South Plains Financial, Inc. · NASDAQ:SPFI
South Plains Financial — Q3 2021 Earnings Presentation
19 slides from South Plains Financial's earnings presentation, Oct 26, 2021
Slide 1: South Plains Financial Earnings Presentation Third Quarter, 2021
South Plains Financial Earnings Presentation Third 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: Third Quarter 2021 Highlights
$3.8 Billion in Total Assets as of September 30, 2021 Parent company of City Bank, a leading Texas-based community bank headquartered in Lubbock, TX Third Quarter 2021 Highlights 4 One of the largest independent banks headquartered in West Texas New Mexico Texas Dallas Bryan /College Station Houston
Slide 5: Loan Portfolio 3Q'21 Highlights
Loan Portfolio 5 3Q’21 Highlights Total loans increased by $125.6 million compared to 2Q’21, primarily due to:$177.6 million in organic net growth; Partially offset by a net decrease of $52.0 million in Paycheck Protection Program (“PPP”) loans, primarily due to PPP loan forgiveness received from th
Slide 6: Loan Portfolio Composition
Loan Portfolio 6 Portfolio Composition Loan Portfolio ($ in millions) 9/30/21 Commercial C&D $ 85.3 Residential C&D 215.8 CRE Owner/Occ. 219.9 Other CRE Non Owner/Occ. 458.4 Multi-Family 130.7 C&I 353.0 Agriculture 208.1 1-4 Family 387.1 Auto 239.4 Other Consumer 69.1 PPP 62.2 Total $ 2,429.0 Source
Slide 7: Mortgage Banking Overview
Mortgage Banking Overview 7 Mortgage Banking Activity$ in Millions 3Q’21 Highlights $75 million decrease in interest rate lock commitments at 9/30/21 compared to 9/30/20Mortgage loan originations decreased 1.6% in 3Q’21 compared to 2Q’21Mortgage servicing rights asset valuation – a positive adjustme
Slide 8: Noninterest Income
Noninterest Income 8 Noninterest Income$ in Millions 3Q’21 Highlights Noninterest income of $25.8 million, compared to $22.3 million in 2Q’21; the increase is primarily due to:Seasonal increase of $2.6 million in noninterest income from insurance activities $1.1 million increase in mortgage banking
Slide 9: Diversified Revenue Stream
Diversified Revenue Stream Nine Months Ended September 30, 2021 9 Total Revenues$164.9 million Noninterest Income$74.5 million Source: Company documents
Slide 10: Net Interest Income and Margin
Net Interest Income and Margin 10 Net Interest Income & Margin$ in Millions 3Q’21 Highlights Net interest income of $31.2 million, compared to $29.6 million in 2Q’21Increase was mainly the result of the growth of $82.9 million in average loans outstanding3Q’21 net interest margin (“NIM”) of 3.58%, a
Slide 11: Deposit Portfolio
Deposit Portfolio 11 Total Deposits$ in Millions 3Q’21 Highlights Total Deposits of $3.21 billion at 3Q’21, an increase of $53.8 million from 2Q’21largest increase was experienced in non-personal demand accounts Cost of interest-bearing deposits declined in 3Q’21 to 37 bps from 40 bps in 2Q’21Nonint
Slide 12: Credit Quality
Credit Quality 12 3Q’21 Highlights Credit Quality Ratios While growth was experienced in the loan portfolio and classified loans increased, the Company made no provision for loan loss in 3Q’21 in light of the general improvements in the economy and a decline in loans actively under a modification.To
Slide 13: Loan Industry Concentration Detail
DirectEnergy Select Loan Industry Concentration Detail 13 As of September 30, 2021 Hospitality Total operating hospitality loans of $129 million*$6 million in hotels under construction, with unfunded commitments of <$2 million85% of balances are to limited service hotels37% of operating hospitality
Slide 14: Investment Securities
Investment Securities 14 3Q’21 Highlights Investment Securities totaled $752.6 million at 9/30/21, the fair value of securities decreased $6 million due to market conditions from 6/30/21All municipal bonds are in TexasAll MBS, CMO, and Asset Backed securities are U.S. Government or GSE 3Q’21 Securit
Slide 15: Noninterest Expense and Efficiency
Noninterest Expense and Efficiency 15 Noninterest Expense$ in Millions 3Q’21 Highlights Noninterest expense for 3Q’21 increased $1.3 million from 2Q’21 primarily due to:$739 thousand increase in personnel expense from an additional $1.2 million in commissions for insurance activities partially offse
Slide 16: Balance Sheet Highlights
Balance Sheet Highlights$ 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 September 30,2021 June 30,2021 March 31,2021 December 31,2020 September 30,2020 Pre-Tax, Pre-Provision Income Net income $ 15,190 $ 13,650 $ 15,160 $ 15,924 $ 16,731 Income tax expense 3,716 3,422 3,738 3,968 4,147 Provision for loan los
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