Southside Bancshares beat Q2 earnings estimates. Its $1.47B loan pipeline supports a 2026 mid-single-digit growth target. Net interest margin narrowed.
Southside Bancshares (SBSI) beat second-quarter earnings estimates, management said on the bank's earnings call. The Texas-focused lender reported a $1.47 billion loan pipeline that supports a target for mid-single-digit loan growth in 2026.
Net interest margin narrowed during the quarter as deposits moved into higher-cost categories. The shift in funding mix offset the benefit of the pipeline's weighted average yield, which management described as attractive relative to current funding costs. Rate cuts later this year could ease some margin pressure, though the timing remains uncertain, the bank said.
Southside's expense discipline and credit quality remain priorities. The bank did not provide a specific full-year EPS forecast but reiterated its focus on controlling costs. Management said the bank remains open to acquisitions that fit its Texas footprint, suggesting a selective approach to M&A.
The $1.47 billion pipeline includes commercial and consumer credits. Converting that into funded loans depends on the pace of Fed easing and economic conditions in the bank's markets. Southside shares have gained roughly 8% year to date, roughly in line with the regional banking index.
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