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Southside Bancshares (SBSI)
NYSE:SBSI
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Southside Bancshares
(NYSE:SBSI)
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Rating:68Neutral
Price Target:
$32.00
â–²(10.23% Upside)
Southside Bancshares' overall stock score is driven by a strong earnings call and attractive valuation, despite challenges in financial performance and technical indicators. The company's optimistic outlook and solid loan pipeline contribute positively, while technical analysis suggests caution.
Southside Bancshares (SBSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$874.13M
Dividend Yield4.98%
Average Volume (3M)121.30K
Price to Earnings (P/E)10.3
Beta (1Y)0.70
Revenue Growth3.54%
EPS Growth4.47%
CountryUS
Employees778
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.72
Shares Outstanding30,080,109
10 Day Avg. Volume146,340
30 Day Avg. Volume121,296
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.79
Enterprise Value/Revenue3.48
Enterprise Value/Gross Profit6.13
Enterprise Value/Ebitda13.58
Forecast
1Y Price Target
$33.67Price Target Upside15.98% Upside
Rating ConsensusHold
Number of Analyst Covering3
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 generates revenue primarily through interest income from loans and investments, as well as non-interest income from various banking services. The key revenue streams include interest earned on commercial and consumer loans, mortgage loans, and investment securities. Additionally, the company earns fees from service charges on deposit accounts, transaction-related fees, and wealth management services. Significant partnerships with local businesses and community organizations also enhance their customer base and contribute to earnings. The overall profitability is further supported by effective cost management and a focus on serving the needs of their target markets.
Southside Bancshares Earnings Call Summary
Earnings Call Date:Jul 25, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive sentiment with strong financial performance, an improved net interest margin, and a solid loan pipeline. Despite unexpected loan payoffs and a slight increase in nonperforming assets, the overall outlook remains optimistic for the remainder of 2025.Q2-2025 Updates
Positive Updates
Strong Net Income and Earnings
Net income of $21.8 million and diluted earnings per share of $0.72, with an annualized return on average assets of 1.07% and an annualized return on average tangible common equity of 14.38%.
Net Interest Margin Improvement
Net interest margin increased by 9 basis points to 2.95%, and net interest income increased by $414,000 to $54.3 million.
Solid Loan Pipeline
Loan pipeline exceeds $2.1 billion, with an increase in commercial real estate loans and construction loans.
Deposit Growth
Deposits, net of public funds and broker deposits, increased by $90.1 million.
Strong Second Quarter Loan Production
New loan production totaled approximately $293 million, more than double the first quarter production.
Positive Credit Quality
Overall credit quality remains strong with nonperforming assets at 0.39% of total assets.
Negative Updates
Unexpected Loan Payoffs
Unexpected $50 million payoff in the oil and gas portfolio and $150 million in commercial real estate payoffs affected loan growth.
Decrease in Certain Loan Categories
Decrease of $7.5 million in municipal loans and $5.3 million in 1-4 family residential loans.
Slight Increase in Nonperforming Assets
Nonperforming assets increased slightly, remaining concentrated in one large construction loan.
Unrealized Losses in Securities Portfolio
Net unrealized loss in the AFS securities portfolio increased to $60.4 million from $51.2 million.
Increased Noninterest Expense
Noninterest expense increased by $2.2 million or 5.8%, mainly due to a $1.2 million write-off and demolition of a branch.
Company Guidance
During the Southside Bancshares' Second Quarter 2025 Earnings Conference Call, the company provided guidance reflecting a cautiously optimistic outlook for the remainder of the year. The call highlighted a net income of $21.8 million, with diluted earnings per share of $0.72, and an annualized return on average assets of 1.07%. Despite experiencing heavy payoffs, the company reported strong new loan production totaling $293 million, with a noteworthy $104 million in net loan growth during June. The loan pipeline increased to $2.1 billion, signaling potential further growth. However, loan growth guidance was slightly lowered to 3-4% year-over-year due to uncertainties in payoffs. The net interest margin increased to 2.95%, with potential for further expansion, while deposits saw a net increase of $90.1 million. In terms of credit quality, nonperforming assets remained stable at 0.39% of total assets, and the allowance for credit losses decreased slightly to $48.3 million. The company also mentioned the impact of competitive pressures from debt funds on loan pricing and highlighted the potential for staff acquisition due to recent regional M&A activity. Overall, the company remains optimistic about its market conditions and growth prospects, particularly in Texas.Southside Bancshares Financial Statement Overview
Summary
Southside Bancshares exhibits a solid financial standing with strong cash flow generation and stable revenue growth. While profitability margins are under some pressure, operational efficiency remains robust. The balance sheet shows increased leverage, which needs careful monitoring to ensure long-term financial stability.Income Statement
Southside Bancshares has demonstrated a stable revenue growth with a notable increase from 2022 to 2023, despite a slight decrease in the TTM period. Gross profit margins remain strong, reflecting efficient cost management. However, the net profit margin has shown some decline in recent periods, indicating pressures on profitability. The EBIT and EBITDA margins are consistent, showcasing operational efficiency.65
Positive
Balance Sheet
The balance sheet indicates a solid equity base with a consistent increase in stockholders' equity over the years. However, the debt-to-equity ratio has increased, suggesting higher leverage which could pose risks if not managed carefully. The equity ratio is stable, indicating a balanced approach to asset financing.70
Positive
Cash Flow
The company has demonstrated strong cash flow generation capabilities, with significant free cash flow growth in recent years. The operating cash flow to net income ratio is healthy, indicating efficient conversion of income into cash. Free cash flow to net income ratio is favorable, highlighting robust cash generation relative to earnings.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 448.97M | 456.07M | 395.57M | 293.84M | 265.32M | 281.56M |
| Gross Profit | 254.87M | 254.51M | 241.71M | 249.96M | 255.86M | 216.80M |
| EBITDA | 114.93M | 117.84M | 111.71M | 130.74M | 142.25M | 105.57M |
| Net Income | 85.63M | 88.49M | 86.69M | 105.02M | 113.40M | 82.15M |
Balance Sheet | ||||||
| Total Assets | 8.34B | 8.52B | 8.28B | 7.56B | 7.26B | 7.01B |
| Cash, Cash Equivalents and Short-Term Investments | 109.67M | 1.48B | 1.81B | 1.41B | 2.97B | 2.70B |
| Total Debt | 778.88M | 976.45M | 893.32M | 550.52M | 542.73M | 1.13B |
| Total Liabilities | 7.53B | 7.71B | 7.51B | 6.81B | 6.35B | 6.13B |
| Stockholders Equity | 807.20M | 811.94M | 773.29M | 746.00M | 912.17M | 875.30M |
Cash Flow | ||||||
| Free Cash Flow | 19.58M | 90.69M | 72.96M | 217.22M | 147.74M | 79.08M |
| Operating Cash Flow | 27.07M | 101.85M | 79.86M | 226.52M | 156.10M | 90.52M |
| Investing Cash Flow | -50.82M | -382.86M | -327.07M | -634.78M | -194.01M | -223.74M |
| Financing Cash Flow | -68.03M | 146.66M | 608.47M | 405.76M | 131.25M | 130.93M |
Southside Bancshares Technical Analysis
Negative
29.03
Price Trends
30.01
Negative
29.39
Negative
29.45
Negative
Market Momentum
-0.30
Positive
38.84
Neutral
11.94
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 29.03 is below the 20-day moving average (MA) of 30.27, below the 50-day MA of 30.01, and below the 200-day MA of 29.45, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 38.84 is Neutral, neither overbought nor oversold. The STOCH value of 11.94 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 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 (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | 1.02B | 11.02 | 11.34% | 3.43% | 10.85% | 17.66% | |
76 Outperform | 932.30M | 11.03 | 9.42% | 2.50% | 5.18% | 13.05% | |
76 Outperform | 833.72M | 8.19 | 15.04% | 1.95% | 6.94% | 3.96% | |
72 Outperform | 990.44M | 12.31 | 9.93% | 3.61% | 31.82% | 460.57% | |
69 Neutral | 1.27B | 29.21 | 2.50% | 2.85% | 3.58% | -52.78% | |
68 Neutral | $874.13M | 10.32 | 10.65% | 4.98% | 3.54% | 4.47% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
SBSI
Southside Bancshares
29.03
-2.25
-7.19%
CFFN
Capitol Federal Financial
6.39
0.94
17.25%
NBN
Northeast Bancorp
102.65
25.89
33.73%
UVSP
Univest Of Pennsylvania
30.63
4.19
15.85%
ESQ
Esquire Financial Holdings
103.57
39.69
62.13%
AMTB
Amerant Bancorp
19.94
-0.23
-1.14%
Southside Bancshares Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Southside Bancshares Completes $150M Subordinated Notes Offering
Positive
Aug 14, 2025
On August 14, 2025, Southside Bancshares, Inc. completed its public offering of $150 million in 7.00% Fixed-to-Floating Rate Subordinated Notes due 2035. The net proceeds of approximately $147.75 million will be used for general corporate purposes, including potential redemption of existing notes, refinancing, stock repurchases, and acquisitions. The issuance aims to qualify as Tier 2 capital, enhancing the company’s financial flexibility and regulatory capital position.
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.
Private Placements and FinancingBusiness Operations and StrategyRegulatory Filings and Compliance
Southside Bancshares Announces $150M Notes Issuance
Neutral
Aug 8, 2025
On August 7, 2025, Southside Bancshares, Inc. announced an agreement to issue and sell $150 million in 7.00% Fixed-to-Floating Rate Subordinated Notes due 2035. The offering, expected to close on August 14, 2025, is part of the company’s strategy to strengthen its financial position and is conducted under an effective registration statement filed with the SEC.
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.
Executive/Board ChangesBusiness Operations and Strategy
Southside Bancshares Announces COO Retirement and Successor
Neutral
Aug 5, 2025
On August 4, 2025, Southside Bancshares announced the upcoming retirement of Brian K. McCabe, its Chief Operating Officer, effective November 14, 2025. The company plans to appoint Mitchell Craddock, currently Executive Vice President and Associate Chief Operations Officer, as his successor. Craddock brings over 20 years of experience in the banking industry, including roles at Q2 and Southside Bank, which positions him well to continue driving operational efficiencies and revenue growth.
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.
Business Operations and Strategy
Southside Bancshares Unveils New Investor Presentation
Positive
Aug 4, 2025
Southside Bancshares, Inc. announced that it will use a new investor presentation starting August 4, 2025, which will be available on its website. The company maintains a strong capital position and asset quality, with a diversified branch footprint and a long-tenured management team. The announcement highlights Southside’s strategic positioning in solid Texas markets, supported by long-term population growth, and its stable profitability across interest rate cycles.
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.
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.