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Section 1: 8-K (8-K)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 FORM 8-K 
CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): February 1, 2019

Southside Bancshares, Inc.
(Exact Name of Registrant as Specified in its Charter)
Texas
0-12247
75-1848732
(State or Other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)


1201 S. Beckham Avenue, Tyler, Texas
 
75701
(Address of Principal Executive Offices)
(Zip Code)

Registrant's telephone number, including area code: (903) 531-7111

NA
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
p
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
p
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
p
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
p
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
 











ITEM 2.02.  RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On February 1, 2019, Southside Bancshares, Inc. issued a press release announcing financial results for the three months and year ended December 31, 2018. A copy of the press release is attached as Exhibit 99.1 hereto and is hereby incorporated herein by reference.

The information in this Current Report on Form 8-K, including the attached exhibit, is being furnished as provided in General Instruction B.2 to Form 8-K, to the Securities and Exchange Commission and shall not be deemed to be “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. Furthermore the information contained in this Current Report on Form 8-K shall not be deemed to be incorporated by reference in any filing with the Securities and Exchange Commission, except as shall be expressly provided by specific reference in such filing.

ITEM 9.01.  FINANCIAL STATEMENTS AND EXHIBITS

(D)
Exhibits.  The following materials are furnished as exhibits to this Current Report on Form 8-K:
Exhibit
Number
 
Description of Exhibit
 
 
 
99.1

 





SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


 
 
Southside Bancshares, Inc.
 
 
 
Date:  February 1, 2019
By:
/s/ JULIE N. SHAMBURGER
 
 
Julie N. Shamburger, CPA
 
 
Senior Executive Vice President and Chief Financial Officer
 
 
(Principal Financial and Accounting Officer)




(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit


EXHIBIT 99.1
SOUTHSIDE BANCSHARES, INC.
ANNOUNCES FINANCIAL RESULTS FOR THE
THREE MONTHS AND YEAR ENDED DECEMBER 31, 2018
NASDAQ Global Select Market Symbol - “SBSI”


Tyler, Texas, (February 1, 2019) Southside Bancshares, Inc. (“Southside” or the “Company”) (NASDAQ:SBSI) today reported its financial results for the three months and year ended December 31, 2018.
Southside reported net income of $17.4 million for the three months ended December 31, 2018, an increase of $7.1 million, or 68.2%, compared to $10.3 million for the same period in 2017. Southside reported net income of $74.1 million for the year ended December 31, 2018, an increase of $19.8 million, or 36.5%, compared to $54.3 million for the same period in 2017.
Earnings per diluted common share increased $0.17, or 51.5%, to $0.50 for the three months ended December 31, 2018, from $0.33 for the same period in 2017. Earnings per diluted common share increased $0.30, or 16.6%, to $2.11 for the year ended December 31, 2018, from $1.81 for the same period in 2017.
The return on average shareholders’ equity for the year ended December 31, 2018 was 9.87%, compared to 9.65% for the same period in 2017.  The return on average assets was 1.19% for the year ended December 31, 2018, compared to 0.96% for the same period in 2017.
“We reported net income of $17.4 million, an increase in our net margin and spread and an increase in total loans during the fourth quarter,” stated Lee R. Gibson, President and Chief Executive Officer of Southside.
“During the fourth quarter we experienced an increase in our loans of $38.3 million, largely driven by growth in our commercial loan portfolio and to a lesser extent construction loans and municipal loans. For the year ended December 31, 2018, loans increased slightly by $18.4 million. We believe our loan pipeline is solid for the first quarter of 2019 with a number of loans expected to fund, however, we also expect a number of loan payoffs during the first quarter, partially offsetting those funded. Loan growth during the quarter was partially responsible for the seven basis point increase in our net interest margin and the four basis point increase in our net interest spread, on a linked quarter basis. Economic conditions in our Texas markets remain solid. Current economic projections for 2019 for Texas are positive with the Austin and DFW markets projected to continue to experience robust economies, driven by company relocations and overall population growth.”
“On October 25, 2018 the Company's Board of Directors approved a Stock Repurchase Plan. The Board authorized the repurchase, from time to time, of up to 1,500,000 shares of common stock in open market purchases and privately negotiated transactions at prevailing market prices. During the fourth quarter we purchased approximately 1.46 million shares of our common stock at an average price of $32.34. The remaining shares authorized for repurchase were repurchased in January 2019.”
Loans and Deposits
For the year ended December 31, 2018, total loans increased by $18.4 million, or 0.6%, to $3.31 billion, compared to December 31, 2017. The net increase in our loans was comprised of increases of $90.2 million of commercial loans, $31.9 million of construction loans and $7.6 million of municipal loans, partially offset by decreases of $71.0 million of commercial real estate loans, $29.3 million of loans to individuals and $10.8 million of 1-4 family loans.
Nonperforming assets increased during the year ended December 31, 2018 by $32.4 million, or 309.7%, to $42.9 million, or 0.70% of total assets, compared to $10.5 million, or 0.16% of total assets at December 31, 2017, primarily due to the addition of four commercial real estate loans to nonaccrual status during the year, one of which was added during the fourth quarter.
During the year ended December 31, 2018, the allowance for loan losses increased by $6.2 million, or 30.0%, to $27.0 million, or 0.82% of total loans, compared to 0.63% of total loans at December 31, 2017. The increase in the allowance was primarily the result of additional provision recorded on the commercial real estate loans placed on nonaccrual status.
During the year ended December 31, 2018, deposits, net of brokered deposits, decreased $270.8 million, or 6.1%, compared to December 31, 2017, due primarily to the decrease in public fund deposits of $221.7 million.






Net Interest Income and Net Interest Margin for the Three Months Ended December 31, 2018
Net interest income increased $4.1 million, or 10.7%, to $42.4 million for the three months ended December 31, 2018, compared to $38.3 million for the same period in 2017. The increase in net interest income was the result of a $7.9 million increase in interest income primarily from our loan portfolio, partially offset by an increase in interest expense of $3.8 million compared to the same period in 2017. The increase in interest expense related directly to our deposits and was partially offset by a decrease in interest expense on our Federal Home Loan Bank (“FHLB”) borrowings.
For the three months ended December 31, 2018, our net interest margin (FTE) increased to 3.21%, compared to 3.12% for the same period in 2017. The increase in net interest margin (FTE) was due primarily to the change in the mix of earning assets during 2018 as a result of the acquisition of Diboll State Bancshares, Inc. (“Diboll”) on November 30, 2017, as well as an increase in the average yields on earning assets, partially offset by higher average rates paid on interest bearing liabilities. The increases in average yields and rates paid were primarily due to rising interest rates during 2017 and 2018. For the three months ended December 31, 2018, our net interest spread (FTE) decreased to 2.86%, from 2.91% for the same period in 2017.
Net Interest Income and Net Interest Margin for the Year Ended December 31, 2018
Net interest income increased $28.1 million, or 19.5%, to $172.1 million for the year ended December 31, 2018, compared to $144.0 million for the same period in 2017. The increase in net interest income was the result of a $41.7 million increase in interest income primarily from our loan portfolio, partially offset by an increase in interest expense of $13.6 million compared to the same period in 2017. The increase in interest expense related directly to our deposits and was partially offset by a decrease in interest expense on our FHLB borrowings.
For the year ended December 31, 2018, our net interest margin (FTE) increased to 3.18%, compared to 3.07% for the same period in 2017. The increase in net interest margin (FTE) was due primarily to the change in the mix of earning assets as a result of the acquisition of Diboll during 2018, as well as an increase in the average yields on earning assets, partially offset by higher average rates paid on interest bearing liabilities. The increases in average yields and rates paid were primarily due to rising interest rates during 2017 and 2018. For the year ended December 31, 2018, our net interest spread (FTE) decreased slightly to 2.88%, from 2.89% for the same period in 2017.
Net Income for the Three Months Ended December 31, 2018
Net income increased $7.1 million, or 68.2%, for the three months ended December 31, 2018, to $17.4 million compared to the same period in 2017. The increase was the result of a $7.9 million increase in interest income, a $3.3 million decrease in income tax expense and a $1.0 million increase in noninterest income, partially offset by a $3.8 million increase in interest expense, a $1.2 million increase in provision for loan losses, and a $0.3 million increase in noninterest expense.
The majority of the increase in noninterest income was a result of an increase in deposit services and trust income largely related to the acquisition of Diboll. In connection with the adoption of Accounting Standards Update 2014-09 (“ASU 2014-09”) revenue recognition guidance effective January 1, 2018, debit card expense and brokerage service expense for the three months ended December 31, 2018, previously reported in ATM and debit card expense and other noninterest expense are now netted with deposit services income and brokerage services income, respectively. Due to the guidance under the modified retrospective method, prior periods have not been adjusted and therefore, are not comparable.
Income tax expense decreased $3.3 million for the three months ended December 31, 2018 compared to the same period in 2017, due to recording a $2.4 million discrete income tax expense in December 2017 related to the remeasurement of our net deferred tax asset and due to a lower tax rate effective for 2018, both in connection with the Tax Cuts and Jobs Act. The reduced tax rate effective for 2018 resulted in a lower effective tax rate of 12.7% for the three months ended December 31, 2018, compared to 36.2% for the same period in 2017. Excluding the net impact of discrete tax items, our effective tax rate was approximately 12.5% and 21.3% for the three months ended December 31, 2018 and 2017, respectively.





Net Income for the Year Ended December 31, 2018
Net income increased $19.8 million, or 36.5%, for the year ended December 31, 2018, to $74.1 million compared to the same period in 2017. The increase was primarily the result of a $41.7 million increase in interest income, a $6.0 million decrease in income tax expense and a $3.3 million increase in noninterest income, partially offset by a $13.8 million increase in noninterest expense, a $13.6 million increase in interest expense and a $3.8 million increase in provision for loan losses.
Excluding net (loss) gain on sale of securities available for sale, noninterest income increased $5.8 million, or 15.6%, for the year ended December 31, 2018, compared to the same period in 2017. Deposit services and trust income increased and were partially offset by a decrease in gain on sale of loans. The increase in both deposit services income and trust income was largely related to the acquisition of Diboll. With the adoption of ASU 2014-09, debit card expense and brokerage service expense for the year ended December 31, 2018, previously reported in ATM and debit card expense and other noninterest expense, are now netted with deposit services income and brokerage services income, respectively. Due to the guidance under the modified retrospective method, prior periods have not been adjusted and therefore, are not comparable.
Noninterest expense increased $13.8 million, or 12.9%, for the year ended December 31, 2018, to $120.1 million, compared to the same period in 2017. The increase in most of our noninterest expense categories was directly attributable to the integration of Diboll into our operations.
Income tax expense decreased $6.0 million for the year ended December 31, 2018 compared to the same period in 2017. The Tax Cuts and Jobs Act reduced the U.S. federal corporate tax rate from 35% to 21%. The decrease in the income tax expense and effective tax rate for the year ended December 31, 2018 was due to the lower corporate tax rate and a $0.8 million discrete tax benefit recorded during 2018 compared to a $2.4 million discrete income tax expense for the year ended December 31, 2017 associated with the remeasurement of our net deferred tax asset. The reduced tax rate effective for 2018 resulted in a lower effective tax rate of 12.1% compared to 22.9% for the same period in 2017. Excluding the net impact of discrete tax items, our effective tax rate was approximately 13.0% and 19.5% for the year ended December 31, 2018 and 2017, respectively.

Conference Call
Southside's management team will host a conference call to discuss its fourth quarter and year end December 31, 2018 financial results on Friday, February 1, 2019 at 9:00 a.m. CST.  The call can be accessed by dialing 844-775-2540 and by identifying the conference ID number 9677865 or by identifying “Southside Bancshares, Inc., Fourth Quarter and Year End 2018 Earnings Call.”  To listen to the call via webcast, register at www.southside.com/about/investor-relations.
For those unable to listen to the conference call live, a recording will be available from approximately 11:30 a.m. CST February 1, 2019 through February 13, 2019 by accessing the company website, www.southside.com/about/investor-relations.

Non-GAAP Financial Measures
Our accounting and reporting policies conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP measures are used by management to supplement the evaluation of our performance. These include the following fully taxable-equivalent measures (“FTE”): (i) Net interest income (FTE), (ii) Net interest margin (FTE), (iii) Net interest spread (FTE), and (iv) Efficiency ratio (FTE), which include the effects of taxable-equivalent adjustments using a federal income tax rate of 21% and 35% for the three months and year ended December 31, 2018 and 2017, respectively, to increase tax-exempt interest income to a tax-equivalent basis. Interest income earned on certain assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments.
Net interest income (FTE), Net interest margin (FTE) and Net interest spread (FTE). Net interest income (FTE) is a non-GAAP measure that adjusts for the tax-favored status of net interest income from certain loans and investments. We believe this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources. The most directly comparable financial measure calculated in accordance with GAAP is our net interest income. Net interest margin (FTE) is the ratio of net interest income (FTE) to average earning assets. The most directly comparable financial measure calculated in accordance with GAAP is our net interest margin. Net interest spread (FTE) is the difference in the average yield on average earning assets on a tax-equivalent basis and the average rate paid on average interest bearing liabilities. The most directly comparable financial measure calculated in accordance with GAAP is our net interest spread.
Efficiency ratio (FTE).  The efficiency ratio (FTE) is a non-GAAP measure that provides a measure of productivity in the banking industry. This ratio is calculated to measure the cost of generating one dollar of revenue. The ratio is designed to reflect the percentage of one dollar which must be expended to generate that dollar of revenue. We calculate this ratio by dividing noninterest expense, excluding amortization expense on intangibles and certain nonrecurring expense by the sum of net interest income (FTE)





and noninterest income, excluding net gain (loss) on sale of securities available for sale and certain nonrecurring impairments. The most directly comparable financial measure calculated in accordance with GAAP is our efficiency ratio.
These non-GAAP financial measures should not be considered alternatives to GAAP-basis financial statements and other bank holding companies may define or calculate these non-GAAP measures or similar measures differently. Whenever we present a non-GAAP financial measure in an SEC filing, we are also required to present the most directly comparable financial measure calculated and presented in accordance with GAAP and reconcile the differences between the non-GAAP financial measure and such comparable GAAP measure.

In the following table we present, for the five quarterly periods ended December 31, 2018 and for the years ended December 31, 2018 and 2017, the reconciliation of net interest income to net interest income adjusted to a fully taxable-equivalent basis assuming a 21% marginal tax rate for 2018 and a 35% marginal tax rate for 2017 for interest earned on tax-exempt assets such as municipal loans and investment securities (dollars in thousands), along with the calculation of total revenue, adjusted noninterest expense, efficiency ratio (FTE), net interest margin (FTE) and net interest spread (FTE).
Non-GAAP Reconciliation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Years Ended
 
 
2018
 
2017
 
2018
 
2017
 
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
Mar. 31,
 
Dec. 31,
 
Dec. 31,
 
Dec. 31,
Net interest income (GAAP)
 
$
42,410

 
$
42,410

 
$
43,111

 
$
44,133

 
$
38,306

 
$
172,064

 
$
143,970

Tax equivalent adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans
 
599

 
590

 
583

 
582

 
1,125

 
2,354

 
4,313

Investment securities (tax-exempt)
 
1,933

 
1,801

 
1,651

 
1,619

 
3,049

 
7,004

 
13,197

Net interest income (FTE) (1)
 
44,942

 
44,801

 
45,345

 
46,334

 
42,480

 
181,422

 
161,480

Noninterest income
 
10,134

 
10,022

 
11,007

 
9,610

 
9,099

 
40,773

 
37,473

Nonrecurring income (2)
 
(66
)
 
741

 
(304
)
 
827

 
483

 
1,198

 
(191
)
Total revenue
 
$
55,010

 
$
55,564

 
$
56,048

 
$
56,771

 
$
52,062

 
$
223,393

 
$
198,762

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest expense
 
$
30,196

 
$
28,962

 
$
29,274

 
$
31,667

 
$
29,933

 
$
120,099

 
$
106,335

Pre-tax amortization expense
 
(1,228
)
 
(1,279
)
 
(1,328
)
 
(1,378
)
 
(726
)
 
(5,213
)
 
(1,955
)
Nonrecurring expense (3)
 
(264
)
 
(507
)
 
(1,287
)
 
(1,178
)
 
(3,479
)
 
(3,236
)
 
(4,394
)
Adjusted noninterest expense
 
$
28,704

 
$
27,176

 
$
26,659

 
$
29,111

 
$
25,728

 
$
111,650

 
$
99,986

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Efficiency ratio
 
54.70
%
 
51.11
%
 
49.54
%
 
53.35
%
 
53.73
%
 
52.16
%
 
55.16
%
Efficiency ratio (FTE) (1)
 
52.18
%
 
48.91
%
 
47.56
%
 
51.28
%
 
49.42
%
 
49.98
%
 
50.30
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average earning assets
 
$
5,558,052

 
$
5,654,566

 
$
5,700,133

 
$
5,891,352

 
$
5,395,212

 
$
5,699,985

 
$
5,254,431

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest margin
 
3.03
%
 
2.98
%
 
3.03
%
 
3.04
%
 
2.82
%
 
3.02
%
 
2.74
%
Net interest margin (FTE) (1)
 
3.21
%
 
3.14
%
 
3.19
%
 
3.19
%
 
3.12
%
 
3.18
%
 
3.07
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest spread
 
2.68
%
 
2.65
%
 
2.75
%
 
2.80
%
 
2.60
%
 
2.72
%
 
2.56
%
Net interest spread (FTE) (1)
 
2.86
%
 
2.82
%
 
2.90
%
 
2.95
%
 
2.91
%
 
2.88
%
 
2.89
%

(1)
These amounts are presented on a fully taxable-equivalent basis and are non-GAAP measures.
(2)
These adjustments may include net gain and loss on sale of securities available for sale, impairment of investments, other-than-temporary impairment charges and additional bank owned life insurance income realized as a result of the death benefits for a retired covered officer, in the periods where applicable.
(3)
These adjustments may include acquisition expenses, foreclosure expenses and branch closure expenses, in the periods where applicable.






Management believes adjusting net interest income, net interest margin and net interest spread to a fully taxable-equivalent basis is a standard practice in the banking industry as these measures provide useful information to make peer comparisons. Tax-equivalent adjustments are reported in the respective earning asset categories as listed in the “Average Balances with Average Yields and Rates” tables.

About Southside Bancshares, Inc.
Southside Bancshares, Inc. is a bank holding company with approximately $6.12 billion in assets as of December 31, 2018, that owns 100% of Southside Bank.  Southside Bank currently has 59 branches in Texas and operates a network of 82 ATMs/ITMs.
To learn more about Southside Bancshares, Inc., please visit our investor relations website at www.southside.com/about/investor-relations.  Our investor relations site provides a detailed overview of our activities, financial information and historical stock price data.  To receive e-mail notification of company news, events and stock activity, please register on the E-mail Notification portion of the website.  Questions or comments may be directed to Julie Shamburger at (903) 531-7134, or [email protected]

Forward-Looking Statements
Certain statements of other than historical fact that are contained in this document and in other written material, press releases and oral statements issued by or on behalf of the Company may be considered to be “forward-looking statements” within the meaning of and subject to the safe harbor protections of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date.  These statements may include words such as “expect,” “estimate,” “project,” “anticipate,” “appear,” “believe,” “could,” “should,” “may,” “likely,” “intend,” “probability,” “risk,” “target,” “objective,” “plans,” “potential,” and similar expressions.  Forward-looking statements are statements with respect to the Company’s beliefs, plans, expectations, objectives, goals, anticipations, assumptions and estimates about the Company's future performance and are subject to significant known and unknown risks and uncertainties, which could cause the Company's actual results to differ materially from the results discussed in the forward-looking statements.  For example, discussions about trends in asset quality, capital, liquidity, the pace of loan and revenue growth, the Company's ability to sell nonperforming assets, expense reductions, planned operational efficiencies, earnings, successful integration of completed acquisitions and certain market risk disclosures, including the impact of interest rates, tax reform and other economic factors, are based upon information presently available to management and are dependent on choices about key model characteristics and assumptions and are subject to various limitations.  By their nature, certain of the market risk disclosures are only estimates and could be materially different from what actually occurs in the future.  
Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, under “Part I - Item 1. Forward Looking Information” and "Part I - Item 1A. Risk Factors" and in the Company’s other filings with the Securities and Exchange Commission.  The Company disclaims any obligation to update any factors or to announce publicly the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.





 
SOUTHSIDE BANCSHARES, INC.
 
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
 
(In thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of
 
2018
 
2017
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
Mar. 31,
 
Dec. 31,
ASSETS
 
 
 
 
 
 
 
 
 
Cash and due from banks
$
87,375

 
$
85,103

 
$
78,534

 
$
65,480

 
$
79,171

Interest earning deposits
23,884

 
70,685

 
138,685

 
183,241

 
111,541

Federal funds sold
9,460

 
18,284

 
14,850

 
14,090

 
7,980

Securities available for sale, at estimated fair value
1,989,436

 
1,939,277

 
2,037,994

 
2,062,539

 
1,538,755

Securities held to maturity, at carrying value
162,931

 
163,365

 
164,276

 
164,847

 
909,506

Federal Home Loan Bank stock, at cost
32,583

 
32,291

 
42,994

 
42,676

 
55,729

Loans held for sale
601

 
954

 
4,566

 
2,003

 
2,001

Loans
3,312,799

 
3,274,524

 
3,270,883

 
3,309,627

 
3,294,356

Less: Allowance for loan losses
(27,019
)
 
(26,092
)
 
(25,072
)
 
(24,220
)
 
(20,781
)
Net loans
3,285,780

 
3,248,432

 
3,245,811

 
3,285,407

 
3,273,575

Premises & equipment, net
135,972

 
133,939

 
132,578

 
131,625

 
133,640

Goodwill
201,116

 
201,116

 
201,246

 
201,246

 
201,246

Other intangible assets, net
17,779

 
19,009

 
20,287

 
21,615

 
22,993

Bank owned life insurance
98,160

 
97,611

 
97,059

 
100,963

 
100,368

Other assets
78,417

 
95,288

 
71,293

 
97,465

 
61,592

Total assets
$
6,123,494

 
$
6,105,354

 
$
6,250,173

 
$
6,373,197

 
$
6,498,097

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
Noninterest bearing deposits
$
994,680

 
$
1,033,572

 
$
1,038,907

 
$
1,055,423

 
$
1,037,401

Interest bearing deposits
3,430,350

 
3,519,940

 
3,469,834

 
3,586,474

 
3,478,046

Total deposits
4,425,030

 
4,553,512

 
4,508,741

 
4,641,897

 
4,515,447

Other borrowings
755,875

 
570,242

 
784,754

 
779,990

 
1,026,859

Subordinated notes, net of unamortized debt issuance costs
98,407

 
98,366

 
98,326

 
98,286

 
98,248

Trust preferred subordinated debentures, net of unamortized debt issuance costs
60,246

 
60,244

 
60,243

 
60,242

 
60,241

Other liabilities
52,645

 
70,484

 
46,299

 
46,386

 
43,162

          Total liabilities
5,392,203

 
5,352,848

 
5,498,363

 
5,626,801

 
5,743,957

Shareholders' equity
731,291

 
752,506

 
751,810

 
746,396

 
754,140

Total liabilities and shareholders' equity
$
6,123,494

 
$
6,105,354

 
$
6,250,173

 
$
6,373,197

 
$
6,498,097







 
At or For the Three Months Ended
 
2018
 
2017
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
Mar. 31,
 
Dec. 31,
Income Statement:
 
 
 
 
 
 
 
 
 
Total interest income
$
58,022

 
$
57,152

 
$
56,797

 
$
57,194

 
$
50,104

Total interest expense
15,612

 
14,742

 
13,686

 
13,061

 
11,798

Net interest income
42,410

 
42,410

 
43,111

 
44,133

 
38,306

Provision for loan losses
2,446

 
975

 
1,281

 
3,735

 
1,271

Net interest income after provision for loan losses
39,964

 
41,435

 
41,830

 
40,398

 
37,035

Noninterest income
 
 
 
 
 
 
 
 
 
Deposit services
6,325

 
6,317

 
6,261

 
6,179

 
5,940

Net gain (loss) on sale of securities available for sale
61

 
(741
)
 
(332
)
 
(827
)
 
(249
)
Gain on sale of loans
101

 
303

 
173

 
115

 
268

Trust income
1,573

 
1,568

 
1,931

 
1,760

 
1,156

Bank owned life insurance income
554

 
552

 
1,185

 
632

 
632

Brokerage services
499

 
532

 
506

 
450

 
632

Other
1,021

 
1,491

 
1,283

 
1,301

 
720

Total noninterest income
10,134

 
10,022

 
11,007

 
9,610

 
9,099

Noninterest expense
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
17,823

 
17,628

 
16,633

 
18,559

 
15,316

Occupancy expense
3,475

 
3,396

 
3,360

 
3,583

 
3,327

Acquisition expense
118

 
437

 
1,026

 
832

 
3,474

Advertising, travel & entertainment
786

 
648

 
775

 
685

 
601

ATM and debit card expense
250

 
251

 
243

 
346

 
1,049

Professional fees
1,189

 
824

 
952

 
1,070

 
859

Software and data processing expense
1,057

 
977

 
939

 
1,023

 
882

Telephone and communications
477

 
354

 
478

 
538

 
444

FDIC insurance
455

 
435

 
484

 
497

 
442

Amortization expense on intangibles
1,228

 
1,279

 
1,328

 
1,378

 
726

Other
3,338

 
2,733

 
3,056

 
3,156

 
2,813

Total noninterest expense
30,196

 
28,962

 
29,274

 
31,667

 
29,933

Income before income tax expense
19,902

 
22,495

 
23,563

 
18,341

 
16,201

Income tax expense
2,521

 
2,192

 
3,360

 
2,090

 
5,870

Net income
$
17,381

 
$
20,303

 
$
20,203

 
$
16,251

 
$
10,331

 
 
 
 
 
 
 
 
 
 
Common share data:
 
 
 
Weighted-average basic shares outstanding
34,611

 
35,114

 
35,062

 
35,022

 
31,370

Weighted-average diluted shares outstanding
34,748

 
35,288

 
35,233

 
35,200

 
31,569

Shares outstanding end of period
33,725

 
35,160

 
35,084

 
35,053

 
35,000

Net income per common share
 
 
 
 
 
 
 
 
 
Basic
$
0.50

 
$
0.58

 
$
0.58

 
$
0.46

 
$
0.33

Diluted
0.50

 
0.58

 
0.57

 
0.46

 
0.33

Book value per common share
21.68

 
21.40

 
21.43

 
21.29

 
21.55

Cash dividend paid per common share
0.32

 
0.30

 
0.30

 
0.28

 
0.30

 
 
 
 
 
 
 
 
 
 
Selected Performance Ratios:
 
 
 
 
 
 
 
 
 
Return on average assets
1.14
%
 
1.30
%
 
1.30
%
 
1.02
%
 
0.70
%
Return on average shareholders’ equity
9.30

 
10.61

 
10.79

 
8.75

 
6.52

Average yield on earning assets (FTE) (1)
4.32

 
4.18

 
4.15

 
4.09

 
3.99

Average rate on interest bearing liabilities
1.46

 
1.36

 
1.25

 
1.14

 
1.08

Net interest spread (FTE) (1)
2.86

 
2.82

 
2.90

 
2.95

 
2.91

Net interest margin (FTE) (1)
3.21

 
3.14

 
3.19

 
3.19

 
3.12

Average earning assets to average interest bearing liabilities
131.07

 
131.12

 
130.22

 
127.29

 
124.73

Noninterest expense to average total assets
1.98

 
1.86

 
1.89

 
1.99

 
2.03

Efficiency ratio (FTE) (1)
52.18

 
48.91

 
47.56

 
51.28

 
49.42

(1)
These amounts are presented on a fully taxable-equivalent basis and are non-GAAP measures. See “Non-GAAP Financial Measures” for more information, including a reconciliation to GAAP.





 
At or For the
Years Ended
 
December 31,
 
2018
 
2017
Income Statement:
 
 
 
Total interest income
$
229,165

 
$
187,474

Total interest expense
57,101

 
43,504

Net interest income
172,064

 
143,970

Provision for loan losses
8,437

 
4,675

Net interest income after provision for loan losses
163,627

 
139,295

Noninterest income
 
 
 
Deposit services
25,082

 
21,785

Net (loss) gain on sale of securities available for sale
(1,839
)
 
625

Gain on sale of loans
692

 
1,821

Trust income
6,832

 
3,818

Bank owned life insurance income
2,923

 
2,537

Brokerage services
1,987

 
2,422

Other
5,096

 
4,465

Total noninterest income
40,773

 
37,473

Noninterest expense
 
 
 
Salaries and employee benefits
70,643

 
60,779

Occupancy expense
13,814

 
12,068

Acquisition expense
2,413

 
4,352

Advertising, travel & entertainment
2,894

 
2,219

ATM and debit card expense
1,090

 
3,889

Professional fees
4,035

 
3,844

Software and data processing expense
3,996

 
3,027

Telephone and communications
1,847

 
1,905

FDIC insurance
1,871

 
1,769

Amortization expense on intangibles
5,213

 
1,955

Other
12,283

 
10,528

Total noninterest expense
120,099

 
106,335

Income before income tax expense
84,301

 
70,433

Income tax expense
10,163

 
16,121

Net income
$
74,138

 
$
54,312

Common share data:
 
 
Weighted-average basic shares outstanding
34,951

 
29,841

Weighted-average diluted shares outstanding
35,116

 
30,047

Net income per common share
 
 
 
Basic
$
2.12

 
$
1.82

Diluted
2.11

 
1.81

Book value per common share
21.68

 
21.55

Cash dividend paid per common share
1.20

 
1.11

 
 
Selected Performance Ratios:
 
 
 
Return on average assets
1.19
%
 
0.96
%
Return on average shareholders’ equity
9.87

 
9.65

Average yield on earning assets (FTE) (1)
4.18

 
3.90

Average yield on interest bearing liabilities
1.30

 
1.01

Net interest spread (FTE) (1)
2.88

 
2.89

Net interest margin (FTE) (1)
3.18

 
3.07

Average earning assets to average interest bearing liabilities
129.89

 
122.42

Noninterest expense to average total assets
1.93

 
1.88

Efficiency ratio (FTE) (1)
49.98

 
50.30

(1)
These amounts are presented on a fully taxable-equivalent basis and are non-GAAP measures. See “Non-GAAP Financial Measures” for more information, including a reconciliation to GAAP.





 
Southside Bancshares, Inc.
 
Selected Financial Data (unaudited)
 
(dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
2018
 
2017
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
Mar. 31,
 
Dec. 31,
Nonperforming assets:
$
42,906

 
$
39,638

 
$
42,423

 
$
42,444

 
$
10,472

Nonaccrual loans (1)
35,770

 
32,526

 
35,351

 
34,545

 
2,937

Accruing loans past due more than 90 days (1)

 

 
7

 
4

 
1

Restructured loans (2)
5,930

 
5,699

 
5,860

 
5,839

 
5,767

Other real estate owned
1,206

 
1,413

 
1,137

 
2,014

 
1,613

Repossessed assets

 

 
68

 
42

 
154

 
 
 
 
 
 
 
 
 
 
Asset Quality Ratios:
 
 
 
 
 
 
 
 
 
Nonaccruing loans to total loans
1.08
%
 
0.99
 %
 
1.08
%
 
1.04
%
 
0.09
%
Allowance for loan losses to nonaccruing loans
75.54

 
80.22

 
70.92

 
70.11

 
707.56

Allowance for loan losses to nonperforming assets
62.97

 
65.83

 
59.10

 
57.06

 
198.44

Allowance for loan losses to total loans
0.82

 
0.80

 
0.77

 
0.73

 
0.63

Nonperforming assets to total assets
0.70

 
0.65

 
0.68

 
0.67

 
0.16

Net charge-offs (recoveries) to average loans
0.18

 
(0.01
)
 
0.05

 
0.04

 
0.05

 
 
 
 
 
 
 
 
 
 
Capital Ratios:
 
 
 
 
 
 
 
 
 
Shareholders’ equity to total assets
11.94

 
12.33

 
12.03

 
11.71

 
11.61

Average shareholders’ equity to average total assets
12.23

 
12.28

 
12.06

 
11.69

 
10.75


(1)
Excludes purchased credit impaired ("PCI") loans measured at fair value at acquisition if the timing and amount of cash flows expected to be collected from those sales can be reasonably estimated.
(2)
Includes $3.1 million, $3.2 million, $2.9 million, $2.9 million, and $2.9 million in PCI loans restructured as of December 31, 2018, September 30, 2018, June 30, 2018, March 31, 2018, and December 31, 2017, respectively.

Loan Portfolio Composition
The following table sets forth loan totals by category for the periods presented:
 
Three Months Ended
 
2018
 
2017
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
Mar. 31,
 
Dec. 31,
Real Estate Loans:
 
 
 
 
 
 
 
 
 
Construction
$
507,732

 
$
484,254

 
$
487,286

 
$
474,791

 
$
475,867

1-4 Family Residential
794,499

 
791,274

 
791,359

 
797,088

 
805,341

Commercial
1,194,118

 
1,218,714

 
1,245,936

 
1,285,591

 
1,265,159

Commercial Loans
356,649

 
322,873

 
282,723

 
281,901

 
266,422

Municipal Loans
353,370

 
344,792

 
345,595

 
342,404

 
345,798

Loans to Individuals
106,431

 
112,617

 
117,984

 
127,852

 
135,769

Total Loans
$
3,312,799

 
$
3,274,524

 
$
3,270,883

 
$
3,309,627

 
$
3,294,356







The “Average Balances with Average Yields and Rates” tables that follow show average earning assets and interest bearing liabilities together with the average yield on the earning assets and the average rate of the interest bearing liabilities (dollars in thousands) for the periods presented. The interest and related yields presented are on a fully taxable-equivalent basis and are therefore non-GAAP measures. See "Non-GAAP Financial Measures" for more information.
 
Average Balances with Average Yields and Rates
 
(unaudited)
 
Three Months Ended
 
December 31, 2018
 
September 30, 2018
 
Avg Balance
 
Interest
 
Avg Yield/Rate
 
Avg Balance
 
Interest
 
Avg Yield/Rate
ASSETS
 
 
 
 
 
 
 
 
 
 
 
Loans (1)
$
3,289,840

 
$
41,320

 
4.98
%
 
$
3,286,664

 
$
40,396

 
4.88
%
Loans held for sale
633

 
8

 
5.01
%
 
1,841

 
25

 
5.39
%
Securities:
 
 
 
 
 
 
 
 
 
 
 
Investment securities (taxable) (2)
13,066

 
103

 
3.13
%
 
4,285

 
36

 
3.33
%
Investment securities (tax-exempt) (2)
722,162

 
7,828

 
4.30
%
 
795,397

 
8,132

 
4.06
%
Mortgage-backed and related securities (2)
1,434,982

 
10,394

 
2.87
%
 
1,418,114

 
10,086

 
2.82
%
Total securities
2,170,210

 
18,325

 
3.35
%
 
2,217,796

 
18,254

 
3.27
%
FHLB stock, at cost, and equity investments
44,304

 
393

 
3.52
%
 
54,216

 
377

 
2.76
%
Interest earning deposits
36,098

 
411

 
4.52
%
 
77,977

 
414

 
2.11
%
Federal funds sold
16,967

 
97

 
2.27
%
 
16,072

 
77

 
1.90
%
Total earning assets
5,558,052

 
60,554

 
4.32
%
 
5,654,566

 
59,543

 
4.18
%
Cash and due from banks
79,544

 
 
 
 
 
78,623

 
 
 
 
Accrued interest and other assets
452,257

 
 
 
 
 
477,737

 
 
 
 
Less:  Allowance for loan losses
(26,231
)
 
 
 
 
 
(25,646
)
 
 
 
 
Total assets
$
6,063,622

 
 
 
 
 
$
6,185,280

 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
 
 
Savings deposits
$
361,407

 
257

 
0.28
%
 
$
362,405

 
258

 
0.28
%
Time deposits
1,123,101

 
5,170

 
1.83
%
 
1,173,672

 
4,744

 
1.60
%
Interest bearing demand deposits
1,968,786

 
4,908

 
0.99
%
 
1,953,904

 
4,495

 
0.91
%
Total interest bearing deposits
3,453,294

 
10,335

 
1.19
%
 
3,489,981

 
9,497

 
1.08
%
FHLB borrowings
612,134

 
3,066

 
1.99
%
 
654.153

 
3.108

 
1.88
%
Subordinated notes, net of unamortized debt issuance costs
98,385

 
1,431

 
5.77
%
 
98,346

 
1,423

 
5.74
%
Trust preferred subordinated debentures, net of unamortized debt issuance costs
60,245

 
699

 
4.60
%
 
60,244

 
684

 
4.50
%
Other borrowings
16,405

 
81

 
1.96
%
 
9,651

 
30

 
1.23
%
Total interest bearing liabilities
4,240,463

 
15,612

 
1.46
%
 
4,312,375

 
14,742

 
1.36
%
Noninterest bearing deposits
1,034,556

 
 
 
 
 
1,064,797

 
 
 
 
Accrued expenses and other liabilities
47,234

 
 
 
 
 
48,699

 
 
 
 
Total liabilities
5,322,253

 
 
 
 
 
5,425,871

 
 
 
 
Shareholders’ equity
741,369

 
 
 
 
 
759,409

 
 
 
 
Total liabilities and shareholders’ equity
$
6,063,622

 
 
 
 
 
$
6,185,280

 
 
 
 
Net interest income (FTE)
 
 
$
44,942

 
 
 
 
 
$
44,801

 
 
Net interest margin (FTE)
 
 
 
 
3.21
%
 
 
 
 
 
3.14
%
Net interest spread (FTE)
 
 
 
 
2.86
%
 
 
 
 
 
2.82
%

(1)
Interest on loans includes net fees on loans that are not material in amount.
(2)
For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.

Note: As of December 31, 2018 and September 30, 2018, loans totaling $35.8 million and $32.5 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.





 
Average Balances with Average Yields and Rates
 
(unaudited)
 
Three Months Ended
 
June 30, 2018
 
March 31, 2018
 
Avg Balance
 
Interest
 
Avg Yield/Rate
 
Avg Balance
 
Interest
 
Avg Yield/Rate
ASSETS
 
 
 
 
 
 
 
 
 
 
 
Loans (1)
$
3,285,756

 
$
39,865

 
4.87
%
 
$
3,300,506

 
$
39,401

 
4.84
%
Loans held for sale
1,794

 
19

 
4.25
%
 
1,543

 
11

 
2.89
%
Securities:
 
 
 
 
 
 
 
 
 
 
 
Investment securities (taxable) (2)
6,891

 
51

 
2.97
%
 
39,332

 
227

 
2.34
%
Investment securities (tax-exempt) (2)
802,611

 
8,004

 
4.00
%
 
805,091

 
8,000

 
4.03
%
Mortgage-backed and related securities (2)
1,439,810

 
10,210

 
2.84
%
 
1,557,140

 
10,894

 
2.84
%
Total securities
2,249,312

 
18,265

 
3.26
%
 
2,401,563

 
19,121

 
3.23
%
FHLB stock, at cost, and equity investments
54,729

 
411

 
3.01
%
 
67,000

 
414

 
2.51
%
Interest earning deposits
92,291

 
400

 
1.74
%
 
107,488

 
399

 
1.51
%
Federal funds sold
16,251

 
71

 
1.75
%
 
13,252

 
49

 
1.50
%
Total earning assets
5,700,133

 
59,031

 
4.15
%
 
5,891,352

 
59,395

 
4.09
%
Cash and due from banks
75,560

 
 
 
 
 
78,031

 
 
 
 
Accrued interest and other assets
473,142

 
 
 
 
 
493,974

 
 
 
 
Less:  Allowance for loan losses
(24,558
)
 
 
 
 
 
(21,005
)
 
 
 
 
Total assets
$
6,224,277

 
 
 
 
 
$
6,442,352

 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
 
 
Savings deposits
$
360,340

 
208

 
0.23
%
 
$
353,770

 
184

 
0.21
%
Time deposits
1,175,230

 
4,303

 
1.47
%
 
1,170,024

 
3,895

 
1.35
%
Interest bearing demand deposits
1,981,427

 
4,070

 
0.82
%
 
2,009,154

 
3,372

 
0.68
%
Total interest bearing deposits
3,516,997

 
8,581

 
0.98
%
 
3,532,948

 
7,451

 
0.86
%
FHLB borrowings
692,386

 
3,007

 
1.74
%
 
928,677

 
3,632

 
1.59
%
Subordinated notes, net of unamortized debt issuance costs
98,306

 
1,407

 
5.74
%
 
98,267

 
1,398

 
5.77
%
Trust preferred subordinated debentures, net of unamortized debt issuance costs
60,243

 
658

 
4.38
%
 
60,241

 
569

 
3.83
%
Other borrowings
9,283

 
33

 
1.43
%
 
8,103

 
11

 
0.55
%
Total interest bearing liabilities
4,377,215

 
13,686

 
1.25
%
 
4,628,236

 
13,061

 
1.14
%
Noninterest bearing deposits
1,045,298

 
 
 
 
 
1,016,707

 
 
 
 
Accrued expenses and other liabilities
50,843

 
 
 
 
 
44,015

 
 
 
 
Total liabilities
5,473,356

 
 
 
 
 
5,688,958

 
 
 
 
Shareholders’ equity
750,921

 
 
 
 
 
753,394

 
 
 
 
Total liabilities and shareholders’ equity
$
6,224,277

 
 
 
 
 
$
6,442,352

 
 
 
 
Net interest income (FTE)
 
 
$
45,345

 
 
 
 
 
$
46,334

 
 
Net interest margin (FTE)
 
 
 
 
3.19
%
 
 
 
 
 
3.19
%
Net interest spread (FTE)
 
 
 
 
2.90
%
 
 
 
 
 
2.95
%

(1)
Interest on loans includes net fees on loans that are not material in amount.
(2)
For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.

Note: As of June 30, 2018 and March 31, 2018, loans totaling $35.4 million and $34.5 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.






 
Average Balances with Average Yields and Rates
 
(unaudited)
 
Three Months Ended
 
December 31, 2017
 
Avg Balance
 
Interest
 
Avg Yield/Rate
ASSETS
 
 
 
 
 
Loans (1)
$
2,897,444

 
$
34,070

 
4.67
%
Loans held for sale
2,285

 
22

 
3.82
%
Securities:
 
 
 
 
 
Investment securities (taxable) (2)
51,678

 
237

 
1.82
%
Investment securities (tax-exempt) (2)
775,681

 
9,197

 
4.70
%
Mortgage-backed and related securities (2)
1,461,159

 
9,931

 
2.70
%
Total securities
2,288,518

 
19,365

 
3.36
%
FHLB stock, at cost, and equity investments
67,127

 
380

 
2.25
%
Interest earning deposits
133,007

 
418

 
1.25
%
Federal funds sold
6,831

 
23

 
1.34
%
Total earning assets
5,395,212

 
54,278

 
3.99
%
Cash and due from banks
60,590

 
 
 
 
Accrued interest and other assets
410,528

 
 
 
 
Less:  Allowance for loan losses
(19,963
)
 
 
 
 
Total assets
$
5,846,367

 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
 
 
Savings deposits
$
293,392

 
134

 
0.18
%
Time deposits
1,031,008

 
3,178

 
1.22
%
Interest bearing demand deposits
1,696,239

 
2,585

 
0.60
%
Total interest bearing deposits
3,020,639

 
5,897

 
0.77
%
FHLB borrowings
1,137,373

 
3,935

 
1.37
%
Subordinated notes, net of unamortized debt issuance costs
98,229

 
1,429

 
5.77
%
Trust preferred subordinated debentures, net of unamortized debt issuance costs
60,240

 
532

 
3.50
%
Other borrowings
9,157

 
5

 
0.22
%
Total interest bearing liabilities
4,325,638

 
11,798

 
1.08
%
Noninterest bearing deposits
846,632

 
 
 
 
Accrued expenses and other liabilities
45,613

 
 
 
 
Total liabilities
5,217,883

 
 
 
 
Shareholders’ equity
628,484

 
 
 
 
Total liabilities and shareholders’ equity
$
5,846,367

 
 
 
 
Net interest income (FTE)
 
 
$
42,480

 
 
Net interest margin (FTE)
 
 
 
 
3.12
%
Net interest spread (FTE)
 
 
 
 
2.91
%

(1)
Interest on loans includes net fees on loans that are not material in amount.
(2)
For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.

Note: As of December 31, 2017, loans totaling $2.9 million were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.





 
Average Balances with Average Yields and Rates
 
(unaudited)
 
Years Ended
 
December 31, 2018
 
December 31, 2017
 
Avg Balance
 
Interest
 
Avg Yield/Rate
 
Avg Balance
 
Interest
 
Avg Yield/Rate
ASSETS
 
 
 
 
 
 
 
 
 
 
 
Loans (1)
$
3,290,651

 
$
160,982

 
4.89
%
 
$
2,666,265

 
$
121,769

 
4.57
%
Loans held for sale
1,451

 
63

 
4.34
%
 
5,058

 
177

 
3.50
%
Securities:
 
 
 
 
 
 
 
 
 
 
 
Investment securities (taxable) (2)
15,790

 
417

 
2.64
%
 
51,654

 
939

 
1.82
%
Investment securities (tax-exempt) (2)
781,127

 
31,964

 
4.09
%
 
765,854

 
37,726

 
4.93
%
Mortgage-backed and related securities (2)
1,462,055

 
41,584

 
2.84
%
 
1,543,826

 
41,361

 
2.68
%
Total securities
2,258,972

 
73,965

 
3.27
%
 
2,361,334

 
80,026

 
3.39
%
FHLB stock, at cost, and equity investments
54,998

 
1,595

 
2.90
%