Southside Bancshares, Inc. Announces Financial Results for the Second Quarter Ended June 30, 2026

Southside Bancshares, Inc. (“Southside” or the “Company”) (NYSE: SBSI) today reported its financial results for the quarter ended June 30, 2026.“We are pleased to report solid financial results for the second quarter ended June 30, 2026, which include earnings per share of $0.90, a return on averag…

Southside Bancshares, Inc. (“Southside” or the “Company”) (NYSE: SBSI) today reported its financial results for the quarter ended June 30, 2026.

“We are pleased to report solid financial results for the second quarter ended June 30, 2026, which include earnings per share of $0.90, a return on average assets of 1.23% and a return on average tangible common equity of 16.09%,” stated Keith Donahoe, President and Chief Executive Officer of Southside. “We recorded an increase in noninterest income and a decrease in noninterest expense, resulting in an increase in linked quarter net income of $3.6 million, or 15.4%. Linked quarter funding costs increased resulting in a decrease in net interest income of $355,000 to $57.3 million. Asset quality metrics remain solid with the nonperforming assets to total assets ratio at 0.11%. Although linked quarter loan growth was modest at $3.4 million, we had strong production during the quarter and expect to meet our mid-single digit loan growth for the year.”

Operating Results for the Three Months Ended June 30, 2026

Net income was $26.8 million for the three months ended June 30, 2026, compared to $21.8 million for the same period in 2025, an increase of $5.0 million, or 23.0%. Earnings per diluted common share were $0.90 for the three months ended June 30, 2026, compared to $0.72 for the same period in 2025, an increase of $0.18, or 25.0%. The increase in net income was due to increases in net interest income and noninterest income and decreases in noninterest expense and provision for credit losses, partially offset by an increase in income tax expense. Annualized returns on average assets and average shareholders’ equity for the three months ended June 30, 2026 were 1.23% and 12.33%, respectively, compared to 1.07% and 10.73%, respectively, for the three months ended June 30, 2025. Our efficiency ratio and tax-equivalent efficiency ratio(1) were 54.42% and 52.96%, respectively, for the three months ended June 30, 2026, compared to 55.67% and 53.70%, respectively, for the three months ended June 30, 2025, and 56.44% and 54.98%, respectively, for the three months ended March 31, 2026.

Net interest income for the three months ended June 30, 2026 was $57.3 million, an increase of $3.1 million, or 5.7%, compared to the same period in 2025. The increase in net interest income was primarily due to an increase in average balance of our interest earning assets and a decrease in the average rate paid on our interest bearing liabilities, partially offset by an increase in the average balance and mix of our interest bearing liabilities and a decrease in the average yield of our interest earning assets. Linked quarter, net interest income decreased $0.4 million, or 0.6%, compared to $57.7 million for the three months ended March 31, 2026, due to an increase in the average balance and mix of our of interest bearing liabilities and a decrease in the average yield of our interest earning assets, partially offset by an increase in the average balance of our interest earning assets.

Our net interest margin and tax-equivalent net interest margin(1) decreased to 2.80% and 2.90%, respectively, for the three months ended June 30, 2026, compared to 2.91% and 3.01%, respectively, for the three months ended March 31, 2026, and from 2.82% and 2.95%, respectively, for the same period in 2025.

Noninterest income was $14.0 million for the three months ended June 30, 2026, an increase of $1.9 million, or 15.3%, compared to $12.1 million for the same period in 2025, due to increases in bank owned life insurance (“BOLI”) income, trust fees, other noninterest income, deposit services and brokerage services income. On a linked quarter basis, noninterest income increased $1.4 million, or 11.2%, compared to the three months ended March 31, 2026, primarily due to increases in BOLI income, deposit services, other noninterest income and trust fees during the three months ended June 30, 2026.

Noninterest expense decreased $0.6 million, or 1.5%, to $38.7 million for the three months ended June 30, 2026, compared to $39.3 million for the same period in 2025, primarily due to a decrease in other noninterest expense, partially offset by increases in salaries and employee benefits and professional fees. On a linked quarter basis, noninterest expense decreased by $1.9 million, or 4.7%, compared to the three months ended March 31, 2026. The decrease was due to decreases in salaries and employee benefits expense and loss on redemption of subordinated notes.

Income tax expense increased $1.0 million, or 21.7%, for the three months ended June 30, 2026, compared to the same period in 2025. On a linked quarter basis, income tax expense increased $0.7 million, or 13.9%. Our effective tax rate (“ETR”) decreased slightly to 17.6% for the three months ended June 30, 2026, compared to 17.8% for both of the three-month periods ended June 30, 2025 and March 31, 2026. The marginally lower ETR for the three months ended June 30, 2026 compared to the same period in 2025 and the three months ended March 31, 2026, was partially due to a decrease in state income tax expense as a percentage of pre-tax income as well as a discrete tax benefit recorded in connection with equity award transactions.

Operating Results for the Six Months Ended June 30, 2026

Net income was $50.1 million for the six months ended June 30, 2026, compared to $43.3 million for the same period in 2025, an increase of $6.8 million, or 15.6%. Earnings per diluted common share were $1.68 for the six months ended June 30, 2026, compared to $1.42 for the same period in 2025, an increase of $0.26, or 18.3%. The increase in net income was due to increases in net interest income and noninterest income, partially offset by increases in noninterest expense, income tax expense and provision for credit losses. Returns on average assets and average shareholders’ equity for the six months ended June 30, 2026 were 1.16% and 11.65%, respectively, compared to 1.05% and 10.65%, respectively, for the six months ended June 30, 2025. Our efficiency ratio and tax-equivalent efficiency ratio(1) were 55.43% and 53.97%, respectively, for the six months ended June 30, 2026, compared to 56.34% and 54.36%, respectively, for the six months ended June 30, 2025.

Net interest income was $115.0 million for the six months ended June 30, 2026, compared to $108.1 million for the same period in 2025, an increase of $6.9 million, or 6.4%, due to an increase in the average balance of our interest earning assets and a decrease in the average rate paid on our interest bearing liabilities, partially offset by a decrease in the yield on our interest earning assets and an increase in the average balance and mix of our interest bearing liabilities.

Our net interest margin and tax-equivalent net interest margin(1) increased to 2.86% and 2.95%, respectively, for the six months ended June 30, 2026, compared to 2.78% and 2.91%, respectively, for the same period in 2025.

Noninterest income was $26.6 million for the six months ended June 30, 2026, compared to $22.4 million for the same period in 2025, an increase of $4.2 million, or 18.9%. There were increases to all noninterest income categories, however, the primary increases occurred in other noninterest income, trust fees, BOLI income and a decrease in net loss on sale of securities available for sale (“AFS”) securities.

Noninterest expense was $79.3 million for the six months ended June 30, 2026, compared to $76.3 million for the same period in 2025, an increase of $2.9 million, or 3.8%. The increase was primarily due to increases in salaries and employee benefits expense and loss on redemption of subordinated notes, partially offset by a decrease in other noninterest expense.

Income tax expense increased $1.3 million, or 14.2%, for the six months ended June 30, 2026, compared to the same period in 2025. Our ETR was approximately 17.7% and 17.9% for the six months ended June 30, 2026 and 2025, respectively. The marginally lower ETR for the six months ended June 30, 2026, as compared to the same period in 2025, was partially due to a decrease in state income tax expense as a percentage of pre-tax income as well as a discrete tax benefit recorded in connection with equity award transactions.

Balance Sheet Data

At June 30, 2026, Southside had $8.76 billion in total assets, compared to $8.51 billion at December 31, 2025 and $8.34 billion at June 30, 2025.

Loans at June 30, 2026 were $4.95 billion, an increase of $347.6 million, or 7.6%, compared to $4.60 billion at June 30, 2025. Linked quarter, loans increased $3.4 million, or 0.1%, due to increases of $21.5 million in commercial owner-occupied loans, $20.5 million in municipal loans and $10.6 million in commercial loans. These increases were partially offset by decreases of $41.7 million in construction loans, $4.0 million in commercial real estate loans, $2.3 million in loans to individuals and $1.2 million in 1-4 family residential loans.

Securities at June 30, 2026 were $2.78 billion, an increase of $51.7 million, or 1.9%, compared to $2.73 billion at June 30, 2025. Linked quarter, securities decreased $86.3 million, or 3.0%, from $2.87 billion at March 31, 2026.

Deposits at June 30, 2026 were $6.17 billion, a decrease of $462.6 million, or 7.0%, compared to $6.63 billion at June 30, 2025, primarily due to a decrease of $602.1 million in brokered deposits and a decrease of $49.9 million in public funds deposits, offset by an increase of $189.4 million in retail deposits. Linked quarter, deposits decreased $705.1 million, or 10.3%, compared to $6.87 billion at March 31, 2026, primarily due to a decrease in brokered deposits of $777.9 million, or 99.4%, and a decrease in public fund deposits of $20.7 million, or 1.8%, partially offset by an increase in commercial and retail deposits of $93.5 million, or 1.9%.

At June 30, 2026, we had 178,853 total deposit accounts with an average balance of $34,000. Our estimated uninsured deposits were 42.8% of total deposits as of June 30, 2026. When excluding affiliate deposits (Southside-owned deposits) and public fund deposits (all collateralized), our total estimated deposits without insurance or collateral was 24.9% as of June 30, 2026. Our noninterest bearing deposits represent approximately 22.8% of total deposits. Linked quarter, our cost of interest bearing deposits decreased 16 basis points from 2.65% in the prior quarter to 2.49%. Linked quarter, our cost of total deposits decreased 19 basis points from 2.13% in the prior quarter to 1.94%.

Our cost of interest bearing deposits decreased 26 basis points, from 2.83% for the six months ended June 30, 2025, to 2.57% for the six months ended June 30, 2026. Our cost of total deposits decreased 22 basis points, from 2.26% for the six months ended June 30, 2025, to 2.04% for the six months ended June 30, 2026.

Capital Resources and Liquidity

Our capital ratios and contingent liquidity sources remain solid. During the second quarter ended June 30, 2026, we did not repurchase any common stock, pursuant to our Stock Repurchase Plan (the “Plan”). Under the Plan, repurchases of our outstanding common stock may be carried out in open market purchases, privately negotiated transactions or pursuant to any trading plan that might be adopted in accordance with Rule 10b5-1 of The Securities Exchange Act of 1934, as amended. The Company has no obligation to repurchase any shares under the Plan and may modify, suspend or discontinue the Plan at any time. As of June 30, 2026, approximately 0.8 million authorized shares remained available for repurchase pursuant to the Plan. We have not repurchased any common stock pursuant to the Plan subsequent to June 30, 2026.

As of June 30, 2026, our total available contingent liquidity, net of current outstanding borrowings, was $1.99 billion, consisting of FHLB advances, Federal Reserve Discount Window and correspondent bank lines of credit.

Asset Quality

Nonperforming assets at June 30, 2026 were $9.8 million, or 0.11% of total assets, an increase of $0.1 million, or 0.7%, from $9.7 million, or 0.11% of total assets, at March 31, 2026. Nonperforming assets decreased $23.1 million, or 70.2%, compared to $32.9 million, or 0.39% of total assets, at June 30, 2025, due primarily to a decrease of $27.5 million in restructured loans. The decrease in restructured loans was due to the payoff of a $27.5 million restructured commercial real estate loan in the first quarter that was originally restructured with an extension of maturity in the first quarter of 2025 to allow for an extended lease up period. Classified loans totaled $260.1 million on June 30, 2026, compared to $290.8 million at March 31, 2026 and $176.9 million at December 31, 2025.

The allowance for loan losses totaled $45.6 million, or 0.92% of total loans, at June 30, 2026, compared to $46.0 million, or 0.93% of total loans, at March 31, 2026. The allowance for loan losses was $44.4 million, or 0.97% of total loans, at June 30, 2025. The decrease in allowance as a percentage of total loans compared to June 30, 2025 was primarily due to a decrease in multifamily construction loans as well as a reduction in reserves on individually evaluated loans.

For the three months ended June 30, 2026, we recorded a reversal of provision for credit losses for loans of $24,000, compared to a provision for credit losses of $0.7 million and $1.0 million for the three months ended June 30, 2025 and March 31, 2026, respectively. Net charge-offs were $0.3 million for the three months ended June 30, 2026, compared to net charge-offs of $0.9 million and $0.2 million for the three months ended June 30, 2025 and March 31, 2026, respectively. We recorded a provision for credit losses for loans of $1.0 million and $0.7 million for the six months ended June 30, 2026 and 2025, respectively. Net charge-offs were $0.5 million for the six months ended June 30, 2026, compared to net charge-offs of $1.2 million for the six months ended June 30, 2025.

We recorded a provision for credit losses on off-balance-sheet credit exposures of $0.1 million for the three months ended June 30, 2026, compared to a reversal of $19,000 and provision of $0.4 million for the three months ended June 30, 2025 and March 31, 2026, respectively. The balance of the allowance for off-balance-sheet credit exposures was $3.7 million and $3.8 million at June 30, 2026 and 2025, respectively, and is included in other liabilities. We recorded a provision for credit losses for off-balance-sheet credit exposures of $0.5 million and $0.6 million for the six months ended June 30, 2026 and 2025, respectively.

Dividend

Southside Bancshares, Inc. declared a second quarter cash dividend of $0.36 per share on May 6, 2026, which was paid on June 1, 2026, to all shareholders of record as of May 18, 2026.

_______________

(1)

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

Conference Call

Southside's management team will host a conference call to discuss its second quarter ended June 30, 2026 financial results on Friday, July 24, 2026 at 11:00 a.m. CDT. The conference call can be accessed by webcast, for listen-only mode, on the company website, , under Events.

Those interested in participating in the question and answer session, or others who prefer to call-in, can register at 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, , for at least 30 days, beginning approximately two hours following the conference call.

Non-GAAP Financial Measures

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

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

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

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

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

Management believes that (i) adjusting return on average shareholders’ equity for the impact of intangible assets and their related amortization and (ii) adjusting net interest income, net interest margin and net interest spread to a fully taxable-equivalent basis are standard practices in the banking industry as these measures provide useful information to make peer comparisons. Tax-equivalent adjustments are reflected in the respective earning asset categories as listed in the “Average Balances with Average Yields and Rates” tables.

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

About Southside Bancshares, Inc.

Southside Bancshares, Inc. is a bank holding company with approximately $8.76 billion in assets as of June 30, 2026, that owns 100% of Southside Bank. Southside Bank currently has 55 branches in Texas and operates a network of 71 ATMs/ITMs.

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

Forward-Looking Statements

Certain statements of other than historical fact that are contained in this press release and in other written materials, documents and oral statements issued by or on behalf of the Company may be considered to be “forward-looking statements” within the meaning of and subject to the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. These statements may include words such as “expect,” “estimate,” “project,” “anticipate,” “appear,” “believe,” “could,” “should,” “may,” “might,” “will,” “would,” “seek,” “intend,” “probability,” “risk,” “goal,” “target,” “objective,” “plans,” “potential,” and similar expressions. Forward-looking statements are statements with respect to the Company’s beliefs, plans, expectations, objectives, goals, anticipations, assumptions, estimates, intentions and future performance and are subject to significant known and unknown risks and uncertainties, which could cause the Company's actual results to differ materially from the results discussed in the forward-looking statements. For example, trends in asset quality, capital, liquidity, the Company's ability to sell nonperforming assets, expense reductions, planned operational efficiencies and earnings from growth and certain market risk disclosures, including the impact of interest rates and our expectations regarding rate changes, tax reform, inflation, tariffs, the impacts related to or resulting from other economic factors are based upon information presently available to management and are dependent on choices about key model characteristics and assumptions and are subject to various limitations. By their nature, certain of the market risk disclosures are only estimates and could be materially different from what actually occurs in the future. Accordingly, our results could materially differ from those that have been estimated. The most significant factors that could cause future results to differ materially from those anticipated by our forward-looking statements include: general economic conditions in our markets, including the ongoing impact of higher inflation levels, including higher energy and gas prices, interest rate fluctuations, including the impact of changes in interest rates on our financial projections, models and guidance, as well as the effects of declines in the real estate market, tariffs or trade wars (including reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services), high unemployment and increasing insurance costs, as well as the financial stress to borrowers as a result of the foregoing, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations, and our ability to manage liquidity in a rapidly changing and unpredictable market; the extensive regulations the Company is subject to and legislative and regulatory changes; the Company’s ability to successfully execute its business strategy; including risks related to potential acquisitions; the Company’s ability to innovate, to anticipate the needs of our current and future customers and to manage increased or expanded competition from banks and other financial service providers in its markets; the Company’s ability to effectively manage information technology systems, including third party vendors, cyber or data privacy incidents or other failures, outages, disruptions or security breaches; the Company’s ability to use technology to provide products and services to its customers, including the use of artificial intelligence, adverse developments in the banking industry and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments, including in the context of regulatory examinations and related findings and actions; negative press and social media attention with respect to the banking industry or the Company, in particular; claims, litigation or regulatory investigations and actions that the Company may become subject to; the failure to identify, attract and retain key personnel and other employees and to engage in adequate succession planning; the Company’s recent executive transition; and the additional risks included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, under “Part I - Item 1. Forward Looking Information” and “Part I - Item 1A. Risk Factors” and in the Company’s other filings with the Securities and Exchange Commission. The Company disclaims any obligation to update any factors or to announce publicly the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.

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

As of

2026

2025

Jun 30,

Mar 31,

Dec 31,

Sep 30,

Jun 30,

ASSETS

Cash and due from banks

74,731

72,997

81,080

90,519

109,669

Interest earning deposits

301,916

296,986

302,906

365,263

260,357

Federal funds sold

20,609

17,490

5,800

11,130

20,069

Securities available for sale, at estimated fair value

1,569,836

1,647,379

1,456,219

1,292,431

1,457,124

Securities held to maturity, at net carrying value

1,211,900

1,220,641

1,247,477

1,263,401

1,272,906

Total securities

2,781,736

2,868,020

2,703,696

2,555,832

2,730,030

Federal Home Loan Bank stock, at cost

45,277

16,372

14,062

9,359

24,384

Loans held for sale

341

1,478

1,332

497

428

Loans

4,949,567

4,946,161

4,817,991

4,765,289

4,601,933

Less: Allowance for loan losses

(45,595

)

(45,963

)

(45,100

)

(45,294

)

(44,421

)

Net loans

4,903,972

4,900,198

4,772,891

4,719,995

4,557,512

Premises & equipment, net

156,885

154,318

152,293

147,187

147,263

Goodwill

201,116

Other intangible assets, net

759

880

1,012

1,161

1,333

Bank owned life insurance

146,263

145,991

145,125

139,697

138,826

Other assets

130,109

126,336

133,277

141,404

148,979

Total assets

8,763,714

8,802,182

8,514,590

8,383,160

8,339,966

LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest bearing deposits

1,406,487

1,374,190

1,433,129

1,411,764

1,368,453

Interest bearing deposits

4,762,908

5,500,303

5,432,030

5,549,823

5,263,511

Total deposits

6,169,395

6,874,493

6,865,159

6,961,587

6,631,964

Other borrowings and Federal Home Loan Bank borrowings

1,415,635

671,466

419,793

200,706

611,367

Subordinated notes, net of unamortized debt

issuance costs

147,587

147,541

239,678

239,601

92,115

Trust preferred subordinated debentures, net of unamortized debt issuance costs

60,282

60,280

60,279

60,278

60,277

Other liabilities

88,351

193,540

82,066

86,138

137,043

Total liabilities

7,881,250

7,947,320

7,666,975

7,548,310

7,532,766

Shareholders' equity

882,464

854,862

847,615

834,850

807,200

Total liabilities and shareholders' equity

8,763,714

8,802,182

8,514,590

8,383,160

8,339,966

Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars and shares in thousands, except per share data)

Three Months Ended

2026

2025

Jun 30,

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Income Statement:

Total interest and dividend income

103,920

102,256

102,328

101,896

98,562

Total interest expense

46,586

44,567

45,080

46,178

44,296

Net interest income

57,334

57,689

57,248

55,718

54,266

Provision for (reversal of) credit losses

1,410

581

1,092

622

Net interest income after provision for (reversal of) credit losses

57,251

56,279

56,667

54,626

53,644

Noninterest income

Deposit services

6,389

5,931

6,415

6,069

6,125

Net gain (loss) on sale of securities available for sale

—

(7,321

)

(24,395

)

—

Gain (loss) on sale of loans

118

122

164

Trust fees

2,404

2,202

2,148

2,081

1,879

Bank owned life insurance

1,475

986

1,134

871

833

Brokerage services

1,403

1,363

1,348

1,172

1,219

Other

2,277

1,996

1,732

2,048

1,990

Total noninterest income (loss)

14,004

12,596

5,578

(11,990

)

12,145

Noninterest expense

Salaries and employee benefits

22,973

24,332

22,816

22,803

22,272

Net occupancy

3,707

3,459

3,715

3,761

3,621

Advertising, travel & entertainment

876

1,043

1,147

907

950

ATM expense

325

430

319

444

405

Professional fees

1,662

1,485

1,343

1,451

1,401

Software and data processing

3,151

3,097

2,859

2,770

3,027

Communications

281

287

273

321

342

FDIC insurance

955

937

920

955

Amortization of intangibles

121

132

149

172

198

Loss on redemption of subordinated notes

—

791

—

Other

4,625

4,583

3,919

3,985

6,086

Total noninterest expense

38,676

40,576

37,477

37,534

39,257

Income before income tax expense

32,579

28,299

24,768

5,102

26,532

Income tax expense

5,742

5,040

3,781

189

4,719

Net income

26,837

23,259

20,987

4,913

21,813

Common Share Data:

Weighted-average basic shares outstanding

29,769

29,734

29,863

30,067

30,234

Weighted-average diluted shares outstanding

29,877

29,832

29,943

30,135

30,308

Common shares outstanding end of period

29,803

29,752

29,723

30,066

30,082

Earnings per common share

Basic

0.90

0.78

0.70

0.16

0.72

Diluted

0.90

0.78

0.70

0.16

0.72

Book value per common share

29.61

28.73

28.52

27.77

26.83

Tangible book value per common share

22.84

21.94

21.72

21.04

20.10

Cash dividends paid per common share

0.36

Selected Performance Ratios:

Return on average assets

1.23

1.10

0.99

0.23

1.07

Return on average shareholders’ equity

12.33

10.96

9.85

2.40

10.73

Return on average tangible common equity (1)

16.09

14.39

13.03

3.28

14.38

Average yield on earning assets (FTE) (1)

5.17

5.26

5.24

5.27

5.25

Average rate on interest bearing liabilities

2.91

2.88

2.93

3.01

2.98

Net interest margin (FTE) (1)

2.90

3.01

2.98

2.94

2.95

Net interest spread (FTE) (1)

2.26

2.38

2.31

2.26

2.27

Average earning assets to average interest bearing liabilities

128.08

127.84

129.69

129.13

129.33

Noninterest expense to average total assets

1.77

1.92

1.76

1.78

1.92

Efficiency ratio (FTE) (1)

52.96

54.98

52.28

52.99

53.70

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

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

Three Months Ended

2026

2025

Jun 30,

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Nonperforming Assets:

9,798

9,728

38,243

35,608

32,909

Nonaccrual loans

9,630

9,559

10,486

7,955

4,998

Accruing loans past due more than 90 days

—

Restructured loans

27,509

27,501

27,512

Other real estate owned

116

128

248

128

380

Repossessed assets

—

Asset Quality Ratios:

Ratio of nonaccruing loans to:

Total loans

0.19

0.22

0.17

0.11

Ratio of nonperforming assets to:

Total assets

0.11

0.45

0.42

0.39

Total loans

0.20

0.79

0.75

0.72

Total loans and OREO

0.20

0.79

0.75

0.72

Ratio of allowance for loan losses to:

Nonaccruing loans

473.47

480.83

430.10

569.38

888.78

Nonperforming assets

465.35

472.48

117.93

127.20

134.98

Total loans

0.92

0.93

0.94

0.95

0.97

Net charge-offs (recoveries) to average loans outstanding

0.03

0.01

0.07

0.08

Capital Ratios:

Shareholders’ equity to total assets

10.07

9.71

9.95

9.96

9.68

Common equity tier 1 capital

12.90

12.68

12.87

12.97

13.36

Tier 1 risk-based capital

13.87

13.66

13.88

13.99

14.41

Total risk-based capital

17.14

16.95

18.54

19.01

16.91

Tier 1 leverage capital

9.74

9.72

9.78

10.03

Period end tangible equity to period end tangible assets (1)

7.95

7.59

7.77

7.73

7.43

Average shareholders’ equity to average total assets

9.97

10.02

10.00

9.72

9.94

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

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

Three Months Ended

2026

2025

Loan Portfolio Composition

Jun 30,

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Real Estate Loans:

Construction

600,080

641,818

548,570

519,528

470,380

1-4 Family Residential

716,099

717,298

724,354

730,061

736,108

Commercial Owner-Occupied

362,390

340,898

319,536

336,278

330,163

Commercial Real Estate

2,408,573

2,412,523

2,393,280

2,352,434

2,275,909

Commercial Loans

467,506

456,896

444,720

429,952

380,612

Municipal Loans

357,568

337,089

346,720

353,324

363,746

Loans to Individuals

37,351

39,639

40,811

43,712

45,015

Total Loans

4,949,567

4,946,161

4,817,991

4,765,289

4,601,933

Summary of Changes in Allowances:

Allowance for Securities Held to Maturity

Balance at beginning of period

Provision for (reversal of) securities held to maturity

—

(30

)

—

)

Balance at end of period

Allowance for Loan Losses

Balance at beginning of period

45,963

45,100

45,294

44,421

44,623

Loans charged-off

(858

)

(680

)

(1,115

)

(1,335

)

(1,194

)

Recoveries of loans charged-off

514

529

327

491

342

Net loans (charged-off) recovered

(344

)

(151

)

(788

)

(844

)

(852

)

Provision for (reversal of) loan losses

(24

)

1,014

594

1,717

650

Balance at end of period

45,595

45,963

45,100

45,294

44,421

Allowance for Off-Balance-Sheet Credit Exposures

Balance at beginning of period

3,562

3,166

3,149

3,774

3,793

Provision for (reversal of) off-balance-sheet credit exposures

107

396

(625

)

(19

)

Balance at end of period

3,669

3,562

3,166

3,149

3,774

Total Allowance for Credit Losses

49,289

49,550

48,291

48,498

48,250

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

Six Months Ended

June 30,

2026

2025

Income Statement:

Total interest and dividend income

206,176

198,850

Total interest expense

91,153

90,732

Net interest income

115,023

108,118

Provision for (reversal of) credit losses

1,493

1,380

Net interest income after provision for (reversal of) credit losses

113,530

106,738

Noninterest income

Deposit services

12,320

11,954

Net gain (loss) on sale of securities available for sale

—

(554

)

Gain (loss) on sale of loans

174

154

Trust fees

4,606

3,644

Bank owned life insurance

2,461

1,632

Brokerage services

2,766

2,339

Other

4,273

3,199

Total noninterest income (loss)

26,600

22,368

Noninterest expense

Salaries and employee benefits

47,305

44,654

Net occupancy

7,166

7,025

Advertising, travel & entertainment

1,919

1,874

ATM expense

755

783

Professional fees

3,147

2,921

Software and data processing

6,248

5,866

Communications

568

725

FDIC insurance

1,892

1,902

Amortization of intangibles

253

421

Loss on redemption of subordinated notes

791

—

Other

9,208

10,175

Total noninterest expense

79,252

76,346

Income before income tax expense

60,878

52,760

Income tax expense

10,782

9,440

Net income

50,096

43,320

Common Share Data:

Weighted-average basic shares outstanding

29,752

30,311

Weighted-average diluted shares outstanding

29,857

30,397

Common shares outstanding end of period

29,803

30,082

Earnings per common share

Basic

1.68

1.43

Diluted

1.68

1.42

Book value per common share

29.61

26.83

Tangible book value per common share

22.84

20.10

Cash dividends paid per common share

0.72

Selected Performance Ratios:

Return on average assets

1.16

1.05

Return on average shareholders’ equity

11.65

10.65

Return on average tangible common equity (1)

15.26

14.26

Average yield on earning assets (FTE) (1)

5.21

5.24

Average rate on interest bearing liabilities

2.90

3.01

Net interest margin (FTE) (1)

2.95

2.91

Net interest spread (FTE) (1)

2.31

2.23

Average earning assets to average interest bearing liabilities

127.96

128.71

Noninterest expense to average total assets

1.84

1.85

Efficiency ratio (FTE) (1)

53.97

54.36

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

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

Six Months Ended

June 30,

2026

2025

Nonperforming Assets:

9,798

32,909

Nonaccrual loans

9,630

4,998

Accruing loans past due more than 90 days

—

Restructured loans

27,512

Other real estate owned

116

380

Repossessed assets

Asset Quality Ratios:

Ratio of nonaccruing loans to:

Total loans

0.19

0.11

Ratio of nonperforming assets to:

Total assets

0.11

0.39

Total loans

0.20

0.72

Total loans and OREO

0.20

0.72

Ratio of allowance for loan losses to:

Nonaccruing loans

473.47

888.78

Nonperforming assets

465.35

134.98

Total loans

0.92

0.97

Net charge-offs (recoveries) to average loans outstanding

0.02

0.05

Capital Ratios:

Shareholders’ equity to total assets

10.07

9.68

Common equity tier 1 capital

12.90

13.36

Tier 1 risk-based capital

13.87

14.41

Total risk-based capital

17.14

16.91

Tier 1 leverage capital

9.74

10.03

Period end tangible equity to period end tangible assets (1)

7.95

7.43

Average shareholders’ equity to average total assets

9.99

9.84

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

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

Six Months Ended

June 30,

Loan Portfolio Composition

2026

2025

Real Estate Loans:

Construction

600,080

470,380

1-4 Family Residential

716,099

736,108

Commercial Owner-Occupied

362,390

330,163

Commercial Real Estate

2,408,573

2,275,909

Commercial Loans

467,506

380,612

Municipal Loans

357,568

363,746

Loans to Individuals

37,351

45,015

Total Loans

4,949,567

4,601,933

Summary of Changes in Allowances:

Allowance for Securities Held to Maturity

Balance at beginning of period

—

Provision for (reversal of) securities held to maturity

—

Balance at end of period

Summary of Changes in Allowances:

Allowance for Loan Losses

Balance at beginning of period

45,100

44,884

Loans charged-off

(1,538

)

(1,807

)

Recoveries of loans charged-off

1,043

652

Net loans (charged-off) recovered

(495

)

(1,155

)

Provision for (reversal of) loan losses

990

692

Balance at end of period

45,595

44,421

Allowance for Off-Balance-Sheet Credit Exposures

Balance at beginning of period

3,166

3,141

Provision for (reversal of) off-balance-sheet credit exposures

503

633

Balance at end of period

3,669

3,774

Total Allowance for Credit Losses

49,289

48,250

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

June 30, 2026

March 31, 2026

Average Balance

Interest

Average Yield/Rate (3)

Average Balance

Interest

Average Yield/Rate (3)

ASSETS

Loans (1)

4,957,830

72,431

5.86

4,879,867

71,515

5.94

Loans held for sale

537

5.23

792

5.63

Securities:

Taxable investment securities (2)

576,120

4,686

3.26

578,480

4,649

3.26

Tax-exempt investment securities (2)

863,606

7,550

3.51

865,279

7,484

3.51

Mortgage-backed and related securities (2)

1,480,922

18,462

5.00

1,418,491

17,908

5.12

Total securities

2,920,648

30,698

4.22

2,862,250

30,041

4.26

Federal Home Loan Bank stock, at cost, and equity investments

47,353

215

1.82

21,693

249

4.66

Interest earning deposits

265,411

2,355

3.56

258,860

2,235

3.50

Federal funds sold

18,830

171

3.64

7,984

3.61

Total earning assets

8,210,609

105,877

5.17

8,031,446

104,122

5.26

Cash and due from banks

78,543

82,443

Accrued interest and other assets

512,723

521,219

Less: Allowance for loan losses

(46,315

)

(45,491

)

Total assets

8,755,560

8,589,617

LIABILITIES AND SHAREHOLDERS’ EQUITY

Savings accounts

722,198

2,722

1.51

683,270

2,370

1.41

Certificates of deposit

1,313,089

12,093

3.69

1,328,312

12,402

3.79

Interest bearing demand accounts

2,841,740

15,465

2.18

3,588,863

21,791

2.46

Total interest bearing deposits

4,877,027

30,280

2.49

5,600,445

36,563

2.65

Federal Home Loan Bank borrowings

828,187

8,248

3.99

144,008

975

2.75

Subordinated notes, net of unamortized debt issuance costs

147,564

2,686

7.30

195,664

3,577

7.41

Trust preferred subordinated debentures, net of unamortized debt issuance costs

60,281

922

6.13

60,280

915

6.16

Repurchase agreements

76,829

629

3.28

92,622

784

3.43

Other borrowings

420,660

3,821

3.64

189,444

1,753

3.75

Total interest bearing liabilities

6,410,548

46,586

2.91

6,282,463

44,567

2.88

Noninterest bearing deposits

1,386,072

1,363,826

Accrued expenses and other liabilities

85,765

82,948

Total liabilities

7,882,385

7,729,237

Shareholders’ equity

873,175

860,380

Total liabilities and shareholders’ equity

8,755,560

8,589,617

Net interest income (FTE)

59,291

59,555

Net interest margin (FTE)

2.90

3.01

Net interest spread (FTE)

2.26

2.38

(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, 2026 and March 31, 2026, loans totaling $9.6 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)

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

7.05

776

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

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

Average Balance

Interest

Average Yield/Rate (3)

ASSETS

Loans (1)

4,519,668

67,798

6.02

Loans held for sale

1,108

5.79

Securities:

Taxable investment securities (2)

735,669

6,205

3.38

Tax-exempt investment securities (2)

1,130,903

10,351

3.67

Mortgage-backed and related securities (2)

1,003,887

13,040

5.21

Total securities

2,870,459

29,596

4.14

Federal Home Loan Bank stock, at cost, and equity investments

31,169

524

6.74

Interest earning deposits

259,617

2,753

4.25

Federal funds sold

27,778

308

4.45

Total earning assets

7,709,799

100,995

5.25

Cash and due from banks

84,419

Accrued interest and other assets

452,573

Less: Allowance for loan losses

(44,747

)

Total assets

8,202,044

LIABILITIES AND SHAREHOLDERS’ EQUITY

Savings accounts

596,125

1,451

0.98

Certificates of deposit

1,407,017

14,905

4.25

Interest bearing demand accounts

3,311,330

21,071

2.55

Total interest bearing deposits

5,314,472

37,427

2.82

Federal Home Loan Bank borrowings

394,119

3,721

3.79

Subordinated notes, net of unamortized debt issuance costs

92,097

935

4.07

Trust preferred subordinated debentures, net of unamortized debt issuance costs

60,276

1,015

6.75

Repurchase agreements

72,295

634

3.52

Other borrowings

28,022

564

8.07

Total interest bearing liabilities

5,961,281

44,296

2.98

Noninterest bearing deposits

1,339,463

Accrued expenses and other liabilities

85,827

Total liabilities

7,386,571

Shareholders’ equity

815,473

Total liabilities and shareholders’ equity

8,202,044

Net interest income (FTE)

56,699

Net interest margin (FTE)

2.95

Net interest spread (FTE)

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 June 30, 2025, loans totaling $5.0 million were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.

Southside Bancshares, Inc.

Average Balances and Average Yields and Rates (Annualized) (Unaudited)

(Dollars in thousands)

Six Months Ended

June 30, 2026

June 30, 2025

Average Balance

Interest

Average Yield/Rate

Average Balance

Interest

Average Yield/Rate

ASSETS

Loans (1)

4,919,064

143,946

5.90

4,572,492

135,958

6.00

Loans held for sale

664

5.47

931

5.85

Securities:

Taxable investment securities (2)

577,293

9,335

3.26

742,375

12,568

3.41

Tax-exempt investment securities (2)

864,438

15,034

3.51

1,132,736

20,604

3.67

Mortgage-backed and related securities (2)

1,449,879

36,370

5.06

1,022,360

26,563

5.24

Total securities

2,891,610

60,739

4.24

2,897,471

59,735

4.16

Federal Home Loan Bank stock, at cost, and equity investments

34,594

464

2.70

37,194

1,007

5.46

Interest earning deposits

262,154

4,590

3.53

289,586

6,123

4.26

Federal funds sold

13,437

242

3.63

35,751

786

4.43

Total earning assets

8,121,523

209,999

5.21

7,833,425

203,636

5.24

Cash and due from banks

80,482

87,046

Accrued interest and other assets

516,908

455,245

Less: Allowance for loan losses

(45,905

)

(44,925

)

Total assets

8,673,008

8,330,791

LIABILITIES AND SHAREHOLDERS’ EQUITY

Savings accounts

702,841

5,092

1.46

595,045

2,880

0.98

Certificates of deposit

1,320,658

24,495

3.74

1,372,110

29,311

4.31

Interest bearing demand accounts

3,213,238

37,256

2.34

3,358,573

42,483

2.55

Total interest bearing deposits

5,236,737

66,843

2.57

5,325,728

74,674

2.83

Federal Home Loan Bank borrowings

487,988

9,223

3.81

503,898

9,558

3.83

Subordinated notes, net of unamortized debt issuance costs

171,481

6,263

7.37

92,079

1,867

4.09

Trust preferred subordinated debentures, net of unamortized debt issuance costs

60,280

1,837

6.15

60,275

2,029

6.79

Repurchase agreements

84,682

1,413

3.36

73,785

1,300

3.55

Other borrowings

305,691

5,574

3.68

30,528

1,304

8.61

Total interest bearing liabilities

6,346,859

91,153

2.90

6,086,293

90,732

3.01

Noninterest bearing deposits

1,375,011

1,337,210

Accrued expenses and other liabilities

84,325

87,131

Total liabilities

7,806,195

7,510,634

Shareholders’ equity

866,813

820,157

Total liabilities and shareholders’ equity

8,673,008

8,330,791

Net interest income (FTE)

118,846

112,904

Net interest margin (FTE)

2.95

2.91

Net interest spread (FTE)

2.31

2.23

(1)

Interest on loans includes net fees on loans that are not material in amount.

(2)

For the purpose of calculating the average yield, the average balance of securities do not include unrealized gains and losses on AFS securities.

Note: As of June 30, 2026 and 2025, loans totaling $9.6 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.

Non-GAAP Reconciliation (Unaudited)

(Dollars and shares in thousands, except per share data)

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

Three Months Ended

Six Months Ended

2026

2025

2026

2025

Jun 30,

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Reconciliation of return on average common equity to return on average tangible common equity:

Net income

26,837

23,259

20,987

4,913

21,813

50,096

43,320

After-tax amortization expense

104

117

136

157

200

333

Adjusted net income available to common shareholders

26,933

23,363

21,104

5,049

21,970

50,296

43,653

Average shareholders' equity

873,175

860,380

845,013

812,393

815,473

866,813

820,157

Less: Average intangibles for the period

(201,949

)

(202,078

)

(202,217

)

(202,380

)

(202,569

)

(202,013

)

(202,676

)

Average tangible shareholders' equity

671,226

658,302

642,796

610,013

612,904

664,800

617,481

Return on average shareholders’ equity

12.33

10.96

9.85

2.40

10.73

11.65

10.65

Return on average tangible common equity

16.09

14.39

13.03

3.28

14.38

15.26

14.26

Reconciliation of book value per share to tangible book value per share:

Common equity at end of period

882,464

854,862

847,615

834,850

807,200

882,464

807,200

Less: Intangible assets at end of period

(201,875

)

(201,996

)

(202,128

)

(202,277

)

(202,449

)

(201,875

)

(202,449

)

Tangible common shareholders' equity at end of period

680,589

652,866

645,487

632,573

604,751

680,589

604,751

Total assets at end of period

8,763,714

8,802,182

8,514,590

8,383,160

8,339,966

8,763,714

8,339,966

Less: Intangible assets at end of period

(201,875

)

(201,996

)

(202,128

)

(202,277

)

(202,449

)

(201,875

)

(202,449

)

Tangible assets at end of period

8,561,839

8,600,186

8,312,462

8,180,883

8,137,517

8,561,839

8,137,517

Period end tangible equity to period end tangible assets

7.95

7.59

7.77

7.73

7.43

7.95

7.43

Common shares outstanding end of period

29,803

29,752

29,723

30,066

30,082

29,803

30,082

Tangible book value per common share

22.84

21.94

21.72

21.04

20.10

22.84

20.10

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)

57,334

57,689

57,248

55,718

54,266

115,023

108,118

Tax-equivalent adjustments:

Loans

550

538

545

553

565

1,088

1,146

Tax-exempt investment securities

1,407

1,328

1,551

1,852

1,868

2,735

3,640

Net interest income (FTE) (1)

59,291

59,555

59,344

58,123

56,699

118,846

112,904

Noninterest income

14,004

12,596

5,578

(11,990

)

12,145

26,600

22,368

Nonrecurring income (2)

(543

)

(47

)

7,066

24,395

—

(590

)

554

Total revenue

72,752

72,104

71,988

70,528

68,844

144,856

135,826

Noninterest expense

38,676

40,576

37,477

37,534

39,257

79,252

76,346

Pre-tax amortization expense

(121

)

(132

)

(149

)

(172

)

(198

)

(253

)

(421

)

Nonrecurring expense (3)

(26

)

(799

)

306

(2,090

)

(825

)

(2,091

)

Adjusted noninterest expense

38,529

39,645

37,634

37,376

36,969

78,174

73,834

Efficiency ratio

54.42

56.44

53.85

54.87

55.67

55.43

56.34

Efficiency ratio (FTE) (1)

52.96

54.98

52.28

52.99

53.70

53.97

54.36

Average earning assets

8,210,609

8,031,446

7,904,101

7,854,552

7,709,799

8,121,523

7,833,425

Net interest margin

2.80

2.91

2.87

2.81

2.82

2.86

2.78

Net interest margin (FTE) (1)

2.90

3.01

2.98

2.94

2.95

2.91

Net interest spread

2.17

2.28

2.21

2.14

2.15

2.22

2.11

Net interest spread (FTE) (1)

2.26

2.38

2.31

2.26

2.27

2.31

2.23

(1)

These amounts are presented on a fully taxable-equivalent basis and are non-GAAP measures.

(2)

These adjustments may include net gain or loss on sale of securities available for sale, BOLI income related to death benefits realized and other investment income or loss in the periods where applicable.

(3)

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

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