South Plains Financial, Inc. · NASDAQ:SPFI
South Plains Financial — Q4 2021 Earnings Presentation
19 slides from South Plains Financial's earnings presentation, Jan 27, 2022
Slide 1: South Plains Financial Earnings Presentation Fourth Quarter, 2021
South Plains Financial Earnings Presentation Fourth 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: Fourth Quarter and Full Year 2021 Highlights
$3.9 Billion in Total Assets as of December 31, 2021 Parent company of City Bank, a leading Texas-based community bank headquartered in Lubbock, TX Fourth Quarter and Full Year 2021 Highlights 4 One of the largest independent banks headquartered in West Texas New Mexico Texas Dallas Bryan /College S
Slide 5: Loan Portfolio 4Q'21 Highlights
Loan Portfolio 5 4Q’21 Highlights Total loans increased by $8.5 million compared to 3Q’21, primarily due to:$30.5 million organic net loan growthPartially offset by SBA forgiveness and repayments of $22.0 million in PPP loans Additionally, there were $26.8 million in early payoffs from two hotel loa
Slide 6: Loan Portfolio Composition
Loan Portfolio 6 Portfolio Composition Loan Portfolio ($ in millions) 12/31/21 Commercial C&D $ 104.8 Residential C&D 218.3 CRE Owner/Occ. 230.6 Other CRE Non Owner/Occ. 440.8 Multi-Family 138.4 C&I 376.8 Agriculture 191.2 1-4 Family 387.7 Auto 240.7 Other Consumer 68.1 PPP 40.2 Total $ 2,437.6 Sour
Slide 7: Mortgage Banking Overview
Mortgage Banking Overview 7 Mortgage Banking Activity$ in Millions 4Q’21 Highlights $49 million decrease in interest rate lock commitments at 12/31/21 compared to 9/30/21Mortgage loan originations decreased 16.1% in 4Q’21 compared to 3Q’21Mortgage servicing rights asset valuation – a positive adjust
Slide 8: Noninterest Income
Noninterest Income 8 Noninterest Income$ in Millions 4Q’21 Highlights Noninterest income of $22.9 million, compared to $25.8 million in 3Q’21; the decrease is primarily due to:$2.4 million decrease in mortgage banking activities revenueSeasonal decrease of $1.6 million in income from insurance activ
Slide 9: Diversified Revenue Stream
Diversified Revenue Stream Twelve Months Ended December 31, 2021 9 Total Revenues$219.2 million Noninterest Income$97.5 million Source: Company documents
Slide 10: Net Interest Income and Margin
Net Interest Income and Margin 10 Net Interest Income & Margin$ in Millions 4Q’21 Highlights Net interest income of $31.4 million, compared to $31.2 million in 3Q’21; the increase was due to:Growth of $66.1 million in average loans outstandingPartially offset by 9 bps decrease in loan yield4Q’21 net
Slide 11: Deposit Portfolio
Deposit Portfolio 11 Total Deposits$ in Millions 4Q’21 Highlights Total Deposits of $3.34 billion at 4Q’21, an increase of $129 million from 3Q’21Largest increase was experienced in personal accounts Cost of interest-bearing deposits declined in 4Q’21 to 35 bps from 37 bps in 3Q’21Noninterest-bearin
Slide 12: Credit Quality
Credit Quality 12 4Q’21 Highlights Credit Quality Ratios While growth continued in the loan portfolio, the Company made no provision for loan loss in 4Q’21 in light of the general improvements in the economy and a decline in classified loans of $20.3 million in 4Q’21Ratio of Allowance for Loan Losse
Slide 13: Select Loan Industry Concentration Detail
DirectEnergy Select Loan Industry Concentration Detail 13 As of December 31, 2021 Hospitality Total operating hospitality loans of $113 million*$8 million in hotels under construction, with no unfunded commitments83% of balances are to limited service hotels35% of operating hospitality classified; <
Slide 14: Investment Securities
Investment Securities 14 4Q’21 Highlights Investment Securities totaled $724.5 million at 12/31/21, a decrease of $28.1 million from 3Q’21All municipal bonds are in TexasAll MBS, CMO, and Asset Backed securities are U.S. Government or GSE 4Q’21 Securities Composition $752.6million Securities & Cash$
Slide 15: Noninterest Expense and Efficiency
Noninterest Expense and Efficiency 15 Noninterest Expense$ in Millions 4Q’21 Highlights Noninterest expense for 4Q’21 decreased $2.0 million from 3Q’21 primarily due to:$1.1 million decrease in personnel expense related to the seasonal decline in insurance activities$854 thousand decrease in mortgag
Slide 16: Balance Sheet Highlights
Balance Sheet Highlights$ 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 December 31,2021 September 30,2021 June 30,2021 March 31,2021 December 31,2020 Pre-Tax, Pre-Provision Income Net income $ 14,614 $ 15,190 $ 13,650 $ 15,160 $ 15,924 Income tax expense 3,631 3,716 3,422 3,738 3,968 Provision for loan loss
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