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Southside Bancshares
(NYSE:SBSI)
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Rating:64Neutral
Price Target:
$36.00
â–²(12.82% Upside)
Action:Reiterated
Date:10/30/26
The score is led by attractive valuation (low P/E and strong dividend yield) and improving profitability, but it is constrained by balance-sheet and cash-flow risks (higher leverage and sharply weaker recent cash generation). Technicals are positive but appear overextended, and the latest earnings call was constructive overall while highlighting deposit/funding pressure and reduced loan-growth guidance.
Positive Factors
Improving profitability
The sharp rebound in revenue and improved margin show stronger recent operating performance and earnings capacity. If sustained, this provides more internal funding for growth, supports capital formation, and strengthens the bank’s ability to absorb ordinary business volatility over the next several quarters.
Negative Factors
Higher leverage and weaker cash conversion
The sharp increase in leverage alongside substantially weaker free cash flow reduces financial flexibility. Although cash flow remains positive, weaker conversion and greater reliance on balance-sheet funding could constrain capital allocation and make the company more sensitive to credit or funding stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability
The sharp rebound in revenue and improved margin show stronger recent operating performance and earnings capacity. If sustained, this provides more internal funding for growth, supports capital formation, and strengthens the bank’s ability to absorb ordinary business volatility over the next several quarters.
Read all positive factors
Southside Bancshares (SBSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.00B
Dividend Yield4.31%
Average Volume (3M)144.16K
Price to Earnings (P/E)10.1
Beta (1Y)0.59
Revenue Growth8.56%
EPS Growth43.89%
CountryUS
Employees781
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.32
Shares Outstanding29,807,980
10 Day Avg. Volume123,651
30 Day Avg. Volume144,162
Financial Highlights & Ratios
PEG Ratio-0.62
Price to Book (P/B)1.08
Price to Sales (P/S)2.19
P/FCF Ratio12.46
Enterprise Value/Market Cap2.74
Enterprise Value/Revenue5.98
Enterprise Value/Gross Profit10.02
Enterprise Value/Ebitda15.75
Forecast
1Y Price Target
$35.50Price Target Upside11.25% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)3.28
Revenue Forecast (FY)$291.50M
Southside Bancshares Business Overview & Revenue Model
Company Description
Southside Bancshares, Inc. functions as the holding company for its subsidiary, Southside Bank, which delivers a comprehensive suite of financial solutions to diverse clients, including individual consumers, commercial enterprises, governmental bo...
How the Company Makes Money
Southside Bancshares primarily makes money through its banking subsidiary by earning (1) net interest income and (2) noninterest income.
1) Net interest income (core earnings driver): The bank gathers funding largely through customer deposits (su...
Southside Bancshares Earnings Call Summary
Earnings Call Date:Oct 29, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 22, 2027
Earnings Call Sentiment Positive
The call was generally constructive, supported by strong earnings, higher net interest margin, improved efficiency, solid liquidity and capital, favorable credit performance, growing C&I activity, and multiple market and product expansion initiatives. However, management lowered 2026 loan growth guidance, reported substantial unrealized securities and AOCI losses, faced deposit outflows and rising funding-cost pressure, and saw a smaller loan pipeline. The positive operating and credit trends significantly outweighed the stated challenges.Positive Updates
Strong Third-Quarter Profitability
Third-quarter net income was $28 million, up $1.1 million or 4.2% linked quarter. Diluted earnings per share were $0.93, up $0.03 or 3.3% linked quarter, with a $1.27 return on average assets and a 31% return on average tangible common equity.
Negative Updates
Lowered 2026 Loan Growth Guidance
Management moderated its 2026 loan growth guidance to low to mid single digits because commercial real estate originations may slow following recent rate increases and continued payoffs are expected.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter Profitability
Third-quarter net income was $28 million, up $1.1 million or 4.2% linked quarter. Diluted earnings per share were $0.93, up $0.03 or 3.3% linked quarter, with a $1.27 return on average assets and a 31% return on average tangible common equity.
Read all positive updates
Company Guidance
Southside moderated its loan growth guidance to low to mid single digits for 2026 and would not expect a drastic change in 2027; initiatives are expected to affect loan growth over the next 24 months to 36 months, with opportunities expected in early 27 and throughout 2027. The company expects the September fed rate increase to be accretive to fourth quarter loan yields as approximately 55% of its loan book will reprice over the next 90 days, expects securities balances of approximately $2.8 billion, and expects future securities cash flows to be reinvested into AFS MBS and potentially to a lesser extent, into bank sub debt. CDs totaling $517 million with an average rate of 3.63% will reprice in Q4, with rates likely pricing into the $3.90 range from an average below 3.60s; non swap wholesale funding was 4.03% and management will try to keep it around 4.10%, though it could creep up to 4.15%. The budget indicates average noninterest expense of approximately $40.5 million for the fourth quarter, the current estimate for the 2026 annual effective tax rate is 18%, Fed funds are modeled to be flat for the remainder of 2026, and the company is modeling a beta of 39% on non maturity deposits.Southside Bancshares Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 459.70M | 419.03M | 456.07M | 395.57M | 293.84M | 265.32M |
| Gross Profit | 274.07M | 233.99M | 254.51M | 241.71M | 249.96M | 255.86M |
| EBITDA | 174.47M | 93.24M | 117.84M | 111.71M | 130.74M | 142.25M |
| Net Income | 99.06M | 69.22M | 88.49M | 86.69M | 105.02M | 113.40M |
Balance Sheet | ||||||
| Total Assets | 8.87B | 8.51B | 8.52B | 8.28B | 7.56B | 7.26B |
| Cash, Cash Equivalents and Short-Term Investments | 3.27B | 1.65B | 1.48B | 1.81B | 1.41B | 2.97B |
| Total Debt | 1.90B | 734.09M | 976.45M | 893.32M | 550.52M | 542.73M |
| Total Liabilities | 8.02B | 7.67B | 7.71B | 7.51B | 6.81B | 6.35B |
| Stockholders Equity | 842.88M | 847.62M | 811.94M | 773.29M | 746.00M | 912.17M |
Cash Flow | ||||||
| Free Cash Flow | 154.51M | 73.48M | 90.69M | 72.96M | 217.22M | 147.74M |
| Operating Cash Flow | 172.32M | 93.82M | 101.85M | 79.86M | 226.52M | 156.10M |
| Investing Cash Flow | -603.04M | -34.22M | -382.86M | -327.07M | -634.78M | -194.01M |
| Financing Cash Flow | 400.19M | -95.97M | 146.66M | 608.47M | 405.76M | 131.25M |
Southside Bancshares Technical Analysis
Positive
31.91
Price Trends
31.36
Positive
32.36
Positive
31.94
Positive
Market Momentum
0.44
Negative
75.55
Negative
82.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBSI, the sentiment is Positive. The current price of 31.91 is above the 20-day moving average (MA) of 31.06, above the 50-day MA of 31.36, and below the 200-day MA of 31.94, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 75.55 is Negative, neither overbought nor oversold. The STOCH value of 82.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SBSI.
Southside Bancshares Risk Analysis
Southside Bancshares disclosed 48 risk factors in its most recent earnings report. Southside Bancshares reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Southside Bancshares Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $829.48M | 11.23 | 12.36% | 1.55% | 10.22% | 7.30% | |
73 Outperform | $1.03B | 11.36 | 9.71% | 1.89% | 7.18% | 7.94% | |
72 Outperform | $380.11M | 9.71 | 10.09% | 1.67% | 33.89% | 24.02% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $1.00B | 10.51 | 11.56% | 1.56% | 52.78% | 266.60% | |
67 Neutral | $664.73M | 8.75 | 11.91% | 218.92% | 17.96% | 9.46% | |
64 Neutral | $1.00B | 10.14 | 11.56% | 4.31% | 8.56% | 43.89% |
* Financial Sector Average
SBSI
Southside Bancshares
33.66
6.82
25.41%
ISTR
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27.59
4.22
18.04%
EQBK
Equity Bancshares
48.68
8.83
22.16%
BFST
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31.80
7.80
32.49%
SPFI
South Plains Financial
44.01
7.95
22.04%
TCBX
Third Coast Bancshares
39.89
3.14
8.54%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.