Brian McCabe, Chief Operating Officer of Southside Bancshares Inc. (NASDAQ:NYSE:SBSI), recently executed a series of stock transactions, according to a recent SEC filing. On November 25, McCabe sold a total of 11,385 shares of common stock at a price of $36.67 per share, amounting to $417,487.
In addition to the sales, McCabe also acquired shares as part of stock option exercises. He acquired a total of 11,385 shares at prices ranging from $34.50 to $34.83, totaling $394,323. Following these transactions, McCabe holds 14,497 shares directly, with additional shares held indirectly through an ESOP and a 401k SSB Trust.
"In other recent news, Southside Bancshares 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 decrease 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 adjusted its 2024 loan growth target from 5% to 3%, citing expected payoffs as the reason.
Southside Bancshares announced that board member George H. (Trey) Henderson, III will not seek re-election at the upcoming annual shareholder meeting scheduled for May 2025. The company's filings stated that Henderson's departure is not due to disagreements with the company regarding its operations, policies, or practices.
The company 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
Southside Bancshares Inc. (NASDAQ:SBSI) has demonstrated resilience in its financial performance and shareholder returns, which provides context to the recent insider transactions by COO Brian McCabe. According to InvestingPro data, the company's market capitalization stands at $1.08 billion, with a price-to-earnings ratio of 12.8, indicating a relatively attractive valuation compared to industry peers.
InvestingPro Tips highlight that Southside Bancshares has maintained dividend payments for 27 consecutive years and has raised its dividend for 11 consecutive years. This consistent dividend history underscores the company's commitment to shareholder returns, which may be a factor in executive stock transactions. The current dividend yield of 4.0% is particularly noteworthy for income-focused investors.
The company's stock has shown strong momentum, with a significant 38.29% price total return over the past six months. This performance aligns with another InvestingPro Tip indicating a large price uptick over the last six months, suggesting positive market sentiment towards SBSI.
While the company faces challenges, including weak gross profit margins as noted by InvestingPro, it remains profitable with a healthy operating income margin of 43.13% for the last twelve months. This profitability, combined with analysts' predictions of continued profitability this year, may provide reassurance to investors regarding the company's financial health.
For readers interested in a more comprehensive analysis, InvestingPro offers additional tips and metrics beyond those mentioned here. In fact, there are 6 more InvestingPro Tips available for Southside Bancshares, providing deeper insights into the company's financial position and market performance.
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