South Plains Financial, Inc. · NASDAQ:SPFI
South Plains Financial — Q1 2021 Earnings Presentation
20 slides from South Plains Financial's earnings presentation, Apr 27, 2021
Slide 1: South Plains Financial Earnings Presentation First Quarter 2021
South Plains Financial Earnings Presentation First 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: First Quarter 2021 Highlights
$3.7 Billion in Total Assets as of March 31, 2021 Parent Company of City Bank, a leading Texas-based community bank headquartered in Lubbock, TX First 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
Loan Portfolio 5 Total loans increased $21.1 million compared to 4Q’20Increase in total loans during the quarter was due primarily to:$46.5 million in organic net growth; including $3.5 million in Paycheck Protection Program (“PPP”) loan net growthPartially offset by $25.4 million in pay downs on se
Slide 6: Loan Portfolio Composition
Loan Portfolio 6 Portfolio Composition Loan Portfolio ($ in millions) 3/31/21 Commercial C&D $ 100.4 Residential C&D 172.2 CRE Owner/Occ. 220.7 Other CRE Non Owner/Occ. 438.7 Multi-Family 70.5 C&I 268.6 Agriculture 147.9 1-4 Family 362.6 Auto 220.0 Other Consumer 67.6 PPP 173.5 Total $ 2,242.7 Sourc
Slide 7: Select Loan Industry Concentration Detail
DirectEnergy Select Loan Industry Concentration Detail 7 As of March 31, 2021 Hospitality Total operating hospitality loans of $123 million*$17 million in hotels under construction, with unfunded commitments of $7 million84% of balances are to limited service hotels43% of operating hospitality class
Slide 8: Mortgage Banking Overview
Mortgage Banking Overview 8 Mortgage Banking Activity$ in Millions 1Q’21 Highlights 101% increase in mortgage loan originations for 1Q’21 to $435 million compared to $216 million for 1Q’20Mortgage servicing rights asset valuation adjustment – positive $1.3 million in 1Q’21, compared to negative $753
Slide 9: Noninterest Income
Noninterest Income 9 Noninterest Income$ in Millions 1Q’21 Highlights Noninterest income of $26.5 million, compared to $18.9 million in 1Q’20Revenue from mortgage banking activities of $18.8 million, compared to $8.8 million in 1Q’20Fee income primarily driven by mortgage operations, debit card and
Slide 10: Diversified Revenue Stream
Diversified Revenue Stream Three Months Ended March 31, 2021 10 Total Revenues$56.0 million Noninterest Income$26.5 million Source: Company documents
Slide 11: Net Interest Income and Margin
Net Interest Income and Margin 11 Net Interest Income & Margin$ in Millions 1Q’21 Highlights Net interest income of $29.5 million, compared to $30.2 million in 1Q’20The decline as compared to 1Q’20 was a result of:Decrease of 69 bps in loan ratesInterest expense for $50 million of subordinated notes
Slide 12: Deposit Portfolio
Deposit Portfolio 12 Total Deposits$ in Millions 1Q’21 Highlights Total Deposits of $3.16 billion at 1Q’21, an increase of $181.3 million from 4Q’20Increase in total deposits primarily a result of organic growth as well as existing customers depositing funds received from PPP loan advances, stimulus
Slide 13: Credit Quality
Credit Quality 13 1Q’21 Highlights Credit Quality Ratios Minimal provision for loan loss of $89 thousand as the result of modest improvements in the economy and a decline in loans actively under a modificationTotal classified loans decreased $3 million in 1Q’21 as compared to 4Q’20Nonperforming asse
Slide 14: Investment Securities
Investment Securities 14 1Q’21 Highlights Investment Securities totaled $777.2 million at 1Q’21, a decrease of $25.9 million from 4Q’20; primarily from a decrease in the fair value of securities of $18.5 million due to market conditions All municipal bonds are in TexasAll MBS, CMO, and Asset Backed
Slide 15: Noninterest Expense and Efficiency
Noninterest Expense and Efficiency 15 Noninterest Expense$ in Millions 1Q’21 Highlights Noninterest expense for 1Q’21 increased from 1Q’20 primarily due to:additional $3.0 million in commissions paid on the higher volume of mortgage loan originationsa rise of $1.0 million in salary and other personn
Slide 16: Balance Sheet Highlights
Balance Sheet Highlights$ 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 March 31,2021 December 31,2020 September 30,2020 June 30,2020 March 31,2020 Efficiency Ratio Noninterest expense $ 37,057 $ 36,504 $ 35,993 $ 35,207 $ 34,011 Net interest income $ 29,544 $ 30,365 $ 31,273 $ 30,448 $ 30,199 Tax equivalent
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures 20 As of and for the quarter ended March 31,2021 December 31,2020 September 30,2020 June 30,2020 March 31,2020 Tangible common equity Total common stockholders' equity $ 374,671 $ 370,048 $ 352,568 $ 336,534 $ 326,890 Less: goodwill and other intangibles (26,648) (27,070)
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