Southside Reports Q4 Revenue of $71.99M, Exceeds Expectations
Reports Q4 revenue $71.99M, consensus $71.7M. Reports Q4 tangible book value per share $21.72. Reports Q4 net charge-offs .07%. "During the fourth quarter, we continued the restructure of a portion of our available for sale securities portfolio by selling approximately $82 million of lower yielding long duration municipal securities with a combined taxable equivalent yield of approximately 2.59% at a loss of $7.3 million," stated Keith Donahoe, president and CEO of Southside. "All the sales occurred at the end of October. The proceeds from the sale of these securities were reinvested primarily in U.S. Agency mortgage-backed securities. Linked quarter, net interest income increased $1.5 million, our net interest margin increased four basis points to 2.98% due to lower funding costs during the quarter and deposits, net of public fund and brokered deposits, increased $40.8 million. Linked quarter, total loans increased $52.7 million. On February 15, 2026, we will redeem our $93 million subordinated notes due 2030 which bear interest at a rate of 7.51%. We expect the redemption to have a positive impact on our net interest margin in the first quarter."
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Southside Bancshares Reports Q4 2025 Financial Highlights
- Net Income Decline: Q4 2025 net income was $21.0 million, down 3.7% from $21.8 million in Q4 2024, primarily due to net losses on AFS securities, indicating challenges in asset management.
- Earnings Per Share Slightly Down: Diluted earnings per share were $0.70, a decrease of 1.4% from $0.71 in the same period of 2024, reflecting the impact of securities sales losses on profitability, which may affect investor confidence.
- Interest Income Growth: Net interest income reached $57.2 million, up 6.6% year-over-year, primarily due to a decrease in the average rate paid on interest-bearing liabilities, indicating some success in cost control.
- Low Nonperforming Assets Ratio: As of December 31, 2025, nonperforming assets were 0.45% of total assets, demonstrating ongoing efforts in credit quality management, although it has increased compared to previous periods, it remains below industry averages.
Southside Bancshares Q4 Earnings Miss Expectations
- Earnings Decline: Southside Bancshares reported a Q4 GAAP EPS of $0.70, missing expectations by $0.09, indicating pressure on profitability that may affect investor confidence.
- Revenue Drop: The company's Q4 revenue of $62.83 million represents a 4.8% year-over-year decline, falling short of expectations, which suggests weak market demand that could impact future growth prospects.
- Net Interest Margin Improvement: The tax-equivalent net interest margin increased by four basis points to 2.98% quarter-over-quarter, although this slight improvement did not significantly enhance overall profitability, indicating intensified competition.
- Stable Asset Quality: Nonperforming assets remained low at 0.45% of total assets, demonstrating effective risk management, which helps maintain investor trust.
