Southside Bancshares, Inc.

Thank you for standing by. At this time, I would like to welcome everyone to the Southside Bank Shares Inc. Third Quarter 2025 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Lindsay Bales, Investor Relations Officer. You may begin.

Thank you, Jeannie. Good morning, everyone, and welcome to Southside Bank Share's third quarter 2025 earnings call. A transcript of today's call will be posted on southside.com under Investor Relations. During today's call and in other disclosures and presentations, I'll remind you forward-looking statements are subject to risk and uncertainties, factors that could materially change Our current forward-looking assumptions are described in our earnings release in our Form 10 case. Joining me today are Lee Gibson, CEO, Keith Donahoe, President, and CFO, Julie Shanberger. First, Lee will start us off with his comments on the quarter, then Keith will discuss loans and credit, and then Julie will give an overview of our financial results. I will now turn the call over to Lee.

Thank you, Lindsay, and welcome to today's call. I'm going to start by discussing the repositioning of our available for sale securities portfolio. During the quarter, as market conditions allowed, we took the opportunity to sell approximately $325 million of lower-yielding, long-duration municipal securities, and to a lesser extent, mortgage-backed securities, and booked a net loss of $24.4 million. These securities had a combined taxable equivalent yield of approximately 3.28%. Most of these sales occurred in September. The net proceeds from these sales partially funded loan growth during the quarter, with the balance reinvested in agency mortgage-backed pools that had primarily 5.5% and 6% coupons, and to a lesser extent, Texas municipal securities with coupons ranging from 5% to 575. The sale of these securities will not only enhance future net interest income, but it also provides for additional balance sheet flexibility as we grow. We estimate the payback of this loss to be less than four years. As previously disclosed, we issued $150 million of subordinated debt at 7% fixed to floating rate notes in mid-August. Linked quarter, our net interest income increased 1.45 million, and our net interest margin decreased one basis point due to the issuance of the subordinated debt during the quarter. When considering our net income, earnings per share, and other financial results, excluding the one-time loss on the sale of securities, we had an excellent quarter. Non-interest income continued to perform well and loans increased 163 million with 81 million of that growth occurring on September 30th. Keith will provide additional commentary about our loan portfolio and third quarter loan growth. The repositioning of the securities portfolio combined with the late third quarter loan growth sets up an optimistic outlook for net interest income. If the current favorable swap markets remain, we will look for additional opportunities to enter into swaps. Overall, the markets we serve remain healthy and the Texas economy continues to be anticipated to grow at a faster pace than the overall U.S. growth rate. I look forward to answering your questions and will now turn the call over to Keith Donhoe.