrual loans 6,110 7,709 3,889 4,316 3,017 Accruing loans past due more than 90 days — — — — — Restructured loans 145 151 13 15 — Other real estate owned 648 119 99 50 — Repossessed assets 15 — — — 42 Asset Quality Ratios: Ratio of nonaccruing loans to: Total loans 0.13 % 0.17 % 0.09 % 0.10 % 0.07 % Ratio of nonperforming assets to: Total assets 0.08 0.10 0.05 0.05 0.04 Total loans 0.15 0.17 0.09 0.10 0.07 Total loans and OREO 0.15 0.17 0.09 0.10 0.07 Ratio of allowance for loan losses to: Nonaccruing loans 694.06 565.01 1,097.30 967.56 1,203.28 Nonperforming assets 613.00 545.90 1,066.58 953.21 1,186.76 Total loans 0.92 0.95 0.94 0.94 0.84 Net charge-offs (recoveries) to average loans outstanding 0.02 0.03 0.11 0.08 0.03 Capital Ratios: Shareholders’ equity to total assets 9.58 9.43 9.33 9.14 9.80 Common equity tier 1 capital 12.72 12.43 12.28 12.27 12.32 Tier 1 risk-based capital 13.76 13.47 13.32 13.31 13.37 Total risk-based capital 16.16 15.92 15.73 15.71 15.68 Tier 1 leverage capital 9.40 9.22 9.39 9.61 9.69 Period end tangible equity to period end tangible assets (1) 7.33 7.17 7.04 6.75 7.37 Average shareholders’ equity to average total assets 9.52 9.35 9.13 9.76 9.72 (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 2024 2023 Loan Portfolio Composition Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Real Estate Loans: Construction $ 546,040 $ 599,464 $ 789,744 $ 720,515 $ 657,354 1-4 Family Residential 738,037 720,508 696,738 689,492 684,878 Commercial 2,472,771 2,413,345 2,168,451 2,117,306 2,100,338 Commercial Loans 359,807 358,053 366,893 385,816 383,724 Municipal Loans 416,986 427,225 441,168 441,512 435,211 Loans to Individuals 55,724 58,773 61,516 65,992 67,538 Total Loans $ 4,589,365 $ 4,577,368 $ 4,524,510 $ 4,420,633 $ 4,329,043 Summary of Changes in Allowances: Allowance for Loan Losses Balance at beginning of period $ 43,557 $ 42,674 $ 41,760 $ 36,303 $ 36,332 Loans charged-off (721 ) (634 ) (1,572 ) (1,262 ) (737 ) Recoveries of loans charged-off 444 347 284 378 430 Net loans (charged-off) recovered (277 ) (287 ) (1,288 ) (884 ) (307 ) Provision for (reversal of) loan losses (873 ) 1,170 2,202 6,341 278 Balance at end of period $ 42,407 $ 43,557 $ 42,674 $ 41,760 $ 36,303 Allowance for Off-Balance-Sheet Credit Exposures Balance at beginning of period $ 2,820 $ 3,932 $ 3,853 $ 3,207 $ 3,559 Provision for (reversal of) off-balance-sheet credit exposures 388 (1,112 ) 79 646 (352 ) Balance at end of period $ 3,208 $ 2,820 $ 3,932 $ 3,853 $ 3,207 Total Allowance for Credit Losses $ 45,615 $ 46,377 $ 46,606 $ 45,613 $ 39,510 Southside Bancshares, Inc.
Consolidated Financial Highlights (Unaudited)
(Dollars in thousands)Six Months Ended June 30, 2024 2023 Income Statement: Total interest income $ 206,944 $ 167,724 Total interest expense 99,988 60,455 Net interest income 106,956 107,269 Provision for (reversal of) credit losses (427 ) (114 ) Net interest income after provision for (reversal of) credit losses 107,383 107,383 Noninterest income Deposit services 12,142 12,713 Net gain (loss) on sale of securities available for sale (581 ) (5,601 ) Net gain on sale of equity securities — 5,058 Gain (loss) on sale of loans (216 ) 289 Trust fees 2,792 2,957 Bank owned life insurance 2,551 2,431 Brokerage services 2,095 1,601 Other 2,498 3,049 Total noninterest income 21,281 22,497 Noninterest expense Salaries and employee benefits 45,097 43,232 Net occupancy 7,112 7,424 Advertising, travel & entertainment 1,745 1,904 ATM expense 693 675 Professional fees 2,229 2,564 Software and data processing 5,716 4,319 Communications 859 675 FDIC insurance 1,920 1,764 Amortization of intangibles 644 920 Other 6,631 6,365 Total noninterest expense 72,646 69,842 Income before income tax expense 56,018 60,038 Income tax expense 9,834 9,111 Net income $ 46,184 $ 50,927 Common Share Data: Weighted-average basic shares outstanding 30,271 31,045 Weighted-average diluted shares outstanding 30,310 31,099 Common shares outstanding end of period 30,261 30,532 Earnings per common share Basic $ 1.52 $ 1.64 Diluted 1.52 1.64 Book value per common share 26.47 25.06 Tangible book value per common share 19.75 18.35 Cash dividends paid per common share 0.72 0.70 Selected Performance Ratios: Return on average assets 1.11 % 1.34 % Return on average shareholders’ equity 11.74 13.62 Return on average tangible common equity (1) 15.99 18.98 Average yield on earning assets (FTE) (1) 5.42 4.88 Average rate on interest bearing liabilities 3.27 2.30 Net interest margin (FTE) (1) 2.87 3.19 Net interest spread (FTE) (1) 2.15 2.58 Average earning assets to average interest bearing liabilities 128.16 135.85 Noninterest expense to average total assets 1.74 1.84 Efficiency ratio (FTE) (1) 54.11 51.02 (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, 2024 2023 Nonperforming Assets: $ 6,918 $ 3,059 Nonaccrual loans 6,110 3,017 Accruing loans past due more than 90 days — — Restructured loans 145 — Other real estate owned 648 — Repossessed assets 15 42 Asset Quality Ratios: Ratio of nonaccruing loans to: Total loans 0.13 % 0.07 % Ratio of nonperforming assets to: Total assets 0.08 0.04 Total loans 0.15 0.07 Total loans and OREO 0.15 0.07 Ratio of allowance for loan losses to: Nonaccruing loans 694.06 1,203.28 Nonperforming assets 613.00 1,186.76 Total loans 0.92 0.84 Net charge-offs (recoveries) to average loans outstanding 0.02 0.03 Capital Ratios: Shareholders’ equity to total assets 9.58 9.80 Common equity tier 1 capital 12.72 12.32 Tier 1 risk-based capital 13.76 13.37 Total risk-based capital 16.16 15.68 Tier 1 leverage capital 9.40 9.69 Period end tangible equity to period end tangible assets (1) 7.33 7.37 Average shareholders’ equity to average total assets 9.43 9.83 (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 Composition 2024 2023 Real Estate Loans: Construction $ 546,040 $ 657,354 1-4 Family Residential 738,037 684,878 Commercial 2,472,771 2,100,338 Commercial Loans 359,807 383,724 Municipal Loans 416,986 435,211 Loans to Individuals 55,724 67,538 Total Loans $ 4,589,365 $ 4,329,043 Summary of Changes in Allowances: Allowance for Loan Losses Balance at beginning of period $ 42,674 $ 36,515 Loans charged-off (1,355 ) (1,370 ) Recoveries of loans charged-off 791 792 Net loans (charged-off) recovered (564 ) (578 ) Provision for (reversal of) loan losses 297 366 Balance at end of period $ 42,407 $ 36,303 Allowance for Off-Balance-Sheet Credit Exposures Balance at beginning of period $ 3,932 $ 3,687 Provision for (reversal of) off-balance-sheet credit exposures (724 ) (480 ) Balance at end of period $ 3,208 $ 3,207 Total Allowance for Credit Losses $ 45,615 $ 39,510 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.
Southside Bancshares, Inc.
Average Balances and Average Yields and Rates (Annualized) (Unaudited)
(Dollars in thousands)Three Months Ended June 30, 2024 March 31, 2024 Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/Rate ASSETS Loans (1) $ 4,595,980 $ 70,293 6.15 % $ 4,559,602 $ 68,849 6.07 % Loans held for sale 1,489 24 6.48 % 8,834 18 0.82 % Securities: Taxable investment securities (2) 783,856 7,009 3.60 % 780,423 6,967 3.59 % Tax-exempt investment securities (2) 1,254,097 12,761 4.09 % 1,285,922 13,168 4.12 % Mortgage-backed and related securities (2) 830,504 11,084 5.37 % 764,713 10,119 5.32 % Total securities 2,868,457 30,854 4.33 % 2,831,058 30,254 4.30 % Federal Home Loan Bank stock, at cost, and equity investments 40,467 573 5.69 % 40,063 333 3.34 % Interest earning deposits 300,047 4,105 5.50 % 380,181 5,202 5.50 % Federal funds sold 75,479 1,021 5.44 % 62,599 838 5.38 % Total earning assets 7,881,919 106,870 5.45 % 7,882,337 105,494 5.38 % Cash and due from banks 110,102 114,379 Accrued interest and other assets 424,323 441,783 Less: Allowance for loan losses (43,738 ) (42,973 ) Total assets $ 8,372,606 $ 8,395,526 LIABILITIES AND SHAREHOLDERS’ EQUITY Savings accounts $ 604,753 1,454 0.97 % $ 604,529 1,424 0.95 % Certificates of deposit 1,020,099 11,630 4.59 % 941,947 10,341 4.42 % Interest bearing demand accounts 3,513,068 25,382 2.91 % 3,634,936 26,433 2.92 % Total interest bearing deposits 5,137,920 38,466 3.01 % 5,181,412 38,198 2.97 % Federal Home Loan Bank borrowings 606,851 6,455 4.28 % 607,033 5,950 3.94 % Subordinated notes, net of unamortized debt issuance costs 92,017 936 4.09 % 93,895 956 4.10 % Trust preferred subordinated debentures, net of unamortized debt issuance costs 60,271 1,171 7.81 % 60,270 1,175 7.84 % Repurchase agreements 88,007 955 4.36 % 92,177 967 4.22 % Other borrowings 143,169 2,595 7.29 % 137,287 2,164 6.34 % Total interest bearing liabilities 6,128,235 50,578 3.32 % 6,172,074 49,410 3.22 % Noninterest bearing deposits 1,346,274 1,338,384 Accrued expenses and other liabilities 101,399 100,014 Total liabilities 7,575,908 7,610,472 Shareholders’ equity 796,698 785,054 Total liabilities and shareholders’ equity $ 8,372,606 $ 8,395,526 Net interest income (FTE) $ 56,292 $ 56,084 Net interest margin (FTE) 2.87 % 2.86 % Net interest spread (FTE) 2.13 % 2.16 % (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, 2024 and March 31, 2024, loans totaling $6.1 million and $7.7 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, 2023 September 30, 2023 Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/Rate ASSETS Loans (1) $ 4,473,618 $ 67,886 6.02 % $ 4,396,184 $ 64,758 5.84 % Loans held for sale 1,858 27 5.77 % 1,537 26 6.71 % Securities: Taxable investment securities (2) 852,023 7,970 3.71 % 912,789 8,731 3.79 % Tax-exempt investment securities (2) 1,456,187 15,688 4.27 % 1,510,044 16,232 4.26 % Mortgage-backed and related securities (2) 581,548 6,865 4.68 % 442,908 4,426 3.96 % Total securities 2,889,758 30,523 4.19 % 2,865,741 29,389 4.07 % Federal Home Loan Bank stock, at cost, and equity investments 24,674 296 4.76 % 22,363 265 4.70 % Interest earning deposits 150,763 2,054 5.41 % 37,891 535 5.60 % Federal funds sold 93,149 1,286 5.48 % 94,441 1,253 5.26 % Total earning assets 7,633,820 102,072 5.30 % 7,418,157 96,226 5.15 % Cash and due from banks 110,380 106,348 Accrued interest and other assets 374,120 400,850 Less: Allowance for loan losses (41,822 ) (36,493 ) Total assets $ 8,076,498 $ 7,888,862 LIABILITIES AND SHAREHOLDERS’ EQUITY Savings accounts $ 610,453 1,432 0.93 % $ 622,246 1,458 0.93 % Certificates of deposit 910,759 9,691 4.22 % 949,894 9,443 3.94 % Interest bearing demand accounts 3,469,120 24,498 2.80 % 3,189,048 20,050 2.49 % Total interest bearing deposits 4,990,332 35,621 2.83 % 4,761,188 30,951 2.58 % Federal Home Loan Bank borrowings 262,709 1,430 2.16 % 230,184 1,174 2.02 % Subordinated notes, net of unamortized debt issuance costs 93,859 965 4.08 % 93,817 962 4.07 % Trust preferred subordinated debentures, net of unamortized debt issuance costs 60,269 1,195 7.87 % 60,268 1,178 7.75 % Repurchase agreements 96,622 1,008 4.14 % 104,070 1,048 4.00 % Other borrowings 294,683 4,235 5.70 % 317,913 4,492 5.61 % Total interest bearing liabilities 5,798,474 44,454 3.04 % 5,567,440 39,805 2.84 % Noninterest bearing deposits 1,424,961 1,441,738 Accrued expenses and other liabilities 115,388 109,490 Total liabilities 7,338,823 7,118,668 Shareholders’ equity 737,675 770,194 Total liabilities and shareholders’ equity $ 8,076,498 $ 7,888,862 Net interest income (FTE) $ 57,618 $ 56,421 Net interest margin (FTE) 2.99 % 3.02 % Net interest spread (FTE) 2.26 % 2.31 % (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, 2023 and September 30, 2023, loans totaling $3.9 million and $4.3 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 June 30, 2023 Average Balance Interest Average Yield/Rate ASSETS Loans (1) $ 4,197,130 $ 59,334 5.67 % Loans held for sale 1,664 23 5.54 % Securities: Taxable investment securities (2) 925,445 8,773 3.80 % Tax-exempt investment securities (2) 1,562,232 16,182 4.15 % Mortgage-backed and related securities (2) 401,427 3,830 3.83 % Total securities 2,889,104 28,785 4.00 % Federal Home Loan Bank stock, at cost, and equity investments 21,480 379 7.08 % Interest earning deposits 56,604 742 5.26 % Federal funds sold 59,186 748 5.07 % Total earning assets 7,225,168 90,011 5.00 % Cash and due from banks 103,559 Accrued interest and other assets 419,420 Less: Allowance for loan losses (36,512 ) Total assets $ 7,711,635 LIABILITIES AND SHAREHOLDERS’ EQUITY Savings accounts $ 648,560 1,430 0.88 % Certificates of deposit 797,992 6,365 3.20 % Interest bearing demand accounts 2,841,818 13,884 1.96 % Total interest bearing deposits 4,288,370 21,679 2.03 % Federal Home Loan Bank borrowings 211,309 1,032 1.96 % Subordinated notes, net of unamortized debt issuance costs 97,804 994 4.08 % Trust preferred subordinated debentures, net of unamortized debt issuance costs 60,266 1,100 7.32 % Repurchase agreements 97,915 883 3.62 % Other borrowings 631,447 7,272 4.62 % Total interest bearing liabilities 5,387,111 32,960 2.45 % Noninterest bearing deposits 1,490,445 Accrued expenses and other liabilities 84,252 Total liabilities 6,961,808 Shareholders’ equity 749,827 Total liabilities and shareholders’ equity $ 7,711,635 Net interest income (FTE) $ 57,051 Net interest margin (FTE) 3.17 % Net interest spread (FTE) 2.55 % (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, 2023, loans totaling $3.0 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, 2024 June 30, 2023 Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/Rate ASSETS Loans (1) $ 4,577,791 $ 139,142 6.11 % $ 4,163,141 $ 114,787 5.56 % Loans held for sale 5,162 42 1.64 % 1,663 43 5.21 % Securities: Taxable investment securities (2) 782,139 13,976 3.59 % 808,803 14,485 3.61 % Tax-exempt investment securities (2) 1,270,010 25,929 4.11 % 1,627,105 32,648 4.05 % Mortgage-backed and related securities (2) 797,608 21,203 5.35 % 428,469 8,159 3.84 % Total securities 2,849,757 61,108 4.31 % 2,864,377 55,292 3.89 % Federal Home Loan Bank stock, at cost, and equity investments 40,265 906 4.52 % 26,448 624 4.76 % Interest earning deposits 340,114 9,307 5.50 % 72,177 1,775 4.96 % Federal funds sold 69,039 1,859 5.41 % 65,871 1,585 4.85 % Total earning assets 7,882,128 212,364 5.42 % 7,193,677 174,106 4.88 % Cash and due from banks 112,241 105,650 Accrued interest and other assets 432,904 408,908 Less: Allowance for loan losses (43,356 ) (36,601 ) Total assets $ 8,383,917 $ 7,671,634 LIABILITIES AND SHAREHOLDERS’ EQUITY Savings accounts $ 604,641 2,878 0.96 % $ 657,192 2,743 0.84 % Certificates of deposit 981,023 21,971 4.50 % 792,967 11,772 2.99 % Interest bearing demand accounts 3,574,001 51,815 2.92 % 2,912,127 27,070 1.87 % Total interest bearing deposits 5,159,665 76,664 2.99 % 4,362,286 41,585 1.92 % Federal Home Loan Bank borrowings 606,942 12,405 4.11 % 307,221 4,173 2.74 % Subordinated notes, net of unamortized debt issuance costs 92,956 1,892 4.09 % 98,246 1,993 4.09 % Trust preferred subordinated debentures, net of unamortized debt issuance costs 60,271 2,346 7.83 % 60,266 2,131 7.13 % Repurchase agreements 90,092 1,922 4.29 % 81,765 1,375 3.39 % Other borrowings 140,228 4,759 6.82 % 385,440 9,198 4.81 % Total interest bearing liabilities 6,150,154 99,988 3.27 % 5,295,224 60,455 2.30 % Noninterest bearing deposits 1,342,329 1,539,313 Accrued expenses and other liabilities 100,558 82,833 Total liabilities 7,593,041 6,917,370 Shareholders’ equity 790,876 754,264 Total liabilities and shareholders’ equity $ 8,383,917 $ 7,671,634 Net interest income (FTE) $ 112,376 $ 113,651 Net interest margin (FTE) 2.87 % 3.19 % Net interest spread (FTE) 2.15 % 2.58 % (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, 2024 and 2023, loans totaling $6.1 million and $3.0 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.
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.
Southside Bancshares, Inc.
Non-GAAP Reconciliation (Unaudited)
(Dollars and shares in thousands, except per share data)Three Months Ended Six Months Ended 2024 2023 2024 2023 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 $ 24,673 $ 21,511 $ 17,316 $ 18,449 $ 24,893 $ 46,184 $ 50,927 After-tax amortization expense 243 266 292 322 349 509 727 Adjusted net income available to common shareholders $ 24,916 $ 21,777 $ 17,608 $ 18,771 $ 25,242 $ 46,693 $ 51,654 Average shareholders' equity $ 796,698 $ 785,054 $ 737,675 $ 770,194 $ 749,827 $ 790,876 $ 754,264 Less: Average intangibles for the period (203,581 ) (203,910 ) (204,267 ) (204,658 ) (205,086 ) (203,745 ) (205,319 ) Average tangible shareholders' equity $ 593,117 $ 581,144 $ 533,408 $ 565,536 $ 544,741 $ 587,131 $ 548,945 Return on average tangible common equity 16.90 % 15.07 % 13.10 % 13.17 % 18.59 % 15.99 % 18.98 % Reconciliation of book value per share to tangible book value per share: Common equity at end of period $ 800,970 $ 787,922 $ 773,288 $ 728,595 $ 765,161 $ 800,970 $ 765,161 Less: Intangible assets at end of period (203,397 ) (203,704 ) (204,041 ) (204,411 ) (204,818 ) (203,397 ) (204,818 ) Tangible common shareholders' equity at end of period $ 597,573 $ 584,218 $ 569,247 $ 524,184 $ 560,343 $ 597,573 $ 560,343 Total assets at end of period $ 8,357,702 $ 8,353,863 $ 8,284,914 $ 7,972,468 $ 7,807,252 $ 8,357,702 $ 7,807,252 Less: Intangible assets at end of period (203,397 ) (203,704 ) (204,041 ) (204,411 ) (204,818 ) (203,397 ) (204,818 ) Tangible assets at end of period $ 8,154,305 $ 8,150,159 $ 8,080,873 $ 7,768,057 $ 7,602,434 $ 8,154,305 $ 7,602,434 Period end tangible equity to period end tangible assets 7.33 % 7.17 % 7.04 % 6.75 % 7.37 % 7.33 % 7.37 % Common shares outstanding end of period 30,261 30,284 30,249 30,338 30,532 30,261 30,532 Tangible book value per common share $ 19.75 $ 19.29 $ 18.82 $ 17.28 $ 18.35 $ 19.75 $ 18.35 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) $ 53,608 $ 53,348 $ 54,485 $ 53,273 $ 53,916 $ 106,956 $ 107,269 Tax-equivalent adjustments: Loans 633 656 680 674 673 1,289 1,370 Tax-exempt investment securities 2,051 2,080 2,453 2,474 2,462 4,131 5,012 Net interest income (FTE) (1) 56,292 56,084 57,618 56,421 57,051 112,376 113,651 Noninterest income 11,557 9,724 2,501 10,836 10,464 21,281 22,497 Nonrecurring income (2) (576 ) 18 8,376 (11 ) 226 (558 ) (995 ) Total revenue $ 67,273 $ 65,826 $ 68,495 $ 67,246 $ 67,741 $ 133,099 $ 135,153 Noninterest expense $ 35,765 $ 36,881 $ 35,183 $ 35,553 $ 34,993 $ 72,646 $ 69,842 Pre-tax amortization expense (307 ) (337 ) (370 ) (407 ) (442 ) (644 ) (920 ) Nonrecurring expense (3) 2 17 22 17 36 19 39 Adjusted noninterest expense $ 35,460 $ 36,561 $ 34,835 $ 35,163 $ 34,587 $ 72,021 $ 68,961 Efficiency ratio 54.90 % 57.95 % 53.30 % 54.86 % 53.54 % 56.41 % 53.55 % Efficiency ratio (FTE) (1) 52.71 % 55.54 % 50.86 % 52.29 % 51.06 % 54.11 % 51.02 % Average earning assets $ 7,881,919 $ 7,882,337 $ 7,633,820 $ 7,418,157 $ 7,225,168 $ 7,882,128 $ 7,193,677 Net interest margin 2.74 % 2.72 % 2.83 % 2.85 % 2.99 % 2.73 % 3.01 % Net interest margin (FTE) (1) 2.87 % 2.86 % 2.99 % 3.02 % 3.17 % 2.87 % 3.19 % Net interest spread 2.00 % 2.02 % 2.10 % 2.14 % 2.37 % 2.01 % 2.40 % Net interest spread (FTE) (1) 2.13 % 2.16 % 2.26 % 2.31 % 2.55 % 2.15 % 2.58 % (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, net gain on sale of equity securities, BOLI income related to death benefits realized and other investment income or loss in the periods where applicable.
(3) These adjustments may include foreclosure expenses and branch closure expenses, in the periods where applicable.
