Southside Bancshares Q3 net income jumps 469% on improved asset quality

Overview

• Texas bank holding company reported Q3 net income and EPS sharply higher yr/yr

• Net interest income and margin rose both yr/yr and sequentially

• Noninterest income up yr/yr; asset quality metrics remain solid

Outlook

• Company did not provide specific financial guidance for the current or future periods

Result Drivers

• NET INTEREST INCOME - Co said Q3 net interest income rose due to higher average balance of interest earning assets and lower average rate paid on interest bearing liabilities

• NONINTEREST INCOME - Co said yr/yr increase in noninterest income was driven by higher trust fees, deposit services and brokerage services income

• ASSET QUALITY - Co said asset quality metrics remain solid with declining classified loans and low ratio of nonperforming assets to total assets

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Southside Bancshares Inc is $34.00, about 7.5% above its October 28 closing price of $31.63

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• Oct 28 - Stock Yards Bancorp Q3 profit rises 20% on merger boost

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• Oct 27 - Banc of California Q3 EPS rises on higher net interest income

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)