Southside Bancshares (SBSI) Q3 2026 earnings summary

Executive summary

• Q3 net income was $28.0 million and diluted EPS was $0.93; the YoY earnings comparison benefited from the absence of the prior-year $24.4 million AFS securities sale loss.

• FTE net interest margin rose 12 bps QoQ to 3.02%; net interest income increased 5.2% QoQ and 8.2% YoY to $60.3 million.

Financial highlights

• 9M net income rose 61.9% YoY to $78.1 million; diluted EPS was $2.61 versus $1.59.

• Q3 noninterest income was $13.7 million versus a $12.0 million loss a year earlier; Q3 noninterest expense rose 4.0% YoY to $39.0 million.

• Total assets were $8.87 billion at September 30; loans were $4.96 billion and deposits were $6.01 billion.

• Net interest income rose $3.0 million QoQ; noninterest income fell $271,000 and noninterest expense increased $346,000 QoQ.

Outlook and guidance

• 2026 loan growth guidance was revised to low- to mid-single digits; management did not expect a drastic change in growth in 2027.

• ~55% of loans are expected to reprice over 90 days; management expected the September Fed rate increase to lift Q4 loan yields.

• Q4 average noninterest expense was budgeted at $40.5 million; the estimated 2026 annual effective tax rate was 18%.

• Securities balances were expected to remain near $2.8 billion, with cash flows reinvested mainly in AFS and MBS.

• Rate simulations projected 12-month NII increases of 1.00% and 2.72% for +100 bps and +200 bps, and declines of 1.00%, 2.23% and 4.01% for -50, -100 and -200 bps.