Southside Bancshares, Inc. (SBSI)

Southside Bancshares, Inc. (NASDAQ: SBSI) Overview

Company Profile:

Detailed History and Background:

Southside Bancshares, Inc. (SBSI) was founded in 1988 in Tyler, Texas, and has been operating as a bank holding company for Southside Bank, N.A. since then. The company has seen steady growth through acquisitions and organic expansion, focusing on East Texas and the Dallas-Fort Worth Metroplex.

Core Business Areas:

• Community Banking: SBSI provides a complete range of banking services to individuals, businesses, professionals, and municipalities through its subsidiary, Southside Bank, N.A. This includes checking and savings accounts, loans, mortgages, treasury management, and wealth management services.
• Mortgage Banking: The company offers residential and commercial mortgage lending services through its wholly-owned subsidiary, SSB Mortgage, LLC.
• Insurance: SBSI also provides insurance products and services through its wholly-owned subsidiary, Southside Insurance Agency, LLC.

Leadership Team and Corporate Structure:

• CEO and President: Lee Ann Whited
• Executive Vice President and Chief Financial Officer: James G. Madison
• Executive Vice President and Chief Banking Officer: J. Mark Lindsey
• Executive Vice President and Chief Credit Officer: Michael S. Edwards
• Senior Vice President and Chief Risk Officer: Robert E. Jackson

Top Products and Market Share:

Top Products:

• Checking and savings accounts
• Loans (commercial and consumer)
• Mortgages
• Treasury management services
• Wealth management services

Market Share:

• U.S. Banking Industry: SBSI holds a small market share in the U.S. banking industry, estimated to be less than 0.1%.
• Texas Banking Industry: In Texas, SBSI has a larger market share, estimated to be around 0.5%.
• Dallas-Fort Worth Metroplex: SBSI has a modest market share in the Dallas-Fort Worth Metroplex, estimated to be around 0.2%.

Comparison to Competitors:

SBSI faces competition from national and regional banks, as well as credit unions and online lenders. While competitors offer similar products and services, SBSI differentiates itself by focusing on personalized customer service and local market expertise.

Total Addressable Market (TAM):

The total addressable market for SBSI is the U.S. banking industry, which has an estimated market size of over $17 trillion in assets.

Financial Performance:

As of Q3 2023, SBSI reported:

• Revenue: $94.6 million
• Net Income: $13.8 million
• Profit Margin: 14.6%
• Earnings per Share (EPS): $0.83

Year-over-Year Performance:

• Revenue has increased by 15% compared to the previous year.
• Net income has increased by 20% compared to the previous year.
• EPS has increased by 21% compared to the previous year.

Financial Health:

SBSI has a strong financial position with a healthy capital adequacy ratio and low non-performing loan ratio. The company has consistently generated positive cash flow and has a manageable debt-to-equity ratio.

Dividends and Shareholder Returns:

Dividend History:

SBSI has a history of paying dividends, with a current dividend yield of 2.8%. The company has increased its dividend payout by 10% in the past year.

Shareholder Returns:

Over the past year, SBSI stock has returned 15% to shareholders, outperforming the S&P 500 index. Over the past five years, the stock has returned 3