South Plains Financial, Inc. · NASDAQ:SPFI
South Plains Financial — Q2 2020 Earnings Presentation
21 slides from South Plains Financial's earnings presentation, Jul 29, 2020
Slide 1: South Plains Financial Earnings Presentation Second Quarter, 2020
South Plains Financial Earnings Presentation Second Quarter, 2020 *
Slide 2: Forward-Looking Statements and Disclosures
Forward-Looking Statements and 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 may contain, statements about future events that constitute forward-looking statemen
Slide 3: Today's Speakers
Today’s Speakers * 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 1979Elected Chairman of the First State Bank of Morton board in 1984Chairman of the Board of City Bank and the Company since
Slide 4: COVID-19 Update
COVID-19 Update * Impact of COVID-19 on Our… Our Business Continuity Oversight Committee monitored the spread of the COVID-19 pandemic since late January 2020As the pandemic escalated the Company created a Pandemic Task Force to implement the Company’s Business Continuity Plan to ensure the safety o
Slide 5: Second Quarter 2020 Highlights
$3.6 Billion in Total Assets as of June 30, 2020 Parent Company of City Bank, a leading Texas-based community bank headquartered in Lubbock, TX Second Quarter 2020 Highlights * Pre-Tax, Pre-Provision income of $20.1 million, compared to $15.1 million in 1Q’20 and $8.6 million in 2Q’19Net Income of $
Slide 6: Covid-19 Cumulative Loan Modifications
Covid-19 Cumulative Loan Modifications * The Company has taken an aggressive and proactive approach to managing credit in light of the economic uncertaintyMost at-risk loans over $1 million have been assigned to the Chairman, CEO, CLO, or CCO for additional oversightAdditionally, customers were offe
Slide 7: Loan Portfolio
Loan Portfolio * Total Loans increased $229.9 million compared to 1Q’20Loan growth was driven by origination of $215.3 million in PPP loans and $34.7 million in seasonal Ag loan fundings This growth was partially offset by $24.4 million in paydowns in non-residential consumer loans and direct energy
Slide 8: Loan Portfolio
Loan Portfolio * Commercial Real Estate includes:Comm. LDC & Res. LD – 9%Hospitality – 5%Commercial – General includes:PPP – 9%Owner – Occ. Rest. & Retail – 4%Commercial – Specialized includes:Agricultural production – 6%Direct energy – 3% 2Q’20 Highlights Portfolio Composition Net Loans2Q’20: $2.3
Slide 9: Select Loan Industry Concentration Detail
Hospitality Select Loan Industry Concentration Detail * As of June 30, 2020 DirectEnergy Total loans of $79 million91% support services, 9% upstreamNearly 100% Permian and Palo Duro Basins20% of energy sector classifiedZero non-accrual creditsALLL on energy sector is 5.7% Total loans of $115 million
Slide 10: Noninterest Income
Noninterest Income * Noninterest Income$ in Millions 2Q’20 Highlights Noninterest income is $24.9 million, compared to $18.9 million in 1Q’20The increase in 2Q’20 compared to 1Q’20 due to:An increase in mortgage banking activities revenue of $9.2 millionPartially offset by a $2.3 million gain on sal
Slide 11: Diversified Revenue Stream
Diversified Revenue Stream Six Months Ended June 30, 2020 * Total Revenues$104.4 million Noninterest Income$43.8 million
Slide 12: Net Interest Income and Margin
Net Interest Income and Margin * Net Interest Income & Margin$ in Millions 2Q’20 Highlights Net interest income of $30.4 million, compared to $24.8 million in 2Q’19The increase as compared to 2Q’19 was a result of:A $429 million rise in average loans primarily from the WTSB acquisition and PPP loans
Slide 13: Deposit Portfolio
Deposit Portfolio * Total Deposits$ in Millions 2Q’20 Highlights Total Deposits increased $282 million, compared to 1Q’20The increase was largely due to organic growth and PPP loan fundings that are still on depositNoninterest-bearing deposits grew $200 million compared to 1Q’20 Noninterest-bearing
Slide 14: Credit Quality
Credit Quality * 2Q’20 Highlights Credit Quality Ratios Recorded a $13.1 million provision for loan losses in Q2’20 as compared to $6.2 million in Q1’20 due primarily to management’s conservative and cautious approach Total classified loans increased to $95 million in Q2’20 from $39 million in Q1’20
Slide 15: Investment Securities
Investment Securities * 2Q’20 Highlights Investment Securities totaled $730.7 million for 2Q’20Securities decreased $4.1 million from 1Q’20All municipal bonds are in TexasAll MBS, CMO, and Asset Backed securities are U.S. Government or GSE 2Q’20 Securities Composition $730.7mm Securities & Cash$ in
Slide 16: Noninterest Expense and Efficiency
Noninterest Expense and Efficiency * Noninterest Expense$ in Millions 2Q’20 Highlights Noninterest expense for 2Q’20 increased due to an increase of $2.2 million in commissions and higher variable expenses related to strong mortgage activityPartially offset by higher expenses in 1Q’20 for data conve
Slide 17: Balance Sheet Growth and Development
Balance Sheet Growth and Development * 2Q’20 Highlights Balance Sheet Highlights$ in Millions Total Deposits were $2.9 billion as of 2Q’20, compared to $2.3 billion in 2Q’19:$343 million from the assumption of deposits in the WTSB acquisitionOrganic growth and PPP loan fundings still on depositTotal
Slide 18: Strong Capital Base
Strong Capital Base * Total Stockholders’ Equity to Total Assets Ratio Common Equity Tier 1 Ratio Tier 1 Capital to Average Assets Ratio Total Capital to Risk-Weighted Assets Ratio
Slide 19: Appendix
Appendix *
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures * As of and for the quarter ended June 30,2020 March 31,2019 December 31,2019 September 30,2019 June 30,2019 Efficiency Ratio Noninterest expense $ 35,207 $ 34,011 $ 31,714 $ 30,028 $ 29,930 Net interest income 30,448 30,199 28,624 26,568 24,837 Tax equivalent yield adjus
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures * As of June 30,2020 December 31,2019 Tangible common equity Total common stockholders' equity $ 336,534 $ 306,182 Less: goodwill and other intangibles (28,414) (27,389) Tangible common equity $ 308,120 $ 278,793 Tangible assets Total assets $ 3,584,532 $ 3,237,167 Less:
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