Southside Bancshares Inc. (NYSE:SBSI), a Texas-based financial institution, announced today that board member George H. (Trey) Henderson, III has decided not to seek re-election at the upcoming annual shareholder meeting scheduled for May 2025. Henderson, who has served on the board since 2018, will continue his duties until the end of his term.
The company's filing with the Securities and Exchange Commission on Monday stated that Henderson's departure is not due to any disagreements with the company regarding its operations, policies, or practices. The notice did not include information regarding a potential successor or the reasons for Henderson's decision to leave the board.
Southside Bancshares, known for its commercial banking services under the standard industrial classification of state commercial banks, is incorporated in Texas and has its principal executive offices in Tyler, TX. The company's common stock is traded on the New York Stock Exchange under the ticker symbol SBSI.
The announcement is part of a standard 8-K filing, which companies use to inform shareholders and the Securities and Exchange Commission about significant events. Investors and stakeholders are often attentive to such changes in a company's leadership, as they can influence the company's strategic direction and governance.
The company's next steps regarding the board's composition following Henderson's departure will be watched closely by shareholders. According to the press release statement, further details about the transition and the upcoming annual meeting will likely be shared in due course.
In other recent news, Southside Bancshares Inc. has reported mixed third-quarter results for 2024, with a net income and earnings per share (EPS) of $20.5 million and $0.68, respectively.
Despite a decline from the preceding quarter, the bank saw an increase in net interest income by $1.86 million and a rise in the net interest margin to 2.95%. The company also adjusted its 2024 loan growth target from 5% to 3%, citing expected payoffs as the reason.
In addition, Southside Bancshares has made significant changes to its corporate governance structure by amending its bylaws to introduce mandatory annual executive sessions and the appointment of a lead independent director. These changes aim to enhance the Board's independent oversight capabilities.
In terms of future plans, Southside Bancshares is expanding its C&I lending initiative with new hires and anticipates noninterest expenses of $37 million for Q4 2024.
The company is not currently interested in acquiring any banks for sale but is targeting acquisitions of banks with assets between $1.2 billion and $4 billion along the I-35 corridor. These are the recent developments for the company.
InvestingPro Insights
As Southside Bancshares Inc. (NYSE:SBSI) prepares for a change in its board composition, investors may find additional context from recent financial data and analyst insights valuable. According to InvestingPro data, SBSI currently has a market capitalization of $1.1 billion and trades at a price-to-earnings ratio of 13.18, suggesting a relatively modest valuation compared to some peers in the banking sector.
InvestingPro Tips highlight that SBSI has maintained dividend payments for 27 consecutive years and has raised its dividend for 11 consecutive years, which may be reassuring for income-focused investors during this period of board transition. The company's dividend yield stands at 4.0%, potentially making it an attractive option for those seeking steady income streams.
Despite the upcoming board change, SBSI's financial performance appears solid. The company's operating income margin is robust at 43.13% for the last twelve months as of Q3 2024, indicating efficient operations. Additionally, SBSI has seen a significant price uptick over the last six months, with a total return of 38.18% during that period.
For investors seeking more comprehensive analysis, InvestingPro offers 7 additional tips for SBSI, providing a deeper understanding of the company's financial health and market position.
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