Southside Bancshares (NYSE:SBSI) Posts Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Southside Bancshares (NYSE:SBSI) released its quarterly earnings data on Friday. The company reported $0.90 earnings per share for the quarter, beating the consensus estimate of $0.86 by $0.04, Zacks reports. Southside Bancshares had a return on equity of 10.81% and a net margin of 15.85%.The firm had revenue of $71.34 million during the quarter, compared to the consensus estimate of $75.00 million.

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

• Southside reported Q2 net income of $26.8 million and EPS of $0.90, with earnings up 15.4% sequentially helped by higher non-interest income and lower non-interest expense.
• Loan balances were essentially flat at $4.95 billion as strong production was offset by elevated payoffs, though management still expects mid-single-digit loan growth in 2026.
• Net interest margin fell to 2.90% as funding costs rose from a shift in funding mix, higher wholesale borrowing costs, and the maturity of cash flow hedges. Management said margin pressure could continue absent Fed rate hikes.
• Credit metrics remained solid, with non-performing assets at 0.11% of assets and classified assets down $31 million. Management said it does not expect losses in the CRE portfolio and sees additional payoff opportunities ahead.
• Fee income improved meaningfully, led by trust, brokerage, BOLI, and deposit services. The early build-out of the Fort Worth wealth team helped trust fees run ahead of budget, and the company expects continued momentum.

Southside Bancshares Price Performance

Shares of SBSI opened at $34.10 on Friday. The company has a market cap of $1.01 billion, a price-to-earnings ratio of 13.42 and a beta of 0.58. Southside Bancshares has a twelve month low of $26.32 and a twelve month high of $36.20. The company has a quick ratio of 0.74, a current ratio of 0.74 and a debt-to-equity ratio of 0.66. The company has a 50 day moving average of $33.87 and a two-hundred day moving average of $32.71.

Southside Bancshares Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, June 1st. Investors of record on Monday, May 18th were given a dividend of $0.36 per share. The ex-dividend date of this dividend was Monday, May 18th. This represents a $1.44 dividend on an annualized basis and a yield of 4.2%. Southside Bancshares’s dividend payout ratio is presently 61.02%.

Analyst Ratings Changes

A number of research firms have commented on SBSI. Weiss Ratings raised shares of Southside Bancshares from a “hold (c)” rating to a “buy (b-)” rating in a research report on Monday, May 4th. Benchmark started coverage on Southside Bancshares in a research report on Wednesday, June 24th. They set a “hold” rating on the stock. Finally, Piper Sandler assumed coverage on Southside Bancshares in a report on Wednesday, April 15th. They issued a “neutral” rating and a $35.00 price target on the stock. One investment analyst has rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $35.00.

Trending Headlines about Southside Bancshares

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

• Positive Sentiment: Southside Bancshares beat quarterly earnings estimates, reporting $0.90 EPS versus consensus around $0.86-$0.88, which is typically a supportive signal for the stock. Southside Bancshares, Inc. Announces Financial Results for the Second Quarter Ended June 30, 2026
• Positive Sentiment: Management described the quarter as solid, and the company posted strong profitability measures, including a 1.23% return on average assets and 16.09% return on average tangible common equity. Southside Bancshares Inc (SBSI) Q2 2026 Earnings Call Highlights: Strong Net Income Growth Amid …
• Neutral Sentiment: Revenue came in below expectations at $71.34 million versus the $75.00 million estimate, which tempers the earnings beat and may limit upside. Southside Bancshares tops earnings estimates despite revenue miss
• Neutral Sentiment: Additional coverage from earnings snapshots, transcripts, and analyst summaries mostly reiterates the same mixed message: an EPS beat paired with softer revenue. Compared to Estimates, Southside Bancshares (SBSI) Q2 Earnings: A Look at Key Metrics

Institutional Trading of Southside Bancshares

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Stifel Financial Corp acquired a new position in shares of Southside Bancshares during the fourth quarter valued at about $230,000. Mariner LLC grew its position in Southside Bancshares by 34.8% during the 3rd quarter. Mariner LLC now owns 11,930 shares of the company’s stock worth $337,000 after purchasing an additional 3,081 shares during the last quarter. Brevan Howard Capital Management LP purchased a new stake in Southside Bancshares during the 3rd quarter worth approximately $223,000. Aquatic Capital Management LLC increased its stake in Southside Bancshares by 18.0% during the 3rd quarter. Aquatic Capital Management LLC now owns 11,288 shares of the company’s stock valued at $319,000 after purchasing an additional 1,718 shares in the last quarter. Finally, BNP Paribas Financial Markets increased its stake in Southside Bancshares by 37.8% during the 3rd quarter. BNP Paribas Financial Markets now owns 11,578 shares of the company’s stock valued at $327,000 after purchasing an additional 3,177 shares in the last quarter. Hedge funds and other institutional investors own 55.70% of the company’s stock.

Southside Bancshares Company Profile

Southside Bancshares Inc is a bank holding company headquartered in Tyler, Texas. Through its subsidiary, Southside Bank, it provides a broad array of commercial and consumer banking services to individuals and businesses. The company’s offerings include deposit products, loan facilities and treasury management solutions tailored to the needs of its clientele. Established in 1974, Southside Bancshares has grown its footprint across East and North Texas while maintaining a community banking focus.

In the commercial banking segment, the company extends financing for real estate development, construction projects, equipment purchases and working capital needs.