Q2 2026 Southside Bancshares Inc Earnings Call Transcript
Key Points
- Southside Bancshares Inc (SBSI) reported a 15.4% increase in net income for the second quarter, reaching $26.8 million.
- Earnings per share rose to $0.90, marking a $0.12 increase from the previous quarter.
- The company experienced strong new loan production totaling $487 million, up from $431 million in the first quarter.
- Non-interest income increased by 11.2% due to higher deposit services income, trust fees, and brokerage fees.
- The Fort Worth wealth management team was built out faster than expected, contributing to increased trust fees over budget by 8.4%.
- Net interest income decreased by $355,000 due to higher funding costs and a slight drop in yield on earning assets.
- The net interest margin fell to 2.90%, an 11 basis point decrease from the previous quarter.
- Deposits decreased by $705.1 million, primarily driven by a reduction in broker deposits.
- Loan balances remained flat due to elevated payoffs, particularly in the commercial real estate sector.
- The company anticipates continued margin pressure due to intense deposit competition and potential increases in CD rates.
Hello, everyone. Thank you for joining us and welcome to Southside BankShares, Inc. second quarter Earnings Call. After today's prepared remarks, we will host a question-and-answer session. (Operator Instructions) I will now hand the conference over to Lindsey Bailes, SVP Investor Relations. Lindsey, please go ahead.
Thank you, Jade. Good morning, everyone, and welcome to Southside Bancshares second quarter 2026 earnings call. A transcript of today's call will be posted on southside.com under Investor Relations. During today's call and in other disclosures and presentations, I'll remind you that forward-looking statements are subject to risks and uncertainties.
Factors that could materially change our current forward-looking assumptions are described in our earnings release in our Form 10-K. Joining me today are President and CEO, Keith Donahoe CFO, Julie Shamburger and Chief Treasury Officer, Suni Davis. Keith will start us off with his comments on the quarter, then Julie will give an
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