Southside Bancshares Reports $21.8 Million Net Income in Q2 2025, Down 11.6% Year-Over-Year

Southside Bancshares, Inc. reported a net income of $21.8 million for the second quarter of 2025, a decrease of 11.6% from $24.7 million in the same period last year. This decline was attributed to a $3.5 million increase in noninterest expenses and a $1.1 million rise in the provision for credit losses, which were partially offset by a $658,000 increase in net interest income and a $588,000 rise in noninterest income. Earnings per diluted share fell to $0.72 from $0.81 year-over-year. For the first half of 2025, net income totaled $43.3 million, down 6.2% from $46.2 million in the prior year, with earnings per diluted share decreasing to $1.42 from $1.52.

The company's total assets decreased by $177.5 million, or 2.1%, to $8.34 billion as of June 30, 2025, compared to $8.52 billion at the end of 2024. The decline was primarily due to a $83.1 million reduction in the securities portfolio, which fell to $2.73 billion. Loans also decreased by $59.7 million, or 1.3%, to $4.60 billion, driven by declines in construction, municipal, and individual loans, although commercial real estate and commercial loans saw increases. Nonperforming assets surged to $32.9 million, representing 0.39% of total assets, compared to $3.6 million, or 0.04%, at the end of 2024.

In terms of operational metrics, Southside Bancshares had 178,970 total deposit accounts with an average balance of $34,000 as of June 30, 2025. Total deposits decreased by $22.3 million, or 0.3%, to $6.63 billion, with noninterest-bearing deposits making up approximately 20.6% of total deposits. The company’s cost of interest-bearing deposits decreased to 2.82% from 3.01% year-over-year. Additionally, total FHLB borrowings decreased by 30.1% to $511.5 million, while other borrowings increased by 30.6% to $99.8 million.

Looking ahead, Southside Bancshares plans to open a new branch in Tyler, Texas, in 2026, as part of its strategy to expand its geographic footprint. The company continues to monitor economic conditions and interest rate fluctuations, which could impact its net interest income and overall financial performance. Management remains focused on maintaining adequate liquidity and capital ratios, with total shareholders' equity at $807.2 million, or 9.7% of total assets, as of June 30, 2025.