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EX - 99.1 2 brhc10023631_ex99-1.htm EXHIBIT 99.1 Exhibit 99.1 South Plains Financial , Inc. South Plains Financial , Inc. Reports First Quarter 2021 Financial Results LUBBOCK , Texas , April 27 , 2021 ( 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 , 2021 . First Quarter 2021 Highlights • • • • • • • • • Net income for the first quarter of 2021 was $ 15.2 million , compared to $ 15.9 million for the fourth quarter of 2020 and $ 7.1 million for the first quarter of 2020 . Diluted earnings per share for the first quarter of 2021 was $ 0.82 , compared to $ 0.87 for the fourth quarter of 2020 and $ 0.38 for the first quarter of 2020 . Pre - tax , pre - provision income ( non - GAAP ) for the first quarter of 2021 was $ 19.0 million , compared to $ 20.0 million for the fourth quarter of 2020 and $ 15.1 million for the first quarter of 2020 . Average cost of deposits for the first quarter of 2021 decreased to 29 basis points , compared to 31 basis points for the fourth quarter of 2020 and 65 basis points for the first quarter of 2020 . The provision for loan losses for the first quarter of 2021 was $ 89,000 , compared to $ 141,000 for the fourth quarter of 2020 and $ 6.2 million for the first quarter of 2020 . Nonperforming assets to total assets were 0.42 % at March 31 , 2021 , compared to 0.45 % at December 31 , 2020 and 0.28 % at March 31 , 2020 . The adjusted ( non - GAAP ) efficiency ratio for the first quarter of 2021 was 65.76 % , compared to 64.19 % for the fourth quarter of 2020 and 69.10 % for the first quarter of 2020 . Return on average assets for the first quarter of 2021 was 1.66 % annualized , compared to 1.76 % annualized for the fourth quarter of 2020 and 0.89 % annualized for the first quarter of 2020 . Tangible book value ( non - GAAP ) per share was $ 19.28 as of March 31 , 2021 , compared to $ 18.97 per share as of December 31 , 2020 and $ 16.54 per share as of March 31 , 2020 . Curtis Griffith , South Plains ' Chairman and Chief Executive Officer , commented , “ Through the first quarter of 2021 our local Texas markets continued to recover as the pace of business has started to accelerate , real estate volumes remained strong , and the price of oil continued to rise . We are seeing these improved trends in our customers ' demand for credit and expect loan growth to reaccelerate to a low single digit rate through 2021 , excluding Paycheck Protection Program ( “ PPP ” ) loans , before returning to mid - single digit growth in 2022 as we continue to expand in our metropolitan markets of Dallas - Fort Worth , Houston and El Paso . Importantly , we will remain disciplined and will not sacrifice our credit standards as we grow the Bank . This discipline has served us well during the COVID - 19 pandemic , as can be seen in the credit metrics of our loan portfolio , as our active loan modifications declined to 2.1 % of our loan portfolio in the first quarter of 2021 from 2.9 % in the fourth quarter of 2020. We remain confident in the credit quality of our loan portfolio and the reserves for loan losses that we have . " Mr. Griffith continued , “ We believe the Bank's financial position is strong as we have remained disciplined on core expenses as our mortgage volumes have grown , maintained strong liquidity , and are implementing a thoughtful capital allocation strategy to ensure a steady return of capital to our shareholders . During the first quarter of 2021 , we continued to repurchase shares under our $ 10 million share repurchase program and last week our board of directors authorized a 40 % increase in our quarterly dividend to $ 0.07 per share . We also remain committed to our employees , customers and the communities that we serve . Along these lines , we launched our first corporate sustainability report in February 2021 which outlines our commitment to a diverse workforce and board of directors , our goal to reduce our carbon footprint , and our ongoing support to our local communities through increasing employee and Bank engagement . We understand that this is a journey and are excited with the many ways ahead where we can make a positive impact . " Results of Operations , Quarter Ended March 31 , 2021 Net Interest Income Net interest income was $ 29.5 million for the first quarter of 2021 , compared to $ 30.4 million for the fourth quarter of 2020 and $ 30.2 million for the first quarter of 2020. The net interest margin was 3.52 % for the first quarter of 2021 , compared to 3.64 % for the fourth quarter of 2020 and 4.13 % for the first quarter of 2020. The average yield on loans was 5.07 % for the first quarter of 2021 , compared to 5.10 % for the fourth quarter of 2020 and 5.76 % for the first quarter of 2020. The average cost of deposits was 29 basis points for the first quarter of 2021 , representing a two basis point decrease from the fourth quarter of 2020 and a 36 basis point decrease from the first quarter of 2020 .