Document

EX-99.1 2 ex991er12312024.htm EX-99.1 Document

EXHIBIT 99.1

SOUTHSIDE BANCSHARES, INC.

ANNOUNCES FINANCIAL RESULTS FOR THE

FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2024

•Fourth quarter net income of $21.8 million;

•Fourth quarter earnings per diluted common share of $0.71;

•Annualized return on fourth quarter average assets of 1.03%;

•Annualized return on fourth quarter average tangible common equity of 14.12%(1); and

•Nonperforming assets decreased to 0.04% of total assets.

Tyler, Texas (January 29, 2025) Southside Bancshares, Inc. (“Southside” or the “Company”) (NYSE: SBSI) today reported its financial results for the quarter and year ended December 31, 2024. Southside reported net income of $21.8 million for the three months ended December 31, 2024, an increase of $4.5 million, or 25.8%, compared to $17.3 million for the same period in 2023. Earnings per diluted common share increased $0.14, or 24.6%, to $0.71 for the three months ended December 31, 2024, from $0.57 for the same period in 2023. The annualized return on average shareholders’ equity for the three months ended December 31, 2024, was 10.54%, compared to 9.31% for the same period in 2023. The annualized return on average assets was 1.03% for the three months ended December 31, 2024, compared to 0.85% for the same period in 2023.

“For the year ended December 31, 2024, net income increased $1.8 million to $88.5 million when compared to 2023, earnings per share increased $0.09 to $2.91, and the return on average tangible common equity was 14.92%. For 2024, loan growth was 3.0% and linked quarter loans increased $83.5 million, or 7.3% annualized, most of which occurred in December,” stated Lee R. Gibson, Chief Executive Officer of Southside. “We recorded losses of $540,000 associated with two branch closures during 2024. Linked quarter our net interest margin decreased 12 basis points. Asset quality metrics remain solid with the nonperforming assets to total assets ratio decreasing to 0.04%. Late fourth quarter loan growth combined with anticipated mid-single digit 2025 loan growth should lead to an increasing net interest margin during 2025.”

Operating Results for the Three Months Ended December 31, 2024

Net income was $21.8 million for the three months ended December 31, 2024, compared to $17.3 million for the same period in 2023, an increase of $4.5 million, or 25.8%. Earnings per diluted common share were $0.71 and $0.57 for the three months ended December 31, 2024 and 2023, respectively. The increase in net income was a result of the increase in noninterest income and the decrease in the provision for credit losses, partially offset by increases in noninterest expense and income tax expense and a decrease in net interest income. Annualized returns on average assets and average shareholders’ equity for the three months ended December 31, 2024 were 1.03% and 10.54%, respectively, compared to 0.85% and 9.31%, respectively, for the three months ended December 31, 2023. Our efficiency ratio and tax-equivalent efficiency ratio(1) were 56.08% and 54.00%, respectively, for the three months ended December 31, 2024, compared to 53.30% and 50.86%, respectively, for the three months ended December 31, 2023, and 53.94% and 51.90%, respectively, for the three months ended September 30, 2024.

Net interest income for the three months ended December 31, 2024 was $53.7 million, a decrease of $0.8 million, or 1.4%, from the same period in 2023. The decrease in net interest income was due to the decrease in the average yield of interest earning assets and increases in the average rate paid on and average balance of our interest bearing liabilities, partially offset by the increase in the average balance of interest earning assets. Linked quarter, net interest income decreased $1.8 million, or 3.2%, compared to $55.5 million for the three months ended September 30, 2024, due to the decrease in the average yield of interest earning assets, partially offset by the decrease in the average rate paid on our interest bearing liabilities, the increase in the average balance of interest earning assets and the change in the mix of our interest bearing liabilities.

Our net interest margin and tax-equivalent net interest margin(1) decreased to 2.70% and 2.83%, respectively, for the three months ended December 31, 2024, compared to 2.83% and 2.99%, respectively, for the same period in 2023. Linked quarter, net interest margin and tax-equivalent net interest margin(1) decreased from 2.82% and 2.95%, respectively, for the three months ended September 30, 2024.

Noninterest income was $12.3 million for the three months ended December 31, 2024, an increase of $9.8 million, or 391.0%, compared to $2.5 million for the same period in 2023. The increase was due to a decrease in net loss on sale of securities available for sale (“AFS”) and an increase in other noninterest income, partially offset by a decrease in bank owned life insurance (“BOLI”) income. The decrease in net loss on sale of securities AFS was due to a net loss of $10.4 million for the three months ended December 31, 2023, related to the strategic repositioning of the securities portfolio. On a linked quarter

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basis, noninterest income increased $4.1 million, or 50.3%, compared to the three months ended September 30, 2024. The increase was primarily due to an increase in other noninterest income and a decrease in net loss on sale of securities AFS. The increase in other noninterest income was primarily due to an increase in swap fee income for the three months ended December 31, 2024, and an impairment charge of $868,000 on the sale of approximately $10 million of AFS municipal securities and the unwind of the related fair value swaps realized during the three months ended September 30, 2024.

Noninterest expense increased $3.0 million, or 8.5%, to $38.2 million for the three months ended December 31, 2024, compared to $35.2 million for the same period in 2023, due to increases in salaries and employee benefits, other noninterest expense, professional fees and software and data processing expense, partially offset by decreases in advertising, travel and entertainment expense. On a linked quarter basis, noninterest expense increased by $1.8 million, or 5.0%, compared to the three months ended September 30, 2024, due to increases in salaries and employee benefits expense, other noninterest expense and professional fees.

Income tax expense increased $2.5 million, or 111.2%, for the three months ended December 31, 2024, compared to the same period in 2023. On a linked quarter basis, income tax expense increased $0.3 million, or 6.1%. Our effective tax rate (“ETR”) increased to 17.6% for the three months ended December 31, 2024, compared to 11.3% for the three months ended December 31, 2023. On a linked quarter basis, the ETR was 17.6% for both the three months ended September 30, 2024 and December 31, 2024. The higher ETR for the three months ended December 31, 2024 compared to the same period in 2023, was primarily due to a decrease in net tax-exempt income as a percentage of pre-tax income.

Operating Results for the Year Ended December 31, 2024

Net income was $88.5 million for the year ended December 31, 2024, compared to $86.7 million for the same period in 2023, an increase of $1.8 million, or 2.1%. Earnings per diluted common share were $2.91 for the year ended December 31, 2024, compared to $2.82 for the same period in 2023, an increase of 3.2%. The increase in net income was primarily a result of the increase in noninterest income, decrease in provision for credit losses and the increase in net interest income, partially offset by the increases in noninterest expense and income tax expense. Returns on average assets and average shareholders’ equity for the year ended December 31, 2024 were 1.06% and 11.03%, respectively, compared to 1.11% and 11.50%, respectively, for the year ended December 31, 2023. Our efficiency ratio and tax-equivalent efficiency ratio(1) were 55.69% and 53.52%, respectively, for the year ended December 31, 2024, compared to 53.81% and 51.30%, respectively, for the year ended December 31, 2023.

Net interest income was $216.1 million for the year ended December 31, 2024, compared to $215.0 million for the same period in 2023, an increase of $1.1 million, or 0.5%, due to increases in the average balance and the average yield of interest earning assets, partially offset by increases in the average rate paid on and average balance of our interest bearing liabilities.

Our net interest margin and tax-equivalent net interest margin(1) were 2.74% and 2.88%, respectively, for the year ended December 31, 2024, compared to 2.92% and 3.09%, respectively, for the same period in 2023.

Noninterest income was $41.7 million for the year ended December 31, 2024, an increase of $5.9 million, or 16.5%, compared to $35.8 million for the same period in 2023. The increase was primarily due to a decrease in net loss on sale of securities AFS and an increase in brokerage services income, partially offset by decreases in the net gain on sale of equity securities, BOLI income and deposit services income.

Noninterest expense was $147.1 million for the year ended December 31, 2024, compared to $140.6 million for the same period in 2023, an increase of $6.6 million, or 4.7%. The increase was primarily due to increases in salaries and employee benefits, software and data processing expense and other noninterest expense, partially offset by decreases in advertising, travel and entertainment expense and amortization of intangibles.

Income tax expense increased $4.4 million, or 30.8%, for the year ended December 31, 2024, compared to the same period in 2023. Our ETR was approximately 17.6% and 14.3% for the year ended December 31, 2024 and 2023, respectively. The higher ETR for the year ended December 31, 2024, as compared to the same period in 2023, was primarily due to a decrease in net tax-exempt income as a percentage of pre-tax income.

Balance Sheet Data

At December 31, 2024, Southside had $8.52 billion in total assets, compared to $8.28 billion at December 31, 2023 and $8.36 billion at September 30, 2024.

Loans at December 31, 2024 were $4.66 billion, an increase of $137.1 million, or 3.0%, compared to $4.52 billion at December 31, 2023. Linked quarter, loans increased $83.5 million, or 1.8%, due to increases of $157.1 million in commercial real estate loans and $4.3 million in commercial loans. These increases were partially offset by decreases of $48.0 million in construction loans, $15.0 million in 1-4 family residential loans, $11.1 million in municipal loans and $3.8 million in loans to individuals.

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Securities at December 31, 2024 were $2.81 billion, an increase of $209.8 million, or 8.1%, compared to $2.60 billion at December 31, 2023. Linked quarter, securities increased $116.3 million, or 4.3%, from $2.70 billion at September 30, 2024.

Deposits at December 31, 2024 were $6.65 billion, an increase of $104.6 million, or 1.6%, compared to $6.55 billion at December 31, 2023. Linked quarter, deposits increased $218.5 million, or 3.4%, from $6.44 billion at September 30, 2024. During the three months ended December 31, 2024, public fund deposits increased $156.8 million, or 14.6%, compared to September 30, 2024.

At December 31, 2024, we had 178,662 total deposit accounts with an average balance of $33,000. Our estimated uninsured deposits were 38.1% of total deposits as of December 31, 2024. When excluding affiliate deposits (Southside-owned deposits) and public fund deposits (all collateralized), our total estimated deposits without insurance or collateral was 19.5% as of December 31, 2024. Our noninterest bearing deposits represent approximately 20.4% of total deposits. Linked quarter, our cost of interest bearing deposits decreased nine basis points from 3.01% in the prior quarter to 2.92%. Linked quarter, our cost of total deposits decreased seven basis points from 2.38% in the prior quarter to 2.31%.

Our cost of interest bearing deposits increased 64 basis points, from 2.34% for the year ended December 31, 2023, to 2.98% for the year ended December 31, 2024. Our cost of total deposits increased 59 basis points, from 1.77% for the year ended December 31, 2023, to 2.36% for the year ended December 31, 2024.

Capital Resources and Liquidity

Our capital ratios and contingent liquidity sources remain solid. During the fourth quarter ended December 31, 2024, we did not purchase any common stock pursuant to our Stock Repurchase Plan. Under this 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 Stock Repurchase Plan and may modify, suspend or discontinue the plan at any time. We have not purchased any common stock pursuant to the Stock Repurchase Plan subsequent to December 31, 2024.

As of December 31, 2024, our total available contingent liquidity, net of current outstanding borrowings, was $2.23 billion, consisting of FHLB advances, Federal Reserve Discount Window and correspondent bank lines of credit.

Asset Quality

Nonperforming assets at December 31, 2024 were $3.6 million, or 0.04% of total assets, a decrease of $0.4 million, or 10.3%, compared to $4.0 million, or 0.05% of total assets, at December 31, 2023. Linked quarter, nonperforming assets decreased $4.1 million, or 53.1%, from $7.7 million at September 30, 2024 due to a $4.1 million decrease in nonaccrual loans primarily from the payoff of one commercial real estate loan. Classified loans totaled $48.0 million on December 31, 2024, compared to $42.0 million at September 30, 2024 and $19.2 million at December 31, 2023.

The allowance for loan losses totaled $44.9 million, or 0.96% of total loans, at December 31, 2024, compared to $44.3 million, or 0.97% of total loans, at September 30, 2024. The allowance for loan losses was $42.7 million, or 0.94% of total loans, at December 31, 2023.

For the three months ended December 31, 2024, we recorded a provision for credit losses for loans of $1.6 million, compared to a provision of $2.2 million and $2.3 million for the three months ended December 31, 2023 and September 30, 2024, respectively. Net charge-offs were $1.0 million for the three months ended December 31, 2024, compared to net charge-offs of $1.3 million and $0.4 million for the three months ended December 31, 2023 and September 30, 2024, respectively. Net charge-offs were $1.9 million for the year ended December 31, 2024, compared to net charge-offs of $2.8 million for the year ended December 31, 2023.

We recorded a reversal of provision for credit losses on off-balance-sheet credit exposures of $0.2 million for the three months ended December 31, 2024, compared to a provision for credit losses on off-balance-sheet credit exposures $0.1 million for both of the three-month periods ended December 31, 2023 and September 30, 2024. We recorded a reversal of provision for credit losses for off-balance-sheet credit exposures of $0.8 million for the year ended December 31, 2024, compared to a provision for credit losses on off-balance-sheet credit exposures of $0.2 million for the year ended December 31, 2023. The balance of the allowance for off-balance-sheet credit exposures was $3.1 million and $3.9 million at December 31, 2024 and 2023, respectively, and is included in other liabilities.

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Dividend

Southside Bancshares, Inc. declared a fourth quarter cash dividend of $0.36 per share on November 7, 2024, which was paid on December 6, 2024, to all shareholders of record as of November 21, 2024.

_______________

(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.

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Conference Call

Southside's management team will host a conference call to discuss its fourth quarter and year ended December 31, 2024 financial results on Wednesday, January 29, 2025 at 11:00 a.m. CST. The conference call can be accessed by webcast, for listen-only mode, on the company website, https://investors.southside.com, under Events.

Those interested in participating in the question and answer session, or others who prefer to call-in, can register at https://register.vevent.com/register/BI54b435198f6143e589b32994aed51233 to receive the dial-in number and unique code to access the conference call seamlessly. While not required, it is recommended that those wishing to participate, register 10 minutes prior to the conference call to ensure a more efficient registration process.

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

Non-GAAP Financial Measures

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

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

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

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

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

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

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About Southside Bancshares, Inc.

Southside Bancshares, Inc. is a bank holding company with approximately $8.52 billion in assets as of December 31, 2024, that owns 100% of Southside Bank. Southside Bank currently has 53 branches in Texas and operates a network of 72 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, benefits of the Share Repurchase Plan, 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 increases, tax reform, inflation, 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 factor that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of higher inflation levels, interest rate fluctuations and general economic concerns, 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, our ability to manage liquidity in a rapidly changing and unpredictable market, labor shortages and changes in interest rates by the Federal Reserve.

Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, 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.

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Southside Bancshares, Inc.

Consolidated Financial Summary (Unaudited)

(Dollars in thousands)


	As of
	2024								2023
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,
ASSETS
Cash and due from banks	$	91,409	$	130,147	$	114,283	$	96,744	$	122,021
Interest earning deposits	281,945		333,825		272,469		307,257		391,719
Federal funds sold	52,807		22,325		65,244		65,372		46,770
Securities available for sale, at estimated fair value	1,533,894		1,408,437		1,405,944		1,405,221		1,296,294
Securities held to maturity, at net carrying value	1,279,234		1,288,403		1,305,975		1,306,898		1,307,053
Total securities	2,813,128		2,696,840		2,711,919		2,712,119		2,603,347
Federal Home Loan Bank stock, at cost	33,818		40,291		32,991		27,958		11,936
Loans held for sale	1,946		768		1,352		756		10,894
Loans	4,661,597		4,578,048		4,589,365		4,577,368		4,524,510
Less: Allowance for loan losses	(44,884)		(44,276)		(42,407)		(43,557)		(42,674)
Net loans	4,616,713		4,533,772		4,546,958		4,533,811		4,481,836
Premises & equipment, net	141,648		138,811		138,489		139,491		138,950
Goodwill	201,116		201,116		201,116		201,116		201,116
Other intangible assets, net	1,754		2,003		2,281		2,588		2,925
Bank owned life insurance	138,313		137,489		136,903		136,604		136,330
Other assets	142,851		124,876		133,697		130,047		137,070
Total assets	$	8,517,448	$	8,362,263	$	8,357,702	$	8,353,863	$	8,284,914

LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest bearing deposits	$	1,357,152	$	1,377,022	$	1,366,924	$	1,358,827	$	1,390,407
Interest bearing deposits	5,297,096		5,058,680		5,129,008		5,186,933		5,159,274
Total deposits	6,654,248		6,435,702		6,495,932		6,545,760		6,549,681
Other borrowings and Federal Home Loan Bank borrowings	808,352		865,856		763,700		770,151		722,468
Subordinated notes, net of unamortized debt issuance costs	92,042		92,006		91,970		93,913		93,877
Trust preferred subordinated debentures, net of unamortized debt issuance costs	60,274		60,273		60,272		60,271		60,270
Other liabilities	90,590		103,172		144,858		95,846		85,330
Total liabilities	7,705,506		7,557,009		7,556,732		7,565,941		7,511,626
Shareholders' equity	811,942		805,254		800,970		787,922		773,288
Total liabilities and shareholders' equity	$	8,517,448	$	8,362,263	$	8,357,702	$	8,353,863	$	8,284,914

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Southside Bancshares, Inc.

Consolidated Financial Highlights (Unaudited)

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


	Three Months Ended
	2024												2023
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,
Income Statement:
Total interest and dividend income	$	101,689		$	105,703		$	104,186		$	102,758		$	98,939
Total interest expense	47,982			50,239			50,578			49,410			44,454
Net interest income	53,707			55,464			53,608			53,348			54,485
Provision for (reversal of) credit losses	1,384			2,389			(485)			58			2,281
Net interest income after provision for (reversal of) credit losses	52,323			53,075			54,093			53,290			52,204
Noninterest income
Deposit services	6,084			6,199			6,157			5,985			6,305
Net gain (loss) on sale of securities available for sale	—			(1,929)			(563)			(18)			(10,386)

Gain (loss) on sale of loans	138			115			220			(436)			178
Trust fees	1,773			1,628			1,456			1,336			1,431
Bank owned life insurance	848			857			1,767			784			2,602
Brokerage services	1,054			1,068			1,081			1,014			944
Other	2,384			233			1,439			1,059			1,427
Total noninterest income	12,281			8,171			11,557			9,724			2,501
Noninterest expense
Salaries and employee benefits	22,960			22,233			21,984			23,113			21,152
Net occupancy	3,629			3,613			3,750			3,362			3,474

Advertising, travel & entertainment	884			734			795			950			1,127
ATM expense	378			412			368			325			318
Professional fees	1,645			1,206			1,075			1,154			1,315
Software and data processing	2,931			2,951			2,860			2,856			2,644
Communications	320			423			410			449			435
FDIC insurance	931			939			977			943			892
Amortization of intangibles	249			278			307			337			370

Other	4,232			3,543			3,239			3,392			3,456
Total noninterest expense	38,159			36,332			35,765			36,881			35,183
Income before income tax expense	26,445			24,914			29,885			26,133			19,522
Income tax expense	4,659			4,390			5,212			4,622			2,206
Net income	$	21,786		$	20,524		$	24,673		$	21,511		$	17,316

Common Share Data:
Weighted-average basic shares outstanding	30,343			30,286			30,280			30,262			30,235
Weighted-average diluted shares outstanding	30,459			30,370			30,312			30,305			30,276
Common shares outstanding end of period	30,379			30,308			30,261			30,284			30,249
Earnings per common share
Basic	$	0.72		$	0.68		$	0.81		$	0.71		$	0.57
Diluted	0.71			0.68			0.81			0.71			0.57
Book value per common share	26.73			26.57			26.47			26.02			25.56
Tangible book value per common share	20.05			19.87			19.75			19.29			18.82
Cash dividends paid per common share	0.36			0.36			0.36			0.36			0.37

Selected Performance Ratios:
Return on average assets	1.03		%	0.98		%	1.19		%	1.03		%	0.85		%
Return on average shareholders’ equity	10.54			10.13			12.46			11.02			9.31
Return on average tangible common equity (1)	14.12			13.69			16.90			15.07			13.10
Average yield on earning assets (FTE) (1)	5.24			5.51			5.45			5.38			5.30
Average rate on interest bearing liabilities	3.12			3.28			3.32			3.22			3.04
Net interest margin (FTE) (1)	2.83			2.95			2.87			2.86			2.99
Net interest spread (FTE) (1)	2.12			2.23			2.13			2.16			2.26
Average earning assets to average interest bearing liabilities	129.55			128.51			128.62			127.71			131.65
Noninterest expense to average total assets	1.80			1.73			1.72			1.77			1.73
Efficiency ratio (FTE) (1)	54.00			51.90			52.71			55.54			50.86

(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.

Page-8

Southside Bancshares, Inc.

Consolidated Financial Highlights (Unaudited)

(Dollars in thousands)


	Three Months Ended
	2024												2023
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,
Nonperforming Assets:	$	3,589		$	7,656		$	6,918		$	7,979		$	4,001
Nonaccrual loans	3,185			7,254			6,110			7,709			3,889
Accruing loans past due more than 90 days	—			—			—			—			—
Restructured loans	2			—			145			151			13
Other real estate owned	388			388			648			119			99
Repossessed assets	14			14			15			—			—

Asset Quality Ratios:
Ratio of nonaccruing loans to:
Total loans	0.07		%	0.16		%	0.13		%	0.17		%	0.09		%
Ratio of nonperforming assets to:
Total assets	0.04			0.09			0.08			0.10			0.05
Total loans	0.08			0.17			0.15			0.17			0.09
Total loans and OREO	0.08			0.17			0.15			0.17			0.09
Ratio of allowance for loan losses to:
Nonaccruing loans	1,409.23			610.37			694.06			565.01			1,097.30
Nonperforming assets	1,250.60			578.32			613.00			545.90			1,066.58
Total loans	0.96			0.97			0.92			0.95			0.94
Net charge-offs (recoveries) to average loans outstanding	0.08			0.04			0.02			0.03			0.11

Capital Ratios:
Shareholders’ equity to total assets	9.53			9.63			9.58			9.43			9.33
Common equity tier 1 capital	13.04			13.07			12.72			12.43			12.28
Tier 1 risk-based capital	14.07			14.12			13.76			13.47			13.32
Total risk-based capital	16.49			16.59			16.16			15.92			15.73
Tier 1 leverage capital	9.67			9.61			9.40			9.22			9.39
Period end tangible equity to period end tangible assets (1)	7.33			7.38			7.33			7.17			7.04
Average shareholders’ equity to average total assets	9.76			9.67			9.52			9.35			9.13

(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.

Page-9

Southside Bancshares, Inc.

Consolidated Financial Highlights (Unaudited)

(Dollars in thousands)


	Three Months Ended
	2024								2023
Loan Portfolio Composition	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,
Real Estate Loans:
Construction	$	537,827	$	585,817	$	546,040	$	599,464	$	789,744
1-4 Family Residential	740,396		755,406		738,037		720,508		696,738
Commercial	2,579,735		2,422,612		2,472,771		2,413,345		2,168,451
Commercial Loans	363,167		358,854		359,807		358,053		366,893
Municipal Loans	390,968		402,041		416,986		427,225		441,168
Loans to Individuals	49,504		53,318		55,724		58,773		61,516
Total Loans	$	4,661,597	$	4,578,048	$	4,589,365	$	4,577,368	$	4,524,510

Summary of Changes in Allowances:
Allowance for Loan Losses
Balance at beginning of period	$	44,276	$	42,407	$	43,557	$	42,674	$	41,760


Loans charged-off	(1,232)		(773)		(721)		(634)		(1,572)
Recoveries of loans charged-off	277		365		444		347		284
Net loans (charged-off) recovered	(955)		(408)		(277)		(287)		(1,288)
Provision for (reversal of) loan losses	1,563		2,277		(873)		1,170		2,202
Balance at end of period	$	44,884	$	44,276	$	42,407	$	43,557	$	42,674






Allowance for Off-Balance-Sheet Credit Exposures
Balance at beginning of period	$	3,320	$	3,208	$	2,820	$	3,932	$	3,853

Provision for (reversal of) off-balance-sheet credit exposures	(179)		112		388		(1,112)		79
Balance at end of period	$	3,141	$	3,320	$	3,208	$	2,820	$	3,932
Total Allowance for Credit Losses	$	48,025	$	47,596	$	45,615	$	46,377	$	46,606

Page-10

Southside Bancshares, Inc.

Consolidated Financial Highlights (Unaudited)

(Dollars in thousands)


	Year ended
	December 31,
	2024			2023
Income Statement:
Total interest and dividend income	$	414,336		$	359,741
Total interest expense	198,209			144,714
Net interest income	216,127			215,027
Provision for (reversal of) credit losses	3,346			9,154
Net interest income after provision for (reversal of) credit losses	212,781			205,873
Noninterest income
Deposit services	24,425			25,497
Net gain (loss) on sale of securities available for sale	(2,510)			(15,976)
Net gain on sale of equity securities	—			5,058
Gain (loss) on sale of loans	37			563
Trust fees	6,193			5,910
Bank owned life insurance	4,256			5,823
Brokerage services	4,217			3,305
Other	5,115			5,654
Total noninterest income	41,733			35,834
Noninterest expense
Salaries and employee benefits	90,290			85,625
Net occupancy	14,354			14,694

Advertising, travel & entertainment	3,363			4,093
ATM expense	1,483			1,351
Professional fees	5,080			5,351
Software and data processing	11,598			9,395
Communications	1,602			1,469
FDIC insurance	3,790			3,558
Amortization of intangibles	1,171			1,697
Other	14,406			13,345
Total noninterest expense	147,137			140,578
Income before income tax expense	107,377			101,129
Income tax expense	18,883			14,437
Net income	$	88,494		$	86,692

Common Share Data:
Weighted-average basic shares outstanding	30,293			30,704
Weighted-average diluted shares outstanding	30,369			30,759
Common shares outstanding end of period	30,379			30,249
Earnings per common share
Basic	$	2.92		$	2.82
Diluted	2.91			2.82
Book value per common share	26.73			25.56
Tangible book value per common share	20.05			18.82
Cash dividends paid per common share	1.44			1.42

Selected Performance Ratios:
Return on average assets	1.06		%	1.11		%
Return on average shareholders’ equity	11.03			11.50
Return on average tangible common equity (1)	14.92			16.03
Average yield on earning assets (FTE) (1)	5.40			5.06
Average rate on interest bearing liabilities	3.24			2.64
Net interest margin (FTE) (1)	2.88			3.09
Net interest spread (FTE) (1)	2.16			2.42
Average earning assets to average interest bearing liabilities	128.60			134.07
Noninterest expense to average total assets	1.76			1.80
Efficiency ratio (FTE) (1)	53.52			51.30

(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.

Page-11

Southside Bancshares, Inc.

Consolidated Financial Highlights (Unaudited)

(Dollars in thousands)


	Year ended
	December 31,
	2024			2023
Nonperforming Assets:	$	3,589		$	4,001
Nonaccrual loans	3,185			3,889
Accruing loans past due more than 90 days	—			—
Restructured loans	2			13
Other real estate owned	388			99
Repossessed assets	14			—

Asset Quality Ratios:
Ratio of nonaccruing loans to:
Total loans	0.07		%	0.09		%
Ratio of nonperforming assets to:
Total assets	0.04			0.05
Total loans	0.08			0.09
Total loans and OREO	0.08			0.09

Ratio of allowance for loan losses to:
Nonaccruing loans	1,409.23			1,097.30
Nonperforming assets	1,250.60			1,066.58
Total loans	0.96			0.94

Net charge-offs (recoveries) to average loans outstanding	0.04			0.06

Capital Ratios:
Shareholders’ equity to total assets	9.53			9.33
Common equity tier 1 capital	13.04			12.28
Tier 1 risk-based capital	14.07			13.32
Total risk-based capital	16.49			15.73
Tier 1 leverage capital	9.67			9.39
Period end tangible equity to period end tangible assets (1)	7.33			7.04
Average shareholders’ equity to average total assets	9.58			9.63

(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.

Page-12

Southside Bancshares, Inc.

Consolidated Financial Highlights (Unaudited)

(Dollars in thousands)


	Year ended
	December 31,
Loan Portfolio Composition	2024		2023
Real Estate Loans:
Construction	$	537,827	$	789,744
1-4 Family Residential	740,396		696,738
Commercial	2,579,735		2,168,451
Commercial Loans	363,167		366,893
Municipal Loans	390,968		441,168
Loans to Individuals	49,504		61,516
Total Loans	$	4,661,597	$	4,524,510

Summary of Changes in Allowances:
Allowance for Loan Losses
Balance at beginning of period	$	42,674	$	36,515


Loans charged-off	(3,360)		(4,204)
Recoveries of loans charged-off	1,433		1,454
Net loans (charged-off) recovered	(1,927)		(2,750)
Provision for (reversal of) loan losses	4,137		8,909
Balance at end of period	$	44,884	$	42,674

Allowance for Off-Balance-Sheet Credit Exposures
Balance at beginning of period	$	3,932	$	3,687

Provision for (reversal of) off-balance-sheet credit exposures	(791)		245
Balance at end of period	$	3,141	$	3,932
Total Allowance for Credit Losses	$	48,025	$	46,606

Page-13

Southside Bancshares, Inc.

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

(Dollars in thousands)

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


	Three Months Ended
	December 31, 2024						September 30, 2024
	Average Balance		Interest		Average Yield/Rate		Average Balance		Interest		Average Yield/Rate
ASSETS
Loans (1)	$	4,604,175	$	70,155	6.06	%	$	4,613,028	$	72,493	6.25	%
Loans held for sale	1,562		23		5.86	%	871		11		5.02	%
Securities:
Taxable investment securities (2)	784,321		6,949		3.52	%	791,914		7,150		3.59	%
Tax-exempt investment securities (2)	1,138,271		10,793		3.77	%	1,174,445		11,825		4.01	%
Mortgage-backed and related securities (2)	1,031,187		12,043		4.65	%	886,325		11,976		5.38	%
Total securities	2,953,779		29,785		4.01	%	2,852,684		30,951		4.32	%
Federal Home Loan Bank stock, at cost, and equity investments	37,078		591		6.34	%	41,159		582		5.63	%
Interest earning deposits	273,656		3,160		4.59	%	281,313		3,798		5.37	%
Federal funds sold	43,121		508		4.69	%	33,971		488		5.71	%
Total earning assets	7,913,371		104,222		5.24	%	7,823,026		108,323		5.51	%
Cash and due from banks	102,914						100,578
Accrued interest and other assets	454,387						455,091
Less: Allowance for loan losses	(44,418)						(42,581)
Total assets	$	8,426,254					$	8,336,114
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	594,196	1,456		0.97	%	$	598,116	1,490		0.99	%
Certificates of deposit	1,187,800		13,537		4.53	%	1,087,613		12,647		4.63	%
Interest bearing demand accounts	3,459,122		23,468		2.70	%	3,409,911		24,395		2.85	%
Total interest bearing deposits	5,241,118		38,461		2.92	%	5,095,640		38,532		3.01	%
Federal Home Loan Bank borrowings	572,993		5,557		3.86	%	618,708		6,488		4.17	%
Subordinated notes, net of unamortized debt issuance costs	92,024		945		4.09	%	91,988		937		4.05	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs	60,274		1,095		7.23	%	60,273		1,180		7.79	%
Repurchase agreements	80,891		782		3.85	%	83,297		899		4.29	%
Other borrowings	61,196		1,142		7.42	%	137,482		2,203		6.37	%
Total interest bearing liabilities	6,108,496		47,982		3.12	%	6,087,388		50,239		3.28	%
Noninterest bearing deposits	1,383,204						1,344,165
Accrued expenses and other liabilities	112,320						98,331
Total liabilities	7,604,020						7,529,884
Shareholders’ equity	822,234						806,230
Total liabilities and shareholders’ equity	$	8,426,254					$	8,336,114
Net interest income (FTE)			$	56,240					$	58,084
Net interest margin (FTE)					2.83	%					2.95	%
Net interest spread (FTE)					2.12	%					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 is presented at historical cost.

Note: As of December 31, 2024 and September 30, 2024, loans totaling $3.2 million and $7.3 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.

Page-14

Southside Bancshares, Inc.

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

(Dollars in thousands)


	Three Months Ended
	June 30, 2024						March 31, 2024
	Average Balance		Interest		Average Yield/Rate		Average Balance		Interest		Average Yield/Rate
ASSETS
Loans (1)	$	4,595,980	$	70,293	6.15	%	$	4,559,602	$	68,849	6.07	%
Loans held for sale	1,489		24		6.48	%	8,834		18		0.82	%
Securities:
Taxable investment securities (2)	783,856		7,009		3.60	%	780,423		6,967		3.59	%
Tax-exempt investment securities (2)	1,254,097		12,761		4.09	%	1,285,922		13,168		4.12	%
Mortgage-backed and related securities (2)	830,504		11,084		5.37	%	764,713		10,119		5.32	%
Total securities	2,868,457		30,854		4.33	%	2,831,058		30,254		4.30	%
Federal Home Loan Bank stock, at cost, and equity investments	40,467		573		5.69	%	40,063		333		3.34	%
Interest earning deposits	300,047		4,105		5.50	%	380,181		5,202		5.50	%
Federal funds sold	75,479		1,021		5.44	%	62,599		838		5.38	%
Total earning assets	7,881,919		106,870		5.45	%	7,882,337		105,494		5.38	%
Cash and due from banks	110,102						114,379
Accrued interest and other assets	424,323						441,783
Less: Allowance for loan losses	(43,738)						(42,973)
Total assets	$	8,372,606					$	8,395,526
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	604,753	1,454		0.97	%	$	604,529	1,424		0.95	%
Certificates of deposit	1,020,099		11,630		4.59	%	941,947		10,341		4.42	%
Interest bearing demand accounts	3,513,068		25,382		2.91	%	3,634,936		26,433		2.92	%
Total interest bearing deposits	5,137,920		38,466		3.01	%	5,181,412		38,198		2.97	%
Federal Home Loan Bank borrowings	606,851		6,455		4.28	%	607,033		5,950		3.94	%
Subordinated notes, net of unamortized debt issuance costs	92,017		936		4.09	%	93,895		956		4.10	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs	60,271		1,171		7.81	%	60,270		1,175		7.84	%
Repurchase agreements	88,007		955		4.36	%	92,177		967		4.22	%
Other borrowings	143,169		2,595		7.29	%	137,287		2,164		6.34	%
Total interest bearing liabilities	6,128,235		50,578		3.32	%	6,172,074		49,410		3.22	%
Noninterest bearing deposits	1,346,274						1,338,384
Accrued expenses and other liabilities	101,399						100,014
Total liabilities	7,575,908						7,610,472
Shareholders’ equity	796,698						785,054
Total liabilities and shareholders’ equity	$	8,372,606					$	8,395,526
Net interest income (FTE)			$	56,292					$	56,084
Net interest margin (FTE)					2.87	%					2.86	%
Net interest spread (FTE)					2.13	%					2.16	%

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

(2)For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.

Note: As of June 30, 2024 and March 31, 2024, loans totaling $6.1 million and $7.7 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.

Page-15

Southside Bancshares, Inc.

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

(Dollars in thousands)


	Three Months Ended
	December 31, 2023
	Average Balance		Interest		Average Yield/Rate
ASSETS
Loans (1)	$	4,473,618	$	67,886	6.02	%
Loans held for sale	1,858		27		5.77	%
Securities:
Taxable investment securities (2)	852,023		7,970		3.71	%
Tax-exempt investment securities (2)	1,456,187		15,688		4.27	%
Mortgage-backed and related securities (2)	581,548		6,865		4.68	%
Total securities	2,889,758		30,523		4.19	%
Federal Home Loan Bank stock, at cost, and equity investments	24,674		296		4.76	%
Interest earning deposits	150,763		2,054		5.41	%
Federal funds sold	93,149		1,286		5.48	%
Total earning assets	7,633,820		102,072		5.30	%
Cash and due from banks	110,380
Accrued interest and other assets	374,120
Less: Allowance for loan losses	(41,822)
Total assets	$	8,076,498
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	610,453	1,432		0.93	%
Certificates of deposit	910,759		9,691		4.22	%
Interest bearing demand accounts	3,469,120		24,498		2.80	%
Total interest bearing deposits	4,990,332		35,621		2.83	%
Federal Home Loan Bank borrowings	262,709		1,430		2.16	%
Subordinated notes, net of unamortized debt issuance costs	93,859		965		4.08	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs	60,269		1,195		7.87	%
Repurchase agreements	96,622		1,008		4.14	%
Other borrowings	294,683		4,235		5.70	%
Total interest bearing liabilities	5,798,474		44,454		3.04	%
Noninterest bearing deposits	1,424,961
Accrued expenses and other liabilities	115,388
Total liabilities	7,338,823
Shareholders’ equity	737,675
Total liabilities and shareholders’ equity	$	8,076,498
Net interest income (FTE)			$	57,618
Net interest margin (FTE)					2.99	%
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 is presented at historical cost.

Note: As of December 31, 2023, loans totaling $3.9 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.

Page-16

Southside Bancshares, Inc.

Average Balances and Average Yields and Rates (Unaudited)

(Dollars in thousands)


	Year ended
	December 31, 2024						December 31, 2023
	Average Balance		Interest		Average Yield/Rate		Average Balance		Interest		Average Yield/Rate
ASSETS
Loans (1)	$	4,593,280	$	281,790	6.13	%	$	4,300,138	$	247,431	5.75	%
Loans held for sale	3,179		76		2.39	%	1,681		96		5.71	%
Securities:
Taxable investment securities (2)	785,145		28,075		3.58	%	845,907		31,186		3.69	%
Tax-exempt investment securities (2)	1,212,844		48,547		4.00	%	1,554,519		64,568		4.15	%
Mortgage-backed and related securities (2)	878,623		45,222		5.15	%	470,692		19,450		4.13	%
Total securities	2,876,612		121,844		4.24	%	2,871,118		115,204		4.01	%
Federal Home Loan Bank stock, at cost, and equity investments	39,688		2,079		5.24	%	24,971		1,185		4.75	%
Interest earning deposits	308,628		16,265		5.27	%	83,343		4,364		5.24	%
Federal funds sold	53,709		2,855		5.32	%	79,948		4,124		5.16	%
Total earning assets	7,875,096		424,909		5.40	%	7,361,199		372,404		5.06	%
Cash and due from banks	106,965						107,018
Accrued interest and other assets	443,733						397,860
Less: Allowance for loan losses	(43,428)						(37,890)
Total assets	$	8,382,366					$	7,828,187
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	600,375	5,824		0.97	%	$	636,603	5,633		0.88	%
Certificates of deposit	1,059,793		48,155		4.54	%	862,211		30,906		3.58	%
Interest bearing demand accounts	3,503,878		99,678		2.84	%	3,122,319		71,618		2.29	%
Total interest bearing deposits	5,164,046		153,657		2.98	%	4,621,133		108,157		2.34	%
Federal Home Loan Bank borrowings	601,366		24,450		4.07	%	276,584		6,777		2.45	%
Subordinated notes, net of unamortized debt issuance costs	92,478		3,774		4.08	%	96,024		3,920		4.08	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs	60,272		4,621		7.67	%	60,267		4,504		7.47	%
Repurchase agreements	86,071		3,603		4.19	%	91,132		3,431		3.76	%
Other borrowings	119,672		8,104		6.77	%	345,544		17,925		5.19	%
Total interest bearing liabilities	6,123,905		198,209		3.24	%	5,490,684		144,714		2.64	%
Noninterest bearing deposits	1,353,065						1,485,896
Accrued expenses and other liabilities	102,778						97,509
Total liabilities	7,579,748						7,074,089
Shareholders’ equity	802,618						754,098
Total liabilities and shareholders’ equity	$	8,382,366					$	7,828,187
Net interest income (FTE)			$	226,700					$	227,690
Net interest margin (FTE)					2.88	%					3.09	%
Net interest spread (FTE)					2.16	%					2.42	%

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

(2)For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.

Note: As of December 31, 2024 and 2023, loans totaling $3.2 million and $3.9 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.

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


	Three Months Ended															Year ended
	2024												2023			2024			2023
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Dec 31,			Dec 31,
Reconciliation of return on average common equity to return on average tangible common equity:
Net income	$	21,786		$	20,524		$	24,673		$	21,511		$	17,316		$	88,494		$	86,692
After-tax amortization expense	196			220			243			266			292			925			1,341
Adjusted net income available to common shareholders	$	21,982		$	20,744		$	24,916		$	21,777		$	17,608		$	89,419		$	88,033

Average shareholders' equity	$	822,234		$	806,230		$	796,698		$	785,054		$	737,675		$	802,618		$	754,098
Less: Average intangibles for the period	(203,020)			(203,288)			(203,581)			(203,910)			(204,267)			(203,448)			(204,887)
Average tangible shareholders' equity	$	619,214		$	602,942		$	593,117		$	581,144		$	533,408		$	599,170		$	549,211

Return on average tangible common equity	14.12		%	13.69		%	16.90		%	15.07		%	13.10		%	14.92		%	16.03		%

Reconciliation of book value per share to tangible book value per share:
Common equity at end of period	$	811,942		$	805,254		$	800,970		$	787,922		$	773,288		$	811,942		$	773,288
Less: Intangible assets at end of period	(202,870)			(203,119)			(203,397)			(203,704)			(204,041)			(202,870)			(204,041)
Tangible common shareholders' equity at end of period	$	609,072		$	602,135		$	597,573		$	584,218		$	569,247		$	609,072		$	569,247

Total assets at end of period	$	8,517,448		$	8,362,263		$	8,357,702		$	8,353,863		$	8,284,914		$	8,517,448		$	8,284,914
Less: Intangible assets at end of period	(202,870)			(203,119)			(203,397)			(203,704)			(204,041)			(202,870)			(204,041)
Tangible assets at end of period	$	8,314,578		$	8,159,144		$	8,154,305		$	8,150,159		$	8,080,873		$	8,314,578		$	8,080,873

Period end tangible equity to period end tangible assets	7.33		%	7.38		%	7.33		%	7.17		%	7.04		%	7.33		%	7.04		%

Common shares outstanding end of period	30,379			30,308			30,261			30,284			30,249			30,379			30,249
Tangible book value per common share	$	20.05		$	19.87		$	19.75		$	19.29		$	18.82		$	20.05		$	18.82

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)	$	53,707		$	55,464		$	53,608		$	53,348		$	54,485		$	216,127		$	215,027
Tax-equivalent adjustments:
Loans	598			608			633			656			680			2,495			2,724
Tax-exempt investment securities	1,935			2,012			2,051			2,080			2,453			8,078			9,939
Net interest income (FTE) (1)	56,240			58,084			56,292			56,084			57,618			226,700			227,690
Noninterest income	12,281			8,171			11,557			9,724			2,501			41,733			35,834
Nonrecurring income (2)	(25)			2,797			(576)			18			8,376			2,214			7,370
Total revenue	$	68,496		$	69,052		$	67,273		$	65,826		$	68,495		$	270,647		$	270,894

Noninterest expense	$	38,159		$	36,332		$	35,765		$	36,881		$	35,183		$	147,137		$	140,578
Pre-tax amortization expense	(249)			(278)			(307)			(337)			(370)			(1,171)			(1,697)
Nonrecurring expense (3)	(919)			(219)			2			17			22			(1,119)			78
Adjusted noninterest expense	$	36,991		$	35,835		$	35,460		$	36,561		$	34,835		$	144,847		$	138,959

Efficiency ratio	56.08		%	53.94		%	54.90		%	57.95		%	53.30		%	55.69		%	53.81		%
Efficiency ratio (FTE) (1)	54.00		%	51.90		%	52.71		%	55.54		%	50.86		%	53.52		%	51.30		%

Average earning assets	$	7,913,371		$	7,823,026		$	7,881,919		$	7,882,337		$	7,633,820		$	7,875,096		$	7,361,199

Net interest margin	2.70		%	2.82		%	2.74		%	2.72		%	2.83		%	2.74		%	2.92		%
Net interest margin (FTE) (1)	2.83		%	2.95		%	2.87		%	2.86		%	2.99		%	2.88		%	3.09		%

Net interest spread	1.99		%	2.10		%	2.00		%	2.02		%	2.10		%	2.02		%	2.25		%
Net interest spread (FTE) (1)	2.12		%	2.23		%	2.13		%	2.16		%	2.26		%	2.16		%	2.42		%

(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, net gain on sale of equity securities, BOLI income related to death benefits realized and other investment income or loss in the periods where applicable.

(3)These adjustments may include foreclosure expenses and branch closure expenses, in the periods where applicable.

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