Finance – Page 893 – NewzIntel.com

MIL-OSI Security: Man who funded terrorist fighter in Syria sentenced following a Met counter terrorism investigation

Source: United Kingdom London Metropolitan Police

A man who sent money to his nephew in Syria knowing it was to fund his terrorist activity has been sentenced for terrorism offences following an investigation by specialist officers from the Met’s Counter Terrorism Command.

Through their investigation, detectives found that 46-year-old Farhad Mohammad arranged for $350.00 over two payments to be sent to his nephew, Idris Usman. However, the investigation uncovered that Usman was fighting in Syria at the time for the terrorist group Hay’at Tahrir al-Sham, which is a proscribed organisation in the UK.

On 26 April, Mohammad was found guilty of two terrorism funding offences following a ten-day trial at the Old Bailey. He was sentenced on 23 October to a three year community order, 250 hours unpaid work, three month curfew between 9pm and 8am and a 30 day Rehabilitation Supervision Order.

During the trial, counter terrorism investigators presented evidence showing Mohammad made two payments to his nephew in the space of three months between November 2017 and January 2018 with the knowledge that his nephew was fighting for an Islamist terrorist group in Syria at the time.

One of the messages found by officers on Mohammad’s phone from his nephew in May 2017 read: “Uncle forgive me, God willing I am going to participate in a fighting, either I will stay alive or I become a martyr, it is up to God.”

After initial enquiries were carried out by officers from the Eastern Region Special Operations Unit (ERSOU), the investigation was taken on by specialist investigators within the National Terrorist Financial Investigation Unit, which is based within the Met’s Counter Terrorism Command. Detectives identified that the money, which was sent between November 2017 and January 2018, was transferred via a third-party to Usman.

As a result of meticulous investigative work, Counter Terrorism officers were able to prove that Mohammad was fully aware that the money he was sending was supporting his nephew’s terrorist activities.

Another example of a message found by officers from Usman to Mohammad in June 2017, indicating he was aware of his terrorist activities read: “Uncle for the sake of God send me six and a half waraqa ($650), to buy a weapon, it is the one, which I like it, and may God reward you with good.” Also among the messages sent from Usman to his Uncle was an image sent in August 2017 showing Usman sat on a motorbike with a gun over his shoulder.

Commander Dominic Murphy, who leads the Met’s Counter Terrorism Command, said: “Terrorist groups rely on financial support and funding to be able to operate. While Mohammad’s contributions may not have been vast sums, he was well aware his nephew wanted the money to purchase a firearm and to help fund his fighting in Syria.

“Groups like Hay’at Tahrir al-Sham cause huge misery, terror and devastation. If you knowingly fund someone – family member or not – who is part of a group like that, then it is helping a terrorist organisation and it is something we take extremely seriously.”

On 27 February 2018, Mohammad planned to travel to Turkey from London Stansted airport. However, before he boarded the flight, he was stopped by officers using powers under Schedule 7 of the Terrorism Act, 2000.

Officers found he had over £4,000 of cash, and three mobile phones – all of which were seized and the contents downloaded by officers, with Mohammad subsequently arrested.

Detectives recovered messaging app conversations and voice notes, which, after careful piecing together, officers were able to use to produce a timeline of detailing his conversations and fund transfers.

Commander Murphy added: “The use of counter terrorism powers by officers at the airport was crucial in discovering how Mohammad was knowingly funding his nephew’s terrorist activities in Syria. And it was the specialist skills of officers within our National Terrorist Financial Investigation Unit which helped pinpoint the transactions that led to this prosecution.

“Anyone who might be considering providing financial support to terrorists or terrorist organisations should think twice, as it is a serious offence and, as we’ve shown here, we will investigate those who are involved in this kind of activity.”

Farhad Mohammad, 46, (21.10.1978) of Colchester, Essex was charged on 10 July 2023.

He was found guilty on Friday 26 April 2024 of two counts of terrorist fundraising (contrary to section 17 of the Terrorism Act 2000), after a trial at the Old Bailey and was sentenced at the same court on 23 October. Mohammad was found not guilty on two other counts of terrorist fundraising – linked to alleged payments made in May and August 2017. The jury was unable to reach a verdict in respect of a fifth count of terrorist fundraising, relating to an alleged payment made in October 2017. This count will lie on file.

The National Terrorist Financial Investigation Unit (NTFIU) is based within the Met’s Counter Terrorism Command and is comprised of specialist investigators, analysts and researchers who investigate suspicious financial activity where they believe it may have links to terrorism.

Communities defeat terrorism, and information from the public is vital to counter terrorism investigations. If you see or hear something unusual or suspicious and think someone may be engaging in terrorist activity, trust your instincts and act by reporting it in confidence at www.gov.uk/ACT or call the anti-terrorist hotline on 0800 789 321.

In an emergency, always dial 999.

MIL Security OSI –

January 25, 2025

MIL-OSI: Southside Bancshares, Inc. Announces Financial Results for the Third Quarter Ended September 30, 2024

Source: GlobeNewswire (MIL-OSI)

Third quarter net income of $20.5 million;
Third quarter earnings per diluted common share of $0.68;
Annualized return on third quarter average assets of 0.98%;
Annualized return on third quarter average tangible common equity of 13.69%⁽¹⁾; and
Nonperforming assets remain low at 0.09% of total assets.

TYLER, Texas, Oct. 24, 2024 (GLOBE NEWSWIRE) — Southside Bancshares, Inc. (“Southside” or the “Company”) (NASDAQ: SBSI) today reported its financial results for the quarter ended September 30, 2024. Southside reported net income of $20.5 million for the three months ended September 30, 2024, an increase of $2.1 million, or 11.2%, compared to $18.4 million for the same period in 2023. Earnings per diluted common share increased $0.08, or 13.3%, to $0.68 for the three months ended September 30, 2024, from $0.60 for the same period in 2023. The annualized return on average shareholders’ equity for the three months ended September 30, 2024, was 10.13%, compared to 9.50% for the same period in 2023. The annualized return on average assets was 0.98% for the three months ended September 30, 2024, compared to 0.93% for the same period in 2023.

“Third quarter financial results were highlighted by a linked quarter $1.86 million increase in net interest income, a linked quarter eight basis point increase in our net interest margin to 2.95%, earnings per share of $0.68, a 13.69% return on average tangible equity⁽¹⁾, and continued strong asset quality,” stated Lee R. Gibson, Chief Executive Officer of Southside. “During the quarter we sold $28 million of lower yielding municipal securities, unwound the related fair value swaps and recorded a loss of $1.9 million. The proceeds were reinvested in higher yielding agency mortgage-backed securities. In addition, we recorded an impairment charge of $868,000 on the sale of approximately $10 million of available for sale (“AFS”) municipal securities and the unwind of the related fair value swaps on October 1.”

Operating Results for the Three Months Ended September 30, 2024

Net income was $20.5 million for the three months ended September 30, 2024, compared to $18.4 million for the same period in 2023, an increase of $2.1 million, or 11.2%. Earnings per diluted common share were $0.68 and $0.60 for the three months ended September 30, 2024 and 2023, respectively. The increase in net income was a result of the increase in net interest income and the decrease in provision for credit losses, partially offset by the decrease in noninterest income and increases in noninterest expense and income tax expense. Annualized returns on average assets and average shareholders’ equity for the three months ended September 30, 2024 were 0.98% and 10.13%, respectively, compared to 0.93% and 9.50%, respectively, for the three months ended September 30, 2023. Our efficiency ratio and tax-equivalent efficiency ratio⁽¹⁾ were 53.94% and 51.90%, respectively, for the three months ended September 30, 2024, compared to 54.86% and 52.29%, respectively, for the three months ended September 30, 2023, and 54.90% and 52.71%, respectively, for the three months ended June 30, 2024.

Net interest income for the three months ended September 30, 2024 was $55.5 million, an increase of $2.2 million, or 4.1%, from the same period in 2023. The increase in net interest income was due to the increases in the average balance and the average yield of interest earning assets, partially offset by increases in the average rate paid on our interest bearing liabilities and average balance of our interest bearing liabilities. Linked quarter, net interest income increased $1.9 million, or 3.5%, compared to $53.6 million during the three months ended June 30, 2024, largely due to the increase in the average yield on our interest earning assets and the decrease in the average rate paid on our interest bearing liabilities, partially offset by the decrease in the average balance of interest earning assets.

Our net interest margin and tax-equivalent net interest margin⁽¹⁾ decreased to 2.82% and 2.95%, respectively, for the three months ended September 30, 2024, compared to 2.85% and 3.02%, respectively, for the same period in 2023. Linked quarter, net interest margin and tax-equivalent net interest margin⁽¹⁾ increased from 2.74% and 2.87%, respectively for the three months ended June 30, 2024.

Noninterest income was $8.2 million for the three months ended September 30, 2024, a decrease of $2.7 million, or 24.6%, compared to $10.8 million for the same period in 2023. The decrease was due to a net loss on sale of securities AFS and decreases in other noninterest income and deposit services income, partially offset by an increase in brokerage services income. On a linked quarter basis, noninterest income decreased $3.4 million, or 29.3%, compared to the three months ended June 30, 2024. The decrease was primarily due to an increase in net loss on sale of securities AFS and decreases in other noninterest income and bank owned life insurance income related to a $1.0 million death benefit realized in the second quarter of 2024. The decrease in other noninterest income for both periods was primarily due to an impairment charge of $868,000 on the sale of approximately $10 million of AFS municipal securities and the unwind of the related fair value swaps on October 1.

Noninterest expense increased $0.8 million, or 2.2%, to $36.3 million for the three months ended September 30, 2024, compared to $35.6 million for the same period in 2023, due to increases in salaries and employee benefits and software and data processing expense, partially offset by decreases in advertising, travel and entertainment expense, professional fees, net occupancy expense and amortization of intangibles. On a linked quarter basis, noninterest expense increased by $0.6 million, or 1.6%, compared to the three months ended June 30, 2024, due to increases in other noninterest expense, salaries and employee benefits expense and professional fees.

Income tax expense increased $1.3 million, or 40.7%, for the three months ended September 30, 2024, compared to the same period in 2023. On a linked quarter basis, income tax expense decreased $0.8 million, or 15.8%. Our effective tax rate (“ETR”) increased to 17.6% for the three months ended September 30, 2024, compared to 14.5% for the three months ended September 30, 2023, and increased slightly from 17.4% for the three months ended June 30, 2024. The higher ETR for the three months ended September 30, 2024 compared to the same period in 2023, was primarily due to a decrease in tax-exempt income as a percentage of pre-tax income.

Operating Results for the Nine Months Ended September 30, 2024

Net income was $66.7 million for the nine months ended September 30, 2024, compared to $69.4 million for the same period in 2023, a decrease of $2.7 million, or 3.8%. Earnings per diluted common share were $2.20 for the nine months ended September 30, 2024, compared to $2.24 for the same period in 2023, a decrease of 1.8%. The decrease in net income was primarily a result of the decrease in noninterest income and increases in noninterest expense and income tax expense, partially offset by the decrease in provision for credit losses and the increase in net interest income. Returns on average assets and average shareholders’ equity for the nine months ended September 30, 2024 were 1.06% and 11.19%, respectively, compared to 1.20% and 12.21%, respectively, for the nine months ended September 30, 2023. Our efficiency ratio and tax-equivalent efficiency ratio⁽¹⁾ were 55.56% and 53.35%, respectively, for the nine months ended September 30, 2024, compared to 53.99% and 51.44%, respectively, for the nine months ended September 30, 2023.

Net interest income was $162.4 million for the nine months ended September 30, 2024, compared to $160.5 million for the same period in 2023, an increase of $1.9 million, or 1.2%, due to increases in the average balance and the average yield of interest earning assets, partially offset by increases in the average rate paid on our interest bearing liabilities and average balance of our interest bearing liabilities.

Our net interest margin and tax-equivalent net interest margin⁽¹⁾ were 2.76% and 2.90%, respectively, for the nine months ended September 30, 2024, compared to 2.95% and 3.13%, respectively, for the same period in 2023.

Noninterest income was $29.5 million for the nine months ended September 30, 2024, a decrease of $3.9 million, or 11.6%, compared to $33.3 million for the same period in 2023. The decrease was due to decreases in the net gain on sale of equity securities, other noninterest income and deposit services income and a loss on sale of loans, partially offset by a decrease in net loss on sale of securities AFS and an increase in brokerage services income. The decrease in other noninterest income was primarily due to an impairment charge of $868,000 on the sale of approximately $10 million of AFS municipal securities and the unwind of the related fair value swaps on October 1.

Noninterest expense was $109.0 million for the nine months ended September 30, 2024, compared to $105.4 million for the same period in 2023, an increase of $3.6 million, or 3.4%. The increase was primarily due to increases in salaries and employee benefits and software and data processing expense, partially offset by decreases in professional fees, net occupancy expense, advertising, travel and entertainment expense, and amortization of intangibles.

Income tax expense increased $2.0 million, or 16.3%, for the nine months ended September 30, 2024, compared to the same period in 2023. Our ETR was approximately 17.6% and 15.0% for the nine months ended September 30, 2024 and 2023, respectively. The higher ETR for the nine months ended September 30, 2024, as compared to the same period in 2023, was primarily due to a decrease in tax-exempt income as a percentage of pre-tax income.

Balance Sheet Data

At September 30, 2024, Southside had $8.36 billion in total assets, compared to $8.28 billion at December 31, 2023 and $7.97 billion at September 30, 2023.

Loans at September 30, 2024 were $4.58 billion, an increase of $157.4 million, or 3.6%, compared to $4.42 billion at September 30, 2023. Linked quarter, loans decreased $11.3 million, or 0.2%, due to decreases of $50.2 million in commercial real estate loans, $14.9 million in municipal loans, $2.4 million in loans to individuals and $1.0 million in commercial loans. These decreases were partially offset by increases of $39.8 million in construction loans and $17.4 million in 1-4 family residential loans.

Securities at September 30, 2024 were $2.70 billion, an increase of $53.4 million, or 2.0%, compared to $2.64 billion at September 30, 2023. Linked quarter, securities decreased $15.1 million, or 0.6%, from $2.71 billion at June 30, 2024.

Deposits at September 30, 2024 were $6.44 billion, an increase of $86.1 million, or 1.4%, compared to $6.35 billion at September 30, 2023. Linked quarter, deposits decreased $60.2 million, or 0.9%, from $6.50 billion at June 30, 2024.

At September 30, 2024, we had 179,214 total deposit accounts with an average balance of $32,000. Our estimated uninsured deposits were 35.9% as of September 30, 2024. When excluding affiliate deposits (Southside-owned deposits) and public fund deposits (all collateralized), our total estimated deposits without insurance or collateral was 19.2% as of September 30, 2024. Our noninterest bearing deposits represent approximately 21.4% of total deposits. Linked quarter, our cost of interest bearing deposits remained consistent at 3.01%. Linked quarter, our cost of total deposits decreased one basis point from 2.39% in the prior quarter to 2.38%.

Our cost of interest bearing deposits increased 83 basis points, from 2.16% for the nine months ended September 30, 2023, to 2.99% for the nine months ended September 30, 2024. Our cost of total deposits increased 75 basis points, from 1.62% for the nine months ended September 30, 2023, to 2.37% for the nine months ended September 30, 2024.

Capital Resources and Liquidity

Our capital ratios and contingent liquidity sources remain solid. During the third quarter ended September 30, 2024, we did not purchase any common stock pursuant to our Stock Repurchase Plan. Under this plan, repurchases of our outstanding common stock may be carried out in open market purchases, privately negotiated transactions or pursuant to any trading plan that might be adopted in accordance with Rule 10b5-1 of The Securities Exchange Act of 1934, as amended. The Company has no obligation to repurchase any shares under the Stock Repurchase Plan and may modify, suspend or discontinue the plan at any time. We have not purchased any common stock pursuant to the Stock Repurchase Plan subsequent to September 30, 2024.

As of September 30, 2024, our total available contingent liquidity, net of current outstanding borrowings, was $2.23 billion, consisting of FHLB advances, Federal Reserve Discount Window and correspondent bank lines of credit.

Asset Quality

Nonperforming assets at September 30, 2024 were $7.7 million, or 0.09% of total assets, an increase of $3.3 million, or 74.8%, compared to $4.4 million, or 0.05% of total assets, at September 30, 2023. Linked quarter, nonperforming assets increased $0.7 million, or 10.7%, from $6.9 million at June 30, 2024 due primarily to an increase of $1.1 million, or 18.7%, in nonaccrual loans, partially offset by decreases of $0.1 million in restructured loans and $0.3 million in other real estate owned.

The allowance for loan losses totaled $44.3 million, or 0.97% of total loans, at September 30, 2024, compared to $42.4 million, or 0.92% of total loans, at June 30, 2024. The increase in the allowance as a percentage of total assets was primarily due to the increased economic concerns forecasted in the CECL model specific to office and multifamily markets in metro areas. The allowance for loan losses was $41.8 million, or 0.94% of total loans, at September 30, 2023.

For the three months ended September 30, 2024, we recorded a provision for credit losses for loans of $2.3 million, compared to a provision of $6.3 million for the three months ended September 30, 2023, and a reversal of provision of $0.9 million for the three months ended June 30, 2024. Net charge-offs were $0.4 million for the three months ended September 30, 2024, compared to net charge-offs of $0.9 million and $0.3 million for the three months ended September 30, 2023 and June 30, 2024, respectively. Net charge-offs were $1.0 million for the nine months ended September 30, 2024, compared to net charge-offs of $1.5 million for the nine months ended September 30, 2023.

We recorded a provision for credit losses on off-balance-sheet credit exposures of $0.1 million for the three months ended September 30, 2024, compared to $0.6 million and $0.4 million for the three months ended September 30, 2023 and June 30, 2024, respectively. We recorded a reversal of provision for credit losses for off-balance-sheet credit exposures of $0.6 million for the nine months ended September 30, 2024, compared to a provision for credit losses on off-balance-sheet credit exposures of $0.2 million for the nine months ended September 30, 2023. The balance of the allowance for off-balance-sheet credit exposures was $3.3 million and $3.9 million at September 30, 2024 and 2023, respectively, and is included in other liabilities.

Dividend

Southside Bancshares, Inc. declared a third quarter cash dividend of $0.36 per share on August 8, 2024, which was paid on September 5, 2024, to all shareholders of record as of August 22, 2024.

_______________

^{(1) Refer to “Non-GAAP Financial Measures” below and to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for more information and for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.}

Conference Call

Southside’s management team will host a conference call to discuss its third quarter ended September 30, 2024 financial results on Thursday, October 24, 2024 at 11:00 a.m. CDT. The conference call can be accessed by webcast, for listen-only mode, on the company website, https://investors.southside.com, under Events.

Those interested in participating in the question and answer session, or others who prefer to call-in, can register at https://register.vevent.com/register/BIe280e5ecbf444a68a5836f1e27caa8a9 to receive the dial-in number and unique code to access the conference call seamlessly. While not required, it is recommended that those wishing to participate, register 10 minutes prior to the conference call to ensure a more efficient registration process.

For those unable to attend the live event, a webcast recording will be available on the company website, https://investors.southside.com, for at least 30 days, beginning approximately two hours following the conference call.

Non-GAAP Financial Measures

Our accounting and reporting policies conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP measures are used by management to supplement the evaluation of our performance. These include the following fully taxable-equivalent measures (“FTE”): (i) Net interest income (FTE), (ii) net interest margin (FTE), (iii) net interest spread (FTE), and (iv) efficiency ratio (FTE), which include the effects of taxable-equivalent adjustments using a federal income tax rate of 21% to increase tax-exempt interest income to a tax-equivalent basis. Interest income earned on certain assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments.

Net interest income (FTE), net interest margin (FTE) and net interest spread (FTE). Net interest income (FTE) is a non-GAAP measure that adjusts for the tax-favored status of net interest income from certain loans and investments and is not permitted under GAAP in the consolidated statements of income. We believe this measure to be the preferred industry measurement of net interest income and that it enhances comparability of net interest income arising from taxable and tax-exempt sources. The most directly comparable financial measure calculated in accordance with GAAP is our net interest income. Net interest margin (FTE) is the ratio of net interest income (FTE) to average earning assets. The most directly comparable financial measure calculated in accordance with GAAP is our net interest margin. Net interest spread (FTE) is the difference in the average yield on average earning assets on a tax-equivalent basis and the average rate paid on average interest bearing liabilities. The most directly comparable financial measure calculated in accordance with GAAP is our net interest spread.

Efficiency ratio (FTE). The efficiency ratio (FTE) is a non-GAAP measure that provides a measure of productivity in the banking industry. This ratio is calculated to measure the cost of generating one dollar of revenue. The ratio is designed to reflect the percentage of one dollar which must be expended to generate that dollar of revenue. We calculate this ratio by dividing noninterest expense, excluding amortization expense on intangibles and certain nonrecurring expense by the sum of net interest income (FTE) and noninterest income, excluding net gain (loss) on sale of securities available for sale and certain nonrecurring impairments. The most directly comparable financial measure calculated in accordance with GAAP is our efficiency ratio.

These non-GAAP financial measures should not be considered alternatives to GAAP-basis financial statements and other bank holding companies may define or calculate these non-GAAP measures or similar measures differently. Whenever we present a non-GAAP financial measure in an SEC filing, we are also required to present the most directly comparable financial measure calculated and presented in accordance with GAAP and reconcile the differences between the non-GAAP financial measure and such comparable GAAP measure.

Management believes adjusting net interest income, net interest margin and net interest spread to a fully taxable-equivalent basis is a standard practice in the banking industry as these measures provide useful information to make peer comparisons. Tax-equivalent adjustments are reflected in the respective earning asset categories as listed in the “Average Balances with Average Yields and Rates” tables.

A reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.

About Southside Bancshares, Inc.

Southside Bancshares, Inc. is a bank holding company with approximately $8.36 billion in assets as of September 30, 2024, that owns 100% of Southside Bank. Southside Bank currently has 54 branches in Texas and operates a network of 73 ATMs/ITMs.

To learn more about Southside Bancshares, Inc., please visit our investor relations website at https://investors.southside.com. Our investor relations site provides a detailed overview of our activities, financial information and historical stock price data. To receive email notification of company news, events and stock activity, please register on the website under Resources and Investor Email Alerts. Questions or comments may be directed to Lindsey Bailes at (903) 630-7965, or lindsey.bailes@southside.com.

Forward-Looking Statements

Certain statements of other than historical fact that are contained in this press release and in other written materials, documents and oral statements issued by or on behalf of the Company may be considered to be “forward-looking statements” within the meaning of and subject to the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. These statements may include words such as “expect,” “estimate,” “project,” “anticipate,” “appear,” “believe,” “could,” “should,” “may,” “might,” “will,” “would,” “seek,” “intend,” “probability,” “risk,” “goal,” “target,” “objective,” “plans,” “potential,” and similar expressions. Forward-looking statements are statements with respect to the Company’s beliefs, plans, expectations, objectives, goals, anticipations, assumptions, estimates, intentions and future performance and are subject to significant known and unknown risks and uncertainties, which could cause the Company’s actual results to differ materially from the results discussed in the forward-looking statements. For example, benefits of the Share Repurchase Plan, trends in asset quality, capital, liquidity, the Company’s ability to sell nonperforming assets, expense reductions, planned operational efficiencies and earnings from growth and certain market risk disclosures, including the impact of interest rates and our expectations regarding rate increases, tax reform, inflation, the impacts related to or resulting from other economic factors are based upon information presently available to management and are dependent on choices about key model characteristics and assumptions and are subject to various limitations. By their nature, certain of the market risk disclosures are only estimates and could be materially different from what actually occurs in the future. Accordingly, our results could materially differ from those that have been estimated. The most significant factor that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of higher inflation levels, interest rate fluctuations and general economic and recessionary concerns, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations, our ability to manage liquidity in a rapidly changing and unpredictable market, labor shortages and changes in interest rates by the Federal Reserve.

Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, under “Part I – Item 1. Forward Looking Information” and “Part I – Item 1A. Risk Factors” and in the Company’s other filings with the Securities and Exchange Commission. The Company disclaims any obligation to update any factors or to announce publicly the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.


Southside Bancshares, Inc. Consolidated Financial Summary (Unaudited) (Dollars in thousands)

	As of
		2024									2023
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
ASSETS
Cash and due from banks	$	130,147		$	114,283		$	96,744		$	122,021		$	105,601
Interest earning deposits		333,825			272,469			307,257			391,719			106,094
Federal funds sold		22,325			65,244			65,372			46,770			114,128
Securities available for sale, at estimated fair value		1,408,437			1,405,944			1,405,221			1,296,294			1,335,560
Securities held to maturity, at net carrying value		1,288,403			1,305,975			1,306,898			1,307,053			1,307,886
Total securities		2,696,840			2,711,919			2,712,119			2,603,347			2,643,446
Federal Home Loan Bank stock, at cost		40,291			32,991			27,958			11,936			12,778
Loans held for sale		768			1,352			756			10,894			1,382
Loans		4,578,048			4,589,365			4,577,368			4,524,510			4,420,633
Less: Allowance for loan losses		(44,276	)		(42,407	)		(43,557	)		(42,674	)		(41,760	)
Net loans		4,533,772			4,546,958			4,533,811			4,481,836			4,378,873
Premises & equipment, net		138,811			138,489			139,491			138,950			139,473
Goodwill		201,116			201,116			201,116			201,116			201,116
Other intangible assets, net		2,003			2,281			2,588			2,925			3,295
Bank owned life insurance		137,489			136,903			136,604			136,330			135,737
Other assets		124,876			133,697			130,047			137,070			130,545
Total assets	$	8,362,263		$	8,357,702		$	8,353,863		$	8,284,914		$	7,972,468

LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest bearing deposits	$	1,377,022		$	1,366,924		$	1,358,827		$	1,390,407		$	1,431,285
Interest bearing deposits		5,058,680			5,129,008			5,186,933			5,159,274			4,918,286
Total deposits		6,435,702			6,495,932			6,545,760			6,549,681			6,349,571
Other borrowings and Federal Home Loan Bank borrowings		865,856			763,700			770,151			722,468			608,038
Subordinated notes, net of unamortized debt issuance costs		92,006			91,970			93,913			93,877			93,838
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,273			60,272			60,271			60,270			60,269
Other liabilities		103,172			144,858			95,846			85,330			132,157
Total liabilities		7,557,009			7,556,732			7,565,941			7,511,626			7,243,873
Shareholders’ equity		805,254			800,970			787,922			773,288			728,595
Total liabilities and shareholders’ equity	$	8,362,263		$	8,357,702		$	8,353,863		$	8,284,914		$	7,972,468


Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars and shares in thousands, except per share data)

	Three Months Ended
		2024									2023
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
Income Statement:
Total interest income	$	105,703		$	104,186		$	102,758		$	98,939		$	93,078
Total interest expense		50,239			50,578			49,410			44,454			39,805
Net interest income		55,464			53,608			53,348			54,485			53,273
Provision for (reversal of) credit losses		2,389			(485	)		58			2,281			6,987
Net interest income after provision for (reversal of) credit losses		53,075			54,093			53,290			52,204			46,286
Noninterest income
Deposit services		6,199			6,157			5,985			6,305			6,479
Net gain (loss) on sale of securities available for sale		(1,929	)		(563	)		(18	)		(10,386	)		11
Gain (loss) on sale of loans		115			220			(436	)		178			96
Trust fees		1,628			1,456			1,336			1,431			1,522
Bank owned life insurance		857			1,767			784			2,602			790
Brokerage services		1,068			1,081			1,014			944			760
Other		233			1,439			1,059			1,427			1,178
Total noninterest income		8,171			11,557			9,724			2,501			10,836
Noninterest expense
Salaries and employee benefits		22,233			21,984			23,113			21,152			21,241
Net occupancy		3,613			3,750			3,362			3,474			3,796
Advertising, travel & entertainment		734			795			950			1,127			1,062
ATM expense		412			368			325			318			358
Professional fees		1,206			1,075			1,154			1,315			1,472
Software and data processing		2,951			2,860			2,856			2,644			2,432
Communications		423			410			449			435			359
FDIC insurance		939			977			943			892			902
Amortization of intangibles		278			307			337			370			407
Other		3,543			3,239			3,392			3,456			3,524
Total noninterest expense		36,332			35,765			36,881			35,183			35,553
Income before income tax expense		24,914			29,885			26,133			19,522			21,569
Income tax expense		4,390			5,212			4,622			2,206			3,120
Net income	$	20,524		$	24,673		$	21,511		$	17,316		$	18,449

Common Share Data:
Weighted-average basic shares outstanding		30,286			30,280			30,262			30,235			30,502
Weighted-average diluted shares outstanding		30,370			30,312			30,305			30,276			30,543
Common shares outstanding end of period		30,308			30,261			30,284			30,249			30,338
Earnings per common share
Basic	$	0.68		$	0.81		$	0.71		$	0.57		$	0.60
Diluted		0.68			0.81			0.71			0.57			0.60
Book value per common share		26.57			26.47			26.02			25.56			24.02
Tangible book value per common share		19.87			19.75			19.29			18.82			17.28
Cash dividends paid per common share		0.36			0.36			0.36			0.37			0.35

Selected Performance Ratios:
Return on average assets		0.98	%		1.19	%		1.03	%		0.85	%		0.93	%
Return on average shareholders’ equity		10.13			12.46			11.02			9.31			9.50
Return on average tangible common equity ⁽¹⁾		13.69			16.90			15.07			13.10			13.17
Average yield on earning assets (FTE) ⁽¹⁾		5.51			5.45			5.38			5.30			5.15
Average rate on interest bearing liabilities		3.28			3.32			3.22			3.04			2.84
Net interest margin (FTE) ⁽¹⁾		2.95			2.87			2.86			2.99			3.02
Net interest spread (FTE) ⁽¹⁾		2.23			2.13			2.16			2.26			2.31
Average earning assets to average interest bearing liabilities		128.51			128.62			127.71			131.65			133.24
Noninterest expense to average total assets		1.73			1.72			1.77			1.73			1.79
Efficiency ratio (FTE) ⁽¹⁾		51.90			52.71			55.54			50.86			52.29

^{(1) Refer to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.}


Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands)

	Three Months Ended
		2024									2023
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
Nonperforming Assets:	$	7,656		$	6,918		$	7,979		$	4,001		$	4,381
Nonaccrual loans		7,254			6,110			7,709			3,889			4,316
Accruing loans past due more than 90 days		—			—			—			—			—
Restructured loans		—			145			151			13			15
Other real estate owned		388			648			119			99			50
Repossessed assets		14			15			—			—			—

Asset Quality Ratios:
Ratio of nonaccruing loans to:
Total loans		0.16	%		0.13	%		0.17	%		0.09	%		0.10	%
Ratio of nonperforming assets to:
Total assets		0.09			0.08			0.10			0.05			0.05
Total loans		0.17			0.15			0.17			0.09			0.10
Total loans and OREO		0.17			0.15			0.17			0.09			0.10
Ratio of allowance for loan losses to:
Nonaccruing loans		610.37			694.06			565.01			1,097.30			967.56
Nonperforming assets		578.32			613.00			545.90			1,066.58			953.21
Total loans		0.97			0.92			0.95			0.94			0.94
Net charge-offs (recoveries) to average loans outstanding		0.04			0.02			0.03			0.11			0.08

Capital Ratios:
Shareholders’ equity to total assets		9.63			9.58			9.43			9.33			9.14
Common equity tier 1 capital		13.07			12.72			12.43			12.28			12.27
Tier 1 risk-based capital		14.12			13.76			13.47			13.32			13.31
Total risk-based capital		16.59			16.16			15.92			15.73			15.71
Tier 1 leverage capital		9.61			9.40			9.22			9.39			9.61
Period end tangible equity to period end tangible assets ⁽¹⁾		7.38			7.33			7.17			7.04			6.75
Average shareholders’ equity to average total assets		9.67			9.52			9.35			9.13			9.76

^{(1) Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.}


Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands)

	Three Months Ended
		2024									2023
Loan Portfolio Composition	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
Real Estate Loans:
Construction	$	585,817		$	546,040		$	599,464		$	789,744		$	720,515
1-4 Family Residential		755,406			738,037			720,508			696,738			689,492
Commercial		2,422,612			2,472,771			2,413,345			2,168,451			2,117,306
Commercial Loans		358,854			359,807			358,053			366,893			385,816
Municipal Loans		402,041			416,986			427,225			441,168			441,512
Loans to Individuals		53,318			55,724			58,773			61,516			65,992
Total Loans	$	4,578,048		$	4,589,365		$	4,577,368		$	4,524,510		$	4,420,633

Summary of Changes in Allowances:
Allowance for Loan Losses
Balance at beginning of period	$	42,407		$	43,557		$	42,674		$	41,760		$	36,303
Loans charged-off		(773	)		(721	)		(634	)		(1,572	)		(1,262	)
Recoveries of loans charged-off		365			444			347			284			378
Net loans (charged-off) recovered		(408	)		(277	)		(287	)		(1,288	)		(884	)
Provision for (reversal of) loan losses		2,277			(873	)		1,170			2,202			6,341
Balance at end of period	$	44,276		$	42,407		$	43,557		$	42,674		$	41,760

Allowance for Off-Balance-Sheet Credit Exposures
Balance at beginning of period	$	3,208		$	2,820		$	3,932		$	3,853		$	3,207
Provision for (reversal of) off-balance-sheet credit exposures		112			388			(1,112	)		79			646
Balance at end of period	$	3,320		$	3,208		$	2,820		$	3,932		$	3,853
Total Allowance for Credit Losses	$	47,596		$	45,615		$	46,377		$	46,606		$	45,613


Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands)

	Nine Months Ended
	September 30,
		2024			2023
Income Statement:
Total interest income	$	312,647		$	260,802
Total interest expense		150,227			100,260
Net interest income		162,420			160,542
Provision for (reversal of) credit losses		1,962			6,873
Net interest income after provision for (reversal of) credit losses		160,458			153,669
Noninterest income
Deposit services		18,341			19,192
Net gain (loss) on sale of securities available for sale		(2,510	)		(5,590	)
Net gain on sale of equity securities		—			5,058
Gain (loss) on sale of loans		(101	)		385
Trust fees		4,420			4,479
Bank owned life insurance		3,408			3,221
Brokerage services		3,163			2,361
Other		2,731			4,227
Total noninterest income		29,452			33,333
Noninterest expense
Salaries and employee benefits		67,330			64,473
Net occupancy		10,725			11,220
Advertising, travel & entertainment		2,479			2,966
ATM expense		1,105			1,033
Professional fees		3,435			4,036
Software and data processing		8,667			6,751
Communications		1,282			1,034
FDIC insurance		2,859			2,666
Amortization of intangibles		922			1,327
Other		10,174			9,889
Total noninterest expense		108,978			105,395
Income before income tax expense		80,932			81,607
Income tax expense		14,224			12,231
Net income	$	66,708		$	69,376
Common Share Data:
Weighted-average basic shares outstanding		30,276			30,862
Weighted-average diluted shares outstanding		30,332			30,916
Common shares outstanding end of period		30,308			30,338
Earnings per common share
Basic	$	2.20		$	2.25
Diluted		2.20			2.24
Book value per common share		26.57			24.02
Tangible book value per common share		19.87			17.28
Cash dividends paid per common share		1.08			1.05

Selected Performance Ratios:
Return on average assets		1.06	%		1.20	%
Return on average shareholders’ equity		11.19			12.21
Return on average tangible common equity ⁽¹⁾		15.20			16.98
Average yield on earning assets (FTE) ⁽¹⁾		5.45			4.97
Average rate on interest bearing liabilities		3.27			2.49
Net interest margin (FTE) ⁽¹⁾		2.90			3.13
Net interest spread (FTE) ⁽¹⁾		2.18			2.48
Average earning assets to average interest bearing liabilities		128.28			134.94
Noninterest expense to average total assets		1.74			1.84
Efficiency ratio (FTE) ⁽¹⁾		53.35			51.44

^{(1) Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.}


Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands)

	Nine Months Ended
	September 30,
		2024			2023
Nonperforming Assets:	$	7,656		$	4,381
Nonaccrual loans		7,254			4,316
Accruing loans past due more than 90 days		—			—
Restructured loans		—			15
Other real estate owned		388			50
Repossessed assets		14			—

Asset Quality Ratios:
Ratio of nonaccruing loans to:
Total loans		0.16	%		0.10	%
Ratio of nonperforming assets to:
Total assets		0.09			0.05
Total loans		0.17			0.10
Total loans and OREO		0.17			0.10
Ratio of allowance for loan losses to:
Nonaccruing loans		610.37			967.56
Nonperforming assets		578.32			953.21
Total loans		0.97			0.94
Net charge-offs (recoveries) to average loans outstanding		0.03			0.05

Capital Ratios:
Shareholders’ equity to total assets		9.63			9.14
Common equity tier 1 capital		13.07			12.27
Tier 1 risk-based capital		14.12			13.31
Total risk-based capital		16.59			15.71
Tier 1 leverage capital		9.61			9.61
Period end tangible equity to period end tangible assets ⁽¹⁾		7.38			6.75
Average shareholders’ equity to average total assets		9.51			9.81

^{(1) Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.}


Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands)

	Nine Months Ended
	September 30,
Loan Portfolio Composition		2024			2023
Real Estate Loans:
Construction	$	585,817		$	720,515
1-4 Family Residential		755,406			689,492
Commercial		2,422,612			2,117,306
Commercial Loans		358,854			385,816
Municipal Loans		402,041			441,512
Loans to Individuals		53,318			65,992
Total Loans	$	4,578,048		$	4,420,633

Summary of Changes in Allowances:
Allowance for Loan Losses
Balance at beginning of period	$	42,674		$	36,515
Loans charged-off		(2,128	)		(2,632	)
Recoveries of loans charged-off		1,156			1,170
Net loans (charged-off) recovered		(972	)		(1,462	)
Provision for (reversal of) loan losses		2,574			6,707
Balance at end of period	$	44,276		$	41,760

Allowance for Off-Balance-Sheet Credit Exposures
Balance at beginning of period	$	3,932		$	3,687
Provision for (reversal of) off-balance-sheet credit exposures		(612	)		166
Balance at end of period	$	3,320		$	3,853
Total Allowance for Credit Losses	$	47,596		$	45,613

The tables that follow show average earning assets and interest bearing liabilities together with the average yield on the earning assets and the average rate of the interest bearing liabilities for the periods presented. The interest and related yields presented are on a fully taxable-equivalent basis and are therefore non-GAAP measures. See “Non-GAAP Financial Measures” and “Non-GAAP Reconciliation” for more information.

Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands)

	Three Months Ended
	September 30, 2024							June 30, 2024
	Average Balance			Interest		Average Yield/Rate		Average Balance			Interest		Average Yield/Rate
ASSETS
Loans ⁽¹⁾	$	4,613,028		$	72,493	6.25	%	$	4,595,980		$	70,293	6.15	%
Loans held for sale		871			11	5.02	%		1,489			24	6.48	%
Securities:
Taxable investment securities ⁽²⁾		791,914			7,150	3.59	%		783,856			7,009	3.60	%
Tax-exempt investment securities ⁽²⁾		1,174,445			11,825	4.01	%		1,254,097			12,761	4.09	%
Mortgage-backed and related securities ⁽²⁾		886,325			11,976	5.38	%		830,504			11,084	5.37	%
Total securities		2,852,684			30,951	4.32	%		2,868,457			30,854	4.33	%
Federal Home Loan Bank stock, at cost, and equity investments		41,159			582	5.63	%		40,467			573	5.69	%
Interest earning deposits		281,313			3,798	5.37	%		300,047			4,105	5.50	%
Federal funds sold		33,971			488	5.71	%		75,479			1,021	5.44	%
Total earning assets		7,823,026			108,323	5.51	%		7,881,919			106,870	5.45	%
Cash and due from banks		100,578							110,102
Accrued interest and other assets		455,091							424,323
Less: Allowance for loan losses		(42,581	)						(43,738	)
Total assets	$	8,336,114						$	8,372,606
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	598,116			1,490	0.99	%	$	604,753			1,454	0.97	%
Certificates of deposit		1,087,613			12,647	4.63	%		1,020,099			11,630	4.59	%
Interest bearing demand accounts		3,409,911			24,395	2.85	%		3,513,068			25,382	2.91	%
Total interest bearing deposits		5,095,640			38,532	3.01	%		5,137,920			38,466	3.01	%
Federal Home Loan Bank borrowings		618,708			6,488	4.17	%		606,851			6,455	4.28	%
Subordinated notes, net of unamortized debt issuance costs		91,988			937	4.05	%		92,017			936	4.09	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,273			1,180	7.79	%		60,271			1,171	7.81	%
Repurchase agreements		83,297			899	4.29	%		88,007			955	4.36	%
Other borrowings		137,482			2,203	6.37	%		143,169			2,595	7.29	%
Total interest bearing liabilities		6,087,388			50,239	3.28	%		6,128,235			50,578	3.32	%
Noninterest bearing deposits		1,344,165							1,346,274
Accrued expenses and other liabilities		98,331							101,399
Total liabilities		7,529,884							7,575,908
Shareholders’ equity		806,230							796,698
Total liabilities and shareholders’ equity	$	8,336,114						$	8,372,606
Net interest income (FTE)				$	58,084						$	56,292
Net interest margin (FTE)						2.95	%						2.87	%
Net interest spread (FTE)						2.23	%						2.13	%

^{(1) Interest on loans includes net fees on loans that are not material in amount.}
^{(2) For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.}

^{Note: As of September 30, 2024 and June 30, 2024, loans totaling $7.3 million and $6.1 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.}


Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands)

	Three Months Ended
	March 31, 2024							December 31, 2023
	Average Balance			Interest		Average Yield/Rate		Average Balance			Interest		Average Yield/Rate
ASSETS
Loans ⁽¹⁾	$	4,559,602		$	68,849	6.07	%	$	4,473,618		$	67,886	6.02	%
Loans held for sale		8,834			18	0.82	%		1,858			27	5.77	%
Securities:
Taxable investment securities ⁽²⁾		780,423			6,967	3.59	%		852,023			7,970	3.71	%
Tax-exempt investment securities ⁽²⁾		1,285,922			13,168	4.12	%		1,456,187			15,688	4.27	%
Mortgage-backed and related securities ⁽²⁾		764,713			10,119	5.32	%		581,548			6,865	4.68	%
Total securities		2,831,058			30,254	4.30	%		2,889,758			30,523	4.19	%
Federal Home Loan Bank stock, at cost, and equity investments		40,063			333	3.34	%		24,674			296	4.76	%
Interest earning deposits		380,181			5,202	5.50	%		150,763			2,054	5.41	%
Federal funds sold		62,599			838	5.38	%		93,149			1,286	5.48	%
Total earning assets		7,882,337			105,494	5.38	%		7,633,820			102,072	5.30	%
Cash and due from banks		114,379							110,380
Accrued interest and other assets		441,783							374,120
Less: Allowance for loan losses		(42,973	)						(41,822	)
Total assets	$	8,395,526						$	8,076,498
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	604,529			1,424	0.95	%	$	610,453			1,432	0.93	%
Certificates of deposit		941,947			10,341	4.42	%		910,759			9,691	4.22	%
Interest bearing demand accounts		3,634,936			26,433	2.92	%		3,469,120			24,498	2.80	%
Total interest bearing deposits		5,181,412			38,198	2.97	%		4,990,332			35,621	2.83	%
Federal Home Loan Bank borrowings		607,033			5,950	3.94	%		262,709			1,430	2.16	%
Subordinated notes, net of unamortized debt issuance costs		93,895			956	4.10	%		93,859			965	4.08	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,270			1,175	7.84	%		60,269			1,195	7.87	%
Repurchase agreements		92,177			967	4.22	%		96,622			1,008	4.14	%
Other borrowings		137,287			2,164	6.34	%		294,683			4,235	5.70	%
Total interest bearing liabilities		6,172,074			49,410	3.22	%		5,798,474			44,454	3.04	%
Noninterest bearing deposits		1,338,384							1,424,961
Accrued expenses and other liabilities		100,014							115,388
Total liabilities		7,610,472							7,338,823
Shareholders’ equity		785,054							737,675
Total liabilities and shareholders’ equity	$	8,395,526						$	8,076,498
Net interest income (FTE)				$	56,084						$	57,618
Net interest margin (FTE)						2.86	%						2.99	%
Net interest spread (FTE)						2.16	%						2.26	%

^{(1) Interest on loans includes net fees on loans that are not material in amount.}
^{(2) For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.}

^{Note: As of March 31, 2024 and December 31, 2023, loans totaling $7.7 million and $3.9 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.}


Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands)

	Three Months Ended
	September 30, 2023
	Average Balance			Interest		Average Yield/Rate
ASSETS
Loans ⁽¹⁾	$	4,396,184		$	64,758	5.84	%
Loans held for sale		1,537			26	6.71	%
Securities:
Taxable investment securities ⁽²⁾		912,789			8,731	3.79	%
Tax-exempt investment securities ⁽²⁾		1,510,044			16,232	4.26	%
Mortgage-backed and related securities ⁽²⁾		442,908			4,426	3.96	%
Total securities		2,865,741			29,389	4.07	%
Federal Home Loan Bank stock, at cost, and equity investments		22,363			265	4.70	%
Interest earning deposits		37,891			535	5.60	%
Federal funds sold		94,441			1,253	5.26	%
Total earning assets		7,418,157			96,226	5.15	%
Cash and due from banks		106,348
Accrued interest and other assets		400,850
Less: Allowance for loan losses		(36,493	)
Total assets	$	7,888,862
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	622,246			1,458	0.93	%
Certificates of deposit		949,894			9,443	3.94	%
Interest bearing demand accounts		3,189,048			20,050	2.49	%
Total interest bearing deposits		4,761,188			30,951	2.58	%
Federal Home Loan Bank borrowings		230,184			1,174	2.02	%
Subordinated notes, net of unamortized debt issuance costs		93,817			962	4.07	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,268			1,178	7.75	%
Repurchase agreements		104,070			1,048	4.00	%
Other borrowings		317,913			4,492	5.61	%
Total interest bearing liabilities		5,567,440			39,805	2.84	%
Noninterest bearing deposits		1,441,738
Accrued expenses and other liabilities		109,490
Total liabilities		7,118,668
Shareholders’ equity		770,194
Total liabilities and shareholders’ equity	$	7,888,862
Net interest income (FTE)				$	56,421
Net interest margin (FTE)						3.02	%
Net interest spread (FTE)						2.31	%

^{(1) Interest on loans includes net fees on loans that are not material in amount.}
^{(2) For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.}

^{Note: As of September 30, 2023, loans totaling $4.3 million were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.}


Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands)

	Nine Months Ended
	September 30, 2024							September 30, 2023
	Average Balance			Interest		Average Yield/Rate		Average Balance			Interest		Average Yield/Rate
ASSETS
Loans ⁽¹⁾	$	4,589,621		$	211,635	6.16	%	$	4,241,676		$	179,545	5.66	%
Loans held for sale		3,721			53	1.90	%		1,620			69	5.69	%
Securities:
Taxable investment securities ⁽²⁾		785,422			21,126	3.59	%		843,846			23,216	3.68	%
Tax-exempt investment securities ⁽²⁾		1,237,884			37,754	4.07	%		1,587,656			48,880	4.12	%
Mortgage-backed and related securities ⁽²⁾		827,396			33,179	5.36	%		433,335			12,585	3.88	%
Total securities		2,850,702			92,059	4.31	%		2,864,837			84,681	3.95	%
Federal Home Loan Bank stock, at cost, and equity investments		40,565			1,488	4.90	%		25,071			889	4.74	%
Interest earning deposits		320,371			13,105	5.46	%		60,623			2,310	5.09	%
Federal funds sold		57,265			2,347	5.47	%		75,499			2,838	5.03	%
Total earning assets		7,862,245			320,687	5.45	%		7,269,326			270,332	4.97	%
Cash and due from banks		108,325							105,885
Accrued interest and other assets		440,340							406,160
Less: Allowance for loan losses		(43,096	)						(36,564	)
Total assets	$	8,367,814						$	7,744,807
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	602,450			4,368	0.97	%	$	645,415			4,201	0.87	%
Certificates of deposit		1,016,812			34,618	4.55	%		845,851			21,215	3.35	%
Interest bearing demand accounts		3,518,906			76,210	2.89	%		3,005,449			47,120	2.10	%
Total interest bearing deposits		5,138,168			115,196	2.99	%		4,496,715			72,536	2.16	%
Federal Home Loan Bank borrowings		610,893			18,893	4.13	%		281,260			5,347	2.54	%
Subordinated notes, net of unamortized debt issuance costs		92,631			2,829	4.08	%		96,753			2,955	4.08	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,271			3,526	7.81	%		60,266			3,309	7.34	%
Repurchase agreements		87,811			2,821	4.29	%		89,282			2,423	3.63	%
Other borrowings		139,306			6,962	6.68	%		362,684			13,690	5.05	%
Total interest bearing liabilities		6,129,080			150,227	3.27	%		5,386,960			100,260	2.49	%
Noninterest bearing deposits		1,342,945							1,506,431
Accrued expenses and other liabilities		99,758							91,784
Total liabilities		7,571,783							6,985,175
Shareholders’ equity		796,031							759,632
Total liabilities and shareholders’ equity	$	8,367,814						$	7,744,807
Net interest income (FTE)				$	170,460						$	170,072
Net interest margin (FTE)						2.90	%						3.13	%
Net interest spread (FTE)						2.18	%						2.48	%

^{(1) Interest on loans includes net fees on loans that are not material in amount.}
^{(2) For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.}

^{Note: As of September 30, 2024 and 2023, loans totaling $7.3 million and $4.3 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.}

The following tables set forth the reconciliation of return on average common equity to return on average tangible common equity, book value per share to tangible book value per share, net interest income to net interest income adjusted to a fully taxable-equivalent basis assuming a 21% marginal tax rate for interest earned on tax-exempt assets such as municipal loans and investment securities, along with the calculation of total revenue, adjusted noninterest expense, efficiency ratio (FTE), net interest margin (FTE) and net interest spread (FTE) for the applicable periods presented.


Southside Bancshares, Inc. Non-GAAP Reconciliation (Unaudited) (Dollars and shares in thousands, except per share data)

	Three Months Ended															Nine Months Ended
		2024									2023						2024			2023
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,			Sep 30,			Sep 30,
Reconciliation of return on average common equity to return on average tangible common equity:
Net income	$	20,524		$	24,673		$	21,511		$	17,316		$	18,449		$	66,708		$	69,376
After-tax amortization expense		220			243			266			292			322			728			1,048
Adjusted net income available to common shareholders	$	20,744		$	24,916		$	21,777		$	17,608		$	18,771		$	67,436		$	70,424

Average shareholders’ equity	$	806,230		$	796,698		$	785,054		$	737,675		$	770,194		$	796,031		$	759,632
Less: Average intangibles for the period		(203,288	)		(203,581	)		(203,910	)		(204,267	)		(204,658	)		(203,592	)		(205,096	)
Average tangible shareholders’ equity	$	602,942		$	593,117		$	581,144		$	533,408		$	565,536		$	592,439		$	554,536

Return on average tangible common equity		13.69	%		16.90	%		15.07	%		13.10	%		13.17	%		15.20	%		16.98	%

Reconciliation of book value per share to tangible book value per share:
Common equity at end of period	$	805,254		$	800,970		$	787,922		$	773,288		$	728,595		$	805,254		$	728,595
Less: Intangible assets at end of period		(203,119	)		(203,397	)		(203,704	)		(204,041	)		(204,411	)		(203,119	)		(204,411	)
Tangible common shareholders’ equity at end of period	$	602,135		$	597,573		$	584,218		$	569,247		$	524,184		$	602,135		$	524,184

Total assets at end of period	$	8,362,263		$	8,357,702		$	8,353,863		$	8,284,914		$	7,972,468		$	8,362,263		$	7,972,468
Less: Intangible assets at end of period		(203,119	)		(203,397	)		(203,704	)		(204,041	)		(204,411	)		(203,119	)		(204,411	)
Tangible assets at end of period	$	8,159,144		$	8,154,305		$	8,150,159		$	8,080,873		$	7,768,057		$	8,159,144		$	7,768,057

Period end tangible equity to period end tangible assets		7.38	%		7.33	%		7.17	%		7.04	%		6.75	%		7.38	%		6.75	%

Common shares outstanding end of period		30,308			30,261			30,284			30,249			30,338			30,308			30,338
Tangible book value per common share	$	19.87		$	19.75		$	19.29		$	18.82		$	17.28		$	19.87		$	17.28

Reconciliation of efficiency ratio to efficiency ratio (FTE), net interest margin to net interest margin (FTE) and net interest spread to net interest spread (FTE):
Net interest income (GAAP)	$	55,464		$	53,608		$	53,348		$	54,485		$	53,273		$	162,420		$	160,542
Tax-equivalent adjustments:
Loans		608			633			656			680			674			1,897			2,044
Tax-exempt investment securities		2,012			2,051			2,080			2,453			2,474			6,143			7,486
Net interest income (FTE) ⁽¹⁾		58,084			56,292			56,084			57,618			56,421			170,460			170,072
Noninterest income		8,171			11,557			9,724			2,501			10,836			29,452			33,333
Nonrecurring income ⁽²⁾		2,797			(576	)		18			8,376			(11	)		2,239			(1,006	)
Total revenue	$	69,052		$	67,273		$	65,826		$	68,495		$	67,246		$	202,151		$	202,399

Noninterest expense	$	36,332		$	35,765		$	36,881		$	35,183		$	35,553		$	108,978		$	105,395
Pre-tax amortization expense		(278	)		(307	)		(337	)		(370	)		(407	)		(922	)		(1,327	)
Nonrecurring expense ⁽³⁾		(219	)		2			17			22			17			(200	)		56
Adjusted noninterest expense	$	35,835		$	35,460		$	36,561		$	34,835		$	35,163		$	107,856		$	104,124

Efficiency ratio		53.94	%		54.90	%		57.95	%		53.30	%		54.86	%		55.56	%		53.99	%
Efficiency ratio (FTE) ⁽¹⁾		51.90	%		52.71	%		55.54	%		50.86	%		52.29	%		53.35	%		51.44	%

Average earning assets	$	7,823,026		$	7,881,919		$	7,882,337		$	7,633,820		$	7,418,157		$	7,862,245		$	7,269,326

Net interest margin		2.82	%		2.74	%		2.72	%		2.83	%		2.85	%		2.76	%		2.95	%
Net interest margin (FTE) ⁽¹⁾		2.95	%		2.87	%		2.86	%		2.99	%		3.02	%		2.90	%		3.13	%

Net interest spread		2.10	%		2.00	%		2.02	%		2.10	%		2.14	%		2.04	%		2.31	%
Net interest spread (FTE) ⁽¹⁾		2.23	%		2.13	%		2.16	%		2.26	%		2.31	%		2.18	%		2.48	%

^{(1)   These amounts are presented on a fully taxable-equivalent basis and are non-GAAP measures.}
^{(2)   These adjustments may include net gain or loss on sale of securities available for sale, net gain on sale of equity securities, BOLI income related to death benefits realized and other investment income or loss in the periods where applicable.}
^{(3)   These adjustments may include foreclosure expenses and branch closure expenses, in the periods where applicable.}

The MIL Network –

January 25, 2025

MIL-OSI USA: Attorney General James Announces Convictions of Orange County Transportation Company Owners for Stealing More Than $2.1 Million from Medicaid

Source: US State of New York

NEW YORK – New York Attorney General Letitia James today announced that the owners of DYD Universe, Inc. (DYD), a New York Medicaid-enrolled transportation company, have pleaded guilty for their roles in a scheme that stole more than $2.1 million from Medicaid and paid illegal kickbacks to Medicaid recipients. Damir Yuldashev, 64, his son Daler Yuldashev, 38, and Daler’s mother Nigina Iskandarova, 60, all of Monroe, New York, admitted that from April 2018 to March 2023, they stole more than $2.1 million from Medicaid by submitting fraudulent claims for services that they knowingly did not provide and toll charges that they knew were not incurred. The owners also admitted to paying illegal kickbacks to Medicaid recipients in exchange for providing DYD with their confidential Medicaid identification in order to carry out the scheme. As a result of the pleas, Damir Yuldashev will be sentenced to two to six years in prison and, along with Daler Yuldashev, must pay back over $2.1 million to Medicaid. Daler Yuldashev and Nigina Iskandarova will be sentenced to probation, and all three defendants will be permanently banned from being providers in all government-funded health programs.

“Stealing taxpayer funds that are meant to provide health care for low-income New Yorkers is unacceptable,” said Attorney General James. “Instead of providing vulnerable patients with the transportation services they needed to get them to their appointments, these individuals exploited Medicaid recipients to carry out their fraud. I will not tolerate schemes like these that damage our health care system, and my office will continue to go after fraudsters who steal from Medicaid.”

Medicaid recipients who lack access to transportation can use approved transportation providers to travel to and from covered medical services. These providers receive reimbursements from Medicaid for the rides they provide. From April 2018 to March 2023, Daler and Damir Yuldashev billed Medicaid for fictitious trips and added fake tolls to their trips to inflate their costs. DYD’s claims often added toll charges from $15 to as much as $50 when the trip did not actually incur any tolls at all. As a result of their scheme, DYD illegally overcharged Medicaid more than $2.1 million.

To carry out their scheme, the defendants paid Medicaid recipients to sign up with DYD and use fake addresses or drive themselves to their appointments, allowing DYD to either inflate or submit entirely false claims for transportation to Medicaid. These payments were illegal and undermined the businesses of other transportation providers in the Hudson Valley. Some passengers were paid thousands of dollars each to take rides that allowed DYD to collect tens of thousands of dollars in fees per passenger.

All three defendants pleaded guilty in Orange County Court in front of Judge Richard Guertin. Damir Yuldashev pleaded guilty to Grand Larceny in the First Degree, a class B felony. Daler Yuldashev pleaded guilty to Grand Larceny in the Third Degree, a class D felony. Nigina Iskandarova pleaded guilty to violating New York’s anti-kickback statute, Social Services Law section 366-d, a class E felony. DYD also pleaded guilty to Grand Larceny in the First Degree.

Damir Yuldashev faces a sentence of two to six years in state prison. Daler Yuldashev and Nigina Iskandarova, both of whom played lesser roles in the scheme, will be sentenced to probation, with Daler Yuldashev required to perform at least 1,200 hours of community service. As part of their sentence, Damir and Daler Yuldashev must pay $2,127,624 to Medicaid in restitution for their crimes. If they fail to pay restitution as ordered by the Court at sentencing, Damir and Daler Yuldashev will be required to serve additional time in state prison. As a result of their convictions, each defendant is also permanently excluded from being a provider in all government-funded health programs, including Medicaid and Medicare.

The Office of the Attorney General thanks the New York State Department of Health and the Office of the Medicaid Inspector General for their assistance in this investigation.

This matter was investigated by Detectives Peter Olsen and Frank Bluszcz with assistance from Supervising Detective Jeffrey Pitts. The financial analysis was conducted by Principal Auditor-Investigators John Annunziata, Lora Pomponio, and Melissa Stoebling, and Senior Auditor-Investigator Christopher Giacoia. Legal Support Analyst Kelvin Caraballo provided paralegal assistance.

The case was handled by Special Assistant Attorneys General Eva Urrutia and Robert Trudell, and the MFCU Pearl River Regional Office Regional Director Todd Pettigrew, with assistance from MFCU Chief of Criminal Investigations Thomas O’Hanlon and Deputy Chief of MFCU’s Civil Enforcement Division Konrad Payne. Alee Scott is MFCU’s Chief of the Civil Enforcement Division. MFCU is led by Director Amy Held and Assistant Deputy Attorney General Paul J. Mahoney. The Division of Criminal Justice is led by Chief Deputy Attorney General José Maldonado under the oversight of First Deputy Attorney General Jennifer Levy.

Reporting Medicaid Provider Fraud: MFCU defends the public by addressing Medicaid provider fraud and protecting nursing home residents from abuse and neglect. If an individual believes they have information about Medicaid provider fraud or about an incident of abuse or neglect of a nursing home resident, they can file a confidential complaint online or call the MFCU hotline at (800) 771-7755. If the situation is an emergency, please call 911.

New York MFCU’s total funding for federal fiscal year (FY) 2025 is $70,502,916. Of that total, 75 percent, or $52,877,188, is awarded under a grant from the U.S. Department of Health and Human Services. The remaining 25 percent, totaling $17,625,728 for FY 2025, is funded by New York State.

MIL OSI USA News –

January 25, 2025

MIL-OSI Security: Kingston — UPDATE: Southwest Nova RCMP Major Crime Unit now leading investigation into fatal shooting in Kingston

Source: Royal Canadian Mounted Police

The Southwest Nova RCMP Major Crime Unit has taken over an investigation into a shooting in Kingston, where a man has since died.

On March 6, 2023, at approximately 10:15 p.m., Kings District RCMP responded to multiple reports of shots fired in the Pleasant St. area in Kingston. RCMP officers located a 30-year-old man laying in a driveway on Pleasant St. He had suffered gunshot wounds and was transported to hospital by ambulance with life-threatening injuries. Four people were arrested later in the evening; however, all were later released without charge, pending further investigation.

On September 30, 2024, the victim passed away in hospital and on October 1, the Nova Scotia Medical Examiners Office ruled the death a homicide. The investigation was subsequently taken over by the Southwest Nova Major Crime Unit.

Over the last 20 months, the investigation was led by the Kings District RCMP General Investigation Section. Numerous search warrants were executed, evidence has been seized and witnesses have been interviewed. Persons of interest have been identified and investigators believe that the victim was targeted.

The Southwest Nova RCMP Major Crime Unit is being supported by the Nova Scotia Medical Examiner’s Office, RCMP Forensic Identification Services, RCMP Digital Forensic Services and the Kings District RCMP General Investigation Section. Anyone with information is asked to call 902-365-3120. Should you wish to remain anonymous, contact Nova Scotia Crime Stoppers toll-free at 1-800-222-TIPS (8477), submit a secure web tip at www.crimestoppers.ns.ca, or use the P3 Tips App.

News release from March 7, 2023: Kings District RCMP arrest four people in shooting

MIL Security OSI –

January 25, 2025

MIL-OSI: Usio to Host Third Quarter Fiscal 2024 Conference Call to Discuss Results and Provide Company Update on November 6, 2024

Source: GlobeNewswire (MIL-OSI)

SAN ANTONIO, Oct. 23, 2024 (GLOBE NEWSWIRE) — Usio, Inc. (Nasdaq:USIO), a leading FinTech that operates a full stack of integrated, cloud-based electronic payment and embedded financial solutions, today announced it will release third quarter fiscal 2024 financial results for the period ended September 30, 2024, after the market closes on Wednesday, November 6, 2024.

Usio’s management will host a conference call the same day, November 6, 2024, beginning at 4:30 p.m. Eastern time to review financial results and provide a business update. Following management’s formal remarks, there will be a question-and-answer session.

To listen to the conference call, interested parties within the U.S. should call 1-844-883-3890. International callers should call 1-412-317-9246. All callers should ask for the Usio conference call. The conference call will also be available through a live webcast, which can be accessed via the company’s website at https://usio.com/events-2/.

A replay of the call will be available approximately one hour after the end of the call through November 20, 2024. The replay can be accessed via the Company’s website or by dialing 1-877-344-7529 (U.S.) or 1-412-317-0088 (international). The replay conference playback code is: 7062327.

About Usio, Inc.

Usio, Inc. (Nasdaq: USIO), a leading, cloud-based, integrated FinTech electronic payment solutions provider, offers a wide range of payment solutions to merchants, billers, banks, service bureaus, integrated software vendors and card issuers. The Company operates credit, debit/prepaid, and ACH payment processing platforms to deliver convenient, world-class payment solutions and services clients through its unique payment facilitation platform as a service. The company, through its Usio Output Solutions division offers services relating to electronic bill presentment, document composition, document decomposition and printing and mailing services. The strength of the Company lies in its ability to provide tailored solutions for card issuance, payment acceptance, and bill payments as well as its unique technology in the card issuing sector. Usio is headquartered in San Antonio, Texas, and has offices in Austin, Texas.

Websites: www.usio.com, www.payfacinabox.com, www.akimbocard.com and www.usiooutput.com. Find us on Facebook® and Twitter.

FORWARD-LOOKING STATEMENTS DISCLAIMER
Except for the historical information contained herein, the matters discussed in this release include forward-looking statements which are covered by safe harbors. Those statements include, but may not be limited to, all statements regarding management’s intent, belief, and expectations, such as statements concerning our future and our operating and growth strategy. These forward-looking statements are identified by the use of words such as “believe,” “intend,” “look forward,” “anticipate,” “schedule,” and “expect” among others. Forward-looking statements in this press release are subject to certain risks and uncertainties inherent in the Company’s business that could cause actual results to vary, including such risks related to an economic downturn as a result of the COVID-19 pandemic, the realization of opportunities from the IMS acquisition, the management of the Company’s growth, the loss of key resellers, the relationships with the Automated Clearinghouse network, bank sponsors, third-party card processing providers and merchants, the security of our software, hardware and information, the volatility of the stock price, the need to obtain additional financing, risks associated with new tax legislation, and compliance with complex federal, state and local laws and regulations, and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission including its annual report on Form 10-K for the fiscal year ended December 31, 2023. One or more of these factors have affected, and in the future, could affect the Company’s businesses and financial results in the future and could cause actual results to differ materially from plans and projections. The Company believes that the assumptions underlying the forward-looking statements included in this release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the objectives and plans will be achieved. All forward-looking statements made in this release are based on information presently available to management. The Company assumes no obligation to update any forward-looking statements, except as required by law.

Contact

Paul Manley
Senior Vice President, Investor Relations
paul.manley@usio.com
612-834-1804

The MIL Network –

January 25, 2025

MIL-OSI: Sarmayacar latest initiative Climaventures Fund Secures $15 Million Anchor Commitment from Green Climate Fund to Accelerate Climate-Tech Innovation in Pakistan

Source: GlobeNewswire (MIL-OSI)

Lahore, Pakistan, Oct. 23, 2024 (GLOBE NEWSWIRE) — Venture capital firm Sarmayacar is today announcing it has successfully secured $15m for its new Climaventures Fund from the Green Climate Fund (GCF), marking a significant milestone in the growth of Pakistan’s climate-tech ecosystem. This GCF funding will play an anchoring role in the new fund that Sarmayacar is targeting to have a hard cap of $40 million. An additional $10 million has been allocated to an affiliated venture accelerator program run by the National Rural Support Programme (NRSP) to support even earlier-stage climate-tech startups with a similar thesis. The final approval from the GCF Board, following its meeting in Songdo, South Korea, highlights the growing global interest in addressing Pakistan’s critical climate challenges with scalable, impactful solutions.

With this capital, the Sarmayacar Climaventures Fund will focus on empowering local startups in critical sectors such as renewable energy, electric mobility and sustainable agriculture. These ventures will receive both financial backing and strategic guidance to help accelerate their growth and environmental impact. By strengthening Pakistan’s climate-tech landscape, Sarmayacar aims to position the country as a key player in regional sustainability efforts while attracting international investment into climate-focused ventures.

Sarmayacar CEO and founder Rabeel Warraich with General Partner Bernhard Klemen

Sarmayacar, founded in 2018 as Pakistan’s first institutional venture capital firm, has been instrumental in advancing the country’s startup ecosystem. Its initial $25 million tech-focused fund, anchored by the International Finance Corporation (IFC), catalysed over $800 million in venture capital investments into Pakistani startups, and supported high-growth ventures across sectors such as fintech, e-commerce, healthtech, and logistics. Led by CEO and Founder, Rabeel Warraich and General Partner, Dr. Bernhard Klemen, the firm is now leveraging its experience and market-knowledge to address Pakistan’s climate challenges through its Climaventures Fund.

“Addressing Pakistan’s climate emergency requires an approach that fosters entrepreneurial innovation,” said Rabeel Warraich, CEO and Founder of Sarmayacar. “Our new climate fund – a first for Pakistan – will back founders building localised, scalable climate solutions for the country. We hope to spawn an entire climate venture ecosystem by leveraging our experience and connectivity in the country and beyond.”

Sarmayacar’s latest initiative taps into the global momentum behind climate-tech investment. According to the Climate Policy Initiative’s Global Landscape of Climate Finance 2023 report, global climate finance averaged $1.27 trillion annually in 2021-2022, nearly doubling from previous years. This surge underscores the urgent need to scale climate solutions globally. In Pakistan, where climate challenges are particularly acute, the Sarmayacar Climaventures Fund aims to back startups that contribute to the country’s broader environmental goals, driving both impact and sustainable growth. Despite contributing only 0.9% to global greenhouse gas emissions, Pakistan ranks as the 8th most vulnerable country to climate change, according to the Global Climate Risk Index.

Dr. Bernhard Klemen, General Partner at Sarmayacar added, “Since launching Pakistan’s first VC fund in 2018, Sarmayacar has built a track record of identifying and supporting market-transforming startups in the country. With this new climate-themed fund, we plan to replicate the playbook of our first fund and invest in commercially attractive opportunities that can also create significant impact. There is already an actionable pipeline which we hope to capitalise on with the support of reputable and like-minded partners like the GCF.”

The Green Climate Fund’s endorsement underscores the critical role that venture capital must play in addressing climate change, particularly in emerging markets. The fund will also help mobilise additional private capital, de-risking early-stage climate ventures and attracting further investment from global institutions.

Looking ahead, Sarmayacar aims to position Pakistan as a leader in climate-tech innovation, driving scalable solutions to tackle pressing climate challenges. With the Sarmayacar Climaventures Fund, the firm is committed to supporting the next generation of climate-tech entrepreneurs, ensuring they have the resources and expertise to succeed both locally and globally. By continuing to attract capital and fostering impactful ventures, Sarmayacar is helping to shape a more sustainable future for Pakistan and beyond.

Ends

Notes to the editor
Media images can be found here.

About Sarmayacar
Sarmayacar is Pakistan’s first institutional venture capital firm, backing early-stage tech startups across a variety of sectors. Since its inception, Sarmayacar has supported high-growth ventures with a focus on driving innovation and sustainable growth in Pakistan’s startup ecosystem.
For more information, please visit www.sarmayacar.com

About GCF
The Green Climate Fund is a global initiative established under the United Nations Framework Convention on Climate Change (UNFCCC) to help developing countries reduce their greenhouse gas emissions and adapt to the impacts of climate change. GCF invests in low-emission, climate-resilient projects across various sectors, mobilising public and private sector resources to support climate action. For more information, please visit www.greenclimate.fund

The MIL Network –

January 25, 2025

MIL-OSI Security: Red Deer — Red Deer RCMP and Calgary Police Service joint investigation leads to arrest

Source: Royal Canadian Mounted Police

Between the period of November 2022 and February 2023, Red Deer RCMP General Investigations Section (GIS) received multiple reports of indecent phone calls being made to real estate agents and others in similar occupations. These calls were made by an unknown male who made threatening and sexual comments. At the same time, the Calgary Police Service Cyber/Forensics Unit began investigating similar offences reported within the city of Calgary.

As a result of a joint investigation with Calgary Police Service, Red Deer RCMP GIS have charged one individual in connection to these phone calls.

A 29-year-old resident of Edmonton, has been charged with the following offences:

Harassing communications x 22
Indecent communications
Uttering threats x 12

The individual was served a summons and is schedule to appear on Oct. 29, 2024, at the Alberta Court of Justice in Red Deer.

“This arrest underscores our unwavering commitment to the safety and well-being of our communities. No one should have to endure threats, harassment or malicious phone calls while carrying out their work. This kind of behaviour is unacceptable, and we will continue to take action to ensure that everyone can perform their duties in a safe and secure environment.” said Cst. Amanda Burke of Red Deer RCMP GIS.

“In cybercrime investigations, we commonly see individuals using technology to victimize individuals from multiple different jurisdictions. Working with other law enforcement agencies is key in addressing these crimes, and in this case, investigators were able to work together with the RCMP to collect important digital evidence, which ultimately led to these charges.” said Sgt. Ryan Nolan of the Calgary Police Service Cybercrime Team.

If you have information regarding illegal activity within the city of Red Deer please contact Red Deer RCMP at 403-406-2200. If you wish to remain anonymous, you can contact Crime Stoppers at 1-800-222-8477 (TIPS), online at www.P3Tips.com or by using the “P3 Tips” app available through the Apple App or Google Play Store. To report crime online, or for access to RCMP news and information, download the Alberta RCMP app through Apple or Google Play.

MIL Security OSI –

January 25, 2025

MIL-OSI: Surfshark introduces a free data leak-checking tool during Cybersecurity Awareness Month

Source: GlobeNewswire (MIL-OSI)

Surfshark is launching a new, free online Data Leak Checker, offering users an easy way to monitor the safety of their personal information in recognition of Cybersecurity Awareness Month this October. Powered by Surfshark Alert, this tool allows users to check if their personal data has been compromised in a data leak by simply entering their email address. It is designed to ensure that the entered email is not used for any marketing purposes.

The new Data Leak Checker features comprehensive scanning capabilities, allowing users to enter their email addresses to examine multiple sources for potential database and malware-related leaks. This tool continuously monitors the web to proactively ensure the security of users’ personal information across various platforms and detects instances where their data might have been compromised.

Upon completion of the scan, users receive a report divided into two key areas: database breaches and malware attacks. The database breaches section identifies large breached domains and compromised databases that may have included the user’s information. Meanwhile, the malware attacks section highlights potential vulnerabilities of the user’s email address due to malware activities on their device.

The database breach report shows the largest breached domains and compromised databases that user information was part of. For security reasons, some data may be hidden. However, complete and detailed information about the leak will be visible in Surfshark Alert.

“Globally, approximately 18 billion user accounts have been leaked over the last 20 years, according to Surfshark’s Global Data Breach Statistics. As we launch the Data Leak Checker, we stress the importance of knowing exactly where and how your data may have been compromised. Understanding breach details can empower individuals to take informed actions to protect their personal information and prevent further damage. This tool is simple and accessible for everyone, regardless of their level of technical expertise,” said Kornelija Vanage, Alert Product Owner at Surfshark.

If users discover that their data has been leaked online, it’s crucial to act quickly to mitigate potential damage. First, they should change the passwords for all affected accounts, ensuring each new password is strong and unique. They might consider using a password manager to help generate and store passwords securely. Additionally, enabling two-factor authentication (2FA) on all accounts that offer it can add an extra layer of security.

Users should then monitor their accounts for suspicious activity, such as unauthorized transactions or login attempts, and report any anomalies to the respective service providers. It’s important for users to be vigilant about phishing attempts, as attackers may use leaked information to craft convincing scams. Investing in tools that monitor data safety is also advised.

NOTES TO EDITORS Surfshark is a cybersecurity company focused on developing humanized privacy and security solutions. The Surfshark One suite includes one of the very few VPNs audited by independent security experts, an officially certified antivirus, a private search tool, and a data leak alert system. Surfshark ranks 47th in the Financial Times 1000: Europe’s Fastest Growing Companies list and is recognized as the Tech Advisor’s Editor’s Choice for 2024. For a closer look at Surfshark in 2023, visit our annual wrap-up.

The MIL Network –

January 25, 2025

MIL-OSI Economics: Change happens – and why central banks care

Source: Bank for International Settlements

It is a great pleasure for me to join you today. Many thanks to the staff at the Federal Reserve Bank of Philadelphia for the invitation. ¹

BIS Innovation Hub

Today I want to talk about change and central banks. But before I begin, allow me to briefly introduce the BIS Innovation Hub. The Bank for International Settlements supports central banks in their pursuit of monetary and financial stability by fostering international cooperation. The Innovation Hub was created five years ago and can be described as a joint venture between the BIS and the central banks who host our seven centres. The Innovation Hub has almost 100 people working together across the world. Our mandate is to follow and explore new technology and, when suitable, develop public goods. And to do that we research technologies and challenges that matter to central banks by building proofs of concept or prototypes. In more than 30 projects to date, we have collaborated with central banks and other partners to demonstrate the art of the possible. Currently, tokenisation and artificial intelligence are important areas for us, where we have multiple projects under way. Another crucial area is ensuring the integrity and safety in the financial system by exploring possible improvements to services like payments. Again, we aim to demonstrate the art of the possible. Adopting some of the technologies or implementing the outcomes of our projects is not up to us. Ultimately, countries’ authorities decide what becomes reality in their jurisdictions.

So why am I here? Well, when I was asked to join you here at the Philadelphia Fed, I immediately said yes. Maybe too fast, because the organisers kept asking me what I wanted to announce. I had to disappoint them. This is not a public service announcement. I am not trying to sell you anything. What I want to do in the next 10 minutes is explain why central banks care about change and innovation – and why that matters to us all.

Technology and change

Let me start with innovation and change, for which I will look to Adam Smith. Who better? The Wealth of Nations was published about 250 years ago. And Adam Smith uses the example of moving goods by road or by ship. Canal companies were the big techs of the day. They could move things faster and cheaper, and only the most niche products chose the horse and cart. Yet 100 years later, the transport network and – by extension the industrial capacity of Britain – was totally unrecognisable.

What changed? In that time, railways happened. Or more accurately, innovation changed how railways were used. There were railways when Adam Smith was writing. But they were small, private and horse-drawn. He did not even mention them as a contender to roads and ships. But 50 years of innovation in steam engines – to make them smaller, faster and more efficient – would make railways far superior to canals. Following some smaller private railways, the first public railway – from Liverpool to Manchester – opened in 1830. At that time, there were about 125 miles of railways in England. Over the next 40 years, this grew to 13,000 miles. Canals were dead in the water.

Was the change smooth, clearly predictable and always rational and obvious? No. Was it just the technology advantages that catalysed the change? No. It was many things. Financial innovations meant that investments in railways were easier. Yet this also created a financial bubble. Early safety regulations reassured a sceptical public – but not before some terrible accidents. Competition drove further innovation but resulted in a grossly inefficient network. When agreement on a standardised width of railway gauge was eventually brokered, network effects could be enhanced. The standard adopted was George Stephenson’s 4 feet, 8 1⁄2 inches, which spread across England and internationally. I have been told the United States uses it too.

But why am I telling you a story about something that happened in England hundreds of years ago? Well first, I enjoy history. But second, because it is a great example of how technologies change. Do you see any parallels with today? Railways did not just “win” overnight. They were initially less efficient than canals. Canal owners saw the threat and organised resistance. Yet railways improved faster than canals could – at least once steam engines became technologically and commercially viable. Investment played a significant role in this. So, at times, did safety regulations and politics. There were battles about which standards should be used. And importantly, change driven by technology and innovation is not an elegant dance. It is a race and a tussle and sometimes a mess.

To really make the point, allow me one more historical example closer to home. The Federal Reserve Bank of New York recently published an article about when securities markets scrapped paper in the 1960s and ’70s. At that time, IBM and Honeywell were in a race to develop more powerful computers. And stockbrokers were racing one another to use them for competitive advantage. The winners of that race went on to dominate securities markets for decades because they bought out the failing houses that could not operate their computers as effectively. And the digital infrastructures they created, based on the paper processes before them, are the ones we use now. And they are the same infrastructures now experimenting with tokenisation and are maybe on the cusp of another change.

Understanding change

How do industries and society manage these huge changes? Almost all industries have regulations of various kinds to ensure safety, competition and transparency – standards with a large or small “s” that are adhered to. Yet finance has something that planes, trains and automobiles do not. Finance has central banks. And why do they care about innovation and change?

First, for monetary analysis. For central banks to set interest rates to stabilise prices they have to understand the economy. The data collection and analysis of credit, demand, output, supply, costs, prices and labour markets all roll up to into determining monetary policy. And innovation can have a huge impact. AI is an obvious example. But digitalisation more broadly has had and will continue to have a fundamental impact on the global economy. For effective policymaking, central banks need to understand where things are heading. So they must follow and explore innovation and its implications.

Second, central banks care about innovation because of their oversight role. For prudential supervision of banks and market infrastructure, it is necessary to understand how technology is being used and the effect of any large changes. Financial stability analyses are increasingly concerned with how financial and operational risks interact. Technology is a significant variable in that analysis.

Third, central banks do not just think; within their mandate, they act. To deliver on their monetary policy objectives, they decide where interest rates need to be. And then they act through their market operations to make that happen. Central banks want safe settlement and so they offer it – by operating payment systems to safely and reliably move substantial amounts of money every day. And they provide banknotes.

It is because central banks act that they are really part of any change – not on the sidelines or just observing, but really involved. As part of the financial ecosystem, central banks offer settlement in central bank money, which is the safest settlement asset possible and a pillar of a stable and robust financial system. And this is what makes them so different from a regulator in any other space. To put it very simply, if central banks think technology is changing, they need to consider and adapt as well. And they need to change operations and systems that require the highest possible resilience from cyber threats and operational risk. That puts a very different slant on any decision and perhaps adds some caution. It might also add some practicality. And importantly for an economist, it gives central banks skin in the technology game – and the right incentives.

Incentives matter. Trust in money is grounded on two things. The first is the central bank’s monetary policy framework and operational independence. The second is the competence to carry out its role. And that competence increasingly means the ability to use technology better. To do that we experiment. We collaborate. We get involved. But our role is not to win or to profit or to tell the private sector how to run their business. The private sector will always know what customers need and want better than the public sector. But it is also important to have the public sector involved, with public policy objectives such as stability, safety, interoperability and compliance.

BIS and international cooperation

To close I want to talk about how these themes of technology, change and incentives play out internationally. Central banks are different from one another. But I have spoken for almost 10 minutes about their interests and incentives as a homogeneous group. And if I can do that, they must be similar enough to cooperate.

The BIS’s job is to help and guide central bank cooperation. Given what I have said, that should be easy. But collaboration is not always simple. Yet, with the right governance and communications, building knowledge by running projects together could reap great rewards for central banks.

Our projects are “just” a first look at what is possible. Projects are not a commitment. Some of the questions like whether there is a need for central bank digital currency or digital identity can only be answered politically. The central bank is one of many advisers on a decision that should be made with other players in our societies. That is right and that is normal. Yet the fact remains, for good policymaking on any subject, you need understanding. And with technology, you need to experiment and collaborate to obtain that understanding.

So, I thank you again for the invitation and attention. I will close with a quote from Adam Smith: “I have never known much good done, by those who affected to trade for the public good.” Eerily, he foresaw a version of what US president Ronald Reagan famously highlighted as the nine most terrifying words: “I’m from the government and I’m here to help.” The BIS Innovation Hub has a mandate to explore technology and to develop public goods. But others ultimately decide what could be changed. Our job is to learn and advise them so that when change happens, it can happen for the better.

Thank you for listening.

MIL OSI Economics –

January 25, 2025

MIL-OSI Africa: IMF isn’t doing enough to support Africa: billions could be made available through special drawing rights

Source: The Conversation – Africa – By Kevin P. Gallagher, Professor of Global Development Policy and Director, Global Development Policy Center, Boston University

At the 2021 UN Climate Summit, Barbados prime minister Mia Mottley called for more and better use of special drawing rights (SDRs), the International Monetary Fund’s reserve asset.

The special drawing right is an international reserve asset created by the IMF. It is not a currency – its value is based on a basket of five currencies, the biggest chunk of which is the US dollar, followed by the euro. It is a potential claim on the freely usable currencies of IMF members. Special drawing rights can provide a country with liquidity.

Countries can use their special drawing rights to pay back IMF loans, or they can exchange them for foreign currencies.

As Mottley is the newest president of the Climate Vulnerable Forum and Vulnerable Group of 20 (V20) finance ministers, which represents 68 climate-vulnerable countries that are among those with the most dire liquidity needs, including 32 African countries, her call would be directly beneficial to African countries.

In August 2021, as the shock from the COVID-19 pandemic battered their economies, African countries received a lifeline of US$33 billion from special drawing rights. This amounts to more than all the climate finance Africa receives each year, and more than half of all annual official development assistance to Africa.

This US$33 billion did not add to African countries’ debt burden, it did not come with any conditions, and it did not cost donors a single cent to provide.

IMF members can vote to create new issuances of special drawing rights. They are then distributed to countries in proportion to their quotas in the IMF. Quotas are denominated in special drawing rights, the IMF’s unit of account.

Quotas are the building blocks of the IMF’s financial and governance structure. An individual member country’s quota broadly reflects its relative position in the world economy. Thus, by design, the poorest and most vulnerable countries receive the least when it comes to quotas and voting shares.

Special drawing rights cannot solve all of Africa’s economic challenges. And their highly technical nature means they are not always well understood. But at a time when African countries are facing chronic liquidity challenges – most countries in the region are spending more on debt service payments than they are on health, education, or climate change – our new research shows that special drawing rights can play an important role in establishing financial stability and enabling investments for development.

Financial stability includes macroeconomic stability (such as low inflation, healthy balance of payments, sufficient foreign reserves), a strong financial system and resilience to shocks.

African leaders are approaching a critical year-long opportunity: in November, the first Group of 20 (G20) summit will convene (with the African Union in attendance as a member for the first time). Then in December South Africa assumes the G20 presidency.

As African leaders advocate for reforms to the international financial architecture, maximising the potential of special drawing rights should be a central component of their agenda.

The problem

African countries’ finances are facing tough times. External debt in sub-Saharan Africa has tripled since 2008. The average government is now spending 12% of its revenue on external debt service. The COVID-19 pandemic, Russia’s war in Ukraine, and rises in interest rates and the prices of commodities, like food and fertiliser, have all contributed to this trend.

Debt restructuring mechanisms have also proved inadequate. Countries like Zambia and Ghana got stuck in lengthy restructurings. Weak institutional capacity and poor governance also impede efficient use of public resources.

At the same time, African economies need to increase investment to advance development, support a young and growing population, develop climate resilience and take advantage of the opportunity presented by the energy transition.

To meet the resources for a just energy transition and the attainment of the UN 2030 Sustainable Development Goals, investment in climate and development will have to increase from around 24% of GDP (the average for Africa in 2022) to 37%.

Special drawing rights have proved to be an important tool in addressing these challenges. Research by the IMF and others shows that African countries significantly benefited from the special drawing rights they received in 2021 to stabilise their economies. And this happened without worsening debt burdens or costing advanced economies any money, particularly as they cut development aid.

However, advanced economies exercise significant control over the availability of special drawing rights. The IMF’s quota system determines both voting power and their distribution. Advanced economies control most of the IMF’s quotas.

The advanced economies made the right decision in 2021 and in 2009 to issue new special drawing rights and the time has come again.

The solution

African and other global south leaders need to make a strong case for another issuance of special drawing rights at the IMF and World Bank meetings in Washington.

In addition to a new issuance of special drawing rights, advanced economies still need to be pressured to re-channel the hundreds of billions of special drawing rights sitting idle on their balance sheets into productive purposes.

The 2021 allocation of special drawing rights amounted to US$650 billion in total. But only US$33 billion went to African countries due to the IMF’s unequal quota distribution. Meanwhile advanced economies with powerful currencies and no need for special drawing rights received the lion’s share.

The African Development Bank has spearheaded one such proposal alongside the Inter-American Development Bank. Under this plan, countries with unused special drawing rights could re-channel them to the African Development Bank as hybrid capital, allowing the bank to lend around $4 for each $1 of special drawing rights it receives.

The IMF approved the use of special drawing rights as hybrid capital for multilateral development banks in May. But it set an excessively low limit of 15 billion special drawing rights across all multilateral development banks.

Even so, advanced economies have been slow to re-channel special drawing rights. The close to $100 billion that have been re-channelled – mostly to IMF trust funds – is meaningful.

But it still falls short of what should have been re-channelled.

In the long term, IMF governance reforms are needed to avoid a repeat of the inefficient distribution of special drawing rights.

As African countries rightly push to change shortcomings of the international financial architecture, new special drawing rights issuances should be at the centre of such a strategy. The IMF’s 2021 special drawing rights issuance showed the tool’s scale and importance. And special drawing rights re-channelling has had positive effects in easing debt burdens and freeing up financing to recover from the COVID-19 pandemic.

With 2030 approaching and the window shrinking for climate action, global leaders should be using all the tools at their disposal, including special drawing rights, to build a more resilient future.

– IMF isn’t doing enough to support Africa: billions could be made available through special drawing rights
– https://theconversation.com/imf-isnt-doing-enough-to-support-africa-billions-could-be-made-available-through-special-drawing-rights-241428

MIL OSI Africa –

January 25, 2025

MIL-OSI Global: IMF isn’t doing enough to support Africa: billions could be made available through special drawing rights