South Plains Financial, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>South Plains Financial, Inc. (SPFI) has filed its Q1 2024 10-Q report, detailing financial performance and operational data.</b>

AI Summary

SOUTH PLAINS FINANCIAL, INC. (SPFI) filed a Quarterly Report (10-Q) with the SEC on May 6, 2024. Filing is a 10-Q for South Plains Financial, Inc. for the period ending March 31, 2024. The company is classified under SIC code 6022 for State Commercial Banks. Incorporated in Texas, with fiscal year ending December 31. Business and mailing address are both 5219 City Bank Parkway, Lubbock, TX 79407-3544. The filing includes data related to various financial statement components and accounting standards updates.

Why It Matters

For investors and stakeholders tracking SOUTH PLAINS FINANCIAL, INC., this filing contains several important signals. This 10-Q filing provides investors and analysts with the latest quarterly financial data for SPFI, crucial for assessing performance and making investment decisions. The detailed financial statements and disclosures within the report offer insights into the company's asset management, liabilities, equity, and specific business segments like mortgage banking.

Risk Assessment

Risk Level: low — SOUTH PLAINS FINANCIAL, INC. shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not indicate any immediate or significant new risks beyond those typically associated with financial institutions.

Analyst Insight

Review the detailed financial statements and segment information in the 10-Q to understand SPFI's current financial health and operational performance.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed period of report)
• 2024-05-06 — Filing Date (Filed as of date)
• 1231 — Fiscal Year End (Fiscal year end)

Key Players & Entities

• SOUTH PLAINS FINANCIAL, INC. (company) — Filer name
• SPFI (company) — Ticker symbol
• Lubbock, TX (location) — Business and mailing address city and state
• 6022 (other) — Standard Industrial Classification code

FAQ

Industry Context

South Plains Financial, Inc. operates within the State Commercial Banks industry (SIC 6022).

Regulatory Implications

The filing adheres to SEC regulations for quarterly reporting by public companies.

What Investors Should Do

1. Analyze the balance sheet and income statement for Q1 2024.
2. Examine any disclosures related to risk factors or legal proceedings.
3. Compare key financial metrics to previous periods and industry benchmarks.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-06: Filing Date — Date the 10-Q was officially filed with the SEC.

Year-Over-Year Comparison

This is the Q1 2024 10-Q filing, providing updated financial information compared to previous filings.

Key Financial Figures

• $1.00 — ange on which registered Common Stock, $1.00 par value per share SPFI The Nasdaq

Filing Documents

• ef20026307_10q.htm (10-Q) — 3809KB
• ef20026307_ex31-1.htm (EX-31.1) — 11KB
• ef20026307_ex31-2.htm (EX-31.2) — 11KB
• ef20026307_ex32-1.htm (EX-32.1) — 4KB
• ef20026307_ex32-2.htm (EX-32.2) — 4KB
• 0001140361-24-024557.txt (&nbsp;) — 17838KB
• spfi-20240331.xsd (EX-101.SCH) — 61KB
• spfi-20240331_cal.xml (EX-101.CAL) — 81KB
• spfi-20240331_def.xml (EX-101.DEF) — 465KB
• spfi-20240331_lab.xml (EX-101.LAB) — 969KB
• spfi-20240331_pre.xml (EX-101.PRE) — 654KB
• ef20026307_10q_htm.xml (XML) — 4750KB

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 8 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 47 Item 4.

Controls and Procedures

Controls and Procedures 47 PART II. OTHER INFORMATION 48 Item 1.

Legal Proceedings

Legal Proceedings 48 Item 1A.

Risk Factors

Risk Factors 48 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 48 Item 3. Defaults Upon Senior Securities 48 Item 4. Mine Safety Disclosures 48 Item 5. Other Information 48 Item 6. Exhibits 49

Signatures

Signatures 50 Table of Contents PART I. FINANCIAL INFORMATION

Consolidated Financial

Item 1. Consolidated Financial SOUTH PLAINS FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except per share data) March 31, 2024 December 31, 2023 (Unaudited) ASSETS Cash and due from banks $ 41,273 $ 62,821 Interest-bearing deposits in banks 330,666 267,337 Cash and cash equivalents 371,939 330,158 Securities available for sale 599,869 622,762 Loans held for sale ($ 9,686 and $ 6,615 at fair value at March 31, 2024 and December 31, 2023, respectively) 15,751 14,499 Loans held for investment 3,011,799 3,014,153 Allowance for credit losses on loans ( 42,174 ) ( 42,356 ) Loans held for investment, net 2,969,625 2,971,797 Accrued interest receivable 16,605 20,881 Premises and equipment, net 54,221 55,070 Bank-owned life insurance 74,879 74,504 Goodwill 19,315 19,315 Intangible assets, net 2,247 2,429 Mortgage servicing rights 26,843 26,569 Deferred tax asset, net 21,309 19,413 Other assets 46,390 47,396 Total assets $ 4,218,993 $ 4,204,793 LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Noninterest-bearing $ 974,174 $ 974,201 Interest-bearing 2,664,397 2,651,952 Total deposits 3,638,571 3,626,153 Accrued expenses and other liabilities 61,496 61,358 Subordinated debt 63,821 63,775 Junior subordinated deferrable interest debentures 46,393 46,393 Total liabilities 3,810,281 3,797,679 Stockholders' equity: Common stock, $ 1.00 par value per share, 30,000,000 shares authorized; 16,431,755 and 16,417,099 issued and outstanding at March 31, 2024 and December 31, 2023 , respectively 16,432 16,417 Additional paid-in capital 97,406 97,107 Retained earnings 354,011 345,264 Accumulated other comprehensive loss ( 59,137 ) ( 51,674 ) Total stockholders' equity 408,712 407,114 Total liabilities and stockholders' equity $ 4,218,993 $ 4,204,793 The accompanying n

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations – South Plains Financial, Inc. ("SPFI") is a Texas corporation and registered bank holding company that conducts its principal activities through its subsidiaries from offices located throughout Texas and Eastern New Mexico. Principal activities include commercial and retail banking, along with investment, trust, and mortgage services. The following were subsidiaries of SPFI as of March 31, 2024: Wholly-Owned, Consolidated Subsidiaries: Bank subsidiary Ruidoso Retail, Inc. Non-bank subsidiary CB Provence, LLC Non-bank subsidiary CBT Brushy Creek, LLC Non-bank subsidiary CBT Properties, LLC Non-bank subsidiary Wholly-Owned, Equity Method Subsidiaries: South Plains Financial Capital Trusts ("SPFCT") III-V Non-bank subsidiaries 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"), City Bank's wholly-owned subsidiary, 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. Basis of Presentation and Consolidation – The consolidated financial statements in this Quarterly Report on Form 10-Q for the three months ended March 31, 2024 (this "Form 10-Q") include the accounts of SPFI and its wholly-owned consolidated subsidiaries (collectively referred to as the "Company") identified above. All significant intercompany balances and transactions have been eliminated in consolidation. The interi

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