Abstract

Southside Bancshares will report its quarter ending in December on January 29, 2026 Pre-Market; this preview consolidates the latest company-reported forecasts and recent financials to frame revenue, margins, and EPS expectations alongside prevailing institutional sentiment.

Market Forecast

Consensus-level inputs indicate Southside Bancshares’ current-quarter revenue is estimated at $71.70 million, up 5.26% year over year, with EBIT forecast at $28.90 million (down 2.67% year over year), and EPS at $0.79 (up 10.14% year over year). Company-level metrics for gross profit margin are not available in the collected forecast; net profit or margin guidance has not been provided through the tool data, so EPS and revenue frame the baseline view. The company’s main business remains core banking revenues, and recent disclosures frame stable top-line trajectory with a focus on defending margins as funding costs normalize. The most promising area appears to be core banking fee and spread-related revenue stabilization within its primary banking line, though a detailed segment growth rate for the current quarter is not provided in the collected forecast.

Last Quarter Review

In the previous quarter, Southside Bancshares recorded revenue of $67.03 million (up 5.34% year over year), GAAP net profit attributable to shareholders of $4.91 million, a net profit margin of 11.52%, and adjusted EPS of $0.16 (down 76.47% year over year); the gross profit margin was not disclosed via the collected dataset. A key financial highlight was the marked quarter-on-quarter net profit decline, with the quarter-on-quarter change in GAAP net profit at -77.48%, indicating significant short-term earnings pressure. Main business revenue from banking-related activities registered $42.64 million in the period, though a corresponding year-over-year growth figure by sub-segment was not available from the retrieved breakdown.

Current Quarter Outlook (with major analytical insights)

Core Banking Revenue and Margin Dynamics

For the quarter ending in December, revenue is estimated at $71.70 million, representing a year-over-year increase of 5.26%. The implied improvement in top-line growth suggests a modest recovery from the prior quarter’s revenue base of $67.03 million, aligning with typical seasonal resilience in fee and balance-related activity at regional banks. While gross margin data is not available, the net earnings sensitivity to funding costs and deposit mix remains central. A key consideration this quarter is whether net interest income stabilizes as deposit betas plateau and asset yields reprice at a slower pace, which would support incremental margin lift even if broader loan growth stays muted.

Earnings Power and EPS Trajectory

The company’s EPS forecast of $0.79 implies growth of 10.14% year over year, a material step up from the prior quarter’s $0.16 actual. This anticipated rebound is consistent with normalized noninterest items and reduced quarter-specific charges that compressed last quarter’s profitability. The EBIT estimate of $28.90 million, down 2.67% year over year, hints that operating leverage may remain constrained in the near term, placing greater emphasis on credit costs, deposit pricing, and securities portfolio yields. A favorable EPS outcome will likely require a comparatively benign credit expense profile and some easing of funding pressure, which together could offset softer operating leverage flagged by the EBIT trend.

Main Business Focus: Loan and Deposit Franchise

Management attention this quarter will likely concentrate on loan yields and deposit costs within the banking franchise. Industrywide, deposit competition remains persistent, particularly in interest-bearing categories, and the company’s ability to optimize its funding mix will influence net interest margin and earnings quality. From a revenue perspective, a return to modest growth at $71.70 million would be consistent with gradual expansion in core spread income and stabilized fee streams. Investors should watch for commentary on loan growth by category and geographic exposure, as any incremental expansion in higher-yielding assets could counterbalance deposit repricing headwinds.

Most Promising Business Driver: Stabilization in Core Banking Income

Within the current setup, the most constructive near-term lever is stabilization and incremental improvement in core banking income. The prior quarter’s $42.64 million from banking activities underscores the significance of this line, and even modest net interest margin improvements can meaningfully influence quarterly EPS when starting from a depressed base of $0.16. The forecasted EPS of $0.79 relies on normalization of both spread income and operating costs; if deposit pricing pressures ease faster than expected, earnings elasticity could surpass the EBIT trend, given the higher sensitivity of EPS to net interest margin. The sustainability of this rebound rests on credit quality staying stable and securities portfolio marks not introducing fresh volatility.

Stock Price Sensitivities This Quarter

Share performance in the near term is poised to react to updates on net interest margin trajectory, credit costs, and deposit flows. A sequential improvement in net interest margin would likely be read positively given last quarter’s sharp net profit compression, while any signs of accelerating nonperforming asset formation or elevated provisioning could weigh on equity valuation. The spread between the revenue forecast growth of 5.26% and the EBIT forecast decline of 2.67% raises questions about operating leverage; management commentary on expense discipline and the mix of noninterest income will be critical to investor interpretation. If EPS lands close to $0.79 with a steady credit profile, the result could re-anchor expectations for 2026, whereas a miss tied to funding costs or provisions would reinforce caution.

Analyst Opinions

Based on the information gathered within the allowed period, published analyst calls specific to January 2026 are limited, and the available institutional stance trends cautious. The prevailing majority view leans neutral-to-cautious, emphasizing balanced risks around funding costs and operating leverage despite a projected year-over-year EPS improvement. The cautious positioning reflects attention to the gap between revenue growth and EBIT softness, with expectations anchored to whether net interest margin can improve enough to support the EPS rebound.