Southside Bancshares, Inc. (SBSI) SEC Filings & Earnings Calls

NIM compression due to funding cost increases may pressure future earnings.

“Linked quarter funding costs increased resulting in a decrease in net interest income of $355,000 to $57.3 million.” · word for word

Modest linked-quarter loan growth of $3.4 million.

“Although linked quarter loan growth was modest at $3.4 million” · word for word

Deposit outflow risk

“Our deposits were $6.17 billion at June 30, 2026, a decrease of $695.8 million, or 10.1%, from December 31, 2025.” · word for word

Interest rate risk

“If the federal funds rate remains elevated or is not further reduced, it could negatively impact our net interest income.” · word for word

Potential margin pressure from rising funding costs if deposit repricing accelerates.

“Net interest margin increased due to lower funding costs; future savings expected from subordinated note redemption”

Tariff and Inflation Uncertainty

“Ongoing tariff negotiations and conflict in the Middle East have caused some uncertainty related to inflation levels, energy and gas prices, and their impact on interest rates and the overall economy.” · word for word

Interest Rate Risk

“If the federal funds rate remains elevated or is not further reduced, it may negatively impact our net interest income.” · word for word

Credit quality deterioration

“nonperforming assets as a percentage of total assets increased by 0.41% compared to 2024, but remained low at 0.45%” · word for word

Interest Rate Sensitivity

“Higher inflation levels and interest rate fluctuations could have a negative impact on both our consumer and commercial borrowers in the future.” · word for word

Regulatory Compliance Cost

“We and our subsidiaries are subject to comprehensive regulation, examination and supervision by the SEC, the Federal Reserve, the TDB and the FDIC and are subject to numerous laws and regulations.” · word for word

CEO split-dollar agreement creates contingent liability; board reduction may reduce oversight.

“split dollar life insurance agreement; board size decreased from 14 to 13”

Securities restructuring generated a $7.3M loss, though expected to be offset by higher future yields.

“net loss on sale of AFS securities of $7.3 million” · word for word

Redemption uses cash, potentially reducing liquidity, but manageable given bank's balance sheet.

“Redemption of $100M notes at 100% principal plus accrued interest.”

Credit quality deterioration

“Nonperforming assets at September 30, 2025 increased $32.0 million, or 892.1%, to $35.6 million and represented 0.42% of total assets, compared to $3.6 million, or 0.04% of total assets, at December 31, 2024, due primarily to an increase of $27.5 million in restructured loans.” · word for word

Securities portfolio losses

“Net loss on sale of AFS securities, included in noninterest income, was $24.4 million for the three months ended September 30, 2025, compared to a net loss of $1.9 million for the same period in 2024.” · word for word

Interest rate risk

“If the federal funds rate remains elevated, it may negatively impact our net interest income.” · word for word