Southside Bancshares – SBSI – Pleased to report second quarter financial results

Southside Bancshares, Inc. (Nasdaq:SBSI) reported its financial results for the three and six months ended June 30, 2012.

Southside reported net income of $7.7 million for the three months ended June 30, 2012, a decrease of $4.9 million, or 38.8%, when compared to the same period in 2011. Fair value gains-securities decreased $2.5 million as there were no fair value gains or losses for the three months ended June 30, 2012 compared to $2.5 million for the same period in 2011. In addition net interest income decreased $2.0 million and we recorded impairment charges on our Federal Home Loan Bank (“FHLB”) advance option fees of $1.4 million. Net income for the six months ended June 30, 2012 decreased $3.1 million, or 14.9%, to $17.9 million when compared to $21.0 million for the same period in 2011.

SBSI Diluted earnings per common share were $0.45 for the three months ended June 30, 2012 when compared to $0.73 for the same period in 2011, a decrease of $0.28, or 38.4%. For the six months ended June 30, 2012, diluted earnings per common share decreased $0.19, or 15.6% to $1.03 when compared to $1.22 for the same period in 2011.

The return on average shareholders’ equity for the six months ended June 30, 2012, was 13.51%, compared to 18.82% for the same period in 2011. The annual return on average assets was 1.09% for the six months ended June 30, 2012 compared to 1.39% for the same period in 2011.

“We are pleased to report our second quarter financial results,” stated Sam Dawson, President and Chief Executive Officer of Southside Bancshares, Inc. “During the second quarter, we continued to experience increased levels of lending activity, resulting in a $42.3 million increase in loans. Given that global economic growth seems to have entered yet another stagnant phase, we are especially grateful to have experienced a meaningful increase in quality loan demand in the areas we serve. In fact, over the first half of 2012, we have reported a 17.6% annualized increase in loans totaling $96.0 million. We are proud to partner with the communities we serve because these communities play an important role in fostering economic growth. Given the current interest rate environment, we believe our loan growth will play an important and positive role in managing our net interest margin.”

About Southside Bancshares, Inc. – SBSI

Southside Bancshares, Inc. (SBSI ) is a bank holding company with approximately $3.40 billion in assets that owns 100% of Southside Bank. SBSI currently has 48 banking centers in Texas and operates a network of 50 ATMs.

More Posts by this author

• CommVault – CVLT – Expands Fujitsu Partnership
• American Financial Group – AFG – Pleased with strong P&C underwriting results and record operating earnings in annuity and supplemental businesses
• Allot Communications – ALLT – Reports 43% Revenue Rise for Second Quarter of 2012
• U.S. Stocks Inch Higher Helped By Unexpectedly Stronger Economic Indicators
• Impax Laboratories – IPXL – Positive second quarter results
• Coach – COH – Strong double-digit sales and earnings gains
• The Goodyear Tire & Rubber Company – GT – Business is on track to achieve its 2013 target, one year ahead of plan

Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.