Overview

• Texas bank's Q4 net income decreased 3.7% yr/yr due to AFS securities sale loss

• Q4 EPS decreased to $0.70 from $0.71 yr/yr

• Company to redeem $93 mln subordinated notes, improving future net interest margin

Outlook

• Southside expects redemption of subordinated notes to positively impact Q1 net interest margin

Result Drivers

• SECURITIES RESTRUCTURING - Southside sold $82 mln of lower-yielding municipal securities, incurring a $7.3 mln loss, and reinvested in U.S. Agency mortgage-backed securities

• NET INTEREST MARGIN - Net interest margin increased due to lower funding costs and a shift in asset mix

• LOAN GROWTH - Total loans increased $52.7 mln, driven by construction and commercial real estate loans

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Southside Bancshares Inc is $32.00, about 0.9% below its January 28 closing price of $32.28

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nGNX8ZtbS4

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