Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On January 17, 2017, the Board of Directors of Southside Bancshares, Inc. (the “Company”) appointed Michael Bosworth to fill a vacancy on the Board and to serve on the Board’s Risk Committee.

Mr. Bosworth, 65, is the President and Chairman of the Board of Directors of Bosworth & Associates, an insurance agency founded by his father. Mr. Bosworth has extended the agency’s influence as one of the leading insurance agencies in Tyler and East Texas. Mr. Bosworth has earned the designation of Accredited Advisor of Insurance (AAI) and the Certified Insurance Counselor (CIC) designation through the National Alliance of Insurance Education, and he is also a Certified Workers Compensation Advisor (CWCA). Mr. Bosworth specializes in risk management consulting and oversees all other aspects of the firm. Mr. Bosworth is also a director of Southside Bank having served in that capacity since June 2015.

Mr. Bosworth will stand for election at the 2017 Annual Meeting of the Company’s shareholders, and, if re-elected will thereafter join the class of directors that will stand for reelection at the 2019 Annual Meeting.

In 2016, the Company purchased from Bosworth & Associates various insurance policies, the premiums for which were $707,102, and the commissions earned by Bosworth & Associates were $111,440 in 2016. Bosworth & Associates is owned by Mr. Bosworth and his wife. There are no arrangements between Mr. Bosworth and any other person to which Mr. Bosworth was selected as a director.

As of the date of his election to the Board, Mr. Bosworth will participate in the Company’s compensation plans for non-employee directors, as described in the Company’s proxy statement dated March 22, 2016 and filed with the Securities and Exchange Commission on such date.

The vacancy on the Board filled by Mr. Bosworth was created as a result of the death of Dr. Paul Powell. “We are sad to report, on December 28, 2016, Dr. Paul Powell, a director of the Company since 1999, passed away after a brief illness. We were blessed by Dr. Powell’s leadership. His valuable and dedicated service as a director of the Company will be greatly missed,” stated Lee R. Gibson, President and Chief Executive Officer.

About Southside Bancshares, Inc. (NASDAQ:SBSI)

Southside Bancshares, Inc. (Southside) is a bank holding company for Southside Bank (the Bank). The Company is a community-focused financial institution that offers a range of financial services to individuals, businesses, municipal entities, and nonprofit organizations in the communities. The Company operates through approximately 60 banking centers, over 20 of which are located in grocery stores, and 25 motor bank facilities. Its services include consumer and commercial loans, deposit accounts, trust services, safe deposit services and brokerage services. The Company’s consumer loan services include one- to four-family residential mortgage loans, home equity loans, home improvement loans, automobile loans and other installment loans. The Company’s Commercial real estate loans primarily include loans collateralized by commercial office buildings, retail, medical facilities and offices, warehouse facilities, hotels and churches.

Southside Bancshares, Inc. (NASDAQ:SBSI) Recent Trading Information

Southside Bancshares, Inc. (NASDAQ:SBSI) closed its last trading session down -0.30 at 37.07 with 141,717 shares trading hands.