South Plains Financial, Inc. · NASDAQ:SPFI
South Plains Financial — Merger or Acquisition (July 2019)
11 slides from South Plains Financial's merger presentation, Jul 25, 2019
Slide 1: Acquisition of West Texas State Bank Investor Presentation
South Plains Financial, Inc. (NASDAQ: SPFI)Acquisition of West Texas State BankInvestor Presentation | July 25, 2019 Exhibit 99.2
Slide 2: Forward-Looking Statements and Disclosures
Forward-Looking Statements and Disclosures This presentation contains statements regarding the proposed transaction (“merger”) between South Plains Financial, Inc. (“South Plains,” “SPFI,” “we,” “us,” or “our”) and West Texas State Bank (“WTSB”). This presentation contains forward-looking statements
Slide 3: Transaction Highlights
Transaction Highlights Source: S&P Global.As of or for the quarter ended March 31, 2019.Assuming 100% phase-in of cost savings for illustrative purposes.Using crossover method. Strategic Rationale Expands South Plains’ franchise into the Permian Basin (Midland and Odessa MSAs) with the acquisition o
Slide 4: Bank Overview
West Texas State Bank Overview Branch Overview Financial Highlights Founded in 1937, WTSB is based in Odessa, TexasSix branches located predominantly along I-20 corridor in West TexasSuperior core deposit franchise with excess liquidityClean loan portfolio reflected by minimal nonperforming assetsSt
Slide 5: Adjacent Expansion into Attractive Midland/Odessa Markets
Adjacent Expansion into Attractive Midland/Odessa Markets Source: S&P Global. Odess-tx.gov, U.S. Department of Energy, Midland Reporter-Telegram.Note: Deposit data as of June 30, 2018 per FDIC. Pro Forma Branch Overview Midland / Odessa Highlights SPFI (20)WTSB (6) Located along Permian Basin, the M
Slide 6: Transaction Overview
Transaction Overview Transaction Value and Structure Required Approvals Expected Closing Aggregate transaction value of $76.1 millionSubject to delivery of minimum tangible common equity of $50 million100% cash consideration Shareholder approval from WTSB shareholdersCustomary regulatory approvals 4
Slide 7: Pricing Multiples and Pro Forma Financial Impact
Pricing Multiples and Pro Forma Financial Impact Note: West Texas State Bank S-Corporation earnings shown adjusted to C-Corporation earnings using 21% tax rate.Financials are as of or for the period ended June 30, 2019.Assumes 100% phase-in for illustrative purposes.Based on total deposits less time
Slide 8: Acquisition Strategy
Acquisition Strategy P Contiguous West Texas Market Manageable Size Attractively Priced Substantial EPS Accretion Tangible Book Value Earnback < 4 Years Tangible Book Value Dilution Under 10% Strong IRR P P P P P P P P P P P P P Commentary Promised Delivered
Slide 9: Appendix
Appendix
Slide 10: Pro Forma Loan & Deposit Composition
Pro Forma Loan & Deposit Composition $1.9bnYield: 5.75% Source: S&P Global.Data per 2019Q1 regulatory filings.Excludes purchase accounting adjustments. $210mmYield: 5.98% $2.1bnYield: 5.77% $2.3bnCost: 1.03% $374mmCost: 0.19% $2.7bnCost: 0.91% Loans(1): Deposits(1): Loans / Deposits: 83.1% Loans / D
Slide 11: South Plains Financial, Inc.
South Plains Financial, Inc.
South Plains Financial — Merger or Acquisition (July 2019) on 6ix