South Plains Financial, Inc. (NASDAQ:SPFI) (“South Plains” or the
“Company”), the parent company of City Bank (“City Bank” or the
“Bank”), today reported its financial results for the quarter ended
March 31, 2020.
First Quarter 2020 Highlights
- Net income for the first quarter of
2020 was $7.1 million, compared to $4.8 million for the first
quarter of 2019.
- Diluted earnings per share for the
first quarter of 2020 was $0.38, compared to $0.32 for the first
quarter of 2019.
- Average cost of deposits for the
first quarter of 2020 declined 11 basis points to 65 basis points,
compared to 76 basis points for the fourth quarter of 2019.
- The provision for loan losses in
the first quarter of 2020 was $6.2mm, compared to $896,000 for the
first quarter of 2019, due to the economic uncertainty related to
the COVID-19 pandemic and drop in energy prices.
- Nonperforming assets to total
assets were 0.28% at March 31, 2020, compared to 0.24% as of
December 31, 2019 and 0.37% at March 31, 2019.
- The adjusted (non-GAAP) efficiency
ratio for the first quarter of 2020 was 72.52%, compared to 81.79%
for the first quarter of 2019.
- Return on average assets for the
first quarter of 2020 was 0.89% annualized, compared to 0.71%
annualized for the first quarter of 2019.
- Book value per share was $18.10 as
of March 31, 2020, compared to $16.98 per share as of December 31,
2019.
Curtis Griffith, South Plains’ Chairman and
Chief Executive Officer, commented, “Over my nearly 50 year tenure
in banking, I have seen many tumultuous periods each of which have
had their own unique challenges. Ultimately, it has been the
experience and talent of our people combined with a
well-capitalized balance sheet which has consistently positioned
the Bank to not just weather the storm but thrive. While this time
of crisis is extremely difficult for so many, we expect to continue
to be successful through our dedication and support to our
customers and communities for without their success ours would not
be possible. It is this philosophy and experience that guides our
company and I would like to thank our employees for their hard work
and dedication to ensure that our operations continue to run
smoothly and the services and support to our customers are
uninterrupted during these challenging times. While the outlook
remains uncertain, we remain confident in our disciplined
underwriting culture, our risk management processes and our
liquidity position. As we look out to the balance of the year and
into 2021, we believe that we have the capital to absorb the losses
in our portfolio that could result from the adverse environment we
are in and feel well-positioned to take advantage of opportunities
that could be created in these difficult times.”
COVID-19 Update
The Company’s Oversight Committee has monitored
the spread of the coronavirus since the beginning of January and
has continuously escalated the Company’s response as well as
employee and customer communications. As the coronavirus continued
to spread across the globe, the Company created a Pandemic Task
Force to implement South Plains’ Business Continuity Plan to ensure
the safety of the Company’s employees and customers while
maintaining the operational and financial integrity of the Bank.
Non-essential employees were transitioned to a work-from-home
environment, strict protocols for employees deemed essential were
adopted to ensure adequate social distancing and all Bank
facilities are receiving incremental cleaning and sanitization. The
Company has restricted access to its bank lobbies and are allowing
customers in by appointment only while providing essential banking
services through the Bank’s drive-through windows and recently
upgraded digital platforms.
The Company has invested significantly in its
technology and infrastructure having opened a new operations center
in 2018 which is a cutting-edge facility that handles the Company’s
Digital Banking, Treasury Management, Loan and Deposit Operations,
and also houses the Bank’s Customer Xperience Center. The facility
was designed to allow for substantial growth of the Bank and, as a
result, has adequate space to provide the Company’s essential
employees the necessary room to social distance while seamlessly
supporting the Bank’s customers and performing the critical tasks
necessary to keep the Bank’s operations running efficiently. The
facility also provides support for the Bank’s employees who are
working remotely.
The Bank has also implemented a rigorous
enterprise risk management (“ERM”) system, that delivers a
systematic approach to risk measurement and enhances the
effectiveness of risk management across the Bank. Management
believes that integrating this ERM system into the Bank’s culture
and strategic decision-making has improved all functional areas of
the business. For example, the Bank’s asset quality has improved by
enhancing City Bank’s underwriting process and establishing a
specific credit appetite that aligns to the broader enterprise risk
management framework. The Bank’s ERM system will allow management
to consistently and aggressively review the Bank’s loan portfolio
for signs of potential issues during the ongoing COVID-19 pandemic
and the Bank is closely monitoring its loans to borrowers in the
retail, hospitality and energy sectors. City Bank’s ERM system has
improved the Bank’s ability to manage credit and has positioned the
Company and the Bank to successfully weather the uncertain economic
environment caused by the ongoing COVID-19 pandemic.
While the duration of the pandemic and the scope
of its impact on the economy is uncertain, the Bank is proactively
working with its borrowers in those sectors most affected by the
pandemic and offering loan modifications to borrowers who are or
may be unable to meet their contractual payment obligations because
of the effects of COVID-19. The Bank has also assigned its
Chairman, Chief Executive Officer, Chief Credit Officer and Chief
Lending Officer to partner with the Bank’s lenders on those
borrowers most impacted by the virus to ensure the Company is
proactively addressing those credits with the appropriate oversight
and modifications when warranted, helping those borrowers bridge
the gap until the economy begins to normalize. As part of the
Bank’s efforts to support its customers and protect the Bank, the
Bank has offered varying forms of loan modifications ranging from
90-day payment deferrals to 6- to 12-month interest only terms to
provide borrowers relief. As of March 31, 2020, total loan
modifications attributed to COVID-19 were approximately $155
million, or 7%, of the Company’s loan portfolio. As of April 24th,
2020, total loan modifications attributed to COVID-19 had increased
to approximately $368 million, or 17%, of the Company’s loan
portfolio.
The Bank has also been active in assisting its
customers in accessing the Paycheck Protection Program (the “PPP”)
administered by the Small Business Administration (the “SBA”) and
created under the Coronavirus Aid, Relief, and Economic Security
Act (the “CARES Act”). As of April 24th, 2020, the Bank had
originated over $170 million in PPP loans for over 1,100 customers
whose PPP loan applications were approved and funded. The Bank
intends to continue accepting and processing new PPP loan
applications for as long as funding for the program remains
available. The Bank will utilize its lines of credit with the
Federal Home Loan Bank of Dallas and/or the Federal Reserve Bank to
supplement funding for these loans as needed. Helping City Bank’s
customers access PPP loans is just one way that the Bank has been
helping its customers and communities during this challenging time.
City Bank has also been a supporter of the South Plains and Permian
Basin food banks and recently increased its financial support given
the challenging economic environment for so many.
Finally, as announced on April 16, 2020, the
Company has temporarily suspended its stock repurchase program in
response to the ongoing COVID-19 pandemic. Suspending the stock
repurchase program will allow the Company to preserve capital and
provide liquidity to meet the credit needs of the customers, small
businesses and local communities served by the Company and City
Bank. The Company believes that it remains strong and
well-capitalized, and the Company may reinstate the stock
repurchase program in the future.
Results of Operations, Quarter Ended March 31,
2020
Net Interest Income
Net interest income was $30.2 million for the
first quarter of 2020, compared to $24.5 million for the first
quarter of 2019 and $28.6 million for the fourth quarter of
2019.
Interest income was $35.7 million for the first
quarter of 2020, compared to $32.0 million for the first quarter of
2019 and $34.8 million for the fourth quarter of 2019. Interest and
fees on loans increased by $2.9 million from the first quarter of
2019 due to growth of $211.2 million in average loans, from the
West Texas State Bank (“WTSB”) acquisition as well as organic loan
growth, partially offset by a decrease of 8 basis points in
interest rates. The increase from the fourth quarter of 2019 was
the result of an increase of $71.8 million in average loans
outstanding during the first quarter of 2020, which was primarily
due to having the acquired WTSB loans for a full quarter, partially
offset by a decrease of 3 basis points in interest rates.
Interest expense was $5.5 million for the first
quarter of 2020, compared to $7.5 million for the first quarter of
2019 and $6.1 million for the fourth quarter of 2019. The decrease
from the first quarter of 2019 was primarily due to a decrease in
the interest rate paid on interest-bearing liabilities of 47 basis
points, partially offset by an increase of $127.5 million in
average interest-bearing liabilities. The decrease from the fourth
quarter of 2019 was primarily due to a decrease in the interest
rate paid on interest-bearing liabilities of 15 basis points,
partially offset by an increase of $101.5 million in average
interest-bearing liabilities in the first quarter of 2020. The
average cost of deposits was 65 basis points for the first quarter
of 2020, representing a 41 basis point decrease from the first
quarter of 2019 and a 11 basis point decrease from the fourth
quarter of 2019. The increase in average interest-bearing
liabilities and the decrease in the rate paid on deposits in the
first quarter of 2020 were primarily due to the WTSB acquisition as
well as a general decline in overall rates.
The net interest margin was 4.13% for the first
quarter of 2020, compared to 3.93% for the first quarter of 2019
and 4.03% for the fourth quarter of 2019.
Noninterest Income and Noninterest Expense
Noninterest income was $18.9 million for the
first quarter of 2020, compared to $12.1 million for the first
quarter of 2019 and $16.7 million for the fourth quarter of 2019.
The increase in noninterest income for the first quarter of 2020
compared to the first quarter of 2019 was primarily the result of
an increase of $3.9 million in mortgage banking activities revenue
as a result of an increase of $93.5 million in mortgage loan
originations. Additionally, there was a $2.3 million gain on sale
of securities in the first quarter of 2020. The increase from the
fourth quarter of 2019 was primarily the result of an increase of
$2.2 million in mortgage banking activities revenue as a result of
an increase of $28.2 million in mortgage loan originations and a
$2.3 million gain on sale of securities, partially offset by $1.5
million in annual profit-sharing bonuses related to crop insurance
activities recognized in the fourth quarter of 2019.
Noninterest expense was $34.0 million for the
first quarter of 2020, compared to $30.0 million for the first
quarter of 2019 and $31.7 million for the fourth quarter of 2019.
This increase in noninterest expense for the first quarter of 2020
compared to the first quarter of 2019 was primarily driven by a
$1.7 million increase in personnel expense, predominately related
to the WTSB acquisition and increased commissions paid on the
higher volume of mortgage loan originations. There was also an
increase in variable mortgage expenses, such as appraisal expenses,
due to the increased mortgage production during the quarter. Other
noninterest expenses also increased due to the WTSB acquisition,
including occupancy and other noninterest expenses for the branches
acquired and core deposit intangible amortization expense. The
increase from the fourth quarter of 2019 was primarily the result
of a full quarter of core expenses for our new Permian Basin
branches, higher commissions and other variable mortgage expenses
as a result of increased production, $331,000 in data conversion
expenses and $300,000 in computer equipment purchased in connection
with upgrading the equipment at the acquired branches as well as at
existing branches.
Loan Portfolio and Composition
Loans held for investment were $2.11 billion as
of March 31, 2020, compared to $2.14 billion as of December 31,
2019 and $1.92 billion as of March 31, 2019. The $34.8 million
decrease during the first quarter of 2020 as compared to the fourth
quarter of 2019 was primarily the result of $34.5 million in
seasonal agricultural production loan net paydowns. As of March 31,
2020, loans held for investment increased $193.6 million from March
31, 2019, attributable to the WTSB acquisition as well as organic
loan growth.
Agricultural production loans were $96.8 million
as of March 31, 2020, compared to $131.2 million as of December 31,
2019 and $107.3 million as of March 31, 2019.
Deposits and Borrowings
Deposits totaled $2.67 billion as of March 31,
2020, compared to $2.70 billion as of December 31, 2019 and $2.30
billion as of March 31, 2019. Deposits decreased $31.0 million, or
1.1%, in the first quarter of 2020 primarily as a result of some
outflows of balances acquired from WTSB, which had temporarily
increased in the fourth quarter of 2019. As of March 31, 2020,
deposits increased $360.9 million from March 31, 2019. This
increase is primarily as a result of the assumption of deposits
from the WTSB acquisition.
Noninterest-bearing deposits were $740.9 million
as of March 31, 2020, compared to $790.9 million as of December 31,
2019 and $497.6 million as of March 31, 2019. Noninterest-bearing
deposits represented 27.8%, 29.3%, and 21.6% of total deposits as
of March 31, 2020, December 31, 2019, and March 31, 2019,
respectively. The decrease in the first quarter of 2020 compared to
the fourth quarter of 2019 was primarily the result of some
outflows of balances acquired from WTSB, which had increased in the
fourth quarter of 2019. The increase in the first quarter of 2020
compared to the first quarter of 2019 is primarily as a result of
the assumption of deposits from the WTSB acquisition.
Asset Quality
The provision for loan losses recorded for the
first quarter of 2020 was $6.2 million, compared to $608,000 for
the first quarter of 2019 and $896,000 for the fourth quarter of
2019. The increase in the provision for loan losses in the first
quarter of 2020 compared to the prior quarters is a result of
economic effects from COVID-19 as well as the decline in oil and
gas prices. The full extent of the impact on the economy and the
Bank’s customers is unknown at this time. Accordingly, additional
provisions for loan losses may be necessary in future periods.
The allowance for loan losses to loans held for
investment was 1.38% as of March 31, 2020, compared to 1.13% as of
December 31, 2019 and 1.22% as of March 31, 2019.
The nonperforming assets to total assets ratio
as of March 31, 2020 was 0.28%, compared to 0.24% as of December
31, 2019 and 0.37% at March 31, 2019.
Annualized net charge-offs were 0.25% for the
first quarter of 2020, compared to 0.17% for the fourth quarter of
2019 and 0.07% for the first quarter of 2019.
Conference Call
South Plains will host a conference call to
discuss its first quarter 2020 financial results today, April 30,
2020 at 5:00 p.m., Eastern Time. Investors and analysts interested
in participating in the call are invited to dial 1-800-347-6311
(international callers please dial 1-646-828-8143) approximately 10
minutes prior to the start of the call. A live audio webcast of the
conference call will be available on the Company’s website at
https://www.spfi.bank/news-events/events.
A replay of the conference call will be
available within two hours of the conclusion of the call and can be
accessed on the investor section of the Company’s website as well
as by dialing 1-844-512-2921 (international callers please dial
1-412-317-6671). The pin to access the telephone replay is 8126557.
The replay will be available until May 14, 2020.
About South Plains Financial, Inc.
South Plains is the bank holding company for
City Bank, a Texas state-chartered bank headquartered in Lubbock,
Texas. City Bank is one of the largest independent banks in West
Texas and has additional banking operations in the Dallas, El Paso,
Greater Houston, the Permian Basin, and College Station Texas
markets, and the Ruidoso and Eastern New Mexico markets. South
Plains provides a wide range of commercial and consumer financial
services to small and medium-sized businesses and individuals in
its market areas. Its principal business activities include
commercial and retail banking, along with insurance, investment,
trust and mortgage services. Please visit https://www.spfi.bank for
more information.
Non-GAAP Financial Measures
Some of the financial measures included in this
press release are not measures of financial performance recognized
in accordance with generally accepted accounting principles in the
United States (“GAAP”). These non-GAAP financial measures include
Tangible Book Value Per Common Share and Tangible Common Equity to
Tangible Assets. The Company believes these non-GAAP financial
measures provide both management and investors a more complete
understanding of the Company’s financial position and performance.
These non-GAAP financial measures are supplemental and are not a
substitute for any analysis based on GAAP financial measures.
We classify a financial measure as being a
non-GAAP financial measure if that financial measure excludes or
includes amounts, or is subject to adjustments that have the effect
of excluding or including amounts, that are included or excluded,
as the case may be, in the most directly comparable measure
calculated and presented in accordance with GAAP as in effect from
time to time in the United States in our statements of income,
balance sheets or statements of cash flows. Not all companies use
the same calculation of these measures; therefore, this
presentation may not be comparable to other similarly titled
measures as presented by other companies.
A reconciliation of non-GAAP financial measures
to GAAP financial measures is provided at the end of this press
release.
Available Information
The Company routinely posts important
information for investors on its web site (under www.spfi.bank
and, more specifically, under the News & Events tab
at www.spfi.bank/news-events/press-releases). The Company
intends to use its web site as a means of disclosing material
non-public information and for complying with its disclosure
obligations under SEC Regulation FD (Fair Disclosure)
promulgated by the U.S. Securities and Exchange Commission (the
“SEC”). Accordingly, investors should monitor the Company’s web
site, in addition to following the Company’s press releases, SEC
filings, public conference calls, presentations and webcasts.
The information contained on, or that may be
accessed through, the Company’s web site is not incorporated by
reference into, and is not a part of, this document.
Forward Looking Statements
This press release contains forward-looking
statements. These forward-looking statements reflect South Plains’
current views with respect to, among other things, the ongoing
COVID-19 pandemic and other future events. Any statements about
South Plains’ expectations, beliefs, plans, predictions, forecasts,
objectives, assumptions or future events or performance are not
historical facts and may be forward-looking. These statements are
often, but not always, made through the use of words or phrases
such as “anticipate,” “believes,” “can,” “could,” “may,”
“predicts,” “potential,” “should,” “will,” “estimate,” “plans,”
“projects,” “continuing,” “ongoing,” “expects,” “intends” and
similar words or phrases. South Plains cautions that the
forward-looking statements in this press release are based largely
on South Plains’ expectations and are subject to a number of known
and unknown risks and uncertainties that are subject to change
based on factors which are, in many instances, beyond South Plains’
control. Factors that could cause such changes include, but are not
limited to, general economic conditions, the impact of the COVID-19
pandemic, changes in interest rates, regulatory considerations,
competition and market expansion opportunities, changes in
non-interest expenditures or in the anticipated benefits of such
expenditures, and changes in applicable laws and regulations.
Additional information regarding these risks and uncertainties to
which South Plains’ business and future financial performance are
subject is contained in South Plains’ Annual Report on Form 10-K
for the fiscal year ended December 31, 2019 filed with the SEC on
March 25, 2020, and other documents South Plains files with the SEC
from time to time. South Plains urges readers of this press release
to review the “Risk Factors” section of that Annual Report on Form
10-K and the “Risk Factors” section of other documents South Plains
files with the SEC from time to time. Actual results, performance
or achievements could differ materially from those contemplated,
expressed, or implied by the forward-looking statements due to
additional risks and uncertainties of which South Plains is not
currently aware or which it does not currently view as, but in the
future may become, material to its business or operating results.
Due to these and other possible uncertainties and risks, readers
are cautioned not to place undue reliance on the forward-looking
statements contained in this press release. Any forward-looking
statements presented herein are made only as of the date of this
press release, and South Plains does not undertake any obligation
to update or revise any forward-looking statements to reflect
changes in assumptions, new information, the occurrence of
unanticipated events, or otherwise, except as required by law.
Contact: |
Mikella Newsom, Chief Risk Officer and Secretary |
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(866) 771-3347 |
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investors@city.bank |
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Source: South
Plains Financial, Inc. |
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South Plains Financial, Inc. |
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Consolidated Financial Highlights -
(Unaudited) |
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(Dollars in thousands, except share data) |
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As of and for the quarter ended |
|
March 31, 2020 |
December 31, 2019 |
September 30, 2019 |
June 30, 2019 |
March 31, 2019 |
Selected Income Statement Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
$ |
35,737 |
|
$ |
34,764 |
|
$ |
33,665 |
|
$ |
32,509 |
|
$ |
32,004 |
|
Interest expense |
|
5,538 |
|
|
6,140 |
|
|
7,097 |
|
|
7,672 |
|
|
7,458 |
|
Net interest income |
|
30,199 |
|
|
28,624 |
|
|
26,568 |
|
|
24,837 |
|
|
24,546 |
|
Provision for loan losses |
|
6,234 |
|
|
896 |
|
|
420 |
|
|
875 |
|
|
608 |
|
Noninterest income |
|
18,875 |
|
|
16,740 |
|
|
14,115 |
|
|
13,703 |
|
|
12,075 |
|
Noninterest expense |
|
34,011 |
|
|
31,714 |
|
|
30,028 |
|
|
29,930 |
|
|
30,036 |
|
Income tax expense |
|
1,746 |
|
|
2,645 |
|
|
1,977 |
|
|
1,655 |
|
|
1,204 |
|
Net income |
|
7,083 |
|
|
10,109 |
|
|
8,258 |
|
|
6,080 |
|
|
4,773 |
|
Per Share Data (Common Stock): |
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|
Net earnings, basic |
|
0.39 |
|
|
0.56 |
|
|
0.46 |
|
|
0.37 |
|
|
0.32 |
|
Net earnings, diluted |
|
0.38 |
|
|
0.55 |
|
|
0.45 |
|
|
0.37 |
|
|
0.32 |
|
Cash dividends declared and paid |
|
0.03 |
|
|
0.03 |
|
|
0.03 |
|
|
- |
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- |
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Book value |
|
18.10 |
|
|
16.98 |
|
|
16.61 |
|
|
16.19 |
|
|
14.80 |
|
Tangible book value |
|
16.54 |
|
|
15.46 |
|
|
16.47 |
|
|
16.19 |
|
|
14.80 |
|
Weighted average shares outstanding, basic |
|
18,043,105 |
|
|
18,010,065 |
|
|
17,985,429 |
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|
16,459,366 |
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|
14,771,520 |
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Weighted average shares outstanding, dilutive |
|
18,461,922 |
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|
18,415,656 |
|
|
18,363,033 |
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|
16,563,543 |
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|
14,771,558 |
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Shares outstanding at end of period |
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18,056,014 |
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|
18,036,115 |
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|
18,004,323 |
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17,978,520 |
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14,771,520 |
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Selected Period End Balance Sheet Data: |
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Cash and cash equivalents |
|
136,062 |
|
|
158,099 |
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|
244,645 |
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|
408,116 |
|
|
339,410 |
|
Investment securities |
|
734,791 |
|
|
707,650 |
|
|
401,335 |
|
|
263,564 |
|
|
339,051 |
|
Total loans held for investment |
|
2,108,805 |
|
|
2,143,623 |
|
|
1,962,609 |
|
|
1,935,653 |
|
|
1,915,183 |
|
Allowance for loan losses |
|
29,074 |
|
|
24,197 |
|
|
24,176 |
|
|
24,171 |
|
|
23,381 |
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Total assets |
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3,216,563 |
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3,237,167 |
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2,795,582 |
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2,777,170 |
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2,745,997 |
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Interest-bearing deposits |
|
1,924,902 |
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|
1,905,936 |
|
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1,729,741 |
|
|
1,768,475 |
|
|
1,807,363 |
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Noninterest-bearing deposits |
|
740,946 |
|
|
790,921 |
|
|
556,233 |
|
|
513,383 |
|
|
497,566 |
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Total deposits |
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2,665,848 |
|
|
2,696,857 |
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|
2,285,974 |
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|
2,281,858 |
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|
2,304,929 |
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Borrowings |
|
185,265 |
|
|
205,030 |
|
|
177,720 |
|
|
176,675 |
|
|
186,780 |
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Total stockholders' equity |
|
326,890 |
|
|
306,182 |
|
|
299,027 |
|
|
291,113 |
|
|
218,565 |
|
Summary Performance Ratios: |
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Return on average assets |
|
0.89 |
% |
|
1.32 |
% |
|
1.18 |
% |
|
0.89 |
% |
|
0.71 |
% |
Return on average equity |
|
9.00 |
% |
|
13.25 |
% |
|
11.10 |
% |
|
9.57 |
% |
|
8.98 |
% |
Net interest margin (1) |
|
4.13 |
% |
|
4.03 |
% |
|
4.07 |
% |
|
3.88 |
% |
|
3.93 |
% |
Yield on loans |
|
5.76 |
% |
|
5.79 |
% |
|
5.91 |
% |
|
5.90 |
% |
|
5.84 |
% |
Cost of interest-bearing deposits |
|
0.91 |
% |
|
1.06 |
% |
|
1.30 |
% |
|
1.39 |
% |
|
1.34 |
% |
Efficiency ratio |
|
69.10 |
% |
|
69.71 |
% |
|
73.62 |
% |
|
77.46 |
% |
|
81.79 |
% |
Summary Credit Quality Data: |
|
|
|
|
|
Nonperforming loans |
|
7,029 |
|
|
6,045 |
|
|
6,456 |
|
|
7,946 |
|
|
7,937 |
|
Nonperforming loans to total loans held for investment |
|
0.33 |
% |
|
0.28 |
% |
|
0.33 |
% |
|
0.41 |
% |
|
0.41 |
% |
Other real estate owned |
|
1,944 |
|
|
1,883 |
|
|
2,296 |
|
|
2,305 |
|
|
2,340 |
|
Nonperforming assets to total assets |
|
0.28 |
% |
|
0.24 |
% |
|
0.31 |
% |
|
0.37 |
% |
|
0.37 |
% |
Allowance for loan losses to total loans held for investment |
|
1.38 |
% |
|
1.13 |
% |
|
1.23 |
% |
|
1.25 |
% |
|
1.22 |
% |
Net charge-offs to average loans outstanding (annualized) |
|
0.25 |
% |
|
0.17 |
% |
|
0.08 |
% |
|
0.02 |
% |
|
0.07 |
% |
|
As of and for the quarter ended |
|
March 31, 2020 |
December 31, 2019 |
September 30, 2019 |
June 30, 2019 |
March 31, 2019 |
Capital Ratios: |
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity to total assets |
10.16 |
% |
9.46 |
% |
10.70 |
% |
10.48 |
% |
7.96 |
% |
Tangible common equity to tangible assets |
9.37 |
% |
8.69 |
% |
10.62 |
% |
10.48 |
% |
7.96 |
% |
Common equity tier 1 to risk-weighted assets |
11.24 |
% |
11.06 |
% |
13.10 |
% |
13.31 |
% |
10.27 |
% |
Tier 1 capital to average assets |
10.34 |
% |
10.74 |
% |
12.17 |
% |
12.10 |
% |
9.70 |
% |
Total capital to risk-weighted assets |
15.23 |
% |
14.88 |
% |
17.38 |
% |
17.75 |
% |
14.74 |
% |
|
|
|
|
|
|
(1) - Net interest margin is calculated as the annual net interest
income, on a fully tax-equivalent basis, divided by
average interest-earning assets. |
|
|
|
|
|
|
South Plains Financial, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances and Yields - (Unaudited) |
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
March 31, 2020 |
|
March 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
|
|
|
|
Interest |
|
|
|
|
Average |
|
Income |
|
|
|
Average |
|
Income |
|
|
|
|
Balance |
|
Expense |
|
Yield |
|
Balance |
|
Expense |
|
Yield |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1) |
|
$ |
2,167,015 |
|
$ |
31,055 |
|
5.76 |
% |
|
$ |
1,955,783 |
|
$ |
28,141 |
|
5.84 |
% |
Debt securities - taxable |
|
|
560,677 |
|
|
3,592 |
|
2.58 |
% |
|
|
309,670 |
|
|
2,109 |
|
2.76 |
% |
Debt securities - nontaxable |
|
|
78,933 |
|
|
501 |
|
2.55 |
% |
|
|
32,172 |
|
|
286 |
|
3.61 |
% |
Other interest-bearing assets |
|
|
151,133 |
|
|
734 |
|
1.95 |
% |
|
|
243,610 |
|
|
1,571 |
|
2.62 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-earning assets |
|
|
2,957,758 |
|
|
35,882 |
|
4.88 |
% |
|
|
2,541,235 |
|
|
32,107 |
|
5.12 |
% |
Noninterest-earning assets |
|
|
250,659 |
|
|
|
|
|
|
176,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
3,208,417 |
|
|
|
|
|
$ |
2,717,672 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities & stockholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
NOW, Savings, MMA's |
|
$ |
1,545,937 |
|
|
2,656 |
|
0.69 |
% |
|
$ |
1,470,199 |
|
|
4,534 |
|
1.25 |
% |
Time deposits |
|
|
353,471 |
|
|
1,627 |
|
1.85 |
% |
|
|
309,687 |
|
|
1,355 |
|
1.77 |
% |
Short-term borrowings |
|
|
30,744 |
|
|
93 |
|
1.22 |
% |
|
|
22,722 |
|
|
111 |
|
1.98 |
% |
Notes payable & other long-term borrowings |
|
|
96,209 |
|
|
357 |
|
1.49 |
% |
|
|
95,000 |
|
|
539 |
|
2.30 |
% |
Subordinated debt securities |
|
|
26,472 |
|
|
404 |
|
6.14 |
% |
|
|
27,727 |
|
|
406 |
|
5.94 |
% |
Junior subordinated deferrable interest debentures |
|
|
46,393 |
|
|
401 |
|
3.48 |
% |
|
|
46,393 |
|
|
513 |
|
4.48 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities |
|
|
2,099,226 |
|
|
5,538 |
|
1.06 |
% |
|
|
1,971,728 |
|
|
7,458 |
|
1.53 |
% |
Demand deposits |
|
|
765,637 |
|
|
|
|
|
|
501,120 |
|
|
|
|
Other liabilities |
|
|
27,152 |
|
|
|
|
|
|
29,153 |
|
|
|
|
Stockholders' equity |
|
|
316,402 |
|
|
|
|
|
|
215,671 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities & stockholders' equity |
|
$ |
3,208,417 |
|
|
|
|
|
$ |
2,717,672 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
$ |
30,344 |
|
|
|
|
|
$ |
24,649 |
|
|
Net interest margin (2) |
|
|
|
|
|
4.13 |
% |
|
|
|
|
|
3.93 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Average loan balances include nonaccrual loans and loans held
for sale. |
|
|
|
|
|
|
(2) Net interest margin is calculated as the annualized net income,
on a fully tax-equivalent basis, divided by average
interest-earning assets. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South Plains Financial, Inc. |
|
|
|
|
Consolidated Balance Sheets |
|
|
|
|
(Unaudited) |
|
|
|
|
(Dollars in thousands) |
|
|
|
|
|
|
As of |
|
|
March 31, 2020 |
|
December 31, 2019 |
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
Cash and due from banks |
|
$ |
46,883 |
|
|
$ |
56,246 |
|
Interest-bearing deposits in banks |
|
|
89,179 |
|
|
|
101,853 |
|
Investment securities |
|
|
734,791 |
|
|
|
707,650 |
|
Loans held for sale |
|
|
62,636 |
|
|
|
49,035 |
|
Loans held for investment |
|
|
2,108,805 |
|
|
|
2,143,623 |
|
Less: Allowance for loan losses |
|
|
(29,074 |
) |
|
|
(24,197 |
) |
Net loans held for investment |
|
|
2,079,731 |
|
|
|
2,119,426 |
|
Premises and equipment, net |
|
|
61,829 |
|
|
|
61,873 |
|
Goodwill |
|
|
19,968 |
|
|
|
18,757 |
|
Intangible assets |
|
|
8,213 |
|
|
|
8,632 |
|
Other assets |
|
|
113,333 |
|
|
|
113,695 |
|
Total assets |
|
$ |
3,216,563 |
|
|
$ |
3,237,167 |
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
Liabilities |
|
|
|
|
Noninterest bearing deposits |
|
$ |
740,946 |
|
|
$ |
790,921 |
|
Interest-bearing deposits |
|
|
1,924,902 |
|
|
|
1,905,936 |
|
Total deposits |
|
|
2,665,848 |
|
|
|
2,696,857 |
|
Other borrowings |
|
|
112,400 |
|
|
|
132,165 |
|
Subordinated debt securities |
|
|
26,472 |
|
|
|
26,472 |
|
Trust preferred subordinated debentures |
|
|
46,393 |
|
|
|
46,393 |
|
Other liabilities |
|
|
38,560 |
|
|
|
29,098 |
|
Total liabilities |
|
|
2,889,673 |
|
|
|
2,930,985 |
|
Stockholders' Equity |
|
|
|
|
Common stock |
|
|
18,056 |
|
|
|
18,036 |
|
Additional paid-in capital |
|
|
140,699 |
|
|
|
140,492 |
|
Retained earnings |
|
|
153,238 |
|
|
|
146,696 |
|
Accumulated other comprehensive income (loss) |
|
|
14,897 |
|
|
|
958 |
|
Total stockholders' equity |
|
|
326,890 |
|
|
|
306,182 |
|
Total liabilities and stockholders' equity |
|
$ |
3,216,563 |
|
|
$ |
3,237,167 |
|
|
|
|
|
|
South Plains Financial, Inc. |
|
|
|
Consolidated Statements of Income |
|
|
|
(Unaudited) |
|
|
|
(Dollars in thousands) |
|
|
|
|
Three Months Ended |
|
March 31, 2020 |
|
March 31, 2019 |
|
|
|
|
|
|
Interest income: |
|
|
|
|
|
Loans, including fees |
$ |
31,015 |
|
$ |
28,098 |
Other |
|
4,722 |
|
|
3,906 |
Total Interest income |
|
35,737 |
|
|
32,004 |
Interest expense: |
|
|
|
|
|
Deposits |
|
4,283 |
|
|
5,889 |
Subordinated debt securities |
|
404 |
|
|
406 |
Trust preferred subordinated debentures |
|
401 |
|
|
513 |
Other |
|
450 |
|
|
650 |
Total Interest expense |
|
5,538 |
|
|
7,458 |
Net interest income |
|
30,199 |
|
|
24,546 |
Provision for loan losses |
|
6,234 |
|
|
608 |
Net interest income after provision for loan losses |
|
23,965 |
|
|
23,938 |
Noninterest income: |
|
|
|
|
|
Service charges on deposits |
|
1,983 |
|
|
1,905 |
Income from insurance activities |
|
1,159 |
|
|
1,750 |
Mortgage banking activities |
|
8,753 |
|
|
4,866 |
Bank card services and interchange fees |
|
2,238 |
|
|
2,010 |
Net gain on sale of securities |
|
2,318 |
|
|
- |
Other |
|
2,424 |
|
|
1,544 |
Total Noninterest income |
|
18,875 |
|
|
12,075 |
Noninterest expense: |
|
|
|
|
|
Salaries and employee benefits |
|
20,810 |
|
|
19,125 |
Net occupancy expense |
|
3,600 |
|
|
3,407 |
Professional services |
|
1,572 |
|
|
1,706 |
Marketing and development |
|
768 |
|
|
717 |
Other |
|
7,261 |
|
|
5,081 |
Total noninterest expense |
|
34,011 |
|
|
30,036 |
Income before income taxes |
|
8,829 |
|
|
5,977 |
Income tax expense |
|
1,746 |
|
|
1,204 |
Net income |
$ |
7,083 |
|
$ |
4,773 |
|
|
|
|
South Plains Financial, Inc. |
|
|
|
Loan Composition |
|
|
|
(Unaudited) |
|
|
|
(Dollars in thousands) |
|
|
|
|
As of |
|
March 31, 2020 |
|
December 31, 2019 |
|
|
|
|
|
|
Loans: |
|
|
|
Commercial Real Estate |
$ |
641,739 |
|
$ |
658,195 |
Commercial - Specialized |
|
303,116 |
|
|
309,505 |
Commercial - General |
|
424,750 |
|
|
441,398 |
Consumer: |
|
|
|
1-4 Family Residential |
|
356,540 |
|
|
362,796 |
Auto Loans |
|
212,912 |
|
|
215,209 |
Other Consumer |
|
72,162 |
|
|
74,000 |
Construction |
|
97,586 |
|
|
82,520 |
Total loans held for investment |
$ |
2,108,805 |
|
$ |
2,143,623 |
|
|
|
|
South Plains Financial, Inc. |
|
|
|
Deposit Composition |
|
|
|
(Unaudited) |
|
|
|
(Dollars in thousands) |
|
|
|
|
As of |
|
March 31, 2020 |
|
December 31, 2019 |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
Noninterest-bearing demand deposits |
$ |
740,946 |
|
$ |
790,921 |
NOW & other transaction accounts |
|
311,999 |
|
|
318,379 |
MMDA & other savings |
|
1,274,141 |
|
|
1,231,534 |
Time deposits |
|
338,762 |
|
|
356,023 |
Total deposits |
$ |
2,665,848 |
|
$ |
2,696,857 |
|
|
|
|
South Plains Financial, Inc. |
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures |
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
(Dollars in thousands) |
|
|
|
|
|
|
As of and for the quarter ended |
|
March 31, 2020 |
December 31, 2019 |
September 30, 2019 |
June 30, 2019 |
March 31, 2019 |
Efficiency Ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense |
$ |
34,011 |
|
$ |
31,714 |
|
$ |
30,028 |
|
$ |
29,930 |
|
$ |
30,036 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
30,199 |
|
|
28,624 |
|
|
26,568 |
|
|
24,837 |
|
|
24,546 |
|
Tax equivalent yield adjustment |
|
145 |
|
|
133 |
|
|
103 |
|
|
101 |
|
|
103 |
|
Noninterest income |
|
18,875 |
|
|
16,740 |
|
|
14,115 |
|
|
13,703 |
|
|
12,075 |
|
Total income |
|
49,219 |
|
|
45,497 |
|
|
40,786 |
|
|
38,641 |
|
|
36,724 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
|
69.10 |
% |
|
69.71 |
% |
|
73.62 |
% |
|
77.46 |
% |
|
81.79 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense |
$ |
34,011 |
|
$ |
31,714 |
|
$ |
30,028 |
|
$ |
29,930 |
|
$ |
30,036 |
|
Less: net loss on sale of securities |
|
- |
|
|
(27 |
) |
|
- |
|
|
- |
|
|
- |
|
Adjusted noninterest expense |
|
34,011 |
|
|
31,687 |
|
|
30,028 |
|
|
29,930 |
|
|
30,036 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income |
|
49,219 |
|
|
45,497 |
|
|
40,786 |
|
|
38,641 |
|
|
36,724 |
|
Less: net gain on sale of securities |
|
(2,318 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Adjusted total income |
|
46,901 |
|
|
45,497 |
|
|
40,786 |
|
|
38,641 |
|
|
36,724 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted efficiency ratio |
|
72.52 |
% |
|
69.65 |
% |
|
73.62 |
% |
|
77.46 |
% |
|
81.79 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South Plains Financial, Inc. |
|
|
|
Reconciliation of Non-GAAP Financial Measures |
|
|
|
(Unaudited) |
|
|
|
(Dollars in thousands) |
|
|
|
|
As of |
|
March 31, 2020 |
|
December 31, 2019 |
Tangible common equity |
|
|
|
Total common stockholders' equity |
$ |
326,890 |
|
|
$ |
306,182 |
|
Less: goodwill and other intangibles |
|
(28,181 |
) |
|
|
(27,389 |
) |
|
|
|
|
Tangible common equity |
$ |
298,709 |
|
|
$ |
278,793 |
|
|
|
|
|
Tangible assets |
|
|
|
Total assets |
$ |
3,216,563 |
|
|
$ |
3,237,167 |
|
Less: goodwill and other intangibles |
|
(28,181 |
) |
|
|
(27,389 |
) |
|
|
|
|
Tangible assets |
$ |
3,188,382 |
|
|
$ |
3,209,778 |
|
|
|
|
|
Shares outstanding |
|
18,056,014 |
|
|
|
18,036,115 |
|
|
|
|
|
Total stockholders' equity to total assets |
|
10.16 |
% |
|
|
9.46 |
% |
Tangible common equity to tangible assets |
|
9.37 |
% |
|
|
8.69 |
% |
Book value per share |
$ |
18.10 |
|
|
$ |
16.98 |
|
Tangible book value per share |
$ |
16.54 |
|
|
$ |
15.46 |
|
Grafico Azioni South Plains Financial (NASDAQ:SPFI)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni South Plains Financial (NASDAQ:SPFI)
Storico
Da Lug 2023 a Lug 2024