The following is a summary of the Southside Bancshares, Inc. (SBSI) Q1 2024 Earnings Call Transcript:
Financial Performance:
Southside Bancshares reported a Q1 net income of $21.5 million, with earnings per share of $0.71 and a return on average tangible common equity of 15.07%.
The company saw loan growth of $52.9 million (1.2% quarter on quarter, and 4.7% annualized), primarily due to increases in commercial real estate loans.
Non-performing assets increased to $8 million, mainly due to two larger relationships.
There was a slight decline in both net interest margin and interest spread.
Non-interest income in Q1, excluding a net loss on the sales of AFS securities, decreased by 24.4%.
Non-interest expense increased by $1.7 million.
Business Progress:
Southside Bancshares is implementing initiatives related to their new five-year strategic plan, which include retirements, workforce reductions and anticipated savings of around $3.5 million per annum in personnel costs, with full impact expected by 2025.
The company aims to achieve non-interest income of around $10-$10.5 million per quarter and is exploring methods to increase this figure.
As part of its five-year strategic strategy, Southside Bancshares is considering expanding into new markets and prioritising IT-related issues and software.
More details: Southside Bancshares IR
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