Southside Bancshares : Annual Report (SBSI Annual Reportv3)
SBSI
ANNUAL REPORT
SOUTHSIDE BANCSHARES, INC.
2024
ANNUAL REPORT
Table of Contents
3 A LETTER FROM OUR CEO
6 2024 CONNECTIONS
7 FINANCIAL HIGHLIGHTS
8 SOUTHSIDE BANK LOCATION MAP
10 BOARD OF DIRECTORS
12 OFFICERS AND DIRECTORS
16 FORM 10-K
ANNUAL REPORT 2024 | SOUTHSIDE BANCSHARES, INC.
A Letter From Our CEO
LEE R. GIBSON
Dear Fellow Shareholders, I am proud to report on a successful year in our 2024 Annual Report. As I reflect on the past 12 months, I would like to give credit to our outstanding team members, whose contributions made the results below possible. We strongly believe that our workplace culture is the cornerstone of our success. This strong culture fosters collaboration, innovation, and, most importantly, a sense of belonging.
Our team members are not just employees; they are the heart and soul of our institution.
2024 FINANCIAL HIGHLIGHTS INCLUDED:
The inverted yield curve along with increasing regulatory burden continued to provide headwinds for the banking industry during most of 2024. Since the Federal Reserve's third federal funds rate cut in December the yield curve is significantly less inverted and at times has been flat to slightly positive. With the new presidential administration, we are seeing a positive shift in attitude towards the banking industry regulatory burden that is resulting in constructive changes in this area.
OUR GROWTH AND EXPANSION
•
An increase in net income of 2.1%, to
In early 2024, we opened a loan production
$88.5 million;
office (LPO) in Dallas' Preston Center to
further expand our growing Dallas customer
•
Earnings per common share increasing
base. In addition, we opened an LPO in The
3.2%, to $2.91;
Woodlands to further facilitate the growth we
are experiencing in the greater Houston area.
•
A return on average tangible common
We are confident in the long-term growth
equity of 14.92%;
potential as both locations have been staffed
with experienced and well-connected bankers.
•
Continued strong credit metrics and
capital levels; and
During 2025, we will complete construction
of a new, modern branch in Cleveland, Texas,
•
An increase in the cash dividend per
replacing the existing facility. Additionally, we will
common share.
construct a new branch on the west side of Tyler
Keith Donahoe
in a rapidly expanding area. In Granbury, we will replace our current location with a newly constructed branch providing better visibility and customer convenience. Over the next several years, we expect a portion of our organic growth will be achieved by continuing to expand our branch footprint in high growth areas of Texas. Additionally, we anticipate merger and acquisition activity in Texas will increase, which may lead to additional growth opportunities for Southside.
President Southside Bank and Southside Bancshares, Inc.
OUR EXPERIENCED LEADERSHIP
In May 2024, the Southside Board appointed Keith Donahoe to serve as the President of Southside Bank and Southside Bancshares, Inc. Keith brings an extensive wealth of knowledge, experience, and expertise to this position, having demonstrated exceptional leadership and dedication in his role as Regional President of Central Texas over the prior three years, and serving in leadership roles at a large Texas bank for two and-a-half decades prior to joining Southside. His deep understanding of our industry, coupled with his focus on building new relationships, made him the ideal candidate to fill this important role. Keith offices at our headquarters in Tyler, working closely with me and the senior management team developing and implementing strategic initiatives designed to grow and enhance the Southside franchise.
OUR RELATIONSHIP-BASED CULTURE
Southside was once again recognized by American Banker as a "Best Bank to Work For in 2024." We are proud of this recognition, but more importantly, we are proud of our team members for supporting their fellow colleagues and creating a work environment worthy of this award. By putting them first, we empower them to build lasting relationships with our customers and the communities we serve. These relationships are essential to our mission, as they allow us to understand our customers' needs better and tailor our services accordingly.
Our intentional focus on relationship building is woven into the fabric of our daily operations. Throughout 2024, we implemented several initiatives that emphasize the importance of personal connections, encouraging our team members to engage genuinely with customers. Whether it's through community outreach, networking, mentoring, financial
Whether it's through community outreach, networking, mentoring, financial empowerment workshops, volunteer efforts, or simply being present in the communities we serve, our team members are committed to fostering trust and loyalty.
empowerment workshops, volunteer efforts, or simply being present in the communities we serve, our team members are committed to fostering trust and loyalty. We recognize that when our team members feel valued and connected, they are better equipped to create positive experiences for those we serve.
OUR TECHNOLOGY
Looking ahead, we continue to innovate our product offerings while embracing digital banking solutions that meet the evolving needs of our customers. Our investment in technology over the years has allowed us to enhance efficiency and accessibility, ensuring that we remain competitive in an increasingly digital world.
OUR BOARD MEMBERS
At our shareholders meeting on May 14, three of our directors, Tony Morgan, John Sammons, and Don Thedford will be retiring. In addition, Trey Henderson is not standing for re-election. These dear friends and valued colleagues have demonstrated a deep appreciation and devotion for the work we do together as directors. Their integrity, hard work, and exceptional judgment have contributed to the success and future of Southside. We thank them for their service and wish them all the best in their future endeavors.
IN CONCLUSION
As we move forward, I am optimistic about the future of Southside and our strong position within the growing Texas economy. We will continue to prioritize our team members, cultivating a culture that encourages growth, collaboration, respect, and excellence, while delivering the best results for our shareholders, customers, and communities.
Thank you for your continued support and trust in Southside.
LEE R. GIBSON
Chief Executive Officer
2024
Connecting to our customers, our communities, and our culture.
Financial Highlights
Dollars in thousands except per share amounts
2024
2023
NET INCOME
$88,494
$86,692
PER SHARE DATA
Earnings per common share - basic
$ 2.92
$ 2.82
Earnings per common share - diluted
$ 2.91
$ 2.82
Cash dividends paid per common share
$ 1.44
$ 1.42
Book value per common share
$ 26.73
$ 25.56
PERFORMANCE RATIOS
Return on average assets
1.06 %
1.11 %
Return on average shareholders' equity
11.03 %
11.50 %
Dividend payout ratio - basic
49.32 %
50.35 %
Dividend payout ratio - diluted
49.48 %
50.35 %
Net interest margin
2.74 %
2.92 %
Net interest margin (fully taxable equivalent)*
2.88 %
3.09 %
BALANCE SHEET DATA
Loans
$ 4,661,597
$ 4,524,510
Securities
$ 2,813,128
$ 2,603,347
Total assets
$ 8,517,448
$ 8,284,914
Noninterest bearing deposits
$ 1,357,152
$ 1,390,407
Interest bearing deposits
$ 5,297,096
$ 5,159,274
Total deposits
$ 6,654,248
$ 6,549,681
Other borrowings
$ 808,352
$ 722,468
Long-term debt
$ 152,316
$ 154,147
Total shareholders' equity
$ 811,942
$ 773,288
*A non-GAAP measure. See "Non-GAAP Financial Measures" for more
information and a reconciliation to GAAP in our Form 10-K.
ON THE MAP
Our Home is Texas
Southside currently operates 53 branches, two loan production offices, and a network of 72 ATMs/ITMs throughout East Texas, Southeast Texas, and the greater Dallas/Fort Worth, Austin, and Houston areas. Additionally, Southside is affiliated with over 60,000 ATMs across the nation. Serving customers since 1960, Southside Bank is a community-focused financial institution that offers a full range of financial products and services to individuals and businesses.
ARKANSAS
Lufkin Houston
10
Disclaimer
Southside Bancshares Inc. published this content on March 31, 2025, and is solely responsible for the information contained herein. Distributed via , unedited and unaltered, on March 31, 2025 at 14:43 UTC.