Southside Bancshares, Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2016
January 27, 2017 at 04:43 pm IST
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Southside Bancshares, Inc. announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2016. For the quarter, the company reported net income of $11.6 million, a decrease of $0.1 million, or 1.0%, compared to $11.7 million for the same period in 2015. The decrease was primarily the result of a $3.8 million increase in interest expense, a $2.1 million decrease in noninterest income, a $0.4 million increase in income tax expense, and a $0.1 million increase in provision for loan losses, partially offset by a $3.7 million increase in interest income and a $2.6 million decrease in noninterest expense. Diluted earnings per common share were $0.43 and $0.44 for the three months ended December 31, 2016 and 2015, respectively, a decrease of $0.01, or 2.3%. The return on average shareholders' equity for the year ended December 31, 2016 was 10.54%, compared to 10.04% for the same period in 2015. Net interest income decreased $0.1 million, or 0.2%, to $34.6 million for the three months ended December 31, 2016, compared to $34.7 million for the same period in 2015. The decrease in net interest income was the result of the increase in interest expense of $3.8 million associated with short- and long-term obligations and deposit expenses, which were partially offset by an increase in interest income of $3.7 million, which was primarily a result of the increase in the loan and securities portfolio, compared to the same period in 2015. Net interest income increased $4.9 million, or 3.6%, to $139.6 million for the year ended December 31, 2016, compared to $134.7 million for the same period in 2015. The increase in net interest income was due to the increase in interest income of $14.4 million, or 9.3%, which was primarily a result of the increase in the loan portfolio, compared to the same period in 2015, and a $1.3 million recovery of interest income on the payoff of a long-time nonaccrual loan during the first quarter of 2016. Return on average shareholders' equity was 9.56% against 10.35% a year ago. Income before income tax expense was $13,412,000 against $13,130,000 a year ago.
For the year, net income increased $5.4 million, or 12.2%, to $49.3 million, compared to $44.0 million for the same period in 2015. The increase was primarily the result of a $14.4 million increase in interest income, a $3.4 million decrease in noninterest expense, and a $1.5 million increase in noninterest income, partially offset by a $9.5 million increase in interest expense, a $3.0 million increase in income tax expense and a $1.4 million increase in provision for loan losses. Diluted earnings per common share increased $0.21, or 12.7%, to $1.86, compared to $1.65 for the same period in 2015. The return on average assets was 0.94% compared to 0.90% for the same period in 2015. A 12.2% increase in net income for the year ended December 31, 2016 when compared to the prior year, resulted in record net income of $49.3 million, which highlights financial performance for the year. Return on average shareholders' equity was 10.54% against 10.04% a year ago. Book value per common share as on December 31, 2016 was $18.16 against $16.66 as on December 31, 2015. Income before income tax expense was $59,674,000 against $51,276,000 a year ago.
Southside Bancshares, Inc. is a bank holding company for Southside Bank. The Company operates through approximately 55 branches, 13 of which are located in grocery stores, in addition to wealth management and trust services, and/or loan production, brokerage or other financial services offices. It is a community-focused financial institution that offers a full range of financial services to individuals, businesses, municipal entities and nonprofit organizations in the communities that it serves. Its consumer loan services include 1-4 family residential loans, home equity loans, home improvement loans, automobile loans and other consumer related loans. Its commercial loan services include commercial real estate loans and municipal loans. The Company's trust and wealth management services include investment management, administration of irrevocable, revocable and testamentary trusts, and custodian services, primarily for individuals and, to a lesser extent, partnerships and corporations.