Southside Bancshares (NYSE:SBSI) Posts Quarterly Earnings Results

Southside Bancshares (NYSE:SBSI) posted its quarterly earnings results on Thursday. The company reported $0.78 earnings per share for the quarter, beating analysts’ consensus estimates of $0.76 by $0.02, FiscalAI reports. Southside Bancshares had a return on equity of 10.81% and a net margin of 15.85%.The business had revenue of $70.29 million for the quarter, compared to analysts’ expectations of $70.92 million.

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

• Solid quarter — net income of $23.3M and EPS of $0.78 (up 11.4% linked-quarter) alongside improved NIM (3.01%), ROAA (1.10%) and ROTCE (14.39%) driven by strong loan production and lower funding costs.
• Funding and margin tailwinds — February redemption of ~$93M subordinated debt (7.51%) is lowering funding costs with additional Q2 benefits expected, and management bought MBS (~$313M) yielding ~5.24% to reinvest securities cash flows.
• Credit and pipeline caution — management moved 4 multifamily and 1 office loan to substandard due to slower lease-up and rent pressure, the loan pipeline shrank to ~$1.3B (from ~$2B), and the bank expects elevated payoffs for the remainder of 2026, keeping full-year loan growth guidance to mid-single digits.
• Expense and balance-sheet pressures — non-interest expense rose 8.3% (efficiency ratio widened to 54.98%), AFS unrealized losses increased to $16.3M, and wholesale funding climbed to $1.4B (including Fed borrowings), increasing reliance on non-core funding sources.

Southside Bancshares Stock Performance

NYSE SBSI traded up $1.32 on Friday, reaching $34.35. The stock had a trading volume of 135,742 shares, compared to its average volume of 84,995. The company has a debt-to-equity ratio of 1.03, a current ratio of 0.77 and a quick ratio of 0.73. The firm has a fifty day moving average of $31.65 and a two-hundred day moving average of $30.98. Southside Bancshares has a 1-year low of $26.32 and a 1-year high of $34.53. The company has a market cap of $1.02 billion, a P/E ratio of 15.00 and a beta of 0.59.

Southside Bancshares Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 5th. Shareholders of record on Thursday, February 19th were issued a $0.36 dividend. This represents a $1.44 dividend on an annualized basis and a yield of 4.2%. The ex-dividend date of this dividend was Thursday, February 19th. Southside Bancshares’s dividend payout ratio is currently 62.88%.

Trending Headlines about Southside Bancshares

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

• Positive Sentiment: Q1 EPS beat analyst estimates — reported $0.78 vs. a $0.76 consensus; profitability metrics (net margin ~15.6%, ROE ~10.7%) reaffirm core earnings strength. Southside Bancshares (SBSI) Tops Q1 Earnings and Revenue Estimates
• Positive Sentiment: Management set forward-looking targets: mid-single-digit loan growth for 2026 and a planned securities balance of $2.7B–$2.8B, signaling disciplined growth and predictable earning-asset mix. Southside targets mid-single-digit 2026 loan growth while projecting $2.7B-$2.8B securities balance
• Positive Sentiment: Earnings-call commentary highlighted continued loan growth and business-line traction, which supports net interest income durability if loan spreads hold. Southside Bancshares Inc (SBSI) Q1 2026 Earnings Call Highlights
• Neutral Sentiment: Revenue slightly missed consensus ($70.28M reported vs. $70.92M estimate), suggesting fee or noninterest income softness even as EPS beat. Southside Bancshares earnings release and transcript
• Neutral Sentiment: Street estimate for FY (consensus EPS ~3.24) remains in place — market will watch upcoming quarters to confirm sustainment of margins and payout capacity. Q1 2026 Earnings Call Transcript
• Negative Sentiment: Growth in the securities book to $2.7B–$2.8B could increase interest-rate and duration exposure; if rates decline or portfolio yields lag, net interest margin pressure is possible. Southside targets mid-single-digit 2026 loan growth while projecting $2.7B-$2.8B securities balance

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. State of Tennessee Department of Treasury grew its holdings in Southside Bancshares by 53.6% in the 4th quarter. State of Tennessee Department of Treasury now owns 11,319 shares of the company’s stock valued at $364,000 after buying an additional 3,950 shares in the last quarter. Mackenzie Financial Corp lifted its position in shares of Southside Bancshares by 36.5% during the 4th quarter. Mackenzie Financial Corp now owns 64,678 shares of the company’s stock valued at $1,994,000 after acquiring an additional 17,288 shares during the period. Empowered Funds LLC lifted its position in shares of Southside Bancshares by 25.5% during the 4th quarter. Empowered Funds LLC now owns 30,867 shares of the company’s stock valued at $938,000 after acquiring an additional 6,264 shares during the period. Odyssean LLC bought a new stake in shares of Southside Bancshares during the 4th quarter valued at $411,000. Finally, Bridgeway Capital Management LLC lifted its position in shares of Southside Bancshares by 39.1% during the 4th quarter. Bridgeway Capital Management LLC now owns 61,367 shares of the company’s stock valued at $1,865,000 after acquiring an additional 17,264 shares during the period. 55.70% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the stock. Keefe, Bruyette & Woods lifted their price objective on shares of Southside Bancshares from $31.00 to $35.00 and gave the stock a “market perform” rating in a research report on Monday, February 2nd. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Southside Bancshares in a research report on Friday, March 27th. Hovde Group lifted their price objective on shares of Southside Bancshares from $32.00 to $34.00 and gave the stock a “market perform” rating in a research report on Monday, February 2nd. Wall Street Zen raised shares of Southside Bancshares from a “sell” rating to a “hold” rating in a research report on Sunday, February 8th. Finally, Piper Sandler assumed coverage on shares of Southside Bancshares in a research report on Wednesday, April 15th. They set a “neutral” rating and a $35.00 price objective for the company. Five investment analysts have rated the stock with a Hold rating, According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $35.00.

About Southside Bancshares

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.