Southside Bancshares reported third-quarter net income of $28.0 million, or 93 cents per diluted share, for the period ended Sept. 30, 2026. The Texas-based bank’s earnings were sharply higher than a year earlier, when results included a $24.4 million loss on the sale of available-for-sale securities.
Compared with the second quarter, Southside’s net interest income and margins improved. The bank also reported low nonperforming assets, though noninterest income declined from the prior quarter.
Key details
- Earnings rose sharply year over year: Net income was $28.0 million, up from $4.9 million in the third quarter of 2025. Diluted earnings per share increased to $0.93 from $0.16. Southside attributed the improvement to the $24.4 million securities-sale loss in the year-earlier quarter.
- Interest income and margins improved sequentially: Net interest income rose $3.0 million from the second quarter. Net interest margin increased 12 basis points to 2.92%; on a tax-equivalent basis, it also rose 12 basis points, to 3.02%.
- Returns were strong: Annualized return on average assets was 1.27%. Annualized return on average shareholders’ equity was 12.55%, while return on average tangible common equity was 16.31%.
- Noninterest income was weaker quarter to quarter: The company said it declined, although trust fees continued to grow, supported in part by a 10% year-to-date increase in assets under management. Brokerage fees also increased.
- Asset quality remained solid: Nonperforming assets were 0.18% of total assets, and classified loans declined.
What this means
The year-over-year earnings surge reflects, in substantial part, the comparison with a quarter burdened by the securities-sale loss. Separately, the sequential increase in net interest income and margin shows improvement from the prior quarter, while the bank reported continued growth in trust and brokerage fees alongside lower noninterest income overall.