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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): September 15,1995
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(September 15, 1995)
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SOUTHSIDE BANCSHARES CORP.
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(Exact name of registrant as specified in its charter)
MISSOURI
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(State or other jurisdiction of incorporation)
0-10849 43-1262037
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(Commission File Number) (IRS Employer Identification No.)
3606 GRAVOIS AVENUE, ST. LOUIS, MISSOURI 63116
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (314) 776-7000
Not Applicable
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS.
On September 15, 1995, Southside Bancshares Corp. (the" Registrant") mailed
to its shareholders of record, the Second Quarter 1995 Interim Report, attached
here to as Exhibit 99(i)(a), detailing certain financial information for the
six months ended June 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) Second Quarter 1995 Interim Report
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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.
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(Registrant)
September 15, 1995 By: /S/ Thomas M. Teschner
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Thomas M. Teschner,
President
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EXHIBIT INDEX
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Reg. S-K
Item 601
Exhibit No. Exhibit Page
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Exhibit 99(i)(a) Second Quarter 1995 Interim Report.....................5
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EXHIBIT 99(i)(a)
SOUTHSIDE
BANCSHARES
CORP.
SECOND QUARTER
1995 INTERIM REPORT
<PAGE>
Dear Shareholders:
It gives me great pleasure to report that earnings through the first half
of 1995 exceeded the first half of 1994, a year in which the Company established
a new level of record earnings. Net income through the first six months of 1995
was $3,939,000, compared to $2,464,000 through the comparable period in 1994;
however, 1995's earnings include the effects of two nonrecurring items, which
resulted in after-tax net income of $1,370,000. Excluding the effects of these
two items, 1995 earnings were $2,569,000, which is still $105,000 above 1994's
record setting pace. Most encouraging about our rising income trend is that the
majority of the increase is the result of an improved net interest margin, which
is the core indicator of any Bank's financial success.
As reflected on the Balance Sheet included in this report, total assets
have declined by $18,000,000 from year end; however, after factoring in the
$24,000,000 in assets sold as a part of the Bay-Hermann-Berger Bank transaction,
the remaining four subsidiary banks have actually grown by $6,000,000 during the
first half of the year. This equates to an annualized growth rate of
approximately 2.5%. Our current objective is to achieve controlled growth over
the next several months. Part of our strategy in selling the Bay-Hermann-Berger
Bank was the belief that we could replace the assets sold within the existing
framework of our other four subsidiary banks without increasing overhead
expense.
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,
/s/ Thomas M. Teschner
Thomas M. Teschner
President and Chief Executive Officer
September 15, 1995
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SOUTHSIDE BANCSHARES CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except share data)
(unaudited)
<TABLE>
<CAPTION>
June 30, December 31,
ASSETS 1995 1994
-------- ------------
<S> <C> <C>
Cash and due from banks $ 16,230 $ 19,028
Federal funds sold 13,300 9,600
Investments in debt securities:
Available-for-sale securities, at market value 49,934 51,137
Held-to-maturity securities, at amortized cost 109,060 122,098
-------- --------
Total investments in debt securities 158,994 173,235
-------- --------
Loans, net of unearned discount 297,345 301,397
Less allowance for possible loan losses (5,893) (7,144)
-------- --------
Loans, net 291,452 294,253
-------- --------
Bank premises and equipment 9,762 9,516
Other assets 9,380 11,486
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TOTAL ASSETS $499,118 $517,118
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LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Non-interest-bearing demand $ 57,010 $ 71,006
Interest-bearing demand and savings 180,349 198,346
Time deposits 207,022 198,741
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Total deposits 444,381 468,093
Short-term borrowings 3,052 3,378
Debt of employee stock ownership plan 2,987 -
Subordinated capital notes - 4,190
Other liabilities 3,999 3,455
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Total liabilities 454,419 479,116
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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,
285,500 shares issued and outstanding in 1995 and
259,144 shares issued and outstanding in 1994 285 259
Surplus 8,226 4,030
Unearned employee stock ownership plan shares (2,930) -
Retained earnings 39,395 35,890
Net unrealized holding losses on available-for-sale securities (277) (2,177)
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Total shareholders' equity 44,699 38,002
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $499,118 $517,118
======== ========
</TABLE>
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SOUTHSIDE BANCSHARES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except share data)
(unaudited)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
---------------------------
JUNE 30, JUNE 30, Percent
1995 1994 Change
-------- -------- -------
<S> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $13,191 $11,731 12%
Interest on investments in debt securities:
Taxable 4,151 4,093 1
Exempt from Federal income taxes 643 587 10
Interest on short-term investments 290 218 33
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TOTAL INTEREST INCOME 18,275 16,629 10
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INTEREST EXPENSE:
Interest on interest-bearing demand and savings
deposits 2,938 2,517 17
Interest on time deposits 5,178 4,311 20
Interest on short-term borrowings 118 119 (1)
Interest on debt of employee stock ownership plan 55 - -
Interest on subordinated capital notes 119 202 (41)
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TOTAL INTEREST EXPENSE 8,408 7,149 18
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NET INTEREST INCOME 9,867 9,480 4
Provision for possible loan losses 40 103 (61)
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NET INTEREST INCOME AFTER PROVISION
FOR POSSIBLE LOAN LOSSES 9,827 9,377 5
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NONINTEREST INCOME:
Trust department 467 444 5
Service charges on deposit accounts 597 635 (6)
Net gains (losses) on sale of other real estate
owned and other foreclosed property (130) 330 (139)
Settlement of litigation 1,400 - -
Gain on sale of Bay-Hermann-Berger Bank 825 - -
Other 335 231 45
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TOTAL NONINTEREST INCOME 3,494 1,640 113
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NONINTEREST EXPENSES:
Salaries and employee benefits 3,492 3,647 (4)
Net occupancy expense of bank premises 491 464 6
Equipment 521 358 46
Data processing 298 288 3
Federal Deposit Insurance Corporation assessment 544 637 (15)
Attorney fees 416 267 56
Other real estate owned 215 43 400
Other 1,932 1,939 -
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TOTAL NONINTEREST EXPENSES 7,909 7,643 3
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INCOME BEFORE FEDERAL INCOME TAX EXPENSE 5,412 3,374 60
Federal income tax expense 1,473 910 62
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NET INCOME $ 3,939 $ 2,464 60
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SHARE DATA:
Earnings per common share $ 15.01 $ 9.51 58
======= ======= ====
Dividends paid per common share $ 1.65 $ 0.60 175
======= ======= ====
Average common shares outstanding 262,305 259,144 1
======= ======= ====
</TABLE>
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<TABLE>
<CAPTION>
(dollars in thousands)
JUNE 30, December 31, June 30,
ASSET QUALITY 1995 1994 1994
-------- ------------ --------
<S> <C> <C> <C>
Nonaccrual loans $2,212 $2,829 $ 5,187
Loans past due ninety days and still accruing interest 1,120 2,419 2,819
Restructured loans -- -- 76
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TOTAL NONPERFORMING LOANS 3,332 5,248 8,082
Other real estate owned 1,323 1,833 2,628
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TOTAL NONPERFORMING ASSETS $4,655 $7,081 $10,710
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</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS Twelve Months Six Months
ENDED Ended Ended
JUNE 30, December 31, June 30,
SELECTED RATIOS 1995 /(1)/ 1994 1994 /(1)/
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<S> <C> <C> <C>
Loans to deposits 66.91% 64.39% 61.53%
Allowance for possible loan losses to total loans 1.98 2.37 2.76
Allowance for possible loan losses as % nonperforming loans 176.86 136.13 98.75
Total nonperforming loans as % of total loans 1.12 1.74 2.80
Nonperforming assets as % of total assets 0.93 1.37 2.07
Return on average assets 1.57/(2)/ 0.97 0.95
Return on average shareholders' equity 19.11/(2)/ 13.48 13.37
Net interest margin on average interest-
earning assets 4.42 4.27 4.14
Tier I leverage capital to adjusted total
consolidated assets less intangibles 8.98 7.68 7.18
Tier I capital to risk-weighted assets 14.57 12.73 12.34
Total capital to risk-weighted assets 15.83 15.33 14.99
</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 1.03% and 12.47%, 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>
2nd Quarter- 1995 $170.00 $170.00 $170.00 $167.52 101.48% $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>
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SOUTHSIDE BANCSHARES CORP.
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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
