Southside Bancshares(US:SBSI)2026-01-28 23:05Financial 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]