Southside Bancshares posted second-quarter 2026 net income of $26.8 million, a 15.4% increase from the prior quarter, driven by higher non-interest income and lower expenses. Diluted earnings per share rose to $0.90, while the net interest margin compressed 11 basis points to 2.90% amid higher funding costs and a slight decline in earning-asset yields. Total loans remained flat at $4.95 billion as record new production of $487 million was offset by $297 million in payoffs, heavily concentrated in commercial real estate. The company shifted its wholesale funding mix, replacing brokered deposits with FHLB advances and Federal Reserve discount window borrowings, and grew its C&I portfolio by 8.5% year-to-date. Management reiterated a mid-single-digit loan growth target for 2026 and highlighted an accelerated build-out of the Fort Worth wealth management team that helped push trust fees 26.4% above the prior-year period.
Southside Bancshares, Inc.Net income grew 15.4% linked-quarter, EPS rose to $0.90, and trust fees surged 26.4%.