SBSI News & Events

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."

The decrease in net income was driven by the net loss on sale of AFS securities and, to a lesser extent, an increase in noninterest expense, partially offset by increases in several noninterest income categories, decreases in income tax expense and provision for credit losses and an increase in net interest income. Reports Q3 tangible book value per share $21.04. Reports Q3 CET1 capital ratio 12.97%. Reports Q3 net charge-offs .06%. "During the third quarter, we restructured a portion of our available for sale securities portfolio to enhance future earnings by selling approximately $325 million of primarily lower yielding long duration municipal securities and, to a lesser extent, mortgage-backed securities, with a combined taxable equivalent yield of approximately 3.28% at a loss of $24.4 million," stated Lee Gibson, CEO of Southside. "The majority of the sales occurred during September. The proceeds from the sale of these securities funded a portion of the loan growth during the quarter with the balance reinvested in US Agency MBS pools and Texas municipal securities. As previously disclosed, we issued $150.0 million of our subordinated debt at 7.00% fixed to floating rate notes during August. Linked quarter, net interest income increased $1.45 million and our net interest margin decreased one basis point to 2.94% due to the $150.0 million issuance of subordinated debt during the quarter. Linked quarter, total loans increased $163.4 million, with $81.0 million of this growth occurring on September 30, 2025."