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0000705432false00007054322025-01-292025-01-29

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 FORM 8-K 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

January 29, 2025
Date of Report (Date of earliest event reported)

Southside Bancshares, Inc.
(Exact Name of Registrant as Specified in its Charter)
Texas 000-12247 75-1848732
(State or Other Jurisdiction of Incorporation) (Commission File Number) (IRS Employer Identification No.)
1201 S. Beckham Avenue, Tyler, TX   75701
(Address of Principal Executive Offices) (Zip Code)

Registrant's telephone number, including area code: (903) 531-7111

NA
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities Registered Pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol Name of each exchange on which registered
Common stock, $1.25 par value SBSI New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
 









ITEM 2.02.  RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On January 29, 2025, Southside Bancshares, Inc. issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2024. A copy of the press release is attached as Exhibit 99.1 hereto and is hereby incorporated herein by reference.

The information in this Current Report on Form 8-K, including the attached exhibit, is being furnished as provided in General Instruction B.2 to Form 8-K, to the Securities and Exchange Commission and shall not be deemed to be “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. Furthermore the information contained in this Current Report on Form 8-K shall not be deemed to be incorporated by reference in any filing with the Securities and Exchange Commission, except as shall be expressly provided by specific reference in such filing.

ITEM 9.01.  FINANCIAL STATEMENTS AND EXHIBITS

(D)Exhibits.  The following materials are furnished as exhibits to this Current Report on Form 8-K:
Exhibit
Number
  Description of Exhibit
     
99.1   
104  Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

    Southside Bancshares, Inc.
     
Date:  January 29, 2025 By: /s/ JULIE N. SHAMBURGER
Julie N. Shamburger, CPA
  Chief Financial Officer
    (Principal Financial Officer)



EX-99.1 2 ex991er12312024.htm EX-99.1 Document

EXHIBIT 99.1
SOUTHSIDE BANCSHARES, INC.
ANNOUNCES FINANCIAL RESULTS FOR THE
FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2024


•Fourth quarter net income of $21.8 million;
•Fourth quarter earnings per diluted common share of $0.71;
•Annualized return on fourth quarter average assets of 1.03%;
•Annualized return on fourth quarter average tangible common equity of 14.12%(1); and
•Nonperforming assets decreased to 0.04% of total assets.
Tyler, Texas (January 29, 2025) Southside Bancshares, Inc. (“Southside” or the “Company”) (NYSE: SBSI) today reported its financial results for the quarter and year ended December 31, 2024. Southside reported net income of $21.8 million for the three months ended December 31, 2024, an increase of $4.5 million, or 25.8%, compared to $17.3 million for the same period in 2023. Earnings per diluted common share increased $0.14, or 24.6%, to $0.71 for the three months ended December 31, 2024, from $0.57 for the same period in 2023. The annualized return on average shareholders’ equity for the three months ended December 31, 2024, was 10.54%, compared to 9.31% for the same period in 2023.  The annualized return on average assets was 1.03% for the three months ended December 31, 2024, compared to 0.85% for the same period in 2023.
“For the year ended December 31, 2024, net income increased $1.8 million to $88.5 million when compared to 2023, earnings per share increased $0.09 to $2.91, and the return on average tangible common equity was 14.92%. For 2024, loan growth was 3.0% and linked quarter loans increased $83.5 million, or 7.3% annualized, most of which occurred in December,” stated Lee R. Gibson, Chief Executive Officer of Southside. “We recorded losses of $540,000 associated with two branch closures during 2024. Linked quarter our net interest margin decreased 12 basis points. Asset quality metrics remain solid with the nonperforming assets to total assets ratio decreasing to 0.04%. Late fourth quarter loan growth combined with anticipated mid-single digit 2025 loan growth should lead to an increasing net interest margin during 2025.”
Operating Results for the Three Months Ended December 31, 2024
Net income was $21.8 million for the three months ended December 31, 2024, compared to $17.3 million for the same period in 2023, an increase of $4.5 million, or 25.8%. Earnings per diluted common share were $0.71 and $0.57 for the three months ended December 31, 2024 and 2023, respectively. The increase in net income was a result of the increase in noninterest income and the decrease in the provision for credit losses, partially offset by increases in noninterest expense and income tax expense and a decrease in net interest income. Annualized returns on average assets and average shareholders’ equity for the three months ended December 31, 2024 were 1.03% and 10.54%, respectively, compared to 0.85% and 9.31%, respectively, for the three months ended December 31, 2023.  Our efficiency ratio and tax-equivalent efficiency ratio(1) were 56.08% and 54.00%, respectively, for the three months ended December 31, 2024, compared to 53.30% and 50.86%, respectively, for the three months ended December 31, 2023, and 53.94% and 51.90%, respectively, for the three months ended September 30, 2024.
Net interest income for the three months ended December 31, 2024 was $53.7 million, a decrease of $0.8 million, or 1.4%, from the same period in 2023. The decrease in net interest income was due to the decrease in the average yield of interest earning assets and increases in the average rate paid on and average balance of our interest bearing liabilities, partially offset by the increase in the average balance of interest earning assets. Linked quarter, net interest income decreased $1.8 million, or 3.2%, compared to $55.5 million for the three months ended September 30, 2024, due to the decrease in the average yield of interest earning assets, partially offset by the decrease in the average rate paid on our interest bearing liabilities, the increase in the average balance of interest earning assets and the change in the mix of our interest bearing liabilities.
Our net interest margin and tax-equivalent net interest margin(1) decreased to 2.70% and 2.83%, respectively, for the three months ended December 31, 2024, compared to 2.83% and 2.99%, respectively, for the same period in 2023. Linked quarter, net interest margin and tax-equivalent net interest margin(1) decreased from 2.82% and 2.95%, respectively, for the three months ended September 30, 2024.
Noninterest income was $12.3 million for the three months ended December 31, 2024, an increase of $9.8 million, or 391.0%, compared to $2.5 million for the same period in 2023. The increase was due to a decrease in net loss on sale of securities available for sale (“AFS”) and an increase in other noninterest income, partially offset by a decrease in bank owned life insurance (“BOLI”) income. The decrease in net loss on sale of securities AFS was due to a net loss of $10.4 million for the three months ended December 31, 2023, related to the strategic repositioning of the securities portfolio. On a linked quarter basis, noninterest income increased $4.1 million, or 50.3%, compared to the three months ended September 30, 2024.

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The increase was primarily due to an increase in other noninterest income and a decrease in net loss on sale of securities AFS. The increase in other noninterest income was primarily due to an increase in swap fee income for the three months ended December 31, 2024, and an impairment charge of $868,000 on the sale of approximately $10 million of AFS municipal securities and the unwind of the related fair value swaps realized during the three months ended September 30, 2024.
Noninterest expense increased $3.0 million, or 8.5%, to $38.2 million for the three months ended December 31, 2024, compared to $35.2 million for the same period in 2023, due to increases in salaries and employee benefits, other noninterest expense, professional fees and software and data processing expense, partially offset by decreases in advertising, travel and entertainment expense. On a linked quarter basis, noninterest expense increased by $1.8 million, or 5.0%, compared to the three months ended September 30, 2024, due to increases in salaries and employee benefits expense, other noninterest expense and professional fees.
Income tax expense increased $2.5 million, or 111.2%, for the three months ended December 31, 2024, compared to the same period in 2023. On a linked quarter basis, income tax expense increased $0.3 million, or 6.1%. Our effective tax rate (“ETR”) increased to 17.6% for the three months ended December 31, 2024, compared to 11.3% for the three months ended December 31, 2023. On a linked quarter basis, the ETR was 17.6% for both the three months ended September 30, 2024 and December 31, 2024. The higher ETR for the three months ended December 31, 2024 compared to the same period in 2023, was primarily due to a decrease in net tax-exempt income as a percentage of pre-tax income.
Operating Results for the Year Ended December 31, 2024
Net income was $88.5 million for the year ended December 31, 2024, compared to $86.7 million for the same period in 2023, an increase of $1.8 million, or 2.1%. Earnings per diluted common share were $2.91 for the year ended December 31, 2024, compared to $2.82 for the same period in 2023, an increase of 3.2%. The increase in net income was primarily a result of the increase in noninterest income, decrease in provision for credit losses and the increase in net interest income, partially offset by the increases in noninterest expense and income tax expense. Returns on average assets and average shareholders’ equity for the year ended December 31, 2024 were 1.06% and 11.03%, respectively, compared to 1.11% and 11.50%, respectively, for the year ended December 31, 2023.  Our efficiency ratio and tax-equivalent efficiency ratio(1) were 55.69% and 53.52%, respectively, for the year ended December 31, 2024, compared to 53.81% and 51.30%, respectively, for the year ended December 31, 2023.
Net interest income was $216.1 million for the year ended December 31, 2024, compared to $215.0 million for the same period in 2023, an increase of $1.1 million, or 0.5%, due to increases in the average balance and the average yield of interest earning assets, partially offset by increases in the average rate paid on and average balance of our interest bearing liabilities.
Our net interest margin and tax-equivalent net interest margin(1) were 2.74% and 2.88%, respectively, for the year ended December 31, 2024, compared to 2.92% and 3.09%, respectively, for the same period in 2023.
Noninterest income was $41.7 million for the year ended December 31, 2024, an increase of $5.9 million, or 16.5%, compared to $35.8 million for the same period in 2023. The increase was primarily due to a decrease in net loss on sale of securities AFS and an increase in brokerage services income, partially offset by decreases in the net gain on sale of equity securities, BOLI income and deposit services income.
Noninterest expense was $147.1 million for the year ended December 31, 2024, compared to $140.6 million for the same period in 2023, an increase of $6.6 million, or 4.7%. The increase was primarily due to increases in salaries and employee benefits, software and data processing expense and other noninterest expense, partially offset by decreases in advertising, travel and entertainment expense and amortization of intangibles.
Income tax expense increased $4.4 million, or 30.8%, for the year ended December 31, 2024, compared to the same period in 2023. Our ETR was approximately 17.6% and 14.3% for the year ended December 31, 2024 and 2023, respectively. The higher ETR for the year ended December 31, 2024, as compared to the same period in 2023, was primarily due to a decrease in net tax-exempt income as a percentage of pre-tax income.
Balance Sheet Data
At December 31, 2024, Southside had $8.52 billion in total assets, compared to $8.28 billion at December 31, 2023 and $8.36 billion at September 30, 2024.
Loans at December 31, 2024 were $4.66 billion, an increase of $137.1 million, or 3.0%, compared to $4.52 billion at December 31, 2023. Linked quarter, loans increased $83.5 million, or 1.8%, due to increases of $157.1 million in commercial real estate loans and $4.3 million in commercial loans. These increases were partially offset by decreases of $48.0 million in construction loans, $15.0 million in 1-4 family residential loans, $11.1 million in municipal loans and $3.8 million in loans to individuals.
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Securities at December 31, 2024 were $2.81 billion, an increase of $209.8 million, or 8.1%, compared to $2.60 billion at December 31, 2023. Linked quarter, securities increased $116.3 million, or 4.3%, from $2.70 billion at September 30, 2024.
Deposits at December 31, 2024 were $6.65 billion, an increase of $104.6 million, or 1.6%, compared to $6.55 billion at December 31, 2023. Linked quarter, deposits increased $218.5 million, or 3.4%, from $6.44 billion at September 30, 2024. During the three months ended December 31, 2024, public fund deposits increased $156.8 million, or 14.6%, compared to September 30, 2024.
At December 31, 2024, we had 178,662 total deposit accounts with an average balance of $33,000. Our estimated uninsured deposits were 38.1% of total deposits as of December 31, 2024. When excluding affiliate deposits (Southside-owned deposits) and public fund deposits (all collateralized), our total estimated deposits without insurance or collateral was 19.5% as of December 31, 2024. Our noninterest bearing deposits represent approximately 20.4% of total deposits. Linked quarter, our cost of interest bearing deposits decreased nine basis points from 3.01% in the prior quarter to 2.92%. Linked quarter, our cost of total deposits decreased seven basis points from 2.38% in the prior quarter to 2.31%.
Our cost of interest bearing deposits increased 64 basis points, from 2.34% for the year ended December 31, 2023, to 2.98% for the year ended December 31, 2024. Our cost of total deposits increased 59 basis points, from 1.77% for the year ended December 31, 2023, to 2.36% for the year ended December 31, 2024.
Capital Resources and Liquidity
Our capital ratios and contingent liquidity sources remain solid. During the fourth quarter ended December 31, 2024, we did not purchase any common stock 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 December 31, 2024.
As of December 31, 2024, our total available contingent liquidity, net of current outstanding borrowings, was $2.23 billion, consisting of FHLB advances, Federal Reserve Discount Window and correspondent bank lines of credit.
Asset Quality
Nonperforming assets at December 31, 2024 were $3.6 million, or 0.04% of total assets, a decrease of $0.4 million, or 10.3%, compared to $4.0 million, or 0.05% of total assets, at December 31, 2023. Linked quarter, nonperforming assets decreased $4.1 million, or 53.1%, from $7.7 million at September 30, 2024 due to a $4.1 million decrease in nonaccrual loans primarily from the payoff of one commercial real estate loan. Classified loans totaled $48.0 million on December 31, 2024, compared to $42.0 million at September 30, 2024 and $19.2 million at December 31, 2023.
The allowance for loan losses totaled $44.9 million, or 0.96% of total loans, at December 31, 2024, compared to $44.3 million, or 0.97% of total loans, at September 30, 2024. The allowance for loan losses was $42.7 million, or 0.94% of total loans, at December 31, 2023.
For the three months ended December 31, 2024, we recorded a provision for credit losses for loans of $1.6 million, compared to a provision of $2.2 million and $2.3 million for the three months ended December 31, 2023 and September 30, 2024, respectively. Net charge-offs were $1.0 million for the three months ended December 31, 2024, compared to net charge-offs of $1.3 million and $0.4 million for the three months ended December 31, 2023 and September 30, 2024, respectively. Net charge-offs were $1.9 million for the year ended December 31, 2024, compared to net charge-offs of $2.8 million for the year ended December 31, 2023.
We recorded a reversal of provision for credit losses on off-balance-sheet credit exposures of $0.2 million for the three months ended December 31, 2024, compared to a provision for credit losses on off-balance-sheet credit exposures $0.1 million for both of the three-month periods ended December 31, 2023 and September 30, 2024. We recorded a reversal of provision for credit losses for off-balance-sheet credit exposures of $0.8 million for the year ended December 31, 2024, compared to a provision for credit losses on off-balance-sheet credit exposures of $0.2 million for the year ended December 31, 2023. The balance of the allowance for off-balance-sheet credit exposures was $3.1 million and $3.9 million at December 31, 2024 and 2023, respectively, and is included in other liabilities.
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Dividend
Southside Bancshares, Inc. declared a fourth quarter cash dividend of $0.36 per share on November 7, 2024, which was paid on December 6, 2024, to all shareholders of record as of November 21, 2024.
_______________
(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 fourth quarter and year ended December 31, 2024 financial results on Wednesday, January 29, 2025 at 11:00 a.m. CST.  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/BI54b435198f6143e589b32994aed51233 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 $8.52 billion in assets as of December 31, 2024, that owns 100% of Southside Bank.  Southside Bank currently has 53 branches in Texas and operates a network of 72 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, 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, interest rate fluctuations and general economic 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.
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Southside Bancshares, Inc.
Consolidated Financial Summary (Unaudited)
(Dollars in thousands)

As of
2024 2023
Dec 31, Sep 30, Jun 30, Mar 31, Dec 31,
ASSETS
Cash and due from banks $ 91,409  $ 130,147  $ 114,283  $ 96,744  $ 122,021 
Interest earning deposits 281,945  333,825  272,469  307,257  391,719 
Federal funds sold 52,807  22,325  65,244  65,372  46,770 
Securities available for sale, at estimated fair value 1,533,894  1,408,437  1,405,944  1,405,221  1,296,294 
Securities held to maturity, at net carrying value 1,279,234  1,288,403  1,305,975  1,306,898  1,307,053 
Total securities 2,813,128  2,696,840  2,711,919  2,712,119  2,603,347 
Federal Home Loan Bank stock, at cost 33,818  40,291  32,991  27,958  11,936 
Loans held for sale 1,946  768  1,352  756  10,894 
Loans 4,661,597  4,578,048  4,589,365  4,577,368  4,524,510 
Less: Allowance for loan losses
(44,884) (44,276) (42,407) (43,557) (42,674)
Net loans 4,616,713  4,533,772  4,546,958  4,533,811  4,481,836 
Premises & equipment, net 141,648  138,811  138,489  139,491  138,950 
Goodwill 201,116  201,116  201,116  201,116  201,116 
Other intangible assets, net 1,754  2,003  2,281  2,588  2,925 
Bank owned life insurance 138,313  137,489  136,903  136,604  136,330 
Other assets 142,851  124,876  133,697  130,047  137,070 
Total assets $ 8,517,448  $ 8,362,263  $ 8,357,702  $ 8,353,863  $ 8,284,914 
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest bearing deposits $ 1,357,152  $ 1,377,022  $ 1,366,924  $ 1,358,827  $ 1,390,407 
Interest bearing deposits 5,297,096  5,058,680  5,129,008  5,186,933  5,159,274 
Total deposits 6,654,248  6,435,702  6,495,932  6,545,760  6,549,681 
Other borrowings and Federal Home Loan Bank borrowings 808,352  865,856  763,700  770,151  722,468 
Subordinated notes, net of unamortized debt
issuance costs
92,042  92,006  91,970  93,913  93,877 
Trust preferred subordinated debentures, net of unamortized debt issuance costs 60,274  60,273  60,272  60,271  60,270 
Other liabilities 90,590  103,172  144,858  95,846  85,330 
          Total liabilities 7,705,506  7,557,009  7,556,732  7,565,941  7,511,626 
Shareholders' equity 811,942  805,254  800,970  787,922  773,288 
Total liabilities and shareholders' equity $ 8,517,448  $ 8,362,263  $ 8,357,702  $ 8,353,863  $ 8,284,914 


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Southside Bancshares, Inc.
Consolidated Financial Highlights (Unaudited)
(Dollars and shares in thousands, except per share data)
Three Months Ended
2024 2023
Dec 31, Sep 30, Jun 30, Mar 31, Dec 31,
Income Statement:
Total interest and dividend income $ 101,689  $ 105,703  $ 104,186  $ 102,758  $ 98,939 
Total interest expense 47,982  50,239  50,578  49,410  44,454 
Net interest income 53,707  55,464  53,608  53,348  54,485 
Provision for (reversal of) credit losses 1,384  2,389  (485) 58  2,281 
Net interest income after provision for (reversal of) credit losses 52,323  53,075  54,093  53,290  52,204 
Noninterest income
Deposit services
6,084  6,199  6,157  5,985  6,305 
Net gain (loss) on sale of securities available for sale —  (1,929) (563) (18) (10,386)
Gain (loss) on sale of loans 138  115  220  (436) 178 
Trust fees
1,773  1,628  1,456  1,336  1,431 
Bank owned life insurance
848  857  1,767  784  2,602 
Brokerage services
1,054  1,068  1,081  1,014  944 
Other
2,384  233  1,439  1,059  1,427 
Total noninterest income
12,281  8,171  11,557  9,724  2,501 
Noninterest expense
Salaries and employee benefits
22,960  22,233  21,984  23,113  21,152 
Net occupancy
3,629  3,613  3,750  3,362  3,474 
Advertising, travel & entertainment
884  734  795  950  1,127 
ATM expense
378  412  368  325  318 
Professional fees
1,645  1,206  1,075  1,154  1,315 
Software and data processing
2,931  2,951  2,860  2,856  2,644 
Communications
320  423  410  449  435 
FDIC insurance
931  939  977  943  892 
Amortization of intangibles
249  278  307  337  370 
Other 4,232  3,543  3,239  3,392  3,456 
Total noninterest expense
38,159  36,332  35,765  36,881  35,183 
Income before income tax expense 26,445  24,914  29,885  26,133  19,522 
Income tax expense 4,659  4,390  5,212  4,622  2,206 
Net income $ 21,786  $ 20,524  $ 24,673  $ 21,511  $ 17,316 
Common Share Data:
Weighted-average basic shares outstanding 30,343  30,286  30,280  30,262  30,235 
Weighted-average diluted shares outstanding 30,459  30,370  30,312  30,305  30,276 
Common shares outstanding end of period 30,379  30,308  30,261  30,284  30,249 
Earnings per common share
Basic
$ 0.72  $ 0.68  $ 0.81  $ 0.71  $ 0.57 
Diluted
0.71  0.68  0.81  0.71  0.57 
Book value per common share 26.73  26.57  26.47  26.02  25.56 
Tangible book value per common share 20.05  19.87  19.75  19.29  18.82 
Cash dividends paid per common share 0.36  0.36  0.36  0.36  0.37 
Selected Performance Ratios:
Return on average assets 1.03  % 0.98  % 1.19  % 1.03  % 0.85  %
Return on average shareholders’ equity 10.54  10.13  12.46  11.02  9.31 
Return on average tangible common equity (1)
14.12  13.69  16.90  15.07  13.10 
Average yield on earning assets (FTE) (1)
5.24  5.51  5.45  5.38  5.30 
Average rate on interest bearing liabilities 3.12  3.28  3.32  3.22  3.04 
Net interest margin (FTE) (1)
2.83  2.95  2.87  2.86  2.99 
Net interest spread (FTE) (1)
2.12  2.23  2.13  2.16  2.26 
Average earning assets to average interest bearing liabilities 129.55  128.51  128.62  127.71  131.65 
Noninterest expense to average total assets 1.80  1.73  1.72  1.77  1.73 
Efficiency ratio (FTE) (1)
54.00  51.90  52.71  55.54  50.86 
(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-8


Southside Bancshares, Inc.
Consolidated Financial Highlights (Unaudited)
(Dollars in thousands)

Three Months Ended
2024 2023
Dec 31, Sep 30, Jun 30, Mar 31, Dec 31,
Nonperforming Assets: $ 3,589  $ 7,656  $ 6,918  $ 7,979  $ 4,001 
Nonaccrual loans 3,185  7,254  6,110  7,709  3,889 
Accruing loans past due more than 90 days —  —  —  —  — 
Restructured loans —  145  151  13 
Other real estate owned 388  388  648  119  99 
Repossessed assets 14  14  15  —  — 
Asset Quality Ratios:
Ratio of nonaccruing loans to:
Total loans 0.07  % 0.16  % 0.13  % 0.17  % 0.09  %
Ratio of nonperforming assets to:
Total assets 0.04  0.09  0.08  0.10  0.05 
Total loans 0.08  0.17  0.15  0.17  0.09 
Total loans and OREO 0.08  0.17  0.15  0.17  0.09 
Ratio of allowance for loan losses to:
Nonaccruing loans 1,409.23  610.37  694.06  565.01  1,097.30 
Nonperforming assets 1,250.60  578.32  613.00  545.90  1,066.58 
Total loans 0.96  0.97  0.92  0.95  0.94 
Net charge-offs (recoveries) to average loans outstanding 0.08  0.04  0.02  0.03  0.11 
Capital Ratios:
Shareholders’ equity to total assets 9.53  9.63  9.58  9.43  9.33 
Common equity tier 1 capital 13.04  13.07  12.72  12.43  12.28 
Tier 1 risk-based capital 14.07  14.12  13.76  13.47  13.32 
Total risk-based capital 16.49  16.59  16.16  15.92  15.73 
Tier 1 leverage capital 9.67  9.61  9.40  9.22  9.39 
Period end tangible equity to period end tangible assets (1)
7.33  7.38  7.33  7.17  7.04 
Average shareholders’ equity to average total assets 9.76  9.67  9.52  9.35  9.13 

(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-9


Southside Bancshares, Inc.
Consolidated Financial Highlights (Unaudited)
(Dollars in thousands)

Three Months Ended
2024 2023
Loan Portfolio Composition Dec 31, Sep 30, Jun 30, Mar 31, Dec 31,
Real Estate Loans:
Construction
$ 537,827  $ 585,817  $ 546,040  $ 599,464  $ 789,744 
1-4 Family Residential
740,396  755,406  738,037  720,508  696,738 
Commercial
2,579,735  2,422,612  2,472,771  2,413,345  2,168,451 
Commercial Loans 363,167  358,854  359,807  358,053  366,893 
Municipal Loans 390,968  402,041  416,986  427,225  441,168 
Loans to Individuals 49,504  53,318  55,724  58,773  61,516 
Total Loans $ 4,661,597  $ 4,578,048  $ 4,589,365  $ 4,577,368  $ 4,524,510 
Summary of Changes in Allowances:
Allowance for Loan Losses
Balance at beginning of period $ 44,276  $ 42,407  $ 43,557  $ 42,674  $ 41,760 
Loans charged-off (1,232) (773) (721) (634) (1,572)
Recoveries of loans charged-off 277  365  444  347  284 
  Net loans (charged-off) recovered (955) (408) (277) (287) (1,288)
Provision for (reversal of) loan losses 1,563  2,277  (873) 1,170  2,202 
Balance at end of period $ 44,884  $ 44,276  $ 42,407  $ 43,557  $ 42,674 
Allowance for Off-Balance-Sheet Credit Exposures
Balance at beginning of period $ 3,320  $ 3,208  $ 2,820  $ 3,932  $ 3,853 
Provision for (reversal of) off-balance-sheet credit exposures (179) 112  388  (1,112) 79 
Balance at end of period $ 3,141  $ 3,320  $ 3,208  $ 2,820  $ 3,932 
Total Allowance for Credit Losses $ 48,025  $ 47,596  $ 45,615  $ 46,377  $ 46,606 
Page-10


Southside Bancshares, Inc.
Consolidated Financial Highlights (Unaudited)
(Dollars in thousands)

Year ended
December 31,
2024 2023
Income Statement:
Total interest and dividend income $ 414,336  $ 359,741 
Total interest expense 198,209  144,714 
Net interest income 216,127  215,027 
Provision for (reversal of) credit losses 3,346  9,154 
Net interest income after provision for (reversal of) credit losses 212,781  205,873 
Noninterest income
Deposit services
24,425  25,497 
Net gain (loss) on sale of securities available for sale
(2,510) (15,976)
Net gain on sale of equity securities —  5,058 
Gain (loss) on sale of loans 37  563 
Trust fees
6,193  5,910 
Bank owned life insurance
4,256  5,823 
Brokerage services
4,217  3,305 
Other
5,115  5,654 
Total noninterest income
41,733  35,834 
Noninterest expense
Salaries and employee benefits
90,290  85,625 
Net occupancy
14,354  14,694 
Advertising, travel & entertainment
3,363  4,093 
ATM expense
1,483  1,351 
Professional fees
5,080  5,351 
Software and data processing
11,598  9,395 
Communications
1,602  1,469 
FDIC insurance
3,790  3,558 
Amortization of intangibles
1,171  1,697 
Other 14,406  13,345 
Total noninterest expense
147,137  140,578 
Income before income tax expense 107,377  101,129 
Income tax expense 18,883  14,437 
Net income $ 88,494  $ 86,692 
Common Share Data:
Weighted-average basic shares outstanding 30,293  30,704 
Weighted-average diluted shares outstanding 30,369  30,759 
Common shares outstanding end of period 30,379  30,249 
Earnings per common share
Basic
$ 2.92  $ 2.82 
Diluted
2.91  2.82 
Book value per common share 26.73  25.56 
Tangible book value per common share 20.05  18.82 
Cash dividends paid per common share 1.44  1.42 
Selected Performance Ratios:
Return on average assets 1.06  % 1.11  %
Return on average shareholders’ equity 11.03  11.50 
Return on average tangible common equity (1)
14.92  16.03 
Average yield on earning assets (FTE) (1)
5.40  5.06 
Average rate on interest bearing liabilities 3.24  2.64 
Net interest margin (FTE) (1)
2.88  3.09 
Net interest spread (FTE) (1)
2.16  2.42 
Average earning assets to average interest bearing liabilities 128.60  134.07 
Noninterest expense to average total assets 1.76  1.80 
Efficiency ratio (FTE) (1)
53.52  51.30 
(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


Southside Bancshares, Inc.
Consolidated Financial Highlights (Unaudited)
(Dollars in thousands)

Year ended
December 31,
2024 2023
Nonperforming Assets: $ 3,589  $ 4,001 
Nonaccrual loans 3,185  3,889 
Accruing loans past due more than 90 days —  — 
Restructured loans 13 
Other real estate owned 388  99 
Repossessed assets 14  — 
Asset Quality Ratios:
Ratio of nonaccruing loans to:
Total loans 0.07  % 0.09  %
Ratio of nonperforming assets to:
Total assets 0.04  0.05 
Total loans 0.08  0.09 
Total loans and OREO 0.08  0.09 
Ratio of allowance for loan losses to:
Nonaccruing loans 1,409.23  1,097.30 
Nonperforming assets 1,250.60  1,066.58 
Total loans 0.96  0.94 
Net charge-offs (recoveries) to average loans outstanding 0.04  0.06 
Capital Ratios:
Shareholders’ equity to total assets 9.53  9.33 
Common equity tier 1 capital 13.04  12.28 
Tier 1 risk-based capital 14.07  13.32 
Total risk-based capital 16.49  15.73 
Tier 1 leverage capital 9.67  9.39 
Period end tangible equity to period end tangible assets (1)
7.33  7.04 
Average shareholders’ equity to average total assets 9.58  9.63 

(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-12


Southside Bancshares, Inc.
Consolidated Financial Highlights (Unaudited)
(Dollars in thousands)

Year ended
December 31,
Loan Portfolio Composition 2024 2023
Real Estate Loans:
Construction
$ 537,827  $ 789,744 
1-4 Family Residential
740,396  696,738 
Commercial
2,579,735  2,168,451 
Commercial Loans 363,167  366,893 
Municipal Loans 390,968  441,168 
Loans to Individuals 49,504  61,516 
Total Loans $ 4,661,597  $ 4,524,510 
Summary of Changes in Allowances:
Allowance for Loan Losses
Balance at beginning of period $ 42,674  $ 36,515 
Loans charged-off (3,360) (4,204)
Recoveries of loans charged-off 1,433  1,454 
  Net loans (charged-off) recovered (1,927) (2,750)
Provision for (reversal of) loan losses 4,137  8,909 
Balance at end of period $ 44,884  $ 42,674 
Allowance for Off-Balance-Sheet Credit Exposures
Balance at beginning of period $ 3,932  $ 3,687 
Provision for (reversal of) off-balance-sheet credit exposures (791) 245 
Balance at end of period $ 3,141  $ 3,932 
Total Allowance for Credit Losses $ 48,025  $ 46,606 


Page-13


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
December 31, 2024 September 30, 2024
Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/Rate
ASSETS
Loans (1)
$ 4,604,175  $ 70,155  6.06  % $ 4,613,028  $ 72,493  6.25  %
Loans held for sale 1,562  23  5.86  % 871  11  5.02  %
Securities:
Taxable investment securities (2)
784,321  6,949  3.52  % 791,914  7,150  3.59  %
Tax-exempt investment securities (2)
1,138,271  10,793  3.77  % 1,174,445  11,825  4.01  %
Mortgage-backed and related securities (2)
1,031,187  12,043  4.65  % 886,325  11,976  5.38  %
Total securities
2,953,779  29,785  4.01  % 2,852,684  30,951  4.32  %
Federal Home Loan Bank stock, at cost, and equity investments 37,078  591  6.34  % 41,159  582  5.63  %
Interest earning deposits 273,656  3,160  4.59  % 281,313  3,798  5.37  %
Federal funds sold 43,121  508  4.69  % 33,971  488  5.71  %
Total earning assets 7,913,371  104,222  5.24  % 7,823,026  108,323  5.51  %
Cash and due from banks 102,914  100,578 
Accrued interest and other assets 454,387  455,091 
Less:  Allowance for loan losses
(44,418) (42,581)
Total assets $ 8,426,254  $ 8,336,114 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts $ 594,196  1,456  0.97  % $ 598,116  1,490  0.99  %
Certificates of deposit 1,187,800  13,537  4.53  % 1,087,613  12,647  4.63  %
Interest bearing demand accounts 3,459,122  23,468  2.70  % 3,409,911  24,395  2.85  %
Total interest bearing deposits 5,241,118  38,461  2.92  % 5,095,640  38,532  3.01  %
Federal Home Loan Bank borrowings 572,993  5,557  3.86  % 618,708  6,488  4.17  %
Subordinated notes, net of unamortized debt issuance costs 92,024  945  4.09  % 91,988  937  4.05  %
Trust preferred subordinated debentures, net of unamortized debt issuance costs 60,274  1,095  7.23  % 60,273  1,180  7.79  %
Repurchase agreements 80,891  782  3.85  % 83,297  899  4.29  %
Other borrowings 61,196  1,142  7.42  % 137,482  2,203  6.37  %
Total interest bearing liabilities 6,108,496  47,982  3.12  % 6,087,388  50,239  3.28  %
Noninterest bearing deposits 1,383,204  1,344,165 
Accrued expenses and other liabilities 112,320  98,331 
Total liabilities 7,604,020  7,529,884 
Shareholders’ equity 822,234  806,230 
Total liabilities and shareholders’ equity $ 8,426,254  $ 8,336,114 
Net interest income (FTE) $ 56,240  $ 58,084 
Net interest margin (FTE) 2.83  % 2.95  %
Net interest spread (FTE) 2.12  % 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 is presented at historical cost.

Note: As of December 31, 2024 and September 30, 2024, loans totaling $3.2 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.

Page-14


Southside Bancshares, Inc.
Average Balances and Average Yields and Rates (Annualized) (Unaudited)
(Dollars in thousands)

Three Months Ended
June 30, 2024 March 31, 2024
Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/Rate
ASSETS
Loans (1)
$ 4,595,980  $ 70,293  6.15  % $ 4,559,602  $ 68,849  6.07  %
Loans held for sale 1,489  24  6.48  % 8,834  18  0.82  %
Securities:
Taxable investment securities (2)
783,856  7,009  3.60  % 780,423  6,967  3.59  %
Tax-exempt investment securities (2)
1,254,097  12,761  4.09  % 1,285,922  13,168  4.12  %
Mortgage-backed and related securities (2)
830,504  11,084  5.37  % 764,713  10,119  5.32  %
Total securities
2,868,457  30,854  4.33  % 2,831,058  30,254  4.30  %
Federal Home Loan Bank stock, at cost, and equity investments 40,467  573  5.69  % 40,063  333  3.34  %
Interest earning deposits 300,047  4,105  5.50  % 380,181  5,202  5.50  %
Federal funds sold 75,479  1,021  5.44  % 62,599  838  5.38  %
Total earning assets 7,881,919  106,870  5.45  % 7,882,337  105,494  5.38  %
Cash and due from banks 110,102  114,379 
Accrued interest and other assets 424,323  441,783 
Less:  Allowance for loan losses
(43,738) (42,973)
Total assets $ 8,372,606  $ 8,395,526 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts $ 604,753  1,454  0.97  % $ 604,529  1,424  0.95  %
Certificates of deposit 1,020,099  11,630  4.59  % 941,947  10,341  4.42  %
Interest bearing demand accounts 3,513,068  25,382  2.91  % 3,634,936  26,433  2.92  %
Total interest bearing deposits 5,137,920  38,466  3.01  % 5,181,412  38,198  2.97  %
Federal Home Loan Bank borrowings 606,851  6,455  4.28  % 607,033  5,950  3.94  %
Subordinated notes, net of unamortized debt issuance costs 92,017  936  4.09  % 93,895  956  4.10  %
Trust preferred subordinated debentures, net of unamortized debt issuance costs 60,271  1,171  7.81  % 60,270  1,175  7.84  %
Repurchase agreements 88,007  955  4.36  % 92,177  967  4.22  %
Other borrowings 143,169  2,595  7.29  % 137,287  2,164  6.34  %
Total interest bearing liabilities 6,128,235  50,578  3.32  % 6,172,074  49,410  3.22  %
Noninterest bearing deposits 1,346,274  1,338,384 
Accrued expenses and other liabilities 101,399  100,014 
Total liabilities 7,575,908  7,610,472 
Shareholders’ equity 796,698  785,054 
Total liabilities and shareholders’ equity $ 8,372,606  $ 8,395,526 
Net interest income (FTE) $ 56,292  $ 56,084 
Net interest margin (FTE) 2.87  % 2.86  %
Net interest spread (FTE) 2.13  % 2.16  %

(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.


Page-15


Southside Bancshares, Inc.
Average Balances and Average Yields and Rates (Annualized) (Unaudited)
(Dollars in thousands)

Three Months Ended
December 31, 2023
Average Balance Interest Average Yield/Rate
ASSETS
Loans (1)
$ 4,473,618  $ 67,886  6.02  %
Loans held for sale 1,858  27  5.77  %
Securities:
Taxable investment securities (2)
852,023  7,970  3.71  %
Tax-exempt investment securities (2)
1,456,187  15,688  4.27  %
Mortgage-backed and related securities (2)
581,548  6,865  4.68  %
Total securities
2,889,758  30,523  4.19  %
Federal Home Loan Bank stock, at cost, and equity investments 24,674  296  4.76  %
Interest earning deposits 150,763  2,054  5.41  %
Federal funds sold 93,149  1,286  5.48  %
Total earning assets 7,633,820  102,072  5.30  %
Cash and due from banks 110,380 
Accrued interest and other assets 374,120 
Less:  Allowance for loan losses
(41,822)
Total assets $ 8,076,498 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts $ 610,453  1,432  0.93  %
Certificates of deposit 910,759  9,691  4.22  %
Interest bearing demand accounts 3,469,120  24,498  2.80  %
Total interest bearing deposits 4,990,332  35,621  2.83  %
Federal Home Loan Bank borrowings 262,709  1,430  2.16  %
Subordinated notes, net of unamortized debt issuance costs 93,859  965  4.08  %
Trust preferred subordinated debentures, net of unamortized debt issuance costs 60,269  1,195  7.87  %
Repurchase agreements 96,622  1,008  4.14  %
Other borrowings 294,683  4,235  5.70  %
Total interest bearing liabilities 5,798,474  44,454  3.04  %
Noninterest bearing deposits 1,424,961 
Accrued expenses and other liabilities 115,388 
Total liabilities 7,338,823 
Shareholders’ equity 737,675 
Total liabilities and shareholders’ equity $ 8,076,498 
Net interest income (FTE) $ 57,618 
Net interest margin (FTE) 2.99  %
Net interest spread (FTE) 2.26  %

(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, loans totaling $3.9 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.
Page-16


Southside Bancshares, Inc.
Average Balances and Average Yields and Rates (Unaudited)
(Dollars in thousands)
Year ended
December 31, 2024 December 31, 2023
Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/Rate
ASSETS
Loans (1)
$ 4,593,280  $ 281,790  6.13  % $ 4,300,138  $ 247,431  5.75  %
Loans held for sale 3,179  76  2.39  % 1,681  96  5.71  %
Securities:
Taxable investment securities (2)
785,145  28,075  3.58  % 845,907  31,186  3.69  %
Tax-exempt investment securities (2)
1,212,844  48,547  4.00  % 1,554,519  64,568  4.15  %
Mortgage-backed and related securities (2)
878,623  45,222  5.15  % 470,692  19,450  4.13  %
Total securities 2,876,612  121,844  4.24  % 2,871,118  115,204  4.01  %
Federal Home Loan Bank stock, at cost, and equity investments 39,688  2,079  5.24  % 24,971  1,185  4.75  %
Interest earning deposits 308,628  16,265  5.27  % 83,343  4,364  5.24  %
Federal funds sold 53,709  2,855  5.32  % 79,948  4,124  5.16  %
Total earning assets 7,875,096  424,909  5.40  % 7,361,199  372,404  5.06  %
Cash and due from banks 106,965  107,018 
Accrued interest and other assets 443,733  397,860 
Less:  Allowance for loan losses (43,428) (37,890)
Total assets $ 8,382,366  $ 7,828,187 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts $ 600,375  5,824  0.97  % $ 636,603  5,633  0.88  %
Certificates of deposit 1,059,793  48,155  4.54  % 862,211  30,906  3.58  %
Interest bearing demand accounts 3,503,878  99,678  2.84  % 3,122,319  71,618  2.29  %
Total interest bearing deposits 5,164,046  153,657  2.98  % 4,621,133  108,157  2.34  %
Federal Home Loan Bank borrowings 601,366  24,450  4.07  % 276,584  6,777  2.45  %
Subordinated notes, net of unamortized debt issuance costs 92,478  3,774  4.08  % 96,024  3,920  4.08  %
Trust preferred subordinated debentures, net of unamortized debt issuance costs 60,272  4,621  7.67  % 60,267  4,504  7.47  %
Repurchase agreements 86,071  3,603  4.19  % 91,132  3,431  3.76  %
Other borrowings 119,672  8,104  6.77  % 345,544  17,925  5.19  %
Total interest bearing liabilities 6,123,905  198,209  3.24  % 5,490,684  144,714  2.64  %
Noninterest bearing deposits 1,353,065  1,485,896 
Accrued expenses and other liabilities 102,778  97,509 
Total liabilities 7,579,748  7,074,089 
Shareholders’ equity 802,618  754,098 
Total liabilities and shareholders’ equity $ 8,382,366  $ 7,828,187 
Net interest income (FTE) $ 226,700  $ 227,690 
Net interest margin (FTE) 2.88  % 3.09  %
Net interest spread (FTE) 2.16  % 2.42  %
(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, 2024 and 2023, loans totaling $3.2 million and $3.9 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 Year ended
2024 2023 2024 2023
Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Dec 31, Dec 31,
Reconciliation of return on average common equity to return on average tangible common equity:
Net income $ 21,786  $ 20,524  $ 24,673  $ 21,511  $ 17,316  $ 88,494  $ 86,692 
After-tax amortization expense 196  220  243  266  292  925  1,341 
Adjusted net income available to common shareholders $ 21,982  $ 20,744  $ 24,916  $ 21,777  $ 17,608  $ 89,419  $ 88,033 
Average shareholders' equity $ 822,234  $ 806,230  $ 796,698  $ 785,054  $ 737,675  $ 802,618  $ 754,098 
Less: Average intangibles for the period (203,020) (203,288) (203,581) (203,910) (204,267) (203,448) (204,887)
   Average tangible shareholders' equity $ 619,214  $ 602,942  $ 593,117  $ 581,144  $ 533,408  $ 599,170  $ 549,211 
Return on average tangible common equity 14.12  % 13.69  % 16.90  % 15.07  % 13.10  % 14.92  % 16.03  %
Reconciliation of book value per share to tangible book value per share:
Common equity at end of period $ 811,942  $ 805,254  $ 800,970  $ 787,922  $ 773,288  $ 811,942  $ 773,288 
Less: Intangible assets at end of period (202,870) (203,119) (203,397) (203,704) (204,041) (202,870) (204,041)
Tangible common shareholders' equity at end of period $ 609,072  $ 602,135  $ 597,573  $ 584,218  $ 569,247  $ 609,072  $ 569,247 
Total assets at end of period $ 8,517,448  $ 8,362,263  $ 8,357,702  $ 8,353,863  $ 8,284,914  $ 8,517,448  $ 8,284,914 
Less: Intangible assets at end of period (202,870) (203,119) (203,397) (203,704) (204,041) (202,870) (204,041)
Tangible assets at end of period $ 8,314,578  $ 8,159,144  $ 8,154,305  $ 8,150,159  $ 8,080,873  $ 8,314,578  $ 8,080,873 
Period end tangible equity to period end tangible assets 7.33  % 7.38  % 7.33  % 7.17  % 7.04  % 7.33  % 7.04  %
Common shares outstanding end of period 30,379  30,308  30,261  30,284  30,249  30,379  30,249 
Tangible book value per common share $ 20.05  $ 19.87  $ 19.75  $ 19.29  $ 18.82  $ 20.05  $ 18.82 
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) $ 53,707  $ 55,464  $ 53,608  $ 53,348  $ 54,485  $ 216,127  $ 215,027 
Tax-equivalent adjustments:
Loans 598  608  633  656  680  2,495  2,724 
Tax-exempt investment securities 1,935  2,012  2,051  2,080  2,453  8,078  9,939 
Net interest income (FTE) (1)
56,240  58,084  56,292  56,084  57,618  226,700  227,690 
Noninterest income 12,281  8,171  11,557  9,724  2,501  41,733  35,834 
Nonrecurring income (2)
(25) 2,797  (576) 18  8,376  2,214  7,370 
Total revenue $ 68,496  $ 69,052  $ 67,273  $ 65,826  $ 68,495  $ 270,647  $ 270,894 
Noninterest expense $ 38,159  $ 36,332  $ 35,765  $ 36,881  $ 35,183  $ 147,137  $ 140,578 
Pre-tax amortization expense (249) (278) (307) (337) (370) (1,171) (1,697)
Nonrecurring expense (3)
(919) (219) 17  22  (1,119) 78 
Adjusted noninterest expense $ 36,991  $ 35,835  $ 35,460  $ 36,561  $ 34,835  $ 144,847  $ 138,959 
Efficiency ratio 56.08  % 53.94  % 54.90  % 57.95  % 53.30  % 55.69  % 53.81  %
Efficiency ratio (FTE) (1)
54.00  % 51.90  % 52.71  % 55.54  % 50.86  % 53.52  % 51.30  %
Average earning assets $ 7,913,371  $ 7,823,026  $ 7,881,919  $ 7,882,337  $ 7,633,820  $ 7,875,096  $ 7,361,199 
Net interest margin 2.70  % 2.82  % 2.74  % 2.72  % 2.83  % 2.74  % 2.92  %
Net interest margin (FTE) (1)
2.83  % 2.95  % 2.87  % 2.86  % 2.99  % 2.88  % 3.09  %
Net interest spread 1.99  % 2.10  % 2.00  % 2.02  % 2.10  % 2.02  % 2.25  %
Net interest spread (FTE) (1)
2.12  % 2.23  % 2.13  % 2.16  % 2.26  % 2.16  % 2.42  %
(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.
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