South Plains Financial, Inc. Reports First Quarter 2024 Financial Results

LUBBOCK, Texas, April 25, 2024 (GLOBE NEWSWIRE) -- 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, 2024.

First Quarter 2024 Highlights

  • Net income for the first quarter of 2024 was $10.9 million, compared to $10.3 million for the fourth quarter of 2023 and $9.2 million for the first quarter of 2023.
  • Diluted earnings per share for the first quarter of 2024 was $0.64, compared to $0.61 for the fourth quarter of 2023 and $0.53 for the first quarter of 2023.
  • Average cost of deposits for the first quarter of 2024 was 241 basis points, compared to 224 basis points for the fourth quarter of 2023 and 136 basis points for the first quarter of 2023.
  • Net interest margin, calculated on a tax-equivalent basis, was 3.56% for the first quarter of 2024, compared to 3.52% for the fourth quarter of 2023.
  • Nonperforming assets to total assets were 0.10% at March 31, 2024, compared to 0.14% at December 31, 2023 and 0.19% at March 31, 2023.
  • Return on average assets for the first quarter of 2024 was 1.04% annualized, compared to 0.99% annualized for the fourth quarter of 2023 and 0.95% annualized for the first quarter of 2023.
  • Tangible book value (non-GAAP) per share was $23.56 as of March 31, 2024, compared to $23.47 as of December 31, 2023 and $20.19 as of March 31, 2023.
  • The consolidated total risk-based capital ratio, Common Equity Tier 1 risk-based capital ratio, and Tier 1 leverage ratio at March 31, 2024 were 17.00%, 12.67%, and 11.51%, respectively. These ratios significantly exceeded the minimum regulatory levels necessary to be deemed “well-capitalized”.

Curtis Griffith, South Plains’ Chairman and Chief Executive Officer, commented, “I am pleased with our first quarter results as we have started to see our net interest margin stabilize driven by improved loan yields and the very early signs of deposit cost pressures starting to ease. Additionally, our loan production was strong through the first quarter though it was largely offset by our typical seasonal agricultural paydowns as well as the early payoffs of several loans that we have been working to move out of the Bank. We continue to aggressively manage the credit quality of our loan portfolio which can be seen by our ratio of nonperforming assets to total assets which was 10 basis points at the end of the first quarter. Lastly, while competition for deposits remains a challenge in the current banking environment, we delivered modest deposit growth as our community-based deposit franchise remains a competitive advantage and we believe provides adequate liquidity to fund loan growth as we move through the year.”

Results of Operations, Quarter Ended March 31, 2024

Net Interest Income

Net interest income was $35.4 million for the first quarter of 2024, compared to $35.2 million for the fourth quarter of 2023 and $34.3 million for the first quarter of 2023. Net interest margin, calculated on a tax-equivalent basis, was 3.56% for the first quarter of 2024, compared to 3.52% for the fourth quarter of 2023 and 3.75% for the first quarter of 2023. The average yield on loans was 6.53% for the first quarter of 2024, compared to 6.29% for the fourth quarter of 2023 and 5.78% for the first quarter of 2023. The average cost of deposits was 241 basis points for the first quarter of 2024, which is 17 basis points higher than the fourth quarter of 2023 and 105 basis points higher than the first quarter of 2023.

Interest income was $58.7 million for the first quarter of 2024, compared to $57.2 million for the fourth quarter of 2023 and $47.4 million for the first quarter of 2023. Interest income increased $1.5 million in the first quarter of 2024 from the fourth quarter of 2023, which was comprised of increases of $1.0 million in loan interest income and $454 thousand in interest income on other interest-earning assets. The growth in loan interest income was primarily due to a rise of 24 basis points in the yield on loans, which includes approximately $667 thousand in recoveries of interest on loans that had previously been maintained on nonaccrual. The increase in interest income on other interest-earning assets was predominately a result of increased liquidity maintained at the Federal Reserve Bank of Dallas. Interest income increased $11.3 million in the first quarter of 2024 compared to the first quarter of 2023. This increase was primarily due to an increase of average loans of $235.7 million and higher market interest rates during the period, resulting in growth of $9.3 million in loan interest income, and a higher liquidity level year over year.

Interest expense was $23.4 million for the first quarter of 2024, compared to $22.1 million for the fourth quarter of 2023 and $13.1 million for the first quarter of 2023. Interest expense increased $1.3 million compared to the fourth quarter of 2023 and $10.2 million compared to the first quarter of 2023, primarily as a result of significantly higher short-term interest rates on interest-bearing liabilities, with the increase being mainly comprised of interest expense on deposits. Additionally, interest-bearing deposits grew during the first quarter of 2024 versus the compared periods, which also contributed to the higher interest expense.

Noninterest Income and Noninterest Expense

Noninterest income was $11.4 million for the first quarter of 2024, compared to $9.1 million for the fourth quarter of 2023 and $10.7 million for the first quarter of 2023. The increase from the fourth quarter of 2023 was primarily due to an increase of $2.3 million in mortgage banking revenues, mainly from an increase of $1.5 million in the fair value adjustment of the mortgage servicing rights assets as interest rates that affect the value rose modestly in the first quarter after falling late in the fourth quarter of 2023. Additionally, originations of mortgage loans held for sale increased $8.6 million due to typical seasonality. The increase in noninterest income for the first quarter of 2024 as compared to the first quarter of 2023 was primarily due to an increase of $1.7 million in mortgage banking revenues, mainly from an increase of $2.0 million in the fair value adjustment of the mortgage servicing rights assets as interest rates that affect the value rose modestly in the first quarter of 2024 compared to falling in the first quarter of 2023, partially offset by a reduction of $1.4 million in income from insurance activities due to the sale of the Bank’s insurance subsidiary in April 2023.

Noninterest expense was $31.9 million for the first quarter of 2024, compared to $30.6 million for the fourth quarter of 2023 and $32.4 million for the first quarter of 2023. The $1.3 million increase from the fourth quarter of 2023 was largely the result of a rise of $1.0 million in personnel costs, which predominately came from higher health care insurance costs and an increase in incentive-based compensation. The decrease in noninterest expense for the first quarter of 2024 as compared to the first quarter of 2023 was primarily driven by a reduction of $1.9 million in expenses from the Bank’s former insurance subsidiary, partially offset by an increase in incentive-based compensation.

Loan Portfolio and Composition

Loans held for investment were $3.01 billion as of March 31, 2024, compared to $3.01 billion as of December 31, 2023 and $2.79 billion as of March 31, 2023. Loans were flat during the first quarter of 2024 as compared to the fourth quarter of 2023 with growth primarily in multi-family and single-family property loans, offset by decreases in seasonal agricultural-related loans, residential construction loans, and consumer auto loans. As of March 31, 2024, loans held for investment increased $223.2 million, or 8.0%, from March 31, 2023, primarily attributable to strong organic loan growth, occurring mainly in commercial real estate loans.

Deposits and Borrowings

Deposits totaled $3.64 billion as of March 31, 2024, compared to $3.63 billion as of December 31, 2023 and $3.51 billion as of March 31, 2023. Deposits increased by $12.4 million, or 1.4% annualized, in the first quarter of 2024 from December 31, 2023. As of March 31, 2024, deposits increased $130.5 million, or 3.7%, from March 31, 2023. Noninterest-bearing deposits were $974.2 million as of March 31, 2024, compared to $974.2 million as of December 31, 2023 and $1.11 billion as of March 31, 2023. Noninterest-bearing deposits represented 26.8% of total deposits as of March 31, 2024. The quarterly change in total deposits was due to a modest increase in interest-bearing deposits. The year-over-year increase in total deposits was primarily the result of growth of $152 million in brokered deposits in the second and third quarters of 2023 given the overall focus in the banking industry on improving liquidity, as well as organic deposit growth.

Asset Quality

The Company recorded a provision for credit losses in the first quarter of 2024 of $830 thousand, compared to $600 thousand in the fourth quarter of 2023 and $1.0 million in the first quarter of 2023. The provision during the first quarter of 2024 was largely attributable to net charge-off activity during the quarter.

The ratio of allowance for credit losses to loans held for investment was 1.40% as of March 31, 2024, compared to 1.41% as of December 31, 2023 and 1.42% as of March 31, 2023.

The ratio of nonperforming assets to total assets was 0.10% as of March 31, 2024, compared to 0.14% as of December 31, 2023 and 0.19% as of March 31, 2023. Annualized net charge-offs were 0.13% for the first quarter of 2024, compared to 0.08% for the fourth quarter of 2023 and 0.09% for the first quarter of 2023.

Capital

Book value per share increased to $24.87 at March 31, 2024, compared to $24.80 at December 31, 2023. The change was primarily driven by $8.7 million of net income after dividends paid, partially offset by a decrease in accumulated other comprehensive income (“AOCI”) of $7.5 million. The decrease in AOCI was attributed to the after-tax decrease in fair value of our available for sale securities, net of fair value hedges, as a result of increases in long-term market interest rates during the period.

Conference Call

South Plains will host a conference call to discuss its first quarter 2024 financial results today, April 25, 2024, at 5:00 p.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 13745782. The replay will be available until May 9, 2024.

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 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 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 and South Plains’ financial performance. 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, the impact on us and our customers of a decline in general economic conditions and any regulatory responses thereto; potential recession in the United States and our market areas; the impacts related to or resulting from bank failures and any continuation of uncertainty in the banking industry, including the associated impact to the Company and other financial institutions of any regulatory changes or other mitigation efforts taken by government agencies in response thereto; increased competition for deposits and related changes in deposit customer behavior; the impact of changes in market interest rates, whether due to continued elevated interest rates or potential reduction in interest rates and a resulting decline in net interest income; the persistence of the current inflationary pressures, or the resurgence of elevated levels of inflation, in the United States and our market areas; the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; the effects of declines in housing prices in the United States and our market areas; increases in unemployment rates in the United States and our market areas; declines in commercial real estate values and prices; uncertainty regarding United States fiscal debt and budget matters; cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks; severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events; competition and market expansion opportunities; changes in non-interest expenditures or in the anticipated benefits of such expenditures; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; potential increased regulatory requirements and costs related to the transition and physical impacts of climate change; current or future litigation, regulatory examinations or other legal and/or regulatory actions; 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, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of such documents, and 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 applicable 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
 [email protected]
  

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
 March 31,
2024
 December 31,
2023
 September 30,
2023
 June 30,
2023
 March 31,
2023
Selected Income Statement Data:              
Interest income$58,727  $57,236  $56,528  $50,821  $47,448 
Interest expense 23,359   22,074   20,839   16,240   13,133 
Net interest income 35,368   35,162   35,689   34,581   34,315 
Provision for credit losses 830   600   (700)  3,700   1,010 
Noninterest income 11,409   9,146   12,277   47,112   10,691 
Noninterest expense 31,930   30,597   31,489   40,499   32,361 
Income tax expense 3,143   2,787   3,683   7,811   2,391 
Net income 10,874   10,324   13,494   29,683   9,244 
Per Share Data (Common Stock):              
Net earnings, basic 0.66   0.63   0.80   1.74   0.54 
Net earnings, diluted 0.64   0.61   0.78   1.71   0.53 
Cash dividends declared and paid 0.13   0.13   0.13   0.13   0.13 
Book value 24.87   24.80   22.39   23.13   21.57 
Tangible book value (non-GAAP) 23.56   23.47   21.07   21.82   20.19 
Weighted average shares outstanding, basic 16,429,919   16,443,908   16,842,594   17,048,432   17,046,713 
Weighted average shares outstanding, dilutive 16,938,857   17,008,892   17,354,182   17,386,515   17,560,756 
Shares outstanding at end of period 16,431,755   16,417,099   16,600,442   16,952,072   17,062,572 
Selected Period End Balance Sheet Data:              
Cash and cash equivalents 371,939   330,158   352,424   295,581   328,002 
Investment securities 599,869   622,762   584,969   628,093   698,579 
Total loans held for investment 3,011,799   3,014,153   2,993,563   2,979,063   2,788,640 
Allowance for credit losses 42,174   42,356   42,075   43,137   39,560 
Total assets 4,218,993   4,204,793   4,186,440   4,150,129   4,058,049 
Interest-bearing deposits 2,664,397   2,651,952   2,574,361   2,473,755   2,397,115 
Noninterest-bearing deposits 974,174   974,201   1,046,253   1,100,767   1,110,939 
Total deposits 3,638,571   3,626,153   3,620,614   3,574,522   3,508,054 
Borrowings 110,214   110,168   122,493   122,447   122,400 
Total stockholders’ equity 408,712   407,114   371,716   392,029   367,964 
Summary Performance Ratios:              
Return on average assets (annualized) 1.04%  0.99%  1.27%  2.97%  0.95%
Return on average equity (annualized) 10.72%  10.52%  14.01%  31.33%  10.34%
Net interest margin (1) 3.56%  3.52%  3.52%  3.65%  3.75%
Yield on loans 6.53%  6.29%  6.10%  5.94%  5.78%
Cost of interest-bearing deposits 3.27%  3.14%  2.93%  2.45%  2.03%
Efficiency ratio 67.94%  68.71%  65.34%  49.39%  71.42%
Summary Credit Quality Data:              
Nonperforming loans 3,380   5,178   4,783   21,039   7,579 
Nonperforming loans to total loans held for investment 0.11%  0.17%  0.16%  0.71%  0.27%
Other real estate owned 862   912   242   249   202 
Nonperforming assets to total assets 0.10%  0.14%  0.12%  0.51%  0.19%
Allowance for credit losses to total loans held for investment 1.40%  1.41%  1.41%  1.45%  1.42%
Net charge-offs to average loans outstanding (annualized) 0.13%  0.08%  0.05%  0.05%  0.09%
                    


 As of and for the quarter ended
 March 31
2024
 December 31,
2023
 September 30,
2023
 June 30,
2023
 March 31,
2023
Capital Ratios:              
Total stockholders’ equity to total assets 9.69%  9.68%  8.88%  9.45%  9.07%
Tangible common equity to tangible assets (non-GAAP) 9.22%  9.21%  8.40%  8.96%  8.54%
Common equity tier 1 to risk-weighted assets 12.67%  12.41%  12.19%  12.11%  11.92%
Tier 1 capital to average assets 11.51%  11.33%  11.13%  11.67%  11.22%
Total capital to risk-weighted assets 17.00%  16.74%  16.82%  16.75%  16.70%

(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, 2024 March 31, 2023
    
 Average
Balance
 Interest Yield/Rate Average
Balance
 Interest Yield/Rate
Assets                     
Loans$3,014,537  $48,940   6.53% $2,778,876  $39,602   5.78%
Debt securities - taxable 554,081   5,511   4.00%  585,427   5,240   3.63%
Debt securities - nontaxable 156,254   1,024   2.64%  213,191   1,413   2.69%
Other interest-bearing assets 298,969   3,475   4.67%  161,955   1,495   3.74%
                      
Total interest-earning assets 4,023,841   58,950   5.89%  3,739,449   47,750   5.18%
Noninterest-earning assets 184,293          189,477        
                      
Total assets$4,208,134         $3,928,926        
                      
Liabilities & stockholders’ equity                     
NOW, Savings, MMDA’s$2,285,981   17,997   3.17% $1,988,555   9,984   2.04%
Time deposits 374,852   3,666   3.93%  283,997   1,386   1.98%
Short-term borrowings 3   -   0.00%  4   -   0.00%
Notes payable & other long-term borrowings -   -   0.00%  -   -   0.00%
Subordinated debt 63,798   835   5.26%  75,984   1,012   5.40%
Junior subordinated deferrable interest debentures 46,393   861   7.46%  46,393   751   6.57%
                      
Total interest-bearing liabilities 2,771,027   23,359   3.39%  2,394,933   13,133   2.22%
Demand deposits 958,334          1,109,344        
Other liabilities 70,860          62,160        
Stockholders’ equity 407,913          362,489        
                      
Total liabilities & stockholders’ equity$4,208,134         $3,928,926        
                      
Net interest income    $35,591         $34,617    
Net interest margin (2)         3.56%          3.75%

(1) Average loan balances include nonaccrual loans and loans held for sale.
(2) Net interest margin is calculated as the annualized net interest 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,
2024
 December 31,
2023
      
Assets     
Cash and due from banks$41,273  $62,821 
Interest-bearing deposits in banks 330,666   267,337 
Securities available for sale 599,869   622,762 
Loans held for sale 15,751   14,499 
Loans held for investment 3,011,799   3,014,153 
Less:  Allowance for credit losses (42,174)  (42,356)
Net loans held for investment 2,969,625   2,971,797 
Premises and equipment, net 54,221   55,070 
Goodwill 19,315   19,315 
Intangible assets 2,247   2,429 
Mortgage servicing rights 26,843   26,569 
Other assets 159,183   162,194 
Total assets$4,218,993  $4,204,793 
      
Liabilities and Stockholders’ Equity     
Noninterest-bearing deposits$974,174  $974,201 
Interest-bearing deposits 2,664,397   2,651,952 
Total deposits 3,638,571   3,626,153 
Subordinated debt 63,821   63,775 
Junior subordinated deferrable interest debentures 46,393   46,393 
Other liabilities 61,496   61,358 
Total liabilities 3,810,281   3,797,679 
Stockholders’ Equity     
Common stock 16,432   16,417 
Additional paid-in capital 97,406   97,107 
Retained earnings 354,011   345,264 
Accumulated other comprehensive income (loss) (59,137)  (51,674)
Total stockholders’ equity 408,712   407,114 
Total liabilities and stockholders’ equity$4,218,993  $4,204,793 
        

South Plains Financial, Inc.
Consolidated Statements of Income
(Unaudited)
(Dollars in thousands)

 Three Months Ended
 March 31,
2024
 March 31,
2023
        
Interest income:       
Loans, including fees$48,932  $39,597 
Other 9,795   7,851 
Total interest income 58,727   47,448 
Interest expense:       
Deposits 21,663   11,370 
Subordinated debt 835   1,012 
Junior subordinated deferrable interest debentures 861   751 
Other -   - 
Total interest expense 23,359   13,133 
Net interest income 35,368   34,315 
Provision for credit losses 830   1,010 
Net interest income after provision for credit losses 34,538   33,305 
Noninterest income:       
Service charges on deposits 1,813   1,701 
Income from insurance activities 34   1,411 
Mortgage banking activities 3,945   2,286 
Bank card services and interchange fees 3,061   2,956 
Gain on sale of subsidiary -   - 
Other 2,556   2,337 
Total noninterest income 11,409   10,691 
Noninterest expense:       
Salaries and employee benefits 18,988   19,254 
Net occupancy expense 3,920   3,832 
Professional services 1,483   1,648 
Marketing and development 754   936 
Other 6,785   6,691 
Total noninterest expense 31,930   32,361 
Income before income taxes 14,017   11,635 
Income tax expense 3,143   2,391 
Net income$10,874  $9,244 
        

South Plains Financial, Inc.
Loan Composition
(Unaudited)
(Dollars in thousands)

 As of
 March 31,
2024
 December 31,
2023
        
Loans:       
Commercial Real Estate$1,110,283  $1,081,056 
Commercial - Specialized 351,546   372,376 
Commercial - General 527,576   517,361 
Consumer:       
1-4 Family Residential 545,116   534,731 
Auto Loans 292,389   305,271 
Other Consumer 71,698   74,168 
Construction 113,191   129,190 
Total loans held for investment$3,011,799  $3,014,153 
        

South Plains Financial, Inc.
Deposit Composition
(Unaudited)
(Dollars in thousands)

 As of
 March 31,
2024
 December 31,
2023
        
Deposits:       
Noninterest-bearing deposits$974,174  $974,201 
NOW & other transaction accounts 518,804   562,066 
MMDA & other savings 1,764,627   1,722,170 
Time deposits 380,966   367,716 
Total deposits$3,638,571  $3,626,153 
        

South Plains Financial, Inc.
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(Dollars in thousands)

 For the quarter ended
 March 31,
2024
 December 31,
2023
 September 30,
2023
 June 30,
2023
 March 31,
2023
Pre-tax, pre-provision income                  
Net income$10,874  $10,324  $13,494  $29,683  $9,244 
Income tax expense 3,143   2,787   3,683   7,811   2,391 
Provision for credit losses 830   600   (700)  3,700   1,010 
                   
Pre-tax, pre-provision income$14,847  $13,711  $16,477  $41,194  $12,645 


Efficiency Ratio              
Noninterest expense$31,930  $30,597  $31,489  $40,499  $32,361 
               
Net interest income 35,368   35,162   35,689   34,581   34,315 
Tax equivalent yield adjustment 223   225   229   303   302 
Noninterest income 11,409   9,146   12,277   47,112   10,691 
Total income 47,000   44,533   48,195   81,996   45,308 
               
Efficiency ratio 67.94%  68.71%  65.34%  49.39%  71.42%
               
Noninterest expense$31,930  $30,597  $31,489  $40,499  $32,361 
Less: Subsidiary transaction and related expenses          (4,532)   
Less:  net loss on sale of securities          (3,409)   
Adjusted noninterest expense 31,930   30,597   31,489   32,558   32,361 
               
Total income 47,000   44,533   48,195   81,996   45,308 
Less:  gain on sale of subsidiary       (290)  (33,488)   
Adjusted total income 47,000   44,533   47,905   48,508   45,308 
               
Adjusted efficiency ratio 67.94%  68.71%  65.73%  67.12%  71.42%
                    


 As of
 March 31,
2024
 December 31,
2023
 September 30,
2023
 June 30,
2023
 March 31,
2023
Tangible common equity              
Total common stockholders’ equity$408,712  $407,114  $371,716  $392,029  $367,964 
Less:  goodwill and other intangibles (21,562)  (21,744)  (21,936)  (22,149)  (23,496)
               
Tangible common equity$387,150  $385,370  $349,780  $369,880  $344,468 
               
Tangible assets              
Total assets$4,218,993  $4,204,793  $4,186,440  $4,150,129  $4,058,049 
Less:  goodwill and other intangibles (21,562)  (21,744)  (21,936)  (22,149)  (23,496)
               
Tangible assets$4,197,431  $4,183,049  $4,164,504  $4,127,980  $4,034,553 
               
Shares outstanding 16,431,755   16,417,099   16,600,442   16,952,072   17,062,572 
               
Total stockholders’ equity to total assets 9.69%  9.68%  8.88%  9.45%  9.07%
Tangible common equity to tangible assets 9.22%  9.21%  8.40%  8.96%  8.54%
Book value per share$24.87  $24.80  $22.39  $23.13  $21.57 
Tangible book value per share$23.56  $23.47  $21.07  $21.82  $20.19 
                    

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