Southside Bancshares (NYSE:SBSI) Announces Earnings Results, Beats Estimates By $0.14 EPS

Southside Bancshares (NYSE:SBSI) issued its quarterly earnings results on Thursday. The company reported $0.93 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.79 by $0.14, Zacks reports. The company had revenue of $76.14 million for the quarter, compared to the consensus estimate of $72.67 million. Southside Bancshares had a return on equity of 11.16% and a net margin of 16.70%.

Here are the key takeaways from Southside Bancshares’ conference call:

• Third-quarter results improved: Net income rose 4.2% sequentially to $28 million, diluted EPS increased to $0.93, and tax-equivalent net interest margin expanded 12 basis points to 3.02% as loan and securities yields improved while funding costs remained relatively stable.
• Management expects further benefit from its asset-sensitive balance sheet, with approximately 55% of loans repricing within 90 days and $131 million of loans maturing or repricing in the fourth quarter. Executives also reported no charge-offs, declining classified assets, and no major near-term credit concerns.
• Loan growth expectations were reduced to the low- to mid-single digits for 2026 as $400 million of new production was largely offset by $281 million of payoffs, the pipeline declined to $1.2 billion, and management anticipates continued commercial real estate payoffs.
• Funding pressure is expected to increase as $517 million of CDs reprice in the fourth quarter and competition may require higher offered rates. Deposits declined 2.5% sequentially, while wholesale funding increased by $334 million to $1.7 billion.
• Rising longer-term interest rates drove the net unrealized loss in the available-for-sale securities portfolio to $93.3 million and increased accumulated other comprehensive losses to $149.8 million, despite strong reported capital ratios.

Southside Bancshares Stock Up 5.2%

NYSE SBSI opened at $33.28 on Friday. The business has a fifty day moving average price of $31.35 and a 200 day moving average price of $32.38. The company has a debt-to-equity ratio of 0.71, a quick ratio of 0.74 and a current ratio of 0.74. The company has a market cap of $992.17 million, a P/E ratio of 13.10 and a beta of 0.61. Southside Bancshares has a one year low of $27.59 and a one year high of $36.20.

Southside Bancshares Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Investors of record on Thursday, August 20th were paid a $0.37 dividend. The ex-dividend date of this dividend was Thursday, August 20th. This represents a $1.48 annualized dividend and a yield of 4.4%. This is an increase from Southside Bancshares’s previous quarterly dividend of $0.36. Southside Bancshares’s dividend payout ratio is currently 58.27%.

Analyst Ratings Changes

A number of analysts have recently commented on SBSI shares. Weiss Ratings cut Southside Bancshares from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday, October 12th. Piper Sandler decreased their target price on Southside Bancshares from $37.00 to $33.00 and set a “neutral” rating on the stock in a research report on Monday, July 27th. Zacks Research raised shares of Southside Bancshares from a “strong sell” rating to a “hold” rating in a research note on Thursday, September 24th. Stephens set a $37.00 price target on shares of Southside Bancshares in a research note on Monday, July 27th. Finally, Keefe, Bruyette & Woods cut their price target on shares of Southside Bancshares from $37.00 to $35.00 and set a “market perform” rating for the company in a report on Monday, August 3rd. Six equities research analysts have rated the stock with a Hold rating. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $34.75.

Trending Headlines about Southside Bancshares

Here are the key news stories impacting Southside Bancshares this week:

• Positive Sentiment: Q3 earnings and revenue exceeded expectations. Southside reported diluted EPS of $0.93, above the $0.79 consensus estimate and up from $0.80 a year earlier. Revenue reached $74.03 million, compared with Wall Street expectations of $72.67 million. Southside Bancshares Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: Profitability metrics remained healthy. Management highlighted a 1.27% return on average assets and a 16.31% return on average tangible common equity. Reported return on equity was 11.16%, with a 16.70% net margin, supporting the market’s favorable reaction. Southside Bancshares Announces Third-Quarter Financial Results
• Positive Sentiment: The earnings beat was meaningful. EPS exceeded the consensus estimate by $0.14, while revenue was approximately $1.36 million above expectations, indicating better-than-anticipated quarterly operating performance. Southside Bancshares Earnings Flash
• Negative Sentiment: Management moderated its 2026 loan-growth outlook to the low-to-mid-single digits. The revised outlook signals slower balance-sheet expansion than previously anticipated. Additionally, about 55% of loans are expected to reprice within 90 days, creating sensitivity to interest-rate movements and potentially pressuring future net interest income. Southside Bancshares Moderates 2026 Loan Growth Outlook

Southside Bancshares Company Profile

Southside Bancshares, Inc is a Texas-based financial holding company and the parent company of Southside Bank. Founded in 1960 and headquartered in Tyler, Texas, the company provides banking and financial services to individuals, businesses, and institutions.

Southside Bank offers a range of deposit products, including checking, savings, money market, and certificate of deposit accounts. Its lending activities include residential and commercial real estate loans, construction financing, commercial and industrial loans, consumer loans, and other forms of business credit.

The bank also provides treasury management, online and mobile banking, wealth management, trust and fiduciary services, and other financial solutions.