2026 Annual Meeting of Shareholders Presentation (05/14/2026 00: 00

Published: 2026-05-14 12:00:10 ET SBSI

Published on 05/14/2026 at 12:00 pm EDT

MEETING OF

ANNUAL

SHAREHOLDERS

BAXCSMARES,IYC.

SOUTHSIDE

A Year in Review

Celebrated 65 Years of Southside

"Best Banks to Work For" for fourth consecutive year

Dual Listing on NYSE Texas

Continued strong asset quality metrics

Successfully issued $150 million in new subordinated debt

Ended 2025 with strong financial position, including a strategic restructuring of the securities portfolio

Expanded Texas presence with full service branches in The Woodlands and Bellwood Park in Tyler

4.00%

3.9

3.6

3.7

4.0

4.2

4.1

4.4

4.2

4.3

4.4

4.3

US Treasury Yield Curve

4.75%

4.50%

4.25%

4.00%

3.75%

3.50%

1 Month 3 Month 2 Year 5 Year 7 Year 10 Year

$100,000 invested in SBSI on 12/31/2015 was worth $201,540 on 12/31/2025

300

250

200

150

100

12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 12/31/25

Strategic Initiatives

Succession Planning & Team Development

Culture Development

Revenue Growth

Brand Recognition

Expense Control

2026 Goals

Maintain asset quality

Continue focus on consistent customer experience across all markets and delivery channels

Increase net-interest income through organic loan & non-maturity deposit growth

Increase non-interest income through metro market expansion of wealth management services

Identify potential acquisition targets

Further enhance digital/technology strategies specifically related to operational efficiencies

Loan Pipeline

Strong first quarter loan growth, 10.8% annualized

Loan pipeline of $1.3 billion

45% term loans and 55% construction loans

C&I Expansion Progress, 24% of pipeline

Expecting mid-single digit loan growth for 2026

2025 Financial Highlights

Net income of $69.2 million, a $19.3 million decrease

Earnings per diluted share of $2.29, a 21.3% decrease

Net interest income of $221.1 million, a 2.3% increase

Net interest margin(1) increase to 2.93% from 2.88%

Strong capital and liquidity levels

Cash dividend of $1.44 per share

(1) Calculated on a fully taxable-equivalent basis (FTE.) See Non-GAAP Reconciliation.

March 31, 2026

March 31, 2025

%Chg.

Net Income (in thousands)

$ 23,259

$ 21,507

8.2%

EPS (diluted)

$ 0.78

$ 0.71

9.9%

ROAE

10.96 %

10.57 %

ROAA

1.10 %

1.03 %

Efficiency Ratio (FTE) (1)

54.98 %

55.04 %

(1) Calculated on a fully taxable-equivalent basis (FTE.) See Non-GAAP Reconciliation.

Profitability

Net Income ($mm) Net Interest Income ($mm)

$100.0

$50.0

$88.5

$69.2

$21.5 $23.3

$250.0

$200.0

$150.0

$100.0

$50.0

$0.0

$216.1 $221.1

$53.9 $57.7

2024 2025 Q1 2025 Q1 2026

ROAA ROATCE(1) Efficiency Ratio (FTE)(1)

1.06%

1.10%

53.5%

55.0%

14.92%

14.39%

11.22%

0.83%

2024 2025 Q1 2026

(1) Calculated on a fully taxable-equivalent basis (FTE.) See Non-GAAP Reconciliation.

Earning Assets

Balance Sheet Mix

(Dollars in billions)

59.4% 36.4%

87.4%

Funding

9.6%

Earning Assets

61.4% 34.7%

90.5%

Funding

2.8%

$10.00

1.5%

60.7%

Earning Assets

35.5%

88.7%

Funding

4.1%

3.4%

$8.52 $8.51 $8.80

$7.50

$6.65

$6.87

$5.00

$4.66

$4.82

$4.95

$2.50

$2.86

$2.73

$2.89

$0.73

$0.21 $0.11

$0.32 $0.27

12/31/2024 12/31/2025 3/31/2026

5.23%

5.25%

5.27%

5.24%

5.26%

2.86%

2.95%

2.94%

2.98%

3.01%

Quarterly Yield & Cost Trends

6.00%

5.00%

4.00%

3.00%

2.50%

2.43%

2.46%

2.38%

2.36%

3/31/2025

6/30/2025

9/30/2025

12/31/2025

03/31/2026

2.00%

Average Yield on Earning Assets

(1) Calculated on a fully taxable-equivalent basis (FTE), a non-GAAP measure. See non-GAAP reconciliation.

Loan Balances

Loans 3/31/2026

$5,000

$4,000

$3,000

$2,000

8.00%

7.50%

7.00%

6.50%

Loans to Individuals, 1%

Loan Portfolio

Commercial Loans, 9%

Municipal Loans, 7%

1-4 Family Residential, 14%

Construction

, 13%

Commercial RE, 56%

$1,000

Q1'25 Q2'25 Q3'25 Q4'25 Q1'26

6.00%

5.50%

Loan Type $mm %

Real Estate Loans (RE):

Construction

$ 642

13 %

1-4 Family Residential

717

14 %

Commercial RE

2,753

56 %

Commercial Loans

457

9 %

Municipal Loans

337

7 %

Loans to Individuals

1 %

Total

$ 4,946

100 %

Municipal Loans

Average Yield

NPAs / Loans and OREO(1)(2)

ALLL / NPLs(1)

0.79%

0.26%

0.09%

0.20%

0.08%

Asset Quality Trends

2022 2023 2024 2025 Q1 2026

1,408.4%

1,093.6%

479.1%

341.4%

118.7%

2022 2023 2024 2025 Q1 2026

Pursuant to our adoption of ASU 2022-02, effective January 1, 2023, we prospectively discontinued the recognition and measurement guidance previously required on troubled debt restructures. As a result, non-performing loans (NPLs) beginning March 31, 2023 exclude any loan modifications that are performing but would have previously required disclosure as troubled debt restructures.

Nonperforming assets increased during 2025 primarily due to an increase of $27.5 million in restructured loans due to an extension of maturity on a CRE loan to allow for an extended lease up period. The CRE loan paid off in the first quarter of 2026.

Securities Portfolio

Total Securities Securities 3/31/2026

$3,000

$2,000

5.00%

4.50%

4.00%

Residential, 53%

Commercial, -%

State & Political subdivisions

, 43%

$1,000

Q1'25 Q2'25 Q3'25 Q4'25 Q1'26

3.50%

3.00%

2.50%

2.00%

Corporate Bonds

& Other, 4%

State & Political

subdivisions

$ 1,044

$ 173

$ 1,217

43 %

Corporate Bonds & Other

111

4 %

Residential

1,454

1,529

53 %

Commercial

Securities ($mm) HTM(1) AFS Total %

Total $ 1,221 $ 1,647 $ 2,868 100 %

Deposit Composition

Deposit Balances and Rates Deposit Mix 3/31/2026

$6,000

$4,000

3.50%

3.00%

2.50%

2.00%

1.50%

Jumbo Time, 17%

Retail Time, 2%

Savings, 10%

Noninterest Bearing, 20%

Interest Bearing Demand, 51%

$2,000

Q1'25 Q2'25 Q3'25 Q4'25 Q1'26

Interest Bearing Demand

Savings Retail Time

1.00%

0.50%

Deposits $ MM %

Interest Bearing Demand

$ 3,490

51 %

Noninterest Bearing

1,374

20 %

Savings

701

10 %

Retail Time

154

2 %

Jumbo Time

1,155

17 %

Total $ 6,874 100 %

Jumbo Time Cost of Interest Bearing Deposits Cost of Total Deposits

Liquidity & Funding

As of March 31, 2026

(in thousands)

Line of Credit

Borrowings

Total Available

for Future Liquidity

Swapped

FHLB advances

$ 2,534,622

$ 315,943

$ 2,218,679

$ -

Federal Reserve discount window

649,350

265,000

384,350

230,000

Correspondent bank lines of credit

80,000

Total liquidity lines

$ 3,263,972

$ 580,943

$ 2,683,029

$ 230,000

Liquidity sources remain strong, with $2.68 billion in liquidity lines available as of March 31, 2026.

20.00%

Consolidated

Capital Ratios

18.54%

16.49%

16.95%

14.07% 13.88% 13.66%

13.04% 12.87% 12.68%

9.67% 9.72% 9.74%

15.00%

10.00%

5.00%

Leverage Ratio Tier 1 Capital Total Capital Common Equity Tier 1

Well Capitalized

Capital Adequacy

Diluted Earnings Per Common Share ($)

Cash Dividend Per Common Share ($)

Shareholder Returns

$3.26

$2.82

$2.91

$2.29

$0.71

$0.78

$1.40 $1.42 $1.44 $1.44

$0.72

2022 2023 2024 2025 Q1 2025 Q1 2026

2022 2023 2024 2025 YTD Q2

2026

Disclaimer

Southside Bancshares Inc. published this content on May 14, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 14, 2026 at 15:59 UTC.