South Plains Financial, Inc. · NASDAQ:SPFI
South Plains Financial — Q1 2022 Earnings Presentation
19 slides from South Plains Financial's earnings presentation, Apr 26, 2022
Slide 1: South Plains Financial Earnings Presentation First Quarter, 2022
South Plains Financial Earnings Presentation First Quarter, 2022 1
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” or the “Company”) and City Bank (“City Bank” or the “Bank”) may contain, statements about future events that const
Slide 3: Today's Speakers
Today’s Speakers 3 Curtis C. Griffith Chairman & Chief Executive Officer Elected to the board of directors of First State Bank of Morton, Texas, in 1972 and employed by it in 1979 Elected Chairman of the First State Bank of Morton board in 1984 Chairman of the Board of City Bank and the Company sinc
Slide 4: First Quarter 2022 Highlights
$4.0 Billion in Total Assets as of March 31, 2022 Parent company of City Bank, a leading Texas-based community bank headquartered in Lubbock, TX First Quarter 2022 Highlights 4 One of the largest independent banks headquartered in West Texas New Mexico Texas Dallas Bryan / College Station Houston Mi
Slide 5: Loan Portfolio 1Q'22 Highlights
Loan Portfolio 5 1Q'22 Highlights Total loans HFI increased by $16.1 million compared to 4Q’21, primarily due to: $27.9 million organic net loan growth – largest growth in land development and construction loans, commercial retail loans, and consumer loans SBA forgiveness and repayments of $11.8 mil
Slide 6: Loan HFI Portfolio
Loan HFI Portfolio 6 Loan Mix Loan Portfolio ($ in millions) 3/31/22 Commercial C&D $ 111.4 Residential C&D 228.8 CRE Owner/Occ. 248.3 Other CRE Non Owner/Occ. 441.5 Multi-Family 138.9 C&I 397.8 Agriculture 151.1 1-4 Family 378.4 Auto 255.7 Other Consumer 73.3 PPP 28.4 Total $ 2,453.6 Source: Compan
Slide 7: Mortgage Banking Overview
Mortgage Banking Overview 7 Mortgage Banking Activity $ in Millions 1Q'22 Highlights Mortgage loan originations decreased 25% in 1Q'22 compared to 4Q’21 Slowdown anticipated, after record volume in 2020 and 2021, due to increase in mortgage interest rates beginning in 4Q’21 There has been a reductio
Slide 8: Noninterest Income
Noninterest Income 8 Noninterest Income $ in Millions 1Q'22 Highlights Noninterest income of $23.7 million, compared to $22.9 million in 4Q’21; the improvement is primarily due to: $1.2 million increase in mortgage banking activities revenue $869 thousand increase in income from an investment in Sma
Slide 9: Diversified Revenue Stream
Diversified Revenue Stream Three Months Ended March 31, 2022 9 Total Revenues $53.7 million Noninterest Income $23.7 million Source: Company documents
Slide 10: Net Interest Income and Margin
Net Interest Income and Margin 10 Net Interest Income & Margin $ in Millions 1Q'22 Highlights Net interest income of $29.9 million, compared to $31.4 million in 4Q’21 1Q'22 net interest margin (“NIM”), calculated on a tax-equivalent basis, of 3.33% and a decrease of 17 bps compared to 4Q’21: 4 bps o
Slide 11: Deposit Portfolio
Deposit Portfolio 11 Total Deposits $ in Millions 1Q'22 Highlights Total Deposits of $3.45 billion at 1Q'22, an increase of roughly $110 million from 4Q’21 Largest increase was experienced in personal accounts Cost of interest-bearing deposits declined in 1Q'22 to 34 bps from 35 bps in 4Q’21 Noninte
Slide 12: Credit Quality
Credit Quality 12 1Q'22 Highlights Credit Quality Ratios The Company recorded a negative provision for loan loss of $2.1 million in 1Q’22, compared to no provision for loan loss in 4Q’21. The Company experienced improving credit metrics in the portfolio during the first quarter of 2022, specifically
Slide 13: Direct Energy and Select Loan Industry Concentration Detail
Direct Energy Select Loan Industry Concentration Detail 13 As of March 31, 2022 Hospitality Total operating hospitality loans of $116 million* No hotels under construction, with no unfunded commitments 82% of balances are to limited service hotels 33% of operating hospitality classified; <1.0% is no
Slide 14: Investment Securities
Investment Securities 14 1Q'22 Highlights Investment Securities totaled $793.4 million at 3/31/2022, an increase of $68.9 million from 4Q’21 All municipal bonds are in Texas All MBS, CMO, and Asset Backed securities are U.S. Government or GSE 1Q'22 Securities Composition $752.6 million Securities &
Slide 15: Noninterest Expense and Efficiency
Noninterest Expense and Efficiency 15 Noninterest Expense $ in Millions 1Q'22 Highlights Noninterest expense for 1Q’22 increased $913 thousand from 1Q’21 primarily due to: Additional commercial lenders hired as part of planned initiative An increase of $712 thousand in legal expenses An increase of
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 Unaudited $ in Thousands As of and for the quarter ended Pre-Tax, Pre-Provision Income Net income $14,278 $14,614 $15,190 $13,650 $15,160 Income tax expense 3,527 3,631 3,716 3,422 3,738 Provision for loan losses (2,085) - - (2,007) 89 Pre-tax, pre-provision income $15,72
South Plains Financial — Q1 2022 Earnings Presentation on 6ix