Southside Bancshares, Inc. Announces Financial Results for the Fourth Quarter and Year Ended December 31, 2025

Rhea-AI Summary

Southside Bancshares (NYSE: SBSI) reported fourth-quarter 2025 net income of $21.0 million and diluted EPS of $0.70. Tax-equivalent net interest margin rose to 2.98% linked quarter. Full-year 2025 net income was $69.2 million with EPS $2.29. Nonperforming assets were 0.45% of assets; securities sales generated a $32.3 million annual loss.

Positive

• Net interest income increased to $57.2M in Q4 (+6.6% YoY)
• Tax-equivalent net interest margin improved to 2.98% linked quarter
• Loans grew to $4.82B at 12/31/2025 (+3.4% YoY)
• Deposits rose to $6.87B at 12/31/2025 (+3.2% YoY)
• Repurchased 369,804 shares in Q4 at an average of $28.84

Negative

• Net loss on sale of AFS securities of $32.3M for 2025
• Full-year net income fell 21.8% to $69.2M
• Nonperforming assets increased to 0.45% of total assets

News Market Reaction

+0.09%

1 alert

+0.09% News Effect

On the day this news was published, SBSI gained 0.09%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q4 net income: $21.0M Q4 diluted EPS: $0.70 Tax-equivalent NIM: 2.98% +5 more

8 metrics

Q4 net income $21.0M Three months ended Dec 31, 2025

Q4 diluted EPS $0.70 Three months ended Dec 31, 2025

Tax-equivalent NIM 2.98% Q4 2025 net interest margin (tax-equivalent)

2025 net income $69.2M Year ended Dec 31, 2025

2025 diluted EPS $2.29 Year ended Dec 31, 2025

Net loss on AFS securities $32.3M Loss on sale of AFS securities, full year 2025

Total assets $8.51B As of Dec 31, 2025

Nonperforming assets ratio 0.45% of total assets As of Dec 31, 2025

Market Reality Check

Price: $33.55 Vol: Volume 155,103 is 1.44x t...

normal vol

$33.55 Last Close

Volume Volume 155,103 is 1.44x the 20-day average of 107,892. normal

Technical Trading above 200-day MA of 29.61 with price at 32.28.

Peers on Argus

SBSI was down 0.22% pre-news. Peers were mixed: FMBH -1.27%, BRKL -0.99%, BHRB -...

SBSI was down 0.22% pre-news. Peers were mixed: FMBH -1.27%, BRKL -0.99%, BHRB -0.67%, while NBN gained 3.2% and UVSP was roughly flat at 0.12%, indicating stock-specific factors rather than a broad sector move.

Previous Earnings Reports

5 past events · Latest: Oct 24 (Negative)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Oct 24	Quarterly earnings	Negative	-0.5%	Sharp earnings drop driven by $24.4M loss on securities sales.
Oct 10	Earnings call announcement	Neutral	+1.3%	Scheduled Q3 2025 results release and conference call details.
Jul 25	Quarterly earnings	Neutral	-1.8%	Q2 2025 results with lower earnings but improving net interest margin.
Jul 11	Earnings call announcement	Neutral	+1.5%	Announcement of Q2 2025 earnings release and conference call.
Apr 29	Quarterly earnings	Neutral	+0.5%	Q1 2025 results with steady earnings and modest asset-quality changes.

Pattern Detected

Earnings-related headlines have generally produced modest price moves, with mixed but mostly neutral-to-slightly-negative reactions on detailed quarterly result releases.

Recent Company History

Across 2025, Southside reported quarterly earnings showing stable to modestly lower net income while steadily improving net interest margin and growing the balance sheet. Q1–Q2 results highlighted solid core profitability and low nonperforming assets, while Q3 introduced sizeable losses from available-for-sale securities sales and new subordinated debt issuance. Earnings-call announcements in July and October produced small positive moves. Today’s Q4 and full-year 2025 results extend that theme of core strength offset by securities-portfolio restructuring.

Historical Comparison

earnings

+1.1 %

Average Historical Move

Historical Analysis

In the past year, SBSI had 5 earnings-related releases with an average move of about 1.12%, suggesting typically modest stock reactions to results updates.

Typical Pattern

Across 2025, earnings updates showed consistent core profitability, gradual net interest margin improvement, and growing loans and deposits, while securities-portfolio repositioning and related losses weighed on reported net income.

Market Pulse Summary

This announcement details Q4 and full-year 2025 results, highlighting net income of $21.0M for the q...

Analysis

This announcement details Q4 and full-year 2025 results, highlighting net income of $21.0M for the quarter and $69.2M for the year, with a tax-equivalent net interest margin of 2.98% in Q4. Core banking trends include loan and deposit growth, improved funding costs, and active securities-portfolio repositioning that produced a $32.3M net loss on sales. Investors may watch future net interest margin performance, asset quality given nonperforming assets at 0.45%, and capital actions such as share repurchases and debt redemptions.

Key Terms

available for sale (afs) securities, mortgage-backed securities, subordinated notes, net interest margin, +4 more

8 terms

available for sale (afs) securities financial

"we continued the restructure of a portion of our available for sale (“AFS”) securities portfolio"

AFS securities are investments in stocks or bonds a company buys without the immediate plan to trade them or hold them until they mature. They are recorded at current market value and any unrealized gains or losses sit in a separate equity account until the company sells them, at which point the gain or loss hits the income statement. Investors care because shifts in those market values can change a company’s reported net worth and future earnings when the investments are sold, similar to items in inventory whose price changes affect a store’s balance sheet.

mortgage-backed securities financial

"proceeds from the sale of these securities were reinvested primarily in U.S. Agency mortgage-backed securities"

A mortgage-backed security is an investment made by pooling many home loans and selling the right to the borrowers’ monthly payments to investors, so you receive a stream of principal and interest much like collecting payments on a bundle of IOUs. It matters to investors because it provides regular income but carries risks from homeowners missing payments or paying off loans early, and its value moves with interest rates and housing market conditions.

subordinated notes financial

"we will redeem our $93 million subordinated notes due 2030 which bear interest"

Subordinated notes are loans companies issue that rank below other debts for repayment, meaning holders get paid only after higher-priority creditors if the issuer runs into trouble. Because they act like being farther back in line at a buffet, they usually offer higher interest to compensate for greater risk, so investors watch them for potential higher returns but also increased chance of loss and sensitivity to the issuer’s financial health.

net interest margin financial

"our net interest margin increased four basis points to 2.98% due to lower funding costs"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

provision for credit losses financial

"a decrease in income tax expense and provision for credit losses and increases in several noninterest income categories"

Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.

nonperforming assets financial

"Nonperforming assets remain low at 0.45% of total assets"

Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.

efficiency ratio financial

"Our efficiency ratio and tax-equivalent efficiency ratio(1) were 53.85% and 52.28%"

A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.

cecl model financial

"due to improvements in the overall economic forecast in the CECL model"

The CECL model (Current Expected Credit Loss) is an accounting approach that requires lenders and other companies holding loans or receivables to estimate and record expected credit losses up front, based on reasonable forecasts of future conditions. For investors, CECL matters because it changes when and how much loss is recognized, which can make earnings and capital cushions swing earlier and more sharply—think of it as setting aside money now because a weather forecast predicts future storms.

AI-generated analysis. Not financial advice.

• Fourth quarter net income of $21.0 million;
• Fourth quarter earnings per diluted common share of $0.70;
• Tax-equivalent net interest margin⁽¹⁾ linked quarter increased four basis points to 2.98%;
• Annualized return on fourth quarter average assets of 0.99%;
• Annualized return on fourth quarter average tangible common equity of 13.03⁽¹⁾; and
• Nonperforming assets remain low at 0.45% of total assets.
  
  

TYLER, Texas, Jan. 29, 2026 (GLOBE NEWSWIRE) -- Southside Bancshares, Inc. (“Southside” or the “Company”) (NYSE: SBSI) today reported its financial results for the quarter and year ended December 31, 2025.

“During the fourth quarter, we continued the restructure of a portion of our available for sale (“AFS”) securities portfolio by selling approximately $82 million of lower yielding long duration municipal securities with a combined taxable equivalent yield of approximately 2.59% at a loss of $7.3 million,” stated Keith Donahoe, President and Chief Executive Officer of Southside. “All the sales occurred at the end of October. The proceeds from the sale of these securities were reinvested primarily in U.S. Agency mortgage-backed securities. Linked quarter, net interest income increased $1.5 million, our net interest margin increased four basis points to 2.98% due to lower funding costs during the quarter and deposits, net of public fund and brokered deposits, increased $40.8 million. Linked quarter, total loans increased $52.7 million. On February 15, 2026, we will redeem our $93 million subordinated notes due 2030 which bear interest at a rate of 7.51%. We expect the redemption to have a positive impact on our net interest margin in the first quarter.”

Operating Results for the Three Months Ended December 31, 2025

Net income was $21.0 million for the three months ended December 31, 2025, compared to $21.8 million for the same period in 2024, a decrease of $0.8 million, or 3.7%. Earnings per diluted common share were $0.70 for the three months ended December 31, 2025, compared to $0.71 for the same period in 2024, a decrease of $0.01, or 1.4%. The decrease in net income was due to the net loss on sale of AFS securities, partially offset by an increase in net interest income, decreases in income tax expense and provision for credit losses and increases in several noninterest income categories. For the three months ended December 31, 2025, we had a $7.3 million net loss on sale of AFS securities, compared to no gain or loss for the same period in 2024. Annualized returns on average assets and average shareholders’ equity for the three months ended December 31, 2025 were 0.99% and 9.85%, respectively, compared to 1.03% and 10.54%, respectively, for the three months ended December 31, 2024. Our efficiency ratio and tax-equivalent efficiency ratio⁽¹⁾ were 53.85% and 52.28%, respectively, for the three months ended December 31, 2025, compared to 56.08% and 54.00%, respectively, for the three months ended December 31, 2024, and 54.87% and 52.99%, respectively, for the three months ended September 30, 2025.

Net interest income for the three months ended December 31, 2025 was $57.2 million, an increase of $3.5 million, or 6.6%, compared to the same period in 2024. The increase in net interest income was primarily due to the decrease in the average rate paid on our interest bearing liabilities. Linked quarter, net interest income increased $1.5 million, or 2.7%, compared to $55.7 million for the three months ended September 30, 2025, due to a decrease in the average rate paid on our interest bearing liabilities and an increase in the average balance of our interest earning assets, partially offset by the decrease in the average yield of our interest earning assets.

Our net interest margin and tax-equivalent net interest margin⁽¹⁾ increased to 2.87% and 2.98%, respectively, for the three months ended December 31, 2025, compared to 2.70% and 2.83%, respectively, for the same period in 2024. Linked quarter, net interest margin and tax-equivalent net interest margin⁽¹⁾ increased from 2.81% and 2.94%, respectively, for the three months ended September 30, 2025.

Noninterest income, excluding the net losses on sales of AFS securities, was $12.9 million and $12.3 million for the three months ended December 31, 2025 and 2024, respectively, an increase of $0.6 million, or 5.0%. The increase was due to increases in trust fees, deposit services income, brokerage services income and bank owned life insurance (“BOLI”) income, partially offset by a decrease in other noninterest income. On a linked quarter basis, noninterest income, excluding the net losses on sales of AFS securities increased $0.5 million, or 4.0%, compared to the three months ended September 30, 2025, due primarily to increases in deposit services income, BOLI income and brokerage services income, partially offset by a decrease in other noninterest income during the three months ended December 31, 2025.

Noninterest expense decreased $0.7 million, or 1.8%, to $37.5 million for the three months ended December 31, 2025, compared to $38.2 million for the same period in 2024, primarily due to decreases in professional fees and other noninterest expense. On a linked quarter basis, noninterest expense decreased by $57,000, or 0.2%, compared to the three months ended September 30, 2025.

Income tax expense decreased $0.9 million, or 18.8%, for the three months ended December 31, 2025, compared to the same period in 2024. On a linked quarter basis, income tax expense increased $3.6 million, or 1,900.5%. Our effective tax rate (“ETR”) decreased to 15.3% for the three months ended December 31, 2025, compared to 17.6% for the three months ended December 31, 2024, and increased from 3.7% for the three months ended September 30, 2025. The lower ETR for the three months ended December 31, 2025 compared to the same period in 2024, was primarily a result of an increase in net tax-exempt income as a percentage of pre-tax income. On a linked quarter basis, the higher ETR was primarily due to the impact of the net loss on the sale of AFS securities of $24.4 million recorded during the third quarter of 2025 on our tax-exempt income as a percentage of pre-tax income as well as an increase in state income tax expense.

Operating Results for the Year Ended December 31, 2025

Net income was $69.2 million for the year ended December 31, 2025, compared to $88.5 million for the same period in 2024, a decrease of $19.3 million, or 21.8%. Earnings per diluted common share were $2.29 for the year ended December 31, 2025, compared to $2.91 for the same period in 2024, a decrease of $0.62, or 21.3%. The decrease in net income was driven by the net loss on the sale of AFS securities and, to a lesser extent, an increase in noninterest expense, partially offset by a decrease in income tax expense, increases in net interest income and several noninterest income categories and a decrease in provision for credit losses. For the year ended December 31, 2025, we had a $32.3 million net loss on sale of AFS securities, compared to a net loss of $2.5 million for the same period in 2024. Returns on average assets and average shareholders’ equity for the year ended December 31, 2025 were 0.83% and 8.40%, respectively, compared to 1.06% and 11.03%, respectively, for the year ended December 31, 2024. Our efficiency ratio and tax-equivalent efficiency ratio⁽¹⁾ were 55.32% and 53.48%, respectively, for the year ended December 31, 2025, compared to 55.69% and 53.52%, respectively, for the year ended December 31, 2024.

Net interest income was $221.1 million for the year ended December 31, 2025, compared to $216.1 million for the same period in 2024, an increase of $5.0 million, or 2.3%, due to decreases in the average rate paid on our interest bearing liabilities and a change in the mix of our interest earning assets and interest bearing liabilities, partially offset by the decrease in the average yield of interest earning assets.

Our net interest margin and tax-equivalent net interest margin⁽¹⁾ increased to 2.81% and 2.93%, respectively, for the year ended December 31, 2025, compared to 2.74% and 2.88%, respectively, for the same period in 2024.

Noninterest income, excluding the net losses on sale of AFS securities, was $48.2 million and $44.2 million for the years ended December 31, 2025 and 2024, respectively, an increase of $4.0 million, or 9.0%. The increase was primarily due to an increase in other noninterest income, trust fees, brokerage services income and gain on sale of loans, partially offset by a decrease in BOLI income.

Noninterest expense was $151.4 million for the year ended December 31, 2025, compared to $147.1 million for the same period in 2024, an increase of $4.2 million, or 2.9%. The increase was primarily due to increases in other noninterest expense, professional fees and advertising, travel and entertainment expense, partially offset by decreases in amortization of intangibles and communications expense.

Income tax expense decreased $5.5 million, or 29.0%, for the year ended December 31, 2025, compared to the same period in 2024. Our ETR was approximately 16.2% and 17.6% for the years ended December 31, 2025 and 2024, respectively. The lower ETR for the year ended December 31, 2025, as compared to the same period in 2024, was primarily a result of an increase in net tax-exempt income as a percentage of pre-tax income.

Balance Sheet Data

At December 31, 2025, Southside had $8.51 billion in total assets, compared to $8.52 billion at December 31, 2024 and $8.38 billion at September 30, 2025.

Loans at December 31, 2025 were $4.82 billion, an increase of $156.4 million, or 3.4%, compared to $4.66 billion at December 31, 2024. Linked quarter, loans increased $52.7 million, or 1.1%, due to increases of $29.0 million in construction loans, $24.1 million in commercial real estate loans and $14.8 million in commercial loans. These increases were partially offset by decreases of $6.6 million in municipal loans, $5.7 million in 1-4 family residential loans and $2.9 million in loans to individuals.

Securities at December 31, 2025 were $2.70 billion, a decrease of $109.4 million, or 3.9%, compared to $2.81 billion at December 31, 2024. Linked quarter, securities increased $147.9 million, or 5.8%, from $2.56 billion at September 30, 2025.

Deposits at December 31, 2025 were $6.87 billion, an increase of $210.9 million, or 3.2%, compared to $6.65 billion at December 31, 2024. Linked quarter, deposits decreased $96.4 million, or 1.4%, from $6.96 billion at September 30, 2025, primarily due to the decrease of $223.5 million in brokered deposits, partially offset by increases of $86.3 million and $40.8 million in public fund deposits and retail deposits, respectively.

At December 31, 2025, we had 178,757 total deposit accounts with an average balance of $35,000. Our estimated uninsured deposits were 39.7% of total deposits as of December 31, 2025. When excluding affiliate deposits (Southside-owned deposits) and public fund deposits (all collateralized), our total estimated deposits without insurance or collateral was 23.0% as of December 31, 2025. Our noninterest bearing deposits represent approximately 20.9% of total deposits. Linked quarter, our cost of interest bearing deposits decreased nine basis points from 2.82% in the prior quarter to 2.73%. Linked quarter, our cost of total deposits decreased nine basis points from 2.25% in the prior quarter to 2.16%.

Our cost of interest bearing deposits decreased 18 basis points, from 2.98% for the year ended December 31, 2024, to 2.80% for the year ended December 31, 2025. Our cost of total deposits decreased 13 basis points, from 2.36% for the year ended December 31, 2024, to 2.23% for the year ended December 31, 2025.

Capital Resources and Liquidity

Our capital ratios and contingent liquidity sources remain solid. During the fourth quarter ended December 31, 2025, we repurchased 369,804 shares of the Company’s common stock at an average price of $28.84 per share, pursuant to our Stock Repurchase Plan (the “Plan”). Under the Plan, repurchases of our outstanding common stock may be carried out in open market purchases, privately negotiated transactions or pursuant to any trading plan that might be adopted in accordance with Rule 10b5-1 of The Securities Exchange Act of 1934, as amended. The Company has no obligation to repurchase any shares under the Plan and may modify, suspend or discontinue the Plan at any time. As of December 31, 2025, approximately 0.8 million authorized shares remained available for purchase. We have not purchased any common stock pursuant to the Plan subsequent to December 31, 2025.

As of December 31, 2025, our total available contingent liquidity, net of current outstanding borrowings, was $2.78 billion, consisting of FHLB advances, Federal Reserve Discount Window and correspondent bank lines of credit.

Asset Quality

Nonperforming assets at December 31, 2025 were $38.2 million, or 0.45% of total assets, an increase of $2.6 million, or 7.4%, from $35.6 million, or 0.42% of total assets, at September 30, 2025, due primarily to an increase of $2.5 million in nonaccrual loans. The increase in nonaccrual loans compared to September 30, 2025 was due to a $3.4 million increase in 1-4 family real estate. Nonperforming assets increased $34.7 million, or 965.6%, compared to $3.6 million, or 0.04% of total assets, at December 31, 2024, due primarily to an increase of $27.5 million in restructured loans. The increase in restructured loans was due to the extension of maturity in the first quarter of 2025 on a $27.5 million commercial real estate loan to allow for an extended lease up period.

The allowance for loan losses totaled $45.1 million, or 0.94% of total loans, at December 31, 2025, compared to $45.3 million, or 0.95% of total loans, at September 30, 2025. The allowance for loan losses was $44.9 million, or 0.96% of total loans, at December 31, 2024. The decrease in allowance as a percentage of total loans compared to December 31, 2024 was primarily due to improvements in the overall economic forecast in the CECL model.

For the three months ended December 31, 2025, we recorded a provision for credit losses for loans of $0.6 million, compared to $1.6 million and $1.7 million for the three months ended December 31, 2024 and September 30, 2025, respectively. Net charge-offs were $0.8 million for the three months ended December 31, 2025, compared to net charge-offs of $1.0 million and $0.8 million for the three months ended December 31, 2024 and September 30, 2025, respectively. Net charge-offs were $2.8 million for the year ended December 31, 2025, compared to net charge-offs of $1.9 million for the year ended December 31, 2024.

We recorded a provision for credit losses on off-balance-sheet credit exposures of $17,000 for the three months ended December 31, 2025, compared to a reversal of provision of $0.2 million and $0.6 million for the three months ended December 31, 2024 and September 30, 2025, respectively. We recorded a provision for losses on off-balance-sheet credit exposures of $25,000 for the year ended December 31, 2025, compared to a reversal of provision for credit losses on off-balance-sheet credit exposures of $0.8 million for the year ended December 31, 2024. The balance of the allowance for off-balance-sheet credit exposures was $3.2 million and $3.1 million at December 31, 2025 and 2024, respectively, and is included in other liabilities.

Dividend

Southside Bancshares, Inc. declared a fourth quarter cash dividend of $0.36 per share on November 6, 2025, which was paid on December 4, 2025, to all shareholders of record as of November 20, 2025.

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

Conference Call

Southside's management team will host a conference call to discuss its fourth quarter and year ended December 31, 2025 financial results on Thursday, January 29, 2026 at 11:00 a.m. CST. The conference call can be accessed by webcast, for listen-only mode, on the company website, https://investors.southside.com, under Events.

Those interested in participating in the question and answer session, or others who prefer to call-in, can register at https://events.q4inc.com/analyst/337048650?pwd=3wdPmIO1 to receive the dial-in number and unique code to access the conference call seamlessly. While not required, it is recommended that those wishing to participate, register 10 minutes prior to the conference call to ensure a more efficient registration process.

For those unable to attend the live event, a webcast recording will be available on the company website, https://investors.southside.com, for at least 30 days, beginning approximately two hours following the conference call.

Non-GAAP Financial Measures

Our accounting and reporting policies conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP measures are used by management to supplement the evaluation of our performance. These include the following fully taxable-equivalent measures (“FTE”): (i) Net interest income (FTE), (ii) net interest margin (FTE), (iii) net interest spread (FTE), and (iv) efficiency ratio (FTE), which include the effects of taxable-equivalent adjustments using a federal income tax rate of 21% to increase tax-exempt interest income to a tax-equivalent basis. Interest income earned on certain assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments.

Net interest income (FTE), net interest margin (FTE) and net interest spread (FTE). Net interest income (FTE) is a non-GAAP measure that adjusts for the tax-favored status of net interest income from certain loans and investments and is not permitted under GAAP in the consolidated statements of income. We believe that this measure is the preferred industry measurement of net interest income and that it enhances comparability of net interest income arising from taxable and tax-exempt sources. The most directly comparable financial measure calculated in accordance with GAAP is our net interest income. Net interest margin (FTE) is the ratio of net interest income (FTE) to average earning assets. The most directly comparable financial measure calculated in accordance with GAAP is our net interest margin. Net interest spread (FTE) is the difference in the average yield on average earning assets on a tax-equivalent basis and the average rate paid on average interest bearing liabilities. The most directly comparable financial measure calculated in accordance with GAAP is our net interest spread.

Efficiency ratio (FTE).  The efficiency ratio (FTE) is a non-GAAP measure that provides a measure of productivity in the banking industry. This ratio is calculated to measure the cost of generating one dollar of revenue. The ratio is designed to reflect the percentage of one dollar which must be expended to generate that dollar of revenue. We calculate this ratio by dividing noninterest expense, excluding amortization expense on intangibles and certain nonrecurring expense by the sum of net interest income (FTE) and noninterest income, excluding net gain (loss) on sale of securities available for sale and certain nonrecurring impairments. The most directly comparable financial measure calculated in accordance with GAAP is our efficiency ratio.

These non-GAAP financial measures should not be considered alternatives to GAAP-basis financial statements and other bank holding companies may define or calculate these non-GAAP measures or similar measures differently. Whenever we present a non-GAAP financial measure in an SEC filing, we are also required to present the most directly comparable financial measure calculated and presented in accordance with GAAP and reconcile the differences between the non-GAAP financial measure and such comparable GAAP measure.

Management believes adjusting net interest income, net interest margin and net interest spread to a fully taxable-equivalent basis is a standard practice in the banking industry as these measures provide useful information to make peer comparisons. Tax-equivalent adjustments are reflected in the respective earning asset categories as listed in the “Average Balances with Average Yields and Rates” tables.

A reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.

About Southside Bancshares, Inc.

Southside Bancshares, Inc. is a bank holding company with approximately $8.51 billion in assets as of December 31, 2025, that owns 100% of Southside Bank. Southside Bank currently has 53 branches in Texas and operates a network of 70 ATMs/ITMs.

To learn more about Southside Bancshares, Inc., please visit our investor relations website at https://investors.southside.com. Our investor relations site provides a detailed overview of our activities, financial information and historical stock price data. To receive email notification of company news, events and stock activity, please register on the website under Resources and Investor Email Alerts. Questions or comments may be directed to Lindsey Bailes at (903) 630-7965, or lindsey.bailes@southside.com.

Forward-Looking Statements

Certain statements of other than historical fact that are contained in this press release and in other written materials, documents and oral statements issued by or on behalf of the Company may be considered to be “forward-looking statements” within the meaning of and subject to the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. These statements may include words such as “expect,” “estimate,” “project,” “anticipate,” “appear,” “believe,” “could,” “should,” “may,” “might,” “will,” “would,” “seek,” “intend,” “probability,” “risk,” “goal,” “target,” “objective,” “plans,” “potential,” and similar expressions. Forward-looking statements are statements with respect to the Company’s beliefs, plans, expectations, objectives, goals, anticipations, assumptions, estimates, intentions and future performance and are subject to significant known and unknown risks and uncertainties, which could cause the Company's actual results to differ materially from the results discussed in the forward-looking statements. For example, trends in asset quality, capital, liquidity, the Company's ability to sell nonperforming assets, expense reductions, planned operational efficiencies and earnings from growth and certain market risk disclosures, including the impact of interest rates and our expectations regarding rate changes, tax reform, inflation, tariffs, the impacts related to or resulting from other economic factors are based upon information presently available to management and are dependent on choices about key model characteristics and assumptions and are subject to various limitations. By their nature, certain of the market risk disclosures are only estimates and could be materially different from what actually occurs in the future. Accordingly, our results could materially differ from those that have been estimated. The most significant factors that could cause future results to differ materially from those anticipated by our forward-looking statements include: general economic conditions in our markets, including the ongoing impact of higher inflation levels, interest rate fluctuations, including the impact of changes in interest rates on our financial projections, models and guidance, as well as the effects of declines in the real estate market, tariffs or trade wars (including reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services), high unemployment and increasing insurance costs, as well as the financial stress to borrowers as a result of the foregoing, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations, and our ability to manage liquidity in a rapidly changing and unpredictable market; the extensive regulations the Company is subject to and legislative and regulatory changes; the Company’s ability to successfully execute its business strategy; the Company’s ability to innovate, to anticipate the needs of our current and future customers and to manage increased or expanded competition from banks and other financial service providers in its markets; the Company’s ability to effectively manage information technology systems, including third party vendors, cyber or data privacy incidents or other failures, outages, disruptions or security breaches; the Company’s ability to use technology to provide products and services to its customers; adverse developments in the banking industry and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments, including in the context of regulatory examinations and related findings and actions; negative press and social media attention with respect to the banking industry or the Company, in particular; claims, litigation or regulatory investigations and actions that the Company may become subject to; the failure to identify, attract and retain key personnel and other employees and to engage in adequate succession planning; the Company’s recent executive transition; and the additional risks included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, under “Part I - Item 1. Forward Looking Information” and “Part I - Item 1A. Risk Factors” and in the Company’s other filings with the Securities and Exchange Commission. The Company disclaims any obligation to update any factors or to announce publicly the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.

Southside Bancshares, Inc. Consolidated Financial Summary (Unaudited) (Dollars in thousands)
	As of
		2025																2024
	Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,
ASSETS
Cash and due from banks	$	81,080			$	90,519			$	109,669			$	103,359			$	91,409
Interest earning deposits		302,906				365,263				260,357				293,364				281,945
Federal funds sold		5,800				11,130				20,069				34,248				52,807
Securities available for sale, at estimated fair value		1,456,219				1,292,431				1,457,124				1,457,939				1,533,894
Securities held to maturity, at net carrying value		1,247,477				1,263,401				1,272,906				1,278,330				1,279,234
Total securities		2,703,696				2,555,832				2,730,030				2,736,269				2,813,128
Federal Home Loan Bank stock, at cost		14,062				9,359				24,384				34,208				33,818
Loans held for sale		1,332				497				428				903				1,946
Loans		4,817,991				4,765,289				4,601,933				4,567,239				4,661,597
Less: Allowance for loan losses		(45,100	)			(45,294	)			(44,421	)			(44,623	)			(44,884	)
Net loans		4,772,891				4,719,995				4,557,512				4,522,616				4,616,713
Premises & equipment, net		152,293				147,187				147,263				142,245				141,648
Goodwill		201,116				201,116				201,116				201,116				201,116
Other intangible assets, net		1,012				1,161				1,333				1,531				1,754
Bank owned life insurance		145,125				139,697				138,826				137,962				138,313
Other assets		133,277				141,404				148,979				135,479				142,851
Total assets	$	8,514,590			$	8,383,160			$	8,339,966			$	8,343,300			$	8,517,448
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest bearing deposits	$	1,433,129			$	1,411,764			$	1,368,453			$	1,379,641			$	1,357,152
Interest bearing deposits		5,432,030				5,549,823				5,263,511				5,211,210				5,297,096
Total deposits		6,865,159				6,961,587				6,631,964				6,590,851				6,654,248
Other borrowings and Federal Home Loan Bank borrowings		419,793				200,706				611,367				691,417				808,352
Subordinated notes, net of unamortized debt issuance costs		239,678				239,601				92,115				92,078				92,042
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,279				60,278				60,277				60,276				60,274
Other liabilities		82,066				86,138				137,043				92,055				90,590
Total liabilities		7,666,975				7,548,310				7,532,766				7,526,677				7,705,506
Shareholders' equity		847,615				834,850				807,200				816,623				811,942
Total liabilities and shareholders' equity	$	8,514,590			$	8,383,160			$	8,339,966			$	8,343,300			$	8,517,448

Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars and shares in thousands, except per share data)
	Three Months Ended
		2025															2024
	Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,
Income Statement:
Total interest and dividend income	$	102,328			$	101,896			$	98,562			$	100,288			$	101,689
Total interest expense		45,080				46,178				44,296				46,436				47,982
Net interest income		57,248				55,718				54,266				53,852				53,707
Provision for (reversal of) credit losses		581				1,092				622				758				1,384
Net interest income after provision for (reversal of) credit losses		56,667				54,626				53,644				53,094				52,323
Noninterest income
Deposit services		6,415				6,069				6,125				5,829				6,084
Net gain (loss) on sale of securities available for sale		(7,321	)			(24,395	)			—				(554	)			—
Gain (loss) on sale of loans		122				164				99				55				138
Trust fees		2,148				2,081				1,879				1,765				1,773
Bank owned life insurance		1,134				871				833				799				848
Brokerage services		1,348				1,172				1,219				1,120				1,054
Other		1,732				2,048				1,990				1,209				2,384
Total noninterest income (loss)		5,578				(11,990	)			12,145				10,223				12,281
Noninterest expense
Salaries and employee benefits		22,816				22,803				22,272				22,382				22,960
Net occupancy		3,715				3,761				3,621				3,404				3,629
Advertising, travel & entertainment		1,147				907				950				924				884
ATM expense		319				444				405				378				378
Professional fees		1,343				1,451				1,401				1,520				1,645
Software and data processing		2,859				2,770				3,027				2,839				2,931
Communications		273				321				342				383				320
FDIC insurance		937				920				955				947				931
Amortization of intangibles		149				172				198				223				249
Other		3,919				3,985				6,086				4,089				4,232
Total noninterest expense		37,477				37,534				39,257				37,089				38,159
Income before income tax expense		24,768				5,102				26,532				26,228				26,445
Income tax expense		3,781				189				4,719				4,721				4,659
Net income	$	20,987			$	4,913			$	21,813			$	21,507			$	21,786
Common Share Data:
Weighted-average basic shares outstanding		29,863				30,067				30,234				30,390				30,343
Weighted-average diluted shares outstanding		29,943				30,135				30,308				30,483				30,459
Common shares outstanding end of period		29,723				30,066				30,082				30,410				30,379
Earnings per common share
Basic	$	0.70			$	0.16			$	0.72			$	0.71			$	0.72
Diluted		0.70				0.16				0.72				0.71				0.71
Book value per common share		28.52				27.77				26.83				26.85				26.73
Tangible book value per common share		21.72				21.04				20.10				20.19				20.05
Cash dividends paid per common share		0.36				0.36				0.36				0.36				0.36
Selected Performance Ratios:
Return on average assets		0.99	%			0.23	%			1.07	%			1.03	%			1.03	%
Return on average shareholders’ equity		9.85				2.40				10.73				10.57				10.54
Return on average tangible common equity(1)		13.03				3.28				14.38				14.14				14.12
Average yield on earning assets (FTE)(1)		5.24				5.27				5.25				5.23				5.24
Average rate on interest bearing liabilities		2.93				3.01				2.98				3.03				3.12
Net interest margin (FTE)(1)		2.98				2.94				2.95				2.86				2.83
Net interest spread (FTE)(1)		2.31				2.26				2.27				2.20				2.12
Average earning assets to average interest bearing liabilities		129.69				129.13				129.33				128.10				129.55
Noninterest expense to average total assets		1.76				1.78				1.92				1.78				1.80
Efficiency ratio (FTE)(1)		52.28				52.99				53.70				55.04				54.00

^{(1)   Refer to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.}

Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands)
	Three Months Ended
		2025															2024
	Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,
Nonperforming Assets:	$	38,243			$	35,608			$	32,909			$	32,193			$	3,589
Nonaccrual loans		10,486				7,955				4,998				4,254				3,185
Accruing loans past due more than 90 days		—				—				—				—				—
Restructured loans		27,509				27,501				27,512				27,505				2
Other real estate owned		248				128				380				388				388
Repossessed assets		—				24				19				46				14
Asset Quality Ratios:
Ratio of nonaccruing loans to:
Total loans		0.22	%			0.17	%			0.11	%			0.09	%			0.07	%
Ratio of nonperforming assets to:
Total assets		0.45				0.42				0.39				0.39				0.04
Total loans		0.79				0.75				0.72				0.70				0.08
Total loans and OREO		0.79				0.75				0.72				0.70				0.08
Ratio of allowance for loan losses to:
Nonaccruing loans		430.10				569.38				888.78				1,048.97				1,409.23
Nonperforming assets		117.93				127.20				134.98				138.61				1,250.60
Total loans		0.94				0.95				0.97				0.98				0.96
Net charge-offs (recoveries) to average loans outstanding		0.07				0.07				0.08				0.03				0.08
Capital Ratios:
Shareholders’ equity to total assets		9.95				9.96				9.68				9.79				9.53
Common equity tier 1 capital		12.87				12.97				13.36				13.44				13.04
Tier 1 risk-based capital		13.88				13.99				14.41				14.49				14.07
Total risk-based capital		18.54				19.01				16.91				17.01				16.49
Tier 1 leverage capital		9.72				9.78				10.03				9.73				9.67
Period end tangible equity to period end tangible assets(1)		7.77				7.73				7.43				7.54				7.33
Average shareholders’ equity to average total assets		10.00				9.72				9.94				9.75				9.76

^{(1)   Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.}

Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands)
	Three Months Ended
		2025																2024
Loan Portfolio Composition	Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,
Real Estate Loans:
Construction	$	548,570			$	519,528			$	470,380			$	458,101			$	537,827
1-4 Family Residential		724,354				730,061				736,108				741,432				740,396
Commercial		2,712,816				2,688,712				2,606,072				2,577,229				2,579,735
Commercial Loans		444,720				429,952				380,612				371,643				363,167
Municipal Loans		346,720				353,324				363,746				371,271				390,968
Loans to Individuals		40,811				43,712				45,015				47,563				49,504
Total Loans	$	4,817,991			$	4,765,289			$	4,601,933			$	4,567,239			$	4,661,597
Summary of Changes in Allowances:
Allowance for Securities Held to Maturity
Balance at beginning of period	$	55			$	55			$	64			$	—			$	—
Provision for (reversal of) securities held to maturity		(30	)			—				(9	)			64				—
Balance at end of period	$	25			$	55			$	55			$	64			$	—
Allowance for Loan Losses
Balance at beginning of period	$	45,294			$	44,421			$	44,623			$	44,884			$	44,276
Loans charged-off		(1,115	)			(1,335	)			(1,194	)			(613	)			(1,232	)
Recoveries of loans charged-off		327				491				342				310				277
Net loans (charged-off) recovered		(788	)			(844	)			(852	)			(303	)			(955	)
Provision for (reversal of) loan losses		594				1,717				650				42				1,563
Balance at end of period	$	45,100			$	45,294			$	44,421			$	44,623			$	44,884
Allowance for Off-Balance-Sheet Credit Exposures
Balance at beginning of period	$	3,149			$	3,774			$	3,793			$	3,141			$	3,320
Provision for (reversal of) off-balance-sheet credit exposures		17				(625	)			(19	)			652				(179	)
Balance at end of period	$	3,166			$	3,149			$	3,774			$	3,793			$	3,141
Total Allowance for Credit Losses	$	48,291			$	48,498			$	48,250			$	48,480			$	48,025

Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands)
	Year ended
	December 31,
		2025				2024
Income Statement:
Total interest and dividend income	$	403,074			$	414,336
Total interest expense		181,990				198,209
Net interest income		221,084				216,127
Provision for (reversal of) credit losses		3,053				3,346
Net interest income after provision for (reversal of) credit losses		218,031				212,781
Noninterest income
Deposit services		24,438				24,425
Net gain (loss) on sale of securities available for sale		(32,270	)			(2,510	)
Gain (loss) on sale of loans		440				37
Trust fees		7,873				6,193
Bank owned life insurance		3,637				4,256
Brokerage services		4,859				4,217
Other		6,979				5,115
Total noninterest income (loss)		15,956				41,733
Noninterest expense
Salaries and employee benefits		90,273				90,290
Net occupancy		14,501				14,354
Advertising, travel & entertainment		3,928				3,363
ATM expense		1,546				1,483
Professional fees		5,715				5,080
Software and data processing		11,495				11,598
Communications		1,319				1,602
FDIC insurance		3,759				3,790
Amortization of intangibles		742				1,171
Other		18,079				14,406
Total noninterest expense		151,357				147,137
Income before income tax expense		82,630				107,377
Income tax expense		13,410				18,883
Net income	$	69,220			$	88,494
Common Share Data:
Weighted-average basic shares outstanding		30,137				30,293
Weighted-average diluted shares outstanding		30,226				30,369
Common shares outstanding end of period		29,723				30,379
Earnings per common share
Basic	$	2.30			$	2.92
Diluted		2.29				2.91
Book value per common share		28.52				26.73
Tangible book value per common share		21.72				20.05
Cash dividends paid per common share		1.44				1.44
Selected Performance Ratios:
Return on average assets		0.83	%			1.06	%
Return on average shareholders’ equity		8.40				11.03
Return on average tangible common equity(1)		11.22				14.92
Average yield on earning assets (FTE)(1)		5.25				5.40
Average rate on interest bearing liabilities		2.99				3.24
Net interest margin (FTE)(1)		2.93				2.88
Net interest spread (FTE)(1)		2.26				2.16
Average earning assets to average interest bearing liabilities		129.06				128.60
Noninterest expense to average total assets		1.81				1.76
Efficiency ratio (FTE)(1)		53.48				53.52

^{(1)   Refer to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.}

Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands)
	Year ended
	December 31,
		2025				2024
Nonperforming Assets:	$	38,243			$	3,589
Nonaccrual loans		10,486				3,185
Accruing loans past due more than 90 days		—				—
Restructured loans		27,509				2
Other real estate owned		248				388
Repossessed assets		—				14
Asset Quality Ratios:
Ratio of nonaccruing loans to:
Total loans		0.22	%			0.07	%
Ratio of nonperforming assets to:
Total assets		0.45				0.04
Total loans		0.79				0.08
Total loans and OREO		0.79				0.08
Ratio of allowance for loan losses to:
Nonaccruing loans		430.10				1,409.23
Nonperforming assets		117.93				1,250.60
Total loans		0.94				0.96
Net charge-offs (recoveries) to average loans outstanding		0.06				0.04
Capital Ratios:
Shareholders’ equity to total assets		9.95				9.53
Common equity tier 1 capital		12.87				13.04
Tier 1 risk-based capital		13.88				14.07
Total risk-based capital		18.54				16.49
Tier 1 leverage capital		9.72				9.67
Period end tangible equity to period end tangible assets(1)		7.77				7.33
Average shareholders’ equity to average total assets		9.85				9.58

^{(1) Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.}

Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands)
	Year ended
	December 31,
Loan Portfolio Composition		2025				2024
Real Estate Loans:
Construction	$	548,570			$	537,827
1-4 Family Residential		724,354				740,396
Commercial		2,712,816				2,579,735
Commercial Loans		444,720				363,167
Municipal Loans		346,720				390,968
Loans to Individuals		40,811				49,504
Total Loans	$	4,817,991			$	4,661,597
Summary of Changes in Allowances:
Allowance for Securities Held to Maturity
Balance at beginning of period	$	—			$	—
Provision for (reversal of) securities held to maturity		25				—
Balance at end of period	$	25			$	—
Summary of Changes in Allowances:
Allowance for Loan Losses
Balance at beginning of period	$	44,884			$	42,674
Loans charged-off		(4,257	)			(3,360	)
Recoveries of loans charged-off		1,470				1,433
Net loans (charged-off) recovered		(2,787	)			(1,927	)
Provision for (reversal of) loan losses		3,003				4,137
Balance at end of period	$	45,100			$	44,884
Allowance for Off-Balance-Sheet Credit Exposures
Balance at beginning of period	$	3,141			$	3,932
Provision for (reversal of) off-balance-sheet credit exposures		25				(791	)
Balance at end of period	$	3,166			$	3,141
Total Allowance for Credit Losses	$	48,291			$	48,025

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

The tables that follow show average earning assets and interest bearing liabilities together with the average yield on the earning assets and the average rate of the interest bearing liabilities for the periods presented. The interest and related yields presented are on a fully taxable-equivalent basis and are therefore non-GAAP measures. See “Non-GAAP Financial Measures” and “Non-GAAP Reconciliation” for more information.

	Three Months Ended
	December 31, 2025										September 30, 2025
	Average Balance				Interest			Average Yield/Rate(3)			Average Balance				Interest			Average Yield/Rate(3)
ASSETS
Loans(1)	$	4,788,584			$	71,616		5.93	%		$	4,640,220			$	70,240		6.01	%
Loans held for sale		675				12		7.05	%			776				12		6.14	%
Securities:
Taxable investment securities(2)		593,393				4,835		3.23	%			669,712				5,578		3.30	%
Tax-exempt investment securities(2)		893,382				7,939		3.53	%			1,094,978				10,097		3.66	%
Mortgage-backed and related securities(2)		1,284,064				16,493		5.10	%			1,058,860				14,174		5.31	%
Total securities		2,770,839				29,267		4.19	%			2,823,550				29,849		4.19	%
Federal Home Loan Bank stock, at cost, and equity investments		23,287				441		7.51	%			37,937				374		3.91	%
Interest earning deposits		313,810				3,019		3.82	%			334,523				3,631		4.31	%
Federal funds sold		6,906				69		3.96	%			17,546				195		4.41	%
Total earning assets		7,904,101				104,424		5.24	%			7,854,552				104,301		5.27	%
Cash and due from banks		82,585										87,815
Accrued interest and other assets		508,578										455,884
Less:  Allowance for loan losses		(45,559	)									(44,476	)
Total assets	$	8,449,705									$	8,353,775
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	647,035				2,061		1.26	%		$	618,059				1,772		1.14	%
Certificates of deposit		1,372,879				13,857		4.00	%			1,505,292				15,752		4.15	%
Interest bearing demand accounts		3,474,451				21,827		2.49	%			3,320,993				21,234		2.54	%
Total interest bearing deposits		5,494,365				37,745		2.73	%			5,444,344				38,758		2.82	%
Federal Home Loan Bank borrowings		187,725				1,274		2.69	%			298,138				2,847		3.79	%
Subordinated notes, net of unamortized debt issuance costs		239,648				4,022		6.66	%			169,196				2,319		5.44	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,278				980		6.45	%			60,277				1,025		6.75	%
Repurchase agreements		97,637				866		3.52	%			75,207				662		3.49	%
Other borrowings		14,826				193		5.16	%			35,544				567		6.33	%
Total interest bearing liabilities		6,094,479				45,080		2.93	%			6,082,706				46,178		3.01	%
Noninterest bearing deposits		1,423,350										1,375,075
Accrued expenses and other liabilities		86,863										83,601
Total liabilities		7,604,692										7,541,382
Shareholders’ equity		845,013										812,393
Total liabilities and shareholders’ equity	$	8,449,705									$	8,353,775
Net interest income (FTE)					$	59,344									$	58,123
Net interest margin (FTE)								2.98	%									2.94	%
Net interest spread (FTE)								2.31	%									2.26	%

^{(1)   Interest on loans includes net fees on loans that are not material in amount.
(2)   For the purpose of calculating the average yield, the average balance of securities do not include unrealized gains and losses on AFS securities.
(3)   Yield/rate includes the impact of applicable derivatives.}

^{Note: As of December 31, 2025 and September 30, 2025, loans totaling $10.5 million and $8.0 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.}

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
	Average Balance				Interest			Average Yield/Rate(3)
ASSETS
Loans(1)	$	4,604,175			$	70,155		6.06	%
Loans held for sale		1,562				23		5.86	%
Securities:
Taxable investment securities(2)		784,321				6,949		3.52	%
Tax-exempt investment securities(2)		1,138,271				10,793		3.77	%
Mortgage-backed and related securities(2)		1,031,187				12,043		4.65	%
Total securities		2,953,779				29,785		4.01	%
Federal Home Loan Bank stock, at cost, and equity investments		37,078				591		6.34	%
Interest earning deposits		273,656				3,160		4.59	%
Federal funds sold		43,121				508		4.69	%
Total earning assets		7,913,371				104,222		5.24	%
Cash and due from banks		102,914
Accrued interest and other assets		454,387
Less:  Allowance for loan losses		(44,418	)
Total assets	$	8,426,254
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	594,196				1,456		0.97	%
Certificates of deposit		1,187,800				13,537		4.53	%
Interest bearing demand accounts		3,459,122				23,468		2.70	%
Total interest bearing deposits		5,241,118				38,461		2.92	%
Federal Home Loan Bank borrowings		572,993				5,557		3.86	%
Subordinated notes, net of unamortized debt issuance costs		92,024				945		4.09	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,274				1,095		7.23	%
Repurchase agreements		80,891				782		3.85	%
Other borrowings		61,196				1,142		7.42	%
Total interest bearing liabilities		6,108,496				47,982		3.12	%
Noninterest bearing deposits		1,383,204
Accrued expenses and other liabilities		112,320
Total liabilities		7,604,020
Shareholders’ equity		822,234
Total liabilities and shareholders’ equity	$	8,426,254
Net interest income (FTE)					$	56,240
Net interest margin (FTE)								2.83	%
Net interest spread (FTE)								2.12	%

^{(1)   Interest on loans includes net fees on loans that are not material in amount.
(2)   For the purpose of calculating the average yield, the average balance of securities do not include unrealized gains and losses on AFS securities.
(3)   Yield/rate includes the impact of applicable derivatives.}

^{Note: As of December 31, 2024, loans totaling $3.2 million were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.}

Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands)
	Year ended
	December 31, 2025										December 31, 2024
	Average Balance				Interest			Average Yield/Rate			Average Balance				Interest			Average Yield/Rate
ASSETS
Loans(1)	$	4,644,030			$	277,814		5.98	%		$	4,593,280			$	281,790		6.13	%
Loans held for sale		827				51		6.17	%			3,179				76		2.39	%
Securities:
Taxable investment securities(2)		686,508				22,981		3.35	%			785,145				28,075		3.58	%
Tax-exempt investment securities(2)		1,062,889				38,640		3.64	%			1,212,844				48,547		4.00	%
Mortgage-backed and related securities(2)		1,097,523				57,230		5.21	%			878,623				45,222		5.15	%
Total securities		2,846,920				118,851		4.17	%			2,876,612				121,844		4.24	%
Federal Home Loan Bank stock, at cost, and equity investments		33,876				1,822		5.38	%			39,688				2,079		5.24	%
Interest earning deposits		307,019				12,773		4.16	%			308,628				16,265		5.27	%
Federal funds sold		23,892				1,050		4.39	%			53,709				2,855		5.32	%
Total earning assets		7,856,564				412,361		5.25	%			7,875,096				424,909		5.40	%
Cash and due from banks		86,116										106,965
Accrued interest and other assets		468,556										443,733
Less:  Allowance for loan losses		(44,972	)									(43,428	)
Total assets	$	8,366,264									$	8,382,366
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	613,950				6,713		1.09	%		$	600,375				5,824		0.97	%
Certificates of deposit		1,405,873				58,920		4.19	%			1,059,793				48,155		4.54	%
Interest bearing demand accounts		3,378,309				85,544		2.53	%			3,503,878				99,678		2.84	%
Total interest bearing deposits		5,398,132				151,177		2.80	%			5,164,046				153,657		2.98	%
Federal Home Loan Bank borrowings		372,342				13,679		3.67	%			601,366				24,450		4.07	%
Subordinated notes, net of unamortized debt issuance costs		148,712				8,208		5.52	%			92,478				3,774		4.08	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,277				4,034		6.69	%			60,272				4,621		7.67	%
Repurchase agreements		80,155				2,828		3.53	%			86,071				3,603		4.19	%
Other borrowings		27,834				2,064		7.42	%			119,672				8,104		6.77	%
Total interest bearing liabilities		6,087,452				181,990		2.99	%			6,123,905				198,209		3.24	%
Noninterest bearing deposits		1,368,466										1,353,065
Accrued expenses and other liabilities		85,881										102,778
Total liabilities		7,541,799										7,579,748
Shareholders’ equity		824,465										802,618
Total liabilities and shareholders’ equity	$	8,366,264									$	8,382,366
Net interest income (FTE)					$	230,371									$	226,700
Net interest margin (FTE)								2.93	%									2.88	%
Net interest spread (FTE)								2.26	%									2.16	%

^{(1)   Interest on loans includes net fees on loans that are not material in amount.
(2)   For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.}

^{Note: As of December 31, 2025 and 2024, loans totaling $10.5 million and $3.2 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.}

Southside Bancshares, Inc.
Non-GAAP Reconciliation (Unaudited)
(Dollars and shares in thousands, except per share data)

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

		Three Months Ended																				Year ended
			2025																2024				2025				2024
		Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,				Dec 31,				Dec 31,
Reconciliation of return on average common equity to return on average tangible common equity:
Net income		$	20,987			$	4,913			$	21,813			$	21,507			$	21,786			$	69,220			$	88,494
After-tax amortization expense			117				136				157				176				196				586				925
Adjusted net income available to common shareholders		$	21,104			$	5,049			$	21,970			$	21,683			$	21,982			$	69,806			$	89,419
Average shareholders' equity		$	845,013			$	812,393			$	815,473			$	824,893			$	822,234			$	824,465			$	802,618
Less: Average intangibles for the period			(202,217	)			(202,380	)			(202,569	)			(202,784	)			(203,020	)			(202,486	)			(203,448	)
Average tangible shareholders' equity		$	642,796			$	610,013			$	612,904			$	622,109			$	619,214			$	621,979			$	599,170
Return on average tangible common equity			13.03	%			3.28	%			14.38	%			14.14	%			14.12	%			11.22	%			14.92	%
Reconciliation of book value per share to tangible book value per share:
Common equity at end of period		$	847,615			$	834,850			$	807,200			$	816,623			$	811,942			$	847,615			$	811,942
Less: Intangible assets at end of period			(202,128	)			(202,277	)			(202,449	)			(202,647	)			(202,870	)			(202,128	)			(202,870	)
Tangible common shareholders' equity at end of period		$	645,487			$	632,573			$	604,751			$	613,976			$	609,072			$	645,487			$	609,072
Total assets at end of period		$	8,514,590			$	8,383,160			$	8,339,966			$	8,343,300			$	8,517,448			$	8,514,590			$	8,517,448
Less: Intangible assets at end of period			(202,128	)			(202,277	)			(202,449	)			(202,647	)			(202,870	)			(202,128	)			(202,870	)
Tangible assets at end of period		$	8,312,462			$	8,180,883			$	8,137,517			$	8,140,653			$	8,314,578			$	8,312,462			$	8,314,578
Period end tangible equity to period end tangible assets			7.77	%			7.73	%			7.43	%			7.54	%			7.33	%			7.77	%			7.33	%
Common shares outstanding end of period			29,723				30,066				30,082				30,410				30,379				29,723				30,379
Tangible book value per common share		$	21.72			$	21.04			$	20.10			$	20.19			$	20.05			$	21.72			$	20.05
Reconciliation of efficiency ratio to efficiency ratio (FTE), net interest margin to net interest margin (FTE) and net interest spread to net interest spread (FTE):
Net interest income (GAAP)		$	57,248			$	55,718			$	54,266			$	53,852			$	53,707			$	221,084			$	216,127
Tax-equivalent adjustments:
Loans			545				553				565				581				598				2,244				2,495
Tax-exempt investment securities			1,551				1,852				1,868				1,772				1,935				7,043				8,078
Net interest income (FTE)(1)			59,344				58,123				56,699				56,205				56,240				230,371				226,700
Noninterest income			5,578				(11,990	)			12,145				10,223				12,281				15,956				41,733
Nonrecurring income(2)			7,066				24,395				—				554				(25	)			32,015				2,214
Total revenue		$	71,988			$	70,528			$	68,844			$	66,982			$	68,496			$	278,342			$	270,647
Noninterest expense		$	37,477			$	37,534			$	39,257			$	37,089			$	38,159			$	151,357			$	147,137
Pre-tax amortization expense			(149	)			(172	)			(198	)			(223	)			(249	)			(742	)			(1,171	)
Nonrecurring expense(3)			306				14				(2,090	)			(1	)			(919	)			(1,771	)			(1,119	)
Adjusted noninterest expense		$	37,634			$	37,376			$	36,969			$	36,865			$	36,991			$	148,844			$	144,847
Efficiency ratio			53.85	%			54.87	%			55.67	%			57.04	%			56.08	%			55.32	%			55.69	%
Efficiency ratio (FTE)(1)			52.28	%			52.99	%			53.70	%			55.04	%			54.00	%			53.48	%			53.52	%
Average earning assets		$	7,904,101			$	7,854,552			$	7,709,799			$	7,958,424			$	7,913,371			$	7,856,564			$	7,875,096
Net interest margin			2.87	%			2.81	%			2.82	%			2.74	%			2.70	%			2.81	%			2.74	%
Net interest margin (FTE)(1)			2.98	%			2.94	%			2.95	%			2.86	%			2.83	%			2.93	%			2.88	%
Net interest spread			2.21	%			2.14	%			2.15	%			2.08	%			1.99	%			2.14	%			2.02	%
Net interest spread (FTE)(1)			2.31	%			2.26	%			2.27	%			2.20	%			2.12	%			2.26	%			2.16	%

^{(1)   These amounts are presented on a fully taxable-equivalent basis and are non-GAAP measures.
(2)   These adjustments may include net gain or loss on sale of securities available for sale, BOLI income related to death benefits realized and other investment income or loss in the periods where applicable.
(3)   These adjustments may include foreclosure expenses, branch closure expenses and other miscellaneous expense, in the periods where applicable.}

FAQ

What were Southside Bancshares (SBSI) Q4 2025 earnings and EPS?

Southside reported Q4 2025 net income of $21.0 million and diluted EPS of $0.70. According to the company, results were reduced by a $7.3 million net loss on sale of AFS securities recorded during the quarter, partially offset by higher net interest income.

Why did SBSI record large securities losses in 2025 and how large were they?

Southside recorded a $32.3 million net loss on sale of AFS securities for 2025. According to the company, about $82 million of long-duration municipal securities were sold at a combined taxable-equivalent yield of roughly 2.59% to reinvest in agency MBS.

How did Southside's net interest margin (NIM) perform in Q4 2025 and what drove the change?

Tax-equivalent NIM rose to 2.98% in Q4 2025, up four basis points linked quarter. According to the company, the increase was driven by lower funding costs, deposit mix shifts and increased reinvestment in mortgage-backed securities.

What is SBSI's asset quality at year-end 2025 and recent trends?

Nonperforming assets were 0.45% of total assets at December 31, 2025. According to the company, the increase was primarily due to a $27.5 million restructured loan and a rise in nonaccrual 1-4 family real estate loans.

How did Southside's loan and deposit balances change by December 31, 2025?

Loans grew to $4.82 billion (+3.4% YoY) and deposits to $6.87 billion (+3.2% YoY). According to the company, linked-quarter loan growth included construction, CRE and commercial loan increases, while brokered deposits declined.

Will SBSI take any capital actions after year-end 2025 that affect margin or liquidity?

Southside plans to redeem $93 million of subordinated notes due 2030 on February 15, 2026, which is expected to improve net interest margin. According to the company, total available contingent liquidity was approximately $2.78 billion at year-end.