South Plains Financial, Inc. · NASDAQ:SPFI
South Plains Financial — Q1 2025 Earnings Presentation
23 slides from South Plains Financial's earnings presentation, Apr 24, 2025
Slide 1: South Plains Financial First Quarter 2025 Earnings Presentation
South Plains Financial First Quarter 2025 Earnings Presentation April 24, 2025
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”, “SPFI”, or the “Company”) and City Bank (“City Bank” or the “Bank”) may contain, statements about future events t
Slide 3: Today’s Speakers
Today’s Speakers ▪ Elected to the board of directors of First State Bank of Morton, Texas, in 1972 and employed by it in 1979 Curtis C. Griffith ▪ Elected Chairman of the First State Bank of Morton board Chairman & Chief Executive in 1984 Officer ▪ Chairman of the Board of City Bank and the Company
Slide 4: First Quarter 2025 Highlights
First Quarter 2025 Highlights Net Income Net Interest Margin (1) Loans Held for Investment Return on Average Assets $12.3 M (“NIM”) 3.81% (“HFI”) $3.08 B (“ROAA”) 1.16% EPS - Diluted Total Deposits Average Yield on Loans Efficiency Ratio $0.72 $3.79 B 6.67% 66.90% ➢ Net income for the first quarter
Slide 5: Loan Portfolio
Loan Portfolio Total Loans HFI 1Q'25 Highlights $ in Millions ✓ Loans HFI increased $20.8 million from 4Q’24, primarily as a result of organic loan growth $3,094 $3,055 $3,076 experienced in commercial owner-occupied real $3,012 $3,037 estate loans and commercial goods and services loans, partially
Slide 6: Attractive Markets Poised for Organic Growth
Attractive Markets Poised for Organic Growth ✓ Largest MSA in Texas and fourth largest in the ✓ Sixth largest city in Texas and 22nd largest in nation the U.S. ✓ Steadily expanding population that accounts ✓ Population growth has outpaced the country for over 26% of the state’s population over the l
Slide 7: Major Metropolitan Market Loan Growth
Major Metropolitan Market Loan Growth (1) Total Metropolitan Market Loans 1Q'25 Highlights $ in Millions ✓ Loans HFI in our major metropolitan markets(1) decreased by $18 million, to $1.04 billion during $1,061 $1,069 $1,049 $1,058 1Q’25 $1,040 ✓ Our major metropolitan market loan portfolio represen
Slide 8: Loan HFI Portfolio
Loan HFI Portfolio Loan Mix Fixed vs. Variable Rate Fixed - Matures over 1 year Other Commercial 23% Fixed - Matures 12mo or less Consumer, 2% C&D, 4% Residential C&D, 7% 10% Variable - Immediately Repricable 42% Variable - Mature or Reprice 12mo Auto, 9% 19% or less Variable - Mature or Reprice ove
Slide 9: Indirect Auto Overview
Indirect Auto Overview Indirect Auto Credit Breakdown Indirect Auto Highlights 0.1% 0.9% ✓ Indirect auto loans totaled $243.4 million at March 31, 2025, compared to $236.0 million at December 31, 2024 6.7% ✓ Management is carefully managing the portfolio 26.2% with balances beginning to stabilize ✓
Slide 10: Noninterest Income Overview
Noninterest Income Overview Noninterest Income 1Q'25 Highlights $ in Millions $13.3 ✓ Noninterest income was $10.6 million for 1Q’25, $14.0 $12.7 compared to $13.3 million for 4Q'24; primarily due to: $12.0 $11.4 $10.6 $10.6 o A decrease of $2.8 million in mortgage $10.0 banking revenues, mainly as
Slide 11: Diversified Revenue Stream
Diversified Revenue Stream Three Months Ended March 31, 2025 Total Revenues Noninterest Income $49.2 million $10.6 million Investment Trust, 7% Services, 4% Other, 17% Net Interest Income, 78% Service Charges on Deposits, 20% Mortgage, 20% Noninterest Income, 22% Interchange Fees, 32% 11 Source: Com
Slide 12: Net Interest Income and Margin
Net Interest Income and Margin (1) Net Interest Income & Margin 1Q'25 Highlights $ in Millions $38.5 $38.5 ✓ Net interest income (“NII”) of $38.5 million, $37.3 $35.4 $35.9 unchanged from 4Q’24 ✓ 1Q’25 NIM increased 6 bps to 3.81% as compared to 3.75% in 4Q’24, primarily due to: 3.81% o A 10 bps dec
Slide 13: Deposit Portfolio
Deposit Portfolio Total Deposits 1Q'25 Highlights $ in Millions ✓ Total deposits of $3.79 billion at 1Q’25, an increase of $171.6 million from 4Q’24. The $3,793 increase was mainly due to a seasonal $3,719 $3,639 $3,625 $3,621 increase of $70.2 million in public-fund deposits and strong organic grow
Slide 14: Granular Deposit Base & Ample Liquidity
Granular Deposit Base & Ample Liquidity Total Deposit Base Total Borrowing Capacity Breakdown $1.78 Billion Rural Commercial: Markets: FHLB: 45% 80% $1,126 Retail: FRB: $656 46% Metro Markets: 20% Public Funds: 9% Dollars in millions ✓ Average deposit account size is approximately $37 ✓ City Bank ha
Slide 15: Credit Quality
Credit Quality Credit Quality Ratios 1Q'25 Highlights ✓ Provision for credit losses of $420 thousand 0.76% 0.81% 0.79% in 1Q’25, compared to $1.2 million in 4Q’24 0.59% 0.57% 0.58% ✓ 1Q’25 provision was largely due to net charge-off activity and increased loan 0.16% 0.21% balances, partially offset
Slide 16: Non-Owner Occupied CRE Portfolio
Non-Owner Occupied CRE Portfolio NOO CRE(1) Sector Breakdown Details Other C&D, 20% ✓ NOO CRE was 40.0% of total LHI, unchanged Residential Construction, 8% from December 31, 2024 Multi-family, 25% ✓ NOO CRE portfolio is made up of $878.0 million of income producing loans and $350.9 million of Indus
Slide 17: Investment Securities
Investment Securities Securities & Cash 1Q'25 Highlights $ in Millions ✓ Investment securities totaled $571.5 million, $471 $536 a $5.7 million decrease from 4Q’24. $372 $359 $298 ✓ All municipal bonds are in Texas; fair value hedges of $121 million $600 $591 $607 $577 $572 ✓ All MBS, CMO, and Asset
Slide 18: Noninterest Expense and Efficiency
Noninterest Expense and Efficiency Noninterest Expense 1Q'25 Highlights $34.0 $ in Millions 150.0% $33.1 $33.0 $32.6 ✓ Noninterest expense increased $3.1 million $32.0 $31.9 130.0% from 4Q’24, largely as a result of an increase of $2.1 million in personnel 110.0% expenses: annual salary adjustments,
Slide 19: Balance Sheet Growth and Development
Balance Sheet Growth and Development (1) Balance Sheet Highlights Tangible Book Value Per Share $ in Millions $4,405 $26.05 $4,219 $25.75 $3,793 $25.40 $3,639 $3,012 $3,076 $24.15 $23.56 $409 $444 Total Assets Total Loans Total Total 1Q24 2Q24 3Q24 4Q24 1Q25 HFI Deposits Stockholders' Equity 31-Mar-
Slide 20: Strong Capital Base
Strong Capital Base Tangible Common Equity to Tangible Assets Ratio(1) Common Equity Tier 1 Ratio 13.53% 13.59% 13.25% 9.92% 12.67% 12.61% 9.77% 9.64% 9.22% 9.44% 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 Tier 1 Capital to Average Assets Ratio Total Capital to Risk-Weighted Assets Ratio 12.0
Slide 21: SPFI’s Core Purpose and Values Align
SPFI’s Core Purpose and Values Align Centered on Relationship-Based Business THE POWER OF RELATIONSHIPS At SPFI, we build lifelong, trusted relationships so you know you always have someone in your corner that understands you, cares about you, and stands ready to help. Our Core Purpose is: To use th
Slide 22: Appendix
South Plains Financial, Inc. Appendix
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures For the quarter ended March 31, December 31, September 30, June 30, March 31, 2025 2024 2024 2024 2024 Pre-tax, pre-provision income Net income $ 12,294 $ 16,497 $ 11,212 $ 11,134 $ 10,874 Income tax expense 3,408 4,222 3,094 3,116 3,143 Provision for credit losses 420 1,
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