Southside Bancshares (SBSI)
NYSE:SBSI
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Southside Bancshares
(NYSE:SBSI)
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Rating:53Neutral
Price Target:
$32.00
▲(3.96% Upside)
Action:DowngradedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Southside Bancshares (SBSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$915.26M
Dividend Yield4.59%
Average Volume (3M)147.79K
Price to Earnings (P/E)13.2
Beta (1Y)0.63
Revenue Growth-4.08%
EPS Growth-16.80%
CountryUS
Employees778
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.70
Shares Outstanding29,735,506
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 Cap1.40
Enterprise Value/Revenue2.87
Enterprise Value/Gross Profit5.91
Enterprise Value/Ebitda9.74
Forecast
1Y Price Target
$35.00Price Target Upside13.71% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)3.12
Revenue Forecast (FY)$293.00M
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...
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 loan...
Southside Bancshares Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call balanced firm-level positives — a strong Q4 earnings rebound, NIM expansion, active securities repositioning to improve future net interest income, a rebounding loan pipeline, strong liquidity and capital metrics, and buyback activity — against notable near-term headwinds: a YoY decline in 2025 earnings driven by onetime AFS losses, concentrated broker deposit outflows, elevated loan payoffs and modestly higher planned operating expenses for 2026. Management framed many negatives (AFS loss, tax impact) as strategic repositioning with payback expected within a few years and expressed optimism about 2026 margin expansion and loan growth.Positive Updates
Quarterly Net Income and EPS Surge
Q4 net income of $21.0 million, up $16.1 million or ~327% linked quarter; diluted EPS of $0.70, up $0.54 linked quarter — management described an "excellent quarter" excluding onetime securities sale loss.
Negative Updates
Full-Year Earnings Decline Due to AFS Restructuring
Reported 2025 net income of $69.2 million, down $19.3 million or 21.8% YoY; diluted EPS $2.29 vs $2.91 in 2024. The decline was driven primarily by the restructuring-related onetime losses in the AFS securities portfolio (including a $7.3M net loss in Q4).
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly Net Income and EPS Surge
Q4 net income of $21.0 million, up $16.1 million or ~327% linked quarter; diluted EPS of $0.70, up $0.54 linked quarter — management described an "excellent quarter" excluding onetime securities sale loss.
Read all positive updates
Company Guidance
Management guided to modest NIM expansion in Q1 and stronger pickup through 2026—tax‑equivalent NIM was 2.98% in Q4 (up 4 bps) and net interest spread 2.31% (up 5 bps), with an expected benefit from the Feb. 15, 2026 redemption of ~$93M of subordinated notes (repriced to ~7.1% in Q4); they budget a 7% increase in noninterest expense for 2026, forecast Q1 noninterest expense of about $39.5M (which includes an ~$800k one‑time redemption charge), and added roughly $2.3–$2.4M for software/data processing while budgeting a ~$1.5M increase in fee income. Management expects production to “probably exceed 25%” (pipeline rebounded to just over $2.0B from $1.5B mid‑Q4; pipeline mix ~42% term/58% construction/lines; C&I ~20%), noted Q4 new loan production of ~$327M (Q3 ~$500M) with $25M funded in Q4 and the remainder expected to fund over 6–9 quarters, and Q4 payoffs of ~$164M. Key balance sheet and capital metrics cited alongside the guidance include loans $4.82B (q/q +$52.7M; avg loan rate ~6.6%), securities $2.70B (q/q +$147.9M) with AFS net unrealized loss ~$0.77M (improved ~$14.7M), total securities duration 7.6 yrs (AFS 4.8 yrs), loans/securities mix 64/36, deposits down $96.4M q/q, allowance for credit losses $48.3M (0.94% of loans), NPAs 0.45% of assets, liquidity lines $2.78B, ~369.8k shares repurchased in Q4 (avg $28.94) with ~762k shares remaining authorized, and an estimated 2026 annual effective tax rate of ~17.4%.Southside Bancshares Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
48
Neutral
Cash Flow
44
Neutral
| 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 | 8.51B | 8.52B | 8.28B | 7.56B | 7.26B |
| Cash, Cash Equivalents and Short-Term Investments | 1.65B | 1.48B | 1.81B | 1.41B | 2.97B |
| Total Debt | 734.09M | 976.45M | 893.32M | 550.52M | 542.73M |
| Total Liabilities | 7.67B | 7.71B | 7.51B | 6.81B | 6.35B |
| Stockholders Equity | 847.62M | 811.94M | 773.29M | 746.00M | 912.17M |
Cash Flow | |||||
| Free Cash Flow | 73.48M | 90.69M | 72.96M | 217.22M | 147.74M |
| Operating Cash Flow | 93.82M | 101.85M | 79.86M | 226.52M | 156.10M |
| Investing Cash Flow | -34.22M | -382.86M | -327.07M | -634.78M | -194.01M |
| Financing Cash Flow | -95.97M | 146.66M | 608.47M | 405.76M | 131.25M |
Southside Bancshares Technical Analysis
Positive
30.78
Price Trends
31.85
Negative
30.96
Negative
29.95
Positive
Market Momentum
-0.42
Negative
47.85
Neutral
67.49
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 30.78 is above the 20-day moving average (MA) of 30.65, below the 50-day MA of 31.85, and above the 200-day MA of 29.95, indicating a neutral trend. The MACD of -0.42 indicates Negative momentum. The RSI at 47.85 is Neutral, neither overbought nor oversold. The STOCH value of 67.49 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $922.84M | 16.46 | 18.78% | 0.66% | 17.98% | 14.35% | |
70 Outperform | $946.42M | 10.37 | 9.82% | 2.59% | 4.49% | 20.44% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $925.79M | 10.81 | 6.53% | 4.73% | 6.27% | 79.25% | |
65 Neutral | $872.04M | 10.41 | 17.34% | 0.04% | 33.22% | 38.44% | |
56 Neutral | $870.60M | 15.23 | 5.64% | 1.79% | 15.37% | ― | |
53 Neutral | $915.26M | 13.23 | 8.53% | 4.59% | -4.08% | -16.80% |
* Financial Sector Average
SBSI
Southside Bancshares
30.78
2.41
8.49%
CFFN
Capitol Federal Financial
7.13
1.72
31.70%
NBN
Northeast Bancorp
109.31
15.91
17.03%
UVSP
Univest Of Pennsylvania
33.70
5.27
18.55%
ESQ
Esquire Financial Holdings
106.85
31.31
41.45%
AMTB
Amerant Bancorp
21.64
0.76
3.63%
Southside Bancshares Corporate Events
Business Operations and StrategyExecutive/Board Changes
Southside Bancshares Announces CEO Insurance Pact, Board Change
Neutral
Feb 20, 2026
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 benefi...
Business Operations and Strategy
Southside Bancshares Announces Redemption of Subordinated Notes
Neutral
Jan 6, 2026
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, whi...
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.