Southside Bancshares Inc. in Tyler, Texas, will restate its financial results for 2010 and 2011 to reflect an impairment charge for Federal Home Loan Bank option fees and changes in the fair value of certain securities.
The $3.3 billion-asset company said in a regulatory filing Monday that it will revise results for the fourth quarter of 2011 and restate results for 2010 and the first three quarters of last year.
Southside said that the changes will reduce its 2011 net income by about $1.5 million. In January, Southside reported net income of $40.6 million for the year. Southside also said the restatement will lower its 2010 earnings by $400,000; the company had originally reported that it had earned $39.5 million during that year.
The company also said that its management is evaluating its deficiencies in internal control over financial reporting. Management also "believes at least one deficiency exists and such deficiency will be classified as a material weakness" for the first, second and third quarters of 2011.