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

Southside Bancshares (NYSE:SBSI) announced its quarterly earnings results on Thursday. The company reported $0.93 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.79 by $0.14, Zacks reports. The business 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 11.58% and a net margin of 21.48%.

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 1.1%

Southside Bancshares stock opened at $33.65 on Friday. The stock has a market capitalization of $1.00 billion, a PE ratio of 10.17 and a beta of 0.61. Southside Bancshares has a 12 month low of $27.59 and a 12 month high of $36.20. The business has a 50 day simple moving average of $31.38 and a 200-day simple moving average of $32.39. The company has a debt-to-equity ratio of 2.26, a current ratio of 0.89 and a quick ratio of 0.74.

Southside Bancshares Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Shareholders of record on Thursday, August 20th were issued a $0.37 dividend. The ex-dividend date of this dividend was Thursday, August 20th. This is an increase from Southside Bancshares’s previous quarterly dividend of $0.36. This represents a $1.48 annualized dividend and a yield of 4.4%. Southside Bancshares’s dividend payout ratio is 44.71%.

Trending Headlines about Southside Bancshares

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

• Positive Sentiment: Quarterly earnings exceeded expectations. Southside reported diluted EPS of $0.93, up from $0.80 a year earlier and $0.14 above the $0.79 consensus estimate. Revenue was approximately $74.0 million to $76.1 million, exceeding the roughly $72.7 million analyst forecast. Southside Bancshares Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: Profitability remained solid. Management highlighted a 1.27% return on average assets and a 16.31% return on average tangible common equity. The company also reported an 11.16% return on equity and a 16.70% net margin, supporting the view that operating performance remains healthy. Southside Bancshares Announces Third-Quarter Financial Results
• Positive Sentiment: Near-term repricing could support net interest income. Approximately 55% of the loan portfolio is expected to reprice within 90 days, potentially allowing Southside to benefit if lending yields remain favorable or interest-rate conditions improve. Southside Moderates 2026 Loan Growth Outlook
• Neutral Sentiment: The earnings call emphasized strong quarterly execution and profitability, but investors will focus on whether these results can continue amid changing rates and a slower-growth banking environment. Southside Bancshares Q3 2026 Earnings Call Transcript
• Negative Sentiment: Loan-growth expectations were reduced. Southside moderated its 2026 loan-growth outlook to the low-to-mid single-digit range, signaling softer demand or a more cautious underwriting stance and limiting a potential source of balance-sheet expansion. Southside Moderates 2026 Loan Growth Outlook

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the stock. Stephens set a $37.00 price objective on shares of Southside Bancshares in a report on Monday, July 27th. Wall Street Zen upgraded Southside Bancshares from a “hold” rating to a “buy” rating in a research note on Saturday. Weiss Ratings upgraded Southside Bancshares from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday. Keefe, Bruyette & Woods lowered their price target on Southside Bancshares from $37.00 to $35.00 and set a “market perform” rating for the company in a research report on Monday, August 3rd. Finally, Piper Sandler dropped their price target on Southside Bancshares from $37.00 to $33.00 and set a “neutral” rating on the stock in a research note on Monday, July 27th. One investment analyst has rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Southside Bancshares presently has a consensus rating of “Hold” and a consensus price target of $34.75.

About Southside Bancshares

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.