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CST: 11/12/2019 21:42:09   

South Plains Financial, Inc. Reports Third Quarter 2019 Financial Results

48 Days ago

LUBBOCK, Texas, Oct. 24, 2019 (GLOBE NEWSWIRE) -- South Plains Financial, Inc. (NASDAQ:SPFI) (“South Plains” or the “Company”), the parent company of City Bank, today reported its financial results for the quarter ended September 30, 2019. 

Third Quarter 2019 Highlights

  • Net income for the third quarter of 2019 was $8.3 million, compared to $6.1 million for the second quarter of 2019.
  • Diluted earnings per share were $0.45 for the third quarter of 2019, compared to $0.37 for the second quarter of 2019.
  • Average cost of deposits for the third quarter of 2019 declined 10 basis points to 98 basis points, compared to 108 basis points for the second quarter of 2019.
  • The efficiency ratio for the third quarter of 2019 declined 123 basis points to 73.62%, compared to 74.85% for the third quarter of 2018.
  • Return on average assets for the third quarter of 2019 was 1.18% annualized, compared to 0.89% for the second quarter of 2019.
  • Book value per share was $16.61 as of September 30, 2019, compared to $16.19 per share as of June 30, 2019.

Subsequent Events

  • South Plains has received all necessary regulatory approvals for South Plains’ announced acquisition of West Texas State Bank (“WTSB”).  The acquisition is expected to close on October 31, 2019.

Curtis Griffith, South Plains’ Chairman and Chief Executive Officer, commented, “I am very pleased with our third quarter results as they clearly demonstrate the successful execution of our strategy to grow City Bank while also leveraging the significant investments that we have made in our infrastructure.  Today, we believe our infrastructure can handle more than $5 billion in assets which will allow us to further scale City Bank without adding significant incremental expenses or investments as we strive to deliver returns in line with or exceeding our peer group.  Signs of our success can be seen in our third quarter results as we improved our efficiency ratio by 123 basis points, year over year, to 73.62%.  Additionally, our return on average assets expanded by 44 basis points, year over year, to 1.18% annualized and our return on average equity expanded by more than 200 basis points, year over year, to 11.10% annualized.” 

Mr. Griffith continued, “Turning to our pending acquisition of WTSB, I am pleased to report that we have received all necessary regulatory approvals and expect the acquisition to close on October 31, 2019.  Since our announcement in July, we have been working closely with the WTSB management team on our integration plan and are very pleased with the early success that we have achieved.  As a result, we remain confident that we will deliver our cost synergy target of reducing WTSB’s non-interest expense by 30% by 2021, approximately 75% of which we expect to achieve in 2020.  We also continue to expect 20% earnings accretion over four quarters beginning in 2020 with a tangible book value per share earn back of less than four years.  Additionally, we are encouraged with the potential cross selling opportunities to WTSB’s customers, as there is a real need for South Plains’ mortgage, wealth management and trust products in WTSB’s more rural markets.  Our bankers are positioning themselves to begin introducing our products in WTSB’s branches on day one post-closing.”    

Results of Operations, Quarter Ended September 30, 2019

Net Interest Income

Net interest income was $26.6 million for the third quarter of 2019, compared to $24.8 million for the third quarter of 2018 and $24.8 million for the second quarter of 2019. 

Interest income was $33.7 million for the third quarter of 2019, compared to $30.7 million for the third quarter of 2018 and $32.5 million for the second quarter of 2019.  Interest and fees on loans increased by $2.0 million from the third quarter of 2018 due to organic growth of $20.0 million in average loans and an increase of 34 basis points in interest rates.  The increase from the second quarter of 2019 was the result of an increase of $46.9 million in average loans outstanding during the third quarter of 2019.

Interest expense was $7.1 million for the third quarter of 2019, compared to $5.9 million for the third quarter of 2018 and $7.7 million for the second quarter of 2019.  The increase from the third quarter of 2018 was primarily due to an increase in the rate paid on interest-bearing liabilities of 24 basis points.  The decrease from the second quarter of 2019 was due to a decrease in the rate paid on interest-bearing liabilities of 9 basis points and a decrease of $50.0 million in average interest-bearing liabilities in the third quarter of 2019.  The average cost of deposits was 98 basis points for the third quarter of 2019, representing a 14 basis point increase from the third quarter of 2018 and a 10 basis point decrease from the second quarter of 2019.    

The net interest margin was 4.07% for the third quarter of 2019, compared to 4.02% for the third quarter of 2018 and 3.88% for the second quarter of 2019. 

Noninterest Income and Noninterest Expense

Noninterest income was $14.1 million for the third quarter of 2019, compared to $13.3 million for the third quarter of 2018 and $13.7 million for the second quarter of 2019.  The increase in noninterest income for the third quarter of 2019 compared to the third quarter of 2018 was primarily the result of an increase of $1.4 million in mortgage banking activities revenue as a result of an increase of $47.2 million in mortgage loan originations.  The increase from the second quarter of 2019 was primarily the result of an increase of $339,000 in mortgage banking activities revenue for the third quarter of 2019. 

Noninterest expense was $30.0 million for the third quarter of 2019, compared to $28.6 million for the third quarter of 2018 and $29.9 million for the second quarter of 2019.  This increase in noninterest expense for the third quarter of 2019 compared to the third quarter of 2018 was primarily driven by $328,000 in professional services related to our announced acquisition of WTSB as well as increased costs for legal, accounting, and insurance as a new public company.  There was a decrease in personnel expense of $649,000 from the second quarter of 2019, which was partially offset by the increase in expenses noted above for the third quarter of 2019.

Loan Portfolio and Composition

Loans held for investment were $1.96 billion as of September 30, 2019, compared to $1.94 billion as of June 30, 2019 and $1.97 billion as of September 30, 2018.  Loans held for investment increased $27.0 million, or 5.6% annualized, during the third quarter of 2019 compared to the second quarter of 2019, primarily as a result of an increase of $19.1 million seasonal agricultural production loan net fundings.  As of September 30, 2019, loans held for investment decreased $5.5 million, or 0.3%, from September 30, 2018. 

Agricultural production loans were $166.8 million as of September 30, 2019, compared to $147.7 million as of June 30, 2019 and $175.8 million as of September 30, 2018.

Deposits and Borrowings

Deposits totaled $2.29 billion as of September 30, 2019, compared to $2.28 billion as of June 30, 2019 and $2.26 billion as of September 30, 2018.  Deposits increased $4.1 million in the third quarter of 2019, primarily as the result of growth in noninterest-bearing deposits of $42.9 million during the quarter, partially offset by a decrease of $38.7 million in interest-bearing deposits.  The decrease in interest-bearing deposits was primarily attributable to a planned reduction of $43.3 million in public funds.  The increase of $24.6 million in deposits from September 30, 2018 was the result of the Company’s organic growth. 

Noninterest-bearing deposits were $556.2 million as of September 30, 2019, compared to $513.4 million as of June 30, 2019 and $517.0 million as of September 30, 2018.  Noninterest-bearing deposits represented 24.3%, 22.5%, and 22.9% of total deposits as of September 30, 2019, June 30, 2019, and September 30, 2018, respectively. 

Asset Quality

The provision for loan losses recorded for the third quarter of 2019 was $420,000, compared to $3.4 million for the third quarter of 2018 and $875,000 for the second quarter of 2019.  The allowance for loan losses to loans held for investment was 1.23% as of September 30, 2019, compared to 1.25% as of June 30, 2019 and 1.07% as of September 30, 2018. 

The nonperforming assets to total assets ratio as of September 30, 2019 was 0.31%, compared to 0.37% as of June 30, 2019 and 0.37% at September 30, 2018.

Annualized net charge-offs were 0.08% for the third quarter of 2019, compared to 0.02% for the second quarter of 2019 and 0.82% for the third quarter of 2018.

Conference Call

South Plains will host a conference call to discuss its third quarter 2019 financial results today, October 24, 2019 at 9 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 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 13694929.  The replay will be available until 11:59 p.m. Eastern Time on November 7, 2019. 

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 and El Paso markets, as well as in the Greater Houston, 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.

Pro Forma Financial Information

As a result of the revocation of the Company’s subchapter S corporation election, which was effective May 31, 2018, the net income presented herein may not be comparable for all periods presented herein.  As a result, the Company is disclosing pro forma net income and income tax expense as if the Company’s conversion to a C corporation had occurred as of January 1, 2018.

Additionally, prior to the listing of our common stock on the NASDAQ, in accordance with applicable provisions of the Internal Revenue Code, the terms of the South Plains Financial, Inc. Employee Stock Ownership Plan (“ESOP”) provided that ESOP participants had the right, for a specified period of time, to require us to repurchase shares of our common stock that were distributed to them by the ESOP.  The shares of common stock held by the ESOP were reflected in our consolidated balance sheets as a line item called “ESOP-owned shares” appearing between total liabilities and shareholders’ equity.  As a result, the ESOP-owned shares were deducted from shareholders’ equity in our consolidated balance sheets.  This repurchase right terminated upon the listing of our common stock on the NASDAQ, which we sometimes refer to as the ESOP Repurchase Right Termination, whereupon our repurchase liability was extinguished and thereafter the ESOP-owned shares are included in shareholders’ equity.

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.

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 completion of its acquisition of WTSB 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.  Additional information regarding these risks and uncertainties to which South Plains’ business and future financial performance are subject is contained in South Plains’ Prospectus filed with the U.S. Securities and Exchange Commission (“SEC”), dated May 8, 2019 (“Prospectus”), 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 Prospectus 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
  (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
  September 30,
2019
June 30,
2019
March 31,
2019

December 30,
2018
September 30,
2018
Selected Income Statement Data:          
Interest income $ 33,665   $ 32,509   $ 32,004   $ 31,672   $ 30,731  
Interest expense   7,097     7,672     7,458     7,005     5,943  
Net interest income   26,568     24,837     24,546     24,667     24,788  
Provision for loan losses   420     875     608     1,168     3,415  
Noninterest income   14,115     13,703     12,075     14,390     13,295  
Noninterest expense   30,028     29,930     30,036     30,498     28,646  
Income tax expense   1,977     1,655     1,204     1,528     1,109  
Net income   8,258     6,080     4,773     5,863     4,913  
Per Share Data (Common Stock):          
Net earnings, basic   0.46     0.37     0.32     0.40     0.33  
Net earnings, diluted   0.45     0.37     0.32     0.40     0.33  
Cash dividends declared and paid   0.03             0.85      
Book value   16.61     16.19     14.80     14.40     14.63  
Tangible book value   16.47     16.19     14.80     14.40     14.63  
Weighted average shares outstanding, basic   17,985,429     16,459,366     14,771,520     14,771,520     14,771,520  
Weighted average shares outstanding, dilutive   18,363,033     16,563,543     14,771,558     14,771,520     14,771,520  
Shares outstanding at end of period   18,004,323     17,978,520     14,771,520     14,771,520     14,771,520  
                               

 


   
  As of and for the quarter ended
  September 30,
2019
June 30,
2019
March 31,
2019
December 31,
2018
September 30,
2018
Selected Period End Balance Sheet Data:          
Total assets 2,795,582   2,777,170   2,745,997   2,712,745   2,687,610  
Total loans held for investment 1,962,609   1,935,653   1,915,183   1,957,197   1,968,085  
Allowance for loan losses 24,176   24,171   23,381   23,126   21,073  
Investment securities 401,335   263,564   339,051   338,196   398,475  
Noninterest-bearing deposits 556,233   513,383   497,566   510,067   517,000  
Total deposits 2,285,974   2,281,858   2,304,929   2,277,454   2,261,356  
Total stockholders' equity 299,027   291,113   218,565   212,775   216,169  
Summary Performance Ratios:          
Return on average assets 1.18 % 0.89 % 0.71 % 0.86 % 0.74 %
Return on average equity 11.10 % 9.57 % 8.98 % 10.85 % 9.08 %
Net interest margin (1) 4.07 % 3.88 % 3.93 % 3.89 % 4.02 %
Yield on loans 5.91 % 5.90 % 5.84 % 5.67 % 5.57 %
Cost of interest-bearing deposits 1.30 % 1.39 % 1.34 % 1.26 % 1.09 %
Efficiency ratio 73.62 % 77.46 % 81.79 % 77.88 % 74.85 %
Summary Credit Quality Data:          
Nonperforming loans 6,456   7,946   7,937   6,954   7,225  
Nonperforming loans to total loans held for investment 0.33 % 0.41 % 0.41 % 0.36 % 0.37 %
Other real estate owned 2,296   2,305   2,340   2,285   2,704  
Nonperforming assets to total assets 0.31 % 0.37 % 0.37 % 0.34 % 0.37 %
Allowance for loan losses to total loans held for investment 1.23 % 1.25 % 1.22 % 1.18 % 1.07 %
Net charge-offs to average loans outstanding (annualized) 0.08 % 0.02 % 0.07 % -0.18 % 0.82 %
Capital Ratios:          
Total stockholders' equity to total assets 10.70 % 10.48 % 7.96 % 7.84 % 8.04 %
Tangible common equity to tangible assets 10.62 % 10.48 % 7.96 % 7.84 % 8.04 %
Tier 1 capital to average assets 12.17 % 12.10 % 9.70 % 9.63 % 10.09 %
Common equity tier 1 to risk-weighted assets 13.10 % 13.31 % 10.27 % 9.91 % 10.03 %
Total capital to risk-weighted assets 17.38 % 17.75 % 14.74 % 14.28 % 14.29 %
           
(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
    September 30, 2019   September 30, 2018
                         
        Interest           Interest    
    Average   Income       Average   Income    
    Balance   Expense   Yield   Balance   Expense   Yield
Assets                        
Loans (1)   $ 1,993,507     $ 29,695     5.91 %   $ 1,973,505     $ 27,699     5.57 %
Debt securities - taxable     287,128       1,956     2.70 %     271,432       1,683     2.46 %
Debt securities - nontaxable     32,993       286     3.44 %     75,247       672     3.54 %
Other interest-bearing assets     284,579       1,831     2.55 %     147,675       865     2.32 %
                         
Total interest-earning assets     2,598,207       33,768     5.16 %     2,467,859       30,919     4.97 %
Noninterest-earning assets     181,139               175,462          
                         
Total assets   $ 2,779,346             $ 2,643,321          
                         
Liabilities & stockholders' equity                        
NOW, Savings, MMA's   $ 1,399,727       4,057     1.15 %   $ 1,394,572       3,533     1.01 %
Time deposits     315,376       1,570     1.98 %     308,987       1,137     1.46 %
Short-term borrowings     12,468       58     1.85 %     16,393       68     1.65 %
Notes payable & other long-term borrowings     95,000       523     2.18 %     95,000       473     1.98 %
Subordinated debt securities     26,472       404     6.05 %     20,887       245     4.65 %
Junior subordinated deferable interest debentures     46,393       485     4.15 %     46,393       487     4.16 %
                         
Total interest-bearing liabilities     1,895,436       7,097     1.49 %     1,882,232       5,943     1.25 %
Demand deposits     555,501               513,432          
Other liabilities     33,339               33,024          
Stockholders' equity     295,070               214,633          
                         
Total liabilities & stockholders' equity   $ 2,779,346             $ 2,643,321          
                         
Net interest income       $ 26,671             $ 24,976      
Net interest margin (2)           4.07 %           4.02 %
                         
(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 Nine Months Ended
    September 30, 2019   September 30, 2018
                         
        Interest           Interest    
    Average   Income       Average   Income    
    Balance   Expense   Yield   Balance   Expense   Yield
Assets                        
Loans (1)   $ 1,965,297     $ 86,471     5.88 %   $ 1,899,880     $ 77,531     5.46 %
Debt securities - taxable     281,904       5,819     2.76 %     168,718       3,188     2.53 %
Debt securities - nontaxable     32,184       847     3.52 %     124,951       3,351     3.59 %
Other interest-bearing assets     292,099       5,348     2.45 %     232,949       3,199     1.84 %
                         
Total interest-earning assets     2,571,484       98,485     5.12 %     2,426,498       87,269     4.81 %
Noninterest-earning assets     177,507               171,756          
                         
Total assets   $ 2,748,991             $ 2,598,254          
                         
Liabilities & stockholders' equity                        
NOW, Savings, MMA's   $ 1,439,699       13,287     1.23 %   $ 1,365,187       8,664     0.85 %
Time deposits     314,128       4,368     1.86 %     314,502       3,295     1.40 %
Short-term borrowings     15,425       226     1.96 %     19,334       194     1.34 %
Notes payable & other long-term borrowings     95,000       1,623     2.28 %     95,000       1,250     1.76 %
Subordinated debt securities     26,890       1,213     6.03 %     20,887       735     4.70 %
Junior subordinated deferable interest debentures     46,393       1,510     4.35 %     46,393       1,339     3.86 %
                         
Total interest-bearing liabilities     1,937,535       22,227     1.53 %     1,861,303       15,477     1.11 %
Demand deposits     524,468               491,456          
Other liabilities     31,795               30,549          
Stockholders' equity     255,193               214,946          
                         
Total liabilities & stockholders' equity   $ 2,748,991             $ 2,598,254          
                         
Net interest income       $ 76,258             $ 71,792      
Net interest margin (2)           3.96 %           3.96 %
                         
(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
    September 30, 2019   December 31, 2018
     
     
Assets        
Cash and due from banks   $ 48,709     $ 47,802  
Interest-bearing deposits in banks     195,281       198,187  
Federal funds sold     655       -  
Investment securities     401,335       338,196  
Loans held for sale     50,136       38,382  
Loans held for investment     1,962,609       1,957,197  
Less: Allowance for loan losses     (24,176 )     (23,126 )
Net loans held for investment     1,938,433       1,934,071  
Premises and equipment, net     59,189       59,787  
Intangible assets     4,168       1,270  
Other assets     97,676       95,050  
Total assets   $ 2,795,582     $ 2,712,745  
         
Liabilities and Stockholders' Equity        
Liabilities        
Noninterest bearing deposits   $ 556,233     $ 510,067  
Interest-bearing deposits     1,729,741       1,767,387  
Total deposits     2,285,974       2,277,454  
Other borrowings     104,855       112,705  
Subordinated debt securities     26,472       34,002  
Trust preferred subordinated debentures     46,393       46,393  
Other liabilities     32,861       29,416  
Total liabilities     2,496,555       2,499,970  
Stockholders' Equity        
Common stock     18,004       14,772  
Additional paid-in capital     140,268       80,412  
Retained earnings     137,127       119,835  
Accumulated other comprehensive income (loss)     3,628       (2,244 )
Treasury stock     -       -  
Total stockholders' equity     299,027       212,775  
Total liabilities and stockholders' equity   $ 2,795,582     $ 2,712,745  
         

 


               
South Plains Financial, Inc. 
Consolidated Statements of Income 
(Unaudited) 
(Dollars in thousands) 
  Three Months Ended   Nine Months Ended
  September 30,
2019
  September 30,
2018
  September 30,
2019
  September 30,
2018
       
       
Interest income:              
Loans, including fees $ 29,652     $ 27,652     $ 86,342     $ 77,388  
Other   4,013       3,079       11,836       9,034  
Total Interest income   33,665       30,731       98,178       86,422  
Interest expense:              
Deposits   5,627       4,670       17,655       11,959  
Subordinated debt securities   404       245       1,213       735  
Trust preferred subordinated debentures   485       487       1,510       1,339  
Other   581       541       1,849       1,444  
Total Interest expense   7,097       5,943       22,227       15,477  
Net interest income   26,568       24,788       75,951       70,945  
Provision for loan losses   420       3,415       1,903       5,733  
Net interest income after provision for loan losses   26,148       21,373       74,048       65,212  
Noninterest income:              
Service charges on deposits   2,101       1,979       5,985       5,757  
Income from insurance activities   1,114       1,462       4,074       3,992  
Mortgage banking activities   6,991       5,603       18,509       16,667  
Bank card services and interchange fees   2,192       2,101       6,273       6,110  
Other   1,717       2,150       5,052       5,205  
Total Noninterest income   14,115       13,295       39,893       37,731  
Noninterest expense:              
Salaries and employee benefits   18,135       18,044       56,044       53,463  
Net occupancy expense   3,486       3,388       10,309       10,103  
Professional services   1,852       1,474       5,169       4,303  
Marketing and development   762       671       2,275       2,249  
Other   5,793       5,069       16,197       14,827  
Total noninterest expense   30,028       28,646       89,994       84,945  
Income before income taxes   10,235       6,022       23,947       17,998  
Income tax expense (benefit)   1,977       1,109       4,836       (5,429 )
Net income $ 8,258     $ 4,913     $ 19,111     $ 23,427  
               
Pro forma C corp income tax adjustment   -       -       -       8,533  
Pro forma C corp net income $ 8,258     $ 4,913     $ 19,111     $ 14,894  
               

 


           
South Plains Financial, Inc. 
Loan Composition 
(Unaudited) 
(Dollars in thousands) 
  As of
  September 30,
2019
  December 31,
2018
  September 30,
2018
   
   
Loans:          
Commercial Real Estate $ 520,687     $ 538,037     $ 537,371  
Commercial - Specialized   316,862       305,022       331,165  
Commercial - General   398,909       427,728       431,827  
Consumer:          
1-4 Family Residential   359,160       346,153       324,488  
Auto Loans   212,529       191,647       185,782  
Other Consumer   70,338       70,209       70,171  
Construction   84,124       78,401       87,281  
Total loans held for investment $ 1,962,609     $ 1,957,197     $ 1,968,085  
           

 


           
South Plains Financial, Inc. 
Deposit Composition 
(Unaudited) 
(Dollars in thousands) 
  As of
  September 30,
2019
  December 31,
2018
  September 30,
2018
   
   
Deposits:          
Noninterest-bearing demand deposits $ 556,233     $ 510,067     $ 517,000  
NOW & other transaction accounts   259,230       368,806       279,875  
MMDA & other savings   1,154,859       1,087,044       1,152,269  
Time deposits   315,652       311,537       312,212  
Total deposits $ 2,285,974     $ 2,277,454     $ 2,261,356  
           

 


       
South Plains Financial, Inc. 
Reconciliation of Non-GAAP Financial Measures 
(Unaudited) 
(Dollars in thousands) 
  As of
  September 30,
2019
  December 31,
2018
   
   
Tangible common equity      
Total common stockholders' equity $ 299,027     $ 212,775  
Less: goodwill and other intangibles   (2,479 )      
       
Tangible common equity $ 296,548     $ 212,775  
       
Tangible assets      
Total assets $ 2,795,582     $ 2,712,745  
Less: goodwill and other intangibles   (2,479 )      
       
Tangible assets $ 2,793,103     $ 2,712,745  
       
Shares outstanding   18,004,323       14,771,520  
       
Total stockholders' equity to total assets   10.70 %     7.84 %
Tangible common equity to tangible assets   10.62 %     7.84 %
Book value per share $ 16.61     $ 14.40  
Tangible book value per share $ 16.47     $ 14.40  


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