Southside Bancshares, Inc. · NYSE:SBSI
Southside Bancshares — IPO Roadshow (August 2025)
27 slides from Southside Bancshares's IPO roadshow presentation, Aug 7, 2025
Slide 1: Subordinated Notes Offering Investor Presentation
1 NYSE: SBSI Subordinated Notes Offering Investor Presentation August 2025 Filed Pursuant to Rule 433 Issuer Free Writing Prospectus Dated August 7, 2025 Registration No. 333 - 271518
Slide 2: Disclaimers
Disclaimers 2 Safe Harbor Disclosure and Forward - Looking Statements Certain statements in this presentation other than historical data and information may constitute “forward - looking statements” within the meaning of and subject to the safe harbor protections of the Private Securities Litigation
Slide 3: Disclaimers (continued)
Disclaimers (continued) 3 Industry and Market Data This presentation includes estimates regarding market and industry data . Unless otherwise indicated, information concerning our industry and the markets in which we operate, including our general expectations, market position, market opportunity, a
Slide 4: Terms of the Proposed Subordinated Debt Offering
1. A rating is not a recommendation to buy, sell or hold securities. Ratings many be subject to revision or withdrawal at any ti me by the assigning rating organization. Each rating organization has its own methodology for assigning ratings and, accordingly, each rating should be eva luated independ
Slide 5: Southside Snapshot
Southside Snapshot Company Overview Financial Highlights ($mm) As of and for the Six Months Ended June 30, As of and for the Years Ended December 31, 2025 2024 2023 Balance Sheet $ 8,340 $ 8,517 $ 8,285 Total Assets 4,602 4,662 4,525 Total Loan (EX HFS) 6,632 6,654 6,550 Total Deposits 807 812 773 T
Slide 6: Experienced Management Team
• Chief Accounting Officer of Southside Bank from 2011 - 2016 • Over 40 years with Southside Lee Gibson, Chief Executive Officer • Board member of William Mann Community Development Corporation • 10 years with Southside and over 35 years of experience in the banking and financial services industry •
Slide 7: Investment Highlights
Conservatively positioned, highly liquid balance sheet History of low credit losses, even in economic downturns Investment Highlights Positioned in solid Texas markets that are supported by long - term population growth 7 Stable profitability across interest rate cycles, supported by excellent low -
Slide 8: Markets of Operation
Source: FDIC (as of 6/30/2024), S&P Market Intelligence, Fortune Magazine Markets of Operation Background and Highlights East Texas 25 • Founded in 1960 in Tyler, TX • Leading deposit market share (38%) in Smith County , TX • Tyler metropolitan area population of approximately 240,000 Dallas – Fort
Slide 9: Geographic Footprint
Geographic Footprint Geographic Footprint consists of 53 branches in Texas, including 12 grocery store branches 9
Slide 10: Balance Sheet Growth
Total Assets ($mm) Total Deposits ($mm) Loans HFI ($mm) Balance Sheet Growth 10 $6,550 $6,198 $5,722 $6,654 $6,632 $3,645 $7,260 $7,559 $8,285 $8,517 $8,340 $4,602 $4,662 $4,525 $4,148 Source: Company documents
Slide 11: Profitability
Profitability Net Income ($mm) Net Interest Income ($mm) ROAA ROATCE (1) Efficiency Ratio (FTE) (1) 1.59% 1.43% 1.11% 1.06% 1.05% 2021 2022 2023 2024 YTD Q2 2025 17.04% 18.56% 16.03% 14.92% 14.26% 2021 2022 2023 2024 YTD Q2 2025 49.03% 47.39% 51.30% 53.52% 54.36% 2021 2022 2023 2024 YTD Q2 2025 11 S
Slide 12: Quarterly Yield & Cost Trends
Source: Company documents 1. Annualized 2. Calculated on a fully taxable - equivalent basis (FTE), a non - GAAP measure. See non - GAAP reconciliation in the Appendix . Quarterly Yield & Cost Trends (1)(2) (1)(2) (1) 12
Slide 13: Loan Portfolio Composition
Loan Portfolio Composition Loan Balances ($mm) Loans 6/30/2025 % $mm Loan Type Real Estate Loans (RE): 10 % $ 470 Construction 16 % 736 1 - 4 Family Residential 57 % 2,606 Commercial RE 8 % 381 Commercial Loans 8 % 364 Municipal Loans 1 % 45 Loans to Individuals 100 % $ 4,602 Total Commercial Loans,
Slide 14: Commercial Loan Concentrations
Multi Family 29% Retail 21% Office 13% Industrial 9% Homebuilding 5% SFR Lot Development 1% Land Development 3% Residential 3% Skilled Nursing 3% Miniwarehouse 3% Leased Medical 3% Raw Land 2% Assisted & Independent Living 2% Hotel 2% Other 1% Commercial Loan Concentrations 14 Investment Real Estate
Slide 15: CRE Concentration
CRE Concentration (1) Bank Consolidated 15 Source: Company documents 1. CRE concentration defined as non - owner occupied CRE loans as a percentage of total capital as outlined in the Joint Guidance on Concentrations in Commercial Real Estate Lending, Sound Risk Management Practices published by the
Slide 16: Asset Quality Trends
Asset Quality Trends NPAs / Loans and OREO (1)(2) Nonaccrual Loans / Loans (1) NCOs / Average Loans ACL / NPLs (1) 16 Source: Company documents 1. Pursuant to our adoption of ASU 2022 - 02, effective January 1, 2023, we prospectively discontinued the recognition and measuremen t guidance previously
Slide 17: Deposit Composition
Deposit Composition Deposit Balances and Rates ($mm) Deposit Mix 6/30/2025 17 % $ mm Deposits 49 % $ 3,235 Interest Bearing Demand 21 % 1,368 Noninterest Bearing 9 % 604 Savings 4 % 253 Retail Time 17 % 1,172 Jumbo Time 100 % $ 6,632 Total Source: Company documents
Slide 18: Liquidity
Liquidity 18 • Liquidity sources remain strong, with $2.33 billion in liquidity lines available as of June 30, 2025. Swapped Total Available for Future Liquidity Borrowings Line of Credit As of June 30, 2025 (in thousands) $ 280,000 $ 1,866,165 $ 511,526 $ 2,377,691 FHLB advances — 383,587 30,000 41
Slide 19: Securities Portfolio Composition
Securities Portfolio Composition Total Securities ($mm) Securities 6/30/2025 % Total AFS HTM (1) Securities ($mm) 5 % $ 134 $ 134 $ — US Treasury 53 % 1,431 389 1,042 State & Political subdivisions 5 % 138 17 121 Corporate Bonds & Other 36 % 993 912 81 Residential 1 % 34 5 29 Commercial 100 % $ 2,73
Slide 20: Capital Ratios
Capital Ratios 20 8.0% 10.0% Bank Only Consolidated Well Capitalized Adequately Capitalized Source: Company documents
Slide 21: Pro Forma Interest Coverage & Double Leverage
Pro Forma Interest Coverage & Double Leverage 21 Three Months Ended, (dollars shown in thousands) 2022 2023 2024 6/30/25 Pro Forma (1) Double Leverage Bank-Level Equity $879,449 $917,035 $940,947 $948,449 $1,010,615 Consolidated Equity 745,997 773,288 811,942 807,200 806,758 Double Leverage Ratio 11
Slide 22: Appendix
Appendix 22 22
Slide 23: Interest Rate Sensitivity
23 Net Interest Income Impact (1) Interest Rate Sensitivity (1.51%) (1.06%) (0.65%) 0.00% 2.69% 5.34% -200 bps -100 bps -50 bps Base +100 bps +200 bps Source: Company documents as of 6/30/2025 1. Estimated change in net interest income reflects immediate rate change for illustrative purposes.
Slide 24: Non-GAAP Financial Measures
This presentation contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States (GAAP) . These non - GAAP financial measures include return on average tangible common equity, tangible book value per common sha
Slide 25: Non-GAAP Reconciliation - Quarterly
As of and for the Three Months Ended, 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 (dollars in thousands, except per share data) $ 21,813 $ 21,507 $ 21,786 $ 20,524 $ 24,673 Net income available to common shareholders 157 176 196 220 243 Plus: After - tax amortization expense $ 21,970 $ 21,683
Slide 26: Non-GAAP Reconciliation - Annual
As of and for the Six Months Ended June 30, As of and for the Year Ended December 31, 2025 2024 2024 2023 2022 2021 (dollars in thousands, except per share data) $ 43,320 $ 46,184 $ 88,494 $ 86,692 $ 105,020 $ 113,401 Net income available to common shareholders 333 509 925 1,341 1,796 2,251 Plus: Af
Slide 27: Thank you
SOUTHSIDE BANCSHARES, INC: NYSE: SBSI Thank you