Earnings release
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EXHIBIT 99.1 SOUTHSIDE BANCSHARES, INC. ANNOUNCES FINANCIAL RESULTS FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2026 • Third quarter net income of $28.0 million; • Third quarter earnings per diluted common share of $0.93; • Net interest margin and tax-equivalent net interest margin linked quarter both increased 12 basis points to 2.92% and 3.02%, respectively; • Annualized return on third quarter average assets of 1.27%; • Annualized return on third quarter average shareholders’ equity of 12.55% and average tangible common equity of 16.31%; and • Nonperforming assets remain low at 0.18% of total assets. Tyler, Texas (October 29, 2026) Southside Bancshares, Inc. (“Southside” or the “Company”) (NYSE: SBSI) today reported its financial results for the quarter ended September 30, 2026. “We reported excellent financial results for the third quarter ended September 30, 2026, highlighted by earnings per diluted common share of $0.93, a return on average assets of 1.27% and a return on average tangible common equity of 16.31%,” stated Keith Donahoe, President and Chief Executive Officer of Southside. “Linked quarter net interest income increased $3.0 million and the net interest margin increased 12 basis points to 3.02%. Noninterest income declined for the quarter; however, we continue to experience increases in trust fees, largely driven by a 10% year-to-date growth in assets under management, as well as increases in brokerage fees. Asset quality metrics remain solid with declining classified loans and a nonperforming assets to total assets ratio of 0.18%.” Operating Results for the Three Months Ended September 30, 2026 Net income was $28.0 million for the three months ended September 30, 2026, compared to $4.9 million for the same period in 2025, an increase of $23.1 million, or 469.4%. Earnings per diluted common share were $0.93 for the three months ended September 30, 2026, compared to $0.16 for the same period in 2025, an increase of $0.77, or 481.3%. The increase in net income was driven by the $24.4 million net loss on sale of available for sale (“AFS”) securities during the third quarter of 2025 and, to a lesser extent, increases in net interest income and noninterest income and a decrease in provision for credit losses, partially offset by increases in income tax and noninterest expense. Annualized returns on average assets and average shareholders’ equity for the three months ended September 30, 2026 were 1.27% and 12.55%, respectively, compared to 0.23% and 2.40%, respectively, for the three months ended September 30, 2025. Our efficiency ratio and tax-equivalent efficiency ratio were 53.02% and 51.55%, respectively, for the three months ended September 30, 2026, compared to 54.87% and 52.99%, respectively, for the three months ended September 30, 2025, and 54.42% and 52.96%, respectively, for the three months ended June 30, 2026. Net interest income for the three months ended September 30, 2026 was $60.3 million, an increase of $4.6 million, or 8.2%, compared to the same period in 2025. The increase in net interest income was primarily due to an increase in average balance of our interest earning assets and a decrease in the average rate paid on our interest bearing liabilities, partially offset by an increase in the average balance of our interest bearing liabilities and a change in the mix of our interest earning assets. Linked quarter, net interest income increased $3.0 million, or 5.2%, compared to $57.3 million for the three months ended June 30, 2026, due primarily to an increase in the average yield of our interest earning assets and, to a lesser extent, an additional day of net interest income in the third quarter ending September 30, 2026 compared to the second quarter ending June 30, 2026. Our net interest margin and tax-equivalent net interest margin increased to 2.92% and 3.02%, respectively, for the three months ended September 30, 2026, compared to 2.80% and 2.90%, respectively, for the three months ended June 30, 2026, and from 2.81% and 2.94%, respectively, for the same period in 2025. Noninterest income, excluding the net losses on sales of AFS securities, was $13.7 million and $12.4 million for the three months ended September 30, 2026 and 2025, respectively, an increase of $1.3 million, or 10.7%. The increase was due to increases in trust fees, deposit services and brokerage services income. On a linked quarter basis, noninterest income decreased $0.3 million, or 1.9%, compared to the three months ended June 30, 2026, primarily due to decreases in bank owned life insurance (“BOLI”) income and other noninterest income, partially offset by increases in trust fees, deposit services and brokerage services income during the three months ended September 30, 2026. (1) (1) (1) (1) (1) Page-1
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Noninterest expense increased $1.5 million, or 4.0%, to $39.0 million for the three months ended September 30, 2026, compared to $37.5 million for the same period in 2025, primarily due to increases in salaries and employee benefits and software and data processing expense. On a linked quarter basis, noninterest expense increased by $0.3 million, or 0.9%, compared to the three months ended June 30, 2026. The increase was primarily due to an increase in salaries and employee benefits expense and advertising, travel and entertainment, partially offset by a decrease in professional fees and other noninterest expense. Income tax expense increased $6.1 million, or 3,224.9%, for the three months ended September 30, 2026, compared to the same period in 2025. On a linked quarter basis, income tax expense increased $0.5 million, or 9.4%. Our effective tax rate (“ETR”) increased to 18.3% for the three months ended September 30, 2026, compared to 3.7% for the three months ended September 30, 2025 and 17.6% for the three months ended June 30, 2026. The higher ETR for the three months ended September 30, 2026 compared to the same period in 2025 was due to the impact of the net loss on the sale of AFS securities of $24.4 million recorded during the third quarter of 2025 on our tax- exempt income as a percentage of pre-tax income. On a linked quarter basis, the higher ETR was primarily a result of a decrease in net tax-exempt income as a percentage of pre-tax income, an increase in state income tax expense as a percentage of pre-tax income and a discrete tax benefit recorded in the second quarter in connection with equity award transactions. Operating Results for the Nine Months Ended September 30, 2026 Net income was $78.1 million for the nine months ended September 30, 2026, compared to $48.2 million for the same period in 2025, an increase of $29.8 million, or 61.9%. Earnings per diluted common share were $2.61 for the nine months ended September 30, 2026, compared to $1.59 for the same period in 2025, an increase of $1.02, or 64.2%. The increase in net income was driven by the net loss on the sale of AFS securities during the third quarter of 2025 and, to a lesser extent, increases in net interest income and noninterest income and a decrease in provision for credit losses, partially offset by increases in income tax and noninterest expense. Returns on average assets and average shareholders’ equity for the nine months ended September 30, 2026 were 1.20% and 11.96%, respectively, compared to 0.77% and 7.89%, respectively, for the nine months ended September 30, 2025. Our efficiency ratio and tax-equivalent efficiency ratio were 54.60% and 53.13%, respectively,for the nine months ended September 30, 2026, compared to 55.84% and 53.89%, respectively, for the nine months ended September 30, 2025. Net interest income was $175.3 million for the nine months ended September 30, 2026, compared to $163.8 million for the same period in 2025, an increase of $11.5 million, or 7.0%, due to an increase in the average balance of our interest earning assets and a decrease in the average rate paid on our interest bearing liabilities, partially offset by an increase in the average balance of our interest bearing liabilities and a decrease in the yield on our interest earning assets. Our net interest margin and tax-equivalent net interest margin increased to 2.88% and 2.97%, respectively, for the nine months ended September 30, 2026, compared to 2.79% and 2.92%, respectively, for the same period in 2025. Noninterest income, excluding the net losses on sale of AFS securities, was $40.3 million for the nine months ended September 30, 2026, compared to $35.3 million for the same period in 2025, an increase of $5.0 million, or 14.2%. The increase was due to increases in each noninterest income category with the exception of gain on sale of loans. Noninterest expense was $118.3 million for the nine months ended September 30, 2026, compared to $113.9 million for the same period in 2025, an increase of $4.4 million, or 3.9%. The increase was primarily due to increases in salaries and employee benefits expense, software and data processing expense and loss on redemption of subordinated notes, partially offset by a decrease in other noninterest expense. Income tax expense increased $7.4 million, or 77.2%, for the nine months ended September 30, 2026, compared to the same period in 2025. Our ETR was approximately 17.9% and 16.6% for the nine months ended September 30, 2026 and 2025, respectively. The higher ETR for the nine months ended September 30, 2026, as compared to the same period in 2025, was primarily due to a decrease in net tax- exempt income as a percentage of pre-tax income. Balance Sheet Data At September 30, 2026, Southside had $8.87 billion in total assets, compared to $8.51 billion at December 31, 2025 and $8.38 billion at September 30, 2025. Loans at September 30, 2026 were $4.96 billion, an increase of $193.4 million, or 4.1%, compared to $4.77 billion at September 30, 2025. Linked quarter, loans increased $9.1 million, or 0.2%, due to increases of $42.6 million in commercial loans, $10.1 million in municipal loans, $8.8 million in 1-4 family residential loans and $7.8 million in commercial real estate loans. These increases were partially offset by decreases of $57.1 million in construction loans, $1.8 million in commercial owner-occupied loans and $1.3 million in loans to individuals. Securities at September 30, 2026 were $2.83 billion, an increase of $275.2 million, or 10.8%, compared to $2.56 billion at September 30, 2025. Linked quarter, securities increased $49.3 million, or 1.8%, from $2.78 billion at June 30, 2026. (1) (1) Page-2
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Deposits at September 30, 2026 were $6.01 billion, a decrease of $947.8 million, or 13.6%, compared to $6.96 billion at September 30, 2025, primarily due to a decrease of $841.3 million in brokered deposits and a decrease of $154.1 million in public funds deposits, partially offset by an increase of $47.6 million in retail deposits. Linked quarter, deposits decreased $155.6 million, or 2.5%, compared to $6.17 billion at June 30, 2026, due to a decrease in public fund deposits of $200.2 million and a decrease in commercial and retail deposits of $4.8 million, partially offset by an increase in brokered deposits of $49.4 million. At September 30, 2026, we had 178,615 total deposit accounts with an average balance of $33,000. Our estimated uninsured deposits were 41.8% of total deposits as of September 30, 2026. When excluding affiliate deposits (Southside-owned deposits) and public fund deposits (all collateralized), our total estimated deposits without insurance or collateral was 26.8% as of September 30, 2026. Our noninterest bearing deposits represent approximately 23.3% of total deposits. Linked quarter, our cost of interest bearing deposits decreased four basis points from 2.49% in the prior quarter to 2.45%. Linked quarter, our cost of total deposits decreased five basis points from 1.94% in the prior quarter to 1.89%. Our cost of interest bearing deposits decreased 30 basis points, from 2.83% for the nine months ended September 30, 2025, to 2.53% for the nine months ended September 30, 2026. Our cost of total deposits decreased 27 basis points, from 2.26% for the nine months ended September 30, 2025, to 1.99% for the nine months ended September 30, 2026. Capital Resources and Liquidity Our capital ratios and contingent liquidity sources remain solid. During the third quarter ended September 30, 2026, we did not repurchase any shares of our outstanding common stock pursuant to our Stock Repurchase Plan (the “Plan”). Under the Plan, repurchases of our outstanding common stock may be carried out in open market purchases, privately negotiated transactions or pursuant to any trading plan that might be adopted in accordance with Rule 10b5-1 of The Securities Exchange Act of 1934, as amended. The Company has no obligation to repurchase any shares under the Plan and may modify, suspend or discontinue the Plan at any time. As of September 30, 2026, approximately 0.8 million authorized shares remained available for repurchase pursuant to the Plan. Subsequent to September 30, 2026 and through October 26, 2026, we purchased 36,474 shares at an average price of $30.00 pursuant to the Plan. As of September 30, 2026, our total available contingent liquidity, net of current outstanding borrowings, was $1.86 billion, consisting of FHLB advances, Federal Reserve Discount Window and correspondent bank lines of credit. Asset Quality Nonperforming assets at September 30, 2026 were $15.8 million, or 0.18% of total assets, an increase of $6.0 million, or 61.6%, from $9.8 million, or 0.11% of total assets, at June 30, 2026, due largely to a $5.2 million commercial real estate loan past due over 90 days in the third quarter of 2026 that subsequently paid off in full on October 1, 2026. Nonperforming assets decreased $19.8 million, or 55.5%, compared to $35.6 million, or 0.42% of total assets, at September 30, 2025, due primarily to a decrease of $27.5 million in restructured loans. The decrease in restructured loans was due to the payoff of a $27.5 million restructured commercial real estate loan in the first quarter of 2026 that was originally restructured with an extension of maturity in the first quarter of 2025 to allow for an extended lease up period. Classified loans totaled $245.2 million on September 30, 2026, compared to $260.1 million at June 30, 2026 and $176.9 million at December 31, 2025. The allowance for loan losses totaled $46.9 million, or 0.94% of total loans, at September 30, 2026, compared to $45.6 million, or 0.92% of total loans, at June 30, 2026. The allowance for loan losses was $45.3 million, or 0.95% of total loans, at September 30, 2025. For the three months ended September 30, 2026, we recorded a provision for credit losses for loans of $0.9 million, compared to $1.7 million for the three months ended September 30, 2025, and a reversal of provision for credit losses for loans of $24,000 for the three months ended June 30, 2026. Net recoveries were $0.3 million for the three months ended September 30, 2026, compared to net charge- offs of $0.8 million and $0.3 million for the three months ended September 30, 2025 and June 30, 2026, respectively. We recorded a provision for credit losses for loans of $1.9 million and $2.4 million for the nine months ended September 30, 2026 and 2025, respectively. Net charge-offs were $0.2 million for the nine months ended September 30, 2026, compared to $2.0 million for the nine months ended September 30, 2025. We recorded a reversal of provision for credit losses on off-balance-sheet credit exposures of $0.2 million and $0.6 million for the three months ended September 30, 2026 and 2025, respectively, compared to a provision of $0.1 million for the three months ended June 30, 2026. The balance of the allowance for off-balance-sheet credit exposures was $3.5 million and $3.1 million at September 30, 2026 and 2025, respectively, and is included in other liabilities. We recorded a provision for credit losses for off-balance-sheet credit exposures of $0.3 million and $8,000 for the nine months ended September 30, 2026 and 2025, respectively. Page-3
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Dividend Southside Bancshares, Inc. declared a third quarter cash dividend of $0.37 per share on August 6, 2026, which was paid on September 3, 2026, to all shareholders of record as of August 20, 2026. _______________ (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. Page-4
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Conference Call Southside's management team will host a conference call to discuss its third quarter ended September 30, 2026 financial results on Thursday, October 29, 2026 at 11:00 a.m. CDT. The conference call can be accessed by webcast, for listen-only mode, on the company website, https://investors.southside.com, under Events. Those interested in participating in the question and answer session, or others who prefer to call-in, can register at https://events.q4inc.com/analyst/284984310?pwd=CfM4gE30 to receive the dial-in number and unique code to access the conference call seamlessly. While not required, it is recommended that those wishing to participate, register 10 minutes prior to the conference call to ensure a more efficient registration process. For those unable to attend the live event, a webcast recording will be available on the company website, https://investors.southside.com, for at least 30 days, beginning approximately two hours following the conference call. Non-GAAP Financial Measures Our accounting and reporting policies conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP measures are used by management to supplement the evaluation of our performance. These include return on average tangible common equity and the following fully taxable-equivalent measures (“FTE”): (i) Net interest income (FTE), (ii) net interest margin (FTE), (iii) net interest spread (FTE), and (iv) efficiency ratio (FTE), which include the effects of taxable-equivalent adjustments using a federal income tax rate of 21% to increase tax-exempt interest income to a tax-equivalent basis. Interest income earned on certain assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. Return on average tangible common equity. Return on average tangible common equity is a non-GAAP measure that calculates the return available to common shareholders without the impact of intangible assets and their related amortization, thereby allowing management to evaluate the performance of the business consistently. Net interest income (FTE), net interest margin (FTE) and net interest spread (FTE). Net interest income (FTE) is a non-GAAP measure that adjusts for the tax-favored status of net interest income from certain loans and investments and is not permitted under GAAP in the consolidated statements of income. We believe that this measure is the preferred industry measurement of net interest income and that it enhances comparability of net interest income arising from taxable and tax-exempt sources. The most directly comparable financial measure calculated in accordance with GAAP is our net interest income. Net interest margin (FTE) is the ratio of net interest income (FTE) to average earning assets. The most directly comparable financial measure calculated in accordance with GAAP is our net interest margin. Net interest spread (FTE) is the difference in the average yield on average earning assets on a tax-equivalent basis and the average rate paid on average interest bearing liabilities. The most directly comparable financial measure calculated in accordance with GAAP is our net interest spread. Efficiency ratio (FTE). The efficiency ratio (FTE) is a non-GAAP measure that provides a measure of productivity in the banking industry. This ratio is calculated to measure the cost of generating one dollar of revenue. The ratio is designed to reflect the percentage of one dollar which must be expended to generate that dollar of revenue. We calculate this ratio by dividing noninterest expense, excluding amortization expense on intangibles and certain nonrecurring expense by the sum of net interest income (FTE) and noninterest income, excluding net gain (loss) on sale of securities available for sale and certain nonrecurring impairments. The most directly comparable financial measure calculated in accordance with GAAP is our efficiency ratio. These non-GAAP financial measures should not be considered alternatives to GAAP-basis financial statements and other bank holding companies may define or calculate these non-GAAP measures or similar measures differently. Whenever we present a non-GAAP financial measure in an SEC filing, we are also required to present the most directly comparable financial measure calculated and presented in accordance with GAAP and reconcile the differences between the non-GAAP financial measure and such comparable GAAP measure. Management believes that (i) adjusting return on average shareholders’ equity for the impact of intangible assets and their related amortization and (ii) adjusting net interest income, net interest margin and net interest spread to a fully taxable-equivalent basis are standard practices in the banking industry as these measures provide useful information to make peer comparisons. Tax-equivalent adjustments are reflected in the respective earning asset categories as listed in the “Average Balances with Average Yields and Rates” tables. A reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables. Page-5
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About Southside Bancshares, Inc. Southside Bancshares, Inc. is a bank holding company with approximately $8.87 billion in assets as of September 30, 2026, that owns 100% of Southside Bank. Southside Bank currently has 55 branches in Texas and operates a network of 71 ATMs/ITMs. To learn more about Southside Bancshares, Inc., please visit our investor relations website at https://investors.southside.com. Our investor relations site provides a detailed overview of our activities, financial information and historical stock price data. To receive email notification of company news, events and stock activity, please register on the website under Resources and Investor Email Alerts. Questions or comments may be directed to Lindsey Bailes at (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, 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. Page-6
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Southside Bancshares, Inc. Consolidated Financial Summary (Unaudited) (Dollars in thousands) As of 2026 2025 Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, ASSETS Cash and due from banks $ 69,245 $ 74,731 $ 72,997 $ 81,080 $ 90,519 Interest earning deposits 316,002 301,916 296,986 302,906 365,263 Federal funds sold 51,138 20,609 17,490 5,800 11,130 Securities available for sale, at estimated fair value 1,623,499 1,569,836 1,647,379 1,456,219 1,292,431 Securities held to maturity, at net carrying value 1,207,495 1,211,900 1,220,641 1,247,477 1,263,401 Total securities 2,830,994 2,781,736 2,868,020 2,703,696 2,555,832 Federal Home Loan Bank stock, at cost 43,659 45,277 16,372 14,062 9,359 Loans held for sale 969 341 1,478 1,332 497 Loans 4,958,689 4,949,567 4,946,161 4,817,991 4,765,289 Less: Allowance for loan losses (46,858) (45,595) (45,963) (45,100) (45,294) Net loans 4,911,831 4,903,972 4,900,198 4,772,891 4,719,995 Premises & equipment, net 156,377 156,885 154,318 152,293 147,187 Goodwill 201,116 201,116 201,116 201,116 201,116 Other intangible assets, net 650 759 880 1,012 1,161 Bank owned life insurance 147,206 146,263 145,991 145,125 139,697 Other assets 135,871 130,109 126,336 133,277 141,404 Total assets $ 8,865,058 $ 8,763,714 $ 8,802,182 $ 8,514,590 $ 8,383,160 LIABILITIES AND SHAREHOLDERS'EQUITY Noninterest bearing deposits $ 1,403,933 $ 1,406,487 $ 1,374,190 $ 1,433,129 $ 1,411,764 Interest bearing deposits 4,609,854 4,762,908 5,500,303 5,432,030 5,549,823 Total deposits 6,013,787 6,169,395 6,874,493 6,865,159 6,961,587 Other borrowings and Federal Home Loan Bankborrowings 1,695,355 1,415,635 671,466 419,793 200,706 Subordinated notes, net of unamortized debtissuance costs 147,635 147,587 147,541 239,678 239,601 Trust preferred subordinated debentures, net ofunamortized debt issuance costs 60,283 60,282 60,280 60,279 60,278 Other liabilities 105,114 88,351 193,540 82,066 86,138 Total liabilities 8,022,174 7,881,250 7,947,320 7,666,975 7,548,310 Shareholders' equity 842,884 882,464 854,862 847,615 834,850 Total liabilities and shareholders' equity $ 8,865,058 $ 8,763,714 $ 8,802,182 $ 8,514,590 $ 8,383,160 Page-7
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Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars and shares in thousands, except per share data) Three Months Ended 2026 2025 Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Income Statement: Total interest and dividend income $ 106,870 $ 103,920 $ 102,256 $ 102,328 $ 101,896 Total interest expense 46,574 46,586 44,567 45,080 46,178 Net interest income 60,296 57,334 57,689 57,248 55,718 Provision for (reversal of) credit losses 747 83 1,410 581 1,092 Net interest income after provision for (reversal of)credit losses 59,549 57,251 56,279 56,667 54,626 Noninterest income Deposit services 6,607 6,389 5,931 6,415 6,069 Net gain (loss) on sale of securities availablefor sale — — — (7,321) (24,395) Gain (loss) on sale of loans 96 56 118 122 164 Trust fees 2,663 2,404 2,202 2,148 2,081 Bank owned life insurance 944 1,475 986 1,134 871 Brokerage services 1,540 1,403 1,363 1,348 1,172 Other 1,883 2,277 1,996 1,732 2,048 Total noninterest income (loss) 13,733 14,004 12,596 5,578 (11,990) Noninterest expense Salaries and employee benefits 23,742 22,973 24,332 22,816 22,803 Net occupancy 3,556 3,707 3,459 3,715 3,761 Advertising, travel & entertainment 1,194 876 1,043 1,147 907 ATM expense 332 325 430 319 444 Professional fees 1,345 1,662 1,485 1,343 1,451 Software and data processing 3,317 3,151 3,097 2,859 2,770 Communications 292 281 287 273 321 FDIC insurance 993 955 937 937 920 Amortization of intangibles 109 121 132 149 172 Loss on redemption of subordinated notes — — 791 — — Other 4,142 4,625 4,583 3,919 3,985 Total noninterest expense 39,022 38,676 40,576 37,477 37,534 Income before income tax expense 34,260 32,579 28,299 24,768 5,102 Income tax expense 6,284 5,742 5,040 3,781 189 Net income $ 27,976 $ 26,837 $ 23,259 $ 20,987 $ 4,913 Common Share Data: Weighted-average basic shares outstanding 29,810 29,769 29,734 29,863 30,067 Weighted-average diluted shares outstanding 29,905 29,877 29,832 29,943 30,135 Common shares outstanding end of period 29,817 29,803 29,752 29,723 30,066 Earnings per common share Basic $ 0.94 $ 0.90 $ 0.78 $ 0.70 $ 0.16 Diluted 0.93 0.90 0.78 0.70 0.16 Book value per common share 28.27 29.61 28.73 28.52 27.77 Tangible book value per common share 21.50 22.84 21.94 21.72 21.04 Cash dividends paid per common share 0.37 0.36 0.36 0.36 0.36 Selected Performance Ratios: Return on average assets 1.27 % 1.23 % 1.10 % 0.99 % 0.23 % Return on average shareholders’ equity 12.55 12.33 10.96 9.85 2.40 Return on average tangible common equity 16.31 16.09 14.39 13.03 3.28 Average yield on earning assets (FTE) 5.27 5.17 5.26 5.24 5.27 Average rate on interest bearing liabilities 2.91 2.91 2.88 2.93 3.01 Net interest margin (FTE) 3.02 2.90 3.01 2.98 2.94 Net interest spread (FTE) 2.36 2.26 2.38 2.31 2.26 Average earning assets to average interest bearingliabilities 129.15 128.08 127.84 129.69 129.13 Noninterest expense to average total assets 1.77 1.77 1.92 1.76 1.78 Efficiency ratio (FTE) 51.55 52.96 54.98 52.28 52.99 (1) Refer to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure. (1) (1) (1) (1) (1)
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Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands) Three Months Ended 2026 2025 Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Nonperforming Assets: $ 15,835 $ 9,798 $ 9,728 $ 38,243 $ 35,608 Nonaccrual loans 10,304 9,630 9,559 10,486 7,955 Accruing loans past due more than 90 days5,155 — — — — Restructured loans 45 47 34 27,509 27,501 Other real estate owned 331 116 128 248 128 Repossessed assets — 5 7 — 24 Asset Quality Ratios: Ratio of nonaccruing loans to: Total loans 0.21 % 0.19 % 0.19 % 0.22 % 0.17 % Ratio of nonperforming assets to: Total assets 0.18 0.11 0.11 0.45 0.42 Total loans 0.32 0.20 0.20 0.79 0.75 Total loans and OREO 0.32 0.20 0.20 0.79 0.75 Ratio of allowance for loan losses to: Nonaccruing loans 454.76 473.47 480.83 430.10 569.38 Nonperforming assets 295.91 465.35 472.48 117.93 127.20 Total loans 0.94 0.92 0.93 0.94 0.95 Net charge-offs (recoveries) to average loansoutstanding (0.03) 0.03 0.01 0.07 0.07 Capital Ratios: Shareholders’ equity to total assets 9.51 10.07 9.71 9.95 9.96 Common equity tier 1 capital 13.12 12.90 12.68 12.87 12.97 Tier 1 risk-based capital 14.08 13.87 13.66 13.88 13.99 Total risk-based capital 17.35 17.14 16.95 18.54 19.01 Tier 1 leverage capital 9.96 9.74 9.74 9.72 9.78 Period end tangible equity to period end tangibleassets 7.40 7.95 7.59 7.77 7.73 Average shareholders’ equity to average totalassets 10.13 9.97 10.02 10.00 9.72 (1) Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure. (1) Page-9
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Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands) Three Months Ended 2026 2025 Loan Portfolio Composition Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Real Estate Loans: Construction $ 542,996 $ 600,080 $ 641,818 $ 548,570 $ 519,528 1-4 Family Residential 724,897 716,099 717,298 724,354 730,061 Commercial Owner-Occupied 360,611 362,390 340,898 319,536 336,278 Commercial Real Estate 2,416,412 2,408,573 2,412,523 2,393,280 2,352,434 Commercial Loans 510,057 467,506 456,896 444,720 429,952 Municipal Loans 367,711 357,568 337,089 346,720 353,324 Loans to Individuals 36,005 37,351 39,639 40,811 43,712 Total Loans $ 4,958,689 $ 4,949,567 $ 4,946,161 $ 4,817,991 $ 4,765,289 Summary of Changes in Allowances: Allowance for Securities Held to Maturity Balance at beginning of period $ 25 $ 25 $ 25 $ 55 $ 55 Provision for (reversal of) securities held tomaturity (1) — — (30) — Balance at end of period $ 24 $ 25 $ 25 $ 25 $ 55 Allowance for Loan Losses Balance at beginning of period $ 45,595 $ 45,963 $ 45,100 $ 45,294 $ 44,421 Loans charged-off (727) (858) (680) (1,115) (1,335) Recoveries of loans charged-off 1,044 514 529 327 491 Net loans (charged-off) recovered 317 (344) (151) (788) (844) Provision for (reversal of) loan losses 946 (24) 1,014 594 1,717 Balance at end of period $ 46,858 $ 45,595 $ 45,963 $ 45,100 $ 45,294 Allowance for Off-Balance-Sheet CreditExposures Balance at beginning of period $ 3,669 $ 3,562 $ 3,166 $ 3,149 $ 3,774 Provision for (reversal of) off-balance-sheetcredit exposures (198) 107 396 17 (625) Balance at end of period $ 3,471 $ 3,669 $ 3,562 $ 3,166 $ 3,149 Total Allowance for Credit Losses $ 50,353 $ 49,289 $ 49,550 $ 48,291 $ 48,498 Page-10
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Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands) Nine Months Ended September 30, 2026 2025 Income Statement: Total interest and dividend income $ 313,046 $ 300,746 Total interest expense 137,727 136,910 Net interest income 175,319 163,836 Provision for (reversal of) credit losses 2,240 2,472 Net interest income after provision for (reversal of) credit losses 173,079 161,364 Noninterest income Deposit services 18,927 18,023 Net gain (loss) on sale of securities available for sale — (24,949) Gain (loss) on sale of loans 270 318 Trust fees 7,269 5,725 Bank owned life insurance 3,405 2,503 Brokerage services 4,306 3,511 Other 6,156 5,247 Total noninterest income (loss) 40,333 10,378 Noninterest expense Salaries and employee benefits 71,047 67,457 Net occupancy 10,722 10,786 Advertising, travel & entertainment 3,113 2,781 ATM expense 1,087 1,227 Professional fees 4,492 4,372 Software and data processing 9,565 8,636 Communications 860 1,046 FDIC insurance 2,885 2,822 Amortization of intangibles 362 593 Loss on redemption of subordinated notes 791 — Other 13,350 14,160 Total noninterest expense 118,274 113,880 Income before income tax expense 95,138 57,862 Income tax expense 17,066 9,629 Net income $ 78,072 $ 48,233 Common Share Data: Weighted-average basic shares outstanding 29,772 30,229 Weighted-average diluted shares outstanding 29,881 30,316 Common shares outstanding end of period 29,817 30,066 Earnings per common share Basic $ 2.62 $ 1.59 Diluted 2.61 1.59 Book value per common share 28.27 27.77 Tangible book value per common share 21.50 21.04 Cash dividends paid per common share 1.09 1.08 Selected Performance Ratios: Return on average assets 1.20 % 0.77 % Return on average shareholders’ equity 11.96 7.89 Return on average tangible common equity 15.62 10.59 Average yield on earning assets (FTE) 5.23 5.25 Average rate on interest bearing liabilities 2.90 3.01 Net interest margin (FTE) 2.97 2.92 Net interest spread (FTE) 2.33 2.24 Average earning assets to average interest bearing liabilities 128.36 128.85 Noninterest expense to average total assets 1.82 1.83 Efficiency ratio (FTE) 53.13 53.89 (1) Refer to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure. (1) (1) (1) (1) (1) Page-11
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Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands) Nine Months Ended September 30, 2026 2025 Nonperforming Assets: $ 15,835 $ 35,608 Nonaccrual loans 10,304 7,955 Accruing loans past due more than 90 days 5,155 — Restructured loans 45 27,501 Other real estate owned 331 128 Repossessed assets — 24 Asset Quality Ratios: Ratio of nonaccruing loans to: Total loans 0.21 % 0.17 % Ratio of nonperforming assets to: Total assets 0.18 0.42 Total loans 0.32 0.75 Total loans and OREO 0.32 0.75 Ratio of allowance for loan losses to: Nonaccruing loans 454.76 569.38 Nonperforming assets 295.91 127.20 Total loans 0.94 0.95 Net charge-offs (recoveries) to average loans outstanding — 0.06 Capital Ratios: Shareholders’ equity to total assets 9.51 9.96 Common equity tier 1 capital 13.12 12.97 Tier 1 risk-based capital 14.08 13.99 Total risk-based capital 17.35 19.01 Tier 1 leverage capital 9.96 9.78 Period end tangible equity to period end tangible assets 7.40 7.73 Average shareholders’ equity to average total assets 10.04 9.80 (1) Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure. (1) Page-12
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Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands) Nine Months Ended September 30, Loan Portfolio Composition 2026 2025 Real Estate Loans: Construction $ 542,996 $ 519,528 1-4 Family Residential 724,897 730,061 Commercial Owner-Occupied 360,611 336,278 Commercial Real Estate 2,416,412 2,352,434 Commercial Loans 510,057 429,952 Municipal Loans 367,711 353,324 Loans to Individuals 36,005 43,712 Total Loans $ 4,958,689 $ 4,765,289 Summary of Changes in Allowances: Allowance for Securities Held to Maturity Balance at beginning of period $ 25 $ — Provision for (reversal of) securities held to maturity (1) 55 Balance at end of period $ 24 $ 55 Summary of Changes in Allowances: Allowance for Loan Losses Balance at beginning of period $ 45,100 $ 44,884 Loans charged-off (2,265) (3,142) Recoveries of loans charged-off 2,087 1,143 Net loans (charged-off) recovered (178) (1,999) Provision for (reversal of) loan losses 1,936 2,409 Balance at end of period $ 46,858 $ 45,294 Allowance for Off-Balance-Sheet Credit Exposures Balance at beginning of period $ 3,166 $ 3,141 Provision for (reversal of) off-balance-sheet credit exposures 305 8 Balance at end of period $ 3,471 $ 3,149 Total Allowance for Credit Losses $ 50,353 $ 48,498 Page-13
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Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands) The tables that follow show average earning assets and interest bearing liabilities together with the average yield on the earning assets and the average rate of the interest bearing liabilities for the periods presented. The interest and related yields presented are on a fully taxable- equivalent basis and are therefore non-GAAP measures. See “Non-GAAP Financial Measures” and “Non-GAAP Reconciliation” for more information. Three Months Ended September 30, 2026 June 30, 2026 AverageBalance Interest AverageYield/Rate AverageBalance Interest AverageYield/Rate ASSETS Loans $ 4,920,727 $ 73,544 5.93 % $ 4,957,830 $ 72,431 5.86 % Loans held for sale 770 11 5.67 % 537 7 5.23 % Securities: Taxable investment securities 576,023 4,906 3.38 % 576,120 4,686 3.26 % Tax-exempt investment securities 862,086 7,623 3.51 % 863,606 7,550 3.51 % Mortgage-backed and related securities 1,493,507 19,698 5.23 % 1,480,922 18,462 5.00 % Total securities 2,931,616 32,227 4.36 % 2,920,648 30,698 4.22 % Federal Home Loan Bank stock, at cost, and equityinvestments 53,617 525 3.88 % 47,353 215 1.82 % Interest earning deposits 266,270 2,390 3.56 % 265,411 2,355 3.56 % Federal funds sold 30,914 285 3.66 % 18,830 171 3.64 % Total earning assets 8,203,914 108,982 5.27 % 8,210,609 105,877 5.17 % Cash and due from banks 76,097 78,543 Accrued interest and other assets 500,205 512,723 Less: Allowance for loan losses (46,115) (46,315) Total assets $ 8,734,101 $ 8,755,560 LIABILITIES AND SHAREHOLDERS’ EQUITY Savings accounts $ 762,996 3,129 1.63 % $ 722,198 2,722 1.51 % Certificates of deposit 1,180,291 10,777 3.62 % 1,313,089 12,093 3.69 % Interest bearing demand accounts 2,785,106 15,244 2.17 % 2,841,740 15,465 2.18 % Total interest bearing deposits 4,728,393 29,150 2.45 % 4,877,027 30,280 2.49 % Federal Home Loan Bank borrowings 887,034 9,025 4.04 % 828,187 8,248 3.99 % Subordinated notes, net of unamortized debtissuance costs 147,612 2,694 7.24 % 147,564 2,686 7.30 % Trust preferred subordinated debentures, net ofunamortized debt issuance costs 60,282 941 6.19 % 60,281 922 6.13 % Repurchase agreements 62,237 491 3.13 % 76,829 629 3.28 % Other borrowings 466,750 4,273 3.63 % 420,660 3,821 3.64 % Total interest bearing liabilities 6,352,308 46,574 2.91 % 6,410,548 46,586 2.91 % Noninterest bearing deposits 1,402,569 1,386,072 Accrued expenses and other liabilities 94,604 85,765 Total liabilities 7,849,481 7,882,385 Shareholders’ equity 884,620 873,175 Total liabilities and shareholders’ equity $ 8,734,101 $ 8,755,560 Net interest income (FTE) $ 62,408 $ 59,291 Net interest margin (FTE) 3.02 % 2.90 % Net interest spread (FTE) 2.36 % 2.26 % (1) Interest on loans includes net fees on loans that are not material in amount. (2) For the purpose of calculating the average yield, the average balance of securities does not include unrealized gains and losses on AFS securities. (3) Yield/rate includes the impact of applicable derivatives. Note: As of September 30, 2026 and June 30, 2026, loans totaling $10.3 million and $9.6 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received, when appropriate. (3) (3) (1) (2) (2) (2) Page-14
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Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands) Three Months Ended March 31, 2026 December 31, 2025 AverageBalance Interest AverageYield/Rate AverageBalance Interest AverageYield/Rate ASSETS Loans $ 4,879,867 $ 71,515 5.94 % $ 4,788,584 $ 71,616 5.93 % Loans held for sale 792 11 5.63 % 675 12 7.05 % Securities: Taxable investment securities 578,480 4,649 3.26 % 593,393 4,835 3.23 % Tax-exempt investment securities 865,279 7,484 3.51 % 893,382 7,939 3.53 % Mortgage-backed and related securities 1,418,491 17,908 5.12 % 1,284,064 16,493 5.10 % Total securities 2,862,250 30,041 4.26 % 2,770,839 29,267 4.19 % Federal Home Loan Bank stock, at cost, and equityinvestments 21,693 249 4.66 % 23,287 441 7.51 % Interest earning deposits 258,860 2,235 3.50 % 313,810 3,019 3.82 % Federal funds sold 7,984 71 3.61 % 6,906 69 3.96 % Total earning assets 8,031,446 104,122 5.26 % 7,904,101 104,424 5.24 % Cash and due from banks 82,443 82,585 Accrued interest and other assets 521,219 508,578 Less: Allowance for loan losses (45,491) (45,559) Total assets $ 8,589,617 $ 8,449,705 LIABILITIES AND SHAREHOLDERS’ EQUITY Savings accounts $ 683,270 2,370 1.41 % $ 647,035 2,061 1.26 % Certificates of deposit 1,328,312 12,402 3.79 % 1,372,879 13,857 4.00 % Interest bearing demand accounts 3,588,863 21,791 2.46 % 3,474,451 21,827 2.49 % Total interest bearing deposits 5,600,445 36,563 2.65 % 5,494,365 37,745 2.73 % Federal Home Loan Bank borrowings 144,008 975 2.75 % 187,725 1,274 2.69 % Subordinated notes, net of unamortized debtissuance costs 195,664 3,577 7.41 % 239,648 4,022 6.66 % Trust preferred subordinated debentures, net ofunamortized debt issuance costs 60,280 915 6.16 % 60,278 980 6.45 % Repurchase agreements 92,622 784 3.43 % 97,637 866 3.52 % Other borrowings 189,444 1,753 3.75 % 14,826 193 5.16 % Total interest bearing liabilities 6,282,463 44,567 2.88 % 6,094,479 45,080 2.93 % Noninterest bearing deposits 1,363,826 1,423,350 Accrued expenses and other liabilities 82,948 86,863 Total liabilities 7,729,237 7,604,692 Shareholders’ equity 860,380 845,013 Total liabilities and shareholders’ equity $ 8,589,617 $ 8,449,705 Net interest income (FTE) $ 59,555 $ 59,344 Net interest margin (FTE) 3.01 % 2.98 % Net interest spread (FTE) 2.38 % 2.31 % (1) Interest on loans includes net fees on loans that are not material in amount. (2) For the purpose of calculating the average yield, the average balance of securities does not include unrealized gains and losses on AFS securities. (3) Yield/rate includes the impact of applicable derivatives. Note: As of March 31, 2026 and December 31, 2025, loans totaling $9.6 million and $10.5 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received, when appropriate. (3) (3) (1) (2) (2) (2) Page-15
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Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands) Three Months Ended September 30, 2025 AverageBalance Interest AverageYield/Rate ASSETS Loans $ 4,640,220 $ 70,240 6.01 % Loans held for sale 776 12 6.14 % Securities: Taxable investment securities 669,712 5,578 3.30 % Tax-exempt investment securities 1,094,978 10,097 3.66 % Mortgage-backed and related securities 1,058,860 14,174 5.31 % Total securities 2,823,550 29,849 4.19 % Federal Home Loan Bank stock, at cost, and equity investments 37,937 374 3.91 % Interest earning deposits 334,523 3,631 4.31 % Federal funds sold 17,546 195 4.41 % Total earning assets 7,854,552 104,301 5.27 % Cash and due from banks 87,815 Accrued interest and other assets 455,884 Less: Allowance for loan losses (44,476) Total assets $ 8,353,775 LIABILITIES AND SHAREHOLDERS’ EQUITY Savings accounts $ 618,059 1,772 1.14 % Certificates of deposit 1,505,292 15,752 4.15 % Interest bearing demand accounts 3,320,993 21,234 2.54 % Total interest bearing deposits 5,444,344 38,758 2.82 % Federal Home Loan Bank borrowings 298,138 2,847 3.79 % Subordinated notes, net of unamortized debt issuance costs 169,196 2,319 5.44 % Trust preferred subordinated debentures, net of unamortized debt issuance costs 60,277 1,025 6.75 % Repurchase agreements 75,207 662 3.49 % Other borrowings 35,544 567 6.33 % Total interest bearing liabilities 6,082,706 46,178 3.01 % Noninterest bearing deposits 1,375,075 Accrued expenses and other liabilities 83,601 Total liabilities 7,541,382 Shareholders’ equity 812,393 Total liabilities and shareholders’ equity $ 8,353,775 Net interest income (FTE) $ 58,123 Net interest margin (FTE) 2.94 % Net interest spread (FTE) 2.26 % (1) Interest on loans includes net fees on loans that are not material in amount. (2) For the purpose of calculating the average yield, the average balance of securities does not include unrealized gains and losses on AFS securities. (3) Yield/rate includes the impact of applicable derivatives. Note: As of September 30, 2025, loans totaling $8.0 million were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received, when appropriate. (3) (1) (2) (2) (2) Page-16
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Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands) Nine Months Ended September 30, 2026 September 30, 2025 AverageBalance Interest AverageYield/Rate AverageBalance Interest AverageYield/Rate ASSETS Loans $ 4,919,624 $ 217,490 5.91 % $ 4,595,316 $ 206,198 6.00 % Loans held for sale 700 29 5.54 % 879 39 5.93 % Securities: Taxable investment securities 576,865 14,241 3.30 % 717,887 18,146 3.38 % Tax-exempt investment securities 863,645 22,657 3.51 % 1,120,012 30,701 3.66 % Mortgage-backed and related securities 1,464,582 56,068 5.12 % 1,034,660 40,737 5.26 % Total securities 2,905,092 92,966 4.28 % 2,872,559 89,584 4.17 % Federal Home Loan Bank stock, at cost, and equityinvestments 41,004 989 3.22 % 37,444 1,381 4.93 % Interest earning deposits 263,541 6,980 3.54 % 304,730 9,754 4.28 % Federal funds sold 19,327 527 3.65 % 29,616 981 4.43 % Total earning assets 8,149,288 318,981 5.23 % 7,840,544 307,937 5.25 % Cash and due from banks 79,005 87,305 Accrued interest and other assets 511,279 455,402 Less: Allowance for loan losses (45,976) (44,774) Total assets $ 8,693,596 $ 8,338,477 LIABILITIES AND SHAREHOLDERS’ EQUITY Savings accounts $ 723,113 8,221 1.52 % $ 602,800 4,652 1.03 % Certificates of deposit 1,273,355 35,272 3.70 % 1,416,992 45,063 4.25 % Interest bearing demand accounts 3,068,959 52,500 2.29 % 3,345,909 63,717 2.55 % Total interest bearing deposits 5,065,427 95,993 2.53 % 5,365,701 113,432 2.83 % Federal Home Loan Bank borrowings 622,465 18,248 3.92 % 434,558 12,405 3.82 % Subordinated notes, net of unamortized debt issuancecosts 163,437 8,957 7.33 % 118,067 4,186 4.74 % Trust preferred subordinated debentures, net ofunamortized debt issuance costs 60,281 2,778 6.16 % 60,276 3,054 6.77 % Repurchase agreements 77,118 1,904 3.30 % 74,264 1,962 3.53 % Other borrowings 359,967 9,847 3.66 % 32,218 1,871 7.76 % Total interest bearing liabilities 6,348,695 137,727 2.90 % 6,085,084 136,910 3.01 % Noninterest bearing deposits 1,384,298 1,349,971 Accrued expenses and other liabilities 87,789 85,882 Total liabilities 7,820,782 7,520,937 Shareholders’ equity 872,814 817,540 Total liabilities and shareholders’ equity $ 8,693,596 $ 8,338,477 Net interest income (FTE) $ 181,254 $ 171,027 Net interest margin (FTE) 2.97 % 2.92 % Net interest spread (FTE) 2.33 % 2.24 % (1) Interest on loans includes net fees on loans that are not material in amount. (2) For the purpose of calculating the average yield, the average balance of securities does not include unrealized gains and losses on AFS securities. Note: As of September 30, 2026 and 2025, loans totaling $10.3 million and $8.0 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received, when appropriate. (1) (2) (2) (2) Page-17
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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.
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Three Months Ended Nine Months Ended 2026 2025 2026 2025 Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Sep 30, Sep 30, Reconciliation of return onaverage common equity toreturn on average tangiblecommon equity: Net income $ 27,976 $ 26,837 $ 23,259 $ 20,987 $ 4,913 $ 78,072 $ 48,233 After-tax amortization expense 86 96 104 117 136 286 469 Adjusted net income availableto common shareholders $ 28,062 $ 26,933 $ 23,363 $ 21,104 $ 5,049 $ 78,358 $ 48,702 Average shareholders' equity $ 884,620 $ 873,175 $ 860,380 $ 845,013 $ 812,393 $ 872,814 $ 817,540 Less: Average intangibles for theperiod (201,832) (201,949) (202,078) (202,217) (202,380) (201,952) (202,576) Average tangible shareholders'equity $ 682,788 $ 671,226 $ 658,302 $ 642,796 $ 610,013 $ 670,862 $ 614,964 Return on average shareholders’equity 12.55 % 12.33 % 10.96 % 9.85 % 2.40 % 11.96 % 7.89 % Return on average tangiblecommon equity 16.31 % 16.09 % 14.39 % 13.03 % 3.28 % 15.62 % 10.59 % Reconciliation of book valueper share to tangible bookvalue per share: Common equity at end of period $ 842,884 $ 882,464 $ 854,862 $ 847,615 $ 834,850 $ 842,884 $ 834,850 Less: Intangible assets at end ofperiod (201,766) (201,875) (201,996) (202,128) (202,277) (201,766) (202,277) Tangible commonshareholders' equity at end ofperiod $ 641,118 $ 680,589 $ 652,866 $ 645,487 $ 632,573 $ 641,118 $ 632,573 Total assets at end of period $ 8,865,058 $ 8,763,714 $ 8,802,182 $ 8,514,590 $ 8,383,160 $ 8,865,058 $ 8,383,160 Less: Intangible assets at end ofperiod (201,766) (201,875) (201,996) (202,128) (202,277) (201,766) (202,277) Tangible assets at end ofperiod $ 8,663,292 $ 8,561,839 $ 8,600,186 $ 8,312,462 $ 8,180,883 $ 8,663,292 $ 8,180,883 Period end tangible equity toperiod end tangible assets 7.40 % 7.95 % 7.59 % 7.77 % 7.73 % 7.40 % 7.73 % Common shares outstanding endof period 29,817 29,803 29,752 29,723 30,066 29,817 30,066 Tangible book value percommon share $ 21.50 $ 22.84 $ 21.94 $ 21.72 $ 21.04 $ 21.50 $ 21.04 Reconciliation of efficiencyratio to efficiency ratio (FTE),net interest margin to netinterest margin (FTE) and netinterest spread to net interestspread (FTE): Net interest income (GAAP) $ 60,296 $ 57,334 $ 57,689 $ 57,248 $ 55,718 $ 175,319 $ 163,836 Tax-equivalent adjustments: Loans 629 550 538 545 553 1,717 1,699 Tax-exempt investmentsecurities 1,483 1,407 1,328 1,551 1,852 4,218 5,492 Net interest income (FTE) 62,408 59,291 59,555 59,344 58,123 181,254 171,027 Noninterest income 13,733 14,004 12,596 5,578 (11,990) 40,333 10,378 Nonrecurring income — (543) (47) 7,066 24,395 (590) 24,949 Total revenue $ 76,141 $ 72,752 $ 72,104 $ 71,988 $ 70,528 $ 220,997 $ 206,354 Noninterest expense $ 39,022 $ 38,676 $ 40,576 $ 37,477 $ 37,534 $ 118,274 $ 113,880 Pre-tax amortization expense (109) (121) (132) (149) (172) (362) (593) Nonrecurring expense 334 (26) (799) 306 14 (491) (2,077) Adjusted noninterestexpense $ 39,247 $ 38,529 $ 39,645 $ 37,634 $ 37,376 $ 117,421 $ 111,210 Efficiency ratio 53.02 % 54.42 % 56.44 % 53.85 % 54.87 % 54.60 % 55.84 % Efficiency ratio (FTE) 51.55 % 52.96 % 54.98 % 52.28 % 52.99 % 53.13 % 53.89 % Average earning assets $ 8,203,914 $ 8,210,609 $ 8,031,446 $ 7,904,101 $ 7,854,552 $ 8,149,288 $ 7,840,544 Net interest margin 2.92 % 2.80 % 2.91 % 2.87 % 2.81 % 2.88 % 2.79 % Net interest margin (FTE) 3.02 % 2.90 % 3.01 % 2.98 % 2.94 % 2.97 % 2.92 % Net interest spread 2.26 % 2.17 % 2.28 % 2.21 % 2.14 % 2.24 % 2.12 % Net interest spread (FTE) 2.36 % 2.26 % 2.38 % 2.31 % 2.26 % 2.33 % 2.24 % (1) These amounts are presented on a fully taxable-equivalent basis and are non-GAAP measures. (2) These adjustments may include net gain or loss on sale of securities available for sale, BOLI income related to death benefits realized and other investment income or loss in the periods where applicable. (3) These adjustments may include loss on redemption of subordinated notes, foreclosure expenses, branch closure expenses and other miscellaneous expense, in the periods where applicable. (1) (2) (3) (1) (1) (1) Page-18