Southside Bancshares (SBSI) Misses Q3 EPS by 3c, Revenues Miss

Southside Bancshares (NASDAQ: SBSI) reported Q3 EPS of $0.58, $0.03 worse than the analyst estimate of $0.61. Revenue for the quarter came in at $55.56 million versus the consensus estimate of $57.11 million.

“Highlights for the quarter included record third quarter net income and an efficiency ratio below 50% for a second consecutive quarter,” stated Lee R. Gibson, President and Chief Executive Officer of Southside. “We reported net income of $20.3 million, an efficiency ratio of 48.91% and recorded a slight increase in total loans during the third quarter. We also recorded a $741,000 net loss on the sale of available for sale securities and acquisition costs related to the Diboll transaction of $437,000. These expenses were partially offset by a discrete tax benefit of approximately $800,000 recorded during the third quarter associated with the revision of our deferred taxes as a result of the Tax Cuts and Jobs Act passed in December 2017. At this time, we expect fourth quarter acquisition expense to be minimal.”

“During the third quarter we experienced a slight increase in our loans of $3.6 million. For the nine months ended September 30, 2018, loans decreased $19.8 million, which in part, was responsible for the five basis point decrease in our net interest margin on a linked quarter basis. While we believe our loan pipeline remains solid for the remainder of the year with a number of loans expected to fund, we also expect a number of payoffs in the fourth quarter, which may offset most if not all of the loans funded. Economic conditions in our East Texas markets remain solid and the Austin and DFW markets continue to experience robust economies, driven by company relocations and overall population growth.”

“On October 25, 2018 the Company's Board of Directors approved a Stock Repurchase Plan. The Board authorized the repurchase, from time to time, of up to 1,500,000 shares of common stock in open market purchases and privately negotiated transactions at prevailing market prices. We believe repurchasing shares in a company we know quite well, Southside Bancshares, Inc., at current market prices, is prudent. The Company has no obligation to repurchase any shares under the Stock Repurchase Plan and may suspend or discontinue it at any time.”

For earnings history and earnings-related data on Southside Bancshares (SBSI) click here.

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