SBSI - Southside Bancshares: Lower Credit Costs To Drive Earnings

• The provision expense will likely decline because the credit risk has declined, and SBSI already has a sizable reserve for loan losses.
• The recent deterioration of the pandemic, the slow vaccine roll-out, and SBSI’s high exposure to vulnerable loan segments are causes of risks.
• Forgiveness of Paycheck Protection Program loans will likely constrain loan growth.
• The year-end target price suggests a limited upside.

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