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].

Core Points - Southside Bancshares, Inc. announced the retirement of CEO Lee Gibson effective December 31, 2025, with Keith Donahoe set to succeed him [1][2] - Lee Gibson has been with Southside Bank since 1984 and has served as CEO since 2017, contributing significantly to the bank's growth and stability [2][3] - Southside Bank operates 53 branches and has approximately $8.34 billion in assets as of June 30, 2025, serving various regions in Texas [4] Leadership Transition - Keith Donahoe, the current President of Southside, will take over as CEO, bringing over 30 years of banking experience [1][3] - Donahoe has been with Southside since 2021, previously serving as Austin Market President and Central Texas Regional President [3] Company Overview - Southside Bancshares, Inc. is headquartered in Tyler, Texas, and is publicly traded on the New York Stock Exchange [2][4] - The bank focuses on community-oriented financial services, offering a full range of products to individuals and businesses [4]