Southside Bancshares office reflects stability and financial growth.
Southside Bancshares has announced its earnings for the second quarter, showcasing a net income of $21.8 million, up 1.4% from the previous quarter. The company’s diluted earnings per share reached $0.72, and it reported an annualized return on average assets of 1.07%. The loan portfolio saw an increase to $4.6 billion, driven by commercial real estate and construction loans. Despite adjusting its loan growth guidance to 3%-4%, Southside remains confident in its outlook for the future with a strong balance sheet and robust loan pipeline.
In a recent financial release, Southside Bancshares announced its earnings for the second quarter of 2025, highlighting a robust net income of $21.8 million. This marks an increase of $306,000, or 1.4%, compared to the previous quarter. The company’s performance appears steady despite shifting expectations in loan growth.
The company reported diluted earnings per share of $0.72, which is an increase of $0.01 from the first quarter of 2025. Furthermore, Southside achieved an annualized return on average assets of 1.07% and an impressive 14.38% return on average tangible common equity. The bank also experienced a boost in net interest margin, which increased by nine basis points to 2.95% when compared to the previous quarter.
For the quarter, Southside Bancshares reported net interest income of $54.3 million, an increase of $414,000, or 0.8%, over the prior quarter. The bank originated new loans worth $293 million, with $228 million already funded. The remaining loans are expected to be funded over the next six to nine quarters.
As of June 30, 2025, Southside’s total loans reached $4.6 billion, representing a $34.7 million, or 0.8%, increase from the previous quarter. The growth in loans is primarily attributed to gains in commercial real estate and construction loans. However, with significant payoffs in commercial real estate totaling around $150 million during the quarter, the bank has revised its loan growth guidance for the year 2025 to a range of 3%-4%.
Despite the reduction in loan growth expectations, Southside’s loan pipeline is robust, exceeding $2.1 billion, an increase from $1.9 billion at the end of Q1. Within this pipeline, approximately 43% consists of term loans while 57% is related to construction and commercial lines of credit. Notably, Commercial & Industrial (C&I) loans now represent about 30% of the loan pipeline, a significant increase from 25% during the last quarter.
Southside’s overall asset quality remains stable, with nonperforming assets unchanged at 0.39% of total assets. Meanwhile, classified loans have decreased to $55.4 million from $67 million at the end of Q1. The allowance for credit losses showed a slight reduction, falling to $48.3 million from the previous $48.5 million.
The bank’s securities portfolio stood at $2.73 billion as of June 30, down by $6.2 million, or 0.2%, from the previous quarter. As liquidity remains a key concern, Southside reported liquidity lines of approximately $2.33 billion available as of June 30, 2025.
In terms of noninterest revenues, Southside reported an increase of $1.4 million, or 12.7%, from the prior period. However, the noninterest expense rose to $39.3 million, an increase of $2.2 million, or 5.8%, mainly due to a $1.2 million write-off related to branch demolition. The efficiency ratio improved to 53.7% from 55.04% at the conclusion of Q1.
The effective tax rate for the quarter was 17.8%, down from 18% in the previous quarter, which positively impacts earnings. Share repurchases during Q2 included 424,435 shares purchased at an average price of $28.13, with an additional purchase of 2,443 shares post-quarter at $30.29.
Despite the adjustments in loan growth projections, management expressed confidence in the overall outlook for 2025. With the bank maintaining a strong balance sheet and a consistent approach to asset and risk management, Southside Bancshares appears well-positioned to navigate the challenges ahead in the banking landscape.
Watertown, MA, August 16, 2025 News Summary Tishman Speyer closed a $25.2 million mezzanine loan to…
Fort Lauderdale, Florida, August 16, 2025 News Summary Moss has started construction on The Dunes Fort…
California (Eaton and Palisades fire zones), August 16, 2025 News Summary The governor issued an executive…
Los Angeles, California, USA, August 16, 2025 News Summary Cathay General Bancorp reaffirmed its quarterly cash…
Irvine, Orange County, California, August 16, 2025 News Summary CBRE has bolstered its Orange County presence…
Port of Long Beach, California, August 16, 2025 News Summary Jacobs has been awarded the program-level…