Southside Bancshares: Increasing Interest Rates Destroyed The Book Value

Sep. 12, 2022 11:30 AM ETSouthside Bancshares, Inc. (SBSI)7 Comments


  • Southside Bancshares is a Texas-focused bank with just over $7.5B in assets.
  • Eight months ago I was charmed by the bank's focus on liquid assets, but this has only caused issues in the past few months.
  • As interest rates started to increase, the value of the bank's securities portfolio (available for sale) started to decrease.
  • Despite generating $0.90 per share in retained earnings (EPS minus DPS) in the first semester, the tangible book value fell by almost $6/share.
  • While I like how this bank is being run and while SBSI is not expensive based on the earnings multiple, I am not prepared to pay over 2X TBV.
  • I do much more than just articles at European Small-Cap Ideas: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

Texas - the lone star state

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In January, I wasn’t too sure what to think about Southside Bancshares (NASDAQ:NASDAQ:SBSI). I could see the bank offered good quality when it came to the balance sheet and investments, but the rather

Data by YCharts

Income Statement

SBSI Investor Relations

Asset Side of Balance Sheet

SBSI Investor Relations

Liabilities Side of Balance Sheet

SBSI Investor Relations

Comprehensive Income Statement

SBSI Investor Relations

Loan Book Quality

SBSI Investor Relations

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