South Plains Financial, Inc. · NASDAQ:SPFI
South Plains Financial — Q2 2021 Earnings Presentation
20 slides from South Plains Financial's earnings presentation, Jul 27, 2021
Slide 1: South Plains Financial Earnings Presentation Second Quarter, 2021
South Plains Financial Earnings Presentation Second Quarter, 2021 1
Slide 2: Safe Harbor Statement and Other Disclosures
Safe Harbor Statement and Other Disclosures FORWARD-LOOKING STATEMENTSThis presentation contains, and future oral and written statements of South Plains Financial, Inc. (“South Plains” or the “Company”) and City Bank (“City Bank” or the “Bank”) may contain, statements about future events that consti
Slide 3: Today's Speakers
Today’s Speakers 3 Curtis C. GriffithChairman & Chief Executive Officer Elected to the board of directors of First State Bank of Morton, Texas, in 1972 and employed by it in 1979Elected Chairman of the First State Bank of Morton board in 1984Chairman of the Board of City Bank and the Company since 1
Slide 4: Second Quarter 2021 Highlights
$3.7 Billion in Total Assets as of June 30, 2021 Parent company of City Bank, a leading Texas-based community bank headquartered in Lubbock, TX Second Quarter 2021 Highlights 4 One of the largest independent banks headquartered in West Texas New Mexico Texas Dallas Bryan /College Station Houston Mid
Slide 5: Loan Portfolio 2Q'21 Highlights
Loan Portfolio 5 2Q’21 Highlights Total loans increased by $60.8 million compared to 1Q’21, primarily due to:$120.1 million in organic net growth; Partially offset by a net decrease of $59.3 million in Paycheck Protection Program (“PPP”) loansStrategic initiative underway to grow SPFI’s banking team
Slide 6: Loan Portfolio Composition
Loan Portfolio 6 Portfolio Composition Loan Portfolio ($ in millions) 6/30/21 Commercial C&D $ 100.6 Residential C&D 195.1 CRE Owner/Occ. 240.5 Other CRE Non Owner/Occ. 428.0 Multi-Family 90.0 C&I 284.0 Agriculture 177.2 1-4 Family 375.3 Auto 230.5 Other Consumer 68.1 PPP 114.2 Total $ 2,303.5 Sourc
Slide 7: Mortgage Banking Overview
Mortgage Banking Overview 7 Mortgage Banking Activity$ in Millions 2Q’21 Highlights $61 million decrease in interest rate lock commitments at 6/30/21 compared to 6/30/20$56.9 million decrease in mortgage loan originations in 2Q’21 compared to 1Q’21Mortgage servicing rights asset valuation – a negati
Slide 8: Noninterest Income
Noninterest Income 8 Noninterest Income$ in Millions 2Q’21 Highlights Noninterest income of $22.3 million, compared to $24.9 million in 2Q’20, primarily due to:a decline in mortgage banking activities revenuePartially offset by growth in bank card services and interchange revenue and other nonintere
Slide 9: Diversified Revenue Stream
Diversified Revenue Stream Six Months Ended June 30, 2021 9 Total Revenues$107.9 million Noninterest Income$48.8 million Source: Company documents
Slide 10: Net Interest Income and Margin
Net Interest Income and Margin 10 Net Interest Income & Margin$ in Millions 2Q’21 Highlights Net interest income of $29.6 million, compared to $30.4 million in 2Q’20. The decline was a result of:Decrease of 9 bps in loan ratesInterest expense for $50 million of subordinated notes issued in 3Q’20 Par
Slide 11: Deposit Portfolio
Deposit Portfolio 11 Total Deposits$ in Millions 2Q’21 Highlights Total Deposits of $3.16 billion at 2Q’21, an increase of $2.9 million from 1Q’21Period end balances were flatDeposit balances peaked in mid-JuneCost of interest-bearing deposits declined in 2Q’21 to 40 bps from 56 bps in 2Q’20Noninter
Slide 12: Credit Quality
Credit Quality 12 2Q’21 Highlights Credit Quality Ratios Negative provision for loan loss of $2.0 million in 2Q’21 as the result of general improvements in the economy, a decline in loans actively under a modification, and a decrease in nonperforming loansTotal classified loans decreased $4 million
Slide 13: Select Loan Industry Concentration Detail
DirectEnergy Select Loan Industry Concentration Detail 13 As of June 30, 2021 Hospitality Total operating hospitality loans of $121 million*$20 million in hotels under construction, with unfunded commitments of $4 million86% of balances are to limited service hotels40% of operating hospitality class
Slide 14: Investment Securities
Investment Securities 14 2Q’21 Highlights Investment Securities totaled $777.6 million at 2Q’21, the fair value of securities increased $10.6 million due to market conditions from 1Q’21All municipal bonds are in TexasAll MBS, CMO, and Asset Backed securities are U.S. Government or GSE 2Q’21 Securiti
Slide 15: Noninterest Expense and Efficiency
Noninterest Expense and Efficiency 15 Noninterest Expense$ in Millions 2Q’21 Highlights Noninterest expense for 2Q’21 increased from 2Q’20 primarily due to:Primarily driven by a $1.8 million increase in personnel expense, including a rise of $1.4 million in higher commissions paid on mortgage loan o
Slide 16: Balance Sheet Highlights
Balance Sheet Highlights$ in Millions Balance Sheet Growth and Development 16 Tangible Book Value Per Share Note: Tangible book value per share is a non-GAAP measure. See appendix for the reconciliation to GAAP Source: Company documents
Slide 17: Strong Capital Base
Strong Capital Base 17 Tangible Common Equity to Tangible Assets Ratio Common Equity Tier 1 Ratio Tier 1 Capital to Average Assets Ratio Total Capital to Risk-Weighted Assets Ratio Source: Company documents Note: Tangible common equity to tangible assets is a non-GAAP measure. See appendix for the r
Slide 18: Appendix
Appendix South Plains Fin. al, In
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures 19 As of and for the quarter ended June 30,2021 March 31,2021 December 31,2020 September 30,2020 June 30,2020 Efficiency Ratio Noninterest expense $ 36,778 $ 37,057 $ 36,504 $ 35,993 $ 35,207 Net interest income $ 29,593 $ 29,544 $ 30,365 $ 31,273 $ 30,448 Tax equivalent
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures 20 As of and for the quarter ended June 30,2021 March 31,2021 December 31,2020 September 30,2020 June 30,2020 Tangible common equity Total common stockholders' equity $ 394,254 $ 374,671 $ 370,048 $ 352,568 $ 336,534 Less: goodwill and other intangibles (26,226) (26,648)
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