South Plains Financial, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>South Plains Financial, Inc. has submitted its 2023 annual report (10-K) detailing its financial performance and operations.</b>

AI Summary

SOUTH PLAINS FINANCIAL, INC. (SPFI) filed a Annual Report (10-K) with the SEC on March 15, 2024. South Plains Financial, Inc. filed its 2023 Form 10-K on March 15, 2024. The company is incorporated in Texas and operates under the SIC code 6022 for State Commercial Banks. The filing covers the fiscal year ending December 31, 2023. Key dates mentioned include adoption dates for accounting standards updates in 2022 and 2023. The company's principal business address is in Lubbock, Texas.

Why It Matters

For investors and stakeholders tracking SOUTH PLAINS FINANCIAL, INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of South Plains Financial, Inc.'s financial health and strategic direction for the fiscal year 2023, crucial for investors assessing its performance. The detailed financial data and risk factors within the report are essential for understanding the company's operational landscape and potential challenges in the commercial banking sector.

Risk Assessment

Risk Level: medium — SOUTH PLAINS FINANCIAL, INC. shows moderate risk based on this filing. The company operates in the commercial banking sector, which is subject to significant regulatory oversight and economic fluctuations, as indicated by its SIC code and the nature of a 10-K filing.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand the company's performance and outlook.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-15 — Filing Date (Date of submission)
• 6022 — SIC Code (Industry classification)
• TX — State of Incorporation (Legal domicile)

Key Players & Entities

• SOUTH PLAINS FINANCIAL, INC. (company) — Filer name
• 0001163668 (company) — Central Index Key
• 6022 (company) — Standard Industrial Classification
• TX (company) — State of Incorporation
• LUBBOCK (company) — City of business address
• 806-792-7101 (company) — Business phone number
• 2023-12-31 (date) — Fiscal year end
• 2024-03-15 (date) — Filing date

FAQ

Industry Context

South Plains Financial, Inc. operates within the commercial banking industry, a sector characterized by its role in lending, deposit-taking, and providing financial services to individuals and businesses.

Regulatory Implications

As a commercial bank, the company is subject to regulations from federal and state authorities governing financial institutions, including capital requirements, lending practices, and consumer protection.

What Investors Should Do

1. Review the full 10-K filing for detailed financial statements and management's discussion and analysis.
2. Analyze the company's risk factors section for potential challenges and their impact on operations.
3. Compare key financial metrics with industry benchmarks and prior year performance.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-15: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This filing is the annual report for fiscal year 2023, following previous filings which would include quarterly reports and potentially prior annual reports.

Key Financial Figures

• $1.00 — ich registered Common Stock, par value $1.00 per share SPFI The Nasdaq Stock Mar
• $36.1 million — received an aggregate purchase price of $36.1 million in exchange for Windmark's common share
• $33.8 million — shares, representing a pre-tax gain of $33.8 million. This transaction did not meet the crit
• $4.20 b — ions reporting. We had total assets of $4.20 billion, gross loans held for investment
• $3.01 b — ion, gross loans held for investment of $3.01 billion, total deposits of $3.63 billion,
• $3.63 b — ent of $3.01 billion, total deposits of $3.63 billion, and total shareholders' equity o
• $407.1 million — lion, and total shareholders' equity of $407.1 million as of December 31, 2023. Our history d
• $1 million — d in West Texas that held approximately $1 million of total assets in 1941. In 1962, the b
• $30 million — all-town institution with approximately $30 million in total assets and a single branch loc
• $175 million — nd 1999, respectively. We had more than $175 million in assets upon the closing of these acq
• $430 million — Bank, Odessa, Texas, with approximately $430 million in assets, in 2019 through the merger o
• $2.3 billion — Plains - We operate 10 branches holding $2.3 billion of deposits in the Lubbock metropolitan
• $424.9 million — Dallas - We operate three branches with $424.9 million of deposits and five loan production of
• $211.9 million — aso - We operate two bank branches with $211.9 million of deposits and one mortgage office in
• $53.1 million — . Houston - We operate one branch with $53.1 million of deposits in the Houston-The Woodland

Filing Documents

• ef20015269_10k.htm (10-K) — 5150KB
• ef20015269_ex10-11.htm (EX-10.11) — 104KB
• ef20015269_ex10-18.htm (EX-10.18) — 141KB
• ef20015269_ex10-19.htm (EX-10.19) — 32KB
• ef20023760_ex21-1.htm (EX-21.1) — 4KB
• ef20023760_ex23-1.htm (EX-23.1) — 2KB
• ef20023760_ex23-2.htm (EX-23.2) — 3KB
• ef20023760_ex31-1.htm (EX-31.1) — 11KB
• ef20023760_ex31-2.htm (EX-31.2) — 11KB
• ef20023760_ex32-1.htm (EX-32.1) — 4KB
• ef20023760_ex32-2.htm (EX-32.2) — 4KB
• image00002.jpg (GRAPHIC) — 30KB
• 0001140361-24-013519.txt (&nbsp;) — 23744KB
• spfi-20231231.xsd (EX-101.SCH) — 100KB
• spfi-20231231_cal.xml (EX-101.CAL) — 138KB
• spfi-20231231_def.xml (EX-101.DEF) — 683KB
• spfi-20231231_lab.xml (EX-101.LAB) — 1482KB
• spfi-20231231_pre.xml (EX-101.PRE) — 989KB
• ef20015269_10k_htm.xml (XML) — 5354KB

Business

Business 5 Item 1A.

Risk Factors

Risk Factors 23 Item 1B. Unresolved Staff Comments 37 Item 1C. Cybersecurity 37 Item 2.

Properties

Properties 38 Item 3.

Legal Proceedings

Legal Proceedings 39 Item 4. Mine Safety Disclosures 39 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 39 Item 6. [Reserved] 41 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 41 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 63 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 64 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 105 Item 9A.

Controls and Procedures

Controls and Procedures 105 Item 9B. Other Information 105 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 106 PART III Item 10. Directors, Executive Officers and Corporate Governance 107 Item 11.

Executive Compensation

Executive Compensation 107 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 107 Item 13. Certain Relationships and Related Transactions, and Director Independence 107 Item 14. Principal Accounting Fees and Services 107 PART IV Item 15. Exhibits, Financial Statement Schedules 108 Item 16. Form 10-K Summary 110

SIGNATURES

SIGNATURES 111 Table of Contents CAUTIONARY STATEMENT REGARDING

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K for the year ended December 31, 2023 ("Report") contains statements that we believe are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "might," "should," "could," "predict," "potential," "believe," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "strive," "projection," "goal," "target," "outlook," "aim," "would," "annualized" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: potential recession in the United States and our market areas; the impacts related to o

Business

Business General South Plains Financial, Inc. (the "Company" or "SPFI") is a bank holding company headquartered in Lubbock, Texas, and City Bank, SPFI's wholly-owned banking subsidiary, is one of the largest independent banks in West Texas ("City Bank" or the "Bank"). The Company is hereafter collectively referred to as "we," "us" or "our." We have additional banking operations in the Dallas, El Paso, Greater Houston, the Permian Basin, and College Station, Texas markets, and the Ruidoso, New Mexico market. Through City Bank, we provide a wide range of commercial and consumer financial services to small and medium-sized businesses and individuals in our market areas. Our principal business activities include commercial and retail banking, along with investment, trust and mortgage services. On April 1, 2023, SPFI entered into a Securities Purchase Agreement ("Agreement") with Alliant Insurance Services, Inc. ("Alliant"), providing for the sale of Windmark Insurance Agency, Inc. ("Windmark") through a sale of all of the outstanding shares of capital stock of Windmark to Alliant. The transaction was consummated on April 1, 2023. Pursuant to the terms and subject to the conditions of the Agreement, SPFI received an aggregate purchase price of $36.1 million in exchange for Windmark's common shares, representing a pre-tax gain of $33.8 million. This transaction did not meet the criteria for discontinued operations reporting. We had total assets of $4.20 billion, gross loans held for investment of $3.01 billion, total deposits of $3.63 billion, and total shareholders' equity of $407.1 million as of December 31, 2023. Our history dates back over 80 years. We trace our beginnings to the founding of First State Bank of Morton, a community bank headquartered in West Texas that held approximately $1 million of total assets in 1941. In 1962, the bank was sold to new management, including J.K. Griffith, the father of our current Chairman and Chief Executive Officer, Curtis

View Full Filing

View this 10-K filing on SEC EDGAR