EX-99.1 2 ex991er09302025.htm EX-99.1

EXHIBIT 99.1

SOUTHSIDE BANCSHARES, INC.

ANNOUNCES FINANCIAL RESULTS FOR THE

THIRD QUARTER ENDED SEPTEMBER 30, 2025

Tyler, Texas (October 24, 2025) Southside Bancshares, Inc. (“Southside” or the “Company”) (NYSE: SBSI) today reported its financial results for the quarter ended September 30, 2025.

“During the third quarter, we restructured a portion of our available for sale (“AFS”) securities portfolio to enhance future earnings by selling approximately $325 million of primarily lower yielding long duration municipal securities and, to a lesser extent, mortgage-backed securities (“MBS”), with a combined taxable equivalent yield of approximately 3.28% at a loss of $24.4 million,” stated Lee R. Gibson, Chief Executive Officer of Southside. “The majority of the sales occurred during September. The proceeds from the sale of these securities funded a portion of the loan growth during the quarter with the balance reinvested in US Agency MBS pools and Texas municipal securities. As previously disclosed, we issued $150.0 million of our subordinated debt at 7.00% fixed to floating rate notes during August. Linked quarter, net interest income increased $1.45 million and our net interest margin decreased one basis point to 2.94% due to the $150.0 million issuance of subordinated debt during the quarter. Linked quarter, total loans increased $163.4 million, with $81.0 million of this growth occurring on September 30, 2025.”

Operating Results for the Three Months Ended September 30, 2025

Net income was $4.9 million for the three months ended September 30, 2025, compared to $20.5 million for the same period in 2024, a decrease of $15.6 million, or 76.1%. Earnings per diluted common share were $0.16 for the three months ended September 30, 2025, compared to $0.68 for the same period in 2024, a decrease of $0.52, or 76.5%. The decrease in net income was driven by the net loss on sale of AFS securities and, to a lesser extent, an increase in noninterest expense, partially offset by increases in several noninterest income categories, decreases in income tax expense and provision for credit losses and an increase in net interest income. For the three months ended September 30, 2025, we had a $24.4 million net loss on sale of AFS securities, compared to a net loss of $1.9 million for the same period in 2024. Annualized returns on average assets and average shareholders’ equity for the three months ended September 30, 2025 were 0.23% and 2.40%, respectively, compared to 0.98% and 10.13%, respectively, for the three months ended September 30, 2024. Our efficiency ratio and tax-equivalent efficiency ratio(1) were 54.87% and 52.99%, respectively, for the three months ended September 30, 2025, compared to 53.94% and 51.90%, respectively, for the three months ended September 30, 2024, and 55.67% and 53.70%, respectively, for the three months ended June 30, 2025.

Net interest income for the three months ended September 30, 2025 was $55.7 million, an increase of $0.3 million, or 0.5%, compared to the same period in 2024. The increase in net interest income was due to the decrease in the average rate paid on our interest bearing liabilities and the increase in the average balance of our interest earning assets, partially offset by the decrease in the average yield of our interest earning assets. Linked quarter, net interest income increased $1.5 million, or 2.7%, compared to $54.3 million for the three months ended June 30, 2025, due to increases in the average balance of and the average yield on our interest earning assets, partially offset by increases in the average balance of and average rate paid on our interest bearing liabilities.

Our net interest margin and tax-equivalent net interest margin(1) decreased to 2.81% and 2.94%, respectively, for the three months ended September 30, 2025, compared to 2.82% and 2.95%, respectively, for both the three-month periods ended September 30, 2024 and June 30, 2025.

Noninterest income, excluding the net losses on the AFS securities, was $12.4 million and $10.1 million for the three months ended September 30, 2025 and 2024, respectively, an increase of $2.3 million, or 22.8%. The increase was due to increases in other noninterest income and trust fees. On a linked quarter basis, noninterest income, excluding the net losses on the AFS securities increased $0.3 million, or 2.1%, compared to the three months ended June 30, 2025, due primarily to the increase in trust fees during the three months ended September 30, 2025.

Noninterest expense increased $1.2 million, or 3.3%, to $37.5 million for the three months ended September 30, 2025, compared to $36.3 million for the same period in 2024, primarily due to increases in salaries and employee benefits expense, other noninterest expense and professional fees. On a linked quarter basis, noninterest expense decreased by $1.7 million, or 4.4%, compared to the three months ended June 30, 2025, due to a decrease in other noninterest expense, partially offset by an increase in salaries and employee benefits expense. The decrease in other noninterest expense was primarily due to a one-time charge of $1.2 million on the demolition of an old branch facility following completion of the new branch during the three months ended June 30, 2025.

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Income tax expense decreased $4.2 million, or 95.7%, for the three months ended September 30, 2025, compared to the same period in 2024. On a linked quarter basis, income tax expense decreased $4.5 million, or 96.0%. Our effective tax rate (“ETR”) decreased to 3.7% for the three months ended September 30, 2025, compared to 17.6% for the three months ended September 30, 2024, and decreased from 17.8% for the three months ended June 30, 2025. The lower ETR for the three months ended September 30, 2025 compared to the same period in 2024, was primarily due to the impact of the net loss on the sale of AFS securities of $24.4 million recorded during the third quarter of 2025 on our tax-exempt income as a percentage of pre-tax income as well as a decrease in state income tax expense.

Operating Results for the Nine Months Ended September 30, 2025

Net income was $48.2 million for the nine months ended September 30, 2025, compared to $66.7 million for the same period in 2024, a decrease of $18.5 million, or 27.7%. Earnings per diluted common share were $1.59 for the nine months ended September 30, 2025, compared to $2.20 for the same period in 2024, a decrease of $0.61, or 27.7%. The decrease in net income was driven by the net loss on the sale of AFS securities and, to a lesser extent, increases in noninterest expense and provision for credit losses, partially offset by increases in several noninterest income categories, decreases in income tax expense and an increase in net interest income. For the nine months ended September 30, 2025, we had a $24.9 million net loss on sale of AFS securities, compared to a net loss of $2.5 million for the same period in 2024. Returns on average assets and average shareholders’ equity for the nine months ended September 30, 2025 were 0.77% and 7.89%, respectively, compared to 1.06% and 11.19%, respectively, for the nine months ended September 30, 2024. Our efficiency ratio and tax-equivalent efficiency ratio(1) were 55.84% and 53.89%, respectively, for the nine months ended September 30, 2025, compared to 55.56% and 53.35%, respectively, for the nine months ended September 30, 2024.

Net interest income was $163.8 million for the nine months ended September 30, 2025, compared to $162.4 million for the same period in 2024, an increase of $1.4 million, or 0.9%, due to decreases in the average rate paid on and average balance of our interest bearing liabilities and a change in the mix of our interest earning assets, partially offset by the decrease in the average yield of interest earning assets.

Our net interest margin and tax-equivalent net interest margin(1) increased to 2.79% and 2.92%, respectively, for the nine months ended September 30, 2025, compared to 2.76% and 2.90%, respectively, for the same period in 2024.

Noninterest income, excluding the net losses on sale of AFS securities, was $35.3 million and $32.0 million, respectively, for the nine months ended September 30, 2025 and 2024, an increase of $3.4 million, or 10.5%. The increase was primarily due to an increase in other noninterest income and trust fees, partially offset by a decrease in BOLI income.

Noninterest expense was $113.9 million for the nine months ended September 30, 2025, compared to $109.0 million for the same period in 2024, an increase of $4.9 million, or 4.5%. The increase was primarily due to increases in other noninterest expense and professional fees.

Income tax expense decreased $4.6 million, or 32.3%, for the nine months ended September 30, 2025, compared to the same period in 2024. Our ETR was approximately 16.6% and 17.6% for the nine months ended September 30, 2025 and 2024, respectively. The lower ETR for the nine months ended September 30, 2025, as compared to the same period in 2024, was primarily due to the impact of the net loss on the sale of AFS securities of $24.4 million recorded during the third quarter of 2025 on our tax-exempt income as a percentage of pre-tax income as well as a decrease in state income tax expense.

Balance Sheet Data

At September 30, 2025, Southside had $8.38 billion in total assets, compared to $8.52 billion at December 31, 2024 and $8.36 billion at September 30, 2024.

Loans at September 30, 2025 were $4.77 billion, an increase of $187.2 million, or 4.1%, compared to $4.58 billion at September 30, 2024. Linked quarter, loans increased $163.4 million, or 3.5%, due to increases of $82.6 million in commercial real estate loans, $49.3 million in commercial loans and $49.1 million in construction loans. These increases were partially offset by decreases of $10.4 million in municipal loans, $6.0 million in 1-4 family residential loans and $1.3 million in loans to individuals.

Securities at September 30, 2025 were $2.56 billion, a decrease of $141.0 million, or 5.2%, compared to $2.70 billion at September 30, 2024. Linked quarter, securities decreased $174.2 million, or 6.4%, from $2.73 billion at June 30, 2025.

Deposits at September 30, 2025 were $6.96 billion, an increase of $525.9 million, or 8.2%, compared to $6.44 billion at September 30, 2024. Linked quarter, deposits increased $329.6 million, or 5.0%, from $6.63 billion at June 30, 2025.

At September 30, 2025, we had 179,097 total deposit accounts with an average balance of $34,000. Our estimated uninsured deposits were 36.9% of total deposits as of September 30, 2025. When excluding affiliate deposits (Southside-owned deposits) and public fund deposits (all collateralized), our total estimated deposits without insurance or collateral was 21.7% as of September 30, 2025. Our noninterest bearing deposits represent approximately 20.3% of total deposits. Linked quarter, our cost

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of interest bearing deposits remained at 2.82%. Linked quarter, our cost of total deposits decreased one basis point from 2.26% in the prior quarter to 2.25%.

Our cost of interest bearing deposits decreased 16 basis points, from 2.99% for the nine months ended September 30, 2024, to 2.83% for the nine months ended September 30, 2025. Our cost of total deposits decreased 11 basis points, from 2.37% for the nine months ended September 30, 2024, to 2.26% for the nine months ended September 30, 2025.

Capital Resources and Liquidity

Our capital ratios and contingent liquidity sources remain solid. During the third quarter ended September 30, 2025, we repurchased 26,692 shares of the Company’s common stock at an average price of $30.24 per share, pursuant to our Stock Repurchase Plan (the “Plan”). On October 16, 2025, the Board of the Company increased its authorization under the Company’s current Plan by 1.0 million shares, for a total authorization to repurchase up to 2.0 million shares of the Company’s common stock from time to time. Under the Plan, previously approved on July 20, 2023, the Company has repurchased approximately 868,000 shares at an average price per share of $28.43, resulting in approximately 1.1 million shares remaining. Repurchases of our outstanding common stock may be carried out in open market purchases, privately negotiated transactions or pursuant to any trading plan that might be adopted in accordance with Rule 10b5-1 of The Securities Exchange Act of 1934, as amended. The Company has no obligation to repurchase any shares under the Plan and may modify, suspend or discontinue the Plan at any time. We have not purchased any common stock pursuant to the Plan subsequent to September 30, 2025.

As of September 30, 2025, our total available contingent liquidity, net of current outstanding borrowings, was $2.77 billion, consisting of FHLB advances, Federal Reserve Discount Window and correspondent bank lines of credit.

Asset Quality

Nonperforming assets at September 30, 2025 were $35.6 million, or 0.42% of total assets, an increase of $2.7 million, or 8.2%, from $32.9 million at June 30, 2025, due primarily to an increase of $3.0 million in nonaccrual loans. The increase in nonaccrual loans compared to June 30, 2025 included a $1.9 million increase in commercial loans and a $1.1 million increase in commercial real estate loans. Nonperforming assets increased $28.0 million, or 365.1%, compared to $7.7 million, or 0.09% of total assets, at September 30, 2024, due primarily to an increase of $27.5 million in restructured loans. The increase in restructured loans was due to the extension of maturity in the first quarter of 2025 on a $27.5 million commercial real estate loan to allow for an extended lease up period.

The allowance for loan losses totaled $45.3 million, or 0.95% of total loans, at September 30, 2025, compared to $44.4 million, or 0.97% of total loans, at June 30, 2025. The allowance for loan losses was $44.3 million, or 0.97% of total loans, at September 30, 2024. The decrease in allowance as a percentage of total loans compared to September 30, 2024 was primarily due to an improved commercial real estate forecast in the CECL model.

For the three months ended September 30, 2025, we recorded a provision for credit losses for loans of $1.7 million, compared to $2.3 million and $0.7 million for the three months ended September 30, 2024 and June 30, 2025, respectively. Net charge-offs were $0.8 million for the three months ended September 30, 2025, compared to net charge-offs of $0.4 million and $0.9 million for the three months ended September 30, 2024 and June 30, 2025, respectively. Net charge-offs were $2.0 million for the nine months ended September 30, 2025, compared to net charge-offs of $1.0 million for the nine months ended September 30, 2024.

We recorded a reversal of provision for credit losses on off-balance-sheet credit exposures of $0.6 million for the three months ended September 30, 2025, compared to a provision for losses on off-balance-sheet credit exposures of $0.1 million and a reversal of provision of $19,000 for the three months ended September 30, 2024 and June 30, 2025, respectively. We recorded a provision for losses on off-balance-sheet credit exposures of $8,000 for the nine months ended September 30, 2025, compared to a reversal of provision for credit losses on off-balance-sheet credit exposures of $0.6 million for the nine months ended September 30, 2024. The balance of the allowance for off-balance-sheet credit exposures was $3.1 million and $3.3 million at September 30, 2025 and 2024, respectively, and is included in other liabilities.

Dividend

Southside Bancshares, Inc. declared a third quarter cash dividend of $0.36 per share on August 7, 2025, which was paid on September 4, 2025, to all shareholders of record as of August 21, 2025.

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(1) Refer to “Non-GAAP Financial Measures” below and to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for more information and for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.

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Conference Call

Southside's management team will host a conference call to discuss its third quarter ended September 30, 2025 financial results on Friday, October 24, 2025 at 11:00 a.m. CDT. The conference call can be accessed by webcast, for listen-only mode, on the company website, https://investors.southside.com, under Events.

Those interested in participating in the question and answer session, or others who prefer to call-in, can register at https://registrations.events/direct/Q4I3408089094 to receive the dial-in number and unique code to access the conference call seamlessly. While not required, it is recommended that those wishing to participate, register 10 minutes prior to the conference call to ensure a more efficient registration process.

For those unable to attend the live event, a webcast recording will be available on the company website, https://investors.southside.com, for at least 30 days, beginning approximately two hours following the conference call.

Non-GAAP Financial Measures

Our accounting and reporting policies conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP measures are used by management to supplement the evaluation of our performance. These include the following fully taxable-equivalent measures (“FTE”): (i) Net interest income (FTE), (ii) net interest margin (FTE), (iii) net interest spread (FTE), and (iv) efficiency ratio (FTE), which include the effects of taxable-equivalent adjustments using a federal income tax rate of 21% to increase tax-exempt interest income to a tax-equivalent basis. Interest income earned on certain assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments.

Net interest income (FTE), net interest margin (FTE) and net interest spread (FTE). Net interest income (FTE) is a non-GAAP measure that adjusts for the tax-favored status of net interest income from certain loans and investments and is not permitted under GAAP in the consolidated statements of income. We believe that this measure is the preferred industry measurement of net interest income and that it enhances comparability of net interest income arising from taxable and tax-exempt sources. The most directly comparable financial measure calculated in accordance with GAAP is our net interest income. Net interest margin (FTE) is the ratio of net interest income (FTE) to average earning assets. The most directly comparable financial measure calculated in accordance with GAAP is our net interest margin. Net interest spread (FTE) is the difference in the average yield on average earning assets on a tax-equivalent basis and the average rate paid on average interest bearing liabilities. The most directly comparable financial measure calculated in accordance with GAAP is our net interest spread.

Efficiency ratio (FTE).  The efficiency ratio (FTE) is a non-GAAP measure that provides a measure of productivity in the banking industry. This ratio is calculated to measure the cost of generating one dollar of revenue. The ratio is designed to reflect the percentage of one dollar which must be expended to generate that dollar of revenue. We calculate this ratio by dividing noninterest expense, excluding amortization expense on intangibles and certain nonrecurring expense by the sum of net interest income (FTE) and noninterest income, excluding net gain (loss) on sale of securities available for sale and certain nonrecurring impairments. The most directly comparable financial measure calculated in accordance with GAAP is our efficiency ratio.

These non-GAAP financial measures should not be considered alternatives to GAAP-basis financial statements and other bank holding companies may define or calculate these non-GAAP measures or similar measures differently. Whenever we present a non-GAAP financial measure in an SEC filing, we are also required to present the most directly comparable financial measure calculated and presented in accordance with GAAP and reconcile the differences between the non-GAAP financial measure and such comparable GAAP measure.

Management believes adjusting net interest income, net interest margin and net interest spread to a fully taxable-equivalent basis is a standard practice in the banking industry as these measures provide useful information to make peer comparisons. Tax-equivalent adjustments are reflected in the respective earning asset categories as listed in the “Average Balances with Average Yields and Rates” tables.

A reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.

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About Southside Bancshares, Inc.

Southside Bancshares, Inc. is a bank holding company with approximately $8.38 billion in assets as of September 30, 2025, that owns 100% of Southside Bank. Southside Bank currently has 53 branches in Texas and operates a network of 70 ATMs/ITMs.

To learn more about Southside Bancshares, Inc., please visit our investor relations website at https://investors.southside.com. Our investor relations site provides a detailed overview of our activities, financial information and historical stock price data. To receive email notification of company news, events and stock activity, please register on the website under Resources and Investor Email Alerts. Questions or comments may be directed to Lindsey Bailes at (903) 630-7965, or lindsey.bailes@southside.com.

Forward-Looking Statements

Certain statements of other than historical fact that are contained in this press release and in other written materials, documents and oral statements issued by or on behalf of the Company may be considered to be “forward-looking statements” within the meaning of and subject to the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. These statements may include words such as “expect,” “estimate,” “project,” “anticipate,” “appear,” “believe,” “could,” “should,” “may,” “might,” “will,” “would,” “seek,” “intend,” “probability,” “risk,” “goal,” “target,” “objective,” “plans,” “potential,” and similar expressions. Forward-looking statements are statements with respect to the Company’s beliefs, plans, expectations, objectives, goals, anticipations, assumptions, estimates, intentions and future performance and are subject to significant known and unknown risks and uncertainties, which could cause the Company's actual results to differ materially from the results discussed in the forward-looking statements. For example, trends in asset quality, capital, liquidity, the Company's ability to sell nonperforming assets, expense reductions, planned operational efficiencies and earnings from growth and certain market risk disclosures, including the impact of interest rates and our expectations regarding rate changes, tax reform, inflation, tariffs, the impacts related to or resulting from other economic factors are based upon information presently available to management and are dependent on choices about key model characteristics and assumptions and are subject to various limitations. By their nature, certain of the market risk disclosures are only estimates and could be materially different from what actually occurs in the future. Accordingly, our results could materially differ from those that have been estimated. The most significant factors that could cause future results to differ materially from those anticipated by our forward-looking statements include general economic conditions in our markets, including the ongoing impact of higher inflation levels, interest rate fluctuations, including the impact of changes in interest rates on our financial projections, models and guidance, as well as the effects of declines in the real estate market, tariffs or trade wars (including reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services), high unemployment and increasing insurance costs, as well as the financial stress to borrowers as a result of the foregoing, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations, and our ability to manage liquidity in a rapidly changing and unpredictable market.

Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, under “Part I - Item 1. Forward Looking Information” and “Part I - Item 1A. Risk Factors” and in the Company’s other filings with the Securities and Exchange Commission. The Company disclaims any obligation to update any factors or to announce publicly the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.

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Southside Bancshares, Inc.

Consolidated Financial Summary (Unaudited)

(Dollars in thousands)

			As of
			2025																		2024
			Sep 30,						Jun 30,						Mar 31,						Dec 31,						Sep 30,
ASSETS
Cash and due from banks			$	90,519					$	109,669					$	103,359					$	91,409					$	130,147
Interest earning deposits			365,263						260,357						293,364						281,945						333,825
Federal funds sold			11,130						20,069						34,248						52,807						22,325
Securities available for sale, at estimated fair value			1,292,431						1,457,124						1,457,939						1,533,894						1,408,437
Securities held to maturity, at net carrying value			1,263,401						1,272,906						1,278,330						1,279,234						1,288,403
Total securities			2,555,832						2,730,030						2,736,269						2,813,128						2,696,840
Federal Home Loan Bank stock, at cost			9,359						24,384						34,208						33,818						40,291
Loans held for sale			497						428						903						1,946						768
Loans			4,765,289						4,601,933						4,567,239						4,661,597						4,578,048
Less: Allowance for loan losses			(45,294)						(44,421)						(44,623)						(44,884)						(44,276)
Net loans			4,719,995						4,557,512						4,522,616						4,616,713						4,533,772
Premises & equipment, net			147,187						147,263						142,245						141,648						138,811
Goodwill			201,116						201,116						201,116						201,116						201,116
Other intangible assets, net			1,161						1,333						1,531						1,754						2,003
Bank owned life insurance			139,697						138,826						137,962						138,313						137,489
Other assets			141,404						148,979						135,479						142,851						124,876
Total assets			$	8,383,160					$	8,339,966					$	8,343,300					$	8,517,448					$	8,362,263
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest bearing deposits			$	1,411,764					$	1,368,453					$	1,379,641					$	1,357,152					$	1,377,022
Interest bearing deposits			5,549,823						5,263,511						5,211,210						5,297,096						5,058,680
Total deposits			6,961,587						6,631,964						6,590,851						6,654,248						6,435,702
Other borrowings and Federal Home Loan Bank borrowings			200,706						611,367						691,417						808,352						865,856
Subordinated notes, net of unamortized debt issuance costs			239,601						92,115						92,078						92,042						92,006
Trust preferred subordinated debentures, net of unamortized debt issuance costs			60,278						60,277						60,276						60,274						60,273
Other liabilities			86,138						137,043						92,055						90,590						103,172
Total liabilities			7,548,310						7,532,766						7,526,677						7,705,506						7,557,009
Shareholders' equity			834,850						807,200						816,623						811,942						805,254
Total liabilities and shareholders' equity			$	8,383,160					$	8,339,966					$	8,343,300					$	8,517,448					$	8,362,263

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Southside Bancshares, Inc.

Consolidated Financial Highlights (Unaudited)

(Dollars and shares in thousands, except per share data)

			Three Months Ended
			2025																		2024
			Sep 30,						Jun 30,						Mar 31,						Dec 31,						Sep 30,
Income Statement:
Total interest and dividend income			$	101,896					$	98,562					$	100,288					$	101,689					$	105,703
Total interest expense			46,178						44,296						46,436						47,982						50,239
Net interest income			55,718						54,266						53,852						53,707						55,464
Provision for (reversal of) credit losses			1,092						622						758						1,384						2,389
Net interest income after provision for (reversal of) credit losses			54,626						53,644						53,094						52,323						53,075
Noninterest income
Deposit services			6,069						6,125						5,829						6,084						6,199
Net gain (loss) on sale of securities available for sale			(24,395)						—						(554)						—						(1,929)
Gain (loss) on sale of loans			164						99						55						138						115
Trust fees			2,081						1,879						1,765						1,773						1,628
Bank owned life insurance			871						833						799						848						857
Brokerage services			1,172						1,219						1,120						1,054						1,068
Other			2,048						1,990						1,209						2,384						233
Total noninterest income (loss)			(11,990)						12,145						10,223						12,281						8,171
Noninterest expense
Salaries and employee benefits			22,803						22,272						22,382						22,960						22,233
Net occupancy			3,761						3,621						3,404						3,629						3,613
Advertising, travel & entertainment			907						950						924						884						734
ATM expense			444						405						378						378						412
Professional fees			1,451						1,401						1,520						1,645						1,206
Software and data processing			2,770						3,027						2,839						2,931						2,951
Communications			321						342						383						320						423
FDIC insurance			920						955						947						931						939
Amortization of intangibles			172						198						223						249						278
Other			3,985						6,086						4,089						4,232						3,543
Total noninterest expense			37,534						39,257						37,089						38,159						36,332
Income before income tax expense			5,102						26,532						26,228						26,445						24,914
Income tax expense			189						4,719						4,721						4,659						4,390
Net income			$	4,913					$	21,813					$	21,507					$	21,786					$	20,524
Common Share Data:
Weighted-average basic shares outstanding			30,067						30,234						30,390						30,343						30,286
Weighted-average diluted shares outstanding			30,135						30,308						30,483						30,459						30,370
Common shares outstanding end of period			30,066						30,082						30,410						30,379						30,308
Earnings per common share
Basic			$	0.16					$	0.72					$	0.71					$	0.72					$	0.68
Diluted			0.16						0.72						0.71						0.71						0.68
Book value per common share			27.77						26.83						26.85						26.73						26.57
Tangible book value per common share			21.04						20.10						20.19						20.05						19.87
Cash dividends paid per common share			0.36						0.36						0.36						0.36						0.36
Selected Performance Ratios:
Return on average assets			0.23		%				1.07		%				1.03		%				1.03		%				0.98		%
Return on average shareholders’ equity			2.40						10.73						10.57						10.54						10.13
Return on average tangible common equity (1)			3.28						14.38						14.14						14.12						13.69
Average yield on earning assets (FTE) (1)			5.27						5.25						5.23						5.24						5.51
Average rate on interest bearing liabilities			3.01						2.98						3.03						3.12						3.28
Net interest margin (FTE) (1)			2.94						2.95						2.86						2.83						2.95
Net interest spread (FTE) (1)			2.26						2.27						2.20						2.12						2.23
Average earning assets to average interest bearing liabilities			129.13						129.33						128.10						129.55						128.51
Noninterest expense to average total assets			1.78						1.92						1.78						1.80						1.73
Efficiency ratio (FTE) (1)			52.99						53.70						55.04						54.00						51.90

(1)Refer to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.

Page-7

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Southside Bancshares, Inc.

Consolidated Financial Highlights (Unaudited)

(Dollars in thousands)

			Three Months Ended
			2025																		2024
			Sep 30,						Jun 30,						Mar 31,						Dec 31,						Sep 30,
Nonperforming Assets:			$	35,608					$	32,909					$	32,193					$	3,589					$	7,656
Nonaccrual loans			7,955						4,998						4,254						3,185						7,254
Accruing loans past due more than 90 days			—						—						—						—						—
Restructured loans			27,501						27,512						27,505						2						—
Other real estate owned			128						380						388						388						388
Repossessed assets			24						19						46						14						14
Asset Quality Ratios:
Ratio of nonaccruing loans to:
Total loans			0.17		%				0.11		%				0.09		%				0.07		%				0.16		%
Ratio of nonperforming assets to:
Total assets			0.42						0.39						0.39						0.04						0.09
Total loans			0.75						0.72						0.70						0.08						0.17
Total loans and OREO			0.75						0.72						0.70						0.08						0.17
Ratio of allowance for loan losses to:
Nonaccruing loans			569.38						888.78						1,048.97						1,409.23						610.37
Nonperforming assets			127.20						134.98						138.61						1,250.60						578.32
Total loans			0.95						0.97						0.98						0.96						0.97
Net charge-offs (recoveries) to average loans outstanding			0.07						0.08						0.03						0.08						0.04
Capital Ratios:
Shareholders’ equity to total assets			9.96						9.68						9.79						9.53						9.63
Common equity tier 1 capital			12.97						13.36						13.44						13.04						13.07
Tier 1 risk-based capital			13.99						14.41						14.49						14.07						14.12
Total risk-based capital			19.01						16.91						17.01						16.49						16.59
Tier 1 leverage capital			9.78						10.03						9.73						9.67						9.61
Period end tangible equity to period end tangible assets (1)			7.73						7.43						7.54						7.33						7.38
Average shareholders’ equity to average total assets			9.72						9.94						9.75						9.76						9.67

(1)Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.

Page-8

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Southside Bancshares, Inc.

Consolidated Financial Highlights (Unaudited)

(Dollars in thousands)

			Three Months Ended
			2025																		2024
Loan Portfolio Composition			Sep 30,						Jun 30,						Mar 31,						Dec 31,						Sep 30,
Real Estate Loans:
Construction			$	519,528					$	470,380					$	458,101					$	537,827					$	585,817
1-4 Family Residential			730,061						736,108						741,432						740,396						755,406
Commercial			2,688,712						2,606,072						2,577,229						2,579,735						2,422,612
Commercial Loans			429,952						380,612						371,643						363,167						358,854
Municipal Loans			353,324						363,746						371,271						390,968						402,041
Loans to Individuals			43,712						45,015						47,563						49,504						53,318
Total Loans			$	4,765,289					$	4,601,933					$	4,567,239					$	4,661,597					$	4,578,048
Summary of Changes in Allowances:
Allowance for Securities Held to Maturity
Balance at beginning of period			$	55					$	64					$	—					$	—					$	—
Provision for (reversal of) securities held to maturity			—						(9)						64						—						—
Balance at end of period			$	55					$	55					$	64					$	—					$	—
Allowance for Loan Losses
Balance at beginning of period			$	44,421					$	44,623					$	44,884					$	44,276					$	42,407
Loans charged-off			(1,335)						(1,194)						(613)						(1,232)						(773)
Recoveries of loans charged-off			491						342						310						277						365
Net loans (charged-off) recovered			(844)						(852)						(303)						(955)						(408)
Provision for (reversal of) loan losses			1,717						650						42						1,563						2,277
Balance at end of period			$	45,294					$	44,421					$	44,623					$	44,884					$	44,276
Allowance for Off-Balance-Sheet Credit Exposures
Balance at beginning of period			$	3,774					$	3,793					$	3,141					$	3,320					$	3,208
Provision for (reversal of) off-balance-sheet credit exposures			(625)						(19)						652						(179)						112
Balance at end of period			$	3,149					$	3,774					$	3,793					$	3,141					$	3,320
Total Allowance for Credit Losses			$	48,498					$	48,250					$	48,480					$	48,025					$	47,596

Page-9

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Southside Bancshares, Inc.

Consolidated Financial Highlights (Unaudited)

(Dollars in thousands)

			Nine Months Ended
			September 30,
			2025						2024
Income Statement:
Total interest and dividend income			$	300,746					$	312,647
Total interest expense			136,910						150,227
Net interest income			163,836						162,420
Provision for (reversal of) credit losses			2,472						1,962
Net interest income after provision for (reversal of) credit losses			161,364						160,458
Noninterest income
Deposit services			18,023						18,341
Net gain (loss) on sale of securities available for sale			(24,949)						(2,510)
Gain (loss) on sale of loans			318						(101)
Trust fees			5,725						4,420
Bank owned life insurance			2,503						3,408
Brokerage services			3,511						3,163
Other			5,247						2,731
Total noninterest income (loss)			10,378						29,452
Noninterest expense
Salaries and employee benefits			67,457						67,330
Net occupancy			10,786						10,725
Advertising, travel & entertainment			2,781						2,479
ATM expense			1,227						1,105
Professional fees			4,372						3,435
Software and data processing			8,636						8,667
Communications			1,046						1,282
FDIC insurance			2,822						2,859
Amortization of intangibles			593						922
Other			14,160						10,174
Total noninterest expense			113,880						108,978
Income before income tax expense			57,862						80,932
Income tax expense			9,629						14,224
Net income			$	48,233					$	66,708
Common Share Data:
Weighted-average basic shares outstanding			30,229						30,276
Weighted-average diluted shares outstanding			30,316						30,332
Common shares outstanding end of period			30,066						30,308
Earnings per common share
Basic			$	1.59					$	2.20
Diluted			1.59						2.20
Book value per common share			27.77						26.57
Tangible book value per common share			21.04						19.87
Cash dividends paid per common share			1.08						1.08
Selected Performance Ratios:
Return on average assets			0.77		%				1.06		%
Return on average shareholders’ equity			7.89						11.19
Return on average tangible common equity (1)			10.59						15.20
Average yield on earning assets (FTE) (1)			5.25						5.45
Average rate on interest bearing liabilities			3.01						3.27
Net interest margin (FTE) (1)			2.92						2.90
Net interest spread (FTE) (1)			2.24						2.18
Average earning assets to average interest bearing liabilities			128.85						128.28
Noninterest expense to average total assets			1.83						1.74
Efficiency ratio (FTE) (1)			53.89						53.35

(1)Refer to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.

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Southside Bancshares, Inc.

Consolidated Financial Highlights (Unaudited)

(Dollars in thousands)

			Nine Months Ended
			September 30,
			2025						2024
Nonperforming Assets:			$	35,608					$	7,656
Nonaccrual loans			7,955						7,254
Accruing loans past due more than 90 days			—						—
Restructured loans			27,501						—
Other real estate owned			128						388
Repossessed assets			24						14
Asset Quality Ratios:
Ratio of nonaccruing loans to:
Total loans			0.17		%				0.16		%
Ratio of nonperforming assets to:
Total assets			0.42						0.09
Total loans			0.75						0.17
Total loans and OREO			0.75						0.17
Ratio of allowance for loan losses to:
Nonaccruing loans			569.38						610.37
Nonperforming assets			127.20						578.32
Total loans			0.95						0.97
Net charge-offs (recoveries) to average loans outstanding			0.06						0.03
Capital Ratios:
Shareholders’ equity to total assets			9.96						9.63
Common equity tier 1 capital			12.97						13.07
Tier 1 risk-based capital			13.99						14.12
Total risk-based capital			19.01						16.59
Tier 1 leverage capital			9.78						9.61
Period end tangible equity to period end tangible assets (1)			7.73						7.38
Average shareholders’ equity to average total assets			9.80						9.51

(1) Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.

Page-11

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Southside Bancshares, Inc.

Consolidated Financial Highlights (Unaudited)

(Dollars in thousands)

			Nine Months Ended
			September 30,
Loan Portfolio Composition			2025						2024
Real Estate Loans:
Construction			$	519,528					$	585,817
1-4 Family Residential			730,061						755,406
Commercial			2,688,712						2,422,612
Commercial Loans			429,952						358,854
Municipal Loans			353,324						402,041
Loans to Individuals			43,712						53,318
Total Loans			$	4,765,289					$	4,578,048
Summary of Changes in Allowances:
Allowance for Securities Held to Maturity
Balance at beginning of period			$	—					$	—
Provision for (reversal of) securities held to maturity			55						—
Balance at end of period			$	55					$	—
Summary of Changes in Allowances:
Allowance for Loan Losses
Balance at beginning of period			$	44,884					$	42,674
Loans charged-off			(3,142)						(2,128)
Recoveries of loans charged-off			1,143						1,156
Net loans (charged-off) recovered			(1,999)						(972)
Provision for (reversal of) loan losses			2,409						2,574
Balance at end of period			$	45,294					$	44,276
Allowance for Off-Balance-Sheet Credit Exposures
Balance at beginning of period			$	3,141					$	3,932
Provision for (reversal of) off-balance-sheet credit exposures			8						(612)
Balance at end of period			$	3,149					$	3,320
Total Allowance for Credit Losses			$	48,498					$	47,596

Page-12

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Southside Bancshares, Inc.

Average Balances and Average Yields and Rates (Annualized) (Unaudited)

(Dollars in thousands)

The tables that follow show average earning assets and interest bearing liabilities together with the average yield on the earning assets and the average rate of the interest bearing liabilities for the periods presented. The interest and related yields presented are on a fully taxable-equivalent basis and are therefore non-GAAP measures. See “Non-GAAP Financial Measures” and “Non-GAAP Reconciliation” for more information.

			Three Months Ended
			September 30, 2025																		June 30, 2025
			Average Balance						Interest						Average Yield/Rate (3)						Average Balance						Interest						Average Yield/Rate (3)
ASSETS
Loans (1)			$	4,640,220					$	70,240					6.01		%				$	4,519,668					$	67,798					6.02		%
Loans held for sale			776						12						6.14		%				1,108						16						5.79		%
Securities:
Taxable investment securities (2)			669,712						5,578						3.30		%				735,669						6,205						3.38		%
Tax-exempt investment securities (2)			1,094,978						10,097						3.66		%				1,130,903						10,351						3.67		%
Mortgage-backed and related securities (2)			1,058,860						14,174						5.31		%				1,003,887						13,040						5.21		%
Total securities			2,823,550						29,849						4.19		%				2,870,459						29,596						4.14		%
Federal Home Loan Bank stock, at cost, and equity investments			37,937						374						3.91		%				31,169						524						6.74		%
Interest earning deposits			334,523						3,631						4.31		%				259,617						2,753						4.25		%
Federal funds sold			17,546						195						4.41		%				27,778						308						4.45		%
Total earning assets			7,854,552						104,301						5.27		%				7,709,799						100,995						5.25		%
Cash and due from banks			87,815																		84,419
Accrued interest and other assets			455,884																		452,573
Less:  Allowance for loan losses			(44,476)																		(44,747)
Total assets			$	8,353,775																	$	8,202,044
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts			$	618,059					1,772						1.14		%				$	596,125					1,451						0.98		%
Certificates of deposit			1,505,292						15,752						4.15		%				1,407,017						14,905						4.25		%
Interest bearing demand accounts			3,320,993						21,234						2.54		%				3,311,330						21,071						2.55		%
Total interest bearing deposits			5,444,344						38,758						2.82		%				5,314,472						37,427						2.82		%
Federal Home Loan Bank borrowings			298,138						2,847						3.79		%				394,119						3,721						3.79		%
Subordinated notes, net of unamortized debt issuance costs			169,196						2,319						5.44		%				92,097						935						4.07		%
Trust preferred subordinated debentures, net of unamortized debt issuance costs			60,277						1,025						6.75		%				60,276						1,015						6.75		%
Repurchase agreements			75,207						662						3.49		%				72,295						634						3.52		%
Other borrowings			35,544						567						6.33		%				28,022						564						8.07		%
Total interest bearing liabilities			6,082,706						46,178						3.01		%				5,961,281						44,296						2.98		%
Noninterest bearing deposits			1,375,075																		1,339,463
Accrued expenses and other liabilities			83,601																		85,827
Total liabilities			7,541,382																		7,386,571
Shareholders’ equity			812,393																		815,473
Total liabilities and shareholders’ equity			$	8,353,775																	$	8,202,044
Net interest income (FTE)									$	58,123																	$	56,699
Net interest margin (FTE)															2.94		%																2.95		%
Net interest spread (FTE)															2.26		%																2.27		%

(1)Interest on loans includes net fees on loans that are not material in amount.

(2)For the purpose of calculating the average yield, the average balance of securities do not include unrealized gains and losses on AFS securities.

(3)Yield/rate includes the impact of applicable derivatives.

Note: As of September 30, 2025 and June 30, 2025, loans totaling $8.0 million and $5.0 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.

Page-13

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Southside Bancshares, Inc.

Average Balances and Average Yields and Rates (Annualized) (Unaudited)

(Dollars in thousands)

			Three Months Ended
			March 31, 2025																		December 31, 2024
			Average Balance						Interest						Average Yield/Rate (3)						Average Balance						Interest						Average Yield/Rate (3)
ASSETS
Loans (1)			$	4,625,902					$	68,160					5.98		%				$	4,604,175					$	70,155					6.06		%
Loans held for sale			752						11						5.93		%				1,562						23						5.86		%
Securities:
Taxable investment securities (2)			749,155						6,363						3.44		%				784,321						6,949						3.52		%
Tax-exempt investment securities (2)			1,134,590						10,253						3.66		%				1,138,271						10,793						3.77		%
Mortgage-backed and related securities (2)			1,041,038						13,523						5.27		%				1,031,187						12,043						4.65		%
Total securities			2,924,783						30,139						4.18		%				2,953,779						29,785						4.01		%
Federal Home Loan Bank stock, at cost, and equity investments			43,285						483						4.53		%				37,078						591						6.34		%
Interest earning deposits			319,889						3,370						4.27		%				273,656						3,160						4.59		%
Federal funds sold			43,813						478						4.42		%				43,121						508						4.69		%
Total earning assets			7,958,424						102,641						5.23		%				7,913,371						104,222						5.24		%
Cash and due from banks			89,703																		102,914
Accrued interest and other assets			457,948																		454,387
Less:  Allowance for loan losses			(45,105)																		(44,418)
Total assets			$	8,460,970																	$	8,426,254
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts			$	593,953					1,429						0.98		%				$	594,196					1,456						0.97		%
Certificates of deposit			1,336,815						14,406						4.37		%				1,187,800						13,537						4.53		%
Interest bearing demand accounts			3,406,342						21,412						2.55		%				3,459,122						23,468						2.70		%
Total interest bearing deposits			5,337,110						37,247						2.83		%				5,241,118						38,461						2.92		%
Federal Home Loan Bank borrowings			614,897						5,837						3.85		%				572,993						5,557						3.86		%
Subordinated notes, net of unamortized debt issuance costs			92,060						932						4.11		%				92,024						945						4.09		%
Trust preferred subordinated debentures, net of unamortized debt issuance costs			60,275						1,014						6.82		%				60,274						1,095						7.23		%
Repurchase agreements			75,291						666						3.59		%				80,891						782						3.85		%
Other borrowings			33,061						740						9.08		%				61,196						1,142						7.42		%
Total interest bearing liabilities			6,212,694						46,436						3.03		%				6,108,496						47,982						3.12		%
Noninterest bearing deposits			1,334,933																		1,383,204
Accrued expenses and other liabilities			88,450																		112,320
Total liabilities			7,636,077																		7,604,020
Shareholders’ equity			824,893																		822,234
Total liabilities and shareholders’ equity			$	8,460,970																	$	8,426,254
Net interest income (FTE)									$	56,205																	$	56,240
Net interest margin (FTE)															2.86		%																2.83		%
Net interest spread (FTE)															2.20		%																2.12		%

(1)Interest on loans includes net fees on loans that are not material in amount.

(2)For the purpose of calculating the average yield, the average balance of securities do not include unrealized gains and losses on AFS securities.

(3)Yield/rate includes the impact of applicable derivatives.

Note: As of March 31, 2025 and December 31, 2024, loans totaling $4.3 million and $3.2 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.

Page-14

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Southside Bancshares, Inc.

Average Balances and Average Yields and Rates (Annualized) (Unaudited)

(Dollars in thousands)

			Three Months Ended
			September 30, 2024
			Average Balance						Interest						Average Yield/Rate (3)
ASSETS
Loans (1)			$	4,613,028					$	72,493					6.25		%
Loans held for sale			871						11						5.02		%
Securities:
Taxable investment securities (2)			791,914						7,150						3.59		%
Tax-exempt investment securities (2)			1,174,445						11,825						4.01		%
Mortgage-backed and related securities (2)			886,325						11,976						5.38		%
Total securities			2,852,684						30,951						4.32		%
Federal Home Loan Bank stock, at cost, and equity investments			41,159						582						5.63		%
Interest earning deposits			281,313						3,798						5.37		%
Federal funds sold			33,971						488						5.71		%
Total earning assets			7,823,026						108,323						5.51		%
Cash and due from banks			100,578
Accrued interest and other assets			455,091
Less:  Allowance for loan losses			(42,581)
Total assets			$	8,336,114
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts			$	598,116					1,490						0.99		%
Certificates of deposit			1,087,613						12,647						4.63		%
Interest bearing demand accounts			3,409,911						24,395						2.85		%
Total interest bearing deposits			5,095,640						38,532						3.01		%
Federal Home Loan Bank borrowings			618,708						6,488						4.17		%
Subordinated notes, net of unamortized debt issuance costs			91,988						937						4.05		%
Trust preferred subordinated debentures, net of unamortized debt issuance costs			60,273						1,180						7.79		%
Repurchase agreements			83,297						899						4.29		%
Other borrowings			137,482						2,203						6.37		%
Total interest bearing liabilities			6,087,388						50,239						3.28		%
Noninterest bearing deposits			1,344,165
Accrued expenses and other liabilities			98,331
Total liabilities			7,529,884
Shareholders’ equity			806,230
Total liabilities and shareholders’ equity			$	8,336,114
Net interest income (FTE)									$	58,084
Net interest margin (FTE)															2.95		%
Net interest spread (FTE)															2.23		%

(1)Interest on loans includes net fees on loans that are not material in amount.

(2)For the purpose of calculating the average yield, the average balance of securities do not include unrealized gains and losses on AFS securities.

(3)Yield/rate includes the impact of applicable derivatives.

Note: As of September 30, 2024, loans totaling $7.3 million were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.

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Southside Bancshares, Inc.

Average Balances and Average Yields and Rates (Annualized) (Unaudited)

(Dollars in thousands)

			Nine Months Ended
			September 30, 2025																		September 30, 2024
			Average Balance						Interest						Average Yield/Rate						Average Balance						Interest						Average Yield/Rate
ASSETS
Loans (1)			$	4,595,316					$	206,198					6.00		%				$	4,589,621					$	211,635					6.16		%
Loans held for sale			879						39						5.93		%				3,721						53						1.90		%
Securities:
Taxable investment securities (2)			717,887						18,146						3.38		%				785,422						21,126						3.59		%
Tax-exempt investment securities (2)			1,120,012						30,701						3.66		%				1,237,884						37,754						4.07		%
Mortgage-backed and related securities (2)			1,034,660						40,737						5.26		%				827,396						33,179						5.36		%
Total securities			2,872,559						89,584						4.17		%				2,850,702						92,059						4.31		%
Federal Home Loan Bank stock, at cost, and equity investments			37,444						1,381						4.93		%				40,565						1,488						4.90		%
Interest earning deposits			304,730						9,754						4.28		%				320,371						13,105						5.46		%
Federal funds sold			29,616						981						4.43		%				57,265						2,347						5.47		%
Total earning assets			7,840,544						307,937						5.25		%				7,862,245						320,687						5.45		%
Cash and due from banks			87,305																		108,325
Accrued interest and other assets			455,402																		440,340
Less:  Allowance for loan losses			(44,774)																		(43,096)
Total assets			$	8,338,477																	$	8,367,814
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts			$	602,800					4,652						1.03		%				$	602,450					4,368						0.97		%
Certificates of deposit			1,416,992						45,063						4.25		%				1,016,812						34,618						4.55		%
Interest bearing demand accounts			3,345,909						63,717						2.55		%				3,518,906						76,210						2.89		%
Total interest bearing deposits			5,365,701						113,432						2.83		%				5,138,168						115,196						2.99		%
Federal Home Loan Bank borrowings			434,558						12,405						3.82		%				610,893						18,893						4.13		%
Subordinated notes, net of unamortized debt issuance costs			118,067						4,186						4.74		%				92,631						2,829						4.08		%
Trust preferred subordinated debentures, net of unamortized debt issuance costs			60,276						3,054						6.77		%				60,271						3,526						7.81		%
Repurchase agreements			74,264						1,962						3.53		%				87,811						2,821						4.29		%
Other borrowings			32,218						1,871						7.76		%				139,306						6,962						6.68		%
Total interest bearing liabilities			6,085,084						136,910						3.01		%				6,129,080						150,227						3.27		%
Noninterest bearing deposits			1,349,971																		1,342,945
Accrued expenses and other liabilities			85,882																		99,758
Total liabilities			7,520,937																		7,571,783
Shareholders’ equity			817,540																		796,031
Total liabilities and shareholders’ equity			$	8,338,477																	$	8,367,814
Net interest income (FTE)									$	171,027																	$	170,460
Net interest margin (FTE)															2.92		%																2.90		%
Net interest spread (FTE)															2.24		%																2.18		%

(1)Interest on loans includes net fees on loans that are not material in amount.

(2)For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.

Note: As of September 30, 2025 and 2024, loans totaling $8.0 million and $7.3 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.

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Southside Bancshares, Inc.

Non-GAAP Reconciliation (Unaudited)

(Dollars and shares in thousands, except per share data)

The following tables set forth the reconciliation of return on average common equity to return on average tangible common equity, book value per share to tangible book value per share, net interest income to net interest income adjusted to a fully taxable-equivalent basis assuming a 21% marginal tax rate for interest earned on tax-exempt assets such as municipal loans and investment securities, along with the calculation of total revenue, adjusted noninterest expense, efficiency ratio (FTE), net interest margin (FTE) and net interest spread (FTE) for the applicable periods presented.

						Three Months Ended																														Nine Months Ended
						2025																		2024												2025						2024
						Sep 30,						Jun 30,						Mar 31,						Dec 31,						Sep 30,						Sep 30,						Sep 30,
Reconciliation of return on average common equity to return on average tangible common equity:
Net income						$	4,913					$	21,813					$	21,507					$	21,786					$	20,524					$	48,233					$	66,708
After-tax amortization expense						136						157						176						196						220						469						728
Adjusted net income available to common shareholders						$	5,049					$	21,970					$	21,683					$	21,982					$	20,744					$	48,702					$	67,436
Average shareholders' equity						$	812,393					$	815,473					$	824,893					$	822,234					$	806,230					$	817,540					$	796,031
Less: Average intangibles for the period						(202,380)						(202,569)						(202,784)						(203,020)						(203,288)						(202,576)						(203,592)
Average tangible shareholders' equity						$	610,013					$	612,904					$	622,109					$	619,214					$	602,942					$	614,964					$	592,439
Return on average tangible common equity						3.28		%				14.38		%				14.14		%				14.12		%				13.69		%				10.59		%				15.20		%
Reconciliation of book value per share to tangible book value per share:
Common equity at end of period						$	834,850					$	807,200					$	816,623					$	811,942					$	805,254					$	834,850					$	805,254
Less: Intangible assets at end of period						(202,277)						(202,449)						(202,647)						(202,870)						(203,119)						(202,277)						(203,119)
Tangible common shareholders' equity at end of period						$	632,573					$	604,751					$	613,976					$	609,072					$	602,135					$	632,573					$	602,135
Total assets at end of period						$	8,383,160					$	8,339,966					$	8,343,300					$	8,517,448					$	8,362,263					$	8,383,160					$	8,362,263
Less: Intangible assets at end of period						(202,277)						(202,449)						(202,647)						(202,870)						(203,119)						(202,277)						(203,119)
Tangible assets at end of period						$	8,180,883					$	8,137,517					$	8,140,653					$	8,314,578					$	8,159,144					$	8,180,883					$	8,159,144
Period end tangible equity to period end tangible assets						7.73		%				7.43		%				7.54		%				7.33		%				7.38		%				7.73		%				7.38		%
Common shares outstanding end of period						30,066						30,082						30,410						30,379						30,308						30,066						30,308
Tangible book value per common share						$	21.04					$	20.10					$	20.19					$	20.05					$	19.87					$	21.04					$	19.87
Reconciliation of efficiency ratio to efficiency ratio (FTE), net interest margin to net interest margin (FTE) and net interest spread to net interest spread (FTE):
Net interest income (GAAP)						$	55,718					$	54,266					$	53,852					$	53,707					$	55,464					$	163,836					$	162,420
Tax-equivalent adjustments:
Loans						553						565						581						598						608						1,699						1,897
Tax-exempt investment securities						1,852						1,868						1,772						1,935						2,012						5,492						6,143
Net interest income (FTE) (1)						58,123						56,699						56,205						56,240						58,084						171,027						170,460
Noninterest income						(11,990)						12,145						10,223						12,281						8,171						10,378						29,452
Nonrecurring income (2)						24,395						—						554						(25)						2,797						24,949						2,239
Total revenue						$	70,528					$	68,844					$	66,982					$	68,496					$	69,052					$	206,354					$	202,151
Noninterest expense						$	37,534					$	39,257					$	37,089					$	38,159					$	36,332					$	113,880					$	108,978
Pre-tax amortization expense						(172)						(198)						(223)						(249)						(278)						(593)						(922)
Nonrecurring expense (3)						14						(2,090)						(1)						(919)						(219)						(2,077)						(200)
Adjusted noninterest expense						$	37,376					$	36,969					$	36,865					$	36,991					$	35,835					$	111,210					$	107,856
Efficiency ratio						54.87		%				55.67		%				57.04		%				56.08		%				53.94		%				55.84		%				55.56		%
Efficiency ratio (FTE) (1)						52.99		%				53.70		%				55.04		%				54.00		%				51.90		%				53.89		%				53.35		%
Average earning assets						$	7,854,552					$	7,709,799					$	7,958,424					$	7,913,371					$	7,823,026					$	7,840,544					$	7,862,245
Net interest margin						2.81		%				2.82		%				2.74		%				2.70		%				2.82		%				2.79		%				2.76		%
Net interest margin (FTE) (1)						2.94		%				2.95		%				2.86		%				2.83		%				2.95		%				2.92		%				2.90		%
Net interest spread						2.14		%				2.15		%				2.08		%				1.99		%				2.10		%				2.12		%				2.04		%
Net interest spread (FTE) (1)						2.26		%				2.27		%				2.20		%				2.12		%				2.23		%				2.24		%				2.18		%

(1)These amounts are presented on a fully taxable-equivalent basis and are non-GAAP measures.

(2)These adjustments may include net gain or loss on sale of securities available for sale, BOLI income related to death benefits realized and other investment income or loss in the periods where applicable.

(3)These adjustments may include foreclosure expenses, branch closure expenses and other miscellaneous expense, in the periods where applicable.

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