SBSI Southside Bancshares Inc

Southside Bancshares, Inc. (“Southside” or the “Company”) (NASDAQ: SBSI) today reported its financial results for the quarter ended September 30, 2024. Southside reported net income of $20.5 million for the three months ended September 30, 2024, an increase of $2.1 million, or 11.2%, compared to $18.4 million for the same period in 2023. Earnings per diluted common share increased $0.08, or 13.3%, to $0.68 for the three months ended September 30, 2024, from $0.60 for the same period in 2023. The annualized return on average shareholders’ equity for the three months ended September 30, 2024, was 10.13%, compared to 9.50% for the same period in 2023. The annualized return on average assets was 0.98% for the three months ended September 30, 2024, compared to 0.93% for the same period in 2023. 

“Third quarter financial results were highlighted by a linked quarter $1.86 million increase in net interest income, a linked quarter eight basis point increase in our net interest margin to 2.95%, earnings per share of $0.68, a 13.69% return on average tangible equity(1), and continued strong asset quality,” stated Lee R. Gibson, Chief Executive Officer of Southside. “During the quarter we sold $28 million of lower yielding municipal securities, unwound the related fair value swaps and recorded a loss of $1.9 million. The proceeds were reinvested in higher yielding agency mortgage-backed securities. In addition, we recorded an impairment charge of $868,000 on the sale of approximately $10 million of available for sale (“AFS”) municipal securities and the unwind of the related fair value swaps on October 1.” 

Operating Results for the Three Months Ended September 30, 2024 

Net income was $20.5 million for the three months ended September 30, 2024, compared to $18.4 million for the same period in 2023, an increase of $2.1 million, or 11.2%. Earnings per diluted common share were $0.68 and $0.60 for the three months ended September 30, 2024 and 2023, respectively. The increase in net income was a result of the increase in net interest income and the decrease in provision for credit losses, partially offset by the decrease in noninterest income and increases in noninterest expense and income tax expense. Annualized returns on average assets and average shareholders’ equity for the three months ended September 30, 2024 were 0.98% and 10.13%, respectively, compared to 0.93% and 9.50%, respectively, for the three months ended September 30, 2023. Our efficiency ratio and tax-equivalent efficiency ratio(1) were 53.94% and 51.90%, respectively, for the three months ended September 30, 2024, compared to 54.86% and 52.29%, respectively, for the three months ended September 30, 2023, and 54.90% and 52.71%, respectively, for the three months ended June 30, 2024. 

Net interest income for the three months ended September 30, 2024 was $55.5 million, an increase of $2.2 million, or 4.1%, from the same period in 2023. The increase in net interest income was due to the increases in the average balance and the average yield of interest earning assets, partially offset by increases in the average rate paid on our interest bearing liabilities and average balance of our interest bearing liabilities. Linked quarter, net interest income increased $1.9 million, or 3.5%, compared to $53.6 million during the three months ended June 30, 2024, largely due to the increase in the average yield on our interest earning assets and the decrease in the average rate paid on our interest bearing liabilities, partially offset by the decrease in the average balance of interest earning assets. 

Our net interest margin and tax-equivalent net interest margin(1) decreased to 2.82% and 2.95%, respectively, for the three months ended September 30, 2024, compared to 2.85% and 3.02%, respectively, for the same period in 2023. Linked quarter, net interest margin and tax-equivalent net interest margin(1) increased from 2.74% and 2.87%, respectively for the three months ended June 30, 2024. 

Noninterest income was $8.2 million for the three months ended September 30, 2024, a decrease of $2.7 million, or 24.6%, compared to $10.8 million for the same period in 2023. The decrease was due to a net loss on sale of securities AFS and decreases in other noninterest income and deposit services income, partially offset by an increase in brokerage services income. On a linked quarter basis, noninterest income decreased $3.4 million, or 29.3%, compared to the three months ended June 30, 2024. The decrease was primarily due to an increase in net loss on sale of securities AFS and decreases in other noninterest income and bank owned life insurance income related to a $1.0 million death benefit realized in the second quarter of 2024. The decrease in other noninterest income for both periods was primarily due to 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 on October 1. 

Noninterest expense increased $0.8 million, or 2.2%, to $36.3 million for the three months ended September 30, 2024, compared to $35.6 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 advertising, travel and entertainment expense, professional fees, net occupancy expense and amortization of intangibles. On a linked quarter basis, noninterest expense increased by $0.6 million, or 1.6%, compared to the three months ended June 30, 2024, due to increases in other noninterest expense, salaries and employee benefits expense and professional fees. 

Income tax expense increased $1.3 million, or 40.7%, for the three months ended September 30, 2024, compared to the same period in 2023. On a linked quarter basis, income tax expense decreased $0.8 million, or 15.8%. Our effective tax rate (“ETR”) increased to 17.6% for the three months ended September 30, 2024, compared to 14.5% for the three months ended September 30, 2023, and increased slightly from 17.4% for the three months ended June 30, 2024. The higher ETR for the three months ended September 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 Nine Months Ended September 30, 2024 

Net income was $66.7 million for the nine months ended September 30, 2024, compared to $69.4 million for the same period in 2023, a decrease of $2.7 million, or 3.8%. Earnings per diluted common share were $2.20 for the nine months ended September 30, 2024, compared to $2.24 for the same period in 2023, a decrease of 1.8%. The decrease in net income was primarily a result of the decrease in noninterest income and increases in noninterest expense and income tax expense, partially offset by the decrease in provision for credit losses and the increase in net interest income. Returns on average assets and average shareholders’ equity for the nine months ended September 30, 2024 were 1.06% and 11.19%, respectively, compared to 1.20% and 12.21%, respectively, for the nine months ended September 30, 2023. Our efficiency ratio and tax-equivalent efficiency ratio(1) were 55.56% and 53.35%, respectively, for the nine months ended September 30, 2024, compared to 53.99% and 51.44%, respectively, for the nine months ended September 30, 2023. 

Net interest income was $162.4 million for the nine months ended September 30, 2024, compared to $160.5 million for the same period in 2023, an increase of $1.9 million, or 1.2%, 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 our interest bearing liabilities and average balance of our interest bearing liabilities. 

Our net interest margin and tax-equivalent net interest margin(1) were 2.76% and 2.90%, respectively, for the nine months ended September 30, 2024, compared to 2.95% and 3.13%, respectively, for the same period in 2023. 

Noninterest income was $29.5 million for the nine months ended September 30, 2024, a decrease of $3.9 million, or 11.6%, compared to $33.3 million for the same period in 2023. The decrease was due to decreases in the net gain on sale of equity securities, other noninterest income and deposit services income and a loss on sale of loans, partially offset by a decrease in net loss on sale of securities AFS and an increase in brokerage services income. The decrease in other noninterest income was primarily due to 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 on October 1. 

Noninterest expense was $109.0 million for the nine months ended September 30, 2024, compared to $105.4 million for the same period in 2023, an increase of $3.6 million, or 3.4%. 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, net occupancy expense, advertising, travel and entertainment expense, and amortization of intangibles. 

Income tax expense increased $2.0 million, or 16.3%, for the nine months ended September 30, 2024, compared to the same period in 2023. Our ETR was approximately 17.6% and 15.0% for the nine months ended September 30, 2024 and 2023, respectively. The higher ETR for the nine months ended September 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 September 30, 2024, Southside had $8.36 billion in total assets, compared to $8.28 billion at December 31, 2023 and $7.97 billion at September 30, 2023. 

Loans at September 30, 2024 were $4.58 billion, an increase of $157.4 million, or 3.6%, compared to $4.42 billion at September 30, 2023. Linked quarter, loans decreased $11.3 million, or 0.2%, due to decreases of $50.2 million in commercial real estate loans, $14.9 million in municipal loans, $2.4 million in loans to individuals and $1.0 million in commercial loans. These decreases were partially offset by increases of $39.8 million in construction loans and $17.4 million in 1-4 family residential loans. 

Securities at September 30, 2024 were $2.70 billion, an increase of $53.4 million, or 2.0%, compared to $2.64 billion at September 30, 2023. Linked quarter, securities decreased $15.1 million, or 0.6%, from $2.71 billion at June 30, 2024. 

Deposits at September 30, 2024 were $6.44 billion, an increase of $86.1 million, or 1.4%, compared to $6.35 billion at September 30, 2023. Linked quarter, deposits decreased $60.2 million, or 0.9%, from $6.50 billion at June 30, 2024. 

At September 30, 2024, we had 179,214 total deposit accounts with an average balance of $32,000. Our estimated uninsured deposits were 35.9% as of September 30, 2024. When excluding affiliate deposits (Southside-owned deposits) and public fund deposits (all collateralized), our total estimated deposits without insurance or collateral was 19.2% as of September 30, 2024. Our noninterest bearing deposits represent approximately 21.4% of total deposits. Linked quarter, our cost of interest bearing deposits remained consistent at 3.01%. Linked quarter, our cost of total deposits decreased one basis point from 2.39% in the prior quarter to 2.38%. 

Our cost of interest bearing deposits increased 83 basis points, from 2.16% for the nine months ended September 30, 2023, to 2.99% for the nine months ended September 30, 2024. Our cost of total deposits increased 75 basis points, from 1.62% for the nine months ended September 30, 2023, to 2.37% for the nine months ended September 30, 2024. 

Capital Resources and Liquidity 

Our capital ratios and contingent liquidity sources remain solid. During the third quarter ended September 30, 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 September 30, 2024. 

As of September 30, 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 September 30, 2024 were $7.7 million, or 0.09% of total assets, an increase of $3.3 million, or 74.8%, compared to $4.4 million, or 0.05% of total assets, at September 30, 2023. Linked quarter, nonperforming assets increased $0.7 million, or 10.7%, from $6.9 million at June 30, 2024 due primarily to an increase of $1.1 million, or 18.7%, in nonaccrual loans, partially offset by decreases of $0.1 million in restructured loans and $0.3 million in other real estate owned. 

The allowance for loan losses totaled $44.3 million, or 0.97% of total loans, at September 30, 2024, compared to $42.4 million, or 0.92% of total loans, at June 30, 2024. The increase in the allowance as a percentage of total assets was primarily due to the increased economic concerns forecasted in the CECL model specific to office and multifamily markets in metro areas. The allowance for loan losses was $41.8 million, or 0.94% of total loans, at September 30, 2023. 

For the three months ended September 30, 2024, we recorded a provision for credit losses for loans of $2.3 million, compared to a provision of $6.3 million for the three months ended September 30, 2023, and a reversal of provision of $0.9 million for the three months ended June 30, 2024. Net charge-offs were $0.4 million for the three months ended September 30, 2024, compared to net charge-offs of $0.9 million and $0.3 million for the three months ended September 30, 2023 and June 30, 2024, respectively. Net charge-offs were $1.0 million for the nine months ended September 30, 2024, compared to net charge-offs of $1.5 million for the nine months ended September 30, 2023. 

We recorded a provision for credit losses on off-balance-sheet credit exposures of $0.1 million for the three months ended September 30, 2024, compared to $0.6 million and $0.4 million for the three months ended September 30, 2023 and June 30, 2024, respectively. We recorded a reversal of provision for credit losses for off-balance-sheet credit exposures of $0.6 million for the nine months ended September 30, 2024, compared to a provision for credit losses on off-balance-sheet credit exposures of $0.2 million for the nine months ended September 30, 2023. The balance of the allowance for off-balance-sheet credit exposures was $3.3 million and $3.9 million at September 30, 2024 and 2023, respectively, and is included in other liabilities. 

Dividend 

Southside Bancshares, Inc. declared a third quarter cash dividend of $0.36 per share on August 8, 2024, which was paid on September 5, 2024, to all shareholders of record as of August 22, 2024. 

_______________ 

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

Conference Call 

Southside's management team will host a conference call to discuss its third quarter ended September 30, 2024 financial results on Thursday, October 24, 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/BIe280e5ecbf444a68a5836f1e27caa8a9 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 September 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 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 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
	Sep 30,				Jun 30,				Mar 31,				Dec 31,				Sep 30,
ASSETS
Cash and due from banks	$	130,147			$	114,283			$	96,744			$	122,021			$	105,601
Interest earning deposits		333,825				272,469				307,257				391,719				106,094
Federal funds sold		22,325				65,244				65,372				46,770				114,128
Securities available for sale, at estimated fair value		1,408,437				1,405,944				1,405,221				1,296,294				1,335,560
Securities held to maturity, at net carrying value		1,288,403				1,305,975				1,306,898				1,307,053				1,307,886
Total securities		2,696,840				2,711,919				2,712,119				2,603,347				2,643,446
Federal Home Loan Bank stock, at cost		40,291				32,991				27,958				11,936				12,778
Loans held for sale		768				1,352				756				10,894				1,382
Loans		4,578,048				4,589,365				4,577,368				4,524,510				4,420,633
Less: Allowance for loan losses		(44,276	)			(42,407	)			(43,557	)			(42,674	)			(41,760	)
Net loans		4,533,772				4,546,958				4,533,811				4,481,836				4,378,873
Premises & equipment, net		138,811				138,489				139,491				138,950				139,473
Goodwill		201,116				201,116				201,116				201,116				201,116
Other intangible assets, net		2,003				2,281				2,588				2,925				3,295
Bank owned life insurance		137,489				136,903				136,604				136,330				135,737
Other assets		124,876				133,697				130,047				137,070				130,545
Total assets	$	8,362,263			$	8,357,702			$	8,353,863			$	8,284,914			$	7,972,468
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest bearing deposits	$	1,377,022			$	1,366,924			$	1,358,827			$	1,390,407			$	1,431,285
Interest bearing deposits		5,058,680				5,129,008				5,186,933				5,159,274				4,918,286
Total deposits		6,435,702				6,495,932				6,545,760				6,549,681				6,349,571
Other borrowings and Federal Home Loan Bank borrowings		865,856				763,700				770,151				722,468				608,038
Subordinated notes, net of unamortized debtissuance costs		92,006				91,970				93,913				93,877				93,838
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,273				60,272				60,271				60,270				60,269
Other liabilities		103,172				144,858				95,846				85,330				132,157
Total liabilities		7,557,009				7,556,732				7,565,941				7,511,626				7,243,873
Shareholders' equity		805,254				800,970				787,922				773,288				728,595
Total liabilities and shareholders' equity	$	8,362,263			$	8,357,702			$	8,353,863			$	8,284,914			$	7,972,468

  

Southside Bancshares, Inc.Consolidated Financial Highlights (Unaudited)(Dollars and shares in thousands, except per share data)
	Three Months Ended
		2024												2023
	Sep 30,				Jun 30,				Mar 31,				Dec 31,				Sep 30,
Income Statement:
Total interest income	$	105,703			$	104,186			$	102,758			$	98,939			$	93,078
Total interest expense		50,239				50,578				49,410				44,454				39,805
Net interest income		55,464				53,608				53,348				54,485				53,273
Provision for (reversal of) credit losses		2,389				(485	)			58				2,281				6,987
Net interest income after provision for (reversal of) credit losses		53,075				54,093				53,290				52,204				46,286
Noninterest income
Deposit services		6,199				6,157				5,985				6,305				6,479
Net gain (loss) on sale of securities available for sale		(1,929	)			(563	)			(18	)			(10,386	)			11
Gain (loss) on sale of loans		115				220				(436	)			178				96
Trust fees		1,628				1,456				1,336				1,431				1,522
Bank owned life insurance		857				1,767				784				2,602				790
Brokerage services		1,068				1,081				1,014				944				760
Other		233				1,439				1,059				1,427				1,178
Total noninterest income		8,171				11,557				9,724				2,501				10,836
Noninterest expense
Salaries and employee benefits		22,233				21,984				23,113				21,152				21,241
Net occupancy		3,613				3,750				3,362				3,474				3,796
Advertising, travel & entertainment		734				795				950				1,127				1,062
ATM expense		412				368				325				318				358
Professional fees		1,206				1,075				1,154				1,315				1,472
Software and data processing		2,951				2,860				2,856				2,644				2,432
Communications		423				410				449				435				359
FDIC insurance		939				977				943				892				902
Amortization of intangibles		278				307				337				370				407
Other		3,543				3,239				3,392				3,456				3,524
Total noninterest expense		36,332				35,765				36,881				35,183				35,553
Income before income tax expense		24,914				29,885				26,133				19,522				21,569
Income tax expense		4,390				5,212				4,622				2,206				3,120
Net income	$	20,524			$	24,673			$	21,511			$	17,316			$	18,449
Common Share Data:
Weighted-average basic shares outstanding		30,286				30,280				30,262				30,235				30,502
Weighted-average diluted shares outstanding		30,370				30,312				30,305				30,276				30,543
Common shares outstanding end of period		30,308				30,261				30,284				30,249				30,338
Earnings per common share
Basic	$	0.68			$	0.81			$	0.71			$	0.57			$	0.60
Diluted		0.68				0.81				0.71				0.57				0.60
Book value per common share		26.57				26.47				26.02				25.56				24.02
Tangible book value per common share		19.87				19.75				19.29				18.82				17.28
Cash dividends paid per common share		0.36				0.36				0.36				0.37				0.35
Selected Performance Ratios:
Return on average assets		0.98	%			1.19	%			1.03	%			0.85	%			0.93	%
Return on average shareholders’ equity		10.13				12.46				11.02				9.31				9.50
Return on average tangible common equity (1)		13.69				16.90				15.07				13.10				13.17
Average yield on earning assets (FTE) (1)		5.51				5.45				5.38				5.30				5.15
Average rate on interest bearing liabilities		3.28				3.32				3.22				3.04				2.84
Net interest margin (FTE) (1)		2.95				2.87				2.86				2.99				3.02
Net interest spread (FTE) (1)		2.23				2.13				2.16				2.26				2.31
Average earning assets to average interest bearing liabilities		128.51				128.62				127.71				131.65				133.24
Noninterest expense to average total assets		1.73				1.72				1.77				1.73				1.79
Efficiency ratio (FTE) (1)		51.90				52.71				55.54				50.86				52.29

(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
	Sep 30,				Jun 30,				Mar 31,				Dec 31,				Sep 30,
Nonperforming Assets:	$	7,656			$	6,918			$	7,979			$	4,001			$	4,381
Nonaccrual loans		7,254				6,110				7,709				3,889				4,316
Accruing loans past due more than 90 days		—				—				—				—				—
Restructured loans		—				145				151				13				15
Other real estate owned		388				648				119				99				50
Repossessed assets		14				15				—				—				—
Asset Quality Ratios:
Ratio of nonaccruing loans to:
Total loans		0.16	%			0.13	%			0.17	%			0.09	%			0.10	%
Ratio of nonperforming assets to:
Total assets		0.09				0.08				0.10				0.05				0.05
Total loans		0.17				0.15				0.17				0.09				0.10
Total loans and OREO		0.17				0.15				0.17				0.09				0.10
Ratio of allowance for loan losses to:
Nonaccruing loans		610.37				694.06				565.01				1,097.30				967.56
Nonperforming assets		578.32				613.00				545.90				1,066.58				953.21
Total loans		0.97				0.92				0.95				0.94				0.94
Net charge-offs (recoveries) to average loans outstanding		0.04				0.02				0.03				0.11				0.08
Capital Ratios:
Shareholders’ equity to total assets		9.63				9.58				9.43				9.33				9.14
Common equity tier 1 capital		13.07				12.72				12.43				12.28				12.27
Tier 1 risk-based capital		14.12				13.76				13.47				13.32				13.31
Total risk-based capital		16.59				16.16				15.92				15.73				15.71
Tier 1 leverage capital		9.61				9.40				9.22				9.39				9.61
Period end tangible equity to period end tangible assets (1)		7.38				7.33				7.17				7.04				6.75
Average shareholders’ equity to average total assets		9.67				9.52				9.35				9.13				9.76

(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	Sep 30,				Jun 30,				Mar 31,				Dec 31,				Sep 30,
Real Estate Loans:
Construction	$	585,817			$	546,040			$	599,464			$	789,744			$	720,515
1-4 Family Residential		755,406				738,037				720,508				696,738				689,492
Commercial		2,422,612				2,472,771				2,413,345				2,168,451				2,117,306
Commercial Loans		358,854				359,807				358,053				366,893				385,816
Municipal Loans		402,041				416,986				427,225				441,168				441,512
Loans to Individuals		53,318				55,724				58,773				61,516				65,992
Total Loans	$	4,578,048			$	4,589,365			$	4,577,368			$	4,524,510			$	4,420,633
Summary of Changes in Allowances:
Allowance for Loan Losses
Balance at beginning of period	$	42,407			$	43,557			$	42,674			$	41,760			$	36,303
Loans charged-off		(773	)			(721	)			(634	)			(1,572	)			(1,262	)
Recoveries of loans charged-off		365				444				347				284				378
Net loans (charged-off) recovered		(408	)			(277	)			(287	)			(1,288	)			(884	)
Provision for (reversal of) loan losses		2,277				(873	)			1,170				2,202				6,341
Balance at end of period	$	44,276			$	42,407			$	43,557			$	42,674			$	41,760
Allowance for Off-Balance-Sheet Credit Exposures
Balance at beginning of period	$	3,208			$	2,820			$	3,932			$	3,853			$	3,207
Provision for (reversal of) off-balance-sheet credit exposures		112				388				(1,112	)			79				646
Balance at end of period	$	3,320			$	3,208			$	2,820			$	3,932			$	3,853
Total Allowance for Credit Losses	$	47,596			$	45,615			$	46,377			$	46,606			$	45,613

  

Southside Bancshares, Inc.Consolidated Financial Highlights (Unaudited)(Dollars in thousands)
	Nine Months Ended
	September 30,
		2024				2023
Income Statement:
Total interest income	$	312,647			$	260,802
Total interest expense		150,227				100,260
Net interest income		162,420				160,542
Provision for (reversal of) credit losses		1,962				6,873
Net interest income after provision for (reversal of) credit losses		160,458				153,669
Noninterest income
Deposit services		18,341				19,192
Net gain (loss) on sale of securities available for sale		(2,510	)			(5,590	)
Net gain on sale of equity securities		—				5,058
Gain (loss) on sale of loans		(101	)			385
Trust fees		4,420				4,479
Bank owned life insurance		3,408				3,221
Brokerage services		3,163				2,361
Other		2,731				4,227
Total noninterest income		29,452				33,333
Noninterest expense
Salaries and employee benefits		67,330				64,473
Net occupancy		10,725				11,220
Advertising, travel & entertainment		2,479				2,966
ATM expense		1,105				1,033
Professional fees		3,435				4,036
Software and data processing		8,667				6,751
Communications		1,282				1,034
FDIC insurance		2,859				2,666
Amortization of intangibles		922				1,327
Other		10,174				9,889
Total noninterest expense		108,978				105,395
Income before income tax expense		80,932				81,607
Income tax expense		14,224				12,231
Net income	$	66,708			$	69,376
Common Share Data:
Weighted-average basic shares outstanding		30,276				30,862
Weighted-average diluted shares outstanding		30,332				30,916
Common shares outstanding end of period		30,308				30,338
Earnings per common share
Basic	$	2.20			$	2.25
Diluted		2.20				2.24
Book value per common share		26.57				24.02
Tangible book value per common share		19.87				17.28
Cash dividends paid per common share		1.08				1.05
Selected Performance Ratios:
Return on average assets		1.06	%			1.20	%
Return on average shareholders’ equity		11.19				12.21
Return on average tangible common equity (1)		15.20				16.98
Average yield on earning assets (FTE) (1)		5.45				4.97
Average rate on interest bearing liabilities		3.27				2.49
Net interest margin (FTE) (1)		2.90				3.13
Net interest spread (FTE) (1)		2.18				2.48
Average earning assets to average interest bearing liabilities		128.28				134.94
Noninterest expense to average total assets		1.74				1.84
Efficiency ratio (FTE) (1)		53.35				51.44

(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)
	Nine Months Ended
	September 30,
		2024				2023
Nonperforming Assets:	$	7,656			$	4,381
Nonaccrual loans		7,254				4,316
Accruing loans past due more than 90 days		—				—
Restructured loans		—				15
Other real estate owned		388				50
Repossessed assets		14				—
Asset Quality Ratios:
Ratio of nonaccruing loans to:
Total loans		0.16	%			0.10	%
Ratio of nonperforming assets to:
Total assets		0.09				0.05
Total loans		0.17				0.10
Total loans and OREO		0.17				0.10
Ratio of allowance for loan losses to:
Nonaccruing loans		610.37				967.56
Nonperforming assets		578.32				953.21
Total loans		0.97				0.94
Net charge-offs (recoveries) to average loans outstanding		0.03				0.05
Capital Ratios:
Shareholders’ equity to total assets		9.63				9.14
Common equity tier 1 capital		13.07				12.27
Tier 1 risk-based capital		14.12				13.31
Total risk-based capital		16.59				15.71
Tier 1 leverage capital		9.61				9.61
Period end tangible equity to period end tangible assets (1)		7.38				6.75
Average shareholders’ equity to average total assets		9.51				9.81

(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)
	Nine Months Ended
	September 30,
Loan Portfolio Composition		2024				2023
Real Estate Loans:
Construction	$	585,817			$	720,515
1-4 Family Residential		755,406				689,492
Commercial		2,422,612				2,117,306
Commercial Loans		358,854				385,816
Municipal Loans		402,041				441,512
Loans to Individuals		53,318				65,992
Total Loans	$	4,578,048			$	4,420,633
Summary of Changes in Allowances:
Allowance for Loan Losses
Balance at beginning of period	$	42,674			$	36,515
Loans charged-off		(2,128	)			(2,632	)
Recoveries of loans charged-off		1,156				1,170
Net loans (charged-off) recovered		(972	)			(1,462	)
Provision for (reversal of) loan losses		2,574				6,707
Balance at end of period	$	44,276			$	41,760
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		(612	)			166
Balance at end of period	$	3,320			$	3,853
Total Allowance for Credit Losses	$	47,596			$	45,613

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
	September 30, 2024										June 30, 2024
	Average Balance				Interest			Average Yield/Rate			Average Balance				Interest			Average Yield/Rate
ASSETS
Loans (1)	$	4,613,028			$	72,493		6.25	%		$	4,595,980			$	70,293		6.15	%
Loans held for sale		871				11		5.02	%			1,489				24		6.48	%
Securities:
Taxable investment securities (2)		791,914				7,150		3.59	%			783,856				7,009		3.60	%
Tax-exempt investment securities (2)		1,174,445				11,825		4.01	%			1,254,097				12,761		4.09	%
Mortgage-backed and related securities (2)		886,325				11,976		5.38	%			830,504				11,084		5.37	%
Total securities		2,852,684				30,951		4.32	%			2,868,457				30,854		4.33	%
Federal Home Loan Bank stock, at cost, and equity investments		41,159				582		5.63	%			40,467				573		5.69	%
Interest earning deposits		281,313				3,798		5.37	%			300,047				4,105		5.50	%
Federal funds sold		33,971				488		5.71	%			75,479				1,021		5.44	%
Total earning assets		7,823,026				108,323		5.51	%			7,881,919				106,870		5.45	%
Cash and due from banks		100,578										110,102
Accrued interest and other assets		455,091										424,323
Less: Allowance for loan losses		(42,581	)									(43,738	)
Total assets	$	8,336,114									$	8,372,606
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	598,116				1,490		0.99	%		$	604,753				1,454		0.97	%
Certificates of deposit		1,087,613				12,647		4.63	%			1,020,099				11,630		4.59	%
Interest bearing demand accounts		3,409,911				24,395		2.85	%			3,513,068				25,382		2.91	%
Total interest bearing deposits		5,095,640				38,532		3.01	%			5,137,920				38,466		3.01	%
Federal Home Loan Bank borrowings		618,708				6,488		4.17	%			606,851				6,455		4.28	%
Subordinated notes, net of unamortized debt issuance costs		91,988				937		4.05	%			92,017				936		4.09	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,273				1,180		7.79	%			60,271				1,171		7.81	%
Repurchase agreements		83,297				899		4.29	%			88,007				955		4.36	%
Other borrowings		137,482				2,203		6.37	%			143,169				2,595		7.29	%
Total interest bearing liabilities		6,087,388				50,239		3.28	%			6,128,235				50,578		3.32	%
Noninterest bearing deposits		1,344,165										1,346,274
Accrued expenses and other liabilities		98,331										101,399
Total liabilities		7,529,884										7,575,908
Shareholders’ equity		806,230										796,698
Total liabilities and shareholders’ equity	$	8,336,114									$	8,372,606
Net interest income (FTE)					$	58,084									$	56,292
Net interest margin (FTE)								2.95	%									2.87	%
Net interest spread (FTE)								2.23	%									2.13	%

(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 September 30, 2024 and June 30, 2024, loans totaling $7.3 million and $6.1 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
	March 31, 2024										December 31, 2023
	Average Balance				Interest			Average Yield/Rate			Average Balance				Interest			Average Yield/Rate
ASSETS
Loans (1)	$	4,559,602			$	68,849		6.07	%		$	4,473,618			$	67,886		6.02	%
Loans held for sale		8,834				18		0.82	%			1,858				27		5.77	%
Securities:
Taxable investment securities (2)		780,423				6,967		3.59	%			852,023				7,970		3.71	%
Tax-exempt investment securities (2)		1,285,922				13,168		4.12	%			1,456,187				15,688		4.27	%
Mortgage-backed and related securities (2)		764,713				10,119		5.32	%			581,548				6,865		4.68	%
Total securities		2,831,058				30,254		4.30	%			2,889,758				30,523		4.19	%
Federal Home Loan Bank stock, at cost, and equity investments		40,063				333		3.34	%			24,674				296		4.76	%
Interest earning deposits		380,181				5,202		5.50	%			150,763				2,054		5.41	%
Federal funds sold		62,599				838		5.38	%			93,149				1,286		5.48	%
Total earning assets		7,882,337				105,494		5.38	%			7,633,820				102,072		5.30	%
Cash and due from banks		114,379										110,380
Accrued interest and other assets		441,783										374,120
Less: Allowance for loan losses		(42,973	)									(41,822	)
Total assets	$	8,395,526									$	8,076,498
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	604,529				1,424		0.95	%		$	610,453				1,432		0.93	%
Certificates of deposit		941,947				10,341		4.42	%			910,759				9,691		4.22	%
Interest bearing demand accounts		3,634,936				26,433		2.92	%			3,469,120				24,498		2.80	%
Total interest bearing deposits		5,181,412				38,198		2.97	%			4,990,332				35,621		2.83	%
Federal Home Loan Bank borrowings		607,033				5,950		3.94	%			262,709				1,430		2.16	%
Subordinated notes, net of unamortized debt issuance costs		93,895				956		4.10	%			93,859				965		4.08	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,270				1,175		7.84	%			60,269				1,195		7.87	%
Repurchase agreements		92,177				967		4.22	%			96,622				1,008		4.14	%
Other borrowings		137,287				2,164		6.34	%			294,683				4,235		5.70	%
Total interest bearing liabilities		6,172,074				49,410		3.22	%			5,798,474				44,454		3.04	%
Noninterest bearing deposits		1,338,384										1,424,961
Accrued expenses and other liabilities		100,014										115,388
Total liabilities		7,610,472										7,338,823
Shareholders’ equity		785,054										737,675
Total liabilities and shareholders’ equity	$	8,395,526									$	8,076,498
Net interest income (FTE)					$	56,084									$	57,618
Net interest margin (FTE)								2.86	%									2.99	%
Net interest spread (FTE)								2.16	%									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 March 31, 2024 and December 31, 2023, loans totaling $7.7 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. 

Southside Bancshares, Inc.Average Balances and Average Yields and Rates (Annualized) (Unaudited)(Dollars in thousands)
	Three Months Ended
	September 30, 2023
	Average Balance				Interest			Average Yield/Rate
ASSETS
Loans (1)	$	4,396,184			$	64,758		5.84	%
Loans held for sale		1,537				26		6.71	%
Securities:
Taxable investment securities (2)		912,789				8,731		3.79	%
Tax-exempt investment securities (2)		1,510,044				16,232		4.26	%
Mortgage-backed and related securities (2)		442,908				4,426		3.96	%
Total securities		2,865,741				29,389		4.07	%
Federal Home Loan Bank stock, at cost, and equity investments		22,363				265		4.70	%
Interest earning deposits		37,891				535		5.60	%
Federal funds sold		94,441				1,253		5.26	%
Total earning assets		7,418,157				96,226		5.15	%
Cash and due from banks		106,348
Accrued interest and other assets		400,850
Less: Allowance for loan losses		(36,493	)
Total assets	$	7,888,862
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	622,246				1,458		0.93	%
Certificates of deposit		949,894				9,443		3.94	%
Interest bearing demand accounts		3,189,048				20,050		2.49	%
Total interest bearing deposits		4,761,188				30,951		2.58	%
Federal Home Loan Bank borrowings		230,184				1,174		2.02	%
Subordinated notes, net of unamortized debt issuance costs		93,817				962		4.07	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,268				1,178		7.75	%
Repurchase agreements		104,070				1,048		4.00	%
Other borrowings		317,913				4,492		5.61	%
Total interest bearing liabilities		5,567,440				39,805		2.84	%
Noninterest bearing deposits		1,441,738
Accrued expenses and other liabilities		109,490
Total liabilities		7,118,668
Shareholders’ equity		770,194
Total liabilities and shareholders’ equity	$	7,888,862
Net interest income (FTE)					$	56,421
Net interest margin (FTE)								3.02	%
Net interest spread (FTE)								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 September 30, 2023, loans totaling $4.3 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)
	Nine Months Ended
	September 30, 2024										September 30, 2023
	Average Balance				Interest			Average Yield/Rate			Average Balance				Interest			Average Yield/Rate
ASSETS
Loans (1)	$	4,589,621			$	211,635		6.16	%		$	4,241,676			$	179,545		5.66	%
Loans held for sale		3,721				53		1.90	%			1,620				69		5.69	%
Securities:
Taxable investment securities (2)		785,422				21,126		3.59	%			843,846				23,216		3.68	%
Tax-exempt investment securities (2)		1,237,884				37,754		4.07	%			1,587,656				48,880		4.12	%
Mortgage-backed and related securities (2)		827,396				33,179		5.36	%			433,335				12,585		3.88	%
Total securities		2,850,702				92,059		4.31	%			2,864,837				84,681		3.95	%
Federal Home Loan Bank stock, at cost, and equity investments		40,565				1,488		4.90	%			25,071				889		4.74	%
Interest earning deposits		320,371				13,105		5.46	%			60,623				2,310		5.09	%
Federal funds sold		57,265				2,347		5.47	%			75,499				2,838		5.03	%
Total earning assets		7,862,245				320,687		5.45	%			7,269,326				270,332		4.97	%
Cash and due from banks		108,325										105,885
Accrued interest and other assets		440,340										406,160
Less: Allowance for loan losses		(43,096	)									(36,564	)
Total assets	$	8,367,814									$	7,744,807
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	602,450				4,368		0.97	%		$	645,415				4,201		0.87	%
Certificates of deposit		1,016,812				34,618		4.55	%			845,851				21,215		3.35	%
Interest bearing demand accounts		3,518,906				76,210		2.89	%			3,005,449				47,120		2.10	%
Total interest bearing deposits		5,138,168				115,196		2.99	%			4,496,715				72,536		2.16	%
Federal Home Loan Bank borrowings		610,893				18,893		4.13	%			281,260				5,347		2.54	%
Subordinated notes, net of unamortized debt issuance costs		92,631				2,829		4.08	%			96,753				2,955		4.08	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,271				3,526		7.81	%			60,266				3,309		7.34	%
Repurchase agreements		87,811				2,821		4.29	%			89,282				2,423		3.63	%
Other borrowings		139,306				6,962		6.68	%			362,684				13,690		5.05	%
Total interest bearing liabilities		6,129,080				150,227		3.27	%			5,386,960				100,260		2.49	%
Noninterest bearing deposits		1,342,945										1,506,431
Accrued expenses and other liabilities		99,758										91,784
Total liabilities		7,571,783										6,985,175
Shareholders’ equity		796,031										759,632
Total liabilities and shareholders’ equity	$	8,367,814									$	7,744,807
Net interest income (FTE)					$	170,460									$	170,072
Net interest margin (FTE)								2.90	%									3.13	%
Net interest spread (FTE)								2.18	%									2.48	%

(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 September 30, 2024 and 2023, loans totaling $7.3 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. 

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																				Nine Months Ended
			2024												2023								2024				2023
		Sep 30,				Jun 30,				Mar 31,				Dec 31,				Sep 30,				Sep 30,				Sep 30,
Reconciliation of return on average common equity to return on average tangible common equity:
Net income		$	20,524			$	24,673			$	21,511			$	17,316			$	18,449			$	66,708			$	69,376
After-tax amortization expense			220				243				266				292				322				728				1,048
Adjusted net income available to common shareholders		$	20,744			$	24,916			$	21,777			$	17,608			$	18,771			$	67,436			$	70,424
Average shareholders' equity		$	806,230			$	796,698			$	785,054			$	737,675			$	770,194			$	796,031			$	759,632
Less: Average intangibles for the period			(203,288	)			(203,581	)			(203,910	)			(204,267	)			(204,658	)			(203,592	)			(205,096	)
Average tangible shareholders' equity		$	602,942			$	593,117			$	581,144			$	533,408			$	565,536			$	592,439			$	554,536
Return on average tangible common equity			13.69	%			16.90	%			15.07	%			13.10	%			13.17	%			15.20	%			16.98	%
Reconciliation of book value per share to tangible book value per share:
Common equity at end of period		$	805,254			$	800,970			$	787,922			$	773,288			$	728,595			$	805,254			$	728,595
Less: Intangible assets at end of period			(203,119	)			(203,397	)			(203,704	)			(204,041	)			(204,411	)			(203,119	)			(204,411	)
Tangible common shareholders' equity at end of period		$	602,135			$	597,573			$	584,218			$	569,247			$	524,184			$	602,135			$	524,184
Total assets at end of period		$	8,362,263			$	8,357,702			$	8,353,863			$	8,284,914			$	7,972,468			$	8,362,263			$	7,972,468
Less: Intangible assets at end of period			(203,119	)			(203,397	)			(203,704	)			(204,041	)			(204,411	)			(203,119	)			(204,411	)
Tangible assets at end of period		$	8,159,144			$	8,154,305			$	8,150,159			$	8,080,873			$	7,768,057			$	8,159,144			$	7,768,057
Period end tangible equity to period end tangible assets			7.38	%			7.33	%			7.17	%			7.04	%			6.75	%			7.38	%			6.75	%
Common shares outstanding end of period			30,308				30,261				30,284				30,249				30,338				30,308				30,338
Tangible book value per common share		$	19.87			$	19.75			$	19.29			$	18.82			$	17.28			$	19.87			$	17.28
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)		$	55,464			$	53,608			$	53,348			$	54,485			$	53,273			$	162,420			$	160,542
Tax-equivalent adjustments:
Loans			608				633				656				680				674				1,897				2,044
Tax-exempt investment securities			2,012				2,051				2,080				2,453				2,474				6,143				7,486
Net interest income (FTE) (1)			58,084				56,292				56,084				57,618				56,421				170,460				170,072
Noninterest income			8,171				11,557				9,724				2,501				10,836				29,452				33,333
Nonrecurring income (2)			2,797				(576	)			18				8,376				(11	)			2,239				(1,006	)
Total revenue		$	69,052			$	67,273			$	65,826			$	68,495			$	67,246			$	202,151			$	202,399
Noninterest expense		$	36,332			$	35,765			$	36,881			$	35,183			$	35,553			$	108,978			$	105,395
Pre-tax amortization expense			(278	)			(307	)			(337	)			(370	)			(407	)			(922	)			(1,327	)
Nonrecurring expense (3)			(219	)			2				17				22				17				(200	)			56
Adjusted noninterest expense		$	35,835			$	35,460			$	36,561			$	34,835			$	35,163			$	107,856			$	104,124
Efficiency ratio			53.94	%			54.90	%			57.95	%			53.30	%			54.86	%			55.56	%			53.99	%
Efficiency ratio (FTE) (1)			51.90	%			52.71	%			55.54	%			50.86	%			52.29	%			53.35	%			51.44	%
Average earning assets		$	7,823,026			$	7,881,919			$	7,882,337			$	7,633,820			$	7,418,157			$	7,862,245			$	7,269,326
Net interest margin			2.82	%			2.74	%			2.72	%			2.83	%			2.85	%			2.76	%			2.95	%
Net interest margin (FTE) (1)			2.95	%			2.87	%			2.86	%			2.99	%			3.02	%			2.90	%			3.13	%
Net interest spread			2.10	%			2.00	%			2.02	%			2.10	%			2.14	%			2.04	%			2.31	%
Net interest spread (FTE) (1)			2.23	%			2.13	%			2.16	%			2.26	%			2.31	%			2.18	%			2.48	%

(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.