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EMPLOYEE BENEFITS (Tables)

12 Months Ended

Dec. 31, 2019

Employee Benefits Including Defined Benefit Plans and Share-based Compensation Plans [Abstract]

Schedule of changes in projected benefit obligation and fair value of plan assets



	Years Ended December 31,
	2019									2018									2017
	Defined Benefit Pension Plan			Defined Benefit Pension Plan Acquired			Restoration Plan			Defined Benefit Pension Plan			Defined Benefit Pension Plan Acquired			Restoration Plan			Defined Benefit Pension Plan			Defined Benefit Pension Plan Acquired			Restoration Plan
	(in thousands)
Change in Projected Benefit Obligation:
Benefit obligation at end of prior year	$	85,992		$	3,873		$	15,300		$	94,276		$	4,392		$	14,642		$	88,071		$	4,238		$	12,723
Service cost	1,420			—			339			1,548			—			293			1,398			—			247
Interest cost	3,654			169			713			3,392			163			597			3,601			177			567
Actuarial loss (gain)	12,763			943			3,319			(9,399		)	(480		)	344			5,404			418			1,751
Benefits paid	(3,703		)	(68		)	(573		)	(3,622		)	(183		)	(576		)	(4,128		)	(43		)	(646		)
Expenses paid	(114		)	(47		)	—			(203		)	(19		)	—			(70		)	(47		)	—
Settlements	—			—			—			—			—			—			—			(351		)	—
Benefit obligation at end of year	100,012			4,870			19,098			85,992			3,873			15,300			94,276			4,392			14,642
Change in Plan Assets:
Fair value of plan assets at end of prior year	84,911			4,070			—			91,233			4,031			—			85,293			2,993			—
Actual return	12,724			808			—			(4,497		)	(259		)	—			8,138			479			—
Employer contributions	—			—			573			2,000			500			576			2,000			1,000			646
Benefits paid	(3,703		)	(68		)	(573		)	(3,622		)	(183		)	(576		)	(4,128		)	(43		)	(646		)
Expenses paid	(114		)	(47		)	—			(203		)	(19		)	—			(70		)	(47		)	—
Settlements	—			—			—			—			—			—			—			(351		)	—
Fair value of plan assets at end of year	93,818			4,763			—			84,911			4,070			—			91,233			4,031			—
(Un)Funded status at end of year	(6,194		)	(107		)	(19,098		)	(1,081		)	197			(15,300		)	(3,043		)	(361		)	(14,642		)
Accrued benefit (liability) asset recognized	$	(6,194	)	$	(107	)	$	(19,098	)	$	(1,081	)	$	197		$	(15,300	)	$	(3,043	)	$	(361	)	$	(14,642	)
Accumulated benefit obligation at end of year	$	88,247		$	4,870		$	16,258		$	77,888		$	3,873		$	13,403		$	83,802		$	4,392		$	13,246

Schedule of amounts recognized in other comprehensive income (loss)

Amounts related to our defined benefit pension plans and restoration plan recognized as a component of other comprehensive income (loss) were as follows (in thousands):



	Years Ended December 31,
	2019									2018									2017
	Defined Benefit Pension Plan			Defined Benefit Pension Plan Acquired			Restoration Plan			Defined Benefit Pension Plan			Defined Benefit Pension Plan Acquired			Restoration Plan			Defined Benefit Pension Plan			Defined Benefit Pension Plan Acquired			Restoration Plan
Recognition of net loss	$	1,827		$	—		$	559		$	1,512		$	—		$	677		$	1,312		$	—		$	301
Recognition of prior service (credit) cost	(14		)	—			6			(14		)	—			7			(14		)	—			6
Recognition of loss due to settlement	—			—			—			—			—			—			—			8			—
Net loss occurring during the year	(6,070		)	(427		)	(3,319		)	(1,581		)	(69		)	(344		)	(3,317		)	(150		)	(1,751		)
	(4,257		)	(427		)	(2,754		)	(83		)	(69		)	340			(2,019		)	(142		)	(1,444		)
Deferred tax benefit (expense)	894			90			578			17			14			(71		)	241			30			259
Other comprehensive (loss) income, net of tax	$	(3,363	)	$	(337	)	$	(2,176	)	$	(66	)	$	(55	)	$	269		$	(1,778	)	$	(112	)	$	(1,185	)

Schedule of amounts in accumulated other comprehensive income (loss) recognized in net periodic benefit cost during period

Net amounts recognized in net periodic benefit cost and other comprehensive income (loss) were as follows (in thousands):



	December 31, 2019								December 31, 2018
	Defined Benefit Pension Plan			Defined Benefit Pension Plan Acquired		Restoration Plan			Defined Benefit Pension Plan			Defined Benefit Pension Plan Acquired		Restoration Plan
Net loss	$	1,827		$	—	$	559		$	1,512		$	—	$	677
Prior service (credit) cost	(14		)	—		6			(14		)	—		7
	1,813			—		565			1,498			—		684
Deferred tax expense	(381		)	—		(118		)	(315		)	—		(144		)
Accumulated other comprehensive income, net of tax	$	1,432		$	—	$	447		$	1,183		$	—	$	540

Schedule of amounts recognized as a component of accumulated other comprehensive loss

Amounts recognized as a component of accumulated other comprehensive income (loss) were as follows (in thousands):



	December 31, 2019									December 31, 2018
	Defined Benefit Pension Plan			Defined Benefit Pension Plan Acquired			Restoration Plan			Defined Benefit Pension Plan			Defined Benefit Pension Plan Acquired			Restoration Plan
Net loss	$	(33,171	)	$	(598	)	$	(6,744	)	$	(28,928	)	$	(171	)	$	(3,984	)
Prior service cost	(137		)	—			(18		)	(123		)	—			(24		)
	(33,308		)	(598		)	(6,762		)	(29,051		)	(171		)	(4,008		)
Deferred tax benefit	6,994			125			1,419			6,100			35			841
Accumulated other comprehensive (loss) income, net of tax	$	(26,314	)	$	(473	)	$	(5,343	)	$	(22,951	)	$	(136	)	$	(3,167	)

Schedule of components of net periodic pension cost and postretirement benefit cost

Net periodic pension cost and postretirement benefit cost included the following components (in thousands):



	Years Ended December 31,
	2019			2018			2017
Defined Benefit Pension Plan:
Service cost	$	1,420		$	1,548		$	1,398
Interest cost	3,654			3,392			3,601
Expected return on assets	(6,030		)	(6,483		)	(6,050		)
Net loss amortization	1,827			1,512			1,312
Prior service credit amortization	(14		)	(14		)	(14		)
Net periodic benefit cost	$	857		$	(45	)	$	247
Defined Benefit Pension Plan Acquired:
Service cost	$	—		$	—		$	—
Interest cost	169			163			177
Expected return on assets	(293		)	(290		)	(212		)
Net loss amortization	—			—			—
Prior service credit amortization	—			—			—
Loss recognized due to settlement	—			—			8
Net periodic benefit cost	$	(124	)	$	(127	)	$	(27	)
Restoration Plan:
Service cost	$	339		$	293		$	247
Interest cost	713			597			567
Net loss amortization	559			677			301
Prior service cost amortization	6			7			6
Net periodic benefit cost	$	1,617		$	1,574		$	1,121

Schedule of amounts in accumulated other comprehensive income (loss) that is expected to be recognized as a component of net periodic benefit cost during the next fiscal year

The amounts in accumulated other comprehensive income (loss) that are expected to be recognized as components of net periodic benefit cost during 2020 are as follows (in thousands):



	Defined Benefit Pension Plan			Defined Benefit Pension Plan Acquired			Restoration Plan
Net loss	$	2,131		$	10		$	774
Prior service (credit) cost	(14		)	—			6
	2,117			10			780
Deferred tax benefit	(445		)	(2		)	(164		)
Accumulated other comprehensive loss, net of tax	$	1,672		$	8		$	616

Schedule of assumptions used to determine benefit obligation and net periodic benefit cost

The assumptions used to determine the benefit obligation were as follows:



	December 31, 2019						December 31, 2018
	Defined Benefit Pension Plan		Defined Benefit Pension Plan Acquired		Restoration Plan		Defined Benefit Pension Plan		Defined Benefit Pension Plan Acquired		Restoration Plan
Discount rate	3.41	%	3.41	%	3.41	%	4.32	%	4.32	%	4.32	%
Compensation increase rate	3.50	%	—		3.50	%	3.50	%	—		3.50	%

The assumptions used to determine net periodic pension cost and postretirement benefit cost were as follows:



	Years Ended December 31,
	2019		2018		2017
Defined Benefit Pension Plan:
Discount rate	4.32	%	3.71	%	4.23	%
Expected long-term rate of return on plan assets	7.25	%	7.25	%	7.25	%
Compensation increase rate	3.50	%	3.50	%	3.50	%
Defined Benefit Pension Plan Acquired
Discount rate	4.32	%	3.71	%	4.23	%
Expected long-term rate of return on plan assets	7.25	%	7.25	%	7.25	%
Compensation increase rate	—		—		—
Restoration Plan:
Discount rate	4.32	%	3.71	%	4.23	%
Compensation increase rate	3.50	%	3.50	%	3.50	%

Schedule of allocation of plan assets

The major categories of assets in the Plan and the Acquired Plan are presented in the following table (in thousands). Assets are segregated by the level of the valuation inputs within the fair value hierarchy established by ASC Topic 820 “Fair Value Measurements and Disclosures,” utilized to measure fair value (see “Note 13 – Fair Value Measurement”). Our Restoration Plan is unfunded.



	December 31, 2019				December 31, 2018
	Defined Benefit Pension Plan		Defined Benefit Pension Plan Acquired		Defined Benefit Pension Plan		Defined Benefit Pension Plan Acquired
Level 1:
Cash	$	791	$	—	$	278	$	—
Equity securities:
U.S. large cap ⁽¹⁾	11,482		1,548		5,204		—
U.S. mid cap ⁽²⁾	11,081		183		18,913		—
U.S. small cap⁽³⁾	17,846		87		9,900		—
International developed⁽⁴⁾	8,771		—		6,733		—
International emerging⁽²⁾	4,383		—		3,464		—
International ⁽⁵⁾	—		992		—		—
Fixed income securities:
Corporate bonds⁽⁶⁾	—		1,580		—		—
Real estate ⁽⁹⁾	—		278		—		—
Balanced asset allocation ⁽¹⁰⁾	—		95		—		—
Level 2:
Cash Equivalents	16,007		—		15,025		—
Equity securities:
U.S. large cap ⁽¹⁾	—		—		—		1,360
U.S. mid cap ⁽²⁾	—		—		—		152
U.S. small cap ⁽³⁾	—		—		—		72
International ⁽⁵⁾	—		—		—		735
Fixed income securities:
Corporate bonds⁽⁶⁾	965		—		952		407
U.S. government agencies⁽⁶⁾	17,732		—		20,182		—
Municipal bonds⁽⁶⁾	4,508		—		3,991		—
U.S. agency mortgage-backed securities ⁽⁷⁾	252		—		269		—
Asset-backed securities ⁽⁸⁾	—		—		—		743
Real estate ⁽⁹⁾	—		—		—		286
Balanced asset allocation ⁽¹⁰⁾	—		—		—		84
Other ⁽¹¹⁾	—		—		—		231
Total fair value of plan assets	$	93,818	$	4,763	$	84,911	$	4,070


(1)	For the Plan, this category is comprised of individual securities that are actively managed and a broadly diversified “passive” mutual fund. The Acquired Plan assets in this category consist of pooled separate accounts invested in mutual funds and domestic stocks.


(2)	For the Plan, this category is comprised of broadly diversified “passive” mutual funds. The Acquired Plan assets in this category consist of pooled separate accounts invested in mutual funds and domestic stocks.


(3)	For the Plan, this category is comprised of broadly diversified “passive” mutual funds and shares of Southside Bancshares stock. The Acquired Plan assets in this category consist of pooled separate accounts invested in mutual funds and domestic stocks.


(4)	This category is comprised of a broadly diversified “passive” mutual fund.


(5)	This category is comprised of pooled separate accounts invested in mutual funds and international stocks.


(6)	For the Plan, this category is comprised of individual investment grade securities that are generally held to maturity. The Acquired Plan assets in this category consist of pooled separate accounts invested in investment grade and below investment grade bonds.


(7)	This category is comprised of individual securities that are generally not held to maturity.


(8)	This category is mainly comprised of a pooled separate account invested in asset backed securities, residential mortgage backed securities, commercial mortgage backed securities and corporate bonds.


(9)	This category is comprised of a pooled separate account invested in commercial real estate and includes mortgage loans which are backed by the associated properties.


(10)	This category is comprised of a pooled separate account invested in a single mutual fund invested in a combination of fixed income and equity investment options.

(11)

This category is comprised of a pooled separate account invested in a broad range of instruments including, but not limited to, equities, bonds, currencies, convertible securities and derivatives such as futures, options, swaps and forwards.

Schedule of expected future benefit payments related to pension and postretirement plans

As of December 31, 2019, expected future benefit payments related to the Plan, the Acquired Plan and the Restoration Plan were as follows (in thousands):



	Defined Benefit Pension Plan		Defined Benefit Pension Plan Acquired		Restoration Plan
2020	$	3,611	$	247	$	668
2021	3,840		137		875
2022	4,092		93		1,057
2023	4,388		95		1,067
2024	4,652		100		1,067
2025 through 2029	25,968		998		6,624
	$	46,551	$	1,670	$	11,358

Schedule of shares issued in connection with stock compensation awards

Shares issued in connection with stock compensation awards along with other related information are presented in the following table without the retroactive recognition of stock dividends (in thousands, except share amounts):



	Years Ended December 31,
	2019		2018		2017
New shares issued from available authorized shares	—		—		48,311
New shares issued from available treasury shares	122,537		140,692		111,045
Total	122,537		140,692		159,356

Proceeds from stock option exercises	$	1,986	$	2,653	$	2,692

Schedule of stock option valuation assumptions

The estimated weighted-average grant-date fair value per option and the underlying Black-Scholes option-pricing model assumptions are summarized in the following table for years in which we granted NQSOs pursuant to the incentive plans:



	Years Ended December 31,
	2019	2018	2017
Weighted-average grant date fair value per option	$5.89	$6.78	—
Weighted-average assumptions:
Risk-free interest rates	1.63%	2.81%	—
Expected dividend yield	3.50%	1.10%	—
Expected volatility factors of the market price of Southside Bancshares common stock	25.80%	25.41%	—
Expected option life (in years)	6.2	6.2	—

Schedule of stock options and restricted stock units award activity

A combined summary of activity in our share-based plans as of December 31, 2019 is presented below:



	Restricted Stock Units Outstanding				Stock Options Outstanding
	Number of Shares		Weighted- Average Grant-Date Fair Value		Number of Shares		Weighted- Average Exercise Price		Weighted- Average Grant-Date Fair Value
Balance, January 1, 2019	109,750		$	33.57	909,351		$	29.59	$	6.47
Granted	84,137		34.66		314,448		34.83		5.89
Stock options exercised	—		—		(89,265	)	22.25		5.43
Stock awards vested	(41,077	)	32.45		—		—		—
Forfeited	(9,519	)	34.35		(24,010	)	34.51		6.89
Canceled/expired	—		—		(965	)	36.72		7.95
Balance, December 31, 2019	143,291		$	34.48	1,109,559		$	31.55	$	6.38

Schedule of shares stock option exercise price range

Other information regarding options outstanding and exercisable as of December 31, 2019 is as follows:



				Options Outstanding				Options Exercisable
Range of Exercise Prices				Number of Shares	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life in Years	Number of Shares	Weighted- Average Exercise Price
$	14.67	-	$20.00	80,987	$	15.97	2.14	80,987	$	15.97
20.01		-	25.00	82,231	22.97		4.17	73,781	23.07
25.01		-	30.00	166,912	26.63		5.24	162,277	26.57
30.01		-	35.00	641,618	34.67		9.12	86,160	34.52
35.01		-	37.28	137,811	37.28		6.65	112,211	37.28
Total				1,109,559	$	31.55	7.35	515,416	$	28.06