Here are 1-3 brief analogies for Southside Bancshares (SBSI):

• It's like a regional Bank of America, providing comprehensive financial services primarily to communities in Texas.
• Imagine a local Chase Bank, but serving dozens of communities across East and North Texas.

• Deposit Accounts: Provides various savings, money market, checking, and certificate of deposit accounts for individuals and businesses.
• Consumer Loans: Offers a range of loans including residential mortgages, home equity, home improvement, and automobile loans for individual customers.
• Commercial Loans: Supplies financing solutions such as working capital, equipment, commercial real estate, and municipal loans for businesses and entities.
• Construction Loans: Provides financing for both residential (1-4 family) and commercial real estate construction projects.
• Wealth Management and Trust Services: Delivers investment management, trust administration, and custodian services for individuals, partnerships, and corporations.
• Safe Deposit Services: Offers secure storage solutions for valuable items.
• Brokerage Services: Provides services for buying and selling securities.

Major Customers of Southside Bancshares (SBSI)

Southside Bancshares serves the following categories of customers:

1. Individuals: This includes consumers seeking deposit products (savings, money market, checking, certificates of deposit) and various consumer loans such as 1-4 family residential loans, home equity loans, home improvement loans, and automobile loans. They also offer wealth management, trust, and brokerage services to individuals.
2. Businesses: The bank provides services to commercial entities, including short-term working capital loans for inventory and accounts receivable, short and medium-term loans for equipment or other business capital expansion, and commercial real estate loans. They also offer deposit products to businesses.
3. Municipal Entities and Nonprofit Organizations: Southside Bancshares offers financial services, including loans (e.g., municipal loans) and deposit products, tailored to the needs of governmental bodies and nonprofit organizations.

Keith Donahoe, Chief Executive Officer and President

Keith Donahoe assumed the role of Chief Executive Officer in January 2026 and has served as President since May 2024. He joined Southside Bank in 2021, initially as Austin Market President and then as Central Texas Regional President. Prior to joining Southside, he served as an Executive Vice President of Frost Bank, a regional bank in Texas, for 10 years and has over 30 years of commercial banking experience.

Julie N. Shamburger, Chief Financial Officer

Julie Shamburger has served as Chief Financial Officer of Southside Bancshares and Southside Bank since 2016 and is an advisory director of Southside Bank. She was Executive Vice President and Chief Accounting Officer from 2011 until April 2016. Ms. Shamburger joined Southside Bank in 1982 and possesses over 39 years of accounting experience. She is a graduate of the University of Texas at Tyler.

Mitchell Craddock, Chief Operations Officer

Mitchell Craddock has served as Chief Operations Officer since November 2025. He joined Southside Bank in August 2024 as Executive Vice President and Associate Chief Operations Officer. Before rejoining Southside, Mr. Craddock worked at Q2, a digital banking solutions company, from 2011 to 2024, where his most recent position was Vice President of Premier Services. He also held various information technology and bank operations roles with Southside Bank from 2002 to 2011.

Curtis Burchard, Chief Lending Officer

Curtis Burchard has served as Chief Lending Officer of Southside Bancshares and Southside Bank since June 2024, and is also an advisory director of Southside Bank. He joined the Company in 2023 as Senior Executive Vice President. Prior to Southside, he was with Texas Capital Bank from 2018 to 2023, where his roles included Head of Commercial Real Estate and Head of Real Estate (Commercial Real Estate and Homebuilding). Mr. Burchard has over 40 years of commercial banking experience.

Key Risks to Southside Bancshares (SBSI)

1. Interest Rate Risk: As a financial institution, Southside Bancshares is highly susceptible to interest rate fluctuations. Changes in interest rates can significantly impact the bank's net interest income, affecting both the cost of deposits and the yield on its loan portfolio. Higher interest rates can erode profitability by increasing the need to offer competitive rates on deposits to retain customers. Furthermore, interest rate changes can influence the value of the bank's bond portfolio and the ability of borrowers to refinance commercial real estate loans.
2. Credit Quality and Commercial Real Estate (CRE) Exposure: Southside Bancshares holds a substantial amount of commercial real estate loans, totaling approximately $2.71 billion as of the fourth quarter of 2025. The regional banking sector, including Southside, faces a heightened risk from CRE, with a significant portion of these loans maturing in the near future amid potentially lower property values and weak demand for office spaces. The company has also reported an increase in non-performing loans. Deterioration in credit quality, particularly within the CRE segment, could lead to increased loan defaults and higher provisions for credit losses.
3. Regulatory Changes: Regional banks are continuously exposed to the risk of evolving regulatory landscapes and potential new capital requirements. Increased regulatory scrutiny and mandates could necessitate adjustments to the bank's operations, asset portfolios, and risk management practices, potentially impacting its financial performance and strategic flexibility.

• Rise of digital-only banks (neobanks and challenger banks) that offer lower fees, higher interest rates, and seamless digital user experiences, attracting customers away from traditional brick-and-mortar institutions.
• Emergence of specialized online lenders providing faster, often more competitive consumer, commercial, and mortgage loan products, directly challenging Southside Bancshares' loan origination.
• Growth of robo-advisors and digital wealth management platforms that offer low-cost, automated investment management services, posing a threat to the company's traditional wealth management and trust services.
• Increasing entry of large technology companies into financial services (e.g., Apple's high-yield savings account, Google Pay, payment processing by Amazon) which leverage vast customer bases and technological capabilities to offer banking-like services.

Addressable Markets for Southside Bancshares' Main Products and Services (Region: Texas):

• Deposit Products: The total assets held by Texas state-chartered banks, which include deposit products, amounted to $452.3 billion as of December 31, 2024.
• Real Estate Loans (including 1-4 family residential, home equity, home improvement, commercial real estate, and construction loans): The market size for the Real Estate Loans & Collateralized Debt industry in Texas is projected to be $76.1 billion in 2026. Additionally, the annual transaction volume for commercial real estate in Texas was approximately $120 billion.
• Other Consumer Loans (such as automobile loans and other consumer-related loans): Texans carried an estimated $28–$30 billion in unsecured personal loan debt by early 2025.
• Commercial Loans (short-term working capital, equipment, municipal loans, excluding real estate): Null
• Wealth Management and Trust Services: Null
• Brokerage Services: Null

1. Strategic Loan Growth and Portfolio Diversification: Southside Bancshares anticipates revenue growth driven by expanding its loan portfolio, particularly in commercial and industrial (C&I) lending and commercial real estate. The company is establishing new Loan Production Offices (LPOs) in high-growth areas of Texas, such as Dallas' Preston Center and The Woodlands, to facilitate this expansion. The C&I loan initiative now constitutes a significant portion of the total loan pipeline, indicating a focused effort on this segment.
2. Net Interest Margin (NIM) Expansion and Optimization: The company expects to enhance its net interest income through strategic balance sheet management. This includes restructuring its available-for-sale securities portfolio to improve future yields and redeeming higher-cost subordinated debt, which is projected to lead to further expansion of the net interest margin.
3. Geographic Expansion and Market Penetration: Southside Bancshares is actively pursuing expansion initiatives to deepen its presence in high-growth Texas markets. This involves the completion of new branches in locations like Cleveland, Texas, and the construction of new facilities in areas such as Celina, Texas. This strategic geographic expansion aims to capture market share in underserved or growing regions.
4. Deposit Gathering and Funding Optimization: Growth in core deposits, excluding public funds and brokered deposits, is a key driver for providing stable and lower-cost funding for loan growth. The company focuses on increasing commercial and retail deposits to support its lending activities and maintain a healthy funding structure, which in turn contributes to revenue growth.

Share Repurchases

• In 2021, Southside Bancshares repurchased 938,484 shares at an average cost of $36.39 per share under a previous plan.
• As of March 4, 2022, a new share repurchase plan was authorized for up to 1 million shares with no expiration date.
• The company's stock repurchase plan authorization was increased by 1.0 million shares on October 16, 2025, bringing the total authorized to 2.0 million shares. As of that date, approximately 868,000 shares had been repurchased at an average price of $28.43 per share under the ongoing plan. Approximately 762,000 shares remained authorized for repurchase as of the Q4 2025 earnings call.

Share Issuance

• There were no significant share issuances over the last 3-5 years; the trend in shares outstanding generally indicates a net reduction, consistent with repurchase activities.

Inbound Investments

• No significant inbound investments by third-parties in the company were identified over the last 3-5 years.

Outbound Investments

• No significant strategic outbound investments (acquisitions of other companies) were identified over the last 3-5 years.

Capital Expenditures

• Southside Bancshares invested $7.1 million in capital expenditures in Q4 2025, which primarily funded long-term assets and infrastructure.
• For the last 12 months ending approximately Q4 2025, capital expenditures amounted to $20.34 million.
• In 2026, noninterest expense is projected to increase by 7%, largely due to planned software projects aimed at migrating the bank's core system to an off-premise platform and developing a new data platform.