Southside Bancshares (SBSI) in Tyler, Texas, posted a dip in third-quarter earnings because of a big decline in gains from the sale of securities.
The $3.5 billion-asset Southside earned $7.6 million in the period, a 12% decrease from the same period in 2012. The company attributed the lower profit to a $4.3 million drop in gains from the sale of securities.
Net interest income rose 14.8%, to $25.3 million, while Southside's net interest margin increased 22 basis points to 3.51%. The company attributed the gains to continued loan growth in its three major markets: East Texas, the Dallas-Fort Worth area and Austin. The primary reason for the increase in the net interest margin was the 41-basis point decline in the yield on interest-bearing liabilities, according to Southside.
Noninterest income fell 37% to $6.6 million, as the gain on sale of securities swung from $4.3 million to a loss of $3,000. Noninterest expense climbed 6.2% to $20.3 million, primarily because of an increase in salary and benefits costs.
Southside increased its loan-loss provision by 9%, to $3.6 million.