NewsHK

Southside Bancshares posts 23% profit jump as regional bank funding costs bite into margin

7/24/2026

community banks have spent the past year navigating a funding cost cycle that punished net interest margins even as loan books held steady. Against that backdrop, Southside Bancshares, Inc.

(NYSE: SBSI) of Tyler, Texas reported second-quarter 2026 net income of $26.8 million, a 23% rise from $21.8 million a year earlier, with earnings per diluted share climbing to $0.90 from $0.72.

Second-quarter result and what drove it The year-over-year income gain reflected higher net interest income, stronger fee revenue, and tighter expense management.

Net interest income reached $57.3 million for the quarter, up 5.7% from the same period in 2025, though it slipped $355,000 from Q1 2026 as funding costs rose and asset yields drifted lower.

Keep reading

Read the full story

Open on NewsHK