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Southside Bancshares (SBSI)
NYSE:SBSI
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Southside Bancshares
(NYSE:SBSI)
73Outperform
Southside Bancshares (SBSI) vs. S&P 500 (SPY)
Market Cap
$874.92M
Dividend Yield4.98%
Average Volume (3M)102.24K
Price to Earnings (P/E)9.9
Beta (1Y)0.94
Revenue Growth15.33%
EPS Growth3.68%
CountryUS
Employees815
SectorFinancial
Sector Strength77
IndustryBanking
Share Statistics
EPS (TTM)2.91
Shares Outstanding30,389,660
10 Day Avg. Volume108,008
30 Day Avg. Volume102,236
Financial Highlights & Ratios
PEG Ratio2.69
Price to Book (P/B)N/A
Price to Sales (P/S)3.44
Price to Cash Flow (P/CF)5.60
P/FCF Ratio2.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$37.00Price Target Upside28.07% Upside
Rating ConsensusHold
Number of Analyst Covering3
Southside Bancshares Business Overview & Revenue Model
Company DescriptionSouthside Bancshares, Inc. (SBSI) is a financial holding company headquartered in Tyler, Texas. It operates primarily through its subsidiary, Southside Bank, which offers a comprehensive array of financial services to individuals, businesses, and government entities. The bank's services include commercial banking, mortgage lending, consumer banking, and wealth management. Southside Bank is known for its community-focused approach, providing personalized service and fostering long-term relationships with its clients across its branches located in Texas.
How the Company Makes MoneySouthside Bancshares generates revenue primarily through interest income and non-interest income. Interest income is derived from loans offered to individuals and businesses, including commercial loans, consumer loans, and real estate loans. The bank earns interest on these loans, which constitutes the majority of its revenue. In addition to interest income, Southside Bancshares earns non-interest income from various services such as account fees, transaction fees, and wealth management services. Other significant revenue streams include income from securities and investments, as well as fees generated from mortgage banking activities. The company's earnings are also influenced by strategic partnerships and its ability to manage interest rate risks effectively.
Southside Bancshares Financial Statement Overview
Summary
Southside Bancshares demonstrates a solid financial foundation with strong equity metrics and positive revenue growth trends. The elimination of debt in 2024 significantly enhances its financial position. However, cash flow stability shows room for improvement.Income Statement
Southside Bancshares displayed a strong gross profit margin consistently at 100% due to its business structure. The net profit margin has fluctuated, with a slight decrease from 2022 to 2023, but has maintained a stable performance overall. Revenue growth rate was positive from 2023 to 2024, indicating a recovery from the previous year's dip.76
Positive
Balance Sheet
The company's balance sheet reflects a solid equity position with a high equity ratio. The debt-to-equity ratio improved significantly in 2024 with zero total debt, enhancing financial stability. Return on equity remained healthy, demonstrating effective use of shareholder funds.82
Very Positive
Cash Flow
Cash flow analysis shows free cash flow stability, though with some fluctuations in operating cash flow over the years. The free cash flow to net income ratio indicates a strong ability to generate cash relative to net income in recent years, despite a decrease in operating cash flow in 2024.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 414.34M | 241.71M | 251.88M | 237.73M | 235.98M | Gross Profit |
| 414.34M | 241.71M | 251.88M | 237.73M | 235.98M | EBIT |
| 0.00 | 101.13M | 160.27M | 130.83M | 93.49M | EBITDA |
| 0.00 | 111.71M | 130.74M | 142.25M | 105.57M | Net Income Common Stockholders |
| 88.49M | 86.69M | 105.02M | 113.40M | 82.15M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 91.41M | 560.51M | 1.41B | 2.97B | 2.70B | Total Assets |
| 8.52B | 8.28B | 7.56B | 7.26B | 7.01B | Total Debt |
| 976.45M | 893.32M | 533.45M | 526.05M | 1.11B | Net Debt |
| -91.41M | 379.58M | 418.03M | 324.30M | 1.00B | Total Liabilities |
| 7.71B | 7.51B | 6.81B | 543.86M | 1.13B | Stockholders Equity |
| 811.94M | 773.29M | 746.00M | 912.17M | 875.30M |
| Cash Flow | Free Cash Flow | |||
| 55.99M | 72.96M | 217.22M | 147.74M | 79.08M | Operating Cash Flow |
| 55.99M | 79.86M | 226.52M | 156.10M | 90.52M | Investing Cash Flow |
| -382.86M | -327.07M | -634.78M | -194.01M | -223.74M | Financing Cash Flow |
| 146.66M | 608.47M | 405.76M | 131.25M | 130.93M |
Southside Bancshares Technical Analysis
Negative
28.89
Price Trends
30.78
Negative
32.27
Negative
31.09
Negative
Market Momentum
-0.62
Positive
32.14
Neutral
11.81
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBSI, the sentiment is Negative. The current price of 28.89 is below the 20-day moving average (MA) of 30.12, below the 50-day MA of 30.78, and below the 200-day MA of 31.09, indicating a bearish trend. The MACD of -0.62 indicates Positive momentum. The RSI at 32.14 is Neutral, neither overbought nor oversold. The STOCH value of 11.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SBSI.
Southside Bancshares Risk Analysis
Southside Bancshares disclosed 41 risk factors in its most recent earnings report. Southside Bancshares reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Southside Bancshares Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $7.83B | 13.75 | 15.13% | 3.09% | 7.81% | -2.49% | |
73 Outperform | $874.92M | 9.88 | 11.16% | 4.98% | 15.33% | 3.68% | |
70 Outperform | $6.73B | 14.00 | 6.60% | 3.21% | 11.96% | 11.66% | |
68 Neutral | $6.35B | 12.15 | 9.70% | 2.27% | 11.17% | 1.47% | |
64 Neutral | $13.79B | 10.52 | 9.20% | 4.24% | 17.25% | -7.60% | |
61 Neutral | $5.00B | 22.42 | 14.39% | 2.06% | 18.54% | 12.22% |
* Financial Sector Average
Performance Comparison
SBSI
Southside Bancshares
28.85
2.67
10.20%
BOKF
Bok Financial
99.10
14.70
17.42%
CFR
Cullen/Frost Bankers
119.87
17.41
16.99%
FFIN
First Financial Bankshares
35.13
5.50
18.56%
PB
Prosperity Bancshares
69.30
10.20
17.26%
Southside Bancshares Earnings Call Summary
Earnings Call Date: Jan 29, 2025 | % Change Since: -10.58% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook with significant growth in net income, loans, and deposits, and low nonperforming assets. However, challenges included a decrease in net interest margin, increased unrealized losses in the securities portfolio, and rising noninterest expenses.Highlights
Increase in Net Income and Earnings Per Share
Net income increased by $1.8 million to $88.5 million, and earnings per diluted common share increased by $0.09 to $2.91 compared to 2023.
Positive Loan Growth
Loans increased by $83.5 million or 7.3% annualized during the fourth quarter, with a significant increase in commercial real estate loans.
Strong Deposit Growth
Deposits increased by $218.5 million or 3.4% on a linked-quarter basis, driven by public fund deposits and customer deposits.
Low Nonperforming Assets
Nonperforming assets decreased by $4.1 million or 53.1% on a linked-quarter basis, representing only 0.04% of total assets.
Wealth Management and Trust Growth
Wealth management and trust areas are experiencing growth, with anticipated revenue increases of at least 16% in 2025.
Lowlights
Decrease in Net Interest Margin
Net interest margin decreased by 12 basis points on a linked-quarter basis due to faster prepayments on premium mortgage-backed securities and other factors.
Increase in Unrealized Losses in Securities Portfolio
Net unrealized loss in the AFS securities portfolio increased by $28.9 million compared to last quarter.
Increased Noninterest Expense
Noninterest expense increased by $1.8 million or 5% on a linked-quarter basis, driven by salaries, employee benefits, and branch closure losses.
Efficiency Ratio Increase
The fully taxable equivalent efficiency ratio increased to 54% from 51.9% last quarter.
Company Guidance
During the Southside Bancshares fourth quarter and year-end 2024 earnings call, several key financial metrics and future guidance were highlighted. The company reported an increase in net income to $88.5 million, up by $1.8 million or 2.1% from 2023, with earnings per diluted share rising by $0.09 to $2.91. The fourth-quarter net income reached $21.8 million, marking a linked-quarter increase of $1.3 million or 6.1%, with earnings per share rising by $0.03 to $0.71. Loans grew by $83.5 million or 1.8% compared to the previous quarter, driven by a rise in commercial real estate loans. The net interest margin decreased by 12 basis points to 2.83% due to prepayments on premium mortgage-backed securities and a decline in average loan balances. However, the company anticipates positive net interest margin trends in 2025 due to restructuring of the mortgage-backed securities portfolio and expected slower Fed rate changes. Loan quality metrics remained strong, with nonperforming assets decreasing to 0.04% of total assets. Southside Bancshares also budgeted a mid-single-digit loan growth and a 5.7% increase in noninterest expense for 2025, with anticipated revenue growth in wealth management and trust areas projected at 16%.Southside Bancshares Corporate Events
Delistings and Listing Changes
Southside Bancshares Transfers Stock Listing to NYSE
Positive
Nov 4, 2024
Southside Bancshares, Inc. is set to transfer its common stock listing from Nasdaq to the New York Stock Exchange (NYSE), starting November 15, 2024. With a strong presence in Texas and significant growth since its IPO in 1998, Southside aims to leverage the NYSE platform for enhanced shareholder benefits. This move highlights Southside’s commitment to expanding its financial services and aligning with prestigious companies on the NYSE.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.