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SOUTHSIDE BANCSHARES, INC.
ANNOUNCES FINANCIAL RESULTS FOR THE
FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2025


•Fourth quarter net income of $21.0 million;
•Fourth quarter earnings per diluted common share of $0.70;
•Tax-equivalent net interest margin(1) linked quarter increased four basis points to 2.98%;
•Annualized return on fourth quarter average assets of 0.99%;
•Annualized return on fourth quarter average tangible common equity of 13.03(1); and
•Nonperforming assets remain low at 0.45% of total assets.
Tyler, Texas (January 29, 2026) Southside Bancshares, Inc. (“Southside” or the “Company”) (NYSE: SBSI) today reported its financial results for the quarter and year ended December 31, 2025.
“During the fourth quarter, we continued the restructure of a portion of our available for sale (“AFS”) securities portfolio by selling approximately $82 million of lower yielding long duration municipal securities with a combined taxable equivalent yield of approximately 2.59% at a loss of $7.3 million,” stated Keith Donahoe, President and Chief Executive Officer of Southside. “All the sales occurred at the end of October. The proceeds from the sale of these securities were reinvested primarily in U.S. Agency mortgage-backed securities. Linked quarter, net interest income increased $1.5 million, our net interest margin increased four basis points to 2.98% due to lower funding costs during the quarter and deposits, net of public fund and brokered deposits, increased $40.8 million. Linked quarter, total loans increased $52.7 million. On February 15, 2026, we will redeem our $93 million subordinated notes due 2030 which bear interest at a rate of 7.51%. We expect the redemption to have a positive impact on our net interest margin in the first quarter.”
Operating Results for the Three Months Ended December 31, 2025
Net income was $21.0 million for the three months ended December 31, 2025, compared to $21.8 million for the same period in 2024, a decrease of $0.8 million, or 3.7%. Earnings per diluted common share were $0.70 for the three months ended December 31, 2025, compared to $0.71 for the same period in 2024, a decrease of $0.01, or 1.4%. The decrease in net income was due to the net loss on sale of AFS securities, partially offset by an increase in net interest income, decreases in income tax expense and provision for credit losses and increases in several noninterest income categories. For the three months ended December 31, 2025, we had a $7.3 million net loss on sale of AFS securities, compared to no gain or loss for the same period in 2024. Annualized returns on average assets and average shareholders’ equity for the three months ended December 31, 2025 were 0.99% and 9.85%, respectively, compared to 1.03% and 10.54%, respectively, for the three months ended December 31, 2024. Our efficiency ratio and tax-equivalent efficiency ratio(1) were 53.85% and 52.28%, respectively, for the three months ended December 31, 2025, compared to 56.08% and 54.00%, respectively, for the three months ended December 31, 2024, and 54.87% and 52.99%, respectively, for the three months ended September 30, 2025.
Net interest income for the three months ended December 31, 2025 was $57.2 million, an increase of $3.5 million, or 6.6%, compared to the same period in 2024. The increase in net interest income was primarily due to the decrease in the average rate paid on our interest bearing liabilities. Linked quarter, net interest income increased $1.5 million, or 2.7%, compared to $55.7 million for the three months ended September 30, 2025, due to a decrease in the average rate paid on our interest bearing liabilities and an increase in the average balance of our interest earning assets, partially offset by the decrease in the average yield of our interest earning assets.
Our net interest margin and tax-equivalent net interest margin(1) increased to 2.87% and 2.98%, respectively, for the three months ended December 31, 2025, compared to 2.70% and 2.83%, respectively, for the same period in 2024. Linked quarter, net interest margin and tax-equivalent net interest margin(1) increased from 2.81% and 2.94%, respectively, for the three months ended September 30, 2025.
Noninterest income, excluding the net losses on sales of AFS securities, was $12.9 million and $12.3 million for the three months ended December 31, 2025 and 2024, respectively, an increase of $0.6 million, or 5.0%. The increase was due to increases in trust fees, deposit services income, brokerage services income and bank owned life insurance (“BOLI”) income, partially offset by a decrease in other noninterest income. On a linked quarter basis, noninterest income, excluding the net losses on sales of AFS securities increased $0.5 million, or 4.0%, compared to the three months ended September 30, 2025, due primarily to increases in deposit services income, BOLI income and brokerage services income, partially offset by a decrease in other noninterest income during the three months ended December 31, 2025.

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Noninterest expense decreased $0.7 million, or 1.8%, to $37.5 million for the three months ended December 31, 2025, compared to $38.2 million for the same period in 2024, primarily due to decreases in professional fees and other noninterest expense. On a linked quarter basis, noninterest expense decreased by $57,000, or 0.2%, compared to the three months ended September 30, 2025.
Income tax expense decreased $0.9 million, or 18.8%, for the three months ended December 31, 2025, compared to the same period in 2024. On a linked quarter basis, income tax expense increased $3.6 million, or 1,900.5%. Our effective tax rate (“ETR”) decreased to 15.3% for the three months ended December 31, 2025, compared to 17.6% for the three months ended December 31, 2024, and increased from 3.7% for the three months ended September 30, 2025. The lower ETR for the three months ended December 31, 2025 compared to the same period in 2024, was primarily a result of an increase in net tax-exempt income as a percentage of pre-tax income. On a linked quarter basis, the higher ETR 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 an increase in state income tax expense.
Operating Results for the Year Ended December 31, 2025
Net income was $69.2 million for the year ended December 31, 2025, compared to $88.5 million for the same period in 2024, a decrease of $19.3 million, or 21.8%. Earnings per diluted common share were $2.29 for the year ended December 31, 2025, compared to $2.91 for the same period in 2024, a decrease of $0.62, or 21.3%. The decrease in net income was driven by the net loss on the sale of AFS securities and, to a lesser extent, an increase in noninterest expense, partially offset by a decrease in income tax expense, increases in net interest income and several noninterest income categories and a decrease in provision for credit losses. For the year ended December 31, 2025, we had a $32.3 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 year ended December 31, 2025 were 0.83% and 8.40%, respectively, compared to 1.06% and 11.03%, respectively, for the year ended December 31, 2024. Our efficiency ratio and tax-equivalent efficiency ratio(1) were 55.32% and 53.48%, respectively, for the year ended December 31, 2025, compared to 55.69% and 53.52%, respectively, for the year ended December 31, 2024.
Net interest income was $221.1 million for the year ended December 31, 2025, compared to $216.1 million for the same period in 2024, an increase of $5.0 million, or 2.3%, due to decreases in the average rate paid on our interest bearing liabilities and a change in the mix of our interest earning assets and interest bearing liabilities, 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 2.81% and 2.93%, respectively, for the year ended December 31, 2025, compared to 2.74% and 2.88%, respectively, for the same period in 2024.
Noninterest income, excluding the net losses on sale of AFS securities, was $48.2 million and $44.2 million for the years ended December 31, 2025 and 2024, respectively, an increase of $4.0 million, or 9.0%. The increase was primarily due to an increase in other noninterest income, trust fees, brokerage services income and gain on sale of loans, partially offset by a decrease in BOLI income.
Noninterest expense was $151.4 million for the year ended December 31, 2025, compared to $147.1 million for the same period in 2024, an increase of $4.2 million, or 2.9%. The increase was primarily due to increases in other noninterest expense, professional fees and advertising, travel and entertainment expense, partially offset by decreases in amortization of intangibles and communications expense.
Income tax expense decreased $5.5 million, or 29.0%, for the year ended December 31, 2025, compared to the same period in 2024. Our ETR was approximately 16.2% and 17.6% for the years ended December 31, 2025 and 2024, respectively. The lower ETR for the year ended December 31, 2025, as compared to the same period in 2024, was primarily a result of an increase in net tax-exempt income as a percentage of pre-tax income.
Balance Sheet Data
At December 31, 2025, Southside had $8.51 billion in total assets, compared to $8.52 billion at December 31, 2024 and $8.38 billion at September 30, 2025.
Loans at December 31, 2025 were $4.82 billion, an increase of $156.4 million, or 3.4%, compared to $4.66 billion at December 31, 2024. Linked quarter, loans increased $52.7 million, or 1.1%, due to increases of $29.0 million in construction loans, $24.1 million in commercial real estate loans and $14.8 million in commercial loans. These increases were partially offset by decreases of $6.6 million in municipal loans, $5.7 million in 1-4 family residential loans and $2.9 million in loans to individuals.
Securities at December 31, 2025 were $2.70 billion, a decrease of $109.4 million, or 3.9%, compared to $2.81 billion at December 31, 2024. Linked quarter, securities increased $147.9 million, or 5.8%, from $2.56 billion at September 30, 2025.
Deposits at December 31, 2025 were $6.87 billion, an increase of $210.9 million, or 3.2%, compared to $6.65 billion at
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December 31, 2024. Linked quarter, deposits decreased $96.4 million, or 1.4%, from $6.96 billion at September 30, 2025, primarily due to the decrease of $223.5 million in brokered deposits, partially offset by increases of $86.3 million and $40.8 million in public fund deposits and retail deposits, respectively.
At December 31, 2025, we had 178,757 total deposit accounts with an average balance of $35,000. Our estimated uninsured deposits were 39.7% of total deposits as of December 31, 2025. When excluding affiliate deposits (Southside-owned deposits) and public fund deposits (all collateralized), our total estimated deposits without insurance or collateral was 23.0% as of December 31, 2025. Our noninterest bearing deposits represent approximately 20.9% of total deposits. Linked quarter, our cost of interest bearing deposits decreased nine basis points from 2.82% in the prior quarter to 2.73%. Linked quarter, our cost of total deposits decreased nine basis points from 2.25% in the prior quarter to 2.16%.
Our cost of interest bearing deposits decreased 18 basis points, from 2.98% for the year ended December 31, 2024, to 2.80% for the year ended December 31, 2025. Our cost of total deposits decreased 13 basis points, from 2.36% for the year ended December 31, 2024, to 2.23% for the year ended December 31, 2025.
Capital Resources and Liquidity
Our capital ratios and contingent liquidity sources remain solid. During the fourth quarter ended December 31, 2025, we repurchased 369,804 shares of the Company’s common stock at an average price of $28.84 per share, pursuant to our Stock Repurchase Plan (the “Plan”). Under the 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 Plan and may modify, suspend or discontinue the Plan at any time. As of December 31, 2025, approximately 0.8 million authorized shares remained available for purchase. We have not purchased any common stock pursuant to the Plan subsequent to December 31, 2025.
As of December 31, 2025, our total available contingent liquidity, net of current outstanding borrowings, was $2.78 billion, consisting of FHLB advances, Federal Reserve Discount Window and correspondent bank lines of credit.
Asset Quality
Nonperforming assets at December 31, 2025 were $38.2 million, or 0.45% of total assets, an increase of $2.6 million, or 7.4%, from $35.6 million, or 0.42% of total assets, at September 30, 2025, due primarily to an increase of $2.5 million in nonaccrual loans. The increase in nonaccrual loans compared to September 30, 2025 was due to a $3.4 million increase in 1-4 family real estate. Nonperforming assets increased $34.7 million, or 965.6%, compared to $3.6 million, or 0.04% of total assets, at December 31, 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 $45.1 million, or 0.94% of total loans, at December 31, 2025, compared to $45.3 million, or 0.95% of total loans, at September 30, 2025. The allowance for loan losses was $44.9 million, or 0.96% of total loans, at December 31, 2024. The decrease in allowance as a percentage of total loans compared to December 31, 2024 was primarily due to improvements in the overall economic forecast in the CECL model.
For the three months ended December 31, 2025, we recorded a provision for credit losses for loans of $0.6 million, compared to $1.6 million and $1.7 million for the three months ended December 31, 2024 and September 30, 2025, respectively. Net charge-offs were $0.8 million for the three months ended December 31, 2025, compared to net charge-offs of $1.0 million and $0.8 million for the three months ended December 31, 2024 and September 30, 2025, respectively. Net charge-offs were $2.8 million for the year ended December 31, 2025, compared to net charge-offs of $1.9 million for the year ended December 31, 2024.
We recorded a provision for credit losses on off-balance-sheet credit exposures of $17,000 for the three months ended December 31, 2025, compared to a reversal of provision of $0.2 million and $0.6 million for the three months ended December 31, 2024 and September 30, 2025, respectively. We recorded a provision for losses on off-balance-sheet credit exposures of $25,000 for the year ended December 31, 2025, compared to a reversal of provision for credit losses on off-balance-sheet credit exposures of $0.8 million for the year ended December 31, 2024. The balance of the allowance for off-balance-sheet credit exposures was $3.2 million and $3.1 million at December 31, 2025 and 2024, 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 6, 2025, which was paid on December 4, 2025, to all shareholders of record as of November 20, 2025.
_______________
(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, 2025 financial results on Thursday, January 29, 2026 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://events.q4inc.com/analyst/337048650?pwd=3wdPmIO1 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 $8.51 billion in assets as of December 31, 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; the extensive regulations the Company is subject to and legislative and regulatory changes; the Company’s ability to successfully execute its business strategy; the Company’s ability to innovate, to anticipate the needs of our current and future customers and to manage increased or expanded competition from banks and other financial service providers in its markets; the Company’s ability to effectively manage information technology systems, including third party vendors, cyber or data privacy incidents or other failures, outages, disruptions or security breaches; the Company’s ability to use technology to provide products and services to its customers; adverse developments in the banking industry and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments, including in the context of regulatory examinations and related findings and actions; negative press and social media attention with respect to the banking industry or the Company, in particular; claims, litigation or regulatory investigations and actions that the Company may become subject to; the failure to identify, attract and retain key personnel and other employees and to engage in adequate succession planning; the Company’s recent executive transition; and the additional risks 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
20252024
Dec 31,Sep 30,Jun 30,Mar 31,Dec 31,
ASSETS
Cash and due from banks$81,080 $90,519 $109,669 $103,359 $91,409 
Interest earning deposits302,906 365,263 260,357 293,364 281,945 
Federal funds sold5,800 11,130 20,069 34,248 52,807 
Securities available for sale, at estimated fair value1,456,219 1,292,431 1,457,124 1,457,939 1,533,894 
Securities held to maturity, at net carrying value1,247,477 1,263,401 1,272,906 1,278,330 1,279,234 
Total securities2,703,696 2,555,832 2,730,030 2,736,269 2,813,128 
Federal Home Loan Bank stock, at cost14,062 9,359 24,384 34,208 33,818 
Loans held for sale1,332 497 428 903 1,946 
Loans4,817,991 4,765,289 4,601,933 4,567,239 4,661,597 
Less: Allowance for loan losses
(45,100)(45,294)(44,421)(44,623)(44,884)
Net loans4,772,891 4,719,995 4,557,512 4,522,616 4,616,713 
Premises & equipment, net152,293 147,187 147,263 142,245 141,648 
Goodwill201,116 201,116 201,116 201,116 201,116 
Other intangible assets, net1,012 1,161 1,333 1,531 1,754 
Bank owned life insurance145,125 139,697 138,826 137,962 138,313 
Other assets133,277 141,404 148,979 135,479 142,851 
Total assets$8,514,590 $8,383,160 $8,339,966 $8,343,300 $8,517,448 
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest bearing deposits$1,433,129 $1,411,764 $1,368,453 $1,379,641 $1,357,152 
Interest bearing deposits5,432,030 5,549,823 5,263,511 5,211,210 5,297,096 
Total deposits6,865,159 6,961,587 6,631,964 6,590,851 6,654,248 
Other borrowings and Federal Home Loan Bank borrowings419,793 200,706 611,367 691,417 808,352 
Subordinated notes, net of unamortized debt
issuance costs		239,678 239,601 92,115 92,078 92,042 
Trust preferred subordinated debentures, net of unamortized debt issuance costs60,279 60,278 60,277 60,276 60,274 
Other liabilities82,066 86,138 137,043 92,055 90,590 
          Total liabilities7,666,975 7,548,310 7,532,766 7,526,677 7,705,506 
Shareholders' equity847,615 834,850 807,200 816,623 811,942 
Total liabilities and shareholders' equity$8,514,590 $8,383,160 $8,339,966 $8,343,300 $8,517,448 


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Southside Bancshares, Inc.
Consolidated Financial Highlights (Unaudited)
(Dollars and shares in thousands, except per share data)
Three Months Ended
20252024
Dec 31,Sep 30,Jun 30,Mar 31,Dec 31,
Income Statement:
Total interest and dividend income$102,328 $101,896 $98,562 $100,288 $101,689 
Total interest expense45,080 46,178 44,296 46,436 47,982 
Net interest income57,248 55,718 54,266 53,852 53,707 
Provision for (reversal of) credit losses581 1,092 622 758 1,384 
Net interest income after provision for (reversal of) credit losses56,667 54,626 53,644 53,094 52,323 
Noninterest income
Deposit services
6,415 6,069 6,125 5,829 6,084 
Net gain (loss) on sale of securities available for sale(7,321)(24,395)— (554)— 
Gain (loss) on sale of loans122 164 99 55 138 
Trust fees
2,148 2,081 1,879 1,765 1,773 
Bank owned life insurance
1,134 871 833 799 848 
Brokerage services
1,348 1,172 1,219 1,120 1,054 
Other
1,732 2,048 1,990 1,209 2,384 
Total noninterest income (loss)5,578 (11,990)12,145 10,223 12,281 
Noninterest expense
Salaries and employee benefits
22,816 22,803 22,272 22,382 22,960 
Net occupancy
3,715 3,761 3,621 3,404 3,629 
Advertising, travel & entertainment
1,147 907 950 924 884 
ATM expense
319 444 405 378 378 
Professional fees
1,343 1,451 1,401 1,520 1,645 
Software and data processing
2,859 2,770 3,027 2,839 2,931 
Communications
273 321 342 383 320 
FDIC insurance
937 920 955 947 931 
Amortization of intangibles
149 172 198 223 249 
Other3,919 3,985 6,086 4,089 4,232 
Total noninterest expense
37,477 37,534 39,257 37,089 38,159 
Income before income tax expense24,768 5,102 26,532 26,228 26,445 
Income tax expense3,781 189 4,719 4,721 4,659 
Net income$20,987 $4,913 $21,813 $21,507 $21,786 
Common Share Data:
Weighted-average basic shares outstanding29,863 30,067 30,234 30,390 30,343 
Weighted-average diluted shares outstanding29,943 30,135 30,308 30,483 30,459 
Common shares outstanding end of period29,723 30,066 30,082 30,410 30,379 
Earnings per common share
Basic
$0.70 $0.16 $0.72 $0.71 $0.72 
Diluted
0.70 0.16 0.72 0.71 0.71 
Book value per common share28.52 27.77 26.83 26.85 26.73 
Tangible book value per common share21.72 21.04 20.10 20.19 20.05 
Cash dividends paid per common share0.36 0.36 0.36 0.36 0.36 
Selected Performance Ratios:
Return on average assets0.99 %0.23 %1.07 %1.03 %1.03 %
Return on average shareholders’ equity9.85 2.40 10.73 10.57 10.54 
Return on average tangible common equity (1)
13.03 3.28 14.38 14.14 14.12 
Average yield on earning assets (FTE) (1)
5.24 5.27 5.25 5.23 5.24 
Average rate on interest bearing liabilities2.93 3.01 2.98 3.03 3.12 
Net interest margin (FTE) (1)
2.98 2.94 2.95 2.86 2.83 
Net interest spread (FTE) (1)
2.31 2.26 2.27 2.20 2.12 
Average earning assets to average interest bearing liabilities129.69 129.13 129.33 128.10 129.55 
Noninterest expense to average total assets1.76 1.78 1.92 1.78 1.80 
Efficiency ratio (FTE) (1)
52.28 52.99 53.70 55.04 54.00 
(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
20252024
Dec 31,Sep 30,Jun 30,Mar 31,Dec 31,
Nonperforming Assets:$38,243 $35,608 $32,909 $32,193 $3,589 
Nonaccrual loans10,486 7,955 4,998 4,254 3,185 
Accruing loans past due more than 90 days— — — — — 
Restructured loans27,509 27,501 27,512 27,505 2 
Other real estate owned248 128 380 388 388 
Repossessed assets— 24 19 46 14 
Asset Quality Ratios:
Ratio of nonaccruing loans to:
Total loans0.22 %0.17 %0.11 %0.09 %0.07 %
Ratio of nonperforming assets to:
Total assets0.45 0.42 0.39 0.39 0.04 
Total loans0.79 0.75 0.72 0.70 0.08 
Total loans and OREO0.79 0.75 0.72 0.70 0.08 
Ratio of allowance for loan losses to:
Nonaccruing loans430.10 569.38 888.78 1,048.97 1,409.23 
Nonperforming assets117.93 127.20 134.98 138.61 1,250.60 
Total loans0.94 0.95 0.97 0.98 0.96 
Net charge-offs (recoveries) to average loans outstanding0.07 0.07 0.08 0.03 0.08 
Capital Ratios:
Shareholders’ equity to total assets9.95 9.96 9.68 9.79 9.53 
Common equity tier 1 capital12.87 12.97 13.36 13.44 13.04 
Tier 1 risk-based capital13.88 13.99 14.41 14.49 14.07 
Total risk-based capital18.54 19.01 16.91 17.01 16.49 
Tier 1 leverage capital9.72 9.78 10.03 9.73 9.67 
Period end tangible equity to period end tangible assets (1)
7.77 7.73 7.43 7.54 7.33 
Average shareholders’ equity to average total assets10.00 9.72 9.94 9.75 9.76 

(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
20252024
Loan Portfolio CompositionDec 31,Sep 30,Jun 30,Mar 31,Dec 31,
Real Estate Loans:
Construction
$548,570 $519,528 $470,380 $458,101 $537,827 
1-4 Family Residential
724,354 730,061 736,108 741,432 740,396 
Commercial
2,712,816 2,688,712 2,606,072 2,577,229 2,579,735 
Commercial Loans444,720 429,952 380,612 371,643 363,167 
Municipal Loans346,720 353,324 363,746 371,271 390,968 
Loans to Individuals40,811 43,712 45,015 47,563 49,504 
Total Loans$4,817,991 $4,765,289 $4,601,933 $4,567,239 $4,661,597 
Summary of Changes in Allowances:
Allowance for Securities Held to Maturity
Balance at beginning of period$55 $55 $64 $— $— 
Provision for (reversal of) securities held to maturity(30)— (9)64 — 
Balance at end of period$25 $55 $55 $64 $— 
Allowance for Loan Losses
Balance at beginning of period$45,294 $44,421 $44,623 $44,884 $44,276 
Loans charged-off(1,115)(1,335)(1,194)(613)(1,232)
Recoveries of loans charged-off327 491 342 310 277 
  Net loans (charged-off) recovered(788)(844)(852)(303)(955)
Provision for (reversal of) loan losses594 1,717 650 42 1,563 
Balance at end of period$45,100 $45,294 $44,421 $44,623 $44,884 
Allowance for Off-Balance-Sheet Credit Exposures
Balance at beginning of period$3,149 $3,774 $3,793 $3,141 $3,320 
Provision for (reversal of) off-balance-sheet credit exposures17 (625)(19)652 (179)
Balance at end of period$3,166 $3,149 $3,774 $3,793 $3,141 
Total Allowance for Credit Losses$48,291 $48,498 $48,250 $48,480 $48,025 
Page-10

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

Year ended
December 31,
20252024
Income Statement:
Total interest and dividend income$403,074 $414,336 
Total interest expense181,990 198,209 
Net interest income221,084 216,127 
Provision for (reversal of) credit losses3,053 3,346 
Net interest income after provision for (reversal of) credit losses218,031 212,781 
Noninterest income
Deposit services
24,438 24,425 
Net gain (loss) on sale of securities available for sale
(32,270)(2,510)
Gain (loss) on sale of loans440 37 
Trust fees
7,873 6,193 
Bank owned life insurance
3,637 4,256 
Brokerage services
4,859 4,217 
Other
6,979 5,115 
Total noninterest income (loss)15,956 41,733 
Noninterest expense
Salaries and employee benefits
90,273 90,290 
Net occupancy
14,501 14,354 
Advertising, travel & entertainment
3,928 3,363 
ATM expense
1,546 1,483 
Professional fees
5,715 5,080 
Software and data processing
11,495 11,598 
Communications
1,319 1,602 
FDIC insurance
3,759 3,790 
Amortization of intangibles
742 1,171 
Other18,079 14,406 
Total noninterest expense
151,357 147,137 
Income before income tax expense82,630 107,377 
Income tax expense13,410 18,883 
Net income$69,220 $88,494 
Common Share Data:
Weighted-average basic shares outstanding30,137 30,293 
Weighted-average diluted shares outstanding30,226 30,369 
Common shares outstanding end of period29,723 30,379 
Earnings per common share
Basic
$2.30 $2.92 
Diluted
2.29 2.91 
Book value per common share28.52 26.73 
Tangible book value per common share21.72 20.05 
Cash dividends paid per common share1.44 1.44 
Selected Performance Ratios:
Return on average assets0.83 %1.06 %
Return on average shareholders’ equity8.40 11.03 
Return on average tangible common equity (1)
11.22 14.92 
Average yield on earning assets (FTE) (1)
5.25 5.40 
Average rate on interest bearing liabilities2.99 3.24 
Net interest margin (FTE) (1)
2.93 2.88 
Net interest spread (FTE) (1)
2.26 2.16 
Average earning assets to average interest bearing liabilities129.06 128.60 
Noninterest expense to average total assets1.81 1.76 
Efficiency ratio (FTE) (1)
53.48 53.52 
(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-11

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

Year ended
December 31,
20252024
Nonperforming Assets:$38,243 $3,589 
Nonaccrual loans10,486 3,185 
Accruing loans past due more than 90 days— — 
Restructured loans27,509 2 
Other real estate owned248 388 
Repossessed assets— 14 
Asset Quality Ratios:
Ratio of nonaccruing loans to:
Total loans0.22 %0.07 %
Ratio of nonperforming assets to:
Total assets0.45 0.04 
Total loans0.79 0.08 
Total loans and OREO0.79 0.08 
Ratio of allowance for loan losses to:
Nonaccruing loans430.10 1,409.23 
Nonperforming assets117.93 1,250.60 
Total loans0.94 0.96 
Net charge-offs (recoveries) to average loans outstanding0.06 0.04 
Capital Ratios:
Shareholders’ equity to total assets9.95 9.53 
Common equity tier 1 capital12.87 13.04 
Tier 1 risk-based capital13.88 14.07 
Total risk-based capital18.54 16.49 
Tier 1 leverage capital9.72 9.67 
Period end tangible equity to period end tangible assets (1)
7.77 7.33 
Average shareholders’ equity to average total assets9.85 9.58 

(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 Composition20252024
Real Estate Loans:
Construction
$548,570 $537,827 
1-4 Family Residential
724,354 740,396 
Commercial
2,712,816 2,579,735 
Commercial Loans444,720 363,167 
Municipal Loans346,720 390,968 
Loans to Individuals40,811 49,504 
Total Loans$4,817,991 $4,661,597 
Summary of Changes in Allowances:
Allowance for Securities Held to Maturity
Balance at beginning of period$— $— 
Provision for (reversal of) securities held to maturity25 — 
Balance at end of period$25 $— 
Summary of Changes in Allowances:
Allowance for Loan Losses
Balance at beginning of period$44,884 $42,674 
Loans charged-off(4,257)(3,360)
Recoveries of loans charged-off1,470 1,433 
  Net loans (charged-off) recovered(2,787)(1,927)
Provision for (reversal of) loan losses3,003 4,137 
Balance at end of period$45,100 $44,884 
Allowance for Off-Balance-Sheet Credit Exposures
Balance at beginning of period$3,141 $3,932 
Provision for (reversal of) off-balance-sheet credit exposures25 (791)
Balance at end of period$3,166 $3,141 
Total Allowance for Credit Losses$48,291 $48,025 
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, 2025September 30, 2025
Average BalanceInterest
Average Yield/Rate (3)
Average BalanceInterest
Average Yield/Rate (3)
ASSETS
Loans (1)
$4,788,584 $71,616 5.93 %$4,640,220 $70,240 6.01 %
Loans held for sale675 12 7.05 %776 12 6.14 %
Securities:
Taxable investment securities (2)
593,393 4,835 3.23 %669,712 5,578 3.30 %
Tax-exempt investment securities (2)
893,382 7,939 3.53 %1,094,978 10,097 3.66 %
Mortgage-backed and related securities (2)
1,284,064 16,493 5.10 %1,058,860 14,174 5.31 %
Total securities
2,770,839 29,267 4.19 %2,823,550 29,849 4.19 %
Federal Home Loan Bank stock, at cost, and equity investments23,287 441 7.51 %37,937 374 3.91 %
Interest earning deposits313,810 3,019 3.82 %334,523 3,631 4.31 %
Federal funds sold6,906 69 3.96 %17,546 195 4.41 %
Total earning assets7,904,101 104,424 5.24 %7,854,552 104,301 5.27 %
Cash and due from banks82,585 87,815 
Accrued interest and other assets508,578 455,884 
Less:  Allowance for loan losses
(45,559)(44,476)
Total assets$8,449,705 $8,353,775 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts$647,035 2,061 1.26 %$618,059 1,772 1.14 %
Certificates of deposit1,372,879 13,857 4.00 %1,505,292 15,752 4.15 %
Interest bearing demand accounts3,474,451 21,827 2.49 %3,320,993 21,234 2.54 %
Total interest bearing deposits5,494,365 37,745 2.73 %5,444,344 38,758 2.82 %
Federal Home Loan Bank borrowings187,725 1,274 2.69 %298,138 2,847 3.79 %
Subordinated notes, net of unamortized debt issuance costs239,648 4,022 6.66 %169,196 2,319 5.44 %
Trust preferred subordinated debentures, net of unamortized debt issuance costs60,278 980 6.45 %60,277 1,025 6.75 %
Repurchase agreements97,637 866 3.52 %75,207 662 3.49 %
Other borrowings14,826 193 5.16 %35,544 567 6.33 %
Total interest bearing liabilities6,094,479 45,080 2.93 %6,082,706 46,178 3.01 %
Noninterest bearing deposits1,423,350 1,375,075 
Accrued expenses and other liabilities86,863 83,601 
Total liabilities7,604,692 7,541,382 
Shareholders’ equity845,013 812,393 
Total liabilities and shareholders’ equity$8,449,705 $8,353,775 
Net interest income (FTE)$59,344 $58,123 
Net interest margin (FTE)2.98 %2.94 %
Net interest spread (FTE)2.31 %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 do not include unrealized gains and losses on AFS securities.
(3)Yield/rate includes the impact of applicable derivatives.

Note: As of December 31, 2025 and September 30, 2025, loans totaling $10.5 million and $8.0 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-14

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

Three Months Ended
June 30, 2025March 31, 2025
Average BalanceInterest
Average Yield/Rate (3)
Average BalanceInterest
Average Yield/Rate (3)
ASSETS
Loans (1)
$4,519,668 $67,798 6.02 %$4,625,902 $68,160 5.98 %
Loans held for sale1,108 16 5.79 %752 11 5.93 %
Securities:
Taxable investment securities (2)
735,669 6,205 3.38 %749,155 6,363 3.44 %
Tax-exempt investment securities (2)
1,130,903 10,351 3.67 %1,134,590 10,253 3.66 %
Mortgage-backed and related securities (2)
1,003,887 13,040 5.21 %1,041,038 13,523 5.27 %
Total securities
2,870,459 29,596 4.14 %2,924,783 30,139 4.18 %
Federal Home Loan Bank stock, at cost, and equity investments31,169 524 6.74 %43,285 483 4.53 %
Interest earning deposits259,617 2,753 4.25 %319,889 3,370 4.27 %
Federal funds sold27,778 308 4.45 %43,813 478 4.42 %
Total earning assets7,709,799 100,995 5.25 %7,958,424 102,641 5.23 %
Cash and due from banks84,419 89,703 
Accrued interest and other assets452,573 457,948 
Less:  Allowance for loan losses
(44,747)(45,105)
Total assets$8,202,044 $8,460,970 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts$596,125 1,451 0.98 %$593,953 1,429 0.98 %
Certificates of deposit1,407,017 14,905 4.25 %1,336,815 14,406 4.37 %
Interest bearing demand accounts3,311,330 21,071 2.55 %3,406,342 21,412 2.55 %
Total interest bearing deposits5,314,472 37,427 2.82 %5,337,110 37,247 2.83 %
Federal Home Loan Bank borrowings394,119 3,721 3.79 %614,897 5,837 3.85 %
Subordinated notes, net of unamortized debt issuance costs92,097 935 4.07 %92,060 932 4.11 %
Trust preferred subordinated debentures, net of unamortized debt issuance costs60,276 1,015 6.75 %60,275 1,014 6.82 %
Repurchase agreements72,295 634 3.52 %75,291 666 3.59 %
Other borrowings28,022 564 8.07 %33,061 740 9.08 %
Total interest bearing liabilities5,961,281 44,296 2.98 %6,212,694 46,436 3.03 %
Noninterest bearing deposits1,339,463 1,334,933 
Accrued expenses and other liabilities85,827 88,450 
Total liabilities7,386,571 7,636,077 
Shareholders’ equity815,473 824,893 
Total liabilities and shareholders’ equity$8,202,044 $8,460,970 
Net interest income (FTE)$56,699 $56,205 
Net interest margin (FTE)2.95 %2.86 %
Net interest spread (FTE)2.27 %2.20 %

(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 June 30, 2025 and March 31, 2025, loans totaling $5.0 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.


Page-15

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

Three Months Ended
December 31, 2024
Average BalanceInterest
Average Yield/Rate (3)
ASSETS
Loans (1)
$4,604,175 $70,155 6.06 %
Loans held for sale1,562 23 5.86 %
Securities:
Taxable investment securities (2)
784,321 6,949 3.52 %
Tax-exempt investment securities (2)
1,138,271 10,793 3.77 %
Mortgage-backed and related securities (2)
1,031,187 12,043 4.65 %
Total securities
2,953,779 29,785 4.01 %
Federal Home Loan Bank stock, at cost, and equity investments37,078 591 6.34 %
Interest earning deposits273,656 3,160 4.59 %
Federal funds sold43,121 508 4.69 %
Total earning assets7,913,371 104,222 5.24 %
Cash and due from banks102,914 
Accrued interest and other assets454,387 
Less:  Allowance for loan losses
(44,418)
Total assets$8,426,254 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts$594,196 1,456 0.97 %
Certificates of deposit1,187,800 13,537 4.53 %
Interest bearing demand accounts3,459,122 23,468 2.70 %
Total interest bearing deposits5,241,118 38,461 2.92 %
Federal Home Loan Bank borrowings572,993 5,557 3.86 %
Subordinated notes, net of unamortized debt issuance costs92,024 945 4.09 %
Trust preferred subordinated debentures, net of unamortized debt issuance costs60,274 1,095 7.23 %
Repurchase agreements80,891 782 3.85 %
Other borrowings61,196 1,142 7.42 %
Total interest bearing liabilities6,108,496 47,982 3.12 %
Noninterest bearing deposits1,383,204 
Accrued expenses and other liabilities112,320 
Total liabilities7,604,020 
Shareholders’ equity822,234 
Total liabilities and shareholders’ equity$8,426,254 
Net interest income (FTE)$56,240 
Net interest margin (FTE)2.83 %
Net interest spread (FTE)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 December 31, 2024, loans totaling $3.2 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, 2025December 31, 2024
Average BalanceInterestAverage Yield/RateAverage BalanceInterestAverage Yield/Rate
ASSETS
Loans (1)
$4,644,030 $277,814 5.98 %$4,593,280 $281,790 6.13 %
Loans held for sale827 51 6.17 %3,179 76 2.39 %
Securities:
Taxable investment securities (2)
686,508 22,981 3.35 %785,145 28,075 3.58 %
Tax-exempt investment securities (2)
1,062,889 38,640 3.64 %1,212,844 48,547 4.00 %
Mortgage-backed and related securities (2)
1,097,523 57,230 5.21 %878,623 45,222 5.15 %
Total securities2,846,920 118,851 4.17 %2,876,612 121,844 4.24 %
Federal Home Loan Bank stock, at cost, and equity investments33,876 1,822 5.38 %39,688 2,079 5.24 %
Interest earning deposits307,019 12,773 4.16 %308,628 16,265 5.27 %
Federal funds sold23,892 1,050 4.39 %53,709 2,855 5.32 %
Total earning assets7,856,564 412,361 5.25 %7,875,096 424,909 5.40 %
Cash and due from banks86,116 106,965 
Accrued interest and other assets468,556 443,733 
Less:  Allowance for loan losses(44,972)(43,428)
Total assets$8,366,264 $8,382,366 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts$613,950 6,713 1.09 %$600,375 5,824 0.97 %
Certificates of deposit1,405,873 58,920 4.19 %1,059,793 48,155 4.54 %
Interest bearing demand accounts3,378,309 85,544 2.53 %3,503,878 99,678 2.84 %
Total interest bearing deposits5,398,132 151,177 2.80 %5,164,046 153,657 2.98 %
Federal Home Loan Bank borrowings372,342 13,679 3.67 %601,366 24,450 4.07 %
Subordinated notes, net of unamortized debt issuance costs148,712 8,208 5.52 %92,478 3,774 4.08 %
Trust preferred subordinated debentures, net of unamortized debt issuance costs60,277 4,034 6.69 %60,272 4,621 7.67 %
Repurchase agreements80,155 2,828 3.53 %86,071 3,603 4.19 %
Other borrowings27,834 2,064 7.42 %119,672 8,104 6.77 %
Total interest bearing liabilities6,087,452 181,990 2.99 %6,123,905 198,209 3.24 %
Noninterest bearing deposits1,368,466 1,353,065 
Accrued expenses and other liabilities85,881 102,778 
Total liabilities7,541,799 7,579,748 
Shareholders’ equity824,465 802,618 
Total liabilities and shareholders’ equity$8,366,264 $8,382,366 
Net interest income (FTE)$230,371 $226,700 
Net interest margin (FTE)2.93 %2.88 %
Net interest spread (FTE)2.26 %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 December 31, 2025 and 2024, loans totaling $10.5 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-17

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 EndedYear ended
2025202420252024
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$20,987 $4,913 $21,813 $21,507 $21,786 $69,220 $88,494 
After-tax amortization expense117 136 157 176 196 586 925 
Adjusted net income available to common shareholders$21,104 $5,049 $21,970 $21,683 $21,982 $69,806 $89,419 
Average shareholders' equity$845,013 $812,393 $815,473 $824,893 $822,234 $824,465 $802,618 
Less: Average intangibles for the period(202,217)(202,380)(202,569)(202,784)(203,020)(202,486)(203,448)
   Average tangible shareholders' equity$642,796 $610,013 $612,904 $622,109 $619,214 $621,979 $599,170 
Return on average tangible common equity13.03 %3.28 %14.38 %14.14 %14.12 %11.22 %14.92 %
Reconciliation of book value per share to tangible book value per share:
Common equity at end of period$847,615 $834,850 $807,200 $816,623 $811,942 $847,615 $811,942 
Less: Intangible assets at end of period(202,128)(202,277)(202,449)(202,647)(202,870)(202,128)(202,870)
Tangible common shareholders' equity at end of period$645,487 $632,573 $604,751 $613,976 $609,072 $645,487 $609,072 
Total assets at end of period$8,514,590 $8,383,160 $8,339,966 $8,343,300 $8,517,448 $8,514,590 $8,517,448 
Less: Intangible assets at end of period(202,128)(202,277)(202,449)(202,647)(202,870)(202,128)(202,870)
Tangible assets at end of period$8,312,462 $8,180,883 $8,137,517 $8,140,653 $8,314,578 $8,312,462 $8,314,578 
Period end tangible equity to period end tangible assets7.77 %7.73 %7.43 %7.54 %7.33 %7.77 %7.33 %
Common shares outstanding end of period29,723 30,066 30,082 30,410 30,379 29,723 30,379 
Tangible book value per common share$21.72 $21.04 $20.10 $20.19 $20.05 $21.72 $20.05 
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)$57,248 $55,718 $54,266 $53,852 $53,707 $221,084 $216,127 
Tax-equivalent adjustments:
Loans545 553 565 581 598 2,244 2,495 
Tax-exempt investment securities1,551 1,852 1,868 1,772 1,935 7,043 8,078 
Net interest income (FTE) (1)
59,344 58,123 56,699 56,205 56,240 230,371 226,700 
Noninterest income5,578 (11,990)12,145 10,223 12,281 15,956 41,733 
Nonrecurring income (2)
7,066 24,395 — 554 (25)32,015 2,214 
Total revenue$71,988 $70,528 $68,844 $66,982 $68,496 $278,342 $270,647 
Noninterest expense$37,477 $37,534 $39,257 $37,089 $38,159 $151,357 $147,137 
Pre-tax amortization expense(149)(172)(198)(223)(249)(742)(1,171)
Nonrecurring expense (3)
306 14 (2,090)(1)(919)(1,771)(1,119)
Adjusted noninterest expense$37,634 $37,376 $36,969 $36,865 $36,991 $148,844 $144,847 
Efficiency ratio53.85 %54.87 %55.67 %57.04 %56.08 %55.32 %55.69 %
Efficiency ratio (FTE) (1)
52.28 %52.99 %53.70 %55.04 %54.00 %53.48 %53.52 %
Average earning assets$7,904,101 $7,854,552 $7,709,799 $7,958,424 $7,913,371 $7,856,564 $7,875,096 
Net interest margin2.87 %2.81 %2.82 %2.74 %2.70 %2.81 %2.74 %
Net interest margin (FTE) (1)
2.98 %2.94 %2.95 %2.86 %2.83 %2.93 %2.88 %
Net interest spread2.21 %2.14 %2.15 %2.08 %1.99 %2.14 %2.02 %
Net interest spread (FTE) (1)
2.31 %2.26 %2.27 %2.20 %2.12 %2.26 %2.16 %
(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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