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]

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 linked quarter [10] - Net interest income increased by $1.45 million or 2.7% compared to the linked quarter [14] - The tax equivalent net interest margin decreased by one basis point to 2.94% [14] Business Line Data and Key Metrics Changes - Loans increased to $4.77 billion, a linked quarter increase of $163.4 million or 3.5% [10] - The increase in loans was driven by $82.6 million in commercial real estate loans, $49.3 million in commercial loans, and $49.1 million in construction loans [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 [13] Company Strategy and Development Direction - The company is focused on repositioning its available-for-sale (AFS) 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 [24] Management's Comments on Operating Environment and Future Outlook - The Texas economy is expected to grow at a faster pace than the overall U.S. growth rate [5] - Management anticipates a slight increase in net interest margin for the fourth quarter, driven by loan growth and securities restructuring [19][20] Other Important Information - The company issued $150 million of subordinated notes at a fixed to floating rate [4] - The allowance for credit losses increased to $48.5 million, while the allowance for loan losses as a percentage of total loans decreased to 0.95% [11] 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 loan growth [19][20] Question: Any updates on potential acquisitions or hiring? - Management is looking at a few institutions for potential acquisition and has made some new hires due to market disruptions [24] Question: How is the loan pipeline looking entering the fourth quarter? - The loan pipeline rebounded to $1.8 billion, indicating strong future loan production [32] Question: What is the pricing competition like in the market? - There is intense competition in both commercial real estate and C&I lending, but the company is maintaining a disciplined pricing approach [34] Question: What are the expectations for trust fee growth? - Management anticipates double-digit revenue growth in trust fees due to a strong team and new client acquisitions [42] Question: How many rate cuts are expected through year-end and into 2026? - Management anticipates at least two rate cuts next year, depending on inflation and employment conditions [44]

Financial Data and Key Metrics Changes - The company reported net income of $4,900,000, a decrease of $16,900,000 or 77.5% compared to the previous quarter [13] - Diluted earnings per share were $0.16 for the third quarter, down from $0.56 per share linked quarter [13] - Net interest income increased by $1,450,000 or 2.7% compared to the linked quarter [19] - The tax equivalent net interest margin was 2.94%, a decrease of one basis point from 2.95% [19] - Non-interest expense was $37,500,000, a decrease of $1,700,000 or 4.4% on a linked quarter basis [19] Business Line Data and Key Metrics Changes - Loans increased to $4,770,000,000, a linked quarter increase of $163,400,000 or 3.5% [13] - The increase in loans was driven by $82,600,000 in commercial real estate loans, $49,300,000 in commercial loans, and $49,100,000 in construction loans [14] - Non-performing assets increased by approximately $2,700,000, remaining at 0.42% of total assets [11][14] Market Data and Key Metrics Changes - The Texas economy is anticipated to grow at a faster pace than the overall U.S. growth rate [6] - The loan pipeline rebounded to approximately $1,800,000,000, indicating strong market conditions [10] 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 [4][5] - There is an interest in potential acquisitions and hiring due to market disruptions caused by larger banks acquiring smaller institutions [27] - The company plans to explore wealth management opportunities in metro markets, aiming for double-digit revenue growth in trust fees [45][46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about net interest income growth due to favorable market conditions and loan growth expectations [6][24] - The company anticipates a slight increase in net interest margin for the fourth quarter, driven by loan growth and securities restructuring [23][24] - Future rate cuts are expected, with management anticipating at least two cuts in the next year [47][48] Other Important Information - The company repurchased 26,692 shares of common stock at an average price of $30.24 during the third quarter [18] - The allowance for credit losses increased to $48,500,000, while the allowance for loan losses as a percentage of total loans decreased to 0.95% [14] Q&A Session Summary Question: What is the expected margin for the fourth quarter considering the recent restructuring? - Management expects the net interest margin to be up slightly in the fourth quarter, with loan growth anticipated [23][24] Question: Any updates on potential acquisitions or hiring opportunities? - Management indicated interest in a few institutions potentially for sale and mentioned ongoing hiring efforts due to market disruptions [27] Question: How is the loan pipeline looking entering the fourth quarter? - The loan pipeline is strong, rebounding to $1,800,000,000, with a good pull-through rate expected [10][34] Question: What is the pricing competition like in the current market? - There is significant competition in both commercial real estate and commercial loans, but the company is maintaining a disciplined pricing approach [35] Question: What are the expectations for trust fee growth? - Management anticipates double-digit revenue growth in trust fees due to a strong team and new client acquisitions [45][46]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported net income of $4.9 million, a decrease of $16.9 million or 77.5% compared to the previous quarter [12] - Diluted earnings per share were $0.16, down from $0.72 in the linked quarter [12] - Net interest income increased by $1.45 million or 2.7% compared to the linked quarter [16] - The tax equivalent net interest margin decreased by one basis point to 2.94% [16] Business Line Data and Key Metrics Changes - Loans increased to $4.77 billion, a linked quarter increase of $163.4 million or 3.5% [12] - The average rate of loans funded during the quarter was approximately 6.7% [12] - Non-interest income, excluding the net loss on the sales of available-for-sale (AFS) securities, increased by $260,000 or 2.1% [17] 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 [13] - Deposits increased by $329.6 million or 5% on a linked quarter basis [15] - Non-performing assets increased to approximately $2.7 million, but remained low at 0.42% of total assets [10][13] Company Strategy and Development Direction - The company is focusing on repositioning its available-for-sale (AFS) securities portfolio to enhance future net interest income and provide balance sheet flexibility [4] - The company anticipates continued growth in the Texas economy, which is expected to outpace the overall U.S. growth rate [6] - The company is exploring potential acquisitions and hiring opportunities due to market disruptions caused by larger banks [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about net interest income growth due to favorable market conditions and loan growth [5][21] - The company expects net interest margin to improve slightly in Q4 2025, driven by loan growth and securities restructuring [21] - Management noted that competition in the market remains intense, particularly in commercial real estate and C&I lending [30] Other Important Information - The company issued $150 million of subordinated notes at a 7% fixed to floating rate in mid-August [15] - The company repurchased 26,692 shares of common stock at an average price of $30.24 during the third quarter [16] - The effective tax rate for Q3 was 3.7%, a decrease from 17.8% in the prior quarter [18] Q&A Session Summary Question: What is the expected net interest margin for Q4? - Management expects the net interest margin to be up slightly due to the impact of subordinated notes and loan growth [21] Question: Any updates on potential acquisitions? - Management indicated interest in a few institutions that might be for sale and mentioned ongoing hiring efforts due to market disruptions [24] Question: How is the loan pipeline looking entering Q4? - The loan pipeline rebounded to $1.8 billion, indicating strong future growth potential despite a dip mid-quarter [28] Question: What is the outlook for trust fees? - Management anticipates double-digit revenue growth in trust fees due to a strong team and increasing client base [37] 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 [39]

Core Insights - Southside Bancshares (SBSI) reported quarterly earnings of $0.8 per share, exceeding the Zacks Consensus Estimate of $0.72 per share, and showing an increase from $0.68 per share a year ago, resulting in an earnings surprise of +11.11% [1][2] - The company achieved revenues of $70.53 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.04% and up from $66.25 million year-over-year [2] - Southside Bancshares has outperformed consensus EPS estimates in all four quarters over the past year and has topped revenue estimates three times during the same period [2] Earnings Outlook - The future performance of Southside Bancshares' stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.72 on revenues of $71 million, while for the current fiscal year, the estimate is $2.86 on revenues of $276.1 million [7] Industry Context - The Banks - Southwest industry, to which Southside Bancshares belongs, is currently ranked in the top 30% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5][6]

Core Viewpoint - Southside Bancshares, Inc. reported a significant decline in net income for the third quarter of 2025, primarily due to a substantial net loss on the sale of available-for-sale securities and increased noninterest expenses, despite some growth in net interest income and noninterest income categories. Financial Performance - Net income for Q3 2025 was $4.9 million, down from $20.5 million in Q3 2024, representing a decrease of $15.6 million or 76.1% [3] - Earnings per diluted share were $0.16 for Q3 2025, compared to $0.68 for Q3 2024, a decrease of $0.52 or 76.5% [3] - The company experienced a net loss of $24.4 million on the sale of available-for-sale securities in Q3 2025, compared to a net loss of $1.9 million in Q3 2024 [3] Interest Income and Margin - Net interest income for Q3 2025 was $55.7 million, an increase of $0.3 million or 0.5% from Q3 2024 [4] - The net interest margin decreased to 2.81% for Q3 2025, down from 2.82% in Q3 2024 [5] - The company issued $150 million of subordinated debt at a fixed to floating rate during August 2025, impacting net interest margin [2] Noninterest Income and Expenses - Noninterest income, excluding net losses on available-for-sale securities, was $12.4 million for Q3 2025, up from $10.1 million in Q3 2024, an increase of $2.3 million or 22.8% [6] - Noninterest expenses increased by $1.2 million or 3.3% to $37.5 million in Q3 2025 compared to Q3 2024, primarily due to higher salaries and employee benefits [7] Tax Expense - Income tax expense decreased by $4.2 million or 95.7% for Q3 2025 compared to Q3 2024, with an effective tax rate of 3.7% [8] Balance Sheet Highlights - Total assets as of September 30, 2025, were $8.38 billion, a slight decrease from $8.52 billion at December 31, 2024 [16] - Loans increased to $4.77 billion, up $187.2 million or 4.1% from September 30, 2024 [17] - Deposits rose to $6.96 billion, an increase of $525.9 million or 8.2% compared to September 30, 2024 [18] Capital and Liquidity - The company repurchased 26,692 shares of common stock at an average price of $30.24 per share during Q3 2025 [21] - Total available contingent liquidity was $2.77 billion as of September 30, 2025 [22] Asset Quality - Nonperforming assets increased to $35.6 million or 0.42% of total assets, up from $7.7 million or 0.09% of total assets a year earlier [23] - The allowance for loan losses totaled $45.3 million or 0.95% of total loans as of September 30, 2025 [24] Dividend Declaration - The company declared a cash dividend of $0.36 per share for Q3 2025, paid on September 4, 2025 [28]

Financial Performance - Net income for Q3 2025 was $4.9 million, a decrease of $15.6 million or 76.1% compared to $20.5 million in Q3 2024[4] - Earnings per diluted share were $0.16 for Q3 2025, down $0.52 or 76.5% from $0.68 in Q3 2024[4] - Net income decreased significantly to $4,913 thousand for the quarter ended September 30, 2025, down from $21,813 thousand in the previous quarter, a decline of 77.54%[42] - The company reported a net income of $48,233 for the nine months ended September 30, 2025, down from $66,708 in 2024[73] Income and Expenses - Net interest income for Q3 2025 was $55.7 million, an increase of $0.3 million or 0.5% year-over-year[4] - Noninterest income, excluding net losses on AFS securities, rose to $12.4 million, an increase of $2.3 million or 22.8% year-over-year[5] - Noninterest expense increased by $1.2 million or 3.3% to $37.5 million in Q3 2025 compared to Q3 2024[6] - Noninterest expense totaled $37,534 thousand, a decrease from $39,257 thousand in the previous quarter, reflecting a reduction of 4.39%[42] - Total noninterest income for the nine months ended September 30, 2025, was $10,378 thousand, significantly lower than $29,452 thousand in the same period of 2024, a decline of 64.8%[49] Assets and Liabilities - Total assets were $8.38 billion as of September 30, 2025, down from $8.52 billion at December 31, 2024[12] - Total assets as of September 30, 2025, were $8,338,477, a slight decrease from $8,367,814 in 2024[69] - Total liabilities amounted to $7.636 billion, with shareholders' equity at $824.893 million as of March 31, 2025[62] Loans and Credit Quality - Total loans increased by $163.4 million or 3.5% linked quarter, reaching $4.77 billion as of September 30, 2025[13] - Nonperforming assets increased to $35.6 million or 0.42% of total assets, up from $7.7 million or 0.09% at September 30, 2024[19] - The allowance for loan losses was $45.3 million or 0.95% of total loans as of September 30, 2025, compared to $44.3 million or 0.97% a year earlier[20] - The provision for credit losses was $1,092 thousand, compared to $622 thousand in the previous quarter, indicating an increase of 75.73%[42] - The net charge-offs for Q3 2025 were $844 thousand, compared to $852 thousand in Q2 2025, showing a decrease of 0.94%[47] - Nonperforming assets increased significantly to $35,608 thousand in 2025 from $7,656 thousand in 2024, reflecting a substantial rise in asset quality concerns[52] Capital and Ratios - The common equity tier 1 capital ratio was 12.97% as of September 30, 2025, down from 13.36% in June 30, 2025[44] - The capital ratios showed a strong position, with total risk-based capital at 19.01% in 2025, up from 16.59% in 2024, indicating improved capital adequacy[52] - The efficiency ratio (FTE) improved to 53.89% for the nine months ended September 30, 2025, compared to 53.35% in the same period of 2024[49] - Return on average tangible common equity for the nine months ended September 30, 2025, was 10.59%, compared to 15.20% in 2024[73] Dividends and Shareholder Returns - Southside Bancshares, Inc. declared a third quarter cash dividend of $0.36 per share, paid on September 4, 2025[23] - Cash dividends paid per common share remained stable at $0.36 for the quarter[42] Forward-Looking Statements and Risks - Forward-looking statements indicate potential risks including economic conditions, interest rate fluctuations, and impacts from inflation and unemployment[36]

Core Viewpoint - Southside Bancshares, Inc. will release its third quarter financial results on October 24, 2025, and will host a conference call to discuss these results [1][2]. Group 1: Financial Results Announcement - Southside Bancshares, Inc. is set to announce its third quarter financial results before the market opens on October 24, 2025 [1]. - A conference call will be held on the same day at 11:00 a.m. CDT to discuss the financial results [1][2]. Group 2: Conference Call Details - The conference call will be hosted by key executives including the CEO, President, CFO, and VP of Investor Relations [2]. - Participants can access the call via webcast or by registering for a dial-in number [3][4]. - A recording of the conference call will be available on the company website for at least 30 days after the event [5]. Group 3: Company Overview - Southside Bancshares, Inc. is headquartered in Tyler, Texas, with approximately $8.34 billion in assets as of June 30, 2025 [6]. - The company operates 53 branches and a network of 70 ATMs/ITMs across East Texas and major metropolitan areas [6]. - Southside Bank offers a comprehensive range of financial products and services, including loans, mortgages, deposit accounts, and wealth management [6].