Southside Bancshares (NYSE:SBSI) Releases Quarterly Earnings Results, Misses Estimates By $0.10 EPS

Southside Bancshares (NYSE:SBSI) announced its earnings results on Thursday. The company reported $0.70 EPS for the quarter, missing analysts’ consensus estimates of $0.80 by ($0.10), FiscalAI reports. Southside Bancshares had a net margin of 15.58% and a return on equity of 10.94%. The firm had revenue of $71.99 million for the quarter.

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

• Management sold ~$82M of low-yield, long-duration municipals (recording a $7.3M one-time loss) and reinvested proceeds into primarily 5.5% agency MBS (avg yield 5.36%), shortening portfolio duration and targeting a payback under 3.5 years to enhance future net interest income.
• Net interest income rose $1.5M linked quarter and tax-equivalent NIM expanded to 2.98%; management expects further margin improvement as funding costs decline and following the Feb 15, 2026 redemption of ~$93M subordinated debt (Q1 will include a one-time redemption charge).
• Fourth-quarter new loan production was ~$327M (about $215M funded) with payoffs of ~$164M, and the pipeline recovered to just over $2.0B (42% term, 58% construction/lines) with much of it early-stage and funding staggered over the next 6–9 quarters.
• Credit metrics remain strong: non-performing assets were low at 0.45% of assets, allowance for loan losses was 0.94% of loans, and recent NPA increases were small and concentrated (including a $27.5M multifamily loan management expects will refinance soon).
• Capital and liquidity are solid with all capital ratios well above “well-capitalized,” $2.78B of available liquidity lines, and continued opportunistic share repurchases (369,804 shares bought in Q4; ~762,000 shares remain authorized).

Southside Bancshares Price Performance

Southside Bancshares stock traded down $0.54 during mid-day trading on Friday, reaching $31.77. The company had a trading volume of 30,829 shares, compared to its average volume of 107,296. Southside Bancshares has a 1 year low of $25.85 and a 1 year high of $33.96. The company has a market capitalization of $955.32 million, a P/E ratio of 13.81 and a beta of 0.64. The stock’s 50-day simple moving average is $31.27 and its 200-day simple moving average is $30.03. The company has a debt-to-equity ratio of 0.48, a current ratio of 0.73 and a quick ratio of 0.73.

Analyst Upgrades and Downgrades

SBSI has been the topic of a number of research analyst reports. Wall Street Zen upgraded Southside Bancshares from a “sell” rating to a “hold” rating in a research report on Sunday, November 2nd. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Southside Bancshares in a research report on Monday, December 29th. One equities research analyst has rated the stock with a Hold rating, According to MarketBeat, the company has an average rating of “Hold”.

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.