The margin expansion and improving asset quality are the key positives. Watch for further NIM progression in Q4 as deposit costs continue to decline and the subordinated note redemption from early 2026 flows through. The dividend increase signals management confidence.
Price Chart
Executive Summary
Southside Bancshares reported Q3 2026 GAAP diluted EPS of $0.93, beating the $0.79 consensus by 17.7%. Net interest income rose 8.2% YoY to $60.3M, the tax-equivalent NIM expanded 12 bps linked quarter to 3.02%, and nonperforming assets fell to 0.18% of total assets from 0.42% a year ago. The strong beat and improving margin profile are the main stock-moving facts.
Key Financial Metrics
Key Facts
- Q3 2026 GAAP diluted EPS of $0.93 vs consensus $0.79, a beat of 17.7%
- Net interest income of $60.3M, up 8.2% YoY and 5.2% linked quarter
- Tax-equivalent net interest margin expanded 12 bps linked quarter to 3.02%
- Nonperforming assets declined to 0.18% of total assets from 0.42% a year ago
- Net recoveries of $0.3M vs net charge-offs of $0.8M in the year-ago quarter
- Quarterly dividend increased to $0.37 per share from $0.36
Financial Impact
EPS beat of $0.14 (17.7%) on consensus of $0.79; net interest income up $4.6M YoY
Risk Factors
- Total deposits declined 13.6% YoY to $6.01B, driven by a $841M drop in brokered deposits
- Noninterest expense rose 4.0% YoY to $39.0M, outpacing net interest income growth
- Nonperforming assets increased 61.6% linked quarter to $15.8M, though largely due to a single loan that subsequently paid off
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000705432-26-000109 |
| Document: sbsi-20261029.htm | 0000705432-26-000109 |
| Document: 0000705432-26-000109-index-headers.html | 0000705432-26-000109 |
| Document: 0000705432-26-000109-index.html | 0000705432-26-000109 |
| Document: 0000705432-26-000109.txt | 0000705432-26-000109 |
| 8-K Data (Synthetic) | 0000705432-26-000109 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 28, 2026 3d ago | 8-K | $33.29 $33.66 | ▲ +1.11% | ▲ +2.88% | $33.66 (+1.11%) |
Mar 25, 2026 31w ago | DEFA14A | $30.98 $30.40 | ▼ −1.87% | ▼ −0.19% | $33.66 (+8.65%) |
US Market Status
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