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Southside Bancshares (SBSI)
NYSE:SBSI
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Southside Bancshares
(NYSE:SBSI)
Rating:72Outperform
Price Target:
$32.00
â–²(4.00%Upside)
Southside Bancshares (SBSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$929.68M
Dividend Yield4.68%
Average Volume (3M)115.75K
Price to Earnings (P/E)10.6
Beta (1Y)0.75
Revenue Growth9.34%
EPS Growth8.12%
CountryUS
Employees778
SectorFinancial
Sector Strength81
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.72
Shares Outstanding30,213,963
10 Day Avg. Volume144,873
30 Day Avg. Volume115,745
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)1.06
Price to Sales (P/S)0.00
P/FCF Ratio24.29
Enterprise Value/Market Cap0.50
Enterprise Value/Revenue0.44
Enterprise Value/Gross Profit1.50
Enterprise Value/Ebitda1.27
Forecast
1Y Price Target
$32.00Price Target Upside4.00% Upside
Rating ConsensusHold
Number of Analyst Covering1
Southside Bancshares Business Overview & Revenue Model
Company DescriptionSouthside 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 MoneySouthside Bancshares makes money primarily through the interest income generated from its loan portfolio, which includes commercial real estate, residential mortgages, and consumer loans. Additionally, the company earns revenue from non-interest sources such as fees for services, including service charges on deposit accounts, trust and investment management fees, and mortgage banking income. Southside Bank also benefits from interest earned on its investment securities portfolio. The bank's strategic focus on building long-term relationships with its customers and maintaining a diversified mix of earning assets helps mitigate risk and sustain its revenue streams. Moreover, Southside's geographical presence in economically robust areas of Texas provides opportunities for expansion and growth in its customer base.
Southside Bancshares Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 9.23%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with several positive aspects, such as net income, a strong loan pipeline, and an improved net interest margin, offset by challenges like loan reductions, a decline in noninterest income, and increased nonperforming assets. The sentiment appears balanced with optimism about future growth and economic conditions.Q1-2025 Updates
Positive Updates
Net Income and Earnings Per Share
Southside Bancshares reported a solid first quarter with net income of $21.5 million and diluted earnings per share of $0.71.
Loan Pipeline Growth
The loan pipeline is the largest in the last 24 to 36 months, exceeding $1.9 billion, with a balanced mix of 45% term loans and 55% construction loans.
Net Interest Margin Improvement
A restructuring of $120 million in securities and an increase in the net of brokered and public fund deposits resulted in a three basis point increase in net interest margin to 2.86%.
Strong Credit Quality
Despite an increase in nonperforming assets, credit quality remains strong with nonperforming assets at 0.39% of total assets.
Repurchase of Shares
After the quarter end, Southside Bancshares repurchased 196,419 shares at an average price of $26.82 per share.
Positive Market Outlook
The Texas economy is anticipated to grow at a faster pace than the overall projected US growth rate, contributing to overall market optimism.
Negative Updates
Loan Reduction
A $94.4 million or 2% reduction in loans was experienced due to payoff activity primarily in the CRE portfolio.
Noninterest Income Decline
Noninterest income, excluding net loss on the sales of AFS Securities, decreased by $1.5 million or 12.2% for the linked quarter.
Increase in Nonperforming Assets
There was an increase in nonperforming assets and classified loans, with classified loans totaling $67 million compared to $48 million in the previous quarter.
Restructured CRE Credit
A negotiated extension of a large loan triggered a modified loan status, leading to an increase in nonperforming assets.
Decrease in Securities Portfolio
The securities portfolio decreased by $76.9 million or 2.7%, driven primarily by maturities and principal payments.
Company Guidance
In the first quarter of 2025, Southside Bancshares, Inc. reported net income of $21.5 million, translating to diluted earnings per share of $0.71. The company achieved an annualized return on average assets of 1.03% and an annualized return on average tangible common equity of 14.14%. Despite a 2% reduction in loans linked quarter, primarily due to a $94.4 million payoff in the CRE portfolio, the company remains optimistic about mid-single-digit loan growth for the year. The net interest margin improved by three basis points to 2.86%, supported by a restructuring of $120 million in securities and a decrease in funding costs. The loan pipeline is robust at $1.9 billion, marking the largest in recent years, with an expected closure rate of 25% to 30%. Credit quality remains strong, with nonperforming assets at 0.39% of total assets, although there was an increase in classified loans to $67 million. Expenses came in lower than anticipated, with noninterest expense decreasing to $37.1 million and the efficiency ratio increasing slightly to 55%. The company repurchased 196,419 shares at an average price of $26.82 post-quarter-end, with approximately 387,000 shares remaining in the current buyback authorization.Southside Bancshares Financial Statement Overview
Summary
Southside Bancshares exhibits a robust financial foundation with strong margins and equity metrics. Revenue growth trends are positive, though cash flow stability could be improved. The elimination of debt in 2024 significantly strengthens its financial position, indicating prudent financial management.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 295.40M | 257.86M | 241.71M | 251.88M | 238.89M | 231.83M |
| Gross Profit | 309.46M | 257.86M | 241.71M | 253.20M | 238.89M | 231.83M |
| EBITDA | 59.85M | 0.00 | 111.71M | 0.00 | 0.00 | 0.00 |
| Net Income | 88.49M | 88.49M | 86.69M | 105.02M | 113.40M | 82.15M |
Balance Sheet | ||||||
| Total Assets | 6.75B | 8.52B | 8.28B | 7.56B | 7.26B | 7.01B |
| Cash, Cash Equivalents and Short-Term Investments | 2.49B | 91.41M | 560.51M | 1.41B | 2.97B | 2.70B |
| Total Debt | 1.14B | 976.45M | 893.32M | 550.52M | 526.05M | 1.11B |
| Total Liabilities | 5.94B | 7.71B | 7.51B | 6.81B | 6.35B | 6.13B |
| Stockholders Equity | 804.58M | 811.94M | 773.29M | 746.00M | 912.17M | 875.30M |
Cash Flow | ||||||
| Free Cash Flow | 35.46M | 90.69M | 72.96M | 217.22M | 147.74M | 79.08M |
| Operating Cash Flow | 42.97M | 101.85M | 79.86M | 226.52M | 156.10M | 90.52M |
| Investing Cash Flow | -199.91M | -382.86M | -327.07M | -634.78M | -194.01M | -223.74M |
| Financing Cash Flow | -78.04M | 146.66M | 608.47M | 405.76M | 131.25M | 130.93M |
Southside Bancshares Technical Analysis
Positive
30.77
Price Trends
28.54
Positive
28.71
Positive
30.55
Positive
Market Momentum
0.46
Negative
72.60
Negative
89.04
Negative
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 30.77 is above the 20-day moving average (MA) of 28.74, above the 50-day MA of 28.54, and above the 200-day MA of 30.55, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 72.60 is Negative, neither overbought nor oversold. The STOCH value of 89.04 is Negative, 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 43 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 (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $988.68M | 11.41 | 11.54% | 3.41% | 12.27% | 10.88% | |
77 Outperform | $1.00B | 9.74 | 15.41% | 1.70% | 10.80% | 10.48% | |
75 Outperform | $945.41M | 11.71 | 9.65% | 2.44% | 10.25% | 8.73% | |
73 Outperform | $1.24B | 13.47 | 6.21% | 2.91% | 2.27% | -2.50% | |
72 Outperform | $929.68M | 10.57 | 11.03% | 4.68% | 9.34% | 8.12% | |
58 Neutral | $12.53B | 5.19 | -2.71% | 5.24% | 5.88% | -56.03% | |
56 Neutral | $945.17M | 12.70 | 10.45% | 3.79% | 37.59% | 969.87% |
* Financial Sector Average
Performance Comparison
SBSI
Southside Bancshares
30.77
5.55
22.01%
TMP
Tompkins Financial Corporation
65.48
20.94
47.01%
CTBI
Community Bancorp
55.18
14.96
37.20%
CNOB
ConnectOne Bancorp
24.70
7.02
39.71%
FMBH
First Mid-Illinois Bancshares
39.41
8.37
26.97%
AMAL
Amalgamated Bank
32.85
7.46
29.38%
Southside Bancshares Corporate Events
Shareholder MeetingsBusiness Operations and Strategy
Southside Bancshares Shareholders Approve 2025 Incentive Plan
Neutral
May 19, 2025
On May 14, 2025, Southside Bancshares, Inc. held its Annual Meeting of Shareholders, where key decisions were made. The shareholders approved the 2025 Incentive Plan, which reserves 1,200,000 shares for issuance, and elected directors for varying terms. Additionally, they ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for the year ending December 31, 2025. These decisions are expected to impact the company’s operations by aligning employee interests with shareholder value and ensuring continuity in governance and financial oversight.
The most recent analyst rating on (SBSI) stock is a Hold with a $37.00 price target. To see the full list of analyst forecasts on Southside Bancshares stock, see the SBSI Stock Forecast page.
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.