Want to see SBSI full AI Analyst Report?
Top Page
Southside Bancshares
(NYSE:SBSI)
Select Model
Select Model
Rating:67Neutral
Price Target:
$37.00
▲(8.16% Upside)
Action:Reiterated
Date:07/25/26
SBSI scores as moderately attractive. The biggest driver is steady but weakening financial momentum (negative revenue trend, margin compression, and softer recent cash flow), partially offset by improved leverage. Valuation is a clear positive with a moderate P/E and strong dividend yield. Technicals are mixed (longer-term trend holds but near-term momentum is neutral), while the latest earnings call was modestly constructive but flagged real margin and funding/deposit pressures.
Positive Factors
Strong profitability metrics
Reported ROA and ROTCE indicate above-average capital efficiency for a regional bank. Sustained returns at these levels provide internal capital generation, support dividends and buybacks potential, and create a cushion to absorb margin pressure or credit volatility over the medium term.
Negative Factors
Net interest margin compression
Persisting NIM decline reduces core earnings power and free cash flow if sustained. With funding costs rising and some hedges maturing, structural margin pressure could persist absent lasting loan repricing or a favorable rate backdrop, challenging profitability consistency.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability metrics
Reported ROA and ROTCE indicate above-average capital efficiency for a regional bank. Sustained returns at these levels provide internal capital generation, support dividends and buybacks potential, and create a cushion to absorb margin pressure or credit volatility over the medium term.
Read all positive factors
Southside Bancshares (SBSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$984.26M
Dividend Yield4.35%
Average Volume (3M)147.79K
Price to Earnings (P/E)13.0
Beta (1Y)0.67
Revenue Growth-4.09%
EPS Growth-9.75%
CountryUS
Employees781
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.54
Shares Outstanding29,807,980
10 Day Avg. Volume155,858
30 Day Avg. Volume147,793
Financial Highlights & Ratios
PEG Ratio-0.62
Price to Book (P/B)1.08
Price to Sales (P/S)2.19
P/FCF Ratio12.46
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$35.00Price Target Upside2.31% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)3.29
Revenue Forecast (FY)$292.85M
Southside Bancshares Business Overview & Revenue Model
Company Description
Southside Bancshares, Inc. functions as the holding company for its subsidiary, Southside Bank, which delivers a comprehensive suite of financial solutions to diverse clients, including individual consumers, commercial enterprises, governmental bo...
How the Company Makes Money
Southside Bancshares makes money primarily through its banking subsidiary by (1) earning net interest income and (2) generating noninterest (fee) income. Net interest income is the spread between interest earned on interest-earning assets—mainly c...
Southside Bancshares Earnings Call Summary
Earnings Call Date:Jul 24, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call presented a mix of notable positives—double-digit linked-quarter EPS and net income growth, strong fee income performance (trust and brokerage), disciplined expense control and an improving efficiency ratio, robust new loan production and an expanding loan pipeline, plus solid liquidity and capital. Offsetting these strengths are meaningful near-term headwinds: NIM compression and a slight decline in net interest income driven by higher funding costs (swap/hedge maturities and funding mix shifts), significant deposit outflows (notably brokered and public funds), and elevated loan payoffs that kept loan balances flat. Management remains constructive (targeting mid-single-digit loan growth, asset sensitivity to potential rate increases, and strategic M&A optionality), but margin and deposit competition risks create uncertainty in the near term. Overall, positives modestly outweigh the negatives given strong profitability, fee momentum, expense discipline and a healthy balance sheet, though margin and funding pressures warrant monitoring.Positive Updates
Earnings and EPS Growth
Net income of $26.8 million for Q2, a linked-quarter increase of $3.6 million (15.4%). Diluted earnings per share of $0.90, up $0.12 linked quarter (15.4%).
Negative Updates
Net Interest Margin Compression
Tax-equivalent net interest margin decreased 11 basis points to 2.90% (from 3.01% prior quarter). Net interest spread fell 12 basis points to 2.26% (from 2.38%). Net interest income decreased $355,000 or 0.6% linked quarter.
Read all updates
Q2-2026 Updates
Positive
Negative
Earnings and EPS Growth
Net income of $26.8 million for Q2, a linked-quarter increase of $3.6 million (15.4%). Diluted earnings per share of $0.90, up $0.12 linked quarter (15.4%).
Read all positive updates
Company Guidance
Management reiterated mid‑single‑digit loan growth for 2026 and modeled Fed funds flat for the rest of 2026 (Moody’s base case) while noting the bank is asset sensitive and would benefit if rates rise; they expect the securities portfolio to be maintained around $2.7–$2.8B (total duration 7.2 years, AFS duration 4.3), have $2.0B of liquidity lines available, cash flow hedge notional of $615M (next $25M maturity in Nov at ~4.63%), fair value swaps $358.1M (including $100M added in Q2), and plan to reinvest securities cash flows into AFS MBS (Q2 MBS purchases coupon 5–5.5% yield ~5.4%) and bank sub‑debt (Q2 purchases yield 6.25%); key metrics and near‑term funding items include loans of $4.95B with a $1.47B pipeline (run‑not‑closed ~$287M; pipeline 52% term / 48% construction), Q2 new loan production $487M (funded ~$300M) and payoffs $297M, 62% floating / 38% fixed loans (82% of floating have floors), $336.6M fixed‑rate loans repricing/maturing in 12 months (≈$160M ≤4% with ~$105.3M repricing by year‑end; repricing could add ~200 bps), deposits down $705.1M (‑10.3% Q/Q) driven by brokered deposit decline of $777.9M, reciprocal deposits $360.1M, wholesale funding ~$1.4B, CDs spot 3.67% (Q2 avg 3.69%) with $581.3M repricing in Q3 (avg 3.72%) and $941.4M by year‑end (avg 3.71%), securities principal cash flows $109.5M (‑$17.4M Q/Q); Q2 financials/guides included net income $26.8M (+15.4% linked), EPS $0.90, ROA ~1.23%, ROTCE ~16.09%, tax‑equivalent NIM 2.90% (‑11 bps), spread 2.26% (‑12 bps), net interest income down $355K (‑0.6%), non‑interest income +$1.4M (+11.2%), non‑interest expense $38.7M (Q2) with budgeted average non‑interest expense ≈$40.5M for remaining quarters, efficiency ratio 52.96%, allowance for credit losses $49.3M (0.92% of loans), NPAs 0.11% of assets, classified assets down $31M, estimated 2026 effective tax rate ~17.7%, and >700,000 shares still authorized for repurchase.Southside Bancshares Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
70
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 457.60M | 419.03M | 456.07M | 395.57M | 293.84M | 265.32M |
| Gross Profit | 227.18M | 233.99M | 254.51M | 241.71M | 249.96M | 255.86M |
| EBITDA | 137.14M | 82.84M | 117.84M | 111.71M | 130.74M | 142.25M |
| Net Income | 76.00M | 69.22M | 88.49M | 86.69M | 105.02M | 113.40M |
Balance Sheet | ||||||
| Total Assets | 8.76B | 8.51B | 8.52B | 8.28B | 7.56B | 7.26B |
| Cash, Cash Equivalents and Short-Term Investments | 1.97B | 1.65B | 1.48B | 1.81B | 1.41B | 2.97B |
| Total Debt | 1.64B | 734.09M | 976.45M | 893.32M | 550.52M | 542.73M |
| Total Liabilities | 7.88B | 7.67B | 7.71B | 7.51B | 6.81B | 6.35B |
| Stockholders Equity | 882.46M | 847.62M | 811.94M | 773.29M | 746.00M | 912.17M |
Cash Flow | ||||||
| Free Cash Flow | 126.74M | 73.48M | 90.69M | 72.96M | 217.22M | 147.74M |
| Operating Cash Flow | 145.21M | 93.82M | 101.85M | 79.86M | 226.52M | 156.10M |
| Investing Cash Flow | -479.26M | -34.22M | -382.86M | -327.07M | -634.78M | -194.01M |
| Financing Cash Flow | 341.20M | -95.97M | 146.66M | 608.47M | 405.76M | 131.25M |
Southside Bancshares Technical Analysis
Positive
34.21
Price Trends
33.81
Negative
33.02
Positive
31.65
Positive
Market Momentum
-0.35
Negative
48.62
Neutral
73.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBSI, the sentiment is Positive. The current price of 34.21 is above the 20-day moving average (MA) of 33.03, above the 50-day MA of 33.81, and above the 200-day MA of 31.65, indicating a neutral trend. The MACD of -0.35 indicates Negative momentum. The RSI at 48.62 is Neutral, neither overbought nor oversold. The STOCH value of 73.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SBSI.
Southside Bancshares Risk Analysis
Southside Bancshares disclosed 48 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.59B | 20.20 | 17.82% | 0.62% | 19.99% | 10.00% | |
74 Outperform | $1.19B | 12.37 | 10.41% | 2.11% | 2.41% | 26.67% | |
72 Outperform | $1.16B | 10.43 | 19.35% | 0.03% | 9.28% | 25.70% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $984.26M | 13.02 | 8.89% | 4.21% | -4.09% | -9.75% | |
67 Neutral | $1.11B | 13.43 | 8.01% | 4.39% | 7.53% | 38.21% | |
64 Neutral | $1.14B | 20.90 | 6.62% | 1.26% | 5.13% | ― |
* Financial Sector Average
SBSI
Southside Bancshares
33.08
4.38
15.27%
CFFN
Capitol Federal Financial
8.73
2.95
50.93%
NBN
Northeast Bancorp
134.92
34.85
34.83%
UVSP
Univest Of Pennsylvania
43.16
14.07
48.39%
ESQ
Esquire Financial Holdings
128.06
33.19
34.98%
AMTB
Amerant Bancorp
29.17
9.64
49.35%
Southside Bancshares Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Southside Bancshares Authorizes New Flexible Preferred Stock Shares
Positive
May 20, 2026
On May 14, 2026, Southside Bancshares held its 2026 Annual Meeting of Shareholders, where investors approved an amendment to its Restated Certificate of Formation to authorize up to 8,000,000 shares of flexible preferred stock, effective May 19, 2...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.