Southside Posts $0.93 a Share in Third-Quarter 2026, Beating Estimates
Key Facts
Southside Bancshares reported net income of $28.0 million and diluted earnings per share of $0.93 for the quarter ended September 30, 2026, according to the company’s filing published on Nasdaq. Earnings per share exceeded analysts’ estimate of $0.79, while revenue was $73.28 million against a consensus estimate of $72.67 million, according to Investing.com. Actual earnings were $0.14 a share above estimates, while revenue topped expectations. The results put earnings and revenue above consensus for the period, with the company recording growth in net interest income and a quarterly improvement in net interest margin. The year-over-year comparison for net income, however, was affected by a loss on the sale of securities that the company incurred in the third quarter of last year.
Net income rose from $4.9 million in the third quarter of 2025 to $28.0 million in the corresponding period of 2026, an increase of $23.1 million, or 469.4%, according to Southside’s filing. The company attributed most of the increase to a net loss of $24.4 million from the sale of available-for-sale securities in the third quarter of 2025. The year-over-year jump therefore partly reflects a low comparison base last year, when the company recorded that loss. The company said higher net interest income and noninterest income, along with a lower provision for credit losses, also contributed to the improvement, but to a lesser extent. This explanation accompanies the earnings beat and shows that the year-over-year increase did not stem from a single operating factor.
Net interest income was $60.3 million in the third quarter of 2026, up $4.6 million, or 8.2%, from the same period in 2025, according to the company’s filing. Southside attributed the increase mainly to higher average interest-earning assets and a lower average cost of interest-bearing liabilities. Net interest margin rose to 2.92%, while the tax-equivalent margin was 3.02%. Both margins increased 12 basis points from the second quarter of 2026, a quarterly improvement the company reported in its results. The period’s performance thus combined year-over-year growth in net interest income with quarterly expansion in both margins.
The previous quarter’s results provide context for the company’s performance in 2026: Southside reported net income of $26.8 million and diluted earnings per share of $0.90 in the second quarter. Net income was then up 23.0% year over year, and earnings per share were up 25.0%, according to the company’s investor relations materials. In that quarter, nonperforming assets were 0.11% of total assets, and the company said asset-quality indicators remained strong. In its third-quarter results, the filing also cited a lower provision for credit losses among the factors contributing to the annual increase in net income. It also said the company paid off a delinquent real estate loan on October 1, a development reported in the context of monitoring asset quality after quarter-end.
Southside had announced that it would release its third-quarter results before the market opened on October 29, 2026, and then hold a call to discuss them at 11:00 a.m. Central Time. The results filing published on Nasdaq confirmed the same call time on October 29. The call gives the company’s management an opportunity to discuss the period’s results with investors, according to the investor relations announcement. The reported figures center on earnings and revenue beating estimates, growth in net interest income, and expansion in both margins from the previous quarter. By contrast, the company’s explanation links a large part of the year-over-year increase in net income to the securities loss recorded in the corresponding period of 2025.