Southside Bancshares (SBSI) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $23.3 million, up 8.1% year-over-year; diluted EPS rose 9.9% to $0.78.

• Linked quarter loan growth was 2.7%, with total loans reaching $4.95 billion.

• Net interest income increased 7.1% year-over-year to $57.7 million; net interest margin (FTE) rose to 3.01%.

• Nonperforming assets dropped to 0.11% of total assets, reflecting improved asset quality.

• Annualized return on average assets was 1.10%; return on average tangible common equity was 14.39%.

Financial highlights

• Noninterest income grew 23.2% year-over-year to $12.6 million, with increases in trust fees and other noninterest categories.

• Noninterest expense rose 9.4% year-over-year to $40.6 million, mainly due to higher salaries, benefits, and a loss on redemption of subordinated notes.

• Efficiency ratio (FTE) improved to 54.98% from 55.04% a year ago.

• Total assets reached $8.80 billion, up from $8.34 billion a year ago.

• Deposits increased 4.3% year-over-year to $6.87 billion, with brokered and retail deposits offsetting declines in public fund deposits.

Outlook and guidance

• Management expects further funding cost savings in Q2 2026 following the February redemption of $93 million in subordinated notes with a 7.51% rate.