Southside Bancshares, Inc. (NASDAQ:SBSI) Q3 2024 Earnings Conference Call October 24, 2024 12:00 PM ET
Company Participants
Lindsey Bailes - VP, IR
Lee Gibson - President and CEO
Julie Shamburger - CFO
Conference Call Participants
Brett Rabatin - Hovde
Wood Lay - KBW
Matt Olney - Stephens
Operator
Ladies and gentlemen, thank you for standing by. Welcome to Southside Bancshares Third Quarter 2020 Earnings Call. [Operator Instructions]. Please be advised that today's conference is being recorded. I would like now to turn the conference over to your speaker today, Lindsey Bailes, Vice President, Investor Relations. Please go ahead.
Lindsey Bailes
Thank you, Michelle. Good morning, everyone, and welcome to southside Bancshares' Third Quarter 2024 Earnings Call. A transcript of today's call will be posted on southside.com under Investor Relations. During today's call and in other disclosures and presentations, I will remind you that any forward-looking statements are subject to risks and uncertainties. Factors that could materially change our current forward-looking assumptions are described in our earnings release and our Form 10-K.
Joining me today are Lee Gibson, CEO; and Julie Shamburger, CFO. First, Lee will share his comments on the quarter, and then Julie will give an overview of our financial results. I will now turn the call over to Lee.
Lee Gibson
Thank you, Lindsey. Good morning, everyone. This morning, we reported third quarter net income of $20.5 million, earnings per share of $0.68, a return on average tangible common equity of 13.9% and continued strong asset quality metrics. Linked quarter, our net interest income increased $1.86 million, and our net interest margin increased 8 basis points to 2.95%. During the quarter, we sold approximately $28 million of lower-yielding AFS municipal securities, unwound the related fair value swaps and recorded a loss of $1.9 million. we reinvested the proceeds in higher-yielding agency mortgage-backed securities.
The decrease in other noninterest income was primarily due to recording an impairment charge of $868,000 a on the sale of approximately $10 million of AFS municipal securities and the unwind of the related fair value swaps on October 1. Recent investments made in our wealth management and trust department are paying dividends as reflected by the steady growth in new clients and quarterly fee income. We anticipate this trend will continue. Linked quarter loans decreased slightly as we experienced a few large payoffs at the end of the quarter. Our loan pipeline remains solid.