South Plains Financial, Inc. · NASDAQ:SPFI
South Plains Financial — Q4 2024 Earnings Presentation
23 slides from South Plains Financial's earnings presentation, Jan 24, 2025
Slide 1: Fourth Quarter and Year-End 2024 Earnings Presentation
South Plains Financial Fourth Quarter and Year-End 2024 Earnings Presentation January 24, 2025
Slide 2: Safe Harbor Statement and Other Disclosures
Safe Harbor Statement and Other Disclosures FORWARD-LOOKING STATEMENTS This presentation contains, and future oral and written statements of South Plains Financial, Inc. (“South Plains”, “SPFI”, or the “Company”) and City Bank (“City Bank” or the “Bank”) may contain, statements about future events t
Slide 3: Today’s Speakers
Today’s Speakers ▪ Elected to the board of directors of First State Bank of Morton, Texas, in 1972 and employed by it in 1979 Curtis C. Griffith ▪ Elected Chairman of the First State Bank of Morton board Chairman & Chief Executive in 1984 Officer ▪ Chairman of the Board of City Bank and the Company
Slide 4: Fourth Quarter and Full Year 2024 Highlights
Fourth Quarter and Full Year 2024 Highlights Fourth Quarter 2024 Net Income Net Interest Margin (1) Loans Held for Investment Return on Average Assets $16.5 M (“NIM”) 3.75% (“HFI”) $3.06 B (“ROAA”) 1.53% EPS - Diluted Total Deposits Average Yield on Loans Efficiency Ratio $0.96 $3.62 B 6.69% 57.50%
Slide 5: Granular Deposit Base & Ample Liquidity
Granular Deposit Base & Ample Liquidity Total Deposit Base Total Borrowing Capacity Breakdown $1.77 Billion Rural Commercial: Markets: FHLB: 46% 79% $1,115 FRB Discount Retail: Window: 46% $654 Metro Markets: 21% Public Funds: 8% Dollars in millions ✓ Average deposit account size is approximately $3
Slide 6: Loan Portfolio
Loan Portfolio Total Loans HFI 4Q'24 Highlights $ in Millions ✓ Loans HFI increased $17.7 million from Q3’24, $3,094 primarily as a result of organic loan growth $3,037 $3,055 experienced in commercial owner-occupied real $3,014 $3,012 estate loans ✓ As of December 31, 2024, loans held for 6.68% 6.6
Slide 7: Attractive Markets Poised for Organic Growth
Attractive Markets Poised for Organic Growth ✓ Largest MSA in Texas and fourth largest in the ✓ Population of 865,000+ nation ✓ Adjacent in proximity to Juarez, Mexico’s ✓ Steadily expanding population that accounts for growing industrial center and an estimated over 26% of the state’s population po
Slide 8: Major Metropolitan Market Loan Growth
Major Metropolitan Market Loan Growth (1) Total Metropolitan Market Loans 4Q'24 Highlights $ in Millions ✓ Loans HFI in our major metropolitan markets(1) increased by $9 million, to $1.06 billion during $1,061 $1,069 $1,049 $1,058 4Q’24, as strong organic loan growth outpaced $1,039 early prepayment
Slide 9: Loan HFI Portfolio
Loan HFI Portfolio Loan Mix Fixed vs. Variable Rate Fixed - Matures over 1 year Other Commercial 23% Fixed - Matures 12mo or less Consumer, 2% C&D, 4% Residential C&D, 7% 12% Variable - Immediately Repricable Auto, 8% 42% Variable - Mature or Reprice 12mo 17% or less Variable - Mature or Reprice ove
Slide 10: Indirect Auto Overview
Indirect Auto Overview Indirect Auto Credit Breakdown Indirect Auto Highlights 0.2% 1.0% ✓ Indirect auto loans totaled $236.0 million at December 31, 2024, compared to $235.1 million at September 30, 2024 7.6% ✓ Management is carefully managing the portfolio with balances beginning to stabilize 28.5
Slide 11: Noninterest Income Overview
Noninterest Income Overview Noninterest Income 4Q'24 Highlights $ in Millions ✓ $14.0 Noninterest income was $13.3 million for 4Q'24, $13.3 $12.7 compared to $10.6 million for 3Q'24; primarily due to: $12.0 $11.4 $10.6 o An increase of $3.1 million in mortgage $10.0 banking revenues, mainly from an
Slide 12: Diversified Revenue Stream
Diversified Revenue Stream Twelve Months Ended December 31, 2024 Total Revenues Noninterest Income $195.2 million $48.1 million Investment Trust, 6% Services, 4% Other, 16% Service Charges on Net Interest Deposits, 17% Income, 75% Mortgage, 30% Noninterest Income, 25% Interchange Fees, 28% 12 Source
Slide 13: Net Interest Income and Margin
Net Interest Income and Margin (1) Net Interest Income & Margin 4Q'24 Highlights $ in Millions $38.5 ✓ Net interest income (“NII”) of $38.5 million, $37.3 $35.2 $35.4 $35.9 compared to $37.3 million in 3Q’24 ✓ 4Q'24 NIM increased 10 bps to 3.75% as compared to 3.65% in 3Q’24, primarily due to: o 1 b
Slide 14: Deposit Portfolio
Deposit Portfolio Total Deposits 4Q'24 Highlights $ in Millions ✓ Total deposits of $3.62 billion at 4Q'24, a $3,719 decrease of $94.8 million from 3Q’24 given liquidity management to maximize margins and profitability and other seasonal declines $3,639 $3,626 $3,625 $3,621 ✓ Cost of interest-bearin
Slide 15: Credit Quality
Credit Quality Credit Quality Ratios 4Q'24 Highlights ✓ Provision for credit losses of $1.2 million in 0.76% 0.81% 0.79% 4Q’24, compared to $495 thousand in 0.57% 0.59% 0.58% 3Q'24; 4Q’24 provision was largely attributable to net charge-off activity and by increased loan balances 0.17% ✓ Nonperformi
Slide 16: Non-Owner Occupied CRE Portfolio
Non-Owner Occupied CRE Portfolio NOO CRE(1) Sector Breakdown Details Residential Other C&D, 19% ✓ NOO CRE was 40.0% of total LHI, materially Construction, 8% unchanged from September 30, 2024 at 40.3% Multi-family, 26% ✓ NOO CRE portfolio is made up of $881.2 million of income producing loans and $3
Slide 17: Investment Securities
Investment Securities Securities & Cash 4Q'24 Highlights $ in Millions ✓ Investment securities totaled $577.2 million, $471 a $29.6 million decrease from 3Q’24. $330 $372 $359 $298 ✓ All municipal bonds are in Texas; fair value hedges of $124 million $623 $600 $591 $607 $577 ✓ All MBS, CMO, and Asse
Slide 18: Noninterest Expense and Efficiency
Noninterest Expense and Efficiency Noninterest Expense 4Q'24 Highlights $34.0 $ in Millions 150.0% $33.1 $32.6 ✓ Noninterest expense for 4Q’24 decreased $32.0 $31.9 130.0% $3.2 million, largely the result of a decline of $1.4 million in personnel expenses: $30.6 110.0% $30.0 $29.9 o Decreased health
Slide 19: Balance Sheet Growth and Development
Balance Sheet Growth and Development (1) Balance Sheet Highlights Tangible Book Value Per Share $ in Millions $4,232 $25.75 $4,205 $25.40 $3,626 $3,621 $3,014 $3,055 $24.15 $23.56 $23.47 $407 $439 Total Assets Total Loans Total Total 4Q23 1Q24 2Q24 3Q24 4Q24 HFI Deposits Stockholders' Equity 31-Dec-
Slide 20: Strong Capital Base
Strong Capital Base Tangible Common Equity to Tangible Assets Ratio(1) Common Equity Tier 1 Ratio 13.53% 13.25% 9.92% 12.67% 12.61% 9.77% 12.41% 9.22% 9.44% 9.21% 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q24 Tier 1 Capital to Average Assets Ratio Total Capital to Risk-Weighted Assets Ratio 12.0
Slide 21: SPFI’s Core Purpose and Values Align
SPFI’s Core Purpose and Values Align Centered on Relationship-Based Business THE POWER OF RELATIONSHIPS At SPFI, we build lifelong, trusted relationships so you know you always have someone in your corner that understands you, cares about you, and stands ready to help. Our Core Purpose is: To use th
Slide 22: Appendix
South Plains Financial, Inc. Appendix
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures For the quarter ended December 31, September 30, June 30, March 31, December 31, 2024 2024 2024 2024 2023 Pre-tax, pre-provision income Net income $ 16,497 $ 11,212 $ 11,134 $ 10,874 $ 10,324 Income tax expense 4,222 3,094 3,116 3,143 2,787 Provision for credit losses 1,2
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