Updated 3/26
Southside Bancshares, Inc., the parent company of Southside Bank, has been serving communities in Texas for over half a century. Headquartered in Tyler, it has grown from a small-town bank into a stable regional financial institution. While it doesn’t make big headlines, it has quietly built a reputation for consistency and shareholder friendliness—especially when it comes to dividends.
Recent Events
In the most recent quarter, Southside posted strong numbers. Revenue climbed over 18% year-over-year, and earnings per share jumped nearly 26%. That kind of growth stands out, especially in a challenging interest rate environment where many banks are struggling to maintain margin.
Loan quality has remained stable, and management seems to be steering clear of risky moves. Their conservative approach has helped them avoid the issues facing other regional banks. Southside also kept its dividend intact, announcing its usual quarterly payout of $0.36 per share, with the most recent dividend hitting investors’ accounts in early March.
Key Dividend Metrics
📈 Dividend Yield: 4.87%
💵 Annual Dividend: $1.44 per share
📊 Payout Ratio: 49.48%
📅 Payment Frequency: Quarterly
⏳ 5-Year Average Yield: 4.09%
📉 Dividend Growth: Modest but consistent
🔒 Dividend Safety: Supported by strong margins and balance sheet
Dividend Overview
With a yield pushing 4.9%, Southside is ahead of many regional banks in terms of income potential. It hasn’t cut its dividend in decades and tends to raise it periodically, though not dramatically. What’s appealing here isn’t fast growth, but the confidence that the checks will keep coming.
This is the kind of stock dividend investors often look for—one that pays a solid yield and doesn’t surprise you with sudden cuts or policy shifts. The bank’s long-term focus on shareholder returns is evident in its clean track record.
Dividend Growth and Safety
Southside’s dividend isn’t just generous—it’s also well-supported. The bank’s profit margin is strong at nearly 35%, and its operating margin is close to 43%. That kind of efficiency allows it to pay a reliable dividend without stretching its resources.
With a payout ratio under 50%, there’s still room to maintain or even grow the dividend during leaner times. The company also generates over $100 million in operating cash flow, which offers further reassurance for income-focused investors.
Over the years, Southside has shown a preference for consistency. It occasionally issues special dividends or stock splits, like the 1024:1000 split back in 2017. While dividend growth hasn’t been rapid, the steady yield helps make up for it.
Chart Analysis
Market Cycle Position
Looking at the one-year chart for SBSI, what stands out immediately is the transition out of a clear distribution phase into a markdown cycle, followed now by the early signs of potential re-accumulation. The stock peaked around the $37.50 mark late last year, followed by a series of lower highs and lower lows through January and February. That kind of pattern is typical of markdown phases, as sellers outweigh buyers and institutions quietly exit positions.
Volume spiked a few times on red days, confirming distribution pressure, especially in early January and late February. What we’re seeing now is a potential shift—the stock has stabilized near the $27.50 zone and is showing a series of small higher lows into March.
Moving Averages
The 50-day moving average has rolled over and is now clearly trending downward. It crossed below the 200-day moving average in early February, which is a textbook death cross. This crossover usually confirms a longer-term bearish sentiment. However, price is now inching back toward both averages, with the 200-day flattening out.
This kind of flattening after a downtrend hints that the down move may be losing momentum. If SBSI can regain and hold above the 200-day, it may signal that a base is forming.
Volume Behavior
Volume has been relatively quiet since mid-February, with occasional green spikes. These bursts in buying interest, especially the strong green volume bar toward the end of March, suggest some accumulation may be taking place beneath the surface.
Notably, this comes after a steep drop and bounce off support, which hints at possible institutional interest returning at lower prices.
RSI and Momentum
The RSI has been creeping up from oversold levels over the last couple of weeks, reflecting improved momentum. It dipped below the 30 mark in early March and has now pushed back toward 40. While not yet strong, it’s showing early signs of recovery.
A rising RSI from oversold conditions often pairs with the beginning of the accumulation phase. This makes the current setup worth watching, especially if the RSI can climb back above 50.
Recent Candle Action
The last five daily candles tell a subtle story. Price action has shown small-bodied candles with long lower wicks, particularly in the last two sessions. This wick behavior signals buyers stepping in on dips, preventing further downside. Combined with a gentle uptrend in those candles, there’s evidence of demand reappearing at this level.
Volume has also picked up slightly on green days, adding to the weight of the argument that the markdown may have run its course and accumulation is beginning.
Analyst Ratings
📉 Analysts have recently maintained a more cautious stance on Southside Bancshares Inc. (SBSI). On January 30, 2025, Stephens & Co. lowered their price target from $38.00 to $37.00 while keeping their “Equal-Weight” rating. This downward revision points to slightly muted expectations, likely tied to pressure on net interest margins and the impact of changing rate dynamics across the regional banking sector.
🔍 On January 14, 2025, Raymond James began coverage on SBSI with a “Market Perform” rating. Rather than a bearish take, this reflects a neutral view—suggesting the stock is expected to perform in line with the broader market without any strong near-term upside or downside catalysts.
📊 As of the latest update, the average analyst rating stands at “Hold,” with a consensus price target of $37.00. That leaves room for a roughly 25% upside from the current share price around $29.57. While the dividend yield and financial stability remain strengths, analysts appear to be taking a wait-and-see approach as macroeconomic uncertainty lingers over the banking landscape.
📌 Overall, the rating changes aren’t dramatic but indicate a market that’s still digesting potential headwinds for smaller regional banks—particularly when it comes to earnings consistency and margin compression in 2025.
Earning Report Summary
Strong Finish to the Year
Southside Bancshares wrapped up 2024 on a solid note. In the fourth quarter, the company posted net income of $21.8 million, which was a noticeable jump from $17.3 million in the same period a year earlier. Earnings per share came in at $0.71, up from $0.57. That kind of improvement shows that the bank was able to maintain momentum even with the mixed backdrop across the banking sector.
Return on assets edged up to 1.03%, while return on tangible common equity hit 14.12%, both showing signs of efficient use of capital. These metrics are particularly important in banking, and Southside looks to be squeezing solid performance out of its balance sheet.
Full-Year Growth and Loan Expansion
Looking at the year as a whole, Southside brought in $88.5 million in net income, which was a modest increase over the $86.7 million it posted in 2023. Earnings per share for the full year rose to $2.91 from $2.82.
One bright spot in the report was the loan growth. Loans increased 3% year-over-year, and during the fourth quarter alone, they climbed by over $83 million. A good chunk of that growth came in December, which hints at a strong finish in lending activity—something not all banks have been able to achieve lately.
Asset Quality and Balance Sheet Health
Nonperforming assets dropped to just 0.04% of total assets, which speaks volumes about Southside’s conservative credit management. Total assets reached $8.52 billion, and deposits were up slightly to $6.65 billion.
Those deposit levels are important in today’s environment, where many banks are seeing outflows due to competition from higher-yield options elsewhere. Southside seems to be holding its ground.
Revenue Trends and Expenses
Net interest income in the quarter landed at $53.7 million, a touch below the same period last year. The net interest margin also slipped to 2.70% from 2.83%. That said, noninterest income jumped to $12.3 million, helped by stronger activity across fee-based services.
Operating expenses came in higher at $38.2 million. That increase was mainly tied to rising salaries, professional fees, and technology costs. In a way, those higher expenses reflect ongoing investment in growth and digital infrastructure.
Continued Dividend Payout
The board declared a $0.36 dividend for the quarter, paid in early December. This continues Southside’s trend of reliable quarterly payouts, which income-focused investors have come to count on.
Financial Health and Stability
The balance sheet looks healthy. Southside holds $427 million in cash—more than $14 per share. Considering the stock trades around $29, that’s a strong liquidity position. Total debt is just under $1 billion, which is manageable for a bank of this size, especially one that operates with a low-risk model.
Returns are solid, too. Return on assets is a little over 1%, and return on equity is above 11%. These figures speak to competent, stable management. They may not be eye-popping, but they’re sustainable, which is what matters to most dividend-focused investors.
Valuation and Stock Performance
From a valuation standpoint, SBSI isn’t expensive. It trades at about 10 times trailing earnings and just a little over book value. Investors aren’t paying a premium here—and they rarely have to with this name.
The stock has pulled back a bit from its 52-week high of $38 and is currently around $29.50. It sits below both its 50-day and 200-day moving averages, suggesting some softness in sentiment, possibly tied to broader bank sector concerns.
Still, this isn’t a high-volatility stock. With a beta of just 0.54, it tends to move less than the overall market, which can be attractive when stability is the priority.
Risks and Considerations
No bank is risk-free, and Southside is no exception. Its presence is focused on smaller regional markets, which can limit growth opportunities compared to banks with larger footprints.
There’s also the interest rate angle. If rates drop significantly, margins could be pressured. Southside has managed well through recent rate shifts, but that risk remains part of the picture.
Liquidity is something to keep in mind, too. With average daily trading volume under 110,000 shares, the stock isn’t highly liquid. That’s not a dealbreaker for long-term investors, but it’s worth being aware of if you ever need to exit quickly.
Short interest is modest but worth monitoring. As of mid-March, about 3.65% of the float was sold short. It’s not high enough to raise alarms, but it does show that some traders are betting against the name, possibly expecting further weakness in the regional bank space.
Final Thoughts
Southside Bancshares doesn’t chase headlines. It doesn’t need to. The bank has built a solid reputation for delivering steady income, backed by a clean balance sheet and a commitment to shareholders. That’s what dividend investors are often after—a name they can count on, quarter after quarter.
The nearly 5% yield is attractive on its own, and when you layer on the stability of operations and management’s conservative approach, SBSI stands out in a sea of banks trying to do too much. It’s the kind of stock you can quietly hold, let the dividends roll in, and not worry about constant surprises.