Southside Bancshares Q2 2026: Net Income Climbs 23% YoY to $26.8M, EPS $0.90
SBSI sits 30% above its 52-week low of $26.32.
Summary
Southside Bancshares posted Q2 2026 net income of $26.8 million ($0.90 per share), a 23% increase from a year ago, driven by higher revenue and lower expenses. Asset quality remained strong, but deposits fell significantly due to a reduction in brokered deposits.
Key Events · Earnings and Guidance · SBSI
-
Q2 Net Income Rises 23% YoY
Net income reached $26.8 million, or $0.90 per diluted share, compared with $21.8 million, or $0.72 per share, in Q2 2025. On a linked-quarter basis, net income grew 15.4% from $23.3 million.
-
Revenue Growth and Expense Control
Net interest income rose 5.7% year-over-year to $57.3 million, while noninterest income climbed 15.3% to $14.0 million. Noninterest expense fell 1.5% from a year ago to $38.7 million, helping drive the efficiency ratio to 54.42%.
-
Strong Asset Quality
Nonperforming assets stood at just 0.11% of total assets, down from 0.39% a year earlier. The allowance for loan losses was 0.92% of total loans, with net charge-offs of only $0.3 million for the quarter.
-
Deposit Outflow from Brokered Reduction
Total deposits fell $705.1 million from the linked quarter to $6.17 billion, driven by a $777.9 million reduction in brokered deposits. Partially offsetting this, retail and commercial deposits increased $93.5 million.
Analysis · SBSI · Finance
A strong second quarter saw net income jump 23% year-over-year to $26.8 million, or $0.90 per share, handily surpassing the prior-year's $0.72. The outperformance was fueled by higher net interest income, a boost in noninterest income, and disciplined expense management. Credit quality remains a bright spot, with nonperforming assets at a mere 0.11% of total assets. On the funding side, however, deposits contracted sharply from the linked quarter as the bank nearly exited brokered deposits—a move that may invite scrutiny of its funding strategy. Capital ratios stayed robust, and management opted to preserve capital by not repurchasing shares during the period. In sum, the quarter underscores improving profitability and credit trends, though the deposit outflow deserves close attention.
At the time of this filing, SBSI was trading at $34.09 on NYSE in the Finance sector, with a market capitalization of approximately $1B. The 52-week trading range was $26.32 to $36.20. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.