Southside Bancshares (SBSI) Q3 2026 Earnings Call Transcript
Southside Bancshares (SBSI) reported Q3 2026 net income of $28M, up 4.2% from Q2. EPS was $0.93, a 3.3% increase. Loans totaled $4.96B, with a 6.1% average rate. Nonperforming assets rose to 0.18% of total assets. The securities portfolio grew 1.8% to $2.83B, with a net unrealized loss of $93.3M. Deposits decreased 2.5%, and the net interest margin increased to 3.02%. The company repurchased 36.5K shares post-quarter at $30/share.
How this was made
The 30-second read
Why it matters
Traders can update expectations for SBSI’s near-term earnings power based on linked-quarter NIM expansion and loan growth, while also reassessing balance-sheet volatility from AFS duration and unrealized losses.
Market read
Q3 profitability and NIM improved linked-quarter, but AFS mark-to-market losses worsened and deposits declined, shaping the risk-reward for the stock.
What to watch
Oil and gas exposure declined to $54.6 million, but nonperforming assets rose linked-quarter due to a CRE loan that later paid off, which could affect near-term credit expectations.
Background
This is a Q3 2026 earnings call transcript for Southside Bancshares, covering loan pipeline, credit metrics, securities portfolio marks, deposits, and net interest margin drivers.
Ticker impact
Southside Bancshares reports Q3 net income of $28 million, EPS of $0.93, loan growth to $4.96 billion, and a higher AFS unrealized loss tied to longer-term rates.
Likely limited upside bias as the quarter shows profitability and NIM improvement, offset by widening AFS unrealized losses and deposit declines.
The call provides multiple decision-relevant datapoints: net income and EPS up linked-quarter, tax-equivalent NIM up 12 bps, but AFS net unrealized loss widened by $83.5 million and deposits fell 2.5% linked-quarter.
Market effects
Adds another data point on regional bank sensitivity to longer-term rates via AFS duration and unrealized losses.
Highlights Texas-focused growth narrative (Fort Worth expansion) alongside deposit seasonality.
Low; primarily idiosyncratic to a single regional bank’s rate and credit mix.
Counterpoint
The headline profitability may mask growing balance-sheet risk signals, especially the sharp increase in AFS unrealized losses and deposit outflows.
Key entities
- companySouthside Bancshares
Regional bank reporting Q3 2026 results and balance-sheet metrics on loans, credit quality, deposits, and securities marks.
- balance_sheet_itemAFS securities portfolio
Available-for-sale securities whose unrealized loss widened due to higher longer-term rates and increased duration.
- credit_metricNonperforming assets
Nonperforming assets increased linked-quarter, though the increase was largely tied to a CRE loan that paid off on 10/1/2026.
