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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934

Filed by the Registrant | x

Filed by a Party other than the Registrant | ¨

Check the appropriate box:

o | Preliminary Proxy Statement
o | Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
x | Definitive Proxy Statement
o | Definitive Additional Materials
o | Soliciting Material Pursuant to Sec.240.14a-12

SOUTHSIDE BANCSHARES, INC.
(Name of Registrant as Specified In Its Charter)
N/A
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check all boxes that apply):

x | No fee required.
¨ | Fee paid previously with preliminary materials.
¨ | Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11.

TABLE OF CONTENTS

NOTICE OF ANNUAL MEETING OF SHAREHOLDERS | i
PROXY STATEMENT FOR THE ANNUAL MEETING OF SHAREHOLDERS | 1
VOTING OF PROXY | 1
REVOCABILITY OF PROXY | 2
PERSONS MAKING THE SOLICITATION | 2
RECORD DATE AND OUTSTANDING SHARES | 2
QUORUM, VOTING RIGHTS AND PROCEDURES | 2
EFFECT OF WITHHOLD VOTES, ABSTENTIONS AND BROKER NON-VOTES | 3
PROPOSAL 1 – ELECTION OF DIRECTORS | 3
INFORMATION ABOUT OUR DIRECTORS, NOMINEES AND EXECUTIVE OFFICERS | 4
ENVIRONMENTAL, SOCIAL AND GOVERNANCE | 9
CORPORATE GOVERNANCE | 13
BOARD COMMITTEES | 15
DIRECTOR COMPENSATION | 19
| 2023 Director Compensation Table | 20
DIRECTOR STOCK OWNERSHIP POLICY | 21
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS | 22
COMPENSATION COMMITTEE REPORT | 24
COMPENSATION DISCUSSION AND ANALYSIS | 24
EXECUTIVE COMPENSATION | 31
| Summary Compensation Table | 31
| 2023 All Other Compensation Table | 32
| 2023 Grants of Plan-Based Awards | 33
| Outstanding Equity Awards at 2023 Fiscal Year End | 34
| 2023 Option Exercises and Stock Vested | 35
| 2023 Pension Benefits | 36
| Potential Payments Upon Termination or Change in Control | 38
| Equity Compensation Plan Information | 42
PAY VERSUS PERFORMANCE | 43
| Pay Versus Performance Table | 43
| Compensation Actually Paid Table | 43
PROPOSAL 2 – NON-BINDING ADVISORY VOTE ON EXECUTIVE COMPENSATION | 46
COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION | 46
TRANSACTIONS WITH DIRECTORS, OFFICERS AND ASSOCIATES | 47
DELINQUENT SECTION 16(a) REPORTS | 48
AUDIT COMMITTEE REPORT | 49
INDEPENDENT REGISTERED CERTIFIED PUBLIC ACCOUNTING FIRM | 50
PROPOSAL 3 – RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED CERTIFIED PUBLIC ACCOUNTING FIRM | 50
ANNUAL REPORT TO SHAREHOLDERS | 50
SHAREHOLDER PROPOSALS | 51
HOUSEHOLDING | 51
GENERAL | 51
APPENDIX A |
PROXY CARD |

SOUTHSIDE BANCSHARES, INC.
1201 South Beckham Avenue
Tyler, Texas 75701
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
TO BE HELD WEDNESDAY, MAY 15, 2024
Dear Shareholder:
You are cordially invited to attend the 2024 Annual Meeting of Shareholders (the “Annual Meeting”) of Southside Bancshares, Inc. (the “Company”) to be held at Willow Brook Country Club, 3205 West Erwin Street, Tyler, Texas 75702, on Wednesday, May 15, 2024, at 11:30 a.m., central time, for the purpose of considering and acting upon the following:
1.the election of five nominees named in this proxy statement to serve as members of the Board of Directors of the Company (the "Board”), four of whom are to serve until the 2027 Annual Meeting of Shareholders and one to serve until the 2025 Annual Meeting of Shareholders;
2.a non-binding advisory vote on the compensation of the Company's named executive officers;
3.the ratification of the appointment by our Audit Committee of Ernst & Young LLP (“EY”) to serve as the independent registered certified public accounting firm for the Company for the year ending December 31, 2024; and
4.the transaction of such other business that may properly come before the Annual Meeting or any adjournment thereof.
Management will also report on operations and other matters affecting the Company. You will be able to ask the Company’s officers and directors questions at the Annual Meeting. Representatives from EY, the Company’s independent registered certified public accounting firm, are expected to be in attendance and available to answer your appropriate questions or make a statement if they so desire.
Only shareholders registered on the Company’s books as owners of shares of common stock at the close of business on March 20, 2024, are entitled to vote at the Annual Meeting, which we refer to as the record date.
Your attendance and vote are important. Please sign, date and return the enclosed proxy immediately in the envelope provided or you may vote your shares by telephone or Internet. It is important that you sign and return the proxy or vote by telephone or Internet, even if you plan to attend the Annual Meeting. Your proxy may be revoked by notice in writing to the Corporate Secretary at the Company’s principal executive office, located at 1201 South Beckham Avenue, Tyler, Texas 75701, at any time prior to the Annual Meeting, or by advising the Corporate Secretary at the Annual Meeting that you wish to revoke your proxy and vote your shares in person.

| By Order of the Board of Directors,
| /s/ John R. (Bob) Garrett
| John R. (Bob) Garrett
| Chairman of the Board

Tyler, Texas
March 27, 2024
Important Notice Regarding the Availability of Proxy Materials
for the Annual Meeting of Shareholders to be held Wednesday, May 15, 2024:
The Company's Proxy Statement and 2023 Annual Report on Form 10-K are available on the Company's website at https://southside.com/proxy.
WHETHER OR NOT YOU PLAN TO ATTEND THE MEETING, IT IS REQUESTED THAT YOU PROPERLY EXECUTE AND PROMPTLY RETURN THE ENCLOSED FORM OF PROXY IN THE ENCLOSED ADDRESSED ENVELOPE OR VOTE YOUR SHARES BY TELEPHONE OR INTERNET.
i

SOUTHSIDE BANCSHARES, INC.
1201 South Beckham Avenue
Tyler, Texas 75701
PROXY STATEMENT
FOR THE
ANNUAL MEETING OF SHAREHOLDERS
TO BE HELD ON WEDNESDAY, MAY 15, 2024
TO OUR SHAREHOLDERS:
This proxy statement is being furnished to holders of the common stock of Southside Bancshares, Inc. (the “Company”) in connection with the Company’s 2024 Annual Meeting of Shareholders (the “Annual Meeting”) to be held at Willow Brook Country Club, 3205 West Erwin Street, Tyler, Texas 75702, on Wednesday, May 15, 2024, at 11:30 a.m., central time, for the purpose of considering and acting upon the following:
1.the election of five nominees named in this proxy statement to serve as members of the Board of Directors of the Company (the "Board”), four of whom are to serve until the 2027 Annual Meeting of Shareholders and one to serve until the 2025 Annual Meeting of Shareholders;
2.a non-binding advisory vote on the compensation of the Company's named executive officers;
3.the ratification of the appointment by our Audit Committee of Ernst & Young LLP (“EY”) to serve as the independent registered certified public accounting firm for the Company for the year ending December 31, 2024; and
4.the transaction of such other business that may properly come before the Annual Meeting or any adjournment thereof.
This Proxy Statement and a proxy card, as well as the Company's Annual Report on Form 10-K for the year ended December 31, 2023, including financial statements, are first being sent or made available to shareholders on or about April 1, 2024.
You are encouraged to review all of the information contained in the proxy materials before voting.
VOTING OF PROXY
If your proxy is executed and returned, it will be voted as you direct. If no direction is provided, the proxy will be voted in accordance with the Board’s recommendations, as follows:
•FOR the election of all of the nominees named in this proxy statement as directors;
•FOR the approval of the advisory vote on the compensation of the Company's named executive officers; and
•FOR the ratification of the appointment of EY.
The proxies will use their discretion with respect to voting on any other matters presented for a vote at the meeting. Additionally, if your proxy is executed and returned, it will be voted to approve the minutes of the 2023 Annual Meeting of Shareholders. This vote will not amount to a ratification of any action taken at that meeting nor will it indicate approval or disapproval of that action.
If your shares are registered in your name as the shareholder of record, you may vote by mail, telephone or Internet by following the instructions below. Voting instructions also appear on your proxy card. If you grant a proxy by telephone or by Internet, please have your proxy card available.
•To vote by mail, complete, sign, and return the enclosed proxy card in the postage paid envelope provided or return to: Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, New York, 11717.
•To vote by telephone, call toll free 1-800-690-6903 within the United States (“U.S.”), U.S. territories and Canada on a touch tone telephone by 11:59 p.m. eastern time on May 14, 2024. Have your proxy card in hand and follow the instructions.
•To vote by Internet, access the voting site at www.proxyvote.com. You will need the control number printed on your notice or proxy card.
The telephone and Internet voting procedures are designed to authenticate the shareholder's identity and to allow shareholders to vote their shares and confirm that their voting instructions have been properly recorded. Shareholders who vote by telephone or Internet do not need to return the proxy card.
If you hold your shares in “street name” in a stock brokerage account or through a bank, trust or other nominee, the broker or other nominee is considered the record holder and you are the beneficial owner of the shares. Beneficial owners vote their street name shares by instructing their broker or other nominee how to vote using the voting instruction form provided by the broker or nominee. Brokers only have authority to vote in their discretion on “routine” matters if they do not receive voting instructions from the beneficial owner of the shares.
Southside Bancshares, Inc. | 2024 Proxy Statement | 1

Please note that the proposal to elect directors and the advisory vote on the compensation of the Company's named executive officers (the “Say-on-Pay” vote) are not considered routine matters. Consequently, if you do not give your broker or nominee specific voting instructions with respect to such proposals, your street name shares will be treated as broker non-votes with respect to those proposals (see “Quorum, Voting Rights and Procedures” below) and will have no effect on the outcome of such proposals. The proposal to ratify the Audit Committee’s appointment of EY as the Company’s independent registered public accounting firm is considered a routine matter.
If you hold your shares in street name and want to vote at the Annual Meeting, you must obtain from your broker or nominee a legal proxy issued in your name giving you the right to vote the shares directly at the meeting. You will not be entitled to vote at the meeting unless you present such a proxy to the Company at that time.
REVOCABILITY OF PROXY
Your proxy may be revoked by providing notice in writing to the Corporate Secretary at the Company’s principal executive offices, located at 1201 South Beckham Avenue, Tyler, Texas 75701, at any time prior to the Annual Meeting, or by advising the Corporate Secretary at the Annual Meeting that you wish to revoke your proxy and vote your shares in person. Your attendance at the Annual Meeting will not constitute automatic revocation of the proxy.
PERSONS MAKING THE SOLICITATION
The Company’s Board is soliciting the proxy. The expense of soliciting your proxy will be borne entirely by the Company and no other person or persons will bear such costs either directly or indirectly. Proxies will be solicited principally by mail, but may also be solicited by personal interview, telephone and email by directors, officers and employees of the Company who will receive no additional compensation.
RECORD DATE AND OUTSTANDING SHARES
The Company’s Board has fixed the close of business on March 20, 2024, as the record date for determining the holders of common stock of the Company entitled to notice of and to vote at the Annual Meeting. At the close of business on March 20, 2024, there were approximately 30,282,697 shares of common stock outstanding and eligible to be voted on each matter.
QUORUM, VOTING RIGHTS AND PROCEDURES
The approval of all of the proposals brought before the Annual Meeting requires that a quorum be present at the Annual Meeting. The presence, in person or by properly submitted proxy, of the holders of a majority of the shares of common stock entitled to vote at the Annual Meeting is necessary to constitute a quorum. In the event that a quorum is not represented in person or by proxy at the Annual Meeting, a majority of shares present or represented at the meeting and entitled to vote at the meeting may adjourn the Annual Meeting to a later date to allow the solicitation of additional proxies or other measures to obtain a quorum. Each shareholder is entitled to one vote on each proposal per share of common stock held as of the record date.
Proposal 1, the election of four directors to serve until the 2027 Annual Meeting and one director to serve until the 2025 Annual Meeting, requires the affirmative vote of a majority of the votes cast by the holders of shares of common stock entitled to vote in the election of directors; provided, however, that if, as of the record date, the number of nominees for director exceeds the number of positions on the Board to be filled by election at such meeting, or a “contested election,” then the directors shall be elected by a plurality of the votes cast. A “majority of the votes cast” means that the number of shares cast “for” a director’s election exceeds the number of shares cast “against” a director’s election, with abstentions and broker non-votes counting as votes neither “for” nor “against” such director’s election. A “plurality of the votes cast” means that the director nominees who receive the highest number of “for” votes will be elected to the Board. The Board has proposed five nominees for election at the Annual Meeting. No other nominees for election to the Board have been submitted for election in accordance with our bylaws. Thus, the Board has determined that this is not a contested election, and each director nominee will be elected by a majority of the votes cast.
Under our bylaws, any incumbent director who is a nominee in an uncontested election who does not receive a majority of the votes cast shall promptly tender his or her resignation to the Board, the effectiveness of which will be conditioned upon and subject to acceptance by the Board. The Corporate Governance and Nominating Committee will make a recommendation to the Board as to whether to accept or reject the tendered resignation or whether other action should be taken, after which the Board will vote to decide whether to accept the recommendation of the Corporate Governance and Nominating Committee and will promptly disclose that decision and the rationale behind its decision.
Proposal 2, the non-binding Say-on-Pay vote, and Proposal 3, the ratification of EY as the Company’s independent registered certified public accounting firm, and any other matter that may properly come before the Annual Meeting, require approval by a majority of the shares of common stock entitled to vote on, and voted for or against, or expressly abstained from voting, with respect to the matter.
Southside Bancshares, Inc. | 2024 Proxy Statement | 2

EFFECT OF WITHHOLD VOTES, ABSTENTIONS AND BROKER NON-VOTES
Shares represented at the Annual Meeting that are withheld or abstain from voting and broker non-votes votes (i.e., the submission of a proxy by a broker or nominee specifically indicating the lack of discretionary authority to vote on the matter) will be considered present for the purpose of determining a quorum at the Annual Meeting.
For Proposal 1, abstentions and broker non-votes will not be counted in determining whether a director has received a majority of the votes cast for his or her election.
For Proposals 2 and 3, and for any other matter that may properly come before the meeting, abstentions will be included in vote totals and, as such, will have the same effect on those proposals as a vote against such proposals. Broker non-votes will not be included in vote totals and, as such, will have no effect on such proposals.

PROPOSAL 1 - ELECTION OF DIRECTORS

The Board is currently comprised of 15 directors. The Board is classified into three classes, one of which is currently comprised of six directors, one class of four directors, and one class comprised of five directors. As previously disclosed, Herbert C. Buie will retire from the Board, effective as of the Annual Meeting. The Board is nominating a new director to the Board, Kirk A. Calhoun, M.D. If the proposed nominees are elected, following the Annual Meeting, the Board will continue to be comprised of 15 directors, with one class of eight directors, one class of four directors and one class of three directors. Under NASDAQ listing rules, a majority of the Board must be comprised of independent directors. The Board has determined that each director nominee is independent under NASDAQ listing rules.
The four nominees for election at the Annual Meeting to serve a three-year term expiring at the 2027 Annual Meeting and one nominee for a one-year term expiring at the 2025 Annual Meeting are identified below.
Term Expiring 2027
•S. Elaine Anderson, CPA
•Kirk A. Calhoun, M.D.
•Patricia A. Callan
•John R. (Bob) Garrett
Term Expiring 2025
•Tony K. Morgan, CPA
All of the nominees, except for Kirk A. Calhoun, M.D., are currently directors of the Company, and the Company's subsidiary, Southside Bank, and were previously elected to the Board by the Company's shareholders. For biographical information on the nominees, please see “Information About Our Directors, Nominees and Executive Officers.”
Unless otherwise instructed, proxies received in response to this solicitation will be voted in favor of the election of the persons recommended by the Corporate Governance and Nominating Committee and nominated by the Board as nominees for directors of the Company. While it is not expected that any of the nominees will be unable to qualify or accept office, if for any reason one or more of the nominees shall be unable to do so, the proxies will be voted for the substitute nominee(s) selected by the Board.
The Board recommends a vote FOR the election of each of the director nominees.
Southside Bancshares, Inc. | 2024 Proxy Statement | 3

INFORMATION ABOUT OUR DIRECTORS, NOMINEES AND EXECUTIVE OFFICERS

The following table sets forth information regarding our current directors and director nominees and their knowledge, skills and experience attributes.

Directors and Nominees | Age | Director Since | Gender | Ethnicity | Knowledge, Skills and Experience
Executive Experience | Banking/Financial Services Industry | CRE(1) | Accounting/Audit | Risk | Strategic Planning | Corporate Governance | Legal(2) | IT(3) | HR(4)
Lawrence Anderson, M.D. | 67 | 2010 | Male | White | ü |  |  |  |  | ü |  |  | ü |
S. Elaine Anderson, CPA | 71 | 2014 | Female | White | ü | ü |  | ü | ü | ü | ü | ü | ü |
Michael J. Bosworth | 73 | 2017 | Male | White | ü |  |  | ü | ü | ü |  |  |  |
Herbert C. Buie(5) | 93 | 1988 | Male | White | ü | ü | ü |  |  | ü | ü |  |  |
Kirk A. Calhoun, M.D. | 71 | — | Male | African American | ü |  |  | ü |  | ü | ü |  |  |
Patricia A. Callan | 65 | 2014 | Female | White | ü | ü |  |  |  | ü | ü |  |  | ü
Shannon Dacus | 55 | 2020 | Female | Hispanic |  | ü |  |  |  |  |  | ü |  |
Alton L. Frailey | 62 | 2022 | Male | African American | ü |  | ü |  |  | ü | ü |  |  |
John R. (Bob) Garrett | 70 | 2009 | Male | White | ü |  | ü |  |  | ü |  |  |  |
Lee R. Gibson, CPA | 67 | 2015 | Male | White | ü | ü | ü | ü | ü | ü | ü | ü | ü | ü
George H. (Trey) Henderson, III | 65 | 2018 | Male | White | ü |  | ü |  |  | ü | ü |  |  |
Tony K. Morgan, CPA | 74 | 2017 | Male | White | ü |  |  | ü |  | ü |  |  |  |
John F. Sammons, Jr. | 74 | 2017 | Male | White | ü |  |  |  |  |  |  |  |  |
H. J. Shands, III | 68 | 2017 | Male | White | ü | ü |  |  |  | ü | ü | ü |  |
Preston L. Smith | 68 | 2009 | Male | White | ü |  | ü |  | ü | ü | ü | ü |  |
Donald W. Thedford | 74 | 2009 | Male | White | ü |  |  |  |  | ü |  |  |  |

(1) Commercial Real Estate (“CRE”), including construction.
(2) Includes regulatory and compliance.
(3) Information Technology (“IT”), which includes information security.
(4) Human Resources (“HR”), which includes executive compensation.
(5) Retiring from the Board effective as of the Annual Meeting.
The following table is presented in accordance with Nasdaq Listing Rules 5605 and 5606. To see our Board Diversity Matrix as of March 29, 2023, please see our Proxy Statement filed with the SEC on March 29, 2023.

Board Diversity Matrix (as of March 27, 2024)
Board Size:
Total Number of Directors | 15
Gender: | Male | Female | Non- Binary | Gender Undisclosed
Number of directors based on gender identity | 12 | 3 | — | —
Number of directors who identify in any of the categories below:
African American or Black(1) | 1 | — | — | —
Alaskan Native or American Indian | — | — | — | —
Asian | — | — | — | —
Hispanic or Latinx | — | 1 | — | —
Native Hawaiian or Pacific Islander | — | — | — | —
White | 11 | 2 | — | —
Two or More Races or Ethnicities | — | — | — | —
LGBTQ+ | —

(1) Following the Annual Meeting, if the director nominees are elected by the Company’s shareholders, the number of directors who identify as African American or Black will total two.
Southside Bancshares, Inc. | 2024 Proxy Statement | 4

The following table sets forth information regarding our director nominees, our continuing directors and our current executive officers. Our Board is divided among three classes.

NOMINEES FOR DIRECTOR TERMS TO EXPIRE AT THE 2027 ANNUAL MEETING |
S. ELAINE ANDERSON, CPA (71) – Ms. Anderson has a BBA with a major in accounting from Indiana University and has been a licensed CPA since 1976. She served as a director of OmniAmerican from 1996 to December 17, 2014 and as independent Chairperson of the Board from May 2010 to December 17, 2014, when OmniAmerican Bancorp, Inc. (“OmniAmerican”) was acquired by the Company. She served for 24 years with Texas Health Resources as Senior Vice President and Chief Compliance Officer prior to retiring in January 2016. In that role, she had responsibilities for compliance, privacy, information security and enterprise risk management. Texas Health Resources is one of the largest nonprofit healthcare systems in the U.S. Her prior professional experience includes serving in various positions with the international accounting firm, PricewaterhouseCoopers from 1980 to 1991. Ms. Anderson currently serves as the Treasurer for Arborlawn United Methodist Church Foundation. Her memberships have included the American Institute of Certified Public Accountants, the Texas Society of Certified Public Accountants and the Health Care Compliance Association. Ms. Anderson's public accounting experience, understanding of financial statements and experience as the Chief Compliance Officer for a large healthcare system, qualify her to be a member of the Board. |
KIRK A. CALHOUN, M.D. (71) – Dr. Calhoun has served as the President of The University of Texas (“UT”) at Tyler since 2002 and will retire as of May 31, 2024. Dr. Calhoun started his medical career in Internal Medicine private practice and subsequently pursued his passion in academic medicine. He has served in academic medical leadership positions for over 40 years, in many different roles including Corporate Medical Director of UT Medical Branch at Galveston (UTMB) HealthCare Systems, Senior Vice President of Parkland Hospital, the Associate Dean of Clinical Affairs at the UT Southwestern Medical School and subsequently serving a combined 22 years as President of UT at Tyler and The UT Health Science Center at Tyler. Dr. Calhoun also serves as chairman of the board of directors for the UT Health East Texas Health System, is on the executive committee of Teaching Hospitals of Texas and is the immediate Past Chair of the American Association of Medical Colleges Board of Directors. Dr. Calhoun has received numerous awards for his work and leadership in healthcare, public health, higher education delivery and community service, including the prestigious Doctor Luke Society and the T.B. Butler Citizen of the Year Award in 2021. Dr. Calhoun’s extensive executive experience, combined with business management and leadership skills, qualify him to be a member of the Board. |
PATRICIA A. CALLAN (65) – Ms. Callan is a principal of Callan Consulting, which has provided sales management, insurance, managed care and healthcare related consulting services in the Dallas/Fort Worth area since 2001. She previously held executive management positions in Texas and Kentucky for regional and national insurance companies and owned an independent insurance agency in Lexington, Kentucky. She also served on the Board of Directors of OmniAmerican from 2006 to December 17, 2014, when OmniAmerican was acquired by the Company. Ms. Callan holds a Texas General Lines License. Ms. Callan’s extensive business management and leadership experience qualify her to be a member of the Board. |
JOHN R. (BOB) GARRETT (70) – Mr. Garrett is a residential and commercial real estate developer and has served as the President of Fair Oil Company, a Tyler based oil and gas exploration and production company, since 2002. Mr. Garrett is also President of the R. W. Fair Foundation and a member of the University of Texas at Tyler Development Board and the UT Tyler School of Medicine Admissions Committee. He is a former Chairman of the Board of Regents at Stephen F. Austin State University. He is a past president of both the Tyler Area Builders Association and the Texas Association of Builders. Mr. Garrett brings to our Board extensive knowledge in the areas of residential and commercial real estate and oil and gas, as well as management, leadership and business skills and experience serving on numerous boards, all of which qualify him to be a member of the Board. |
NOMINEE FOR DIRECTOR TERM TO EXPIRE AT THE 2025 ANNUAL MEETING |
TONY K. MORGAN, CPA (74) – Mr. Morgan is a Certified Public Accountant, and retired on January 1, 2021 from Gollob Morgan Peddy P.C., an East Texas public accounting firm in which he was a founding partner. He began his career as an accounting professional in 1972 and specialized in Business Valuation and Litigation Support. In addition to being a CPA, he is also accredited in Business Valuation and certified in Financial Forensics. Mr. Morgan is a graduate of Stephen F. Austin State University and has served in various community service roles for organizations including East Texas Communities Foundation, Tyler Salvation Army Board, Children’s Village, the East Texas Area Council and Boy Scouts of America. Mr. Morgan’s extensive financial background, including being a founding partner of an accounting firm, qualifies him to be a member of the Board. |
DIRECTORS CONTINUING UNTIL THE 2026 ANNUAL MEETING |
LAWRENCE ANDERSON, M.D. (67) – Dr. Anderson was the founder of Dermatology Associates of Tyler and served as the medical director from 1996 to 2012. He then served as Chief Medical Officer for Oliver Street Dermatology from 2012 to 2016 and in the same role for U.S. Dermatology Partners until 2019. He is a graduate of Washington State University and Uniformed Services University of Health Sciences in Bethesda, Maryland. He is a published author with a number of publications, presentations and lectures to his credit. Dr. Anderson’s management, leadership skills and healthcare industry knowledge, combined with his knowledge of business and finance, qualify him to be a member of the Board. |

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H. J. SHANDS, III (68) – Mr. Shands retired on April 30, 2020 as Southside Regional President, East Texas, a role he held since the acquisition of Diboll State Bancshares, Inc. by the Company on November 30, 2017. He previously served as President and CEO of First Bank & Trust East Texas for 26 years and was Treasurer of Temple Inland Inc., a major manufacturer of corrugated packing and building products, with diversified banking and financial services operations. Mr. Shands served as Vice Chairman of the Finance Commission of Texas where he represented the banking industry for 8 years. He is a Trustee for the T.L.L. Temple Foundation and the I.D. and the Marguerite Fairchild Foundation. He is currently a director for Contractor's Supply Inc. He also served on the Board of Directors and was Past Chairman for CHI Memorial Health Center of East Texas, City of Lufkin 4B Economic Development and First Bank of Conroe, N.A. Mr. Shands' over 40 years of banking experience, leadership, business development and management skills qualify him to be a member of the Board. |
PRESTON L. SMITH (68) – Mr. Smith has been the President and owner of PSI Production, Inc., a petroleum exploration and production company since 1985. He is a member of the Independent Petroleum Association of America and served as Northeast Texas Representative to the Board of Directors from 1999 to 2005. Mr. Smith is a managing member of Wildwood Environmental Credit Company, which serves as the conservation steward for over 40,000 acres of protected, high value ecosystems including the Pineywoods Mitigation Bank. Mr. Smith served on the Board of Trustees for All Saints Episcopal School of Tyler from 1994 to 2014, is a member of the CHRISTUS Trinity Mother Frances Health System Board, and a member of the University of Texas at Tyler Engineering School Advisory Board. Mr. Smith’s management and leadership skills, combined with his knowledge of the oil and gas industry, emerging environmental credit markets and the health care industry, qualify him to be a member of the Board. |
DIRECTORS CONTINUING UNTIL THE 2025 ANNUAL MEETING |
MICHAEL J. BOSWORTH (73) – Mr. Bosworth joined Bosworth & Associates in 1977 as an Independent Insurance Agent and Risk Manager and has served as the President and CEO of Bosworth & Associates since 1987. He has attained Certified Insurance Counselor, Certified Work Compensation Advisor and Accredited Advisor of Insurance certificates and has extensive experience in Risk Management. Mr. Bosworth graduated from Texas Tech University. He is currently on the Board and Executive Committee of Combined Agents of America, President of the board of TMF Covenant Corporation, and a member of the board of directors of Tyler Economic Development Council. Mr. Bosworth is a member of Christ Episcopal Church where he has served on the Vestry as the Senior Warden and chairman of the Endowment Committee. In addition to his current board commitments, he has also served on the following boards: East Texas Communities Foundation, Tyler Economic Development Council, All Saints Episcopal School, American Red Cross of Smith County, Children's Village, Independent Insurance Agents of Tyler and the Independent Insurance Agents of Texas. Mr. Bosworth's extensive insurance industry knowledge and experience, as well as his leadership and risk management skills, qualify him to be a member of the Board. |
SHANNON DACUS (55) – Ms. Dacus is President and owner of the Dacus Firm, a minority and female-owned law firm in Tyler, Texas. She has been a licensed and practicing attorney since 1994, with a focus on business litigation. She currently serves as the president of both the CHRISTUS Northeast Texas and the Bethesda Health Clinic boards of directors. She also serves as chair of the Tyler Area Chamber of Commerce and on the board of the Tyler Economic Development Council. She served on the board of an East Texas bank for almost 5 years, where she served as a member of the Audit Committee and Chair of the Risk and Compliance Committee. Ms. Dacus holds the distinction of being the first Hispanic female to chair the boards of the Tyler Area Chamber, CHRISTUS Northeast Texas, the Texas Bar Foundation and the Tyler Economic Development Council, among others. She has received numerous honors including the Adelante Award and Professional of the Year award from the Hispanic Business Alliance, the Legacy of Service Award from Women in Tyler, and the Award of Excellence from the Smith County Bar Association. Ms. Dacus' extensive legal background, as well as her business management and leadership skills, qualify her to be a member of the Board. |
ALTON L. FRAILEY (62) – Mr. Frailey is President of Alton L. Frailey & Associates, LLC, specializing in leadership development, community engagement, school board team building, and executive coaching. Mr. Frailey earned his bachelor’s degree in Elementary Education and master’s degree in Educational Administration from Stephen F. Austin State University. He received his superintendent certification from the University of Texas at Tyler. Mr. Frailey has been involved in education for 37 years, serving most recently as the past superintendent for Katy Independent School District, as well as one other district in Texas and one in Ohio. Mr. Frailey served as past chair of the Stephen F. Austin State University Board of Regents, president of the American Association of School Administrators, the Texas Association of School Administrators, and the Urban Superintendents Association of America, as well as chairman of the University Interscholastic League Legislative Council. He served on the boards of directors for the Katy Area Chamber of Commerce, Katy Area Economic Development Council, Junior Achievement of Southeast Texas, West Houston Association and The Bible Seminary. Mr. Frailey has received numerous honors and awards including Texas Music Educators Association Distinguished Administrator, Region 4 Administrator of the Year, Who’s Who in Executives and Professionals, and the Trailblazer Award by South Dallas Business and Professional Women’s Club, Inc. Mr. Frailey's extensive executive experience and knowledge of leadership development, qualify him to be a member of the Board. |
LEE R. GIBSON, CPA (67) – Mr. Gibson has served as President and Chief Executive Officer (“CEO”) of the Company since January 2017. He has served as President of the Company since December 2015 and served as an executive and the Chief Financial Officer (“CFO”) of the Company from 2000 to 2015. He joined Southside Bank in 1984 and is also a director of Southside Bank. He currently serves as a Director of the Texas Bankers Association, Director and Executive Committee Member of the Tyler Economic Development Council and serves as a Board member of the R.W. Fair Foundation and Bethesda Health Clinic. He previously served as Chairman of the Board of Directors of the Federal Home Loan Bank of Dallas for six years and Council of Federal Home Loan Banks for two years. Mr. Gibson has over 39 years of banking experience, is a CPA and has extensive financial knowledge, which qualify him to be a member of the Board. |

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GEORGE H. (TREY) HENDERSON, III (65) – Mr. Henderson is the owner of Henderson Mineral, Inc. and a graduate of Texas A&M University with a bachelor's degree of Science in Agricultural Economics. Mr. Henderson currently serves on the Board of Directors for Brookshire Brothers, the Pineywoods Foundation and the George H. Henderson, Jr. Expo Center, and as trustee for the Texas A&M University 12th Man Foundation. He has worked closely with the Lufkin/Angelina Economic Development Board to bring new businesses to Angelina County. He previously served on the Board of Directors for First Bank & Trust East Texas. Mr. Henderson's extensive business management and leadership experience, as well as knowledge of the agriculture industry, qualify him to be a member of the Board. |
JOHN F. SAMMONS, JR. (74) – Mr. Sammons is the current Chairman and Chief Executive Officer of Mid States Services, Inc., a nationwide distributor of products and services to the corrections industry. He is also the owner of Temple Supply Company with investments in various non-public businesses related to sales to the convenience store industry. Mr. Sammons enjoyed an extensive public service career serving as mayor of Temple, Texas and also served on the Board of the Texas Department of Commerce among numerous other state and national appointments. He was Vice Chairman of the Board of Directors of OmniAmerican from 2009 until December 17, 2014, when OmniAmerican was acquired by the Company. Mr. Sammons' extensive business management background, knowledge of business and finance and skills leading numerous endeavors over 40 years qualify him to be a member of the Board. |
DONALD W. THEDFORD (74) – Mr. Thedford has been the owner and President of Don’s TV & Appliance, Inc., a home appliance and electronics store, since 1979. He is a member of the National Appliance Retail Dealers Association and the Nationwide Marketing Group. Mr. Thedford currently serves as a board member of the Smith County Sheriff's Foundation and has previously served on the Board of Directors of the Tyler Area Chamber of Commerce, Better Business Bureau of East Texas, KitchenAid Trade Partner Council, Retail Dealers Association and The Salvation Army. Mr. Thedford’s management and leadership skills operating his business for over 40 years, combined with his overall knowledge of business and finance, qualify him to be a member of the Board. |

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EXECUTIVE OFFICERS
TIM ALEXANDER (67) – Mr. Alexander currently serves as the Chief Lending Officer (“CLO”) of the Company and Southside Bank, a position he has held since 2017, and is an advisory director of Southside Bank. He will retire from the Company and the Bank on May 31, 2024. Prior to his current role, he served as Regional President of East Texas from 2014 to 2017. In his current role, he is responsible for oversight of all lending activities in all market areas. Mr. Alexander joined Southside in 2005 and is a graduate of the University of Texas at Austin with over 35 years of commercial lending experience. He currently serves as the Treasurer of Christ Episcopal Church in Tyler, Texas.
SHERRI ANTHONY (64) – Ms. Anthony currently serves as Chief Banking Officer of Southside Bank, a position she has held since January 1, 2024. She joined Southside Bank in 2017, upon the acquisition of Diboll State Bancshares, Inc, where she served as Chief Compliance Officer with First Bank and Trust East Texas. Prior to her current role, she served as Senior Vice President and Retail Market Manager of Southside Bank from 2017 until December 2023. In her current role, she is responsible for retail banking and operations in all regions. Ms. Anthony is a graduate of the University of West Alabama and has over 40 years of banking experience. She is involved with the Salvation Army, Angelina Chamber of Commerce and Leadership Alumni Association.
T. L. ARNOLD, JR. (60) – Mr. Arnold currently serves as Chief Credit Officer (“CCO”) of the Company and of Southside Bank, a position he has held since March 2019, as well as advisory director of Southside Bank. He previously served as Executive Vice President and Senior Credit officer of Southside Bank from December 2014 until March 2019. He joined Southside Bank in December 2014, upon the acquisition of OmniAmerican Bank, where he served as Senior Executive Vice President and Chief Credit Officer. Mr. Arnold is a graduate of The University of Texas at Arlington and has over 39 years' experience in the banking and financial services industry. He serves on the Board of Directors for William Mann Community Development Corporation and is actively involved in Meals on Wheels of Tarrant County.
SUNI DAVIS, CPA (48) – Ms. Davis currently serves as Chief Risk Officer (“CRO”) of the Company and Southside Bank, a position she has held since June 2016. Prior to her current role, she served as Senior Vice President and Investment Officer from December 2012 to June 2016. Ms. Davis obtained her BBA degrees in Finance and Accounting from the University of Texas at Tyler, is a Certified Public Accountant and holds a Certified Enterprise Risk Professional certification from the American Bankers Association. She joined Southside Bank in 1999 and is responsible for funds management, liquidity and interest rate risk, as well as enterprise risk. Ms. Davis is a member of the American Institute of Certified Public Accountants, the Texas Society of Certified Public Accountants and the East Texas Chapter of the Texas Society of Certified Public Accountants. Ms. Davis currently serves on the American Banker's Association Risk Management School Board of Advisors.
KEITH DONAHOE (53) – Mr. Donahoe currently serves as Regional President, Central Texas, a position he has held since 2021. Upon joining Southside Bank in 2021, he first served as Austin Market President. Prior to joining Southside, he served as an Executive Vice President of a regional bank in Texas, Frost Bank, for 10 years. In his current role, he is responsible for strategic planning, business development, and implementation of lending operations in the Central Texas region. Mr. Donahoe is a graduate of Texas Tech University with over 30 years of commercial banking experience. Mr. Donahoe previously served as Board Chair of both the Health Alliance for Austin Musicians and the Real Estate Council of Austin, and continues to serve as a Board member for both organizations.
MARK W. DRENNAN (50) – Mr. Drennan currently serves as Regional President, North Texas, having joined Southside Bank in January 2017. In this role, he is responsible for strategic planning, coordination, and implementation of commercial banking operations in the Dallas-Fort Worth region. Mr. Drennan is a graduate of Texas Tech University with both a BBA and MBA and has over 24 years of commercial banking and commercial real estate experience. Mr. Drennan also graduated from Stonier Graduate School of Banking at the University of Pennsylvania. Mr. Drennan previously served as Board Chair of Leadership Fort Worth and on the Board of Directors for the YMCA of Metropolitan Fort Worth. He is also involved with the Real Estate Council of Greater Fort Worth, Fort Worth Chamber of Commerce and Fort Worth Sister Cities International and serves on the Texas Tech Excellence in Banking Advisory Council.
JARED GREEN (43) – Mr. Green currently serves as Regional President, East Texas, a position he has held since 2020. Prior to his current role, he served as Executive Vice President, Commercial Banking from 2013 to 2020. In his current role, he is responsible for strategic planning, coordination and implementation of lending operations in the East and Southeast Texas markets. Mr. Green obtained his BBA from Baylor University and his Masters in Finance from The University of Texas at Dallas. He has over 20 years of commercial banking experience. Mr. Green currently serves as a member of the Board of Trustees of The Brook Hill School.
BRIAN K. MCCABE (63) – Mr. McCabe currently serves as Chief Operations Officer (“COO”) of the Company and Southside Bank, a position he has held since 2017. He previously served as Executive Vice President of the Company from 2014 until June 2017. He is also an advisory director of Southside Bank. He joined Southside Bank in 1983, and since that time has managed various operational and electronic banking areas. Mr. McCabe is a graduate of Stephen F. Austin State University, with a degree in Business Data Processing and a minor in finance, and the Southwest Graduate School of Banking. He currently serves on the Boards of East Texas Lighthouse for the Blind and CHRISTUS Trinity Mother Frances Foundation. Mr. McCabe has previously served on the Board of Directors of the Tyler Area Chamber of Commerce, United Way of Smith County and Smith County American Red Cross.
JULIE N. SHAMBURGER, CPA (61) – Ms. Shamburger currently serves as Chief Financial Officer (“CFO”) of the Company and Southside Bank, a position she has held since 2016. She is also an advisory director of Southside Bank. Ms. Shamburger served as Executive Vice President and Chief Accounting Officer of the Company and Southside Bank from 2011 until April 2016. Ms. Shamburger joined Southside Bank in 1982 and has over 38 years of accounting experience. Ms. Shamburger is a graduate of the University of Texas at Tyler. Ms. Shamburger provides oversight to the Bank's funds management and investor relations. She is also responsible for the oversight of regulatory and SEC reporting as well as the daily accounting practices of the Company and Southside Bank. Ms. Shamburger is a member of the American Institute of Certified Public Accountants, the Texas Society of Certified Public Accountants and the East Texas Chapter of the Texas Society of Certified Public Accountants.

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ENVIRONMENTAL, SOCIAL AND GOVERNANCE

Southside is committed to operating our business responsibly, and believes our business, shareholders, communities and employees benefit from our commitment to environmental, social and governance (“ESG”) best practices. Highlights of our ESG efforts are noted below.

|  | Environmental

Environmental Impact
•We recognize that being a good steward of environmental resources is essential to protect and sustain our environment for those we serve and future generations. We believe operating sustainably creates long-term value for our customers, communities and shareholders through reducing risks, strengthening our communities and helping us meet expectations of our stakeholders.
•We are committed to reducing our environmental impact and are taking steps to understand environmental risks and evaluating business practices and procedures.
◦In 2023, we adopted an Environmental Policy Statement, which outlines our commitment to environmental stewardship and operating responsibly, as well as efforts to support our commitment. Our Environmental Policy Statement is available on the Company’s website at https://southside.com/governance; and
◦All employees completed a sustainability training in 2023, as an effort to introduce sustainability concepts and better understand environmental impacts.
Technology and Digital Banking
•We offer an assortment of digital banking solutions to our customers, including online banking, mobile applications and electronic products and services, which serve our customers efficiently while also reducing the environmental impact of paper transactions and emissions from travel to banking centers.
◦The utilization of digital banking has increased substantially over the last few years, with customer enrollment up 53% for 2023 compared to 2020;
◦We utilize eStatements and eNotices; approximately 60% of statements and notices were sent electronically as of December 31, 2023;
◦Our electronic products and solutions include mobile deposits and remote deposit capture for business customers; through these services, more than 1.1 million items were processed electronically in 2023; and
◦We continue to evaluate our business processes, products and services in an effort to be more efficient both operationally and environmentally.
•We offer remote work arrangements to employees who qualify based on job responsibilities and other requirements, resulting in less travel and related emissions to on-site locations.
Paper Consumption and Recycling
•In 2023, we recycled certain electronic items including: computers, hard drives, servers and printers. Electronics are recycled according to federal, state and local guidelines, as well as certified R2 and ISO 14001 guidelines;
•Paper is shred and recycled through third-party vendors in an effort to protect customer information as well as reduce environmental impact;
•In 2023, we hosted a shred day at two of our locations, in which employees and customers were able to bring personal and business documents to shred for free on site;
•We utilize notice and access, which prescribes that shareholders over a certain threshold of shares receive full paper sets of proxy materials, with other holders able to access the materials online. In the past three years, we have increased our threshold by 900%, resulting in a significant reduction in paper proxy materials; and
•Our directors access Board and committee meeting materials through a secured portal rather than physical copies.
Facilities
•Southside is committed to enhancing and upgrading our facilities to reduce our environmental impact and better serve our customers.
◦In 2024, we installed two electric vehicle chargers at our Fort Worth - University location, which are available to employees, customers and the public; and
◦Southside continues to update and maintain our banking facilities with environmental impact in mind. All renovations and new construction are thoroughly reviewed to adopt various energy-efficient updates. These
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improvements include: energy-efficient lighting and occupancy sensors, insulation improvements, updated HVAC equipment to meet current SEER standards, HVAC automation to reduce consumption, updated plumbing fixtures to meet maximum flow rates and double glazed windows.
Volunteer Efforts
•We initiate quarterly volunteer opportunities for employees through our "Southside Serves" program. Through this program, Southside participated in a variety of community clean-up projects, serving to improve environmental conditions within our communities; including, planting over 500 trees in partnership with "Keep Tyler Beautiful" and partnering with the City of Tyler for Earth Day 2023. See further discussion of "Southside Serves" below under Employee Benefits.

|  | Community

Community Impact
•We have a rich history of community involvement and take great pride in serving the communities in which we operate. Our commitment to these communities is reflected through charitable contributions, community service, financial education programs and community development initiatives;
•Earned an “Outstanding” rating issued by the Federal Deposit Insurance Corporation (“FDIC”) with the Community Reinvestment Act (“CRA”) for the most recent examination in 2021, which marks the 8th consecutive “Outstanding” rating for Southside. Since 2000, a total of 15 “Outstanding” ratings have been issued to Large Banks headquartered in Texas by the FDIC, with more than half of the “Outstanding” ratings issued to Southside;
•Approximately $1.1 million in donations benefiting over 400 organizations across Texas were made in 2023 and our employees volunteered over 6,700 hours benefiting more than 280 organizations in the communities we serve in 2023;
•Approximately $353.7 million in Community Development loans were originated in 2023, consisting of $271.0 million in Economic Development, $46.0 million in Revitalization and Stabilization, $29.6 million in Affordable Housing and $7.1 million in Community Service;
•Southside and our employees contributed over $140,000 to the United Way Corporate Giving Campaign in 2023, which supports local education, financial stability, health and wellness and crisis intervention programs;
•Partnered with the Federal Home Loan Bank of Dallas (“FHLB”) to provide home rehabilitation grants through the Special Needs Assistance Program (“SNAP”). Only special needs households are eligible for SNAP funds and households must have a family income at or below 80% of the median income in the area. In 2023, we processed five repair projects through SNAP;
•We provide a "Bank On" qualified checking account, which serves unbanked and underbanked individuals and families with safe and affordable accounts. The product is certified by the nonprofit Cities for Financial Empowerment (“CFE”) Fund for meeting the CFE's Bank On National Account Standards. CFE's certification recognizes deposit accounts that ensure low cost and high functionality while promoting consumer safety. We opened 373 "Bank On" eChecking accounts in 2023;
•Southside has a Veteran's checking account for active and retired US military service members. The account has no monthly maintenance fees and provides perks such as free checks; and
•In 2023, Southside launched the Individual Tax Identification Number (ITIN) Loan Program. This program was developed in an effort to provide mortgage loans for borrowers without a social security number. This program will allow more borrowers within the bank’s communities to apply and achieve the dream of home ownership, consistent with safe and sound banking operations.
Community Education
•Financial Empowerment Sessions with Local Community College – We conduct financial empowerment sessions with a local community college throughout the year. During 2023, we reached approximately 450 students through this initiative;
•Reverse Junior Achievement (“JA”) in a Day – Students from local schools spend a day learning at the Bank. They receive four sessions on the JA Career Success curriculum highlighting soft skills, personal brand, conflict management, interview skills and financial literacy;
•Internship Program with Local High Schools – The program lasts 16 weeks with training in various areas of the bank. The interns are considered for scholarship opportunities and for employment following the 16 weeks of training;
•Cristo Rey Corporate Work Study Program – Through this work study program, Southside facilitates internships in our credit department in Fort Worth. Students engage in educational studies three to four days a week at Cristo Rey School, while gaining real-world work experience at Southside the rest of the work week; and
•In 2023, Southside hosted a financial literacy event with a local school district called Financial Family Fun Night, in which students bring their families for interactive financial lessons, food and prizes. Over 100 students and family members attended.
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|  | Employees

Employees are our greatest asset and the success of our business depends on our team and our ability to attract, retain and develop employees. We are committed to creating a diverse and inclusive workforce and are focused on the well-being and personal and professional development of our employees through our many corporate development initiatives.
Awards and Engagement
•We were recognized as a "Best Bank to Work For" by American Banker in 2023, for the second consecutive year. This award identifies banks that excel at creating positive and supportive workplaces for employees;
•In 2023, Southside Bancshares, Inc. was named a recipient of the Raymond James Community Bankers Cup for 2022. This annual award is presented to the top 10% of community banks based on several factors, such as profitability, operational efficiency and balance sheet metrics. Southside was the only Texas-based institution awarded a Bankers Cup;
•Southside was named a Texas Banker's Association (TBA) "Texas Top Customer Service Reputation" award winner in 2023. Award winners were determined based on over 25,000 consumer interviews conducted across the state of Texas, and included metrics such as "Strong Customer Service". Southside is one of ten banks that received this award; and
•Employees were asked to complete a survey in 2023 which focused on employee satisfaction. Overall participation in the survey was 64%. Of those that participated, 97% were very satisfied with Southside as an employer and 95% indicated they were treated with respect by their supervisor.
Diversity, Equity and Inclusion (“DEI”)
•Women and ethnic minorities represent approximately 69% and 38% of our workforce, respectively; and
•We value diversity and are committed to creating a diverse and inclusive workforce. Our DEI officer oversees our diversity, equity and inclusion efforts. In 2022, we implemented a three-year DEI training strategic plan company-wide. During 2023, employees completed approximately 1,500 hours of DEI training.
Personal and Professional Development
•We have a designated training department and maintain extensive training programs from entry-level to manager-level. All employees, including management, are required to complete the following courses annually: Information and Cybersecurity, Business Continuity Plan, Confidential Information, Bank Secrecy Act (“BSA”) (Anti-Money Laundering), Fairness in Lending, Fair Service, Information Security, OFAC Compliance Basics, Elder Abuse and the Community Reinvestment Act.
◦During 2023, employees completed over 32,000 training hours in person and virtually. On average, employees completed 39 hours of training in 2023.
◦We evaluate our training program and offerings annually to assess the effectiveness of the program and ways to improve. Surveys are conducted on all in-person trainings and an analysis of course offerings and test scores is performed yearly to determine any gaps or improvement points.
•Our corporate mentor program pairs participating employees with a manager or executive level mentor. The program has been successful in facilitating professional development of our employees;
•We are investing in our employees through the engagement of a development coach. This initiative is company-wide and is focused on personal and professional growth of all employees; in 2023, employees completed approximately 1,200 hours of personal and professional development with our development coach; and
•In 2023, we focused on the health and wellness of our employees through several company-wide efforts including: a wellness program that allows employees to earn cash rewards; a three-week wellness challenge to encourage healthy habits; on-site biometric screenings, as well as wellness communications and webinars throughout the year.
Employee Benefits
•The “Southside Serves” volunteer program allows full-time employees to volunteer up to 20 hours of paid time off (“PTO”) each year with an approved organization of their choice. During 2023, over 1,500 hours were paid to employees through this program. We believe this program not only strengthens our employees and communities but also reflects our strong corporate culture;
•We offer a broad range of benefits including, but not limited to, 15-30 days of annual PTO based on length of employment, sick leave, participation in our Employee Stock Ownership Plan (“ESOP”) and educational reimbursement. During 2023, we implemented an increase in sick leave and an adoption reimbursement program; and
•We offer competitive compensation and benefits and are committed to fair or living wages for all employees.
Code of Business Conduct and Ethics
•We believe in holding employees, officers and directors to the highest standard of conduct and integrity, as outlined in our Code of Business Conduct and Ethics. It is mandatory for all employees, officers (including management) and directors to review and acknowledge their understanding of the policy annually;
•In addition, we maintain a comprehensive employee handbook, as well as other policies, including a harassment policy and a whistleblower policy, to promote a safe and supportive workplace culture. An annual review of the policies is required each year for all employees;
•In 2023, all employees were required to complete training sessions on sexual harassment prevention; and
•We have an online reporting system available to employees for confidential reporting of any issues or concerns.
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|  | Cybersecurity

We have a dedicated Information Security Department (the “Department”), which is led by our Chief Information Security Officer (“CISO”), who reports directly to the CRO. The Department serves to protect the security and confidentiality of customer information, protect against any threats or hazards to the security or integrity of Company information and protect against unauthorized access to, or use of, such information that could result in substantial harm or inconvenience to our customers. For a further discussion of cybersecurity, as well as related risks, risk management strategies and governance, please see “Part I - Item 1C. Cybersecurity” on our Form 10-K, filed with the SEC on February 27, 2024.
During 2023, in addition to on-going training and awareness for employees, the Department facilitated a Cybersecurity awareness month, in which employees completed training sessions and interactive games on information security best practices including: strong passwords, security awareness, mobile device security, social media and reporting incidents. More than 11,000 hours of cybersecurity training were completed by employees during 2023.

|  | Human Rights

Southside values and respects individual human rights and is committed to operating our company in an environment where everyone is treated with dignity and respect. Everyone will be treated without discrimination or harassment based on race, color, religion, gender, sexual orientation, gender identity, national origin, age, veteran status or disability. These same standards apply to our interactions with employees, customers and others with whom we do business, including vendors, contractors and subcontractors. Our Human Rights Statement is available on the Company’s website at https://southside.com/governance.

|  | Governance

•We believe good governance practices and decision making are the foundation of operating responsibly and necessary for creating long-term shareholder value. We seek to follow best governance practices and maintain Corporate Governance Guidelines, which can be accessed on the Company’s website at https://southside.com/governance;
•We maintain an independent Chairman of the Board and our Board is 93% independent;
•Over the past few years, we have increased our Board diversity from 11% in 2018, to 27% as of the 2023 Annual Meeting and 33% as of the 2024 Annual Meeting, pending the approval of Proposal 1, the election of our director nominees;
•All committees of the Company Board have female representation and females serve as Chairpersons of the Risk Committee and Compensation Committee;
•We are committed to Board refreshment. The Board has a policy regarding term limits, which requires Board members to retire on the date of the next Annual Meeting of Shareholders following their 75th birthday. Current Board members who reached the age of 75 prior to February 1, 2020, the effective date of the policy, had the opportunity to stand for re-election for one final term following the end of their current term;
•In 2023, Board members attended trainings on banking and current events in the industry. All directors completed BSA/Fair Lending training. Directors also attended trainings on ESG, cybersecurity, compensation and talent, corporate governance matters, compliance, accounting and bank strategies; and
•The Board performs a self-assessment annually. Each director performs an assessment on individual performance as well as performance of the Board as a whole, including evaluating contributions, strengths and weaknesses. For 2023, the assessment topics included leadership, technology, use of third parties, professional development, enterprise risk management, independence, succession planning, diversity and ESG.
Southside Bancshares, Inc. | 2024 Proxy Statement | 12

CORPORATE GOVERNANCE

Board Leadership Structure
Our Board functions in a collaborative fashion that emphasizes active participation by all members. Our business is conducted day-to-day by our officers, under the direction of our CEO and President, Lee R. Gibson, with oversight from the Board, to enhance the long-term value of the Company for its shareholders. Mr. Gibson also serves as a member of the Board, which enables him to communicate the Board's strategic findings and guidance to management. Our Board determines who to appoint as our Chairman based on the knowledge and experience of the members then serving on our Board and chooses the person whom it believes best meets the needs of the Company. Both the Chairman and the Vice Chair are independent directors and serve as ex-officio members of the Audit, Corporate Governance and Nominating, Compensation, Risk, and IT, Digital Banking and Innovation Committees.
Board Oversight of Risk
The Board recognizes that, although day-to-day risk management is primarily the responsibility of the Company’s management team, the Board plays a critical role in the oversight of risk. The Board believes an important part of its responsibility is to assess the major risks the Company faces and review the Company’s options for monitoring and controlling these risks. The Board assumes responsibility for the Company’s overall risk assessment, primarily through the Board's Audit and Risk Committees. The Audit Committee has specific responsibility for oversight of risks associated with financial accounting and audits, as well as internal control over financial reporting. This includes the Company’s risk assessment and management policies, the Company’s major financial risk exposure and the steps taken by management to monitor and mitigate such exposures. The Risk Committee assists the Board in fulfilling its responsibility for overseeing and improving the Company's enterprise-wide risk management practices, which includes ensuring that the executive team has identified and assessed the key risks the Company faces and has established a risk management infrastructure capable of addressing those risks. The Compensation Committee oversees the risks relating to the Company’s compensation policies and practices, as well as management development and leadership succession in the Company’s various business units. The Board as a whole examines specific business risks including but not limited to credit risk, interest rate risk and operations risk, in its regular strategic reviews on a Company-wide basis.
In addition to periodic reports from the Audit, Risk, Compensation, and IT, Digital Banking and Innovation Committees about the risks over which they have oversight, the Board receives presentations throughout the year from management that include discussions of significant risks specific to the Company and the banking industry. Periodically, at Board meetings, management discusses matters of particular importance or concern, including any significant areas of risk requiring Board attention. We believe our risk oversight is also supported by our current Board leadership structure, with the Chairman of the Board working together with the independent Audit Committee and other standing committees.
Independent Directors
The Company’s common stock is listed on the NASDAQ Global Select Market under the symbol “SBSI.” NASDAQ listing rules require a majority of our directors to be “independent directors,” as defined in the NASDAQ listing rules. The Board has affirmatively determined that all of the Company’s current directors, other than Lee R. Gibson, as well as director nominee Kirk A. Calhoun, M.D., are independent directors under the NASDAQ listing rules. Each member of the Board’s Audit, Corporate Governance and Nominating and Compensation Committees qualifies as an independent director, and all other Board committees are comprised of a majority of independent directors. All Board committees are chaired by independent directors.
Board of Directors Meeting Attendance
During 2023, each of our directors attended at least 75% of the aggregate of (1) the total number of meetings of the Board (held during the period for which he or she served as a director) and (2) the total number of meetings held by all committees of the Board on which he or she served (during the periods that he or she served). All of the Company’s directors were in attendance at the Company’s 2023 Annual Meeting. Although the Company has not adopted a formal written policy with respect to director attendance at meetings, we encourage our directors to attend each Annual Meeting of Shareholders and all meetings of the Board and committees on which the directors serve.
Shareholder Communication with the Board of Directors
The Company has adopted a procedure by which shareholders may send communications to one or more members of the Board by writing to such director(s) or to the Board as a whole in care of the Corporate Secretary, Southside Bancshares, Inc., 1201 South Beckham Avenue, Tyler, Texas 75701. Any such communications will be promptly distributed by the Corporate Secretary to such individual director(s) or to all directors if addressed to the Board as a whole.
Code of Business Conduct and Ethics
The Company has adopted a Code of Business Conduct and Ethics (the “Code”) applicable to all directors, officers and employees of the Company and its subsidiaries. The Code is available on the Company’s website at https://southside.com/governance. Within the time period required by the Securities and Exchange Commission (“SEC”) and NASDAQ, we will post on our website any amendment to the Code and any waiver applicable to any of our directors, executive officers or senior financial
Southside Bancshares, Inc. | 2024 Proxy Statement | 13

officers. We include our website address throughout this filing only as textual references. The information contained on our website is not incorporated in this proxy statement by reference.
Procedures for Reporting Concerns including Accounting, Internal Accounting Controls or Auditing Matters
Management of the Company has established a Whistle Blower Policy, which includes an online reporting system available for reporting 24-hours, seven-days-a-week. This is a confidential service by which officers and employees can report to an independent company any issues or concerns, including human resource matters, or any questionable accounting or auditing matters, including, but not limited to, the following: fraud or deliberate error in the preparation, evaluation, review or audit of any financial statement of the Company; fraud or deliberate error in the recording and maintenance of financial records of the Company; deficiencies in or noncompliance with the Company’s internal accounting controls; misrepresentation or false statement to or by a senior officer or accountant regarding a matter contained in the financial records, financial reports or audit reports of the Company; or deviation from full and fair reporting of the Company’s financial condition. Human resource complaints are reported directly to the Human Resource Director; all other complaints are reported directly to the Chair of the Audit Committee and to the Chief Audit Executive of the Company, and will be reviewed by Internal Audit under the direction of the Audit Committee. All complaints submitted will be promptly investigated and appropriate corrective action will be taken, as warranted by the investigation. Management is committed to complying with all applicable securities laws and regulations and, therefore, encourages officers and employees to raise any issues or concerns by using the online reporting system.
Anti-Hedging and Anti-Pledging Policy
The Company maintains an anti-hedging and anti-pledging policy, which prohibits executive officers, directors and employees who receive equity grants from (1) directly or indirectly engaging in any hedging or monetization transactions, such as exchange funds, prepaid variable forward contracts, equity swaps, puts, calls, collars, forward sale contracts and other derivative instruments, through transactions in the Company’s securities or through the use of financial instruments designed for such purpose, (2) engaging in short sale transactions in the Company’s securities or (3) pledging the Company’s securities as collateral for a loan, including through the use of traditional margin accounts with a broker.
The Company maintains this policy to prevent the appearance of a person trading based on inside information, as hedging transactions might be considered short-term bets and a margin sale or foreclosure sale could occur at a time when the pledger is aware of nonpublic information or during a blackout trading period. In addition, transactions in options may also focus the person’s attention on short-term performance at the expense of the Company's long-term objectives.
Southside Bancshares, Inc. | 2024 Proxy Statement | 14

BOARD COMMITTEES

Southside Bancshares, Inc. Board Committees
The Board has five standing committees:
•Audit Committee;
•Compensation Committee;
•IT, Digital Banking and Innovation Committee;
•Corporate Governance and Nominating Committee; and
•Risk Committee.
Each of the Committees of the Company's Board have a formal written charter, which can be found on the Company’s website at https://southside.com/governance.
Southside Bank Board Committees
The Southside Bank Board has five standing committees:
•Executive Committee;
•Loan/Discount Committee;
•Trust Committee;
•Compliance/IT/CRA Committee; and
•Investment/Asset-Liability Committee (ALCO).
The following table presents the compositions of the Committees of both the Company's Board and the Southside Bank Board, as well as the number of meetings held, for the year ended December 31, 2023:

Directors | Southside Bancshares, Inc. | Southside Bank
Independent | Board | Committees | Board | Committees
Audit | Compensation | IT, Digital Banking and Innovation | Corporate Governance and Nominating | Risk | Executive/ Loan and Discount | Trust | Compliance / IT / CRA | ALCO
Lawrence Anderson, M.D. | ü | ü |  | ü | C |  | ü | ü | ü |  |  |
S. Elaine Anderson, CPA | ü | ü | ü |  |  |  | C | ü | ü |  | ü | ü
Michael J. Bosworth | ü | ü |  |  |  |  | ü | ü | ü | ü |  | ü
Herbert C. Buie | ü | ü |  |  |  | ü |  | ü | ü | ü |  |
Patricia A. Callan | ü | ü |  | C | ü | ü |  | ü | ü |  |  |
Shannon Dacus | ü | ü | ü |  |  | ü | ü | ü | ü | ü | ü |
Alton L. Frailey | ü | ü |  | ü | ü |  |  | ü | ü |  |  |
John R. (Bob) Garrett | ü | C |  |  |  |  |  | C | C |  |  |
Lee R. Gibson, CPA |  | ü |  |  |  |  |  | ü | ü | A |  | A
George H. (Trey) Henderson, III | ü | ü | ü | ü |  |  |  | ü | ü | C | ü |
Tony K. Morgan, CPA | ü | ü | C |  | ü |  |  | ü | ü |  | C | ü
John F. Sammons, Jr. | ü | ü |  | ü |  | ü |  | ü | ü | ü |  |
H. J. Shands, III | ü | ü |  |  | ü |  | ü | ü | ü |  |  | ü
Preston L. Smith | ü | ü | ü |  | ü | C |  | ü | ü |  | ü | ü
Donald W. Thedford | ü | VC |  |  |  |  |  | VC | ü |  |  |
Meetings during 2023 | 14 | 12 | 4 | 4 | 5 | 4 | 13 | 24 | 6 | 12 | 12

C | Chair
VC | Vice Chair
A | Advisory Member

Southside Bancshares, Inc. | 2024 Proxy Statement | 15

These committees were formed to assist the boards of directors of the Company and Southside Bank in the discharge of their respective responsibilities. The purpose and composition of these committees is described below.
Audit Committee of Southside Bancshares, Inc.
The Audit Committee of the Board was established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended, or the Exchange Act. The Corporate Governance and Nominating Committee of the Board has unanimously determined that S. Elaine Anderson, CPA and Tony K. Morgan, CPA, who served in 2023, each qualify as an “audit committee financial expert” as defined by the SEC. The Corporate Governance and Nominating Committee of the Board has also unanimously determined that all Audit Committee members are financially literate under the current NASDAQ listing rules.
The Audit Committee is primarily responsible for the engagement of the Company's independent registered certified public accounting firm, oversight of the Company’s financial statements and controls, assessing and ensuring the independence, qualifications and performance of the independent registered certified public accounting firm, approving the services and fees of the independent registered certified public accounting firm and reviewing and approving the annual audited financial statements of the Company before issuance, subject to the approval of the Board. The Audit Committee manages the Company’s relationship with its independent registered certified public accounting firm, who reports directly to the Audit Committee. The Audit Committee also monitors the internal audit function, internal accounting procedures and assures compliance with all appropriate statutes and regulations. The Audit Committee has the authority to obtain advice and assistance from outside legal, accounting or other advisors as the Audit Committee deems necessary to carry out its duties, with funding from the Company for such advice and assistance. No members of the Audit Committee received any compensation from the Company during the last fiscal year other than directors’ fees. On an annual basis the Audit Committee reviews the Audit Committee charter.
Corporate Governance and Nominating Committee of Southside Bancshares, Inc.
The Corporate Governance and Nominating Committee is responsible for identifying, screening and recommending candidates for election to the Board and seeks to create a Board that is, as a whole, strong in its collective knowledge and diversity of skills and experience and background with respect to accounting and finance, management and leadership, business judgment, industry knowledge and corporate governance. When the Corporate Governance and Nominating Committee reviews a potential new director candidate, it looks specifically at the candidate’s qualifications in light of the needs of the Board and the Company at that time, given the then-current mix of director attributes.
The Company’s Board of Directors has established the following process for the identification and selection of candidates for director. The Corporate Governance and Nominating Committee annually reviews the appropriate experience, skills and characteristics required of Board members in the context of the current membership of the Board to determine whether the Board would be better enhanced by the addition of one or more directors. In considering board of director candidates, the Corporate Governance and Nominating Committee takes into consideration all factors that it deems appropriate, including, but not limited to, the individual’s character, education, experience, knowledge, skills and ownership of the Company’s stock. The Corporate Governance and Nominating Committee will also consider the extent of the individual’s experience in business, education or public service, his or her ability to bring a desired range of skills, diverse perspectives and experience to the Board and whether the individual possesses high ethical standards, a strong sense of professionalism and is capable of serving the interests of the Company's shareholders. A candidate should possess a working knowledge of the Company’s current local market areas. Additionally, the Corporate Governance and Nominating Committee will consider the number of boards the candidate currently serves on when assessing whether the candidate has the appropriate amount of time to devote to serving on the Company’s Board. The Corporate Governance and Nominating Committee, when considering diversity, gives strong consideration to a wide range of diversity factors as a matter of practice when evaluating candidates to the Board and incumbent directors, but the Committee does not have a formal policy regarding Board diversity.
The Corporate Governance and Nominating Committee identifies candidates to the Board by introduction from management, members of the Board, employees or other sources, and shareholders that satisfy the Company’s policy regarding director candidates recommended by shareholders. The Corporate Governance and Nominating Committee does not evaluate director candidates recommended by shareholders differently than director candidates recommended by other sources. Shareholders wishing to submit director candidate recommendations for the 2025 Annual Meeting should write to the Corporate Governance and Nominating Committee in care of the Corporate Secretary, Southside Bancshares, Inc., Post Office Box 8444, Tyler, Texas 75711. Any such shareholder must follow the procedures set forth in the Company’s bylaws and the Corporate Governance and Nominating Committee charter. Our bylaws provide that proposals that comply with all rules and requirements of the SEC and are included in our proxy statement are deem ed to comply with the advance notice procedures in our bylaws. Shareholder director recommendations must be submitted to the Corporate Secretary on or before November 27, 2024, in order to be included in the proxy statement for the 2025 Annual Meeting. See “Shareholder Proposals.” The Corporate Governance and Nominating Committee is not obligated to recommend any individual proposed by a shareholder as a nominee for election to the Board. No shareholder recommendations have been received by the Company for this Annual Meeting. Accordingly, no rejections or refusals of such candidates have been made by the Company.
In addition, the Corporate Governance and Nominating Committee is responsible for identifying, screening and recommending to the Board candidates to serve on the Compensation Committee, Audit Committee, Risk Committee and IT, Digital Banking and Innovation Committee. These recommendations are submitted to the Board for final approval.
Southside Bancshares, Inc. | 2024 Proxy Statement | 16

Compensation Committee of Southside Bancshares, Inc.
The Compensation Committee of the Board reviews the Company’s general compensation philosophy and oversees the development of compensation and benefit programs. The Compensation Committee recommends the compensation for the named executive officers of the Company, all of whom are executive officers of the Company and Southside Bank. The boards of directors of the Company and Southside Bank consider the recommendations of the Compensation Committee and approve the compensation of the named executive officers. The Committee also reviews and develops recommendations for all director compensation. Pursuant to its charter, which is reviewed by the Committee annually, the Compensation Committee may form and delegate authority and duties to subcommittees as it deems appropriate. Additional information regarding the Compensation Committee’s processes and procedures for consideration of executive compensation is provided in the Compensation Discussion and Analysis below.
Risk Committee of Southside Bancshares, Inc.
The purpose of the Risk Committee is to assist the Board in fulfilling its oversight responsibilities with regard to the risk appetite of the Company, enterprise-wide risk management, the Company's compliance framework and the governance structure that supports it. The primary responsibility of the Risk Committee is to oversee and improve company-wide risk management practices while assisting the Board by:
•Ensuring that the executive team has identified and assessed the key risks the Company faces and has established a risk management infrastructure capable of addressing those risks;
•Overseeing, in conjunction with other Board-level committees or the full Board, if applicable, risks, such as strategic, financial, credit, liquidity, security, property, IT (including cyber security), legal, regulatory, reputational and other risks;
•Overseeing the division of risk-related responsibilities to each Board committee as clearly as possible and performing a gap analysis to determine the full oversight of all risks; and
•Approving, in conjunction with the full Board, the Company’s enterprise-wide risk management framework.
In addition to the Company's Board members specified above, also serving on the committee is Suni Davis, CRO of the Company and Southside Bank.
IT, Digital Banking and Innovation Committee of Southside Bancshares, Inc.
The purpose of the IT, Digital Banking and Innovation Committee is to assist the Board in fulfilling its oversight responsibilities with regard to IT, digital banking and innovation. Specific responsibilities of this committee are:
•Provide oversight on IT strategies and subjects related to digital innovation, digital banking strategies, products and business/IT;
•Review management reports and provide oversight of the implementation of major digital banking, technology innovation and business/IT projects and architecture decisions;
•Review the IT plan which demonstrates objectives and targets for digital banking, technology innovation and business/IT risks, proposals and acquisition processes; and
•Ensure the Company’s digital banking, digital innovation and business/IT programs effectively support its business objectives and strategies.
In addition to the Company's Board members specified above, also serving on the committee are bank officers Faye Bond, Jason Cathey, Ramon Cocolan, Trent Dawson, Justin Hutcheson, Brian K. McCabe, Gary Mills, Keith Leonhardt, Carlos Renteria, Gordon Roberts, Leigh Anne Rozell, James Schafer and Lora Stockhammer.
Southside Bancshares, Inc. | 2024 Proxy Statement | 17

COMMITTEES OF SOUTHSIDE BANK
Executive Committee and Loan/Discount Committee of Southside Bank
The Executive Committee is authorized to act on behalf of the Board of Directors of Southside Bank between scheduled Board meetings, subject to certain limitations. The members of the Executive Committee comprise the Loan/Discount Committee of Southside Bank. It is the Loan/Discount Committee’s responsibility to monitor credit quality, review extensions of credit and approve selected credits in accordance with the loan policy.
In addition to the Company's Board members specified above, also serving on the committee as an advisory director of Southside Bank is T. L. Arnold, Jr., Chief Credit Officer.
Trust Committee of Southside Bank
The Trust Committee of Southside Bank is responsible for the oversight of the operations and activities of the Wealth Management and Trust Department. In addition to the Company's Board members specified above, also serving on this committee as advisory members are Julie N. Shamburger, Brian K. McCabe and Lonny Uzzell. Officers of Southside Bank who serve on the committee include Bill Newburn, Ernest King and Kim Christie.
Compliance, IT and Community Reinvestment Act (CRA) Committee of Southside Bank
The Compliance/IT/CRA Committee of Southside Bank is responsible for ensuring compliance with all appropriate statutes and reviews IT and community reinvestment activities. The Compliance/IT/CRA Committee is comprised solely of persons who are directors of the Company and Southside Bank but who are not officers or employees.
Investment/Asset-Liability Committee (ALCO) of Southside Bank
The Investment/Asset-Liability Committee is responsible for reviewing Southside Bank’s overall asset and funding mix, asset-liability management policies and investment policies. In addition to the Company's Board members specified above, officers serving on this committee include Suni Davis (Chair), Julie N. Shamburger, Tim Alexander, T. L. Arnold, Jr., Kyle Gibson, Jared Green, Michael Phea, Amanda Reagan and Lonny Uzzell.
Southside Bancshares, Inc. | 2024 Proxy Statement | 18

DIRECTOR COMPENSATION

DIRECTOR COMPENSATION PROGRAM
The Board adopted a Director Compensation Program (the “Director Program”) for compensating non-employee directors, effective as of the 2020 Annual Meeting. The Director Program has been developed to compensate non-employee directors of the Company for their time, commitment and contributions to the Board, including each non-employee’s service on the board of the Bank. Under the Director Program, non-employee directors are paid an annual retainer of $101,000, which is payable in quarterly installments, for each year of his or her service on the Board (each, a “Service Year”). Each Service Year commences on the date of the Company’s Annual Meeting at which Board members are elected or appointed. Employee directors do not receive compensation for service on the Company's Board or the board of the Bank.
In addition to the annual retainer, the following positions received an additional retainer for 2023 as follows:

Position | Additional Retainer |
Chairman | $ | 48,500 |  |
Vice Chair | $ | 23,500 |  |
Audit Committee Chair | $ | 23,500 |  |
Compensation Committee Chair | $ | 12,500 |  |
Risk Committee Chair | $ | 12,500 |  |
IT, Digital Banking and Innovation Committee Chair | $ | 7,500 |  | (1)
Trust Committee Chair | $ | 7,500 |  | (1)
Corporate Governance and Nominating Committee Chair | $ | 5,000 |  |

(1) Additional retainer was effective in November 2023, and prorated for the remainder of 2023.
Directors may elect to receive all or a specified portion of their annual retainer and any additional annual retainers in the form of restricted stock units (“RSUs”). The RSUs are granted on or about the first day of the Service Year and have a value on the grant date approximately equal to the amount of the annual cash retainer payment that he or she has elected to receive in the form of RSUs. The RSUs vest (become non-forfeitable) on the first anniversary of the grant date (or, if earlier, on the date of the Company’s Annual Meeting that occurs in the year immediately following the year of grant, in the event Grantee is not standing for re-election to the Board at such Annual Meeting) (with accelerated vesting on a pro rata basis in the event of death, disability or a change in control of the Company). Directors may elect to receive shares of common stock in settlement of their RSUs on the vesting date, or they may elect to defer the receipt of such shares and instead receive them on a specified anniversary of the grant date or upon termination of their service on the Board (subject, in each case, to earlier settlement upon a change in control of the Company).
In November 2023, the Director Program was amended, effective as of the 2024 Annual Meeting, to provide that all non-employee directors will receive at least 40% of their annual retainer in the form of RSUs, with the balance payable in cash in quarterly installments. In addition, directors may elect to receive a larger percentage (up to 100%) of their annual retainer and additional retainers, as applicable, in the form of RSUs.
Southside Bancshares, Inc. | 2024 Proxy Statement | 19

2023 DIRECTOR COMPENSATION
The table below summarizes the compensation earned by the Company's directors for the year ended December 31, 2023. Lee R. Gibson, the Company’s President and CEO, is not included in the table below, as he is an officer of the Company, and thus received no compensation for his service as a director during 2023. Mr. Gibson's compensation is shown in the Summary Compensation Table under Executive Compensation.

Name |  | Fees Earned or Paid in Cash ($) (1) |  |  |  | All Other Compensation ($) |  | Total ($)
Lawrence Anderson, M.D. (2) |  | $ | 101,925 |  |  |  |  | $ | — |  |  | $ | 101,925 |
S. Elaine Anderson, CPA (3) |  | 113,500 |  |  |  |  | — |  |  | 113,500 |
Michael J. Bosworth (4) |  | 101,000 |  |  |  |  | — |  |  | 101,000 |
Herbert C. Buie |  | 101,000 |  |  |  |  | — |  |  | 101,000 |
Patricia A. Callan (5) |  | 113,500 |  |  |  |  | — |  |  | 113,500 |
Shannon Dacus (4) |  | 101,000 |  |  |  |  | — |  |  | 101,000 |
Alton L. Frailey (4) |  | 101,000 |  |  |  |  | — |  |  | 101,000 |
John R. (Bob) Garrett (4)(6) |  | 149,500 |  |  |  |  | — |  |  | 149,500 |
George H. (Trey) Henderson, III (4)(7) |  | 101,925 |  |  |  |  | — |  |  | 101,925 |
Melvin B. Lovelady, CPA(8) |  | 37,875 |  |  |  |  | — |  |  | 37,875 |
Tony K. Morgan, CPA (4)(9) |  | 124,500 |  |  |  |  | — |  |  | 124,500 |
John F. Sammons, Jr. |  | 101,000 |  |  |  |  | — |  |  | 101,000 |
H. J. Shands, III |  | 101,000 |  |  |  |  | — |  |  | 101,000 |
William Sheehy(10) |  | 37,875 |  |  |  |  | — |  |  | 37,875 |
Preston L. Smith (4)(11) |  | 106,000 |  |  |  |  | — |  |  | 106,000 |
Donald W. Thedford (12) |  | 124,500 |  |  |  |  | — |  |  | 124,500 |

(1)Amounts reflect fees earned by each non-employee directo r in 2023 and includes fees earned durin g 2023 in which directors elected to receive RSUs in lieu of cash. See table below.
(2)Compensation includes an additional retainer of $7,500 for serving as IT, Digital Banking and Innovation Committee Chair. The additional retainer was effective in November 2023 and prorated for the year.
(3)Compensation includes an additional retainer of $12,500 for serving as Risk Committee Chair.
(4)Director elected to receive a portion of 2023 director fees in RSUs in lieu of cash. RSUs were granted on May 18, 2022 and May 17, 2023, based on the portion of fees elected to be received in RSUs for the applicable Service Year and the aggregate grant date fair market value, determined in accordance with FASB ASC Topic 718. The table below summarizes grants with fees forgone in 2023, or the portion of grant value earned, during the fiscal year 2023.

|  | May 18, 2022 Grant |  | May 17, 2023 Grant
Name |  | 2023 Fees Foregone ($) (a) |  | RSUs Granted (#) (b) |  | Total Fair Value of Grant ($) (c) |  | Settlement Date (d) |  | 2023 Fees Foregone ($) (a) |  | RSUs Granted (#) (b) |  | Total Fair Value of Grant ($) (c) |  | Settlement Date (d)
Michael J. Bosworth |  | $ | 28,428 |  |  | 1,949 |  |  | $ | 75,738 |  |  | 5/18/2025 |  | $ | 47,524 |  |  | 2,643 |  |  | $ | 75,748 |  |  | 5/17/2025
Shannon Dacus |  | 13,259 |  |  | 909 |  |  | 35,324 |  |  | 5/18/2023 |  | 25,336 |  |  | 1,409 |  |  | 40,382 |  |  | 5/17/2024
Alton L. Frailey |  | 28,428 |  |  | 1,949 |  |  | 75,738 |  |  | 5/18/2027 |  | 47,524 |  |  | 2,643 |  |  | 75,748 |  |  | 5/17/2028
John R. (Bob) Garrett |  | 8,416 |  |  | 577 |  |  | 22,422 |  |  | 5/18/2023 |  | 14,061 |  |  | 782 |  |  | 22,412 |  |  | 5/17/2024
George H. (Trey) Henderson, III |  | 18,947 |  |  | 1,299 |  |  | 50,479 |  |  | 5/18/2023 |  | 31,683 |  |  | 1,762 |  |  | 50,499 |  |  | 5/17/2024
Tony K. Morgan, CPA |  | 23,352 |  |  | 1,601 |  |  | 62,215 |  |  | 5/18/2027 |  | 19,528 |  |  | 1,086 |  |  | 31,125 |  |  | 5/17/2028
Preston L. Smith |  | 19,880 |  |  | 1,363 |  |  | 52,966 |  |  | 5/18/2023 |  | 33,247 |  |  | 1,849 |  |  | 52,992 |  |  | 5/17/2024

(a)Amount included in the Fees Earned column in the 2023 Director Compensation Table, and reflects the portion of the annual cash retainer earned in 2023, which the director has elected to receive in RSUs and will be received in common shares on the settlement date.
(b)Total RSUs granted for the Service Year based on the annual cash retainer or additional cash retainer the director elected to receive in RSUs and the grant date fair market value, determined in accordance with FASB ASC Topic 718. Since a Service Year runs from the date of the Company’s Annual Meeting to the next Annual Meeting, and RSUs are granted on or about the first day of a Service Year, a portion of the May 18, 2022 grant reflects payment for service in calendar year 2023, and a portion of the May 17, 2023 grant reflects payment for service in calendar year 2024.
(c)Aggregate grant date fair market value, determined in accordance with FASB ASC Topic 718.
(d)Settlement date elected by the director, in which shares of common stock will be received in settlement of the RSUs.
Southside Bancshares, Inc. | 2024 Proxy Statement | 20

(5)Compensation includes an additional retainer of $12,500 for serving as Compensation Committee Chair.
(6)Compensation includes an additional retainer of $48,500 for serving as Chair of the Board.
(7)Compensation includes an additional retainer of $7,500 for serving as Trust Committee Chairman. The additional retainer was effective in November 2023 and prorated for the year.
(8)Mr. Lovelady passed away in February 2023, and received compensation through his term, which ended at the 2023 Annual Meeting.
(9)Compensation includes an additional retainer of $23,500 for serving as Audit Committee Chair.
(10)Mr. Sheehy retired from the Board, effective as of the 2023 Annual Meeting.
(11)Compensation includes an additional retainer of $5,000 for serving as Corporate Governance and Nominating Committee Chair.
(12)Compensation includes an additional retainer of $23,500 for serving as Vice Chair of the Board.
DIRECTOR STOCK OWNERSHIP POLICY
To help promote the alignment of the personal interests of the Company’s directors with the interests of our shareholders, in February 2014 the Company established a stock ownership policy for all non-employee directors. Under this policy, each non-employee director is required to own at least 5,000 shares of the Company’s common stock within five years after the date he or she is first elected as a director and maintain such ownership while serving on the Board. For new directors, the acquisition period is measured using the calendar year, with the director's five-year accumulation period beginning on January 1 of the year following their election. To facilitate the stock ownership requirement, if the director owns less than 5,000 shares, the director must elect a percentage of their annual retainer to be received in the form of RSUs. Until the director owns 5,000 shares, for the first and second years of their term, a minimum election of 35% of their annual retainer in RSUs is required and for years three through five, a minimum election of 40% of their annual retainer in RSUs is required. Effective as of the 2024 Annual Meeting, all non-employee directors, including newly elected directors, will receive at least 40% of their annual retainer in the form of RSUs, and the minimum election of 35% will no longer be applicable.
As of March 20, 2024, all current non-employee directors met the ownership requirement, except Alton L. Frailey, who was appointed to the Board in 2022. Mr. Frailey has 4,896 qualifying shares as of March 20, 2024, and will be required to own 5,000 shares as of December 31, 2027. Mr. Frailey's qualifying shares are unvested RSUs as well as RSUs with deferred conversion elected, therefore these shares are not reflected in the beneficial ownership table below.
Southside Bancshares, Inc. | 2024 Proxy Statement | 21

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS

The following table sets forth information regarding beneficial ownership of our common stock as of March 20, 2024 for the following persons:
•each person known by us to beneficially own more than 5% of our outstanding common stock;
•each of our directors;
•each of our named executive officers included in our Summary Compensation Table; and
•all of our directors and executive officers as a group, including executive officers not named in the table.
Unless otherwise indicated, the address of each of the named individuals is 1201 South Beckham Avenue, Tyler, Texas 75701.

Name of Beneficial Owner |  | Amount and Nature of Beneficial Ownership (1) |  | Percent of Class
Lawrence Anderson, M.D. (2) |  | 15,929 |  |  | *
S. Elaine Anderson, CPA (3) |  | 32,392 |  |  | *
Michael J. Bosworth (4) |  | 83,654 |  |  | *
Herbert C. Buie (5) |  | 678,928 |  |  | 2.2 |
Patricia A. Callan (6) |  | 7,995 |  |  | *
Shannon Dacus (7) |  | 5,555 |  |  | *
Alton L. Frailey |  | — |  |  | — |
John R. (Bob) Garrett (8) |  | 22,451 |  |  | *
Lee R. Gibson, CPA (9) |  | 153,783 |  |  | *
George H. (Trey) Henderson, III (10) |  | 46,803 |  |  | *
Tony K. Morgan, CPA (11) |  | 22,215 |  |  | *
John F. Sammons, Jr. (12) |  | 32,812 |  |  | *
H. J. Shands, III (13) |  | 293,223 |  |  | 1.0 |
William Sheehy (14) |  | 157,094 |  |  | *
Preston L. Smith (15) |  | 17,259 |  |  | *
Donald W. Thedford |  | 15,652 |  |  | *
Tim Alexander (16) |  | 64,174 |  |  | *
T. L. Arnold, Jr.(17) |  | 37,152 |  |  | *
Brian K. McCabe (18) |  | 51,385 |  |  | *
Julie N. Shamburger, CPA (19) |  | 66,078 |  |  | *
BlackRock, Inc. (20) |  | 4,443,124 |  |  | 14.7 |
The Vanguard Group (21) |  | 2,162,164 |  |  | 7.1 |
All directors and executive officers of the Company as a group (25 in total). (22) |  | 1,855,570 |  |  | 6.1 |

* Less than 1% of total outstanding shares (30,282,697) as of March 20, 2024.
(1)Unless otherwise indicated, all shares are beneficially owned and the sole voting and investment power is held by the person named.
(2)Dr. Anderson beneficially owns 15,929 shares held through a spousal trust.
(3)Ms. Anderson has sole voting and investment power with respect to 8,568 shares owned individually. Ms. Anderson owns 681 shares in an individual retirement account and has sole voting and investment power in these shares. Also included in the total are 23,143 shares owned by Ms. Anderson's husband, of which she disclaims beneficial ownership.
(4)Mr. Bosworth has joint voting and investment power with his wife with respect to 16,923 shares owned jointly and has sole voting and investment power with respect to 49,413 shares owned individually. Mr. Bosworth beneficially owns 15,246 shares held by Bosworth & Associates, which he owns jointly with his wife. Included in the total are 2,072 RSUs which will convert to shares of common stock within 60 days of the record date.
(5)Mr. Buie has sole voting and investment power with respect to 407,501 shares owned individually, 231,053 shares held in an exemption trust and 5,000 shares held by Tyler Packing Co.. Mr. Buie also owns 27,038 shares in individual retirement accounts and has sole voting and investment power in these shares. Also included in the total 4,353 shares held in a trust for the benefit of their son, for which Mrs. Buie (deceased) served as trustee and 3,983 shares held in a trust for the benefit of their daughter, for which Mrs. Buie served as trustee. Mr. Buie disclaims beneficial ownership of these 8,336 shares, which are included in the total.
(6)Ms. Callan has sole voting and investment power with respect to 2,956 shares owned individually and 5,039 shares in an individual retirement account.
(7)Included in the total are 1,478 RSUs which will vest and convert to shares of common stock within 60 days of the record date.
(8)Included in the total are 821 RSUs which will vest and convert to shares of common stock within 60 days of the record date.
(9)Mr. Gibson has sole voting and investment power with respect to 44,554 shares owned individually. He also has sole voting power, but not investment power, with respect to 28,662 shares owned in the Company’s ESOP, in which he is 100% vested. Mr. Gibson owns 7,890 shares in an individual retirement account and has sole voting and investment power in these shares. Also included in the total are 72,677 shares subject to stock options that are exercisable within 60 days of the record date.
(10)Included in the total are 1,849 RSUs which will vest and convert to shares of common stock within 60 days of the record date.
(11)Mr. Morgan beneficially owns 22,215 shares held by Linden Partners LTD, which is owned jointly with his wife.
(12)Mr. Sammons has sole voting and investment power with respect to 30,257 shares owned individually and 2,555 shares in an individual retirement account.
(13)Mr. Shands has sole voting and investment power with respect to 57,127 shares owned individually and 6,502 shares in an individual retirement account. He also has sole voting power, but not investment power, with respect to 287 shares owned in the Company’s ESOP,
Southside Bancshares, Inc. | 2024 Proxy Statement | 22

in which he is 100% vested. Also included in the total are 5,721 shares owned by Mr. Shands' wife and 204,229 shares held in a spousal trust, of which he disclaims beneficial ownership. Also included in the total are 19,357 shares subject to stock options that are exercisable within 60 days of the record date.
(14)Mr. Sheehy, Director Emeritus as of 1/1/2024, has sole voting and investment power with respect to 139,340 shares owned individually and 17,754 shares in an individual retirement account.
(15)Mr. Smith has joint voting and investment power with his wife with respect to 4,277 shares owned jointly and has sole voting and investment power with respect to 9,612 shares owned individually. Included in the total are 1,940 RSUs which will vest and convert to shares of common stock within 60 days of the record date. Also included in the total are 1,430 shares owned by Mr. Smith's wife, of which he disclaims beneficial ownership.
(16)Mr. Alexander has sole voting and investment power with respect to 6,470 shares owned individually. He also has sole voting power, but not investment power, with respect to 3,024 shares owned in the Company’s ESOP, in which he is 100% vested. Mr. Alexander owns 17,088 shares in individual retirement accounts and has sole voting and investment power in these shares. Mr. Alexander is custodian for his grandchild for 21 shares, which are included in the total, of which he disclaims beneficial ownership. Also included in the total are 37,571 shares subject to stock options that are exercisable within 60 days of the record date.
(17)Mr. Arnold has sole voting and investment power with respect to 12,585 shares owned individually. He also has sole voting power, but not investment power, with respect to 1,364 shares owned in the Company’s ESOP, in which he is 100% vested. Also included in the total are 23,203 shares subject to stock options that are exercisable within 60 days of the record date.
(18)Mr. McCabe has sole voting and investment power with respect to 10,823 shares owned individually and has sole voting power, but not investment power, with respect to 14,128 shares owned in the Company's ESOP, in which he is 100% vested. Mr. McCabe owns 8,138 shares in an individual retirement account and has sole voting and investment power in these shares. Also included in the total are 18,296 shares subject to stock options that are exercisable within 60 days of the record date.
(19)Ms. Shamburger has sole voting and investment power with respect to 18,923 shares owned individually. She also has sole voting power, but not investment power, with respect to 7,460 shares owned in the Company’s ESOP, in which she is 100% vested. Ms. Shamburger owns 4,461 shares in an individual retirement account and has sole voting and investment power in these shares. Included in the total are 3,250 shares owned by Ms. Shamburger's husband, of which she disclaims beneficial ownership. Also included in the total are 31,984 shares subject to stock options that are exercisable within 60 days of the record date.
(20)Information obtained solely by reference to the Schedule 13G/A filed with the SEC on January 22, 2024 by BlackRock, Inc. (“BlackRock”). BlackRock reported that it has sole voting power over 4,380,403 shares and sole dispositive power over 4,443,124 shares held as of December 31, 2023. BlackRock also reported that certain persons have the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of our common stock and that one person’s interest is more than five percent of our total outstanding common stock, iShares Core S&P Small-Cap ETF. The address for BlackRock, Inc. is 50 Hudson Yards, New York, New York 10001.
(21)Information obtained solely by reference to the Schedule 13G/A filed with the SEC on February 13, 2024 by The Vanguard Group (“Vanguard”). Vanguard reported that it has shared voting power over 18,537 shares, sole dispositive power over 2,117,657 shares and shared dispositive power over 44,507 shares held as of December 31, 2023. The address for Vanguard is 100 Vanguard Blvd., Malvern, PA 19355.
(22)Includes executive officer ownership of 51,036 shares not listed in the table. Included in the 51,036 shares, are 19,387 shares subject to stock options that are exercisable within 60 days of the record date.
Southside Bancshares, Inc. | 2024 Proxy Statement | 23

COMPENSATION COMMITTEE REPORT

The Compensation Committee oversees and makes recommendations for all aspects of executive officer compensation. The Board considers the recommendations of the Compensation Committee and approves the compensation of the executive officers. In fulfilling its oversight responsibilities, the Compensation Committee reviewed and discussed with management the Compensation Discussion and Analysis in this proxy statement.
In reliance on the review and discussion referred to above, the Compensation Committee recommended to the Board that the Compensation Discussion and Analysis be included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and its proxy statement on Schedule 14A to be filed in connection with the Company’s 2024 Annual Meeting, each of which will be filed with the SEC.
This report shall not be deemed to be incorporated by reference by any general statement incorporating by reference this proxy statement into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, and shall not otherwise be deemed filed under such acts.
Submitted by the Compensation Committee of the Board.

Patricia A. Callan, Chair | George H. (Trey) Henderson, III
Lawrence Anderson, M.D. | John F. Sammons, Jr.
Alton L. Frailey |

COMPENSATION DISCUSSION AND ANALYSIS

Overview of Compensation Program
In the paragraphs that follow, we will give an overview and analysis of our compensation programs and policies, the material compensation decisions we have made under those programs and policies, and the material factors that we considered in making those decisions. Later in this proxy statement under the heading “Executive Compensation” you will find a series of tables containing specific information about the compensation earned or paid in 2023 to the following executive officers, who are referred to as the “named executive officers” or “NEOs.”
•Lee R. Gibson, CPA - President, Chief Executive Officer and Director of the Company and Southside Bank;
•Julie N. Shamburger, CPA - Chief Financial Officer of the Company and Southside Bank and advisory director of Southside Bank;
•Tim Alexander - Chief Lending Officer of the Company and Southside Bank and advisory director of Southside Bank;
•Brian K. McCabe - Chief Operations Officer of the Company and Southside Bank and advisory director of Southside Bank; and
•T. L. Arnold, Jr. - Chief Credit Officer of the Company and Southside Bank and advisory director of Southside Bank.
The Compensation Committee of the Board (the “Committee”) has the responsibility for reviewing and establishing the Company’s compensation programs, consistent with the Company’s compensation philosophy. The Committee attempts to ensure the total compensation paid to the NEOs is fair, reasonable, and competitive. The Committee conducts an annual base salary and bonus compensation level review of the NEOs and occasionally engages outside consultants, as discussed below. When determining compensation opportunities, the Committee evaluates and reviews each NEO’s contribution to the overall performance of the Company, taking into account any changes in duties or responsibilities, the overall banking environment, skills and talents demonstrated during the year and leadership.
During 2023, the Committee reviewed with management the design and operation of the incentive compensation arrangements for the NEOs and other employees of Southside Bank for the purpose of determining whether such programs might encourage inappropriate risk-taking that could have a material adverse effect on the Company. The Committee concluded the incentive plans and policies do not encourage the NEOs or other employees to take risks that are reasonably likely to have a material adverse effect on the long-term well-being of the Company.
Compensation Philosophy and Objectives
The Committee believes the most effective executive compensation program is one that is designed to reward long-term and strategic performance and which aligns executives’ interests with those of the shareholders, with the ultimate objective of improving long-term shareholder value. The Committee evaluates both performance and compensation to ensure the Company maintains its ability to attract and retain superior officers in key positions and that compensation provided to key officers remains competitive relative to the compensation paid to similarly situated executives of our peer companies (as discussed below). To that end, the Committee believes executive compensation provided by the Company to its NEOs should include cash, stock-based compensation and other benefits that reward both Company and executive performance. Performance is evaluated in a number of ways. First and most importantly, the Committee evaluates the overall performance of the Company during the year and over a longer term, typically three years. Performance metrics evaluated include profitability, return on equity, ability to pay
Southside Bancshares, Inc. | 2024 Proxy Statement | 24

dividends to shareholders, overall asset quality, capital levels and earnings per share. The Company’s performance is measured against its peers utilizing outside independently produced peer group data. The Committee also takes into consideration the results of outside examinations and audits. The Committee evaluates individual performance of each NEO in their areas of responsibility and to the Company as a whole, taking into consideration the overall banking environment. Using this information as a guide, the Committee then works through its process of evaluating and setting compensation.
Role of Executive Officers in Compensation Decisions
The Committee makes recommendations to the Board regarding all compensation decisions for the NEOs. The CEO provides input regarding the performance of the other NEOs and makes recommendations for compensation amounts payable to the other NEOs. These recommendations are based on the CEO’s personal observation of each NEO's performance, commitment and contribution to the Company. The CEO is not involved with any aspect of determining his own pay.
Setting Executive Compensation
Based on the compensation objectives noted above, the Committee has structured the NEOs’ annual compensation to be competitive and to motivate and reward the NEOs for their performance.
The Committee utilizes a Compensation Peer Group for comparative purposes for compensation and performance-related benchmarks, as well as compensation structure. The Committee reviews the Compensation Peer Group annually to ensure continued appropriateness. In 2023, the Committee engaged Meridian Compensation Partners, LLC (“Meridian”) to serve as an independent outside consultant to the Company, reporting directly to the Committee. Meridian advised the Committee on potential peers based on asset size and location, including metropolitan areas, given Southside's operations in metropolitan areas in Texas. The 2023 Compensation Peer Group approved by the Committee was changed from the 2022 Compensation Peer Group by removing two companies: CBTX, Inc. due to acquisition and Live Oak Bankshares, Inc. due to non-standard compensation arrangements. In addition, in order to bring the peer median asset size closer to Southside's current size, four companies noted below, located in the Southeast or Southwest with asset sizes of $4.1 billion to $4.8 billion, were added to the peer group. The Compensation Peer Group consists of 18 companies ranging in assets from $4.1 billion to $17.5 billion, as of the time of the study, with a focus on metropolitan areas. The companies comprising the 2023 Compensation Peer Group are listed as follows:

2023 Compensation Peer Group
Renasant Corporation (RNST) | Amerant Bancorp, Inc. (AMTB)
Seacoast Banking Corporation of Florida (SBCF) | The First Bancshares, Inc. (FBMS)
ServisFirst Bancshares, Inc. (SFBS) | City Holding Company (CHCO)
FB Financial Corporation (FBK) | Triumph Bancorp, Inc. (TBK)
First Financial Bankshares, Inc. (FFIN) | Business First Bancshares, Inc. (BFST)
Veritex Holdings, Inc. (VBTX) | SmartFinancial, Inc. (SMBK)(1)
Stellar Bancorp, Inc. (STEL) | HomeTrust Bancshares, Inc. (HTBI)(1)
Origin Bancorp, Inc. (OBNK) | Capital City Bank Group, Inc. (CCBG)(1)
National Bank Holdings Corporation (NBHC) | South Plains Financial, Inc. (SPFI)(1)

(1) New compensation peer in 2023.
2023 Executive Compensation Components
For the fiscal year ended December 31, 2023, the principal components of compensation for NEOs were:
•Base salary;
•Annual incentive program;
•Long-term equity incentive awards;
•Retirement benefits;
•Perquisites and other personal benefits; and
•Health and welfare benefits.
2023 In Review
Southside Bancshares, Inc. financial results for 2023 included a return on average shareholders' equity of 11.50% and a return on average assets of 1.11%. Net income for 2023 decreased $18.3 million, or 17.5%, compared to 2022, and diluted earnings per common share decreased $0.44, or 13.5%. During 2023, loans increased 9.1%, deposits increased 5.7% and nonperforming assets as a percentage of total assets decreased to 0.05%.
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Base Salary
The Company provides NEOs and other employees with a base salary to compensate them for services rendered during the fiscal year. Base salaries for NEOs are determined based on their position and responsibility by using comparable market data adjusted for duties and responsibilities.
During the review of base salaries for executives, the Committee primarily considers:
•Compensation Peer Group data;
•Internal review of the executive’s compensation, both individually and relative to other officers;
•Overall individual performance of the executive;
•Scope of responsibilities;
•Experience; and
•Tenure with the Company.
Salary levels are typically considered annually as part of the Company’s performance review process, as well as upon a promotion or other change in job responsibility. Merit-based increases to salaries of NEOs are based on the Committee’s assessment of performance after considering recommendations of the CEO (other than with respect to himself). The NEO salaries for 2023 were approved by the Committee based on the CEO’s recommendations for the other NEOs and Company performance.
After considering all of the relevant factors and the performance of each executive, the Committee decided that Lee R. Gibson and Julie N. Shamburger would receive a 4.5% and 4.0% increase in base salary for 2023, respectively. Tim Alexander and Brian K. McCabe received a 3.2% and 3.0% increase in base salary for 2023, respectively. T. L. Arnold, Jr. received a 4.0% increase in base salary effective January 1, 2023, and received an additional market increase of 7.5% on September 1, 2023.
Annual Incentive Program
The Company's Annual Incentive Program (“AIP”) provides the Company's most senior executive officers with an opportunity to earn cash awards based on achievement of performance measures established by the Committee. We believe a significant amount of executive compensation should be contingent on Company performance. The AIP formalizes this philosophy for our top executives by providing a cash incentive for the attainment of profitable growth and stable financial operating conditions.
Performance measures include quantitative performance goals and a qualitative scorecard. Performance measures are selected based on the role of the participant and their contributions to the Company. For the CEO, CFO, CLO and COO, performance measures selected were Earnings Per Share (“EPS”), Loan Growth, Return on Average Tangible Common Equity (“ROATCE”) and qualitative scorecard. Performance measures selected for the CCO were EPS, ROATCE, Non-Performing Assets (“NPAs”), and qualitative scorecard.
Weightings are used to differentiate the relative importance or priority of the performance measures. Each participant is assigned a weighting for each performance measure by the Committee, with a total weighting of 100%. Each performance measure is weighted a minimum of 5%, with the total quantitative performance goals weighted 75%, and the qualitative scorecard weighted 25%. The payout for performance measures ranges from minimum threshold of 50%, target of 100% and maximum of 150%. Payout for performance between the minimum threshold, target and maximum is calculated on a straight line basis, and performance below the minimum threshold results in no payout.
Each participant is assigned a target award by the Committee, calculated as a percentage of base salary for the program year, which represents 100% target payout of all performance measures. For 2023, the Committee evaluated the AIP and increased the weighting of the target payout for certain NEOs as follows:

|  | AIP 2022 |  | AIP 2023
Name |  | Target as a % of Salary |  | Target as a % of Salary
Lee R. Gibson |  | 45.0 | % |  | 50.0 | %
Julie N. Shamburger |  | 37.5 | % |  | 42.5 | %
Tim Alexander |  | 32.5 | % |  | 32.5 | %
Brian K. McCabe |  | 32.5 | % |  | 37.5 | %
T. L. Arnold, Jr. |  | 32.5 | % |  | 40.0 | %

The qualitative scorecard represents 25% of total performance, the committee sets scorecard goals specific to each participant at the beginning of the program year. Such goals include developing new programs, succession coaching, developing talent and other strategic initiatives.
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See the 2023 Grants of Plan-Based Awards table below for Threshold, Target and Maximum amounts for the NEOs under the AIP.
The following table presents the performance measures and performance goals for the NEOs determined by the committee, as well as the actual results and payout as a % of the target for 2023:

Performance Measure | Threshold | Target | Maximum | 2023 | Actual Payout as a % of Weighted Target
50% Payout | 100% Payout | 150% Payout | Results
EPS | $ | 3.15 |  | $ | 3.50 |  | $ | 4.03 |  | $ | 3.10 |  | (1) | —%
Loan Growth | 7.00 | % | 9.00 | % | 11.00 | % | 9.09 | % |  | 102.3%
NPAs as a % of Total Assets | 0.35 | % | 0.14 | % | 0.10 | % | 0.05 | % |  | 150.0%
ROATCE | 17.32 | % | 19.24 | % | 22.13 | % | 17.60 | % | (1) | 57.3%
Qualitative Scorecard |  | Above Target | 135%(2) 130%(3)

(1) Net income was adjusted for net securities losses, net of tax, in the amount of $8.6 million for the purpose of this calculation.
(2) Payout for Lee R. Gibson, Julie N. Shamburger, Tim Alexander and T. L. Arnold, Jr. was 135%.
(3) Payout for Brian K. McCabe was 130%.
The following table presents for each NEO weightings for performance measures, total payout as a percentage of base salary, and total payout for 2023:

Performance Measure | Performance Measure Weighting
Gibson | Shamburger | Alexander | McCabe | Arnold
EPS | 40% | 40% | 40% | 40% | 40%
Loan Growth | 15% | 15% | 20% | 15% | N/A
ROATCE | 20% | 20% | 15% | 20% | 15%
NPAs as a % of Total Assets | N/A | N/A | N/A | N/A | 20%
Scorecard | 25% | 25% | 25% | 25% | 25%
Target Payout as a % of Base Salary | 50.0% | 42.5% | 32.5% | 37.5% | 40.0%
Total Payout as a % of Target Payout | 60.5% | 60.5% | 62.8% | 59.3% | 72.3%
Total Payout ($) | $245,092 | $119,139 | $113,264 | $79,716 | $108,371

Long-Term Equity Incentive Awards
The Southside Bancshares, Inc. 2017 Incentive Plan (the “2017 Incentive Plan”) provides for the grant of equity awards to our employees, officers, directors and consultants. The primary purpose of the 2017 Incentive Plan is to promote Company success by linking the personal interests of our employees, officers, directors and consultants to those of our shareholders, and by providing participants with an incentive for outstanding performance. The 2017 Incentive Plan outlines the type of incentive awards to be granted under the plan.
In 2021, the Committee engaged Meridian to assist in designing a new Long-Term Equity Incentive Program (the "Program"), which started in fiscal year 2022. The Program provides the framework for long-term equity awards consisting of 50% performance-based restricted stock units (“PSUs”) and 50% time-based restricted stock units ("RSUs"), issuable pursuant to the 2017 Incentive Plan. In 2023, the Committee granted PSUs and RSUs to the NEOs. The RSUs vest in equal annual installments over three years, subject to the grantee's continued employment on each vesting date. The PSUs cliff vest on the third anniversary of the grant date, subject to the grantee's continued employment on such date, and will be earned based on the Company's ROATCE relative to ROATCE of the KBW Nasdaq Regional Bank Index (NASDAQ: KRX) (the “Peer Group”), over a 3 year performance period, beginning January 1, 2023. Performance awards may be earned and vest between 0% and 150% of the target award, as outlined in the table below. See further information on the 2023 grants of the RSUs and PSUs in the 2023 Grants of Plan-Based Awards Table below.
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Company ROATCE Performance / Funding Scale
Company ROATCE Percentile Ranking Relative to ROATCE Peer Group |  | Percentage of Target Award Earned(1)
Below 25% |  | —%
25% |  | 50%
40% |  | 80%
50% |  | 100%
60% |  | 120%
75% or greater |  | 150%

(1) Payouts between performance levels will be determined based on straight line interpolation, and performance below the minimum threshold results in no share payout.
Compensation Recoupment Policy
During 2023, the Board approved a Compensation Recoupment Policy consistent with applicable Nasdaq listing standards and Rule 10D-1 under the SEC's Exchange Act. The Compensation Recoupment Policy provides for Southside’s recovery of incentive-based compensation, and service-based compensation when applicable, to executive officers in certain circumstances, including erroneously awarded compensation in the event of an accounting restatement, as well as discretionary recoupment in cases of misconduct. The Compensation Recoupment Policy is available in our exhibits to Form 10-K for the year ended December 31, 2023, filed with the SEC on February 27, 2024.
Executive Stock Ownership Policy
The Company maintains a stock ownership policy that determines the amount of common stock that should be held by the Company’s executive officers. The policy specifies the value of Company stock (the “Required Market Value”), as a multiple of the executive officer’s base salary in effect as of the time the executive first becomes subject to the policy, which must be held by each executive officer, as follows:

| Position |  | Multiple
| Chief Executive Officer |  | 3x Base Salary
| Chief Financial Officer |  | 2x Base Salary
| Chief Lending Officer |  | 2x Base Salary
| Other Executive Officers |  | One-half Base Salary

The CEO, CFO and CLO are strongly encouraged to achieve ownership of a sufficient number of shares to satisfy the Required Market Value within five years of first becoming subject to the policy, and other executive officers are strongly encouraged to comply with the policy within seven years of first becoming subject to the policy.
In order to meet the stock ownership requirement, an executive officer may count all shares of common stock owned by the executive (including shares held in the Company’s 401(k) Plan (the “401(k) Plan”), vested shares held in the Company's ESOP, shares held in an IRA and shares beneficially owned through a trust) and outstanding RSUs, but excluding shares underlying unexercised stock options and unearned PSUs.
Once an executive officer has obtained shares having a value equal or greater to the Required Market Value, the executive’s ownership requirement is converted into a number of shares determined by dividing the Required Market Value by the then-current stock price (the “Required Share Level”). Once an executive’s Required Share Level is determined, he or she must continue to beneficially own at least that number of shares in order to be in compliance with the policy. An executive’s Required Market Value and Required Share Level will be recalculated in connection with a salary increase relating to a change in title, but otherwise will not change as a result of changes in base salary or fluctuations in the price of the Company’s stock.
Executive officers who are not in compliance with the policy after the applicable five or seven year period are required to retain 50% of the shares received upon exercise or conversion of equity incentive awards.
For each NEO, the following table shows the number of shares deemed held under the policy and the percentage of the ownership requirement they have reached.
Southside Bancshares, Inc. | 2024 Proxy Statement | 28

|  | Stock Ownership at |  | Stock Held as a % of
Name |  | March 20, 2024 |  | Ownership Requirement
Lee R. Gibson |  | 93,044 |  |  | >100%
Julie N. Shamburger |  | 39,456 |  |  | >100%
Tim Alexander |  | 31,343 |  |  | >100%
Brian K. McCabe |  | 36,766 |  |  | >100%
T. L. Arnold, Jr. |  | 17,836 |  |  | >100%

Retirement Benefits
Retirement benefits fulfill an important role within the Company’s overall executive compensation program because they provide a financial security component which promotes retention. We place great value on the long-term commitment that many of our employees and the NEOs have made to us and aim to incent those individuals to remain with the Company and to act in a manner that will provide long-term benefits to the Company. The Company believes its retirement program is comparable to those offered by the banks in our Compensation Peer Group and, as a result, is needed to ensure that our executive compensation remains competitive.
Our retirement plans are designed to encourage employees to take an active role in planning, saving and investing for retirement. The Company maintains a 401(k) Plan, a tax-qualified defined contribution plan in which substantially all of our employees, including the NEOs, are eligible to participate. The Company also maintains a tax-qualified defined benefit pension plan (the “Pension Plan”), pursuant to which participants are entitled to benefits, as well as a non-qualified supplemental retirement plan (the “Restoration Plan”) which provides benefits in addition to the Pension Plan. Effective December 31, 2020, all future benefit accruals and accrual of benefit service, including consideration of compensation increases, were frozen. No further benefits have been or will be earned by employees since that date. The participants are entitled to benefits based on average monthly compensation and years of credited service as of December 31, 2020. The Pension Plan and the Restoration Plan are described in more detail under the Pension Benefits Table in this proxy statement.
The Company has entered into deferred compensation agreements with each of the NEOs, with the exception of T. L. Arnold, Jr., that provide for the payment of a stated amount over a specific period of years. These deferred compensation agreements are described in more detail under the Pension Benefits Table in this proxy statement.
The Company has split dollar agreements with Lee R. Gibson and Julie N. Shamburger, which allow the executives to designate the beneficiaries of death benefits under a life insurance policy. These agreements are described in more detail under the Summary Compensation Table in this proxy statement.
Perquisites and Other Personal Benefits
The Company provides NEOs with perquisites and other personal benefits the Company and the Committee believe are reasonable and consistent with its overall compensation program to better enable the Company to attract and retain superior employees for key positions. The Committee periodically reviews the levels of perquisites and other personal benefits provided to NEOs. There were no changes in the types of perquisites provided in 2023. Perquisites provided to NEOs during 2023 were Company paid club dues for each NEO, with the exception of T. L. Arnold, Jr., and a Company provided automobile for Julie N. Shamburger and Tim Alexander. Club memberships are made available to various officers who are expected to routinely entertain customers or prospective customers.
Health and Welfare Benefits
The Company offers a standard range of health and welfare benefits on a uniform basis and subject to insurance policy limitations to employees, including NEOs, and their eligible dependents. The benefits are designed to attract and retain employees and provide security to employees for their health and welfare needs. The benefits include: medical, prescription, dental, vision, employee life, group life, health savings accounts and flexible spending accounts. NEOs participate in these employee benefit plans, which are generally available to full-time employees on the same terms as a similarly situated employee. Another benefit available to officers at or above the Vice President level and meeting a service requirement is a bank-provided long-term disability insurance policy which includes accidental death and travel insurance plans and programs.
Severance
The Company entered into Employee Agreements with Lee R. Gibson in October 2007, Julie N. Shamburger in June 2008, Brian K. McCabe in November 2008 and T. L. Arnold, Jr. in April 2014, each of which provide for severance payments and benefits in the event the NEO’s employment is terminated by the Company without “cause,” by the executive for “good reason,” or as a result of a “change in control” (as such terms are defined in the employment agreements). The Board determined providing severance protection to the NEOs is in the best interest of the Company because providing severance benefits is a necessary tool in the competitive marketplace to attract and retain the services of talented executives who are critical to the success of the
Southside Bancshares, Inc. | 2024 Proxy Statement | 29

Company. The severance and change in control termination amounts were negotiated based on the NEO's tenure, scope of responsibilities and other provisions in the agreement.
For a further discussion of severance payments, please see the terms of the Employment Agreements in this proxy statement.
Tax and Accounting Considerations
Section 162(m) of the Internal Revenue Code places a limit of $1 million on the amount of compensation that we may deduct in any year with respect to any one of our NEOs.
The Committee intends to maximize deductibility of executive compensation while retaining discretion needed to compensate executives in a manner commensurate with performance and the competitive landscape for executive talent.
Southside Bancshares, Inc. | 2024 Proxy Statement | 30

EXECUTIVE COMPENSATION

The following table sets forth the compensation earned by or paid to each of the NEOs for the fiscal years ended December 31, 2023, 2022 and 2021. This information relates to compensation paid to the NEO's by Southside Bank, as the Company does not directly pay compensation to the NEOs.
SUMMARY COMPENSATION TABLE

Name Principal Position |  | Year |  | Salary ($) (1) |  | Bonus ($) |  | Stock Awards ($) (2) |  | Non-Equity Incentive Plan Compensation ($) (3) |  | Change in Pension Value ($) (4) |  | All Other Compensation ($) (5) |  | Total ($)
Lee R. Gibson, CPA – President, Chief Executive Officer and Director of the Company and Southside Bank |  | 2023 |  | $ | 809,608 |  |  | $ | — |  |  | $ | 283,353 |  |  | $ | 245,092 |  |  | $ | 769,701 |  |  | $ | 26,963 |  |  | $ | 2,134,717 |
| 2022 |  | 774,744 |  |  | — |  |  | 271,144 |  |  | 478,211 |  |  | — |  |  | 25,497 |  |  | 1,549,596 |
| 2021 |  | 736,450 |  |  | 500 |  |  | 125,187 |  |  | 377,799 |  |  | 172,927 |  |  | 29,838 |  |  | 1,442,701 |
Julie N. Shamburger, CPA – Chief Financial Officer of the Company and Southside Bank and advisory director of Southside Bank |  | 2023 |  | 463,000 |  |  | — |  |  | 124,992 |  |  | 119,139 |  |  | 247,828 |  |  | 27,983 |  |  | 982,942 |
| 2022 |  | 445,000 |  |  | — |  |  | 120,128 |  |  | 228,897 |  |  | — |  |  | 26,497 |  |  | 820,522 |
| 2021 |  | 425,000 |  |  | 500 |  |  | 55,247 |  |  | 181,688 |  |  | — |  |  | 23,981 |  |  | 686,416 |
Tim Alexander – Chief Lending Officer of the Company and Southside Bank and advisory director of Southside Bank |  | 2023 |  | 555,000 |  |  | — |  |  | 138,760 |  |  | 113,264 |  |  | 185,543 |  |  | 34,797 |  |  | 1,027,364 |
| 2022 |  | 538,000 |  |  | 100 |  |  | 134,486 |  |  | 239,836 |  |  | — |  |  | 94,321 |  |  | 1,006,743 |
| 2021 |  | 527,000 |  |  | 600 |  |  | 57,964 |  |  | 180,695 |  |  | 14,644 |  |  | 28,855 |  |  | 809,758 |
Brian K. McCabe – Chief Operations Officer of the Company and Southside Bank and advisory director of Southside Bank |  | 2023 |  | 358,500 |  |  | — |  |  | 89,603 |  |  | 79,716 |  |  | 190,656 |  |  | 32,647 |  |  | 751,122 |
| 2022 |  | 348,000 |  |  | — |  |  | 86,986 |  |  | 155,136 |  |  | — |  |  | 23,934 |  |  | 614,056 |
| 2021 |  | 340,000 |  |  | 600 |  |  | 37,418 |  |  | 122,655 |  |  | — |  |  | 23,290 |  |  | 523,963 |
T.L. Arnold, Jr. – Chief Credit Officer of the Company and Southside Bank and advisory director of Southside Bank |  | 2023 |  | 357,167 |  |  | — |  |  | 87,114 |  |  | 108,371 |  |  | — |  |  | 19,132 |  |  | 571,784 |
| 2022 |  | 335,000 |  |  | 100 |  |  | 83,730 |  |  | 145,711 |  |  | — |  |  | 18,169 |  |  | 582,710 |
| 2021 |  | 321,000 |  |  | 500 |  |  | 35,314 |  |  | 139,274 |  |  | — |  |  | 17,538 |  |  | 513,626 |

(1)Includes amounts deferred at the officer’s election pursuant to the Company’s 401(k) Plan.
(2)Reflects the aggregate grant date fair value of RSUs and PSUs determined in accordance with FASB ASC Topic 718. Grant date fair value for RSUs is based on the fair market value of our common stock on the grant date. Grant date fair value for PSUs is based on the fair market value of our common stock on the grant date and the probable outcome of performance-based conditions at the time of grant. Assuming achievement of the PSU performance conditions at the highest level (rather than at target level), the aggregate grant date fair value of awards reflected in this column for 2023 would be higher by the following amounts: Mr. Gibson, $70,858; Ms. Shamburger, $31,268; Mr. Alexander, $34,690; Mr. McCabe, $22,401; and Mr. Arnold, $21,778.
(3)Reflects amounts earned under the Annual Incentive Program. See the discussion above for more information regarding these performance-based cash bonuses.
(4)The amounts reported in this column reflect the change in aggregate actuarial present value of the NEOs accumulated benefits under the Pension Plan and the Restoration Plan determined using interest rate and mortality rate assumptions consistent with those used in the Company’s financial statements. The changes in pension values for the NEOs in 2023 under the Pension Plan were as follows: Lee R. Gibson – $235,505; Julie N. Shamburger – $154,304; Tim Alexander – $77,535; and Brian K. McCabe – $154,777. The changes in pension value for the NEOs under the Restoration Plan were as follows: Lee R. Gibson – $534,196; Julie N. Shamburger – $93,524; Tim Alexander – $108,008; and Brian K. McCabe – $35,879. Mr. Arnold does not participate in the Pension Plan or the Restoration Plan. Descriptions of the Pension Plan and Restoration Plan follow the Pension Benefits Table in this proxy statement.
(5)Amounts included in this column for 2023 are detailed in the All Other Compensation Table below.
Southside Bancshares, Inc. | 2024 Proxy Statement | 31

2023 ALL OTHER COMPENSATION TABLE |
|  | Gibson |  | Shamburger |  | Alexander |  | McCabe |  | Arnold |
Company Provided Automobile (a) |  | $ | — |  |  | $ | 3,417 |  |  | $ | 8,077 |  |  | $ | — |  |  | $ | — |  |
Club Dues (b) |  | 7,831 |  |  | 5,434 |  |  | 7,588 |  |  | 6,621 |  |  | — |  |
401(k) Matching Contribution (c) |  | 13,200 |  |  | 13,200 |  |  | 13,200 |  |  | 13,200 |  |  | 13,200 |  |
ESOP Contribution (d) |  | 5,932 |  |  | 5,932 |  |  | 5,932 |  |  | 5,932 |  |  | 5,932 |  |
PTO Cash Out |  | — |  |  | — |  |  | — |  |  | 6,894 |  |  | — |  |
Total |  | $ | 26,963 |  |  | $ | 27,983 |  |  | $ | 34,797 |  |  | $ | 32,647 |  |  | $ | 19,132 |  |

(a)Julie N. Shamburger and Tim Alexander had use of a Company provided automobile in 2023. The total incremental cost to the Company during 2023 includes fuel, maintenance and insurance costs.
(b)The incremental cost of Company provided club dues to the NEOs.
(c)All NEO's are 100% vested in our 401(k) Plan.
(d)All NEO's are 100% vested in our ESOP.
CEO Pay Ratio Disclosure
The CEO pay ratio figures below are a reasonable estimate calculated in a manner consistent with Item 402(u) of Regulation S-K under the Exchange Act.
We determined that as of December 31, 2023, our total number of active U.S. employees was 822. To determine our median employee pay, we chose gross compensation as our consistently applied compensation measure. We then annualized base salary for those employees who commenced work during 2023 and any employees who were on leave for a portion of 2023. For hourly employees, we used a reasonable estimate of hours worked to determine annual base pay.
Using this methodology, we identified the median employee, and that person's total annual compensation was $52,615. The total annual compensation of our CEO was $2,134,717. Accordingly, the ratio of CEO pay to median employee pay was 41:1.
Employment Agreements
The Company maintains employment agreements with Lee R. Gibson, Julie N. Shamburger, Brian K. McCabe and T. L. Arnold, Jr. (the “Employment Agreements”). The Employment Agreement with Mr. Gibson was entered into as of October 22, 2007, and had an initial term through October 22, 2010, with automatic one-year term extensions on each anniversary of the effective date, until a party gives 90 days' notice of non-renewal. Mr. Gibson's agreement is now in effect until October 22, 2026. The Employment Agreement with Ms. Shamburger was entered into as of June 4, 2008, and had an initial term through June 4, 2010, with automatic one-year term extensions on each anniversary of the effective date, until a party gives 90 days' notice of non-renewal. The employment term was amended to a three-year term on October 25, 2018, with automatic one-year term extensions on each anniversary of the amendment date, until a party gives 90 days' notice of non-renewal. This agreement is now in effect until October 25, 2026. The Employment Agreement with Mr. McCabe was entered into as of November 17, 2008 and had an initial term through November 17, 2011, with automatic one-year term extensions on each anniversary of the effective date, until a party gives 90 days' notice of non-renewal. This agreement is now in effect until November 17, 2026. The Employment Agreement with Mr. Arnold was entered into as of April 28, 2014 and had an initial term through April 28, 2017, with automatic one-year term extensions on each anniversary of the effective date, until a party gives 90 days' notice of non-renewal. This agreement is now in effect until April 28, 2026.
The Employment Agreements provide for an annual base salary to be reviewed no less frequently than annually by the Committee, and entitle the executives to participate in the Company's annual incentive program (with a payment of not less than 12.5% of base salary, except in the case of Mr. Arnold). The amount actually awarded and paid to the executives each year will be determined by the Committee and may be based on specific performance criteria.
The Employment Agreements entitle the executives to participate in all incentive, savings and retirement plans or programs and welfare and fringe benefits which are generally available to officers of the Company of comparable levels. In addition, the Employment Agreements state that the Company may pay annual country club dues and expenses for each of the executives.
The Employment Agreements also provide the executives with severance benefits in the event of certain terminations of employment. These benefits are described in “Potential Payments upon Termination or Change in Control.”
Southside Bancshares, Inc. | 2024 Proxy Statement | 32

Split Dollar Agreements
The Bank has split dollar agreements with Lee R. Gibson, effective September 7, 2004, and Julie N. Shamburger, effective February 25, 2021. The agreements provide that the Bank will be the owner and beneficiary of Bank Owned Life Insurance (commonly referred to as BOLI) insuring the executives' lives and provide the executives the right to designate the beneficiaries of the death benefits guaranteed in the agreement. Mr. Gibson's agreement originally provided for death benefits in an aggregate amount of $700,000, and Ms. Shamburger's agreement originally provided for death benefits of $1.2 million. In both agreements, the amount is increased annually on the anniversary date of the agreement by an inflation adjustment factor of 5%. The agreement also states that after the executives' retirement date, the Company will pay an annual gross-up bonus to the executives in an amount sufficient to enable the executive to pay federal income tax on both the economic benefit and on the gross-up bonus itself.
As of December 31, 2023, the expected death benefits for Mr. Gibson and Mr. Shamburger totaled $1.8 million and $1.4 million, respectively, under these agreements. There was approximately $95,000 of benefit associated with the post retirement liability for the year ended December 31, 2023.
2023 GRANTS OF PLAN-BASED AWARDS
The table below sets forth information regarding grants of plan-based awards to the NEOs for the fiscal year ended December 31, 2023:

Name |  | Award Type |  | Grant Date |  | Estimated Future Payouts Under Non-Equity Incentive Plan Awards (1) |  | Estimated Future Payouts Under Equity Incentive Plan Awards (2) |  | All Other Stock Awards: Number of Shares of Stock or Units (#) (3) |  | Grant Date Fair Value of Stock and Option Awards ($) (4)
Threshold ($) |  | Target ($) |  | Maximum ($) |  | Threshold (#) |  | Target (#) |  | Maximum (#) |
Lee R. Gibson |  | AIP |  | — |  |  | $ | 202,402 |  |  | $ | 404,804 |  |  | $ | 607,206 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | $ | — |
| PSU |  | 2/2/2023 |  | — |  |  | — |  |  | — |  |  | 1,822 |  |  | 3,643 |  |  | 5,465 |  |  | — |  |  | 141,676 |
| RSU |  | 2/2/2023 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,643 |  |  | 141,676 |
Julie N. Shamburger |  | AIP |  | — |  |  | 98,388 |  |  | 196,775 |  |  | 295,163 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
| PSU |  | 2/2/2023 |  | — |  |  | — |  |  | — |  |  | 804 |  |  | 1,607 |  |  | 2,411 |  |  | — |  |  | 62,496 |
| RSU |  | 2/2/2023 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,607 |  |  | 62,496 |
Tim Alexander |  | AIP |  | — |  |  | 90,188 |  |  | 180,375 |  |  | 270,563 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
| PSU |  | 2/2/2023 |  | — |  |  | — |  |  | — |  |  | 892 |  |  | 1,784 |  |  | 2,676 |  |  | — |  |  | 69,380 |
| RSU |  | 2/2/2023 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,784 |  |  | 69,380 |
Brian K. McCabe |  | AIP |  | — |  |  | 67,219 |  |  | 134,438 |  |  | 201,656 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
| PSU |  | 2/2/2023 |  | — |  |  | — |  |  | — |  |  | 576 |  |  | 1,152 |  |  | 1,728 |  |  | — |  |  | 44,801 |
| RSU |  | 2/2/2023 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,152 |  |  | 44,801 |
T. L. Arnold, Jr. |  | AIP |  | — |  |  | 74,900 |  |  | 149,800 |  |  | 224,700 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
| PSU |  | 2/2/2023 |  | — |  |  | — |  |  | — |  |  | 560 |  |  | 1,120 |  |  | 1,680 |  |  | — |  |  | 43,557 |
| RSU |  | 2/2/2023 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,120 |  |  | 43,557 |

(1)Amounts reflect threshold, target and maximum payout levels for 2023 performance under the 2023 Annual Incentive Program. For more information regarding the 2023 Annual Incentive Program, see the discussion in “Compensation Discussion and Analysis.”
(2)Amounts reflect threshold, target and maximum payout levels for PSUs granted in 2023, pursuant to the Company's 2017 Incentive Plan, which may be earned based on the Company’s level of achievement of performance goals related to ROATCE, and cliff vest on the third anniversary of the grant date, subject to the grantee's continued employment on such date, or earlier upon the death or disability of the grantee, or upon a change in control in which the successor company does not assume or otherwise equitably convert the awards. For more information regarding the PSUs and payout, see the discussion in “Compensation Discussion and Analysis.”
(3)Reflects RSUs granted under the 2017 Incentive Plan. The RSUs vest annually in three equal installments beginning on the first anniversary of the grant date, subject to the grantee's continued employment on such date, or earlier upon the death or disability of the grantee, or upon a change in control in which the successor company does not assume or otherwise equitably convert the awards.
(4)Reflects the aggregate grant date fair value of the award determined in accordance with FASB ASC Topic 718. Grant date fair value for RSUs is based on the fair market value of our common stock on the grant date. Grant date fair value for PSUs is based on the fair market value of our common stock on the grant date and the probable outcome of performance-based conditions at the time of grant, excluding the effect of estimated forfeitures.
Southside Bancshares, Inc. | 2024 Proxy Statement | 33

OUTSTANDING EQUITY AWARDS AT 2023 FISCAL YEAR END
The table below sets forth information regarding outstanding stock options and stock awards, which includes RSUs and PSUs, held by the NEOs as of December 31, 2023:

|  |  | Option Awards (1) |  | Stock Awards (2)
Name | Grant Date | Vesting Period (Years) (3) | Number of Securities Underlying Unexercised Options (#) Exercisable |  | Number of Securities Underlying Unexercised Options (#) Un-exercisable |  | Option Exercise Price ($) |  | Option Expiration Date |  | Number of Shares or Units of Stock that have not Vested (#) |  | Market Value of Shares or Units of Stock that have not Vested ($) (4) | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) (5) |  | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) (4)
Lee R. Gibson | 6/18/2015 | 3 |  | 18,997 |  |  | — |  |  | $ | 26.49 |  |  | 6/18/2025 |  | — |  |  | $ | — |  | — |  |  | $ | — |
11/23/2016 | 3 |  | 16,304 |  |  | — |  |  | 37.28 |  |  | 11/23/2026 |  | — |  |  | — |  | — |  |  | — |
6/18/2018 | 3 |  | 24,095 |  |  | — |  |  | 34.50 |  |  | 6/18/2028 |  | — |  |  | — |  | — |  |  | — |
11/21/2019 | 3 |  | 28,178 |  |  | — |  |  | 34.83 |  |  | 11/21/2029 |  | — |  |  | — |  | — |  |  | — |
6/29/2021 | 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,205 |  |  | 37,741 |  | — |  |  | — |
2/3/2022 | 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,349 |  |  | 73,571 |  | — |  |  | — |
2/3/2022 | 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  | 5,283 |  |  | 165,464 |
2/2/2023 | 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,810 |  |  | 119,329 |  | — |  |  | — |
2/2/2023 | 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  | 5,715 |  |  | 178,994 |
Julie N. Shamburger | 6/18/2015 | 4 |  | 5,460 |  |  | — |  |  | 26.49 |  |  | 6/18/2025 |  | — |  |  | — |  | — |  |  | — |
11/23/2016 | 3 |  | 6,461 |  |  | — |  |  | 37.28 |  |  | 11/23/2026 |  | — |  |  | — |  | — |  |  | — |
6/18/2018 | 3 |  | 8,881 |  |  | — |  |  | 34.50 |  |  | 6/18/2028 |  | — |  |  | — |  | — |  |  | — |
11/21/2019 | 3 |  | 11,182 |  |  | — |  |  | 34.83 |  |  | 11/21/2029 |  | — |  |  | — |  | — |  |  | — |
6/29/2021 | 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | 532 |  |  | 16,662 |  | — |  |  | — |
2/3/2022 | 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,041 |  |  | 32,604 |  | — |  |  | — |
2/3/2022 | 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  | 2,340 |  |  | 73,289 |
2/2/2023 | 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,681 |  |  | 52,649 |  | — |  |  | — |
2/2/2023 | 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  | 2,522 |  |  | 78,989 |
Tim Alexander | 6/18/2015 | 4 |  | 1,788 |  |  | — |  |  | 26.49 |  |  | 6/18/2025 |  | — |  |  | — |  | — |  |  | — |
11/23/2016 | 3 |  | 7,537 |  |  | — |  |  | 37.28 |  |  | 11/23/2026 |  | — |  |  | — |  | — |  |  | — |
6/18/2018 | 3 |  | 13,060 |  |  | — |  |  | 34.50 |  |  | 6/18/2028 |  | — |  |  | — |  | — |  |  | — |
11/21/2019 | 3 |  | 15,186 |  |  | — |  |  | 34.83 |  |  | 11/21/2029 |  | — |  |  | — |  | — |  |  | — |
6/29/2021 | 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | 558 |  |  | 17,477 |  | — |  |  | — |
2/3/2022 | 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,165 |  |  | 36,488 |  | — |  |  | — |
2/3/2022 | 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  | 2,621 |  |  | 82,090 |
2/2/2023 | 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,866 |  |  | 58,443 |  | — |  |  | — |
2/2/2023 | 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  | 2,799 |  |  | 87,665 |
Brian K. McCabe | 11/23/2016 | 4 |  | 3,648 |  |  | — |  |  | 37.28 |  |  | 11/23/2026 |  | — |  |  | — |  | — |  |  | — |
6/18/2018 | 3 |  | 6,716 |  |  | — |  |  | 34.50 |  |  | 6/18/2028 |  | — |  |  | — |  | — |  |  | — |
11/21/2019 | 3 |  | 7,932 |  |  | — |  |  | 34.83 |  |  | 11/21/2029 |  | — |  |  | — |  | — |  |  | — |
6/29/2021 | 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | 360 |  |  | 11,275 |  | — |  |  | — |
2/3/2022 | 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | 754 |  |  | 23,615 |  | — |  |  | — |
2/3/2022 | 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  | 1,695 |  |  | 53,087 |
2/2/2023 | 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,205 |  |  | 37,741 |  | — |  |  | — |
2/2/2023 | 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  | 1,808 |  |  | 56,627 |
T.L. Arnold, Jr. | 1/8/2015 | 4 |  | 3,999 |  |  | — |  |  | 23.66 |  |  | 1/8/2025 |  | — |  |  | — |  | — |  |  | — |
6/18/2015 | 4 |  | 4,667 |  |  | — |  |  | 26.49 |  |  | 6/18/2025 |  | — |  |  | — |  | — |  |  | — |
11/23/2016 | 4 |  | 3,420 |  |  | — |  |  | 37.28 |  |  | 11/23/2026 |  | — |  |  | — |  | — |  |  | — |
6/18/2018 | 4 |  | 4,750 |  |  | — |  |  | 34.50 |  |  | 6/18/2028 |  | — |  |  | — |  | — |  |  | — |
11/21/2019 | 4 |  | 6,367 |  |  | — |  |  | 34.83 |  |  | 11/21/2029 |  | — |  |  | — |  | — |  |  | — |
6/29/2021 | 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | 340 |  |  | 10,649 |  | — |  |  | — |
2/3/2022 | 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | 725 |  |  | 22,707 |  | — |  |  | — |
2/3/2022 | 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  | 1,632 |  |  | 51,114 |
2/2/2023 | 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,171 |  |  | 36,676 |  | — |  |  | — |
2/2/2023 | 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  | 1,757 |  |  | 55,029 |

Southside Bancshares, Inc. | 2024 Proxy Statement | 34

(1)Options were granted under the 2017 Incentive Plan and predecessor plans. All options granted are for 10-year terms with an exercise price equal to the fair market value (closing price) on the NASDAQ on the date of the grant, adjusted for stock dividends.
(2)RSUs and PSUs were granted under the 2017 Incentive Plan and have been adjusted for dividend equivalents. Fractional shares have been rounded for presentation purposes.
(3)Options and RSUs vest annually in equal installments over the years noted above, beginning on the first anniversary of the grant date, or earlier upon the death or disability of the grantee, or upon a change in control in which the successor company does not assume or otherwise equitably convert the awards. PSUs cliff vest on the third anniversary of the grant date, subject to the grantee's continued service on such date.
(4)Reflects the value calculated by multiplying the number of shares underlying the RSUs and PSUs by $31.32 which was the closing price of our common stock on December 29 2023, the last business day of 2023.
(5)PSUs may be earned based on the Company’s level of achievement of performance goals relating to ROATCE over a three-year performance period beginning January 1, 2022 and ending December 31, 2024 and January 1, 2023 and ending December 31, 2025, for PSUs granted February 3, 2022 and February 2, 2023, respectively. Amounts reported here reflect maximum levels of achievement of the performance goals.
2023 OPTION EXERCISES AND STOCK VESTED
The following table shows the number of shares and the value realized upon exercise of stock options and vesting of stock awards for the year ended December 31, 2023 for each of the NEOs.

|  | Stock Options |  | Stock Awards (RSUs)
Name |  | Option Shares Acquired on Exercise (#) |  | Option Value Realized on Exercise ($) (1) |  | Number of Shares Acquired on Vesting (#) (2) |  | Value Realized on Vesting ($) (3)
Lee R. Gibson |  | — |  |  | $ | — |  |  | 2,298 |  |  | $ | 75,534 |
Julie N. Shamburger |  | — |  |  | — |  |  | 1,015 |  |  | 33,382 |
Tim Alexander |  | — |  |  | — |  |  | 1,101 |  |  | 36,448 |
Brian K. McCabe |  | — |  |  | — |  |  | 711 |  |  | 23,543 |
T. L. Arnold, Jr. |  | — |  |  | — |  |  | 994 |  |  | 31,361 |
|  | — |  |  | $ | — |  |  | 6,119 |  |  | $ | 200,268 |

(1)Value realized represents the excess of the fair market value of the shares at the time of exercise over the exercise price of the options.
(2)Number of shares acquired does not include fractional shares, which were settled in cash.
(3)Value realized represents the fair market value of the shares on the vesting date, including fractional shares, which were settled in cash.
Southside Bancshares, Inc. | 2024 Proxy Statement | 35

2023 PENSION BENEFITS
The table below shows the number of years of service credited to each NEO, the actuarial present value of each NEO's accumulated benefits (determined using interest rate and mortality table assumptions described below), and the amount of payments during 2023 to each of the NEOs, under each of the Pension Plan, Restoration Plan and Deferred Compensation Agreements as of December 31, 2023.

Name | Plan Name | Number of Years Credited Service (#) | Present Value of Accumulated Benefit ($) | Payments During Last Fiscal Year ($)
Lee R. Gibson | Pension Plan | 36.417 | $ | 2,472,909 |  | $ | — |
Restoration Plan | 36.417 | 5,609,311 |  | — |
Deferred Compensation Agreement | N/A | 310,982 |  | — |
Julie N. Shamburger | Pension Plan | 37.583 | 1,663,738 |  | — |
Restoration Plan | 37.583 | 1,008,394 |  | — |
Deferred Compensation Agreement | N/A | 238,985 |  | — |
Tim Alexander | Pension Plan | 15.500 | 810,524 |  | — |
| Restoration Plan | 15.500 | 1,129,075 |  | — |
| Deferred Compensation Agreement | N/A | 233,236 |  | — |
Brian K. McCabe | Pension Plan | 37.583 | 1,822,401 |  | — |
Restoration Plan | 37.583 | 422,462 |  | — |
Deferred Compensation Agreement | N/A | 211,516 |  | — |
T. L. Arnold, Jr. | (1) | — | — |  | — |

(1)Mr. Arnold does not participate in the Pension Plan or the Restoration Plan, nor does he have a Deferred Compensation Agreement with the Company.
Pension Plan
The Pension Plan is a tax-qualified defined benefit pension plan pursuant to which participants are entitled to benefits based on final average monthly compensation and years of credited service.
Entrance into the Pension Plan was frozen effective December 31, 2005. Employees hired after December 31, 2005 are not eligible to participate in the Pension Plan. Effective December 31, 2020, all future benefit accruals and accrual of benefit service, including consideration of compensation increases, were frozen. No further benefits have been or will be earned by employees since that date. All participants in the Pension Plan are fully vested. All NEOs employed by the Company at December 31, 2023 were participants in the Pension Plan, with the exception of Mr. Arnold. Benefits are payable monthly commencing on the later of age 65 or the participant’s date of retirement. Eligible participants may retire at reduced benefit levels after reaching age 55.
The benefits under the Pension Plan are determined using the following formula, stated as a single life annuity with 120 payments guaranteed, payable at normal retirement age, which is defined as 65 under the Pension Plan.
Formula (1) and Formula (2), calculated using Credit Service, multiplied by a service ratio and summed as described below:

|  |  | The fraction in which the numerator is Credited
Formula (1) |  | x | Service as of 12/31/2005 and the denominator is
|  |  | total Credited Service
| plus |  |
Formula (2) |  |  | The fraction in which the numerator is Credited
|  | x | Service earned after 12/31/2005 and through
|  |  | 12/31/2020 and the denominator is total Credited Service

Formula (1) is an amount equal to:
2% of Final Average Monthly Compensation times Credited Service up to 20 years, PLUS
1% of Final Average Monthly Compensation times Credited Service, if any, in excess of 20 years, PLUS
0.60% of that portion of Final Average Monthly Compensation which exceeds Monthly Covered Compensation times Credited Service up to 35 years
Southside Bancshares, Inc. | 2024 Proxy Statement | 36

Formula (2) is an amount equal to:
0.90% of Final Average Monthly Compensation times Credited Service, PLUS
0.54% of that portion of Final Average Monthly Compensation which exceeds Monthly Covered Compensation times Credited Service up to 35 years
Benefit Formula Definitions
Credit Service
A participant’s years of credited service are based on the number of years an employee works for the Company, frozen as of December 31, 2020. The Company has no policy to grant extra years of credited service.
Final Average Monthly Compensation (FAMC)
The monthly average of the 60 consecutive months’ compensation during the participant’s period of credited service that gives the highest average. Compensation generally includes all gross income received by the participant for services actually rendered in the course of employment, with certain exclusions, plus any elective deferrals under Section 125 and Section 404(g)(c). Compensation in the Pension Plan is limited as required.
Covered Compensation
A rounded 35-year average of the Maximum Taxable Wages (MTW) under social security. The table in effect during the calendar year proceeding termination or retirement is used.
All participants must retire to be eligible to receive payments from the Pension Plan.
The pension disclosures have been computed using the FASB ASC Topic 715, “Compensation - Retirement Benefits” assumptions from the financial statements as of the pension measurement date of December 31, 2023, except the FASB ASC Topic 715 retirement age has been replaced by the normal retirement age for this calculation (and the benefit valued is only the accrued, not the projected, benefit).

| FASB ASC Topic 715 Discount Rate as of 12/31/2022 |  | 5.46%
| FASB ASC Topic 715 Discount Rate as of 12/31/2023 |  | 5.13%
| Expected Retirement Age |  | 65
| Post-Retirement Mortality |  | Pri-2012 table, projected generationally using MP-2021 scale
| Pre-Retirement Mortality, Disability or Turnover |  | None
| Form of Payment |  |
|  | Qualified Retirement Plan |  | 10-Year Certain & Life Annuity
|  | Nonqualified Restoration Plan |  | 10-Year Certain & Life Annuity

For a further discussion of the FASB ASC Topic 715 assumptions, please see “Note 10 - Employee Benefits” to our consolidated financial statements on Form 10-K, filed with the SEC on February 27, 2024.
Restoration Plan
The annual retirement income benefit for NEOs under the Pension Plan is subject to certain limitations imposed by the Internal Revenue Code. Under one such limitation, in determining the benefit accrued for a year under the Pension Plan, the benefit formula excludes a NEOs compensation above a specified compensation limit. In 2023, for example, the ceiling was $330,000, which means that the compensation of NEOs in excess of that amount was not considered in the benefit formula for purposes of determining benefits under the Pension Plan. The Company maintains the Restoration Plan, a non-qualified supplemental retirement plan which provides additional benefits by taking into account the excess compensation not taken into account under the Pension Plan. The Restoration Plan is unfunded and noncontributory, which means that benefits are paid from the general assets of the Company and the NEOs are not required to make any contributions. Effective December 31, 2020, all future benefit accruals and accrual of benefit service, including consideration of compensation increases, were frozen. No further benefits have been or will be earned by employees since that date. The formula and assumptions used to calculate the benefit payable pursuant to the Restoration Plan are the same as those used under the Pension Plan described above, except that the amounts payable under the Restoration Plan are reduced by the amounts payable under the Pension Plan.
Deferred Compensation Agreements
Under the terms of their deferred compensation agreements, Lee R. Gibson is entitled to receive $400,000, Julie N. Shamburger is entitled to receive $500,000, and Tim Alexander and Brian K. McCabe are each entitled to receive $300,000, all of which are payable monthly over 10 years, if the executive remains in the employment of Southside Bank until retirement (on or after age 65), or upon permanent disability or death, whichever occurs first. If the executive’s employment is involuntarily terminated by the Company for any reason other than for “good cause” (as defined in the agreements), such termination shall be treated the same as a retirement, and the executive shall be entitled to receive the payments. If, prior to a “change in control” (as defined in
Southside Bancshares, Inc. | 2024 Proxy Statement | 37

the agreements), the executive terminates his or her employment prior to attainment of age 65 for any reason other than death or disability, no amounts shall be due such executive under his or her deferred compensation agreement. If, after a change in control, the executive terminates employment prior to attainment of age 65 for any reason other than death, disability, or for “good reason” (as defined in the agreements), no amounts shall be due to the executive under the agreement. After a change in control, a termination by the executive for good reason shall be treated the same as a retirement, and the executive shall be entitled to receive the payments.
POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE IN CONTROL
The following discussion summarizes the compensation benefits payable to the NEOs in the event of a termination of their employment under various circumstances, assuming that the termination occurred on December 31, 2023.
Vested Benefits
Upon termination of employment, the NEOs would receive any vested compensation and benefits. This would include accrued but unpaid salary, accrued and unused vacation pay, and any balance under the 401(k) Plan and ESOP. In addition, eligible NEOs would receive benefits under the Pension Plan and Restoration Plan, plus amounts payable under deferred compensation agreements, as disclosed and described above in the 2023 Pension Benefits Table.
Employment Agreements
In addition, the Company has employment agreements with Lee R. Gibson, Julie N. Shamburger, Brian K. McCabe and T. L. Arnold, Jr. which entitle each of the executives to certain payments and benefits upon termination or termination in connection with a change in control, as summarized below.
Voluntary termination by the executive; termination by the Company with Cause. If an executive voluntarily terminates his or her employment or the Company terminates the executive’s employment with Cause (as defined in the Employment Agreements), the executive will be entitled to receive his or her accrued salary and previously vested benefits. In this event, no special severance benefits are payable.
Involuntary termination. If the Company terminates the executive’s employment without Cause, the executive will be entitled to receive a single lump sum equal to:
•any accrued but unpaid base salary;
•a severance payment equal to the executive’s monthly salary multiplied by the number of months remaining in the term of the Employment Agreement (which would be between 24 and 36 months), plus $10,000 for Lee R. Gibson, Julie N. Shamburger and Brian K. McCabe;
•a pro-rata bonus equal to the product of (i) the executive’s Target Bonus (as defined in the Employment Agreements) for the termination year (or, in the case of T.L. Arnold, Jr., the actual bonus he would have earned for the year of termination) and (ii) a fraction, the numerator of which is the number of days in the current fiscal year through the termination date, and the denominator of which is 365; and
•any vested compensation deferred by the executive (unless otherwise required by an agreement).
Additionally, all equity awards will become immediately vested and exercisable as of the date of termination. Finally, the executive will be entitled to any other amounts or benefits under any other plan pursuant to which the executive is eligible to receive benefits, to the extent officers of a comparable level at the Company received such benefits prior to the date of termination (“Other Benefits”).
Termination in connection with Change in Control. If an executive’s employment is terminated by the Company due to a Change in Control (as defined in the Employment Agreements) or by the executive for Good Reason (as defined in the Employment Agreements) in the event of a Change in Control, he or she will be entitled to the same payments and benefits as if he or she had been terminated without Cause as described above (except, in the case of T.L. Arnold, Jr., the pro-rata bonus would be based on his Target Bonus). However, instead of the severance payment described above, the severance payment will be calculated as follows for Lee R. Gibson, Julie N. Shamburger and Brian K. McCabe:
(a) if the termination occurs more than six (6) months prior to the closing of a pending event that results in a change of control or more than two (2) years after the occurrence of a change of control, the severance payment shall be the product of two times the sum of (1) the executive’s salary in effect as of the termination (ignoring any decrease in the salary unless consented to by the executive), and (2) the greater of the average of the annual bonuses earned by the executive for the two fiscal years in which annual bonuses were paid immediately preceding the year in which the termination occurs, or the executive’s Target Bonus for the year in which the termination occurs; or
(b) if the termination occurs within six months prior or within two years after the occurrence of a change of control, the severance payment shall be the product of 2.99 for Lee R. Gibson and 2.0 for Julie N. Shamburger and Brian K. McCabe times the sum of (1) the executive’s salary in effect as of the termination, and (2) the greater of the average of the annual bonuses earned by the executive for the two fiscal years in which annual bonuses were paid immediately preceding the year in which the termination occurs, or the executive’s Target Bonus for the year in which the termination occurs.
For T. L. Arnold, Jr. the severance payment will be calculated as follows:
Southside Bancshares, Inc. | 2024 Proxy Statement | 38

(a) if the date of termination occurs (i) following a Change in Control and during the same calendar year in which the Change in Control occurs or (ii) prior to the closing of a pending event that results in a Change in Control and during the same calendar year in which the Change in Control occurs, the Prorata Target Bonus shall equal the product of (x) Employee’s Target Bonus for the year of termination, and (y) a fraction, the numerator of which is the number of days in the calendar year through the date of termination, and the denominator of which is 365;
(b) a severance payment equal to the monthly salary for the remainder of the Initial Term or the then-current Extended Term, whichever is applicable, provided, however, that if the Date of Termination occurs within two years after the occurrence of a Change of Control, an additional severance payment in an amount equal to one times the Employee’s Base Salary in effect as of the Date of Termination shall be payable.
Termination due to death, Disability or Retirement. If an executive’s employment is terminated due to death, Disability or Retirement (as such capitalized terms are defined in the Employment Agreements), he or she (or his or her estate) will receive accrued salary and Other Benefits pursuant to his or her employment agreement, plus acceleration of equity awards pursuant to the terms of the award agreements as described in footnote 4 to the table below.
Restrictive covenants. The Employment Agreements contain confidentiality provisions and subject Lee R. Gibson and T. L. Arnold, Jr. to certain non-compete and non-solicitation obligations during the term of employment with the Company for a one-year period and Julie N. Shamburger and Brian K. McCabe for a six-month period following termination of employment.
Reduction in certain benefits. The Employment Agreements also state that in the event that any of the severance benefits described above are subject to federal excise taxes under the “golden parachute” provisions under Section 280G of the Internal Revenue Code, the payments will be reduced to the extent necessary to avoid such excise taxes, but only if such reduction would result in a greater net benefit for the executive.
Equity Award Agreements
Restricted Stock Units. Under the terms of the RSU award agreements, RSUs become fully vested upon termination of employment due to death or disability. The RSUs also become fully vested upon a change in control, unless the awards are assumed by the surviving entity, in which case, the RSUs vest upon termination of employment without cause or resignation for good reason within two years after the effective date of the change in control.
Performance Stock Units. Under the terms of the PSU award agreements, upon the executive’s retirement (after attaining age 65 with at least five years of service with the Company) the PSUs become vested on a pro-rata basis (based on the number of months between the grant and the date of retirement), based on the Company’s actual ROATCE ranking relative to the Company’s ROATCE Peer Group over the full performance period.
Upon termination due to death or disability, PSUs become vested on a pro-rata basis (based on the number of months between the grant and the termination), and assuming achievement of 100% of the target award if the termination occurs in the first half of the performance period, or based on the Company's actual ROATCE ranking relative to the Company's ROATCE Peer Group (measured as of the date of termination), if the termination occurs during the second half of the performance period.
Upon a change in control, PSUs become vested on a pro-rata basis, unless the awards are assumed by the surviving entity, in which case the awards will become vested on termination of employment without cause or resignation within two years after the effective date of change in control, in either case assuming achievement of 100% of the target award if the event occurs in the first half of the performance period, or based on the Company's actual ROATCE ranking relative to the Company's ROATCE Peer Group (measured as of the date of the event) if the event occurs during the second half of the performance period.
Southside Bancshares, Inc. | 2024 Proxy Statement | 39

The following table quantifies the severance payments and benefits, including the value of the equity acceleration, the NEOs would be entitled to receive assuming their employment had been terminated as of December 31, 2023, without cause or for good reason (either absent or in connection with a Change in Control), or due to death, disability or retirement. No amounts for pro rata bonuses are included in the table because the disclosure assumes a termination of employment as of the last day of the Company's fiscal year. Actual amounts earned as annual incentives for 2023 are disclosed in the “Non-Equity Incentive Plan Compensation” column of the Summary Compensation Table.

Termination of Employment | Severance Payment or Other Benefits ($) | Value of Equity Acceleration ($) | Total ($)
By the Company without cause without a change in control |  |  |  |  |
Lee R. Gibson | $ | 2,285,775 |  | (1) | $ | 487,856 |  | (4) | $ | 2,773,631 |
Julie N. Shamburger | 1,315,279 |  | (1) | 215,638 |  | (4) | 1,530,917 |
Brian K. McCabe | 1,043,266 |  | (1) | 154,612 |  | (4) | 1,197,878 |
Tim Alexander | — |  |  | — |  | (5) | — |
T. L. Arnold, Jr. | 871,097 |  | (1) | 149,303 |  | (4) | 1,020,400 |
By the Company without cause or by the executive for good reason in connection with a change in control |  |  |  |  |
Lee R. Gibson | 3,700,463 |  | (2) | 487,856 |  | (4) | 4,188,319 |
Julie N. Shamburger | 1,336,586 |  | (2) | 215,638 |  | (4) | 1,552,224 |
Brian K. McCabe | 994,792 |  | (2) | 154,612 |  | (4) | 1,149,404 |
Tim Alexander | — |  |  | 173,963 |  | (5) | 173,963 |
T. L. Arnold, Jr. | 1,245,597 |  | (3) | 149,303 |  | (4) | 1,394,900 |
Due to Retirement |  |  |  |  |
Lee R. Gibson | — |  |  | 133,671 |  | (7) | 133,671 |
Julie N. Shamburger | — |  |  | 59,128 |  | (7) | 59,128 |
Brian K. McCabe | — |  |  | 42,679 |  | (7) | 42,679 |
Tim Alexander | — |  |  | 66,019 |  | (7) | 66,019 |
T. L. Arnold, Jr. | — |  |  | 41,222 |  | (7) | 41,222 |
Due to Death or Disability |  |  |  |  |
Lee R. Gibson | 1,796,507 |  | (6) | 355,197 |  | (8) | 2,151,704 |
Julie N. Shamburger | 1,378,975 |  | (6) | 157,022 |  | (8) | 1,535,997 |
Brian K. McCabe | — |  |  | 112,427 |  | (8) | 112,427 |
Tim Alexander | — |  |  | 173,963 |  | (8) | 173,963 |
T. L. Arnold, Jr. | — |  |  | 108,452 |  | (8) | 108,452 |

(1) Reflects a severance payment equal to the executive's monthly salary multiplied by the number of months remaining in the term of his or her employment agreement as of December 31, 2023, plus an additional $10,000 for Lee R. Gibson, Julie N. Shamburger and Brian K. McCabe.
(2) Reflects a severance payment equal to the product of 2.99, in the case of Lee R. Gibson, or 2.0, in the case of Julie N. Shamburger and Brian K. McCabe, times the sum (1) of the executive's salary in effect as of the termination, and (2) the greater of the average of the annual bonuses earned by the executive for the two fiscal years in which annual bonuses were paid immediately preceding the year in which the termination occurs, or the executive’s Target Bonus for the year in which the termination occurs.
(3) Reflects a severance payment equal to the executive's monthly salary multiplied by the number of months remaining in the term of his employment agreement as of December 31, 2023, plus an additional severance payment equal to the product of 1.0 times the sum of the executive's salary in effect as of the termination.
(4) Reflects the fair market value as of December 31, 2023 of shares underlying unvested RSUs and PSUs (assuming target payout for PSUs granted in 2023 and based on the Company's actual ROATCE ranking relative to the Company's ROATCE Peer Group as of December 31, 2023 (which would have resulted in an estimated payout of 125%) for PSUs granted in 2022), which would all accelerate upon the executive's termination of employment under the specified circumstances pursuant to the officer's employment agreement.
(5) Mr. Alexander does not have an employment agreement, and as such, his unvested RSUs and PSUs would accelerate and become vested pursuant to the terms of the award agreements, as described above. Accordingly, none of Mr. Alexander's equity awards would vest upon termination without cause absent a change in control, and all of his unvested RSUs would vest and a pro rata portion of his unvested PSUs would vest (assuming target payout for PSUs granted in 2023 and based on the Company's actual ROATCE ranking relative to the Company's ROATCE Peer Group as of December 31, 2023 (which would have resulted in an estimated payout of 125%) for PSUs granted in 2022) upon termination without cause or for good reason within two years of a change in control.
Southside Bancshares, Inc. | 2024 Proxy Statement | 40

(6) Reflects payment under a split dollar agreement pursuant to which the executive is entitled to designate a beneficiary to receive death benefits under a life insurance policy in the event of the executive’s death while employed.
(7) The RSU award agreement does not provide accelerated vesting for retirement. Under the terms of the PSU award agreements, the PSUs shall be earned pro-rata basis (based on the number of months between the grant and the termination), and based on actual performance at the end of the performance period. For disclosure purposes, we have used the current expected performance based on the Company's actual ROATCE ranking relative to the Company's ROATCE Peer Group as of December 31, 2023 (which would have resulted in an estimated payout of 125%).
(8) Under the terms of the RSU award agreements, the RSU awards become fully vested upon termination due to death or disability. Under the terms of the PSU award agreements, upon termination due to death and disability, the PSUs become vested on a pro-rata basis (based on the number of months between the grant and the termination), and assuming achievement of 100% of the target award in the event the termination occurs in the first half of the performance period (which applies to PSUs granted in 2023), or based on the Company's actual ROATCE ranking relative to the Company's ROATCE Peer Group, in the event the termination occurs during the second half of the performance period (which applies to PSUs granted in 2022, and would have resulted in an estimated payout of 125% based on the Company's actual ROATCE ranking relative to the Company's ROATCE Peer Group as of December 31, 2023).
Southside Bancshares, Inc. | 2024 Proxy Statement | 41

EQUITY COMPENSATION PLAN INFORMATION
The table below provides information as of December 31, 2023 regarding shares of common stock that may be issued under the Company’s equity compensation plans.

Plan Category |  | Number of securities to be issued upon exercise of outstanding options, warrants, and rights (a) |  | Weighted-average exercise price of outstanding options, warrants and rights (b) |  | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c)
Equity compensation plans approved by security holders |  | 847,103 |  | $33.76 |  | 1,033,423
Equity compensation plans not approved by security holders |  | — |  | — |  | —
Total |  | 847,103 |  | $33.76 |  | 1,033,423

(a)Reflects stock options, RSUs and PSUs outstanding under the 2017 Incentive Plan and predecessor plans. PSUs are reflected at maximum payout of 150%.
(b)Reflects weighted-average exercise price of 620,506 stock options outstanding.
(c)Reflects shares available for issuance pursuant to the grant of awards (including full-value stock awards) under the 2017 Incentive Plan.
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PAY VERSUS PERFORMANCE

The table below shows total compensation, as set forth in the summary compensation table, and compensation actually paid ("CAP"), calculated in accordance with SEC Pay versus Performance regulations for our PEO and other NEOs, as well as certain performance measures, for the fiscal years ended December 31, 2023, 2022, 2021 and 2020.

Year |  | Summary Compensation Table Total for PEO ($)(1) |  | Compensation actually paid to PEO ($)(2) |  | Average Summary Compensation Table Total for other NEOs ($)(3) |  | Average Compensation Actually Paid to other NEOs ($)(2)(3) |  | Value of Initial Fixed $100 Investment Based on: |  | Net Income ($ in Millions) |  | ROATCE %(6)
TSR(4) |  | Peer Group TSR(5)
2023 |  | $ | 2,134,717 |  |  | $ | 1,267,253 |  |  | $ | 833,303 |  |  | $ | 638,088 |  |  | $ | 98.91 |  |  | $ | 110.86 |  |  | $ | 86.7 |  |  | 16.03 | %
2022 |  | 1,549,596 |  |  | 1,476,916 |  |  | 756,008 |  |  | 726,766 |  |  | 108.56 |  |  | 119.01 |  |  | 105.0 |  |  | 18.56 | %
2021 |  | 1,442,701 |  |  | 1,517,567 |  |  | 633,441 |  |  | 721,480 |  |  | 121.77 |  |  | 129.55 |  |  | 113.4 |  |  | 17.04 | %
2020 |  | 2,654,466 |  |  | 1,108,641 |  |  | 1,014,518 |  |  | 553,073 |  |  | 87.26 |  |  | 101.71 |  |  | 82.2 |  |  | 13.79 | %

(1)The Principal Executive Officer ("PEO") is Lee R. Gibson for all periods presented.
(2)The amount reported is calculated in accordance with SEC Pay versus Performance regulations and does not represent compensation received by our NEOs. See the detail of the calculation in the table below.
(3)For 2023, 2022 and 2021, the other NEOs are Julie N. Shamburger, Tim Alexander, Brian K. McCabe and T.L. Arnold, Jr. For 2020, the other NEOs are Julie N. Shamburger, Tim Alexander, Brian K. McCabe and Mark Drennan.
(4)Total Shareholder Return ("TSR").
(5)The peer group consists of the same companies included in our Form 10-K for the performance graph required by Item 201(e) of Regulation S-K. The peer group consists of Cullen/Frost Bankers, Inc. (CFR), First Financial Bankshares, Inc. (FFIN), Hilltop Holdings (HTH), Independent Bank Group, Inc. (IBTX), Prosperity Bancshares, Inc. (PB), Texas Capital Bancshares, Inc. (TCBI) and Veritex Holdings, Inc. (VBTX).
(6)The company-selected measure is ROATCE, a non-GAAP measure. In calculating ROATCE, Southside adds back the after tax amortization expense to net income available to common shareholders and subtracts average intangible assets for the period from average shareholders’ equity.
The table below shows the calculation and related adjustments for compensation actually paid.

Year |  | Executive |  | Summary Compensation Table Total |  | Subtract: Change in Pension Value |  | Add: Service Cost and Prior Service Cost (1) |  | Subtract: Equity Grants at Grant Date Fair Value |  | Add: Equity Awards Granted at Year-End Value (2)(3) |  | Add: Change in Value of Unvested Equity Awards (3)(4) |  | Add: Change in Value of Vested Equity Awards (3)(5) |  | Compensation Actually Paid
2023 |  | PEO |  | $ | 2,134,717 |  |  | $ | 769,701 |  |  | $ | — |  |  | $ | 283,353 |  |  | $ | 228,198 |  |  | $ | (26,882) |  |  | $ | (15,726) |  |  | $ | 1,267,253 |
| Other NEOs |  | 833,303 |  |  | 156,007 |  |  | — |  |  | 110,117 |  |  | 88,683 |  |  | (10,409) |  |  | (7,365) |  |  | 638,088 |
2022 |  | PEO |  | 1,549,596 |  |  | — |  |  | — |  |  | 271,144 |  |  | 242,428 |  |  | (9,250) |  |  | (34,714) |  |  | 1,476,916 |
| Other NEOs |  | 756,008 |  |  | — |  |  | — |  |  | 106,333 |  |  | 95,050 |  |  | (4,777) |  |  | (13,182) |  |  | 726,766 |
2021 |  | PEO |  | 1,442,701 |  |  | 172,927 |  |  | — |  |  | 125,187 |  |  | 139,344 |  |  | 82,083 |  |  | 151,553 |  |  | 1,517,567 |
| Other NEOs |  | 633,441 |  |  | 3,661 |  |  | — |  |  | 46,486 |  |  | 51,742 |  |  | 34,621 |  |  | 51,823 |  |  | 721,480 |
2020 |  | PEO |  | 2,654,466 |  |  | 1,572,177 |  |  | 198,992 |  |  | — |  |  | — |  |  | (94,661) |  |  | (77,979) |  |  | 1,108,641 |
| Other NEOs |  | 1,014,518 |  |  | 481,273 |  |  | 80,415 |  |  | 3,684 |  |  | 3,739 |  |  | (32,719) |  |  | (27,923) |  |  | 553,073 |

(1)Reflects the actuarially determined service cost for services rendered by executives during the reported year (i.e. service cost). We note our Pension Plan was frozen effective December 31, 2020, thus no service cost thereafter. Additionally, there was no prior service cost in any of the reported years.
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(2)The amount reported reflects equity awards granted during the fiscal year and dividends equivalents accrued during the year of grant, valued as of fiscal year end.
(3)NQSO grant date fair values were calculated using the Black-Scholes option pricing model as of the grant date. We note no NQSOs were granted in any of the years presented. NQSOs have been remeasured as of each measurement date using the stock price as of the measurement date and updated assumptions: expected term, volatility, dividend yield and risk-free rate as of the measurement date. RSU fair values are calculated using the stock price as of the grant date, and stock price was updated for each measurement period to reflect the stock price on such date. PSUs fair values are calculated using the stock price as of the grant date assuming target performance and was updated for each measurement period to reflect the stock price and expected payout levels as of such date.
(4)The amount reported reflects the increase (decrease) in fair value from prior fiscal year end to fiscal year end for the reporting period for equity awards. Dividend equivalents accrued in the year of the period presented are presented at fair value as of year end. Dividend equivalents accrued in prior periods reflect the change in fair value from prior fiscal year end to the fiscal year end for the reporting period.
(5)The amount reported reflects the increase (decrease) in fair value from prior fiscal year end to the vesting date in the reporting period. Dividend equivalents are included. Dividend equivalents accrued in the year of the period presented are presented at fair value as of the vest date. Dividend equivalents accrued in prior periods reflect the change in fair value from prior fiscal year end to the vesting date for the reporting period.
Financial Performance Measures
As discussed in our CD&A, the Committee uses several performance measures throughout compensation programs to align NEO pay with performance. Below are the financial performance measures we believe represent the most important financial measures used to link compensation to company performance for NEOs for 2023. See CD&A for discussion of these measures.

Financial Performance Measure
EPS
ROATCE
Loan Growth

Relationship between Compensation Actually Paid and Performance
The graphs below show the relationship of CAP for our PEO and other NEOs in 2020, 2021, 2022 and 2023, to total shareholder return, the Company's net income and the Company's ROATCE.
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Southside Bancshares, Inc. | 2024 Proxy Statement | 45

PROPOSAL 2 - NON-BINDING ADVISORY VOTE ON EXECUTIVE COMPENSATION

Pursuant to Section 14A of the Exchange Act, we are providing our shareholders with the opportunity to vote to approve, on a non-binding, advisory basis, the compensation of our named executive officers. At the 2023 Annual Meeting of Shareholders, approximately 95.6% of the shares represented at the meeting in person or by proxy and entitled to vote were voted in support of the Company’s compensation program. At the 2023 Annual Meeting, the Company’s shareholders selected, on a non-binding, advisory basis, an annual vote for the frequency at which the Company should include a Say-on-Pay vote in its proxy statement for shareholder consideration. In light of this result and other factors considered by the Board, the Board determined that the Company will hold Say-on-Pay votes every year until the next required non-binding, advisory vote on the frequency of such votes, which is to be held no later than the Company's 2029 Annual Meeting of Shareholders.
Accordingly, the Board is providing shareholders with the opportunity to cast a non-binding advisory vote on the named executive officer compensation program at our 2024 Annual Meeting. This vote will not be binding on or overrule any decisions by the Board, and will not create or imply any additional fiduciary duty on the part of the Board. However, our Compensation Committee will take into account the outcome of the vote when considering future named executive officer compensation arrangements.
As described in greater detail in our Compensation Discussion and Analysis above, we believe that our executive officer compensation program is structured in a manner that most effectively supports the Company and our business objectives. Our executive officer compensation program is designed to reward long-term and strategic performance, and is substantially tied to our key business objectives and the success of our shareholders. We monitor the various short-term and long-term aspects of our executive officer compensation program, including base salary, annual cash bonus and equity incentives, in comparison to similar programs and practices at comparable companies, so that we may ensure that our executive officer compensation program is within the competitive range of market practices.
The Board invites our shareholders to review carefully the Compensation Discussion and Analysis and the tabular and other disclosures on compensation under Executive Compensation, and cast a vote to approve the Company’s executive compensation programs through the following resolution:
“RESOLVED, that the shareholders approve the compensation paid to the Company’s named executive officers, as disclosed in this proxy statement pursuant to the compensation disclosure rules of the SEC, including the Compensation Discussion and Analysis, the compensation tables and related narrative discussion.”
The Board recommends a vote FOR the non-binding advisory vote on the compensation of the Company's named executive officers.
COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION
None of the members of the Compensation Committee, during the fiscal year ended December 31, 2023, are a current or former officer or employee of the Company.
During the fiscal year ended December 31, 2023:
•No executive officer of the Company served as a member of the compensation committee or other board committee performing similar functions (or on the board of directors of any entity without such a committee) of another entity, one of whose executive officers served on the Compensation Committee of the Company.
•No executive officer of the Company served on the board of directors of another entity, one of whose executive officers served on the Compensation Committee of the Company.
•No executive officer of the Company served as a member of the compensation committee or other board committee performing similar functions (or on the board of directors of any entity without such a committee) of another entity, one of whose executive officers served as a director of the Company.
For information concerning transactions by the Company and Southside Bank with certain members of the board of directors of Southside Bank, please see “Transactions with Directors, Officers and Associates.”
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TRANSACTIONS WITH DIRECTORS, OFFICERS AND ASSOCIATES
The Board of Directors reviews and discusses each potential transaction between the Company and a director, executive officer, significant shareholder or any of their immediate family members and votes to approve or disapprove such transactions. Directors or executive officers who have an interest in a particular transaction do not vote on such transaction. The Company’s Board has adopted a Conflict of Interest Policy that addresses transactions with related persons.
Certain of the executive officers and directors of the Company and Southside Bank (and their associates) have been customers of Southside Bank and have been granted loans in the ordinary course of business. Southside Bank is subject to Federal Reserve Regulation O, which governs loans to directors, executive officers and certain shareholders of banks and bank holding companies. All loans or other extensions of credit made by Southside Bank to executive officers and directors of the Company and Southside Bank were made in the ordinary course of business on substantially the same terms, including interest rates, maturities and collateral, as those prevailing at the time for comparable transactions with persons not related to the Company or Southside Bank and did not involve more than the normal risk of collection or present other features that are unfavorable to Southside Bank. Prior approval by a majority of the Board of Directors, with the interested party abstaining, must be obtained for any loan to a director or a director’s related interest(s) which, when aggregated with all loans to the director and/or to that director’s related interest(s) exceed 10% of Southside Bank’s capital plus unimpaired surplus. Prior approval requirements for individual advances to directors will be satisfied by annual Board approval of a line of credit for a director’s personal borrowing and similar approval of a line of credit for director-owned or controlled business borrowing. All advances made pursuant to an approved line of credit within 12 months of the date of approval shall be treated as approved. Loans to persons employed by Southside Bank who are considered executive officers under Federal Reserve regulations are subject to prior approval by the Board of Directors. The Company expects ongoing transactions with its executive officers and directors as well as directors and officers of Southside Bank.
Richard K. Gibson, son of Lee R. Gibson, is employed by Southside Bank and received compensation of $254,552 in 2023. Toni Brooks, sister of T. L. Arnold, Jr., is employed by Southside Bank and received compensation of $124,203 in 2023. The Company has insurance policies through Bosworth & Associates, which is owned by director Michael Bosworth. In 2023, premiums paid for our policies with Bosworth & Associates totaled $1,179,501 and commissions paid totaled $162,103.
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DELINQUENT SECTION 16(a) REPORTS
Section 16(a) of the Exchange Act requires the Company’s executive officers and directors, and any persons who own more than 10% of the Company’s common stock, to file reports of initial ownership of the Company’s common stock and subsequent changes in that ownership with the SEC. Based solely upon a review of Forms 3, 4 and 5 and any amendments thereto filed with the SEC, or written representations from certain reporting persons that no Form 5’s were required, the Company believes that during fiscal year 2023 all Section 16(a) filing requirements were complied with on a timely basis except that:
•Tony K. Morgan, CPA, Director, filed a late Form 4 on March 10, 2023 to report the purchase of 1,000 shares on October 28, 2022.
•Tim Alexander, Chief Lending Officer, filed a late Form 4 on December 20, 2023 to report 700 shares gifted on November 9, 2023.
•Sherri Anthony, Chief Banking Officer, filed a late Form 3 on January 9, 2024 to report the initial statement of beneficial ownership of securities upon appointment as a Section 16 officer on December 21, 2023.
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AUDIT COMMITTEE REPORT
The following report of the Audit Committee does not constitute “soliciting material” and should not be deemed to be “filed” with the SEC or incorporated by reference into any other filing of the Company under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that the Company specifically incorporates this report by reference in any of those filings.
The Audit Committee oversees the Company’s financial reporting process on behalf of the Board of Directors. The Company’s management has the primary responsibility for the financial statements and for maintaining effective systems of internal control based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework). In fulfilling its oversight responsibilities, the Audit Committee reviewed and discussed the audited consolidated financial statements contained in the Annual Report on Form 10-K for the year ended December 31, 2023 with Company management, including a discussion of the quality, not just the acceptability, of the accounting principles, the reasonableness of significant judgments, and the clarity of disclosures in the financial statements.
The Audit Committee discussed with the independent registered certified public accounting firm, EY, which is responsible for expressing an opinion on the conformity of those audited consolidated financial statements with U.S. generally accepted accounting principles and an audit on the effectiveness of internal control over financial reporting in accordance with the standards of the Public Company Accounting Oversight Board (the “PCAOB”) (United States), its judgments as to the quality, not just the acceptability, of the Company’s accounting principles and such other matters as are required to be discussed with the Audit Committee by the PCAOB, the rules of the SEC, and other applicable regulations.
The Audit Committee has received the written disclosures from EY regarding the auditors' independence required by the PCAOB.
The Audit Committee discussed with EY the overall scope and plans for their audit. The Audit Committee met with EY with and without management present, to discuss the results of their financial statement audit, their evaluations of the Company’s internal control and the overall quality of the Company’s financial reporting.
Based on the Audit Committee’s review and discussions referred to above, the Audit Committee recommended to the Company’s Board of Directors that the Company’s audited consolidated financial statements be included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 for filing with the SEC.
Submitted by the Audit Committee of the Board.

Tony K. Morgan, CPA, Chair | George H. (Trey) Henderson, III
S. Elaine Anderson, CPA | Preston L. Smith
Shannon Dacus |

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INDEPENDENT REGISTERED CERTIFIED PUBLIC ACCOUNTING FIRM
EY served as the Company’s independent registered certified public accounting firm for the year ended December 31, 2023 and has been selected by the Audit Committee as the Company's independent registered certified public accounting firm for the year ended December 31, 2024.
Independent Registered Certified Public Accounting Firm Fees
The following table sets forth aggregate fees incurred by the Company for fiscal years ended December 31, 2023 and 2022 to EY, the Company’s independent registered certified public accounting firm. All fees were pre-approved by the Audit Committee.

|  | YEARS ENDED
|  | 2023 |  | 2022
Audit Fees(1) |  | $ | 1,302,100 |  |  | $ | 1,152,900 |
Audit Related Fees(2) |  | 62,100 |  |  | 57,500 |
Tax Fees(3) |  | 109,427 |  |  | 76,927 |
All Other Fees(4) |  | — |  |  | 156,756 |
Total Fees |  | $ | 1,473,627 |  |  | $ | 1,444,083 |

(1)Audit fees consist primarily of fees for services provided in connection with the annual audit of our financial statements and internal control over financial reporting, reviews of quarterly financial statements and other documents filed with the SEC, compliance and consent engagements.
(2)Audit related fees consist of fees for the audit of our 401(k) Plan.
(3)Tax fees consist of fees primarily related to the performance of tax compliance services, including the preparation, review and filing of tax returns and consulting services for various matters.
(4)All other fees consist of data advisory services.
Auditor Fees Pre-Approval Policy
The Audit Committee has a formal policy concerning approval of audit and non-audit services to be provided by the independent registered certified public accounting firm to the Company, currently EY. The policy requires that all services EY may provide to the Company, including audit services and permitted audit-related and non-audit services, be pre-approved by the Audit Committee. The Audit Committee pre-approved all audit, audit-related and non-audit services provided by EY during 2023.

PROPOSAL 3 - RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED CERTIFIED PUBLIC ACCOUNTING FIRM

The Audit Committee of the Board has selected EY to serve as the Company’s independent registered certified public accounting firm for the year ending December 31, 2024. EY has served as the Company’s independent registered certified public accounting firm since 2012. We have been advised by EY that neither it nor any of its members had any financial interest, direct or indirect, in us nor has it had any connection with us or any of our subsidiaries in any capacity other than as independent auditors. The Board recommends that you vote for the ratification of the selection of EY. Shareholder ratification of the selection of EY as our independent registered certified public accounting firm is not required by our certificate of formation, bylaws or otherwise. Nevertheless, the Board is submitting this matter to the shareholders as a matter of good corporate practice. If our shareholders do not ratify the appointment of EY, then the appointment of an independent registered certified public accounting firm will be reconsidered by our Audit Committee. Even if the appointment is ratified, the Audit Committee in its discretion may direct the appointment of a different independent registered certified public accounting firm at any time during the year if it is determined that such a change would be in the best interests of the Company and its shareholders. Representatives of EY are expected to be in attendance at the Annual Meeting and will have the opportunity to make a statement if they desire to do so, and to respond to appropriate questions.
The Board of Directors recommends a vote FOR the ratification of Ernst & Young LLP as the Company’s independent registered certified public accounting firm for the year ending December 31, 2024.
ANNUAL REPORT TO SHAREHOLDERS
The Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, accompanies this Proxy Statement. The Annual Report does not constitute outside solicitation materials. Additional copies of Form 10-K are available at no expense; exhibits to Form 10-K are available for a copying expense to any shareholder by sending a written request to: Southside Bancshares, Inc., 1201 South Beckham Avenue, Tyler, Texas 75701, Attn: Investor Relations. The Company’s public filings with the SEC may also be obtained free of charge on the Company’s website at https://southside.com/filings.
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SHAREHOLDER PROPOSALS
SEC rules establish the eligibility requirements and the procedures that must be followed for a shareholder’s proposal to be included in the Board’s proxy solicitation materials. Under those rules, any shareholder wishing to have a proposal considered for inclusion in the Board’s proxy solicitation materials for the 2025 Annual Meeting must set forth his or her proposal in writing and file it with the Secretary of the Company on or before November 27, 2024. Proposals must comply with all applicable SEC rules. The Board will review any proposals received by that date and will determine whether applicable requirements have been met for including the proposal in the 2025 proxy solicitation materials.
In addition, the Company’s bylaws establish advance notice procedures that must be followed for a shareholder proposal to be presented at an Annual Meeting but not included in the Board’s proxy solicitation materials. Any shareholder wishing to have a proposal considered for the 2025 Annual Meeting, but who does not submit the proposal for inclusion in the Board’s proxy statement, assuming that the 2025 Annual Meeting occurs on a date that is not more than 30 days before or 60 days after the anniversary of the Annual Meeting, must submit the proposal not earlier than January 15, 2025 and no later than February 14, 2025.
For any proposal that is not submitted for inclusion in next year’s proxy solicitation materials, but is submitted for presentation at the 2025 Annual Meeting, SEC rules permit the persons named as proxies in the proxy solicitation materials to vote proxies in their discretion if: (1) the proposal is received before February 14, 2025 and we advise shareholders in the 2025 proxy solicitation materials about the nature of the matter and how the Board intends to vote on such matter, or (2) the proposal is not received before February 14, 2025.
In addition to satisfying the foregoing requirements with respect to director nominations, to comply with the SEC's universal proxy card rules, shareholders who intend to solicit proxies in support of director nominees other than the Board's nominees in accordance with Rule 14a-19 under the Exchange Act must provide notice that sets forth the information required by Rule 14a-19 no later than March 16, 2025.
HOUSEHOLDING
The SEC rules permit us, with your permission, to send a single set of proxy statements and annual reports to any household at which two or more shareholders reside if we believe they are members of the same family. Each shareholder will continue to receive a separate proxy card. This procedure, known as “householding,” reduces the volume of duplicate information households receive, while also reducing our expenses and associated environmental impact. In order to take advantage of this opportunity, we have delivered only one proxy statement to multiple shareholders who share an address, unless we received contrary instructions from the impacted shareholders prior to the mailing date. We will deliver a separate copy of the proxy statement, as requested, to any shareholder at a shared address to which a single copy of that document was delivered. If you prefer to receive separate copies of a proxy statement, either now or in the future, you can request a separate copy of the proxy statement by calling us at (877) 639-3511 or by writing to us at any time at the following address: Southside Bancshares, Inc., 1201 South Beckham Avenue, Tyler, Texas 75701, Attn: Investor Relations.
GENERAL
The Board does not know of any other business, other than that set forth above, to be transacted at the Annual Meeting. However, if any other matters requiring a vote of the shareholders properly come before the Annual Meeting, the persons designated as Proxies will vote the shares of common stock represented by the proxies in accordance with their best judgment on such matters. If a shareholder specifies a different choice on the proxy, those shares of common stock will be voted in accordance with the specification so made.
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