Southside Bancshares reports Q1 EPS 71c, consensus 68c

Reports Q1 revenue $65.83M, consensus $67.72M. Reports Q1 CET1 capital ratio 12.43%. Reports Q1 tangible book value per share $19.29. Reports Q1 net charge-offs .03%. “Linked quarter, loans increased an annualized 4.7%, while our deposits remained flat.” stated Lee Gibson, president and CEO of Southside. “Net interest income decreased $1.1 million, and the net interest margin decreased 13 basis points. The maturity of three low interest rate cash flow swaps along with ongoing higher funding costs were the primary reasons for the decrease. There are no additional swaps maturing this year. During the quarter, we began evaluating cost containment opportunities. Through retirement, a reduction in workforce, and attrition during 2024, we currently anticipate annualized cost savings of approximately $3.5 million, 80% of which should be reflected beginning in the third quarter this year and 100% in 2025. We expensed approximately $618,000 during the quarter associated with these cost reductions. In the coming months we will continue to evaluate further cost containment and revenue generating opportunities.”