Southside Bancshares (NASDAQ: SBSI), a regional bank based in Texas, has released its financial results for the second quarter ending June 30, 2026. The company achieved double-digit year-over-year growth in both net profit and earnings per share for the quarter, surpassing Wall Street's expectations, although its revenue fell short of market forecasts.
According to the financial report, the company's net profit for the second quarter reached $26.8 million, or $0.90 per diluted share. This represents a 23.0% increase from the $21.8 million reported in the same period last year and exceeded the analyst consensus estimate of $0.86 per share. Quarterly revenue came in at $71.33 million, below the market's forecast of $74.7 million, but showed an improvement compared to the $68.84 million recorded in the prior year's quarter.
The performance improvement was primarily driven by higher net interest income and effective cost control. Net interest income for the quarter was $57.3 million, up 5.7% year-over-year. Non-interest income increased to $14.0 million, a 15.3% year-over-year rise. Concurrently, non-interest expenses decreased to $38.7 million, down 1.5% from the previous year. President and Chief Executive Officer Keith Donahoe attributed the 15.4% sequential increase in net profit to the growth in non-interest income and the reduction in non-interest expenses.
Asset quality remained robust, with non-performing assets representing just 0.11% of total assets. The annualized return on average assets for the quarter was 1.23%, and the return on average tangible common equity reached 16.09%. As of the end of the quarter, the company's total assets stood at $8.76 billion, and total loans were $4.95 billion, an increase of 7.6% compared to the same period last year. Loans grew by $3.4 million on a sequential quarterly basis, and management indicated strong loan production, with expectations for mid-single-digit growth for the full year.
The company had previously announced a quarterly cash dividend of $0.36 per share.