SBSI Southside Bancshares Inc

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 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.

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.

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.

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

Conference Call

Southside's management team will host a conference call to discuss its 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.

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.

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 debtissuance 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

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.

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.

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

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.

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.

	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

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

Southside Bancshares, Inc.Average Balances and Average Yields and Rates (Annualized) (Unaudited)(Dollars in thousands)
	Three Months Ended
	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.

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.

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.

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.

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

Southside Bancshares, Inc.Non-GAAP Reconciliation (Unaudited)(Dollars and shares in thousands, except per share data)
		Three Months Ended																				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.