<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
________________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
________________________________________________________________________________
Date of Report (Date of earliest event reported):
December 15,1995 (December 15, 1995)
------------------------------------
SOUTHSIDE BANCSHARES CORP.
-----------------------------------------
(Exact name of registrant as specified in its charter)
MISSOURI
--------------------------------------------
(State or other jurisdiction of incorporation)
0-10849 43-1262037
- ------------------------ ---------------------------------
(Commission File Number) (IRS Employer Identification No.)
3606 GRAVOIS AVENUE, ST. LOUIS, MISSOURI 63116
-------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (314) 776-7000
Not Applicable
-----------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE>
ITEM 5. OTHER EVENTS.
On December 15, 1995, Southside Bancshares Corp. (the" Registrant") mailed
to its shareholders of record, the Third Quarter 1995 Interim Report, attached
here to as Exhibit 99(i) (a), detailing certain financial information for the
nine months ended September 30, 1995.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) FINANCIAL STATEMENTS OF BUSINESS ACQUIRED - Not applicable
(b) PRO FORMA FINANCIAL INFORMATION - Not applicable
(c) EXHIBITS - The following exhibits are included with this Report:
Exhibit 99(i)(a) Third Quarter 1995 Interim Report
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
SOUTHSIDE BANCSHARES CORP.
--------------------------
(Registrant)
December 15, 1995 By: /s/ Thomas M. Teschner
________________________________
Thomas M. Teschner,
President
<PAGE>
EXHIBIT INDEX
-------------
Reg. S-K
Item 601
Exhibit No. Exhibit Page
- --------------------------------------------------------------------------------
Exhibit 99(i)(a) Third Quarter 1995 Interim Report.......................5
<PAGE>
EXHIBIT 99(i)(a)
SOUTHSIDE
BANCSHARES
CORP.
THIRD QUARTER
1995 INTERIM REPORT
<PAGE>
Dear Shareholders:
I would like to begin by taking this opportunity to wish all of our
shareholders a happy and safe holiday season. We are pleased to report new
record earnings for the nine months ended September 30, 1995. Net income
increased 40.92% to $5,341,000 compared to $3,790,000 for the first nine months
of 1994. Earnings per share increased 38.41% to $20.25 for the first nine
months of 1995. For the quarter ended September 30, 1995, net income increased
5.73% to $1,402,000 or $5.24 per share from $1,326,000 or $5.12 per share in the
third quarter of 1994. Net earnings through the third quarter reflect an
annualized return on average assets of 1.42% and a return on average equity of
16.74%.
The 1995 results include the effects of two nonrecurring items which
resulted in $1,370,000 in after tax income. Excluding the impact of these
nonrecurring items, net income through the first nine months of 1995, is
$3,971,000, or $181,000 over the 1994 amount. This improved level of
profitability is the result of increased loan demand and an improvement in the
net interest margin.
Total assets at September 30, 1995 were $502,775,000 compared to
$517,118,000 as of December 31, 1994. This reflects a decline of $14,343,000;
however, the sale of the Bay-Hermann-Berger Bank resulted in a total asset
reduction of approximately $24 million. The Company's remaining four subsidiary
banks have grown by approximately $10 million, and have been successful in
replacing the assets from the sale of the Bay-Hermann-Berger Bank.
As part of our strategic business plan, we will continue to evaluate
potential growth opportunities to increase the value of our franchise. We are
pleased with the continued increase in the shareholder value and look forward to
the opportunities and challenges that are presented in our ever changing
industry.
As always, I would like to offer my sincere thanks and appreciation to the
dedicated staff, directors, loyal shareholders, customers and communities for
their continued support.
Sincerely,
Thomas M. Teschner
President and Chief Executive Officer
December 15, 1995
<PAGE>
SOUTHSIDE BANCSHARES CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except share data)
(unaudited)
<TABLE>
<CAPTION>
SEPTEMBER 30, December 31,
ASSETS 1995 1994
------------ -----------
<S> <C> <C>
Cash and due from banks $ 15,567 $ 19,028
Federal funds sold 15,900 9,600
Investments in debt securities:
Available-for-sale securities, at market value 48,729 51,137
Held-to-maturity securities, at amortized cost 109,786 122,098
-------- --------
Total investments in debt securities 158,515 173,235
-------- --------
Loans, net of unearned discount 299,366 301,397
Less allowance for possible loan losses (5,471) (7,144)
-------- --------
Loans, net 293,895 294,253
-------- --------
Bank premises and equipment 10,030 9,516
Other assets 8,868 11,486
-------- --------
TOTAL ASSETS $502,775 $517,118
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand $ 55,509 $ 71,006
Interest-bearing demand and savings 179,269 198,346
Time deposits 212,259 198,741
-------- --------
Total deposits 447,037 468,093
Short-term borrowings 2,170 3,378
Debt of employee stock ownership plan 2,987 -
Subordinated capital notes - 4,190
Other liabilities 4,609 3,455
-------- --------
Total liabilities 456,803 479,116
-------- --------
Commitments and contingent liabilities
Shareholders' equity:
Cumulative preferred stock, no par value, 1,000,000 shares
authorized and unissued - -
Common stock, $1 par value
5,000,000 shares authorized,
285,901 shares issued and outstanding in 1995 and
259,144 shares issued and outstanding in 1994 286 259
Surplus 8,295 4,030
Unearned employee stock ownership plan shares (2,863) -
Retained earnings 40,529 35,890
Net unrealized holding losses on available-for-sale securities (275) (2,177)
-------- --------
Total shareholders' equity 45,972 38,002
-------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $502,775 $517,118
======== ========
</TABLE>
<PAGE>
SOUTHSIDE BANCSHARES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except share data)
(unaudited)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30, September 30, Percent
1995 1994 Change
------------- ------------- -------
<S> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $ 19,960 $ 17,839 12%
Interest on investments in debt securities:
Taxable 6,148 6,287 (2)
Exempt from Federal income taxes 953 903 6
Interest on short-term investments 548 361 52
-------- -------- ----
TOTAL INTEREST INCOME 27,609 25,390 9
-------- -------- ----
INTEREST EXPENSE:
Interest on interest-bearing demand and savings deposits 4,363 3,863 13
Interest on time deposits 8,083 6,517 24
Interest on short-term borrowings 151 186 (19)
Interest on debt of employee stock ownership plan 110 - -
Interest on subordinated capital notes 119 303 (61)
-------- -------- ----
TOTAL INTEREST EXPENSE 12,826 10,869 18
-------- -------- ----
NET INTEREST INCOME 14,783 14,521 2
Provision for possible loan losses 55 148 (63)
-------- -------- ----
NET INTEREST INCOME AFTER PROVISION
FOR POSSIBLE LOAN LOSSES 14,728 14,373 2
-------- -------- ----
NONINTEREST INCOME:
Trust department 706 670 5
Service charges on deposit accounts 903 945 (4)
Net gains (losses) on sale of other real estate
owned and other foreclosed property (163) 189 (186)
Settlement of litigation 1,400 - -
Gain on sale of Bay-Hermann-Berger Bank 825 - -
Other 565 342 65
-------- -------- ----
TOTAL NONINTEREST INCOME 4,236 2,146 97
-------- -------- ----
NONINTEREST EXPENSES:
Salaries and employee benefits 5,227 5,459 (4)
Net occupancy expense of bank premises 902 695 30
Equipment 639 607 5
Data processing 638 436 46
Federal Deposit Insurance Corporation assessment 553 922 (40)
Attorney fees 519 335 55
Other real estate owned 102 71 44
Other 3,048 2,811 8
-------- -------- ----
TOTAL NONINTEREST EXPENSES 11,628 11,336 3
-------- -------- ----
INCOME BEFORE FEDERAL INCOME TAX EXPENSE 7,336 5,183 42
Federal income tax expense 1,995 1,393 43
-------- -------- ----
NET INCOME $ 5,341 $ 3,790 41
======== ======== ====
SHARE DATA:
Earnings per common share $ 20.25 $ 14.63 38
======== ======== ====
Dividends paid per common share $ 2.65 $ 1.15 130
======== ======== ====
Average common shares outstanding 263,753 259,144 2
======== ======== ====
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
(dollars in thousands)
SEPTEMBER 30, December 31, September 30,
ASSET QUALITY 1995 1994 1994
------------ ----------- ------------
<S> <C> <C> <C>
Nonaccrual loans $1,446 $2,829 $3,210
Loans past due ninety days and still accruing interest 747 2,419 1,756
Restructured loans - - 75
------ ------ ------
TOTAL NONPERFORMING LOANS 2,193 5,248 5,041
Other real estate owned 1,044 1,833 2,100
------ ------ ------
TOTAL NONPERFORMING ASSETS $3,237 $7,081 $7,141
====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
NINE MONTHS Twelve Months Nine Months
ENDED Ended Ended
SEPTEMBER 30, December 31, September 30,
1995 /(1)/ 1994 1994 /(1)/
SELECTED RATIOS ------------ ------------ ------------
<S> <C> <C> <C>
Loans to deposits 66.97% 64.39% 63.62%
Allowance for possible loan losses to total loans 1.83 2.37 2.69
Allowance for possible loan losses as % nonperforming loans 249.48 136.13 155.98
Total nonperforming loans as % of total loans 0.73 1.74 1.72
Nonperforming assets as % of total assets 0.64 1.37 1.40
Return on average assets 1.42/(2)/ 0.97 0.98
Return on average shareholders' equity 16.74/(2)/ 13.48 13.70
Net interest margin on average interest-
earning assets 4.40 4.27 4.23
Tier I leverage capital to adjusted total
consolidated assets less intangibles 9.14 7.68 7.52
Tier I capital to risk-weighted assets 14.93 12.73 12.71
Total capital to risk-weighted assets 16.19 15.33 15.36
</TABLE>
(1) Statistical information is annualized where applicable.
(2) Annualized information includes gain on the sale of Bay-Hermann-Berger
Bank and the net litigation settlement. Excluding the after-tax effect of these
two nonrecurring items, the return on average assets and shareholders' equity
would have been 1.05% and 12.45%, respectively.
COMMON STOCK - MARKET PRICE AND DIVIDENDS
The table below sets forth the high and low closing trade prices of the
Company's common stock for the periods presented. The Company's common stock is
traded on the National Association of Company Securities Dealers, Inc./
SmallCap Market System ("NASDAQ/SCM") under the symbol SBCO. Accordingly, the
information included below represents the high and low bid prices of the common
stock reported on NASDAQ/SCM.
<TABLE>
<CAPTION>
Book Dividends Paid
High Bid Low Bid Close Value Market/Book Per Common Share
-------- ------- ------- ------- ----------- ----------------
<S> <C> <C> <C> <C> <C> <C>
3rd Quarter- 1995 $178.00 $175.00 $178.00 $171.53 103.77% $1.00
2nd Quarter- 1995 170.00 170.00 170.00 167.52 100.25 1.00
1st Quarter- 1995 160.00 160.00 160.00 159.59 100.26 0.65
4th Quarter- 1994 160.00 160.00 160.00 146.64 109.11 0.65
3rd Quarter- 1994 165.00 165.00 165.00 145.36 113.51 0.55
2nd Quarter- 1994 165.00 165.00 165.00 142.39 115.88 0.30
1st Quarter- 1994 180.00 180.00 180.00 139.87 128.69 0.30
</TABLE>
<PAGE>
SOUTHSIDE BANCSHARES CORP.
=========================================================
BOARD OF DIRECTORS
Howard F. Etling, Chairman of the Board
Thomas M. Teschner, President and Chief Executive Officer
Richard F. Baalmann
Joseph W. Beetz
Ralph Crancer, Jr.
Douglas P. Helein
Charles F. Herwig
Earle J. Kennedy, Jr.
Norville K. McClain
Daniel J. Queen
Richard G. Schroeder, Sr.
OFFICERS
Thomas M. Teschner, President and Chief Executive Officer
Joseph W. Pope, Sr. Vice President & Chief Financial Officer
David J. Abeln, Vice President/Investments
Steven D. Voss, Vice President and Auditor
Nanette M. Beller, Assistant Auditor
Joanne M. Schneider, Secretary to the Board
Laura L. Thomas, Assistant Secretary to the Board
AFFILIATE BANKS
South Side National Bank in St. Louis
State Bank of DeSoto
Bank of Ste. Genevieve
Bank of St. Charles County
CORPORATE HEADQUARTERS
Southside Bancshares Corp.
3606 Gravois Avenue
St. Louis, Missouri 63116
(314) 776-7000
COMMON STOCK
NASDAQ National Market System: SBCO/(1)/
(1) Generally appears as SthsdBnc in the Saint Louis Post Dispatch Newspaper's
NASDAQ Small-Cap Stocks Table.
TRANSFER AGENT
Boatmen's Trust Company
510 Locust Street
St. Louis, Missouri 63101
(314) 466-1359 or (800) 456-9852
