SBSI · Southside Bancshares, Inc. Q2 FY2026 earnings call record财报电话会记录

“Second quarter results are highlighted by earnings per share of $0.90, a return on average assets of 1.23%, and a return on average tangible common equity of 16.09%.”

“A $3.6 million increase in linked quarter net income was primarily driven by increased non-interest income and a decrease in non-interest expenses.”

“We continue to target mid single-digits for 2026 loan growth.”

“Our loan pipeline totals $1.47 billion today, up slightly from first quarter levels of approximately $1.3 billion.”

“The pipeline remains well-balanced with approximately 52% term loans and 48% construction or commercial lines of credit.”

“This represents a change from Q1 pipeline, which reflected 44% term and 56% construction or commercial lines of credit.”

“Our tax equivalent net interest margin was 2.90%, a decrease of 11 basis points on a linked quarter basis from 301 for the first quarter.”

“We expect to reinvest future cash flows from the securities portfolio into AFS, MBS, and potentially, to a lesser extent, into bank sub-debt, while maintaining the balance of securities at approximately $2.7 billion-$2.8 billion.”

“The funding pressure was a large contributor to the narrowed NIM and margin.”

“Some of that is because we did close a lot, a fair amount in the first six months of the year of this term debt on some thinner margins.”

“I guess just taking that together, it kind of sounds like there's going to be some continued margin pressure going forward, just given absent of any rate hikes.”

“I'm curious, given the pressure on funding costs, and it sounds like even incremental CD costs and repricing, why you wouldn't think more about letting that book run down and taking those cash flows and trying to fund loan growth through those cash flows.”