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
June 30, 2022.
Second Quarter 2022 Highlights
- Net income for the second quarter of 2022 was $15.9 million,
compared to $14.3 million for the first quarter of 2022 and $13.7
million for the second quarter of 2021.
- Diluted earnings per share for the second quarter of 2022 was
$0.88, compared to $0.78 for the first quarter of 2022 and $0.74
for the second quarter of 2021.
- Average cost of deposits for the second quarter of 2022 was 27
basis points, compared to 23 basis points for the first quarter of
2022 and 27 basis points for the second quarter of 2021.
- The Company did not record a provision for loan losses in the
second quarter of 2022, compared to negative provisions for loan
losses of $2.1 million for the first quarter of 2022 and $2.0
million for the second quarter of 2021.
- Loans held for investment grew $126.9 million, or 20.8%
annualized, during the second quarter of 2022 as compared to March
31, 2022.
- Nonperforming assets to total assets were 0.20% at June 30,
2022, compared to 0.33% at March 31, 2022 and 0.37% at June 30,
2021.
- Return on average assets for the second quarter of 2022 was
1.61% annualized, compared to 1.47% annualized for the first
quarter of 2022 and 1.46% annualized for the second quarter of
2021.
- Tangible book value (non-GAAP) per share was $19.49 as of June
30, 2022, compared to $20.49 per share as of March 31, 2022 and
$20.35 per share as of June 30, 2021.
Curtis Griffith, South Plains’ Chairman and
Chief Executive Officer, commented, “Our second quarter results are
a clear validation of our strategy designed to grow our commercial
lending team in our major markets of Dallas, Houston and El Paso as
we strive to put our excess liquidity to work in higher yielding
loans while deliberately managing the decline in our mortgage
business as we focus on growing the earnings power of the Company.
During the quarter, we grew our loan portfolio 20.8% annualized
with strength coming from commercial real estate loans in our major
markets. We continue to benefit from our newly-hired commercial
lenders who are building their loan portfolios more quickly than
anticipated combined with our existing team’s continued focus on
organic growth. Importantly, we believe our mortgage banking
revenues have largely bottomed. This represents a true inflection
point in our business as the financial benefits of our strong
second quarter loan growth will drive improved earnings power as we
look to the second half of the year and which, we believe, is not
currently reflected in our share price. Given our view that our
shares are trading below intrinsic value, we increased the pace of
our share repurchases in the second quarter having repurchased
approximately 257,000 shares as compared to 106,000 shares in the
first quarter of 2022.”
Results of Operations, Quarter Ended June 30,
2022
Net Interest Income
Net interest income was $37.1 million for the
second quarter of 2022, compared to $29.9 million for the first
quarter of 2022 and $29.6 million for the second quarter of 2021.
Net interest margin, calculated on a tax-equivalent basis, was
4.02% for the second quarter of 2022, compared to 3.33% for the
first quarter of 2022 and 3.42% for the second quarter of 2021. The
average yield on loans was 5.57% for the second quarter of 2022,
compared to 4.80% for the first quarter of 2022 and 4.97% for the
second quarter of 2021. The average cost of deposits was 27 basis
points for the second quarter of 2022, which is 4 basis points
higher than the first quarter of 2022 and consistent with the
second quarter of 2021.
Interest income was $40.8 million for the second
quarter of 2022, compared to $33.1 million for the first quarter of
2022 and $33.0 million for the second quarter of 2021. Interest
income increased $7.7 million in the second quarter of 2022 from
the first quarter of 2022, which was comprised of increases of $6.1
million in loan interest income and $1.6 million in interest income
from securities and other interest-earning assets. The increase in
loan interest income was primarily due to an increase of $66.7
million in average loans outstanding, the rising interest rate
environment, and $4.4 million of interest income received related
to four credits for the recovery of interest on previously
charged-off credits, purchase discount principal recovery, and
prepayment penalties during the second quarter of 2022. Interest
and fees on Small Business Administration (“SBA”) Paycheck
Protection Program (“PPP”) loans was $898 thousand during the
second quarter of 2022. Excluding the $4.4 million of large loan
recoveries and prepayment penalties, the yield on loans was 4.88%
during the second quarter of 2022, an increase of 8 basis points
from the first quarter of 2022, while net interest margin, on a
tax-equivalent basis, was 3.54% during the second quarter of 2022,
compared to 3.33% for the first quarter of 2022. The increase in
interest income on securities and other interest-earning assets was
primarily due to securities purchases and rising rates. Interest
income increased $7.7 million in the second quarter of 2022
compared to the second quarter of 2021. This increase was primarily
due to the large loan recoveries and prepayment penalties noted
above and an increase of average non-PPP loans of $319.3 million,
partially offset by a decrease of $1.4 million of PPP loan interest
and fees. During the second quarter of 2022, the Company recognized
$854 thousand in deferred PPP-related SBA fees. At June 30, 2022,
the Company had $401 thousand of deferred PPP fees that have not
been accreted to income, the majority of which are expected to be
recognized as PPP loans continue to be forgiven by the SBA over the
next several quarters.
Interest expense was $3.6 million for the second
quarter of 2022, compared to $3.1 million for the first quarter of
2022 and $3.4 million for the second quarter of 2021. Interest
expense increased $514 thousand compared to the first quarter of
2022 primarily as a result of rising interest rates on
interest-bearing liabilities, with the increase being primarily
comprised of interest expense on deposits. Interest expense
increased $224 thousand compared to the second quarter of 2021,
with interest rates paid on interest-bearing deposits remaining
consistent.
Noninterest Income and Noninterest Expense
Noninterest income was $18.8 million for the
second quarter of 2022, compared to $23.7 million for the first
quarter of 2022 and $22.3 million for the second quarter of 2021.
The decrease from the first quarter of 2022 was primarily due to a
decrease of $5.0 million in mortgage banking activities revenue.
This decrease in mortgage banking revenues was mainly the result of
the planned moderation of mortgage loan originations to more
historical levels as mortgage loan originations declined $28.0
million, or 12%, partially offset by a $1.2 million positive fair
value adjustment to the Company’s mortgage servicing rights
portfolio. Additionally, there was increased income again during
the second quarter of 2022 from an investment in a Small Business
Investment Company (“SBIC”) of $940 thousand, consistent with $869
thousand in the first quarter of 2022. The decrease in noninterest
income for the second quarter of 2022 as compared to the second
quarter of 2021 was primarily due to a decline of $5.0 million in
mortgage banking activities revenue. This decrease was partially
offset by the growth in bank card services and interchange fees,
income from insurance activities, and the increased SBIC income
noted above.
Noninterest expense was $36.0 million for the
second quarter of 2022, compared to $37.9 million for the first
quarter of 2022 and $36.8 million for the second quarter of 2021.
The decrease from the first quarter of 2022 was primarily the
result of a decrease of $1.3 million in mortgage commissions
expense and related supporting personnel expense from the decline
in mortgage loan originations, partially offset by higher costs for
new hires in commercial lending and incentive-based compensation
related to strong results during the quarter. Additionally, there
was a decrease of $1.2 million in all other noninterest expenses,
primarily from the decrease in non-personnel variable
mortgage-based expenses and $362 thousand in loss on fixed asset
disposals during the first quarter of 2022, partially offset by a
$242 thousand increase in legal expenses. The decrease in
noninterest expense for the second quarter of 2022 as compared to
the second quarter of 2021 was primarily driven by lower mortgage
commissions and other variable mortgage-based expenses due to the
reduction in mortgage loan originations, partially offset by
additional commercial lenders hired as part of a planned
initiative, and an increase of $1.1 million in legal expenses.
Loan Portfolio and Composition
Loans held for investment were $2.58 billion as
of June 30, 2022, compared to $2.45 billion as of March 31, 2022
and $2.30 billion as of June 30, 2021. The $126.9 million, or 20.8%
annualized, increase during the second quarter of 2022 as compared
to the first quarter of 2022 was primarily the result of organic
net loan growth of $148.2 million, partially offset by a decrease
due to SBA forgiveness and repayments of $21.3 million in PPP loans
during the second quarter of 2022. The organic loan growth remained
relationship-focused and occurred primarily in commercial real
estate loans, residential mortgage loans, and consumer auto loans.
As of June 30, 2022, loans held for investment increased $277.0
million, or 12.0% year over year, from June 30, 2021, attributable
to strong organic loan growth, partially offset by SBA forgiveness
or repayments of $107.1 million on PPP loans.
Agricultural production loans were $88.8 million
as of June 30, 2022, compared to $67.4 million as of March 31, 2022
and $96.2 million as of June 30, 2021. The increase of $21.4
million from the first quarter of 2022 is due to typical seasonal
funding of these agricultural production loans.
Deposits and Borrowings
Deposits totaled $3.43 billion as of June 30,
2022, compared to $3.45 billion as of March 31, 2022 and $3.16
billion as of June 30, 2021. Deposits decreased by $24.3 million,
or 2.8%, in the second quarter of 2022 from March 31, 2022,
primarily as a result of large tax payments made during the
quarter. As of June 30, 2022, deposits increased $267.3 million, or
8.5% year over year, from June 30, 2021. Noninterest-bearing
deposits were $1.20 billion as of June 30, 2022, compared to $1.13
billion as of March 31, 2022 and $998.9 million as of June 30,
2021. Noninterest-bearing deposits represented 34.9% of total
deposits as of June 30, 2022. The increase in deposits noted above
is primarily a result of organic growth.
Asset Quality
The Company did not record a provision for loan
losses in the second quarter of 2022, compared to negative
provisions for loan losses of $2.1 million in the first quarter of
2022 and $2.0 million for the second quarter of 2021. Overall, the
Company continued to experience improving credit metrics in the
loan portfolio during the second quarter of 2022, specifically in
the hotel segment. The improving credit metrics, offset by the
growth in the loan portfolio, resulted in no provision expense for
the quarter. Additionally, subsequent to June 30, 2022, the Company
experienced a full payoff of an approximately $10 million
classified hotel credit. Nevertheless, there is continued
uncertainty about future economic conditions due to the rising
interest rate environment and persistent high inflation levels, and
additional or reversal provisions for loan losses may be necessary
in future periods.
The ratio of allowance for loan losses to loans
held for investment was 1.54% as of June 30, 2022, compared to
1.62% as of March 31, 2022 and 1.87% as of June 30, 2021.
The ratio of nonperforming assets to total
assets as of June 30, 2022 was 0.20%, compared to 0.33% as of March
31, 2022 and 0.37% at June 30, 2021. Annualized net charge-offs
were (0.02)% for the second quarter of 2022, compared to 0.06% for
the first quarter of 2022 and 0.01% for the second quarter of
2021.
Capital
Book value per share decreased to $20.90 at June
30, 2022, compared to $21.90 at March 31, 2022. The decline was
mainly driven by a $30.5 million dollar decrease in accumulated
other comprehensive income (“AOCI”), partially offset by an
increase of $14.0 million of net income after dividends paid. The
decrease in AOCI was attributed to the decline in fair value of our
available for sale securities and fair value hedges, net of tax, as
a result of the rising interest rate environment.
Conference Call
South Plains will host a conference call to
discuss its second quarter 2022 financial results today, July 22,
2022, at 11:00 a.m., Eastern Time. Investors and analysts
interested in participating in the call are invited to dial
1-877-407-9716 (international callers please dial 1-201-493-6779)
approximately 10 minutes prior to the start of the call. A live
audio webcast of the conference call and conference materials 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
13730416. The replay will be available until August 5, 2022.
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, New Mexico market. 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, Tangible Common Equity to
Tangible Assets, and Pre-Tax, Pre-Provision Income. 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 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 within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements reflect South
Plains’ current views with respect to 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 extent of the impact
of the COVID-19 pandemic (and any current or future variants
thereof) on our customers, changes in market interest rates, the
persistence of the inflationary environment in the United States
and our market areas, 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’ most recent Annual Report on Form 10-K
and Quarterly Reports on Form 10-Q on file with the SEC, 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 our most recent Annual Report on Form 10-K, as
well as the “Risk Factors” section of other documents South Plains
files or furnishes with the SEC from time to time, which are
available on the SEC’s website, www.sec.gov. 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, the Company can give no assurance that the results
contemplated in the forward-looking statements will be realized and
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. All
forward-looking statements, express or implied, included in the
press release are qualified in their entirety by this cautionary
statement.
Contact: |
Mikella Newsom, Chief Risk Officer and Secretary |
|
(866) 771-3347 |
|
investors@city.bank |
Source: South Plains Financial, Inc.
South Plains Financial,
Inc.Consolidated Financial Highlights -
(Unaudited)(Dollars in thousands, except share
data)
|
As of and for the quarter ended |
|
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
|
September 30,2021 |
|
June 30,2021 |
Selected Income
Statement Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
$ |
40,752 |
|
|
$ |
33,080 |
|
|
$ |
34,600 |
|
|
$ |
34,438 |
|
|
$ |
33,016 |
|
Interest expense |
|
3,647 |
|
|
|
3,133 |
|
|
|
3,151 |
|
|
|
3,260 |
|
|
|
3,423 |
|
Net interest income |
|
37,105 |
|
|
|
29,947 |
|
|
|
31,449 |
|
|
|
31,178 |
|
|
|
29,593 |
|
Provision for loan losses |
|
- |
|
|
|
(2,085 |
) |
|
|
- |
|
|
|
- |
|
|
|
(2,007 |
) |
Noninterest income |
|
18,835 |
|
|
|
23,697 |
|
|
|
22,928 |
|
|
|
25,791 |
|
|
|
22,250 |
|
Noninterest expense |
|
36,003 |
|
|
|
37,924 |
|
|
|
36,132 |
|
|
|
38,063 |
|
|
|
36,778 |
|
Income tax expense |
|
4,001 |
|
|
|
3,527 |
|
|
|
3,631 |
|
|
|
3,716 |
|
|
|
3,422 |
|
Net income |
|
15,936 |
|
|
|
14,278 |
|
|
|
14,614 |
|
|
|
15,190 |
|
|
|
13,650 |
|
Per Share Data (Common Stock): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings, basic |
|
0.91 |
|
|
|
0.81 |
|
|
|
0.82 |
|
|
|
0.85 |
|
|
|
0.76 |
|
Net earnings, diluted |
|
0.88 |
|
|
|
0.78 |
|
|
|
0.79 |
|
|
|
0.82 |
|
|
|
0.74 |
|
Cash dividends declared and paid |
|
0.11 |
|
|
|
0.11 |
|
|
|
0.09 |
|
|
|
0.09 |
|
|
|
0.07 |
|
Book value |
|
20.90 |
|
|
|
21.90 |
|
|
|
22.94 |
|
|
|
22.34 |
|
|
|
21.81 |
|
Tangible book value (non-GAAP) |
|
19.49 |
|
|
|
20.49 |
|
|
|
21.51 |
|
|
|
20.90 |
|
|
|
20.35 |
|
Weighted average shares outstanding, basic |
|
17,490,706 |
|
|
|
17,716,136 |
|
|
|
17,777,542 |
|
|
|
17,931,174 |
|
|
|
18,039,553 |
|
Weighted average shares outstanding, dilutive |
|
18,020,548 |
|
|
|
18,392,397 |
|
|
|
18,433,038 |
|
|
|
18,463,697 |
|
|
|
18,553,050 |
|
Shares outstanding at end of period |
|
17,417,094 |
|
|
|
17,673,407 |
|
|
|
17,760,243 |
|
|
|
17,824,094 |
|
|
|
18,014,398 |
|
Selected Period End Balance Sheet Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
375,690 |
|
|
|
528,612 |
|
|
|
486,821 |
|
|
|
327,600 |
|
|
|
383,949 |
|
Investment securities |
|
763,943 |
|
|
|
793,404 |
|
|
|
724,504 |
|
|
|
752,562 |
|
|
|
777,613 |
|
Total loans held for investment |
|
2,580,493 |
|
|
|
2,453,631 |
|
|
|
2,437,577 |
|
|
|
2,429,041 |
|
|
|
2,303,462 |
|
Allowance for loan losses |
|
39,785 |
|
|
|
39,649 |
|
|
|
42,098 |
|
|
|
42,768 |
|
|
|
42,963 |
|
Total assets |
|
3,974,772 |
|
|
|
3,999,744 |
|
|
|
3,901,855 |
|
|
|
3,774,175 |
|
|
|
3,712,915 |
|
Interest-bearing deposits |
|
2,230,105 |
|
|
|
2,318,942 |
|
|
|
2,269,855 |
|
|
|
2,157,981 |
|
|
|
2,159,554 |
|
Noninterest-bearing deposits |
|
1,195,732 |
|
|
|
1,131,215 |
|
|
|
1,071,367 |
|
|
|
1,054,264 |
|
|
|
998,941 |
|
Total deposits |
|
3,425,837 |
|
|
|
3,450,157 |
|
|
|
3,341,222 |
|
|
|
3,212,245 |
|
|
|
3,158,495 |
|
Borrowings |
|
122,261 |
|
|
|
122,214 |
|
|
|
122,168 |
|
|
|
122,121 |
|
|
|
125,965 |
|
Total stockholders’ equity |
|
364,026 |
|
|
|
387,068 |
|
|
|
407,427 |
|
|
|
398,276 |
|
|
|
392,815 |
|
Summary Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
1.61 |
% |
|
|
1.47 |
% |
|
|
1.50 |
% |
|
|
1.61 |
% |
|
|
1.46 |
% |
Return on average equity |
|
17.02 |
% |
|
|
14.58 |
% |
|
|
14.39 |
% |
|
|
15.24 |
% |
|
|
14.27 |
% |
Net interest margin (1) |
|
4.02 |
% |
|
|
3.33 |
% |
|
|
3.50 |
% |
|
|
3.58 |
% |
|
|
3.42 |
% |
Yield on loans |
|
5.57 |
% |
|
|
4.80 |
% |
|
|
4.90 |
% |
|
|
4.99 |
% |
|
|
4.97 |
% |
Cost of interest-bearing deposits |
|
0.42 |
% |
|
|
0.34 |
% |
|
|
0.35 |
% |
|
|
0.37 |
% |
|
|
0.40 |
% |
Efficiency ratio |
|
64.01 |
% |
|
|
70.30 |
% |
|
|
66.07 |
% |
|
|
66.45 |
% |
|
|
70.52 |
% |
Summary Credit Quality Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans |
|
7,889 |
|
|
|
12,141 |
|
|
|
10,598 |
|
|
|
10,895 |
|
|
|
12,538 |
|
Nonperforming loans to total loans held for investment |
|
0.31 |
% |
|
|
0.49 |
% |
|
|
0.43 |
% |
|
|
0.45 |
% |
|
|
0.54 |
% |
Other real estate owned |
|
59 |
|
|
|
1,141 |
|
|
|
1,032 |
|
|
|
1,081 |
|
|
|
1,146 |
|
Nonperforming assets to total assets |
|
0.20 |
% |
|
|
0.33 |
% |
|
|
0.30 |
% |
|
|
0.32 |
% |
|
|
0.37 |
% |
Allowance for loan losses to total loans held for investment |
|
1.54 |
% |
|
|
1.62 |
% |
|
|
1.73 |
% |
|
|
1.76 |
% |
|
|
1.87 |
% |
Net charge-offs to average loans outstanding (annualized) |
|
(0.02 |
)% |
|
|
0.06 |
% |
|
|
0.11 |
% |
|
|
0.03 |
% |
|
|
0.01 |
% |
|
As of and for the quarter ended |
|
June 302022 |
|
March 31,2022 |
|
December 31,2021 |
|
September 30,2021 |
|
June 30,2021 |
Capital
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders’ equity to total assets |
|
9.16 |
% |
|
|
9.68 |
% |
|
|
10.44 |
% |
|
|
10.55 |
% |
|
|
10.58 |
% |
Tangible common equity to tangible assets (non-GAAP) |
|
8.59 |
% |
|
|
9.11 |
% |
|
|
9.85 |
% |
|
|
9.94 |
% |
|
|
9.94 |
% |
Common equity tier 1 to risk-weighted assets |
|
12.24 |
% |
|
|
12.86 |
% |
|
|
12.91 |
% |
|
|
12.68 |
% |
|
|
13.14 |
% |
Tier 1 capital to average assets |
|
10.93 |
% |
|
|
10.78 |
% |
|
|
10.77 |
% |
|
|
10.83 |
% |
|
|
10.54 |
% |
Total capital to risk-weighted assets |
|
17.32 |
% |
|
|
18.22 |
% |
|
|
18.40 |
% |
|
|
18.21 |
% |
|
|
18.95 |
% |
(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 |
|
June 30, 2022 |
|
June 30, 2021 |
|
|
|
|
|
AverageBalance |
|
InterestIncomeExpense |
|
Yield |
|
AverageBalance |
|
InterestIncomeExpense |
|
Yield |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, excluding PPP (1) |
$ |
2,531,085 |
|
$ |
34,522 |
|
|
5.47 |
% |
|
$ |
2,211,825 |
|
$ |
27,084 |
|
|
4.91 |
% |
Loans - PPP |
|
18,179 |
|
|
898 |
|
|
19.81 |
% |
|
|
156,977 |
|
|
2,277 |
|
|
5.82 |
% |
Debt securities - taxable |
|
637,814 |
|
|
3,538 |
|
|
2.22 |
% |
|
|
543,527 |
|
|
2,377 |
|
|
1.75 |
% |
Debt securities - nontaxable |
|
217,023 |
|
|
1,439 |
|
|
2.66 |
% |
|
|
220,006 |
|
|
1,465 |
|
|
2.67 |
% |
Other interest-bearing assets |
|
329,869 |
|
|
658 |
|
|
0.80 |
% |
|
|
370,634 |
|
|
122 |
|
|
0.13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-earning assets |
|
3,733,970 |
|
|
41,055 |
|
|
4.41 |
% |
|
|
3,502,969 |
|
|
33,325 |
|
|
3.82 |
% |
Noninterest-earning assets |
|
238,575 |
|
|
|
|
|
|
|
|
255,093 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
3,972,545 |
|
|
|
|
|
|
|
$ |
3,758,062 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities & stockholders’ equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW, Savings, MMA’s |
$ |
1,903,452 |
|
|
1,357 |
|
|
0.29 |
% |
|
$ |
1,873,699 |
|
|
1,150 |
|
|
0.25 |
% |
Time deposits |
|
334,819 |
|
|
960 |
|
|
1.15 |
% |
|
|
326,043 |
|
|
1,036 |
|
|
1.27 |
% |
Short-term borrowings |
|
4 |
|
|
- |
|
|
0.00 |
% |
|
|
6,429 |
|
|
1 |
|
|
0.06 |
% |
Notes payable & other long-term borrowings |
|
- |
|
|
- |
|
|
0.00 |
% |
|
|
4,121 |
|
|
3 |
|
|
0.29 |
% |
Subordinated debt securities |
|
75,845 |
|
|
1,013 |
|
|
5.36 |
% |
|
|
75,682 |
|
|
1,012 |
|
|
5.36 |
% |
Junior subordinated deferrable interest debentures |
|
46,393 |
|
|
317 |
|
|
2.74 |
% |
|
|
46,393 |
|
|
221 |
|
|
1.91 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities |
|
2,360,513 |
|
|
3,647 |
|
|
0.62 |
% |
|
|
2,332,367 |
|
|
3,423 |
|
|
0.59 |
% |
Demand deposits |
|
1,171,454 |
|
|
|
|
|
|
|
|
1,002,737 |
|
|
|
|
|
|
Other liabilities |
|
65,031 |
|
|
|
|
|
|
|
|
39,215 |
|
|
|
|
|
|
Stockholders’ equity |
|
375,547 |
|
|
|
|
|
|
|
|
383,743 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities & stockholders’ equity |
$ |
3,972,545 |
|
|
|
|
|
|
|
$ |
3,758,062 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
$ |
37,408 |
|
|
|
|
|
|
|
$ |
29,902 |
|
|
|
Net interest margin (2) |
|
|
|
|
|
|
|
4.02 |
% |
|
|
|
|
|
|
|
|
3.42 |
% |
(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.Average
Balances and Yields - (Unaudited)(Dollars in
thousands)
|
For the Six Months Ended |
|
June 30, 2022 |
|
June 30, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
AverageBalance |
|
InterestIncomeExpense |
|
Yield |
|
AverageBalance |
|
InterestIncomeExpense |
|
Yield |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, excluding PPP (1) |
$ |
2,489,048 |
|
$ |
63,146 |
|
|
5.12 |
% |
|
$ |
2,187,470 |
|
$ |
53,367 |
|
|
4.92 |
% |
Loans - PPP |
|
26,886 |
|
|
1,653 |
|
|
12.40 |
% |
|
|
168,238 |
|
|
5,275 |
|
|
6.32 |
% |
Debt securities - taxable |
|
579,243 |
|
|
5,892 |
|
|
2.05 |
% |
|
|
544,761 |
|
|
4,809 |
|
|
1.78 |
% |
Debt securities - nontaxable |
|
217,672 |
|
|
2,887 |
|
|
2.67 |
% |
|
|
218,351 |
|
|
2,946 |
|
|
2.72 |
% |
Other interest-bearing assets |
|
398,670 |
|
|
862 |
|
|
0.44 |
% |
|
|
350,434 |
|
|
222 |
|
|
0.13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-earning assets |
|
3,711,519 |
|
|
74,440 |
|
|
4.04 |
% |
|
|
3,469,253 |
|
|
66,619 |
|
|
3.87 |
% |
Noninterest-earning assets |
|
250,376 |
|
|
|
|
|
|
|
|
262,351 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
3,961,895 |
|
|
|
|
|
|
|
$ |
3,731,604 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities & stockholders’ equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW, Savings, MMA’s |
$ |
1,920,608 |
|
|
2,268 |
|
|
0.24 |
% |
|
$ |
1,840,831 |
|
|
2,254 |
|
|
0.25 |
% |
Time deposits |
|
336,962 |
|
|
1,939 |
|
|
1.16 |
% |
|
|
325,213 |
|
|
2,089 |
|
|
1.30 |
% |
Short-term borrowings |
|
4 |
|
|
- |
|
|
0.00 |
% |
|
|
15,726 |
|
|
5 |
|
|
0.06 |
% |
Notes payable & other long-term borrowings |
|
- |
|
|
- |
|
|
0.00 |
% |
|
|
39,283 |
|
|
38 |
|
|
0.20 |
% |
Subordinated debt securities |
|
75,822 |
|
|
2,025 |
|
|
5.39 |
% |
|
|
75,659 |
|
|
2,031 |
|
|
5.41 |
% |
Junior subordinated deferrable interest debentures |
|
46,393 |
|
|
548 |
|
|
2.38 |
% |
|
|
46,393 |
|
|
444 |
|
|
1.93 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities |
|
2,379,789 |
|
|
6,780 |
|
|
0.57 |
% |
|
|
2,343,105 |
|
|
6,861 |
|
|
0.59 |
% |
Demand deposits |
|
1,137,772 |
|
|
|
|
|
|
|
|
969,040 |
|
|
|
|
|
|
Other liabilities |
|
57,936 |
|
|
|
|
|
|
|
|
41,408 |
|
|
|
|
|
|
Stockholders’ equity |
|
386,398 |
|
|
|
|
|
|
|
|
378,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities & stockholders’ equity |
$ |
3,961,895 |
|
|
|
|
|
|
|
$ |
3,731,604 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
$ |
67,660 |
|
|
|
|
|
|
|
$ |
59,758 |
|
|
|
Net interest margin (2) |
|
|
|
|
|
|
|
3.68 |
% |
|
|
|
|
|
|
|
|
3.47 |
% |
(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 |
|
June 30,2022 |
|
December 31,2021 |
|
|
|
|
|
|
Assets |
|
|
|
|
|
Cash and due from banks |
$ |
67,127 |
|
|
$ |
68,425 |
|
Interest-bearing deposits in banks |
|
308,563 |
|
|
|
418,396 |
|
Federal funds sold |
|
— |
|
|
|
— |
|
Investment securities |
|
763,943 |
|
|
|
724,504 |
|
Loans held for sale |
|
37,949 |
|
|
|
76,507 |
|
Loans held for investment |
|
2,580,493 |
|
|
|
2,437,577 |
|
Less: Allowance for loan losses |
|
(39,785 |
) |
|
|
(42,098 |
) |
Net loans held for investment |
|
2,540,708 |
|
|
|
2,395,479 |
|
Premises and equipment, net |
|
56,531 |
|
|
|
57,699 |
|
Goodwill |
|
19,508 |
|
|
|
19,508 |
|
Intangible assets |
|
5,112 |
|
|
|
5,895 |
|
Mortgage servicing assets |
|
27,505 |
|
|
|
19,700 |
|
Other assets |
|
147,826 |
|
|
|
115,742 |
|
Total assets |
$ |
3,974,772 |
|
|
$ |
3,901,855 |
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity
Liabilities |
|
|
|
|
|
Noninterest bearing deposits |
$ |
1,195,732 |
|
|
$ |
1,071,367 |
|
Interest-bearing deposits |
|
2,230,105 |
|
|
|
2,269,855 |
|
Total deposits |
|
3,425,837 |
|
|
|
3,341,222 |
|
Other borrowings |
|
- |
|
|
|
- |
|
Subordinated debt securities |
|
75,868 |
|
|
|
75,775 |
|
Trust preferred subordinated debentures |
|
46,393 |
|
|
|
46,393 |
|
Other liabilities |
|
62,648 |
|
|
|
31,038 |
|
Total liabilities |
|
3,610,746 |
|
|
|
3,494,428 |
|
Stockholders’ Equity |
|
|
|
|
|
Common stock |
|
17,417 |
|
|
|
17,760 |
|
Additional paid-in capital |
|
125,332 |
|
|
|
133,215 |
|
Retained earnings |
|
268,109 |
|
|
|
242,750 |
|
Accumulated other comprehensive income (loss) |
|
(46,832 |
) |
|
|
13,702 |
|
Total stockholders’ equity |
|
364,026 |
|
|
|
407,427 |
|
Total liabilities and stockholders’ equity |
$ |
3,974,772 |
|
|
$ |
3,901,855 |
|
South Plains Financial,
Inc.Consolidated Statements of
Income(Unaudited)(Dollars in
thousands)
|
Three Months Ended |
|
Six Months Ended |
|
June 30,2022 |
|
June 30,2021 |
|
June 30,2022 |
|
June 30,2021 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income: |
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
$ |
35,419 |
|
$ |
29,360 |
|
|
$ |
64,797 |
|
|
$ |
58,640 |
|
Other |
|
5,333 |
|
|
3,656 |
|
|
|
9,035 |
|
|
|
7,358 |
|
Total Interest income |
|
40,752 |
|
|
33,016 |
|
|
|
73,832 |
|
|
|
65,998 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
2,317 |
|
|
2,186 |
|
|
|
4,207 |
|
|
|
4,343 |
|
Subordinated debt securities |
|
1,013 |
|
|
1,012 |
|
|
|
2,025 |
|
|
|
2,031 |
|
Trust preferred subordinated debentures |
|
317 |
|
|
221 |
|
|
|
548 |
|
|
|
444 |
|
Other |
|
- |
|
|
4 |
|
|
|
- |
|
|
|
43 |
|
Total Interest expense |
|
3,647 |
|
|
3,423 |
|
|
|
6,780 |
|
|
|
6,861 |
|
Net interest income |
|
37,105 |
|
|
29,593 |
|
|
|
67,052 |
|
|
|
59,137 |
|
Provision for loan losses |
|
- |
|
|
(2,007 |
) |
|
|
(2,085 |
) |
|
|
(1,918 |
) |
Net interest income after provision for loan losses |
|
37,105 |
|
|
31,600 |
|
|
|
69,137 |
|
|
|
61,055 |
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposits |
|
1,612 |
|
|
1,599 |
|
|
|
3,385 |
|
|
|
3,172 |
|
Income from insurance activities |
|
1,577 |
|
|
1,240 |
|
|
|
3,147 |
|
|
|
2,352 |
|
Mortgage banking activities |
|
8,669 |
|
|
13,711 |
|
|
|
22,306 |
|
|
|
32,527 |
|
Bank card services and interchange fees |
|
3,478 |
|
|
3,073 |
|
|
|
6,700 |
|
|
|
5,715 |
|
Other |
|
3,499 |
|
|
2,627 |
|
|
|
6,994 |
|
|
|
4,984 |
|
Total Noninterest income |
|
18,835 |
|
|
22,250 |
|
|
|
42,532 |
|
|
|
48,750 |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
21,990 |
|
|
23,377 |
|
|
|
44,693 |
|
|
|
47,695 |
|
Net occupancy expense |
|
4,033 |
|
|
3,499 |
|
|
|
7,770 |
|
|
|
7,064 |
|
Professional services |
|
2,647 |
|
|
1,522 |
|
|
|
5,272 |
|
|
|
3,095 |
|
Marketing and development |
|
705 |
|
|
812 |
|
|
|
1,425 |
|
|
|
1,380 |
|
Other |
|
6,628 |
|
|
7,568 |
|
|
|
14,767 |
|
|
|
14,601 |
|
Total noninterest expense |
|
36,003 |
|
|
36,778 |
|
|
|
73,927 |
|
|
|
73,835 |
|
Income before income taxes |
|
19,937 |
|
|
17,072 |
|
|
|
37,742 |
|
|
|
35,970 |
|
Income tax expense (benefit) |
|
4,001 |
|
|
3,422 |
|
|
|
7,528 |
|
|
|
7,160 |
|
Net income |
$ |
15,936 |
|
$ |
13,650 |
|
|
$ |
30,214 |
|
|
$ |
28,810 |
|
South Plains Financial, Inc.Loan
Composition(Unaudited)(Dollars in
thousands)
|
As of |
|
June 30,2022 |
|
December 31,2021 |
|
|
|
|
|
|
Loans: |
|
|
|
|
|
Commercial Real Estate |
$ |
806,538 |
|
$ |
755,444 |
Commercial - Specialized |
|
351,609 |
|
|
378,725 |
Commercial - General |
|
483,964 |
|
|
460,024 |
Consumer: |
|
|
|
|
|
1-4 Family
Residential |
|
407,881 |
|
|
387,690 |
Auto Loans |
|
299,703 |
|
|
240,719 |
Other Consumer |
|
78,124 |
|
|
68,113 |
Construction |
|
152,674 |
|
|
146,862 |
Total loans held for investment |
$ |
2,580,493 |
|
$ |
2,437,577 |
South Plains Financial, Inc.Deposit
Composition(Unaudited)(Dollars in
thousands)
|
As of |
|
June 30,2022 |
|
December 31,2021 |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
Noninterest-bearing demand deposits |
$ |
1,195,732 |
|
$ |
1,071,367 |
NOW & other transaction accounts |
|
357,767 |
|
|
395,322 |
MMDA & other savings |
|
1,532,139 |
|
|
1,534,795 |
Time deposits |
|
340,199 |
|
|
339,738 |
Total deposits |
$ |
3,425,837 |
|
$ |
3,341,222 |
South Plains Financial,
Inc.Reconciliation of Non-GAAP Financial Measures
(Unaudited)(Dollars in thousands)
|
As of and for the quarter ended |
|
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
|
September 30,2021 |
|
June 30,2021 |
Pre-tax, pre-provision income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
15,936 |
|
$ |
14,278 |
|
|
$ |
14,614 |
|
$ |
15,190 |
|
$ |
13,650 |
|
Income tax expense |
|
4,001 |
|
|
3,527 |
|
|
|
3,631 |
|
|
3,716 |
|
|
3,422 |
|
Provision for loan losses |
|
- |
|
|
(2,085 |
) |
|
|
- |
|
|
- |
|
|
(2,007 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax, pre-provision income |
$ |
19,937 |
|
$ |
15,720 |
|
|
$ |
18,245 |
|
$ |
18,906 |
|
$ |
15,065 |
|
South Plains Financial,
Inc.Reconciliation of Non-GAAP Financial Measures
(Unaudited)(Dollars in thousands)
|
As of |
|
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
|
September 30,2021 |
|
June 30,2021 |
Tangible common
equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total common stockholders’ equity |
$ |
364,026 |
|
|
$ |
387,068 |
|
|
$ |
407,427 |
|
|
$ |
398,276 |
|
|
$ |
392,815 |
|
Less: goodwill and other intangibles |
|
(24,620 |
) |
|
|
(25,011 |
) |
|
|
(25,403 |
) |
|
|
(25,804 |
) |
|
|
(26,226 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity |
$ |
339,406 |
|
|
$ |
362,057 |
|
|
$ |
382,024 |
|
|
$ |
372,472 |
|
|
$ |
366,589 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
3,974,772 |
|
|
$ |
3,999,744 |
|
|
$ |
3,901,855 |
|
|
$ |
3,774,175 |
|
|
$ |
3,712,915 |
|
Less: goodwill and other intangibles |
|
(24,620 |
) |
|
|
(25,011 |
) |
|
|
(25,403 |
) |
|
|
(25,804 |
) |
|
|
(26,226 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible assets |
$ |
3,950,152 |
|
|
$ |
3,974,733 |
|
|
$ |
3,876,452 |
|
|
$ |
3,748,371 |
|
|
$ |
3,686,689 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding |
|
17,417,094 |
|
|
|
17,673,407 |
|
|
|
17,760,243 |
|
|
|
17,824,094 |
|
|
|
18,014,398 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders’ equity to total assets |
|
9.16 |
% |
|
|
9.68 |
% |
|
|
10.44 |
% |
|
|
10.55 |
% |
|
|
10.58 |
% |
Tangible common equity to tangible assets |
|
8.59 |
% |
|
|
9.11 |
% |
|
|
9.85 |
% |
|
|
9.94 |
% |
|
|
9.94 |
% |
Book value per share |
$ |
20.90 |
|
|
$ |
21.90 |
|
|
$ |
22.94 |
|
|
$ |
22.34 |
|
|
$ |
21.81 |
|
Tangible book value per share |
$ |
19.49 |
|
|
$ |
20.49 |
|
|
$ |
21.51 |
|
|
$ |
20.90 |
|
|
$ |
20.35 |
|
Grafico Azioni South Plains Financial (NASDAQ:SPFI)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni South Plains Financial (NASDAQ:SPFI)
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Da Lug 2023 a Lug 2024