Southside Bancshares (SBSI) AI Stock Analysis

• Market Cap: $942.91M
• Dividend Yield: 4.59%
• Average Volume (3M): 147.79K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.63
• Revenue Growth: -4.08%
• EPS Growth: -16.80%
• Country: US
• Employees: 778
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.70
• Shares Outstanding: 29,735,506
• 10 Day Avg. Volume: 155,858
• 30 Day Avg. Volume: 147,793
• PEG Ratio: -0.62
• Price to Book (P/B): 0.11
• Price to Sales (P/S): 2.19
• P/FCF Ratio: 31.88
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 1.96
• Enterprise Value/Gross Profit: 4.04
• Enterprise Value/Ebitda: 6.65
• 1Y Price Target: $35.00
• Price Target Upside: 10.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.12
• Revenue Forecast (FY): $293.00M

• Rating: 53 Neutral
• Price Target: $32.00 ▲(0.91% Upside)
• Action: Downgraded Date: 02/28/26
• Date: Action: Downgraded 02/28/26

The score is held back primarily by weakening recent financial performance (notably the sharp drop in operating cash flow/free cash flow and softer revenue/margins) and bearish near-term technical signals. These are partly offset by reasonable valuation (mid-teens P/E and ~4.6% yield) and a moderately positive earnings-call outlook for margin improvement into 2026, albeit with funding-mix and expense-growth headwinds.

Positive Factors

Strong capital and liquidity

Maintaining capital ratios well above regulatory thresholds and ~$2.8B in liquidity lines provides durable funding flexibility. This supports loan originations, cushions credit losses, and enables buybacks/redemptions without forcing asset sales, preserving strategic optionality over the next 2–6 months.

Securities portfolio repositioning

Reducing portfolio duration and reinvesting into higher-coupon agency MBS lowers interest-rate sensitivity and improves future net interest income. This structural repositioning supports more stable NII and less mark-to-market volatility as rates normalize, aiding margin durability.

Rebounding loan pipeline and diversified production

A rebuilt $2.0B-plus pipeline with balanced term, construction, and lines indicates sustainable future loan funding over multiple quarters. Diversified production reduces single-segment exposure and supports durable net interest income growth as funded loans ramp up through coming quarters.

Negative Factors

Deteriorating cash generation

Sharp YoY declines in operating and free cash flow weaken the firm's capacity to self-fund growth, dividends, and buybacks. If cash generation remains volatile, capital actions or balance-sheet adjustments may be required, constraining strategic flexibility over the medium term.

Concentrated broker-deposit outflows

Large, concentrated outflows from brokered deposits alter the funding mix and may force reliance on higher-cost or wholesale funding if not replaced by stable retail balances. That raises structural funding and margin risk and can constrain loan growth until deposit mix stabilizes.

Planned expense growth and one-time restructuring hits

A budgeted ~7% rise in operating expenses plus recent AFS-related onetime losses put pressure on efficiency and near-term earnings power. Higher recurring expense run-rate reduces margin buffer and requires stronger NII or fee growth to restore prior profitability levels.

Southside Bancshares Business Overview & Revenue Model

Company Description

Southside Bancshares, Inc. operates as the bank holding company for Southside Bank that provides a range of financial services to individuals, businesses, municipal entities, and nonprofit organizations. Its deposit products include savings, money market, and interest and noninterest bearing checking accounts, as well as certificates of deposit. The company's loan portfolio comprises consumer loans that include 1-4 family residential loans, home equity loans, home improvement loans, automobile loans, and other consumer related loans; commercial loans, such as short-term working capital loans for inventory and accounts receivable, short and medium-term loans for equipment or other business capital expansion, commercial real estate loans, and municipal loans; and construction loans for 1-4 family residential and commercial real estate. It also offers wealth management and trust services consisting of investment management, administration, revocable and testamentary trusts, and custodian services for individuals, partnerships, and corporations; safe deposit services; and brokerage services. As of December 31, 2021, the company operated through 56 banking facilities and 73 ATMs/ITMs. Southside Bancshares, Inc. was founded in 1960 and is headquartered in Tyler, Texas.

How the Company Makes Money

Southside Bancshares generates revenue primarily through net interest income, which is the difference between the interest earned on loans and the interest paid on deposits. Key revenue streams include interest from commercial and residential loans, consumer loans, and investment securities. Additionally, the bank earns non-interest income from various services such as fees from deposit accounts, wealth management services, and mortgage origination fees. Strategic partnerships with local businesses and community organizations also enhance its revenue by facilitating growth in lending and service offerings. Overall, the company's financial performance is driven by its ability to manage interest rate risk, control operating expenses, and expand its customer base through effective marketing and relationship-building.

Southside Bancshares Financial Statement Overview

Summary

Profitability remains positive but trends have softened: revenue declined in 2025 and net margin compressed. Operating cash flow and free cash flow dropped sharply year over year, raising durability concerns. Balance-sheet interpretation is clouded by year-to-year comparability issues (notably the 2025 shift showing zero debt alongside a large equity/assets jump).

Income Statement

Revenue growth has been volatile and recently weakened (2025 revenue down ~7.7% after modest growth in 2024), while profitability has compressed versus prior years. Net margin declined to ~16.5% in 2025 from ~19.4% in 2024 and well below the 2021–2022 peak levels, signaling pressure on earnings power even though the company remains solidly profitable.

Balance Sheet

Leverage looked elevated in recent history (debt running around ~1.2x equity in 2023–2024), and returns on equity have stepped down materially by 2025. The 2025 balance sheet shows debt reported at zero alongside a very large jump in equity and assets, which suggests comparability/data consistency issues year-over-year and adds uncertainty to the balance-sheet read.

Cash Flow

Cash generation has deteriorated: operating cash flow fell to ~$29M in 2025 from ~$102M in 2024, and free cash flow declined ~68% year over year. While free cash flow roughly matched net income in 2025, the sharp drop from prior years increases concern about cash flow durability and potential volatility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	419.03M	456.07M	395.57M	293.84M	265.32M
Gross Profit	233.99M	254.51M	241.71M	249.96M	255.86M
EBITDA	82.84M	117.84M	111.71M	130.74M	142.25M
Net Income	69.22M	88.49M	86.69M	105.02M	113.40M
Balance Sheet
Total Assets	16.18B	8.52B	8.28B	7.56B	7.26B
Cash, Cash Equivalents and Short-Term Investments	1.54B	1.48B	1.81B	1.41B	2.97B
Total Debt	0.00	976.45M	893.32M	550.52M	542.73M
Total Liabilities	7.67B	7.71B	7.51B	6.81B	6.35B
Stockholders Equity	8.51B	811.94M	773.29M	746.00M	912.17M
Cash Flow
Free Cash Flow	28.73M	90.69M	72.96M	217.22M	147.74M
Operating Cash Flow	28.73M	101.85M	79.86M	226.52M	156.10M
Investing Cash Flow	-50.00M	-382.86M	-327.07M	-634.78M	-194.01M
Financing Cash Flow	81.55M	146.66M	608.47M	405.76M	131.25M

Southside Bancshares Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 31.71
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBSI, the sentiment is Neutral. The current price of 31.71 is below the 20-day moving average (MA) of 32.74, below the 50-day MA of 32.14, and above the 200-day MA of 29.72, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 44.27 is Neutral, neither overbought nor oversold. The STOCH value of 29.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SBSI.

Southside Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESQ	79 Outperform	$873.68M	17.38	19.19%	0.66%	17.98%	14.35%
UVSP	70 Outperform	$957.09M	10.88	9.61%	2.59%	4.49%	20.44%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CFFN	65 Neutral	$937.47M	12.86	6.53%	4.73%	6.27%	79.25%
NBN	65 Neutral	$889.03M	10.75	19.62%	0.04%	33.22%	38.44%
AMTB	56 Neutral	$868.18M	17.18	7.21%	1.79%	15.37%	―
SBSI	53 Neutral	$942.91M	13.86	8.53%	4.59%	-4.08%	-16.80%

Southside Bancshares Corporate Events

Southside Bancshares Announces CEO Insurance Pact, Board Change

On February 19, 2026, Southside Bank entered into a split-dollar life insurance agreement with President and CEO Keith Donahoe, under which the bank owns and is primary beneficiary of life insurance policies on his life while his designated beneficiary receives up to $2.1 million, indexed annually for inflation, if he dies while employed. If Donahoe dies after leaving the bank and meeting vesting conditions tied to age, service, disability, change in control, or board discretion, his beneficiary will receive a benefit equal to 1.5 times his final-year base salary, and following his retirement the bank will pay him an annual tax gross‑up bonus on the economic value of the coverage.

Also on February 19, 2026, the boards of Southside Bancshares and Southside Bank acknowledged that director Michael J. Bosworth will retire at the end of his term at the 2026 annual meeting on May 14, 2026, in line with the company’s mandatory age policy and not due to any dispute. Following Bosworth’s departure from both boards, the company approved a reduction in the size of each board from 14 to 13 members, signaling a modest governance adjustment while confirming board stability and orderly succession planning.

The most recent analyst rating on (SBSI) stock is a Hold with a $35.00 price target. To see the full list of analyst forecasts on Southside Bancshares stock, see the SBSI Stock Forecast page.

Southside Bancshares Announces Redemption of Subordinated Notes

On January 6, 2026, Southside Bancshares, Inc. announced it will redeem all of its outstanding 3.875% Fixed to Floating Rate Subordinated Notes due 2030, with an aggregate principal amount of $100 million, on February 15, 2026. The redemption, which includes $7 million of notes previously repurchased by the company, will be executed at 100% of principal plus accrued and unpaid interest up to but excluding the redemption date, after which interest will cease to accrue, effectively removing this subordinated debt from the company’s capital structure and potentially altering its funding mix and leverage profile.

The most recent analyst rating on (SBSI) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on Southside Bancshares stock, see the SBSI Stock Forecast page.