Southside Bancshares, Inc. (SBSI) Earnings Call Transcripts

Southside Bancshares, Inc.'s Latest Earnings Call - Q1 FY2026

In the first quarter of 2026, Southside Bancshares, Inc. (SBSI) reported a net income of $23.3 million, reflecting a 10.8% increase year-over-year. Earnings per share rose to $0.78, surpassing expectations and signaling strong loan growth of 2.7% linked quarter. Management maintained a mid-single-digit loan growth target for the fiscal year, citing anticipated increases in payoffs, while also indicating potential for improved net interest margins due to lower funding costs following the redemption of subordinated debt.

Reported metrics

Guidance from management

Management maintained a mid-single-digit loan growth target for 2026, anticipating increased payoffs in the coming quarters. They expect noninterest expense to stabilize around $40.5 million for the second quarter.

What management said

This is Sunny. So yes, the 237 did include CDs and we do feel like we can save some interest expense on the CDs, maybe 10 basis points. And that may be conservative. During Q1, we had some local competition pretty heavily. for CD, short-term CDs, paying well over 4%, and that has ended. So we did see some exit of deposits related to that, but it's over. And so yes, at least 10 basis points maybe more. We picked up,...

So let's see, on the sub debt for the 3-month quarter, it was $741 million -- so expect to see -- I mean, obviously, the balance is going to be much smaller for the -- well, it's going to be about $147 million for the average in the second quarter, and it will be just over 7% with the amortization and the discount. So I haven't calculated what I expect that to be, but that 731 that you see for the first quarter is ...

What analysts pressed on

Analysts expressed concerns regarding the sustainability of loan growth given the anticipated rise in payoffs and the impact of competitive pressures on funding costs. There were also questions about the efficiency ratio and the potential for operating leverage moving forward.

Main topics on the call

• Loan Growth — SBSI achieved a linked quarter loan growth of 2.7%, driven by strong new loan production of approximately $431 million. Management noted, "First quarter loan growth was driven by strong new loan production combined with ...
• Net Interest Margin Improvement — The net interest margin improved to 3.01%, up 3 basis points from the previous quarter, attributed to lower funding costs from the redemption of subordinated debt. Management stated, "We expect to see further savings in ...
• Credit Quality — Nonperforming assets decreased to $9.7 million, or 0.11% of total assets, indicating strong credit quality. Management highlighted that this reduction was primarily due to the payoff of a $27.5 million multifamily loan.
• Expense Management — Noninterest expense increased by 8.3% linked quarter to $40.6 million, largely due to higher salaries and a one-time retirement expense. Management expects noninterest expense to stabilize around $40.5 million for the se...

Read the full Southside Bancshares, Inc. transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 29 Southside Bancshares, Inc. earnings call transcripts on record, spanning January 31, 2020 to July 24, 2026. Based on this history, Southside Bancshares, Inc. reports quarterly. The most recent call on file is dated July 24, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

SBSI

Exchange

NYSE

Country

US

Sector

Financials

Industry

Banks

Calls on record

29

First call

January 31, 2020

Most recent

July 24, 2026

Reporting cadence

quarterly