Profile: Southside Bancshares Inc (SBSI.O)
Southside Bancshares, Inc. (Southside), incorporated on August 11, 1982, bank holding company for Southside Bank. The Company offers a range of financial services to individuals, businesses, municipal entities, and nonprofit organizations in the communities that it serves. These services include consumer and commercial loans, deposit accounts, trust services, safe deposit services and brokerage services. As of December 31, 2012, its total assets were $3.24 billion, total loans were $1.26 billion, deposits were $2.35 billion, and total equity was $257.8 million. Its trust services include investment management, administration and advisory services, primarily for individuals and, to a lesser extent, partnerships and corporations. As of December 31, 2012, its trust department managed approximately $758.3 million of trust assets.
The Company operates through 48 banking centers, 19 of which are located in grocery stores, and 13 motor bank facilities. The Company’s 48 branches and 13 motor bank facilities are located in and around Tyler, Longview, Lindale, Gresham, Jacksonville, Bullard, Chandler, Hawkins, Seven Points, Palestine, Forney, Gun Barrel City, Athens, Whitehouse, Fort Worth, Arlington and Austin. In addition, its customers may access various banking services through its 48 automated teller machines (ATMs) and ATMs owned by others, through debit cards, and through its automated telephone, Internet and electronic banking products. These products allow its customers to apply for loans from their computers, access account information and conduct various other transactions from their telephones, smart phones and computers.
The Company’s consumer loan services include 1 to 4 family residential mortgage loans, home equity loans, home improvement loans, automobile loans and other installment loans. Commercial loan services include short-term working capital loans for inventory and accounts receivable, short and medium-term loans for equipment or other business capital expansion, commercial real estate loans and municipal loans. The Company also offers construction loans for 1-4 family residential and commercial real estate.
Substantially all of the Company’s loan originations are made to borrowers who live in and conduct business in the counties in Texas in which it operates, with the exception of municipal loans, which are made almost entirely in Texas, and purchases of automobile loan portfolios throughout the United States. Municipal loans are made to municipalities, counties, school districts, and colleges primarily throughout the state of Texas. Through SFG, it purchases portfolios of automobile loans from a range of lenders throughout the United States. These high yield loans represent existing subprime automobile loans with payment histories that are collateralized by new and used automobiles. As of December 31, 2012, the SFG loans totaled approximately $69.8 million.
Real estate loans represent its greatest concentration of loans. Of the $719.3 million in real estate loans, $368.8 million, or 51.3%, represent loans collateralized by residential dwellings that are primarily owner-occupied. Real estate loans are divided into 1-4 Family Residential Mortgage Loans, Construction Loans and Other. The Other real estate consists of $230.4 million of commercial real estate loans, $4.3 million of loans secured by multi-family properties and $2.1 million of loans secured by farm land. The Company focus its lending efforts primarily on the origination of loans secured by first mortgages on owner-occupied, 1-4 family residences. The Company’s commercial construction loans and construction loans to individuals are collateralized by property located primarily in the market areas it serves.
The Company accounts for debt and equity securities as held-to-maturity (HTM), available-for-sale (AFS) securities and Securities Carried at Fair Value through Income. The Company invests in mortgage-backed and related securities, including mortgage participation certificates, which are insured or guaranteed by United States Government agencies and GSEs and Collateralized Mortgage Obligation (CMOs) and real estate mortgage investment conduits (REMICs). As of December 31, 2012, all of its mortgage-backed securities were collateralized by United States Government agencies (GSEs).
Sources of Funds
The Company offers a range of deposit accounts with a range of interest rates and terms, including savings, money market, interest and noninterest bearing checking accounts and certificates of deposit (CDs). As of December 31, 2012, total brokered CDs issued were $19.5 million.
Southside Bancshares Inc
1201 South Beckham Avenue,
P.O. Box 1079
TYLER TX 75701