$SBSI

SOUTHSIDE BANCSHARES INC

CIK:0000705432|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest income:
Loans	$ 71,888	$ 67,249	$ 142,876	$ 134,839
Taxable investment securities	4,686	6,205	9,335	12,568
Tax-exempt investment securities	6,143	8,483	12,299	16,964
MBS	18,462	13,040	36,370	26,563
FHLB stock and equity investments	215	524	464	1,007
Other interest earning assets	2,526	3,061	4,832	6,909
Total interest and dividend income	103,920	98,562	206,176	198,850
Interest expense:
Deposits	30,280	37,427	66,843	74,674
FHLB borrowings	8,248	3,721	9,223	9,558
Subordinated notes	2,686	935	6,263	1,867
Trust preferred subordinated debentures	922	1,015	1,837	2,029
Other borrowings	4,450	1,198	6,987	2,604
Total interest expense	46,586	44,296	91,153	90,732
Net interest income	57,334	54,266	115,023	108,118
Provision for (reversal of) credit losses	83	622	1,493	1,380
Net interest income after provision for credit losses	57,251	53,644	113,530	106,738
Noninterest income:
Deposit services	6,389	6,125	12,320	11,954
Net gain (loss) on sale of securities AFS	0	0	0	(554)
Gain (loss) on sale of loans	56	99	174	154
Trust fees	2,404	1,879	4,606	3,644
BOLI	1,475	833	2,461	1,632
Brokerage services	1,403	1,219	2,766	2,339
Other	2,277	1,990	4,273	3,199
Total noninterest income	14,004	12,145	26,600	22,368
Noninterest expense:
Salaries and employee benefits	22,973	22,272	47,305	44,654
Net occupancy	3,707	3,621	7,166	7,025
Advertising, travel & entertainment	876	950	1,919	1,874
ATM expense	325	405	755	783
Professional fees	1,662	1,401	3,147	2,921
Software and data processing	3,151	3,027	6,248	5,866
Communications	281	342	568	725
FDIC insurance	955	955	1,892	1,902
Amortization of intangibles	121	198	253	421
Loss on redemption of subordinated notes	0	0	791	0
Other	4,625	6,086	9,208	10,175
Total noninterest expense	38,676	39,257	79,252	76,346
Income before income tax expense	32,579	26,532	60,878	52,760
Income tax expense	5,742	4,719	10,782	9,440
Net income	$ 26,837	$ 21,813	$ 50,096	$ 43,320
Earnings per common share - basic (in dollars per share)	$ 0.90	$ 0.72	$ 1.68	$ 1.43
Earnings per common share - diluted (in dollars per share)	0.90	0.72	1.68	1.42
Cash dividends paid per common share (in dollars per share)	$ 0.36	$ 0.36	$ 0.72	$ 0.72

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
OPERATING ACTIVITIES:
Net income	$ 50,096	$ 43,320
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and net amortization	5,262	5,310
Securities premium amortization (discount accretion), net	5,852	3,562
Loan (discount accretion) premium amortization, net	301	389
Provision for (reversal of) credit losses	1,493	1,380
Stock compensation expense	2,658	1,600
Deferred tax expense (benefit)	(13)	(400)
Net (gain) loss on sale of AFS securities	0	554
Net loss on premises and equipment	61	1,293
Gross proceeds from sales of loans held for sale	6,891	8,332
Gross originations of loans held for sale	(5,900)	(6,814)
Net (gain) loss on OREO	(3)	136
Loss on redemption of subordinated notes	791	0
Net change in:
Interest receivable	(1,583)	1,178
Other assets	14,153	1,564
Interest payable	667	586
Other liabilities	555	(32,105)
Net cash provided by (used in) operating activities	81,281	29,885
Securities AFS:
Purchases	(338,418)	(256,059)
Sales	0	120,242
Maturities, calls and principal repayments	212,462	254,464
Securities HTM:
Maturities, calls and principal repayments	37,622	7,747
Proceeds from redemption of FHLB stock and equity investments	19,360	18,112
Purchases of FHLB stock and equity investments	(50,532)	(8,713)
Net loan paydowns (originations)	(132,514)	59,252
Purchases of premises and equipment	(8,771)	(10,366)
Proceeds from (purchases of) BOLI	1,217	1,143
Proceeds from sales of premises and equipment	(22)	(288)
Net proceeds from sales of OREO	133	0
Proceeds from sales of repossessed assets	29	68
Net cash provided by (used in) investing activities	(259,434)	185,602
FINANCING ACTIVITIES:
Net change in deposits	(695,764)	(22,321)
Net change in other borrowings	211,130	23,398
Proceeds from FHLB borrowings	4,323,000	2,716,000
Repayment of FHLB borrowings	(3,538,288)	(2,936,383)
Redemption of subordinated notes	(93,000)	0
Proceeds from stock option exercises	71	703
Cash paid to tax authority related to tax withholding on share-based awards	(570)	(558)
Purchase of common stock	0	(11,076)
Proceeds from the issuance of common stock for dividend reinvestment plan	466	514
Cash dividends paid	(21,422)	(21,830)
Net cash provided by (used in) financing activities	185,623	(251,553)
Net increase (decrease) in cash and cash equivalents	7,470	(36,066)
Cash and cash equivalents at beginning of period	389,786	426,161
Cash and cash equivalents at end of period	397,256	390,095
SUPPLEMENTAL DISCLOSURES FOR CASH FLOW INFORMATION:
Interest paid	90,486	90,146
Income taxes paid	8,500	8,750
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Loans transferred to other repossessed assets and real estate through foreclosure	30	202
Unsettled trades to purchase securities	0	50,514
Unsettled trades to repurchase common stock	$ 0	$ 747

CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)
$ in Thousands

Jun. 30, 2026

Dec. 31, 2025

ASSETS

Cash and due from banks

$ 74,731

$ 81,080

Interest earning deposits

301,916

302,906

Federal funds sold

20,609

5,800

Total cash and cash equivalents

397,256

389,786

Securities AFS, at estimated fair value (amortized cost of $1,579,607 and $1,456,986, respectively)

1,569,836

1,456,219

Securities HTM (estimated fair value of $1,075,537 and $1,103,304, respectively)

1,211,900

1,247,477

FHLB stock, at cost

45,277

14,062

Equity investments

9,531

9,574

Loans held for sale

341

1,332

Loans:

Loans

4,949,567

4,817,991

Less: Allowance for loan losses

(45,595)

(45,100)

Net loans

4,903,972

4,772,891

Premises and equipment, net

156,885

152,293

Operating lease ROU assets

12,193

12,398

Goodwill

201,116

Other intangible assets, net

759

1,012

Interest receivable

43,392

41,809

Deferred tax asset, net

26,129

27,059

BOLI

146,263

145,125

Other assets

38,864

42,437

Total assets

8,763,714

8,514,590

Deposits:

Noninterest bearing

1,406,487

1,433,129

Interest bearing

4,762,908

5,432,030

Total deposits

6,169,395

6,865,159

Other borrowings

419,787

208,657

FHLB borrowings

995,848

211,136

Subordinated notes, net of unamortized debt issuance costs

^[1]

147,587

239,678

Trust preferred subordinated debentures, net of unamortized debt issuance costs

60,282

60,279

Unsettled trades to purchase securities

Operating lease liabilities

14,131

14,335

Other liabilities

74,220

67,731

Total liabilities

7,881,250

7,666,975

Off-balance-sheet arrangements, commitments and contingencies (Note 12)

Shareholders’ equity:

Preferred stock: (no par value, 8,000,000 shares authorized, none issued or outstanding)

Common stock: ($1.25 par value, 80,000,000 shares authorized, 38,124,707 shares issued at June 30, 2026 and 38,110,078 shares issued at December 31, 2025)

47,656

47,638

Paid-in capital

797,342

795,759

Retained earnings

380,761

352,193

Treasury stock: (shares at cost, 8,321,665 at June 30, 2026 and 8,387,077 at December 31, 2025)

(251,228)

(252,358)

AOCI

(92,067)

(95,617)

Total shareholders’ equity

882,464

847,615

Total liabilities and shareholders’ equity

$ 8,763,714

$ 8,514,590

[1]	This debt consists of subordinated notes with a remaining maturity greater than one year that qualify under the risk-based capital guidelines as Tier 2 capital, subject to certain limitations.