Risks for SOUTHSIDE BANCSHARES INC (SBSI)

Here are some interesting risks from the recent filings of SOUTHSIDE BANCSHARES INC. Our algorithms work hard to highlight risks unique to this company.

We are subject to the risk that our U.S. agency mortgage-backed securities (“MBS”) could prepay faster than we have projected.

We are subject to credit quality risks and our credit policies may not be sufficient to avoid losses.

We have a high concentration of loans secured by real estate and a decline in the real estate market, for any reason, could result in losses and materially and adversely affect our business, financial condition, results of operations and future prospects.

We may be adversely affected by declining crude oil prices.

If we fail to maintain an effective system of disclosure controls and procedures, including internal control over financial reporting, we may not be able to accurately report our financial results or prevent fraud, which could have a material adverse effect on our business, results of operation and financial condition. In addition, current and potential shareholders could lose confidence in our financial reporting, which could harm the trading price of our common stock.