Nov 12 - The board of directors of Southside Bancshares Inc. in Tyler, Texas, (Nasdaq:SBSI), parent company of Southside Bank declared a special cash dividend for 2012 of 13 cents per common share in addition to declaring a regular quarterly cash dividend of 20 cents per common share. In addition, due to the potential changes in the tax code the board approved a one time only additional cash dividend of 20 cents per share. The board believes that it might be more beneficial for the shareholder to receive this one time cash dividend this year than in future years. This 20 cent one time only additional cash dividend will not be repeated in the foreseeable future. The combined cash dividend of 53cents is payable to common stock shareholders of record Nov. 21, 2012. The cash dividend is scheduled for payment on Dec. 6, 2012.
"We are pleased that our business plan has produced solid results during the nine months ended Sept. 30, 2012," said Sam Dawson, president and CEO. "Due to the achievement of these results, the board believes it is appropriate to share a portion of this success."
In a separate action the board of directors authorized a stock repurchase plan. The board authorized the purchase of up to $10 million of common stock open market purchases at prevailing prices to be reassessed on a quarterly basis.
"During the last five years we have organically doubled our capital through the retention of earnings. We believe investing a portion of those retained earnings in a firm we know quite well, Southside Bancshares Inc., is prudent," said Dawson.
About Southside Bancshares Inc.
Southside Bancshares Inc. is a bank holding company with approximately $3.22 billion in assets that owns 100 percent of Southside Bank. Southside Bank currently has 48 banking centers in Texas and operates a network of 49 ATMs.