Southside Bancshares (SBSI) quietly Decreased its Annual “Stock Dividend” by 3% .
Southside Bancshares has been paying a 5% annual “Stock dividend ” each year since 1997. In a surprise move it has reduced the Stock Dividend to just 2% this year.
From the news release – The Stock Dividend cut was hidden in the regular dividend increase announcement:
TYLER, Texas, May 04, 2017 (GLOBE NEWSWIRE) — The Board of Directors of Southside Bancshares, Inc., (NASDAQ:SBSI), parent company of Southside Bank approved an increase to the regular quarterly cash dividend of $0.03 to $0.28 per common share and declared a regular quarterly cash dividend of $0.28 per common share. The cash dividend is payable to common stock shareholders of record May 18, 2017 and is scheduled for payment on June 1, 2017. In a separate motion, the Board of Directors declared a 2.5% common stock dividend payable to common shareholders of record May 30, 2017. The common stock dividend is scheduled for payment on June 27, 2017.
“The increase in the quarterly cash dividend, combined with the 2.5% common stock dividend represents a 14.5% increase in the cash dividend for our shareholders,” stated Lee R. Gibson, President and Chief Executive Officer of Southside Bancshares, Inc. “We are pleased that our success has allowed us to increase the portion we are able to return to our shareholders.”
About Southside Bancshares, Inc.
Southside Bancshares, Inc. is a bank holding company with approximately $5.66 billion inassets that owns 100% of Southside Bank. Southside Bank currently has 60 banking centers in Texas and operates a network of over 70 ATMs.
This move is very disappointing to me and at this time I am still evaluating whether to continue holding the stock or to sell it. Even more confusing is the fact that the Press release states that a 2.5% Stock Dividend was authorized ( which would indicate a 50% reduction) but their website shows only a 2% Stock Dividend.
I feel a lot of emotions from this move by Southside Bancshares. I feel Lied to, Deceived, Misled and I am angry , embarrassed and feel like a sucker. Now of course all those emotions are probably and exaggeration of what I should be feeling but I have to admit in my gut feelings i do feel like the company intentionally was hiding the fact that they lowered the Stock Dividend and tried to cover it up with the announcement of a increase in the regular dividend.
Why am I making a big deal about this? I’m not sure but I have long had a strict rule of Not Investing in Banks. I violated that rule and now the bank has violated me and I no longer trust them. Banks are in my opinion, nothing more than a legal system of robbery. They are a necessary evil for most but can be somewhat avoided by using Credit Unions in their place but I personally do my best to avoid them. Their fees are just insane and they charge for things that most people would balk at. I even had a bank that I used for a business account once charge $2.00 if you called and asked them a question. ( Yes it is true) I had the supervisor of that bank once that complained out one of my business practices ( I don’t recall what her complaint was ) but when I countered with at least I don’t charge my customers $2.00 for phone calls. She tried to deny this was true when the tellers chimed in and said – “actually what he is saying is true.” She never complained to me again.
So go ahead Southside – reduce your share dividend, raise your customer fees because in the end, I am sure some of us will enjoy the last laugh!
Yes it is True – Southside Bancshares has done the Unthinkable – It has Decreased its Stock Dividend by 3% !
Your thoughts and comments are always welcome !