NASDAQ$SPFI

South Plains Financial Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Financial results reported for the quarter ended September 30, 2021.

South Plains Financial, Inc. reported a net income of $15.2 million and diluted earnings per share of $0.82 for the third quarter of 2021. The company experienced loan growth and benefited from a strong Texas economy.

  • Net income for the third quarter of 2021 was $15.2 million.
  • Diluted earnings per share for the third quarter of 2021 was $0.82.
  • Average cost of deposits for the third quarter of 2021 decreased to 25 basis points.
  • Loans held for investment grew $125.6 million, or 5.5%, during the third quarter of 2021.

Headline financials

Total Revenue

$57M

Previous: $62.9M-9.5%
EPS (adj)

$0.82

Previous: $0.92-10.9%
Net Interest Margin

3.6%

Previous: 3.8%-6.3%
Return on Average Assets

1.6%

Previous: 1.9%-14.4%
Efficiency Ratio

66.5%

No prior period
Nonperforming Assets to Total Assets

0.3%

Previous: 0.5%-30.4%
Allowance for Credit Losses to Total Loans Held for Investment

1.8%

No prior period
Net Charge-offs to Average Loans Outstanding

0.0%

No prior period
Yield on Loans

5.0%

Previous: 5.1%-1.8%
Capital Expenditures

-$2.32M

Previous: -$3.16M+26.6%
Free Cash Flow

$12.9M

Previous: $13.6M-5.2%
Net Income

$15.2M

Previous: $16.7M-9.2%
Operating Income

$49.8M

Previous: $55.2M-9.7%
Gross Profit

$57M

Previous: $62.9M-9.5%
Cash & Equivalents

$328M

Previous: $291M+12.6%
Total Assets

$3.77B

Previous: $3.54B+6.5%
Stock-Based Comp

$403K

Previous: $625K-35.5%

Revenue & EPS history

South Plains Financial · Revenue · Quarterly

$57M

Q3 2021-9.5%vs Q3 2020
Beat estimate in 13 of 14 quarters(93%)
ActualEstimate

Revenue by segment

South Plains Financial · $11M total across 3 segments · Q2 2023

  • Mortgage Banking Activities
    $5.26M-39.3%
  • Bank Card Services and Interchange Fees
    $4.04M+16.2%
  • Service Charges on Deposits
    $1.75M

Forward guidance

South Plains Financial expects to continue redeploying excess liquidity into higher yielding loans and anticipates an acceleration to net interest income, offsetting an expected decline in mortgage revenue.

Tailwinds

  • Expect to continue redeploying our excess liquidity into higher yielding loans
  • Believe this will drive an acceleration to net interest income
  • Plan to offset the eventual decline in mortgage revenue as activity normalizes in future periods
  • Remain very optimistic with what the future holds for South Plains
  • Continue to see our shares trading below intrinsic value

Headwinds

  • Expect the eventual decline in mortgage revenue as activity normalizes in future periods
  • The Bank’s technology initiatives are expected to modestly add to noninterest expense
  • There is continued uncertainty from the ongoing COVID-19 pandemic
  • The full extent of the impact on the economy and the Bank’s customers remains unknown at this time
  • Additional provisions for loan losses may be necessary in future periods

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+0.5%

Avg return

Earnings day

-0.0%

Avg return

5 days after

+1.8%

Avg return

30 days after

55%

18 / 33 earnings

Positive

+5.9%

Q1 2021

Best reaction

-8.6%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.0%-9.0%-7.7%
Q4 2025-2.0%+0.8%+3.4%
Q3 2025+0.8%-5.8%-0.5%
Q2 2025-2.4%-0.4%+0.0%
Q1 2025+1.4%+1.4%+4.7%
Q4 2024+5.4%+3.7%-3.1%
Q3 2024-1.6%+0.6%+14.9%
Q2 2024-0.5%+7.5%+2.7%
Q1 2024-3.0%-3.0%+1.4%
Q4 2023+2.0%-4.7%-8.6%
Q3 2023+2.4%+4.2%+5.2%
Q2 2023+3.0%+5.1%+3.2%
Q1 2023+1.6%-0.4%+9.3%
Q4 2022+1.5%+1.2%-3.3%
Q3 2022-0.8%+2.4%+5.4%
Q2 2022+5.5%+6.3%+10.8%
Q1 2022-4.1%-6.0%-6.0%
Q4 2021+0.3%-1.5%-2.2%
Q3 2021+2.6%+4.2%+8.5%
Q2 2021-0.2%-2.5%-2.8%
Q1 2021+5.9%+7.2%+8.8%
Q4 2020-2.9%-2.2%-1.3%
Q3 2020-0.8%+0.9%+29.7%
Q2 2020+5.4%+2.3%+7.7%
Q1 2020-8.6%-10.4%-5.7%
Q4 2018+4.2%-2.4%-22.6%
Q4 2019+4.2%-2.4%-22.6%
Q3 2018+4.6%+9.5%+13.9%
Q3 2019+3.9%+6.1%+17.9%
Q2 2018-5.4%-3.1%+2.4%
Q2 2019+0.1%-1.4%-9.4%
Q1 2018-2.3%-4.4%+2.2%
Q1 2019-2.3%-4.4%+2.2%

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