Southside Bancshares, Inc. Announces Financial Results for the Third Quarter Ended September 30, 2026

• Third quarter net income of $28.0 million;
• Third quarter earnings per diluted common share of $0.93;
• Net interest margin and tax-equivalent net interest margin⁽¹⁾ linked quarter both increased 12 basis points to 2.92% and 3.02%, respectively;
• Annualized return on third quarter average assets of 1.27%;
• Annualized return on third quarter average shareholders’ equity of 12.55% and average tangible common equity⁽¹⁾ of 16.31%; and
• Nonperforming assets remain low at 0.18% of total assets.

TYLER, Texas--(BUSINESS WIRE)--Southside Bancshares, Inc. (“Southside” or the “Company”) (NYSE: SBSI) today reported its financial results for the quarter ended September 30, 2026.

“We reported excellent financial results for the third quarter ended September 30, 2026, highlighted by earnings per diluted common share of $0.93, a return on average assets of 1.27% and a return on average tangible common equity of 16.31%,” stated Keith Donahoe, President and Chief Executive Officer of Southside. “Linked quarter net interest income increased $3.0 million and the net interest margin⁽¹⁾ increased 12 basis points to 3.02%. Noninterest income declined for the quarter; however, we continue to experience increases in trust fees, largely driven by a 10% year-to-date growth in assets under management, as well as increases in brokerage fees. Asset quality metrics remain solid with declining classified loans and a nonperforming assets to total assets ratio of 0.18%.”

Operating Results for the Three Months Ended September 30, 2026

Net income was $28.0 million for the three months ended September 30, 2026, compared to $4.9 million for the same period in 2025, an increase of $23.1 million, or 469.4%. Earnings per diluted common share were $0.93 for the three months ended September 30, 2026, compared to $0.16 for the same period in 2025, an increase of $0.77, or 481.3%. The increase in net income was driven by the $24.4 million net loss on sale of available for sale (“AFS”) securities during the third quarter of 2025 and, to a lesser extent, increases in net interest income and noninterest income and a decrease in provision for credit losses, partially offset by increases in income tax and noninterest expense. Annualized returns on average assets and average shareholders’ equity for the three months ended September 30, 2026 were 1.27% and 12.55%, respectively, compared to 0.23% and 2.40%, respectively, for the three months ended September 30, 2025. Our efficiency ratio and tax-equivalent efficiency ratio⁽¹⁾ were 53.02% and 51.55%, respectively, for the three months ended September 30, 2026, compared to 54.87% and 52.99%, respectively, for the three months ended September 30, 2025, and 54.42% and 52.96%, respectively, for the three months ended June 30, 2026.

Net interest income for the three months ended September 30, 2026 was $60.3 million, an increase of $4.6 million, or 8.2%, compared to the same period in 2025. The increase in net interest income was primarily due to an increase in average balance of our interest earning assets and a decrease in the average rate paid on our interest bearing liabilities, partially offset by an increase in the average balance of our interest bearing liabilities and a change in the mix of our interest earning assets. Linked quarter, net interest income increased $3.0 million, or 5.2%, compared to $57.3 million for the three months ended June 30, 2026, due primarily to an increase in the average yield of our interest earning assets and, to a lesser extent, an additional day of net interest income in the third quarter ending September 30, 2026 compared to the second quarter ending June 30, 2026.

Our net interest margin and tax-equivalent net interest margin⁽¹⁾ increased to 2.92% and 3.02%, respectively, for the three months ended September 30, 2026, compared to 2.80% and 2.90%, respectively, for the three months ended June 30, 2026, and from 2.81% and 2.94%, respectively, for the same period in 2025.

Noninterest income, excluding the net losses on sales of AFS securities, was $13.7 million and $12.4 million for the three months ended September 30, 2026 and 2025, respectively, an increase of $1.3 million, or 10.7%. The increase was due to increases in trust fees, deposit services and brokerage services income. On a linked quarter basis, noninterest income decreased $0.3 million, or 1.9%, compared to the three months ended June 30, 2026, primarily due to decreases in bank owned life insurance (“BOLI”) income and other noninterest income, partially offset by increases in trust fees, deposit services and brokerage services income during the three months ended September 30, 2026.

Noninterest expense increased $1.5 million, or 4.0%, to $39.0 million for the three months ended September 30, 2026, compared to $37.5 million for the same period in 2025, primarily due to increases in salaries and employee benefits and software and data processing expense. On a linked quarter basis, noninterest expense increased by $0.3 million, or 0.9%, compared to the three months ended June 30, 2026. The increase was primarily due to an increase in salaries and employee benefits expense and advertising, travel and entertainment, partially offset by a decrease in professional fees and other noninterest expense.

Income tax expense increased $6.1 million, or 3,224.9%, for the three months ended September 30, 2026, compared to the same period in 2025. On a linked quarter basis, income tax expense increased $0.5 million, or 9.4%. Our effective tax rate (“ETR”) increased to 18.3% for the three months ended September 30, 2026, compared to 3.7% for the three months ended September 30, 2025 and 17.6% for the three months ended June 30, 2026. The higher ETR for the three months ended September 30, 2026 compared to the same period in 2025 was 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. On a linked quarter basis, the higher ETR was primarily a result of a decrease in net tax-exempt income as a percentage of pre-tax income, an increase in state income tax expense as a percentage of pre-tax income and a discrete tax benefit recorded in the second quarter in connection with equity award transactions.

Operating Results for the Nine Months Ended September 30, 2026

Net income was $78.1 million for the nine months ended September 30, 2026, compared to $48.2 million for the same period in 2025, an increase of $29.8 million, or 61.9%. Earnings per diluted common share were $2.61 for the nine months ended September 30, 2026, compared to $1.59 for the same period in 2025, an increase of $1.02, or 64.2%. The increase in net income was driven by the net loss on the sale of AFS securities during the third quarter of 2025 and, to a lesser extent, increases in net interest income and noninterest income and a decrease in provision for credit losses, partially offset by increases in income tax and noninterest expense. Returns on average assets and average shareholders’ equity for the nine months ended September 30, 2026 were 1.20% and 11.96%, respectively, compared to 0.77% and 7.89%, respectively, for the nine months ended September 30, 2025. Our efficiency ratio and tax-equivalent efficiency ratio⁽¹⁾ were 54.60% and 53.13%, respectively, for the nine months ended September 30, 2026, compared to 55.84% and 53.89%, respectively, for the nine months ended September 30, 2025.

Net interest income was $175.3 million for the nine months ended September 30, 2026, compared to $163.8 million for the same period in 2025, an increase of $11.5 million, or 7.0%, due to an increase in the average balance of our interest earning assets and a decrease in the average rate paid on our interest bearing liabilities, partially offset by an increase in the average balance of our interest bearing liabilities and a decrease in the yield on our interest earning assets.

Our net interest margin and tax-equivalent net interest margin⁽¹⁾ increased to 2.88% and 2.97%, respectively, for the nine months ended September 30, 2026, compared to 2.79% and 2.92%, respectively, for the same period in 2025.

Noninterest income, excluding the net losses on sale of AFS securities, was $40.3 million for the nine months ended September 30, 2026, compared to $35.3 million for the same period in 2025, an increase of $5.0 million, or 14.2%. The increase was due to increases in each noninterest income category with the exception of gain on sale of loans.

Noninterest expense was $118.3 million for the nine months ended September 30, 2026, compared to $113.9 million for the same period in 2025, an increase of $4.4 million, or 3.9%. The increase was primarily due to increases in salaries and employee benefits expense, software and data processing expense and loss on redemption of subordinated notes, partially offset by a decrease in other noninterest expense.

Income tax expense increased $7.4 million, or 77.2%, for the nine months ended September 30, 2026, compared to the same period in 2025. Our ETR was approximately 17.9% and 16.6% for the nine months ended September 30, 2026 and 2025, respectively. The higher ETR for the nine months ended September 30, 2026, as compared to the same period in 2025, was primarily due to a decrease in net tax-exempt income as a percentage of pre-tax income.

Balance Sheet Data

At September 30, 2026, Southside had $8.87 billion in total assets, compared to $8.51 billion at December 31, 2025 and $8.38 billion at September 30, 2025.

Loans at September 30, 2026 were $4.96 billion, an increase of $193.4 million, or 4.1%, compared to $4.77 billion at September 30, 2025. Linked quarter, loans increased $9.1 million, or 0.2%, due to increases of $42.6 million in commercial loans, $10.1 million in municipal loans, $8.8 million in 1-4 family residential loans and $7.8 million in commercial real estate loans. These increases were partially offset by decreases of $57.1 million in construction loans, $1.8 million in commercial owner-occupied loans and $1.3 million in loans to individuals.

Securities at September 30, 2026 were $2.83 billion, an increase of $275.2 million, or 10.8%, compared to $2.56 billion at September 30, 2025. Linked quarter, securities increased $49.3 million, or 1.8%, from $2.78 billion at June 30, 2026.

Deposits at September 30, 2026 were $6.01 billion, a decrease of $947.8 million, or 13.6%, compared to $6.96 billion at September 30, 2025, primarily due to a decrease of $841.3 million in brokered deposits and a decrease of $154.1 million in public funds deposits, partially offset by an increase of $47.6 million in retail deposits. Linked quarter, deposits decreased $155.6 million, or 2.5%, compared to $6.17 billion at June 30, 2026, due to a decrease in public fund deposits of $200.2 million and a decrease in commercial and retail deposits of $4.8 million, partially offset by an increase in brokered deposits of $49.4 million.

At September 30, 2026, we had 178,615 total deposit accounts with an average balance of $33,000. Our estimated uninsured deposits were 41.8% of total deposits as of September 30, 2026. When excluding affiliate deposits (Southside-owned deposits) and public fund deposits (all collateralized), our total estimated deposits without insurance or collateral was 26.8% as of September 30, 2026. Our noninterest bearing deposits represent approximately 23.3% of total deposits. Linked quarter, our cost of interest bearing deposits decreased four basis points from 2.49% in the prior quarter to 2.45%. Linked quarter, our cost of total deposits decreased five basis points from 1.94% in the prior quarter to 1.89%.

Our cost of interest bearing deposits decreased 30 basis points, from 2.83% for the nine months ended September 30, 2025, to 2.53% for the nine months ended September 30, 2026. Our cost of total deposits decreased 27 basis points, from 2.26% for the nine months ended September 30, 2025, to 1.99% for the nine months ended September 30, 2026.

Capital Resources and Liquidity

Our capital ratios and contingent liquidity sources remain solid. During the third quarter ended September 30, 2026, we did not repurchase any shares of our outstanding common stock 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 September 30, 2026, approximately 0.8 million authorized shares remained available for repurchase pursuant to the Plan. Subsequent to September 30, 2026 and through October 26, 2026, we purchased 36,474 shares at an average price of $30.00 pursuant to the Plan.

As of September 30, 2026, our total available contingent liquidity, net of current outstanding borrowings, was $1.86 billion, consisting of FHLB advances, Federal Reserve Discount Window and correspondent bank lines of credit.

Asset Quality

Nonperforming assets at September 30, 2026 were $15.8 million, or 0.18% of total assets, an increase of $6.0 million, or 61.6%, from $9.8 million, or 0.11% of total assets, at June 30, 2026, due largely to a $5.2 million commercial real estate loan past due over 90 days in the third quarter of 2026 that subsequently paid off in full on October 1, 2026. Nonperforming assets decreased $19.8 million, or 55.5%, compared to $35.6 million, or 0.42% of total assets, at September 30, 2025, due primarily to a decrease of $27.5 million in restructured loans. The decrease in restructured loans was due to the payoff of a $27.5 million restructured commercial real estate loan in the first quarter of 2026 that was originally restructured with an extension of maturity in the first quarter of 2025 to allow for an extended lease up period. Classified loans totaled $245.2 million on September 30, 2026, compared to $260.1 million at June 30, 2026 and $176.9 million at December 31, 2025.

The allowance for loan losses totaled $46.9 million, or 0.94% of total loans, at September 30, 2026, compared to $45.6 million, or 0.92% of total loans, at June 30, 2026. The allowance for loan losses was $45.3 million, or 0.95% of total loans, at September 30, 2025.

For the three months ended September 30, 2026, we recorded a provision for credit losses for loans of $0.9 million, compared to $1.7 million for the three months ended September 30, 2025, and a reversal of provision for credit losses for loans of $24,000 for the three months ended June 30, 2026. Net recoveries were $0.3 million for the three months ended September 30, 2026, compared to net charge-offs of $0.8 million and $0.3 million for the three months ended September 30, 2025 and June 30, 2026, respectively. We recorded a provision for credit losses for loans of $1.9 million and $2.4 million for the nine months ended September 30, 2026 and 2025, respectively. Net charge-offs were $0.2 million for the nine months ended September 30, 2026, compared to $2.0 million for the nine months ended September 30, 2025.

We recorded a reversal of provision for credit losses on off-balance-sheet credit exposures of $0.2 million and $0.6 million for the three months ended September 30, 2026 and 2025, respectively, compared to a provision of $0.1 million for the three months ended June 30, 2026. The balance of the allowance for off-balance-sheet credit exposures was $3.5 million and $3.1 million at September 30, 2026 and 2025, respectively, and is included in other liabilities. We recorded a provision for credit losses for off-balance-sheet credit exposures of $0.3 million and $8,000 for the nine months ended September 30, 2026 and 2025, respectively.

Dividend

Southside Bancshares, Inc. declared a third quarter cash dividend of $0.37 per share on August 6, 2026, which was paid on September 3, 2026, to all shareholders of record as of August 20, 2026.

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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 third quarter ended September 30, 2026 financial results on Thursday, October 29, 2026 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://events.q4inc.com/analyst/284984310?pwd=CfM4gE30 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 return on average tangible common equity and 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.

Return on average tangible common equity. Return on average tangible common equity is a non-GAAP measure that calculates the return available to common shareholders without the impact of intangible assets and their related amortization, thereby allowing management to evaluate the performance of the business consistently.

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 that (i) adjusting return on average shareholders’ equity for the impact of intangible assets and their related amortization and (ii) adjusting net interest income, net interest margin and net interest spread to a fully taxable-equivalent basis are standard practices 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 $8.87 billion in assets as of September 30, 2026, that owns 100% of Southside Bank. Southside Bank currently has 55 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 [phone], or [e-mail].

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, including higher energy and gas prices, 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, including risks related to potential acquisitions; 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, including the use of artificial intelligence; 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, 2025, 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
	2026									2025
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
ASSETS
Cash and due from banks	$	69,245		$	74,731		$	72,997		$	81,080		$	90,519
Interest earning deposits		316,002			301,916			296,986			302,906			365,263
Federal funds sold		51,138			20,609			17,490			5,800			11,130
Securities available for sale, at estimated fair value		1,623,499			1,569,836			1,647,379			1,456,219			1,292,431
Securities held to maturity, at net carrying value		1,207,495			1,211,900			1,220,641			1,247,477			1,263,401
Total securities		2,830,994			2,781,736			2,868,020			2,703,696			2,555,832
Federal Home Loan Bank stock, at cost		43,659			45,277			16,372			14,062			9,359
Loans held for sale		969			341			1,478			1,332			497
Loans		4,958,689			4,949,567			4,946,161			4,817,991			4,765,289
Less: Allowance for loan losses		(46,858	)		(45,595	)		(45,963	)		(45,100	)		(45,294	)
Net loans		4,911,831			4,903,972			4,900,198			4,772,891			4,719,995
Premises & equipment, net		156,377			156,885			154,318			152,293			147,187
Goodwill		201,116			201,116			201,116			201,116			201,116
Other intangible assets, net		650			759			880			1,012			1,161
Bank owned life insurance		147,206			146,263			145,991			145,125			139,697
Other assets		135,871			130,109			126,336			133,277			141,404
Total assets	$	8,865,058		$	8,763,714		$	8,802,182		$	8,514,590		$	8,383,160
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest bearing deposits	$	1,403,933		$	1,406,487		$	1,374,190		$	1,433,129		$	1,411,764
Interest bearing deposits		4,609,854			4,762,908			5,500,303			5,432,030			5,549,823
Total deposits		6,013,787			6,169,395			6,874,493			6,865,159			6,961,587
Other borrowings and Federal Home Loan Bank borrowings		1,695,355			1,415,635			671,466			419,793			200,706
Subordinated notes, net of unamortized debt issuance costs		147,635			147,587			147,541			239,678			239,601
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,283			60,282			60,280			60,279			60,278
Other liabilities		105,114			88,351			193,540			82,066			86,138
Total liabilities		8,022,174			7,881,250			7,947,320			7,666,975			7,548,310
Shareholders' equity		842,884			882,464			854,862			847,615			834,850
Total liabilities and shareholders' equity	$	8,865,058		$	8,763,714		$	8,802,182		$	8,514,590		$	8,383,160

Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars and shares in thousands, except per share data)
	Three Months Ended
	2026									2025
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
Income Statement:
Total interest and dividend income	$	106,870		$	103,920		$	102,256		$	102,328		$	101,896
Total interest expense		46,574			46,586			44,567			45,080			46,178
Net interest income		60,296			57,334			57,689			57,248			55,718
Provision for (reversal of) credit losses		747			83			1,410			581			1,092
Net interest income after provision for (reversal of) credit losses		59,549			57,251			56,279			56,667			54,626
Noninterest income
Deposit services		6,607			6,389			5,931			6,415			6,069
Net gain (loss) on sale of securities available for sale		—			—			—			(7,321	)		(24,395	)
Gain (loss) on sale of loans		96			56			118			122			164
Trust fees		2,663			2,404			2,202			2,148			2,081
Bank owned life insurance		944			1,475			986			1,134			871
Brokerage services		1,540			1,403			1,363			1,348			1,172
Other		1,883			2,277			1,996			1,732			2,048
Total noninterest income (loss)		13,733			14,004			12,596			5,578			(11,990	)
Noninterest expense
Salaries and employee benefits		23,742			22,973			24,332			22,816			22,803
Net occupancy		3,556			3,707			3,459			3,715			3,761
Advertising, travel & entertainment		1,194			876			1,043			1,147			907
ATM expense		332			325			430			319			444
Professional fees		1,345			1,662			1,485			1,343			1,451
Software and data processing		3,317			3,151			3,097			2,859			2,770
Communications		292			281			287			273			321
FDIC insurance		993			955			937			937			920
Amortization of intangibles		109			121			132			149			172
Loss on redemption of subordinated notes		—			—			791			—			—
Other		4,142			4,625			4,583			3,919			3,985
Total noninterest expense		39,022			38,676			40,576			37,477			37,534
Income before income tax expense		34,260			32,579			28,299			24,768			5,102
Income tax expense		6,284			5,742			5,040			3,781			189
Net income	$	27,976		$	26,837		$	23,259		$	20,987		$	4,913
Common Share Data:
Weighted-average basic shares outstanding		29,810			29,769			29,734			29,863			30,067
Weighted-average diluted shares outstanding		29,905			29,877			29,832			29,943			30,135
Common shares outstanding end of period		29,817			29,803			29,752			29,723			30,066
Earnings per common share
Basic	$	0.94		$	0.90		$	0.78		$	0.70		$	0.16
Diluted		0.93			0.90			0.78			0.70			0.16
Book value per common share		28.27			29.61			28.73			28.52			27.77
Tangible book value per common share		21.50			22.84			21.94			21.72			21.04
Cash dividends paid per common share		0.37			0.36			0.36			0.36			0.36
Selected Performance Ratios:
Return on average assets		1.27	%		1.23	%		1.10	%		0.99	%		0.23	%
Return on average shareholders’ equity		12.55			12.33			10.96			9.85			2.40
Return on average tangible common equity ^(1)		16.31			16.09			14.39			13.03			3.28
Average yield on earning assets (FTE) ^(1)		5.27			5.17			5.26			5.24			5.27
Average rate on interest bearing liabilities		2.91			2.91			2.88			2.93			3.01
Net interest margin (FTE) ^(1)		3.02			2.90			3.01			2.98			2.94
Net interest spread (FTE) ^(1)		2.36			2.26			2.38			2.31			2.26
Average earning assets to average interest bearing liabilities		129.15			128.08			127.84			129.69			129.13
Noninterest expense to average total assets		1.77			1.77			1.92			1.76			1.78
Efficiency ratio (FTE) ^(1)		51.55			52.96			54.98			52.28			52.99

(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
	2026									2025
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
Nonperforming Assets:	$	15,835		$	9,798		$	9,728		$	38,243		$	35,608
Nonaccrual loans		10,304			9,630			9,559			10,486			7,955
Accruing loans past due more than 90 days		5,155			—			—			—			—
Restructured loans		45			47			34			27,509			27,501
Other real estate owned		331			116			128			248			128
Repossessed assets		—			5			7			—			24
Asset Quality Ratios:
Ratio of nonaccruing loans to:
Total loans		0.21	%		0.19	%		0.19	%		0.22	%		0.17	%
Ratio of nonperforming assets to:
Total assets		0.18			0.11			0.11			0.45			0.42
Total loans		0.32			0.20			0.20			0.79			0.75
Total loans and OREO		0.32			0.20			0.20			0.79			0.75
Ratio of allowance for loan losses to:
Nonaccruing loans		454.76			473.47			480.83			430.10			569.38
Nonperforming assets		295.91			465.35			472.48			117.93			127.20
Total loans		0.94			0.92			0.93			0.94			0.95
Net charge-offs (recoveries) to average loans outstanding		(0.03	)		0.03			0.01			0.07			0.07
Capital Ratios:
Shareholders’ equity to total assets		9.51			10.07			9.71			9.95			9.96
Common equity tier 1 capital		13.12			12.90			12.68			12.87			12.97
Tier 1 risk-based capital		14.08			13.87			13.66			13.88			13.99
Total risk-based capital		17.35			17.14			16.95			18.54			19.01
Tier 1 leverage capital		9.96			9.74			9.74			9.72			9.78
Period end tangible equity to period end tangible assets^(1)		7.40			7.95			7.59			7.77			7.73
Average shareholders’ equity to average total assets		10.13			9.97			10.02			10.00			9.72

(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
	2026									2025
Loan Portfolio Composition	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
Real Estate Loans:
Construction	$	542,996		$	600,080		$	641,818		$	548,570		$	519,528
1-4 Family Residential		724,897			716,099			717,298			724,354			730,061
Commercial Owner-Occupied		360,611			362,390			340,898			319,536			336,278
Commercial Real Estate		2,416,412			2,408,573			2,412,523			2,393,280			2,352,434
Commercial Loans		510,057			467,506			456,896			444,720			429,952
Municipal Loans		367,711			357,568			337,089			346,720			353,324
Loans to Individuals		36,005			37,351			39,639			40,811			43,712
Total Loans	$	4,958,689		$	4,949,567		$	4,946,161		$	4,817,991		$	4,765,289
Summary of Changes in Allowances:
Allowance for Securities Held to Maturity
Balance at beginning of period	$	25		$	25		$	25		$	55		$	55
Provision for (reversal of) securities held to maturity		(1	)		—			—			(30	)		—
Balance at end of period	$	24		$	25		$	25		$	25		$	55
Allowance for Loan Losses
Balance at beginning of period	$	45,595		$	45,963		$	45,100		$	45,294		$	44,421
Loans charged-off		(727	)		(858	)		(680	)		(1,115	)		(1,335	)
Recoveries of loans charged-off		1,044			514			529			327			491
Net loans (charged-off) recovered		317			(344	)		(151	)		(788	)		(844	)
Provision for (reversal of) loan losses		946			(24	)		1,014			594			1,717
Balance at end of period	$	46,858		$	45,595		$	45,963		$	45,100		$	45,294
Allowance for Off-Balance-Sheet Credit Exposures
Balance at beginning of period	$	3,669		$	3,562		$	3,166		$	3,149		$	3,774
Provision for (reversal of) off-balance-sheet credit exposures		(198	)		107			396			17			(625	)
Balance at end of period	$	3,471		$	3,669		$	3,562		$	3,166		$	3,149
Total Allowance for Credit Losses	$	50,353		$	49,289		$	49,550		$	48,291		$	48,498

Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands)
	Nine Months Ended
	September 30,
		2026			2025
Income Statement:
Total interest and dividend income	$	313,046		$	300,746
Total interest expense		137,727			136,910
Net interest income		175,319			163,836
Provision for (reversal of) credit losses		2,240			2,472
Net interest income after provision for (reversal of) credit losses		173,079			161,364
Noninterest income
Deposit services		18,927			18,023
Net gain (loss) on sale of securities available for sale		—			(24,949	)
Gain (loss) on sale of loans		270			318
Trust fees		7,269			5,725
Bank owned life insurance		3,405			2,503
Brokerage services		4,306			3,511
Other		6,156			5,247
Total noninterest income (loss)		40,333			10,378
Noninterest expense
Salaries and employee benefits		71,047			67,457
Net occupancy		10,722			10,786
Advertising, travel & entertainment		3,113			2,781
ATM expense		1,087			1,227
Professional fees		4,492			4,372
Software and data processing		9,565			8,636
Communications		860			1,046
FDIC insurance		2,885			2,822
Amortization of intangibles		362			593
Loss on redemption of subordinated notes		791			—
Other		13,350			14,160
Total noninterest expense		118,274			113,880
Income before income tax expense		95,138			57,862
Income tax expense		17,066			9,629
Net income	$	78,072		$	48,233
Common Share Data:
Weighted-average basic shares outstanding		29,772			30,229
Weighted-average diluted shares outstanding		29,881			30,316
Common shares outstanding end of period		29,817			30,066
Earnings per common share
Basic	$	2.62		$	1.59
Diluted		2.61			1.59
Book value per common share		28.27			27.77
Tangible book value per common share		21.50			21.04
Cash dividends paid per common share		1.09			1.08
Selected Performance Ratios:
Return on average assets		1.20	%		0.77	%
Return on average shareholders’ equity		11.96			7.89
Return on average tangible common equity ^(1)		15.62			10.59
Average yield on earning assets (FTE) ^(1)		5.23			5.25
Average rate on interest bearing liabilities		2.90			3.01
Net interest margin (FTE) ^(1)		2.97			2.92
Net interest spread (FTE) ^(1)		2.33			2.24
Average earning assets to average interest bearing liabilities		128.36			128.85
Noninterest expense to average total assets		1.82			1.83
Efficiency ratio (FTE) ^(1)		53.13			53.89

(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)
	Nine Months Ended
	September 30,
		2026			2025
Nonperforming Assets:	$	15,835		$	35,608
Nonaccrual loans		10,304			7,955
Accruing loans past due more than 90 days		5,155			—
Restructured loans		45			27,501
Other real estate owned		331			128
Repossessed assets		—			24
Asset Quality Ratios:
Ratio of nonaccruing loans to:
Total loans		0.21	%		0.17	%
Ratio of nonperforming assets to:
Total assets		0.18			0.42
Total loans		0.32			0.75
Total loans and OREO		0.32			0.75
Ratio of allowance for loan losses to:
Nonaccruing loans		454.76			569.38
Nonperforming assets		295.91			127.20
Total loans		0.94			0.95
Net charge-offs (recoveries) to average loans outstanding		—			0.06
Capital Ratios:
Shareholders’ equity to total assets		9.51			9.96
Common equity tier 1 capital		13.12			12.97
Tier 1 risk-based capital		14.08			13.99
Total risk-based capital		17.35			19.01
Tier 1 leverage capital		9.96			9.78
Period end tangible equity to period end tangible assets^(1)		7.40			7.73
Average shareholders’ equity to average total assets		10.04			9.80

(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)
	Nine Months Ended
	September 30,
Loan Portfolio Composition		2026			2025
Real Estate Loans:
Construction	$	542,996		$	519,528
1-4 Family Residential		724,897			730,061
Commercial Owner-Occupied		360,611			336,278
Commercial Real Estate		2,416,412			2,352,434
Commercial Loans		510,057			429,952
Municipal Loans		367,711			353,324
Loans to Individuals		36,005			43,712
Total Loans	$	4,958,689		$	4,765,289
Summary of Changes in Allowances:
Allowance for Securities Held to Maturity
Balance at beginning of period	$	25		$	—
Provision for (reversal of) securities held to maturity		(1	)		55
Balance at end of period	$	24		$	55
Summary of Changes in Allowances:
Allowance for Loan Losses
Balance at beginning of period	$	45,100		$	44,884
Loans charged-off		(2,265	)		(3,142	)
Recoveries of loans charged-off		2,087			1,143
Net loans (charged-off) recovered		(178	)		(1,999	)
Provision for (reversal of) loan losses		1,936			2,409
Balance at end of period	$	46,858		$	45,294
Allowance for Off-Balance-Sheet Credit Exposures
Balance at beginning of period	$	3,166		$	3,141
Provision for (reversal of) off-balance-sheet credit exposures		305			8
Balance at end of period	$	3,471		$	3,149
Total Allowance for Credit Losses	$	50,353		$	48,498

Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands)   The tables that follow show average earning assets and interest bearing liabilities together with the average yield on the earning assets and the average rate of the interest bearing liabilities for the periods presented. The interest and related yields presented are on a fully taxable-equivalent basis and are therefore non-GAAP measures. See “Non-GAAP Financial Measures” and “Non-GAAP Reconciliation” for more information.
	Three Months Ended
	September 30, 2026							June 30, 2026
	Average Balance			Interest		Average Yield/Rate ^(3)		Average Balance			Interest		Average Yield/Rate ^(3)
ASSETS
Loans ^(1)	$	4,920,727		$	73,544	5.93	%	$	4,957,830		$	72,431	5.86	%
Loans held for sale		770			11	5.67	%		537			7	5.23	%
Securities:
Taxable investment securities ^(2)		576,023			4,906	3.38	%		576,120			4,686	3.26	%
Tax-exempt investment securities ^(2)		862,086			7,623	3.51	%		863,606			7,550	3.51	%
Mortgage-backed and related securities ^(2)		1,493,507			19,698	5.23	%		1,480,922			18,462	5.00	%
Total securities		2,931,616			32,227	4.36	%		2,920,648			30,698	4.22	%
Federal Home Loan Bank stock, at cost, and equity investments		53,617			525	3.88	%		47,353			215	1.82	%
Interest earning deposits		266,270			2,390	3.56	%		265,411			2,355	3.56	%
Federal funds sold		30,914			285	3.66	%		18,830			171	3.64	%
Total earning assets		8,203,914			108,982	5.27	%		8,210,609			105,877	5.17	%
Cash and due from banks		76,097							78,543
Accrued interest and other assets		500,205							512,723
Less: Allowance for loan losses		(46,115	)						(46,315	)
Total assets	$	8,734,101						$	8,755,560
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	762,996			3,129	1.63	%	$	722,198			2,722	1.51	%
Certificates of deposit		1,180,291			10,777	3.62	%		1,313,089			12,093	3.69	%
Interest bearing demand accounts		2,785,106			15,244	2.17	%		2,841,740			15,465	2.18	%
Total interest bearing deposits		4,728,393			29,150	2.45	%		4,877,027			30,280	2.49	%
Federal Home Loan Bank borrowings		887,034			9,025	4.04	%		828,187			8,248	3.99	%
Subordinated notes, net of unamortized debt issuance costs		147,612			2,694	7.24	%		147,564			2,686	7.30	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,282			941	6.19	%		60,281			922	6.13	%
Repurchase agreements		62,237			491	3.13	%		76,829			629	3.28	%
Other borrowings		466,750			4,273	3.63	%		420,660			3,821	3.64	%
Total interest bearing liabilities		6,352,308			46,574	2.91	%		6,410,548			46,586	2.91	%
Noninterest bearing deposits		1,402,569							1,386,072
Accrued expenses and other liabilities		94,604							85,765
Total liabilities		7,849,481							7,882,385
Shareholders’ equity		884,620							873,175
Total liabilities and shareholders’ equity	$	8,734,101						$	8,755,560
Net interest income (FTE)				$	62,408						$	59,291
Net interest margin (FTE)						3.02	%						2.90	%
Net interest spread (FTE)						2.36	%						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 does not include unrealized gains and losses on AFS securities.
(3)	Yield/rate includes the impact of applicable derivatives.
Note: As of September 30, 2026 and June 30, 2026, loans totaling $10.3 million and $9.6 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
	March 31, 2026							December 31, 2025
	Average Balance			Interest		Average Yield/Rate ^(3)		Average Balance			Interest		Average Yield/Rate ^(3)
ASSETS
Loans ^(1)	$	4,879,867		$	71,515	5.94	%	$	4,788,584		$	71,616	5.93	%
Loans held for sale		792			11	5.63	%		675			12	7.05	%
Securities:
Taxable investment securities ^(2)		578,480			4,649	3.26	%		593,393			4,835	3.23	%
Tax-exempt investment securities ^(2)		865,279			7,484	3.51	%		893,382			7,939	3.53	%
Mortgage-backed and related securities ^(2)		1,418,491			17,908	5.12	%		1,284,064			16,493	5.10	%
Total securities		2,862,250			30,041	4.26	%		2,770,839			29,267	4.19	%
Federal Home Loan Bank stock, at cost, and equity investments		21,693			249	4.66	%		23,287			441	7.51	%
Interest earning deposits		258,860			2,235	3.50	%		313,810			3,019	3.82	%
Federal funds sold		7,984			71	3.61	%		6,906			69	3.96	%
Total earning assets		8,031,446			104,122	5.26	%		7,904,101			104,424	5.24	%
Cash and due from banks		82,443							82,585
Accrued interest and other assets		521,219							508,578
Less: Allowance for loan losses		(45,491	)						(45,559	)
Total assets	$	8,589,617						$	8,449,705
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	683,270			2,370	1.41	%	$	647,035			2,061	1.26	%
Certificates of deposit		1,328,312			12,402	3.79	%		1,372,879			13,857	4.00	%
Interest bearing demand accounts		3,588,863			21,791	2.46	%		3,474,451			21,827	2.49	%
Total interest bearing deposits		5,600,445			36,563	2.65	%		5,494,365			37,745	2.73	%
Federal Home Loan Bank borrowings		144,008			975	2.75	%		187,725			1,274	2.69	%
Subordinated notes, net of unamortized debt issuance costs		195,664			3,577	7.41	%		239,648			4,022	6.66	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,280			915	6.16	%		60,278			980	6.45	%
Repurchase agreements		92,622			784	3.43	%		97,637			866	3.52	%
Other borrowings		189,444			1,753	3.75	%		14,826			193	5.16	%
Total interest bearing liabilities		6,282,463			44,567	2.88	%		6,094,479			45,080	2.93	%
Noninterest bearing deposits		1,363,826							1,423,350
Accrued expenses and other liabilities		82,948							86,863
Total liabilities		7,729,237							7,604,692
Shareholders’ equity		860,380							845,013
Total liabilities and shareholders’ equity	$	8,589,617						$	8,449,705
Net interest income (FTE)				$	59,555						$	59,344
Net interest margin (FTE)						3.01	%						2.98	%
Net interest spread (FTE)						2.38	%						2.31	%

(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 does not include unrealized gains and losses on AFS securities.
(3)	Yield/rate includes the impact of applicable derivatives.
Note: As of March 31, 2026 and December 31, 2025, loans totaling $9.6 million and $10.5 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
	September 30, 2025
	Average Balance			Interest		Average Yield/Rate ^(3)
ASSETS
Loans ^(1)	$	4,640,220		$	70,240	6.01	%
Loans held for sale		776			12	6.14	%
Securities:
Taxable investment securities^(2)		669,712			5,578	3.30	%
Tax-exempt investment securities^(2)		1,094,978			10,097	3.66	%
Mortgage-backed and related securities ^(2)		1,058,860			14,174	5.31	%
Total securities		2,823,550			29,849	4.19	%
Federal Home Loan Bank stock, at cost, and equity investments		37,937			374	3.91	%
Interest earning deposits		334,523			3,631	4.31	%
Federal funds sold		17,546			195	4.41	%
Total earning assets		7,854,552			104,301	5.27	%
Cash and due from banks		87,815
Accrued interest and other assets		455,884
Less: Allowance for loan losses		(44,476	)
Total assets	$	8,353,775
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	618,059			1,772	1.14	%
Certificates of deposit		1,505,292			15,752	4.15	%
Interest bearing demand accounts		3,320,993			21,234	2.54	%
Total interest bearing deposits		5,444,344			38,758	2.82	%
Federal Home Loan Bank borrowings		298,138			2,847	3.79	%
Subordinated notes, net of unamortized debt issuance costs		169,196			2,319	5.44	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,277			1,025	6.75	%
Repurchase agreements		75,207			662	3.49	%
Other borrowings		35,544			567	6.33	%
Total interest bearing liabilities		6,082,706			46,178	3.01	%
Noninterest bearing deposits		1,375,075
Accrued expenses and other liabilities		83,601
Total liabilities		7,541,382
Shareholders’ equity		812,393
Total liabilities and shareholders’ equity	$	8,353,775
Net interest income (FTE)				$	58,123
Net interest margin (FTE)						2.94	%
Net interest spread (FTE)						2.26	%

(1)	Interest on loans includes net fees on loans that are not material in amount.
(2)	For the purpose of calculating the average yield, the average balance of securities does not include unrealized gains and losses on AFS securities.
(3)	Yield/rate includes the impact of applicable derivatives.
Note: As of September 30, 2025, loans totaling $8.0 million were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received, when appropriate.

Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands)
	Nine Months Ended
	September 30, 2026							September 30, 2025
	Average Balance			Interest		Average Yield/Rate		Average Balance			Interest		Average Yield/Rate
ASSETS
Loans ^(1)	$	4,919,624		$	217,490	5.91	%	$	4,595,316		$	206,198	6.00	%
Loans held for sale		700			29	5.54	%		879			39	5.93	%
Securities:
Taxable investment securities ^(2)		576,865			14,241	3.30	%		717,887			18,146	3.38	%
Tax-exempt investment securities ^(2)		863,645			22,657	3.51	%		1,120,012			30,701	3.66	%
Mortgage-backed and related securities ^(2)		1,464,582			56,068	5.12	%		1,034,660			40,737	5.26	%
Total securities		2,905,092			92,966	4.28	%		2,872,559			89,584	4.17	%
Federal Home Loan Bank stock, at cost, and equity investments		41,004			989	3.22	%		37,444			1,381	4.93	%
Interest earning deposits		263,541			6,980	3.54	%		304,730			9,754	4.28	%
Federal funds sold		19,327			527	3.65	%		29,616			981	4.43	%
Total earning assets		8,149,288			318,981	5.23	%		7,840,544			307,937	5.25	%
Cash and due from banks		79,005							87,305
Accrued interest and other assets		511,279							455,402
Less: Allowance for loan losses		(45,976	)						(44,774	)
Total assets	$	8,693,596						$	8,338,477
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	723,113			8,221	1.52	%	$	602,800			4,652	1.03	%
Certificates of deposit		1,273,355			35,272	3.70	%		1,416,992			45,063	4.25	%
Interest bearing demand accounts		3,068,959			52,500	2.29	%		3,345,909			63,717	2.55	%
Total interest bearing deposits		5,065,427			95,993	2.53	%		5,365,701			113,432	2.83	%
Federal Home Loan Bank borrowings		622,465			18,248	3.92	%		434,558			12,405	3.82	%
Subordinated notes, net of unamortized debt issuance costs		163,437			8,957	7.33	%		118,067			4,186	4.74	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,281			2,778	6.16	%		60,276			3,054	6.77	%
Repurchase agreements		77,118			1,904	3.30	%		74,264			1,962	3.53	%
Other borrowings		359,967			9,847	3.66	%		32,218			1,871	7.76	%
Total interest bearing liabilities		6,348,695			137,727	2.90	%		6,085,084			136,910	3.01	%
Noninterest bearing deposits		1,384,298							1,349,971
Accrued expenses and other liabilities		87,789							85,882
Total liabilities		7,820,782							7,520,937
Shareholders’ equity		872,814							817,540
Total liabilities and shareholders’ equity	$	8,693,596						$	8,338,477
Net interest income (FTE)				$	181,254						$	171,027
Net interest margin (FTE)						2.97	%						2.92	%
Net interest spread (FTE)						2.33	%						2.24	%

(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 does not include unrealized gains and losses on AFS securities.
Note: As of September 30, 2026 and 2025, loans totaling $10.3 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.

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 shareholders’ equity to return on average tangible common equity, book value per share to tangible book value per share, net interest income to net interest income adjusted to a fully taxable-equivalent basis assuming a 21% marginal tax rate for interest earned on tax-exempt assets such as municipal loans and investment securities, along with the calculation of total revenue, adjusted noninterest expense, efficiency ratio (FTE), net interest margin (FTE) and net interest spread (FTE) for the applicable periods presented.
	Three Months Ended															Nine Months Ended
	2026									2025						2026			2025
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,			Sep 30,			Sep 30,
Reconciliation of return on average common equity to return on average tangible common equity:
Net income	$	27,976		$	26,837		$	23,259		$	20,987		$	4,913		$	78,072		$	48,233
After-tax amortization expense		86			96			104			117			136			286			469
Adjusted net income available to common shareholders	$	28,062		$	26,933		$	23,363		$	21,104		$	5,049		$	78,358		$	48,702
Average shareholders' equity	$	884,620		$	873,175		$	860,380		$	845,013		$	812,393		$	872,814		$	817,540
Less: Average intangibles for the period		(201,832	)		(201,949	)		(202,078	)		(202,217	)		(202,380	)		(201,952	)		(202,576	)
Average tangible shareholders' equity	$	682,788		$	671,226		$	658,302		$	642,796		$	610,013		$	670,862		$	614,964
Return on average shareholders’ equity		12.55	%		12.33	%		10.96	%		9.85	%		2.40	%		11.96	%		7.89	%
Return on average tangible common equity		16.31	%		16.09	%		14.39	%		13.03	%		3.28	%		15.62	%		10.59	%
Reconciliation of book value per share to tangible book value per share:
Common equity at end of period	$	842,884		$	882,464		$	854,862		$	847,615		$	834,850		$	842,884		$	834,850
Less: Intangible assets at end of period		(201,766	)		(201,875	)		(201,996	)		(202,128	)		(202,277	)		(201,766	)		(202,277	)
Tangible common shareholders' equity at end of period	$	641,118		$	680,589		$	652,866		$	645,487		$	632,573		$	641,118		$	632,573
Total assets at end of period	$	8,865,058		$	8,763,714		$	8,802,182		$	8,514,590		$	8,383,160		$	8,865,058		$	8,383,160
Less: Intangible assets at end of period		(201,766	)		(201,875	)		(201,996	)		(202,128	)		(202,277	)		(201,766	)		(202,277	)
Tangible assets at end of period	$	8,663,292		$	8,561,839		$	8,600,186		$	8,312,462		$	8,180,883		$	8,663,292		$	8,180,883
Period end tangible equity to period end tangible assets		7.40	%		7.95	%		7.59	%		7.77	%		7.73	%		7.40	%		7.73	%
Common shares outstanding end of period		29,817			29,803			29,752			29,723			30,066			29,817			30,066
Tangible book value per common share	$	21.50		$	22.84		$	21.94		$	21.72		$	21.04		$	21.50		$	21.04
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)	$	60,296		$	57,334		$	57,689		$	57,248		$	55,718		$	175,319		$	163,836
Tax-equivalent adjustments:
Loans		629			550			538			545			553			1,717			1,699
Tax-exempt investment securities		1,483			1,407			1,328			1,551			1,852			4,218			5,492
Net interest income (FTE) ^(1)		62,408			59,291			59,555			59,344			58,123			181,254			171,027
Noninterest income		13,733			14,004			12,596			5,578			(11,990	)		40,333			10,378
Nonrecurring income ^(2)		—			(543	)		(47	)		7,066			24,395			(590	)		24,949
Total revenue	$	76,141		$	72,752		$	72,104		$	71,988		$	70,528		$	220,997		$	206,354
Noninterest expense	$	39,022		$	38,676		$	40,576		$	37,477		$	37,534		$	118,274		$	113,880
Pre-tax amortization expense		(109	)		(121	)		(132	)		(149	)		(172	)		(362	)		(593	)
Nonrecurring expense ^(3)		334			(26	)		(799	)		306			14			(491	)		(2,077	)
Adjusted noninterest expense	$	39,247		$	38,529		$	39,645		$	37,634		$	37,376		$	117,421		$	111,210
Efficiency ratio		53.02	%		54.42	%		56.44	%		53.85	%		54.87	%		54.60	%		55.84	%
Efficiency ratio (FTE) ^(1)		51.55	%		52.96	%		54.98	%		52.28	%		52.99	%		53.13	%		53.89	%
Average earning assets	$	8,203,914		$	8,210,609		$	8,031,446		$	7,904,101		$	7,854,552		$	8,149,288		$	7,840,544
Net interest margin		2.92	%		2.80	%		2.91	%		2.87	%		2.81	%		2.88	%		2.79	%
Net interest margin (FTE) ^(1)		3.02	%		2.90	%		3.01	%		2.98	%		2.94	%		2.97	%		2.92	%
Net interest spread		2.26	%		2.17	%		2.28	%		2.21	%		2.14	%		2.24	%		2.12	%
Net interest spread (FTE) ^(1)		2.36	%		2.26	%		2.38	%		2.31	%		2.26	%		2.33	%		2.24	%

(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 loss on redemption of subordinated notes, foreclosure expenses, branch closure expenses and other miscellaneous expense, in the periods where applicable.