Financial Data and Key Metrics Changes - For the fourth quarter, the company reported net income of $21 million, an increase of $16.1 million or 327.2% compared to the previous quarter [9] - Diluted earnings per share for the fourth quarter were $0.70, an increase of $0.54 per share linked quarter [9] - The company reported net income of $69.2 million for 2025, a decrease of $19.3 million or 21.8% compared to $2.91 for 2024 [10] - The net interest margin expanded to 2.98%, an increase of 4 basis points from the previous quarter [16] Business Line Data and Key Metrics Changes - Fourth quarter new loan production totaled approximately $327 million, compared to $500 million in the third quarter [4] - Loans as of December 31st were $4.18 billion, a linked-quarter increase of $52.7 million or 1.1% [10] - Non-performing assets increased by $2.6 million during the fourth quarter but remained low at 0.45% of total assets [7][11] Market Data and Key Metrics Changes - The Texas economy is anticipated to grow at a faster pace than the overall projected U.S. growth rate [8] - The loan pipeline rebounded to just over $2 billion after dipping to $1.5 billion mid-quarter [6] Company Strategy and Development Direction - The company is focused on restructuring its available-for-sale securities to enhance future net interest income and provide balance sheet flexibility [3] - There is an ongoing initiative to build out a data platform to improve insights into raw data across multiple systems [24] - The company remains open to strategic acquisitions, particularly in areas where it has a limited presence [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2026, anticipating loan production to exceed 2025 levels despite headwinds from payoffs [41] - The company is actively monitoring market conditions for potential opportunities arising from M&A activity in Texas [51] Other Important Information - The company plans to redeem $93 million of subordinated notes due in 2030, which is expected to positively impact net interest margin [15] - The efficiency ratio improved to 52.28% as of December 31st, down from 52.99% [18] Q&A Session Summary Question: Details on 2026 expense growth and software projects - Management indicated that the 7% expense growth includes costs related to software initiatives and hiring strategies [21][22] Question: Thoughts on M&A activity in Texas - Management confirmed that they are open to strategic acquisitions, particularly in Dallas and Houston, to expand their presence [29][30] Question: Expectations for first quarter margin - Management expects a positive margin outlook for the first quarter, with improvements anticipated as the year progresses [36][39] Question: Fee income outlook for 2026 - The company is budgeting for a $1.5 million increase in fee income, primarily driven by trust income and brokerage services [47][48] Question: Thoughts on disruption from recent M&A activity - Management is actively looking for opportunities arising from employee and customer displacement due to recent acquisitions in the market [51]

Financial Data and Key Metrics Changes - For the fourth quarter, the company reported net income of $21 million, an increase of $16.1 million or 327.2% compared to the previous quarter [9] - Diluted earnings per share for the fourth quarter were $0.70, an increase of $0.54 per share linked quarter [9] - For the full year 2025, net income was $69.2 million, a decrease of $19.3 million or 21.8% compared to 2024 [10] - The net interest margin expanded to 2.98%, an increase of four basis points from the previous quarter [16] Business Line Data and Key Metrics Changes - Loans as of December 31 totaled $4.18 billion, a linked-quarter increase of $52.7 million or 1.1% [10] - New loan production for the fourth quarter was approximately $327 million, down from $500 million in the third quarter [4] - Non-performing assets increased by $2.6 million during the fourth quarter but remained low at 0.45% of total assets [7] Market Data and Key Metrics Changes - The Texas economy is anticipated to grow at a faster pace than the overall projected U.S. growth rate [8] - The loan pipeline rebounded to just over $2 billion after dipping to $1.5 billion mid-quarter [6] Company Strategy and Development Direction - The company is focused on restructuring its available-for-sale securities to enhance future net interest income and provide balance sheet flexibility [3] - There is an ongoing initiative to build out a data platform to improve insights into raw data across multiple systems [24] - The company remains open to strategic acquisitions, particularly in key markets like Dallas and Houston [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the loan growth environment, despite challenges from payoffs and construction project maturities [41] - The company anticipates a positive margin outlook for the first quarter, with expectations for improvement as the year progresses [39] Other Important Information - The company plans to redeem $93 million of subordinated notes due in 2030, which is expected to positively impact net interest margin [15] - The efficiency ratio improved to 52.28% as of December 31, down from 52.99% [18] Q&A Session Summary Question: Details on the 7% expense growth budget for 2026 - Management indicated that the budget includes additional expenses related to software projects and hiring strategies [21][22] Question: Thoughts on M&A activity in Texas - Management confirmed that they are open to strategic acquisitions, particularly in areas where they have loan production offices [29][30] Question: Expectations for first quarter margin - Management expects a positive margin outlook, although it may be muted initially due to a one-time charge [36][39] Question: Loan growth expectations - Management anticipates loan production to exceed previous levels, despite headwinds from payoffs [41][42] Question: Buyback strategy moving forward - Management plans to be opportunistic with stock buybacks, balancing this with potential acquisitions [44] Question: Fee income outlook for 2026 - Management expects a significant increase in fee income, particularly from trust and brokerage services [47][48] Question: Future actions regarding the securities portfolio - Management will continue to be opportunistic with the securities portfolio, monitoring rates closely [50] Question: M&A opportunities related to market disruptions - Management is actively looking for opportunities arising from market disruptions, both in terms of clients and talent [51]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported net income of $21 million, an increase of $16.1 million or 327.2% compared to the previous quarter [9] - Diluted earnings per share for Q4 were $0.70, an increase of $0.54 per share linked quarter [9] - For the full year 2025, net income was $69.2 million, a decrease of $19.3 million or 21.8% compared to 2024 [10] - The net interest margin expanded to 2.98%, up 4 basis points from the previous quarter [15] - Non-interest income, excluding the net loss on the sale of AFS securities, increased by $494,000 or 4% for the linked quarter [16] Business Line Data and Key Metrics Changes - New loan production in Q4 totaled approximately $327 million, down from $500 million in Q3 [5] - Loans as of December 31 were $4.18 billion, a linked-quarter increase of $52.7 million or 1.1% [10] - The average rate of loans funded during Q4 was approximately 6.6% [10] - Non-performing assets increased by $2.6 million but remained low at 0.45% of total assets [7][11] Market Data and Key Metrics Changes - The Texas economy is anticipated to grow at a faster pace than the overall projected U.S. growth rate [8] - The loan pipeline rebounded to just over $2 billion after dipping to $1.5 billion mid-quarter [6] Company Strategy and Development Direction - The company is focused on restructuring its available-for-sale securities to enhance future net interest income and provide balance sheet flexibility [4] - There is an ongoing initiative to move core systems to OutLink and build a data platform to improve operational efficiency [22][23] - The company remains open to strategic acquisitions, particularly in targeted areas like Dallas and Houston [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2026, anticipating a good year for loan growth despite some headwinds from payoffs [43] - The company is actively monitoring market conditions for potential opportunities arising from M&A activity in Texas [51] Other Important Information - The company plans to redeem $93 million of subordinated notes on February 15, 2026, which is expected to positively impact net interest margin [14] - The efficiency ratio improved to 52.28% as of December 31, down from 52.99% [18] Q&A Session Summary Question: Details on 2026 expense growth and software projects - Management indicated a 7% increase in expenses for 2026, with a portion related to software initiatives aimed at improving efficiency [21][22] Question: Expectations for first quarter margin - Management expects a positive margin in Q1, though muted, with improvements anticipated as the year progresses [35][40] Question: Loan growth expectations - Management is optimistic about exceeding loan production targets, despite potential payoffs impacting growth [41][43] Question: Buyback strategy - The company will continue to be opportunistic with stock buybacks, balancing this with potential acquisitions [45] Question: Fee income outlook - An increase of approximately $1.5 million in fee income is budgeted for 2026, driven by trust income and brokerage services [48][49] Question: M&A activity and target asset size - The company is looking for opportunities in the lower asset size range, with a focus on strategic acquisitions that could help cross the $10 billion threshold [56]

分组1 - Southside Bancshares reported quarterly earnings of $0.7 per share, missing the Zacks Consensus Estimate of $0.8 per share, representing an earnings surprise of -12.50% [1] - The company posted revenues of $64.92 million for the quarter, missing the Zacks Consensus Estimate by 9.58%, compared to year-ago revenues of $68.52 million [2] - The stock has added about 6.2% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.78 on revenues of $71.1 million, and for the current fiscal year, it is $3.20 on revenues of $293.9 million [7] - The Zacks Industry Rank for Banks - Southwest is currently in the top 32% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Core Viewpoint - Southside Bancshares, Inc. reported a decrease in net income for both the fourth quarter and the full year of 2025, primarily due to a significant net loss on the sale of available-for-sale securities, despite increases in net interest income and noninterest income categories. Financial Performance Summary - For the fourth quarter ended December 31, 2025, net income was $21.0 million, down from $21.8 million in the same period of 2024, a decrease of 3.7% [3] - Earnings per diluted common share for the fourth quarter were $0.70, compared to $0.71 for the same period in 2024, a decrease of 1.4% [3] - Annual net income for 2025 was $69.2 million, a decrease of 21.8% from $88.5 million in 2024 [10] - Earnings per diluted common share for the year were $2.29, down from $2.91 in 2024, a decrease of 21.3% [10] Net Interest Income and Margin - Net interest income for the fourth quarter was $57.2 million, an increase of 6.6% compared to $53.7 million in the same period of 2024 [4] - The net interest margin increased to 2.98% for the fourth quarter, up from 2.83% in the same period of 2024 [5] - For the year ended December 31, 2025, net interest income was $221.1 million, an increase of 2.3% from $216.1 million in 2024 [11] - The net interest margin for the year increased to 2.81%, compared to 2.74% in 2024 [12] Noninterest Income and Expense - Noninterest income, excluding net losses on sales of AFS securities, was $12.9 million for the fourth quarter, up 5.0% from $12.3 million in 2024 [6] - Noninterest expense decreased to $37.5 million for the fourth quarter, down 1.8% from $38.2 million in 2024 [7] - For the year, noninterest income, excluding net losses on sales of AFS securities, was $48.2 million, an increase of 9.0% from $44.2 million in 2024 [13] - Noninterest expense for the year was $151.4 million, an increase of 2.9% from $147.1 million in 2024 [14] Asset Quality and Allowance for Loan Losses - Nonperforming assets at December 31, 2025, were $38.2 million, or 0.45% of total assets, an increase from $3.6 million, or 0.04% of total assets, at December 31, 2024 [24] - The allowance for loan losses totaled $45.1 million, or 0.94% of total loans, at December 31, 2025, compared to $44.9 million, or 0.96% of total loans, at December 31, 2024 [25] Balance Sheet Highlights - Total assets at December 31, 2025, were $8.51 billion, a slight decrease from $8.52 billion at December 31, 2024 [16] - Loans increased to $4.82 billion, up 3.4% from $4.66 billion at December 31, 2024 [17] - Deposits increased to $6.87 billion, up 3.2% from $6.65 billion at December 31, 2024 [19] Capital Resources and Liquidity - The company repurchased 369,804 shares of common stock at an average price of $28.84 per share during the fourth quarter [22] - Total available contingent liquidity, net of current outstanding borrowings, was $2.78 billion as of December 31, 2025 [23]

Financial Performance - Fourth quarter net income was $21.0 million, a decrease of $0.8 million, or 3.7%, compared to $21.8 million in Q4 2024[4] - Earnings per diluted common share for Q4 2025 were $0.70, down $0.01, or 1.4%, from $0.71 in Q4 2024[4] - Net income for the year ended December 31, 2025, was $69,220 thousand, a decrease of 21.7% from $88,494 thousand in 2024[49] - Adjusted net income available to common shareholders for the year ended December 31, 2025, was $69,806 million, down from $89,419 million in 2024[73] - Net income for the three months ended December 31, 2025, was $20,987 million, compared to $4,913 million for the previous quarter[73] Income and Revenue - Net interest income for Q4 2025 increased to $57.2 million, an increase of $3.5 million, or 6.6%, compared to Q4 2024[4] - Noninterest income, excluding net losses on sales of AFS securities, was $12.9 million for Q4 2025, an increase of $0.6 million, or 5.0%, from Q4 2024[5] - Total revenue for the three months ended December 31, 2025, was $71,988 million, an increase from $70,528 million in the previous quarter[73] - Noninterest income for the year ended December 31, 2025, was $15,956 million, compared to $41,733 million in 2024[73] Loans and Assets - Total loans at December 31, 2025 were $4.82 billion, an increase of $156.4 million, or 3.4%, from $4.66 billion at December 31, 2024[14] - Total assets increased to $8,514,590 thousand as of December 31, 2025, up from $8,383,160 thousand in the previous quarter, representing a growth of 1.56%[39] - The total loan portfolio reached $4,817,991 thousand in 2025, up from $4,661,597 thousand in 2024, with commercial loans increasing to $444,720 thousand[56] Deposits and Liabilities - Deposits at December 31, 2025 were $6.87 billion, an increase of $210.9 million, or 3.2%, compared to $6.65 billion at December 31, 2024[15] - Total interest-bearing liabilities were $6,094,479 thousand in 2025, with a total interest expense of $45,080 thousand[59] - Total liabilities decreased to $7,541,799 in 2025 from $7,579,748 in 2024[69] Credit Quality - The allowance for loan losses totaled $45.1 million, or 0.94% of total loans, at December 31, 2025[22] - Nonperforming assets increased to $38.2 million, or 0.45% of total assets, at December 31, 2025, up from $3.6 million, or 0.04%, at December 31, 2024[21] - The provision for credit losses was $581 thousand, down from $1,092 thousand in the prior quarter, indicating improved credit quality[41] - Nonaccrual loans totaled $10.5 million in 2025, up from $3.2 million in 2024, indicating a significant increase in nonperforming assets[70] Capital and Ratios - The common equity tier 1 capital ratio was 12.87% in Q4 2025, slightly down from 12.97% in Q3 2025[44] - The total risk-based capital ratio decreased to 18.54% in Q4 2025 from 19.01% in Q3 2025, indicating a decline in capital adequacy[44] - Shareholders' equity to total assets improved to 9.95% in 2025 from 9.53% in 2024, reflecting a stronger capital position[53] Efficiency and Management - The efficiency ratio (FTE) improved to 52.28% from 52.99% in the prior quarter, suggesting better cost management[41] - The efficiency ratio (FTE) for the year ended December 31, 2025, was 53.48%, compared to 53.52% in 2024, showing slight improvement[49] - The management team will host a conference call on January 29, 2026, to discuss the fourth quarter and year-end financial results[26] Future Outlook - Forward-looking statements indicate potential risks including economic conditions, interest rate fluctuations, and regulatory changes that could impact future performance[37]

Core Viewpoint - Southside Bancshares, Inc. will release its fourth quarter and year-end financial results on January 29, 2026, before market opening, followed by a conference call to discuss the results [1]. Group 1: Conference Call Details - The conference call will be hosted by key executives including the President and CEO, CFO, and SVP of Investor Relations, with a question and answer session for analysts following prepared remarks [2]. - The conference call can be accessed via webcast for listen-only mode on the company website [3]. - Participants wishing to join the Q&A session can register online to receive the dial-in number and unique access code, with a recommendation to register 10 minutes prior to the call [4]. Group 2: Company Overview - Southside Bancshares, Inc. is headquartered in Tyler, Texas, with approximately $8.38 billion in assets as of September 30, 2025, and operates 53 branches and a network of 70 ATMs/ITMs across East Texas and major metropolitan areas [6]. - The company has been serving customers since 1960 and offers a comprehensive range of financial products and services, including loans, mortgages, deposit accounts, and wealth management [6].

Core Viewpoint - Southside Bancshares, Inc. announced a dual listing of its common stock on NYSE Texas, enhancing its presence in the Texas market and aiming to increase shareholder value [1][2]. Company Overview - Southside Bancshares, Inc. is headquartered in Tyler, Texas, with approximately $8.38 billion in assets as of September 30, 2025 [4]. - The company operates 53 branches, two loan production offices, and a network of 70 ATMs/ITMs across East Texas, Southeast Texas, Dallas/Fort Worth, and Austin [4]. - Southside Bank has been serving customers since 1960, offering a comprehensive range of financial products and services, including consumer and commercial loans, mortgages, deposit accounts, and wealth management [4]. Listing Details - The company will maintain its primary listing on the New York Stock Exchange and will trade under the same "SBSI" ticker symbol on NYSE Texas, with trading expected to commence on November 25, 2025 [3].

Financial Performance - For the three months ended September 30, 2025, net income was $4,913,000, a decrease of 76.1% compared to $20,524,000 for the same period in 2024[12] - Net income for the nine months ended September 30, 2025, was $48,233,000, compared to $66,708,000 for the same period in 2024, reflecting a decrease of approximately 27.6%[16] - Earnings per common share for the nine months ended September 30, 2025, was $1.59, down from $2.20 in 2024, reflecting a decrease of 27.73%[12] - Pre-tax income decreased by 79.5% to $5.1 million for the three months ended September 30, 2025, compared to $24.9 million for the same period in 2024[200] - The return on average assets for the nine months ended September 30, 2025, was 0.77%, down from 1.06% in 2024, while the return on average shareholders' equity was 7.89%, compared to 11.19% in 2024[226] Income and Expenses - Total interest and dividend income for the nine months ended September 30, 2025, was $300,746,000, down 3.9% from $312,647,000 in 2024[12] - Noninterest income for the three months ended September 30, 2025, showed a loss of $11,990,000, compared to a gain of $8,171,000 in the same period of 2024[12] - Total noninterest expense for the nine months ended September 30, 2025, was $113,880,000, an increase of 4.3% from $108,978,000 in 2024[12] - Total noninterest expense for the three months ended September 30, 2025, was $37.53 million, an increase of 3.3% from $36.33 million in 2024[191] - Salaries and employee benefits expense rose by 2.6% to $22.80 million for the three months ended September 30, 2025, compared to $22.23 million in 2024[191] Assets and Liabilities - Total assets increased to $8.35 billion as of September 30, 2025, compared to $8.34 billion in 2024, reflecting a growth of 0.02%[175] - Cash and cash equivalents at the end of the period were $466,912 for September 30, 2025, compared to $486,297 for the same date in 2024, indicating a decrease of 2.4%[17] - Total loans as of September 30, 2025, amounted to $4,765,289,000, an increase from $4,661,597,000 as of December 31, 2024[43] - The allowance for loan losses as of September 30, 2025, was $45,294,000, compared to $44,884,000 as of December 31, 2024[43] - Total shareholders' equity as of September 30, 2025, was $834,850,000, an increase from $805,254,000 as of September 30, 2024, representing a growth of about 3.2%[15] Credit Quality - The provision for credit losses for the nine months ended September 30, 2025, was $2,472,000, an increase from $1,962,000 in 2024[12] - Nonaccrual loans increased to $7,955 as of September 30, 2025, compared to $3,185 on December 31, 2024[56] - Total nonperforming assets reached $35,608 as of September 30, 2025, up from $3,589 on December 31, 2024[56] - The allowance for loan losses increased by $410,000, or 0.9%, to $45.3 million, representing 0.95% of total loans as of September 30, 2025[214] - Loan charge-offs for the nine months ended September 30, 2025, were $3.1 million, compared to $2.1 million for the same period in 2024, while recoveries were $1.1 million versus $1.2 million[215] Investment Securities - The total amortized cost of available-for-sale (AFS) investment securities was $1.31 billion, with an estimated fair value of $1.29 billion, reflecting a gross unrealized loss of $28.5 million[28] - The total gross unrealized losses for AFS investment securities amounted to $28.5 million as of September 30, 2025[31] - The company reported a net gain on the sale of available-for-sale securities of $24,949,000 for the nine months ended September 30, 2025, compared to a gain of $2,510,000 in the same period of 2024[16] - There was a net realized loss of $24.9 million from the AFS securities portfolio for the nine months ended September 30, 2025[35] - The cumulative amount of fair value hedging adjustments associated with MBS hedging relationships was a gain of $610,000 as of September 30, 2025, compared to a gain of $1.1 million as of December 31, 2024[88] Capital and Funding - Common Equity Tier 1 capital for the Company was $743.8 million, or 12.97% of risk-weighted assets, exceeding the minimum requirement of 4.50%[224] - The Tier 2 capital for the Company includes $239.6 million of qualified subordinated debt as of September 30, 2025[220] - The company has $2.3 billion available for additional funding from FHLB, collateralized by securities and loans[70] - The weighted average interest rate on other borrowings decreased to 4.8% during the period ended September 30, 2025, from 5.7% in the previous period[66] - The company issued $150 million in fixed-to-floating rate subordinated notes on August 14, 2025, maturing on August 15, 2035[74] Taxation - The effective tax rate (ETR) for the three months ended September 30, 2025, was 3.7%, a decrease from 17.6% in the same period of 2024[117] - The net deferred tax asset decreased to $30.6 million at September 30, 2025, from $34.5 million at December 31, 2024[116] Future Outlook - The company plans to open a new traditional branch location at Bellwood Park in Tyler, Texas, in 2026[230] - Management believes the Company met all capital adequacy requirements under the Basel III Capital Rules as of September 30, 2025[225]

Financial Data and Key Metrics Changes - The company reported net income of $4.9 million, a decrease of $16.9 million or 77.5% compared to the previous quarter [10] - Diluted earnings per share were $0.16, down from $0.72 per share linked quarter [10] - Net interest income increased by $1.45 million or 2.7% compared to the linked quarter [15] - The tax equivalent net interest margin decreased by one basis point to 2.94% [15] Business Line Data and Key Metrics Changes - Total loans as of September 30 were $4.77 billion, an increase of $163.4 million or 3.5% linked quarter [10] - Commercial real estate loans increased by $82.6 million, commercial loans by $49.3 million, and construction loans by $49.1 million [10] - Non-performing assets increased to approximately $2.7 million, representing 0.42% of total assets [9][11] Market Data and Key Metrics Changes - The company’s securities portfolio was $2.56 billion, a decrease of $174.2 million or 6.4% from the previous quarter [11] - Deposits increased by $329.6 million or 5% on a linked quarter basis [14] - Loans with oil and gas industry exposure increased to $70.6 million, or 1.5% of total loans [11] Company Strategy and Development Direction - The company is focusing on repositioning its available-for-sale securities portfolio to enhance future net interest income and provide balance sheet flexibility [3] - There is an ongoing interest in potential acquisitions and hiring due to market disruptions caused by larger banks acquiring smaller institutions [25] - The company anticipates continued growth in trust fees and is exploring opportunities in metro markets for wealth management [41][42] Management's Comments on Operating Environment and Future Outlook - Management expects net interest margin to improve slightly in the fourth quarter, driven by loan growth and the restructuring of the securities portfolio [20][21] - The Texas economy is anticipated to grow at a faster pace than the overall U.S. growth rate [5] - Management is optimistic about the loan pipeline, which has rebounded to $1.8 billion, indicating strong future loan production [31] Other Important Information - The company repurchased 26,692 shares of common stock at an average price of $30.24 during the third quarter [15] - The effective tax rate for the third quarter was 3.7%, a decrease from 17.8% in the prior quarter [17] Q&A Session Summary Question: What is the expected net interest margin for the fourth quarter? - Management expects the net interest margin to be up slightly due to the impact of subordinated notes and the restructuring of securities [20][21] Question: Any updates on potential acquisitions or hiring? - Management is looking at a few institutions for potential acquisition and has made some new hires in light of market disruptions [25] Question: How is the loan pipeline looking entering the fourth quarter? - The loan pipeline is strong at $1.8 billion, with a good pull-through rate expected [31][32] Question: What is the outlook for trust fees and wealth management? - Management anticipates double-digit revenue growth in trust fees and is exploring metro market opportunities for wealth management [41][42] Question: How many rate cuts are anticipated through year-end and into 2026? - Management anticipates at least two rate cuts next year, depending on inflation and employment conditions [43]