Southside Bancshares (SBSI) AI Stock Analysis

• Market Cap: $963.62M
• Dividend Yield: 4.49%
• Average Volume (3M): 141.24K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.60
• Revenue Growth: -4.08%
• EPS Growth: -16.80%
• Country: US
• Employees: 778
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.84
• Shares Outstanding: 30,066,126
• 10 Day Avg. Volume: 130,945
• 30 Day Avg. Volume: 141,240
• PEG Ratio: 3.07
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 2.11
• P/FCF Ratio: 10.61
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 2.81
• Enterprise Value/Gross Profit: 5.79
• Enterprise Value/Ebitda: 9.56
• 1Y Price Target: $32.00
• Price Target Upside: -0.16% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 3.01
• Revenue Forecast (FY): $271.54M

• Rating: 74 Outperform
• Price Target: $34.00 ▲(6.08% Upside)

Southside Bancshares' overall stock score is driven by strong technical indicators and a stable financial position with robust cash flow generation. However, challenges in profitability and recent earnings call lowlights, such as a significant net income decrease and loss on securities sales, weigh on the score. The company's strategic corporate events, including board expansion and stock repurchase, provide a positive outlook for future shareholder value.

Positive Factors

Strong Cash Flow Generation

Robust cash flow generation enhances financial flexibility, allowing the company to invest in growth opportunities and return value to shareholders.

Board Expansion and Leadership Promotion

Strategic leadership changes and board expansion can strengthen governance and operational execution, supporting long-term strategic goals.

Loan and Deposit Growth

Growth in loans and deposits indicates strong market demand and customer trust, enhancing revenue potential and market position.

Negative Factors

Declining Profit Margins

Decreasing profit margins suggest rising costs or pricing pressures, which can impact profitability and require strategic cost management.

Significant Net Income Decrease

A sharp decline in net income reflects challenges in maintaining profitability, potentially affecting investment capacity and shareholder returns.

Increase in Nonperforming Assets

Rising nonperforming assets may indicate credit quality issues, increasing risk and potentially impacting future earnings and asset quality.

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

Southside Bancshares demonstrates stable financial performance with operational efficiency but faces challenges in revenue growth and cash generation. The balance sheet shows moderate leverage management, but reliance on debt is notable.

Income Statement

Southside Bancshares shows a mixed performance in its income statement. The company has maintained a healthy gross profit margin, but its net profit margin has decreased over the TTM period. Revenue growth has been negative recently, indicating potential challenges in revenue generation. EBIT and EBITDA margins remain stable, suggesting operational efficiency, but the declining revenue growth rate is a concern.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved slightly in the TTM period, indicating better leverage management. Return on equity remains stable, showcasing consistent profitability. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing, which could pose risks in a volatile market.

Cash Flow

Cash flow analysis reveals some weaknesses. The free cash flow growth rate has significantly declined in the TTM period, raising concerns about cash generation. The operating cash flow to net income ratio is low, indicating potential inefficiencies in converting income to cash. However, the free cash flow to net income ratio remains reasonable, suggesting some level of cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	454.01M	456.07M	395.57M	293.84M	265.32M	281.56M
Gross Profit	220.42M	254.51M	241.71M	249.96M	255.86M	216.80M
EBITDA	133.43M	117.84M	111.71M	130.74M	142.25M	105.57M
Net Income	70.02M	88.49M	86.69M	105.02M	113.40M	82.15M
Balance Sheet
Total Assets	8.38B	8.52B	8.28B	7.56B	7.26B	7.01B
Cash, Cash Equivalents and Short-Term Investments	1.48B	1.48B	1.81B	1.41B	2.97B	2.70B
Total Debt	515.25M	976.45M	893.32M	550.52M	542.73M	1.13B
Total Liabilities	7.55B	7.71B	7.51B	6.81B	6.35B	6.13B
Stockholders Equity	834.85M	811.94M	773.29M	746.00M	912.17M	875.30M
Cash Flow
Free Cash Flow	90.63M	90.69M	72.96M	217.22M	147.74M	79.08M
Operating Cash Flow	108.89M	101.85M	79.86M	226.52M	156.10M	90.52M
Investing Cash Flow	-82.41M	-382.86M	-327.07M	-634.78M	-194.01M	-223.74M
Financing Cash Flow	-45.87M	146.66M	608.47M	405.76M	131.25M	130.93M

Southside Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 32.05 is above the 20-day moving average (MA) of 30.81, above the 50-day MA of 28.99, and above the 200-day MA of 28.61, indicating a bullish trend. The MACD of 0.96 indicates Negative momentum. The RSI at 69.09 is Neutral, neither overbought nor oversold. The STOCH value of 84.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$916.51M	18.81	19.19%	0.65%	17.98%	14.35%
UVSP	76 Outperform	$971.31M	11.41	9.61%	2.55%	4.49%	20.44%
SBSI	74 Outperform	$963.62M	13.92	8.53%	4.49%	-4.08%	-16.80%
AMTB	73 Outperform	$831.91M	12.72	7.21%	1.79%	15.37%	―
CFFN	71 Outperform	$943.73M	13.74	6.53%	4.73%	6.27%	79.25%
NBN	69 Neutral	$854.73M	10.08	19.62%	0.04%	33.22%	38.44%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Southside Bancshares Corporate Events

Southside Bancshares Expands Board and Promotes COO

On October 16, 2025, Southside Bancshares announced the expansion of its board of directors with the appointment of three new members, effective November 15, 2025, and the promotion of Mitchell Craddock to Chief Operating Officer following the retirement of Brian K. McCabe. Additionally, the company increased its stock repurchase plan authorization by 1 million shares, allowing for the repurchase of up to 2 million shares, reflecting a strategic move to enhance shareholder value.

Southside Bancshares Announces CEO Retirement and Successor

On September 18, 2025, Southside Bancshares announced that CEO Lee R. Gibson will retire on December 31, 2025, but will remain on the Board of Directors. Keith Donahoe, the current President, will succeed him as CEO and President. Donahoe, with over 30 years of banking experience, has been with Southside since 2021, previously serving in leadership roles at Frost Bank.