| | |
Per
Subordinated Note |
| |
Total
|
| ||||||
Price to public(1)
|
| | | | % | | | | | $ | | | |
Underwriting discounts
|
| | | | % | | | | | $ | | | |
Proceeds to us, before expenses
|
| | | | % | | | | | $ | | | |
|
Sole Book Running Manager
|
| |
Joint Lead Manager
|
|
| | |
Page
|
| |||
| | | | S-iii | | | |
| | | | S-iii | | | |
| | | | S-iv | | | |
| | | | S-v | | | |
| | | | S-1 | | | |
| | | | S-9 | | | |
| | | | S-13 | | | |
| | | | S-14 | | | |
| | | | S-15 | | | |
| | | | S-16 | | | |
| | | | S-29 | | | |
| | | | S-33 | | | |
| | | | S-35 | | | |
| | | | S-36 | | | |
| | | | S-36 | | |
| | |
Page
|
| |||
| | | | 1 | | | |
| | | | 1 | | | |
| | | | 2 | | | |
| | | | 3 | | | |
| | | | 5 | | | |
| | | | 5 | | | |
| | | | 6 | | | |
| | | | 7 | | | |
| | | | 8 | | | |
| | | | 9 | | | |
| | | | 12 | | | |
| | | | 13 | | | |
| | | | 21 | | | |
| | | | 21 | | | |
| | | | 22 | | | |
| | | | 23 | | | |
| | | | 25 | | | |
| | | | 25 | | |
| | |
As of and for
the Six Months Ended June 30, 2016 |
| |
As of and for the Years Ended December 31,
|
| ||||||||||||||||||||||||||||||
| | |
2015
|
| |
2014(1)
|
| |
2013
|
| |
2012
|
| |
2011
|
| |||||||||||||||||||||
| | |
(in thousands, except per share data)
|
| |||||||||||||||||||||||||||||||||
Balance Sheet Data: | | | | | | | | ||||||||||||||||||||||||||||||
Investment Securities
|
| | | $ | 692,072 | | | | | $ | 752,135 | | | | | $ | 695,529 | | | | | $ | 728,981 | | | | | $ | 618,716 | | | | | $ | 284,452 | | |
Mortgage-backed Securities
|
| | | | 1,509,188 | | | | | | 1,492,653 | | | | | | 1,395,498 | | | | | | 1,115,827 | | | | | | 1,051,898 | | | | | | 1,729,516 | | |
Loans, Net of Allowance for Loan
Losses |
| | | | 2,369,413 | | | | | | 2,412,017 | | | | | | 2,167,841 | | | | | | 1,332,396 | | | | | | 1,242,392 | | | | | | 1,068,690 | | |
Total Assets
|
| | | | 5,035,005 | | | | | | 5,162,076 | | | | | | 4,807,261 | | | | | | 3,445,663 | | | | | | 3,237,403 | | | | | | 3,303,817 | | |
Deposits
|
| | | | 3,570,249 | | | | | | 3,455,407 | | | | | | 3,374,417 | | | | | | 2,527,808 | | | | | | 2,351,897 | | | | | | 2,321,671 | | |
Long-term Obligations
|
| | | | 559,148 | | | | | | 562,592 | | | | | | 660,363 | | | | | | 559,660 | | | | | | 429,408 | | | | | | 321,035 | | |
Shareholders’ Equity
|
| | | | 472,300 | | | | | | 444,062 | | | | | | 425,243 | | | | | | 259,518 | | | | | | 257,763 | | | | | | 258,927 | | |
Income Statement Data: | | | | | | | | ||||||||||||||||||||||||||||||
Interest Income
|
| | | $ | 84,101 | | | | | $ | 154,532 | | | | | $ | 123,778 | | | | | $ | 119,602 | | | | | $ | 116,020 | | | | | $ | 131,038 | | |
Interest Expense
|
| | | | 13,105 | | | | | | 19,854 | | | | | | 16,956 | | | | | | 17,968 | | | | | | 26,895 | | | | | | 35,631 | | |
Provision for Loan Losses
|
| | | | 6,084 | | | | | | 8,343 | | | | | | 14,938 | | | | | | 8,879 | | | | | | 10,736 | | | | | | 7,496 | | |
Deposit Service Income
|
| | | | 10,184 | | | | | | 20,112 | | | | | | 15,280 | | | | | | 15,560 | | | | | | 15,433 | | | | | | 15,943 | | |
Net Gain on Sale of Securities Available for Sale
|
| | | | 3,169 | | | | | | 3,660 | | | | | | 2,830 | | | | | | 8,472 | | | | | | 17,966 | | | | | | 11,795 | | |
Noninterest Income
|
| | | | 20,966 | | | | | | 37,895 | | | | | | 24,489 | | | | | | 35,245 | | | | | | 40,021 | | | | | | 35,322 | | |
Noninterest Expense
|
| | | | 55,222 | | | | | | 112,954 | | | | | | 97,704 | | | | | | 81,713 | | | | | | 76,107 | | | | | | 72,348 | | |
Net Income Attributable to Southside Bancshares, Inc.
|
| | | | 24,911 | | | | | | 43,997 | | | | | | 20,833 | | | | | | 41,190 | | | | | | 34,695 | | | | | | 39,133 | | |
Per Share Data: | | | | | | | | ||||||||||||||||||||||||||||||
Earnings Per Common Share: | | | | | | | | ||||||||||||||||||||||||||||||
Basic
|
| | | $ | 0.94 | | | | | $ | 1.65 | | | | | $ | 0.99 | | | | | $ | 1.99 | | | | | $ | 1.65 | | | | | $ | 1.86 | | |
Diluted
|
| | | | 0.94 | | | | | | 1.65 | | | | | | 0.99 | | | | | | 1.99 | | | | | | 1.65 | | | | | | 1.86 | | |
Cash Dividends Paid Per Common
Share |
| | | | 0.47 | | | | | | 1.00 | | | | | | 0.96 | | | | | | 0.91 | | | | | | 1.11 | | | | | | 0.90 | | |
Book Value Per Common Share
|
| | | | 17.99 | | | | | | 16.66 | | | | | | 16.00 | | | | | | 12.51 | | | | | | 12.43 | | | | | | 12.30 | | |
| | |
As of and for
the Six Months Ended June 30, 2016 |
| |
As of and for the Years Ended December 31,
|
| ||||||||||||||||||||||||||||||
| | |
2015
|
| |
2014(1)
|
| |
2013
|
| |
2012
|
| |
2011
|
| |||||||||||||||||||||
| | |
(shares in thousands)
|
| |||||||||||||||||||||||||||||||||
Performance Ratios and Other Data: | | | | | | | | ||||||||||||||||||||||||||||||
Return on Average Assets
|
| | | | 0.99% | | | | | | 0.90% | | | | | | 0.60% | | | | | | 1.22% | | | | | | 1.05% | | | | | | 1.25% | | |
Return on Average Equity
|
| | | | 10.93 | | | | | | 10.04 | | | | | | 7.24 | | | | | | 16.50 | | | | | | 12.83 | | | | | | 16.20 | | |
Return on Average Tangible Common Equity(2)
|
| | | | 14.17 | | | | | | 13.39 | | | | | | 7.99 | | | | | | 18.15 | | | | | | 14.05 | | | | | | 17.95 | | |
Net Interest Margin
|
| | | | 3.43 | | | | | | 3.40 | | | | | | 3.77 | | | | | | 3.69 | | | | | | 3.26 | | | | | | 3.60 | | |
Dividend Payout Ratio(3)
|
| | | | 50.00 | | | | | | 60.61 | | | | | | 96.97 | | | | | | 45.73 | | | | | | 67.27 | | | | | | 48.39 | | |
Tangible Common Equity to Tangible Assets Ratio(2)
|
| | | | 7.60 | | | | | | 6.83 | | | | | | 6.91 | | | | | | 6.93 | | | | | | 7.32 | | | | | | 7.20 | | |
Weighted Average Common Shares Outstanding, Basic(4)
|
| | | | 26,340 | | | | | | 26,621 | | | | | | 21,033 | | | | | | 20,697 | | | | | | 21,069 | | | | | | 21,005 | | |
Weighted Average Common Shares Outstanding, Diluted(4)
|
| | | | 26,434 | | | | | | 26,711 | | | | | | 21,137 | | | | | | 20,741 | | | | | | 21,084 | | | | | | 21,015 | | |
| | |
As of and for
the Six Months Ended June 30, 2016 |
| |
As of and for the Years Ended December 31,
|
| ||||||||||||||||||||||||||||||
| | |
2015
|
| |
2014(1)
|
| |
2013
|
| |
2012
|
| |
2011
|
| |||||||||||||||||||||
| | |
(dollars in thousands)
|
| |||||||||||||||||||||||||||||||||
Return on Average Tangible Common Equity:
|
| | | | | | | ||||||||||||||||||||||||||||||
Net Income Available to Common
Shareholders |
| | | $ | 24,911 | | | | | $ | 43,997 | | | | | $ | 20,833 | | | | | $ | 41,190 | | | | | $ | 34,695 | | | | | $ | 39,133 | | |
After-Tax Amortization Expense
|
| | | | 660 | | | | | | 1,496 | | | | | | 133 | | | | | | 98 | | | | | | 133 | | | | | | 170 | | |
Adjusted Net Income Available to
Common Shareholders |
| | | $ | 25,571 | | | | | $ | 45,493 | | | | | $ | 20,966 | | | | | $ | 41,288 | | | | | $ | 34,828 | | | | | $ | 39,303 | | |
Average Common Equity
|
| | | $ | 458,462 | | | | | $ | 438,427 | | | | | $ | 287,768 | | | | | $ | 249,709 | | | | | $ | 270,358 | | | | | $ | 241,560 | | |
Average Intangible Assets
|
| | | | (97,615) | | | | | | (98,702) | | | | | | (25,377) | | | | | | (22,287) | | | | | | (22,460) | | | | | | (22,574) | | |
Average Tangible Common
Equity |
| | | $ | 360,847 | | | | | $ | 339,725 | | | | | $ | 262,391 | | | | | $ | 227,422 | | | | | $ | 247,898 | | | | | $ | 218,986 | | |
Return on Average Tangible Common Equity
|
| | | | 14.17% | | | | | | 13.39% | | | | | | 7.99% | | | | | | 18.15% | | | | | | 14.05% | | | | | | 17.95% | | |
Tangible Common Equity to Tangible Assets Ratio:
|
| | | | | | | ||||||||||||||||||||||||||||||
Total Shareholders’ Equity
|
| | | $ | 472,300 | | | | | $ | 444,062 | | | | | $ | 425,243 | | | | | $ | 259,518 | | | | | $ | 257,763 | | | | | $ | 258,927 | | |
Goodwill
|
| | | | (91,520) | | | | | | (91,520) | | | | | | (91,372) | | | | | | (22,034) | | | | | | (22,034) | | | | | | (22,034) | | |
Other Intangible Assets, Net
|
| | | | (5,534) | | | | | | (6,548) | | | | | | (8,844) | | | | | | (178) | | | | | | (324) | | | | | | (522) | | |
Tangible Common Equity
|
| | | $ | 375,246 | | | | | $ | 345,994 | | | | | $ | 325,027 | | | | | $ | 237,306 | | | | | $ | 235,405 | | | | | $ | 236,371 | | |
Total Assets
|
| | | $ | 5,035,005 | | | | | $ | 5,162,076 | | | | | $ | 4,807,261 | | | | | $ | 3,445,663 | | | | | $ | 3,237,403 | | | | | $ | 3,303,817 | | |
Goodwill
|
| | | | (91,520) | | | | | | (91,520) | | | | | | (91,372) | | | | | | (22,034) | | | | | | (22,034) | | | | | | (22,034) | | |
Other Intangible Assets, Net
|
| | | | (5,534) | | | | | | (6,548) | | | | | | (8,844) | | | | | | (178) | | | | | | (324) | | | | | | (522) | | |
Tangible Assets
|
| | | $ | 4,937,951 | | | | | $ | 5,064,008 | | | | | $ | 4,707,045 | | | | | $ | 3,423,451 | | | | | $ | 3,215,045 | | | | | $ | 3,281,261 | | |
Total Shareholders’ Equity to Total
Assets Ratio |
| | | | 9.38% | | | | | | 8.60% | | | | | | 8.85% | | | | | | 7.53% | | | | | | 7.96% | | | | | | 7.84% | | |
Tangible Common Equity to Tangible Assets
|
| | | | 7.60% | | | | | | 6.83% | | | | | | 6.91% | | | | | | 6.93% | | | | | | 7.32% | | | | | | 7.20% | | |
| | |
As of June 30, 2016
|
| |||||||||
| | |
Actual
|
| |
As Adjusted
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Liabilities and Shareholders’ Equity | | | | ||||||||||
Deposits:
|
| | | ||||||||||
Non-interest bearing
|
| | | $ | 679,831 | | | |
|
| |||
Interest-bearing
|
| | | | 2,890,418 | | | | |||||
Total deposits
|
| | | | 3,570,249 | | | | |||||
Federal funds purchased and repurchase agreements
|
| | | | 11,065 | | | | |||||
FHLB advances
|
| | | | 873,489 | | | | |||||
Subordinated Notes offered hereby
|
| | | | — | | | | | | (1) | | |
Junior subordinated debentures
|
| | | | 60,311 | | | | |||||
Unsettled trades to purchase securities
|
| | | | 11,793 | | | | |||||
Other liabilities
|
| | | | 35,798 | | | | |||||
Total liabilities
|
| | | | 4,562,705 | | | | |||||
Shareholders’ Equity | | | | ||||||||||
Common Stock, $1.25 par value (40,000,000 shares authorized; 29,164,334 shares issued and outstanding, actual and as adjusted)
|
| | | | 36,455 | | | | |||||
Paid-in capital
|
| | | | 458,817 | | | | |||||
Retained earnings
|
| | | | 19,874 | | | | |||||
Treasury stock, at cost (2,913,064 at June 30, 2016, actual and as adjusted)
|
| | | | (47,891) | | | | |||||
Accumulated other comprehensive income (loss)
|
| | | | 5,045 | | | | |||||
Total Shareholders’ Equity
|
| | | | 472,300 | | | | |||||
Total Liabilities and Shareholders’ Equity
|
| | | $ | 5,035,005 | | | | |||||
Capital adequacy | | | | ||||||||||
Common equity Tier 1 capital ratio
|
| | | | 12.58% | | | | |||||
Tier 1 risk-based capital ratio
|
| | | | 14.47 | | | | |||||
Total risk-based capital ratio
|
| | | | 15.01 | | | | |||||
Tier 1 leverage ratio
|
| | | | 8.60 | | | |
| | |
Six Months
Ended June 30, 2016 |
| |
Year Ended December 31,
|
| ||||||||||||||||||||||||||||||
| | |
2015
|
| |
2014
|
| |
2013
|
| |
2012
|
| |
2011
|
| |||||||||||||||||||||
Ratio of Earnings to Fixed Charges | | | | | | | | ||||||||||||||||||||||||||||||
Excluding interest on deposits
|
| | | | 5.8 | | | | | | 6.2 | | | | | | 3.1 | | | | | | 5.7 | | | | | | 3.6 | | | | | | 3.5 | | |
Including interest on deposits
|
| | | | 3.3 | | | | | | 3.6 | | | | | | 2.1 | | | | | | 3.6 | | | | | | 2.6 | | | | | | 2.4 | | |
Underwriters
|
| |
Amount of
Securities |
| |||
Sandler O’Neill & Partners, L.P.
|
| | | $ | | | |
Brean Capital LLC
|
| | |||||
Total
|
| | | $ | | | |
|
Per Note
|
| | | | % | | |
|
Total
|
| | | $ | | |
| | | | | 1 | | | |
| | | | | 1 | | | |
| | | | | 2 | | | |
| | | | | 3 | | | |
| | | | | 5 | | | |
| | | | | 5 | | | |
| | | | | 6 | | | |
| | | | | 7 | | | |
| | | | | 8 | | | |
| | | | | 9 | | | |
| | | | | 12 | | | |
| | | | | 13 | | | |
| | | | | 21 | | | |
| | | | | 21 | | | |
| | | | | 22 | | | |
| | | | | 23 | | | |
| | | | | 25 | | | |
| | | | | 25 | | |
| | |
As of and for
the Six Months Ended June 30, 2016 |
| |
As of and for the Years Ended December 31,
|
| ||||||||||||||||||||||||||||||
| | |
2015
|
| |
2014(1)
|
| |
2013
|
| |
2012
|
| |
2011
|
| |||||||||||||||||||||
| | |
(in thousands, except per share data)
|
| |||||||||||||||||||||||||||||||||
Balance Sheet Data: | | | | | | | | ||||||||||||||||||||||||||||||
Investment Securities
|
| | | $ | 692,072 | | | | | $ | 752,135 | | | | | $ | 695,529 | | | | | $ | 728,981 | | | | | $ | 618,716 | | | | | $ | 284,452 | | |
Mortgage-backed Securities
|
| | | | 1,509,188 | | | | | | 1,492,653 | | | | | | 1,395,498 | | | | | | 1,115,827 | | | | | | 1,051,898 | | | | | | 1,729,516 | | |
Loans, Net of Allowance for
Loan Losses |
| | | | 2,369,413 | | | | | | 2,412,017 | | | | | | 2,167,841 | | | | | | 1,332,396 | | | | | | 1,242,392 | | | | | | 1,068,690 | | |
Total Assets
|
| | | | 5,035,005 | | | | | | 5,162,076 | | | | | | 4,807,261 | | | | | | 3,445,663 | | | | | | 3,237,403 | | | | | | 3,303,817 | | |
Deposits
|
| | | | 3,570,249 | | | | | | 3,455,407 | | | | | | 3,374,417 | | | | | | 2,527,808 | | | | | | 2,351,897 | | | | | | 2,321,671 | | |
Long-term Obligations
|
| | | | 559,148 | | | | | | 562,592 | | | | | | 660,363 | | | | | | 559,660 | | | | | | 429,408 | | | | | | 321,035 | | |
Shareholders’ Equity
|
| | | | 472,300 | | | | | | 444,062 | | | | | | 425,243 | | | | | | 259,518 | | | | | | 257,763 | | | | | | 258,927 | | |
Income Statement Data: | | | | | | | | ||||||||||||||||||||||||||||||
Interest Income
|
| | | $ | 84,101 | | | | | $ | 154,532 | | | | | $ | 123,778 | | | | | $ | 119,602 | | | | | $ | 116,020 | | | | | $ | 131,038 | | |
Interest Expense
|
| | | | 13,105 | | | | | | 19,854 | | | | | | 16,956 | | | | | | 17,968 | | | | | | 26,895 | | | | | | 35,631 | | |
Provision for Loan Losses
|
| | | | 6,084 | | | | | | 8,343 | | | | | | 14,938 | | | | | | 8,879 | | | | | | 10,736 | | | | | | 7,496 | | |
Deposit Service Income
|
| | | | 10,184 | | | | | | 20,112 | | | | | | 15,280 | | | | | | 15,560 | | | | | | 15,433 | | | | | | 15,943 | | |
Net Gain on Sale of Securities Available for Sale
|
| | | | 3,169 | | | | | | 3,660 | | | | | | 2,830 | | | | | | 8,472 | | | | | | 17,966 | | | | | | 11,795 | | |
Noninterest Income
|
| | | | 20,966 | | | | | | 37,895 | | | | | | 24,489 | | | | | | 35,245 | | | | | | 40,021 | | | | | | 35,322 | | |
Noninterest Expense
|
| | | | 55,222 | | | | | | 112,954 | | | | | | 97,704 | | | | | | 81,713 | | | | | | 76,107 | | | | | | 72,348 | | |
Net Income Attributable to Southside Bancshares, Inc.
|
| | | | 24,911 | | | | | | 43,997 | | | | | | 20,833 | | | | | | 41,190 | | | | | | 34,695 | | | | | | 39,133 | | |
Per Share Data: | | | | | | | | ||||||||||||||||||||||||||||||
Earnings Per Common Share: | | | | | | | | ||||||||||||||||||||||||||||||
Basic
|
| | | $ | 0.94 | | | | | $ | 1.65 | | | | | $ | 0.99 | | | | | $ | 1.99 | | | | | $ | 1.65 | | | | | $ | 1.86 | | |
Diluted
|
| | | | 0.94 | | | | | | 1.65 | | | | | | 0.99 | | | | | | 1.99 | | | | | | 1.65 | | | | | | 1.86 | | |
Cash Dividends Paid Per
Common Share |
| | | | 0.47 | | | | | | 1.00 | | | | | | 0.96 | | | | | | 0.91 | | | | | | 1.11 | | | | | | 0.90 | | |
Book Value Per Common Share
|
| | | | 17.99 | | | | | | 16.66 | | | | | | 16.00 | | | | | | 12.51 | | | | | | 12.43 | | | | | | 12.30 | | |
| | |
Six Months
Ended June 30, 2016 |
| |
Year Ended December 31,
|
| ||||||||||||||||||||||||||||||
| | |
2015
|
| |
2014
|
| |
2013
|
| |
2012
|
| |
2011
|
| |||||||||||||||||||||
Ratio of Earnings to Fixed Charges | | | | | | | | ||||||||||||||||||||||||||||||
Excluding interest on deposits
|
| | | | 5.8 | | | | | | 6.2 | | | | | | 3.1 | | | | | | 5.7 | | | | | | 3.6 | | | | | | 3.5 | | |
Including interest on deposits
|
| | | | 3.3 | | | | | | 3.6 | | | | | | 2.1 | | | | | | 3.6 | | | | | | 2.6 | | | | | | 2.4 | | |
|
Sole Book Running Manager
|
| |
Joint Lead Manager
|
|