Southside Bancshares, Inc. functions as the holding company for its subsidiary, Southside Bank, which delivers a comprehensive suite of financial solutions to ...
Southside Bancshares, Inc. is a regional financial-services company organized as the holding company for Southside Bank. Founded in Texas in 1960 and headquartered at 1201 South Beckham Avenue in Tyler, the company is focused primarily on serving communities and businesses across Texas. Southside Bank’s customer base includes individual consumers, commercial ...Southside Bancshares, Inc. is a regional financial-services company organized as the holding company for Southside Bank. Founded in Texas in 1960 and headquartered at 1201 South Beckham Avenue in Tyler, the company is focused primarily on serving communities and businesses across Texas. Southside Bank’s customer base includes individual consumers, commercial enterprises, municipalities, governmental organizations, partnerships, corporations, and nonprofit institutions. The company’s community-banking model emphasizes relationship-based deposits, lending, and advisory services rather than a national investment-banking or capital-markets strategy.
The deposit franchise includes savings accounts, money-market accounts, interest-bearing and non-interest-bearing checking accounts, and certificates of deposit. These deposits provide a core funding source for the bank’s lending activities. Consumer lending products include one-to-four-family residential loans, home-equity financing, home-improvement loans, vehicle loans, personal loans, and other consumer credit facilities. Commercial lending includes working-capital loans used for inventory and receivables, equipment financing, business expansion loans, commercial real-estate loans, and financing for municipal borrowers. The bank also provides construction loans for residential developments and commercial real-estate projects.
Beyond traditional lending and deposits, Southside offers wealth-management and trust services. These include investment advisory and investment-management services, estate administration, revocable and testamentary trust administration, and custodial services for individuals and organizations. Additional services include safe-deposit boxes and brokerage offerings. Because SBSI is a bank, it does not have a conventional manufacturing bill of materials, or BOM. Its principal cost structure instead consists of interest expense paid on deposits and borrowings, employee compensation and benefits, occupancy and technology costs, regulatory and compliance expenses, credit-loss provisions, and other operating expenses.
The supplied data lists approximately 781 full-time employees, placing the company in the 501-to-1,000 employee category. Historical operating information cited in the supplied materials indicates a network of roughly 55 to 56 banking locations and approximately 73 ATMs or ITMs, although branch and delivery-channel counts can change over time. The investor-relations materials also describe assets of approximately $8.8 billion, while the supplied market data reports a market capitalization of approximately $965 million at the referenced quotation.
Selected trailing-twelve-month figures in the supplied data include a return on equity of approximately 8.9%, a net profit margin of approximately 16.6%, a price-to-earnings ratio of approximately 12.8, a price-to-book ratio of approximately 1.1, and a dividend yield of approximately 4.4%. The company reported a trailing dividend per share of $1.44 in the source data. These measures are useful indicators of profitability, valuation, and shareholder distributions, but bank results remain sensitive to interest rates, deposit pricing, loan demand, credit quality, real-estate exposure, capital requirements, and broader Texas economic conditions. Keith Donahoe serves as President and Chief Executive Officer of Southside Bancshares and Southside Bank; the supplied executive information states that he became President in May 2024 and Chief Executive Officer in January 2026.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$419.0M
-8.1%
+4.1%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$69.2M
-21.8%
+15.4%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+55.8%
+0.1%
+1.7%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+19.7%
-16.2%
+11.0%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+16.5%
-14.9%
+10.8%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$73.5M
-19.0%
-38.8%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+17.5%
-11.8%
-41.2%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
86.6%
-28.0%
+77.5%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.23x
+1.8%
+63.2%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator : Thank you. Hello, everyone. Thank you for joining us and welcome to Southside Bank Shares, Inc. Second Quarter Earnings Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star 1 again. now hand the conference over to Lindsay Bells, SVP Investor Relations. Lindsay, please go ahead.
Lindsey Bailes : Thank you, Jade. Good morning, everyone, and welcome to Southside Bank Share's second quarter 2026 earnings call. A transcript of today's call will be posted on Southside.com under investor relations. During today's call and other disclosures and presentations, I'll remind you that forward-looking risk and uncertainties. Factors that could materially change our current forward-looking assumptions are described in our earnings release in our form 10-K. Joining me today are President and CEO Keith Donahoe, CFO Julie Schamburger, and Chief Treasury Officer Sunny Davis. Keith will start us off with his comments on the quarter, then Julie will give an overview of our financial and Sunny will end with comments on securities and funding. We will have a Q&A session following Sunny's remarks. I'll now turn the call over to Keith.
Keith Donahoe : Thank you, Lindsay, and welcome to today's call. Second quarter results are highlighted by earnings per share of 90 cents, a return on average assets of 123 and a return on average tangible common equity of 1609. A $3.6 million increase in length quarter net income was primarily driven by increased non-interest income and a decrease in non-interest expenses. Second quarter funding costs benefited from reduced subordinated debt expense and a sliver a slight increase in non-interest-bearing deposits, but overall our funding costs increased due to a change in our funding mix and the maturity of $245 million in cash flow hedges during the first quarter. The combined effect contributed to a $355,000 decrease in net interest income during the second quarter. Higher funding costs combined with a slight drop in yield on our earning assets resulted in a lower net interest margin of $290. Strong new loan production was offset by return to elevated payoffs resulting in a relatively flat loan balance during the quarter. However, we continue to target mid single digits for 2026 phone growth. Second quarter new loan production totaled $487 million compared to $431 million in the first quarter and $327 million in the fourth quarter of 25. In the second quarter, new loan production of approximately 300 million funded during the quarter, with the unfunded portion expected to fund over the next six to nine quarters. Excluding regular amortization and line of credit activity, second quarter payoffs totaled $297 million compared to $113 million during the first quarter. Payoffs during the second quarter were heavily weighted towards CRE to include five multifamily loans accounting for …
