Southside Bancshares' 10-K Report – Total Assets $8.3B

Southside Bancshares, Inc. has just released its annual report, offering a comprehensive insight into its financial performance and operations. The Texas-based bank holding company, founded in 1960, provides a wide range of financial services including deposit products, loan portfolio, wealth management, and trust services. As of December 31, 2023, the company's total assets amounted to $8.3 billion, with total deposits reaching $6.1 billion.

The Management’s Discussion and Analysis of Financial Condition and Results of Operations – Balance Sheet Strategy section of the report reveals key insights into the company's investment securities, mortgage-related securities (MBS), and borrowing arrangements. The report states that the net unamortized premium for MBS increased to $9.5 million at December 31, 2023, compared to $1.3 million at December 31, 2022. Additionally, the combined fair value of the available-for-sale (AFS) and held-to-maturity (HTM) securities portfolio at December 31, 2023, was $2.46 billion, representing a net unrealized loss of $177.1 million.

In terms of deposits and borrowed funds, Southside Bancshares, Inc. highlighted that it utilizes deposits and primarily borrowings from Federal Home Loan Bank (FHLB), Federal Reserve Discount Window (FRDW), and Bank Term Funding Program (BTFP) to assist with its funding needs. The report indicates that deposits provide the company with its primary source of funds, with average deposits amounting to $6.1 billion in 2023. Additionally, borrowing arrangements, including FHLB borrowings, repurchase agreements, and borrowings from FRDW and BTFP, increased by $348.0 million, or 92.9%, during 2023 compared to 2022.

The report also sheds light on the company's capital resources and liquidity. It states that Southside Bancshares' total shareholders’ equity at December 31, 2023, increased by 3.7% to $773.3 million, or 9.3% of total assets, compared to $746.0 million, or 9.9% of total assets, at December 31, 2022. The company's Common Equity Tier 1 capital includes common stock and related paid-in capital, net of treasury stock, and retained earnings. Furthermore, the report mentions that Southside Bancshares, Inc. elected to adopt the five-year transition option in accordance with the Current Expected Credit Loss (CECL) guidance.

Today the company's shares have moved -0.6% to a price of $28.79. Check out the company's full 10-K submission here.

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