Southside Bancshares Inc. (NASDAQ:SBSI) Q4 2017 Earnings Conference Call - Preliminary Transcript
Feb 06, 2018 • 10:00 am ET
Good day, ladies and gentlemen, and welcome to the Southside Bancshares, Inc., Fourth Quarter and Year-End 2017 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. (Operator Instructions) As a reminder, this conference call is being recorded.
I would now like to turn the conference over to your host, Suni Davis, Senior Vice President and Chief Risk Officer. Please go ahead.
Thank you, Andrew. Good morning, everyone, and thank you for joining Southside Bancshares' fourth quarter and year-end 2017 earnings call. The purpose for this call is to discuss the Company's results for the quarter and year-end as well as our outlook for upcoming quarters. 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 made are subject to risks and uncertainties. Factors that could materially change our current forward-looking assumptions are described in our earnings release and in our Form 10-K.
Joining me today to review Southside Bancshares' fourth quarter and year-end 2017 results are Lee Gibson, President and CEO; and Julie Shamburger, Senior EVP and CFO. Our agenda today is as follows. First, you will hear Julie discuss an overview of financial results for the quarter and year-end, including loan activity, asset quality, and update on our securities portfolio and the impact of tax reform. Then Lee will share his comments on 2017 including our progress with integrating Diboll State Bancshares as a result of the November 30, 2017 merger.
I will now turn the call over to Julie.
Thank you, Suni. Good morning, everyone. Welcome to Southside Bancshares' 2017 fourth quarter and year-end earnings call. We had a solid fourth quarter with net income of $10.3 million after the impact of both the Diboll State Bancshares acquisition expense and the write-down of our net deferred tax asset to the reduced corporate rate of 21% from 35% both occurring in the fourth quarter.
For the year ended December 31, 2017, we reported net income of $54.3 million, an increase of $5 million or 10.1% compared to $49.3 million for the same period in 2016. Our diluted earnings per share for the fourth quarter ended December 31, 2017 were $0.33 per share, a decrease of $0.09 or 21.4% compared to $0.42 per share for the same period in 2016.
For the year ended December 31, 2017 diluted earnings per share were $1.81, the same as for the year ended 2016. When combined both the impact of the acquisition expense net of tax and the write-down of the net deferred tax asset directly to income tax expense negatively impacted our earnings per share $0.16 and $0.19 per fully diluted share for the fourth quarter and year of 2017 respectively.
For the year ended December 31, 2017, total loans excluding acquired loans increased $116.5 million or 4.6% when compared to December 31, 2016.