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Mar 31, 2021
Southside Bancshares Q1 2021 Earnings Report
Reported record net income for the first quarter, driven by a reversal of provision for credit losses and strong asset quality metrics.
Key Takeaways
Southside Bancshares reported a record first quarter net income of $34.1 million, a significant increase compared to the same period in 2020. This was primarily due to a decrease in the provision for credit losses and overall improvement in economic conditions.
Record first quarter net income of $34.1 million, up 762.4% year-over-year.
Annualized return on average assets was 1.99%.
Annualized return on average tangible common equity was 21.22%.
Nonperforming assets decreased to 0.22% of total assets.
Southside Bancshares
Southside Bancshares
Forward Guidance
The company is encouraged about potential future loan growth as its pipeline continues to remain healthy and economic conditions in their market areas continue to improve.
Positive Outlook
- Active loan pipeline with several loans closed and funded during March.
- Continued participation in the second round of the PPP, originating approximately 1,000 new loans totaling $105 million as of April 21.
- Technology facilities operated uninterrupted during a major power crisis in Texas.
- Economic conditions in market areas continue to improve, bolstered by company relocations and population growth.
- Hired additional revenue producers in Austin and the DFW area to generate additional loan growth.
Challenges Ahead
- Texas suffered a major power crisis due to Winter Storm Uri, causing shortages of water, food, and heat.
- Large accumulations of snow and ice created extremely hazardous driving conditions.
- Decrease in net gain on sale of securities available for sale.
- Linked quarter, net interest income decreased $2.4 million, or 4.9%.
- The decrease in interest income is due to the decrease in the average balance of interest earning assets and the average yield, partially offset by a decline in interest expense driven by the decrease in the average balance of interest bearing liabilities and the average interest rate.