GET DAILY SIGNALSSouthside Bancshares (SBSI) Delivers Steady Q3 Results with Margin Expansion
Key Takeaways
- Southside Bancshares reported third-quarter 2026 net income of $28 million, up 4.2% from the prior quarter, with diluted earnings per share (EPS) of $0.93.
- Tax-equivalent net interest margin (NIM), a key measure of lending profitability, expanded to roughly 3.02%, up 12 basis points from the second quarter on higher loan and securities yields.
- Net interest income rose to $60.3 million, up 5.2% sequentially, supported by flat funding costs during the quarter.
- Management moderated full-year 2026 loan growth guidance to low-to-mid single digits, citing slowing commercial real estate originations and continued payoffs.
- Asset quality remained solid, with nonperforming assets at just 0.18% of total assets, while the company raised its quarterly dividend to $0.37 per share.
- For more details on the company's Major News, Today's Price Move, Price Targets, and Forecast, explore these dedicated pages.
- Discover new trading ideas and opportunities by exploring Trending AI Robots.
Putting the Quarter in Context
Southside Bancshares, based in Tyler, Texas, manages about $8.87 billion in assets and runs 55 branches through its main banking subsidiary. The third-quarter results stand out as a cleaner comparison after last year’s one-time $24.4 million securities repositioning loss. With rates still elevated and deposit competition fierce in regional banking, I’m watching closely to see whether the bank can keep its margin recovery on track while holding credit costs in check. The recent margin expansion and expense discipline give a useful signal about earnings momentum into year-end.
Breaking Down the Reported Numbers
For the quarter ended September 30, 2026, Southside Bancshares posted net income of $28 million, or $0.93 per diluted share, compared with $26.8 million, or $0.90 per share, in the second quarter. That marks a clear rebound from the year-ago period, when earnings were held to $4.9 million ($0.16 per share) by the securities loss.
Net interest income reached $60.3 million, a 5.2% sequential increase, while the tax-equivalent net interest margin widened 12 basis points to about 3.02%. Higher yields on loans and securities drove the improvement, and funding costs stayed relatively steady. Return on average assets came in at 1.27%, with return on average tangible common equity at 16.3%.
Total loans held near $4.96 billion, essentially flat quarter-over-quarter, as $400 million in new production was offset by $281 million in payoffs. Deposits fell 2.5% to $6.01 billion, mainly from a $200.2 million drop in public-fund balances. The board approved a quarterly dividend of $0.37 per share.
Market Reaction and Investor Views
Heading into the report, sentiment leaned cautiously positive, centered on net interest margin direction and deposit pricing. The move to roughly 3.02% and the confirmation of solid capital levels drew favorable attention. Still, the lowered loan-growth outlook tempered some enthusiasm, as management pointed to slower commercial real estate originations after recent rate moves. Credit metrics stayed strong, with nonperforming assets at 0.18% of total assets and classified loans down to $245.2 million. Management’s repurchase of 36,474 shares at an average $30.00 after quarter-end reflected confidence in the valuation.
Key Factors to Monitor Ahead
Going forward, the path of the net interest margin remains the central variable. Management indicated that about 55% of the loan book should reprice over the next 90 days, which should support loan yields after the September Federal Reserve rate move. Because the bank is asset-sensitive, near-term rate shifts could have a noticeable impact on interest income. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
On the funding side, deposit competition bears watching. Roughly $517 million in CDs averaging 3.63% will reprice in the fourth quarter, and rates may need to rise to keep those balances. Another $1 billion in CDs reprices over the next twelve months, which could add pressure if competition stays intense.
Loan growth momentum and credit trends also merit attention. With the full-year 2026 outlook now at low-to-mid single digits, the ability to turn the $1.2 billion pipeline—especially the growing commercial and industrial book—into funded loans will be important. The securities portfolio is another item to follow, where rising long-term rates lifted the unrealized loss on available-for-sale holdings to $93.3 million, an accounting factor that may continue to affect book value even as core earnings improve.
Exploring AI Tools in My Research
In my own analysis, I often turn to Tickeron’s AI-powered tools to benchmark regional banks like Southside Bancshares against peers. The AI Screener stands out for quickly filtering by technical patterns, fundamentals, and performance metrics, helping surface relevant setups without hours of manual work. It has become a regular part of how I cross-check ideas and identify emerging opportunities in the sector.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
SBSI in upward trend: price rose above 50-day moving average on October 22, 2026
SBSI moved above its 50-day moving average on October 22, 2026 date and that indicates a change from a downward trend to an upward trend. In 28 of 41 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 68%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where SBSI's RSI Oscillator exited the oversold zone, 14 of 21 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 67%.
The Momentum Indicator moved above the 0 level on October 19, 2026. You may want to consider a long position or call options on SBSI as a result. In 53 of 92 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 58%.
The Moving Average Convergence Divergence (MACD) for SBSI just turned positive on October 13, 2026. Looking at past instances where SBSI's MACD turned positive, the stock continued to rise in 29 of 51 cases over the following month. The odds of a continued upward trend are 57%.
Following a +0.60% 3-day Advance, the price is estimated to grow further. Considering data from situations where SBSI advanced for three days, in 140 of 267 cases, the price rose further within the following month. The odds of a continued upward trend are 52%.
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 50-day moving average for SBSI moved below the 200-day moving average on October 02, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SBSI declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 63%.
SBSI broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for SBSI entered a downward trend on October 16, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 28 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 35 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.068) is normal, around the industry mean (1.268). P/E Ratio (12.404) is within average values for comparable stocks, (13.299). Projected Growth (PEG Ratio) (0.140) is also within normal values, averaging (1.190). Dividend Yield (0.047) settles around the average of (0.035) among similar stocks. P/S Ratio (3.826) is also within normal values, averaging (3.738).
The Tickeron PE Growth Rating for this company is 37 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 48 (best 1 - 100 worst), indicating steady price growth. SBSI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 94 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SBSI’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 56, placing this stock worse than average.
The Tickeron Seasonality Score of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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a regional bank
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