Southside Bancshares (SBSI) Misses Q4 EPS by 6c

Southside Bancshares (NASDAQ: SBSI) reported Q4 EPS of $0.51, $0.06 worse than the analyst estimate of $0.57.

• Linked quarter loans increased $68.3 million, or 2.0%, to $3.57 billion from $3.50 billion
• Linked quarter nonperforming assets as a percent of total assets decreased from 0.45% to 0.26%
• Fourth quarter net income was $17.3 million and earnings per diluted common share were $0.51
• Fourth quarter annualized return on average assets of 1.03%

“I am pleased to report Southside enjoyed a solid year in 2019, as earnings per share increased 4.3% to $2.20, loan growth of 7.7%, or $255.4 million, exceeding our original projections, and nonaccrual loans decreased 86.1%, or $30.8 million,” stated Lee R. Gibson, President and Chief Executive Officer of Southside. “At December 31, 2019, our nonperforming assets to total assets ratio decreased to 0.26%.”

“For the quarter ended December 31, 2019, provision for loan losses increased $1.5 million on a linked quarter basis largely due to a partial charge-off of a previously reported nonaccrual loan that paid off in the fourth quarter. Linked quarter, our net interest spread and margin declined two and five basis points, respectively, primarily due to securities increasing more than loans and representing a larger percentage of average earning assets when compared to the third quarter.”

“In November we opened our 60th branch location in Kingwood, just north of Houston. We have loaned into the Houston market for several years and have recently hired a commercial lender designated to this market. In addition, we anticipate filing an application to open a loan production office within the greater Houston area, which is subject to regulatory approval.”

“The Texas economy remains strong as company relocations and expansions continue to drive both job and population growth.”

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

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