Southside Bancshares, Inc. Announces Financial Results for the Third Quarter Ended September 30, 2025

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]