SBSI Southside Bancshares Inc

Southside Bancshares, Inc. (“Southside” or the “Company”) (NASDAQ: SBSI) today reported its financial results for the quarter ended June 30, 2024. Southside reported net income of $24.7 million for the three months ended June 30, 2024, a decrease of $0.2 million, or 0.9%, compared to $24.9 million for the same period in 2023. Earnings per diluted common share remained the same at $0.81 for both of the three-month periods ended June 30, 2024 and 2023. The annualized return on average shareholders’ equity for the three months ended June 30, 2024, was 12.46%, compared to 13.32% for the same period in 2023.  The annualized return on average assets was 1.19% for the three months ended June 30, 2024, compared to 1.29% for the same period in 2023.

“We reported excellent financial results for the second quarter highlighted by earnings per share of $0.81, a return on assets of 1.19%, a 16.90% return on average tangible equity(1), and continued strong asset quality,” stated Lee R. Gibson, Chief Executive Officer of Southside. “Linked quarter net interest income increased $260,000 and the net interest margin(1) increased one basis point to 2.87%. Noninterest expense, linked quarter decreased $1.1 million due to a $1.1 million decrease in salaries and employee benefits, $618,000 of which was due to a first quarter cost reduction initiative.”

Operating Results for the Three Months Ended June 30, 2024

Net income was $24.7 million for the three months ended June 30, 2024, compared to $24.9 million for the same period in 2023, a decrease of $0.2 million, or 0.9%. Earnings per diluted common share were $0.81 for both of the three-month periods ended June 30, 2024 and 2023. The decrease in net income was a result of increases in noninterest expense and income tax expense and the decrease in net interest income, partially offset by the increase in noninterest income and the decrease in provision for credit losses. Annualized returns on average assets and average shareholders’ equity for the three months ended June 30, 2024 were 1.19% and 12.46%, respectively, compared to 1.29% and 13.32%, respectively, for the three months ended June 30, 2023.  Our efficiency ratio and tax-equivalent efficiency ratio(1) were 54.90% and 52.71%, respectively, for the three months ended June 30, 2024, compared to 53.54% and 51.06%, respectively, for the three months ended June 30, 2023, and 57.95% and 55.54%, respectively, for the three months ended March 31, 2024.

Net interest income for the three months ended June 30, 2024 was $53.6 million, a decrease of $0.3 million, or 0.6%, from the same period in 2023. The decrease in net interest income was largely due to increases in the average rate paid on our interest bearing liabilities and average balance of our interest bearing liabilities, partially offset by the increase in the average balance of interest earning assets and the increase in the average yield of interest earning assets. Linked quarter, net interest income increased $0.3 million, or 0.5%, compared to $53.3 million during the three months ended March 31, 2024, largely due to the increase in the average yield on our interest earning assets and the decrease in the average balance of interest bearing liabilities, partially offset by the average rate paid on our interest bearing liabilities.

Our net interest margin and tax-equivalent net interest margin(1) decreased to 2.74% and 2.87%, respectively, for the three months ended June 30, 2024, compared to 2.99% and 3.17%, respectively, for the same period in 2023. Linked quarter, net interest margin and tax-equivalent net interest margin(1) increased from 2.72% and 2.86%, respectively for the three months ended March 31, 2024.

Noninterest income was $11.6 million for the three months ended June 30, 2024, an increase of $1.1 million, or 10.4%, compared to $10.5 million for the same period in 2023. The increase was primarily due to a decrease in net loss on sale of securities available for sale (“AFS”) and an increase in bank owned life insurance (“BOLI”) income due to a death benefit realized in 2024, partially offset by a $2.6 million net gain on sale of equity securities during the three months ended June 30, 2023. On a linked quarter basis, noninterest income increased $1.8 million, or 18.9%, compared to the three months ended March 31, 2024. The increase was primarily due to an increase in BOLI income related to a $1.0 million death benefit realized in the second quarter of 2024, and increases in gain on sale of loans and other noninterest income, partially offset by an increase in net loss on sale of securities AFS for the three months ended June 30, 2024.

Noninterest expense increased $0.8 million, or 2.2%, to $35.8 million for the three months ended June 30, 2024, compared to $35.0 million for the same period in 2023, due to increases in salaries and employee benefits and software and data processing expense, partially offset by decreases in FDIC insurance, amortization of intangibles and professional fees. On a linked quarter basis, noninterest expense decreased by $1.1 million, or 3.0%, compared to the three months ended March 31, 2024, due to a decrease in salaries and employee benefits expense.

Income tax expense increased $0.6 million, or 14.1%, for the three months ended June 30, 2024, compared to the same period in 2023. On a linked quarter basis, income tax expense increased $0.6 million, or 12.8%. Our effective tax rate (“ETR”) increased to 17.4% for the three months ended June 30, 2024, compared to 15.5% for the three months ended June 30, 2023, and decreased slightly from 17.7% for the three months ended March 31, 2024. The higher ETR for the three months ended June 30, 2024 compared to the same period in 2023, was primarily due to a decrease in tax-exempt income as a percentage of pre-tax income.

Operating Results for the Six Months Ended June 30, 2024

Net income was $46.2 million for the six months ended June 30, 2024, compared to $50.9 million for the same period in 2023, a decrease of $4.7 million, or 9.3%. Earnings per diluted common share were $1.52 for the six months ended June 30, 2024, compared to $1.64 for the same period in 2023, a decrease of 7.3%. The decrease in net income was primarily a result of the increase in noninterest expense, the decrease in noninterest income and the increase in income tax expense. Returns on average assets and average shareholders’ equity for the six months ended June 30, 2024 were 1.11% and 11.74%, respectively, compared to 1.34% and 13.62%, respectively, for the six months ended June 30, 2023.  Our efficiency ratio and tax-equivalent efficiency ratio(1) were 56.41% and 54.11%, respectively, for the six months ended June 30, 2024, compared to 53.55% and 51.02%, respectively, for the six months ended June 30, 2023.

Net interest income was $107.0 million for the six months ended June 30, 2024, compared to $107.3 million for the same period in 2023, a decrease of $0.3 million, or 0.3%, due to increases in the average rate paid on our interest bearing liabilities and average balance of our interest bearing liabilities, partially offset by the increase in the average balance of interest earning assets and the increase in the average yield of interest earning assets.

Our net interest margin and tax-equivalent net interest margin(1) were 2.73% and 2.87%, respectively, for the six months ended June 30, 2024, compared to 3.01% and 3.19%, respectively, for the same period in 2023.

Noninterest income was $21.3 million for the six months ended June 30, 2024, a decrease of $1.2 million, or 5.4%, compared to $22.5 million for the same period in 2023. The decrease was primarily due to decreases in the net gain on sale of equity securities, deposit services income and other noninterest income, partially offset by a decrease in net loss on sale of securities AFS.

Noninterest expense was $72.6 million for the six months ended June 30, 2024, compared to $69.8 million for the same period in 2023, an increase of $2.8 million, or 4.0%. The increase was primarily due to increases in salaries and employee benefits and software and data processing expense, partially offset by decreases in professional fees and net occupancy expense.

Income tax expense increased $0.7 million, or 7.9%, for the six months ended June 30, 2024, compared to the same period in 2023. Our ETR was approximately 17.6% and 15.2% for the six months ended June 30, 2024 and 2023, respectively. The higher ETR for the six months ended June 30, 2024, as compared to the same period in 2023, was primarily due to a decrease in tax-exempt income as a percentage of pre-tax income.

Balance Sheet Data

At June 30, 2024, Southside had $8.36 billion in total assets, compared to $8.28 billion at December 31, 2023 and $7.81 billion at June 30, 2023.

Loans at June 30, 2024 were $4.59 billion, an increase of $260.3 million, or 6.0%, compared to $4.33 billion at June 30, 2023. Linked quarter, loans increased $12.0 million, or 0.3%, due to increases of $59.4 million in commercial real estate loans, $17.5 million in 1-4 family residential loans and $1.8 million in commercial loans. These increases were partially offset by decreases of $53.4 million in construction loans, $10.2 million in municipal loans and $3.0 million in loans to individuals.

Securities at June 30, 2024 were $2.71 billion, an increase of $63.6 million, or 2.4%, compared to $2.65 billion at June 30, 2023. Linked quarter, securities remained the same at $2.71 billion at March 31, 2024.

Deposits at June 30, 2024 were $6.50 billion, an increase of $378.2 million, or 6.2%, compared to $6.12 billion at June 30, 2023, primarily due to an increase in public fund deposits of $306.8 million, or 38.3%. Linked quarter, deposits decreased $49.8 million, or 0.8%, from $6.55 billion at March 31, 2024.

At June 30, 2024, we had 179,536 total deposit accounts with an average balance of $32,000. Our estimated uninsured deposits were 36.4% as of June 30, 2024. When excluding affiliate deposits (Southside-owned deposits) and public fund deposits (all collateralized), our total estimated deposits without insurance or collateral was 19.4% as of June 30, 2024. Our noninterest bearing deposits represent approximately 21.0% of total deposits. Linked quarter, our cost of interest bearing deposits increased 4 basis points from 2.97% in the prior quarter to 3.01%. Linked quarter, our cost of total deposits increased 3 basis points from 2.36% in the prior quarter to 2.39%.

Our cost of interest bearing deposits increased 107 basis points, from 1.92% for the six months ended June 30, 2023, to 2.99% for the six months ended June 30, 2024. Our cost of total deposits increased 95 basis points, from 1.42% for the six months ended June 30, 2023, to 2.37% for the six months ended June 30, 2024.

Capital Resources and Liquidity

Our capital ratios and contingent liquidity sources remain solid. During the second quarter ended June 30, 2024, we purchased 57,966 shares of the Company’s common stock at an average price of $26.22 authorized 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 June 30, 2024.

As of June 30, 2024, our total available contingent liquidity, net of current outstanding borrowings, was $2.24 billion, consisting of FHLB advances, Federal Reserve Discount Window and correspondent bank lines of credit.

Asset Quality

Nonperforming assets at June 30, 2024 were $6.9 million, or 0.08% of total assets, an increase of $3.9 million, or 126.2%, compared to $3.1 million, or 0.04% of total assets, at June 30, 2023. Linked quarter, nonperforming assets decreased $1.1 million, from $8.0 million at March 31, 2024 due primarily to a decrease of $1.6 million, or 20.7%, in nonaccrual loans, partially offset by an increase in other real estate owned of $0.5 million, or 444.5%.

The allowance for loan losses totaled $42.4 million, or 0.92% of total loans, at June 30, 2024, compared to $43.6 million, or 0.95% of total loans, at March 31, 2024. The allowance for loan losses was $36.3 million, or 0.84% of total loans, at June 30, 2023.

For the three months ended June 30, 2024, we recorded a reversal of provision for credit losses for loans of $0.9 million, compared to provisions of $0.3 million and $1.2 million for the three months ended June 30, 2023 and March 31, 2024, respectively. Net charge-offs were $0.3 million for the three months ended June 30, 2024, June 30, 2023 and March 31, 2024. Net charge-offs were $0.6 million for the six months ended June 30, 2024 and 2023.

We recorded a provision for credit losses on off-balance-sheet credit exposures of $0.4 million for the three months ended June 30, 2024, compared to a reversal of provision for credit losses on off-balance-sheet credit exposures of $0.4 million and $1.1 million for the three months ended June 30, 2023 and March 31, 2024, respectively. We recorded a reversal of provision for credit losses for off-balance-sheet credit exposures of $0.7 million and $0.5 million for the six months ended June 30, 2024 and 2023, respectively. The balance of the allowance for off-balance-sheet credit exposures was $3.2 million at June 30, 2024 and 2023, and is included in other liabilities.

Dividend

Southside Bancshares, Inc. declared a second quarter cash dividend of $0.36 per share on May 9, 2024, which was paid on June 6, 2024, to all shareholders of record as of May 23, 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 second quarter ended June 30, 2024 financial results on Thursday, July 25, 2024 at 11:00 a.m. CDT.  The conference call can be accessed by webcast, for listen-only mode, on the company website, https://investors.southside.com, under Events.

Those interested in participating in the question and answer session, or others who prefer to call-in, can register at https://register.vevent.com/register/BI75b7c880842b4a5586bfc4c325374418 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 this measure to be 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 $8.36 billion in assets as of June 30, 2024, that owns 100% of Southside Bank.  Southside Bank currently has 54 branches in Texas and operates a network of 73 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 Julie Shamburger at (903) 531-7134, or julie.shamburger@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, discussions of the effect of our expansion, 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, prolonged elevated interest rates and general economic and recessionary 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
	Jun 30,				Mar 31,				Dec 31,				Sep 30,				Jun 30,
ASSETS
Cash and due from banks	$	114,283			$	96,744			$	122,021			$	105,601			$	114,707
Interest earning deposits		272,469				307,257				391,719				106,094				14,059
Federal funds sold		65,244				65,372				46,770				114,128				78,347
Securities available for sale, at estimated fair value		1,405,944				1,405,221				1,296,294				1,335,560				1,339,821
Securities held to maturity, at net carrying value		1,305,975				1,306,898				1,307,053				1,307,886				1,308,472
Total securities		2,711,919				2,712,119				2,603,347				2,643,446				2,648,293
Federal Home Loan Bank stock, at cost		32,991				27,958				11,936				12,778				10,801
Loans held for sale		1,352				756				10,894				1,382				1,666
Loans		4,589,365				4,577,368				4,524,510				4,420,633				4,329,043
Less: Allowance for loan losses		(42,407	)			(43,557	)			(42,674	)			(41,760	)			(36,303	)
Net loans		4,546,958				4,533,811				4,481,836				4,378,873				4,292,740
Premises & equipment, net		138,489				139,491				138,950				139,473				139,801
Goodwill		201,116				201,116				201,116				201,116				201,116
Other intangible assets, net		2,281				2,588				2,925				3,295				3,702
Bank owned life insurance		136,903				136,604				136,330				135,737				134,951
Other assets		133,697				130,047				137,070				130,545				167,069
Total assets	$	8,357,702			$	8,353,863			$	8,284,914			$	7,972,468			$	7,807,252
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest bearing deposits	$	1,366,924			$	1,358,827			$	1,390,407			$	1,431,285			$	1,466,756
Interest bearing deposits		5,129,008				5,186,933				5,159,274				4,918,286				4,650,931
Total deposits		6,495,932				6,545,760				6,549,681				6,349,571				6,117,687
Other borrowings and Federal Home Loan Bank borrowings		763,700				770,151				722,468				608,038				683,348
Subordinated notes, net of unamortized debtissuance costs		91,970				93,913				93,877				93,838				93,796
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,272				60,271				60,270				60,269				60,267
Other liabilities		144,858				95,846				85,330				132,157				86,993
Total liabilities		7,556,732				7,565,941				7,511,626				7,243,873				7,042,091
Shareholders' equity		800,970				787,922				773,288				728,595				765,161
Total liabilities and shareholders' equity	$	8,357,702			$	8,353,863			$	8,284,914			$	7,972,468			$	7,807,252

Southside Bancshares, Inc.Consolidated Financial Highlights (Unaudited)(Dollars and shares in thousands, except per share data)
	Three Months Ended
	2024								2023
	Jun 30,				Mar 31,				Dec 31,				Sep 30,				Jun 30,
Income Statement:
Total interest income	$	104,186			$	102,758			$	98,939			$	93,078			$	86,876
Total interest expense		50,578				49,410				44,454				39,805				32,960
Net interest income		53,608				53,348				54,485				53,273				53,916
Provision for (reversal of) credit losses		(485	)			58				2,281				6,987				(74	)
Net interest income after provision for (reversal of) credit losses		54,093				53,290				52,204				46,286				53,990
Noninterest income
Deposit services		6,157				5,985				6,305				6,479				6,291
Net gain (loss) on sale of securities available for sale		(563	)			(18	)			(10,386	)			11				(3,455	)
Net gain on sale of equity securities		—				—				—				—				2,642
Gain (loss) on sale of loans		220				(436	)			178				96				185
Trust fees		1,456				1,336				1,431				1,522				1,490
Bank owned life insurance		1,767				784				2,602				790				756
Brokerage services		1,081				1,014				944				760				904
Other		1,439				1,059				1,427				1,178				1,651
Total noninterest income		11,557				9,724				2,501				10,836				10,464
Noninterest expense
Salaries and employee benefits		21,984				23,113				21,152				21,241				21,376
Net occupancy		3,750				3,362				3,474				3,796				3,690
Advertising, travel & entertainment		795				950				1,127				1,062				854
ATM expense		368				325				318				358				320
Professional fees		1,075				1,154				1,315				1,472				1,192
Software and data processing		2,860				2,856				2,644				2,432				2,264
Communications		410				449				435				359				348
FDIC insurance		977				943				892				902				1,220
Amortization of intangibles		307				337				370				407				442
Other		3,239				3,392				3,456				3,524				3,287
Total noninterest expense		35,765				36,881				35,183				35,553				34,993
Income before income tax expense		29,885				26,133				19,522				21,569				29,461
Income tax expense		5,212				4,622				2,206				3,120				4,568
Net income	$	24,673			$	21,511			$	17,316			$	18,449			$	24,893
Common Share Data:
Weighted-average basic shares outstanding		30,280				30,262				30,235				30,502				30,721
Weighted-average diluted shares outstanding		30,312				30,305				30,276				30,543				30,754
Common shares outstanding end of period		30,261				30,284				30,249				30,338				30,532
Earnings per common share
Basic	$	0.81			$	0.71			$	0.57			$	0.60			$	0.81
Diluted		0.81				0.71				0.57				0.60				0.81
Book value per common share		26.47				26.02				25.56				24.02				25.06
Tangible book value per common share		19.75				19.29				18.82				17.28				18.35
Cash dividends paid per common share		0.36				0.36				0.37				0.35				0.35
Selected Performance Ratios:
Return on average assets		1.19	%			1.03	%			0.85	%			0.93	%			1.29	%
Return on average shareholders’ equity		12.46				11.02				9.31				9.50				13.32
Return on average tangible common equity (1)		16.90				15.07				13.10				13.17				18.59
Average yield on earning assets (FTE) (1)		5.45				5.38				5.30				5.15				5.00
Average rate on interest bearing liabilities		3.32				3.22				3.04				2.84				2.45
Net interest margin (FTE) (1)		2.87				2.86				2.99				3.02				3.17
Net interest spread (FTE) (1)		2.13				2.16				2.26				2.31				2.55
Average earning assets to average interest bearing liabilities		128.62				127.71				131.65				133.24				134.12
Noninterest expense to average total assets		1.72				1.77				1.73				1.79				1.82
Efficiency ratio (FTE) (1)		52.71				55.54				50.86				52.29				51.06

(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
	Jun 30,				Mar 31,				Dec 31,				Sep 30,				Jun 30,
Nonperforming Assets:	$	6,918			$	7,979			$	4,001			$	4,381			$	3,059
Nonaccrual loans		6,110				7,709				3,889				4,316				3,017
Accruing loans past due more than 90 days		—				—				—				—				—
Restructured loans		145				151				13				15				—
Other real estate owned		648				119				99				50				—
Repossessed assets		15				—				—				—				42
Asset Quality Ratios:
Ratio of nonaccruing loans to:
Total loans		0.13	%			0.17	%			0.09	%			0.10	%			0.07	%
Ratio of nonperforming assets to:
Total assets		0.08				0.10				0.05				0.05				0.04
Total loans		0.15				0.17				0.09				0.10				0.07
Total loans and OREO		0.15				0.17				0.09				0.10				0.07
Ratio of allowance for loan losses to:
Nonaccruing loans		694.06				565.01				1,097.30				967.56				1,203.28
Nonperforming assets		613.00				545.90				1,066.58				953.21				1,186.76
Total loans		0.92				0.95				0.94				0.94				0.84
Net charge-offs (recoveries) to average loans outstanding		0.02				0.03				0.11				0.08				0.03
Capital Ratios:
Shareholders’ equity to total assets		9.58				9.43				9.33				9.14				9.80
Common equity tier 1 capital		12.72				12.43				12.28				12.27				12.32
Tier 1 risk-based capital		13.76				13.47				13.32				13.31				13.37
Total risk-based capital		16.16				15.92				15.73				15.71				15.68
Tier 1 leverage capital		9.40				9.22				9.39				9.61				9.69
Period end tangible equity to period end tangible assets (1)		7.33				7.17				7.04				6.75				7.37
Average shareholders’ equity to average total assets		9.52				9.35				9.13				9.76				9.72

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

Southside Bancshares, Inc.Consolidated Financial Highlights (Unaudited)(Dollars in thousands)
	Three Months Ended
	2024								2023
Loan Portfolio Composition	Jun 30,				Mar 31,				Dec 31,				Sep 30,				Jun 30,
Real Estate Loans:
Construction	$	546,040			$	599,464			$	789,744			$	720,515			$	657,354
1-4 Family Residential		738,037				720,508				696,738				689,492				684,878
Commercial		2,472,771				2,413,345				2,168,451				2,117,306				2,100,338
Commercial Loans		359,807				358,053				366,893				385,816				383,724
Municipal Loans		416,986				427,225				441,168				441,512				435,211
Loans to Individuals		55,724				58,773				61,516				65,992				67,538
Total Loans	$	4,589,365			$	4,577,368			$	4,524,510			$	4,420,633			$	4,329,043
Summary of Changes in Allowances:
Allowance for Loan Losses
Balance at beginning of period	$	43,557			$	42,674			$	41,760			$	36,303			$	36,332
Loans charged-off		(721	)			(634	)			(1,572	)			(1,262	)			(737	)
Recoveries of loans charged-off		444				347				284				378				430
Net loans (charged-off) recovered		(277	)			(287	)			(1,288	)			(884	)			(307	)
Provision for (reversal of) loan losses		(873	)			1,170				2,202				6,341				278
Balance at end of period	$	42,407			$	43,557			$	42,674			$	41,760			$	36,303
Allowance for Off-Balance-Sheet Credit Exposures
Balance at beginning of period	$	2,820			$	3,932			$	3,853			$	3,207			$	3,559
Provision for (reversal of) off-balance-sheet credit exposures		388				(1,112	)			79				646				(352	)
Balance at end of period	$	3,208			$	2,820			$	3,932			$	3,853			$	3,207
Total Allowance for Credit Losses	$	45,615			$	46,377			$	46,606			$	45,613			$	39,510

Southside Bancshares, Inc.Consolidated Financial Highlights (Unaudited)(Dollars in thousands)
	Six Months Ended
	June 30,
	2024				2023
Income Statement:
Total interest income	$	206,944			$	167,724
Total interest expense		99,988				60,455
Net interest income		106,956				107,269
Provision for (reversal of) credit losses		(427	)			(114	)
Net interest income after provision for (reversal of) credit losses		107,383				107,383
Noninterest income
Deposit services		12,142				12,713
Net gain (loss) on sale of securities available for sale		(581	)			(5,601	)
Net gain on sale of equity securities		—				5,058
Gain (loss) on sale of loans		(216	)			289
Trust fees		2,792				2,957
Bank owned life insurance		2,551				2,431
Brokerage services		2,095				1,601
Other		2,498				3,049
Total noninterest income		21,281				22,497
Noninterest expense
Salaries and employee benefits		45,097				43,232
Net occupancy		7,112				7,424
Advertising, travel & entertainment		1,745				1,904
ATM expense		693				675
Professional fees		2,229				2,564
Software and data processing		5,716				4,319
Communications		859				675
FDIC insurance		1,920				1,764
Amortization of intangibles		644				920
Other		6,631				6,365
Total noninterest expense		72,646				69,842
Income before income tax expense		56,018				60,038
Income tax expense		9,834				9,111
Net income	$	46,184			$	50,927
Common Share Data:
Weighted-average basic shares outstanding		30,271				31,045
Weighted-average diluted shares outstanding		30,310				31,099
Common shares outstanding end of period		30,261				30,532
Earnings per common share
Basic	$	1.52			$	1.64
Diluted		1.52				1.64
Book value per common share		26.47				25.06
Tangible book value per common share		19.75				18.35
Cash dividends paid per common share		0.72				0.70
Selected Performance Ratios:
Return on average assets		1.11	%			1.34	%
Return on average shareholders’ equity		11.74				13.62
Return on average tangible common equity (1)		15.99				18.98
Average yield on earning assets (FTE) (1)		5.42				4.88
Average rate on interest bearing liabilities		3.27				2.30
Net interest margin (FTE) (1)		2.87				3.19
Net interest spread (FTE) (1)		2.15				2.58
Average earning assets to average interest bearing liabilities		128.16				135.85
Noninterest expense to average total assets		1.74				1.84
Efficiency ratio (FTE) (1)		54.11				51.02

(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)
	Six Months Ended
	June 30,
		2024				2023
Nonperforming Assets:	$	6,918			$	3,059
Nonaccrual loans		6,110				3,017
Accruing loans past due more than 90 days		—				—
Restructured loans		145				—
Other real estate owned		648				—
Repossessed assets		15				42
Asset Quality Ratios:
Ratio of nonaccruing loans to:
Total loans		0.13	%			0.07	%
Ratio of nonperforming assets to:
Total assets		0.08				0.04
Total loans		0.15				0.07
Total loans and OREO		0.15				0.07
Ratio of allowance for loan losses to:
Nonaccruing loans		694.06				1,203.28
Nonperforming assets		613.00				1,186.76
Total loans		0.92				0.84
Net charge-offs (recoveries) to average loans outstanding		0.02				0.03
Capital Ratios:
Shareholders’ equity to total assets		9.58				9.80
Common equity tier 1 capital		12.72				12.32
Tier 1 risk-based capital		13.76				13.37
Total risk-based capital		16.16				15.68
Tier 1 leverage capital		9.40				9.69
Period end tangible equity to period end tangible assets (1)		7.33				7.37
Average shareholders’ equity to average total assets		9.43				9.83

(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)
	Six Months Ended
	June 30,
Loan Portfolio Composition		2024				2023
Real Estate Loans:
Construction	$	546,040			$	657,354
1-4 Family Residential		738,037				684,878
Commercial		2,472,771				2,100,338
Commercial Loans		359,807				383,724
Municipal Loans		416,986				435,211
Loans to Individuals		55,724				67,538
Total Loans	$	4,589,365			$	4,329,043
Summary of Changes in Allowances:
Allowance for Loan Losses
Balance at beginning of period	$	42,674			$	36,515
Loans charged-off		(1,355	)			(1,370	)
Recoveries of loans charged-off		791				792
Net loans (charged-off) recovered		(564	)			(578	)
Provision for (reversal of) loan losses		297				366
Balance at end of period	$	42,407			$	36,303
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		(724	)			(480	)
Balance at end of period	$	3,208			$	3,207
Total Allowance for Credit Losses	$	45,615			$	39,510

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
	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										September 30, 2023
	Average Balance				Interest			Average Yield/Rate			Average Balance				Interest			Average Yield/Rate
ASSETS
Loans (1)	$	4,473,618			$	67,886		6.02	%		$	4,396,184			$	64,758		5.84	%
Loans held for sale		1,858				27		5.77	%			1,537				26		6.71	%
Securities:
Taxable investment securities (2)		852,023				7,970		3.71	%			912,789				8,731		3.79	%
Tax-exempt investment securities (2)		1,456,187				15,688		4.27	%			1,510,044				16,232		4.26	%
Mortgage-backed and related securities (2)		581,548				6,865		4.68	%			442,908				4,426		3.96	%
Total securities		2,889,758				30,523		4.19	%			2,865,741				29,389		4.07	%
Federal Home Loan Bank stock, at cost, and equity investments		24,674				296		4.76	%			22,363				265		4.70	%
Interest earning deposits		150,763				2,054		5.41	%			37,891				535		5.60	%
Federal funds sold		93,149				1,286		5.48	%			94,441				1,253		5.26	%
Total earning assets		7,633,820				102,072		5.30	%			7,418,157				96,226		5.15	%
Cash and due from banks		110,380										106,348
Accrued interest and other assets		374,120										400,850
Less:  Allowance for loan losses		(41,822	)									(36,493	)
Total assets	$	8,076,498									$	7,888,862
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	610,453				1,432		0.93	%		$	622,246				1,458		0.93	%
Certificates of deposit		910,759				9,691		4.22	%			949,894				9,443		3.94	%
Interest bearing demand accounts		3,469,120				24,498		2.80	%			3,189,048				20,050		2.49	%
Total interest bearing deposits		4,990,332				35,621		2.83	%			4,761,188				30,951		2.58	%
Federal Home Loan Bank borrowings		262,709				1,430		2.16	%			230,184				1,174		2.02	%
Subordinated notes, net of unamortized debt issuance costs		93,859				965		4.08	%			93,817				962		4.07	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,269				1,195		7.87	%			60,268				1,178		7.75	%
Repurchase agreements		96,622				1,008		4.14	%			104,070				1,048		4.00	%
Other borrowings		294,683				4,235		5.70	%			317,913				4,492		5.61	%
Total interest bearing liabilities		5,798,474				44,454		3.04	%			5,567,440				39,805		2.84	%
Noninterest bearing deposits		1,424,961										1,441,738
Accrued expenses and other liabilities		115,388										109,490
Total liabilities		7,338,823										7,118,668
Shareholders’ equity		737,675										770,194
Total liabilities and shareholders’ equity	$	8,076,498									$	7,888,862
Net interest income (FTE)					$	57,618									$	56,421
Net interest margin (FTE)								2.99	%									3.02	%
Net interest spread (FTE)								2.26	%									2.31	%

(1)   Interest on loans includes net fees on loans that are not material in amount.(2)   For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.

Note: As of December 31, 2023 and September 30, 2023, loans totaling $3.9 million and $4.3 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, 2023
	Average Balance				Interest			Average Yield/Rate
ASSETS
Loans (1)	$	4,197,130			$	59,334		5.67	%
Loans held for sale		1,664				23		5.54	%
Securities:
Taxable investment securities (2)		925,445				8,773		3.80	%
Tax-exempt investment securities (2)		1,562,232				16,182		4.15	%
Mortgage-backed and related securities (2)		401,427				3,830		3.83	%
Total securities		2,889,104				28,785		4.00	%
Federal Home Loan Bank stock, at cost, and equity investments		21,480				379		7.08	%
Interest earning deposits		56,604				742		5.26	%
Federal funds sold		59,186				748		5.07	%
Total earning assets		7,225,168				90,011		5.00	%
Cash and due from banks		103,559
Accrued interest and other assets		419,420
Less:  Allowance for loan losses		(36,512	)
Total assets	$	7,711,635
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	648,560				1,430		0.88	%
Certificates of deposit		797,992				6,365		3.20	%
Interest bearing demand accounts		2,841,818				13,884		1.96	%
Total interest bearing deposits		4,288,370				21,679		2.03	%
Federal Home Loan Bank borrowings		211,309				1,032		1.96	%
Subordinated notes, net of unamortized debt issuance costs		97,804				994		4.08	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,266				1,100		7.32	%
Repurchase agreements		97,915				883		3.62	%
Other borrowings		631,447				7,272		4.62	%
Total interest bearing liabilities		5,387,111				32,960		2.45	%
Noninterest bearing deposits		1,490,445
Accrued expenses and other liabilities		84,252
Total liabilities		6,961,808
Shareholders’ equity		749,827
Total liabilities and shareholders’ equity	$	7,711,635
Net interest income (FTE)					$	57,051
Net interest margin (FTE)								3.17	%
Net interest spread (FTE)								2.55	%

(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, 2023, loans totaling $3.0 million were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.

Southside Bancshares, Inc.Average Balances and Average Yields and Rates (Annualized) (Unaudited)(Dollars in thousands)
	Six Months Ended
	June 30, 2024										June 30, 2023
	Average Balance				Interest			Average Yield/Rate			Average Balance				Interest			Average Yield/Rate
ASSETS
Loans (1)	$	4,577,791			$	139,142		6.11	%		$	4,163,141			$	114,787		5.56	%
Loans held for sale		5,162				42		1.64	%			1,663				43		5.21	%
Securities:
Taxable investment securities (2)		782,139				13,976		3.59	%			808,803				14,485		3.61	%
Tax-exempt investment securities (2)		1,270,010				25,929		4.11	%			1,627,105				32,648		4.05	%
Mortgage-backed and related securities (2)		797,608				21,203		5.35	%			428,469				8,159		3.84	%
Total securities		2,849,757				61,108		4.31	%			2,864,377				55,292		3.89	%
Federal Home Loan Bank stock, at cost, and equity investments		40,265				906		4.52	%			26,448				624		4.76	%
Interest earning deposits		340,114				9,307		5.50	%			72,177				1,775		4.96	%
Federal funds sold		69,039				1,859		5.41	%			65,871				1,585		4.85	%
Total earning assets		7,882,128				212,364		5.42	%			7,193,677				174,106		4.88	%
Cash and due from banks		112,241										105,650
Accrued interest and other assets		432,904										408,908
Less:  Allowance for loan losses		(43,356	)									(36,601	)
Total assets	$	8,383,917									$	7,671,634
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	604,641				2,878		0.96	%		$	657,192				2,743		0.84	%
Certificates of deposit		981,023				21,971		4.50	%			792,967				11,772		2.99	%
Interest bearing demand accounts		3,574,001				51,815		2.92	%			2,912,127				27,070		1.87	%
Total interest bearing deposits		5,159,665				76,664		2.99	%			4,362,286				41,585		1.92	%
Federal Home Loan Bank borrowings		606,942				12,405		4.11	%			307,221				4,173		2.74	%
Subordinated notes, net of unamortized debt issuance costs		92,956				1,892		4.09	%			98,246				1,993		4.09	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,271				2,346		7.83	%			60,266				2,131		7.13	%
Repurchase agreements		90,092				1,922		4.29	%			81,765				1,375		3.39	%
Other borrowings		140,228				4,759		6.82	%			385,440				9,198		4.81	%
Total interest bearing liabilities		6,150,154				99,988		3.27	%			5,295,224				60,455		2.30	%
Noninterest bearing deposits		1,342,329										1,539,313
Accrued expenses and other liabilities		100,558										82,833
Total liabilities		7,593,041										6,917,370
Shareholders’ equity		790,876										754,264
Total liabilities and shareholders’ equity	$	8,383,917									$	7,671,634
Net interest income (FTE)					$	112,376									$	113,651
Net interest margin (FTE)								2.87	%									3.19	%
Net interest spread (FTE)								2.15	%									2.58	%

(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 2023, loans totaling $6.1 million and $3.0 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.

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																				Six Months Ended
		2024								2023												2024				2023
		Jun 30,				Mar 31,				Dec 31,				Sep 30,				Jun 30,				Jun 30,				Jun 30,
Reconciliation of return on average common equity to return on average tangible common equity:
Net income		$	24,673			$	21,511			$	17,316			$	18,449			$	24,893			$	46,184			$	50,927
After-tax amortization expense			243				266				292				322				349				509				727
Adjusted net income available to common shareholders		$	24,916			$	21,777			$	17,608			$	18,771			$	25,242			$	46,693			$	51,654
Average shareholders' equity		$	796,698			$	785,054			$	737,675			$	770,194			$	749,827			$	790,876			$	754,264
Less: Average intangibles for the period			(203,581	)			(203,910	)			(204,267	)			(204,658	)			(205,086	)			(203,745	)			(205,319	)
Average tangible shareholders' equity		$	593,117			$	581,144			$	533,408			$	565,536			$	544,741			$	587,131			$	548,945
Return on average tangible common equity			16.90	%			15.07	%			13.10	%			13.17	%			18.59	%			15.99	%			18.98	%
Reconciliation of book value per share to tangible book value per share:
Common equity at end of period		$	800,970			$	787,922			$	773,288			$	728,595			$	765,161			$	800,970			$	765,161
Less: Intangible assets at end of period			(203,397	)			(203,704	)			(204,041	)			(204,411	)			(204,818	)			(203,397	)			(204,818	)
Tangible common shareholders' equity at end of period		$	597,573			$	584,218			$	569,247			$	524,184			$	560,343			$	597,573			$	560,343
Total assets at end of period		$	8,357,702			$	8,353,863			$	8,284,914			$	7,972,468			$	7,807,252			$	8,357,702			$	7,807,252
Less: Intangible assets at end of period			(203,397	)			(203,704	)			(204,041	)			(204,411	)			(204,818	)			(203,397	)			(204,818	)
Tangible assets at end of period		$	8,154,305			$	8,150,159			$	8,080,873			$	7,768,057			$	7,602,434			$	8,154,305			$	7,602,434
Period end tangible equity to period end tangible assets			7.33	%			7.17	%			7.04	%			6.75	%			7.37	%			7.33	%			7.37	%
Common shares outstanding end of period			30,261				30,284				30,249				30,338				30,532				30,261				30,532
Tangible book value per common share		$	19.75			$	19.29			$	18.82			$	17.28			$	18.35			$	19.75			$	18.35
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)		$	53,608			$	53,348			$	54,485			$	53,273			$	53,916			$	106,956			$	107,269
Tax-equivalent adjustments:
Loans			633				656				680				674				673				1,289				1,370
Tax-exempt investment securities			2,051				2,080				2,453				2,474				2,462				4,131				5,012
Net interest income (FTE) (1)			56,292				56,084				57,618				56,421				57,051				112,376				113,651
Noninterest income			11,557				9,724				2,501				10,836				10,464				21,281				22,497
Nonrecurring income (2)			(576	)			18				8,376				(11	)			226				(558	)			(995	)
Total revenue		$	67,273			$	65,826			$	68,495			$	67,246			$	67,741			$	133,099			$	135,153
Noninterest expense		$	35,765			$	36,881			$	35,183			$	35,553			$	34,993			$	72,646			$	69,842
Pre-tax amortization expense			(307	)			(337	)			(370	)			(407	)			(442	)			(644	)			(920	)
Nonrecurring expense (3)			2				17				22				17				36				19				39
Adjusted noninterest expense		$	35,460			$	36,561			$	34,835			$	35,163			$	34,587			$	72,021			$	68,961
Efficiency ratio			54.90	%			57.95	%			53.30	%			54.86	%			53.54	%			56.41	%			53.55	%
Efficiency ratio (FTE) (1)			52.71	%			55.54	%			50.86	%			52.29	%			51.06	%			54.11	%			51.02	%
Average earning assets		$	7,881,919			$	7,882,337			$	7,633,820			$	7,418,157			$	7,225,168			$	7,882,128			$	7,193,677
Net interest margin			2.74	%			2.72	%			2.83	%			2.85	%			2.99	%			2.73	%			3.01	%
Net interest margin (FTE) (1)			2.87	%			2.86	%			2.99	%			3.02	%			3.17	%			2.87	%			3.19	%
Net interest spread			2.00	%			2.02	%			2.10	%			2.14	%			2.37	%			2.01	%			2.40	%
Net interest spread (FTE) (1)			2.13	%			2.16	%			2.26	%			2.31	%			2.55	%			2.15	%			2.58	%

(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.