Southside Bancshares reports Q4 EPS 57c, consensus 66c

Reports Q4 revenue $68.5M, consensus $64.82M. Reports Q4 tangible book value per share $18.82. Reports Q4 CET1 capital ratio 12.28%. Reports Q4 net charge-offs .11%. “During the latter part of the fourth quarter, we sold approximately $388 million of lower-yielding available for sale securities and recorded a $10.4 million net loss,” stated Lee R. Gibson, president and CEO of Southside. “The proceeds from these sales were largely reinvested in premium U.S. Agency mortgage-backed pools and to a lesser extent in loans. This reinvestment is estimated to increase net interest income and provide for a two-year payback of the loss incurred. Linked quarter, net interest income increased $1.2 million, while the net interest margin decreased slightly three basis points. Linked quarter, loans increased $103.9 million, or 2.3% and deposits increased $200.1 million, or 3.2%. The increase in deposits was primarily due to an increase in public funds.”