Southside Bancshares, Inc. Announces Financial Results for the Third Quarter Ended September 30, 2025

Rhea-AI Summary

Southside Bancshares (NYSE: SBSI) reported third-quarter 2025 results on October 24, 2025. Net income was $4.9M (Q3 2024: $20.5M), and EPS diluted was $0.16 (Q3 2024: $0.68). Management recorded a $24.4M net loss on sale of available-for-sale securities after selling roughly $325M of long-duration municipals and MBS; most sales occurred in September. Linked quarter, loans rose $163.4M (3.5%) and deposits increased $329.6M (5.0%). The company issued $150.0M subordinated debt at 7.00% in August and increased share repurchase authorization by 1.0M shares to 2.0M.

Positive

• Loans +3.5% linked quarter (+$163.4M)
• Deposits +8.2% YoY (+$525.9M) to $6.96B
• Board increased share repurchase authorization by 1.0M shares

Negative

• $24.4M net loss on sale of AFS securities in Q3 2025
• Net income down 76.1% YoY to $4.9M for Q3 2025
• Nonperforming assets rose to $35.6M (0.42% of assets)
• Restructured loans increased by $27.5M, driving NPA rise

Insights

Banking financial analyst

Third‑quarter results show a large one‑time securities loss that lowered earnings despite solid loan and deposit growth.

Southside Bancshares sold approximately $325 million of longer‑duration AFS securities at a combined taxable equivalent yield of about 3.28%, realizing a net loss of $24.4 million that drove third‑quarter net income down to $4.9 million (EPS $0.16). Core banking metrics moved in mixed directions: linked‑quarter loan growth was notable ($163.4 million or 3.5%), deposits rose $329.6 million linked quarter and $525.9 million year‑over‑year, and available contingent liquidity remained sizeable at $2.77 billion.

The primary dependency is the one‑time realized loss; excluding that loss, noninterest income (excluding AFS losses) rose 22.8% year‑over‑year for the quarter and net interest income edged higher. Risks include the sensitivity of margins to funding costs (subordinated debt issuance of $150.0 million at 7.00% impacted NIM) and a rise in nonperforming assets to $35.6 million (0.42% of assets), partly driven by a restructured $27.5 million CRE loan. The allowance for loan losses remained around 0.95% of loans.

Watch execution on reinvestment of proceeds into US Agency MBS and Texas municipals and the trajectory of credit metrics over the next two to four quarters; the near‑term earnings drag primarily reflects the realized AFS loss, so upcoming quarterly results and any additional securities sales are the most direct monitors of recovery in reported earnings.

TYLER, Texas, Oct. 24, 2025 (GLOBE NEWSWIRE) -- Southside Bancshares, Inc. (“Southside” or the “Company”) (NYSE: SBSI) today reported its financial results for the quarter ended September 30, 2025.

“During the third quarter, we restructured a portion of our available for sale (“AFS”) securities portfolio to enhance future earnings by selling approximately $325 million of primarily lower yielding long duration municipal securities and, to a lesser extent, mortgage-backed securities (“MBS”), with a combined taxable equivalent yield of approximately 3.28% at a loss of $24.4 million,” stated Lee R. Gibson, Chief Executive Officer of Southside. “The majority of the sales occurred during September. The proceeds from the sale of these securities funded a portion of the loan growth during the quarter with the balance reinvested in US Agency MBS pools and Texas municipal securities. As previously disclosed, we issued $150.0 million of our subordinated debt at 7.00% fixed to floating rate notes during August. Linked quarter, net interest income increased $1.45 million and our net interest margin decreased one basis point to 2.94% due to the $150.0 million issuance of subordinated debt during the quarter. Linked quarter, total loans increased $163.4 million, with $81.0 million of this growth occurring on September 30, 2025.”

Operating Results for the Three Months Ended September 30, 2025

Net income was $4.9 million for the three months ended September 30, 2025, compared to $20.5 million for the same period in 2024, a decrease of $15.6 million, or 76.1%. Earnings per diluted common share were $0.16 for the three months ended September 30, 2025, compared to $0.68 for the same period in 2024, a decrease of $0.52, or 76.5%. The decrease in net income was driven by the net loss on sale of AFS securities and, to a lesser extent, an increase in noninterest expense, partially offset by increases in several noninterest income categories, decreases in income tax expense and provision for credit losses and an increase in net interest income. For the three months ended September 30, 2025, we had a $24.4 million net loss on sale of AFS securities, compared to a net loss of $1.9 million for the same period in 2024. Annualized returns on average assets and average shareholders’ equity for the three months ended September 30, 2025 were 0.23% and 2.40%, respectively, compared to 0.98% and 10.13%, respectively, for the three months ended September 30, 2024. Our efficiency ratio and tax-equivalent efficiency ratio⁽¹⁾ were 54.87% and 52.99%, respectively, for the three months ended September 30, 2025, compared to 53.94% and 51.90%, respectively, for the three months ended September 30, 2024, and 55.67% and 53.70%, respectively, for the three months ended June 30, 2025.

Net interest income for the three months ended September 30, 2025 was $55.7 million, an increase of $0.3 million, or 0.5%, compared to the same period in 2024. The increase in net interest income was due to the decrease in the average rate paid on our interest bearing liabilities and the increase in the average balance of our interest earning assets, partially offset by the decrease in the average yield of our interest earning assets. Linked quarter, net interest income increased $1.5 million, or 2.7%, compared to $54.3 million for the three months ended June 30, 2025, due to increases in the average balance of and the average yield on our interest earning assets, partially offset by increases in the average balance of and average rate paid on our interest bearing liabilities.

Our net interest margin and tax-equivalent net interest margin⁽¹⁾ decreased to 2.81% and 2.94%, respectively, for the three months ended September 30, 2025, compared to 2.82% and 2.95%, respectively, for both the three-month periods ended September 30, 2024 and June 30, 2025.

Noninterest income, excluding the net losses on the AFS securities, was $12.4 million and $10.1 million for the three months ended September 30, 2025 and 2024, respectively, an increase of $2.3 million, or 22.8%. The increase was due to increases in other noninterest income and trust fees. On a linked quarter basis, noninterest income, excluding the net losses on the AFS securities increased $0.3 million, or 2.1%, compared to the three months ended June 30, 2025, due primarily to the increase in trust fees during the three months ended September 30, 2025.

Noninterest expense increased $1.2 million, or 3.3%, to $37.5 million for the three months ended September 30, 2025, compared to $36.3 million for the same period in 2024, primarily due to increases in salaries and employee benefits expense, other noninterest expense and professional fees. On a linked quarter basis, noninterest expense decreased by $1.7 million, or 4.4%, compared to the three months ended June 30, 2025, due to a decrease in other noninterest expense, partially offset by an increase in salaries and employee benefits expense. The decrease in other noninterest expense was primarily due to a one-time charge of $1.2 million on the demolition of an old branch facility following completion of the new branch during the three months ended June 30, 2025.

Income tax expense decreased $4.2 million, or 95.7%, for the three months ended September 30, 2025, compared to the same period in 2024. On a linked quarter basis, income tax expense decreased $4.5 million, or 96.0%. Our effective tax rate (“ETR”) decreased to 3.7% for the three months ended September 30, 2025, compared to 17.6% for the three months ended September 30, 2024, and decreased from 17.8% for the three months ended June 30, 2025. The lower ETR for the three months ended September 30, 2025 compared to the same period in 2024, 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 a decrease in state income tax expense.

Operating Results for the Nine Months Ended September 30, 2025

Net income was $48.2 million for the nine months ended September 30, 2025, compared to $66.7 million for the same period in 2024, a decrease of $18.5 million, or 27.7%. Earnings per diluted common share were $1.59 for the nine months ended September 30, 2025, compared to $2.20 for the same period in 2024, a decrease of $0.61, or 27.7%. The decrease in net income was driven by the net loss on the sale of AFS securities and, to a lesser extent, increases in noninterest expense and provision for credit losses, partially offset by increases in several noninterest income categories, decreases in income tax expense and an increase in net interest income. For the nine months ended September 30, 2025, we had a $24.9 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 nine months ended September 30, 2025 were 0.77% and 7.89%, respectively, compared to 1.06% and 11.19%, respectively, for the nine months ended September 30, 2024. Our efficiency ratio and tax-equivalent efficiency ratio⁽¹⁾ were 55.84% and 53.89%, respectively, for the nine months ended September 30, 2025, compared to 55.56% and 53.35%, respectively, for the nine months ended September 30, 2024.

Net interest income was $163.8 million for the nine months ended September 30, 2025, compared to $162.4 million for the same period in 2024, an increase of $1.4 million, or 0.9%, due to decreases in the average rate paid on and average balance of our interest bearing liabilities and a change in the mix of our interest earning assets, 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 2.79% and 2.92%, respectively, for the nine months ended September 30, 2025, compared to 2.76% and 2.90%, respectively, for the same period in 2024.

Noninterest income, excluding the net losses on sale of AFS securities, was $35.3 million and $32.0 million, respectively, for the nine months ended September 30, 2025 and 2024, an increase of $3.4 million, or 10.5%. The increase was primarily due to an increase in other noninterest income and trust fees, partially offset by a decrease in BOLI income.

Noninterest expense was $113.9 million for the nine months ended September 30, 2025, compared to $109.0 million for the same period in 2024, an increase of $4.9 million, or 4.5%. The increase was primarily due to increases in other noninterest expense and professional fees.

Income tax expense decreased $4.6 million, or 32.3%, for the nine months ended September 30, 2025, compared to the same period in 2024. Our ETR was approximately 16.6% and 17.6% for the nine months ended September 30, 2025 and 2024, respectively. The lower ETR for the nine months ended September 30, 2025, as compared to the same period in 2024, 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 a decrease in state income tax expense.

Balance Sheet Data

At September 30, 2025, Southside had $8.38 billion in total assets, compared to $8.52 billion at December 31, 2024 and $8.36 billion at September 30, 2024.

Loans at September 30, 2025 were $4.77 billion, an increase of $187.2 million, or 4.1%, compared to $4.58 billion at September 30, 2024. Linked quarter, loans increased $163.4 million, or 3.5%, due to increases of $82.6 million in commercial real estate loans, $49.3 million in commercial loans and $49.1 million in construction loans. These increases were partially offset by decreases of $10.4 million in municipal loans, $6.0 million in 1-4 family residential loans and $1.3 million in loans to individuals.

Securities at September 30, 2025 were $2.56 billion, a decrease of $141.0 million, or 5.2%, compared to $2.70 billion at September 30, 2024. Linked quarter, securities decreased $174.2 million, or 6.4%, from $2.73 billion at June 30, 2025.

Deposits at September 30, 2025 were $6.96 billion, an increase of $525.9 million, or 8.2%, compared to $6.44 billion at September 30, 2024. Linked quarter, deposits increased $329.6 million, or 5.0%, from $6.63 billion at June 30, 2025.

At September 30, 2025, we had 179,097 total deposit accounts with an average balance of $34,000. Our estimated uninsured deposits were 36.9% of total deposits as of September 30, 2025. When excluding affiliate deposits (Southside-owned deposits) and public fund deposits (all collateralized), our total estimated deposits without insurance or collateral was 21.7% as of September 30, 2025. Our noninterest bearing deposits represent approximately 20.3% of total deposits. Linked quarter, our cost of interest bearing deposits remained at 2.82%. Linked quarter, our cost of total deposits decreased one basis point from 2.26% in the prior quarter to 2.25%.

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

Capital Resources and Liquidity

Our capital ratios and contingent liquidity sources remain solid. During the third quarter ended September 30, 2025, we repurchased 26,692 shares of the Company’s common stock at an average price of $30.24 per share, pursuant to our Stock Repurchase Plan (the “Plan”). On October 16, 2025, the Board of the Company increased its authorization under the Company’s current Plan by 1.0 million shares, for a total authorization to repurchase up to 2.0 million shares of the Company’s common stock from time to time. Under the Plan, previously approved on July 20, 2023, the Company has repurchased approximately 868,000 shares at an average price per share of $28.43, resulting in approximately 1.1 million shares remaining. 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. We have not purchased any common stock pursuant to the Plan subsequent to September 30, 2025.

As of September 30, 2025, our total available contingent liquidity, net of current outstanding borrowings, was $2.77 billion, consisting of FHLB advances, Federal Reserve Discount Window and correspondent bank lines of credit.

Asset Quality

Nonperforming assets at September 30, 2025 were $35.6 million, or 0.42% of total assets, an increase of $2.7 million, or 8.2%, from $32.9 million at June 30, 2025, due primarily to an increase of $3.0 million in nonaccrual loans. The increase in nonaccrual loans compared to June 30, 2025 included a $1.9 million increase in commercial loans and a $1.1 million increase in commercial real estate loans. Nonperforming assets increased $28.0 million, or 365.1%, compared to $7.7 million, or 0.09% of total assets, at September 30, 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 $45.3 million, or 0.95% of total loans, at September 30, 2025, compared to $44.4 million, or 0.97% of total loans, at June 30, 2025. The allowance for loan losses was $44.3 million, or 0.97% of total loans, at September 30, 2024. The decrease in allowance as a percentage of total loans compared to September 30, 2024 was primarily due to an improved commercial real estate forecast in the CECL model.

For the three months ended September 30, 2025, we recorded a provision for credit losses for loans of $1.7 million, compared to $2.3 million and $0.7 million for the three months ended September 30, 2024 and June 30, 2025, respectively. Net charge-offs were $0.8 million for the three months ended September 30, 2025, compared to net charge-offs of $0.4 million and $0.9 million for the three months ended September 30, 2024 and June 30, 2025, respectively. Net charge-offs were $2.0 million for the nine months ended September 30, 2025, compared to net charge-offs of $1.0 million for the nine months ended September 30, 2024.

We recorded a reversal of provision for credit losses on off-balance-sheet credit exposures of $0.6 million for the three months ended September 30, 2025, compared to a provision for losses on off-balance-sheet credit exposures of $0.1 million and a reversal of provision of $19,000 for the three months ended September 30, 2024 and June 30, 2025, respectively. We recorded a provision for losses on off-balance-sheet credit exposures of $8,000 for the nine months ended September 30, 2025, compared to a reversal of provision for credit losses on off-balance-sheet credit exposures of $0.6 million for the nine months ended September 30, 2024. The balance of the allowance for off-balance-sheet credit exposures was $3.1 million and $3.3 million at September 30, 2025 and 2024, respectively, and is included in other liabilities.

Dividend

Southside Bancshares, Inc. declared a third quarter cash dividend of $0.36 per share on August 7, 2025, which was paid on September 4, 2025, to all shareholders of record as of August 21, 2025.

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

Conference Call

Southside's management team will host a conference call to discuss its third quarter ended September 30, 2025 financial results on Friday, October 24, 2025 at 11:00 a.m. CDT. The conference call can be accessed by webcast, for listen-only mode, on the company website, https://investors.southside.com, under Events.

Those interested in participating in the question and answer session, or others who prefer to call-in, can register at https://registrations.events/direct/Q4I3408089094 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 $8.38 billion in assets as of September 30, 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.

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

Southside Bancshares, Inc. Consolidated Financial Summary (Unaudited) (Dollars in thousands)
	As of
		2025												2024
	Sep 30,				Jun 30,				Mar 31,				Dec 31,				Sep 30,
ASSETS
Cash and due from banks	$	90,519			$	109,669			$	103,359			$	91,409			$	130,147
Interest earning deposits		365,263				260,357				293,364				281,945				333,825
Federal funds sold		11,130				20,069				34,248				52,807				22,325
Securities available for sale, at estimated fair value		1,292,431				1,457,124				1,457,939				1,533,894				1,408,437
Securities held to maturity, at net carrying value		1,263,401				1,272,906				1,278,330				1,279,234				1,288,403
Total securities		2,555,832				2,730,030				2,736,269				2,813,128				2,696,840
Federal Home Loan Bank stock, at cost		9,359				24,384				34,208				33,818				40,291
Loans held for sale		497				428				903				1,946				768
Loans		4,765,289				4,601,933				4,567,239				4,661,597				4,578,048
Less: Allowance for loan losses		(45,294	)			(44,421	)			(44,623	)			(44,884	)			(44,276	)
Net loans		4,719,995				4,557,512				4,522,616				4,616,713				4,533,772
Premises & equipment, net		147,187				147,263				142,245				141,648				138,811
Goodwill		201,116				201,116				201,116				201,116				201,116
Other intangible assets, net		1,161				1,333				1,531				1,754				2,003
Bank owned life insurance		139,697				138,826				137,962				138,313				137,489
Other assets		141,404				148,979				135,479				142,851				124,876
Total assets	$	8,383,160			$	8,339,966			$	8,343,300			$	8,517,448			$	8,362,263
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest bearing deposits	$	1,411,764			$	1,368,453			$	1,379,641			$	1,357,152			$	1,377,022
Interest bearing deposits		5,549,823				5,263,511				5,211,210				5,297,096				5,058,680
Total deposits		6,961,587				6,631,964				6,590,851				6,654,248				6,435,702
Other borrowings and Federal Home Loan Bank borrowings		200,706				611,367				691,417				808,352				865,856
Subordinated notes, net of unamortized debt issuance costs		239,601				92,115				92,078				92,042				92,006
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,278				60,277				60,276				60,274				60,273
Other liabilities		86,138				137,043				92,055				90,590				103,172
Total liabilities		7,548,310				7,532,766				7,526,677				7,705,506				7,557,009
Shareholders' equity		834,850				807,200				816,623				811,942				805,254
Total liabilities and shareholders' equity	$	8,383,160			$	8,339,966			$	8,343,300			$	8,517,448			$	8,362,263

Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars and shares in thousands, except per share data)
	Three Months Ended
		2025												2024
	Sep 30,				Jun 30,				Mar 31,				Dec 31,				Sep 30,
Income Statement:
Total interest and dividend income	$	101,896			$	98,562			$	100,288			$	101,689			$	105,703
Total interest expense		46,178				44,296				46,436				47,982				50,239
Net interest income		55,718				54,266				53,852				53,707				55,464
Provision for (reversal of) credit losses		1,092				622				758				1,384				2,389
Net interest income after provision for (reversal of) credit losses		54,626				53,644				53,094				52,323				53,075
Noninterest income
Deposit services		6,069				6,125				5,829				6,084				6,199
Net gain (loss) on sale of securities available for sale		(24,395	)			—				(554	)			—				(1,929	)
Gain (loss) on sale of loans		164				99				55				138				115
Trust fees		2,081				1,879				1,765				1,773				1,628
Bank owned life insurance		871				833				799				848				857
Brokerage services		1,172				1,219				1,120				1,054				1,068
Other		2,048				1,990				1,209				2,384				233
Total noninterest income (loss)		(11,990	)			12,145				10,223				12,281				8,171
Noninterest expense
Salaries and employee benefits		22,803				22,272				22,382				22,960				22,233
Net occupancy		3,761				3,621				3,404				3,629				3,613
Advertising, travel & entertainment		907				950				924				884				734
ATM expense		444				405				378				378				412
Professional fees		1,451				1,401				1,520				1,645				1,206
Software and data processing		2,770				3,027				2,839				2,931				2,951
Communications		321				342				383				320				423
FDIC insurance		920				955				947				931				939
Amortization of intangibles		172				198				223				249				278
Other		3,985				6,086				4,089				4,232				3,543
Total noninterest expense		37,534				39,257				37,089				38,159				36,332
Income before income tax expense		5,102				26,532				26,228				26,445				24,914
Income tax expense		189				4,719				4,721				4,659				4,390
Net income	$	4,913			$	21,813			$	21,507			$	21,786			$	20,524
Common Share Data:
Weighted-average basic shares outstanding		30,067				30,234				30,390				30,343				30,286
Weighted-average diluted shares outstanding		30,135				30,308				30,483				30,459				30,370
Common shares outstanding end of period		30,066				30,082				30,410				30,379				30,308
Earnings per common share
Basic	$	0.16			$	0.72			$	0.71			$	0.72			$	0.68
Diluted		0.16				0.72				0.71				0.71				0.68
Book value per common share		27.77				26.83				26.85				26.73				26.57
Tangible book value per common share		21.04				20.10				20.19				20.05				19.87
Cash dividends paid per common share		0.36				0.36				0.36				0.36				0.36
Selected Performance Ratios:
Return on average assets		0.23	%			1.07	%			1.03	%			1.03	%			0.98	%
Return on average shareholders’ equity		2.40				10.73				10.57				10.54				10.13
Return on average tangible common equity(1)		3.28				14.38				14.14				14.12				13.69
Average yield on earning assets (FTE)(1)		5.27				5.25				5.23				5.24				5.51
Average rate on interest bearing liabilities		3.01				2.98				3.03				3.12				3.28
Net interest margin (FTE)(1)		2.94				2.95				2.86				2.83				2.95
Net interest spread (FTE)(1)		2.26				2.27				2.20				2.12				2.23
Average earning assets to average interest bearing liabilities		129.13				129.33				128.10				129.55				128.51
Noninterest expense to average total assets		1.78				1.92				1.78				1.80				1.73
Efficiency ratio (FTE)(1)		52.99				53.70				55.04				54.00				51.90

^{(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
	Sep 30,				Jun 30,				Mar 31,				Dec 31,				Sep 30,
Nonperforming Assets:	$	35,608			$	32,909			$	32,193			$	3,589			$	7,656
Nonaccrual loans		7,955				4,998				4,254				3,185				7,254
Accruing loans past due more than 90 days		—				—				—				—				—
Restructured loans		27,501				27,512				27,505				2				—
Other real estate owned		128				380				388				388				388
Repossessed assets		24				19				46				14				14
Asset Quality Ratios:
Ratio of nonaccruing loans to:
Total loans		0.17	%			0.11	%			0.09	%			0.07	%			0.16	%
Ratio of nonperforming assets to:
Total assets		0.42				0.39				0.39				0.04				0.09
Total loans		0.75				0.72				0.70				0.08				0.17
Total loans and OREO		0.75				0.72				0.70				0.08				0.17
Ratio of allowance for loan losses to:
Nonaccruing loans		569.38				888.78				1,048.97				1,409.23				610.37
Nonperforming assets		127.20				134.98				138.61				1,250.60				578.32
Total loans		0.95				0.97				0.98				0.96				0.97
Net charge-offs (recoveries) to average loans outstanding		0.07				0.08				0.03				0.08				0.04
Capital Ratios:
Shareholders’ equity to total assets		9.96				9.68				9.79				9.53				9.63
Common equity tier 1 capital		12.97				13.36				13.44				13.04				13.07
Tier 1 risk-based capital		13.99				14.41				14.49				14.07				14.12
Total risk-based capital		19.01				16.91				17.01				16.49				16.59
Tier 1 leverage capital		9.78				10.03				9.73				9.67				9.61
Period end tangible equity to period end tangible assets(1)		7.73				7.43				7.54				7.33				7.38
Average shareholders’ equity to average total assets		9.72				9.94				9.75				9.76				9.67

^{(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	Sep 30,				Jun 30,				Mar 31,				Dec 31,				Sep 30,
Real Estate Loans:
Construction	$	519,528			$	470,380			$	458,101			$	537,827			$	585,817
1-4 Family Residential		730,061				736,108				741,432				740,396				755,406
Commercial		2,688,712				2,606,072				2,577,229				2,579,735				2,422,612
Commercial Loans		429,952				380,612				371,643				363,167				358,854
Municipal Loans		353,324				363,746				371,271				390,968				402,041
Loans to Individuals		43,712				45,015				47,563				49,504				53,318
Total Loans	$	4,765,289			$	4,601,933			$	4,567,239			$	4,661,597			$	4,578,048
Summary of Changes in Allowances:
Allowance for Securities Held to Maturity
Balance at beginning of period	$	55			$	64			$	—			$	—			$	—
Provision for (reversal of) securities held to maturity		—				(9	)			64				—				—
Balance at end of period	$	55			$	55			$	64			$	—			$	—
Allowance for Loan Losses
Balance at beginning of period	$	44,421			$	44,623			$	44,884			$	44,276			$	42,407
Loans charged-off		(1,335	)			(1,194	)			(613	)			(1,232	)			(773	)
Recoveries of loans charged-off		491				342				310				277				365
Net loans (charged-off) recovered		(844	)			(852	)			(303	)			(955	)			(408	)
Provision for (reversal of) loan losses		1,717				650				42				1,563				2,277
Balance at end of period	$	45,294			$	44,421			$	44,623			$	44,884			$	44,276
Allowance for Off-Balance-Sheet Credit Exposures
Balance at beginning of period	$	3,774			$	3,793			$	3,141			$	3,320			$	3,208
Provision for (reversal of) off-balance-sheet credit exposures		(625	)			(19	)			652				(179	)			112
Balance at end of period	$	3,149			$	3,774			$	3,793			$	3,141			$	3,320
Total Allowance for Credit Losses	$	48,498			$	48,250			$	48,480			$	48,025			$	47,596

Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands)
	Nine Months Ended
	September 30,
		2025				2024
Income Statement:
Total interest and dividend income	$	300,746			$	312,647
Total interest expense		136,910				150,227
Net interest income		163,836				162,420
Provision for (reversal of) credit losses		2,472				1,962
Net interest income after provision for (reversal of) credit losses		161,364				160,458
Noninterest income
Deposit services		18,023				18,341
Net gain (loss) on sale of securities available for sale		(24,949	)			(2,510	)
Gain (loss) on sale of loans		318				(101	)
Trust fees		5,725				4,420
Bank owned life insurance		2,503				3,408
Brokerage services		3,511				3,163
Other		5,247				2,731
Total noninterest income (loss)		10,378				29,452
Noninterest expense
Salaries and employee benefits		67,457				67,330
Net occupancy		10,786				10,725
Advertising, travel & entertainment		2,781				2,479
ATM expense		1,227				1,105
Professional fees		4,372				3,435
Software and data processing		8,636				8,667
Communications		1,046				1,282
FDIC insurance		2,822				2,859
Amortization of intangibles		593				922
Other		14,160				10,174
Total noninterest expense		113,880				108,978
Income before income tax expense		57,862				80,932
Income tax expense		9,629				14,224
Net income	$	48,233			$	66,708
Common Share Data:
Weighted-average basic shares outstanding		30,229				30,276
Weighted-average diluted shares outstanding		30,316				30,332
Common shares outstanding end of period		30,066				30,308
Earnings per common share
Basic	$	1.59			$	2.20
Diluted		1.59				2.20
Book value per common share		27.77				26.57
Tangible book value per common share		21.04				19.87
Cash dividends paid per common share		1.08				1.08
Selected Performance Ratios:
Return on average assets		0.77	%			1.06	%
Return on average shareholders’ equity		7.89				11.19
Return on average tangible common equity(1)		10.59				15.20
Average yield on earning assets (FTE)(1)		5.25				5.45
Average rate on interest bearing liabilities		3.01				3.27
Net interest margin (FTE)(1)		2.92				2.90
Net interest spread (FTE)(1)		2.24				2.18
Average earning assets to average interest bearing liabilities		128.85				128.28
Noninterest expense to average total assets		1.83				1.74
Efficiency ratio (FTE)(1)		53.89				53.35

^{(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,
		2025				2024
Nonperforming Assets:	$	35,608			$	7,656
Nonaccrual loans		7,955				7,254
Accruing loans past due more than 90 days		—				—
Restructured loans		27,501				—
Other real estate owned		128				388
Repossessed assets		24				14
Asset Quality Ratios:
Ratio of nonaccruing loans to:
Total loans		0.17	%			0.16	%
Ratio of nonperforming assets to:
Total assets		0.42				0.09
Total loans		0.75				0.17
Total loans and OREO		0.75				0.17
Ratio of allowance for loan losses to:
Nonaccruing loans		569.38				610.37
Nonperforming assets		127.20				578.32
Total loans		0.95				0.97
Net charge-offs (recoveries) to average loans outstanding		0.06				0.03
Capital Ratios:
Shareholders’ equity to total assets		9.96				9.63
Common equity tier 1 capital		12.97				13.07
Tier 1 risk-based capital		13.99				14.12
Total risk-based capital		19.01				16.59
Tier 1 leverage capital		9.78				9.61
Period end tangible equity to period end tangible assets(1)		7.73				7.38
Average shareholders’ equity to average total assets		9.80				9.51

^{(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		2025				2024
Real Estate Loans:
Construction	$	519,528			$	585,817
1-4 Family Residential		730,061				755,406
Commercial		2,688,712				2,422,612
Commercial Loans		429,952				358,854
Municipal Loans		353,324				402,041
Loans to Individuals		43,712				53,318
Total Loans	$	4,765,289			$	4,578,048
Summary of Changes in Allowances:
Allowance for Securities Held to Maturity
Balance at beginning of period	$	—			$	—
Provision for (reversal of) securities held to maturity		55				—
Balance at end of period	$	55			$	—
Summary of Changes in Allowances:
Allowance for Loan Losses
Balance at beginning of period	$	44,884			$	42,674
Loans charged-off		(3,142	)			(2,128	)
Recoveries of loans charged-off		1,143				1,156
Net loans (charged-off) recovered		(1,999	)			(972	)
Provision for (reversal of) loan losses		2,409				2,574
Balance at end of period	$	45,294			$	44,276
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		8				(612	)
Balance at end of period	$	3,149			$	3,320
Total Allowance for Credit Losses	$	48,498			$	47,596

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

Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands)
	Three Months Ended
	September 30, 2025										June 30, 2025
	Average Balance				Interest			Average Yield/Rate(3)			Average Balance				Interest			Average Yield/Rate(3)
ASSETS
Loans(1)	$	4,640,220			$	70,240		6.01	%		$	4,519,668			$	67,798		6.02	%
Loans held for sale		776				12		6.14	%			1,108				16		5.79	%
Securities:
Taxable investment securities(2)		669,712				5,578		3.30	%			735,669				6,205		3.38	%
Tax-exempt investment securities(2)		1,094,978				10,097		3.66	%			1,130,903				10,351		3.67	%
Mortgage-backed and related securities(2)		1,058,860				14,174		5.31	%			1,003,887				13,040		5.21	%
Total securities		2,823,550				29,849		4.19	%			2,870,459				29,596		4.14	%
Federal Home Loan Bank stock, at cost, and equity investments		37,937				374		3.91	%			31,169				524		6.74	%
Interest earning deposits		334,523				3,631		4.31	%			259,617				2,753		4.25	%
Federal funds sold		17,546				195		4.41	%			27,778				308		4.45	%
Total earning assets		7,854,552				104,301		5.27	%			7,709,799				100,995		5.25	%
Cash and due from banks		87,815										84,419
Accrued interest and other assets		455,884										452,573
Less:  Allowance for loan losses		(44,476	)									(44,747	)
Total assets	$	8,353,775									$	8,202,044
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	618,059				1,772		1.14	%		$	596,125				1,451		0.98	%
Certificates of deposit		1,505,292				15,752		4.15	%			1,407,017				14,905		4.25	%
Interest bearing demand accounts		3,320,993				21,234		2.54	%			3,311,330				21,071		2.55	%
Total interest bearing deposits		5,444,344				38,758		2.82	%			5,314,472				37,427		2.82	%
Federal Home Loan Bank borrowings		298,138				2,847		3.79	%			394,119				3,721		3.79	%
Subordinated notes, net of unamortized debt issuance costs		169,196				2,319		5.44	%			92,097				935		4.07	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,277				1,025		6.75	%			60,276				1,015		6.75	%
Repurchase agreements		75,207				662		3.49	%			72,295				634		3.52	%
Other borrowings		35,544				567		6.33	%			28,022				564		8.07	%
Total interest bearing liabilities		6,082,706				46,178		3.01	%			5,961,281				44,296		2.98	%
Noninterest bearing deposits		1,375,075										1,339,463
Accrued expenses and other liabilities		83,601										85,827
Total liabilities		7,541,382										7,386,571
Shareholders’ equity		812,393										815,473
Total liabilities and shareholders’ equity	$	8,353,775									$	8,202,044
Net interest income (FTE)					$	58,123									$	56,699
Net interest margin (FTE)								2.94	%									2.95	%
Net interest spread (FTE)								2.26	%									2.27	%

^{(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 September 30, 2025 and June 30, 2025, loans totaling $8.0 million and $5.0 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
	March 31, 2025										December 31, 2024
	Average Balance				Interest			Average Yield/Rate(3)			Average Balance				Interest			Average Yield/Rate(3)
ASSETS
Loans(1)	$	4,625,902			$	68,160		5.98	%		$	4,604,175			$	70,155		6.06	%
Loans held for sale		752				11		5.93	%			1,562				23		5.86	%
Securities:
Taxable investment securities(2)		749,155				6,363		3.44	%			784,321				6,949		3.52	%
Tax-exempt investment securities(2)		1,134,590				10,253		3.66	%			1,138,271				10,793		3.77	%
Mortgage-backed and related securities(2)		1,041,038				13,523		5.27	%			1,031,187				12,043		4.65	%
Total securities		2,924,783				30,139		4.18	%			2,953,779				29,785		4.01	%
Federal Home Loan Bank stock, at cost, and equity investments		43,285				483		4.53	%			37,078				591		6.34	%
Interest earning deposits		319,889				3,370		4.27	%			273,656				3,160		4.59	%
Federal funds sold		43,813				478		4.42	%			43,121				508		4.69	%
Total earning assets		7,958,424				102,641		5.23	%			7,913,371				104,222		5.24	%
Cash and due from banks		89,703										102,914
Accrued interest and other assets		457,948										454,387
Less:  Allowance for loan losses		(45,105	)									(44,418	)
Total assets	$	8,460,970									$	8,426,254
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	593,953				1,429		0.98	%		$	594,196				1,456		0.97	%
Certificates of deposit		1,336,815				14,406		4.37	%			1,187,800				13,537		4.53	%
Interest bearing demand accounts		3,406,342				21,412		2.55	%			3,459,122				23,468		2.70	%
Total interest bearing deposits		5,337,110				37,247		2.83	%			5,241,118				38,461		2.92	%
Federal Home Loan Bank borrowings		614,897				5,837		3.85	%			572,993				5,557		3.86	%
Subordinated notes, net of unamortized debt issuance costs		92,060				932		4.11	%			92,024				945		4.09	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,275				1,014		6.82	%			60,274				1,095		7.23	%
Repurchase agreements		75,291				666		3.59	%			80,891				782		3.85	%
Other borrowings		33,061				740		9.08	%			61,196				1,142		7.42	%
Total interest bearing liabilities		6,212,694				46,436		3.03	%			6,108,496				47,982		3.12	%
Noninterest bearing deposits		1,334,933										1,383,204
Accrued expenses and other liabilities		88,450										112,320
Total liabilities		7,636,077										7,604,020
Shareholders’ equity		824,893										822,234
Total liabilities and shareholders’ equity	$	8,460,970									$	8,426,254
Net interest income (FTE)					$	56,205									$	56,240
Net interest margin (FTE)								2.86	%									2.83	%
Net interest spread (FTE)								2.20	%									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 March 31, 2025 and December 31, 2024, loans totaling $4.3 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. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands)
	Three Months Ended
	September 30, 2024
	Average Balance				Interest			Average Yield/Rate(3)
ASSETS
Loans(1)	$	4,613,028			$	72,493		6.25	%
Loans held for sale		871				11		5.02	%
Securities:
Taxable investment securities(2)		791,914				7,150		3.59	%
Tax-exempt investment securities(2)		1,174,445				11,825		4.01	%
Mortgage-backed and related securities(2)		886,325				11,976		5.38	%
Total securities		2,852,684				30,951		4.32	%
Federal Home Loan Bank stock, at cost, and equity investments		41,159				582		5.63	%
Interest earning deposits		281,313				3,798		5.37	%
Federal funds sold		33,971				488		5.71	%
Total earning assets		7,823,026				108,323		5.51	%
Cash and due from banks		100,578
Accrued interest and other assets		455,091
Less:  Allowance for loan losses		(42,581	)
Total assets	$	8,336,114
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	598,116				1,490		0.99	%
Certificates of deposit		1,087,613				12,647		4.63	%
Interest bearing demand accounts		3,409,911				24,395		2.85	%
Total interest bearing deposits		5,095,640				38,532		3.01	%
Federal Home Loan Bank borrowings		618,708				6,488		4.17	%
Subordinated notes, net of unamortized debt issuance costs		91,988				937		4.05	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,273				1,180		7.79	%
Repurchase agreements		83,297				899		4.29	%
Other borrowings		137,482				2,203		6.37	%
Total interest bearing liabilities		6,087,388				50,239		3.28	%
Noninterest bearing deposits		1,344,165
Accrued expenses and other liabilities		98,331
Total liabilities		7,529,884
Shareholders’ equity		806,230
Total liabilities and shareholders’ equity	$	8,336,114
Net interest income (FTE)					$	58,084
Net interest margin (FTE)								2.95	%
Net interest spread (FTE)								2.23	%

<sup>(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 September 30, 2024, loans totaling $7.3 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.</sup>

Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands)
	Nine Months Ended
	September 30, 2025										September 30, 2024
	Average Balance				Interest			Average Yield/Rate			Average Balance				Interest			Average Yield/Rate
ASSETS
Loans(1)	$	4,595,316			$	206,198		6.00	%		$	4,589,621			$	211,635		6.16	%
Loans held for sale		879				39		5.93	%			3,721				53		1.90	%
Securities:
Taxable investment securities(2)		717,887				18,146		3.38	%			785,422				21,126		3.59	%
Tax-exempt investment securities(2)		1,120,012				30,701		3.66	%			1,237,884				37,754		4.07	%
Mortgage-backed and related securities(2)		1,034,660				40,737		5.26	%			827,396				33,179		5.36	%
Total securities		2,872,559				89,584		4.17	%			2,850,702				92,059		4.31	%
Federal Home Loan Bank stock, at cost, and equity investments		37,444				1,381		4.93	%			40,565				1,488		4.90	%
Interest earning deposits		304,730				9,754		4.28	%			320,371				13,105		5.46	%
Federal funds sold		29,616				981		4.43	%			57,265				2,347		5.47	%
Total earning assets		7,840,544				307,937		5.25	%			7,862,245				320,687		5.45	%
Cash and due from banks		87,305										108,325
Accrued interest and other assets		455,402										440,340
Less:  Allowance for loan losses		(44,774	)									(43,096	)
Total assets	$	8,338,477									$	8,367,814
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	602,800				4,652		1.03	%		$	602,450				4,368		0.97	%
Certificates of deposit		1,416,992				45,063		4.25	%			1,016,812				34,618		4.55	%
Interest bearing demand accounts		3,345,909				63,717		2.55	%			3,518,906				76,210		2.89	%
Total interest bearing deposits		5,365,701				113,432		2.83	%			5,138,168				115,196		2.99	%
Federal Home Loan Bank borrowings		434,558				12,405		3.82	%			610,893				18,893		4.13	%
Subordinated notes, net of unamortized debt issuance costs		118,067				4,186		4.74	%			92,631				2,829		4.08	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,276				3,054		6.77	%			60,271				3,526		7.81	%
Repurchase agreements		74,264				1,962		3.53	%			87,811				2,821		4.29	%
Other borrowings		32,218				1,871		7.76	%			139,306				6,962		6.68	%
Total interest bearing liabilities		6,085,084				136,910		3.01	%			6,129,080				150,227		3.27	%
Noninterest bearing deposits		1,349,971										1,342,945
Accrued expenses and other liabilities		85,882										99,758
Total liabilities		7,520,937										7,571,783
Shareholders’ equity		817,540										796,031
Total liabilities and shareholders’ equity	$	8,338,477									$	8,367,814
Net interest income (FTE)					$	171,027									$	170,460
Net interest margin (FTE)								2.92	%									2.90	%
Net interest spread (FTE)								2.24	%									2.18	%

^{(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 September 30, 2025 and 2024, loans totaling $8.0 million and $7.3 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.}

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

Southside Bancshares, Inc. Non-GAAP Reconciliation (Unaudited) (Dollars and shares in thousands, except per share data)
		Three Months Ended																				Nine Months Ended
			2025												2024								2025				2024
		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		$	4,913			$	21,813			$	21,507			$	21,786			$	20,524			$	48,233			$	66,708
After-tax amortization expense			136				157				176				196				220				469				728
Adjusted net income available to common shareholders		$	5,049			$	21,970			$	21,683			$	21,982			$	20,744			$	48,702			$	67,436
Average shareholders' equity		$	812,393			$	815,473			$	824,893			$	822,234			$	806,230			$	817,540			$	796,031
Less: Average intangibles for the period			(202,380	)			(202,569	)			(202,784	)			(203,020	)			(203,288	)			(202,576	)			(203,592	)
Average tangible shareholders' equity		$	610,013			$	612,904			$	622,109			$	619,214			$	602,942			$	614,964			$	592,439
Return on average tangible common equity			3.28	%			14.38	%			14.14	%			14.12	%			13.69	%			10.59	%			15.20	%
Reconciliation of book value per share to tangible book value per share:
Common equity at end of period		$	834,850			$	807,200			$	816,623			$	811,942			$	805,254			$	834,850			$	805,254
Less: Intangible assets at end of period			(202,277	)			(202,449	)			(202,647	)			(202,870	)			(203,119	)			(202,277	)			(203,119	)
Tangible common shareholders' equity at end of period		$	632,573			$	604,751			$	613,976			$	609,072			$	602,135			$	632,573			$	602,135
Total assets at end of period		$	8,383,160			$	8,339,966			$	8,343,300			$	8,517,448			$	8,362,263			$	8,383,160			$	8,362,263
Less: Intangible assets at end of period			(202,277	)			(202,449	)			(202,647	)			(202,870	)			(203,119	)			(202,277	)			(203,119	)
Tangible assets at end of period		$	8,180,883			$	8,137,517			$	8,140,653			$	8,314,578			$	8,159,144			$	8,180,883			$	8,159,144
Period end tangible equity to period end tangible assets			7.73	%			7.43	%			7.54	%			7.33	%			7.38	%			7.73	%			7.38	%
Common shares outstanding end of period			30,066				30,082				30,410				30,379				30,308				30,066				30,308
Tangible book value per common share		$	21.04			$	20.10			$	20.19			$	20.05			$	19.87			$	21.04			$	19.87
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)		$	55,718			$	54,266			$	53,852			$	53,707			$	55,464			$	163,836			$	162,420
Tax-equivalent adjustments:
Loans			553				565				581				598				608				1,699				1,897
Tax-exempt investment securities			1,852				1,868				1,772				1,935				2,012				5,492				6,143
Net interest income (FTE)(1)			58,123				56,699				56,205				56,240				58,084				171,027				170,460
Noninterest income			(11,990	)			12,145				10,223				12,281				8,171				10,378				29,452
Nonrecurring income(2)			24,395				—				554				(25	)			2,797				24,949				2,239
Total revenue		$	70,528			$	68,844			$	66,982			$	68,496			$	69,052			$	206,354			$	202,151
Noninterest expense		$	37,534			$	39,257			$	37,089			$	38,159			$	36,332			$	113,880			$	108,978
Pre-tax amortization expense			(172	)			(198	)			(223	)			(249	)			(278	)			(593	)			(922	)
Nonrecurring expense(3)			14				(2,090	)			(1	)			(919	)			(219	)			(2,077	)			(200	)
Adjusted noninterest expense		$	37,376			$	36,969			$	36,865			$	36,991			$	35,835			$	111,210			$	107,856
Efficiency ratio			54.87	%			55.67	%			57.04	%			56.08	%			53.94	%			55.84	%			55.56	%
Efficiency ratio (FTE)(1)			52.99	%			53.70	%			55.04	%			54.00	%			51.90	%			53.89	%			53.35	%
Average earning assets		$	7,854,552			$	7,709,799			$	7,958,424			$	7,913,371			$	7,823,026			$	7,840,544			$	7,862,245
Net interest margin			2.81	%			2.82	%			2.74	%			2.70	%			2.82	%			2.79	%			2.76	%
Net interest margin (FTE)(1)			2.94	%			2.95	%			2.86	%			2.83	%			2.95	%			2.92	%			2.90	%
Net interest spread			2.14	%			2.15	%			2.08	%			1.99	%			2.10	%			2.12	%			2.04	%
Net interest spread (FTE)(1)			2.26	%			2.27	%			2.20	%			2.12	%			2.23	%			2.24	%			2.18	%

                                                                                                                                                                                                                                                                                                                                                                                                              
^{(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 caused Southside Bancshares (SBSI) Q3 2025 net income to drop to $4.9M?

A $24.4M net loss on sale of AFS securities (primarily long-duration municipals and MBS) and higher noninterest expense reduced net income.

How much in securities did SBSI sell in Q3 2025 and what was the yield?

SBSI sold approximately $325M of mainly municipal securities and MBS with a combined taxable-equivalent yield of ~3.28%.

What loan and deposit changes did SBSI report for Q3 2025 (SBSI)?

Linked quarter loans increased $163.4M (3.5%); deposits increased $329.6M (5.0%), with total deposits at $6.96B.

Did Southside issue debt or change capital actions in Q3 2025?

Yes — the company issued $150.0M subordinated debt at a 7.00% fixed-to-floating rate in August and increased its share buyback authorization by 1.0M shares on October 16, 2025.

What is SBSI’s asset quality trend in Q3 2025?

Nonperforming assets rose to $35.6M (0.42% of assets), driven mainly by a $27.5M increase in restructured loans.