South Plains Financial, Inc. · NASDAQ:SPFI
South Plains Financial — Q4 2020 Earnings Presentation
22 slides from South Plains Financial's earnings presentation, Jan 27, 2021
Slide 1: South Plains Financial Earnings Presentation Fourth Quarter, 2020
South Plains Financial Earnings Presentation Fourth Quarter, 2020 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 2020 Highlights
$3.6 Billion in Total Assets as of December 31, 2020 Parent Company of City Bank, a leading Texas-based community bank headquartered in Lubbock, TX Fourth Quarter and Full Year 2020 Highlights 4 Net Income of $15.9 million, compared to $16.7 million in 3Q’20 and $10.1 million in 4Q’19Diluted earning
Slide 5: 2020 Highlights
2020 Highlights 5 Source: Company documents Annual Trends$ in Millions Tangible Book Value Per Share Efficiency Ratio Total Assets Pre-Tax, Pre-Provision Earnings 15.2%CAGR 14.8%CAGR
Slide 6: Loan Portfolio
Loan Portfolio 6 Total Loans decreased $66.7 million compared to 3Q’20Decrease in total loans during the quarter was due primarily to:$41.8 million in forgiveness and paydowns on PPP loans$28.0 million in pay downs on seasonal agricultural production loansEarly payoff of a $16.0 million state and mu
Slide 7: Loan Portfolio Composition
Loan Portfolio 7 Portfolio Composition (Dollars in thousands) Loan Portfolio 4Q’20 Commercial C&D $ 89.5 Residential C&D 166.1 CRE Owner/Occ. 208.5 Other CRE Non Owner/Occ. 435.5 Multi-Family 66.7 C&I 276.4 Agriculture 175.2 1-4 Family 360.3 Auto 205.8 Other Consumer 67.6 PPP 170.0 Total $ 2,221.6 S
Slide 8: COVID-19 Loan Modifications – Updated
(Dollars in thousands) Total # of Active Active Mod % Loan Segment Balance Loan Mods Mods of Segment Hospitality $ 123,495 11 $ 56,943 46.1% Hotels (Under Construction) 14,998 - - 0.0% All Other CRE 520,706 3 638 0.1% Oil & Gas 64,007 7 270 0.4% Restaurant & Retail - Owner Occ. 90,515 7 1,911 2.1% A
Slide 9: COVID-19 Loan Modifications – Updated
COVID-19 Loan Modifications – Updated (As of December 31, 2020) 9 Other modifications were primarily hotel loans that had interest-only periods of 12 months or a combination of a 90 day deferral and 9 months of interest-only Hospitality has the highest modification status at 46.1% of loans in that s
Slide 10: Select Loan Industry Concentration Detail
DirectEnergy Select Loan Industry Concentration Detail 10 As of December 31, 2020 Hospitality Total operating hospitality loans of $123 million*$15 million in hotels under construction, with unfunded commitments of $9 million83% of balances are to limited service hotels43% of operating hospitality c
Slide 11: Noninterest Income
Noninterest Income 11 Noninterest Income$ in Millions 4Q’20 Highlights Noninterest income of $26.2 million, compared to $16.7 million in 4Q’19Revenue from mortgage banking activities:Improved $10.3 million based on an increase of 146% in production in 4Q’20 compared to 4Q’19Declined $4.5 million as
Slide 12: Diversified Revenue Stream
Diversified Revenue Stream Twelve Months Ended December 31, 2020 12 Total Revenues$223.9 million Noninterest Income$101.6 million Source: Company documents
Slide 13: Net Interest Income and Margin
Net Interest Income and Margin 13 Net Interest Income & Margin$ in Millions 4Q’20 Highlights Net interest income of $30.4 million, compared to $28.6 million in 4Q’19The increase as compared to 4Q’19 was a result of:$523 million rise in average interest-earnings assets primarily from the WTSB acquisi
Slide 14: Deposit Portfolio
Deposit Portfolio 14 Total Deposits$ in Millions 4Q’20 Highlights Total Deposits of $2.97 billion at 4Q’20, an increase of $30.5 million from 3Q’20Cost of interest-bearing deposits declined in 4Q’20 to 45bps from 106bps in 4Q’19Noninterest-bearing deposits represented 30.8% of deposits in 4Q’20, com
Slide 15: Credit Quality
Credit Quality 15 4Q’20 Highlights Credit Quality Ratios Recorded a $141 thousand provision for loan losses in 4Q’20 as compared to $6.1 million in 3Q’20 as the result of modest improvements in the economy and a decline in loans actively under a modificationTotal classified loans decreased $6 millio
Slide 16: Investment Securities
Investment Securities 16 4Q’20 Highlights Investment Securities totaled $803.1 million at 4Q’20, an increase of $76.8 million from 3Q’20All municipal bonds are in TexasAll MBS, CMO, and Asset Backed securities are U.S. Government or GSE 4Q’20 Securities Composition $803.1mm Securities & Cash$ in Mil
Slide 17: Noninterest Expense and Efficiency
Noninterest Expense and Efficiency 17 Noninterest Expense$ in Millions 4Q’20 Highlights Noninterest expense for 4Q’20 increased from 4Q’19 primarily due to an increase of $3.7 million in commissions and higher variable expenses related to strong mortgage activityManagement continues to focus on redu
Slide 18: Balance Sheet Highlights
Balance Sheet Highlights$ in Millions Balance Sheet Growth and Development 18 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 19: Strong Capital Base
Strong Capital Base 19 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 20: Appendix
Appendix 20
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures 21 As of and for the quarter ended December 31,2020 September 30,2020 June 30,2020 March 31,2020 December 31,2019 Efficiency Ratio Noninterest expense $ 36,504 $ 35,993 $ 35,207 $ 34,011 $ 31,714 Net interest income $ 30,365 $ 31,273 $ 30,448 $ 30,199 $ 28,624 Tax equival
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures 22 As of December 31,2020 December 31,2019 Tangible common equity Total common stockholders' equity $ 370,048 $ 306,182 Less: goodwill and other intangibles (27,070) (27,389) Tangible common equity $ 342,978 $ 278,793 Tangible assets Total assets $ 3,599,160 $ 3,237,167 L
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