On July 25, 2024, Southside Bancshares Inc (SBSI, Financial) released its 8-K filing announcing financial results for the second quarter ended June 30, 2024. Southside Bancshares Inc is a financial institution offering a range of services including personal and business banking, mortgage, equity lending, wealth management, and brokerage.
Quarterly Performance Overview
Southside Bancshares Inc reported a net income of $24.7 million for Q2 2024, a slight decrease of 0.9% compared to $24.9 million in Q2 2023. Earnings per diluted common share remained stable at $0.81, surpassing the analyst estimate of $0.64. The company achieved an annualized return on average assets of 1.19% and an annualized return on average tangible common equity of 16.90%.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Income | $24.7 million | $24.9 million |
| Earnings Per Share | $0.81 | $0.81 |
| Return on Average Assets | 1.19% | 1.29% |
| Return on Average Tangible Common Equity | 16.90% | 18.59% |
| Net Interest Margin (FTE) | 2.87% | 3.17% |
Income Statement Highlights
Net interest income for Q2 2024 was $53.6 million, a slight decrease of 0.6% from $53.9 million in Q2 2023. Noninterest income increased by 10.4% to $11.6 million, driven by a decrease in net loss on sale of securities and an increase in bank-owned life insurance income. Noninterest expense rose by 2.2% to $35.8 million, primarily due to higher salaries and employee benefits.
Balance Sheet and Asset Quality
As of June 30, 2024, Southside Bancshares Inc had total assets of $8.36 billion, up from $7.81 billion a year earlier. Loans increased by 6.0% to $4.59 billion, while deposits grew by 6.2% to $6.50 billion. Nonperforming assets remained low at 0.08% of total assets, although they increased from $3.1 million in Q2 2023 to $6.9 million in Q2 2024.
Commentary and Analysis
“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, and continued strong asset quality,” stated Lee R. Gibson, Chief Executive Officer of Southside.
The company's performance in Q2 2024 demonstrates resilience despite a challenging economic environment. The stable earnings per share and strong asset quality are positive indicators for value investors. However, the slight decline in net income and return on average assets compared to the previous year may warrant close monitoring.
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Southside Bancshares Inc for further details.
