X
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Texas
|
75-1848732
|
(State
of incorporation)
|
(I.R.S.
Employer Identification No.)
|
1201
S. Beckham Avenue, Tyler, Texas
|
75701
|
(Address
of Principal Executive Offices)
|
(Zip
Code)
|
Name
of each exchange
|
|
Title
of each class
|
on
which registered
|
COMMON
STOCK, $1.25 PAR VALUE
|
NASDAQ
Global Select Market
|
·
|
banking
or managing or controlling banks;
|
·
|
furnishing
services to or performing services for our subsidiaries;
and
|
·
|
any
activity that the Federal Reserve determines to be so closely related to
banking as to be a proper incident to the business of banking,
including:
|
o
|
factoring
accounts receivable;
|
o
|
making,
acquiring, brokering or servicing loans and usual related
activities;
|
o
|
leasing
personal or real property;
|
o
|
operating
a nonbank depository institution, such as a savings
association;
|
o
|
trust
company functions;
|
o
|
financial
and investment advisory activities;
|
o
|
conducting
discount securities brokerage
activities;
|
o
|
underwriting
and dealing in government obligations and money market
instruments;
|
o
|
providing
specified management consulting and counseling
activities;
|
o
|
performing
selected data processing services and support
services;
|
o
|
acting
as agent or broker in selling credit life insurance and other types of
insurance in connection with credit transactions;
and
|
o
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performing
selected insurance underwriting
activities.
|
Capital
Adequacy Ratios
|
||||||||||||||||
Regulatory
Minimums
|
Regulatory
Minimums
to
be Well-Capitalized
|
Southside
Bancshares, Inc.
|
Southside
Bank
|
|||||||||||||
Risk-based
capital ratios:
|
||||||||||||||||
Tier
1 Capital (1)
|
4.0 | % | 6.0 | % | 16.04 | % | 16.10 | % | ||||||||
Total
risk-based capital (2)
|
8.0 | 10.0 | 17.66 | 17.35 | ||||||||||||
Tier
1 leverage ratio (3)
|
4.0 | 5.0 | 7.48 | 7.51 |
(1)
|
Common
shareholders’ equity excluding unrealized gains or losses on debt
securities available for sale, unrealized gains on equity securities
available for sale and unrealized gains or losses on cash flow hedges, net
of deferred income taxes; plus certain mandatorily redeemable capital
securities, less nonqualifying intangible assets net of applicable
deferred income taxes, and certain nonfinancial equity investments;
computed as a ratio of risk-weighted assets, as defined in the risk-based
capital guidelines.
|
(2)
|
The
sum of Tier 1 capital, a qualifying portion of the allowance for credit
losses, qualifying subordinated debt and qualifying unrealized gains on
available for sale equity securities; computed as a ratio of risk-weighted
assets, as defined in the risk-based capital
guidelines.
|
(3)
|
Tier
1 capital computed as a percentage of fourth quarter average assets less
nonqualifying intangibles and certain nonfinancial equity
investments.
|
·
|
the
federal Truth-In-Lending Act, governing disclosures of credit terms to
consumer borrowers;
|
·
|
the
Home Mortgage Disclosure Act, requiring financial institutions to provide
information to enable the public and public officials to determine whether
a financial institution is fulfilling its obligation to help meet the
housing needs of the community it
serves;
|
·
|
the
Equal Credit Opportunity Act, prohibiting discrimination on the basis of
race, creed or other prohibited factors in extending
credit;
|
·
|
the
Fair Credit Reporting Act, governing the use and provision of information
to credit reporting agencies;
|
·
|
the
Fair Debt Collection Act, governing the manner in which consumer debts may
be collected by collection agencies;
and
|
·
|
the
rules and regulations of the various federal agencies charged with the
responsibility of implementing such federal
laws.
|
·
|
the
Truth in Savings Act and Regulation DD, governing disclosure of deposit
account terms to consumers;
|
·
|
the
Right to Financial Privacy Act, which imposes a duty to maintain
confidentiality of consumer financial records and prescribes procedures
for complying with administrative subpoenas of financial records;
and
|
·
|
the
Electronic Funds Transfer Act and Regulation E issued by the Federal
Reserve Board, which governs automatic deposits to and withdrawals from
deposit accounts and customers’ rights and liabilities arising from the
use of automated teller machines and other electronic banking
services.
|
·
|
total
reported loans for construction, land development and other land represent
100 percent or more of the institutions total capital,
or
|
·
|
total
commercial real estate loans represent 300 percent or more of the
institution’s total capital and the outstanding balance of the
institution’s commercial real estate loan portfolio has increased by
50 percent or more during the prior 36
months.
|
·
|
establishment
of anti-money laundering programs, including adoption of written
procedures, designation of a compliance officer and auditing of the
program;
|
·
|
establishment
of a program specifying procedures for obtaining information from
customers seeking to open new accounts, including verifying the identity
of customers within a reasonable period of
time;
|
·
|
establishment
of enhanced due diligence policies, procedures and controls designed to
detect and report money laundering;
|
·
|
prohibitions
on correspondent accounts for foreign shell banks and compliance with
recordkeeping obligations with respect to correspondent accounts of
foreign banks; and
|
·
|
requirements
that bank regulators consider bank holding company or bank compliance in
connection with merger or acquisition
transactions.
|
·
|
increase
in loan delinquencies;
|
·
|
increases
in nonperforming assets and
foreclosures;
|
·
|
decreases
in demand for our products and services, which could adversely affect our
liquidity position;
|
·
|
decreases
in the value of the collateral securing our loans, especially real estate,
which could reduce customers’ borrowing power;
and
|
·
|
decrease
in the credit quality of our non U.S. Government and non U.S. Agency
investment securities, especially our trust preferred, corporate and
municipal securities, could adversely affect our financial condition and
results of operations.
|
·
|
our
ability to originate loans and obtain
deposits;
|
·
|
net
interest rate spreads and net interest rate
margins;
|
·
|
our
ability to enter into instruments to hedge against interest rate
risk;
|
·
|
the
fair value of our financial assets and liabilities;
and
|
·
|
the
average duration of our loan and mortgage-backed securities
portfolio.
|
·
|
the
ability to develop, maintain and build upon long-term customer
relationships based on top quality service, high ethical standards and
safe, sound assets;
|
·
|
the
ability to expand our market
position;
|
·
|
the
scope, relevance and pricing of products and services offered to meet
customer needs and demands;
|
·
|
the
rate at which we introduce new products and services relative to our
competitors;
|
·
|
customer
satisfaction with our level of service;
and
|
·
|
industry
and general economic trends.
|
·
|
potential
exposure to unknown or contingent liabilities of the target
company;
|
·
|
exposure
to potential asset quality issues of the target
company;
|
·
|
difficulty
and expense of integrating the operations and personnel of the target
company;
|
·
|
potential
disruption to our business;
|
·
|
potential
diversion of our management’s time and
attention;
|
·
|
the
possible loss of key employees and customers of the target
company;
|
·
|
difficulty
in estimating the value of the target company;
and
|
·
|
potential
changes in banking or tax laws or regulations that may affect the target
company.
|
·
|
actual
or anticipated variations in quarterly results of
operations;
|
·
|
recommendations
by securities analysts;
|
·
|
operating
and stock price performance of other companies that investors deem
comparable to us;
|
·
|
news
reports relating to trends, concerns and other issues in the financial
services industry;
|
·
|
perceptions
in the marketplace regarding us and/or our
competitors;
|
·
|
new
technology used, or services offered, by
competitors;
|
·
|
significant
acquisitions or business combinations, strategic partnerships, joint
ventures or capital commitments by or involving us or our
competitors;
|
·
|
failure
to integrate acquisitions or realize anticipated benefits from
acquisitions;
|
·
|
changes
in government regulations; and
|
·
|
geopolitical
conditions such as acts or threats of terrorism or military
conflicts.
|
·
|
Southside
Bank main branch at 1201 South Beckham Avenue, Tyler,
Texas. The executive offices of Southside Bancshares, Inc. are
located at this location;
|
·
|
Southside
Bank Annex at 1211 South Beckham Avenue, Tyler, Texas. The
Southside Bank Annex is directly adjacent to the main bank
building. Human Resources, The Trust Department and other
support areas are located in this
building;
|
·
|
Operations
Annex at 1221 South Beckham Avenue, Tyler, Texas. Various back
office, lending and training facilities and other support areas are
located in this building;
|
·
|
Southside
main branch motor bank facility at 1010 East First Street, Tyler,
Texas;
|
·
|
South
Broadway branch at 6201 South Broadway, Tyler,
Texas;
|
·
|
South
Broadway branch motor bank facility at 6019 South Broadway, Tyler,
Texas;
|
·
|
Downtown
branch at 113 West Ferguson Street, Tyler,
Texas;
|
·
|
Gentry
Parkway branch and motor bank facility at 2121 West Gentry Parkway, Tyler,
Texas;
|
·
|
Longview
main branch and motor bank facility at 2001 Judson Road, Longview,
Texas;
|
·
|
Lindale
main branch and motor bank facility at 2510 South Main Street, Lindale,
Texas;
|
·
|
Whitehouse
main branch and motor bank facility at 901 Highway 110 North, Whitehouse,
Texas;
|
·
|
Jacksonville
main branch and motor bank at 1015 South Jackson Street, Jacksonville,
Texas;
|
·
|
Gun
Barrel City main branch and motor bank facility at 901 West Main, Gun
Barrel City, Texas;
|
·
|
Arlington
branch and motor bank facility at 2831 West Park Row, Arlington,
Texas;
|
·
|
Fort
Worth branch and motor bank facility at 9516 Clifford Street, Fort Worth,
Texas;
|
·
|
47
ATM’s located throughout our market
areas.
|
·
|
one
in Bullard, Texas;
|
·
|
one
in Lindale, Texas;
|
·
|
one
in Flint, Texas;
|
·
|
one
in Whitehouse, Texas;
|
·
|
one
in Chandler, Texas;
|
·
|
one
in Seven Points, Texas;
|
·
|
one
in Palestine, Texas;
|
·
|
one
in Athens, Texas;
|
·
|
one
in Hawkins, Texas;
|
·
|
three
in Longview, Texas;
|
·
|
six
in Tyler, Texas;
|
·
|
Fort
Worth branch and motor bank facility at 701 West Magnolia, Fort Worth,
Texas;
|
·
|
Fort
Worth branch at 707 West Magnolia, Fort Worth,
Texas;
|
·
|
Gresham
loan production office at 16637 FM 2493, Tyler,
Texas;
|
·
|
Forney
loan production office at 413 North McGraw, Forney, Texas;
and
|
·
|
Austin
loan production office at 8200 North Mopac, Suite 130, Austin,
Texas.
|
·
|
1600
East Pioneer Parkway, Suite 300, Arlington,
Texas.
|
Year
Ended
|
1st
Quarter
|
2nd
Quarter
|
3rd
Quarter
|
4th
Quarter
|
||||||||||||
December
31, 2008
|
$ | 23.20 – 18.24 | $ | 24.61 – 18.60 | $ | 25.74 – 15.70 | $ | 24.76 – 19.21 | ||||||||
December
31, 2007
|
$ | 23.33 – 19.92 | $ | 21.32 – 19.99 | $ | 22.65 – 18.22 | $ | 22.47 – 17.72 |
Year
Ended
|
1st
Quarter
|
2nd
Quarter
|
3rd
Quarter
|
4th
Quarter
|
||||||||||||
December
31, 2008
|
$ | 0.12 | $ | 0.13 | $ | 0.16 | $ | 0.19 | ||||||||
December
31, 2007
|
$ | 0.11 | $ | 0.12 | $ | 0.12 | $ | 0.15 |
Period
Ending
|
||||||||||
Index
|
12/31/03
|
12/31/04
|
12/31/05
|
12/31/06
|
12/31/07
|
12/31/08
|
||||
Southside
Bancshares, Inc.
|
100.00
|
132.47
|
125.72
|
171.69
|
146.82
|
182.03
|
||||
Russell
2000
|
100.00
|
118.33
|
123.72
|
146.44
|
144.15
|
95.44
|
||||
Southside
Bancshares Peer Group 2007*
|
100.00
|
116.65
|
123.08
|
136.34
|
113.88
|
113.36
|
||||
Southside
Bancshares Peer Group 2008**
|
100.00
|
118.02
|
125.02
|
138.26
|
120.28
|
121.30
|
||||
*Southside
Bancshares Peer Group 2007 contains the following banks, all of which are
based in Texas: Cullen/Frost Bankers, Inc., First Financial Bankshares,
Inc., International Bancshares Corporation, MetroCorp Bancshares, Inc.,
Prosperity Bancshares, Inc., Sterling Bancshares, Inc., Texas Capital
Bancshares, Inc. and Franklin Bank Corp.
|
||||||||||
**Southside
Bancshares Peer Group 2008 contains the following banks, all of which are
based in Texas: Cullen/Frost Bankers, Inc., First Financial Bankshares,
Inc., International Bancshares Corporation, MetroCorp Bancshares, Inc.,
Prosperity Bancshares, Inc., Sterling Bancshares, Inc., and Texas Capital
Bancshares, Inc.
|
Source
: SNL Financial LC, Charlottesville, VA
|
As
of and For the Years Ended December 31,
|
||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||
(in
thousands, except per share data)
|
||||||||||||||||||||
Balance
Sheet Data:
|
||||||||||||||||||||
Investment
Securities
|
$ | 278,856 | $ | 110,403 | $ | 100,303 | $ | 121,240 | $ | 133,535 | ||||||||||
Mortgage-backed
and Related Securities
|
$ | 1,183,800 | $ | 917,518 | $ | 869,326 | $ | 821,756 | $ | 720,533 | ||||||||||
Loans,
Net of Allowance for Loan Losses
|
$ | 1,006,437 | $ | 951,477 | $ | 751,954 | $ | 673,274 | $ | 617,077 | ||||||||||
Total
Assets
|
$ | 2,700,238 | $ | 2,196,322 | $ | 1,890,976 | $ | 1,783,462 | $ | 1,619,643 | ||||||||||
Deposits
|
$ | 1,556,131 | $ | 1,530,491 | $ | 1,282,475 | $ | 1,110,813 | $ | 940,986 | ||||||||||
Long-term
Obligations
|
$ | 715,800 | $ | 146,558 | $ | 149,998 | $ | 229,032 | $ | 351,287 | ||||||||||
Income
Statement Data:
|
||||||||||||||||||||
Interest
& Deposit Service Income
|
$ | 154,571 | $ | 123,021 | $ | 112,434 | $ | 94,275 | $ | 80,793 | ||||||||||
Net
Income
|
$ | 30,696 | $ | 16,684 | $ | 15,002 | $ | 14,592 | $ | 16,099 | ||||||||||
Per
Share Data:
|
||||||||||||||||||||
Net
Income Per Common Share:
|
||||||||||||||||||||
Basic
|
$ | 2.21 | $ | 1.22 | $ | 1.11 | $ | 1.10 | $ | 1.21 | ||||||||||
Diluted
|
$ | 2.16 | $ | 1.18 | $ | 1.07 | $ | 1.05 | $ | 1.14 | ||||||||||
Cash
Dividends Paid Per Common Share
|
$ | 0.60 | $ | 0.50 | $ | 0.47 | $ | 0.46 | $ | 0.42 |
·
|
general
economic conditions, either globally, nationally, in the State of Texas,
or in the specific markets in which we operate, including, without
limitation, the recent deterioration of the subprime, mortgage, credit and
liquidity markets, which could cause compression of the Company’s net
interest margin, or a decline in the value of the Company’s assets, which
could result in realized losses;
|
·
|
legislation,
regulatory changes or changes in monetary or fiscal policy that adversely
affect the businesses in which we are engaged, including the Federal
Reserve’s actions with respect to interest rates and other regulatory
responses to current economic
conditions;
|
·
|
adverse
changes in the status or financial condition of the Government Sponsored
Enterprises (the “GSEs”) impacting the GSEs’ guarantees or ability to pay
or issue debt;
|
·
|
adverse
changes in the credit portfolio of other U. S. financial institutions
relative to the performance of certain of our investment
securities;
|
·
|
impact
of future legislation and increases in depositors insurance premiums due
to FDIC regulation changes;
|
·
|
economic
or other disruptions caused by acts of terrorism in the United States,
Europe or other areas;
|
·
|
changes
in the interest rate yield curve such as flat, inverted or steep yield
curves, or changes in the interest rate environment that impact interest
margins and may impact prepayments on the mortgage-backed securities
portfolio;
|
·
|
increases
in the Company’s nonperforming
assets;
|
·
|
the
Company’s ability to maintain adequate liquidity to fund its operations
and growth;
|
·
|
failure
of assumptions underlying allowance for loan losses and other
estimates;
|
·
|
unexpected
outcomes of, and the costs associated with, existing or new litigation
involving us;
|
·
|
changes
impacting the leverage strategy;
|
·
|
our
ability to monitor interest rate
risk;
|
·
|
significant
increases in competition in the banking and financial services
industry;
|
·
|
changes
in consumer spending, borrowing and saving
habits;
|
·
|
technological
changes;
|
·
|
our
ability to increase market share and control
expenses;
|
·
|
the
effect of changes in federal or state tax
laws;
|
·
|
the
effect of compliance with legislation or regulatory
changes;
|
·
|
the
effect of changes in accounting policies and
practices;
|
·
|
risks
of mergers and acquisitions including the related time and cost of
implementing transactions and the potential failure to achieve expected
gains, revenue growth or expense
savings;
|
·
|
credit
risks of borrowers, including any increase in those risks due to changing
economic conditions; and
|
·
|
risks
related to loans secured by real estate, including the risk that the value
and marketability of collateral could
decline.
|
COMPOSITION
OF DEPOSITS
|
||||||||||||||
Years
Ended December 31,
|
||||||||||||||
2008
|
2007
|
2006
|
||||||||||||
(dollars
in thousands)
|
||||||||||||||
AVG
BALANCE
|
AVG
YIELD
|
AVG
BALANCE
|
AVG
YIELD
|
AVG
BALANCE
|
AVG
YIELD
|
|||||||||
Noninterest
Bearing Demand Deposits
|
$
|
372,160
|
N/A
|
$
|
328,711
|
N/A
|
$
|
314,241
|
N/A
|
|||||
Interest
Bearing Demand Deposits
|
500,955
|
2.08
|
%
|
414,293
|
3.17
|
%
|
349,375
|
2.73
|
%
|
|||||
Savings
Deposits
|
57,587
|
1.28
|
%
|
52,106
|
1.30
|
%
|
50,764
|
1.27
|
%
|
|||||
Time
Deposits
|
535,921
|
4.05
|
%
|
564,613
|
4.90
|
%
|
467,174
|
4.39
|
%
|
|||||
Total
Deposits
|
$
|
1,466,623
|
2.24
|
%
|
$
|
1,359,723
|
3.05
|
%
|
$
|
1,181,554
|
2.60
|
%
|
AVERAGE
BALANCES AND YIELDS
|
||||||||||||||||||||||||||||||||||||
(dollars
in thousands)
|
||||||||||||||||||||||||||||||||||||
Years
Ended
|
||||||||||||||||||||||||||||||||||||
December
31, 2008
|
December
31, 2007
|
December
31, 2006
|
||||||||||||||||||||||||||||||||||
AVG.
BALANCE
|
INTEREST
|
AVG.
YIELD
|
AVG.
BALANCE
|
INTEREST
|
AVG.
YIELD
|
AVG.
BALANCE
|
INTEREST
|
AVG.
YIELD
|
||||||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||||||||||||||
INTEREST
EARNING ASSETS:
|
||||||||||||||||||||||||||||||||||||
Loans(1)
(2)
|
$ | 983,336 | $ | 75,445 | 7.67 | % | $ | 809,906 | $ | 58,002 | 7.16 | % | $ | 722,252 | $ | 48,397 | 6.70 | % | ||||||||||||||||||
Loans
Held For Sale
|
2,487 | 121 | 4.87 | % | 3,657 | 191 | 5.22 | % | 4,651 | 246 | 5.29 | % | ||||||||||||||||||||||||
Securities:
|
||||||||||||||||||||||||||||||||||||
Inv.
Sec. (Taxable)(4)
|
46,537 | 1,723 | 3.70 | % | 52,171 | 2,580 | 4.95 | % | 54,171 | 2,498 | 4.61 | % | ||||||||||||||||||||||||
Inv.
Sec. (Tax-Exempt)(3)(4)
|
103,608 | 7,074 | 6.83 | % | 43,486 | 3,065 | 7.05 | % | 43,931 | 3,134 | 7.13 | % | ||||||||||||||||||||||||
Mortgage-backed
and related
Sec.(4)
|
1,034,406 | 55,470 | 5.36 | % | 852,880 | 43,767 | 5.13 | % | 891,015 | 44,401 | 4.98 | % | ||||||||||||||||||||||||
Total
Securities
|
1,184,551 | 64,267 | 5.43 | % | 948,537 | 49,412 | 5.21 | % | 989,117 | 50,033 | 5.06 | % | ||||||||||||||||||||||||
FHLB
stock and other
|
||||||||||||||||||||||||||||||||||||
investments,
at cost
|
31,875 | 841 | 2.64 | % | 20,179 | 1,193 | 5.91 | % | 27,969 | 1,409 | 5.04 | % | ||||||||||||||||||||||||
Interest
Earning Deposits
|
1,006 | 22 | 2.19 | % | 769 | 41 | 5.33 | % | 692 | 35 | 5.06 | % | ||||||||||||||||||||||||
Federal
Funds Sold
|
4,039 | 90 | 2.23 | % | 2,933 | 144 | 4.91 | % | 1,148 | 57 | 4.97 | % | ||||||||||||||||||||||||
Total
Interest Earning Assets
|
2,207,294 | 140,786 | 6.38 | % | 1,785,981 | 108,983 | 6.10 | % | 1,745,829 | 100,177 | 5.74 | % | ||||||||||||||||||||||||
NONINTEREST
EARNING ASSETS:
|
||||||||||||||||||||||||||||||||||||
Cash
and Due From Banks
|
45,761 | 42,724 | 42,906 | |||||||||||||||||||||||||||||||||
Bank
Premises and Equipment
|
40,449 | 35,746 | 33,298 | |||||||||||||||||||||||||||||||||
Other
Assets
|
89,473 | 51,968 | 42,716 | |||||||||||||||||||||||||||||||||
Less: Allowance
for Loan Loss
|
(11,318 | ) | (7,697 | ) | (7,231 | ) | ||||||||||||||||||||||||||||||
Total
Assets
|
$ | 2,371,659 | $ | 1,908,722 | $ | 1,857,518 |
(1)
|
Interest
on loans includes fees on loans that are not material in
amount.
|
(2)
|
Interest
income includes taxable-equivalent adjustments of $2,446, $2,289 and
$2,230 for the years ended December 31, 2008, 2007 and 2006,
respectively.
|
(3)
|
Interest
income includes taxable-equivalent adjustments of $2,164, $953 and $995
for the years ended December 31, 2008, 2007 and 2006,
respectively.
|
(4)
|
For
the purpose of calculating the average yield, the average balance of
securities is presented at historical
cost.
|
Note:
|
As
of December 31, 2008, 2007 and 2006, loans totaling $14,289, $2,913 and
$1,333, respectively, were on nonaccrual status. The 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 AND YIELDS
|
||||||||||||||||||||||||||||||||||||
(dollars
in thousands)
|
||||||||||||||||||||||||||||||||||||
Years
Ended
|
||||||||||||||||||||||||||||||||||||
December
31, 2008
|
December
31, 2007
|
December
31, 2006
|
||||||||||||||||||||||||||||||||||
AVG.
BALANCE
|
INTEREST
|
AVG.
YIELD
|
AVG.
BALANCE
|
INTEREST
|
AVG.
YIELD
|
AVG.
BALANCE
|
INTEREST
|
AVG.
YIELD
|
||||||||||||||||||||||||||||
LIABILITIES
AND
SHAREHOLDERS’
EQUITY
|
||||||||||||||||||||||||||||||||||||
INTEREST
BEARING
LIABILITIES:
|
||||||||||||||||||||||||||||||||||||
Savings
Deposits
|
$ | 57,587 | $ | 736 | 1.28 | % | $ | 52,106 | $ | 676 | 1.30 | % | $ | 50,764 | $ | 645 | 1.27 | % | ||||||||||||||||||
Time
Deposits
|
535,921 | 21,727 | 4.05 | % | 564,613 | 27,666 | 4.90 | % | 467,174 | 20,516 | 4.39 | % | ||||||||||||||||||||||||
Interest
Bearing
|
||||||||||||||||||||||||||||||||||||
Demand
Deposits
|
500,955 | 10,428 | 2.08 | % | 414,293 | 13,116 | 3.17 | % | 349,375 | 9,529 | 2.73 | % | ||||||||||||||||||||||||
Total
Interest Bearing
Deposits
|
1,094,463 | 32,891 | 3.01 | % | 1,031,012 | 41,458 | 4.02 | % | 867,313 | 30,690 | 3.54 | % | ||||||||||||||||||||||||
Short-term
Interest
|
||||||||||||||||||||||||||||||||||||
Bearing
Liabilities
|
290,895 | 8,969 | 3.08 | % | 278,002 | 13,263 | 4.77 | % | 376,696 | 16,534 | 4.39 | % | ||||||||||||||||||||||||
Long-term
Interest Bearing
|
||||||||||||||||||||||||||||||||||||
Liabilities-FHLB
Dallas
|
383,677 | 14,454 | 3.77 | % | 95,268 | 4,357 | 4.57 | % | 154,983 | 6,379 | 4.12 | % | ||||||||||||||||||||||||
Long-term
Debt (5)
|
60,311 | 4,049 | 6.71 | % | 35,802 | 2,785 | 7.78 | % | 20,619 | 1,681 | 8.04 | % | ||||||||||||||||||||||||
Total
Interest Bearing
Liabilities
|
1,829,346 | 60,363 | 3.30 | % | 1,440,084 | 61,863 | 4.30 | % | 1,419,611 | 55,284 | 3.89 | % | ||||||||||||||||||||||||
NONINTEREST
BEARING LIABILITIES:
|
||||||||||||||||||||||||||||||||||||
Demand
Deposits
|
372,160 | 328,711 | 314,241 | |||||||||||||||||||||||||||||||||
Other
Liabilities
|
26,497 | 20,997 | 12,403 | |||||||||||||||||||||||||||||||||
Total
Liabilities
|
2,228,003 | 1,789,792 | 1,746,255 | |||||||||||||||||||||||||||||||||
Minority
Interest in SFG
|
487 | 151 | – | |||||||||||||||||||||||||||||||||
SHAREHOLDERS'
EQUITY
|
143,169 | 118,779 | 111,263 | |||||||||||||||||||||||||||||||||
TOTAL
LIABILITIES AND
SHAREHOLDERS'
EQUITY
|
$ | 2,371,659 | $ | 1,908,722 | $ | 1,857,518 | ||||||||||||||||||||||||||||||
NET
INTEREST INCOME
|
$ | 80,423 | $ | 47,120 | $ | 44,893 | ||||||||||||||||||||||||||||||
NET
INTEREST MARGIN ON AVERAGE EARNING ASSETS
|
3.64 | % | 2.64 | % | 2.57 | % | ||||||||||||||||||||||||||||||
NET
INTEREST SPREAD
|
3.08 | % | 1.80 | % | 1.85 | % |
(5)
|
Represents
junior subordinated debentures issued by us to Southside Statutory Trust
III, IV and V in connection with the issuance by Southside Statutory Trust
III of $20 million of trust preferred securities, Southside Statutory
Trust IV of $22.5 million of trust preferred securities, Southside
Statutory Trust V of $12.5 million of trust preferred securities and
junior subordinated debentures issued by FWBS to Magnolia Trust Company I
in connection with the issuance by Magnolia Trust Company I of $3.5
million of trust preferred
securities.
|
Years
Ended December 31,
|
||||||||||||
2008
Compared to 2007
|
||||||||||||
Average
|
Average
|
Increase
|
||||||||||
Volume
|
Yield
|
(Decrease)
|
||||||||||
INTEREST
INCOME:
|
||||||||||||
Loans
(1)
|
$
|
13,085
|
$
|
4,358
|
$
|
17,443
|
||||||
Loans
Held For
Sale
|
(58
|
)
|
(12
|
)
|
(70
|
)
|
||||||
Investment
Securities (Taxable)
|
(258
|
)
|
(599
|
)
|
(857
|
)
|
||||||
Investment
Securities (Tax Exempt) (1)
|
4,108
|
(99
|
)
|
4,009
|
||||||||
Mortgage-backed
Securities
|
9,661
|
2,042
|
11,703
|
|||||||||
FHLB
stock and other investments
|
496
|
(848
|
)
|
(352
|
)
|
|||||||
Interest
Earning
Deposits
|
10
|
(29
|
)
|
(19
|
)
|
|||||||
Federal
Funds
Sold
|
42
|
(96
|
)
|
(54
|
)
|
|||||||
Total
Interest
Income
|
27,086
|
4,717
|
31,803
|
|||||||||
INTEREST
EXPENSE:
|
||||||||||||
Savings
Deposits
|
70
|
(10
|
)
|
60
|
||||||||
Time
Deposits
|
(1,351
|
)
|
(4,588
|
)
|
(5,939
|
)
|
||||||
Interest
Bearing Demand Deposits
|
2,387
|
(5,075
|
)
|
(2,688
|
)
|
|||||||
Short-term
Interest Bearing Liabilities
|
590
|
(4,884
|
)
|
(4,294
|
)
|
|||||||
Long-term
FHLB
Advances
|
10,993
|
(896
|
)
|
10,097
|
||||||||
Long-term
Debt
|
1,689
|
(425
|
)
|
1,264
|
||||||||
Total
Interest
Expense
|
14,378
|
(15,878
|
)
|
(1,500
|
)
|
|||||||
Net
Interest
Income
|
$
|
12,708
|
$
|
20,595
|
$
|
33,303
|
Years
Ended December 31,
|
||||||||||||
2007
Compared to 2006
|
||||||||||||
Average
|
Average
|
Increase
|
||||||||||
Volume
|
Yield
|
(Decrease)
|
||||||||||
INTEREST
INCOME:
|
||||||||||||
Loans
(1)
|
$
|
6,131
|
$
|
3,474
|
$
|
9,605
|
||||||
Loans
Held For
Sale
|
(52
|
)
|
(3
|
)
|
(55
|
)
|
||||||
Investment
Securities (Taxable)
|
(85
|
)
|
167
|
82
|
||||||||
Investment
Securities (Tax Exempt) (1)
|
(32
|
)
|
(37
|
)
|
(69
|
)
|
||||||
Mortgage-backed
Securities
|
(1,934
|
)
|
1,300
|
(634
|
)
|
|||||||
FHLB
stock and other investments
|
(434
|
)
|
218
|
(216
|
)
|
|||||||
Interest
Earning
Deposits
|
4
|
2
|
6
|
|||||||||
Federal
Funds
Sold
|
88
|
(1
|
)
|
87
|
||||||||
Total
Interest
Income
|
3,686
|
5,120
|
8,806
|
|||||||||
INTEREST
EXPENSE:
|
||||||||||||
Savings
Deposits
|
17
|
14
|
31
|
|||||||||
Time
Deposits
|
4,598
|
2,552
|
7,150
|
|||||||||
Interest
Bearing Demand Deposits
|
1,923
|
1,664
|
3,587
|
|||||||||
Short-term
Interest Bearing Liabilities
|
(4,615
|
)
|
1,344
|
(3,271
|
)
|
|||||||
Long-term
FHLB
Advances
|
(2,670
|
)
|
648
|
(2,022
|
)
|
|||||||
Long-term
Debt
|
1,184
|
(80
|
)
|
1,104
|
||||||||
Total
Interest
Expense
|
437
|
6,142
|
6,579
|
|||||||||
Net
Interest
Income
|
$
|
3,249
|
$
|
(1,022
|
)
|
$
|
2,227
|
(1)
|
Interest
yields on loans and securities that are nontaxable for federal income tax
purposes are presented on a taxable equivalent
basis.
|
Years
Ended
|
||||||||||||
December
31,
|
Percent
|
|||||||||||
2008
|
2007
|
Change
|
||||||||||
(dollars
in thousands)
|
||||||||||||
Deposit
services
|
$ | 18,395 | $ | 17,280 | 6.5 | % | ||||||
Gain
on sale of securities available for sale
|
12,334 | 897 | 1,275.0 | % | ||||||||
Gain
on sale of
loans
|
1,757 | 1,922 | (8.6 | %) | ||||||||
Trust
income
|
2,465 | 2,106 | 17.0 | % | ||||||||
Bank
owned life insurance income
|
2,246 | 1,142 | 96.7 | % | ||||||||
Other
|
3,105 | 3,071 | 1.1 | % | ||||||||
Total
noninterest income
|
$ | 40,302 | $ | 26,418 | 52.6 | % |
Years
Ended
|
||||||||||||
December
31,
|
Percent
|
|||||||||||
2008
|
2007
|
Change
|
||||||||||
(dollars
in thousands)
|
||||||||||||
Salaries
and employee benefits
|
$ | 37,228 | $ | 29,361 | 26.8 | % | ||||||
Occupancy
expense
|
5,704 | 4,881 | 16.9 | % | ||||||||
Equipment
expense
|
1,305 | 1,017 | 28.3 | % | ||||||||
Advertising,
travel and entertainment
|
2,097 | 1,812 | 15.7 | % | ||||||||
ATM
and debit card expense
|
1,211 | 1,006 | 20.4 | % | ||||||||
Director
fees
|
674 | 605 | 11.4 | % | ||||||||
Supplies
|
812 | 692 | 17.3 | % | ||||||||
Professional
fees
|
1,864 | 1,268 | 47.0 | % | ||||||||
Postage
|
755 | 662 | 14.0 | % | ||||||||
Telephone
and communications
|
1,050 | 800 | 31.3 | % | ||||||||
FDIC
insurance
|
966 | 285 | 238.9 | % | ||||||||
Other
|
6,828 | 4,896 | 39.5 | % | ||||||||
Total
noninterest expense
|
$ | 60,494 | $ | 47,285 | 27.9 | % |
Years
Ended
|
||||||||||||
December
31,
|
Percent
|
|||||||||||
2007
|
2006
|
Change
|
||||||||||
(dollars
in thousands)
|
||||||||||||
Deposit
services
|
$ | 17,280 | $ | 15,482 | 11.6 | % | ||||||
Gain
on sale of securities available for sale
|
897 | 743 | 20.7 | % | ||||||||
Gain
on sale of
loans
|
1,922 | 1,817 | 5.8 | % | ||||||||
Trust
income
|
2,106 | 1,711 | 23.1 | % | ||||||||
Bank
owned life insurance income
|
1,142 | 1,067 | 7.0 | % | ||||||||
Other
|
3,071 | 2,661 | 15.4 | % | ||||||||
Total
noninterest income
|
$ | 26,418 | $ | 23,481 | 12.5 | % |
Years
Ended
|
||||||||||||
December
31,
|
Percent
|
|||||||||||
2007
|
2006
|
Change
|
||||||||||
(dollars
in thousands)
|
||||||||||||
Salaries
and employee benefits
|
$ | 29,361 | $ | 28,275 | 3.8 | % | ||||||
Occupancy
expense
|
4,881 | 4,777 | 2.2 | % | ||||||||
Equipment
expense
|
1,017 | 899 | 13.1 | % | ||||||||
Advertising,
travel and entertainment
|
1,812 | 1,742 | 4.0 | % | ||||||||
ATM
and debit card expense
|
1,006 | 955 | 5.3 | % | ||||||||
Director
fees
|
605 | 587 | 3.1 | % | ||||||||
Supplies
|
692 | 637 | 8.6 | % | ||||||||
Professional
fees
|
1,268 | 1,386 | (8.5 | %) | ||||||||
Postage
|
662 | 618 | 7.1 | % | ||||||||
Telephone
and communications
|
800 | 723 | 10.7 | % | ||||||||
FDIC
insurance
|
285 | 141 | 102.1 | % | ||||||||
Other
|
4,896 | 4,227 | 15.8 | % | ||||||||
Total
noninterest expense
|
$ | 47,285 | $ | 44,967 | 5.2 | % |
December
31,
|
||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||
(in
thousands)
|
||||||||||||||||||||
Real
Estate Loans:
|
||||||||||||||||||||
Construction
|
$ | 120,153 | $ | 107,397 | $ | 39,588 | $ | 35,765 | $ | 32,877 | ||||||||||
1-4
Family Residential
|
238,693 | 237,979 | 227,354 | 199,812 | 168,784 | |||||||||||||||
Other
|
184,629 | 200,148 | 181,047 | 162,147 | 153,998 | |||||||||||||||
Commercial
Loans
|
165,558 | 154,171 | 118,962 | 91,456 | 80,808 | |||||||||||||||
Municipal
Loans
|
134,986 | 112,523 | 106,155 | 109,003 | 103,963 | |||||||||||||||
Loans
to Individuals
|
178,530 | 149,012 | 86,041 | 82,181 | 83,589 | |||||||||||||||
Total
Loans
|
$ | 1,022,549 | $ | 961,230 | $ | 759,147 | $ | 680,364 | $ | 624,019 |
Due
in One
|
After
One but
|
|||||||||||
Year
or
|
within
Five
|
After
Five
|
||||||||||
Less*
|
Years
|
Years
|
||||||||||
(in
thousands)
|
||||||||||||
Real
Estate Loans –
Construction
|
$ | 57,564 | $ | 20,208 | $ | 42,381 | ||||||
Real
Estate Loans – 1-4 Family Residential
|
53,414 | 75,074 | 110,205 | |||||||||
Real
Estate Loans –
Other
|
42,945 | 59,744 | 81,940 | |||||||||
Commercial
Loans
|
93,466 | 64,190 | 7,902 | |||||||||
Municipal
Loans
|
9,203 | 25,821 | 99,962 | |||||||||
Loans
to
Individuals
|
70,207 | 102,022 | 6,301 | |||||||||
Total
Loans
|
$ | 326,799 | $ | 347,059 | $ | 348,691 |
Loans
with Maturities After
|
|||||
One
Year for Which:
|
Interest
Rates are Fixed or Predetermined
|
$ | 396,986 | ||
Interest
Rates are Floating or Adjustable
|
$ | 298,764 |
|
*
|
The
volume of commercial loans due within one year reflects our general policy
of attempting to limit a majority of these loans to a short-term
maturity. Nonaccrual loans totaling $14.3 million are reflected
in the due after five years column.
|
Years
Ended December 31,
|
||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||
(dollars
in thousands)
|
||||||||||||||||||||
Average
Net Loans
Outstanding
|
$ | 983,336 | $ | 809,906 | $ | 722,252 | $ | 657,938 | $ | 604,658 | ||||||||||
Balance
of Allowance for Loan Losses at Beginning of Period
|
$ | 9,753 | $ | 7,193 | $ | 7,090 | $ | 6,942 | $ | 6,414 | ||||||||||
Loan
Charge-Offs:
|
||||||||||||||||||||
Real
Estate-Construction
|
(111 | ) | – | – | – | – | ||||||||||||||
Real
Estate-1-4 Family
Residential
|
(11 | ) | (33 | ) | (59 | ) | (36 | ) | (142 | ) | ||||||||||
Real
Estate-Other
|
– | (7 | ) | (18 | ) | (53 | ) | (3 | ) | |||||||||||
Commercial
Loans
|
(505 | ) | (95 | ) | (245 | ) | (438 | ) | (375 | ) | ||||||||||
Loans
to
Individuals
|
(8,570 | ) | (2,612 | ) | (2,650 | ) | (2,469 | ) | (523 | ) | ||||||||||
Total
Loan
Charge-Offs
|
(9,197 | ) | (2,747 | ) | (2,972 | ) | (2,996 | ) | (1,043 | ) | ||||||||||
Recovery
of Loans Previously Charged-off:
|
||||||||||||||||||||
Real
Estate-Construction
|
– | – | – | – | – | |||||||||||||||
Real
Estate-1-4 Family
Residential
|
1 | 30 | 7 | 20 | – | |||||||||||||||
Real
Estate-Other
|
6 | 10 | – | – | 27 | |||||||||||||||
Commercial
Loans
|
32 | 98 | 87 | 54 | 323 | |||||||||||||||
Loans
to
Individuals
|
1,842 | 1,909 | 1,901 | 1,607 | 296 | |||||||||||||||
Total
Recovery of Loans Previously Charged-Off
|
1,881 | 2,047 | 1,995 | 1,681 | 646 | |||||||||||||||
Net
Loan
Charge-Offs
|
(7,316 | ) | (700 | ) | (977 | ) | (1,315 | ) | (397 | ) | ||||||||||
Allowance
for Loan Losses
Acquired
|
– | 909 | – | – | – | |||||||||||||||
Provision
for Loan
Losses
|
13,675 | 2,351 | 1,080 | 1,463 | 925 | |||||||||||||||
Balance
of Allowance for Loan Losses at End of Period
|
$ | 16,112 | $ | 9,753 | $ | 7,193 | $ | 7,090 | $ | 6,942 | ||||||||||
Reserve
for Unfunded Loan Commitments at Beginning of Period
|
$ | 50 | $ | – | $ | – | $ | – | $ | – | ||||||||||
Provision
for Losses on Unfunded Loan Commitments
|
(43 | ) | 50 | – | – | – | ||||||||||||||
Reserve
for Unfunded Loan Commitments at End of Period
|
$ | 7 | $ | 50 | $ | – | $ | – | $ | – | ||||||||||
Ratio
of Net Charge-Offs to Average Net Loans Outstanding
|
0.74 | % | 0.09 | % | 0.14 | % | 0.20 | % | 0.07 | % |
Years
Ended December 31,
|
||||||||||||||||||||||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||||||||||||||||||||||
Percent
|
Percent
|
Percent
|
Percent
|
Percent
|
||||||||||||||||||||||||||||||||||||
of
|
of
|
of
|
of
|
of
|
||||||||||||||||||||||||||||||||||||
Loans
|
Loans
|
Loans
|
Loans
|
Loans
|
||||||||||||||||||||||||||||||||||||
to
Total
|
to
Total
|
to
Total
|
to
Total
|
to
Total
|
||||||||||||||||||||||||||||||||||||
Amount
|
Loans
|
Amount
|
Loans
|
Amount
|
Loans
|
Amount
|
Loans
|
Amount
|
Loans
|
|||||||||||||||||||||||||||||||
Real
Estate
|
||||||||||||||||||||||||||||||||||||||||
Construction
|
$ | 2,757 | 11.7 | % | $ | 1,031 | 11.2 | % | $ | 366 | 5.2 | % | $ | 329 | 5.3 | % | $ | 518 | 5.3 | % | ||||||||||||||||||||
1-4
Family
Residential
|
1,567 | 23.3 | % | 1,313 | 24.8 | % | 1,221 | 30.0 | % | 1,101 | 29.4 | % | 909 | 27.0 | % | |||||||||||||||||||||||||
Other
|
2,701 | 18.1 | % | 2,594 | 20.8 | % | 2,327 | 23.8 | % | 2,397 | 23.8 | % | 2,186 | 24.6 | % | |||||||||||||||||||||||||
Commercial
Loans
|
2,496 | 16.2 | % | 2,126 | 16.0 | % | 1,536 | 15.7 | % | 1,482 | 13.4 | % | 1,485 | 13.0 | % | |||||||||||||||||||||||||
Municipal
Loans
|
341 | 13.2 | % | 277 | 11.7 | % | 262 | 14.0 | % | 269 | 16.0 | % | 318 | 16.7 | % | |||||||||||||||||||||||||
Loans
to Individuals
|
6,206 | 17.5 | % | 2,391 | 15.5 | % | 1,394 | 11.3 | % | 1,498 | 12.1 | % | 1,516 | 13.4 | % | |||||||||||||||||||||||||
Unallocated
|
44 | 0.0 | % | 21 | 0.0 | % | 87 | 0.0 | % | 14 | 0.0 | % | 10 | 0.0 | % | |||||||||||||||||||||||||
Ending
Balance
|
$ | 16,112 | 100.0 | % | $ | 9,753 | 100.0 | % | $ | 7,193 | 100.0 | % | $ | 7,090 | 100.0 | % | $ | 6,942 | 100.0 | % |
NONPERFORMING
ASSETS
|
||||||||||||||||||||
Years
Ended December 31,
|
||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||
(dollars
in thousands)
|
||||||||||||||||||||
Loans
90 Days Past Due:
|
||||||||||||||||||||
Real
Estate
|
$ | 404 | $ | 286 | $ | 64 | $ | 912 | $ | 785 | ||||||||||
Loans
to Individuals
|
53 | 114 | 64 | 33 | 22 | |||||||||||||||
Commercial
|
136 | – | – | – | 20 | |||||||||||||||
593 | 400 | 128 | 945 | 827 | ||||||||||||||||
Loans
on Nonaccrual:
|
||||||||||||||||||||
Real
Estate
|
7,469 | 636 | 975 | 970 | 753 | |||||||||||||||
Loans
to Individuals
|
5,976 | 2,119 | 262 | 381 | 432 | |||||||||||||||
Commercial
|
844 | 158 | 96 | 380 | 1,063 | |||||||||||||||
14,289 | 2,913 | 1,333 | 1,731 | 2,248 | ||||||||||||||||
Restructured
Loans:
|
||||||||||||||||||||
Real
Estate
|
91 | 94 | 97 | 99 | 102 | |||||||||||||||
Loans
to Individuals
|
39 | 120 | 105 | 127 | 85 | |||||||||||||||
Commercial
|
18 | 11 | 18 | – | 6 | |||||||||||||||
148 | 225 | 220 | 226 | 193 | ||||||||||||||||
Total
Nonperforming Loans
|
15,030 | 3,538 | 1,681 | 2,902 | 3,268 | |||||||||||||||
Other
Real Estate Owned
|
318 | 153 | 351 | 145 | 214 | |||||||||||||||
Repossessed
Assets
|
433 | 255 | 78 | 10 | 41 | |||||||||||||||
Total
Nonperforming Assets
|
$ | 15,781 | $ | 3,946 | $ | 2,110 | $ | 3,057 | $ | 3,523 | ||||||||||
Percentage
of Total Assets
|
0.58 | % | 0.18 | % | 0.11 | % | 0.17 | % | 0.22 | % | ||||||||||
Percentage
of Loans and Leases,
|
||||||||||||||||||||
Net
of Unearned Discount
|
1.54 | % | 0.41 | % | 0.28 | % | 0.45 | % | 0.56 | % |
Valuation
|
Carrying
|
|||||||||||
Total
|
Allowance
|
Value
|
||||||||||
Real
Estate Loans
|
$ | 7,469 | $ | 1,082 | $ | 6,387 | ||||||
Loans
to Individuals
|
6,003 | 2,259 | 3,744 | |||||||||
Commercial
Loans
|
862 | 171 | 691 | |||||||||
Balance
at December 31, 2008
|
$ | 14,334 | $ | 3,512 | $ | 10,822 |
Valuation
|
Carrying
|
|||||||||||
Total
|
Allowance
|
Value
|
||||||||||
Real
Estate Loans
|
$ | 636 | $ | 92 | $ | 544 | ||||||
Loans
to Individuals
|
2,230 | 396 | 1,834 | |||||||||
Commercial
Loans
|
170 | 65 | 105 | |||||||||
Balance
at December 31, 2007
|
$ | 3,036 | $ | 553 | $ | 2,483 |
|
·
|
Held
to Maturity (“HTM”). Debt securities that management has the
current intent and ability to hold until maturity are classified as HTM
and are carried at their remaining unpaid principal balance, net of
unamortized premiums or unaccreted discounts. Premiums are
amortized and discounts are accreted using the level interest yield method
over the estimated remaining term of the underlying
security.
|
|
·
|
Available
for Sale (“AFS”). Debt and equity securities that will be held
for indefinite periods of time, including securities that may be sold in
response to changes in market interest or prepayment rates, needs for
liquidity and changes in the availability of and the yield of alternative
investments are classified as AFS. These assets are carried at
market value. Market value is determined using quoted market
prices, where available. If quoted market prices are not
available, fair values are based on quoted market prices for similar
securities or estimates from independent pricing
services. Unrealized gains and losses on AFS securities are
excluded from earnings and reported net of tax as a separate component of
shareholders' equity until
realized.
|
December
31,
|
||||||||||||
Available
for Sale:
|
2008
|
2007
|
2006
|
|||||||||
(in
thousands)
|
||||||||||||
Investment
Securities:
|
||||||||||||
U.S.
Treasury
|
$ | 5,031 | $ | 4,886 | $ | 26,383 | ||||||
Government
Sponsored Enterprise Debentures
|
60,551 | 31,759 | 9,923 | |||||||||
State
and Political
Subdivisions
|
211,594 | 66,244 | 55,135 | |||||||||
Other
Stocks and
Bonds
|
1,202 | 7,039 | 7,511 | |||||||||
Mortgage-backed
Securities:
|
||||||||||||
U.S.
Government
Agencies
|
168,299 | 89,720 | 71,399 | |||||||||
Government
Sponsored
Enterprises
|
858,214 | 633,060 | 564,650 | |||||||||
Other
Private
Issues
|
– | 4,773 | 7,115 | |||||||||
Total
|
$ | 1,304,891 | $ | 837,481 | $ | 742,116 |
December
31,
|
||||||||||||
Held
to Maturity:
|
2008
|
2007
|
2006
|
|||||||||
(in
thousands)
|
||||||||||||
Investment
Securities:
|
||||||||||||
Other
Stocks and
Bonds
|
$ | 478 | $ | 475 | $ | 1,351 | ||||||
Mortgage-backed
Securities:
|
||||||||||||
U.S.
Government
Agencies
|
22,778 | 25,965 | 30,788 | |||||||||
Government
Sponsored
Enterprises
|
134,509 | 164,000 | 195,374 | |||||||||
Total
|
$ | 157,765 | $ | 190,440 | $ | 227,513 |
MATURING
|
||||||||||||||||||
Within
1 Year
|
After
1 But
Within
5 Years
|
After
5 But
Within
10 Years
|
After
10 Years
|
|||||||||||||||
Available
For Sale:
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
||||||||||
(dollars
in thousands)
|
||||||||||||||||||
Investment
Securities:
|
||||||||||||||||||
U.S.
Treasury
|
$
|
5,031
|
1.02
|
%
|
$
|
–
|
–
|
$
|
–
|
–
|
$
|
–
|
–
|
|||||
Government
Sponsored Enterprise Debentures
|
60,551
|
0.93
|
%
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||
State
and Political Subdivisions
|
2,161
|
5.84
|
%
|
13,953
|
6.42
|
%
|
22,616
|
6.30
|
%
|
172,864
|
6.89
|
%
|
||||||
Other
Stocks and Bonds
|
–
|
–
|
–
|
–
|
–
|
–
|
1,202
|
23.96
|
%
|
|||||||||
Mortgage-backed
Securities:
|
||||||||||||||||||
U.S.
Government Agencies
|
–
|
–
|
–
|
–
|
6,691
|
4.71
|
%
|
161,608
|
5.96
|
%
|
||||||||
Government
Sponsored Enterprises
|
214
|
5.12
|
%
|
8,155
|
4.99
|
%
|
101,188
|
5.10
|
%
|
748,657
|
5.66
|
%
|
||||||
Total
|
$
|
67,957
|
1.11
|
%
|
$
|
22,108
|
5.89
|
%
|
$
|
130,495
|
5.29
|
%
|
$
|
1,084,331
|
5.92
|
%
|
MATURING
|
||||||||||||||||||
Within
1 Year
|
After
1 But
Within
5 Years
|
After
5 But
Within
10 Years
|
After
10 Years
|
|||||||||||||||
Held
to Maturity:
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
||||||||||
(dollars
in thousands)
|
||||||||||||||||||
Investment
Securities:
|
||||||||||||||||||
Other
Stocks and Bonds
|
$
|
–
|
–
|
|
$
|
–
|
–
|
$
|
–
|
–
|
$
|
478
|
6.78
|
%
|
||||
Mortgage-backed
Securities:
|
||||||||||||||||||
U.S.
Government Agencies
|
–
|
–
|
|
–
|
–
|
4,233
|
4.92
|
%
|
18,545
|
4.99
|
%
|
|||||||
Government
Sponsored Enterprises
|
–
|
–
|
|
19,202
|
4.44
|
%
|
75,552
|
4.87
|
%
|
39,755
|
5.32
|
%
|
||||||
Total
|
$
|
–
|
–
|
|
$
|
19,202
|
4.44
|
%
|
$
|
79,785
|
4.87
|
%
|
$
|
58,778
|
5.23
|
%
|
Years
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(in
thousands)
|
||||||||||||
Noninterest
Bearing Demand
Deposits
|
$ | 390,823 | $ | 357,083 | $ | 325,771 | ||||||
Interest
Bearing Demand
Deposits
|
552,532 | 498,221 | 382,265 | |||||||||
Savings
Deposits
|
60,852 | 52,975 | 50,454 | |||||||||
Time
Deposits
|
551,924 | 622,212 | 523,985 | |||||||||
Total
Deposits
|
$ | 1,556,131 | $ | 1,530,491 | $ | 1,282,475 |
December
31, 2008
|
December
31, 2007
|
|||||||||||||||||||||||
Time
Certificates of Deposit
|
Other
Time Deposits
|
Total
|
Time
Certificates of Deposit
|
Other
Time Deposits
|
Total
|
|||||||||||||||||||
(in
thousands)
|
||||||||||||||||||||||||
Three
months or
less
|
$ | 90,813 | $ | 27,900 | $ | 118,713 | $ | 79,461 | $ | 21,000 | $ | 100,461 | ||||||||||||
Over
three to six
months
|
58,120 | 18,000 | 76,120 | 44,919 | 21,000 | 65,919 | ||||||||||||||||||
Over
six to twelve months
|
47,139 | 7,000 | 54,139 | 46,458 | 7,000 | 53,458 | ||||||||||||||||||
Over
twelve
months
|
39,075 | – | 39,075 | 37,257 | – | 37,257 | ||||||||||||||||||
Total
|
$ | 235,147 | $ | 52,900 | $ | 288,047 | $ | 208,095 | $ | 49,000 | $ | 257,095 |
Years
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(dollars
in thousands)
|
||||||||||||
Federal
funds purchased and repurchase agreements
|
||||||||||||
Balance
at end of
period
|
$
|
10,629
|
$
|
7,023
|
$
|
5,675
|
||||||
Average
amount outstanding during the period (1)
|
11,789
|
4,519
|
8,727
|
|||||||||
Maximum
amount outstanding during the period (3)
|
16,432
|
10,250
|
13,775
|
|||||||||
Weighted
average interest rate during the period (2)
|
3.7
|
%
|
5.3
|
%
|
5.2
|
%
|
||||||
Interest
rate at end of
period
|
3.8
|
%
|
4.7
|
%
|
5.5
|
%
|
||||||
FHLB
advances
|
||||||||||||
Balance
at end of
period
|
$
|
229,385
|
$
|
353,792
|
$
|
322,241
|
||||||
Average
amount outstanding during the period (1)
|
278,164
|
272,711
|
367,068
|
|||||||||
Maximum
amount outstanding during the period (3)
|
367,823
|
383,059
|
396,416
|
|||||||||
Weighted
average interest rate during the period (2)
|
3.1
|
%
|
4.8
|
%
|
4.4
|
%
|
||||||
Interest
rate at end of
period
|
2.6
|
%
|
4.1
|
%
|
4.7
|
%
|
||||||
Other
obligations
|
||||||||||||
Balance
at end of
period
|
$
|
1,857
|
$
|
2,500
|
$
|
1,605
|
||||||
Average
amount outstanding during the period (1)
|
942
|
772
|
901
|
|||||||||
Maximum
amount outstanding during the period (3)
|
2,500
|
2,500
|
2,500
|
|||||||||
Weighted
average interest rate during the period (2)
|
1.6
|
%
|
5.0
|
%
|
4.8
|
%
|
||||||
Interest
rate at end of
period
|
–
|
3.6
|
%
|
5.0
|
%
|
(1)
|
The
average amount outstanding during the period was computed by dividing the
total daily outstanding principal balances by the number of days in the
period.
|
(2)
|
The
weighted average interest rate during the period was computed by dividing
the actual interest expense by the average balance outstanding during the
period.
|
(3)
|
The
maximum amount outstanding at any month-end during the
period.
|
December
31,
|
December
31,
|
|||||||
2008
|
2007
|
|||||||
(in
thousands)
|
||||||||
Federal
Home Loan Bank Advances (1)
|
||||||||
Varying
maturities to
2017
|
$ | 655,489 | $ | 86,247 | ||||
Long-term
Debt (2)
|
||||||||
Southside
Statutory Trust III Due 2033 (3)
|
20,619 | 20,619 | ||||||
Southside
Statutory Trust IV Due 2037 (4)
|
23,196 | 23,196 | ||||||
Southside
Statutory Trust V Due 2037 (5)
|
12,887 | 12,887 | ||||||
Magnolia
Trust Company I Due 2035 (6)
|
3,609 | 3,609 | ||||||
Total
Long-term
Debt
|
60,311 | 60,311 | ||||||
Total
Long-term
Obligations
|
$ | 715,800 | $ | 146,558 |
|
(2)
|
This
long-term debt consists of trust preferred securities that qualify under
the risk-based capital guidelines as Tier 1 capital, subject to certain
limitations.
|
|
(3)
|
This
debt carries an adjustable rate of 4.39875% through March 30, 2009 and
adjusts quarterly at a rate equal to three-month LIBOR plus 294 basis
points.
|
|
(4)
|
This
debt carries a fixed rate of 6.518% through October 30, 2012 and
thereafter, adjusts quarterly at a rate equal to three-month LIBOR plus
130 basis points.
|
|
(5)
|
This
debt carries a fixed rate of 7.48% through December 15, 2012 and
thereafter, adjusts quarterly at a rate equal to three-month LIBOR plus
225 basis points.
|
|
(6)
|
This
debt carries an adjustable rate of 3.953% through February 22, 2009 and
adjusts quarterly at a rate equal to three-month LIBOR plus 180 basis
points.
|
To
Be Well
|
||||||||||||||||||||||||
Capitalized
Under
|
||||||||||||||||||||||||
For
Capital Adequacy
|
Prompt
Corrective
|
|||||||||||||||||||||||
Actual
|
Purposes
|
Action
Provisions
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
As
of December 31, 2008:
|
(dollars
in thousands)
|
|||||||||||||||||||||||
Total
Capital (to Risk Weighted Assets)
|
||||||||||||||||||||||||
Consolidated
|
$ | 212,082 | 17.66 | % | $ | 96,097 | 8.00 | % | N/A | N/A | ||||||||||||||
Southside
Bank
Only
|
$ | 208,394 | 17.35 | % | $ | 96,067 | 8.00 | % | $ | 120,084 | 10.00 | % | ||||||||||||
Tier
1 Capital (to Risk Weighted Assets)
|
||||||||||||||||||||||||
Consolidated
|
$ | 192,615 | 16.04 | % | $ | 48,049 | 4.00 | % | N/A | N/A | ||||||||||||||
Southside
Bank
Only
|
$ | 193,370 | 16.10 | % | $ | 48,033 | 4.00 | % | $ | 72,050 | 6.00 | % | ||||||||||||
Tier
1 Capital (to Average Assets) (1)
|
||||||||||||||||||||||||
Consolidated
|
$ | 192,615 | 7.48 | % | $ | 103,036 | 4.00 | % | N/A | N/A | ||||||||||||||
Southside
Bank
Only
|
$ | 193,370 | 7.51 | % | $ | 102,960 | 4.00 | % | $ | 128,700 | 5.00 | % | ||||||||||||
As
of December 31, 2007:
|
(dollars
in thousands)
|
|||||||||||||||||||||||
Total
Capital (to Risk Weighted Assets)
|
||||||||||||||||||||||||
Consolidated
|
$ | 182,148 | 17.02 | % | $ | 85,603 | 8.00 | % | N/A | N/A | ||||||||||||||
Southside
Bank
Only
|
$ | 157,854 | 16.41 | % | $ | 76,936 | 8.00 | % | $ | 96,170 | 10.00 | % | ||||||||||||
Fort
Worth National Bank Only
|
$ | 16,745 | 15.51 | % | $ | 8,639 | 8.00 | % | $ | 10,798 | 10.00 | % | ||||||||||||
Tier
1 Capital (to Risk Weighted Assets)
|
||||||||||||||||||||||||
Consolidated
|
$ | 159,690 | 14.92 | % | $ | 42,802 | 4.00 | % | N/A | N/A | ||||||||||||||
Southside
Bank
Only
|
$ | 149,099 | 15.50 | % | $ | 38,468 | 4.00 | % | $ | 57,702 | 6.00 | % | ||||||||||||
Fort
Worth National Bank Only
|
$ | 15,697 | 14.54 | % | $ | 4,319 | 4.00 | % | $ | 6,479 | 6.00 | % | ||||||||||||
Tier
1 Capital (to Average Assets) (1)
|
||||||||||||||||||||||||
Consolidated
|
$ | 159,690 | 7.73 | % | $ | 82,625 | 4.00 | % | N/A | N/A | ||||||||||||||
Southside
Bank
Only
|
$ | 149,099 | 7.67 | % | $ | 77,797 | 4.00 | % | $ | 97,246 | 5.00 | % | ||||||||||||
Fort
Worth National Bank Only
|
$ | 15,697 | 13.13 | % | $ | 4,783 | 4.00 | % | $ | 5,979 | 5.00 | % |
Years
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Return
on Average
Assets
|
1.29
|
%
|
0.87
|
%
|
0.81
|
%
|
||||||
Return
on Average Shareholders' Equity
|
21.44
|
%
|
14.05
|
%
|
13.48
|
%
|
||||||
Dividend
Payout Ratio -
Basic
|
27.15
|
%
|
40.98
|
%
|
42.34
|
%
|
||||||
Dividend
Payout Ratio -
Diluted
|
27.78
|
%
|
42.37
|
%
|
43.93
|
%
|
||||||
Average
Shareholders' Equity to Average Total Assets
|
6.04
|
%
|
6.22
|
%
|
5.99
|
%
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
Unused
commitments:
|
||||||||
Due
in one year or
less
|
$ | 77,789 | $ | 96,264 | ||||
Due
after one
year
|
59,214 | 30,954 | ||||||
Total
|
$ | 137,003 | $ | 127,218 |
Payments
Due By Period
|
||||||||||||||||||||
Less
than 1 Year
|
1-3
Years
|
3-5
Years
|
More
than 5 Years
|
Total
|
||||||||||||||||
Contractual
obligations:
|
(in
thousands)
|
|||||||||||||||||||
Long-term
debt, including current maturities (1)
|
$ | – | $ | – | $ | – | $ | 60,311 | $ | 60,311 | ||||||||||
FHLB
advances
(2)
|
226,518 | 331,691 | 318,522 | 8,143 | 884,874 | |||||||||||||||
Operating
leases
(3)
|
1,161 | 1,849 | 752 | – | 3,762 | |||||||||||||||
Deferred
compensation agreements (4)
|
891 | 886 | 1,029 | 5,618 | 8,424 | |||||||||||||||
Time
deposits
(5)
|
468,448 | 64,778 | 18,251 | 447 | 551,924 | |||||||||||||||
Securities
purchased not paid
for
|
– | – | – | – | – | |||||||||||||||
Capital
lease
obligations
|
– | – | – | – | – | |||||||||||||||
Purchase
obligations
|
– | – | – | – | – | |||||||||||||||
Total
contractual
obligations
|
$ | 697,018 | $ | 399,204 | $ | 338,554 | $ | 74,519 | $ | 1,509,295 |
·
|
Floating
rate debt of $20.6 million with a scheduled maturity of 2033, that was
indexed to three-month LIBOR and adjusts on a quarterly
basis. The rate of interest for the first quarter of 2009
associated with this debt is
4.39875%.
|
·
|
Floating
rate debt of $3.6 million with a scheduled maturity of 2035, that was
indexed to three-month LIBOR and adjusts on a quarterly
basis. The rate of interest for the first quarter of 2009
associated with this debt is
3.953%.
|
·
|
Debt
of $23.2 million with a scheduled maturity of 2037, which carries a fixed
rate of 6.518% through October 2012 and thereafter adjusts quarterly at a
rate equal to three-month LIBOR plus 130 basis
points.
|
·
|
Debt
of $12.9 million with a scheduled maturity of 2037, which carries a fixed
rate of 7.48% through December 2012 and thereafter adjusts quarterly at a
rate equal to three-month LIBOR plus 225 basis
points.
|
|
The
information required by this item is set forth in Part
IV.
|
|
·
|
pertain
to the maintenance of records that in reasonable detail accurately and
fairly reflect the transactions and dispositions of our
assets;
|
|
·
|
provide
reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted
accounting principles, and that our receipts and expenditures are being
made only in accordance with authorizations of our management and
directors; and
|
|
·
|
provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of our assets that could have
a material effect on the financial
statements.
|
|
1.
|
Financial
Statements
|
|
The
following consolidated financial statements of Southside Bancshares, Inc.
and its subsidiaries are filed as part of this
report.
|
|
Consolidated
Balance Sheets as of December 31, 2008 and
2007.
|
|
Consolidated
Statements of Income for the years ended December 31, 2008, 2007 and
2006.
|
|
Consolidated
Statements of Shareholders’ Equity for the years ended December 31, 2008,
2007 and 2006.
|
|
Consolidated
Statements of Cash Flow for the years ended December 31, 2008, 2007 and
2006.
|
|
Notes
to Consolidated Financial
Statements.
|
|
2.
|
Financial
Statement Schedules
|
|
All
schedules are omitted because they are not applicable or not required, or
because the required information is included in the consolidated financial
statements or notes thereto.
|
|
3.
|
Exhibits
|
Exhibit No.
|
|||
3
(a)(i)
|
–
|
Articles
of Incorporation as amended and in effect on December 31, 1992, of SoBank,
Inc. (now named Southside Bancshares, Inc.) (filed as Exhibit 3 to the
Registrant's Form 10-K for the year ended December 31, 1992, (commission
file number 000-12247) and incorporated herein by
reference).
|
|
3
(a)(ii)
|
–
|
Articles
of Amendment effective May 9, 1994 to Articles of Incorporation of SoBank,
Inc. (now named Southside Bancshares, Inc.) (filed as Exhibit 3(a)(ii) to
the Registrant’s Form 10-K for the year ended December 31, 1994,
(commission file number 000-12247) and incorporated herein by
reference).
|
|
3
(b)
|
–
|
Amended
and Restated Bylaws of Southside Bancshares, Inc. (filed as Exhibit
3(b)
to
the Registrant’s Form 8-K, filed March 5, 2008, and incorporated herein by
reference).
|
|
4
|
–
|
Management
agrees to furnish to the Securities and Exchange Commission, upon request,
a copy of any other agreements or instruments of Southside Bancshares,
Inc. and its subsidiaries defining the rights of holders of any long-term
debt whose authorization does not exceed 10% of total
assets.
|
** 10
(a)(i)
|
–
|
Deferred
Compensation Plan for B. G. Hartley effective February 13, 1984, as
amended June 28, 1990, December 15, 1994, November 20, 1995, December
21,1999 and June 29, 2001 (filed as Exhibit 10(a)(i) to the Registrant’s
Form 10-Q for the quarter ended June 30, 2001, and incorporated herein by
reference).
|
|
** 10
(a)(ii)
|
–
|
Deferred
Compensation Plan for Robbie N. Edmonson effective February 13, 1984,
as amended June 28, 1990 and March 16, 1995 (filed as Exhibit 10(a)(ii) to
the Registrant's Form 10-K for the year ended December 31, 1995, and
incorporated herein by reference).
|
|
10
(a)(iii)
|
–
|
Agreement
and Plan of Merger dated May 17, 2007, as amended, by and among Southside
Bancshares, Inc., Southside Merger Sub, Inc. and FWBS (filed as Exhibit
10(a) to the Registrant’s Form 10-Q for the quarter ended September 30,
2007, and incorporated herein by reference).
|
|
** 10
(b)
|
–
|
Officers
Long-term Disability Income Plan effective June 25, 1990 (filed as Exhibit
10(b) to the Registrant's Form 10-K for the year ended June 30, 1990,
and incorporated herein by reference).
|
|
** 10
(c)
|
–
|
Retirement
Plan Restoration Plan for the subsidiaries of SoBank, Inc. (now named
Southside Bancshares, Inc.) (filed as Exhibit 10(c) to the Registrant's
Form 10-K for the year ended December 31, 1992, and incorporated
herein by reference).
|
|
** 10
(d)
|
–
|
Form
of Deferred Compensation Agreements dated June 30, 1994 with each of Sam
Dawson, Lee Gibson and Jeryl Story as amended October 15, 1997 (filed as
Exhibit 10(f) to the Registrant’s Form 10-K for the year ended December
31, 1997, and incorporated herein by reference).
|
|
** 10
(e)
|
–
|
Split
dollar compensation plan dated October 13, 2004, with Jeryl Wayne Story
(filed as exhibit 10(h) to the Registrant’s Form 8-K, filed October 19,
2004, and incorporated herein by reference).
|
|
** 10
(f)
|
–
|
Split
dollar compensation plan dated September 7, 2004, with Lee R. Gibson, III
(filed as exhibit 10(i) to the Registrant’s Form 8-K, filed October 19,
2004, and incorporated herein by reference).
|
|
** 10
(g)
|
–
|
Split
dollar compensation plan dated August 27, 2004, with B. G. Hartley (filed
as exhibit 10 (j) to the Registrant’s Form 8-K, filed October 19, 2004,
and incorporated herein by reference).
|
|
** 10
(h)
|
–
|
Split
dollar compensation plan dated August 31, 2004, with Charles E. Dawson
(filed as exhibit 10(k) to the Registrant’s Form 8-K, filed October 19,
2004, and incorporated herein by reference).
|
|
** 10
(i)
|
–
|
Employment
agreement dated October 22, 2007, by and between Southside Bank and Lee R.
Gibson (filed as exhibit 10 (l) to the Registrant’s Form 8-K, filed
October 26, 2007, and incorporated herein by
reference).
|
|
**
10 (j)
|
–
|
Employment
agreement dated October 22, 2007, by and between Southside Bank and Sam
Dawson (filed as exhibit 10 (m) to the Registrant’s Form 8-K, filed
October 26, 2007, and incorporated herein by
reference).
|
10
(k)
|
–
|
Master
Software License Maintenance and Services Agreement dated February 4,
2008, by and between Southside Bank and Jack Henry & Associates, Inc.
(filed as Item 1.01 to the Registrant’s Form 8-K, filed February 8, 2008,
and incorporated herein by reference).
|
|
** 10 (l)
|
–
|
Retirement
Agreement dated November 7, 2008, by and between Southside Bank, Southside
Bancshares, Inc. and B. G. Hartley (filed as exhibit 10 (o) to the
Registrant’s Form 10-Q, filed November 7, 2008, and incorporated herein by
reference).
|
|
* 21
|
–
|
Subsidiaries
of the Registrant.
|
|
* 23
|
–
|
Consent
of Independent Registered Public Accounting Firm.
|
|
* 31.1
|
–
|
Certification
Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
|
* 31.2
|
–
|
Certification
Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
|
* 32
|
–
|
Certification
Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
|
*Filed
herewith.
|
|||
**Compensation
plan, benefit plan or employment contract or
arrangement.
|
SOUTHSIDE
BANCSHARES, INC.
|
||
|
||
BY: /s/
|
B.
G. HARTLEY
|
|
B.
G. Hartley, Chairman of the Board
|
||
and
Chief Executive Officer
|
||
(Principal
Executive Officer)
|
||
BY: /s/
|
LEE
R. GIBSON
|
|
Lee
R. Gibson, CPA, Executive Vice President
|
||
and
Chief Financial Officer (Principal Financial
|
||
and
Accounting Officer)
|
||
DATE:
March 3, 2009
|
Signature
|
Title
|
Date
|
|
/s/
|
B.
G. HARTLEY
|
||
(B.
G. Hartley)
|
Chief
Executive Officer,
|
March
3, 2009
|
|
Chairman
of the Board
|
|||
and
Director
|
|||
/s/
|
ROBBIE
N. EDMONSON
|
||
(Robbie
N. Edmonson)
|
Vice
Chairman of the Board
|
March
3, 2009
|
|
and
Director
|
|||
/s/
|
SAM
DAWSON
|
||
(Sam
Dawson)
|
President,
Secretary
|
March
3, 2009
|
|
and
Director
|
|||
/s/
|
HERBERT
C. BUIE
|
||
(Herbert
C. Buie)
|
Director
|
March
3, 2009
|
|
/s/
|
ALTON
CADE
|
||
(Alton
Cade)
|
Director
|
March
3, 2009
|
|
/s/
|
MICHAEL
D. GOLLOB
|
||
(Michael
D. Gollob)
|
Director
|
March
3, 2009
|
|
/s/
|
MELVIN
B. LOVELADY
|
||
(Melvin
B. Lovelady)
|
Director
|
March
3, 2009
|
|
/s/
|
JOE
NORTON
|
||
(Joe
Norton)
|
Director
|
March
3, 2009
|
|
/s/
|
PAUL
W. POWELL
|
||
(Paul
W. Powell)
|
Director
|
March
3, 2009
|
|
/s/
|
WILLIAM
SHEEHY
|
||
(William
Sheehy)
|
Director
|
March
3, 2009
|
SOUTHSIDE
BANCSHARES, INC. AND SUBSIDIARIES
|
||||||||||||
CONSOLIDATED
BALANCE SHEETS
|
||||||||||||
(in
thousands, except share amounts)
|
||||||||||||
December
31, 2008
|
December
31, 2007
|
|||||||||||
ASSETS
|
||||||||||||
Cash
and due from
banks
|
$ | 64,067 | $ | 74,040 | ||||||||
Interest
earning
deposits
|
557 | 1,414 | ||||||||||
Federal
funds
sold
|
2,150 | 550 | ||||||||||
Total
cash and cash
equivalents
|
66,774 | 76,004 | ||||||||||
Investment
securities:
|
||||||||||||
Available
for sale, at estimated fair
value
|
278,378 | 109,928 | ||||||||||
Held
to maturity, at
cost
|
478 | 475 | ||||||||||
Mortgage-backed
and related securities:
|
||||||||||||
Available
for sale, at estimated fair
value
|
1,026,513 | 727,553 | ||||||||||
Held
to maturity, at
cost
|
157,287 | 189,965 | ||||||||||
Federal
Home Loan Bank stock, at
cost
|
39,411 | 19,850 | ||||||||||
Other
investments, at
cost
|
2,065 | 2,069 | ||||||||||
Loans
held for
sale
|
511 | 3,361 | ||||||||||
Loans:
|
||||||||||||
Loans
|
1,022,549 | 961,230 | ||||||||||
Less: allowance
for loan
losses
|
(16,112 | ) | (9,753 | ) | ||||||||
Net
Loans
|
1,006,437 | 951,477 | ||||||||||
Premises
and equipment,
net
|
42,722 | 40,249 | ||||||||||
Goodwill
|
22,034 | 21,639 | ||||||||||
Other
intangible assets,
net
|
1,479 | 1,925 | ||||||||||
Interest
receivable
|
16,352 | 11,784 | ||||||||||
Deferred
tax
asset
|
2,852 | 4,320 | ||||||||||
Other
assets
|
36,945 | 35,723 | ||||||||||
TOTAL
ASSETS
|
$ | 2,700,238 | $ | 2,196,322 | ||||||||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||||||
Deposits:
|
||||||||||||
Noninterest
bearing
|
$ | 390,823 | $ | 357,083 | ||||||||
Interest
bearing
|
1,165,308 | 1,173,408 | ||||||||||
Total
Deposits
|
1,556,131 | 1,530,491 | ||||||||||
Short-term
obligations:
|
||||||||||||
Federal
funds purchased and repurchase
agreements
|
10,629 | 7,023 | ||||||||||
FHLB
advances
|
229,385 | 353,792 | ||||||||||
Other
obligations
|
1,857 | 2,500 | ||||||||||
Total
Short-term
obligations
|
241,871 | 363,315 | ||||||||||
Long-term
obligations:
|
||||||||||||
FHLB
advances
|
655,489 | 86,247 | ||||||||||
Long-term
debt
|
60,311 | 60,311 | ||||||||||
Total
Long-term
obligations
|
715,800 | 146,558 | ||||||||||
Other
liabilities
|
25,347 | 23,132 | ||||||||||
TOTAL
LIABILITIES
|
2,539,149 | 2,063,496 | ||||||||||
Off-Balance-Sheet
Arrangements, Commitments and Contingencies (Note 19)
|
||||||||||||
Minority
Interest in Southside Financial
Group
|
472 | 498 | ||||||||||
Shareholders'
equity:
|
||||||||||||
Common
stock: ($1.25 par, 20,000,000 shares authorized, 15,756,096 and
14,865,134 shares issued)
|
19,695 | 18,581 | ||||||||||
Paid-in
capital
|
131,112 | 115,250 | ||||||||||
Retained
earnings
|
34,021 | 26,187 | ||||||||||
Treasury
stock (1,731,570 and 1,724,857 shares at
cost)
|
(23,115 | ) | (22,983 | ) | ||||||||
Accumulated
other comprehensive
loss
|
(1,096 | ) | (4,707 | ) | ||||||||
TOTAL
SHAREHOLDERS'
EQUITY
|
160,617 | 132,328 | ||||||||||
TOTAL
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
$ | 2,700,238 | $ | 2,196,322 |
SOUTHSIDE
BANCSHARES, INC. AND SUBSIDIARIES
|
||||||||||||
CONSOLIDATED
STATEMENTS OF INCOME
|
||||||||||||
(in
thousands, except per share data)
|
Years
Ended December 31,
|
|||||||||||
2008
|
2007
|
2006
|
||||||||||
Interest
income
|
||||||||||||
Loans
|
$
|
73,120
|
$
|
55,904
|
$
|
46,413
|
||||||
Investment
securities –
taxable
|
1,723
|
2,580
|
2,498
|
|||||||||
Investment
securities - tax
exempt
|
4,910
|
2,112
|
2,139
|
|||||||||
Mortgage-backed
and related
securities
|
55,470
|
43,767
|
44,401
|
|||||||||
Federal
Home Loan Bank stock and other investments
|
841
|
1,193
|
1,409
|
|||||||||
Other
interest earning
assets
|
112
|
185
|
92
|
|||||||||
Total
interest
income
|
136,176
|
105,741
|
96,952
|
|||||||||
Interest
expense
|
||||||||||||
Deposits
|
32,891
|
41,458
|
30,690
|
|||||||||
Short-term
obligations
|
8,969
|
13,263
|
16,534
|
|||||||||
Long-term
obligations
|
18,503
|
7,142
|
8,060
|
|||||||||
Total
interest
expense
|
60,363
|
61,863
|
55,284
|
|||||||||
Net
interest
income
|
75,813
|
43,878
|
41,668
|
|||||||||
Provision
for loan
losses
|
13,675
|
2,351
|
1,080
|
|||||||||
Net
interest income after provision for loan losses
|
62,138
|
41,527
|
40,588
|
|||||||||
Noninterest
income
|
||||||||||||
Deposit
services
|
18,395
|
17,280
|
15,482
|
|||||||||
Gain
on sale of securities available for sale
|
12,334
|
897
|
743
|
|||||||||
Gain
on sale of
loans
|
1,757
|
1,922
|
1,817
|
|||||||||
Trust
income
|
2,465
|
2,106
|
1,711
|
|||||||||
Bank
owned life insurance
income
|
2,246
|
1,142
|
1,067
|
|||||||||
Other
|
3,105
|
3,071
|
2,661
|
|||||||||
Total
noninterest
income
|
40,302
|
26,418
|
23,481
|
|||||||||
Noninterest
expense
|
||||||||||||
Salaries
and employee
benefits
|
37,228
|
29,361
|
28,275
|
|||||||||
Occupancy
expense
|
5,704
|
4,881
|
4,777
|
|||||||||
Equipment
expense
|
1,305
|
1,017
|
899
|
|||||||||
Advertising,
travel and
entertainment
|
2,097
|
1,812
|
1,742
|
|||||||||
ATM
and debit card
expense
|
1,211
|
1,006
|
955
|
|||||||||
Director
fees
|
674
|
605
|
587
|
|||||||||
Supplies
|
812
|
692
|
637
|
|||||||||
Professional
fees
|
1,864
|
1,268
|
1,386
|
|||||||||
Postage
|
755
|
662
|
618
|
|||||||||
Telephone
and
communications
|
1,050
|
800
|
723
|
|||||||||
FDIC
Insurance
|
966
|
285
|
141
|
|||||||||
Other
|
6,828
|
4,896
|
4,227
|
|||||||||
Total
noninterest
expense
|
60,494
|
47,285
|
44,967
|
|||||||||
Income
before income tax
expense
|
41,946
|
20,660
|
19,102
|
|||||||||
Provision
(benefit) for income tax
expense
|
||||||||||||
Current
|
15,601
|
4,068
|
8,582
|
|||||||||
Deferred
|
(4,351
|
)
|
(92
|
)
|
(4,482
|
)
|
||||||
Total
income
taxes
|
11,250
|
3,976
|
4,100
|
|||||||||
Net
Income
|
$
|
30,696
|
$
|
16,684
|
$
|
15,002
|
||||||
Earnings
per common share –
basic
|
$
|
2.21
|
$
|
1.22
|
$
|
1.11
|
||||||
Earnings
per common share –
diluted
|
$
|
2.16
|
$
|
1.18
|
$
|
1.07
|
||||||
Dividends
declared per common
share
|
$
|
0.60
|
$
|
0.50
|
$
|
0.47
|
SOUTHSIDE
BANCSHARES, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||||||
CONSOLIDATED
STATEMENTS OF SHAREHOLDERS’ EQUITY
|
||||||||||||||||||||||||||||
(in
thousands, except share amounts)
|
||||||||||||||||||||||||||||
Compre-hensive
Income
|
Common
Stock
|
Paid
In Capital
|
Retained
Earnings
|
Treasury
Stock
|
Accu-
mulated
Other Compre-
hensive
Income
(Loss)
|
Total
Share-
holders’
Equity
|
||||||||||||||||||||||
Balance
at December 31, 2005
|
$ | 16,633 | $ | 87,962 | $ | 32,054 | $ | (22,850 | ) | $ | (4,509 | ) | $ | 109,290 | ||||||||||||||
Net
Income
|
$ | 15,002 | 15,002 | 15,002 | ||||||||||||||||||||||||
Other
comprehensive loss, net of tax
|
||||||||||||||||||||||||||||
Unrealized
losses on securities, net of reclassification adjustment
|
(1,883 | ) | (1,883 | ) | (1,883 | ) | ||||||||||||||||||||||
Minimum
pension liability adjustment
|
298 | 298 | 298 | |||||||||||||||||||||||||
Comprehensive
income
|
$ | 13,417 | ||||||||||||||||||||||||||
Adjustment
to initially apply SFAS 158, net of tax
|
(8,430 | ) | (8,430 | ) | ||||||||||||||||||||||||
Common
stock issued (186,658 shares)
|
233 | 1,517 | 1,750 | |||||||||||||||||||||||||
Stock
compensation expense
|
27 | 27 | ||||||||||||||||||||||||||
Tax
benefit of incentive stock options
|
252 | 252 | ||||||||||||||||||||||||||
Dividends
paid on common stock
|
(5,702 | ) | (5,702 | ) | ||||||||||||||||||||||||
Stock
dividend
|
728 | 10,978 | (11,706 | ) | – | |||||||||||||||||||||||
Balance
at December 31, 2006
|
17,594 | 100,736 | 29,648 | (22,850 | ) | (14,524 | ) | 110,604 | ||||||||||||||||||||
Net
Income
|
$ | 16,684 | 16,684 | 16,684 | ||||||||||||||||||||||||
Other
comprehensive income, net of tax
|
||||||||||||||||||||||||||||
Unrealized
gains on securities, net of reclassification adjustment
|
8,691 | 8,691 | 8,691 | |||||||||||||||||||||||||
Adjustment
to net periodic benefit cost
|
1,126 | 1,126 | 1,126 | |||||||||||||||||||||||||
Comprehensive
income
|
$ | 26,501 | ||||||||||||||||||||||||||
Common
stock issued (168,543 shares)
|
211 | 1,430 | 1,641 | |||||||||||||||||||||||||
Stock
compensation expense
|
27 | 27 | ||||||||||||||||||||||||||
Tax
benefit of incentive stock options
|
154 | 154 | ||||||||||||||||||||||||||
Dividends
paid on common stock
|
(6,466 | ) | (6,466 | ) | ||||||||||||||||||||||||
Purchase
of 6,120 shares of common stock
|
(133 | ) | (133 | ) | ||||||||||||||||||||||||
Stock
dividend
|
776 | 12,903 | (13,679 | ) | – | |||||||||||||||||||||||
Balance
at December 31, 2007
|
18,581 | 115,250 | 26,187 | (22,983 | ) | (4,707 | ) | 132,328 | ||||||||||||||||||||
Net
Income
|
$ | 30,696 | 30,696 | 30,696 | ||||||||||||||||||||||||
Other
comprehensive income, net of tax
|
||||||||||||||||||||||||||||
Unrealized
gains on securities, net of reclassification adjustment
|
10,663 | 10,663 | 10,663 | |||||||||||||||||||||||||
Adjustment
to net periodic benefit cost
|
(7,052 | ) | (7,052 | ) | (7,052 | ) | ||||||||||||||||||||||
Comprehensive
income
|
$ | 34,307 | ||||||||||||||||||||||||||
Common
stock issued (231,749 shares)
|
290 | 1,794 | 2,084 | |||||||||||||||||||||||||
Stock
compensation expense
|
7 | 7 | ||||||||||||||||||||||||||
Tax
benefit of incentive stock options
|
639 | 639 | ||||||||||||||||||||||||||
Cumulative
effect of adoption of a new accounting principle on January 1,
2008
|
(351 | ) | (351 | ) | ||||||||||||||||||||||||
Dividends
paid on common stock
|
(8,265 | ) | (8,265 | ) | ||||||||||||||||||||||||
Purchase
of 6,713 shares of common stock
|
(132 | ) | (132 | ) | ||||||||||||||||||||||||
Stock
dividend
|
824 | 13,422 | (14,246 | ) | – | |||||||||||||||||||||||
Balance
at December 31, 2008
|
$ | 19,695 | $ | 131,112 | $ | 34,021 | $ | (23,115 | ) | $ | (1,096 | ) | $ | 160,617 | ||||||||||||||
SOUTHSIDE
BANCSHARES, INC. AND SUBSIDIARIES
|
||||||||||||
CONSOLIDATED
STATEMENTS OF CASH FLOW
|
||||||||||||
(in
thousands)
|
Years
Ended December 31,
|
|||||||||||
2008
|
2007
|
2006
|
||||||||||
OPERATING
ACTIVITIES:
|
||||||||||||
Net
income
|
$
|
30,696
|
$
|
16,684
|
$
|
15,002
|
||||||
Adjustments
to reconcile net income to net cash provided by
operations:
|
||||||||||||
Depreciation
|
2,458
|
2,255
|
2,275
|
|||||||||
Amortization
of
premium
|
7,148
|
4,952
|
5,741
|
|||||||||
Accretion
of discount and loan
fees
|
(4,483
|
)
|
(2,667
|
)
|
(2,089
|
)
|
||||||
Provision
for loan
losses
|
13,675
|
2,351
|
1,080
|
|||||||||
Stock
compensation
expense
|
7
|
27
|
27
|
|||||||||
Increase
in interest
receivable
|
(4,561
|
)
|
(1,113
|
)
|
(806
|
)
|
||||||
(Increase)
decrease in other
assets
|
(1,596
|
)
|
2,405
|
(3,436
|
)
|
|||||||
Net
change in deferred
taxes
|
(378
|
)
|
(532
|
)
|
(292
|
)
|
||||||
Increase
in interest
payable
|
468
|
259
|
931
|
|||||||||
(Decrease)
increase in other
liabilities
|
(5,324
|
)
|
(1,644
|
)
|
1,104
|
|||||||
Decrease
in loans held for
sale
|
2,850
|
548
|
372
|
|||||||||
Gain
on sale of securities available for
sale
|
(12,334
|
)
|
(897
|
)
|
(743
|
)
|
||||||
Loss
(gain) on sale of
assets
|
77
|
(41
|
)
|
5
|
||||||||
Impairment
of other real estate
owned
|
–
|
13
|
–
|
|||||||||
Earnings
allocated to minority
interest
|
142
|
(2
|
)
|
–
|
||||||||
Net
cash provided by operating
activities
|
28,845
|
22,598
|
19,171
|
|||||||||
INVESTING
ACTIVITIES:
|
||||||||||||
Proceeds
from sales of investment securities available for sale
|
137,826
|
25,202
|
52,640
|
|||||||||
Proceeds
from sales of mortgage-backed securities available for
sale
|
449,537
|
90,323
|
75,354
|
|||||||||
Proceeds
from maturities of investment securities available for
sale
|
86,790
|
95,890
|
24,460
|
|||||||||
Proceeds
from maturities of mortgage-backed securities available for
sale
|
127,008
|
102,584
|
107,029
|
|||||||||
Proceeds
from maturities of mortgage-backed securities held to
maturity
|
33,613
|
37,481
|
35,806
|
|||||||||
Proceeds
from maturities of investment securities held to maturity
|
–
|
900
|
–
|
|||||||||
Proceeds
from redemption of FHLB and FRB
stock
|
897
|
11,206
|
4,457
|
|||||||||
Proceeds
from sale of other
investments
|
–
|
44
|
–
|
|||||||||
Purchases
of investment securities available for sale
|
(381,801
|
)
|
(130,113
|
)
|
(55,155
|
)
|
||||||
Purchases
of investment securities held to
maturity
|
–
|
–
|
(1,348
|
)
|
||||||||
Purchases
of mortgage-backed securities available for sale
|
(867,793
|
)
|
(254,613
|
)
|
(237,001
|
)
|
||||||
Purchases
of mortgage-backed securities held to maturity
|
(1,664
|
)
|
(2,180
|
)
|
(41,282
|
)
|
||||||
Purchases
of FHLB stock and other
investments
|
(20,454
|
)
|
(5,686
|
)
|
(1,346
|
)
|
||||||
Net
increase in
loans
|
(69,149
|
)
|
(96,898
|
)
|
(81,248
|
)
|
||||||
Net
cash paid in
acquisition
|
–
|
(32,030
|
)
|
–
|
||||||||
Purchases
of premises and
equipment
|
(5,315
|
)
|
(4,581
|
)
|
(1,306
|
)
|
||||||
Proceeds
from sales of premises and
equipment
|
384
|
–
|
1
|
|||||||||
Proceeds
on bank owned life
insurance
|
713
|
–
|
–
|
|||||||||
Proceeds
from sales of other real estate
owned
|
515
|
334
|
514
|
|||||||||
Proceeds
from sales of repossessed
assets
|
3,465
|
439
|
426
|
|||||||||
Net
cash used in investing
activities
|
(505,428
|
)
|
(161,698
|
)
|
(117,999
|
)
|
SOUTHSIDE
BANCSHARES, INC. AND SUBSIDIARIES
|
||||||||||||
CONSOLIDATED
STATEMENTS OF CASH FLOW (continued)
|
||||||||||||
(in
thousands)
|
Years
Ended December 31,
|
|||||||||||
2008
|
2007
|
2006
|
||||||||||
FINANCING
ACTIVITIES:
|
||||||||||||
Net
increase in demand and savings accounts
|
95,928
|
114,612
|
38,864
|
|||||||||
Net
(decrease) increase in certificates of deposit
|
(71,174
|
)
|
32,183
|
132,636
|
||||||||
Net
increase (decrease) in federal funds purchased and repurchase
agreements
|
3,606
|
(4,901
|
)
|
3,275
|
||||||||
Proceeds
from FHLB advances
|
15,498,447
|
7,908,163
|
7,456,291
|
|||||||||
Repayment
of FHLB advances
|
(15,053,612
|
)
|
(7,921,744
|
)
|
(7,525,355
|
)
|
||||||
Proceeds
from issuance of long-term debt
|
–
|
36,083
|
–
|
|||||||||
Net
capital contributions from minority interest investment in
consolidated entities
|
–
|
500
|
–
|
|||||||||
Net
capital distributions to minority interest investment in consolidated
entities
|
(168
|
)
|
–
|
–
|
||||||||
Tax
benefit of incentive stock options
|
639
|
154
|
252
|
|||||||||
Purchase
of common stock
|
(132
|
)
|
(133
|
)
|
–
|
|||||||
Proceeds
from the issuance of common stock
|
2,084
|
1,641
|
1,750
|
|||||||||
Dividends
paid
|
(8,265
|
)
|
(6,466
|
)
|
(5,702
|
)
|
||||||
Net
cash provided by financing activities
|
467,353
|
160,092
|
102,011
|
|||||||||
Net
(decrease) increase in cash and cash equivalents
|
(9,230
|
)
|
20,992
|
3,183
|
||||||||
Cash
and cash equivalents at beginning of year
|
76,004
|
55,012
|
51,829
|
|||||||||
Cash
and cash equivalents at end of year
|
$
|
66,774
|
$
|
76,004
|
$
|
55,012
|
||||||
SUPPLEMENTAL
DISCLOSURES FOR CASH FLOW INFORMATION:
|
||||||||||||
Interest
paid
|
$
|
59,895
|
$
|
61,603
|
$
|
54,353
|
||||||
Income
taxes paid
|
$
|
11,525
|
$
|
4,200
|
$
|
3,450
|
||||||
SUPPLEMENTAL
DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES:
|
||||||||||||
Acquisition
of other repossessed assets and real estate through
foreclosure
|
$
|
6,078
|
$
|
741
|
$
|
1,220
|
||||||
Adjustment
to initially apply SFAS 158
|
$
|
–
|
$
|
–
|
$
|
6,276
|
||||||
Adjustment
to pension liability
|
$
|
11,025
|
$
|
(1,707
|
)
|
$
|
(451
|
)
|
||||
Payment
of 5% stock dividend
|
$
|
14,246
|
$
|
13,679
|
$
|
11,706
|
||||||
Unsettled
trades to purchase securities
|
$
|
–
|
$
|
(6,141
|
)
|
$
|
–
|
Fair
value of assets acquired
|
$
|
–
|
$
|
152,344
|
$
|
–
|
||||||
Cash
paid for the common stock
|
–
|
(36,956
|
)
|
–
|
||||||||
Liabilities
assumed
|
$
|
–
|
$
|
115,388
|
$
|
–
|
NOTES
TO FINANCIAL
STATEMENTS Southside
Bancshares, Inc. and Subsidiaries
|
1.
|
SUMMARY
OF SIGNIFICANT ACCOUNTING AND REPORTING
POLICIES
|
FWBS
|
||||
Cash
and cash
equivalents
|
$ | 4,926 | ||
Securities
available for
sale
|
5,544 | |||
FHLB
stock and other
investments
|
946 | |||
Loans
|
105,605 | |||
Premises
and
equipment
|
5,282 | |||
Core
deposit intangible
asset
|
2,047 | |||
Goodwill
|
21,639 | |||
Other
assets
|
6,355 | |||
Deposits
|
(100,930 | ) | ||
Other
borrowings
|
(11,858 | ) | ||
Other
liabilities
|
(2,600 | ) | ||
$ | 36,956 |
Years
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Basic
Earnings and Shares:
|
||||||||||||
Net
Income
|
$
|
30,696
|
$
|
16,684
|
$
|
15,002
|
||||||
Weighted-average
basic shares
outstanding
|
13,891
|
13,711
|
13,519
|
|||||||||
Basic
Earnings Per Share:
|
||||||||||||
Net
Income
|
$
|
2.21
|
$
|
1.22
|
$
|
1.11
|
||||||
Diluted
Earnings and Shares:
|
||||||||||||
Net
Income
|
$
|
30,696
|
$
|
16,684
|
$
|
15,002
|
||||||
Weighted-average
basic shares
outstanding
|
13,891
|
13,711
|
13,519
|
|||||||||
Add:
Stock
options
|
309
|
406
|
519
|
|||||||||
Weighted-average
diluted shares
outstanding
|
14,200
|
14,117
|
14,038
|
|||||||||
Diluted
Earnings Per Share:
|
||||||||||||
Net
Income
|
$
|
2.16
|
$
|
1.18
|
$
|
1.07
|
Year
Ended December 31, 2008
|
||||||||||||
Before-Tax
|
Tax
(Expense)
|
Net-of-Tax
|
||||||||||
Amount
|
Benefit
|
Amount
|
||||||||||
Unrealized
gains on securities:
|
||||||||||||
Unrealized
holding gains arising during period
|
$ | 28,805 | $ | (10,125 | ) | $ | 18,680 | |||||
Less: reclassification
adjustment for gains realized in net income
|
12,334 | (4,317 | ) | 8,017 | ||||||||
Net
unrealized gains on securities
|
16,471 | (5,808 | ) | 10,663 | ||||||||
Change
in pension plans
|
(11,025 | ) | 3,973 | (7,052 | ) | |||||||
Other
comprehensive income
|
$ | 5,446 | $ | (1,835 | ) | $ | 3,611 |
Year
Ended December 31, 2007
|
||||||||||||
Before-Tax
|
Tax
(Expense)
|
Net-of-Tax
|
||||||||||
Amount
|
Benefit
|
Amount
|
||||||||||
Unrealized
gains on securities:
|
||||||||||||
Unrealized
holding gains arising during period
|
$ | 14,064 | $ | (4,781 | ) | $ | 9,283 | |||||
Less: reclassification
adjustment for gains realized in net income
|
897 | (305 | ) | 592 | ||||||||
Net
unrealized gains on securities
|
13,167 | (4,476 | ) | 8,691 | ||||||||
Change
in pension plans
|
1,707 | (581 | ) | 1,126 | ||||||||
Other
comprehensive income
|
$ | 14,874 | $ | (5,057 | ) | $ | 9,817 |
Year
Ended December 31, 2006
|
||||||||||||
Before-
Tax
|
Tax
(Expense)
|
Net-of-Tax
|
||||||||||
Amount
|
Benefit
|
Amount
|
||||||||||
Unrealized
losses on securities:
|
||||||||||||
Unrealized
holding losses arising during period
|
$ | (2,110 | ) | $ | 717 | $ | (1,393 | ) | ||||
Less: reclassification
adjustment for gains realized in net income
|
743 | (253 | ) | 490 | ||||||||
Net
unrealized losses on securities
|
(2,853 | ) | 970 | (1,883 | ) | |||||||
Change
in pension plans
|
451 | (153 | ) | 298 | ||||||||
Other
comprehensive loss
|
$ | (2,402 | ) | $ | 817 | $ | (1,585 | ) |
Years
Ended December 31,
|
||||||||
2008
|
2007
|
|||||||
Unrealized
gains on AFS securities
|
$ | 13,499 | $ | 2,836 | ||||
Net
unfunded liability for defined benefit plans
|
(14,595 | ) | (7,543 | ) | ||||
Total
|
$ | (1,096 | ) | $ | (4,707 | ) |
5.
|
CASH
AND DUE FROM BANKS
|
6.
|
SECURITIES
|
AVAILABLE
FOR SALE
|
||||||||||||||||
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Market
|
|||||||||||||
December
31, 2008
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
Investment
Securities:
|
||||||||||||||||
U.S.
Treasury
|
$ | 5,008 | $ | 23 | $ | – | $ | 5,031 | ||||||||
Government
Sponsored Enterprise Debentures
|
60,325 | 227 | 1 | 60,551 | ||||||||||||
State
and Political Subdivisions
|
203,052 | 10,154 | 1,612 | 211,594 | ||||||||||||
Other
Stocks and Bonds
|
6,711 | – | 5,509 | 1,202 | ||||||||||||
Mortgage-backed
Securities:
|
||||||||||||||||
U.S.
Government Agencies
|
166,123 | 2,405 | 229 | 168,299 | ||||||||||||
Government
Sponsored Enterprises
|
841,737 | 17,984 | 1,507 | 858,214 | ||||||||||||
Total
|
$ | 1,282,956 | $ | 30,793 | $ | 8,858 | $ | 1,304,891 |
HELD
TO MATURITY
|
||||||||||||||||
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Market
|
|||||||||||||
December
31, 2008
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
Investment
Securities:
|
||||||||||||||||
Other
Stocks and
Bonds
|
$ | 478 | $ | 9 | $ | – | $ | 487 | ||||||||
Mortgage-backed
Securities:
|
||||||||||||||||
U.S.
Government
Agencies
|
22,778 | 300 | – | 23,078 | ||||||||||||
Government
Sponsored
Enterprises
|
134,509 | 1,890 | 26 | 136,373 | ||||||||||||
Total
|
$ | 157,765 | $ | 2,199 | $ | 26 | $ | 159,938 |
AVAILABLE
FOR SALE
|
||||||||||||||||
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Market
|
|||||||||||||
December
31, 2007
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
Investment
Securities:
|
||||||||||||||||
U.S.
Treasury
|
$ | 4,880 | $ | 8 | $ | 2 | $ | 4,886 | ||||||||
Government
Sponsored Enterprise Debentures
|
31,764 | 3 | 8 | 31,759 | ||||||||||||
State
and Political Subdivisions
|
64,868 | 1,599 | 223 | 66,244 | ||||||||||||
Other
Stocks and Bonds
|
7,586 | – | 547 | 7,039 | ||||||||||||
Mortgage-backed
Securities:
|
||||||||||||||||
U.S.
Government Agencies
|
88,937 | 1,234 | 451 | 89,720 | ||||||||||||
Government
Sponsored Enterprises
|
628,768 | 5,847 | 1,555 | 633,060 | ||||||||||||
Other
Private Issues
|
4,773 | – | – | 4,773 | ||||||||||||
Total
|
$ | 831,576 | $ | 8,691 | $ | 2,786 | $ | 837,481 |
HELD
TO MATURITY
|
||||||||||||||||
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Market
|
|||||||||||||
December
31, 2007
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
Investment
Securities:
|
||||||||||||||||
Other
Stocks and
Bonds
|
$ | 475 | $ | 2 | $ | – | $ | 477 | ||||||||
Mortgage-backed
Securities:
|
||||||||||||||||
U.S.
Government
Agencies
|
25,965 | 36 | 58 | 25,943 | ||||||||||||
Government
Sponsored
Enterprises
|
164,000 | 501 | 531 | 163,970 | ||||||||||||
Total
|
$ | 190,440 | $ | 539 | $ | 589 | $ | 190,390 |
Less
Than 12 Months
|
More
Than 12 Months
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
|||||||||||||||||||
As
of December 31, 2008:
|
||||||||||||||||||||||||
Available
for Sale
|
||||||||||||||||||||||||
Government
Sponsored Enterprise Debentures
|
$ | 29,999 | $ | 1 | $ | – | $ | – | $ | 29,999 | $ | 1 | ||||||||||||
State
and Political Subdivisions
|
45,686 | 1,496 | 1,193 | 116 | 46,879 | 1,612 | ||||||||||||||||||
Other
Stocks and Bonds
|
253 | 89 | 949 | 5,420 | 1,202 | 5,509 | ||||||||||||||||||
Mortgage-Backed
Securities
|
116,616 | 1,517 | 17,174 | 219 | 133,790 | 1,736 | ||||||||||||||||||
Total
|
$ | 192,554 | $ | 3,103 | $ | 19,316 | $ | 5,755 | $ | 211,870 | $ | 8,858 | ||||||||||||
Held
to Maturity
|
||||||||||||||||||||||||
Mortgage-Backed
Securities
|
$ | 1,212 | $ | 1 | $ | 4,540 | $ | 25 | $ | 5,752 | $ | 26 | ||||||||||||
Total
|
$ | 1,212 | $ | 1 | $ | 4,540 | $ | 25 | $ | 5,752 | $ | 26 | ||||||||||||
As
of December 31, 2007:
|
||||||||||||||||||||||||
Available
for Sale
|
||||||||||||||||||||||||
U.S.
Treasury
|
$ | 394 | $ | 2 | $ | – | $ | – | $ | 394 | $ | 2 | ||||||||||||
Government
Sponsored Enterprise Debentures
|
13,237 | 8 | – | – | 13,237 | 8 | ||||||||||||||||||
State
and Political Subdivisions
|
537 | 29 | 12,918 | 194 | 13,455 | 223 | ||||||||||||||||||
Other
Stocks and Bonds
|
3,332 | 254 | 3,707 | 293 | 7,039 | 547 | ||||||||||||||||||
Mortgage-Backed
Securities
|
71,071 | 154 | 146,458 | 1,852 | 217,529 | 2,006 | ||||||||||||||||||
Total
|
$ | 88,571 | $ | 447 | $ | 163,083 | $ | 2,339 | $ | 251,654 | $ | 2,786 | ||||||||||||
Held
to Maturity
|
||||||||||||||||||||||||
Mortgage-Backed
Securities
|
$ | 10,975 | $ | 29 | $ | 74,568 | $ | 560 | $ | 85,543 | $ | 589 | ||||||||||||
Total
|
$ | 10,975 | $ | 29 | $ | 74,568 | $ | 560 | $ | 85,543 | $ | 589 | ||||||||||||
Years
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(in
thousands)
|
||||||||||||
U.S.
Treasury
|
$
|
115
|
$
|
715
|
$
|
1,042
|
||||||
U.S.
Government
Agencies
|
690
|
671
|
337
|
|||||||||
State
and Political
Subdivisions
|
5,414
|
2,692
|
2,727
|
|||||||||
Other
Stocks and
Bonds
|
414
|
614
|
531
|
|||||||||
Mortgage-backed
Securities
|
55,470
|
43,767
|
44,401
|
|||||||||
Total
interest income on
securities
|
$
|
62,103
|
$
|
48,459
|
$
|
49,038
|
December
31, 2008
|
||||||||
Amortized
Cost
|
Fair
Value
|
|||||||
(in
thousands)
|
||||||||
Available
for sale securities:
|
||||||||
Investment
Securities
|
||||||||
Due
in one year or
less
|
$ | 67,490 | $ | 67,743 | ||||
Due
after one year through five years
|
13,739 | 13,953 | ||||||
Due
after five years through ten years
|
22,532 | 22,616 | ||||||
Due
after ten
years
|
171,335 | 174,066 | ||||||
275,096 | 278,378 | |||||||
Mortgage-backed
securities
|
1,007,860 | 1,026,513 | ||||||
Total
|
$ | 1,282,956 | $ | 1,304,891 |
Amortized
Cost
|
Fair
Value
|
|||||||
(in
thousands)
|
||||||||
Held
to maturity securities:
|
||||||||
Investment
Securities
|
||||||||
Due
in one year or
less
|
$ | – | $ | – | ||||
Due
after one year through five years
|
– | – | ||||||
Due
after five years through ten years
|
– | – | ||||||
Due
after ten
years
|
478 | 487 | ||||||
478 | 487 | |||||||
Mortgage-backed
securities
|
157,287 | 159,451 | ||||||
Total
|
$ | 157,765 | $ | 159,938 |
7.
|
LOANS
AND ALLOWANCE FOR PROBABLE LOAN
LOSSES
|
December
31,
|
December
31,
|
|||||||
2008
|
2007
|
|||||||
(in
thousands)
|
||||||||
Real
Estate Loans:
|
||||||||
Construction
|
$ | 120,153 | $ | 107,397 | ||||
1-4
family
residential
|
238,693 | 237,979 | ||||||
Other
|
184,629 | 200,148 | ||||||
Commercial
loans
|
165,558 | 154,171 | ||||||
Municipal
loans
|
134,986 | 112,523 | ||||||
Loans
to
individuals
|
178,530 | 149,012 | ||||||
Total
loans
|
1,022,549 | 961,230 | ||||||
Less: Allowance
for loan
losses
|
16,112 | 9,753 | ||||||
Net
loans
|
$ | 1,006,437 | $ | 951,477 |
Years
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(in
thousands)
|
||||||||||||
Allowance
For Loan Losses
|
||||||||||||
Balance
at beginning of
year
|
$
|
9,753
|
$
|
7,193
|
$
|
7,090
|
||||||
Provision
for loan
losses
|
13,675
|
2,351
|
1,080
|
|||||||||
Allowance
for loan losses
acquired
|
–
|
909
|
–
|
|||||||||
Loans
charged
off
|
(9,197
|
)
|
(2,747
|
)
|
(2,972
|
)
|
||||||
Recoveries
of loans charged
off
|
1,881
|
2,047
|
1,995
|
|||||||||
Balance
at end of
year
|
$
|
16,112
|
$
|
9,753
|
$
|
7,193
|
||||||
Reserve
For Unfunded Loan Commitments
|
||||||||||||
Balance
at beginning of
year
|
$
|
50
|
$
|
–
|
$
|
–
|
||||||
Provision
for losses on unfunded loan commitments
|
(43
|
)
|
50
|
–
|
||||||||
Balance
at end of
year
|
$
|
7
|
$
|
50
|
$
|
–
|
Total
|
Valuation
Allowance
|
Carrying
Value
|
||||||||||
(in
thousands)
|
||||||||||||
Real
Estate
Loans
|
$
|
7,469
|
$
|
1,082
|
$
|
6,387
|
||||||
Loans
to
Individuals
|
6,003
|
2,259
|
3,744
|
|||||||||
Commercial
Loans
|
862
|
171
|
691
|
|||||||||
Balance
at December 31,
2008
|
$
|
14,334
|
$
|
3,512
|
$
|
10,822
|
Total
|
Valuation
Allowance
|
Carrying
Value
|
||||||||||
(in
thousands)
|
||||||||||||
Real
Estate
Loans
|
$
|
636
|
$
|
92
|
$
|
544
|
||||||
Loans
to
Individuals
|
2,230
|
396
|
1,834
|
|||||||||
Commercial
Loans
|
170
|
65
|
105
|
|||||||||
Balance
at December 31,
2007
|
$
|
3,036
|
$
|
553
|
$
|
2,483
|
December
31,
|
December
31,
|
|||||||
2008
|
2007
|
|||||||
(in
thousands)
|
||||||||
Premises
|
$ | 50,551 | $ | 48,149 | ||||
Furniture
and
equipment
|
21,213 | 18,837 | ||||||
71,764 | 66,986 | |||||||
Less:
accumulated
depreciation
|
29,042 | 26,737 | ||||||
Total
|
$ | 42,722 | $ | 40,249 |
Gross
Intangible Assets
|
Accumulated
Amortization
|
Net
Intangible Assets
|
||||||||||
December
31, 2008
|
||||||||||||
Core
deposits
|
$
|
2,047
|
$
|
(568
|
)
|
$
|
1,479
|
|||||
$
|
2,047
|
$
|
(568
|
)
|
$
|
1,479
|
||||||
December
31, 2007
|
||||||||||||
Core
deposits
|
$
|
2,047
|
$
|
(122
|
)
|
$
|
1,925
|
|||||
$
|
2,047
|
$
|
(122
|
)
|
$
|
1,925
|
||||||
2009
|
$
|
383
|
2010
|
319
|
|
2011
|
255
|
|
2012
|
198
|
|
2013
|
146
|
|
Thereafter
|
178
|
|
$
|
1,479
|
December
31, 2008
|
December
31, 2007
|
|||||||
(in
thousands)
|
||||||||
Savings
deposits
|
$ | 60,852 | $ | 52,975 | ||||
Money
market demand deposits
|
108,623 | 106,415 | ||||||
Platinum
money market deposits
|
163,055 | 163,310 | ||||||
NOW
demand deposits
|
280,854 | 228,496 | ||||||
Certificates
and other time deposits of $100,000 or more
|
288,047 | 257,095 | ||||||
Certificates
and other time deposits under $100,000
|
263,877 | 365,117 | ||||||
Total
|
$ | 1,165,308 | $ | 1,173,408 |
2009
|
$
|
468,448
|
2010
|
44,476
|
|
2011
|
20,302
|
|
2012
|
14,547
|
|
2013
and thereafter
|
4,151
|
|
$
|
551,924
|
Years
Ended December 31,
|
||||||||
2008
|
2007
|
|||||||
(dollars
in thousands)
|
||||||||
Federal
funds purchased and repurchase agreements
|
||||||||
Balance
at end of period
|
$ | 10,629 | $ | 7,023 | ||||
Average
amount outstanding during the period (1)
|
11,789 | 4,519 | ||||||
Maximum
amount outstanding during the period (3)
|
16,432 | 10,250 | ||||||
Weighted
average interest rate during the period (2)
|
3.7 | % | 5.3 | % | ||||
Interest
rate at end of period
|
3.8 | % | 4.7 | % | ||||
FHLB
advances
|
||||||||
Balance
at end of period
|
$ | 229,385 | $ | 353,792 | ||||
Average
amount outstanding during the period (1)
|
278,164 | 272,711 | ||||||
Maximum
amount outstanding during the period (3)
|
367,823 | 383,059 | ||||||
Weighted
average interest rate during the period (2)
|
3.1 | % | 4.8 | % | ||||
Interest
rate at end of period
|
2.6 | % | 4.1 | % | ||||
Other
obligations
|
||||||||
Balance
at end of period
|
$ | 1,857 | $ | 2,500 | ||||
Average
amount outstanding during the period (1)
|
942 | 772 | ||||||
Maximum
amount outstanding during the period (3)
|
2,500 | 2,500 | ||||||
Weighted
average interest rate during the period (2)
|
1.6 | % | 5.0 | % | ||||
Interest
rate at end of period
|
– | 3.6 | % |
|
(1)
|
The
average amount outstanding during the period was computed by dividing the
total daily outstanding principal balances by the number of days in the
period.
|
|
(2)
|
The
weighted average interest rate during the period was computed by dividing
the actual interest expense by the average balance outstanding during the
period.
|
|
(3)
|
The
maximum amount outstanding at any month-end during the
period.
|
Years
Ended December 31,
|
||||||||||
2008
|
2007
|
|||||||||
(dollars
in thousands)
|
||||||||||
FHLB
advances
|
||||||||||
Balance
at end of period
|
$ | 655,489 | $ | 86,247 | ||||||
Weighted
average interest rate during the period (1)
|
3.8 | % | 4.6 | % | ||||||
Interest
rate at end of period
|
3.6 | % | 4.8 | % | ||||||
Long-term
debt (2)
|
||||||||||
Balance
at end of period
|
$ | 60,311 | $ | 60,311 | ||||||
Weighted
average interest rate during the period (1)
|
6.7 | % | 7.8 | % | ||||||
Interest
rate at end of period
|
5.8 | % | 7.2 | % |
Under
1 Year
|
Due
1-5 Years
|
Due
6-10 Years
|
Over
10 Years
|
Total
|
||||||||||||||||
FHLB
advances
|
$ | 2,133 | $ | 645,213 | $ | 4,858 | $ | 3,285 | $ | 655,489 | ||||||||||
Long-term
debt
|
– | – | – | 60,311 | 60,311 | |||||||||||||||
Total
long-term obligations
|
$ | 2,133 | $ | 645,213 | $ | 4,858 | $ | 63,596 | $ | 715,800 |
Years
Ended December 31,
|
||||||||
2008
|
2007
|
|||||||
(in
thousands)
|
||||||||
Long-term
Debt
|
||||||||
Southside
Statutory Trust III Due 2033 (3)
|
$ | 20,619 | $ | 20,619 | ||||
Southside
Statutory Trust IV Due 2037 (4)
|
23,196 | 23,196 | ||||||
Southside
Statutory Trust V Due 2037 (5)
|
12,887 | 12,887 | ||||||
Magnolia
Trust Company I Due 2035 (6)
|
3,609 | 3,609 | ||||||
Total
Long-term
Debt
|
$ | 60,311 | $ | 60,311 |
(1)
|
The
weighted average interest rate during the period was computed by dividing
the actual interest expense by the average balance outstanding during the
period.
|
(2)
|
This
long-term debt consists of trust preferred securities that qualify under
the risk-based capital guidelines as Tier 1 capital, subject to certain
limitations.
|
(3)
|
This
debt carries an adjustable rate of 4.39875% through March 30, 2009 and
adjusts quarterly at a rate equal to three-month LIBOR plus 294 basis
points.
|
(4)
|
This
debt carries a fixed rate of 6.518% through October 30, 2012 and
thereafter, adjusts quarterly at a rate equal to three-month LIBOR plus
130 basis points.
|
(5)
|
This
debt carries a fixed rate of 7.48% through December 15, 2012 and
thereafter, adjusts quarterly at a rate equal to three-month LIBOR plus
225 basis points.
|
(6)
|
This
debt carries an adjustable rate of 3.953% through February 22, 2009 and
adjusts quarterly at a rate equal to three-month LIBOR plus 180 basis
points.
|
2008
|
2007
|
|||||||||||||||
Defined
Benefit
Pension
Plan
|
Restoration
Plan
|
Defined
Benefit
Pension
Plan
|
Restoration
Plan
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Change
in Projected Benefit Obligation:
|
||||||||||||||||
Benefit
obligation at end of prior year
|
$ | 40,246 | $ | 2,899 | $ | 39,615 | $ | 3,050 | ||||||||
Service
cost
|
1,240 | 85 | 1,330 | 61 | ||||||||||||
Interest
cost
|
2,424 | 228 | 2,313 | 168 | ||||||||||||
Actuarial
loss (gain)
|
230 | 857 | (1,892 | ) | (300 | ) | ||||||||||
Benefits
paid
|
(1,255 | ) | (80 | ) | (1,028 | ) | (80 | ) | ||||||||
Expenses
paid
|
(104 | ) | – | (92 | ) | – | ||||||||||
Benefit
obligation at end of year
|
42,781 | 3,989 | 40,246 | 2,899 | ||||||||||||
Change
in Plan Assets:
|
||||||||||||||||
Fair
value of plan assets at end of prior year
|
39,726 | – | 34,328 | – | ||||||||||||
Actual
return
|
(7,473 | ) | – | 1,518 | – | |||||||||||
Employer
contributions
|
6,000 | 80 | 5,000 | 80 | ||||||||||||
Benefits
paid
|
(1,255 | ) | (80 | ) | (1,028 | ) | (80 | ) | ||||||||
Expenses
paid
|
(104 | ) | – | (92 | ) | – | ||||||||||
Fair
value of plan assets at end of year
|
36,894 | – | 39,726 | – | ||||||||||||
Funded
status at end of year
|
(5,887 | ) | (3,989 | ) | (520 | ) | (2,899 | ) | ||||||||
Accrued
benefit liability recognized
|
$ | (5,887 | ) | $ | (3,989 | ) | $ | (520 | ) | $ | (2,899 | ) | ||||
Accumulated
benefit obligation at end of year
|
$ | 33,555 | $ | 2,689 | $ | 31,179 | $ | 2,185 |
2008
|
||||||||
Defined
Benefit
Pension
Plan
|
Restoration
Plan
|
|||||||
(in
thousands)
|
||||||||
Recognition
of net
gain
|
$ | 417 | $ | 152 | ||||
Recognition
of prior service
cost
|
(42 | ) | (2 | ) | ||||
Net
loss occurring during the
year
|
(10,693 | ) | (857 | ) | ||||
Recognition
of transition
obligation
|
– | – | ||||||
(10,318 | ) | (707 | ) | |||||
Deferred
tax
benefit
|
3,716 | 257 | ||||||
Other
comprehensive loss, net of
tax
|
$ | (6,602 | ) | $ | (450 | ) |
2008
|
||||||||
Defined
Benefit
Pension
Plan
|
Restoration
Plan
|
|||||||
(in
thousands)
|
||||||||
Net
loss
|
$ | 417 | $ | 152 | ||||
Prior
service
credit
|
(42 | ) | (2 | ) | ||||
375 | 150 | |||||||
Deferred
tax
benefit
|
(131 | ) | (53 | ) | ||||
Accumulated
other comprehensive loss, net of
tax
|
$ | 244 | $ | 97 |
2008
|
||||||||
Defined
Benefit
Pension
Plan
|
Restoration
Plan
|
|||||||
(in
thousands)
|
||||||||
Net
loss
|
$ | (21,329 | ) | $ | (1,683 | ) | ||
Prior
service
credit
|
548 | 10 | ||||||
(20,781 | ) | (1,673 | ) | |||||
Deferred
tax
benefit
|
7,273 | 586 | ||||||
Accumulated
other comprehensive loss, net of
tax
|
$ | (13,508 | ) | $ | (1,087 | ) |
2008
|
2007
|
|||||||||||||||
Defined
Benefit
Pension
Plan
|
Restoration
Plan
|
Defined
Benefit
Pension
Plan
|
Restoration
Plan
|
|||||||||||||
Discount
rate
|
6.10 | % | 6.10 | % | 6.25 | % | 6.25 | % | ||||||||
Compensation
increase rate
|
4.50 | % | 4.50 | % | 4.50 | % | 4.50 | % |
2008
|
2007
|
2006
|
||||||||||
Defined
Benefit Pension Plan
|
(in
thousands)
|
|||||||||||
Service
cost
|
$
|
1,240
|
$
|
1,330
|
$
|
1,339
|
||||||
Interest
cost
|
2,424
|
2,313
|
2,190
|
|||||||||
Expected
return on assets
|
(2,990
|
)
|
(2,529
|
)
|
(2,324
|
)
|
||||||
Net
loss amortization
|
417
|
483
|
784
|
|||||||||
Prior
service credit amortization
|
(42
|
)
|
(42
|
)
|
(42
|
)
|
||||||
Net
periodic benefit cost
|
$
|
1,049
|
$
|
1,555
|
$
|
1,947
|
||||||
Restoration
Plan
|
||||||||||||
Service
cost
|
$
|
85
|
$
|
61
|
$
|
68
|
||||||
Interest
cost
|
228
|
168
|
183
|
|||||||||
Transition
obligation recognition
|
–
|
3
|
3
|
|||||||||
Net
loss amortization
|
152
|
85
|
180
|
|||||||||
Prior
service credit amortization
|
(2
|
)
|
(2
|
)
|
(2
|
)
|
||||||
Net
periodic benefit cost
|
$
|
463
|
$
|
315
|
$
|
432
|
2008
|
2007
|
2006
|
|||||
Defined
Benefit Pension Plan
|
|||||||
Discount
rate
|
6.25%
|
6.05%
|
5.625%
|
||||
Expected
long-term rate of return on plan assets
|
7.50%
|
7.50%
|
7.875%
|
||||
Compensation
increase rate
|
4.50%
|
4.50%
|
4.50%
|
||||
Restoration
Plan
|
|||||||
Discount
rate
|
6.25%
|
6.05%
|
5.625%
|
||||
Compensation
increase rate
|
4.50%
|
4.50%
|
4.50%
|
Defined
Benefit
|
Restoration
|
|||||||
Pension
Plan
|
Plan
|
|||||||
Net
Loss
|
$ | 1,131 | $ | 140 | ||||
Prior
service credit
|
(42 | ) | (2 | ) | ||||
1,089 | 138 | |||||||
Deferred
tax
benefit
|
(381 | ) | (48 | ) | ||||
Other
comprehensive loss, net of tax
|
$ | 708 | $ | 90 |
Percentage
of Plan Assets
at
December 31,
|
|||||
2008
|
2007
|
||||
Asset Category
|
|||||
Equity
securities
|
51.1%
|
61.1%
|
|||
Debt
securities
|
27.8%
|
26.8%
|
|||
Cash
and cash equivalents
|
21.1%
|
12.1%
|
|||
Total
|
100.0%
|
100.0%
|
Defined
Benefit Pension Plan
|
Restoration
Plan
|
|||||||
2009
|
$ | 1,442 | $ | 97 | ||||
2010
|
1,565 | 108 | ||||||
2011
|
1,635 | 118 | ||||||
2012
|
1,880 | 232 | ||||||
2013
|
2,051 | 237 | ||||||
2014
through 2018
|
13,931 | 1,577 | ||||||
$ | 22,504 | $ | 2,369 |
Weighted
|
||||||||
Number
of
|
Average
Grant-
|
|||||||
Options
|
Date
Fair Value
|
|||||||
Nonvested
at beginning of the period
|
6,030 | $ | 4.91 | |||||
Vested
|
(6,030 | ) | $ | 4.91 | ||||
Nonvested
at end of period
|
– | $ | 4.91 |
Number
of Options
|
Weighted
Average Exercise Prices
|
Weighted
Average Remaining Contract Life (Years)
|
Aggregate
Intrinsic Value
(in
thousands)
|
||||||
Outstanding
at December 31,
2007
|
500,510
|
$
|
5.52
|
||||||
Exercised
|
(182,934
|
)
|
$
|
5.68
|
|||||
Cancelled
|
–
|
$
|
–
|
||||||
Outstanding
at December 31,
2008
|
317,576
|
$
|
5.42
|
1.42
|
$
|
5,536
|
|||
Exercisable
at December 31,
2008
|
317,576
|
$
|
5.42
|
1.42
|
$
|
5,536
|
Securities
Available For Sale
|
Level
1
|
Level
2
|
Level
3
|
Total
|
||||||||||||
Input
|
Input
|
Input
|
Fair
Value
|
|||||||||||||
Investment
Securities:
|
||||||||||||||||
U.S.
Treasury
|
$ | 5,031 | $ | – | $ | – | $ | 5,031 | ||||||||
Government
Sponsored Enterprise Debentures
|
– | 60,551 | – | 60,551 | ||||||||||||
State
and Political Subdivisions
|
– | 211,594 | – | 211,594 | ||||||||||||
Other
Stocks and Bonds
|
556 | – | 646 | 1,202 | ||||||||||||
Mortgage-backed
Securities:
|
||||||||||||||||
U.S.
Government Agencies
|
– | 168,299 | – | 168,299 | ||||||||||||
Government
Sponsored Enterprise
|
– | 858,214 | – | 858,214 | ||||||||||||
Total
|
$ | 5,587 | $ | 1,298,658 | $ | 646 | $ | 1,304,891 |
Securities
Available
For
Sale
|
||||
Beginning
Balance at January 1, 2008
|
$ | – | ||
Total
gains or losses (realized/unrealized):
|
||||
Included
in earnings (or changes in net assets)
|
– | |||
Included
in other comprehensive income (loss)
|
(5,354 | ) | ||
Purchases,
issuances and settlements
|
– | |||
Transfers
in and/or out of Level 3
|
6,000 | |||
Ending
Balance at December 31, 2008
|
$ | 646 | ||
The
amount of total gains or losses for the periods included in earnings (or
changes in net assets) attributable to the change in unrealized gains or
losses relating to assets still held at reporting date
|
– |
|
Cash and cash
equivalents - The carrying amounts for cash and cash equivalents is
a reasonable estimate of those assets' fair
value.
|
|
FHLB stock and other
investments - The carrying amount of FHLB stock is a reasonable
estimate of those assets’ fair
value.
|
|
Loans receivable - For
adjustable rate loans that reprice frequently and with no significant
change in credit risk, the carrying amounts are a reasonable estimate of
those assets' fair value. The fair value of fixed rate loans is
estimated by discounting the future cash flows using the current rates at
which similar loans would be made to borrowers with similar credit ratings
and for the same remaining maturities. Nonperforming loans are
estimated using discounted cash flow analyses or underlying value of the
collateral where applicable.
|
|
Deposit liabilities -
The fair value of demand deposits, savings accounts, and certain money
market deposits is the amount on demand at the reporting date, that is,
the carrying value. Fair values
for
|
|
Federal funds purchased and
repurchase agreements - Federal funds purchased and repurchase
agreements generally have an original term to maturity of one day and thus
are considered short-term borrowings. Consequently, their
carrying value is a reasonable estimate of fair
value.
|
|
FHLB advances - The
fair value of these advances is estimated by discounting the future cash
flows using rates at which advances would be made to borrowers with
similar credit ratings and for the same remaining
maturities.
|
|
Long-term debt - The
carrying amount for floating long-term debt is a reasonable estimate of
the debts’ fair value due to the fact the debt floats based on LIBOR and
resets quarterly. The carrying amount for the fixed rate
long-term debt is estimated by discounting future cash flows using rates
at which fixed rate long-term debt would be made to borrowers with similar
credit ratings and for the remaining
maturities.
|
At
December 31, 2008
|
At
December 31, 2007
|
|||||||||||||||
Carrying
|
Carrying
|
|||||||||||||||
Amount
|
Fair
Value
|
Amount
|
Fair
Value
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Financial
assets:
|
||||||||||||||||
Cash
and cash equivalents
|
$ | 66,774 | $ | 66,774 | $ | 76,004 | $ | 76,004 | ||||||||
Investment
securities:
|
||||||||||||||||
Available
for sale, at estimated fair value
|
278,378 | 278,378 | 109,928 | 109,928 | ||||||||||||
Held
to maturity, at cost
|
478 | 487 | 475 | 477 | ||||||||||||
Mortgage-backed
and related securities:
|
||||||||||||||||
Available
for sale, at estimated fair value
|
1,026,513 | 1,026,513 | 727,553 | 727,553 | ||||||||||||
Held
to maturity, at cost
|
157,287 | 159,451 | 189,965 | 189,913 | ||||||||||||
Federal
Home Loan Bank stock and
other
investments, at cost
|
41,476 | 41,476 | 21,919 | 21,919 | ||||||||||||
Loans,
net of allowance for loan losses
|
1,006,437 | 1,023,794 | 951,477 | 964,502 | ||||||||||||
Loans
held for sale
|
511 | 511 | 3,361 | 3,361 | ||||||||||||
Financial
liabilities:
|
||||||||||||||||
Retail
deposits
|
$ | 1,556,131 | $ | 1,564,369 | $ | 1,530,491 | $ | 1,538,489 | ||||||||
Federal
funds purchased and repurchase agreements
|
10,629 | 10,629 | 7,023 | 7,023 | ||||||||||||
FHLB
advances
|
884,874 | 916,344 | 440,039 | 442,223 | ||||||||||||
Long-term
debt
|
60,311 | 36,118 | 60,311 | 60,680 |
Actual
|
For
Capital Adequacy Purposes
|
To
Be Well Capitalized Under Prompt Corrective Actions
Provisions
|
||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||
As
of December 31, 2008:
|
(dollars
in thousands)
|
|||||||||||||||||
Total
Capital (to Risk Weighted Assets)
|
||||||||||||||||||
Consolidated
|
$
|
212,082
|
17.66
|
%
|
$
|
96,097
|
8.00
|
%
|
N/A
|
N/A
|
||||||||
Southside
Bank Only
|
$
|
208,394
|
17.35
|
%
|
$
|
96,067
|
8.00
|
%
|
$
|
120,084
|
10.00
|
%
|
||||||
Tier
1 Capital (to Risk Weighted Assets)
|
||||||||||||||||||
Consolidated
|
$
|
192,615
|
16.04
|
%
|
$
|
48,049
|
4.00
|
%
|
N/A
|
N/A
|
||||||||
Southside
Bank Only
|
$
|
193,370
|
16.10
|
%
|
$
|
48,033
|
4.00
|
%
|
$
|
72,050
|
6.00
|
%
|
||||||
Tier
1 Capital (to Average Assets) (1)
|
||||||||||||||||||
Consolidated
|
$
|
192,615
|
7.48
|
%
|
$
|
103,036
|
4.00
|
%
|
N/A
|
N/A
|
||||||||
Southside
Bank Only
|
$
|
193,370
|
7.51
|
%
|
$
|
102,960
|
4.00
|
%
|
$
|
128,700
|
5.00
|
%
|
||||||
As
of December 31, 2007:
|
||||||||||||||||||
Total
Capital (to Risk Weighted Assets)
|
||||||||||||||||||
Consolidated
|
$
|
182,148
|
17.02
|
%
|
$
|
85,603
|
8.00
|
%
|
N/A
|
N/A
|
||||||||
Southside
Bank Only
|
$
|
157,854
|
16.41
|
%
|
$
|
76,936
|
8.00
|
%
|
$
|
96,170
|
10.00
|
%
|
||||||
Fort
Worth National Bank Only
|
$
|
16,745
|
15.51
|
%
|
$
|
8,639
|
8.00
|
%
|
$
|
10,798
|
10.00
|
%
|
||||||
Tier
1 Capital (to Risk Weighted Assets)
|
||||||||||||||||||
Consolidated
|
$
|
159,690
|
14.92
|
%
|
$
|
42,802
|
4.00
|
%
|
N/A
|
N/A
|
||||||||
Southside
Bank Only
|
$
|
149,099
|
15.50
|
%
|
$
|
38,468
|
4.00
|
%
|
$
|
57,702
|
6.00
|
%
|
||||||
Fort
Worth National Bank Only
|
$
|
15,697
|
14.54
|
%
|
$
|
4,319
|
4.00
|
%
|
$
|
6,479
|
6.00
|
%
|
||||||
Tier
1 Capital (to Average Assets) (1)
|
||||||||||||||||||
Consolidated
|
$
|
159,690
|
7.73
|
%
|
$
|
82,625
|
4.00
|
%
|
N/A
|
N/A
|
||||||||
Southside
Bank Only
|
$
|
149,099
|
7.67
|
%
|
$
|
77,797
|
4.00
|
%
|
$
|
97,246
|
5.00
|
%
|
||||||
Fort
Worth National Bank Only
|
$
|
15,697
|
13.13
|
%
|
$
|
4,783
|
4.00
|
%
|
$
|
5,979
|
5.00
|
%
|
||||||
Years
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Current
tax provision
|
$
|
15,601
|
$
|
4,068
|
$
|
8,582
|
||||||
Deferred
tax benefit
|
(4,351
|
)
|
(92
|
)
|
(4,482
|
)
|
||||||
Provision
for tax expense charged to operations
|
$
|
11,250
|
$
|
3,976
|
$
|
4,100
|
Assets
|
Liabilities
|
|||||||
Writedowns
on OREO
|
$ | 108 | ||||||
Allowance
for loan losses
|
4,817 | |||||||
Retirement
and other benefit plans
|
(3,003 | ) | ||||||
Unrealized
gains on securities available for sale
|
(7,253 | ) | ||||||
Premises
and equipment
|
(312 | ) | ||||||
FHLB
stock dividends
|
(324 | ) | ||||||
Unfunded
status of defined benefit plan
|
7,859 | |||||||
State
Business Tax Credit
|
744 | |||||||
Other
|
216 | |||||||
Gross
deferred tax assets (liabilities)
|
13,744 | (10,892 | ) | |||||
Net
deferred tax asset at December 31, 2008
|
$ | 2,852 | ||||||
Writedowns
on OREO
|
$ | 55 | ||||||
Allowance
for loan losses
|
3,139 | |||||||
Retirement
and other benefit plans
|
(1,740 | ) | ||||||
Unrealized
gains on securities available for sale
|
(1,434 | ) | ||||||
Premises
and equipment
|
(270 | ) | ||||||
FHLB
stock dividends
|
(295 | ) | ||||||
Unfunded
status of defined benefit plan
|
3,886 | |||||||
State
Business Tax Credit
|
762 | |||||||
Other
|
217 | |||||||
Gross
deferred tax assets (liabilities)
|
8,059 | (3,739 | ) | |||||
Net
deferred tax asset at December 31, 2007
|
$ | 4,320 |
Years
Ended December 31,
|
||||||||||||||||
2008
|
2007
|
2006
|
||||||||||||||
Amount
|
Percent
of Pre-Tax Income
|
Amount
|
Percent
of Pre-Tax Income
|
Amount
|
Percent
of Pre-Tax Income
|
|||||||||||
Statutory
Tax
Expense
|
$
|
14,681
|
35.0
|
%
|
$
|
7,024
|
34.0
|
%
|
$
|
6,495
|
34.0
|
%
|
||||
Increase
(Decrease) in Taxes from:
|
||||||||||||||||
Tax
Exempt
Interest
|
(3,589
|
)
|
(8.6
|
%)
|
(2,470
|
)
|
(12.0
|
%)
|
(2,415
|
)
|
(12.6
|
%)
|
||||
Increase
in statutory
rate
|
(33
|
)
|
(0.0
|
%)
|
–
|
–
|
–
|
–
|
||||||||
State
Business Tax
Credit
|
–
|
–
|
(779
|
)
|
(3.8
|
%)
|
–
|
–
|
||||||||
State
Business
Tax
|
10
|
0.0
|
%
|
106
|
0.5
|
%
|
–
|
–
|
||||||||
Other
Net
|
181
|
0.4
|
%
|
95
|
0.5
|
%
|
20
|
0.1
|
%
|
|||||||
Provision
for Tax Expense Charged to Operations
|
$
|
11,250
|
26.8
|
%
|
$
|
3,976
|
19.2
|
%
|
$
|
4,100
|
21.5
|
%
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
Unused
commitments:
|
||||||||
Due
in one year or less
|
$ | 77,789 | $ | 96,264 | ||||
Due
after one year
|
59,214 | 30,954 | ||||||
Total
|
$ | 137,003 | $ | 127,218 |
2009
|
$
|
1,161
|
2010
|
1,053
|
|
2011
|
796
|
|
2012
|
490
|
|
2013
|
262
|
|
Thereafter
|
–
|
|
$
|
3,762
|
CONDENSED
BALANCE SHEETS
|
December
31,
|
December
31,
|
||||||
2008
|
2007
|
|||||||
ASSETS
|
||||||||
Cash
and due from banks
|
$ | 1,479 | $ | 5,694 | ||||
Investment
in bank subsidiaries at equity in underlying net assets
|
213,190 | 180,993 | ||||||
Investment
in nonbank subsidiaries at equity in underlying net assets
|
1,567 | 1,717 | ||||||
Other
assets
|
1,422 | 1,021 | ||||||
TOTAL
ASSETS
|
$ | 217,658 | $ | 189,425 | ||||
LIABILITIES
|
||||||||
Long-term
debt
|
$ | 56,702 | $ | 56,702 | ||||
Other
liabilities
|
339 | 395 | ||||||
TOTAL
LIABILITIES
|
57,041 | 57,097 | ||||||
SHAREHOLDERS'
EQUITY
|
||||||||
Common
stock ($1.25 par, 20,000,000 shares authorized: 15,756,096 and 14,865,134
shares issued)
|
19,695 | 18,581 | ||||||
Paid-in
capital
|
131,112 | 115,250 | ||||||
Retained
earnings
|
34,021 | 26,187 | ||||||
Treasury
stock (1,731,570 and 1,724,857 shares, at cost)
|
(23,115 | ) | (22,983 | ) | ||||
Accumulated
other comprehensive loss
|
(1,096 | ) | (4,707 | ) | ||||
TOTAL
SHAREHOLDERS' EQUITY
|
160,617 | 132,328 | ||||||
TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY
|
$ | 217,658 | $ | 189,425 |
Years
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
INCOME
|
(in
thousands)
|
|||||||||||
Dividends
from subsidiary
|
$
|
6,000
|
$
|
9,800
|
$
|
7,600
|
||||||
Interest
income
|
116
|
82
|
50
|
|||||||||
TOTAL
INCOME
|
6,116
|
9,882
|
7,650
|
|||||||||
EXPENSE
|
||||||||||||
Interest
expense
|
3,869
|
2,726
|
1,681
|
|||||||||
Other
|
1,556
|
923
|
907
|
|||||||||
TOTAL
EXPENSE
|
5,425
|
3,649
|
2,588
|
|||||||||
Income
before income tax expense
|
691
|
6,233
|
5,062
|
|||||||||
Income
tax benefit
|
1,864
|
1,213
|
863
|
|||||||||
Income
before equity in undistributed earnings of subsidiaries
|
2,555
|
7,446
|
5,925
|
|||||||||
Equity
in undistributed earnings of subsidiaries
|
28,141
|
9,238
|
9,077
|
|||||||||
NET
INCOME
|
$
|
30,696
|
$
|
16,684
|
$
|
15,002
|
Years
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(in
thousands)
|
||||||||||||
OPERATING
ACTIVITIES:
|
||||||||||||
Net
Income
|
$
|
30,696
|
$
|
16,684
|
$
|
15,002
|
||||||
Adjustments
to reconcile net income to net cash provided by
operations:
|
||||||||||||
Equity
in undistributed earnings of subsidiaries
|
(28,141
|
)
|
(9,238
|
)
|
(9,077
|
)
|
||||||
(Increase)
decrease in other assets
|
(401
|
)
|
361
|
1,792
|
||||||||
(Decrease)
increase in other liabilities
|
(56
|
)
|
368
|
12
|
||||||||
Net
cash provided by operating activities
|
2,098
|
8,175
|
7,729
|
|||||||||
INVESTING
ACTIVITIES:
|
||||||||||||
Cash
paid in acquisition
|
–
|
(36,956
|
)
|
–
|
||||||||
Investment
in subsidiaries
|
–
|
(1,083
|
)
|
–
|
||||||||
Net
cash used in investing activities
|
–
|
(38,039
|
)
|
–
|
||||||||
FINANCING
ACTIVITIES:
|
||||||||||||
Purchase
of common stock
|
(132
|
)
|
(133
|
)
|
–
|
|||||||
Proceeds
from issuance of long-term debt
|
–
|
36,083
|
–
|
|||||||||
Proceeds
from issuance of common stock
|
2,084
|
1,641
|
1,750
|
|||||||||
Dividends
paid
|
(8,265
|
)
|
(6,466
|
)
|
(5,702
|
)
|
||||||
Net
cash (used in) provided by financing activities
|
(6,313
|
)
|
31,125
|
(3,952
|
)
|
|||||||
Net
(decrease) increase in cash and cash equivalents
|
(4,215
|
)
|
1,261
|
3,777
|
||||||||
Cash
and cash equivalents at beginning of year
|
5,694
|
4,433
|
656
|
|||||||||
Cash
and cash equivalents at end of year
|
$
|
1,479
|
$
|
5,694
|
$
|
4,433
|
2008
|
||||||||||||||||
Fourth
|
Third
|
Second
|
First
|
|||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|||||||||||||
Interest
income
|
$ | 38,245 | $ | 34,260 | $ | 31,575 | $ | 32,096 | ||||||||
Interest
expense
|
15,505 | 14,452 | 13,680 | 16,726 | ||||||||||||
Net
interest income
|
22,740 | 19,808 | 17,895 | 15,370 | ||||||||||||
Provision
for loan losses
|
5,339 | 3,150 | 2,947 | 2,239 | ||||||||||||
Noninterest
income
|
12,694 | 7,619 | 11,287 | 8,702 | ||||||||||||
Noninterest
expense
|
15,875 | 15,787 | 14,481 | 14,351 | ||||||||||||
Income
before income tax expense
|
14,220 | 8,490 | 11,754 | 7,482 | ||||||||||||
Provision
for income tax expense
|
3,851 | 2,240 | 3,223 | 1,936 | ||||||||||||
Net
income
|
10,369 | 6,250 | 8,531 | 5,546 | ||||||||||||
Earnings
per share
|
||||||||||||||||
Basic:
|
$ | 0.74 | $ | 0.45 | $ | 0.62 | $ | 0.40 | ||||||||
Diluted:
|
$ | 0.73 | $ | 0.44 | $ | 0.60 | $ | 0.39 |
2007
|
||||||||||||||||
Fourth
|
Third
|
Second
|
First
|
|||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|||||||||||||
Interest
income
|
$ | 30,689 | $ | 25,475 | $ | 24,380 | $ | 25,197 | ||||||||
Interest
expense
|
17,133 | 15,240 | 14,319 | 15,171 | ||||||||||||
Net
interest income
|
13,556 | 10,235 | 10,061 | 10,026 | ||||||||||||
Provision
for loan losses
|
1,397 | 620 | 217 | 117 | ||||||||||||
Noninterest
income
|
7,215 | 6,403 | 6,662 | 6,138 | ||||||||||||
Noninterest
expense
|
13,051 | 11,542 | 11,456 | 11,236 | ||||||||||||
Income
before income tax expense
|
6,323 | 4,476 | 5,050 | 4,811 | ||||||||||||
Provision
for income tax expense
|
1,489 | 976 | 463 | 1,048 | ||||||||||||
Net
income
|
4,834 | 3,500 | 4,587 | 3,763 | ||||||||||||
Earnings
per share
|
||||||||||||||||
Basic:
|
$ | 0.35 | $ | 0.26 | $ | 0.33 | $ | 0.28 | ||||||||
Diluted:
|
$ | 0.34 | $ | 0.25 | $ | 0.32 | $ | 0.27 |