Kroll Bond Rating Agency affirmed the BBB+ senior unsecured debt rating, BBB subordinated debt rating, and K2 short-term debt rating for Tyler, Texas-based Southside Bancshares Inc.
The rating agency also affirmed Southside Bank's A- senior unsecured debt and deposit ratings, BBB+ subordinated debt rating and K2 short-term debt and deposit ratings.
The outlook on all long-term ratings is stable.
According to Kroll, the ratings are supported by the company's "consistent profitability and bolstered by improving operating leverage" following the acquisition of Diboll State Bancshares Inc. which closed in November 2017, as well as other efficiency initiatives. The rating agency added that the company's "conservative capital management regime, favorable liquidity position and experienced executive team" also support the ratings.