EXHIBIT 99.1

•Second quarter net income of $24.7 million;

•Second quarter earnings per diluted common share of $0.81;

•Annualized return on second quarter average assets of 1.19%;

•Annualized return on second quarter average tangible common equity of 16.90%(1); and

•Nonperforming assets remain low at 0.08% of total assets.

Tyler, Texas (July 25, 2024) Southside Bancshares, Inc. (“Southside” or the “Company”) (NASDAQ: SBSI) today reported its financial results for the quarter ended June 30, 2024. Southside reported net income of $24.7 million for the three months ended June 30, 2024, a decrease of $0.2 million, or 0.9%, compared to $24.9 million for the same period in 2023. Earnings per diluted common share remained the same at $0.81 for both of the three-month periods ended June 30, 2024 and 2023. The annualized return on average shareholders’ equity for the three months ended June 30, 2024, was 12.46%, compared to 13.32% for the same period in 2023.  The annualized return on average assets was 1.19% for the three months ended June 30, 2024, compared to 1.29% for the same period in 2023.

“We reported excellent financial results for the second quarter highlighted by earnings per share of $0.81, a return on assets of 1.19%, a 16.90% return on average tangible equity(1), and continued strong asset quality,” stated Lee R. Gibson, Chief Executive Officer of Southside. “Linked quarter net interest income increased $260,000 and the net interest margin(1) increased one basis point to 2.87%. Noninterest expense, linked quarter decreased $1.1 million due to a $1.1 million decrease in salaries and employee benefits, $618,000 of which was due to a first quarter cost reduction initiative.”

Operating Results for the Three Months Ended June 30, 2024

Net income was $24.7 million for the three months ended June 30, 2024, compared to $24.9 million for the same period in 2023, a decrease of $0.2 million, or 0.9%. Earnings per diluted common share were $0.81 for both of the three-month periods ended June 30, 2024 and 2023. The decrease in net income was a result of increases in noninterest expense and income tax expense and the decrease in net interest income, partially offset by the increase in noninterest income and the decrease in provision for credit losses. Annualized returns on average assets and average shareholders’ equity for the three months ended June 30, 2024 were 1.19% and 12.46%, respectively, compared to 1.29% and 13.32%, respectively, for the three months ended June 30, 2023.  Our efficiency ratio and tax-equivalent efficiency ratio(1) were 54.90% and 52.71%, respectively, for the three months ended June 30, 2024, compared to 53.54% and 51.06%, respectively, for the three months ended June 30, 2023, and 57.95% and 55.54%, respectively, for the three months ended March 31, 2024.

Net interest income for the three months ended June 30, 2024 was $53.6 million, a decrease of $0.3 million, or 0.6%, from the same period in 2023. The decrease in net interest income was largely due to increases in the average rate paid on our interest bearing liabilities and average balance of our interest bearing liabilities, partially offset by the increase in the average balance of interest earning assets and the increase in the average yield of interest earning assets. Linked quarter, net interest income increased $0.3 million, or 0.5%, compared to $53.3 million during the three months ended March 31, 2024, largely due to the increase in the average yield on our interest earning assets and the decrease in the average balance of interest bearing liabilities, partially offset by the average rate paid on our interest bearing liabilities.

Our net interest margin and tax-equivalent net interest margin(1) decreased to 2.74% and 2.87%, respectively, for the three months ended June 30, 2024, compared to 2.99% and 3.17%, respectively, for the same period in 2023. Linked quarter, net interest margin and tax-equivalent net interest margin(1) increased from 2.72% and 2.86%, respectively for the three months ended March 31, 2024.

Noninterest income was $11.6 million for the three months ended June 30, 2024, an increase of $1.1 million, or 10.4%, compared to $10.5 million for the same period in 2023. The increase was primarily due to a decrease in net loss on sale of securities available for sale (“AFS”) and an increase in bank owned life insurance (“BOLI”) income due to a death benefit realized in 2024, partially offset by a $2.6 million net gain on sale of equity securities during the three months ended June 30, 2023. On a linked quarter basis, noninterest income increased $1.8 million, or 18.9%, compared to the three months ended March 31, 2024. The increase was primarily due to an increase in BOLI income related to a $1.0 million death benefit realized in the second quarter of 2024, and increases in gain on sale of loans and other noninterest income, partially offset by an increase in net loss on sale of securities AFS for the three months ended June 30, 2024.

Noninterest expense increased $0.8 million, or 2.2%, to $35.8 million for the three months ended June 30, 2024, compared to $35.0 million for the same period in 2023, due to increases in salaries and employee benefits and software and data processing expense, partially offset by decreases in FDIC insurance, amortization of intangibles and professional fees. On a linked quarter basis, noninterest expense decreased by $1.1 million, or 3.0%, compared to the three months ended March 31, 2024, due to a decrease in salaries and employee benefits expense.

Income tax expense increased $0.6 million, or 14.1%, for the three months ended June 30, 2024, compared to the same period in 2023. On a linked quarter basis, income tax expense increased $0.6 million, or 12.8%. Our effective tax rate (“ETR”) increased to 17.4% for the three months ended June 30, 2024, compared to 15.5% for the three months ended June 30, 2023, and decreased slightly from 17.7% for the three months ended March 31, 2024. The higher ETR for the three months ended June 30, 2024 compared to the same period in 2023, was primarily due to a decrease in tax-exempt income as a percentage of pre-tax income.

Operating Results for the Six Months Ended June 30, 2024

Net income was $46.2 million for the six months ended June 30, 2024, compared to $50.9 million for the same period in 2023, a decrease of $4.7 million, or 9.3%. Earnings per diluted common share were $1.52 for the six months ended June 30, 2024, compared to $1.64 for the same period in 2023, a decrease of 7.3%. The decrease in net income was primarily a result of the increase in noninterest expense, the decrease in noninterest income and the increase in income tax expense. Returns on average assets and average shareholders’ equity for the six months ended June 30, 2024 were 1.11% and 11.74%, respectively, compared to 1.34% and 13.62%, respectively, for the six months ended June 30, 2023.  Our efficiency ratio and tax-equivalent efficiency ratio(1) were 56.41% and 54.11%, respectively, for the six months ended June 30, 2024, compared to 53.55% and 51.02%, respectively, for the six months ended June 30, 2023.

Net interest income was $107.0 million for the six months ended June 30, 2024, compared to $107.3 million for the same period in 2023, a decrease of $0.3 million, or 0.3%, due to increases in the average rate paid on our interest bearing liabilities and average balance of our interest bearing liabilities, partially offset by the increase in the average balance of interest earning assets and the increase in the average yield of interest earning assets.

Our net interest margin and tax-equivalent net interest margin(1) were 2.73% and 2.87%, respectively, for the six months ended June 30, 2024, compared to 3.01% and 3.19%, respectively, for the same period in 2023.

Noninterest income was $21.3 million for the six months ended June 30, 2024, a decrease of $1.2 million, or 5.4%, compared to $22.5 million for the same period in 2023. The decrease was primarily due to decreases in the net gain on sale of equity securities, deposit services income and other noninterest income, partially offset by a decrease in net loss on sale of securities AFS.

Noninterest expense was $72.6 million for the six months ended June 30, 2024, compared to $69.8 million for the same period in 2023, an increase of $2.8 million, or 4.0%. The increase was primarily due to increases in salaries and employee benefits and software and data processing expense, partially offset by decreases in professional fees and net occupancy expense.

Income tax expense increased $0.7 million, or 7.9%, for the six months ended June 30, 2024, compared to the same period in 2023. Our ETR was approximately 17.6% and 15.2% for the six months ended June 30, 2024 and 2023, respectively. The higher ETR for the six months ended June 30, 2024, as compared to the same period in 2023, was primarily due to a decrease in tax-exempt income as a percentage of pre-tax income.

Balance Sheet Data

At June 30, 2024, Southside had $8.36 billion in total assets, compared to $8.28 billion at December 31, 2023 and $7.81 billion at June 30, 2023.

Loans at June 30, 2024 were $4.59 billion, an increase of $260.3 million, or 6.0%, compared to $4.33 billion at June 30, 2023. Linked quarter, loans increased $12.0 million, or 0.3%, due to increases of $59.4 million in commercial real estate loans, $17.5 million in 1-4 family residential loans and $1.8 million in commercial loans. These increases were partially offset by decreases of $53.4 million in construction loans, $10.2 million in municipal loans and $3.0 million in loans to individuals.

Securities at June 30, 2024 were $2.71 billion, an increase of $63.6 million, or 2.4%, compared to $2.65 billion at June 30, 2023. Linked quarter, securities remained the same at $2.71 billion at March 31, 2024.

Deposits at June 30, 2024 were $6.50 billion, an increase of $378.2 million, or 6.2%, compared to $6.12 billion at June 30, 2023, primarily due to an increase in public fund deposits of $306.8 million, or 38.3%. Linked quarter, deposits decreased $49.8 million, or 0.8%, from $6.55 billion at March 31, 2024.

At June 30, 2024, we had 179,536 total deposit accounts with an average balance of $32,000. Our estimated uninsured deposits were 36.4% as of June 30, 2024. When excluding affiliate deposits (Southside-owned deposits) and public fund deposits (all collateralized), our total estimated deposits without insurance or collateral was 19.4% as of June 30, 2024.

Our noninterest bearing deposits represent approximately 21.0% of total deposits. Linked quarter, our cost of interest bearing deposits increased 4 basis points from 2.97% in the prior quarter to 3.01%. Linked quarter, our cost of total deposits increased 3 basis points from 2.36% in the prior quarter to 2.39%.

Our cost of interest bearing deposits increased 107 basis points, from 1.92% for the six months ended June 30, 2023, to 2.99% for the six months ended June 30, 2024. Our cost of total deposits increased 95 basis points, from 1.42% for the six months ended June 30, 2023, to 2.37% for the six months ended June 30, 2024.

Capital Resources and Liquidity

Our capital ratios and contingent liquidity sources remain solid. During the second quarter ended June 30, 2024, we purchased 57,966 shares of the Company’s common stock at an average price of $26.22 authorized pursuant to our Stock Repurchase Plan. Under this plan, 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 Stock Repurchase Plan and may modify, suspend or discontinue the plan at any time. We have not purchased any common stock pursuant to the Stock Repurchase Plan subsequent to June 30, 2024.

As of June 30, 2024, our total available contingent liquidity, net of current outstanding borrowings, was $2.24 billion, consisting of FHLB advances, Federal Reserve Discount Window and correspondent bank lines of credit.

Asset Quality

Nonperforming assets at June 30, 2024 were $6.9 million, or 0.08% of total assets, an increase of $3.9 million, or 126.2%, compared to $3.1 million, or 0.04% of total assets, at June 30, 2023. Linked quarter, nonperforming assets decreased $1.1 million, from $8.0 million at March 31, 2024 due primarily to a decrease of $1.6 million, or 20.7%, in nonaccrual loans, partially offset by an increase in other real estate owned of $0.5 million, or 444.5%.

The allowance for loan losses totaled $42.4 million, or 0.92% of total loans, at June 30, 2024, compared to $43.6 million, or 0.95% of total loans, at March 31, 2024. The allowance for loan losses was $36.3 million, or 0.84% of total loans, at June 30, 2023.

For the three months ended June 30, 2024, we recorded a reversal of provision for credit losses for loans of $0.9 million, compared to provisions of $0.3 million and $1.2 million for the three months ended June 30, 2023 and March 31, 2024, respectively. Net charge-offs were $0.3 million for the three months ended June 30, 2024, June 30, 2023 and March 31, 2024. Net charge-offs were $0.6 million for the six months ended June 30, 2024 and 2023.

We recorded a provision for credit losses on off-balance-sheet credit exposures of $0.4 million for the three months ended June 30, 2024, compared to a reversal of provision for credit losses on off-balance-sheet credit exposures of $0.4 million and $1.1 million for the three months ended June 30, 2023 and March 31, 2024, respectively. We recorded a reversal of provision for credit losses for off-balance-sheet credit exposures of $0.7 million and $0.5 million for the six months ended June 30, 2024 and 2023, respectively. The balance of the allowance for off-balance-sheet credit exposures was $3.2 million at June 30, 2024 and 2023, and is included in other liabilities.

Dividend

Southside Bancshares, Inc. declared a second quarter cash dividend of $0.36 per share on May 9, 2024, which was paid on June 6, 2024, to all shareholders of record as of May 23, 2024.

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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.

Conference Call

Southside's management team will host a conference call to discuss its second quarter ended June 30, 2024 financial results on Thursday, July 25, 2024 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://register.vevent.com/register/BI75b7c880842b4a5586bfc4c325374418 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 this measure to be 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.

About Southside Bancshares, Inc.

Southside Bancshares, Inc. is a bank holding company with approximately $8.36 billion in assets as of June 30, 2024, that owns 100% of Southside Bank.  Southside Bank currently has 54 branches in Texas and operates a network of 73 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 Julie Shamburger at (903) 531-7134, or julie.shamburger@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, discussions of the effect of our expansion, benefits of the Share Repurchase Plan, 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 increases, tax reform, inflation, 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 factor that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of higher inflation levels, prolonged elevated interest rates and general economic and recessionary concerns, 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, our ability to manage liquidity in a rapidly changing and unpredictable market, labor shortages and changes in interest rates by the Federal Reserve.

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, 2023, 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.

(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.

(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.

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.

(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 June 30, 2024 and March 31, 2024, loans totaling $6.1 million and $7.7 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.

(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 December 31, 2023 and September 30, 2023, loans totaling $3.9 million and $4.3 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.

(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 June 30, 2023, loans totaling $3.0 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.

(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 June 30, 2024 and 2023, loans totaling $6.1 million and $3.0 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.

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.

(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, net gain on sale of equity securities, 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 and branch closure expenses, in the periods where applicable.