Category: CTF

Source: GlobeNewswire (MIL-OSI)

• Second quarter net income of $21.8 million;

• Second quarter earnings per diluted common share of $0.72;

• Tax-equivalent net interest margin⁽¹⁾linked quarter increased nine basis points to 2.95%;

• Annualized return on second quarter average assets of 1.07%;

• Annualized return on second quarter average tangible common equity of 14.38%⁽¹⁾; and

• Nonperforming assets remain low at 0.39% of total assets.

TYLER, Texas, July 25, 2025 (GLOBE NEWSWIRE) — Southside Bancshares, Inc. (“Southside” or the “Company”) (NYSE: SBSI) today reported its financial results for the quarter ended June 30, 2025. Southside reported net income of $21.8 million for the three months ended June 30, 2025, a decrease of $2.9 million, or 11.6%, compared to $24.7 million for the same period in 2024. Earnings per diluted common share decreased $0.09, or 11.1%, to $0.72 for the three months ended June 30, 2025, from $0.81 for the same period in 2024. The annualized return on average shareholders’ equity for the three months ended June 30, 2025 was 10.73%, compared to 12.46% for the same period in 2024. The annualized return on average assets was 1.07% for the three months ended June 30, 2025, compared to 1.19% for the same period in 2024.

“We reported excellent financial results for the second quarter ended June 30, 2025, which included earnings per share of $0.72, a return on average assets of 1.07%, and a return on average tangible common equity of 14.38%,” stated Lee R. Gibson, Chief Executive Officer of Southside. “Linked quarter, the net interest margin⁽¹⁾ increased nine basis points to 2.95%, net interest income increased $414,000 to $54.3 million, and deposits net of public fund and brokered deposits increased $90.1 million. The linked quarter total loans increased $35 million, while average loans decreased $106 million due primarily to heavy payoffs during the first two months of the quarter. Total loan growth during the month of June was $104 million. Our loan pipeline is solid and we currently anticipate three to four percent loan growth for all of 2025. During the quarter we expensed $1.2 million related to the write-off and demolition of an existing branch that was replaced with a new building.”

Operating Results for the Three Months Ended June 30, 2025

Net income was $21.8 million for the three months ended June 30, 2025, compared to $24.7 million for the same period in 2024, a decrease of $2.9 million, or 11.6%. Earnings per diluted common share were $0.72 for the three months ended June 30, 2025, compared to $0.81 for the same period in 2024, a decrease of 11.1%. The decrease in net income was a result of increases in noninterest expense and provision for credit losses, partially offset by increases in net interest income and noninterest income and a decrease in income tax expense. Annualized returns on average assets and average shareholders’ equity for the three months ended June 30, 2025 were 1.07% and 10.73%, respectively, compared to 1.19% and 12.46%, respectively, for the three months ended June 30, 2024. Our efficiency ratio and tax-equivalent efficiency ratio⁽¹⁾ were 55.67% and 53.70%, respectively, for the three months ended June 30, 2025, compared to 54.90% and 52.71%, respectively, for the three months ended June 30, 2024, and 57.04% and 55.04%, respectively, for the three months ended March 31, 2025.

Net interest income for the three months ended June 30, 2025 was $54.3 million, an increase of $0.7 million, or 1.2%, compared to the same period in 2024. The increase in net interest income was due to decreases in the average rate paid on and average balance of our interest bearing liabilities, partially offset by decreases in the average yield of and average balance of our interest earning assets. Linked quarter, net interest income increased $0.4 million, or 0.8%, compared to $53.9 million for the three months ended March 31, 2025, due to the decrease in the average balance of interest bearing liabilities, the increase in the average yield on our interest earning assets and the decrease in the rate paid on interest bearing liabilities, partially offset by the decrease in the average balance of our interest earning assets.

Our net interest margin and tax-equivalent net interest margin⁽¹⁾ increased to 2.82% and 2.95%, respectively, for the three months ended June 30, 2025, compared to 2.74% and 2.87%, respectively, for the same period in 2024. Linked quarter, net interest margin and tax-equivalent net interest margin⁽¹⁾ increased from 2.74% and 2.86%, respectively, for the three months ended March 31, 2025.

Noninterest income was $12.1 million for the three months ended June 30, 2025, an increase of $0.6 million, or 5.1%, compared to $11.6 million for the same period in 2024. The increase was primarily due to a decrease in net loss on sale of securities available for sale (“AFS”) and increases in other noninterest income and trust fees, partially offset by a decrease in bank owned life insurance income (“BOLI”). On a linked quarter basis, noninterest income increased $1.9 million, or 18.8%, compared to the three months ended March 31, 2025. The increase was primarily due to an increase in other noninterest income, a decrease in net loss on sale of securities AFS, and increases in deposit services income, trust income and brokerage services income. The increase in other noninterest income was primarily due to an increase in swap fee income for the three months ended June 30, 2025.

Noninterest expense increased $3.5 million, or 9.8%, to $39.3 million for the three months ended June 30, 2025, compared to $35.8 million for the same period in 2024, primarily due to increases in other noninterest expense, professional fees and salaries and employee benefits expense. On a linked quarter basis, noninterest expense increased by $2.2 million, or 5.8%, compared to the three months ended March 31, 2025, due to increases in other noninterest expense and net occupancy expense. The increase in other noninterest expense was primarily due to a one-time charge of $1.2 million on the demolition of an old branch facility following completion of the new branch during the three months ended June 30, 2025.

Income tax expense decreased $0.5 million, or 9.5%, for the three months ended June 30, 2025, compared to the same period in 2024. On a linked quarter basis, income tax expense remained the same at $4.7 million. Our effective tax rate (“ETR”) increased slightly to 17.8% for the three months ended June 30, 2025, compared to 17.4% for the three months ended June 30, 2024, and decreased slightly from 18.0% for the three months ended March 31, 2025. The higher ETR for the three months ended June 30, 2025 compared to the same period in 2024, was primarily due to an increase in state income tax expense.

Operating Results for the Six Months Ended June 30, 2025

Net income was $43.3 million for the six months ended June 30, 2025, compared to $46.2 million for the same period in 2024, a decrease of $2.9 million, or 6.2%. Earnings per diluted common share were $1.42 for the six months ended June 30, 2025, compared to $1.52 for the same period in 2024, a decrease of 6.6%. The decrease in net income was a result of increases in noninterest expense and provision for credit losses, partially offset by increases in net interest income and noninterest income and a decrease in income tax expense. Returns on average assets and average shareholders’ equity for the six months ended June 30, 2025 were 1.05% and 10.65%, respectively, compared to 1.11% and 11.74%, respectively, for the six months ended June 30, 2024. Our efficiency ratio and tax-equivalent efficiency ratio⁽¹⁾ were 56.34% and 54.36%, respectively, for the six months ended June 30, 2025, compared to 56.41% and 54.11%, respectively, for the six months ended June 30, 2024.

Net interest income was $108.1 million for the six months ended June 30, 2025, compared to $107.0 million for the same period in 2024, an increase of $1.2 million, or 1.1%, due to decreases in the average rate paid on and average balance of our 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⁾ were 2.78% and 2.91%, respectively, for the six months ended June 30, 2025, compared to 2.73% and 2.87%, respectively, for the same period in 2024.

Noninterest income was $22.4 million for the six months ended June 30, 2025, an increase of $1.1 million, or 5.1%, compared to $21.3 million for the same period in 2024. The increase was primarily due to increases in trust fees, other noninterest income and gain on sale of loans, partially offset by a decrease in BOLI income.

Noninterest expense was $76.3 million for the six months ended June 30, 2025, compared to $72.6 million for the same period in 2024, an increase of $3.7 million, or 5.1%. The increase was primarily due to increases in other noninterest expense and professional fees, partially offset by a decrease in salaries and employee benefits expense.

Income tax expense decreased $0.4 million, or 4.0%, for the six months ended June 30, 2025, compared to the same period in 2024. Our ETR was approximately 17.9% and 17.6% for the six months ended June 30, 2025 and 2024, respectively. The higher ETR for the six months ended June 30, 2025, as compared to the same period in 2024, was primarily due to an increase in state income tax expense.

Balance Sheet Data

At June 30, 2025, Southside had $8.34 billion in total assets, compared to $8.52 billion at December 31, 2024 and $8.36 billion at June 30, 2024.

Loans at June 30, 2025 were $4.60 billion, an increase of $12.6 million, or 0.3%, compared to $4.59 billion at June 30, 2024. Linked quarter, loans increased $34.7 million, or 0.8%, due to increases of $28.8 million in commercial real estate loans, $12.3 million in construction loans and $9.0 million in commercial loans. These increases were partially offset by decreases of $7.5 million in municipal loans, $5.3 million in 1-4 family residential loans and $2.5 million in loans to individuals.

Securities at June 30, 2025 were $2.73 billion, an increase of $18.1 million, or 0.7%, compared to $2.71 billion at June 30, 2024. Linked quarter, securities decreased $6.2 million, or 0.2%, from $2.74 billion at March 31, 2025.

Deposits at June 30, 2025 were $6.63 billion, an increase of $136.0 million, or 2.1%, compared to $6.50 billion at June 30, 2024. Linked quarter, deposits increased $41.1 million, or 0.6%, from $6.59 billion at March 31, 2025.

At June 30, 2025, we had 178,970 total deposit accounts with an average balance of $34,000. Our estimated uninsured deposits were 38.5% of total deposits as of June 30, 2025. When excluding affiliate deposits (Southside-owned deposits) and public fund deposits (all collateralized), our total estimated deposits without insurance or collateral was 21.1% as of June 30, 2025. Our noninterest bearing deposits represent approximately 20.6% of total deposits. Linked quarter, our cost of interest bearing deposits decreased one basis point from 2.83% in the prior quarter to 2.82%. Linked quarter, our cost of total deposits remained at 2.26%.

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

Capital Resources and Liquidity

Our capital ratios and contingent liquidity sources remain solid. During the second quarter ended June 30, 2025, we purchased 424,435 shares of the Company’s common stock at an average price of $28.13 per share, 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. Subsequent to June 30, 2025, and through July 23, 2025, we purchased 2,443 shares of common stock at an average price of $30.29 pursuant to the Stock Repurchase Plan.

As of June 30, 2025, our total available contingent liquidity, net of current outstanding borrowings, was $2.33 billion, consisting of FHLB advances, Federal Reserve Discount Window and correspondent bank lines of credit.

Asset Quality

Nonperforming assets at June 30, 2025 were $32.9 million, or 0.39% of total assets, an increase of $26.0 million, or 375.7%, compared to $6.9 million, or 0.08% of total assets, at June 30, 2024, due primarily to an increase of $27.4 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. Linked quarter, nonperforming assets increased $0.7 million, or 2.2%, from $32.2 million at March 31, 2025.

The allowance for loan losses totaled $44.4 million, or 0.97% of total loans, at June 30, 2025, compared to $44.6 million, or 0.98% of total loans, at March 31, 2025. The allowance for loan losses was $42.4 million, or 0.92% of total loans, at June 30, 2024. The increase in allowance as a percentage of total loans compared to June 30, 2024 was primarily due to an increase in economic uncertainty forecasted in the CECL model.

For the three months ended June 30, 2025, we recorded a provision for credit losses for loans of $0.7 million, compared to a reversal of provision of $0.9 million and a provision of $42,000 for the three months ended June 30, 2024 and March 31, 2025, respectively. Net charge-offs were $0.9 million for the three months ended June 30, 2025, compared to net charge-offs of $0.3 million for the three months ended June 30, 2024 and March 31, 2025. Net charge-offs were $1.2 million for the six months ended June 30, 2025, compared to net charge-offs of $0.6 million for the six months ended June 30, 2024.

We recorded a reversal of provision for credit losses on off-balance-sheet credit exposures of $19,000 for the three months ended June 30, 2025, compared to provision for losses on off-balance-sheet credit exposures of $0.4 million and $0.7 million for the three months ended June 30, 2024 and March 31, 2025, respectively. We recorded a provision for losses on off-balance-sheet credit exposures of $0.6 million for the six months ended June 30, 2025, compared to a reversal of provision for credit losses on off-balance-sheet credit exposures of $0.7 million for the six months ended June 30, 2024. The balance of the allowance for off-balance-sheet credit exposures was $3.8 million and $3.2 million at June 30, 2025 and 2024, respectively, and is included in other liabilities.

Dividend

Southside Bancshares, Inc. declared a second quarter cash dividend of $0.36 per share on May 8, 2025, which was paid on June 5, 2025, to all shareholders of record as of May 22, 2025.

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

Conference Call

Southside’s management team will host a conference call to discuss its second quarter ended June 30, 2025 financial results on Friday, July 25, 2025 at 11:00 a.m. CDT. The conference call can be accessed by webcast, for listen-only mode, on the company website, https://investors.southside.com, under Events.

Those interested in participating in the question and answer session, or others who prefer to call-in, can register at https://register-conf.media-server.com/register/BIad8374913fda48e3a6a27e230e7c4225 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.

About Southside Bancshares, Inc.

Southside Bancshares, Inc. is a bank holding company with approximately $8.34 billion in assets as of June 30, 2025, that owns 100% of Southside Bank. Southside Bank currently has 53 branches in Texas and operates a network of 71 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 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 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, including the impact of changes in interest rates on our financial projections, models and guidance, and general economic and recessionary concerns, as well as the effects of declines in the real estate market, tariffs or trade wars (including reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services), high unemployment and increasing insurance costs, as well as the financial stress to borrowers as a result of the foregoing, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations, and our ability to manage liquidity in a rapidly changing and unpredictable market.

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

Southside Bancshares, Inc. Consolidated Financial Summary (Unaudited) (Dollars in thousands)
	As of
		2025								2024
	Jun 30,				Mar 31,				Dec 31,				Sep 30,				Jun 30,
ASSETS
Cash and due from banks	$	109,669			$	103,359			$	91,409			$	130,147			$	114,283
Interest earning deposits		260,357				293,364				281,945				333,825				272,469
Federal funds sold		20,069				34,248				52,807				22,325				65,244
Securities available for sale, at estimated fair value		1,457,124				1,457,939				1,533,894				1,408,437				1,405,944
Securities held to maturity, at net carrying value		1,272,906				1,278,330				1,279,234				1,288,403				1,305,975
Total securities		2,730,030				2,736,269				2,813,128				2,696,840				2,711,919
Federal Home Loan Bank stock, at cost		24,384				34,208				33,818				40,291				32,991
Loans held for sale		428				903				1,946				768				1,352
Loans		4,601,933				4,567,239				4,661,597				4,578,048				4,589,365
Less: Allowance for loan losses		(44,421	)			(44,623	)			(44,884	)			(44,276	)			(42,407	)
Net loans		4,557,512				4,522,616				4,616,713				4,533,772				4,546,958
Premises & equipment, net		147,263				142,245				141,648				138,811				138,489
Goodwill		201,116				201,116				201,116				201,116				201,116
Other intangible assets, net		1,333				1,531				1,754				2,003				2,281
Bank owned life insurance		138,826				137,962				138,313				137,489				136,903
Other assets		148,979				135,479				142,851				124,876				133,697
Total assets	$	8,339,966			$	8,343,300			$	8,517,448			$	8,362,263			$	8,357,702
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest bearing deposits	$	1,368,453			$	1,379,641			$	1,357,152			$	1,377,022			$	1,366,924
Interest bearing deposits		5,263,511				5,211,210				5,297,096				5,058,680				5,129,008
Total deposits		6,631,964				6,590,851				6,654,248				6,435,702				6,495,932
Other borrowings and Federal Home Loan Bank borrowings		611,367				691,417				808,352				865,856				763,700
Subordinated notes, net of unamortized debt issuance costs		92,115				92,078				92,042				92,006				91,970
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,277				60,276				60,274				60,273				60,272
Other liabilities		137,043				92,055				90,590				103,172				144,858
Total liabilities		7,532,766				7,526,677				7,705,506				7,557,009				7,556,732
Shareholders’ equity		807,200				816,623				811,942				805,254				800,970
Total liabilities and shareholders’ equity	$	8,339,966			$	8,343,300			$	8,517,448			$	8,362,263			$	8,357,702

Southside Bancshares, Inc. Consolidated Financial Summary (Unaudited) (Dollars in thousands)
	Three Months Ended
		2025								2024
	Jun 30,				Mar 31,				Dec 31,				Sep 30,				Jun 30,
Income Statement:
Total interest and dividend income	$	98,562			$	100,288			$	101,689			$	105,703			$	104,186
Total interest expense		44,296				46,436				47,982				50,239				50,578
Net interest income		54,266				53,852				53,707				55,464				53,608
Provision for (reversal of) credit losses		622				758				1,384				2,389				(485	)
Net interest income after provision for (reversal of) credit losses		53,644				53,094				52,323				53,075				54,093
Noninterest income
Deposit services		6,125				5,829				6,084				6,199				6,157
Net gain (loss) on sale of securities available for sale		—				(554	)			—				(1,929	)			(563	)
Gain (loss) on sale of loans		99				55				138				115				220
Trust fees		1,879				1,765				1,773				1,628				1,456
Bank owned life insurance		833				799				848				857				1,767
Brokerage services		1,219				1,120				1,054				1,068				1,081
Other		1,990				1,209				2,384				233				1,439
Total noninterest income		12,145				10,223				12,281				8,171				11,557
Noninterest expense
Salaries and employee benefits		22,272				22,382				22,960				22,233				21,984
Net occupancy		3,621				3,404				3,629				3,613				3,750
Advertising, travel & entertainment		950				924				884				734				795
ATM expense		405				378				378				412				368
Professional fees		1,401				1,520				1,645				1,206				1,075
Software and data processing		3,027				2,839				2,931				2,951				2,860
Communications		342				383				320				423				410
FDIC insurance		955				947				931				939				977
Amortization of intangibles		198				223				249				278				307
Other		6,086				4,089				4,232				3,543				3,239
Total noninterest expense		39,257				37,089				38,159				36,332				35,765
Income before income tax expense		26,532				26,228				26,445				24,914				29,885
Income tax expense		4,719				4,721				4,659				4,390				5,212
Net income	$	21,813			$	21,507			$	21,786			$	20,524			$	24,673
Common Share Data:
Weighted-average basic shares outstanding		30,234				30,390				30,343				30,286				30,280
Weighted-average diluted shares outstanding		30,308				30,483				30,459				30,370				30,312
Common shares outstanding end of period		30,082				30,410				30,379				30,308				30,261
Earnings per common share
Basic	$	0.72			$	0.71			$	0.72			$	0.68			$	0.81
Diluted		0.72				0.71				0.71				0.68				0.81
Book value per common share		26.83				26.85				26.73				26.57				26.47
Tangible book value per common share		20.10				20.19				20.05				19.87				19.75
Cash dividends paid per common share		0.36				0.36				0.36				0.36				0.36
Selected Performance Ratios:
Return on average assets		1.07	%			1.03	%			1.03	%			0.98	%			1.19	%
Return on average shareholders’ equity		10.73				10.57				10.54				10.13				12.46
Return on average tangible common equity (1)		14.38				14.14				14.12				13.69				16.90
Average yield on earning assets (FTE) (1)		5.25				5.23				5.24				5.51				5.45
Average rate on interest bearing liabilities		2.98				3.03				3.12				3.28				3.32
Net interest margin (FTE) (1)		2.95				2.86				2.83				2.95				2.87
Net interest spread (FTE) (1)		2.27				2.20				2.12				2.23				2.13
Average earning assets to average interest bearing liabilities		129.33				128.10				129.55				128.51				128.62
Noninterest expense to average total assets		1.92				1.78				1.80				1.73				1.72
Efficiency ratio (FTE) (1)		53.70				55.04				54.00				51.90				52.71

(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.

Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands)
	Three Months Ended
		2025								2024
	Jun 30,				Mar 31,				Dec 31,				Sep 30,				Jun 30,
Nonperforming Assets:	$	32,909			$	32,193			$	3,589			$	7,656			$	6,918
Nonaccrual loans		4,998				4,254				3,185				7,254				6,110
Accruing loans past due more than 90 days		—				—				—				—				—
Restructured loans		27,512				27,505				2				—				145
Other real estate owned		380				388				388				388				648
Repossessed assets		19				46				14				14				15
Asset Quality Ratios:
Ratio of nonaccruing loans to:
Total loans		0.11	%			0.09	%			0.07	%			0.16	%			0.13	%
Ratio of nonperforming assets to:
Total assets		0.39				0.39				0.04				0.09				0.08
Total loans		0.72				0.70				0.08				0.17				0.15
Total loans and OREO		0.72				0.70				0.08				0.17				0.15
Ratio of allowance for loan losses to:
Nonaccruing loans		888.78				1,048.97				1,409.23				610.37				694.06
Nonperforming assets		134.98				138.61				1,250.60				578.32				613.00
Total loans		0.97				0.98				0.96				0.97				0.92
Net charge-offs (recoveries) to average loans outstanding		0.08				0.03				0.08				0.04				0.02
Capital Ratios:
Shareholders’ equity to total assets		9.68				9.79				9.53				9.63				9.58
Common equity tier 1 capital		13.36				13.44				13.04				13.07				12.72
Tier 1 risk-based capital		14.41				14.49				14.07				14.12				13.76
Total risk-based capital		16.91				17.01				16.49				16.59				16.16
Tier 1 leverage capital		10.03				9.73				9.67				9.61				9.40
Period end tangible equity to period end tangible assets (1)		7.43				7.54				7.33				7.38				7.33
Average shareholders’ equity to average total assets		9.94				9.75				9.76				9.67				9.52

 

(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.

Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands)
	Three Months Ended
		2025								2024
Loan Portfolio Composition	Jun 30,				Mar 31,				Dec 31,				Sep 30,				Jun 30,
Real Estate Loans:
Construction	$	470,380			$	458,101			$	537,827			$	585,817			$	546,040
1-4 Family Residential		736,108				741,432				740,396				755,406				738,037
Commercial		2,606,072				2,577,229				2,579,735				2,422,612				2,472,771
Commercial Loans		380,612				371,643				363,167				358,854				359,807
Municipal Loans		363,746				371,271				390,968				402,041				416,986
Loans to Individuals		45,015				47,563				49,504				53,318				55,724
Total Loans	$	4,601,933			$	4,567,239			$	4,661,597			$	4,578,048			$	4,589,365
Summary of Changes in Allowances:
Allowance for Securities Held to Maturity
Balance at beginning of period	$	64			$	—			$	—			$	—			$	—
Provision for (reversal of) securities held to maturity		(9	)			64				—				—				—
Balance at end of period	$	55			$	64			$	—			$	—			$	—
Allowance for Loan Losses
Balance at beginning of period	$	44,623			$	44,884			$	44,276			$	42,407			$	43,557
Loans charged-off		(1,194	)			(613	)			(1,232	)			(773	)			(721	)
Recoveries of loans charged-off		342				310				277				365				444
Net loans (charged-off) recovered		(852	)			(303	)			(955	)			(408	)			(277	)
Provision for (reversal of) loan losses		650				42				1,563				2,277				(873	)
Balance at end of period	$	44,421			$	44,623			$	44,884			$	44,276			$	42,407
Allowance for Off-Balance-Sheet Credit Exposures
Balance at beginning of period	$	3,793			$	3,141			$	3,320			$	3,208			$	2,820
Provision for (reversal of) off-balance-sheet credit exposures		(19	)			652				(179	)			112				388
Balance at end of period	$	3,774			$	3,793			$	3,141			$	3,320			$	3,208
Total Allowance for Credit Losses	$	48,250			$	48,480			$	48,025			$	47,596			$	45,615

Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands)
	Six Months Ended
	June 30,
		2025				2024
Income Statement:
Total interest and dividend income	$	198,850			$	206,944
Total interest expense		90,732				99,988
Net interest income		108,118				106,956
Provision for (reversal of) credit losses		1,380				(427	)
Net interest income after provision for (reversal of) credit losses		106,738				107,383
Noninterest income
Deposit services		11,954				12,142
Net gain (loss) on sale of securities available for sale		(554	)			(581	)
Gain (loss) on sale of loans		154				(216	)
Trust fees		3,644				2,792
Bank owned life insurance		1,632				2,551
Brokerage services		2,339				2,095
Other		3,199				2,498
Total noninterest income		22,368				21,281
Noninterest expense
Salaries and employee benefits		44,654				45,097
Net occupancy		7,025				7,112
Advertising, travel & entertainment		1,874				1,745
ATM expense		783				693
Professional fees		2,921				2,229
Software and data processing		5,866				5,716
Communications		725				859
FDIC insurance		1,902				1,920
Amortization of intangibles		421				644
Other		10,175				6,631
Total noninterest expense		76,346				72,646
Income before income tax expense		52,760				56,018
Income tax expense		9,440				9,834
Net income	$	43,320			$	46,184
Common Share Data:
Weighted-average basic shares outstanding		30,311				30,271
Weighted-average diluted shares outstanding		30,397				30,310
Common shares outstanding end of period		30,082				30,261
Earnings per common share
Basic	$	1.43			$	1.52
Diluted		1.42				1.52
Book value per common share		26.83				26.47
Tangible book value per common share		20.10				19.75
Cash dividends paid per common share		0.72				0.72
Selected Performance Ratios:
Return on average assets		1.05	%			1.11	%
Return on average shareholders’ equity		10.65				11.74
Return on average tangible common equity (1)		14.26				15.99
Average yield on earning assets (FTE) (1)		5.24				5.42
Average rate on interest bearing liabilities		3.01				3.27
Net interest margin (FTE) (1)		2.91				2.87
Net interest spread (FTE) (1)		2.23				2.15
Average earning assets to average interest bearing liabilities		128.71				128.16
Noninterest expense to average total assets		1.85				1.74
Efficiency ratio (FTE) (1)		54.36				54.11

 

(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.

Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands)
	Six Months Ended
	June 30,
		2025				2024
Nonperforming Assets:	$	32,909			$	6,918
Nonaccrual loans		4,998				6,110
Accruing loans past due more than 90 days		—				—
Restructured loans		27,512				145
Other real estate owned		380				648
Repossessed assets		19				15
Asset Quality Ratios:
Ratio of nonaccruing loans to:
Total loans		0.11	%			0.13	%
Ratio of nonperforming assets to:
Total assets		0.39				0.08
Total loans		0.72				0.15
Total loans and OREO		0.72				0.15
Ratio of allowance for loan losses to:
Nonaccruing loans		888.78				694.06
Nonperforming assets		134.98				613.00
Total loans		0.97				0.92
Net charge-offs (recoveries) to average loans outstanding		0.05				0.02
Capital Ratios:
Shareholders’ equity to total assets		9.68				9.58
Common equity tier 1 capital		13.36				12.72
Tier 1 risk-based capital		14.41				13.76
Total risk-based capital		16.91				16.16
Tier 1 leverage capital		10.03				9.40
Period end tangible equity to period end tangible assets (1)		7.43				7.33
Average shareholders’ equity to average total assets		9.84				9.43

(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.

Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands)
	Six Months Ended
	June 30,
Loan Portfolio Composition		2025				2024
Real Estate Loans:
Construction	$	470,380			$	546,040
1-4 Family Residential		736,108				738,037
Commercial		2,606,072				2,472,771
Commercial Loans		380,612				359,807
Municipal Loans		363,746				416,986
Loans to Individuals		45,015				55,724
Total Loans	$	4,601,933			$	4,589,365
Summary of Changes in Allowances:
Allowance for Securities Held to Maturity
Balance at beginning of period	$	—			$	—
Provision for (reversal of) securities held to maturity		55				—
Balance at end of period	$	55			$	—
Summary of Changes in Allowances:
Allowance for Loan Losses
Balance at beginning of period	$	44,884			$	42,674
Loans charged-off		(1,807	)			(1,355	)
Recoveries of loans charged-off		652				791
Net loans (charged-off) recovered		(1,155	)			(564	)
Provision for (reversal of) loan losses		692				297
Balance at end of period	$	44,421			$	42,407
Allowance for Off-Balance-Sheet Credit Exposures
Balance at beginning of period	$	3,141			$	3,932
Provision for (reversal of) off-balance-sheet credit exposures		633				(724	)
Balance at end of period	$	3,774			$	3,208
Total Allowance for Credit Losses	$	48,250			$	45,615

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.

Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands)
	Three Months Ended
	June 30, 2025										March 31, 2025
	Average Balance				Interest			Average Yield/Rate (3)			Average Balance				Interest			Average Yield/Rate (3)
ASSETS
Loans (1)	$	4,519,668			$	67,798		6.02	%		$	4,625,902			$	68,160		5.98	%
Loans held for sale		1,108				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 investments		31,169				524		6.74	%			43,285				483		4.53	%
Interest earning deposits		259,617				2,753		4.25	%			319,889				3,370		4.27	%
Federal funds sold		27,778				308		4.45	%			43,813				478		4.42	%
Total earning assets		7,709,799				100,995		5.25	%			7,958,424				102,641		5.23	%
Cash and due from banks		84,419										89,703
Accrued interest and other assets		452,573										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 deposit		1,407,017				14,905		4.25	%			1,336,815				14,406		4.37	%
Interest bearing demand accounts		3,311,330				21,071		2.55	%			3,406,342				21,412		2.55	%
Total interest bearing deposits		5,314,472				37,427		2.82	%			5,337,110				37,247		2.83	%
Federal Home Loan Bank borrowings		394,119				3,721		3.79	%			614,897				5,837		3.85	%
Subordinated notes, net of unamortized debt issuance costs		92,097				935		4.07	%			92,060				932		4.11	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,276				1,015		6.75	%			60,275				1,014		6.82	%
Repurchase agreements		72,295				634		3.52	%			75,291				666		3.59	%
Other borrowings		28,022				564		8.07	%			33,061				740		9.08	%
Total interest bearing liabilities		5,961,281				44,296		2.98	%			6,212,694				46,436		3.03	%
Noninterest bearing deposits		1,339,463										1,334,933
Accrued expenses and other liabilities		85,827										88,450
Total liabilities		7,386,571										7,636,077
Shareholders’ equity		815,473										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.

Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands)
	Three Months Ended
	December 31, 2024										September 30, 2024
	Average Balance				Interest			Average Yield/Rate (3)			Average Balance				Interest			Average Yield/Rate (3)
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 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 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.

Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands)
	Three Months Ended
	June 30, 2024
	Average Balance				Interest			Average Yield/Rate (3)
ASSETS
Loans (1)	$	4,595,980			$	70,293		6.15	%
Loans held for sale		1,489				24		6.48	%
Securities:
Taxable investment securities (2)		783,856				7,009		3.60	%
Tax-exempt investment securities (2)		1,254,097				12,761		4.09	%
Mortgage-backed and related securities (2)		830,504				11,084		5.37	%
Total securities		2,868,457				30,854		4.33	%
Federal Home Loan Bank stock, at cost, and equity investments		40,467				573		5.69	%
Interest earning deposits		300,047				4,105		5.50	%
Federal funds sold		75,479				1,021		5.44	%
Total earning assets		7,881,919				106,870		5.45	%
Cash and due from banks		110,102
Accrued interest and other assets		424,323
Less: Allowance for loan losses		(43,738	)
Total assets	$	8,372,606
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	604,753				1,454		0.97	%
Certificates of deposit		1,020,099				11,630		4.59	%
Interest bearing demand accounts		3,513,068				25,382		2.91	%
Total interest bearing deposits		5,137,920				38,466		3.01	%
Federal Home Loan Bank borrowings		606,851				6,455		4.28	%
Subordinated notes, net of unamortized debt issuance costs		92,017				936		4.09	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,271				1,171		7.81	%
Repurchase agreements		88,007				955		4.36	%
Other borrowings		143,169				2,595		7.29	%
Total interest bearing liabilities		6,128,235				50,578		3.32	%
Noninterest bearing deposits		1,346,274
Accrued expenses and other liabilities		101,399
Total liabilities		7,575,908
Shareholders’ equity		796,698
Total liabilities and shareholders’ equity	$	8,372,606
Net interest income (FTE)					$	56,292
Net interest margin (FTE)								2.87	%
Net interest spread (FTE)								2.13	%

 

(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, 2024, loans totaling $6.1 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.

Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands)
	Six Months Ended
	June 30, 2025										June 30, 2024
	Average Balance				Interest			Average Yield/Rate			Average Balance				Interest			Average Yield/Rate
ASSETS
Loans (1)	$	4,572,492			$	135,958		6.00	%		$	4,577,791			$	139,142		6.11	%
Loans held for sale		931				27		5.85	%			5,162				42		1.64	%
Securities:
Taxable investment securities (2)		742,375				12,568		3.41	%			782,139				13,976		3.59	%
Tax-exempt investment securities (2)		1,132,736				20,604		3.67	%			1,270,010				25,929		4.11	%
Mortgage-backed and related securities (2)		1,022,360				26,563		5.24	%			797,608				21,203		5.35	%
Total securities		2,897,471				59,735		4.16	%			2,849,757				61,108		4.31	%
Federal Home Loan Bank stock, at cost, and equity investments		37,194				1,007		5.46	%			40,265				906		4.52	%
Interest earning deposits		289,586				6,123		4.26	%			340,114				9,307		5.50	%
Federal funds sold		35,751				786		4.43	%			69,039				1,859		5.41	%
Total earning assets		7,833,425				203,636		5.24	%			7,882,128				212,364		5.42	%
Cash and due from banks		87,046										112,241
Accrued interest and other assets		455,245										432,904
Less: Allowance for loan losses		(44,925	)									(43,356	)
Total assets	$	8,330,791									$	8,383,917
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	595,045				2,880		0.98	%		$	604,641				2,878		0.96	%
Certificates of deposit		1,372,110				29,311		4.31	%			981,023				21,971		4.50	%
Interest bearing demand accounts		3,358,573				42,483		2.55	%			3,574,001				51,815		2.92	%
Total interest bearing deposits		5,325,728				74,674		2.83	%			5,159,665				76,664		2.99	%
Federal Home Loan Bank borrowings		503,898				9,558		3.83	%			606,942				12,405		4.11	%
Subordinated notes, net of unamortized debt issuance costs		92,079				1,867		4.09	%			92,956				1,892		4.09	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,275				2,029		6.79	%			60,271				2,346		7.83	%
Repurchase agreements		73,785				1,300		3.55	%			90,092				1,922		4.29	%
Other borrowings		30,528				1,304		8.61	%			140,228				4,759		6.82	%
Total interest bearing liabilities		6,086,293				90,732		3.01	%			6,150,154				99,988		3.27	%
Noninterest bearing deposits		1,337,210										1,342,329
Accrued expenses and other liabilities		87,131										100,558
Total liabilities		7,510,634										7,593,041
Shareholders’ equity		820,157										790,876
Total liabilities and shareholders’ equity	$	8,330,791									$	8,383,917
Net interest income (FTE)					$	112,904									$	112,376
Net interest margin (FTE)								2.91	%									2.87	%
Net interest spread (FTE)								2.23	%									2.15	%

(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, 2025 and 2024, loans totaling $5.0 million and $6.1 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.

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

Southside Bancshares, Inc. Non-GAAP Reconciliation (Unaudited) (Dollars and shares in thousands, except per share data)
		Three Months Ended																				Six Months Ended
			2025								2024												2025				2024
		Jun 30,				Mar 31,				Dec 31,				Sep 30,				Jun 30,				Jun 30,				Jun 30,
Reconciliation of return on average common equity to return on average tangible common equity:
Net income		$	21,813			$	21,507			$	21,786			$	20,524			$	24,673			$	43,320			$	46,184
After-tax amortization expense			157				176				196				220				243				333				509
Adjusted net income available to common shareholders		$	21,970			$	21,683			$	21,982			$	20,744			$	24,916			$	43,653			$	46,693
Average shareholders’ equity		$	815,473			$	824,893			$	822,234			$	806,230			$	796,698			$	820,157			$	790,876
Less: Average intangibles for the period			(202,569	)			(202,784	)			(203,020	)			(203,288	)			(203,581	)			(202,676	)			(203,745	)
Average tangible shareholders’ equity		$	612,904			$	622,109			$	619,214			$	602,942			$	593,117			$	617,481			$	587,131
Return on average tangible common equity			14.38	%			14.14	%			14.12	%			13.69	%			16.90	%			14.26	%			15.99	%
Reconciliation of book value per share to tangible book value per share:
Common equity at end of period		$	807,200			$	816,623			$	811,942			$	805,254			$	800,970			$	807,200			$	800,970
Less: Intangible assets at end of period			(202,449	)			(202,647	)			(202,870	)			(203,119	)			(203,397	)			(202,449	)			(203,397	)
Tangible common shareholders’ equity at end of period		$	604,751			$	613,976			$	609,072			$	602,135			$	597,573			$	604,751			$	597,573
Total assets at end of period		$	8,339,966			$	8,343,300			$	8,517,448			$	8,362,263			$	8,357,702			$	8,339,966			$	8,357,702
Less: Intangible assets at end of period			(202,449	)			(202,647	)			(202,870	)			(203,119	)			(203,397	)			(202,449	)			(203,397	)
Tangible assets at end of period		$	8,137,517			$	8,140,653			$	8,314,578			$	8,159,144			$	8,154,305			$	8,137,517			$	8,154,305
Period end tangible equity to period end tangible assets			7.43	%			7.54	%			7.33	%			7.38	%			7.33	%			7.43	%			7.33	%
Common shares outstanding end of period			30,082				30,410				30,379				30,308				30,261				30,082				30,261
Tangible book value per common share		$	20.10			$	20.19			$	20.05			$	19.87			$	19.75			$	20.10			$	19.75
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)		$	54,266			$	53,852			$	53,707			$	55,464			$	53,608			$	108,118			$	106,956
Tax-equivalent adjustments:
Loans			565				581				598				608				633				1,146				1,289
Tax-exempt investment securities			1,868				1,772				1,935				2,012				2,051				3,640				4,131
Net interest income (FTE) (1)			56,699				56,205				56,240				58,084				56,292				112,904				112,376
Noninterest income			12,145				10,223				12,281				8,171				11,557				22,368				21,281
Nonrecurring income (2)			—				554				(25	)			2,797				(576	)			554				(558	)
Total revenue		$	68,844			$	66,982			$	68,496			$	69,052			$	67,273			$	135,826			$	133,099
Noninterest expense		$	39,257			$	37,089			$	38,159			$	36,332			$	35,765			$	76,346			$	72,646
Pre-tax amortization expense			(198	)			(223	)			(249	)			(278	)			(307	)			(421	)			(644	)
Nonrecurring expense (3)			(2,090	)			(1	)			(919	)			(219	)			2				(2,091	)			19
Adjusted noninterest expense		$	36,969			$	36,865			$	36,991			$	35,835			$	35,460			$	73,834			$	72,021
Efficiency ratio			55.67	%			57.04	%			56.08	%			53.94	%			54.90	%			56.34	%			56.41	%
Efficiency ratio (FTE) (1)			53.70	%			55.04	%			54.00	%			51.90	%			52.71	%			54.36	%			54.11	%
Average earning assets		$	7,709,799			$	7,958,424			$	7,913,371			$	7,823,026			$	7,881,919			$	7,833,425			$	7,882,128
Net interest margin			2.82	%			2.74	%			2.70	%			2.82	%			2.74	%			2.78	%			2.73	%
Net interest margin (FTE) (1)			2.95	%			2.86	%			2.83	%			2.95	%			2.87	%			2.91	%			2.87	%
Net interest spread			2.15	%			2.08	%			1.99	%			2.10	%			2.00	%			2.11	%			2.01	%
Net interest spread (FTE) (1)			2.27	%			2.20	%			2.12	%			2.23	%			2.13	%			2.23	%			2.15	%

(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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