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Here are a few brief analogies for Southside Bancshares:

• A regional version of Bank of America, focused primarily on Texas.
• Like a smaller, Texas-based PNC Bank.

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• Lending Services: Provision of various types of loans to individuals and businesses, including commercial, real estate, and consumer loans.
• Deposit Services: Offering a range of deposit accounts such as checking, savings, money market, and certificates of deposit to individuals and businesses.
• Wealth Management & Trust Services: Providing investment management, financial planning, and trust administration for individuals and institutional clients.
• Treasury Management Services: Delivering cash management, payment processing, and other financial solutions tailored for business clients.

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Southside Bancshares (symbol: SBSI) is a bank holding company. As such, it does not have "major customers" in the traditional sense of a few large corporate entities purchasing its primary goods or services that would be publicly disclosed. Instead, banks serve a diverse customer base consisting of many individual and business depositors and borrowers across various segments.

Based on its operations, Southside Bancshares primarily serves the following categories of customers:

1. Individuals/Consumers: This category includes everyday people who utilize services such as checking accounts, savings accounts, money market accounts, certificates of deposit (CDs), personal loans, auto loans, credit cards, and residential mortgages.
2. Businesses: Southside Bancshares provides a wide range of services to small to medium-sized businesses (SMBs) and commercial clients. These services include business checking and savings accounts, commercial loans, lines of credit, real estate loans, equipment financing, and treasury management services.
3. Wealth Management Clients: The company also serves high-net-worth individuals, families, and institutional clients (such as non-profits and foundations) through its wealth management division, offering services like investment management, trust services, and financial planning.

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• Computer Services, Inc.
• Visa Inc. (V)
• Mastercard Incorporated (MA)

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Lee R. Gibson III, Chief Executive Officer

Mr. Gibson has served as Chief Executive Officer of Southside Bancshares, Inc. since January 2017. He also served as President of the Company from 2015 to May 2024 and as Chief Financial Officer from 2000 to 2015. Mr. Gibson joined Southside Bank in 1984. He is a Certified Public Accountant and possesses over 35 years of banking experience. He previously held the position of Chairman of the Board of Directors of the Federal Home Loan Bank of Dallas for six years and the Council of Federal Home Loan Banks for two years. He also previously served as a director at Fort Worth Bancshares, Inc.

Julie N. Shamburger, Chief Financial Officer

Ms. Shamburger has served as Chief Financial Officer of the Company and Southside Bank since 2016. Prior to this, she served as Executive Vice President and Chief Accounting Officer from 2011 to April 2016. Ms. Shamburger joined Southside Bank in 1982 and brings over 39 years of accounting experience. She is responsible for the oversight of the Bank's funds management, investor relations, regulatory and Securities and Exchange Commission reporting, and daily accounting practices. Ms. Shamburger is a Certified Public Accountant.

Keith M. Donahoe, President

Mr. Donahoe has served as President of Southside Bancshares, Inc. and Southside Bank since May 2024. He joined Southside Bank in 2021, initially as Austin Market President and subsequently as Central Texas Regional President. Before joining Southside, he was an Executive Vice President at Frost Bank for 10 years, and has over 30 years of commercial banking experience. In his current capacity, he oversees credit and commercial lending activities, as well as information technology and bank operations. Mr. Donahoe is expected to succeed Lee Gibson as Chief Executive Officer and President, effective December 31, 2025.

Curtis Burchard, Chief Lending Officer

Mr. Burchard has served as Chief Lending Officer of the Company and Southside Bank since June 2024. He joined the Company in 2023 as Senior Executive Vice President. From 2018 to 2023, he worked at Texas Capital Bank, where he held positions including Head of Commercial Real Estate and Head of Real Estate. He has more than 40 years of commercial banking experience and is responsible for the oversight of all lending activities in all of the Company's market areas.

Brian K. McCabe, Chief Operations Officer

Mr. McCabe has served as Chief Operations Officer of the Company and Southside Bank since 2017. He previously held the position of Executive Vice President of the Company from 2014 until June 2017. Mr. McCabe joined Southside Bank in 1983 and has since managed various operational and electronic banking areas. Mr. McCabe is scheduled to retire effective November 14, 2025.

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The key risks for Southside Bancshares (SBSI) are primarily financial and competitive in nature, stemming from asset quality concerns, market competition, and sensitivity to economic conditions.

1. Deterioration in Asset Quality and Unrealized Security Losses: Southside Bancshares faces significant risks related to the deterioration of its asset quality and rising unrealized losses on its securities portfolio. The company reported a net loss of $24.4 million on the sale of available-for-sale securities in the third quarter of 2025, a substantial increase from the prior year. Additionally, nonperforming assets surged by 365.1% compared to the same quarter in 2024, indicating a notable decline in asset quality. This includes an increase to 0.39% of total assets due to a commercial real estate loan restructuring.
2. Heightened Competition and Modest Growth Prospects: The company is operating in an environment of heightened competition, particularly from non-bank lenders, which is identified as an ongoing drag on growth and asset quality. Analysts project slower earnings growth and revenue outlook for Southside Bancshares compared to the broader U.S. market averages, with revenue expected to rise only 5.6% annually. This competitive pressure, coupled with a declining net interest margin, could limit the company's long-term upside.
3. Regional Economic Sensitivity and Interest Rate Fluctuations: As a regional bank, Southside Bancshares' performance is directly tied to Texas economic indicators, which present potential volatility risks. The bank is also exposed to interest rate fluctuations, a general challenge for the banking sector. While the bank has shown adaptation to a rising rate environment through margin management, these external economic factors can still impact its financial stability and operational costs.

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The accelerating shift towards digital-first banking, driven by the increasing market penetration of online-only banks, neobanks, and financial technology (fintech) platforms. These entities often offer superior digital user experiences, streamlined services, and potentially more competitive rates due to lower operating costs from the absence of physical branches. This trend challenges the traditional branch-based, relationship-focused business model of regional banks like Southside Bancshares, which relies significantly on its physical footprint and established local presence. As consumer preferences increasingly lean towards digital convenience, SBSI faces an emerging threat of customer attrition and increased pressure to invest heavily in technology to remain competitive, potentially impacting profitability and market share.

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Southside Bancshares (SBSI) is expected to drive future revenue growth over the next two to three years through several key initiatives:

1. Targeted Loan Growth, especially in Commercial & Industrial (C&I) and Commercial Real Estate (CRE)
   Southside Bancshares has set a loan growth target of 3% to 4% year-over-year. A significant portion of this growth is expected from its Commercial & Industrial (C&I) segment, which represented approximately 30% of its total pipeline in Q2 2025, an increase from 25% in the prior quarter. The company is actively expanding its C&I team, notably with four new hires in Houston during the first half of 2025. Additionally, the restructuring of its available-for-sale (AFS) securities portfolio was undertaken to support future loan growth by reinvesting in higher-yielding assets.

2. Net Interest Margin (NIM) Expansion and Net Interest Income (NII) Enhancement
   Management has expressed optimism for continued net interest margin expansion and expects net interest income to improve. The company strategically restructured its AFS securities portfolio by selling lower-yielding assets to enhance future net interest income and provide balance sheet flexibility. This move is anticipated to positively impact NIM and NII, with the payback of the associated loss estimated to be less than four years. The company projects NIM expansion from Q2 to Q4 2025.

3. Strategic Expansion in High-Growth Texas Markets
   Southside Bancshares is focused on organic growth through expanding its branch footprint and loan production offices (LPOs) in high-growth areas within Texas. In early 2024, the company opened LPOs in Dallas' Preston Center and The Woodlands (greater Houston area) to capitalize on expanding customer bases in these regions. The company also anticipates increased merger and acquisition (M&A) activity in Texas, which could present additional growth opportunities. Its strategic positioning in solid Texas markets is supported by long-term population growth.

4. Growth in Noninterest Income, particularly Wealth Management and Trust Services
   The company is working to diversify its revenue streams, with noninterest income showing improvement, driven by an uptick in trust fees. Southside Bancshares anticipates a 16% revenue increase in its wealth management segment, highlighting a focus on expanding these services. The bank offers a broad range of services, including private banking, wealth management, and trust services.

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Share Repurchases

• Southside Bancshares announced a new share repurchase plan in March 2022, authorizing the repurchase of up to 1 million shares with no expiration date. This plan replaced a previous authorization from September 2019 that had been increased to 2 million shares in March 2020.
• In October 2025, the company increased its equity buyback plan authorization by an additional 1 million shares, bringing the total authorization to 2 million shares.
• Since July 2023 and up to October 24, 2025, the company repurchased 868,061 shares for a total of $24.69 million.

Share Issuance

• In November 2020, Southside Bancshares completed a private placement of $100.0 million in fixed-to-floating rate subordinated notes due 2030, which was intended to raise low-cost capital without diluting existing shareholders.
• In August 2025, the company issued $150.0 million of subordinated debt at 7.00% fixed-to-floating rate notes.

Outbound Investments

• In January 2021, the company expressed intentions to pursue attractive bank acquisitions, stating a belief that bank consolidation in Texas would accelerate and aiming to utilize its strong balance sheet, liquidity, and capital position for such opportunities.

Capital Expenditures

• Capital expenditures were approximately $6.50 million in 2021, $7.94 million in 2022, and $6.47 million in 2023.
• Projected capital expenditures for 2024 were approximately $11 million.
• The primary focus of capital expenditures includes maintaining and enhancing its network of branches, drive-thru facilities, ATMs, and ITMs, as well as advancing digital and technology strategies.