Southside Bancshares, Inc. (SBSI)
NYSEFinancialsBanks - RegionalSnapshot 2026-09-09
$31.91-0.75%
Close 2026-09-09 · 1-day change
NYSEFinancialsBanks - RegionalSnapshot 2026-09-09
Warn: Recent financial performance slipped notably this past month, though still top-half.
Southside Bancshares grows revenue about 8% a year. Profit margins stay stable with net interest margin improvements. The company has a strong buyback plan and solid management. Earnings per share are expected to rise to $3.4 in 2026.
Revenue could decline if funding costs rise. Profit margins may shrink if net interest margin fails to improve. The stock trades at a high price-to-earnings ratio compared to peers.
The price is about 53% above our fair value near $22. Analysts expect revenue to fall about 16%. We see better earnings growth and margin stability than the market expects.
Breaks if: buyback program is halted or significantly reduced
Breaks if: funding costs rise or remain elevated next year
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a stable financial institution with a focus on consistent loan growth and cost management. The current thesis state is cautious, given recent mixed results and a decline in management confidence.
The market appears to price SBSI as a cheap option compared to its peers, with a low expectations gap. There is a sense of fragility due to weak execution quality, but the overall valuation is justified.
Management aims for mid-single digit loan growth, which has seen some success. However, net interest margin has shown volatility, and while funding costs are decreasing, the recent decline in performance raises concerns.
The thesis hinges on the performance of sector bellwethers like HDB, IBN, and PNC, which could influence SBSI's momentum. Additionally, any cuts in guidance could negatively impact sentiment and estimates.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports this improved outlook. There are no new threats identified at this time.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Focus on reducing funding costs through strategic financial actions.
Breaks if: net interest margin declines materially next year
Focus on improving net interest margin through asset and liability management and funding cost reductions.
Stated as a priority in 3 of last 3 quarters. Net interest margin increased from 2.94% in 2025-Q4 to 3.01% in 2026-Q1 due to lower funding costs, but decreased to 2.80% in 2026-Q2. The trajectory shows mixed progress with recent decline after initial improvement, reflecting ongoing focus but some volatility.
“Net interest margin decreased to 2.80% for the three months ended June 30, 2026.”
“Net interest margin increased three basis points to 3.01% in 2026-Q1 due to lower funding costs.”
“Net interest margin increased four basis points to 2.98% in 2025-Q4 due to lower funding costs.”
Breaks if: YoY revenue growth falls below 6% next year
In the next 1 to 3 years, SBSI's performance will depend on its ability to navigate sector dynamics and execute on its management priorities. Not investment advice.