Southside Bancshares, Inc. has reported its financial results for the fourth quarter and the year ended December 31, 2025. The company's fourth quarter net income was $21.0 million, with earnings per diluted common share of $0.70. The tax-equivalent net interest margin linked quarter increased four basis points to 2.98%. The annualized return on fourth quarter average assets was 0.99%, while the return on fourth quarter average tangible common equity was 13.03%.
In terms of operating results for the three months ended December 31, 2025, net interest income increased by $3.5 million, or 6.6%, compared to the same period in 2024. Noninterest income, excluding the net losses on sales of available for sale ("AFS") securities, increased by $0.6 million, or 5.0%, for the same period. Noninterest expense decreased by $0.7 million, or 1.8%, compared to the same period in 2024. Income tax expense decreased by $0.9 million, or 18.8%.
For the year ended December 31, 2025, net income was $69.2 million, a decrease of $19.3 million, or 21.8% compared to the same period in 2024. Earnings per diluted common share were $2.29, a decrease of $0.62, or 21.3%. The decrease in net income was driven by the net loss on the sale of AFS securities and, to a lesser extent, an increase in noninterest expense.
The company's balance sheet data shows that loans at December 31, 2025, increased by $156.4 million, or 3.4%, compared to December 31, 2024, and by $52.7 million, or 1.1%, on a linked quarter basis. Deposits at December 31, 2025, increased by $210.9 million, or 3.2%, compared to December 31, 2024, and decreased by $96.4 million, or 1.4%, on a linked quarter basis.
Nonperforming assets at December 31, 2025, were $38.2 million, or 0.45% of total assets, an increase of $2.6 million, or 7.4%, from September 30, 2025. The allowance for loan losses totaled $45.1 million, or 0.94% of total loans, at December 31, 2025, compared to $45.3 million, or 0.95% of total loans, at September 30, 2025.
Southside Bancshares, Inc. declared a fourth quarter cash dividend of $0.36 per share on November 6, 2025, which was paid on December 4, 2025, to all shareholders of record as of November 20, 2025. As a result of these announcements, the company's shares have moved -0.31% on the market, and are now trading at a price of $32.27. If you want to know more, read the company's complete 8-K report here.
